From rob@essential.org Sat, 8 Apr 2000 08:31:01 -0400 (EDT) Date: Sat, 8 Apr 2000 08:31:01 -0400 (EDT) From: Robert Weissman rob@essential.org Subject: [Intl-tobacco] Litigation woes hit European tobacco stocks (fwd) Note this is prior to the Engle decision: Litigation woes hit European tobacco stocks Source: Reuters, Monday, 4/3/00 Monday April 3, 12:59 pm Eastern Time LONDON, April 3 (Reuters) - European tobacco stocks lost ground on Monday as new litigation risks emerged in Spain and doubts spread about a landmark smoking case in Florida. At 1615 BST, with European equities broadly lower, the Eurotop 300 tobacco index was down 5.4 percent, giving back most of the gains it made last week off a 17-month low. Cigarette giant British American Tobacco (quote from Yahoo! UK & Ireland: BATS.L) was off 5.9 percent in London at 325 pence per share. In addition to profit-taking, industry analysts said BAT was down on new doubts about the introduction of a proposed measure in the Florida legislature that could blunt the impact of potentially damaging U.S. anti-smoking litigation. Last week it was reported that Florida State Attorney General Robert Butterworth was considering introducing legislation to effectively put off fixing punitive damages in the pivotal Engle sick-smokers case. The three-year-old case, a focus of intense concern in the tobacco industry, has reached a key phase in Miami. Speaking during closing arguments, smokers' attorney Stanley Rosenblatt denounced the Butterworth proposal as ``outrageous.'' Tobacco stocks worldwide moved up on reports of the proposal, but analysts said Monday it had yet to be seen, raising new doubts about whether it will be introduced at all. ``In an election year, I can't quite see the typical Florida assemblyman being willing to stick his head into this particular hornet's nest,'' said HSBC Securities tobacco analyst Nick Bunker. Despite BAT's weakness, U.S. tobacco giant Philip Morris (NYSE:MO - news) was up 3.8 percent in early New York trading. Actions such as the Engle case, expected to go to a jury this week, have clouded the outlook for tobacco stocks for years and a new one may have emerged in Spain on Sunday. Lawyers representing 2,000 victims of cancer of the larynx are preparing to file the first collective lawsuit against the Spanish tobacco industry, the newspaper El Pais reported. If the case proceeds, it could open a new litigation front for European tobacco companies, which have so far avoided the massive legal problems hammering their U.S. competitors. Franco-Spanish cigarette group Altadis was down 3.8 percent in Madrid and 3.3 percent in Paris. British cigarette group Imperial Tobacco (quote from Yahoo! UK & Ireland: IMT.L) was also down, by 6.6 percent, although analysts were hard-pressed to explain the decrease on thin volume. From rob@essential.org Sun, 9 Apr 2000 07:33:41 -0400 (EDT) Date: Sun, 9 Apr 2000 07:33:41 -0400 (EDT) From: Robert Weissman rob@essential.org Subject: [Intl-tobacco] Ex-VIPs At Tobacco Firm Helping Probe (fwd) Ex-VIPs At Tobacco Firm Helping Probe Some have tried to swing immunity or special-sentencing deals with Canadian authorities by WILLIAM MARSDEN / The Gazette Source: Montreal Gazette, Saturday, 4/8/00 Former senior tobacco executives at RJR-Macdonald Corp., including No.-2 man Stan Smith, have been co-operating with a criminal investigation into allegations that the tobacco giant defrauded the federal government of billions of dollar in taxes in the early 1990s. Some executives have attempted to swing immunity or special-sentencing deals with Canadian authorities in return for their co-operation, sources said. Smith was the first to break the wall of silence that for years had protected big tobacco against inquiries into the role it played in supplying cigarettes to smugglers during the high-tax era of 1989 to 1994. Smith resigned from Toronto-based RJR-Macdonald in 1998 about one year after discovering that both Canadian and police in the United States were investigating RJR. Through his Toronto lawyer, he approached the RCMP for an immunity deal. Police refuse to say whether he or any other executive has been granted immunity. Sources said Smith has spilled the beans about what went on in the executive suites of RJR during the smuggling era. Smith last summer sold his house in Oakville, Ont., and moved to Britain. The only RJR executive to be charged in Canada is Les Thompson. He pleaded guilty in February to one charge of conspiring to defraud the Canadian government of about $1 billion. In return for his ongoing co-operation, he was given a three-year suspended sentence. RJR has claimed Thompson and Smith, who has not been charged, were essentially lone wolves and rogue tobacco traders who broke company policy on smuggling and took millions of dollars in kickbacks. RJR lawyer Douglas Hunt said at Thompson's sentencing hearing that the company intended to file a victim- impact statement claiming that RJR suffered "physical or emotional loss" because of the criminal conduct of Thompson and Stan Smith. Prosecutor Michael Bernstein stated, however, that Thompson's actions were "part and parcel of a corporate strategy developed largely by other senior executives who closely monitored and supervised his work." Thompson, 52, was a top RJR sales executive. RJR sent him to Winston-Salem in 1992 to manage sales for Northern Brands International Inc., a newly formed affiliate of RJR Nabisco, the RJR holding company. Northern Brands (NBI) was used to funnel more than $110 million U.S. worth of Canadian tobacco products to smugglers on the Canadian-U.S. border. The company pleaded guilty in Syracuse, N.Y., in December 1998 to smuggling related charges and paid $15 million in fines and forfeitures. Thompson pleaded guilty in Syracuse last year to money laundering and is currently serving a 70-month sentence. He also paid a $20,000 fine and forfeited $100,000 U.S. Thompson is co-operating with a grand-jury investigation into tobacco smuggling in North Carolina. Other executives who have spoken to the RCMP include Franco Gabrieli, former head of RJR-Macdonald's duty-free sales in the U.S. and Peter MacGregor, who worked side-by-side with Thompson at Northern Brands. Gabrieli lives in Winston Salem, where he runs a tobacco export business. MacGregor was a former executive at RJR-Macdonald until he was transferred along with Thompson to Winston-Salem, N.C., to help manage NBI. MacGregor resigned from NBI in 1998 after U.S. authorities informed the company it was under investigation. He moved to Atlanta, Ga., where he took a job with Porsche America. Other RJR executives who held senior positions in the company during the heyday of tobacco smuggling have either retired or been transferred to Asia or Europe. Roland Kostantos, former controller and chief executive officer at RJR-Macdonald, is in Geneva along with former vice-president Paul Neumann. Former RJR-Macdonald president and CEO Ed Lang is retired and living in Florida. The Royal Canadian Mounted Police have attempted to speak to him but they refuse to say if they succeeded. RJR-Macdonald, which is now called JTI-Macdonald Corp. after it was taken over last year by Japan Tobacco, has said that it is co-operating with the federal government on the criminal investigation. The company is trying to negotiate a global settlement. According to sources, an offer of $100 million last year was rebuffed. The federal government sued RJ Reynolds and its affiliates in December claiming $1 billion U.S. in damages from tobacco smuggling. The suit was launched in Syracuse, N.Y., under U.S. civil racketeering laws that allow plaintiffs to obtain treble damages if they win. From rob@essential.org Sun, 9 Apr 2000 12:11:48 -0400 (EDT) Date: Sun, 9 Apr 2000 12:11:48 -0400 (EDT) From: Robert Weissman rob@essential.org Subject: [Intl-tobacco] Chinese tobacco advertising conference The Predicament and Developing Trend of Tobacco Ad Source: Tobacco China, Tuesday, 4/4/00 The competition in tobacco industry is getting fiercer with each passing day. To win more customers, tobacco manufacturers have to try every possible means to give wide publicity to their enterprises and products. However, the "Law on Advertisement of the People's Republic of China" and the "Provisional Regulation on Management of Tobacco Advertisement" impose strict restrictions on tobacco advertisement. Is the advertisement partially related with tobacco legal? Where the tobacco advertisement should go? Is there a room for tobacco advertisement under the socialist market economy in China? These are the questions of common concern in the trade of advertisement and issues the management department of advertisement must think over. The symposium on tobacco advertisement, jointly organized by the General Office of the State Tobacco Monopoly Administration and the Advertisement Supervision and Management Department under the State Administration of Industry and Commerce on March 15, provides a good opportunity for tobacco advertisement staffs to exchange their views and learn from each other. Representatives from 25 large-and medium-sized tobacco enterprises compared notes with officials from the Advertisement Supervision and Management Department under the State Administration of Industry and Commerce on various aspects of tobacco advertisement. Participants shared a view that China's tobacco industry has shifted from the seller's market to buyer's market. There is a growing need for more tobacco advertisement. It contradicts severely with the strict restrictions on tobacco advertisement. Under the pressure of foreign competition after China joins the World Trade Organization and the movement of banning tobacco smoking, tobacco enterprises must redouble their efforts to probe a way to survive and develop. As an important means in market economy, advertisement is an indispensable instrument for tobacco enterprises to expand market share. All participants agree that tobacco is a legal product. Tobacco firms are legitimate state-owned enterprises and major taxpayers of the state. They should enjoy a bigger room in advertisement. Referring to present situation of tobacco advertisement, participants said that the present-day tobacco advertisement is a creation with wisdom and culture, forming a unique scene in China's advertisement culture. However, many of the advertisements are intelligible. Some people raised a query on the legality, effect and investment results of implicit advertisements. Many said there is no standard management on tobacco advertisement at the present stage. The criterion for law-enforcing is different in various parts of China. Many departments including the industry and commerce, urban management and public health meddle in tobacco advertisement. Unjustified charges on tobacco advertisement exist to various extent. Responding to questions put forward by participants, Qu Jianmin, director of the Advertisement Supervision and Management Department of the State Administration of Industry and commerce, said the predicament of tobacco advertisement clearly reflects the awkward position tobacco industry. Undoubtedly, tobacco enterprises are the leading taxpayers in China. But the worldwide development trend is to restrict the growth of tobacco industry. Therefore, it is impossible for the state to have an explicit policy on tobacco industry. Qu said he had acquired a better understanding of the present development of tobacco industry by exchanging views with representatives of tobacco enterprises. His department will sort out and study the opinions of tobacco enterprises and find a solution for existing problems. He said frankly that in a legal point of view, tobacco industry is discriminated against worldwide. The state advertisement supervision and management department should of course abide by the state law. Meanwhile, it has to make endeavors to promote development of national industry. Qu said China expects to nurture a number of famous brands to compete with foreign brands. Consequently, the country adopts a favorable policy towards brand-name products in tobacco publicity. This is a necessary measure to protect national industry. He revealed that China would revise its Advertisement Law next year. He urged tobacco enterprises to act in the right length and accords with the law in advertisement publicity to provide a practical basis for the modification of Advertisement Law. Nevertheless, it is unrealistic to expect a marked improvement in tobacco advertisement. Wang Shujun and Zhao Jian, officials with the Advertisement Supervision and Management Department of the ADIC, respectively gave explanations on a number of issues including the differentiation of tobacco advertisement prescribed in the Advertisement Law and the Provisional Regulation on Management of Tobacco Advertisement, the scope of tobacco advertisement and financial support from tobacco enterprises. Addressing the closing session, Zhou Ruizeng, director of the General Office of the State Tobacco Monopoly Administration, said, under the new situation, an active publicity of tobacco advertisement has an important bearing on the survival and development of tobacco industry. We should do a good job in tobacco publicity within the scope of law and won't do anything that violates the law. We should improve the quality of tobacco advertisement and its promotion and pay attention to substantial results. From rob@essential.org Sun, 9 Apr 2000 12:14:01 -0400 (EDT) Date: Sun, 9 Apr 2000 12:14:01 -0400 (EDT) From: Robert Weissman rob@essential.org Subject: [Intl-tobacco] *Very Impt Story*: Chinese tobacco industry discusses affects of entry into WTO China's Tobacco: At the Door of WTO Source: Tobacco China, Tuesday, 3/28/00 Today the economic globalization is the trend of the times. The multilateral trade system with the World Trade Organization (WTO) as the representative has become an important carrier for globalization. To join WTO, of which the trade volume and investment account for more than 95 percent of the world's total, will enable China to gradually connect with the world and really flow into the sea of the world's economy. In the spring of 1999, the governments of China and the United States issued a joint statement, which announced the major progress achieved by China and the United States on China's access to WTO. The United States clearly undertook to resolutely support China to enter WTO. The marathon negotiation which lasted for 13 years reappeared vitality. People expect that China will have its own seat in those worn-out chairs in the gray building of the WTO headquarters at the river bank of Geneva. To join WTO makes the realization of the target of opening to be nearer, and brings some urgency and press to China's tobacco industry which has enjoyed the protection of high customs barrier. China's tobacco has walked at the door of WTO. It is worth saying that the day when China opens to the outside world is the time when we make a decisive battle with foreign cigarette. An international competition is survival of the fittest, and one has to do all he can to catch up or retreat in low spirit. These are choices for China's tobacco enterprises. China is a huge market with more than 300 million smokers. The number is more than the total population of the United States and Britain. At present, the anti-smoke drive runs high in the West. Therefore, tobacco companies from the United States and Britain eye covetously at China's huge market. Since China has adopted high tariff and strict import license system for imports of cigarette, US and British companies are not able to develop their ability to the full, and just make preparation for occupying China's market. Since 1990, various major international tobacco companies have set up many offices in China and made advertisements in may large and medium-sized cities in coastal and interior areas. Streets are flooded with billboards of "Malboro" and "555" cigarette, which are used as champion for league matches of football and basketball. To join WTO also means that we must open our market to the outside world. This will open the door for American and British companies to easily enter China's market, and inevitably make us to suffer. 1. We have to bear the duty of reducing tariffs and gradually abolishing import license and other tariff barrier. At present, China's composite tax rate from imported cigarette is 218 percent, of which the tariff is 36 percent. Take Malboro cigarette as an example. Its cost insurance and freight (CIF) is 26.1 yuan/carton and reaches 83 yuan/carton after adding various taxes. Its retail sales is 100 yuan/carton. China has promised to reduce import tariffs to 15 percent in 2000. Even if its tariffs remain unchangeable, the retail price for Malboro cigarette will be down to 80 yuan/carton. This will affect China's high-grade cigarette market. 2. At present, there is a gap between China's cigarette and foreign cigarette in terms of scientific content and quality. China's mixed cigarette is unable to compete with foreign brand cigarette. In line with the above-mentioned unfavorable conditions, some people might say that to join WTO means to push small sampans of Chinese tobacco enterprises to compete with aircraft carriers of multi-national tobacco corporations. Are Chinese enterprises, which have been under the situation of block and protection for years, able to compete? Doubts and worries are normal. Meanwhile, someone has asked a question in reply that how many wattled walls can block other's aircraft carriers. What is more, can small sampans be replaced with aircraft carriers? Besides, our tobacco enterprises are not all small sampans. Facts proves that tree in hothouse can not grow into a large tree, and a child in the arms of his parents can not walk himself. There is a famous story among the economic circle that in the past when the oxygen equipment was not developed, large amount of fish fries died on the long-distance transport and traders suffered greatly. Later on, someone put catfish into the water trough. To avoid being eaten by catfish, all fish fries swam at fast speed thus taking in oxygen, and their death rate dropped sharply. The catfish effect indicates that powerful competitive partner may stimulate the survival potential of weak opponent. China's color television market was almost occupied by Japan in the 1980s. Through years of hard efforts, Chinese-made color television has occupied three fourth of the market at present. The temporary labor pains will exchange for the promotion of efficiency and quality of the whole economy. To enter WTO will form a huge challenge for the development of China's tobacco industry. Meanwhile, China's tobacco industry will gain an opportunity for development by leaps and bounds. China's output of tobacco and cigarette ranks first in the world. However, in the world's tobacco trade, China's market shares are far from its position of being the world's tobacco producer. In 1998, China's export of cigarette accounted for only 1.81 percent of the world's total. After joining WTO, China may follow the stipulation on the most favored nation treatment and national treatment, and its products will enjoy multilateral, unconditional, stable and long-run most favored nation treatment and indiscrimination treatment among 134 treaty powers thus greatly improving the international environment for China's tobacco trade and offering more opportunities for China's tobacco and cigarette to participate in the international competition. WTO's basic spirit is to base on market economy and form a rational allocation of resources through free competition among enterprises. This has forced us to speed up the change of China's tobacco system and rearrange the organization structure of tobacco enterprises so as to enable to connect with worldwide enterprises as quickly as possible. Only by doing so, can we stand still in the process of the integration of the world's economy. In recent years, regional embargo and local protectionism, just like a persistent ailment, shackle the overall development of China's tobacco industry. WTO's "principle of fair trade and free competition" and its "principle of indiscrimination trade" help break local embargo so as to form a nationwide circulation and market thus enabling Chinese enterprises to foster the excellent and scrap the obsolete in the competition among themselves and develop healthily in the fair and free competition. To enter WTO does not mean that meat pies will be fallen from the sky or fierce floods and savage will come. Because we have the monopoly system; there is an evolutionary process for the reduction of cigarette import tariffs; we still have national brand cigarette which meets the needs of customers' taste and is appreciated by customers; and we have a complete retail and sales network. The present strength of China's tobacco industry is not at the same starting line with multi-national corporations. However, so long as we have the feeling of urgency and worry, positively participated in the competition and work hard, we surely win a market share and develop China from a large country of tobacco into a powerful country of tobacco. From rob@essential.org Sun, 9 Apr 2000 12:14:56 -0400 (EDT) Date: Sun, 9 Apr 2000 12:14:56 -0400 (EDT) From: Robert Weissman rob@essential.org Subject: [Intl-tobacco] China's Tobacco Industry Must Reduce Tar (fwd) China's Tobacco Industry Must Reduce Tar Source: Tobacco China, Tuesday, 3/28/00 China's tobacco industrial circle is discussing a hot topic: the country should quickly reduce cigarette tar in a bid to maintain its target of the weighted average of 15 mg. A related authoritative person noted that, with the acceleration of China's access to WTO, the process of internationalization of the domestic market is being sped up. China's tobacco industry will face with a lash of foreign low-tar and mix-type cigarette. Therefore, it is necessary to pay attention to cut cigarette tar, which concerns about the survival and development of tobacco industry. Health is the prerequisite of the existence and development of the mankind. To reduce the affection of smoking to people's health, the fifth article of the "Law the People's Republic of China on Tobacco Monopoly" stipulates that the state strengthens scientific research and technical development of tobacco monopoly products to raise the quality of tobacco products and cut tar and contents of other harmful elements. When it worked out the Ninth Five-Year Plan of scientific and technology development of the tobacco industry, the State Tobacco Monopoly Bureau listed the tar reduction into one of the ten scientific research projects being carried during the 1996-2000 period; and has since launched a massive drive to reduce cigarette tar across the country. Meanwhile, it clearly put forward the cut of China's cigarette tar within 15 mg by the end of 2000. In 1998, the State Tobacco Monopoly Bureau called for giving priority to the development of low-tar and mix-type cigarette, and disposed the work at the national tobacco working meeting in 1999. In an interview, Ren Min, Director of the Department of Science and Education under the State Tobacco Monopoly Bureau, briefed on the situation of the change of China's cigarette tar over the past decade. He said that from 1989 to 1999, the amount of cigarette tar in China was cut from 21.53 mg to 16.62 mg, an average drop of 0.5 mg a year. The change could be divided into three stages. The first stage from 1990 to 1992 was a stage, which witnessed a rapid drop of tar content by 2.5 to 3 mg from 21.85 mg to 18.89 mg. One reason for the reduction was a big increase of filtered cigarette. During the second stage from 1992 to 1996, the cigarette tar maintained at 18-19 mg level. Until 1997, when the new state standard was put into effect, the industry employed many tar reduction techniques to cut tar content. During the third period from 1996 to 1999, the amount of tar went down steadily from 18.5 mg to 16.1 mg (the lowest level in the third quarter of 1999), an average of 0.8 mg a year. According to data of the quality examination of cigarette products in 1999 (by the end of November), a survey on 1,835 trademarks of 155 cigarette enterprises, the average tar content reached 16.62 mg, of which tar of brand cigarette averaged 16.8. The annual tar dropped steadily from 17.0 mg in the first quarter to 16.1 mg in the third quarter. The proportion of cigarette with tar content under 16 mg went up from 38.37 percent to 48.1 percent; and that of cigarette with tar content over 18 mg declined from 24 percent to 18.4 percent. Preliminary statistics show that there were a dozen trademarks of cigarette with tar content under 12 mg. Included are Zhongnanhai, Kalei, Hongshuangxi, Hongmei, Gaolei, Linhailingzhi and Techunshish. Director Ren Min was confident of China's realization of tar weight average of 15 mg by the end of 2000.He said that, according to the data of 1999, the number of trademarks of cigarette with tar under 15 mg accounted for 18 percent of the total, and the proportion of brand name cigarette also approached the figure. The examination result in the third quarter of 1999 showed that the proportion of cigarette with tar below 15 mg increased to 29 percent. If production of these products maintains stable, we may regard that the amount of tar of one third of the present trademark cigarette is between 15 mg and 16.4 mg. With the speed of tar reduction over the past two years and faster speed in the coming years, the tar content of 15 mg for these products can be reached by the end of 2000. In this case, the number of trademark cigarette with tar content of 15 mg will approach 60 percent by the end of 2000. If these products occupy the leading position of the gross output, the target to reduce tar content by the end of 2000 is realistic. According to Director Ren Min, to ensure the realization of the target in 2000, it is a must to concentrate on the work in major cigarette producing provinces, enterprises and products with large market shares. He noted that, in line with the tar weighted average of the provincial statistics in the third quarter of 1999, the Department of Science and Education under the State Tobacco Monopoly Bureau listed 15 provinces, municipalities and autonomous regions with tar weighted average around 16 mg. They were Sichuan, Chongqing, Beijing, Heilongjiang, Shanghai, Shaanxi, Jiangxi, Xinjiang, Yunnan, Hubei, Guangdong, Zhejiang, Hunan, Henan and Guizhou. According to the industrial aggregate in 1998, the output of the 15 provinces, municipalities and autonomous regions accounted for 70 percent of the total ; and the tar weighted average was 215.69 mg. It is worth attention that 78 cigarette enterprises under statistics, which were enterprises with weak technical force, made breakthrough in tar reduction work after hard efforts. According to authoritative sources, the United States, European Communities and other countries and regions all have experienced a key development period of cutting tar content, and this is an inexorable trend for the world's tobacco development. To face with the challenge of the international market after joining WTO, China must accelerate the process of reducing cigarette tar to limit the gap between China and the internationalized market as quick as possible. From rob@essential.org Wed, 12 Apr 2000 17:05:41 -0400 (EDT) Date: Wed, 12 Apr 2000 17:05:41 -0400 (EDT) From: Robert Weissman rob@essential.org Subject: [Intl-tobacco] Teenager Smoking on Rise in China: Report (fwd) Teenager Smoking on Rise in China: Report Source: NewsEdge, Wednesday, 4/12/00 BEIJING (April 11) XINHUA via NewsEdge Corporation - Almost one in every six smokers in China is a teenager and if the present situation remains unchanged, three million Chinese could die from smoking annually by the year 2050, according to the "People's Daily". There are some 50 million young smokers in China, the world's biggest tobacco producer and consumer. There are some 320 million smokers in China, or one fourth of smokers worldwide. The average age of taking up smoking is three years younger compared with 1984. About 38 percent of people over 15 are smokers. Medical studies show that smoking is closely linked with 25 kinds of life-threatening illnesses, such as lung cancer, cardio and cerebral vascular and heart diseases. Lung cancer has been rising by 4.5 percent annually in China in recent years. Specialists with the Chinese Academy of Medical Science and the Chinese Academy of Preventive Medicine said that if drastic changes are not made to curb smoking among teenagers, ten million people worldwide might be killed every year in the future, three million of whom are in China. From rob@essential.org Wed, 19 Apr 2000 13:06:22 -0400 (EDT) Date: Wed, 19 Apr 2000 13:06:22 -0400 (EDT) From: Robert Weissman rob@essential.org Subject: [Intl-tobacco] IMF Suspends Lending To Moldova Over Tobacco, Wine Privatizations April 19, 2000 IMF Suspends Lending To Moldova Over Privatizations Dow Jones Newswires CHISINAU, Moldova (AP)--The International Monetary Fund has suspended lending to Moldova because its conditions on turning the state-run wine and tobacco industries over to the private sector have not been met, an IMF official said Wednesday. "The IMF may reconsider its position by the end of this year, but our conditions remain the same," said Hasan al-Atrash, the IMF representative to Chisinau. Moldova's parliament refused Monday to approve privatization of the wine and tobacco industries, a key condition set forth by the IMF for granting a $35 million loan for this impoverished former Soviet republic. Only 16 members of the 101-seat parliament voted for the measure. The loan would have brought another $150 million from other foreign lenders, crucial for Moldova to prevent it from defaulting on its foreign debts. The lawmakers justified their refusal to vote for privatization by saying the wine and tobacco industries, almost the only profitable sectors in the country, are strategic, and the state should retain its monopoly. The industries are estimated to earn more than $200 million a year. Prime Minister Dumitru Braghis said the IMF's move will mean adjustments to the government budget. Braghis said the budget was drawn up assuming that the two sectors would be turned over to the private sector, resulting in the promised foreign loans. The National Bank reserves are of $200 million, insufficient to support the national currency, the leu, and to pay back the $90 million owed this year on Moldova's foreign debt. The government is also facing increasing pressure from students, state workers and pensioners who have not received their stipends and salaries for months. ***************************************** Please note new address and fax number: Ross Hammond 965 Mission Street, Suite 218 San Francisco, CA 94103 USA tel. 1-415-695-7492 fax. 1-415-369-9211 From rob@essential.org Thu, 20 Apr 2000 10:41:48 -0400 (EDT) Date: Thu, 20 Apr 2000 10:41:48 -0400 (EDT) From: Robert Weissman rob@essential.org Subject: [Intl-tobacco] Europe: Impotence warning on cigarettes (fwd) Impotence warning on cigarettes Source: Electronic Telegraph, Thursday, 4/20/00 CIGARETTE packets are to include explicit warnings that tobacco can affect men's sexual performance following a European Union decision to put strict new health messages on packaging. The EU is drawing up plans to include graphic impotence warnings. They will say "smoking causes impotence" or "smoking causes impotence; smoking may cause sexual impotence due to decreased blood flow to the penis. This can prevent you from having an erection." MEPs are currently working with the Council of Ministers to finalise the wording. They have proposed that the messages include a graphic image of a long drooping cigarette ash, modelled on an official health message shortly to be introduced in Canada. Chris Davies, Liberal Democrat MEP for North West Englan, said: "It is important that people, particularly young people, understand the reasons cigarettes can cause impotence." The Government is understood to be in favour of new warnings on cigarette packets, after research by the British Medical Association found that most men were unaware of a link between smoking and "male penile erectile dysfunction". Yvette Cooper, public health minister, said: "Very few smokers are fully aware of all the damage done by smoking. The fact that smoking can cause impotence should be another reason to encourage smokers to give up." The new health warnings will be included in an EU directive on the manufacture, presentation and sale of tobacco products that the Government will implement. The list of new warnings were drawn up at a confidential meeting of the powerful Council of Ministers' Working party on Health. They proposed the messages that "smoking causes ageing of the skin" and that "smoking is addictive" in addition to current warnings. Clive Bates, director of Action on Smoking and Health, said: "If people are going to decide about smoking they need to know the full range of risks, even if they are embarrassing." From rob@essential.org Thu, 20 Apr 2000 10:42:15 -0400 (EDT) Date: Thu, 20 Apr 2000 10:42:15 -0400 (EDT) From: Robert Weissman rob@essential.org Subject: [Intl-tobacco] NZ: Maoris sue state for 'luring them into smoking' (fwd) Maoris sue state for 'luring them into smoking' Source: Electronic Telegraph, Thursday, 4/20/00 MAORIS filed a lawsuit for damages against the New Zealand government yesterday, claiming that European settlers introduced them to smoking. They say successive governments have encouraged them to smoke for the past 160 years and have profited from the taxes raised on cigarettes and tobacco they have bought. Papers were filed with the Waitangi Tribunal, a quasi-judicial body which hears indigenous grievance cases, in what is being regarded as the first step towards a High Court action. The tobacco firms may also be named as defendants at a later stage. Helen Clark, the Prime Minister, has ordered an investigation into whether the government should consider suing the tobacco companies for the cost to the health service of treating diseases attributed to smoking. Yesterday's action was lodged by lawyers acting for "Bubbles" Mihinui, 80, a guide in the tourist centre of Rotorua, and the Maori Council, an umbrella group of Maori tribal interests. Mrs Mihinui, who has smoked since she was 20, claims she became a compulsive smoker, able to give up the habit only for Lent. The papers claim that Maoris have been affected by the failure of the Crown to provide equitably for Maori health services and education. They also claim that the tax raised from Maori smokers is "disproportionate to government expenditure on Maori hospitalisation from smoking-related causes". The tobacco plant was introduced to New Zealand by Captain James Cook and its use became widespread when European settlers began to arrive in large numbers early in the 19th century. Once Maoris acquired the smoking habit, tobacco became an unofficial currency along with guns, blankets and whisky. Maoris smoke twice as much as the rest of the population and statistics show that they suffer disproportionately from smoking-related illnesses. From rob@essential.org Fri, 12 May 2000 17:15:17 -0400 (EDT) Date: Fri, 12 May 2000 17:15:17 -0400 (EDT) From: Robert Weissman rob@essential.org Subject: [Intl-tobacco] list update; Canada raising taxes Dear Friends: Our lists server at Essential Information has been down for the last three weeks or so, which is why you haven't seen my name in your inbox recently. We appear to be back on line, and ready to get things moving again. It is possible that some of you will have difficulty, or that some who asked to be removed from the list have been reinstated. If you have any trouble, please send me a note directly (rob@essential.org), and I'll attend to the problem as soon as possible. Robert Weissman Essential Information | Internet: rob@essential.org EDITORIAL: When it comes to cigarettes, tax 'em if you got 'em Ottawa and some provinces slashed tobacco taxes in 1994 to reduce smuggling. Fortunately, times have changed Source: Globe and Mail, Friday, 5/12/00 After a few years spent licking its wounds, the federal government is talking of a rematch with the tobacco smugglers. This is excellent news. As a matter of public policy, raising taxes on cigarettes is a no-brainer. Tobacco is a proven health hazard. Making it more expensive encourages smokers to kick the habit and helps discourage others, particularly young people, from starting. If governments receive a financial windfall in the bargain for such programs as health care, so much the better. That was Ottawa's reasoning when it sharply increased cigarette taxes in 1989 and 1991, raising the average price of a carton to $48. However, since the same cartons were selling in the United States in 1991 for $22 a carton, the incentive was there for a massive smuggling operation. Canadian cigarettes were exported to the U.S. free of Canadian tax, and, if earmarked for other destinations, free even of U.S. tax. They could then be smuggled back into Canada at enormous profit. Consider the case of Les Thompson, who worked for a subsidiary of R.J. Reynolds Tobacco Co. called Northern Brands International, and who pleaded guilty in U.S. court to money-laundering and defrauding the Canadian government of $72-million (U.S.) in taxes. The loop he used was simple. U.S. customs officials were told that cigarettes exported from Canada were destined for Russia and Estonia, but the cartons were in reality handed off to smugglers who took them back to Canada. They did so by way of the Akwesasne Reserve straddling the Canada-U.S. border; its New York section, the St. Regis Mohawk Reservation, is a short boat ride from the section in Quebec and Ontario. (The Mohawk Council of Akwesasne last December decried the social damage done to the reserve by tobacco smuggling.) This and similar activity was so great that, by 1994, contraband cigarettes accounted for an estimated 40 per cent of those sold in Canada; 80 per cent of cigarettes exported from the country were being smuggled back in. The federal government and provinces east of Manitoba collapsed under the pressure and reduced the price of a carton by as much as $20. (Western Canada, under less pressure, didn't join in.) The proportion of young people smoking promptly rose. Now federal Finance Minister Paul Martin and his provincial counterparts in Central and Eastern Canada are considering raising the taxes on a carton by as much as $15. Though smuggling is far from a dead issue, they can take heart from two developments. For one, the activities of tobacco companies during the period of massive smuggling have been put under the microscope. Ottawa last December filed a civil suit in U.S. Federal Court against Toronto-based RJR-Macdonald, alleging, as Justice Minister Anne McLellan phrased it for reporters, "that the RJR-related companies used an elaborate network of smugglers and offshore shell companies to ensure an abundant supply of cheap cigarettes to the Canadian market." Documents from 1994 made public by British American Tobacco PLC, as part of the settlement of a U.S. court case, suggest that Imperial Tobacco made its major brands available to smugglers to regain market share from competitors who were benefiting from smuggling. The tobacco companies have strongly denied any involvement in the smuggling. Whatever the resolution of these allegations of complicity, cigarette manufacturers may feel a keener sense of obligation this time round to do what they can to discourage the contraband traffic. The finance ministers will also benefit from an increase in the price of cigarettes in northern U.S. border states. According to yesterday's article by Globe reporter Shawn McCarthy, a carton there costs as much as $15 more than one in Central and Eastern Canada. That leaves room for Canadian prices to climb a great distance before they whet the smugglers' appetites. Mr. Martin and his colleagues should use every inch of that distance to make cigarettes more -- and, for the sake of those who might otherwise get or remain hooked, prohibitively -- expensive. From rob@essential.org Tue, 16 May 2000 11:00:43 -0400 (EDT) Date: Tue, 16 May 2000 11:00:43 -0400 (EDT) From: Robert Weissman rob@essential.org Subject: [Intl-tobacco] First Damage Suit Filed Over Indirect Smoking (S. Korea) First Damage Suit Filed Over Indirect Smoking by Park Yoon-bae / Staff Reporter Source: Korea Daily (Hankook Ilbo), Tuesday, 5/16/00 Parents of a dead 30-year-old female worker from the Pusan branch of the National Agricultural Cooperatives Federation (NACF) launched a court battle over second-hand smoking, claiming that their daughter died of asthma complicated by indirect smoking at her workplace. The victim's family filed a lawsuit with the administrative court in Seoul on Monday, demanding compensation for her death because it was apparently related with second-hand smoking. The lawsuit is drawing keen attention because it is the first time a damage suit has been filed over second-hand smoking in Korea. Currently, a trial on first-hand smoking is under way in a damage suit against the government and the Korea Tobacco and Ginseng Corp. (KT&G). Thirty-one sick smokers and their family members are demanding 307 million won ($260,000) in compensation. The woman, identified only as Kim, died of dyspnea, or difficulty in breeding, as a result of complications from asthma in February. She was reported to have worked for the NACF over the past 10 years. Kim's parents demanded in the lawsuit that the state-run Korea Labor Welfare Corp. compensate for her daughter's death since her asthma developed into a fatal disease after being exposed to second hand smoke at her workplace. The plaintiffs claimed that Kim's death should be recognized as an industrial mishap arising from second-hand smoking in the NACF's branch, where both workers and clients are free to smoke anywhere, anytime. Legal experts said the court battle will focus on the definition of second-hand smoking and the seriousness of its health risks and damage to non-smokers. They also stressed that Kim's family will have to prove that their deceased daughter was exposed to a fatal level of smoke at the workplace. In addition, the plaintiffs are expected to meet with a tough task of proving that the death of their daughter had a direct link with indirect smoking. In the United States, a group of flight attendants won an agreement on a $300 million compensation from the cigarette maker Philip Morris in 1997 in a damage suit over second-hand smoking. From rob@essential.org Wed, 17 May 2000 13:35:05 -0400 (EDT) Date: Wed, 17 May 2000 13:35:05 -0400 (EDT) From: Robert Weissman rob@essential.org Subject: [Intl-tobacco] China Lifts Curbs on Tobacco Imports From U.S., Barshefsky Says (fwd) China Lifts Curbs on Tobacco Imports From U.S., Barshefsky Says by Paul Basken Source: Bloomberg News, Wednesday, 5/17/00 Washington, May 17 (Bloomberg) -- China has agreed to drop restrictions on U.S. tobacco imports tied to its claims that the crop is unsanitary because of ``blue