  Let N be a finitely generated normal subgroup of a Gromov hyperbolic group G.
We establish criteria for N to have solvable conjugacy problem and be conjugacy
separable in terms of the corresponding properties of G/N. We show that the
hyperbolic group from F. Haglund's and D. Wise's version of Rips's construction
is hereditarily conjugacy separable. We then use this construction to produce
first examples of finitely generated and finitely presented conjugacy separable
groups that contain non-(conjugacy separable) subgroups of finite index.