mold,'' U.S. Trade Representative Charlene Barshefsky said. The Chinese government sent a letters yesterday to Barshefsky and Agriculture Secretary Dan Glickman saying it now believes blue mold ``is not a problem,'' Barshefsky told a agricultural industry coalition. China already granted deep cuts in tobacco tariffs as part of an agreement it reached in November with the U.S. clearing the way for the country to join the World Trade Organization. That included a cut in its tariffs on cigarettes from 65 percent to 25 percent by 2004, Barshefsky said. Beijing probably would have been forced by the WTO to drop any restrictions on U.S. tobacco due to blue mold, which causes millions of dollars in crop damage but no known human health problems. Still, its decision to voluntary abandon the issue is significant since it comes as Congress faces a key vote on granting it normal trade ties. Barshefsky announced the Chinese decision at a breakfast meeting of the Agricultural Coalition for China Trade, a recently formed farm industry group dedicated to lobbying Congress on granting China permanent normal trade relations. The coalition includes representatives of major commodities producers such as wheat, corn, soybeans, cotton, rice, beef and pork, and also major agribusinesses, such as Cargill Inc., Bunge Corp., ConAgra Inc., Kraft Foods and Farmland industries Inc., the U.S.'s largest farmer-owned cooperative. Boosting U.S. Exports The Agriculture Department estimates China's entry into the WTO, which would lead to lower tariffs and the elimination of export subsidies, could boost U.S. farm exports by about $2 billion a year by 2005, up from almost $1 billion now. Current U.S. farm exports worldwide are projected at $49.5 billion for the year that ends Sept. 30. Supporters of permanent trade privileges for China remain short of the necessary 218 votes in the House, Barshefsky said. ``We're not quite there yet but we think that at the end of the day, the members of Congress will do the right thing,'' said Barshefsky. The lobby group's leader, Bob Stallman, president of the American Farm Bureau Federation, called the vote ``essential to the survival'' of many in his industry. The administration has no plans to seek any delay in the House vote, Barshefsky told reporters after the meeting. Barshefsky spoke before she's was scheduled to appear before a House Agriculture Committee. Of the 50-member panel, six lawmakers oppose the trade deal, said Mary Kay Thatcher, a lobbyist for the American Farm Bureau Federation. China's pledge on tobacco could help sway some wavering tobacco-state lawmakers to support the trade pact, Thatcher said From rob@essential.org Wed, 17 May 2000 18:36:12 -0400 (EDT) Date: Wed, 17 May 2000 18:36:12 -0400 (EDT) From: Robert Weissman rob@essential.org Subject: [Intl-tobacco] NGOs Question Big Tobacco's Access to WHO (fwd) Wednesday, May 17, 2000 Contact: Judy Wilkenfeld, USA Juan Almendares, Honduras Mahamane Cisse, Mali (cell) 41 79 368-1258 --For immediate release- NGOs QUESTION BIG TOBACCO'S ACCESS TO W.H.O. TREATY NEGOTIATIONS AND DEMAND OFFICIAL RECOGNITION TO PROTECT PUBLIC HEALTH We, as members of the Framework Convention Alliance, strongly object to the involvement of tobacco companies with member nations, as evidenced by industry briefing documents on the Framework Convention on Tobacco Control (FCTC). [SEE ATTACHED DOCUMENTS] Recently in Africa, British American Tobacco (BAT) held its latest briefing session with delegations to encourage "proactive support" for its interests. BAT called on the delegations to "use British American Tobacco as a source of information and data." Given the industry's record of outright lies and misinformation campaigns, it is unacceptable that BAT be considered a legitimate information resource. Based on this industry intrusion, we support the inclusion of Non-Governmental Organisations (NGOs) in the official FCTC negotiations commencing in October 2000. Without broad NGO participation, the most vocal non-governmental voices at the table will be those of the tobacco industry. It is imperative that NGOs have official observer status in the negotiation debates. While we recognise that NGOs do not and cannot have voting status, NGOs bring first-hand experience with the epidemic and with tactical manoeuvres by the tobacco companies to sabotage public health efforts. From Austria to Zimbabwe, we bear witness to industry subversion of national efforts to end their predatory practices. We expect that the sovereign member states will strive to protect the interests of civil society by including NGOs as members of their delegations to the official FCTC negotiations. We applaud Malawi for choosing health over death by including Mr. John Kapito of the Consumers' Association of Malawi on their official delegation, and encourage other countries to follow suit. There is ample precedent for inclusion of NGOs in treaty negotiations. In 1996, the Economic and Social Council (ECOSOC) issued a resolution describing a broad role for NGOs in UN negotiations. As the Secretary General of the UN stated in 1998, "NGOs have played a very significant and helpful role by establishing bridges between the United Nations and the civil society at large." Campaign for Tobacco-Free Kids, USA SOS Tabagisme, Mali German Coalition Against Smoking INFACT, USA CONACTA, Honduras Consumers' Association of Malawi American Cancer Society From rob@essential.org Wed, 17 May 2000 19:34:03 -0400 (EDT) Date: Wed, 17 May 2000 19:34:03 -0400 (EDT) From: Robert Weissman rob@essential.org Subject: [Intl-tobacco] Chinas Tobacco Industry Could Get Smoked by WTO Entry (fwd) China=92s Tobacco Industry Could Get Smoked by WTO Entry Source: China Online, Tuesday, 5/16/00 The May 10 Zhongguo Jingji Shibao (China Economic Times) reports that while China is a major tobacco country and taxes on tobacco bring in 10 percent of state revenue, the industry=92s long-standing domestic monopoly has not toughened it for international competition, a serious problem if and when China enters the World Trade Organization (WTO). According to a source from the Economic Research Institute of the State Tobacco Monopoly Bureau, China is the largest tobacco country in the world. Currently, regular smokers in China account for 25 percent of the global total, numbering 310 million. During 1995-99, China purchased an annual average of 2.2 million tons of tobacco and each year produced 33.4 million cases of cigarettes (one case contains 50,000 cigarettes). On average, China's annual production of leaf tobacco makes up some 35 percent of the global total while cigarette production and sales account for 32 percent of the global total. In recent years, China has ranked first in the world in terms of the number of smokers, the purchase of leaf tobacco, and cigarette production and sales. For a country with such a huge population of smokers and such a massive scale of tobacco production, it is self-evident that the tobacco industry plays an important role in the national economy. In 1999, China's tobacco industry brought in a total of 98.9 billion renminbi (US$11.9 billion) in industrial and commercial tax, or 10 percent of state revenue. It has been the state=92s top revenue generator for 13 consecutive years. China's tobacco industry is massive in scale and its industrial system is relatively complete. It has fostered a number of large enterprises such as Yuxi, Shanghai and Changsha cigarette factories, whose technologies and equipment are world class and whose products are competitive. However, due to China's long-standing restrictions on tobacco imports and exports, the dependency of China's tobacco industry on foreign trade has been minimal. During 1995-99, China's total imports and exports of leaf tobacco was only about 4.5 percent of domestic purchases on average, and total cigarette imports and exports made up a mere 0.8 percent of domestic output on average. On the international tobacco export market, China's leaf tobacco exports accounted for just 3.5 percent of global exports and cigarettes for only 1.8 percent. Thus, the development of China's tobacco industry has clearly depended on the domestic market. This does not accord with its position as the world's No.1 tobacco producer and makes it difficult to integrate that industry into the world economy in line with current emphasis on globalization. Impact of WTO Entry on Tobacco Market China=92s WTO entry will mean that all domestic tobacco products now under the national monopoly will face increasing foreign competition. With the industry=92s limited export capacity, the primary impact will be the shrinking domestic market share of practically all tobacco products produced under the monopoly. I. Losses From Tariff Reductions 1. Leaf Tobacco In 1999, China imposed a 40 percent import tariff and a 64 percent consolidated tax, which increased the sales price of imported leaf tobacco. For example, leaf tobacco imported from Zimbabwe sold for Rmb 16.25 (US$1.96) per kilogram, while the price of domestic leaf tobacco was Rmb 5 (US$0.60) per kilogram, or one-third that of imports. The high tariff has made domestic leaf tobacco highly competitive in price. However, if the tariff on leaf tobacco is lowered to 17 percent by 2004 as agreed to by the Chinese government, the price of imported leaf tobacco per ton will be Rmb 10,000 (US$1,208.14)=97lower than it is now. Even though large-scale imports could raise the price of leaf tobacco on the international market, China=92s imports are likely to increase sharply due to the lower prices, adversely affecting China's own leaf tobacco production. 2. Cigarettes China began to slash import duties on cigarettes in 1997 from a high of 150 percent. In 1999, the rate fell to 36 percent. Meanwhile, China=92s consolidated tax on imported cigarettes dropped to 218 percent in 1999, down 26 percentage points compared with 1997. As China had committed itself to a large-margin cut of the average tariff on all imported commodities, a high tariff on cigarettes violates that promise. Consequently, the Chinese government will continue to reduce the import duty on cigarettes during WTO negotiations. If the rate drops to the average for all imports, i.e. 15 percent in the year 2000, one packet of imported cigarette that sells for Rmb 11 (US$1.33) now (corresponding to Marlboro and 555 brands) will sell for Rmb 2 to Rmb 3 (US$0.24 to US$0.36) less after the tariff reduction. This will greatly enhance the competitiveness of imported cigarettes on the Chinese market. 3. Cigarette Machines and Associated Materials In 1999, the tariff on imported cigarette machines was 14 percent, on tows it was 12 percent and on bobbins it was 20 percent. There is not much room for reducing these tariffs, so the impact of tariff cuts on these products after WTO entry will be minimal. Most of the impact will come from the relaxation of non-tariff barriers. II. Losses From Relaxation of Non-Tariff Barriers Most of the adverse effect of cigarette imports on the domestic market after China=92s WTO entry will not come from tariff reductions, but from th= e relaxation or even abolition of non-tariff barriers. Permitted a long transition period, China's tobacco industry must gradually relax and finally abolish the quota and license controls that are now in force. Inevitably, a large influx of foreign cigarettes will result. Since there is a huge potential demand for mixed cigarettes, because foreign tobacco enterprises are strong enough to exploit the market and since foreign cigarettes are higher in quality and less harmful to smokers=92 health, it is likely that after China joins the WTO, imported cigarettes will attract a large portion of Chinese smokers. Domestic cigarettes could lose 10 percent to 20 percent of their market share within five years. Net imports of leaf tobacco will also grow rapidly. Imported leaf tobacco, especially that of high quality, will account for some 10 percent of domestic demand. The impact on the market for cigarette machines and associated materials will be severe. For example, the China-U.S. WTO agreement stipulates that the tows import quota for China must be 113,000 tons, which equals national demand at present. The agreement also calls for China to abolish its tows import quota by 2001 and cigarette machine import quota before 2002. Without the protection of non-tariff barriers, not only will the enterprises that manufacture domestic cigarette machines and associated materials have to lower the prices of their products, but also their market share will be greatly reduced. If no effective countermeasures are adopted, the impact on cigarette machine manufacturers could be devastating. The import of associated materials will also shoot up. From rob@essential.org Thu, 18 May 2000 13:54:22 -0400 (EDT) Date: Thu, 18 May 2000 13:54:22 -0400 (EDT) From: Robert Weissman rob@essential.org Subject: [Intl-tobacco] European News Bulletin - EU0019 - 15 May 2000 (fwd) !# --------------------------------- !# GLOBALink Tobacco - Weekly European News Bulletin !# --------------------------------- EUROPEAN BULLETIN EU0019 =AD 15 May 2000 Headlines FINLAND: WHO study on smoking amongst youngsters FRANCE: Hospital patients to be given smoking cessation help FRANCE / ITALY: Cigarette caused tunnel fire FRANCE/SPAIN: Altadis sheds 168 jobs HUNGARY: Smoke-free caf=E9 chain expands IRELAND: Smoky pubs: health danger to staff spurs plan for curbs NORWAY: Doctors to receive anti-smoke training UNITED KINGDOM: =A35,000 payout for boy whose mother had to work in a smok= y office UZBEKISTAN: BAT triples production Full Text FINLAND: WHO study on smoking amongst youngsters According to a report by WHO, smoking amongst boys under the age of 15 has decreased in Finland to the average level in Europe. In 1986, every third Finnish boy under the age of 15 smoked, while in 1998, only every fifth boy in the age group smoked. For girls in the same age group the figure has varied between every fourth and every fifth. According to the report, 19% of Finnish boys and 20% of the girls under the age of 15 smoke. Professor Lasse Kannas of the Finnish University of JyvUskylU emphasises that the results show the average trends. Kannas has doubts about the actual decrease in smoking amongst Finnish youngsters as the figures do not include use of snuff. Kannas does not expect that the total exposure to nicotine has changed. The WHO study included over 4,800 Finnish youngsters. Source: Helsingin Sanomat (XFB) via The Gale Group, 12 Apr 2000 FRANCE: Hospital patients to be given smoking cessation help Specialist help is to be given to hospital patients to help them stop smoking with an increase in consultations to 450 in hospitals with a capacity of more than 500 beds from the current level of 250. Each unit will include a full time nurse and a doctor who will perform six weekly sessions of three and a half hours. The measures are the result of a FFr 25mn budget, part of the Finance bill for 2000. Such consultations account for two per cent of people who stop smoking each year. Source: Le Quotidien du Medecin (XNV) via The Gale Group, 7 Apr 2000 FRANCE / ITALY: News in brief: Cigarette 'caused tunnel fire' A smouldering cigarette end is likely to have started the fire in the Mont Blanc tunnel which killed 39 people last year. This was the preliminary conclusion of experts taking part in the official investigation who conducted a detailed analysis of the burnt-out Volvo lorry at the seat of the fire in the tunnel, which connects France and Italy. The cigarette end, thrown from another vehicle, entered the lorry=92s air intake, setting fire to the air filter and then the entire engine, the experts were quoted as saying. Source: Electronic Telegraph, Saturday, 6 May 2000 FRANCE/SPAIN: Altadis Sheds 168 Jobs European tobacco company Altadis announced after an extraordinary meeting of its reorganization committee that 168 jobs will be cut due to restructuring. Altadis is also implementing a voluntary job cuts programme in its cigarettes group as part of a plan to boost performance at the division. Source: The Wall Street Journal Interactive Edition, 5/5/00 HUNGARY: Smoke-free caf=E9 chain expands A smoke-free caf=E9 chain, established by General Practitioner Gyula Morik in 1997, is set to expand across the country. Morik Cafes currently has five cafes throughout the country. Another four are to be set up by the end of 2000. Smoking is prohibited since it impairs the quality of coffee beans. Each coffee-house generates an annual turnover of Ft 24mn or more. Source: Budapest Business Journal (ANB) 10-16 Apr 2000 IRELAND: Smoky pubs health danger to staff spurs plan for curbs The highest levels of carbon monoxide from cigarette smoke have been recorded in public houses in Galway, giving rise to serious concern for the health of bar workers. Bar ventilation systems were found to be ineffective. In some instances publicans were apparently unwilling to turn on expensive ventilation systems because of incurring extra costs. Now new regulations are proposed to control the risk of passive smoking to bar staff and customers. Under current legislation, smoking is banned in a range of outlets, including hairdressing salons, bingo halls, doctors' and dentists' surgeries and chemist shops. Restaurants must provide for half of their seating space to be smoke free. But public houses and betting shops are exempt from smoking bans, despite concerns for customers, and particularly for those who work in such environments. Fifty pub workers in Dublin, all members of the Mandate trade union, have initiated legal action for damage to their health arising from the smoky atmosphere in which they have been obliged to work. The first of the landmark cases is not expected to be heard before next year. The study of passive smoking in pubs by Senior Environmental Health Officer, Maurice Mulcahy has revealed significantly higher levels of environmental tobacco smoke in pubs than were previously realised. Not only were the vast majority of bars surveyed unable to maintain effective ventilation, but readings at two bars showed unprecedented levels of carbon monoxide, suggesting that other tobacco constituents were also at high levels. Mr Mulcahy said: =93The readings were quite shocking, particularly as they were over 50 per cent higher than those recorded anywhere else in the world. No matter how limited out knowledge of the trigger level for cancer or cardiovascular disease or strokes, the duration of environmental tobacco smoke exposure of bar personnel in this study in combination with these new found peaks of a marker gas is a cause for concern. =93It suggests that, failing an outright ban on smoking in bars, much more work needs to be done to ensure a minimum of 12 fresh air changes per hour and to educate all those in the trade to manage passive smoking risks effectively,=94 he added. One Galway city publican who attempted to make his premises smoke-free, had to revert to allowing customers to smoke after only three months of the experiment, as he was losing trade. A growing lobby of health professionals, environmental health officers and consumer groups are now anxious to see Irish pubs follow the lead of restaurants by at least providing a smoke-free area. Environmental health officers are ideally seeking a change of emphasis in legislation which would only allow smoking in pubs shown to have adequate ventilation. Mr Mulcahy added: =93Enforcement of the 12 air changes per hour would go some way to dilute the effects of second-hand smoke on those involuntarily exposed, most especially bar personnel.=94 Mr Mulcahy=92s paper on passive smoking in bars has been prepared for submission to the Robens Centre for Occupational Safety at the University of Surrey and was presented to an environmental health conference organised by the Irish Environmental Health Officers Associations and the University of Ulster in Cavan yesterday. Leaders of the Vintners Federation of Ireland at their AGM in Wexford have called on the Government and the tobacco industry to help publicans install costly ventilation equipment to improve air quality in bars. Source: Irish Independent, Thursday, 11 May 2000 NORWAY: Doctors to receive anti-smoke training The Norwegian public health institute (Statens institutt for folkehelse) is developing a training programme for physicians that will help them help smokers to kick the habit. According to Karl Erik Lund, researcher at the institute, Norwegian physicians have never received any such training and lack the techniques needed to help their patients. Along with a special computer programme designed for the Norwegian doctor's association (Den norske legeforening), the institute hopes to train doctors to help 20,000 patients to stop smoking each year. Currently, the number is 5,000 patients. Source: Aftenposten (AF) via The Gale Group, 10 Apr 2000 UNITED KINGDOM: =A35,000 payout for boy whose mother had to work in a smok= y office A mother who claimed that passive smoking affected her unborn child=92s health has won a battle for compensation which could lead to thousands of similar cases. Colette Comstive says her son Matthew, now seven, suffers asthma and recurring chest infections after she was forced to work in a smoky office during her pregnancy. Despite her complaints, her employer, the catalogue company Great Universal Stores, failed to move her to a smoke-free environment at its office in Burnley. Following a four-year legal fight, the boy was awarded =A35,000, agreed by = a judge in chambers. GUS, which denied liability, also agreed to pay =A35,800 costs. Mrs Comstive worked as a part-time telephone clerk for GUS. She said that of the 100 staff in the open- plan office, around 90 smoked. She was often forced to sit next to a smoker and even the non- smoking table, to which she was eventually moved, was surrounded by clouds of smoke. =93The atmosphere was excessively smoky,=94 she said. =93Unfortunately beca= use of the situation we were working in it was not possible to move me out of the office.=94 Matthew was born in August 1992 weighing 6lb 11oz and began suffering respiratory problems at six months. His mother claims that by the age of two he had suffered at least 13 chest infections which required medical treatment. His asthma now forces him to use an inhaler daily during the summer. And he is so susceptible to illness that each winter he suffers on average five chest infections. In September 1995, two years after leaving the company, Mrs Comstive launched her legal battle for compensation claiming her son's illness had been caused as a direct result of passive smoking at work. Mrs Comstive, now a customer services adviser for a high street bank, decided to accept the payout rather than continue her battle as the amount was thought to be similar to that which could have been awarded if the matter had gone to trial. Her son will receive the cash, which has been invested by his legal team, when he is 18. Dr Ian Mecrow, consultant paediatrician at Stockport's Stepping Hill Hospital, who advised Mrs Comstive's legal team, said: =93There is no doub= t that mothers smoking in pregnancy have babies who are of lighter birth weight and are more likely to have chest infections. The logical argument therefore is that the same will be true for babies of women passively exposed to tobacco smoke.=94 Source: Daily Mail, 13 May 2000 UZBEKISTAN: BAT triples production British American Tobacco Uzbekistan has tripled production to dominate the Uzbek market in its five years of operations. The increase in sales from last year earned the joint venture between BAT and the former Uzbekistan tobacco monopoly more than $10 million from the foreign market. The company said it has seen an increase in domestic sales of 500% since operations began in 1995. Source: Tobacco International, April 2000 Amanda Sandford Research Manager ASH - 102 Clifton Street - LONDON EC2A 4HW tel: 020 7739 5902 - fax: 020 7613 0531 From rob@essential.org Fri, 19 May 2000 12:25:25 -0400 (EDT) Date: Fri, 19 May 2000 12:25:25 -0400 (EDT) From: Robert Weissman rob@essential.org Subject: [Intl-tobacco] Mexico's curb on smoking in trouble (fwd) Mexico's curb on smoking in trouble Enforcement record poor on past efforts by Ricardo Sandoval / KNIGHT RIDDER NEWS SERVICE Source: Lexington Herald-Leader, Friday, 5/19/00 MEXICO CITY It's billed as a clean start for anti-smoking efforts in Mexico, where 45,000 people died last year of smoking-related illness and a million more took up the tobacco habit. But even before it gets onto the books next week, a new rule banning smoking in Mexico's federal office buildings is in trouble. In a culture in which smokers light up pretty much wherever they please, experts fear Mexican bureaucrats will ignore the congressional edict, and that it won't be enforced. Guadalupe Ponciano, a cardiovascular specialist at the government-run Manuel G. Gonzales General Hospital in Mexico City, called the congressional move ``the strongest action yet by the government against a group of rampant smokers in Mexico.'' ``That it's aimed at the government itself gives the government a moral basis to then protect non-smokers in other areas of Mexican life,'' Ponciano said. But, as with past rules against smoking, Ponciano fears the new regulation may fail because of a lack of enforcement that's chronic in Mexico. ``Well, you caught me smoking, so what does that say about how I feel about the rule?'' asked Concepcion Garcia, 40, a secretary who was puffing away inside a government office building. ``No one here has told us anything about a new rule against smoking. I'll stop when they force me to and maybe it's a good thing. It could make me quit this ugly vice.'' Garcia is among the estimated 14 million Mexicans who smoke and who are pushing up health-care costs. Percentage-wise, far more Americans smoke, but the trend is static. In Mexico, with a population of 100 million, the numbers of smokers and smoking-related illnesses are growing fast. Public hospitals alone examined more than a million patients with smoking-related complaints last year, according to government figures. Progress against smoking in Mexico has been gradual. A decade ago, non-smokers applauded federal rules against smoking in hospitals and airports. Last year, even San Lazaro, the Mexican Congress's expansive headquarters, was put off-limits to smokers. But only hospitals and passenger jets, it seems, are truly smoke-free. From rob@essential.org Tue, 23 May 2000 00:02:04 -0400 (EDT) Date: Tue, 23 May 2000 00:02:04 -0400 (EDT) From: Robert Weissman rob@essential.org Subject: [Intl-tobacco] UK Tobacco advertising ban - legal delays so far will cost over 1,300 lives (fwd) Tobacco advertising ban - legal delays so far will cost over 1,300 lives Source: ASH London, Monday, 5/22/00 Press Release Action on Smoking and Health ASH today called on the House of Lords to end the block on the ban on tobacco advertising. Using Government figures, ASH showed that the delay so far (164 days) would ultimately cause the avoidable loss of over 1,300 lives due to the extra smoking driven by continued advertising[1]. The advertising ban [2] has been opposed by the tobacco industry from the start. Having failed in the Appeal Court, it is continuing its legal delaying tactics in the House of Lords today (Monday) [3]. "Their Lordships should understand that this is quite literally a matter of life and death, with thousands of lives at stake. Smoking is so harmful that you don't need big changes in consumption to create huge health effects." said Clive Bates, Director of ASH. The tobacco advertising directive was agreed in June 1998 and a ban on tobacco advertising forms an important part of the Government's tobacco White Paper, and 1997 election manifesto. The Government had planned to introduce the first phase of the advertising ban on 10 December 1999 but was blocked by tobacco industry legal action. If the procedural and legal delays continue to block the advertising ban, ASH will press Ministers to introduce a comprehensive Tobacco Bill as primary legislation in the Queen's speech this year. This offers the opportunity to block the loopholes in the existing advertising directive and introduce other controls on the tobacco industry - it could even offer a better solution. Notes to the Editor [1] The Tobacco (Prohibition of Advertising and Promotion) Regulations 1999 p.16. The Government cautiously estimates that banning tobacco advertising will cause tobacco consumption to drop by 2.5%. The Government concludes "As mentioned earlier, smoking is estimated to kill 120,000 people in the UK each year. A 2.5% reduction in the number killed would mean that about 3000 lives a year could be saved." 3000 lives per year equates to 8.2 lives per day or 1345 lives in the 164 days of delay so far introduced by legal blocking tactics. See the Government assessment at: www.doh.gov.uk/pub/docs/doh/tobacco2.pdf [2] Directive 98/43/EC see explanation at: www.ash.org.uk/papers/eu-ban1.html and more detailed information at www.ash.org.uk/campaign.html [3] The tobacco companies are requesting a delay in implementing the advertising ban pending the resolution of their substantive complaint to the European Court of Justice - this is a challenge to the legal base of the Directive. The Advocate General of the ECJ will give an opinion on 15th June and it is unlikely that the Lords will decide before hearing that. The final decision of the ECJ is likely before October this year, and it is possible that the Lords will consider this near enough to justify waiting for the ECJ ruling - even if, like the Court of Appeal, they dismiss the companies' substantive arguments. In that event, the tobacco industry will have secured a delay of about one year. [4] The tobacco industry has a long and varied history of saying one thing in public, whilst knowing the truth in private: www.ash.org.uk/papers/tedbates1.html and www.ash.org.uk/papers/tobexpld4.html Contact Clive Bates, ASH (020) 7739 5902 From rob@essential.org Tue, 23 May 2000 00:27:45 -0400 (EDT) Date: Tue, 23 May 2000 00:27:45 -0400 (EDT) From: Robert Weissman rob@essential.org Subject: [Intl-tobacco] Study: China Deal May Hurt Deficit (fwd) This is worth reading through for the bit on tobacco. More information on this topic following this post. Robert Weissman Essential Information=09=09=09| Internet:=09rob@essential.org Study: China Deal May Hurt Deficit by Martin Crutsinger / AP Economics Writer Monday, May 22, 2000; 3:53 p.m. EDT WASHINGTON =96=96 Supporters of a landmark trade bill with China have a ticklish problem =96 the government's major study of the measure indicates it will make America's already huge trade deficit with China worse rather than better. U.S. Trade Representative Charlene Barshefksy, who requested the review, calls the finished product "a very incomplete study, and to be frank, not much utilized." But opponents have gleefully seized on the report by the U.S. International Trade Commission to do their own analysis projecting the China deal will result in the loss of 872,000 American jobs over the next decade. Preposterous, says the Clinton administration, which published its own state-by-state assessment that proclaimed the China deal would "open new export and employment opportunities in all 50 states." As in the huge debate over free trade with Mexico in 1993, supporters and opponents offer starkly different views of the future if Congress passes legislation that would end the annual congressional review of China's trade privileges. President Clinton and his economic team contend the China agreement is a no-brainer. All the trade concessions are being made by China. In return for America's support for its bid to join the World Trade Organization, China would dismantle barriers that U.S. corporations and farmers have long complained about. The trade commission did predict that U.S. exports would rise by 10 percent. The study said the biggest benefits would go to American farmers, especially those producing cotton, tobacco and vegetable oils, and industries making paper, chemicals, plastics and airplanes. But the trade commission also predicted that imports from China to the United States would rise by 7 percent. Although U.S. trade barriers are not being changed, China's products will become more competitive on world markets as the country's efficiency improves by lowering its own barriers. Since China already sells $6 in the U.S. market for every $1 American manages to sell in China, the trade commission's projections would mean an increase in America's trade deficit with China. That deficit hit a record $68.7 billion last year, the largest for any country other than Japan. Chinese imports totaled $81.8 billion, reflecting that it is America's No. 1 supplier of toys, apparel, shoes and consumer electronics. U.S. exports to China totaled just $13.1 billion. Like the ITC report, a study by the Economic Policy Institute, a labor-supported think tank, called "Labor and the States," projected that over the next decade, U.S. job losses would total 872,091 with every industry suffering. California led all states with 84,294 lost jobs. "This is a very conservative estimate of job losses," said Robert Scott, author of the EPI study. "It assumes that China will live up to the agreement and not devalue its currency to gain competitive advantage." The administration, however, contends the job-loss report wrongly assumes that the gains made when the agreement is fully phased in will continue multiplying at the same high rate over the next decade. Barshefsky also attacked the ITC report's methodology because it focused only on tariff cuts and not the benefits from the removal of non-tariff barriers. "It is a terribly incomplete study because it only assumes tariff reductions," she told The Associated Press in an interview. "It didn't factor in things like trading rights and rights of distribution." New York investment firm Goldman Sachs has estimated that by 2005, U.S. exports to China could be $13.9 billion higher, double the current level, with 57 percent of the gain coming from the tariff cuts, 26 percent from the elimination of non-tariff barriers and the rest coming from higher U.S. investment in the country. But organized labor says rising U.S. investment in China will simply mean more U.S. companies building factories in China to take advantage of cheap wages. "We've seen a lot of good jobs become bad jobs =96 13-cent an hour jobs, child labor jobs, forced labor jobs," says AFL-CIO President John Sweeney. "That is the pattern that corporations take when they invest in other countries." =96=96=96 The bills are H.R. 4444 and S. 2277 On the Net: White House site: http://www.chinapntr.gov AFL-CIO site: http://www.aflcio.org/publ/press2000/pr0222.htm =A9 Copyright 2000 The Associated Press Back to the top From rob@essential.org Tue, 23 May 2000 00:28:48 -0400 (EDT) Date: Tue, 23 May 2000 00:28:48 -0400 (EDT) From: Robert Weissman rob@essential.org Subject: [Intl-tobacco] TFK Disappointed by Tobacco Provisions in China Trade Bill (fwd) 28 April 2000 Contact: Judith P. Wilkenfeld =09 Director, Campaign for Tobacco Free Kid's WHO/Framework Convention Initiative CAMPAIGN DISAPPOINTED BY TOBACCO PROVISIONS IN CHINA TRADE BILL The Campaign for Tobacco Free Kids today released the following statement: The Campaign for Tobacco Free Kids is deeply disappointed that the Administration has negotiated with China for a significant reduction in its tariffs on tobacco and tobacco products, as disclosed in the recently declassified text of the agreement now before Congress. Smoking in China is already predicted to claim the lives of more than 150 million current smokers and more than 50 million of the children alive in China today. While it was not the intention of the Administration to effect smoking rates in China, we believe that the proposed tariff reductions could have that result. If this were to occur by =93only=94 one or two percent, millio= ns of additional deaths will result. Should this agreement be approved, we will call on the Administration and Congress to waive enforcement of the tobacco-related provisions in the bill unless the Department of Health and Human Services can demonstrate that they promote public health. If the trade pact is ultimately rejected by Congress, we will urge the Administration to abstain from seeking increased market access for tobacco products in future negotiations. China: Why Trade Policy Affects Public Health Econometric research in other markets forced open by U.S. trade pressure (Thailand, Japan, South Korea and Taiwan) found that the average increase in per capita cigarette consumption attributable to U.S. tobacco trade actions was 10 percent. Providing open access to China=92s vast existing an= d potential tobacco market will create a huge economic incentive for domestic and foreign companies to compete aggressively for =93new smokers= =94, which in China means targeting traditionally nonsmoking women and children. Increased competition will also make highly sophisticated Western cigarettes much more available. Cigarettes such as Marlboro are carefully engineered to create and sustain addiction, and include flavorings and other additives that make them more appealing than Chinese cigarettes to traditionally nonsmoking women and children. Lower tariffs and increased competition will also create more intense price competition and thus lower cigarette prices. Price is known to be an enormous factor in smoking prevalence and cigarette consumption, especially in developing nations and among children. Finally, trade pressure on China=92 s domestic tobacco monopoly will inevitably lead it to compete aggressively in the cigarette export market to make up for lost market share. Logical targets for China=92s cigarette exports are other developing nations in Asia and beyond. This likely transformation of China=92s enormous monopoly into a global competitor means that forcing increased access for Western cigarettes in China is likely to be a public health catastrophe both for China and the world. When U.S. Trade Policy Conflicts with Public Health The Campaign believes that when U.S. trade policy conflicts with public health interests, concern for human life and public health should take precedence over other goals such as increased market access for the U.S. tobacco industry. In no case should the United States take any action that has the effect of increasing tobacco consumption overseas. The entry of multinational tobacco companies in previously closed markets has been shown to increase tobacco use within those markets. Therefore, the United States should not seek to lower foreign tariffs or other trade barriers on tobacco products - even if those policies were developed for protectionist purposes - if those barriers are applied equally to all foreign countries. In all other cases, the United States should not seek to break down tobacco-related trade barriers unless the Secretary of Health and Human Services determines that the trade action does not pose a threat to public health by stimulating higher rates of tobacco use. Tobacco trade policy decisions should be dealt with openly with ample opportunity for public input, and the reasoning behind any decision should be made public before any action is taken. From rob@essential.org Tue, 23 May 2000 00:32:01 -0400 (EDT) Date: Tue, 23 May 2000 00:32:01 -0400 (EDT) From: Robert Weissman rob@essential.org Subject: [Intl-tobacco] Save Lives on China Trade deal The PNTR vote in Congress -- with a "yes" vote portending shocking increases in tobacco-related disease and death in China -- is neck and neck. If you live in the United States, call your representative at 1-877-722-7494 (toll free), and urge them to vote "no" on PNTR. Robert Weissman Essential Information | Internet: rob@essential.org May 3, 2000 William J. Clinton The President The White House Washington, DC 20500 Dear Mr. President: We are writing to express our grave concern about the tobacco provisions in the U.S.-China trade deal and the pending vote to grant China permanent normal trade relations (PNTR). We believe that the deal would increase U.S. tobacco company access to the Chinese market, increase the companies' political influence in China, undermine tobacco controls in China, result in increased smoking rates and tobacco-related deaths. As you know, the agreement contains specific provisions mandating a reduction in tariffs on imported cigarettes, from a base rate of 65 to 25 by January 1, 2004. It also requires China's compliance with the WTO's Trade-Related Investment Measures agreement, which prevents discrimination against imports on the basis of performance requirements of any kind. The agreement excludes tobacco from Chinese concessions on retail and distribution rights. It is unclear if the tobacco category includes cigarettes. The papers uncovered in the tobacco litigation have confirmed what has long been obvious: breaking into the Chinese market is a top priority for Philip Morris and Big Tobacco, and high tariffs on imported cigarettes are a major obstacle to the U.S. companies gaining a substantial presence in China. The lowering of tobacco tariffs in connection with the U.S.-China agreement will go a long way to knock down the walls that have kept the U.S. companies out of China. And even if the retail and distribution rights do not extend to imported cigarettes -- a point that is not obvious to us -- the tariff reductions are dramatic in their own right. Moreover, the tariff reductions will give Philip Morris a substantial foot in the door to push for elimination on restrictions on its ability to do business in China. As you know, the U.S. tobacco companies have a long and sordid history of entering Asian markets with U.S. government assistance. When the U.S. companies have entered these markets, not only have they gained substantial market share, but smoking rates have gone up. In the case of South Korea, after the entry of U.S. companies, smoking rates among teenage boys went from 18 to 29 percent in a single year, according to GAO. The rate among girls more than quintupled, rising to 8.7 percent. That jump in smoking rates was presumably due to the introduction of slick U.S. marketing and advertising techniques. Over the long term, we have seen that the introduction of these techniques leads to a transformation of domestic companies -- faced with competition, they too begin to employ similar promotional techniques. Perhaps limitations on U.S. corporate activity, or existing Chinese tobacco control regulations, would prevent the jump in smoking rates in China from being as high as they are in Korea and elsewhere in Asia. But given the enormity of the Chinese market, even small up ticks in the smoking rate will lead to a surge in tobacco-related disease and death, probably on the order of hundreds of thousands or more. Mr. Clinton, we know there are many factors at play on the PNTR issue. But we believe the public health stakes involved in the tobacco opening are great enough that they should override other considerations. Sincerely, Co-Chairs of SAVE LIVES, NOT TOBACCO: The Coalition for Accountability Cassandra Welch, American Lung Association Tom Bantle, Public Citizen William Godshall, Smoke-Free Pennsylvania From rob@essential.org Tue, 23 May 2000 12:16:26 -0400 (EDT) Date: Tue, 23 May 2000 12:16:26 -0400 (EDT) From: Robert Weissman rob@essential.org Subject: [Intl-tobacco] Malaysia: CAP: Impose stricter controls on tobacco use (fwd) CAP: Impose stricter controls on tobacco use by Jessinta Tan MALAYSIA; Source: The Star (Malaysia), Sunday, 5/21/00 PENANG: The Government should gazette and enforce fatwa (Islamic ruling) = =20 declaring smoking as haram (prohibited), the Consumers Association of Penang (CAP) said yesterday. Its vice-president Mohideen Abdul Kader said the fatwa provided by the state religious committees in Selangor and Kedah in 1995 had not been gazetted. He said the Government should gazette and enforce the fatwa in view of the serious health threats posed by smoking. "In drawing up a policy on smoking, the Government should place the health and lives of millions of people before the profits of tobacco companies,'' he said at CAP's Islamic Stand on the Cigarette Industry seminar here yesterday. He also urged the Government to impose stricter controls on tobacco use. "Ban all forms of direct or indirect promotions and sponsorship activities by tobacco companies. Register nicotine as an addictive drug and license retail sales of cigarettes. "Increase taxes on tobacco and put cigarettes beyond the reach of children and the poor,'' he said, adding that Pusat Islam could play a more active role in educating the Muslim community. Universiti Malaya medical faculty lecturer Dr Nabilla Al-Sadat Abdul Mohsein said claims by the tobacco industry that there were no economically viable alternatives to growing tobacco were constantly being disputed. She said there were many crops that could grow on land currently used for tobacco cultivation. "They include the majority of grain crops and vegetables such as cabbage, potatoes, chillies and roselle,'' she said in her paper. Universiti Sains Malaysia's Dr Mohd Isa Abdul Majid and Dr Dzulkifli Abdul Razak said cigarettes and tobacco use should be banned because they contained an addictive drug. "Addiction to smoking is the same as addiction to drugs such as heroin and cocaine and alcohol,'' they said in a working paper. They said a cigarette contained about 4,000 types of chemicals, including poisonous and carcinogenic substances. Pollution from the chemicals had an effect on non-smokers and the environment, they added. Copyright =A9 1995-2000. Star Publications (Malaysia) Bhd. (Co No. 10894-D) All rights reserved. From rob@essential.org Tue, 23 May 2000 12:40:38 -0400 (EDT) Date: Tue, 23 May 2000 12:40:38 -0400 (EDT) From: Robert Weissman rob@essential.org Subject: [Intl-tobacco] European News Bulletin - EU0020 - 22 May 2000 (fwd) !# --------------------------------- !# GLOBALink Tobacco - Weekly European News Bulletin !# --------------------------------- EUROPEAN NEWS BULLETIN EU0020 =96 22 May 2000 Headlines FINLAND: Tobacco sales worth US$ 975mn in 1999 FINLAND/RUSSIA: Twinned towns to get stop smoking aids GERMANY: Tobacco market continues to expand ITALY: Health minister launches proposal to ban smoking in public places SPAIN: Canalenos starts production of cigars INTERNATIONAL CHINA: Tobacco firm to diversify its business Full Text FINLAND: Tobacco sales worth US$ 975mn in 1999 In Finland, legal tobacco sales totalled FIM 6,076.6mn (USD 975mn) in 1999, up by FIM 166mn from 1998. Cigarette sales were valued at FIM 5,212mn, pipe and other tobacco sales FIM 558mn, cigar sales FIM 178mn and smoking equipment sales FIM 129mn. The number of cigarettes sold totalled 4,798 million and cigars 73 million. Finnish retailers estimate that smuggling and private imports of tobacco products are worth approx. FIM 1bn. Finnish Amer Tobacco was the market leader in 1999 with a market share of 76.2%, up from 74.7% in 1998. Seita's market share declined slightly and BAT's by over 1 percentage point. The leading cigarette brand was Marlboro with a market share of 32%. Source: Kauppalehti (XFD) via The Gale Group, 6 Apr 2000 FINLAND/RUSSIA: Twinned towns to get stop smoking aids The Finnish town of Kuusankoski intends to become smoke-free and hopes to help break the nicotine habit in its Russian friendship town of Vologda. Kuusankoski is to take nicotine treatment products to Vologda to help 3,000 residents to stop smoking. The drugs have been donated by the pharmaceutical company which markets the products. Finnish experts will teach the Russians how to implement courses to help smokers to stop. The results of the project will be published in some scientific publication both in Finland and in Russia. In Russia, over two thirds of men in the working age smoke. Source: Kouvolan Sanomat (XYV) via the Gale Group, 04 Apr 2000 GERMANY: Tobacco market continues to expand Contrary to the trend in most European countries, the tobacco market in Germany is still growing. The Federal Statistics Office reported that in 1999, the value of the market was DM41.2 bn (US$20.24 bn), representing a 5.9 per cent rise on the 1998 turnover. Cigarette sales totalled DM 38.29bn (up 6.8 percent from 1998). In terms of quantity, 145.3 bn cigarettes were sold (up 5 percent). Philip Morris=92s Marlboro brand continued to be the market leader with a 33.4 per cent market share. =20 Marlboro is followed by Reemtsma=92s West brand which has a 10.6 per cent market share. While these figures hint at a strong market, there are some signs that an anti-tobacco sentiment is beginning to develop. The issue of tobacco additives has been raised in the media including accusations that the tobacco companies have added substances that cause or increase addiction. This prompted the German association of cigarette Manufacturers (VdC) to dismiss the accusations as =93totally false=94. According to Tobacco Reporter, new restrictions on tobacco advertising =93suggest that the business environment is becoming more challenging for German cigarette makers=94. However, the Government has not withdrawn its opposition to the EU tobacco advertising directive and Chancellor Schroeder is quoted as saying that =93one should be able to advertise products which have been legally produced.=94 Source: Tobacco Reporter, April 2000 ITALY: Health minister launches proposal to ban smoking in public places Italians' habit of having a cigarette with an espresso after lunch could soon be a thing of the past if Health Minister Umberto Veronesi has his way. Veronesi, one of the world's leading cancer specialists, has presented a draft law that if passed would practically ban smoking everywhere in Italy except for private homes. The proposal would forbid smoking in all public areas, including ministries, hospitals and airports. The ban would also include bars, restaurants and discotheques. The law, which is due to be discussed at the next cabinet meeting, would also include fines from 100,000 lire ($46.15) to 500,000 lire if the ban is broken. =93I have educated my children to keep themselves away from smoking and I think that any one who cares about the well-being of their loved ones should do the same,=94 Veronesi, a staunch anti-smoker, told newspaper La Repubblica in an interview. =93As a doctor I've always tried to convince smokers to quit, because you can stop the damage before it becomes irreversible. Veronesi, however, is not the first Italian health minister to try to stub out the nation's passion for cigarettes. Since 1975, three laws have been introduced banning smoking in places like hospitals, cinemas, ministries, offices and restaurants. The laws have been largely ignored. Consumer association Codacons, speaking on behalf of Italy's 14 million smokers, has asked why a new law is needed rather than a directive calling for the strict implementation of the three that already exist. Source: Reuters, 18 May 2000 SPAIN: Canalenos starts production of cigars Spanish tobacco producer Canalenos (Compania de Tabacos de la Canal de Navarres) has been awarded the third tobacco licence in Spain, which enables the firm to produce tobacco products. The firm has invested Pta 100mn in the construction of a factory in Chella (Valencia). The company expects to total 400,000 cigars produced during its first year. Source: Cinco Dias (CDS) via the Gale Group, 6 April 2000 INTERNATIONAL CHINA: Tobacco firm to diversify its business China's Yunnan Enterprise Holdings, a tobacco trader, is to diversify its business by venturing into the fields of information technology and biomedical science. The company is in talks with the Yunnan Provincial government to operate and construct broadband fibre-optic networks in several cities in Yunnan. Additionally, the company plans to acquire a drug company which produces an intravenous drug used to replenish white blood cells lost during cancer treatment. The company will finance the acquisition by issuing new shares, amounting to 20% of its enlarged share capital. South China Morning Post (XKT) via the Gale Group, 11 Apr 2000 Amanda Sandford Research Manager ASH 102 Clifton Street LONDON EC2A 4HW tel: 020 7739 5902 fax: 020 7613 0531 From rob@essential.org Tue, 23 May 2000 19:58:29 -0400 (EDT) Date: Tue, 23 May 2000 19:58:29 -0400 (EDT) From: Robert Weissman rob@essential.org Subject: [Intl-tobacco] Russia: Anti-smoking campaign launched in St. Petersburg. (fwd) by (Itar-Tass) via NewsEdge Source: NewsEdge, Monday, 5/22/00 ST.PETERSBURG, May 19 (Itar-Tass) via NewsEdge Corporation - The biggest tobacco companies, including Philip Morris, British American Tobacco, J.T. International and Reemtsma, have launched a campaign in St.Petersburg with the aim to limit tobacco sale to adolescents. A special anti-smoking programme will be realised in 63 big cities of Russia where a broad advertisement campaign will be launched to warn visitors of shopping areas about a threat to human health caused by smoking. Tobacco producers are guided by the " Code of the marketing responsibility" which strictly specifies the age of tobacco consumers, proceeding from the general assumption that smoking might be a choice consciously made by a grown-up person only. According to representatives of tobacco producing companies, the anti-smoking programme has been tested in Moscow where the assigned information was advertised on around 70 shopping areas in the capital. The organizers of the anti- smoking campaign are hoping that salesmen, parents, teachers and the city authorities and broad public circles will pool their efforts to achieve the goal. Russian lawmakers have a subject to think over now; in ninety world countries age restrictions of tobacco consumption have been in effect. ere/ast From rob@essential.org Tue, 23 May 2000 20:04:09 -0400 (EDT) Date: Tue, 23 May 2000 20:04:09 -0400 (EDT) From: Robert Weissman rob@essential.org Subject: [Intl-tobacco] Beijing to Remove Cigarrete Stalls in 130 Streets (fwd) Beijing to Remove Cigarrete Stalls in 130 Streets Source: Tobacco China, Tuesday, 5/23/00 According to the Beijing Municipal Patriotic Health Commission, cigarette stalls are forbidden to be located along the Qianmen Street, Dongdan Yinjie Street and Xidan Beidajie Street. By the end of May next year, 130 streets in Beijing will not allow people to smoke in public places. Enditem From rob@essential.org Wed, 24 May 2000 11:02:15 -0400 (EDT) Date: Wed, 24 May 2000 11:02:15 -0400 (EDT) From: Robert Weissman rob@essential.org Subject: [Intl-tobacco] China Drops Ban on U.S. Tobacco leaf China Drops Ban on U.S. Tobacco Source: AP, Tuesday, 5/23/00 Tuesday, May 23, 2000; 6:46 p.m. EDT WASHINGTON =96=96 China dropped an 11-year-old ban on the importation of American tobacco Tuesday on the eve of the House vote on whether to grant the Chinese permanent normal trade relations. In a letter to the U.S. trade representative announcing the end of the ban, Chinese Ambassador Li Zhaoxing said "such good news will be conducive to the PNTR legislation in (the) U.S. Congress." China had claimed that a fungus on U.S. tobacco called blue mold could damage its domestic crop but had recently suspended research on the issue after scientists concluded that the fungus could not reproduce once the leaf is cured. Supporters of the trade agreement have said that an end to the Chinese ban could increase U.S. tobacco exports by 10 percent. Under an agreement that the Clinton administration negotiated last year, China is to drop its tariff on U.S. tobacco from 40 percent to 10 percent and on cigarettes from 65 percent to 25 percent. Several North Carolina lawmakers who represent large tobacco-growing regions have been undecided on the China trade vote. The end of the tobacco ban cemented a "yes" vote from Rep. Bob Etheridge, D-N.C. "With this development there ain't no question," said spokesman Brad Woodhouse. From rob@essential.org Wed, 24 May 2000 11:04:35 -0400 (EDT) Date: Wed, 24 May 2000 11:04:35 -0400 (EDT) From: Robert Weissman rob@essential.org Subject: [Intl-tobacco] Very Interesting: Colombia governors sue Philip Morris for tax evasion Colombia governors sue U.S. tobacco giant Source: Reuters, Wednesday, 5/24/00 Tuesday May 23, 9:17 pm Eastern Time BOGOTA, May 23 (Reuters) - Colombia's provincial governors' said Tuesday they filed suit in a federal court in New York alleging that U.S.-based Philip Morris Cos. Inc., the world's largest cigarette maker, had avoided paying the South American country of billions of dollars in tax and other revenues. Michael York, lawyer for Wehner & York which represents Phillip Morris, said: ``We're going to defend this vigorously . I absolutely believe we will prevail. The company has acted lawfully.'' ``The allegations don't have any factual or legal merit,'' York said. Jose Manuel Arias Carrizosa, executive director of Colombia's National Federation of Provinces, said a news conference in the capital Bogota that the complaint against Philip Morris, the maker of the top-selling Marlboro brand, was unveiled in a U.S. District Court in New York last Friday. The suit was filed by New York law firm Speiser, Krause, Nolan and Granito on behalf of Colombia's 32 provincial governments and the capital district of Bogota, Arias Carrizosa said. The law firm could not be reached for immediate comment. The National Federation of Provinces initially threatened to sue Philip Morris (NYSE:MO - news) and British American Tobacco Plc(quote from Yahoo! UK & Ireland: BATS.L) in May of last year, alleging the two companies had conspired with local distributors to illegally under-bill imports of their products to Colombia to avoid paying a hefty 65 percent duty. Speiser, Krause, Nolan and Granito went much further in a statement released at Tuesday's news conference in Bogota. The law firm, which credits itself with specialising in landmark cases throughout the United States for over 50 years, made no mention of British American. But it leveled explosive ``racketeering'' charges against Philip Morris. ``The lawsuit ... alleges that Philip Morris defrauded the government of billions of dollars in revenue through a pattern of racketeering offences involving money laundering and other violations of U.S. law,'' it said. ``The suit further alleges that the smuggling scheme was conceived, designed and implemented at the highest levels of the defendants corporations as a means of maximizing sales and profits,'' the law firm said in its statement. ``Cigarette smuggling has become an important avenue for laundering proceeds from illicit narcotics sales and another link in the drug production cycle,'' it added. Colombia's booming trade in contraband -- involving a whole catalogue of goods ranging anywhere from Scotch whisky to television sets and refrigerators -- has long been cited at one of the leading ways of laundering the proceeds from narcotics sales abroad and funnelling the money back into Colombia. The Andean country produces an estimated 80 percent of the world's cocaine and is a leading source of the high-grade heroin sold on U.S. streets. The country of 40 million inhabitants also has a sizable demand for tobacco, estimated at 30 billion cigarettes per year. Colombia's top cigarette maker, Compania Colombiana de Tobaco, has long alleged unfair competition, saying foreign-made imports to Colombia are often billed at prices well below their retail value in the country of origin. The bulk of the tax revenues Colombia was reputedly defrauded of by Philip Morris would have been paid into local government coffers to finance health and recreation programmes. Local spokesman for Philip Morris had declined comment when the suit was threatened last May. Legal problems then temporarily blocked imports of Marlboro cigarettes in the country, but they have resumed long since then. From rob@essential.org Wed, 24 May 2000 11:15:15 -0400 (EDT) Date: Wed, 24 May 2000 11:15:15 -0400 (EDT) From: Robert Weissman rob@essential.org Subject: [Intl-tobacco] Philip Morris to Invest $300 Mln in Philippine Cigarette Plant (fwd) Philip Morris to Invest $300 Mln in Philippine Cigarette Plant by Dominic G. Diongson PHILIPPINES; Source: Bloomberg News, Wednesday, 5/24/00 Manila, May 24 (Bloomberg) -- Philip Morris Cos., the world's largest tobacco company, said it will spend $300 million on a new factory to triple production of Philip Morris and Marlboro brands in the Philippines to 60 billion cigarettes. Philip Morris Philippines will own 80 percent of the new plant, with longtime local associate La Suerte Cigar & Cigarette Factory holding the remainder. When the new plant, located about 50 kilometers south of Manila, begins operation in 2003, the partners will close their existing plant in a suburb of the capital. La Suerte has produced Marlboro and Philip Morris brands under a license for about 45 years. Once the new plant is in operation, Philip Morris will take over production, according to Renato Salud, a spokesman for Philip Morris Philippines. La Suerte wasn't immediately available for comment on the new arrangement. Salud said the 20 billion cigarettes a year sold under Philip Morris brand names represents about 28 percent of the domestic cigarette market. The Philippines is the biggest nation of smokers in Southeast Asia after Indonesia. The new factory's enlarged output offers export prospects, Salud said. ``Hopefully, we could use it as a base for exporting to other Asean countries,'' he said. The Association of Southeast Asian Nations (Asean), which groups the Philippines with nine other countries in the region, is considering lowering tariffs in the future, which could benefit cigarette exports. In the region, Philip Morris has plants in Malaysia and Indonesia. It also imports some of its brands, such as Benson & Hedges and Virginia Slims, into the Philippines and other Asian countries From rob@essential.org Wed, 24 May 2000 13:42:26 -0400 (EDT) Date: Wed, 24 May 2000 13:42:26 -0400 (EDT) From: Robert Weissman rob@essential.org Subject: [Intl-tobacco] More on the Colombian smuggling lawsuit The URL for this story is: http://www.public-i.org/story_01_052300.htm The web page contains links to related materials. By Maud S. Beelman International Consortium of Investigative Journalists, The Center for Public Integrity (Washington, May 23) Philip Morris, the world's largest tobacco multinational, has engaged in smuggling and drug-money laundering for years in a scheme to avoid taxes and boost sales of its cigarettes, according to allegations in a new racketeering lawsuit filed in U.S. federal court. The civil lawsuit - filed by a majority of Colombia's governors - claims that Philip Morris Companies, Inc., and its subsidiaries, including Philip Morris International, Inc., defrauded the Colombian states out of billions of dollars in lost tax revenue over a 10-year period. Through actions in the United States and abroad, Philip Morris "conceived, directed, controlled, and implemented an international conspiracy to defraud Plaintiffs and deprive them of money and property, in order to increase their profits and market share, enhance the value of their tobacco operations, and expand the worldwide market for contraband cigarettes," the lawsuit claims. Employees accused of laundering The lawsuit alleges that, in some cases, Philip Morris employees themselves laundered drug money as part of the smuggling operation. In other instances, the company created a labyrinthine network of third-party payments and Swiss bank accounts in order to mask the illegality of their actions, according to the lawsuit filed Friday in U.S. District Court in New York. The lawsuit was filed on behalf of the heads of 22 Colombian states, called "departments," as well as the city of Bogota, rather than by the Colombian federal government. The greatest part of Colombia's tax revenue from cigarettes and alcohol goes to the states. Philip Morris and its named subsidiaries are accused of violating the Racketeer Influenced and Corrupt Organizations Act, as well as negligence, fraud, unjust enrichment, public nuisance, and "acts of conspiracy." The Colombian governors are seeking actual and punitive damages that could run as high as Philip Morris' total tobacco profits for 1999. The governors are claiming about $3 billion in damages, which could be trebled under RICO, as well as punitive damages on several of the alleged violations of law, arguing that Philip Morris' "conduct amounts to a fraud on the public." Philip Morris reported tobacco profits of $9.8 billion in 1999 -- $4.9 billion in international tobacco sales. Philip Morris asserts lawfulness Michael York, an attorney for Philip Morris, said he had not yet seen the lawsuit, but added, "We believe Philip Morris has acted lawfully." According to the lawsuit, Philip Morris sent a Jan. 21 letter to the Colombian governors, attempting to block the RICO action. This is the second civil RICO action to be filed against a major U.S.-headquartered tobacco company within the last six months, but the first to target the world's largest tobacco multinational, whose Marlboro line is the world's most popular brand of cigarettes. In December, Canada filed a $1 billion civil RICO lawsuit in U.S. District Court against R.J. Reynolds and its related tobacco companies for alleged smuggling across the U.S.-Canadian border. Several people, including a former RJR senior sales manager, have already been convicted on U.S. criminal charges stemming from smuggling across that same border. Philip Morris is the third major tobacco multinational to be implicated in alleged smuggling, which allows cigarettes to enter a market untaxed, be sold at a lower price and, therefore, reach a greater number of consumers. The British government is considering an investigation into British American Tobacco after a report by the Center for Public Integrity in January showed that company's involvement in global smuggling. U.S. Customs Commissioner Raymond Kelly told Congress recently that "international cigarette smuggling has grown to a multibillion-dollar-a-year illegal enterprise linked to transnational organized crime and international terrorism. Profits from cigarette smuggling rival those of narcotic trafficking." According to the Colombian lawsuit, "the Philip Morris defendants have actively engaged in smuggling activities and concealed such conduct through illegal acts, including money laundering, wire fraud, mail fraud, and other violations of United States law. Defendants have collaborated with smugglers, encouraged smugglers, and sold cigarettes to smugglers, either directly or through intermediaries, while at the same time supporting the smugglers' sales through the establishment and maintenance of so-called 'umbrella operations' in the target jurisdictions." "Umbrella operations" refer to an alleged tobacco company practice of using the presence of a small amount of legal imports into a country to justify an advertising campaign that is really aimed at promoting sales of more numerous black-market cigarettes. 'Sophisticated and clandestine smuggling enterprise' The 74-page lawsuit charges that Philip Morris "created and exploited a sophisticated and clandestine smuggling enterprise that operates throughout the world and within the Departments of the Republic of Colombia. This international scheme has harmed, and continues to harm, the economic interests of many governments, including the Departments of the Republic of Colombia." Suspicions about industry involvement in cigarette smuggling have grown since 1997, when researchers demonstrated, by comparing annual global exports with global imports, that about one-third of all cigarettes entering international commerce each year could not be accounted for. But proof remained elusive until last year, when millions of pages of corporate documents, unearthed during numerous health-related lawsuits, became publicly available as part of the tobacco industry's November 1998 settlement with the U.S. states. An investigation by the Center's International Consortium of Investigative Journalists showed that British American Tobacco, the world's second-largest multinational tobacco company, had been involved in cigarette smuggling and tax evasion for years in a global effort to secure market share and lure generations of new smokers. The report was based on an analysis of more than 11,000 pages of internal corporate documents. That report also cited documents showing that senior executives of BAT and Philip Morris had met on at least two occasions, in New York and in England, to discuss fixing prices on legal and smuggled cigarettes - an allegation repeated in the Colombian RICO filing. Top tobacco executives said to be involved "The Philip Morris defendants created a circuitous and clandestine distribution chain for the sale of cigarettes in order to facilitate smuggling within the Departments of the Republic of Colombia," the lawsuit says. "The decision to establish and maintain this distribution chain was made at the highest executive levels of the Philip Morris defendants." As part of what they termed the "PM Smuggling Enterprise," the Colombian governors accused Philip Morris of earning hundreds of millions of dollars in illegal profits through: Selling cigarettes directly to smugglers or to distributors known to sell to smugglers; Labeling, mislabeling, or failing to label their cigarettes in such a way so as to facilitate the activities of smugglers; Providing marketing information to distributors and smugglers in order to have the most in-demand cigarettes in the market; Generating false or misleading invoices, bills of lading, shipping documents, and other documents that expedite the smuggling process; Shipping cigarettes designated for one port knowing that the cigarettes will be diverted to another port and then smuggled; Making arrangements for the cigarettes to be paid for in a virtually untraceable way, including using Swiss corporations and/or Swiss bank accounts "in an attempt to improperly utilize Swiss banking and privacy laws as a shield to protect the smugglers from government investigations." The Colombian lawsuit also contends that Philip Morris "knew that the currency provided to them represented the proceeds of unlawful activity, including trafficking in narcotics and controlled substances and that, by accepting such payments, aided the efforts of the drug traffickers to launder their ill-gotten gains." In some instances, "employees of the Philip Morris defendants were personally involved in the laundering of the proceeds of illicit narcotics sales," the lawsuit alleges, claiming that Philip Morris employees would bribe Colombian officials not to stamp their passports, so there would be no record of them entering or leaving the country. "These employees on multiple occasions received large volumes of cash that they took into their personal possession or these employees would be present when large volumes of cash were turned over to the distributors with whom the Philip Morris employees were traveling. These individuals would then smuggle the cash out of Colombia and into Venezuela, with the cash ultimately being deposited in banks and transferred into the coffers of the Philip Morris defendants," according to the lawsuit. 'Laundered drug money' The suit also contends that Miami bank accounts of various Philip Morris cigarette distributors were frozen in the early 1990s by U.S. law-enforcement officials "because funds credited to those accounts were laundered drug money. The freezing of these accounts was well known to Philip Morris." The lawsuit - plans for which were first reported by the Center in January - accuses Philip Morris of furthering criminality in Colombia through its business practices. A Colombian border-guard station, erected in a main smuggling area in an attempt to halt the contraband, was destroyed by smugglers firing an anti-tank weapon, and several of the station's personnel were killed in the attack, the lawsuit says. The Colombian governors also accuse Philip Morris of having "falsely denied their complicity in smuggling activities," citing a company response to the Center for Public Integrity in January. Additionally, the lawsuit alleges that Philip Morris used the existence of smuggling to successfully argue against higher government taxes, on the grounds that would encourage more smuggling. "The Defendants conduct this public relations and lobbying campaign without disclosing to the public or Plaintiffs their continuing complicity in smuggling." Maud Beelman is director of the International Consortium of Investigative Journalists at the Center for Public Integrity, in Washington, D.C. Senior Research Associate Erik Schelzig contributed to this report. From rob@essential.org Wed, 24 May 2000 14:57:01 -0400 (EDT) Date: Wed, 24 May 2000 14:57:01 -0400 (EDT) From: Robert Weissman rob@essential.org Subject: [Intl-tobacco] Philip Morris Ramps Up Cigarette Production In Russia (fwd) Philip Morris Ramps Up Cigarette Production In Russia by Kristina Shevory / 7095-974-8055 -0- 24/05/00 08-20G Source: The Wall Street Journal Interactive Edition, Wednesday, 5/24/00 ST. PETERSBURG, Russia -- Tobacco giant Philip Morris (MO) expects to produce locally more than 90% of its cigarettes sold in Russia within two years, company spokesman Yuri Galibov said Tuesday. Philip Morris intends to increase production in Russia as the company's new $330 million factory, Philip Morris Izhora, attains full operating capacity. The plant, opened earlier this year in the Leningrad region outside St. Petersburg, will eventually produce 25 billion cigarettes a year, or 10% of the total number of cigarettes produced in Russia. The plant currently produces 5 billion cigarettes a year. Philip Morris Izhora, the largest of the U.S. company's three Russian factories, brings production of all Philip Morris brands, apart from Parliament and Virginia Slims, to Russia, the company said. "We expect to reduce imports of our mega-brands as our new factory comes on line. We can't produce 100% of all our cigarettes in Russia, like Parliament and Virginia Slims, since we don't have the specialized equipment to make them," said Galibov. "It's more cost-effective to import those cigarettes than to bring that very specific equipment to Russia." The plant is the company's first fully self-contained Russian factory with operations ranging from tobacco processing to cigarette production. Its smaller and older Leningrad factory, Philip Morris Neva, currently makes cigarettes using processed tobacco provided by the company's Krasnodar facility in southern Russia. Philip Morris has invested more than $500 million in Russia to date, making it one of the biggest private-sector investors in the country. URL for this Article: http://interactive.wsj.com/archive/retrieve.cgi?id=DI-CO-20000524-001283.djml From rob@essential.org Wed, 24 May 2000 22:03:36 -0400 (EDT) Date: Wed, 24 May 2000 22:03:36 -0400 (EDT) From: Robert Weissman rob@essential.org Subject: [Intl-tobacco] Russian parliament rejects anti-smoking bill (fwd) Russian parliament rejects anti-smoking bill Source: BBC Online, Wednesday, 5/24/00 The Russian parliament has rejected a bill aimed at cutting the health risks of smoking. Deputies in the lower house, the Duma, voted against a draft law to lower the levels of nicotine, tar and other harmful substances in Russian-made cigarettes. Opponents of the bill said it would impose huge extra costs on tobacco companies -- which would almost inevitably have forced up the price of cigarettes. An estimated sixty-five per cent of men and thirty per cent of women in Russia smoke. A BBC Russian Affairs analyst says that parliament did not want the responsibility for depriving the millions of ordinary Russians who are on the breadline of one of their few cheap pleasures -- albeit one which could kill them. >From the newsroom of the BBC World Service From rob@essential.org Thu, 25 May 2000 22:45:15 -0400 (EDT) Date: Thu, 25 May 2000 22:45:15 -0400 (EDT) From: Robert Weissman rob@essential.org Subject: [Intl-tobacco] Europe: MEPs vote to enlarge cigarette warnings / Manufacturers may have to increase warning size MEPs vote to enlarge cigarette warnings / Manufacturers may have to increase warning size Source: BBC Online, Thursday, 5/25/00 Euro-MPs have voted for massive increases in the size of health warnings on cigarette packs. But a UK anti-smoking pressure group fears that the demands by a small number of MEPs could jeopardise a whole raft of different restrictions. The MEPs want reminders of the risks of smoking to cover 40% of the front of every packet and 60% of the back. They want the warnings to be printed only in black on a white background to give them more impact, instead of the present system which requires only "contrasting colours" on packets. And they are calling for cigarette descriptions such as "low tar", "mild" and "light" to be banned. However, the proposals - which far exceed the 25% pack warning increase originally proposed, have to be agreed by a meeting of all MEPs - and then a committee of EU ministers later next month. Action on Smoking and Health (ASH) fears that important tobacco control measures in the directive could be lost if the ministers decide the new pack warning sizes are excessive. Spokesman Amanda Sandford said: "We would rather sacrifice the big warnings to save the other parts of the directive, like the new limits on the amount of tar and nicotine in cigarettes." Labour's environment spokesman David Bowe MEP said: "The Commission and many EU governments support the kind of measures we have voted for today and we therefore expect this to go through." Far stricter There are already EU rules governing health warnings on packets, advertising, and the tar and nicotine content of cigarettes. But the existing rules fall far short of what MEPs are now demanding - with health warnings currently required on only 4% of the surface of cigarette packets. The UK government exceeds this EU minimum, obliging companies to "advertise" the health dangers on 6% of the packet's surface. In contrast Canada has already made health warnings compulsory on 90% of the surface of a cigarette pack. After today's vote of the European Parliament's environment committee meeting in Brussels, Mr Bowe said tobacco companies were trying to kill the legislation. "They are using every trick in the book to put a stop to these new rules. "Cigarette companies say their products are for informed adults, but existing warnings are obscured by clever colour combinations, striking packaging and tucked behind careful displays. "Most smokers neither know the full risks nor bear the full costs of their choice." If passed by EU ministers at the end of June, it will still be several months before the directive comes into force. It will also force tobacco companies to include much more information about any additives they include in their products. FOREST, the group which campaigns for equal rights for the smoker, said the whole idea of warnings on cigarette packs was a waste of time. A spokeswoman said: "People are well aware of the dangers. This is totally pointless. It's a waste of taxpayers' money paying for MEPs to sit around debating this." A Department of Health spokesman said: "We will look at the call from the MEPs but we have been working on this through the European Commission and we are content with the proposal which has been put forward to increase the size of the warning to 25%, or possibly 30% in the case of certain foreign languages. "The regulations in the UK currently require only 6% of the pack to be used so this would represent a major increase in the size of the warning." From rob@essential.org Thu, 25 May 2000 22:56:31 -0400 (EDT) Date: Thu, 25 May 2000 22:56:31 -0400 (EDT) From: Robert Weissman rob@essential.org Subject: [Intl-tobacco] Aggressive tobacco regulation proposed in Brazil Brazil Wants Heavy Cigarette Tax by Peter Muello / Associated Press Writer Source: AP, Thursday, 5/25/00 Thursday, May 25, 2000; 3:12 p.m. EDT RIO DE JANEIRO, Brazil =96=96 In a new offensive against the tobacco indust= ry, Brazil's government announced it will propose a heavy surtax on cigarette sales and a ban on all advertising and sponsorship of cultural and sports events by the tobacco industry. Health Minster Jose Serra said the goal is to reduce smoking by 40 percent within four years. The new measures will be submitted to Congress next week. "The ministry starts from the premise that cigarettes are a drug and should be fought as a drug," Serra said in announcing the proposed legislation Wednesday. One bill would ban cigarette ads from television, radio, newspapers, magazines and billboards. Tobacco companies also would be prohibited from sponsoring many events, including an annual jazz festival and the popular Formula One and CART auto races. In the United States, cigarette advertising is also restricted =96 includin= g a ban on television ads. TV ads in Brazil now are allowed late at night and must carry a health warning at the end. But the warnings vary greatly in content, and some are as mild as: "Avoid smoking in the presence of children." The government hasn't set a rate for the surtax, which also would be levied on liquor manufacturers. But Serra said it could generate $81 million a year, which he said would be spent on health research. The main target of the campaign is teen-agers, he said. A 30-second TV spot that began airing on Thursday shows a drug dealer in a Brazilian slum, his face concealed with a ski mask, explaining how he gets clients hooked =96 on cigarettes. Health Ministry figures show that smoking-related diseases cause a death about every seven minutes in Brazil, a nation of 165 million people. Opposition parties, which have submitted five bills with varying sanctions against the tobacco industry, applauded the initiative. Souza Cruz, a major Brazilian tobacco company owned by British conglomerate BAT Industries PLC, declined to comment on the government proposal. Brazil, an important tobacco grower that for years ignored the anti-tobacco movement abroad, has stepped up efforts to curb smoking in recent years. Smoking now is banned in public buildings and on all domestic and international airplane flights. Some Brazilian state governments also have filed suit in U.S. courts against American tobacco companies to recover money spent in treating smoking-related diseases. The states of Rio de Janeiro and Goias are seeking at least $5 billion each. From rob@essential.org Mon, 29 May 2000 23:02:28 -0400 (EDT) Date: Mon, 29 May 2000 23:02:28 -0400 (EDT) From: Robert Weissman rob@essential.org Subject: [Intl-tobacco] Malaysia: MMA: Ban all forms of tobacco promotions (fwd) MMA: Ban all forms of tobacco promotions Source: The Star (Malaysia), Monday, 5/29/00 KUCHING: The Malaysian Medical Association (MMA) yesterday called for a complete ban on all forms of tobacco and tobacco brand promotions in the country. MMA president Dr P. Krishnan said: "This includes promotion of non-tobacco products related with tobacco brands, including advertising, sponsorship, direct marketing, merchandising, loyalty schemes, and free cigarettes.'' He added packing of tobacco products should be dominated by health warnings with details of harmful effects and emissions. Dr Krishnan said a specialist cessation service should also be made available at all health centres, hospitals, and private healthcare facilities. "Impact of smoking cessation should be part of the core curriculum and basic training of health professionals and schools,'' he reiterated. Dr Krishnan also expressed concern over the increasing rate of HIV infection through sharing of intravenous needles among drug users. In Malaysia, there are more than 35,000 notified infections at the Health Ministry, he said. "However, the true picture may well be two to three times higher, he said. "MMA will continue and intensify its efforts in promoting CME (Continuous Medical Education) activities in the area of HIV medicine both at primary and secondary levels throughout the country,'' said Dr Krishnan. Dr Krishnan said MMA is always working together with the Government in its commitment to achieve a high standard of healthcare towards building a healthy nation. He said MMA has addressed many issues with the Government and its related agencies for the betterment of society. These include adolescent health, care for the elderly, women's health, healthcare in the plantation sector, action on smoking and health, substance abuse and accident prevention, said Dr Krishnan. Dr Krishnan also announced that the 19th Triennial Council Meeting of the Commonwealth Medical Association will be held in Malaysia next year. From rob@essential.org Mon, 29 May 2000 23:08:18 -0400 (EDT) Date: Mon, 29 May 2000 23:08:18 -0400 (EDT) From: Robert Weissman rob@essential.org Subject: [Intl-tobacco] The Canadian Tobacco Papers / A selection of documents related to the Canadian Tobacco Industry The Canadian Tobacco Papers / A selection of documents related to the Canadian=20 Tobacco Industry Source: tobaccopapers.org, Monday, 5/29/00 Tobacco Industry Documents: The Canadian Tobacco Manufacturers Council (CTMC) - and its predecessors - and their response to public issues Canadian Tobacco Companies banded together in the mid-1960s to respond to the public and political pressures that resulted from increased knowledge about the health effects of smoking. The CTMC was not formed until the end of the decade, but documents show that the industry worked together long before. Industry documents telling the History of Tobacco in Canada and explaining the pressures that created the CTMC are also available on this site. October 12, 1962 Companies make secret deal to be quiet about tar & nicotine Title: Policy Statement by Canadian Tobacco Manufacturers on the Question of Tar, Nicotine and Other Smoke Constituents that may have similar connotations" Authors: varia Canadian tobacco companies sign an agreement to be quiet about tar, nicotine and other compounds in public communication =96 including packaging. "We the undersigned [each company] conceive it to be in the public interest to agree to refrain from the use, direct or implied, of the words tar, nicotine or other smoke constituents that may have similar connotations, in any and all advertising material or any package, document or other communication that is designed for public use or information. http://www.tobaccopapers.org/ctmc/CTMCbefore76/62rothmans.pdf Rothmans http://www.tobaccopapers.org/ctmc/CTMCbefore76/62imperial.pdf Imperial =20 http://www.tobaccopapers.org/ctmc/CTMCbefore76/62Trans-Canada.pdf Trans-Canada http://www.tobaccopapers.org/ctmc/CTMCbefore76/62Tuckett.pdf Tuckett =20 http://www.tobaccopapers.org/ctmc/CTMCbefore76/62Macdonald.pdf Macdonald =20 http://www.tobaccopapers.org/ctmc/CTMCbefore76/62Imperial&Benson&Hedges.pdf Imperial&Benson and Hedges http://www.tobaccopapers.org/ctmc/CTMCbefore76/62rockcity.pdf Rock City source: Pmdocs, page 2024994264 2024258891 2024994268 2024994267 2024994266 2024994265 2024978197 ----------------- 1963 Establishment of the Ad Hoc Committee of the Canadian Tobacco Manufacturers' Council see History of Tobacco http://www.tobaccopapers.org/index/history.htm (or a more legible transcript) =20 http://www.tobaccopapers.org/history/History%20-%20ITL.htm Pmdocs 1005144959 ----------------- November 25, 1963 Industry issues public position on smoking & health in Canada Title: "Some Scientific Perspectives for consideration of Smoking and Health Questions" Authors: Ad hoc committee of the Canadian Tobacco industry The Ad Hoc Committee of the Canadian Tobacco Industry makes a presentation to Health and Welfare's conference on smoking and health and publishes a 60 page booklet with its position "Some Scientific Perspectives for consideration of Smoking and Health Questions" Chapter titles: Lung cancer incidence Epidemiological factors in lung cancer Laboratory experimentation Clinical and pathological observations Cardiovascular diseases Future Canadian research 63-Presentation http://www.tobaccopapers.org/ctmc/CTMCbefore76/63presentation-to-HWC.pdf Presentation to Health and Welfare Source: Pmdocs beginning page 2015027725 ----------------- June 16, 1964 First Canadian Tobacco Advertising Code Developed Title: "Canadian Cigarette Advertising Code June 16, 1964" Authors: Ad hoc committee of the Canadian Tobacco industry Four companies agree to 1 10-rule code for advertising. Prohibits advertisements on television before 9:00 p.m., ads immediately adjacent to primary schools, ads with appeal to persons under the age of 18 years, use of sports figures and other celebrities which appeal to children, etc. Ed: this code is similar in many respects to the provisions of the current Tobacco Act. 64 Code http://www.tobaccopapers.org/ctmc/CTMCbefore76/64advertisigncode.pdf Source: Pmdocs beginning page 1005145171 ----------------- June 7, 1968 John Keith (ITL) writes Toledo (B&H) to threaten consequences if B&H releases report on ITL brand "Richmond" Title: no title Authors: Paul Pare, President, Imperial Tobacco Companies reinforce agreement not to discuss health effects or contents of cigarettes. (ITL had introduced the "Strickman filter" and made claims about its benefits) Keith Letter http://www.tobaccopapers.org/ctmc/CTMCbefore76/69keithtotoledoletter.pdf Source: Pmdocs beginning page 002608756 ----------------- July 5, 1968 Circulation of a draft "Canadian Tobacco Industry Position Paper on Health Issues" Title: "Notes on July 5 Draft of Canadian Tobacco Industry Position Paper on Health Issues." Canadian Tobacco Industry Position Paper on Health Issues. Authors: unknown This 19-page paper provides insight into central arguments, including: Millions of people smoke tobacco because they enjoy it. Attacks on tobacco and its users =96 on health and other grounds =96 are not new. The present health controversy is "at best a muddied picture." The Canadian tobacco industry has diligently sought answers to the unsolved health problems. Even in the absence of established proof of harm from normal use, the industry has voluntarily modified its advertising and promotional programs. Although there is no proof of any health significance in the levels of so-called "tar" and nicotine in the smoke of cigarettes, the industry has responded to the demands of some of its consumers (and some of its critics) by producing brands that deliver less "tar" and "nicotine." The industry has sought to cooperate with the government and other official or public agencies. The industry has acted with restraint in challenging the extremist, biased and unproved charges. The industry maintains that smoking is and adult custom Tobacco is a legal and widely used and accepted product. This is a good example of the public relations strategy during the first wave of the "smoking and health" crisis. notes on paper http://www.tobaccopapers.org/ctmc/CTMCbefore76/69notesonpaper.pdf paper on health issues http://www.tobaccopapers.org/ctmc/CTMCbefore76/68paper%20on%20health%20issu= es.pd f source: Pmdocs beginning page 2016001810 ----------------- October 8, 1969 Ad Hoc Committee sells its message to its close allies - the retailers. Title: "The future of Tobacco in the Face of the Smoking and Health Controversy." An address by Paul Pare Chairman Ad Hoc Committee of Canadian Tobacco Industry to National ASsociation of Tobacco and Confectionery Distributors Convention, Vancouver." Authors: Paul Pare Paul Pare, chairman of the Ad Hoc Committee of the Canadian Tobacco Industry speaks to the National Association of Tobacco and Confectionery Distributors at their convention in Vancouver. Discusses "anti-tobaccoism" and offers vision of what needs to be done: "We must stand firm against punitive legislative and regulatory proposals that would shackle the legal and legitimate activities that are necessary to get tobacco from the farmer=92s fields into the hands of those who want it =96 in its various product forms. You people particularly have a stake i= n this." "We must continue to recognize that the use of tobacco is an adult custom and that adults should have the freedom of choice as to whether they smoke or not." "We should encourage and help enforcement of the Canadian law prohibiting sales of tobacco to minors. I need not remind most of you that an interest in the Tobacco Restraint Act as well as control of vending machine sales was expressed by some members of the Standing Committee in Ottawa last June. Manufacturers generally have a long-standing programme, perhaps insufficiently advertised, to cooperate with any vending machine operation in providing appropriate notices to reflect the essence of the Tobacco Restraint Act and its prohibition of sales to persons under 16 years of age." Cites several scientists who have concluded that smoking does not cause disease. Shows how they reached out for third party support early in the game. Pare Speech http://www.tobaccopapers.org/ctmc/CTMCbefore76/69Pare%20speech.pdf Source: Pmdocs beginning page 2024956951 ----------------- December, 1969 Isabelle Committee (the Standing Committee on Health of the House of Commons) reports Recommends: Phase out of cigarette advertising and promotion activity over a four-year period Warning notice and nicotine levels on all cigarette packages, cartons and vending machines Limit the permissible levels of tar and nicotine on all cigarettes Comprehensive communications programs to discourage smoking. History http://www.tobaccopapers.org/index/history.htm Source: Pmdocs beginning page 1005144959 Last revised: May 29, 2000 Contents Copyright =A9 by Physicians for a Smoke-Free Canada From rob@essential.org Mon, 29 May 2000 23:13:39 -0400 (EDT) Date: Mon, 29 May 2000 23:13:39 -0400 (EDT) From: Robert Weissman rob@essential.org Subject: [Intl-tobacco] Canada: TOBACCO SALES TARGET WAS YOUTH - The Globe and Mail (fwd) The Globe and Mail=20 Monday, May 29, 2000 TOBACCO SALES TARGET WAS YOUTH =09Young smokers 'major opportunity group,'=20 =09newly released industry documents say =09By Mark MacKinnon, Parliamentary Bureau Ottawa -- Despite repeated denials from the big tobacco companies, Canadian cigarette manufacturers spent much of the past 25 years trying to persuade young people to take up smoking, newly released documents reveal. The documents, obtained by The Globe and Mail, will be made public this week by the federal government in a further escalation of its all-out war on tobacco companies. Among the thousands of pages is evidence that the industry has been obsessed since the 1970s with reversing the declining popularity of smoking as social attitudes changed and government regulations tightened. Winning over the country's young people became a focus. "Young smokers represent the major opportunity group for the cigarette industry, we should therefore determine their attitudes to smoking and health and how this might change over time," reads a 1971 marketing plan, marked "confidential," for the Matin=E9e brand. Another document contains the notes for a speech almost 20 years later by Purdy Crawford, chairman of Imasco Ltd. British American Tobacco PLC (BAT) is parent of Imasco, which owns Montreal-based Imperial Tobacco Ltd. "Imperial Tobacco Ltd. has always focused its efforts on new smokers, believing that early impressions tend to stay with them throughout their lives," he told other BAT executives in 1989. He said his company "clearly dominates the young adult market today, and stands to prosper as these smokers age, and as it maintains its highly favourable youthful preference." Throughout the documents, children are never mentioned, but terms like "youths" and "non-adults" are liberally sprinkled. The papers were uncovered by Health Canada researchers in a huge depository in Guildford, England, where BAT made eight million pages of memos and faxes available to the public as part of a lawsuit settlement in the United States. The new documents show: The long-held tobacco industry defence -- that advertising was aimed at persuading those who already smoked to switch brands, rather than at getting non-smokers to smoke -- is a smokescreen. The target audience was given the nickname "switchers." "When we talk about a switcher . . . this definition includes starters (did not smoke before) and smokers that had no regular or particular previous brand," reads one document prepared for Imperial marked "strictly confidential." Player's Light, the most popular brand in Canada, was conceived in 1978 as "the brand for modern young smokers," with one of its prime target markets being "young people starting the smoking habit." This fact, Imperial president Donald Brown said under oath in a recent court case, "was not perceived to be a problem." In 1978, Mr. Brown was Imperial's vice-president of marketing. One scheme concocted by Imperial was the aptly named Project 16. A survey of younger smokers was commissioned in the summer of 1977 and the findings delivered to the company's top executives. Learning more about young smokers, it was written, "has implications for the future of the industry." Peer pressure, the study found, persuades many kids to try smoking between the ages of 11 and 13. They soon got hooked. "However intriguing smoking was at 11, 12 or 13, by the age of 16 or 17 many regretted their use of cigarettes for health reasons, and because they feel unable to stop smoking when they want to," the survey concluded. The script of a telephone survey conducted in 1992 by another market research firm on behalf of the industry shows tobacco companies continued to target young smokers even in recent years. "May I please speak to the person 15 years of age or older at home at the moment who smokes tobacco products?" the phone interview script begins. The survey then asks respondents how often they smoke, which brands they choose, and what influences their buying decisions. The legal smoking age that year was 18. A 1980 Imperial marketing plan lays out a campaign that would include advertising in media targeting the 12-to-17 age group. Neil Collishaw, research director with Physicians for a Smoke-Free Canada, said the new documents are further proof of the lengths tobacco companies have gone to in trying to court young people. "What's striking is how much careful planning goes into putting an emphasis on youth," he said. The motivation for Imperial, Mr. Collishaw said, was a market share that fell from 50 per cent in the 1960s to less than 40 per cent in the 1970s, when the documents suggest the company began targeting young people. The campaign seemingly paid off, since Imperial now controls about 70 per cent of the Canadian cigarette market. The release of the documents this week is just the latest stage of Health Minister Allan Rock's antitobacco campaign. In December, the federal government launched a $1-billion lawsuit against Toronto-based RJR-Macdonald Inc., the third-largest cigarette manufacturer in Canada, alleging it backed massive smuggling across the Canada-U.S. border. Documents released last year from the same collection showed how Imperial actively encouraged the smuggling of cigarettes across the Canada-U.S. border. The Guildford files, as the eight-million-page collection is known, are also central to a lawsuit launched by British Columbia against the tobacco industry that aims to recoup billions of dollars spent on smoking-related illnesses. Imperial spokesman Michel Descoteaux said the federal government is waging a campaign to "demonize" the tobacco industry.=20 From rob@essential.org Tue, 30 May 2000 10:11:50 -0400 (EDT) Date: Tue, 30 May 2000 10:11:50 -0400 (EDT) From: Robert Weissman rob@essential.org Subject: [Intl-tobacco] =?X-UNKNOWN?Q?Thailand=3A_Ash_Wants_Tobacco_Taken_Off=A0=A0Asea?= =?X-UNKNOWN?Q?n_Free_Trade_List_=28fwd=29?= Ash Wants Tobacco Taken Off=A0=A0Asean Free Trade List Retail shops selling cigarettes to minors by Aphaluck Bhatiasevi Source: Bangkok Post, Tuesday, 5/30/00 School children stage a No-Smoking Parade at Den La kindergarten in Bang Phlat district yesterday, to mark International Anti-Smoking Day, which falls =09=09=09=09=09=09on May 31. _ APICHART JINAKUL =09=09=09 =09=09=09 Anti-smoking advocates yesterday urged the government to remove tobacco from the list of products which will enjoy a level of tax exemption by 2003 under the Asean Free Trade Area agreement. Prakit Vathisathokit, secretary-general of Action on Smoking and Health Foundation (Ash), said since tobacco is a product harmful to health, it =09=09=09should not be allowed to enjoy tax privileges under Afta. At least two multi-national tobacco companies had moved their manufacturing plants into Asean, to take advantage of Afta, said Bang-on Rithiphakdi of Ash. Ms Bang-on was referring to the recent shift of the manufacturing plants of Philip Morris and British American Tobacco from Hong Kong to Malaysia. Judith Mackay of the World Health Organisation's Tobacco-Free Initiative, said though Thailand had done a lot to control cigarette smoking, it needed to take additional steps to keep the number of cigarette smokers from growing =09=09=09beyond 10 million. More serious enforcement of existing regulations against tobacco consumption is required, said Dr Prakit. He said a random survey conducted last week showed that 90% of retail shops in Bangkok continue to sell cigarettes to minors below 14 years of age, which is against the law. From rob@essential.org Tue, 30 May 2000 11:51:19 -0400 (EDT) Date: Tue, 30 May 2000 11:51:19 -0400 (EDT) From: Robert Weissman rob@essential.org Subject: [Intl-tobacco] Ireland: Minister bans all tobacco newspaper and magazine adverts Minister bans all tobacco promotion by RALPH RIEGEL Source: Irish Independent, Tuesday, 5/30/00 HEALTH Minister Micheal Martin dealt the tobacco industry a multi-million p= ound=20 blow yesterday by confirming a ban on all cigarette advertising and=20 sponsorships from July. The minister, speaking in Cork as he opened a major campaign against what he termed ``the tobacco epidemic,'' said that all tobacco advertising in newspapers and magazines will be outlawed from July 1. All tobacco sponsorships of major sporting events will also be outlawed in five weeks' time. And the Government are to work closely with pharmaceutical firms, such as the manufacturers of Nicorette, to co-ordinate support measures for those seeking to quit smoking. In a sweeping crackdown on the tobacco industry he promised further action including: * A trebling in fines, from =A3500 to =A31,500, for anyone selling cigaret= tes to the under-aged. * Further cigarette price-hikes on top of the 50p imposed on a pack of 20 cigarettes in the last Budget. * A nationwide schools education campaign. ``The reality is that tobacco-related illnesses kill half of those who use tobacco. I am determined to work towards a tobacco-free Ireland,'' he added. Under the minister's crackdown, all forms of tobacco advertising and sponsorship will be banned, including high-profile sponsorships in the motor-sport, snooker, horse-racing, greyhound-racing and entertainment sectors. Penalties for breaches of the proposed new Tobacco Act will be extremely heavy, the minister vowed. He stressed that the campaign will focus on underage smoking and drinking through an historic classroom initiative. This, co-ordinated by the Southern Health Board, is aimed at tackling the alarming findings of the HBSC survey in 1999, which confirmed that children as young as nine have experienced both alcohol and tobacco, some on a regular basis. The SHB's Policy on Alcohol, Tobacco and Drug Use in Schools is a drive aimed at using education in the classroom to alert children to the dangers of substance-abuse. The drive is aimed at alerting children as to the dangers of drug abuse at an early age - while making the process easy-to-understand. The campaign is being co-ordinated to run in conjunction with World No Tobacco Day, which occurs tomorrow. Last night, the National Newspapers of Ireland said it had absolutely no argument with the health issues which motivated the ban, but warned on the advertising repercussions. ``Advertising is the life-blood of media and there is a very real concern that a ban on tobacco advertising will lead to a domino effect on other forms of advertising,'' it said in a statement. ``Most important for newspapers is the principle of freedom of commercial speech no government should ban the advertising of a product which you can buy legally and use legally.'' From rob@essential.org Tue, 30 May 2000 17:47:37 -0400 (EDT) Date: Tue, 30 May 2000 17:47:37 -0400 (EDT) From: Robert Weissman rob@essential.org Subject: [Intl-tobacco] Canada: New inside information on tobacco companies released (fwd) New inside information on tobacco companies released Source: Health Canada, Monday, 5/29/00 OTTAWA =96 Health Minister Allan Rock today released a second round of internal tobacco company documents, thus providing the public with more information on industry products and practices than ever before. The documents build on the insight gained through British American Tobacco Company papers retrieved from the Guildford Depository in England and released to the public last fall. "The first round of documents gave us the key to some of the industry's language, and a thread to follow in fully comprehending its internal objectives," said Mr. Rock. Health Canada has been working on interpreting the first documents received with the help of special advisor Dr. Jeffrey Wigand, former head of research for the U.S. tobacco company Brown & Williamson. To mark World No Tobacco Day on May 31, Health Canada will be co-hosting, with Physicians for a Smoke-Free Canada, an international roundtable of experts at the Ottawa Public Library. They will look at the manufacturing, packaging, and promotion of cigarettes in light of information that the documents provide, and Dr. Wigand will deliver a public lecture during the lunch hour. A key focus of the material released today is the tobacco industry's activities in areas such as environmental tobacco smoke, advertising bans, sponsorship restrictions, and health warning messages. It also sets out industry positions and arguments to use with governments on the effects of advertising and sponsorship bans, as well as extensive work undertaken on how to market the product effectively despite ad bans. There are also a number of studies on smoker behaviour, including a study suggesting that women may find it harder to quit than men. There are others suggesting that smokers of low nicotine and low tar cigarettes can inhale as much tar and nicotine as full-strength brands through "compensation" =96 either inhaling more deeply or smoking more cigarettes. "The studies collected show that cigarettes are a highly engineered product," said Mr. Rock. "Every aspect of the cigarette was studied in order to maximize its effectiveness and acceptability to consumers, from the paper used to wrap it, to the amount of smoke it produces. This information, supplemented by reports on research activity we will obtain through the proposed new reporting regulations, will help us regulate this industry in ways that work, so we can better protect Canadians." The information from the initial round of documents allowed Health Canada to take a substantial leap forward in understanding the tobacco industry, and focus its own tobacco control program. The documents lend support to federal strategies for youth, targeted public education initiatives, and the need for further measures to reduce tobacco use, including the Government of Canada's proposal for effective new regulations governing the labelling of tobacco products. They also reinforce the importance of Health Canada's proposal for the expansion of industry reporting requirements. Both regulatory proposals are currently before the House of Commons. The second round of information, or "Guildford II", contains 18,000 pages and 752 separate files. The files are listed by title and number on the National Clearinghouse on Tobacco and Health Programs's (NCTH) Internet site. The NCTH provides information and networking services related to tobacco reduction and prevention programs, projects, and resources. Health Canada experts are currently conducting research at the depository in order to bring back even more extensive information. Guildford is one of two document depositories established by order of the Minnesota Court prior to the conclusion of that state's tobacco-related health care cost-recovery litigation in 1998. It contains more than six million pages of information related solely to British American Tobacco Company Ltd. and its affiliates and subsidiaries =96 including Canada's Imperial Tobacco Ltd. =96 30 =96 Media inquiries: Derek Kent Office of Allan Rock (613) 957=961515 Lynn LeSage Health Canada (613) 941=968189 Public inquiries: (613) 957=962991 From rob@essential.org Wed, 31 May 2000 11:14:17 -0400 (EDT) Date: Wed, 31 May 2000 11:14:17 -0400 (EDT) From: Robert Weissman rob@essential.org Subject: [Intl-tobacco] Rockefeller launches tobacco control program Rockefeller Foundation launches a new program to support reducing the health burden of tobacco on the poor in developing countries "Trading Tobacco for Health," a new international health initiative, to focus initially on Southeast Asia Bangkok, Thailand - May 31, 2000. On World No-Tobacco Day, observed here in ceremonies by the Royal Thai Government and the Director General of the World Health Organization, the Rockefeller Foundation announces a new initiative to support reducing the health burden of tobacco on the poor in developing countries. By building local research and capacity, this program will help enable developing countries to respond to the threat of tobacco consumption. Initially the Foundation will concentrate its resources on Southeast Asia, with particular attention to Thailand, Malaysia, Vietnam and Cambodia. It is anticipated that the Foundation will provide up to $10 million in support over the next five years through projects related to the "Trading Tobacco for Health Initiative". This program marks a new chapter in the Foundation's efforts in international health. As Dr. Lincoln Chen, the Foundation's Executive Vice President, remarked, "While we recognize and continue to work on the unfinished agenda for communicable diseases, the international health community cannot ignore the rising toll from the tobacco epidemic in developing countries. To avert tomorrow's tragedy, we must act today." Drawing upon proven effective practices, the Rockefeller Foundation will support locally-generated research and interventions. The evidence-based strategy will include, for example, efforts to reduce smoking initiation among youth; support for effective adoption of comprehensive tobacco control policies like smoke-free public spaces; and an examination of the impact of tobacco on the livelihoods of the poor. Between 1990 and 2020, the world death toll from tobacco will rise from 3.0 to 8.4 million per year. Virtually this entire annual increase is expected to occur in developing countries. Now responsible for one in ten deaths, it will claim one in six by 2030 - ten million lives a year. Put in perspective, over the next 30 years, the number of people expected to die from tobacco-related illness exceeds the death totals for AIDS, tuberculosis, maternal mortality, homicide, suicide, and automobile accidents combined. Reinforcing the Foundation's focus on equity in health, the initiative will emphasize tobacco's impact upon the poor and ways to respond to this disproportionate burden of disease. Tobacco use is more prevalent among the poor and amplifies other health problems. Tobacco-related disease can be a major precipitant of medical impoverishment. And tobacco consumption exacts a high opportunity cost on poor households, limiting resources available for feeding the family. "By supporting networking, research in the local context and access to expert resources, we can help bridge the lag in globalization between the trade of tobacco and the developing country response to it," said Professor Gordon Conway, president of the Rockefeller Foundation. "With this support, we hope that developing countries will themselves be better positioned to tackle the challenges of tobacco use over the long term and on their own terms." Conway remarked that globalization -- whose benefits have accrued to a very small fraction of humankind often at the expense of the world's poor -- has accelerated the trade and promotion of tobacco. "Trading Tobacco for Health" is an attempt to redirect the currents of globalization to benefit the world's poor. "Trading Tobacco for Health" comes just over ten years after several Asian markets, including Thailand's, were forced open to U.S. cigarette imports. With its passage of strong tobacco control policies and its active non-governmental efforts to reduce smoking, Thailand has lowered smoking prevalence over the past decade. Campaigns to raise public awareness of the health harms of smoking, increased excise taxes on tobacco, and the establishment of a Health Promotion Foundation set an example for the developing world. The program will benefit from the regional expertise this experience has afforded. The Rockefeller Foundation stressed that this new initiative can only be a small part of the platform of support necessary to reduce tobacco use among the poor in developing countries. In order to achieve substantial and sustainable long-term gains, the Rockefeller Foundation will work to encourage other organizations to make tobacco control an important part of their funding strategies. # # # About the Rockefeller Foundation The Rockefeller Foundation's approach to current global challenges focuses on poor people's daily existence - their lives and livelihoods - and how the process of globalization can be turned to their advantage. The Foundation's program funding is focused and targeted among four "themes" that reflect the interconnected and intertwined themes of people's lives - their health, food, work and creative expression. The Rockefeller Foundation has a long history of both creating new knowledge by employing the most up-to-date tools of science and technology and then disseminating that knowledge to ameliorate human suffering. In the Foundation's past this method of using knowledge to focus on the root causes of problems, rather than their symptoms, has led to successes including the eradication of hookworm, the development of a Yellow Fever vaccine, and the modernization of developing country agriculture known as the Green Revolution. contact: e-mail: ttfh@rockfound.org From rob@essential.org Wed, 31 May 2000 11:23:18 -0400 (EDT) Date: Wed, 31 May 2000 11:23:18 -0400 (EDT) From: Robert Weissman rob@essential.org Subject: [Intl-tobacco] Study recommends 7% ownership limit in privatizing tobacco firm (fwd) Study recommends 7% ownership limit in privatizing tobacco firm Source: Korea Herald, Tuesday, 5/30/00 The privatization of the Korea Ginseng and Tobacco Corp. (KGTC) is expected to proceed in a way that prevents any company or individual from gaining a controlling stake. Unveiling its study on privatizing the tobacco monopoly in a public hearing yesterday, the Korea Development Institute suggested that the ceiling on ownership be set at 7 percent and maintained for 4-5 years. The rationale behind the idea is to prevent a chaebol group or multinational tobacco giant from emerging as a controlling shareholder. An official of the Ministry of Finance and Economy said the government will draw up a final privatization plan based on the views presented at the hearing. "But it will not deviate much from the KDI study." The studay said the ideal form of KGTC after privatization is the separation of management from ownership as is common among U.S. and British corporations. It opposed the sale of a controlling stake to a chaebol or multinational tobacco firm on three grounds. Firstly, the controlling shareholder is highly likely to put private benefits before maximization of corporate value; secondly, given the characteristics of the tobacco industry, it is more desirable to entrust the management of the company to a competent professional manager than to a chaebol group or foreign company; and thirdly, a chaebol group or foreign firm is unlikely to provide support to domestic tobacco leaf farmers. Based on these grounds, the study recommended that the present 7 percent ownership limit, which was scheduled to be lifted by the end of this year, be maintained till the professional management system takes roots. The KDI study also suggested the chief executive officer be selected by a CEO recommendation committee, to be formed by people independent from the government and company management, possibly including representatives of employees and consumers. The 10-15 person committee will have two thirds of its members filled by outside directors, who are to be recommended by a separate committee. The study also recommends formation of a committee comprising experts in management, accounting and personnel management to strengthen the role of the board of directors. A management committee should also be established with a president, vice president and managers of business divisions to carry out committee directives and execute day-to-day operations. If the government follows the recommendations, the sale of government shares, previously scheduled to be completed by the end of this year, is likely to be delayed depending on market conditions. The government is also likely to review a policy to pay subsidies to farmers which gives up growing tobacco leaves. The KDI study has drawn keen attention as it is believed to present a model for privatizing other state-invested corporations. From rob@essential.org Wed, 31 May 2000 11:24:23 -0400 (EDT) Date: Wed, 31 May 2000 11:24:23 -0400 (EDT) From: Robert Weissman rob@essential.org Subject: [Intl-tobacco] Australia: Bid to extend tobacco advertising ban (fwd) Bid to extend tobacco advertising ban by DARREN GRAY / CANBERRA Source: The Age, Wednesday, 5/31/00 A new law banning tobacco advertising at major sports events will be introduced in Federal Parliament today, World No Tobacco Day. The proposed law would ban tobacco advertising at all events, such as the Melbourne formula one Grand Prix and the Australian Motorcycle Grand Prix, from October 2006. A ban on tobacco sponsorship at sporting events exists, but events deemed of international significance can be exempted from the ban. The federal Health Minister must approve exemptions. The Australian Democrats and Labor said yesterday they would back the law. The anti-smoking group Quit said the ban could not happen soon enough. Health Minister Michael Wooldridge will today launch the Federal Government's latest anti-smoking commercials. The commercials show the amount of tar smokers inhale and illustrate how smoking can lead to blindness. Dr Wooldridge will also release a review of the National Tobacco Campaign. A spokeswoman for Victorian Health Minister John Thwaites said the State Government supported the tougher stand against tobacco sponsorship. The spokeswoman said the government did not believe the ban would harm attempts to host the race after 2006. Federal Labor health spokeswoman Jenny Macklin said a report recommended the government adopt a blanket ban covering sports events two years ago. "It has just taken a ridiculous amount of time to get the bill into the Parliament," she said. A Democrats source said the law would send a strong message to the international community that Australia did not think it was appropriate to associate tobacco with sport. Although the main sponsor of the Melbourne Grand Prix is not a tobacco company, some of the racing teams have tobacco sponsorship. Honda Indy 300 general manager Geoff Jones said tobacco advertising at the race was allowed only on cars. From rob@essential.org Wed, 31 May 2000 11:57:15 -0400 (EDT) Date: Wed, 31 May 2000 11:57:15 -0400 (EDT) From: Robert Weissman rob@essential.org Subject: [Intl-tobacco] WHO Seeks Global Ban on Tobacco Ads (fwd) WHO Seeks Global Ban on Tobacco Ads by Matthew Pennington / Associated Press Writer Wednesday, May 31, 2000; 5:53 a.m. EDT BANGKOK, Thailand =96=96 The World Health Organization launched a global campaign against the tobacco industry today, accusing the companies of systematically spreading death almost unchallenged. The organization said it would make a global ban on tobacco advertising a priority in an agreement to be negotiated by its 191 members. Dr. Gro Harlem Brundtland, director-general of the WHO, marked World No-Tobacco Day in the Thai capital to pay tribute to activists who won a nationwide ban on tobacco advertising in 1992. About 10,000 people demonstrated in central Bangkok, singing anti-tobacco songs and starting a clock representing one death every eight seconds from tobacco-related disease. "Tobacco is a communicable disease. It's communicated through advertising, marketing and making smoking appear admirable and glamorous," Brundtland said. Brundtland accused the tobacco industry of using sports and entertainment figures to market its products to children and create a new generation of smokers. "It is hard, if not impossible, to find any parallel in history where people who have gone about in such a systematic way perpetuating death and destruction have gone unpunished and unquestioned," said Brundtland, a former prime minister of Norway. Brundtland said 10 million people a year will die from tobacco-related deaths by 2030, more than 70 percent of them from the developing world, an increasingly important market for tobacco companies. Currently, the figure is 3.5 million to 4 million. David Wilson, regional manager of corporate affairs for British-American Tobacco, which has a 15 percent share of the global cigarette market, denied on Tuesday that children are targeted. Wilson also complained that the industry was being "locked out" of negotiations on the planned Framework Convention on Tobacco Control, which will consider the global advertising ban. Brundtland said tobacco companies would be given the chance to put their case across to the WHO in Geneva in October. According to the WHO, about 1.15 billion of the world's 6 billion-plus people are smokers. China, the world's biggest tobacco producer and consumer, will draw up a national tobacco-control plan to reduce smoking-related health problems and economic losses, the state-run Beijing Morning Post said today. Brundtland praised Thailand for responding "forcibly" 10 years ago when it came under pressure to open its markets to foreign tobacco. Thailand eventually was forced to open to foreign imports, but the spat created momentum for the anti-tobacco campaign. Health Minister Korn Dabbaransi said Thailand's action had left it "the loser in trade, but the winner in health." From rob@essential.org Wed, 31 May 2000 12:04:43 -0400 (EDT) Date: Wed, 31 May 2000 12:04:43 -0400 (EDT) From: Robert Weissman rob@essential.org Subject: [Intl-tobacco] South African Smokers Have One Month To Puff Away (fwd) SA Smokers Have One Month To Puff Away Source: The Independent Online (IOL), Tuesday, 5/30/00 May 30 2000 at 03:34PM Regulations to curb the smoking habits of South Africans would be promulgated by the end of next month or early July, Patricia Lambert, adviser to the health minister, said on Tuesday. Speaking at a news conference in Pretoria to mark Wednesday's World No-Tobacco Day, she said the regulations would stop smoking in public places, which included the workplace. The legislation had to be altered to exclude regulation of smoking in people's homes, Lambert said. However, this presented problems as the constitution included an obligation to protect children. "It is difficult for children to protect themselves in their own homes against their smoking parents." Health Minister Manto Tshabalala-Msimang said: "The exposure of children to household tobacco levels has reached critical levels." Of the five-year-olds living in Soweto, 64 percent were found to live with at least one smoker in the home, she said. Dr Priscilla Reddy, director of the Medical Research Council's national health promotion and development office, said that according to preliminary findings of a survey conducted among 6 000 children nationwide, 43,6 percent of 13- to 15-year-olds were exposed to tobacco smoke in their homes. More than 42 percent had smoked at least once in their lives. "That is alarming. That is our nation's tomorrow." Reddy said 21 percent indicated that the first thing they wanted when they woke up in the morning was a cigarette. One-fifth of the respondents had smoked for the first time before they were 10 years old, 18 percent currently smoked and 10 percent smoked frequently. About 35 percent thought it was difficult to quit smoking, she said. "As the years progress, how much more addicted are they going to be?" Tshabalala-Msimang said passive smoking could have a particularly harmful effect on the respiratory systems of babies and young children. A recent study found that women were far more likely to develop cancer after exposure to second-hand smoke than men were. It also indicated that some non-smoking women might be genetically susceptible to second-hand smoke. In South Africa, 40 percent of men and 12 percent of women smoked. "How can we stand by and do nothing when we have proof that the smoking of men and a few women is endangering the lives and causing disease amongst most of our women, all of our children and a few of our men? "We have a duty to protect non-smokers from smokers, and we intend to do just that. We will promulgate our regulations as soon as possible, and in doing so, we will give real effect to people's constitutional right to live in a healthy environment." For decades, cigarette advertising glamourised smoking, yet failed to inform the public that the products were highly addictive, could kill, or at the least, cause serious illness. "It is our duty to protect people, especially young people, from this blatantly deceitful and downright dangerous advertising." Dr Yusuf Saloojee, director of the National Council against Smoking, lashed out at a cigarette advertisement posing the question: "Do I look afraid to take a chance?" He said it encouraged people to take the risk of smoking. "It's like encouraging people to drink and drive." Lambert said that within three months of the promulgation of the regulation, smoking rooms, not exceeding 25 percent of the total area of the premises, would have to be designated at workplaces. Smokers working at a place without a smoking room, would have to go outside to light up. The only place where smoking was not regulated was the open air, because that would have been too difficult, she said. Asked about the possible intimidation of or discrimination against non-smokers on the grounds of their complaints, Lambert said the Labour Relations Act protected employees against victimisation or threatening. However, more subtle threats might be difficult to control. She suggested that a complaint about smoking should be directed to a person in a high position and in written form. Saloojee said some people saw the legislation as anti-smokers, while the issue was smoking. "The struggle was against apartheid, never against white South Africans." Regarding suggestions that the law was painted as unworkable and unrealistic, he said: "This is not true." Tshabalala-Msimang said she was sure the law and regulations would achieve their objectives. She said her department would ensure that the regulations were in line with the constitution. "I'm convinced we are on the right track." South Africa's tobacco legislation was in line with that of many other countries - including banning tobacco advertising, creating smoke-free workplaces, prohibiting free cigarette hand-outs and reducing tar and nicotine in cigarettes. "They are doing this for the sake of their vulnerable citizens, and also because tobacco-related illnesses are costing health systems a great deal of money - money that is literally going up in smoke." - Sapa From rob@essential.org Wed, 31 May 2000 12:42:27 -0400 (EDT) Date: Wed, 31 May 2000 12:42:27 -0400 (EDT) From: Robert Weissman rob@essential.org Subject: [Intl-tobacco] End The Export Subsidy for Big Tobacco! (fwd) From=20the Campaign for Tobacco-Free Kids. Please respond to jglanz@tobaccofreekids.org, not to this list. End The Export Subsidy for Big Tobacco! Dear Colleagues: Attached is a letter to President Clinton asking the Administration to eliminate tax breaks for U.S. tobacco company exports. Currently, under the Foreign Sales Corporation (FSC) program, U.S. tobacco companies can legally avoid paying taxes on a portion of their profits from cigarette exports. This program has been challenged by the European Union at the World Trade Organization (WTO), and the Administration is trying to devise a replacement program that would comply with WTO rules. We are asking that tobacco companies be excluded from whatever they come up with.=20 What You Can Do: 1. Sign-on to the letter to President Clinton by close of business, Monday, June 5th. Please send organizational endorsements to: Judy Glanz, Campaign for Tobacco Free Kids, e-mail: ; fax: 202-296-5427.=20 2. Contact your Congressional representative and encourage them to sign-on to =93the Doggett letter to end taxpayer subsidies for tobacco exports=94, = which currently has 68 co-signers. A copy of that letter and a list of current signatories is also attached. Congressional endorsements can be sent to Lindsay at Rep. Doggett=92s office; tel. 202-225-4865. Thanks Dear President Clinton: As your negotiators seek an agreement with the European Union on their challenge to U.S. export subsidies at the WTO, we are writing to ask you to exclude U.S. tobacco companies from any future program designed to enhance America=92s export competitiveness. Currently, tax subsidies for U.S. cigarette exporters under the Foreign Sales Corporation program cost American taxpayers $100 million a year.=20 The dangers of nicotine addiction to our children are well-known: three thousand young Americans each day become regular smokers =96 the leading ca= use of preventable death in America. But these dangers do not stop at our shores. Globally, the World Bank estimates that between 80,000 and 100,000 kids become addicted to cigarettes every day. With increasing pressure in the United States to stop hooking our kids on nicotine, the big tobacco companies are, with the unwitting support of American taxpayers, trying to addict new generations of smokers overseas. Tobacco-related illnesses kill = 4 million people a year around the globe. If current trends continue, by 2030= , ten million people will die every year, 70 percent of them in developing countries. The tobacco industry should not receive any assistance from the U.S. government in their quest to addict new generations of smokers overseas. At a time when your Administration is taking strong action against the tobacco companies for their deception and misconduct in the United States, we ask that they not be rewarded through select provisions of the tax code for their misconduct overseas. Thank you for your attention to this matter. Sincerely, cc. Lawrence Summers Stuart Eizenstat Lloyd Doggett =20 May 1, 2000 U.S. will take plan to Europe By MARTIN CRUTSINGER AP Economics Writer WASHINGTON (AP) _ Trying to overturn the worst trade defeat the United States has suffered at the World Trade Organization, the Clinton administration said Monday it has achieved strong bipartisan backing for proposed changes to a tax benefit provided to American exporters. Deputy Treasury Secretary Stuart Eizenstat was to present the proposal in discussions Tuesday in Brussels with officials of the European Union. The 15-nation EU successfully challenged the $4 billion annual tax break fo= r U.S. exporters before the WTO, which ruled earlier this year that it represented an illegal export subsidy. Eizenstat told an audience at the U.S. Chamber of Commerce on Monday that he had discussed the administratio= n proposal with top Republicans and Democrats in the House and Senate as well as the U.S. business community. =93We will go (to Brussels) with united support from the business community= , from congressional leadership,=94 Eizenstat said. =93That will give us a ve= ry strong hand in our discussions.=94 Eizenstat will have discussions over the next two days with Pascal Lamy, the EU's top trade negotiators, and other European economic officials in Brussels, London and Paris. Eizenstat refused to reveal details of his plan to reporters but he said the proposal was the result of =93intensive discussions=94 the administration has held with tax experts in both the House and Senate. The United States has until Oct. 1 to comply with the WTO decision that its Foreign Sales Corporation program is an illegal trade subsidy. After that date, the EU could retaliate with higher tariffs on American products. The program, which was created in 1984, allows some 6,000 U.S. companies including Boeing, General Motors, Microsoft and United Technology, to reduc= e income taxes by up to 15 percent by creating export subsidiaries in tax havens such as the Virgin Islands and Barbados. The intent of the program was to offset an EU tax rebate given to European companies for goods sold overseas. Eizenstat has held discussions with Rep. Charles Rangel, D-N.Y., the senior Democrat on the Ways and Means Committee= ; House Ways and Means Committee Chairman Bill Archer, R-Texas, and Senate Finance Committee Chairman William Roth, R-Del. Aides said the gist of the administration's proposal is to repeal the Foreign Sales Corporation program entirely and then lower income taxes on the foreign subsidiaries of U.S. companies to make up the difference. This would avoid European Union charges of unfair trade practices by applying not only to U.S. exports from these subsidiarie= s but also to products they make overseas and sell back to the United States. No cost estimated was immediately available. =20 Rep. Doggett=92s Letter To End Taxpayer Subsidies For Tobacco Exports May 10, 2000 The Honorable Stuart E. Eizenstat Deputy Secretary of the Treasury 1500 Pennsylvania Avenue, NW Washington, D.C. 20220 Dear Secretary Eizenstat: In your position as the lead Administration official charged with implementing an acceptable response to the adverse World Trade Organization (WTO) decision on Foreign Sales Corporations (FSC), we urge you to provide leadership in terminating any benefit for export of tobacco products.=20 As you are well aware, through FSC, US businesses export domestically manufactured goods and shelter a portion of that income from US taxes. Despite earlier estimates that the FSC provision accounts for $2 billion in lost revenues annually, new estimates show that the FSC accounts for at least $4 billion a year, soon to grow to $6 billion annually. The latest available data from the Statistics of Income division at the Internal Revenue Service (Spring 2000 Bulletin, analyzing 1996 tax year) show tobacc= o products sold through FSC=92s accounted for $100 million in lost tax revenu= e in 1996 (almost $7 billion in gross foreign tobacco sales through FSC=92s, providing $285 million in exempt income). There is no justification for compelling American taxpayers to support a $100 million tax subsidy annuall= y for the benefit of US tobacco companies. The dangers of nicotine addiction to our children are well-known: three thousand young Americans each day become caught up in a nicotine habit ?? our leading cause of preventable death in America. But these dangers do no= t stop at our American shores. With increasing pressure to stop hooking our kids on nicotine, the big tobacco companies have turned to other people=92s kids by peddling nicotine around the globe. Since 1990, while Philip Morris=92s sales have grown minimally in the Unite= d States, they have grown by 80% abroad. Smoking currently causes more than 3.5 million deaths each year throughout the world. Within 20 years, that number is expected to rise to 10 million, with 70% of all deaths from smoking coming in the developing countries that are the newest targets in big tobacco=92s continued addiction to making money at the expense of human lives. In fact, tobacco will be the leading cause of disease and premature death worldwide -- bypassing communicable diseases such as AIDS, malaria, and tuberculosis. There is no reason that the American taxpayer need contribute to this export of death and disease, where the result, intended or otherwise, is more children around the globe smoking. The legislative history of the FSC provision (formerly DISC) shows exclusio= n from benefits for certain products for a number of reasons: the domestic supply not adequate to meet domestic demand (1971); products already receiving other government subsidies (1971); natural resources and energy products where cost depletion allowable (1975); products subject to export controls (1975); military products on the munitions list (1976); unprocesse= d timber (1993). In some cases, the exclusion of products from export benefits promotes congruence with other federal government policies, as wit= h items subject to the Export Administration Act. Other reasons for prohibiting certain items over the years have ranged from difficulty in tax administration (as with intangibles), benefits unnecessary due to high foreign demand (see 1976 House vote eliminating agricultural products), and concern for displacement of US jobs (as with timber). =20 As you know, this Administration is pursing legal remedies against the tobacco companies for decades of deception and addiction and has proposed allowing the Food and Drug Administration both to regulate tobacco as a drug-delivery device and to control access to minors. We seek your help to end the contradiction of using the tax code to encourage US companies, whic= h export products that, when used as intended, result in addicting children abroad to nicotine and pushing them down a path to cancer, heart disease, and emphysema. We urge the elimination and exclusion of these products fro= m any new FSC law. =09=09=09=09=09 Sincerely, Current List of Signatories, as of 26 May 2000 Ackerman Allen Baldacci Blagojevich Bluemenauer Brown, Sherrod Capps Capuano Conyers DeFazio DeLauro Deutsch Doggett Eshoo Farr Frank Ganske Green Gutierrez Hansen Hastings Hinchey Holt Hooley Jones, Stephanie Tubbs Kildee Kind Kucinich LaFalce Lampson Lantos Levin Lewis Lofgren Lowey Luther Maloney, Carolyn Markey Matsui McCarthy McDermott McGovern Meehan Millender-McDonald Miller, George Moakley Nadler Neal Olver Owens Pallone Payne Pelosi Rivers Rodriguez Rothman Royal-Allard Sanders Schakowsky Serrano Slaughter Snyder Stark Tierney Waxman Weygand Woolsey Wu From rob@essential.org Thu, 1 Jun 2000 12:33:40 -0400 (EDT) Date: Thu, 1 Jun 2000 12:33:40 -0400 (EDT) From: Robert Weissman rob@essential.org Subject: [Intl-tobacco] Africa Remains A Viable Market For Cigarette Companies (fwd) Africa Remains A Viable Market For Cigarette Companies by Peter Masebu / PANA Correspondent Source: Panafrican News Agency, Wednesday, 5/31/00 DAKAR, Senegal (PANA) - Combining beauty, charm and the ability to speak several foreign languages, Yaya sells stacks of cigarette packets to delegates at an African regional conference in Dakar, the Senegalese capital. Her multinational cigarette company is among those reputed for their "generous" sponsorship of sporting events ranging from football, horse racing to wrestling, the most popular sport in Senegal. The government also endorses it because it pays taxes and creates employment. Senegalese authorities are aware that cigarettes constitute a health hazard, but they turn a blind eye to the massive sale of cigarettes by beautiful girls like Yaya during conferences, or football matches. Tobacco smoking advertising has gone down considerably in Senegal over the last decade, but like in many other African countries the rate of smoking keeps on rising. African tobacco exporting countries cannot wage a viable anti-tobacco campaign because the crop earns them badly needed foreign currency. Hamstrung by tough anti-smoking regulations in the industrialised West, multinational cigarette companies have turned to the African region as a last resort for their earnings. They use several lies to dupe African governments into allowing their continued operations and crafty advertisement to attract youngsters to begin "puffing." Without realising it, they became nicotine addicts hooked to the cigarette for life. The Paris-based International Non Governmental Coalition Against Tobacco (INGCAT) put it bluntly at a recent conference in that the African region "is now the target for profit accumulation by the tobacco industry." INGCAT's co-ordinator, Dr Karen Slama, warned during the 13th conference of the African Region of the International Union Against Tuberculosis and Lung Disease or IUATLD in Conakry, Guinea, that "tobacco marketing is a vector for tobacco diseases" including cancer and tuberculosis. But what was more alarming in her presentation during the 24-27 May conference was the revelation that Africa's increase of 3.2 percent per year in tobacco consumption was "the highest in the world." This consumption is rising dramatically particularly among 15-year olds. Slama provided startling statistics showing smoking prevalence rates among 15-year old Algerian males at 53 percent and 10 percent for females. South Africa's rates were 52 percent for males and 17 percent among young females while Mauritania's stood at 47 percent and 4 percent for the two sexes, respectively. The figure for Swaziland was 38 percent for males and 8 percent for females while Nigeria's stood at 24 percent for males and 7 percent for females. At the Conakry conference, Slama cited an article published by the London Times newspaper 15 May as being part of the strategy being employed by tobacco companies to maintain their grip on the African market. The article alleged that tobacco smoking causes "non-infectious diseases (which) pose individual but not public health risks." It purported that tobacco-use-related diseases "do not require the same degree of international co-ordination as the fight against contagious epidemics," including malaria and AIDS. But, in a note to PANA ahead of Wednesday's No Smoking Day, Slama affirmed: "This is a tobacco industry lie, but it is not true. Tobacco is a public health problem expected to cause 450 million deaths over the next 50 years." She also cited a 1988 letter from British American Tobacco (BAT) to the Ugandan health ministry, saying it did not believe "cigarette smoking is harmful to health." She produced a 1990 BAT internal document, which said: "We should not be depressed simply because the total free world markets appear to be declining. Within the total market, there are areas of strong growth particularly in Asia and Africa." In 1998, Rothman's representative said in Burkina Faso that "the average life expectancy here is 40 years, infant mortality is high, the health problems which some say are caused by cigarettes just won't be a problem here." Denouncing the misinformation, Slama told the conference that tobacco was an "urgent problem for Africa today." Some 90,000 deaths were attributed to tobacco in Africa 10 years ago. Tobacco use caused one in 20 adult deaths a decade ago or one in every 84 deaths. To curb further tobacco-related deaths, the IUATLD calls for total ban on tobacco promotions, advertisement and sponsorships, disclosure of product development and high taxation to make it out of reach to the majority. It also calls for restrictions to smoking in public places to protect the population from "the health consequences of involuntary exposure to others' smoking." Many African governments cannot afford to do away with tobacco use because this brings in money. However, it would be ethical if all smokers are clearly informed that their activity can lead to cancer or tuberculosis. From rob@essential.org Thu, 1 Jun 2000 12:36:12 -0400 (EDT) Date: Thu, 1 Jun 2000 12:36:12 -0400 (EDT) From: Robert Weissman rob@essential.org Subject: [Intl-tobacco] Swaziland Prepares Tobacco Control Law Swaziland Prepares Law to Ban Smoking by Vuyisile Hlatshwayo SWAZILAND; Source: Panafrican News Agency, Wednesday, 5/31/00 MBABANE, Swaziland (PANA) - Swaziland is currently preparing legislation aimed at discouraging smoking in public places and indiscriminate sale of tobacco in the country. Speaking in Mbabane Wednesday during the launch of World No Tobacco Day, the country's health and social welfare minister, Phetsile Dlamini, appealed to businesses to stop using sports sponsorship to advertise tobacco. She also appealed to larger countries not to dump cigarettes banned in their respective territory in Swaziland. She denounced the smuggling of such cigarettes into the country where they were being sold even to the youth. "We appeal to everyone not to smoke on 31 May, 2000 and onwards in the new millennium," she said. She justified the theme of this year's event, "Tobacco Kills, Do Not Be Fooled." She regretted that although tobacco kills many Swazis, it is over advertised. She warned Swazis not to be cheated that smoking was trendy and fashionable, highlighting the health hazards it causes. She said among the many diseases caused by tobacco smoking, were heart diseases and hypertension, cancers of the lung, throat, voice box and mouth, bronchitis, pneumonia and emphysema and asthma. Dlamini also warned that smoking pregnant mothers exposed their unborn baby to nicotine. "This causes small brain and poor growth rate and general failure to thrive as well as easy infections," she said. Dlamini added that smoking is also a health hazard to family and friends. "For this reason we discourage smoking in public which exposes other people. Smoking is an expensive slow suicide," she said. Meanwhile, Siboniso Mdluli of the Council of Swaziland Against Alcohol and Drug echoed the words of the minister, discouraging the youth from tobacco smoking. He lamented that the youth still think smoking is trendy and fashionable which has resulted in an increase in the number of youth smokers in the country. Swaziland's World Health Organisation representative, T. Lesikel, also warned Swazi nationals about the dangers associated with tobacco use. She singled out rolled tobacco as more harmful than the other tobacco products because it has a higher content of nicotine and tar. Lesikel also warned the youth not to be fooled by advertisements, which tell them that if they smoke they assume high status, look good, become popular and women feel more independent. She re-affirmed WHO's commitment in the fight against tobacco by providing technical and financial assistance to the ministry of health and social welfare and its partners in the fight against tobacco. The ministry of health and social welfare, jointly with the WHO office, would distribute brochure with information on the dangers of tobacco-smoking to people at the various strategic places like bus terminals and shopping malls in the two cities of Mbabane and Manzini. Copyright (c) 2000 Panafrican News Agency. From rob@essential.org Thu, 1 Jun 2000 12:36:46 -0400 (EDT) Date: Thu, 1 Jun 2000 12:36:46 -0400 (EDT) From: Robert Weissman rob@essential.org Subject: [Intl-tobacco] Thailand: House panel eyes teens, MPs, monks (fwd) House panel eyes teens, MPs, monks Source: Bangkok Post, Wednesday, 5/31/00 A House panel wants strict enforcement of bans on the sale of cigarettes to young teenagers, including controls on the installation of automatic vending machines. It will also target monks who smoke and push for no-smoking areas in the parliament building. "Many state officials, politicians and their aides smoke everywhere at the parliament. They must change their behaviour," Ratana Anantanakin, deputy spokeswoman for the committee for youth, women and the elderly said yesterday. Speaking after a meeting at the parliament to mark World No-Tobacco Day, she said the panel would fight against the lenient enforcement of non-smoking regulations. "Despite the Tobacco Control Act of 1992, violations are rampant such as smoking in state agencies and public places as well as cigarette sales to teens under 18, who can still buy cigarettes from traders and even easier from automatic vending machines at shopping centres and theatres," Ms Ratan said. The House committee would urge police to tackle traders who sell cigarettes to minors and to strictly control the installation of automatic cigarette vending machines. It would ask the Education Ministry to launch anti-smoking campaigns in schools and push for restricted smoking zones at the parliament to set a good example for other state agencies. "The Education Ministry should include smoking in the criteria for the calculation of the grade point average students use in the entrance examination process," Miss Ratana said. Surinan Ariyawongsophon, an adviser to the panel, said smoking was popular among the youth because they saw their teachers smoke in schools. The Education Ministry should step up its anti-smoking campaign and restrict the areas where teachers can smoke in school. Monks who smoke were also violating a basic Buddhist precept and the Sangha Council's rules, and the panel would ask the Religious Department to discipline them. From rob@essential.org Thu, 1 Jun 2000 12:38:06 -0400 (EDT) Date: Thu, 1 Jun 2000 12:38:06 -0400 (EDT) From: Robert Weissman rob@essential.org Subject: [Intl-tobacco] Congratulations to our friend Dr. Hatai! Thai Medic's Anti-tobacco Role Honoured / Doctor one of only 18 people worldwide by Aphaluck Bhatiasevi Source: Bangkok Post, Thursday, 6/1/00 A Thai doctor who strongly advocates tobacco consumption control was among three Southeast Asians honoured yesterday with the World Health Organisation's first "Tobacco-Free World Awards 2000" only given to 18 people worldwide. Dr Hathai Chitanondh, president of the Thailand Health Promotion Foundation, was awarded for his effort in initiating and drafting two tobacco laws and in pushing for their enforcement. A staunch anti-smoking campaigner, Dr Hathai, 70, had actively pushed for the enforcement of the Non-Smokers' Health Protection Act and the Tobacco Products Control Act, both of which went into effect in 1992. After retiring as deputy permanent secretary for public health in 1989, Dr Hathai became the first secretary of the National Committee for the Control of Tobacco Use. He also chaired a committee drafting tobacco control laws. Dr Hathai has vowed to fight the tobacco industry for the rest of his life. "We have to fight them all the time, all our lives because the tobacco industry usually goes underground. They lobby under the table," he said. Dr Hathai said though Thailand has achieved a level of success in controlling tobacco consumption, a lot more needed to be done to counter trans-boundary problems such as cigarette smuggling. Dr Judith Mackay, a senior WHO policy adviser, said there were currently 10.2 million smokers in Thailand, and this was expected to rise to about 15 million by 2025, due mainly to increasing population. The other two organisations honoured by the WHO yesterday were the National Cancer Institute of India and the Ministry of Public Health of Maldives. WHO director-general, Dr Gro Harlem Brundtland said governments should be made to realise the gains they made from tobacco product sales would not be permanent. She said positive signs were being observed from major international foundations, such as the Rockefeller Foundation which has announced a US$10-million fund to help four developing countries in Southeast Asia fight tobacco consumption. From rob@essential.org Thu, 1 Jun 2000 21:47:55 -0400 (EDT) Date: Thu, 1 Jun 2000 21:47:55 -0400 (EDT) From: Robert Weissman rob@essential.org Subject: [Intl-tobacco] Brazil Moves to Ban Tobacco Ads, Hike Taxes (fwd) Brazil Moves to Ban Tobacco Ads, Hike Taxes by Shasta Darlington Source: Reuters, Thursday, 6/1/00 RIO DE JANEIRO (Reuters) - Brazil sent a bill to Congress on Wednesday proposing that Latin America's biggest country ban all tobacco advertising and sports sponsorship and hike cigarette taxes in a bid to prevent kids from getting hooked on smoking. To commemorate World No-Tobacco Day, the Health Ministry signed off on the bill and released its first major study on smoking in Brazil, which predicts higher taxes could cut smoking over time by up to 12%. ``The approval of this bill will be very important to our fight,'' Jacob Kligerman, general director of the ministry's National Cancer Institute, said at a press conference. Officials hope that by hiking prices and prohibiting advertising on television and at popular sports events like car races they can discourage youths from smoking. Brazilians smoke only half as much as US residents on a per capita basis, but officials in the country of 165 million people are alarmed by the number of youths lighting up. Brazil is home to 2.7 million smokers between the ages of 5 and 19. ``This is a fundamental question for a country if it doesn't want its children dying of cancer,'' said Vera Luiza da Costa Silva, coordinator of the ministry's smoking prevention programmes. Because Brazil is a low-cost tobacco producer, local cigarettes are some of the cheapest in the world at $1.62 a carton, including a 74% tax. The ministry said that with a 15% price increase through higher taxes, smoking would drop off between 1.5 and 3% in the short term and between 6 and 12% in the long term. The ministry has also launched a new advertising campaign that spotlights the death from lung cancer of Wayne McLaren, a former model for a famous brand of cigarettes. In the ad, one horseman asks another as they ride into the sunset ``You know that cowboy from the cigarette ads? He died from cancer.'' Worldwide, about 3.4 million people die from smoking each year, according to the World Health Organisation. From rob@essential.org Thu, 8 Jun 2000 12:58:59 -0400 (EDT) Date: Thu, 8 Jun 2000 12:58:59 -0400 (EDT) From: Robert Weissman rob@essential.org Subject: [Intl-tobacco] EU: Cigarette makers show friendly opposition to Brussels (fwd) Cigarette makers show friendly opposition to Brussels by Michael Smith Source: Financial Times, Thursday, 6/8/00 Tobacco can kill; it can also lobby. Two years after the tobacco industry's last big European Union battle - over an advertising ban - cigarette makers are back in Brussels in force. This time their target is a proposal to tighten rules on cigarette content and labelling, due for debate next week in the European parliament. And this time the industry is presenting a more friendly face. Instead of outright opposition, the tactic used unsuccessfully in the advertising battle, the manufacturers are merely pressing for change to the proposals. Philip Morris says it "largely supports" the proposed directive. "Tobacco is a unique product that entails risks," says David Davies, a vice-president. "Public authorities have an important role to play in regulating its use." Wilfried Dembach, chairman of Ceccm, representing cigarette manufacturers, makes equally soothing noises but denies tactics have changed because of the defeat over advertising. There is, he suggests, room for debate and for compromise. "If you are faced with a total ban, as over advertising, what else can you do but oppose?" he says. "Here it is different". In spite of the industry's softer tone, the debate is likely to be vigorous. Tobacco generates controversy like few other subjects; it divides member states between supporters of tighter controls such as the UK and sceptics, such as Germany, and creates tensions within the political parties in the European parliament. Smoking-related deaths may kill 500,000 EU citizens every year, as David Byrne, union health commissioner responsible for the directive, asserts. But tobacco generates annual EU revenues of E60bn ($57bn) and supports 1m jobs. Figures like these impress, and members of the European parliament have submitted more than 200 amendments ahead of next week's debate which will culminate in the first of two parliamentary votes. Most seek to tighten controls but some MEPs feel the proposed legislation goes too far and Commission officials fear there may be attempts to postpone the debate to later in the year to allow the industry time to lobby. Under the Commission's proposals, permissible levels of tar would be cut from 12mg to 10mg a cigarette and a limit would be set for carbon monoxide for the first time, also at 10mg. Manufacturers would have to cover a quarter of packs with "smoking kills" or "smoking can kill" warnings printed in black and white. Descriptor terms such as "light" and "mild" would be banned unless specifically authorised by individual governments. The industry's chief concern appears to be a requirement that content rules apply to exported cigarettes. This, it says, would put E6.5bn in trade and 8,000 EU jobs at risk, and is unjustified. Ceccm argues that some of the other proposals in the directive would distort markets. Insisting on black and white labels would, for example, be discriminatory, causing more difficulties for some manufacturers than others, depending on existing packet colours. Jules Maaten, a Dutch MEP who prepared the report on which parliament will vote, says the industry's "positive" approach has influenced his and others' thinking. "I have followed some of their suggestions," he says, citing his backing for an industry proposal on additives analysis. Mr Maaten also wants the content controls on exports delayed until 2006. But the overall thrust of his and other MEPs' suggestions is to tighten the Commission's proposals. One would increase the proportion of the cigarette packs covered by health warnings to 40 per cent on the front and 50 per cent on the back. Another would ban descriptors altogether. Next week's debate, however, is just the start. Assuming MEPs take a vote as planned, the directive would go to government health ministers meeting later in the month before going back to parliament and then returning to health ministers again, perhaps later in the year. Finally a compromise would emerge. It may not get that far. The ban on tobacco advertising was approved by the smallest yes vote permissible under EU rules after four countries including Germany and Spain withheld their support. Supporters of tighter controls think the tide of opinion has turned against the tobacco industry since then but they are taking nothing for granted. "We are in for a long, hard fight," said one EU official supporting tighter controls. "And so are the manufacturers." From rob@essential.org Thu, 8 Jun 2000 14:53:05 -0400 (EDT) Date: Thu, 8 Jun 2000 14:53:05 -0400 (EDT) From: Robert Weissman rob@essential.org Subject: [Intl-tobacco] Philippines: Philip Morris to invest $300 M in RP (fwd) (note the date) Philip Morris to invest $300 M in RP by Des Ferriols Source: Philippine Star, Wednesday, 5/24/00 US-based tobacco giant Philip Morris Co., Inc. is putting in $300 million worth of new investments for the development of a new and expanded cigarette manufacturing facility in Southern Tagalog. Top officials of PMCI's Philippine subsidiary, Philip Morris Philippines Inc., met with Trade and Industry Secretary Manuel Roxas II yesterday to explore the possibility of tapping government incentives available to export industries. Hit hard by a dramatic contraction in the increasingly health-conscious markets of Europe and North America, the world's biggest cigarette manufacturer has been moving into Asia and Africa where the markets continue to expand by leaps and bounds. Philip Morris already has tobacco processing and manufacturing facilities in Remban, Malaysian and Malang, Indonesia. During his meeting with PMPI managing director George Farrah, Roxas said the company remains upbeat about the prospects in the Philippine market and the Asian market in general. According to Roxas, the company is planning to put up a new joint venture with its long-time local partner, La Suerte Cigar and Cigarette Factory, which would eventually seek the registration of its project with the Board of Investments. Philip Morris, Roxas said, intends to close down its existing facility along South Super-Highway in Para=F1aque and move its operations to Souther= n Tagalog where it will construct a new and expanded manufacturing facility. The new facility, according to Roxas will be one and a half times bigger than the company's existing plant and will increase its production capacity from 20 billion cigarette sticks to 30 billion sticks. "They are planning to export part of their production so they are thinking of registering as an export business," Roxas said. "This would quality them for incentives available to all export industries." According to Roxas, "They want to continue and expand their business here because of our Western-style of doing business as well as our workforce," Roxas said. "Add to this the fact that the Philippines is the 15th largest cigarette market in the world." Roxas said Philip Morris plans to source part of its tobacco requirements from local sources. Traditionally, the company imports 60 percent of its requirement for Virginia tobacco while buying the rest from local producers. Philip Morris' existing joint venture with La Suerte employees 1,200 workers and generated P14.33 billion in sales in 1999 and P251.58 million in profits. PMPI is 19th in the top 100 companies listed by the Securities and Exchange Commission. From rob@essential.org Wed, 14 Jun 2000 12:23:40 -0400 (EDT) Date: Wed, 14 Jun 2000 12:23:40 -0400 (EDT) From: Robert Weissman rob@essential.org Subject: [Intl-tobacco] MPs demand virility warnings on cigarettes (fwd) MPs demand virility warnings on cigarettes Source: The Independent, Wednesday, 6/14/00 An all=96party committee of MPs has called for cigarette packets to carry harder=96hitting health warnings =96 including messages that smoking damage= s male potency. In a report the Commons Select Committee on Health said all packs should state the addictiveness and damage to health caused by smoking. They added: "In addition, a variety of health messages =96 such as that relating to male potency =96 should be used on certain packets. "These messages should be harder=96hitting and more relevant to consumers than those currently used." The long=96awaited report also called for the Department of Health to set much tougher targets for reducing smoking. They also called for tougher measures to stop non=96smokers being affected by other's cigarettes. "Bearing in mind that asthma causes 1,400 deaths per year, we do not regard asthma attacks as merely unpleasant and believe that policy goals relating to environmental tobacco smoke must take account of the real health risks it poses." The report also called for tougher measures to prevent sales to children and statutory regulation of tobacco advertising. The MPs also urged a Department of Trade and Industry investigation into claims that British American Tobacco has been involved in large scale cigarette smuggling. BAT has been accused of orchestrating, managing and controlling cigarette smuggling in Asia and Latin America in the early 1990s. The report said if the allegations "prove to be substantiated, the case for criminal proceedings against BAT should be considered". BAT has previously strenuously denied the allegations and insisted the company has been the victim of smuggling. From rob@essential.org Wed, 14 Jun 2000 12:24:48 -0400 (EDT) Date: Wed, 14 Jun 2000 12:24:48 -0400 (EDT) From: Robert Weissman rob@essential.org Subject: [Intl-tobacco] Lebanon Seeks to Stub Out Cigarette Ads (fwd) Karam hopes to butt out smoking ads by Alia Ibrahim / Daily Star staff Source: (Beirut, Lebanon) Daily Star, Tuesday, 6/6/00 Stepping up Lebanon's campaign against smoking, Health Minister Karam Karam announced on Monday that he wants to stop tobacco advertisements and boost taxes on all forms of tobacco. His ministry has made the hazards posed by smoking one of its most important public campaigns this year by launching a nationwide anti-smoking effort with the collaboration of the World Health Organization. As part of that campaign, Karam suggested that the government increase its tobacco taxes and more effectively implement existing smoking laws such as forbidding smoking in government offices. "In Lebanon, we're in serious need of raising public awareness and of guiding and warning people," he said during a press conference at the ministry in Mathaf. In following a Western platform adopted by countries like the United States, Karam also suggested creating laws that would forbid all forms of tobacco advertising. He said that advertising was a major element contributing to the high rate of smokers. "It's because of publicity that young men think that they're more virile and more attractive when they smoke, and the same applies for women," he said. Habib Latiri, the World Health Organization's representative in Lebanon, said that research shows that a person's decision to smoke was influenced by tobacco industry promotion and advertising featuring prominent sports and entertainment figures. Such promotion aims to reinforce the industry's image of tobacco as glamorous, fun, healthy and sophisticated. "So what is it that the tobacco industry is trying to conceal? Latiri asked. "In fact, they want to suppress the truth that documents their manipulation of nicotine to levels that ensure that addiction occurs and is sustained, among other truths," he argued. He also said that the number of smokers worldwide was on the increase and hence the effects of smoking-induced illnesses were rapidly mounting. "The number of smokers today is in excess of 1.25 billion. That's more than one-third of all people above the age of 15," he said. Latiri said that if current trends continued, smoking rates would increase until the number of people who die due to tobacco-induced illnesses in the year 2020 would reach a staggering 10 million people. Explaining why some people stick to the habit even though they may be aware of its hazards, Latiri quoted WHO's regional director, Hussein Jazaeiry, who said that there was a difference between people knowing the threats of smoking and realizing just how dangerous it could be. "Very few smokers realize that by the time I'm through reading this note, smoking would have killed 60 people, and that by the end of the day, it would have killed another 10,000 people worldwide," he said. Latiri said that if smokers around the world decided to quit smoking, cancer cases would be cut by one-third and a number of heart and circulatory disorders, as well as other chronic diseases, would be prevented. "Smoking has had a worse effect on humanity than wars, disasters and plagues," he said. "Nicotine is the most active ingredient in tobacco: which is physiologically and psychologically addictive, in a similar way to heroine and cocaine. That means that tobacco companies are in the drug business," he said. Latiri invited all concerned parties, including the tobacco industry, to present their views during a two-day public hearing that the WHO is holding in Geneva on Oct. 12-13. Another disadvantage of smoking that was stressed at the press conference was the economic cost. According to Youssef Bassim, director of Lebanon's National Anti-Smoking Campaign, an American study indicated that the cost to the government of medical coverage for smoking related illnesses from every pack of cigarettes was $2.40 =96 far less than what the Lebanese government receive= s in taxes from tobacco products, because a pack of cigarettes here costs just LL2,000. What putting out that cigarette means The benefits of quitting smoking according to the National Anti-Smoking Campaign: -After 20 minutes: Blood pressure, pulse rate and hand and feet temperatures return to normal. - After eight hours: The rate of oxygen and carbon dioxide in the blood returns to normal. - After 24 hours: The threat of a heart attack begins to decrease. - After 48 hours: Smell and taste sensation begins to improve. -After two weeks: Circulation starts to improve, lung efficiency is enhanced by 30 percent and walking becomes an easier task. - After one to nine months: Coughing is reduced, it is easier to breathe and lungs regain the ability to clean themselves and reduce possible inflammation. - After one year: The probability of suffering a heart attack decreases by 50 percent. -After 10 years: Life expectancy becomes identical to that of a non-smoker. DS From rob@essential.org Wed, 14 Jun 2000 12:25:39 -0400 (EDT) Date: Wed, 14 Jun 2000 12:25:39 -0400 (EDT) From: Robert Weissman rob@essential.org Subject: [Intl-tobacco] Indian Govt rejects Philip Morris arm's local unit proposal (fwd) Govt rejects Philip Morris arm's local unit proposal The Economic Times, Thursday Jun 08 2000 Javed Sayed & Arshdeep Sehgal NEW DELHI : IN A major setback to tobacco major Philip Morris' India plans, the government has shot down the proposal of its Swiss subsidiary, FTR Holdings, to set up a wholly-owned arm in the country. The government has communicated to FTR that it has decided to ``close the case'' and not consider its proposal as the company has not submitted a declaration stating that it did not have any existing joint venture in the ``same or allied field'' as is required by official regulations prescribed by press note 18. Philip Morris holds a 35.9 per cent stake in the K K Modi-promoted cigarette company Godfrey Phillips India. FTR is, however, not taking the rejection lying low. In a stronglyworded letter, written by its legal representatives to the government, it has stated that the grounds cited for closing the case are factually incorrect and unjustified. It has asked the government to reopen the case and approve its application which it says is not for the manufacture of cigarettes but for agronomy and bulk processing of tobacco. The issue of allowing 100 per cent FDI in the tobacco sector has generated intense controversy over the last few years and the present government does not seem to be in favour of permitting wholly owned subsidiaries in this sector. FTR has stated that the government's charge that it has failed to submit the requested declaration is incorrect. It has pointed out that in its original proposal it had said that it had no equity investment in India and that a US based affiliate has a 35.9 per cent minority interest in Godfrey Phillips. FTR has further argued that the provisions of press note 18 do not apply to its proposal as its planned end activities are not similar to Godfrey Phillips. It has stated that its end product will be processed tobacco and not cigarettes. Therefore, the activities to be done by the new subsidiary will not overlap with any business conducted by Godfrey Phillips. Moreover, the technology it is bringing in is not licensed to anyone in India and distinct from the technology provided by a group company to Godfrey Phillips. Notwithstanding FTR's claims that its activities will not overlap with Godfrey Phillips, sources point out that one of the proposed activities listed in the company's application relate to providing marketing, advertising and distribution support to licensed manufacturers of cigarettes. Lobbying for its proposal, FTR has said India is the world's third largest tobacco growing country and the introduction of modern agronomy techniques and processes would enable Indian tobacco growers to improve the quality and yield of their crops. FTR had in December 1998 sought government permission to set up a wholly-owned subsidiary in the country for establishing an international standard tobacco processing plant using proprietary technology and for establishing a Research and Technical Service Centre to implement programmes with farmers to improve tobacco leaf production. The 100 per cent subsidiary also proposed to sell cut tobacco products in bulk to licensed manufacturers of cigarettes. From rob@essential.org Wed, 14 Jun 2000 12:34:59 -0400 (EDT) Date: Wed, 14 Jun 2000 12:34:59 -0400 (EDT) From: Robert Weissman rob@essential.org Subject: [Intl-tobacco] BBC: Tobacco Industry Under Attack in the EU Tobacco Industry Under Attack Source: BBC Online, Wednesday, 6/14/00 Wednesday, 14 June, 2000, 12:20 GMT 13:20 UK The tobacco industry is under fire from all sides with calls for tougher regulation in the UK and Europe. Euro-MPs have agreed proposals which could lead to vastly-enlarged health warnings, but have rejected calls for gruesome pictures of rotting teeth and lungs on packets. And MPs in the UK have urged the Department of Trade and Industry to investigate claims linking a tobacco firm to large-scale cigarette smuggling. The House of Commons Health Select Committee's hard-hitting report, released on Wednesday, says that criminal proceedings should be considered against British American Tobacco (BAT) should the allegations prove true. However, the European decision could prove more damaging to the industry in general, with warnings to cover at least 35% of the front of the pack. Currently the warnings cover 4% of the pack. In addition the use of terms such as "mild" and "low tar" would be banned. The Commons report also calls for packets to carry harder-hitting health warnings, including messages that smoking could cause impotence. It wants the creation of a new body to oversee advertising and labelling, and an end to the current voluntary agreements with the industry. =09=09=09Warnings are small on current packets The MPs said: "These messages should be harder hitting and more relevant to consumers than those currently used." The committee also called on the government to set tougher targets to stop people smoking - and to protect non-smokers from the effects of other people's smoke. Tobacco "bootlegging" costs the Treasury an estimated =A32.5bn a year in lost duty. It is alleged that some companies were "complicit" in organised tobacco smuggling by being prepared to supply large quantities of cigarettes to sources in continental Europe used by organised bootlegging operations. BAT has been accused of orchestrating, managing and controlling cigarette smuggling. It strenuously denies the claims. The committee said: "The allegations need to be looked at independently and we therefore call on the DTI to investigate them. If they prove to be substantiated, the case for criminal proceedings against BAT should be considered. "If they prove to be false, then those perpetrating them should publicly apologise." Trade and Industry Secretary Stephen Byers could use powers under the Companies Act to launch a probe of BAT's accounts and grill its staff under oath. Claims denied BAT's deputy chairman, former Conservative Chancellor of the Exchequer Kenneth Clarke, described the claims as "far-fetched", insisting that the company only sold to legitimate outlets, and paid all excise duties. Clive Bates, from anti-smoking group Ash, welcomed both decisions: "What we need now is a complete rethink and overhaul of the regulatory framework and a serious investigation into the rogue business practices related to smuggling." John Carlisle, from the Tobacco Manufacturer's Association, said: "Of course the health warnings should be on, but what we don't want is our own brand names being obliterated by health warnings - which, at the end of the day, aren't going to reduce cigarette consumption." The European proposals have infuriated tobacco industry bosses. Denise Claveloux, corporate affairs director for Philip Morris Europe, said: "What we're looking for is balance. I'm not sure we're achieving balance with the kinds of numbers that are being suggested." The European tobacco directive will still have to be approved by EU member governments. Other recommendations in the Commons Health Select Committee's report include: Regarding nicotine as comparable to drugs such as heroin and cocaine when anti-smoking strategies are producedEncouraging the use of proof of age cards to stop tobacco products being sold to children.Banning shopkeepers found guilty of selling cigarettes to under-16s from selling any tobacco productsIntroducing plain packaging for all tobacco products so all cigarette packs are the same colour and have brand names in a standard type faceMaking nicotine replacement therapies available on prescription for a total of six weeksMaking tobacco companies list the additives in tobacco on packets From rob@essential.org Wed, 14 Jun 2000 12:37:49 -0400 (EDT) Date: Wed, 14 Jun 2000 12:37:49 -0400 (EDT) From: Robert Weissman rob@essential.org Subject: [Intl-tobacco] Cooperation Between BAT and China's State-Owned Enterprises (fwd) A Milestone Achievement in Huang Gou Shu and BAT Cooperation TobaccoChina Online-05/30/2000 British American Tobacco and Guizhou Huang Guo Shu Tobacco Group celebrated their launch of a jointly developed new product-Huang Guo Shu Lights at a major national tobacco trade fair on May 19,2000. The launch marked an important milestone in British American Tobacco co-operation with STMA. Commenting at the launch ceremony attended by STMA Deputy Director General Jiang Chenkang and industry representatives from across the country. Russell Cameron, Area Director for BAT Asia Pacific North, said, "The official launch of Huang Guo Shu Group. Working together with dedicated management and staff of the Huang Guo Shu Group, we have been able to greatly enhance Huang Guo Shu brand's sales volume, improve machine efficiency and reduce material waste. And above all, beyond these tangible results, we have fostered true partnership and that is we value most highly." This brand new low tar product of superb quality is part of the ongoing program between China's Huang Guo Shu Group and British American Tobacco China. With the support and encouragement from STMA, the agreement for the Huang Guo Shu joint brand development project was signed at the end of 1996. BAT China team believed that HGS partners demonstrated high professional standards and true dedication the co-operation project, which was essential in making the project a success. Initial response to the new lights variant of Huang Guo Shu brand family has been very positive. The launch of the new lights product represents the emerging trend in Chinese tobacco industry and among consumers for lights cigarettes. Both co-operation partners are determined to make this new product a great success in its targeted markets. Looking toward future of enhanced partnership with Chinese tobacco industry, Mr. Cameron further commented, "the success of our co-operation shows the remarkable benefits of working together in partnership, of combining the international expertise, management and technology of British American Tobacco with the strength and local experience of the Chinese tobacco industry. I am very glad that the project so far has achieved such excellent results." Mr. Cameron further emphasized "as a responsible international company in China, we see supporting the progress of state owned tobacco enterprises as one of our important responsibilities. We at British American Tobacco will continue to give full devotion to our co-operation with Guizhou STMA and Huang Guo Shu Group and will work with our partners with unwavering commitment to ensure the continuing success of Huang Guo Shu brand." From rob@essential.org Thu, 15 Jun 2000 16:19:38 -0400 (EDT) Date: Thu, 15 Jun 2000 16:19:38 -0400 (EDT) From: Robert Weissman rob@essential.org Subject: [Intl-tobacco] One in Five Chinese Has Tried Smoking by 15 (fwd) One in Five Chinese Has Tried Smoking by 15 Source: Inside China, Thursday, 6/15/00 BEIJING, Jun 1, 2000 -- (Agence France Presse) More than one in five Chinese students has tried smoking cigarettes by the age of 15, often lured by tobacco companies that target their promotions at youth events, the China Daily reported Thursday. A survey of 12,000 students between the ages of 13 and 15 showed that 33 percent of the boys and 13 percent of the girls had tried smoking cigarettes at least once. The survey, part of a World Health Organization initiative to chart smoking habits of young people globally, also showed many had their first cigarette when they were only 10, suggesting that Chinese, among the world's biggest smokers, begin their habit early in life. The statistics indicate that the costs to society of smoking, already a major health problem in the world's most populous country could multiply in years to come. Previously released data show that 63 percent of all Chinese men are smokers, while an estimated 2,000 people die every day from smoking-related causes. To keep that problem from exploding in the future, the China Consumers Association urged tobacco manufacturers to stop sales promotions at sports and entertainment events, which usually attract a youthful audience. The paper also said health experts are demanding stricter control over the sale of cigarettes to people under the age of 18. Despite regulations banning the sale of tobacco to adolescents, up to 20 percent of the students participating in the survey said they were never turned away when buying cigarettes from street vendors. In another move to curb tobacco use, the Beijing municipal government recently said smoking will be banned on 130 major streets in the center of the Chinese capital, including a shopping area just east of Tiananmen Square, the China Daily said. ((c) 2000 Agence France Presse) From rob@essential.org Thu, 15 Jun 2000 23:03:03 -0400 (EDT) Date: Thu, 15 Jun 2000 23:03:03 -0400 (EDT) From: Robert Weissman rob@essential.org Subject: [Intl-tobacco] EU advertising ban in trouble, but UK Government must respond with a Tobacco Bill through Westminster (fwd) EU advertising ban in trouble, but UK Government must respond with a Tobacco Bill through Westminster Source: ASH London, Thursday, 6/15/00 The Advocate General of the European Court of Justice produced a legal opinion arguing that the 1998 EU Directive (98/43/EC) banning tobacco advertising and sponsorship has an inappropriate legal base under the EU Amsterdam Treaty. The Advocate General has recommended that the ECJ annuls the directive when it decides on complaints of the German Government and tobacco industry latter this year. Clive Bates, Director of ASH comments: "It's a setback and we are disappointed. The law governing the single market is not supposed to promote trade at any cost, but with a high level of health and consumer protection. We hope the European Court will recognise this proper interpretation of the Amsterdam Treaty Article 95." But ASH highlighted the likely response to an adverse decision in the ECJ. "Despite this setback, there is a very big and bright silver lining. Ministers will now come under intense pressure to introduce a bill through Westminster to meet Labour's 1997 manifesto commitment to ban tobacco advertising. If a Tobacco Bill is introduced in Westminster it will be enable the Government to close all the loopholes in the advertising ban, introduce some of the Health Select Committee recommendations and implement the tobacco product directive that went through the European Parliament yesterday". said Bates. "Paradoxically, this setback in Europe could give us much tighter legislation in Britain. This will be better in the long term though we will have yet more frustrating delay and further unnecessary harm to health while sound tobacco policies are blocked with legal manoeuvring" said Bates. Notes: Advocate General's report www.curia.eu.int +352 4303 3355 for press office The ECJ does not have to follow the Advocate general's opinion, but this is likely to be influential. The ECJ's decision is expected in the autumn. The Advocate General's opinion will influence the House of Lords which is deciding whether to allow the UK government to introduce the first phase of the advertising ban. The Government had proposed to do this on 10 December 1999, but was blocked by a legal challenge by the tobacco industry. This was overturned at the Court of Appeal, but the block on the ban was kept in place pending a decision by the House of Lords. The HoL heard the case in May and a decision is awaited, but it is likely that the Lords will keep the block in place until the ECJ makes its ruling. Loopholes in the advertising ban include brand-stretching, point of sale advertising, specialist shops, and the Internet. More details at: www.ash.org.uk/papers/dir9843ec.html Contact Clive Bates, ASH (020) 7739 5902 From rob@essential.org Thu, 15 Jun 2000 23:07:03 -0400 (EDT) Date: Thu, 15 Jun 2000 23:07:03 -0400 (EDT) From: Robert Weissman rob@essential.org Subject: [Intl-tobacco] Japan Tobacco Seeks Europe Acquisitions in Bid for No. 1 Spot (fwd) Japan Tobacco Seeks Europe Acquisitions in Bid for No. 1 Spot by Hanabusa Midori EUROPE; Source: Bloomberg News, Thursday, 6/15/00 Tokyo, June 16 (Bloomberg) -- Japan Tobacco Inc., which bought RJR Nabisco Holdings Corp.'s international operations last year, is seeking acquisitions or alliances in Europe to move closer to its goal of becoming the world's largest tobacco company, JT's new president said. The world's third-largest tobacco maker paid $7.8 billion for the RJR business, which gave it the right to sell RJR brands such as Camel, Winston and Salem outside the U.S. Now it's looking at Europe for assets ranging from factories to license agreements to acquisitions, said Katsuhiko Honda, who will become JT's president next month. ``The tobacco industry has been undergoing a global realignment of a once-in-a-century magnitude,'' said the 58-year- old Honda, who smokes more than 50 of his company's Cherry brand cigarettes a day. ``About 80 percent of that is now over, leaving Europe as the last remaining market.'' At the same time, Japan Tobacco is stepping up efforts to change laws in Japan that require two-thirds of its shares to be owned by the government. That restriction limits the company's ability to finance acquisitions and otherwise grow, Honda said. Global Realignment Japan Tobacco has annual cash flow of roughly 100 billion yen $939 million), which it hopes to double over the next five years. While it doesn't have any specific acquisition targets at the moment, it's prepared to move swiftly on any opportunities that may arise, Honda said. Japan Tobacco completed its purchase of RJR International last September, the biggest foreign acquisition by a Japanese company. RJR added production sites in 70 countries for Japan Tobacco, which until then had made cigarettes only in Japan. The acquisition also more than tripled the Japanese company's overseas sales to 378.7 billion yen ($3.6 billion) in the year ended March 31, from 117.1 billion yen a year ago. The transaction marked the former state monopoly's first step in building a global empire and moved it closer to No. 1 Philip Morris Cos. of the U.S. and British American Tobacco Plc of the U.K. As competition intensifies in maturing markets, and as some holding companies reduce their stakes in tobacco businesses amid growing litigation, the industry is in the final rounds of a global realignment, analysts said. In Europe, top Spanish tobacco maker Tabacalera SA acquired Seita SA, the No. 1 French tobacco company, forming Altadis SA, Europe's third-largest tobacco company, in December. South Korea, China Yesterday, Gallaher Group Plc, the U.K. maker of Silk Cut and Mayfair brand cigarettes, announced its purchase of the Russian tobacco business of Vector Group Ltd. for $390.5 million to expand outside the declining U.K. market. Apart from Europe, there are opportunities in South Korea, where the government may sell as much as 20 percent of its stake in Korea Tobacco & Ginseng Corp, Japan Tobacco's Honda said. China, the world's largest tobacco consumer with 320 million smokers, is another market that promises future growth. However, that will have to wait until China joins the World Trade Organization and opens its market to foreign competition, analysts said. ``If JT is interested in expanding further into Europe now, it's probably because they are focused on profitability,'' said Tsutomu Matsuno, an analyst at Daiwa Institute of Research. In underdeveloped markets like China and Russia, where Japan Tobacco already has footholds, it's the low-priced local brands that are selling well, not the international brand cigarettes with higher profit margins, he said. Legal Obstacle In addition to making acquisitions, Japan Tobacco is expected to sell or liquidate some overseas operations as it weeds out overlaps created when it merged Japan Tobacco International and the RJR business. The company plans to quit a Spanish joint venture that came with the RJR acquisition, Honda said. Back home, Honda has to grapple with a different task, of persuading the Japanese government to sell its two-thirds stake, which thwarts Japan Tobacco's efforts to operate as an ``ordinary'' company, he said. ``The government's two-thirds stake prevents us from issuing convertible bonds, providing stock options to employees or offering stock swaps,'' he said. The timing of an additional sale of the government's stake has surfaced on the political agenda from time to time. However, in the 15 years since Japan Tobacco's first public stock sale, the government has opted to retain its stake and use price increases on cigarettes to boost tax revenue. The wants parliament to revise law that requires the government to maintain a ``temporary'' two-thirds stake and a permanent stake of at least 50 percent stake, Honda said. Japan Tobacco wants a gradual reduction in the government's stake to nothing. Changing Times The ``two-thirds'' clause was passed as an assurance to tobacco farmers and small retailers who feared losing government protection when the initial public offering took place in 1985. However, times have changed, and now ``most farmers understand that you need to be competitive to survive in times of liberalization,'' Honda said. Honda's ascension to the top post is itself a sign of change. A 35-year Japan Tobacco veteran who was lured to the company by the challenge of working in a business that spanned the spectrum from agriculture to manufacturing to retailing , Honda will be the first company president who didn't come from government bureaucracy. Japan Tobacco shares rose 42,000 yen, or 4.4 percent, to 36,000 yen in midmorning trading. The shares are up 9.0 percent for the year, compared with a 12 percent fall in the TOPIX index of all shares listed on the first section of the Tokyo Stock Exchange From rob@essential.org Thu, 15 Jun 2000 23:14:17 -0400 (EDT) Date: Thu, 15 Jun 2000 23:14:17 -0400 (EDT) From: Robert Weissman rob@essential.org Subject: [Intl-tobacco] Pakistan: Paying Lip Service to Anti-Tobacco Pledge (fwd) Title: HEALTH-PAKISTAN: Paying Lip Service to Anti-Tobacco Pledge By Nadeem Iqbal ISLAMABAD, Jun 1 (IPS) - Accused by health activists of inducing children to smoke, Pakistan's state-run television is seeking approval from the highest level for continuing with cigarette advertising that it was ordered to stop six years ago. Indeed, the government's Pakistan Television Corporation (PTV), which never heeded a 1994 ruling by the Federal Ombudsman banning it from carrying tobacco spots, may actually have succeeded in this. Officials in the federal Law Ministry who did not want to be identified told IPS that President Rafiq Tarar overturned the ombudsman's ruling earlier this year. The ombudsman, which listens to citizen complaints against government agencies, had banned tobacco advertising on PTV, agreeing with a public interest petition that this could encourage children to smoke. According to the Pakistan Pediatric Association, everyday more than 1,000 children between the age of six and 16 years, pick up the smoking habit. It is estimated that more than a third of men and some four percent of women in the country are smokers. PTV, which earns a third of its revenue from tobacco advertising, had appealed to then President Farooq Leghari. Appeals against ombudsman rulings are sent by the president to the Law Ministry for its advice. A PTV spokesman told IPS that it was in the television channel's ''commercial interest'' to accept cigarette advertising. Anti- smoking campaigners too could buy time on PTV, he added. Pakistan's anti-smoking campaigners argue that PTV may be a business company, but it is owned by the government which has a responsibility to protect the health of the people. Health activists remind the government that Pakistan is also a signatory to the World Health Assembly's resolutions calling on member states to eliminate all direct and indirect advertising, promotion and sponsorship of tobacco. A Health Ministry official said that every year, the government spends some 20,000 U.S. dollars on anti-smoking messages on PTV. But cigarette companies spend millions of dollars annually on advertising. PTV officials told IPS said that the channel has, in the past, buckled under pressure from the powerful tobacco industry. They recalled how an anti-tobacco spot prepared by PTV in the early 1990s was taken off air under pressure from cigarette companies. Those campaigning to take cigarette advertising off television got a shot in the arm from a message on World Tobacco Day Wednesday by one of the country's best-known sports stars. In a statement, former national cricket team captain-turned- politician Imran Khan urged sportspersons not to accept tobacco sponsorships. ''I have witnessed from close, the power and persuasiveness of tobacco promotion,'' said Khan, who called for ''banning all kinds of advertisements, promotion and sports sponsorships'' by tobacco companies. But anti-tobacco campaigners are up against the immense clout of cigarette companies that spend millions of dollar annually to promote smoking in Pakistan. According to the prestigious advertising magazine 'Age', the Lakson Tobacco Company spent an astounding 6.4 million dollars on publicity during 1998, making it the third largest business advertiser in Pakistan that year. Anti-tobacco campaigners accuse the government of being swayed by the tobacco industry. According to independent estimates, the Pakistani government collected some 311 million dollars as tobacco tax in 1990, slightly more than a tenth of the government's total revenue earnings that year. Every year, tobacco companies sell 50 billion sticks in the country. This does not include some 10 billion cigarettes that are either spurious brands or smuggled into Pakistan. Cigarette production went up from 29.9 billion sticks a decade ago, to 48.21 billion cigarettes in 1997-98. The tobacco industry argues that it not only swells the government's coffers, but is a big employer. An estimated 80,000 people are engaged in tobacco production and marketing. Tobacco farms occupy 0.2 percent of the country's irrigated land. In 1995-96, the tobacco crop was grown on some 46,100 hectares with a total production of 79,900 tonnes. The government's concern about the health risks of tobacco use has so far produced only a barely legible mandatory warning on cigarette packs that ''smoking is injurious to health'', say the critics. They are also unhappy with the fact that the higher law courts have tended to rule in favour of the tobacco industry. In early 1997, the Lahore High Court, which is the country's second highest, had put some curbs on the tobacco industry advertising on radio and television. But six months later, the court's ruling, on a petition of the Pakistan Chest Foundation and Anti-Tuberculosis Association, was overturned by a larger bench of the same court on appeal by tobacco companies. In 1994, the country's top court had dismissed an appeal to ban cigarette advertising that was made on the ground of violation of human rights. (END/IPS/ap-he/ni/mu/00) From rob@essential.org Fri, 16 Jun 2000 00:23:45 -0400 (EDT) Date: Fri, 16 Jun 2000 00:23:45 -0400 (EDT) From: Robert Weissman rob@essential.org Subject: [Intl-tobacco] Murky future for China's tobacco industry (fwd) FEATURE: Murky future for China's tobacco industry by Geoffrey Murray / Source: Kyodo News Service/Associated Press Publicatio= n=20 date: 2000-06-02 Source: Brown & Williamson Industry Watch, Saturday, 6/3/00 BEIJING, June 3 (Kyodo) -- By: Geoffrey Murray Despite contributing 10% of the country's tax revenue and enjoying a long-standing domestic monopoly, China's tobacco industry faces a murky future after China enters the World Trade Organization (WTO). And this is in addition to existing problems of fighting the inroads into revenues achieved by fake brands and smuggled cigarettes. According to the Economic Research Institute of the State Tobacco Monopoly Bureau, China's 310 million regular smokers account for 25% of the global total. A bureau official reels off a list of impressive figures. From 1995 to last year, China purchased an annual average of 2.2 million tons of tobacco to produce 33.4 million cases of cigarettes, each case containing 50,000 cigarettes. On average, China's annual production of leaf tobacco makes up some 35% of the global total while cigarette production and sales account for 32%. In 1999, the tobacco industry contributed 98.9 billion yuan ($11.9 billion) in industrial and commercial tax, 10% of state revenue, and has been the state's top revenue generator for 13 consecutive years. The industry is massive, and it has fostered a number of large enterprises such as the Yuxi, Shanghai and Changsha cigarette factories whose technologies and equipment are world-class. So, one would imagine, all is well. Not so, according to industry analysts, who firstly point out China's long-standing restrictions on tobacco imports and exports ensure the country currently has little presence overseas. During the 1995-1999 period, for example, total imports and exports of leaf tobacco averaged only about 4.5% of domestic purchases, and total cigarette imports and exports made up 0.8% of domestic output. China's leaf tobacco exports account for just 3.5% of global exports and cigarettes for only 1.8%. Thus, development of China's tobacco industry has clearly depended on the domestic market. This does not accord with its position as the world's No. 1 tobacco producer and makes it difficult to integrate that industry into the world economy in line with current emphasis on globalization. China's WTO entry will mean all domestic tobacco products now under the national monopoly will face increasing foreign competition they are ill-equipped to meet. Last year, the government imposed a 40% import tariff and a 64% consolidated tax, which increased prices of imported leaf tobacco. This ensured the price of the domestic product was only one-third that of imports, ensuring it can be highly competitive in price terms. Much of that advantage, however, will be lost when the tariff is lowered to 17% in 2004, as the government has agreed in the negotiations to achieve WTO entry. China began to slash import duties on cigarettes in 1997 from a high of 150%. In 1999, the rate fell to 36%. Meanwhile, China's consolidated tax on imported cigarettes came to 218% in 1999, down 26 percentage points from 1997. As the government has committed itself to a large-margin cut of the average tariff on all imported commodities, a high tariff on cigarettes violates that promise. If the rate drops to the average for all imports -- 15% in 2000 -- as is widely expected, one packet of imported cigarette that now sells for 11 yuan will be 2-3 yuan cheaper after the tariff reduction, making them much more competitive on the domestic market. Most of the adverse effect of cigarette imports on the domestic market after China's WTO entry will not come from tariff reductions, but from the relaxation or even abolition of nontariff barriers. Permitted a long transition period, China's tobacco industry must gradually relax and finally abolish the quota and license controls that are now in force. Inevitably, a large influx of foreign cigarettes will result. Since there is a huge potential demand for mixed cigarettes, because foreign tobacco enterprises are strong enough to exploit the market and since foreign cigarettes are higher in quality and possibly somewhat less harmful to smokers' health, it is likely that after China joins the WTO, imported cigarettes will attract a large portion of Chinese smokers. Some analysts believe domestic cigarettes could lose 10% to 20% of their market share within five years, while net imports of leaf tobacco will also grow rapidly. Imported leaf tobacco, especially that of high quality, will account for some 10% of domestic demand. As if these problems were not enough, the mainland also seems to be losing the battle against counterfeit cigarettes, which are making deep inroads into cherished tax revenues. Seizures by the State Tobacco Monopoly (STM) are soaring, while the number of brands being copied has increased from 30 in 1997 to more than 100 last year. There are, for example, 35 different kinds of counterfeit Marlboro, China's favorite foreign brand. The abundance of fakes, along with weakening demand for the domestic product, saw sales from state plants -- the only legal producers -- fall 8.6% last year. In recent years, the STM has spent 1.57 billion yuan on fighting counterfeiters, seizing more than 5,000 cigarette-making machines, but its efforts are failing. Copyright 2000 by Kyodo News Service All Rights Reserved The information contained in the KNI news report may not be published,=20 broadcast, rewritten or otherwise distributed without the prior written=20 authority of The Associated Press as agent for Kyodo News Service. Publication date: 2000-06-02 =A9 2000, YellowBrix, Inc. From rob@essential.org Sat, 17 Jun 2000 13:57:10 -0400 (EDT) Date: Sat, 17 Jun 2000 13:57:10 -0400 (EDT) From: Robert Weissman rob@essential.org Subject: [Intl-tobacco] Spanish smokers launch claim against Altadis (fwd) Note date: Spanish smokers launch claim against Altadis Source: Reuters, Wednesday, 5/31/00 MADRID, May 31 (Reuters) - A group of more than 4,000 cancer sufferers launched Spain's first class action lawsuit against the country's tobacco industry on Wednesday, a lawyer involved in the suit said. The claim was directed at Altadis -- a recently merged company combining former Spanish tobacco monopoly Tabalacera and France's Seita -- its distribution unit Logista and smaller Altadis unit CITA, said Jose Angel Manoso. He is one of four lawyers representing 4,339 smokers and ex-smokers who have been treated for cancer of the larynx. The lawyers presented the case on behalf of 16 associations of larynx cancer sufferers in 16 different cities, Manoso told Reuters. The claimants were seeking recognition from the companies that tobacco causes cancer as well as payment of medical costs for physical and psychological injury, he said. Manoso did not provide estimates for how much the compensation might be worth across Spain but in Barcelona, for example, a local association representing sufferers was seeking 400 million pesetas ($2.23 million) to buy an office plus 50 million pesetas a year to cover medical costs. Stock market analysts have said the case was unlikely to succeed. Class actions of this type are unusual in Spain and compensation cases tend to drag on for many years. Even so, the publicity could be damaging for the company, they say. Shares in Altadis, the Spanish-French company formed last year by the merger of Tabacalera and Seita, dropped two percent on Wednesday to 15.68 euros. Until now there have been only a handful of unsuccessful individual claims against tobacco companies in Spain. A spokesman for Altadis said he could not comment on the case. "We are waiting to see details of the claim before we can say anything," he said. ($1=179.10 Peseta) From rob@essential.org Sun, 18 Jun 2000 09:42:21 -0400 (EDT) Date: Sun, 18 Jun 2000 09:42:21 -0400 (EDT) From: Robert Weissman rob@essential.org Subject: [Intl-tobacco] Argentina and tobacco firms in anti-smuggling move (fwd) Argentina and tobacco firms in anti-smuggling move Source: Reuters, Friday, 6/16/00 Friday June 16, 6:35 pm Eastern Time BUENOS AIRES, June 16 (Reuters) - Argentina reached an agreement with the country's tobacco companies to suspend exports to bordering nations in an effort to curb cigarette smuggling, the Economy Minister said on Friday. ``We have an agreement with the companies so that they don't export to bordering countries,'' Economy Minister Jose Luis Machinea said at a press conference. He said the move hoped to stop cigarettes exported abroad be illegally smuggled back into the country. According to Machinea, the move could increase tax collection by $200 million. Machinea did not give any more details. Argentina's tobacco market is largely controlled by units of British American Tobacco (quote from Yahoo! UK & Ireland: BATS.L) and Philip Morris (NYSE:MO - news). The Argentine government receives about $2 billion in taxes from tobacco a year but industry executive have said the government also loses about $230 million a year due to cigarette smuggling. From rob@essential.org Sun, 18 Jun 2000 09:42:43 -0400 (EDT) Date: Sun, 18 Jun 2000 09:42:43 -0400 (EDT) From: Robert Weissman rob@essential.org Subject: [Intl-tobacco] Venezuela's Suit Over Tobacco Damages Sent to Miami Court (fwd) Venezuela's Suit Over Tobacco Damages Sent to Miami Court by William McQuillen Source: Bloomberg News, Friday, 6/16/00 Miami, June 16 (Bloomberg) -- Philip Morris Cos. and other U.S. tobacco companies will face the Venezuelan government's lawsuit over smoking related health care costs in a Miami state courthouse that has been friendly to plaintiffs. A federal judge in Washington decided the Miami-Dade Circuit Court where the suit was initially filed in January 1999 is the proper venue after all. The case had been moved to federal court in Miami, then to the federal court in Washington, before it was returned to the state court. ``Nothing about the allegations in these lawsuits implicates interests that are `uniquely federal,''' U.S. District Judge Paul Friedman wrote. Friedman also wrote the court should conduct further discovery before deciding whether to remand a similar suit filed by Bolivia, to the state court. The suit, aimed at recovering public health-care costs, sought billions of dollars in damages. Venezuela claimed it suffered economically from a decreased labor force, a lower gross national product and lost taxes. Currently, the Miami court to which the case has been returned is the scene of a class-action lawsuit against cigarette makers over smoking-related damages -- the first of its kind to go to trial. A jury already has found the companies to be responsible for the death and disease of as many as 500,000 Florida smokers and has awarded $12.7 million to three named plaintiffs. The jurors will soon deliberate on punitive damages, which some analysts have estimated could exceed $100 billion. Steven Marks, an attorney for Venezuela, said he was excited about a possible trial date ``since Big Tobacco has repeatedly refused any attempt at a reasonable resolution.'' Representatives from Philip Morris couldn't immediately be reached for comment. Philip Morris shares fell 2 1/16 to 25 1/2 in trading today; R.J. Reynolds fell 1 to 30 7/16; Loews fell 2 1/2 to 62; British American Tobacco's American depositary receipts fell 5/8 to 12; and Vector rose 1/16 to 17 3/4 From rob@essential.org Sun, 18 Jun 2000 22:16:59 -0400 (EDT) Date: Sun, 18 Jun 2000 22:16:59 -0400 (EDT) From: Robert Weissman rob@essential.org Subject: [Intl-tobacco] UK: Select Committee on Health Second Report: IV EXPANDING INTO NEW MARKETS (fwd) Select Committee on Health Second Report: IV EXPANDING INTO NEW MARKETS Source: House of Commons, Wednesday, 6/14/00 201. The main focus of the Committee's inquiry has been the health effects of smoking on consumers in the United Kingdom who buy their cigarettes through the legal channels provided by tobacco companies and legitimate retailers. However, during the course of the inquiry evidence was also taken concerning the alleged activities of the tobacco companies in seeking to expand their markets through two methods: by manipulating the market in smuggled tobacco goods, both in the United Kingdom and internationally; and by increasing cigarette consumption in the developing world. Both issues are complex and require further investigation. They raise issues outside the remit of this Committee; however, both activities lead to increased cigarette consumption, especially amongst groups of consumers who otherwise would not have access to cigarettes. The increased incidence of death and illness, domestically and internationally, caused by such consumption is of direct interest to us and is why we proceed to outline the evidence presented to us and our concerns. Smuggling 202. BAT told us that 25 per cent or more of the tobacco products consumed in this country are smuggled into it.[352] Imperial's evidence stated that "Cross-border trading now comprises at least 80 per cent of handrolling tobaccos smoked in the UK, and at least 20 per cent of cigarettes".[353] As well as the millions of pounds worth of revenue lost to the Government, we were told that the tobacco companies were damaged by this trade, and that they thought it was caused by differential duty rates, with the United Kingdom having higher rates than France and other continental countries. Mr Wilson, of Gallaher told us: "I deplore smuggling and we will do whatever we can in order to bring it to an end. It is not in our interests; it is not in the interests of government; it is certainly not in the interests of the Department of Health. It is making more and more low price cigarettes available in this country. It provides no control over the access of children to cigarettes and it is a direct consequence of the enormous disparity of duty rates".[354] This approach was echoed by the representatives of Philip Morris, BAT, Imperial and R J Reynolds giving evidence alongside Mr Wilson.[355] Andorra 203. It had been claimed that one route used to smuggle cigarettes into the United Kingdom was through Andorra. In March 1999, a Sunday Times article alleged that "Andorra.... is the hub of Europe's burgeoning smuggling trade ... with no tax, no VAT and almost no excise it is...a smuggler's paradise. Between 1993 and 1997, the number of British-made cigarettes sent to Andorra ... increased 117-fold. The tiny country imported 3.1 billion cigarettes in 1997 - equivalent to every Andorran smoking seven packets a day ... [Smugglers] operate by setting up front companies in the principality or in the neighbouring countries that buy cigarettes from British manufacturers, which are exempt from duty because of their destination. They are then legally exported from Britain, stored in warehouses in Andorra and then smuggled back to the United Kingdom".[356] HM Customs and Excise subsequently told the Home Affairs Committee that in 1996 cigarette exports from the United Kingdom to Andorra had risen very rapidly, but by late 1997 they had "tailed off just as quickly", following work undertaken with the Andorran and Spanish authorities by the European Commission's anti-fraud organization.[357] 204. When it was put to Mr Wilson of Gallaher that his company's annual report had noted the increase in sales to Andorra and that he must have been aware that illegal smuggling had been occurring, he said that "of course" he was aware of that, but that he was "delighted when the authorities.... [stopped] it, but they stopped the smuggling, not us, as we were not doing anything illegal. I was very unhappy about it. I deplore smuggling." He also said that his company had helped the authorities' investigations.[358] The Amber Leaf Briefing 205. Mr Wilson's robust stance against smuggling is to be welcomed, but it is undermined by the fact that the advertising agency employed on Gallaher's behalf was basing part of its strategy for one product - Amber Leaf hand rolling tobacco - on sales to bootleggers. The "Amber Leaf Briefing" prepared by M&C Saatchi and obtained by the Committee discusses "Trial through bootleggers" and describes "Adoption by bootleggers" as a key issue.[359] In oral evidence Mr Moray MacLennan of M&C Saatchi, told us that "Everyone is concerned about smuggling because it is the chief reason for more young smoking in the last two years".[360] He went on to say that the briefing document suggested that "what is being forced to happen in certain instances, because of the lack of control of smuggling in this country ... is that the tobacco companies, yes, are targeting legal distribution methods, some of which are on the continent. They sell it through legal distribution. Because of the lack of enforcement here in terms of smuggling, a lot of that finds its way back into this country through illegal distribution ... I think that really the onus is on the Government not the tobacco manufacturers".[361] 206. Mr Wilson told us that "The tragedy and the extraordinary thing about this whole situation is that we are here faced in the United Kingdom with the fact that four out of every five packets of hand rolling tobacco that are consumed in this country are sourced from outside this country. That is 80 per cent of the market sourced from outside the United Kingdom, predominantly Belgium and Holland. This is a direct consequence of the enormously high duty attaching to hand rolling tobacco here compared with Belgium. I think it is five times higher in this country than it is in Belgium. As a consequence, a pouch of hand rolling tobacco in this country which costs close to eight pounds will be available in Belgium for two pounds. That has led to a situation where 80 per cent of the market is sourced from outside this country and it leads to the ridiculous situation where the only way that you can develop distribution for a brand in this country is by making it available in Belgium".[362] 207. It seems that although Mr Wilson thinks it is a "tragedy" that hand rolling tobacco is smuggled into the country, his company works on the basis that it is prepared to sell to markets on the continent, aware of the knowledge that the goods will be smuggled back into this country; indeed not only are they aware, but their advertisers appear to deliberately frame their strategy to appeal to the criminals undertaking the smuggling. Gallaher's stance that they deplore smuggling appears to be contradicted by their advertising which seems to want to court those doing the smuggling. Gallaher noted in its evidence to us that smuggled tobacco gives children access to tobacco. If they genuinely believe that this and the other problems associated with smuggled tobacco are a "tragedy", they should make sure that all their business practices and those of their advertisers work against the illegal trade rather than encourage it. Allegations regarding BAT and smuggling 208. During our inquiry serious allegations concerning BAT's involvement in international smuggling operations were made in the Guardian newspaper. While it was not claimed that BAT carried out the smuggling itself, it stated that "British American Tobacco condoned tax evasion and exploited the smuggling of billions of cigarettes in a global effort to boost sales and lure generations of new smokers".[363] 209. The article was based on research undertaken by the International Consortium of Investigative Journalists, based in Washington DC. This research focused on the papers made public as a result of BAT's legal settlement of 1998, and which are now kept at BAT's depository in Guildford, which the Committee visited. The papers concerning smuggling are mainly from the early 1990s. The documents end in 1995. An additional memorandum received from ASH outlined the background to the smuggling claims, and gave examples of the original BAT documents on which the claims were founded. It stated that, against a "pitched battle" with Philip Morris for control of the worldwide cigarette market, evidence in the depository suggested that "manipulation and control of cigarette smuggling is an integral part of company business and expansion. The documents provide compelling evidence to suggest illegal trade is co-ordinated and promoted at the very highest level of the company".[364] 210. ASH's evidence further stated that a third of all internationally traded cigarettes (335 billion in 1996) are smuggled, thereby evading taxes and lowering the black market price. This stimulated demand, with knock-on health effects. They alleged that "cigarettes legitimately move through the 'in-transit' regime without bearing tax until they reach the final end market at which point tax is payable. Most smuggling involves the cigarettes moving out of the untaxed distribution chain and entering the final end market illegally - often through a third country. This can happen by legal export followed by illegal re-import or cigarettes in transit may be diverted from the legal to the illegal distribution chain".[365] 211. ASH claimed that while BAT's internal documents did not refer directly to smuggled goods, the following terms were used as euphemisms: DNP (Duty Not Paid); Transit; or GT (General Trade).[366] A background piece in the Guardian, also published on 31 January, quoted Lee Thompson, an RJR senior sales manager who pleaded guilty in 1999 to money-laundering charges, as saying that DNP is "an industry-wide term... It's essentially a long-winded term used by senior folks when they're talking around the topic of smuggling." Thompson was quoted as saying that "re-entry", "parallel market" and "transit" were similar euphemisms.[367] ASH's evidence quoted a number of BAT documents which it claimed showed the ways in which these euphemisms were used, for example: - "In 1993, it is estimated that nearly 6% of the total world cigarette sales of 5.4 trillion were DNP sales ... A key issue for BAT is to ensure that the Group's system-wide objectives and performance are given the necessary priority through the active and effective management of such business".[368] - "We will be consulting here on the ethical side of whether we should encourage or ignore the DNP segment. You know my view is that it is part of your market and to have it exploited by others is just not acceptable".[369] - "I am advised by Souza Cruz [BAT subsidiary] that the BAT Industries Chairman has endorsed the approach that the Brazilian operating Group increase its share of the Argentinian market via DNP".[370] The claims that the terms 'DNP' 'Transit' and 'GT' were euphemisms for smuggling were vigorously denied by BAT (see below, paragraph 219). 212. ASH also claimed that BAT engaged in 'umbrella operations' whereby a small trade in legitimate, duty paid exports could justify a large-scale marketing campaign to bolster sales in the much larger DNP sector. They claimed that the following extract provided evidence of such operations: - "It is recommended that BAT operate under "umbrella" operations. A small volume of Duty Paid exports would permit advertising and merchandising support in order to establish the brands for the medium/long term with the market being supplied initially primarily through the DNP channel".[371] The author of the three documents quoted above, Keith Dunt, was at that time BAT's regional director for Latin America. He now sits on BAT's board as finance director. 213. ASH claimed that the evidence demonstrated that BAT did not merely acknowledge the existence of smuggled cigarettes, but that it deliberately stimulated the market, not just by 'umbrella operations', but by: - treating smuggling routes as near-normal distribution channels; - establishing relations with intermediaries that directly or indirectly supplied smugglers; - controlling the price and supply of smuggled cigarettes; - placing warehouses and marketing personnel near borders; - organising complicated movements of goods to create difficulties in tracing the products; - targeting routes with weak or corrupt official controls.[372] 214. Some of the most serious allegations made concerned Colombia. The Guardian reported that "BAT records show that billions of cigarettes were shipped from BAT subsidiaries in the US, Venezuela and Brazil to distributors in the free trade zone of Aruba, an island in the Caribbean just off the coast of Colombia".[373] It was claimed that they were then moved to Maicao or to Turbo - two special customs zones - and from there that they were smuggled into the country's black market. Two BAT subsidiaries supply Colombia - Souza Cruz and Cigarrera Bigott. A fax from Keith Dunt to Laux, of Cigarerra Bigott in April 1992 stated that "I do need to clearly understand the answers to the following: - can we pursue the approach noted in your last strategy submission, ie continuing with DP and DNP in parallel and be seen as a clean and ethical company at the same time - This "ethical correctness" would be achieved via letters to Government...etc - can we really do this and continue DNP... A final point I must stress to you is that it is a key, key objective for you to achieve your company plan quoted total SOM [Share of Market] of 70.3%. This is an absolute focus for you."[374] 215. The Guardian stated that "in 1993 corporate records show that BAT subsidiaries imported a total of 3.98bn cigarettes into Colombia. However, 3.89bn of those cigarettes entered as duty not paid goods." However, it further stated that "since the mid 1990s legal imports of cigarettes have risen exponentially in Colombia. Official figures show that while only $4.6m in cigarette imports were registered in 1994, that number had leapt to $39.9m by November 1999. In August 1999 BAT signed a letter of commitment with the customs and tax department promising "....that if they have any evidence that distributors to whom they sell their products are, in turn, selling to smugglers, they will stop selling to those distributors." It also stated that "21 state governors and the mayor of Bogota have engaged American lawyers to prepare lawsuits in the US against British American Tobacco and Phillip Morris". It quoted Jose Manuel Arias Carrizosa, executive director of the federation of Colombian governors as saying that they were seeking "an indemnification for damages caused through contraband of cigarettes into the country ... We think there are two markets, one legitimate that pays its duties and taxes, and the other much bigger, illegal. That cannot be happening without the knowledge of the producing companies".[375] 216. The Guardian published a response to the allegations by Kenneth Clarke MP, BAT's deputy chairman, on 3 February. It stated that "BAT is a good corporate citizen which maintains high ethical standards. We reject allegations that we have 'condoned tax evasion and exploited smuggling'. We seek to work with governments around the world to find solutions to the problem of smuggling ... It is caused by high tax levels, different levels of tax on two sides of a border and the imposition of notional trade barriers to legal imports." It went on to state that "where governments are not prepared to address the underlying causes of the problem, businesses such as ours who are engaged in international trade are faced with a dilemma. If the demand for our brands is not met, consumers will either switch to our competitors' brands or there will be the kind of dramatic growth in counterfeit products that we have recently seen in our Asian markets. Where any government is unwilling to act or their efforts are unsuccessful, we act, completely within the law, on the basis that our brands will be available alongside those of our competitors in the smuggled as well as the legitimate market". The article concluded by stating that "When governments and health campaigners are prepared to accept policies to reduce and control smuggling, we will always welcome such policies and co-operate with them".[376] 217. We thought that the allegations made against BAT were serious enough to merit further questioning of the company, and so we invited Mr Broughton and Mr Clarke to give evidence on its behalf, alongside ASH and Mr Duncan Campbell, one of the authors of the Guardian articles. Dismissing the general allegations about BAT's involvement with smuggling, Mr Broughton said that the documents cited demonstrated that BAT was aware that smuggling went on, but that it was not involved with that smuggling in the way suggested by ASH and Mr Campbell. He told the Committee that "an assumption seems to be being made by Mr Campbell that knowledge of what happens in a market is a criminal offence. I would say to you that we do understand pretty well what happens in various markets ... You would expect that of a consumer goods company like British American Tobacco. So knowing what happens in a market....and knowing [that there are] some smuggled goods in there is hardly a surprise ... Knowledge of what is happening in a market is not, as far as I have understood, a criminal offence".[377] Mr Broughton also made the point that in some markets the distribution chain was extremely complex, the inference being that it was difficult to trace the movement of goods from beginning to end of that chain.[378] 218. Mr Kenneth Clarke MP, the Deputy Chairman of British American Tobacco, supported Mr Broughton's assertion that, while it was widely known that smuggling occurred, no evidence had been produced which proved that BAT was the "originator, the organiser, [or] a participant in that smuggling". Indeed, he went on to say that BAT was "the victim of smuggling ... We seek to minimise smuggling".[379] Mr Clarke later said that "I satisfied myself that [BAT] is a company of integrity. It is an extremely good corporate citizen".[380] 219. Relating to terminology , Mr Broughton denied that terms such as 'DNP', 'general trade', or 'transit' were "specifically euphemisms for 'smuggled'. That is not to say that there are not times where DNP would be the same as smuggled in one market".[381] Mr Broughton said that to look at individual documents, or to quote small parts of individual documents was to risk taking them out of context.[382] Mr Clarke went further: he told the Committee that "any case which depends on taking sentences out of eight million pages ... is absurd".[383] 220. Given the severity of the charges made against them, and their robustness in denying them, the Committee asked whether BAT were intending to take legal action against the Guardian. Mr Clarke said that "we did not contemplate legal action, there has been no question of legal action"[384] and that to bring such action would give the investigative journalists involved credibility.[385] 221. Mr Bates of ASH said that the concerns raised merited an investigation into BAT's conduct by the Department of Trade and Industry (DTI). Asked whether he would welcome such an inquiry, Mr Broughton said he would not, but that the appropriate thing would be to have BAT's own audit committee, chaired by Mr Rupert Pennant-Rea, a non-executive director, to look into the allegations and to "review all of our current trading practices and ensure they are all entirely legal and that we are entirely comfortable with those practices and that there are no conspiracies going on between people within the company, the company, our distributors and other people".[386] Mr Bates subsequently called this an "important and welcome development".[387] 222. The allegations made against BAT in regard to smuggling are extremely serious and merit careful investigation. This Committee is not the appropriate body to conduct such investigations and would be going beyond its remit were it to do so. We welcome the fact that BAT's audit committee will look into this matter and we will be calling for its findings when they are available. But this is not enough. The allegations need to be looked at independently and we therefore call on the DTI to investigate them. If they prove to be substantiated, the case for criminal proceedings against BAT should be considered; if they prove to be false, then those perpetrating them should publicly apologise to BAT for what will have amounted to a malicious slur on the company's name. Expanding markets in developing countries 223. The Government's tobacco White Paper notes that there are over a billion smokers across the world, with nearly one third of those in China. It states that worldwide deaths from smoking - currently standing at 3 million annually - will rise to 10 million in about 30 years' time. It further notes that "smoking is fast increasing in third world countries and in Eastern Europe ... Many of the countries in which smoking is increasing fast have limited regulation of tobacco or health education and health care systems which are ill-equipped to handle the consequences. In parts of Africa tobacco companies are using advertising and marketing campaigns, sponsorship of events and price wars to promote cut-priced cigarettes".[388] 224. The World Health Organisation (WHO) told us that "we cannot simply stand by and count the dead. Internationally, the WHO is taking the lead in the United Nations in heading the development of the Framework Convention on Tobacco Control. The Convention would address transnational aspects of tobacco control",[389] although the WHO makes it clear that there will still be a need for national and regional action. Dr Derek Yach told us that while the incidence of smoking in western countries was declining, smoking prevalence was rapidly increasing elsewhere. He said that over the past 20 years there had been a decline of "about 1.6 per cent of adult consumption per capita per year - compared to increases ... of 8 per cent per year for 20 years in China, 6.8 per cent in Indonesia, almost 5 per cent in Syria ... By the 2020s we estimate that there will be around 10 million deaths [caused by smoking] and 70 per cent of those will occur in developing countries ...which means we are going to face one of the largest, if not the largest, public health challenges in the 2020s and 2030s ... This eclipses the sum total of deaths from malaria and tuberculosis and many other causes of deaths worldwide".[390] 225. The Framework Convention on Tobacco Control mentioned by Dr Yach is a new legal instrument that will circumscribe the global spread of tobacco and tobacco products. The Framework Convention will establish legal parameters; separate protocols will make up the substantive part of the agreement. It is expected that the Convention and possible related protocols should be adopted by the World Health Assembly no later than May 2003. The Government has welcomed the Framework Convention and its White Paper states that "we will do everything we can to help, drawing on our experience of tackling tobacco, and will be discussing with the WHO how we can most effectively be involved in this landmark initiative".[391] 226. Given the huge scale of the problem, it is alarming to note the reaction of some tobacco companies to the WHO's actions. Mr Broughton of BAT told his company's AGM on 29 April 1999 that "driven by the western agenda, [WHO's] priorities are different from those of health ministers in the developing world, for whom issues like malnutrition, lack of sanitation, infant mortality and AIDS loom much larger ... Regrettably, the WHO has got the smoking issue completely out of proportion with its Tobacco Free Initiative ... Indeed the WHO seems to have been hijacked by zealots in its desire to set itself up as some sort of 'super-nanny'."[392] This approach seems to belie the claim made in BAT's written evidence to the Committee that it seeks "to co-operate with the Government and public health authorities to the fullest extent reasonably possible. The reason for this is simple. We take the view that the most effective way of developing rational smoking and health policies is for the industry, the Government and public health bodies to work with each other and to engage in a free and frank exchange of views".[393] 227. The idea that developing countries were uninterested in tobacco control was rebutted by Dr Yach. He said that the WHO represented the will of its 192 member states and that "there is virtually no other area of public health where there has been so much international consensus." He went on to state that, although it was sometimes said that African ministers accorded tobacco control a low priority, at a conference of African health ministers held in October 1999, a range of tobacco control options were discussed and that "in their discussions on tobacco they acknowledged the need for action on all the areas being discussed in western countries ... This was a relatively short meeting with a massive public health agenda. They selected to highlight the importance of tobacco as a public health problem because they know that somewhere down the line they are going to face the problem and addressing it early and vigorously is going to save enormous public resources. The truth is that wherever we go there is not a single country where increasingly the ministries of health and the ministries of finance are not beginning to recognise that tobacco control makes sound public health sense and sound economic sense".[394] 228. Mr Broughton's comments were further undermined by Zhang Wenkang, Minister for Public Health, People's Republic of China, who stated in correspondence to the Committee that "The Ministry of Health of China has recognized that the effect of tobacco on health is an important public health issue. In order to protect the health of the public, Chinese governments at all levels have been actively facilitating the tobacco control programme in the last twenty years .. We think that tobacco control ... [requires the] joint efforts of all countries in the world. Therefore, we support the Framework Convention on Tobacco Control of the World Health Organisation".[395] 229. There are also concerns that the tobacco industry's negative attitude towards the WHO's tobacco control objectives might go beyond words to deeds. Dr Yach quoted a senior Philip Morris official speaking at a Philip Morris sponsored conference in 1988, where there were also representatives from other tobacco companies, as saying that the WHO "'has an extraordinary influence on government and consumers and we must find a way to defuse this and reorientate the activities to their prescribed mandate'". Dr Yach also said that a document emerging from the conference "discussed 'countermeasures designed to contain, neutralise, reorientate =2E.. WHO' and stated 'the necessary resources should be allocated to stop WHO in their tracks'".[396] Such was the level of concern felt by the WHO at the activities of the tobacco industry, that it established an inquiry into "the way in which WHO and the UN systems have had their policies thwarted by the industry ... This is unprecedented ..." The World Bank has also joined the inquiry and has nominated a top anti-corruption expert to assist the inquiry.[397] 230. We welcome the Framework Convention proposed by the World Health Organisation and the Government's support for it. However, any success will be dependent on a responsible approach being taken by the tobacco companies. Depressingly, there is little sign of that in the cheap jibes made at the WHO's expense by BAT. To call an organisation committed to improving global health 'zealots' and a 'super-nanny' because of its concern about the 10 million deaths which will be caused by tobacco each year by the late 2020s seems to us bizarre. We hope that the other companies - and, belatedly, BAT - will work constructively with the WHO. On a national level, we recommend that the Government requires the British tobacco companies to provide an annual summary of the action they have taken to co-operate with the WHO, to which the WHO should be invited to respond. If the action taken by the companies is not satisfactory, further action, including legislative and fiscal approaches, should be considered. It would be a hollow victory if, as a result of more stringent action taken on tobacco control in the developed world, smoking related deaths were merely exported to the world's poorer nations. 352 Q1376. Back 353 Ev., p.223. Back 354 Q1064. Back 355 QQ1065-66. Back 356 Sunday Times, 'Bootleg Britain', 7.3.99, p.12. Back 357 Home Affairs Committee, Minutes of Evidence, 25 May 1999, The Work of HM Customs & Excise: Matters Relating to Crime, HC478, QQ131- 32. Back 358 QQ1059-1060. Back 359 Ev. p.309. Back 360 Q775. Back 361 QQ776-77. Back 362 Q1054. Back 363 The Guardian, 31.1.2000, p.1. Back 364 Ev., pp.429-30. Back 365 Ev., pp.430-31. Back 366 Ev., pp.431-32. Back 367 The Guardian, 31.1.2000, p2. Back 368 BAT Co Global Five-year Plan 1994-1998, quoted in Ev., p.433. Back 369 Letter from Keith Dunt (now BAT's Finance Director), to 'Grant' [of Nobleza Piccardo, a BAT subsidiary], 24 June 1992, quoted in Ev., p.432. Back 370 Memo from Keith Dunt to Ulrich Hester, Barry Bramley [Chairman, BAT Co Industries], Pilbeam, Castro, quoted in Ev., p.432. Back 371 Note from Keith Dunt to Barry Bramley (BAT), 6 September 1992, quoted in Ev., p.436. Back 372 Ev., p.429. Back 373 The Guardian, 31.1.2000, p2. Back 374 TB 18A, p.6, not published. Back 375 The Guardian, 31.1.2000, p2. Back 376 The Guardian, 3.2.2000, p.12. Back 377 Q1361. Back 378 Q1361. Back 379 Q1369. Back 380 Q1384. Back 381 Q1361. Back 382 Q1387. Back 383 Q1400. Back 384 Q1367. Back 385 Q1372. Back 386 Q1509. Back 387 Ev., p.483. Back 388 Smoking Kills, p.75. Back 389 Ev., p.97. Back 390 Q283. Back 391 Smoking Kills, p.79. Back 392 Speech by Mr Broughton at the BAT Annual General Meeting on 29 April 1999 (TB 28G, not published). Back 393 Ev., p.130. Back 394 Q286. Back 395 Amongst the measures adopted by the Chinese Government are: bans and restrictions on advertising; restrictions on smoking in public places; and a Tobacco Free Schools initiative. See Ev., p.631. Back 396 Q269. Back 397 Q269. Back =A9 Parliamentary copyright 2000 Prepared 14 June 2000 From rob@essential.org Sun, 18 Jun 2000 22:18:12 -0400 (EDT) Date: Sun, 18 Jun 2000 22:18:12 -0400 (EDT) From: Robert Weissman rob@essential.org Subject: [Intl-tobacco] UK: Select Committee on Health Second Report: SUMMARY OF CONCLUSIONS AND RECOMMENDATIONS (fwd) Select Committee on Health Second Report: SUMMARY OF CONCLUSIONS AND=20 RECOMMENDATIONS Source: House of Commons, Wednesday, 6/14/00 (a)We very much welcome the Government's firm commitment to action to combat smoking in its White Paper Smoking Kills. We do not, however, regard the targets they have set as sufficiently challenging to justify the Department of Health's rhetoric that it is for the first time tackling smoking seriously. The target trends for adult smoking are no more than would be expected extrapolating from the general trends since the 1970s. We believe that the DoH should set much tougher targets and take such measures as are open to it to achieve those targets (paragraph 19). (b)The Royal College of Physcians (RCP) drew the following main conclusion: "Cigarette smoking should be understood as a manifestation of nicotine addiction ... the extent to which smokers are addicted to nicotine is comparable with addiction to 'hard' drugs such as heroin and cocaine." We endorse this conclusion, which underlies many of the recommendations in our report and is, we believe, of fundamental importance to policy makers in the UK and elsewhere (paragraph 33). (c)Bearing in mind that asthma causes 1,400 death per year, we do not regard asthma attacks as merely unpleasant and believe that policy goals related to Environmental Tobacco Smoke must take account of the real health risks it poses (paragraph 42). (d)We find it inherently unsatisfactory that the trade association of the tobacco companies was unable to comment on the research activities of its predecessor body. It seems to us that this is symptomatic of a more general failure by the industry as a whole to take responsibility for the effect of its activities (paragraph 52). We also find extremely unconvincing the explanation that the Harrogate research stopped simply because analytical techniques improved to such an extent that researchers were able to analyse ever-smaller components (paragraph 53). (e)Tobacco companies are commercial enterprises whose imperatives have nothing in common with the public health community. Their past records of denial and obfuscation militate against any claims they may make towards scientific objectivity. We find ourselves most strongly agreeing with the viewpoint expressed by Dr Axel Gietz, Vice President of R J Reynolds Tobacco (UK) Limited: "we are aware that we do produce and market a very controversial product ... what we do in terms of product development ... is much more important than anything we say". We believe it is for public health authorities to measure the risks of smoking and to set appropriate regulatory parameters (paragraph 55). (f)The current regulation applying to tobacco products is entirely inadequate (paragraph 59). We take the view that if the Government fails to take the sort of direct regulatory action we recommend below as a consequence of its anxiety not to be seen to be 'nannying', it would be failing in its responsibilities (paragraph 61). (g)We believe that the Department should urgently commission comprehensive research relating to the age at which children start smoking, the reasons they begin, continue and quit smoking, the relationship between pack size and consumption by children, and the sources from which children obtain cigarettes. We believe that the Tobacco Regulatory Authority we propose below at paragraph 189 would be the appropriate body to commission and analyse such research (paragraph 63). (h)We believe that a much more widespread use of proof of age cards would reduce the incidence of retailers unwittingly selling tobacco products to children. We think it would be helpful if the Government could approve those photo-identity proof of age cards it regards as reliable and useful. Such cards could then bear an appropriate marking to indicate that they belonged to a Government approved scheme (paragraph 70). (i)Detection of those illegally selling tobacco to youngsters is the job of trading standards officers, and we believe they need to be given clear instructions, definite targets and dedicated resources. They should also be made accountable for the success of their operations and ensuring shopkeeper compliance (paragraph 71). (j)We believe it is deplorable that so many local authorities have failed in their responsibilities to deter under age tobacco sales. Those not undertaking regular enforcement procedures should be named and shamed (paragraph 72). (k)We regret the fact that the Scottish Office has not modified its guidance [on the use of children in test purchase cases], and call on the Secretary of State to make appropriate representations to achieve a uniformity of approach towards tackling sales of tobacco products to children (paragraph 73). (l)The policy failure on youth access to tobacco results from both inadvertent and deliberate law breaking. This was recognized in the White Paper, which promised to draw up an enforcement protocol with local authorities to tackle both issues. We welcome this - the terms of the Children and Young Persons (Protection from Tobacco) Act need to be greatly strengthened - but we feel that the protocol will need to be strongly worded, and backed by both adequate resources and severe penalties for non-compliance, if it is to have any effect. We also note that, despite "lengthy discussions" having taken place, no such protocol has yet been agreed. With this in mind, it is our view that Government cannot simply shift the blame for lack of enforcement on to local authorities, trading standards officers and magistrates. It is essential that the Government issues clear guidelines and quickly develops effective protocols to ensure more test purchases take place and more convictions are secured. (Paragraph 74). (m)We recommend that magistrates should be actively encouraged to pass deterrent sentences by means of guidance from central Government (paragraph 75). (n)One possible way to enhance deterrence, would be to introduce a system of 'negative licensing'. Rather than requiring all retailers to be licensed, this would simply forbid sale by those who have infringed the law. We believe that this would act as a potentially powerful deterrent. It would also be appealingly appropriate in that the punishment would fit the crime - "shopkeepers who sell to children can't be trusted to retail tobacco responsibly, therefore should not be permitted to do it at all". Such a system would also, we believe, act as an incentive for retailers and those aged 16 and over to involve themselves in proof of age schemes. However, perhaps the most attractive feature of negative licensing is that it would not require a new or extensive bureaucracy to support it. Existing local licensing boards could implement it as and when convictions occur. Alternatively, the Department might wish to assess the advantages of introducing a comprehensive licensing system for all retailers of tobacco, which would give consistency with the arrangements for the sale of alcohol (paragraph 76). (o)We believe that the measures set out in this and the previous section will bring about significant reductions in the numbers taking up smoking. The tobacco industry's public stance on children's smoking is explicit: they see tobacco use as an adult activity, do not endorse underage sales and, and in some cases support an increase of the legal age to 18. On the other hand, as noted above, most smokers start as children and complete prevention of child access to the product would have serious repercussions for their profits. The companies' response to the proposals made here will help establish where their priorities really lie (paragraph 77). (p)The evidence we have reviewed from the advertising agencies leads us to conclude that, once more, voluntary agreements have served the industry well and the public badly. Regulations have been seen as hurdles to be overcome or side-stepped; legislation banning advertising as a challenge, a policy to be systematically undermined by whatever means possible. We recommend that any future regulation of marketing should be statutory, and overseen by an independent and powerful regulatory body which has the consumer's interest at heart, such as the Tobacco Regulatory Authority which we propose below at paragraph 189 (paragraph 88). (q)Most of the tobacco companies have sought to challenge the Government's commitment to introduce an advertising ban in advance of the date for implementation set by the EU directive. The argument they have repeatedly advanced is that tobacco advertising does not increase consumption, it merely persuades smokers to switch brands. However, looking through the documents that the agencies themselves produced, this view is completely discredited (paragraph 89). (r)Our review of the copious evidence from the advertising agencies, which includes substantial quantities of market research, leads us to conclude that the advertising agencies have connived in promoting tobacco consumption, have shamelessly exploited smoking as an aspirational pursuit in ways which inevitably make it attractive to children, and have attempted to use their creative talents to undermine Government policy and evade regulation. We welcome the Government's commitment to end all forms of tobacco advertising and sponsorship (paragraph 99). (s)In our view, such connotations [associations between smoking and the 'glamour' of Formula 1 in the advertising papers we examined] blatantly subvert the attempts of successive Governments to dissociate smoking from aspiration and glamour. They also expose as pusillanimous the decision of the present Government to agree to the exemption for Formula One from the EU Directive banning advertising and sponsorship until 2006 (paragraph 102). (t)We share Mr Mosley's view that the EU's tobacco subsidy undermines its anti-tobacco health promotion strategy, a point we touch on elsewhere. We also regard it as unacceptable that the majority of health ministers [in each of the countries where Grand Prix are held] questioned have not had the courtesy to reply to an invitation to contribute on a crucial health issue put to them by a major sporting body [the FIA]. We recommend that the Department of Health writes to each its counterparts in those countries which have and have not replied, to ascertain the nature of the replies given and the factors underlying the failure to reply by 10 governments. We would like to be provided with copies of this correspondence (paragraph 106). (u)We see no reason why sponsorship has been treated more leniently than advertising in the White Paper, and we call on the Government to remove tobacco sponsorship in general, and that pertaining to Formula One in particular, as soon as is legally possible. If more evidence is needed to support this move, Formula One Management's offer, in response to an inquiry we made, to fund independent research should be accepted and supervised by the Tobacco Regulatory Authority which we propose below (paragraph 108). (v)We believe that the extraordinarily dangerous nature of the product being marketed means that tobacco companies cannot expect to operate in the same commercial environment as most other industries. We are concerned that tobacco manufacturers continue to think of cigarette packs as being a way either of exploiting the aspirational nature of their products or conveying implied health messages. Notwithstanding the potential restrictions caused by EU single market legislation we believe that the advantages and disadvantages of introducing generic or plain packaging for all tobacco products should be carefully assessed by the Tobacco Regulatory Authority we propose below (paragraph 189). Such packaging would be of a standard colour with the brand name in a standard type face. Beyond this, the only other permitted information would be health warnings and consumer information about product contents (paragraph 112). (w)Other promotional techniques, such as direct marketing, point of sale displays, brand stretching (the branding of non-tobacco products such as clothing with tobacco marques) have also received less attention than advertising. We believe that the proposed Tobacco Regulatory Authority (see below) should monitor these activities, check compliance with current controls and propose new ones whenever there is a danger that a particular activity will encourage consumption. Innovative promotional efforts are also a threat, especially on the internet, and will, we believe, require careful monitoring (paragraph 113). (x)Most fundamental of all, every effort needs to be made by both the Government and the tobacco companies to limit the appeal of tobacco brands to young and new smokers. As a start, we believe the Government should compile and publish information on those brands that have particular appeal amongst children. Such data could inform the operation of the proposed Tobacco Regulatory Authority, both in terms of its analysis of any ongoing marketing activity and its assessment of additives (paragraph 114). (y)In our view, voluntary agreement on passive smoking cannot yet be said to be really delivering smoke-free environments to all those who want them. The very real improvements of recent years probably owe more to market forces than to any action by Government. Indeed, we believe that market forces will continue to be a significant driver for change in this area. On balance, we accept that in the leisure sector, voluntary codes may offer the best way forward. We would hope, however, that these yield much more effective action on the part of the hospitality sector than has been the case to date. In this respect, we believe it is essential that the Government sets out a strict timetable for the targets to measure performance cited in its White Paper. Certainly, if the latest agreements do not significantly improve the situation we think the Government will have to consider what more stringent actions it could take. In respect of the workplace, we believe that the proposed Health and Safety Commission Code of Practice offers a good way forward (paragraph 121). (z)We believe that even greater efforts need to be made throughout the primary care teams to educate adults on the dangers their smoking poses to children (paragraph 121). (aa)We believe that a tobacco regulatory authority such as that we propose below in paragraph 189, with access to high quality scientific advice, would be the appropriate body to advise the Government on the evidence as to the health risks of passive smoking, possible measures to reduce its impact and even the potential benefits of innovative products which might reduce the amount of sidestream smoke which cigarettes emit (paragraph 123). (bb)Tobacco companies should produce the least harmful product possible. We are totally unconvinced that Imperial Tobacco can be committed to producing such a product while its public stance is to refuse to accept that cigarettes are intrinsically unsafe (paragraph 125). (cc)Three charges are made against the tar reduction strategy. The first - that, mainly because of compensatory smoking, it is simply ineffective in making cigarettes less harmful - is disputed amongst experts. Although the evidence about compensatory smoking is convincing, it is difficult to reconcile this with the fact that deaths from smoking have fallen faster than can otherwise be accounted for during the period in which the policy was enacted. This latter point leads us to support the further reduction in tar levels in the proposed EU Directive and the further provisions made in the Directive to review the effectiveness of the tar reduction programme based on the best evidence available. We further recommend that the Tobacco Regulatory Authority which we want to see established should, as a high priority, examine the factors responsible for the reductions in death rates from smoking, with a view to establishing a firmer basis for regulating cigarettes in the future (paragraph 137). (dd)The two further charges are that actual or implied claims about beneficial health effects of low-tar cigarettes have lessened the incentive of people to give up smoking entirely; and that it has distracted from the other, potentially much more effective, regulatory options available. We take these two charges very seriously. In order to tackle the first, we recommend that the terms 'light', 'mild' 'ultra', 'low tar' and 'low nicotine' be proscribed by law in cigarette branding and marketing (by EU Directive, or by primary legislation in the United Kingdom). To tackle the second charge we recommend that the Tobacco Regulatory Authority which we propose at paragraph 189 be able to examine, propose and enforce innovative and effective alternative regulatory regimes. It is clear that a regulatory approach based on reducing nominal tar yields alone is inadequate (paragraph 138). (ee)Given that, because of their addiction, people will demand cigarettes for the foreseeable future, it is clearly preferable that they smoke 'safer' cigarettes. We therefore hope that such products will be developed. We note the argument put forward by some of the companies that the successful marketing of such products is stymied by the regulatory framework. We recommend that the new Tobacco Regulatory Authority which we want to see established should have powers to review and approve applications from companies to market such products in a way which conveys their potential benefits compared to normal cigarettes, as long as full information about the product is provided and assessed by an independent panel of experts (appointed by the Authority), a process which should be funded - via a charge by the Authority - by the company applying. There should then be regular and rigorous reviews of the product and its effects to ensure that it deserves to retain its preferential marketing status. We would expect that status to be very narrowly defined and its promulgation strictly enforced by the Authority (paragraph 146). (ff)We believe responsibility for licensing additives permitted for use in tobacco products sold in the UK should be passed to the Tobacco Regulatory Authority we propose below. We further believe that this body should take account of the overall public health impact of the inclusion of an additive in determining whether or not it should be permitted for use in tobacco products (paragraph 154). (gg)We think that the position of the tobacco companies in withholding information on the additives their cigarettes contain is completely untenable. Consumers have a right to know what they are smoking, including the percentage of the product such additives form, and we believe that this information should be available on every packet. We believe the companies should immediately take steps to ensure this is done and that the Secretary of State should introduce measures to make such labelling a mandatory requirement for cigarettes sold or manufactured in the UK (paragraph 158). (hh)We do not believe it would be appropriate for health policy to be shaped by the activities of criminal gangs. With this in mind we welcome the additional funding the Treasury is providing to boost Customs and Excise in their efforts to secure compliance with the law [in respect of smuggling of tobacco products into the UK] (paragraph 164). (ii)We welcome the fact that the Government has launched its ambitious recent [tobacco education] campaign. We are not, however, convinced that the Government has enough knowledge of the reasons why people smoke to make such a campaign fully effective (paragraph 165). (jj)We would draw the attention of health education authorities to the materials we have uncovered from the advertising agencies relating to the motivations of young and adult smokers. We believe that if this material were to be analysed carefully it could yield important information which could be used to dissuade people from smoking (paragraph 169). (kk)We think it important that the information provided by public health authorities on cigarette packets, and given out in public health campaigns (in schools, workplaces, via primary care or through other media) adopts a greater variety of messages and conveys information not yet addressed in the health warnings. We believe that the general assertions that "smoking causes heart disease" or "smoking causes lung cancer", whilst having a place in an overall educational strategy, are not in themselves sufficient (paragraph 170). (ll)We believe that the Department of Health should instigate a much more comprehensive and sophisticated educational programme. From our meetings with public health groups in America we think it is vital that young people should themselves be actively involved in dissuading their peers from smoking (paragraph 172). (mm)We believe that messages for young people, who are often not impressed by arguments that their life will be shortened by smoking since death for them seems such a distant prospect, should range from information on the way smoking makes them less desirable socially to the ways in which tobacco makes poor people poorer. For example, the fact that smoking can damage skin and teeth should be made clear. There is also evidence that male potency can be damaged by smoking. This is a particularly strong message for young men and we recommend that the Government and health authorities make greater use of it when communicating the dangers of smoking. We further recommend that this message be included as one of the health warnings on packs (paragraph 172). (nn)So far as adults are concerned, it is our view that the Department should take account of the fact that smoking is skewed towards those in poorer and less well educated households, as the advertising agencies do in many of their campaigns. We believe that the Department should examine the ways in which the agencies have marketed their advertising to this sector and copy some of their most successful strategies. We think it important that public health authorities, as well as conveying the risk of smoking attempt to convey the magnitude of the risks of smoking, in terms of stressing, for example, the numbers of years of life lost by an average smoker or the fact that smoking kills half of all lifelong smokers, and half of those before the age of 69. We think it important that adults should be much more aware of the benefits of quitting in respect of the surprisingly rapid health gains, not least in terms of the speedy improvement in likely life-expectancy that quitting yields. (Paragraph 173). (oo)We believe it is essential that the packet contains clear and effective labelling to the effect that tobacco products are drug-delivery devices creating addiction through nicotine (paragraph 174). (pp)We also believe that packs should have a contact number to gain access to NHS smoking cessation advice and programmes, (paragraph 174). (qq)Messages should appear on all packs, stating the addictiveness of, and damage to health caused by smoking. In addition, a variety of health messages - such as that relating to male potency which we recommend above - should be used on certain packets. These messages should be harder hitting and more relevant to consumers than those currently used. (Paragraph 174). (rr)If NRT is shown to increase smokers' motivations to quit, we believe the Government should consider making NRT available on prescription - available from smoking cessation clinics - for two weeks at a time, up to a maximum of six weeks in total. (Paragraph 180). (ss)We believe that the Government is right to keep its distance from the tobacco industry which has, in our view, been the main beneficiary of the regime of voluntary agreements (paragraph 188). (tt)The final conclusion of the RCP in its Report Nicotine Addiction in Britain was that "an independent expert committee should be established to examine the institutional options for nicotine regulation, and to report to the Secretary of State for Health on the appropriate future regulation of nicotine products and the management and prevention of nicotine addiction in Britain". We concur. It seems to us entirely illogical that treatments for nicotine replacement therapy are subject to stringent regulation whereas the infinitely more deadly tobacco products they are designed to supersede escape any fundamental regulation. So we believe a Tobacco Regulatory Authority (TRA) should be introduced (paragraph 189). (uu)The proposed TRA could examine nicotine:tar ratios to determine how these could be optimised to minimise exposure to toxins (paragraph 191). (vv)The TRA could consider the marketing of tobacco products, looking at areas of promotion going beyond advertising into issues such as point of sale displays (paragraph 192). (ww)We think that technological means to make cigarettes safer and less addictive should be explored and that a TRA could provide the necessary impetus for this. The TRA could, we believe, profitably set upper limits, and progressive reductions for known carcinogens (paragraph 193). (xx)We recommend that the UK should institute a TRA with responsibility for all aspects of tobacco regulation consistent with the limitations posed by EU law. We would eventually like to see a Europe-wide TRA, but we feel that such a body would have no credibility until such time as the CAP subsidy for tobacco growing is eliminated (paragraph 197). (yy)We regard the current staff resources devoted to tobacco control, especially in the area of scientific knowledge and advice, to be pitifully weak. Irrespective of whether the Secretary of State accepts our recommendation that root and branch reform is needed in terms of a TRA, we would expect to see a major increase in resources, met out of the enormous income the tobacco companies pay in duties to the Treasury (paragraph 199). (zz)We recommend that the Secretary of State makes immediate and urgent representations in Brussels to create a far more substantial unit to combat the enormous resources of the tobacco industry. We believe that European policy is already hugely compromised by the CAP subsidy, and that unless appropriate resources go into tobacco control European action in this sphere will lack credibility (paragraph 200). (aaa)Gallaher's stance that they deplore smuggling appears to be contradicted by their advertising which seems to want to court those doing the smuggling. Gallaher noted in its evidence to us that smuggled tobacco gives children access to tobacco. If they genuinely believe that this and the other problems associated with smuggled tobacco are a "tragedy", they should make sure that all their business practices and those of their advertisers work against the illegal trade rather than encourage it (paragraph 207). (bbb)We welcome the fact that BAT's audit committee will look into this matter [allegations of BAT involvement in smuggling] and we will be calling for its findings when they are available. But this is not enough. The allegations need to be looked at independently and we therefore call on the DTI to investigate them. If they prove to be substantiated, the case for criminal proceedings against BAT should be considered; if they prove to be false, then those perpetrating them should publicly apologise to BAT for what will have amounted to a malicious slur on the company's name (paragraph 222). (ccc)We welcome the Framework Convention proposed by the World Health Organisation and the Government's support for it. However, any success will be dependent on a responsible approach being taken by the tobacco companies. Depressingly, there is little sign of that in the cheap jibes made at the WHO's expense by BAT. To call an organisation committed to improving global health 'zealots' and a 'super-nanny' because of its concern about the 10 million deaths which will be caused by tobacco each year by the late 2020s seems to us bizarre. We hope that the other companies - and, belatedly, BAT - will work constructively with the WHO. On a national level, we recommend that the Government requires the British tobacco companies to provide an annual summary of the action they have taken to co-operate with the WHO, to which the WHO should be invited to respond. If the action taken by the companies is not satisfactory, further action, including legislative and fiscal approaches, should be considered. It would be a hollow victory if, as a result of more stringent action taken on tobacco control in the developed world, smoking related deaths were merely exported to the world's poorer nations (paragraph 230). (ddd)We believe that a commitment on the part of BAT to put all non-privileged documents held at Guildford on the internet, preferably in a searchable form, would indicate that it was serious in its attempts to "start the new millennium with a positive approach" to bringing an end to the allegations and arguments which have characterised relationships between public health authorities and the tobacco companies. At the very least, we believe BAT should automatically put all non-privileged documents which it has already scanned, or which it scans in the future, on the internet. Should BAT find this simple, and relatively cheap, option beyond it, the obvious inference should be drawn that they are resisting any attempts to have wider public access to this material. We regard BAT's limits of one organization, and a maximum of six visitors, per day to be indefensible. It seems to us that BAT is failing to enter into the spirit of the Minnesota agreement. Finally, we think that BAT should employ professionally qualified staff and up to date computers at Guildford - in this respect the contrast between the company's research and development facilities, with their highly qualified staff and state of the art equipment which we saw at Southampton, and the archive, with its untrained staff and slow computers, was stark (paragraph 241). (eee)We very much welcome the approach that Gallaher has taken to our request that it should make its archival material on the health risks of smoking publicly accessible. We believe that this represents a more mature response to the public health issues than has been evinced by UK companies in the past and that Gallaher should be commended for its responsible approach in this area (paragraph 243). (fff)We believe that Imperial have adopted a reactionary and defensive posture. Their refusal to place in the public domain documents which may have a real bearing on the public health community's knowledge of the health risks of smoking seems to us lamentable (paragraph 245). =A9 Parliamentary copyright 2000 Prepared 14 June 2000 From rob@essential.org Sun, 18 Jun 2000 22:20:15 -0400 (EDT) Date: Sun, 18 Jun 2000 22:20:15 -0400 (EDT) From: Robert Weissman rob@essential.org Subject: [Intl-tobacco] UK MPs to produce report on BAT, inquiry may follow (fwd) UK MPs to produce report on BAT, inquiry may follow Source: Reuters, Tuesday, 6/13/00 Tuesday June 13, 1:06 pm Eastern Time LONDON, June 13 (Reuters) - A cross-party group of British MPs will publish a long-awaited report on Wednesday into the activities of British American Tobacco (quote from Yahoo! UK & Ireland: BATS.L) which could lead to a full government inquiry. In February, parliament's Health Select Committee heard allegations from an anti-smoking group and an investigative journalist that the tobacco corporation had links to a major cigarette smuggling conspiracy. BAT executives hotly denied the charges. The company acknowledged smuggling may have taken place in certain markets but insisted that if it did, it was without company backing. A committee official said the report would be released at 11 A.M. (1000 Gmt). A source close to the investigation said the MPs would press Trade and Industry Secretary Stephen Byers to launch a full-scale inquiry. Officials at the DTI said a decision would be made only after the report had been studied in detail. Byers could use powers under the Companies Act to launch a probe of BAT's accounts and to grill its staff under oath. From rob@essential.org Sun, 18 Jun 2000 22:28:45 -0400 (EDT) Date: Sun, 18 Jun 2000 22:28:45 -0400 (EDT) From: Robert Weissman rob@essential.org Subject: [Intl-tobacco] BAT eyes world's leading tobacco group (fwd) BAT eyes world's leading tobacco group Source: Korea Post , Wednesday, 6/14/00 The following article was contributed to The Korea Post by British American Tobacco Korea in Seoul for publication on the occasion of the publication of a Special Report on the United Kingdom.--Ed. Our vision is to become the world's leading international tobacco group. We aim to achieve our vision through our strategy of seeking leadership in individual markets, by growing strong positions in the premium segment, and by improving our share of the value segment when it makes sense to do so. We are confident in the future of the tobacco industry as a dynamic business with real growth prospects, and have no plans to diversify. We believe that our brand portfolio, management and financial capacity will continue to enable us to achieve organic growth in our existing markets, and to make quick and effective entry into markets where we are not yet strong. Our business development strategy combines organic growth and new market entries through acquisition, joint venture or other strategic alliances. BAT world's most international tobacco group British American Tobacco is the world's most international tobacco group, with an active business presence in more countries than any other. We acknowledge that along with the pleasures of cigarette smoking come real risks of serious diseases such as lung cancer, respiratory disease and heart disease. We also recognise that, for many people, smoking is difficult to quit. We accept the significant social responsibilities that our business entails, while firmly believing that informed adult consumers should have the right to choose to smoke or not. We compete worldwide for the business of those who choose to do so. Over a billion adults around the world choose to smoke, buying some 14.8 billion cigarettes a day. In 1998, the global cigarette market was approximately 5.4 trillion cigarettes, of which British American Tobacco and Rothmans International together sold over 900 billion. In 1998, combined revenue for British American Tobacco and Rothmans International was over =A1=CC25 billion. British American Tobacco's brand portfolio is made up of both Virginia and American blend cigarettes, and includes well-established international brands such as Dunhill, Lucky Strike, Kent, State Express 555, Rothmans, Peter Stuyvesant, Benson Hedges, Kool, Pall Mall, Viceroy, Winfield and Join Player Gold Leaf. We also have interests in smoking tobacco and cigars, complementing the ready-made cigarette sector. The new British American Tobacco Did you know? Following our merger with Rothmans International in June 1999, British American Tobacco... --Has an active business presence in 180 countries with 97 factories and 4 major R&D centers --Has a global market share of about 17.6% in the premium international segment with the production of over 800 bil. sticks per year --Is the market leader in more than 60 countries --Has a strong portfolio of over 320 brands --Manufactures in 68 countries --Employs 90,000 people worldwide --Countries some =A1=CC13 billion a year to national exchequers worldwide through excise duties and taxes, well over ten times as much as the group's profit after tax --Works with over 250,000 tobacco farmers, providing seed and advice on planting, growing and harvesting --Makes the cigarette chosen by more than one in six of the one billion adults in the world who choose to smoke --Ranked 5th among the world's most respected food/beverages companies at the survey conducted by the Financial Times --And is better positioned for long-term growth in a changing and challenging business. From rob@essential.org Sun, 25 Jun 2000 10:18:09 -0400 (EDT) Date: Sun, 25 Jun 2000 10:18:09 -0400 (EDT) From: Robert Weissman rob@essential.org Subject: [Intl-tobacco] Russia's Aeroflot opposed to U.S. smoking ban (fwd) Russia's Aeroflot opposed to U.S. smoking ban Source: UPI, Friday, 6/23/00 Friday, 23 June 2000 13:30 (ET) MOSCOW, June 23 (UPI) -- Aeroflot, Russia's largest airline with regular air services to half a dozen cities in the United States, has appealed to the International Air Transport Association over a smoking ban on its flights imposed by the U.S. Transportation Department, it was announced Friday. Aeroflot has been forced to ban smoking on its flights to and from the United States from the beginning of this month under a U.S. regulation that bans smoking on board commercial air services arriving in or leaving from the United States. The airline says it is appealing to IATA because the U.S. is "interfering in domestic economic policies of foreign nations, violating the principle of national sovereignty and the principle of non-interference in domestic affairs of nations, as established by the charter of the United Nations Organization." Aeroflot claims the U.S. ban on smoking breaks international law. Russians are some of the world's heaviest smokers, and passengers frequently choose to fly on Aeroflot because it, unlike most major international carriers, still allows smoking in its cabins on long-haul routes. Aeroflot's U.S. destinations include New York, Washington, Chicago, Seattle, San Francisco and Los Angeles. From rob@essential.org Mon, 26 Jun 2000 10:17:59 -0400 (EDT) Date: Mon, 26 Jun 2000 10:17:59 -0400 (EDT) From: Robert Weissman rob@essential.org Subject: [Intl-tobacco] Norwegian Tobacco Industry Faces Lawsuits Norwegian Tobacco Industry Faces Lawsuits Source: Aftenposten, Monday, 6/26/00 Updated 26.06.00, 08:03 (GMT +01:00)=20 A public report has determined that there are legal grounds for damage suits against the Norwegian tobacco industry. A vital 1964 US report pointing out the dangers of smoking was ignored. Norwegian tobacco companies not only brushed aside the warnings of health authorities, they instead increased their advertising campaigns. The American tobacco industry will pay NOK 1600 (US$ 180) billion over 25 years for damages caused by smoking. Estimates indicate a figure of about NOK 200 billion could be the bill for Norway's industry. (Aftenposten/Interactive) Utgiver: Aftenposten A/S, Oslo, Norge. Telefon +47 22 86 30 00. Alt innhold er opphavsrettslig beskyttet. =A9 Aftenposten. From rob@essential.org Mon, 26 Jun 2000 11:35:39 -0400 (EDT) Date: Mon, 26 Jun 2000 11:35:39 -0400 (EDT) From: Robert Weissman rob@essential.org Subject: [Intl-tobacco] European News bulletin - EU0025 - 26 June 2000 (fwd) !# --------------------------------- !# GLOBALink Tobacco - Weekly European News Bulletin !# --------------------------------- EUROPEAN BULLETIN EU0025 =96 26 June 2000 Headlines FINLAND: Camel boots ad breaches Tobacco Act FINLAND: Amer Tobacco's position to be studied FRANCE: Anti-smoking campaign for 12-14 year olds HUNGARY: Philip Morris launches schools anti-smoking campaign ISRAEL: Radioactive cigarettes cited in Israeli lawsuit ITALY: Bootleg cigarettes found inside mattress RUSSIA: Aeroflot accuses US of breaking international law INTERNATIONAL MALAYSIA: 1,366 teenagers fined for smoking SINGAPORE: Grisly images planned for city-state's cigarette packs Full Text FINLAND: Camel boots ad breaches Tobacco Act A Finnish Court has ruled that an advertisement for Camel boots was a form of indirect advertising for tobacco and it thus breached the Finnish Tobacco Act which bans tobacco advertising. According to the ruling, the logo and text used in the Camel boots ad were too similar to the logo of Camel tobacco. The importer of Camel boots will have to pay the court costs to the state. Source: Hufvudstadsbladet via the Gale Group, 10 Jun 2000 FINLAND: Amer Tobacco's position to be studied It has been reported that the Finnish Office of Free Competition is to examine whether Amer Tobacco has abused its leading market position on the Finnish markets. Amer Tobacco will be required to present the Office with a report on sales agreements it has signed with restaurants and retailers. The investigation follows concerns from competitors about the concentration of tobacco trade in Finland. Source: Helsingin Sanomat via the Gale Group, 10 Jun 2000 FRANCE: Anti-smoking campaign for 12-14 year olds The National Federation of Centres to Combat Cancer (FNCLCC) and Aventis Pharma have launched a no-smoking campaign targeting 12-14 year olds. The campaign will include the presentation of shocking images (cancer in smokers, effects of tobacco on smell, tobacco companies' strategy, etc). The exhibition will be visited by students aged 12 to 14 years old in 18 French cities until the end of June 2000. =93The Truth if I Smoke=94 campa= ign has the backing of the Ministry of Education, and the Secretaries of State of Education and Health. Source: Le Quotidien du Medecin via the Gale Group, 13 Jun 2000 HUNGARY: Philip Morris launches schools anti-smoking campaign Philip Morris Hungary is launching an anti-smoking campaign in schools with the [alleged] aim of discouraging 12-16 year-olds from smoking. The company will also set up an interactive internet site for the youngsters. According to a poll by the Gallup Institute, about 33% of Hungarian boys and 20% of girls in the age of 11-15 are regular smokers. About 33% of all Hungarians smoke. Smoking among women aged 18-24 has risen from 24% to 42% in the past five years. According to the Health Ministry, about 36,000 deaths per year in Hungary are linked with smoking. Source: Budapest Business Journal (ANB) via the Gale Group. 5-11 June 2000 ISRAEL: Radioactive cigarettes cited in Israeli lawsuit An Israeli lawsuit against US cigarette companies is citing an alleged internal Philip Morris memo as evidence that the biggest US cigarette manufacturer made cigarettes containing naturally radioactive tobacco. Attorney Amos Hausner is fighting the biggest suit in Israel's history to make one Israeli and six US tobacco companies pay up to $8 billion for allegedly poisoning and possibly irradiating Israelis with cigarettes. =93Whether the amount of radioactivity is harmful or not, we don't know bu= t it is quite possible it is harmful because of the simple reason that nobody is checking,=94 Hausner said. The case was brought on behalf of the Clalit national health fund which represents 60 percent of Israelis. It will be the first major suit to use what is alleged to be an internal Philip Morris memo found in the Minnesota archive that cigarette companies were forced to establish by US court order, Hausner said. Marked Confidential, the purported memo dated April 2, 1980, says that phosphate fertilisers and especially superphosphate fertilisers used in tobacco fields can contain natural uranium. =93Soils to which these products (the fertilisers) are applied show an increase in radioactivity,= =94 the document says, adding that the by-products of decaying uranium, lead and polonium, were present in tobacco and smoke. Polonium is radioactive. The document concludes that while it is unlikely that a person would get lung cancer by inhaling the polonium present in the tobacco, =93evidence to date, however, does not allow one to state that this is an impossibility=94= =2E The alleged memo notes that suggestions that Philip Morris use a different fertiliser would be =93a valid but expensive point=94. Hausner said cigarette makers usually defended themselves in court by claiming that smokers knew the risks and chose to smoke anyway. But he pointed out that smokers never knew or in any way agreed to smoke radioactive cigarettes. Philip Morris attorney Chuck Nunley told Reuters the issue of polonium in tobacco has been studied by scientists and even the US surgeon-general who, the lawyer said, concluded in 1971 that it was significant only if found in relatively high concentrations. =93As I understand it, polonium is a naturally occurring element that ther= e is a background level of in the environment. It's present in trace amounts in lots of things that we eat,=94' Nunley said. Hausner is seeking $2 billion in damages allegedly caused by the tobacco products and by the companies' actions and around $6 billion as damages for smokers who he says will die or become ill in the future. The case, filed in 1998, is still at a preliminary stage. Once it goes to trial, Hausner said he will demand that Philip Morris provide details about how widely the fertilisers were used and whether they are still used. He said that it was possible the radioactive fertiliser was used by other cigarette companies besides Philip Morris. Hausner has campaigned against smoking for years, first forcing Israel's army to ban cigarette advertising from a magazine given to soldiers and then helping make El Al Israel Airlines implement a non-smoking policy on its flights. Source: Reuters, 22 June 2000 ITALY: Bootleg cigarettes found inside mattress Customs officials in the Italian city of Venice have seized two tons of cigarettes bound for the UK - stuffed inside a mattress. The discovery was made as officials made a routine check of a lorry heading from Greece to the UK. The officers say they found one of the mattresses to be unusually firm. When they asked the driver about it he told them they were specially designed for people with bad backs. But when the matress was opened, it was stuffed full with packets of cigarettes. Customs officials in Venice have seized more than 40 tonnes of smuggled cigarettes since the beginning of the year. Last year they confiscated more than 140 tonnes, all from Greece. Source: PA News, Monday, 19 June 2000 RUSSIA: Aeroflot accuses US of breaking international law Russia's largest air carrier, Aeroflot, has accused the United States of breaking international law by banning smoking on all scheduled airline flights between the United States and other countries. Aeroflot has appealed to the International Air Transport Association asking it to decide whether the ban, which went into effect June 4, was legal. =93By introducing the new regulation, the United States has extended its law to foreign legal entities beyond its (American) territory, which blatantly contradicts the norms of international law,=94 Aeroflot said in a statement. =93The United States is interfering in domestic economic policie= s of foreign nations, and violating the principle of national sovereignty and the principle of non-interference in domestic affairs of nations, as established by Article 2 of the charter of the United Nations Organization,=94 the statement said. Many Russian smokers used to choose Aeroflot for long-distance flights over other airlines because it allowed smoking. Source: Associated Press, 23 June 2000 INTERNATIONAL MALAYSIA: 1,366 teenagers fined for smoking At the launch of the =93Week Without Tobacco=94 in Masjid Tanah of Malacca State, Malaysia, it was revealed that a total of 1,366 teenagers were fined for smoking in 1999. The figure is up 64% from 832 cases in 1998. Dr S Arumugam Lingam, deputy director-general for Contagious Diseases Control Division of the Health Ministry, said that active anti-smoking programs across schools were not successful in stamping out smoking among youngsters. However, the number of smokers caught in non-smoking areas had declined to 11,211 in 1999, as opposed to 11,850 in 1998. Source: New Straits Times via the Gale Group, 14 Jun 2000 SINGAPORE: Grisly images planned for city-state's cigarette packs Images of diseased brains, fat-clogged arteries and lung cancers could soon adorn cigarette packaging as the Government adopts shock tactics in the war against smoking. The Committee on Smoking Control wants Singapore to become the first Asian country to force cigarette makers to print such images on packs to provide a more striking message than traditional health warnings. "I think there is a good chance of this going through," said committee chairman Alex Chan. "In general, the Health and Environment ministries are in full support." Singapore, which already boasts stiff anti-smoking curbs, first experimented with shock advertising therapy last year, with a series of gruesome television adverts. Viewers saw brain tumours, cancerous lungs and fat-choked arteries with the insides squeezed out. The television adverts, adapted from Australia's National Tobacco Campaign, proved exceptionally effective during their first year. Previously, the committee's telephone hotline received on average 1,000 calls a year from people wanting advice on how to quit. After the campaign was launched, 11,000 calls were received in just the first four months. Smoking is banned in all public places and all air-conditioned places that serve food, and heavy taxes are levied on tobacco. The Government's last national survey, in 1998, found that 15 per cent of Singaporeans smoked, down two per cent on its previous survey. However, smoking among young women was rising. South China Morning Post, 17 June 2000 Amanda Sandford Research Manager ASH 102 Clifton Street LONDON EC2A 4HW tel: 020 7739 5902 fax: 020 7613 0531 From rob@essential.org Mon, 26 Jun 2000 12:05:55 -0400 (EDT) Date: Mon, 26 Jun 2000 12:05:55 -0400 (EDT) From: Robert Weissman rob@essential.org Subject: [Intl-tobacco] Tobacco Industry of Russia--Progress and Prospects (fwd) Tobacco Industry of Russia--Progress and Prospects Source: Tobacco China, Tuesday, 6/20/00 Background: This report was issued by the General director of the association of the producers of tobacco commodities "Tabakprom" Mr. Terevzov, at the symposium "Prospects of the development of tobacco industry and technology for Europe and Asia", in frames of the internatioal fair of tobacco industry and equipment "Euro Tab 2000", which was hold in Amsterdam, 16--18 June 2000. According to the different estimations in Russia smokes from 30 to 40% of the population, moreover there is the certain trend to increase the number of smokers. The stable annual consumption of the tobacco market of Russia in present time is estimated in volume of 250-260 Billion cigarettes. The tobacco industry of Russia includes more than 30 of big factories and more than 60 of works, including ones with the non-complete technological circle, being established in the resent few years. Association "Tabakprom" includes 23 big cigarette factories which produce approximated 90% of the cigarette made in Russia. Russian tobacco industry is one of few branches of industry which increases annual volume of production. So in 1994 it was produced 136 Bln. Pcs. The increase of the volume of the production is being done mostly by the manufacturing of the filter cigarettes, including light ones with low tar and nicotine contents, and also cigarettes with special filters. The expected production volume of the year 2000=A1=AAis not less than 270 B= ln. Pcs. Thus with the capacity of local factories which reached already 310-320 Bln. Pcs. and expected production volume in the current year, the tobacco market is being fully covered with the local products. The volume of the produced and sold goods is stipulated only by the demand of the consumers. The acute question emerged of the overproduction of the cigarettes, of the competition and of the surviving of the particular enterprises. Structure of the demand of the smokers also changes quickly=A1=AAin recent = 10 years the production of papirosa was reduced 2 times, and the same time the volume of production of the filter cigarette is being increased reaching the almost half of the total production volume. Annual grow incomes of tax payments from the tobacco industry to the budgets of all levels. Only in the period from 1997 to 1999 they increased 3 times. Modernization of production facilities and the stable increase of the volume, improvement of the quality of cigarette is being done mostly by Russian and foreign investments to local tobacco industry. From the beginning of 90th totally 2 Bln. doll. US has been invested to the tobacco industry. The import of the cigarettes to Russia has definite trend to decrease, from 1997 to 1999 import decreased more than 3 times. The decrease of the import of cigarettes, which usually more costly than local ones, is stipulated not only by relatively low purchasing capacity of the population, but also by the continues grow of the production volumes of the local high quality cigarettes, including ones with low tar and nicotine contents, which are not worse than import brands. This brands are: "21 century", "Emperor", "Golden Ring", "Java Golden", "Peter I", "LD" and others. Besides that in Russia few years before began and is successfully growing the local production of the international brands as "Magna", "Pall Mall", "Dalllas", "Bond Street", "Marlboro" and others, which makes importation of them unsuitable. Thus the Russia tobacco market according to the results of the year 1999 consisted of 150 Bln. filter cigarettes, from which 128 Bln. were made in Russia, others=A1=AAimport. The rest of the market share was occupied by non-filter cigarette i.e. 130 Bln. pcs. and more than 15 Bln. pcs. of papirosa. For producing of 270 Bln. of the cigarette is to be used not less than 240 thousand tons of leaf tobacco, the crop of leaf tobacco in Russia in the recent years is not more than 1-2 thousand tons and it mainly from the former Soviet republics dropped drastically. At the same tine considerably increased the import of tobacco froma abroad=A1=AAi.e. from Greece, Turkey, China, India and other counties. So if before the beginning of 90th Russia imported the cigarette and tipping paper, acetate filters, aluminum foil and other materials of various kinds and characteristics, the acetate fiber for the filter manufacturing is being produced, a number of the factories have free choice=A1=AAto buy the materials either locally or from abroad. To the group of the biggest factories belong such enterprises as "Petro" and "Nevo-Tabak" in St. Petersburg, "Philip Morris-Izora" in Leningrad province, "Donskoy tabak" in Rostoy-on-Don, "BAT=A1=AAYava" and "Liggett=A1=AADukat" in Moscow, "Balkanskaya Zvezda" in Jaroslavl, " "BAT=A1=AASaratovskaya tobacco factory" in Saratov, " Krasnodartabakprom" i= n Krasnodar and number of other enterprises. All factories situated in Russia belong to two categories=A1=AAfactories wi= th foreign investments and without foreign investments. In present time more than 10 factories and works are controlled by foreign firms. In conditions of the severe competition on the market, Russian tobacco industry has to solve the extremely difficult tasks, the most import from which being the improvement of quality of the local tobacco products together with the considerable cutting of production costs. That needs big investments for technical re-equipment and introducing of the new technologies. Using own and foreign sources of financing the factories in the first place make the reconstruction of the primaries, install the modern equipment, which enable to provide the most effective technological process with the reasonable costs, and also in considerably short time to refund this costs. The equipment for sauce and aroma are being brought into the technological circle which considerably facilitates the possibilities for the manufacturing of the new products. The cigarette factories---members of the Association pay great attention to the improvement of quality and safety of the tobacco products. For this purpose by every factory---member of the Association the long term programs were developed and the complex measures are being implemented which enable to reduce tar and nicotine contents in the cigarettes to the levels stipulated by the Ministry of health of the Russian Federation. Due to the introducing of new technologies in recent years the average tar and nicotine contents in Russian cigarettes considerably dropped. All brands manufactured now by the factories=A1=AAmembers of the Association meet the requirements of the Ministry of health and more strict norms for the future are being considered. At the same time, the Association, being concerned of the health of the nation and of the safety of it's genetic fund, supports the initiatives of the deputies of the State Duma on banning of the sale of the tobacco products to under aged persons, sale by automatic machines, sale in the organizations of the health=A1=AAcare, education, culture, sport and a numb= er of the other measures. Despite the fact, that all tobacco enterprises are joint stock companies, i.e. in fact private enterprises, the state provides the policy of regulation both in the sphere of the wholesale. Such policy is conducted by determination of the excise-taxes, import taxes for tobacco goods, requirements for the obligatory certification of these products, putting on the products of the special stamps, licensing of the import of leaf tobacco and tobacco goods, licensing of the activities on the production and wholesale turnover of the tobacco goods, and also issuing of the regulations, including state standards for tobacco goods. And now, in conclusion allow me to briefly tell You about the members, charter, aims and tasks of the association of the producers of tobacco goods "Tabakprom". The non-commercial non-government association of the producers of the tobacco goods "Tabakprom" was established on the initiative of the Russian cigarette factories in November 1996 with the purpose being to protect rights and represent the interest of the producers in the state ruling and administrating bodies, and in public organizations. The main directions of the activity of the Association are relations with the state Duma, Government, Ministries and departments, solving of the problems with taxation on local and import products, levels of tar and nicotine contents in the cigarettes and number of other questions which are put by the Board of directors and the members of the Association. The number of members of the Association grow every year. In present time the Association already includes 23 cigarette factories, including 6 ones with foreign capital and 2 enterprises: printing factory for production of packs for cigarettes and factory for production of the expanded stems, which is in fact the enterprise with foreign investments. Many factories express the wish to be admitted to the Association. Enditem SOURCE BY: TobaccoChina Online dispatch from Amsterdam, June 16 From rob@essential.org Tue, 27 Jun 2000 10:07:56 -0400 (EDT) Date: Tue, 27 Jun 2000 10:07:56 -0400 (EDT) From: Robert Weissman rob@essential.org Subject: [Intl-tobacco] Australia: Anti-smoking spending drags behind other drug campaigns Anti-smoking spending drags behind other drug campaigns Source: Sydney Morning Herald, Monday, 6/19/00 The Federal Government spends $112 on anti-smoking measures for every death from tobacco-related diseases - a thousand times less than the $118,571 per death spent on anti-drugs campaigns. Anti-tobacco spending is also dwarfed, in terms of the number of deaths, by money devoted to the black-spot road safety program ($419, 619), AIDS control ($264,706), breast cancer ($20,172 ) and preventing falls ($1,438). These figures are in an article published today in the Medical Journal of Australia by Associate Professor Simon Chapman, from the Department of Public Health and Community Medicine at the University of Sydney. Professor Chapman, who is chairman of the campaign group Action on Smoking and Health, attacked funding for tobacco control as "appallingly neglected" and said it was at a historic low. "Ill-informed views that robust tobacco control will rapidly strangle the goose that lays the annual $5 billion golden egg of tobacco excise" appeared to have slowed any progress in tobacco control, he said. Tobacco controls were allocated $3.8 million in the 1998-99 Federal Budget. Professor Chapman said the Government was likely to get a $400 million windfall because of a change to the tobacco tax system lobbied for by the Australian Cancer Society, but none of this money had been committed to smoking prevention. But a spokeswoman for the Health Minister, Mr Wooldridge, said tobacco harm minimisation funding had been introduced by the Howard Government. She said it was wrong to speak of a "historic" low in spending, even if follow-up funding was not as high as the initial funding. The "very successful" Every Cigarette is Doing You Damage advertising campaign had reduced the number of smokers and new advertisements were going to air, she said. The chairman of the Australian Cancer Society's Tobacco Issues Committee, Mr Mike Daube, said Australia lagged behind other countries in its commitment to tobacco control. "Until we commit a serious amount of money to tobacco control, the costs in terms of deaths, disease and the economy will continue to rise," he said. From rob@essential.org Tue, 27 Jun 2000 10:09:27 -0400 (EDT) Date: Tue, 27 Jun 2000 10:09:27 -0400 (EDT) From: Robert Weissman rob@essential.org Subject: [Intl-tobacco] Who's Funding The Fight Against The Smoking Ban In B.C.? (fwd) Who's Funding The Fight Against The Smoking Ban In B.C.? by Darlene Heidemann Source: BCTV, Thursday, 6/15/00 Remember the smoking ban that was recently lifted from all the bars and pubs in the province? The Worker's Compensation Board is trying to get that ban re-instated. And public hearings are being held around the province landing this week in Prince George. But in the middle of it all questions are being raised about who's funding the fight against the ban. Could big tobacco be involved? Darlene Heidemann, reporting: "The tobacco industry says it is staying out of the smoking ban battle-between B.C.'s Worker's Compensation Board and the hospitality industry. But now cigarette manufacturers admit to funneling $800,000 a year into a program run by the Canadian Hotel Association." Rob Cunningham, Author of "Smoke and Mirrors: the Canadian Tobacco War": "The tobacco industry has a long history of using front groups in Canada for opposing smoking restrictions through other organizations. In the 1980's and 90's they used a group called the Smokers Freedom Group." David Laundy, Canadian Tobacco Manufacturers Council: "...The hotel's association is saying it's not going to the WCB fight and I have to believe them. (Is there anyway to track the money?) I don't know, I'd have to contact the group that runs it." Darlene Heidemann, reporting: "The program is called "Courtesy of Choice". So far it has received 3.2 million tobacco dollars. B.C.'s hospitality industry can access the money and everyone involved denies the fund has anything to do with the fight against the smoking ban." Vance Campbell, Coalition of Hospitality Organizations: "The group that speaks on behalf of all the organizations has not taken any money from tobacco. (You say your umbrella group has not, what about individual members?) I don't know." Darlene Heidemann, reporting: "Since January, many of the same owners fighting the ban have installed cigarette vending machines following a marketing push by tobacco companies." Nick Losito, Vancouver-Richmond Health Board: "Talking to somebody within the industry, it sounds like it was a January to March or April program - an aggressive marketing campaign - this year right around when the WCB's smoking ban was supposed to come into place." Darlene Heidemann, reporting: "And there's another connection between Vance Campbell's Association and the Courtesy of Choice program. Both have hired the same PR consultant - a man by the name of Tim Crowhurst who has been doing a lot of work behind the scenes." Vance Campbell, Coalition of Hospitality Organizations: (There is no other connection other than the advice of a media consultant...We hired the firm for its expertise.) Rob Cunningham, Author: "We don't know exactly what the money has been used for - we think the tobacco company...and a ventilation alternative." Darlene Heidemann, reporting: "Tobacco kills and now the question is "Is tobacco money killing the hospitality industry's arguments against the WCB and its ban"." From rob@essential.org Tue, 27 Jun 2000 11:07:01 -0400 (EDT) Date: Tue, 27 Jun 2000 11:07:01 -0400 (EDT) From: Robert Weissman rob@essential.org Subject: [Intl-tobacco] Japan Tobacco looks abroad Smoke Alarm / The world's third-largest cigarette maker, Japan Tobacco, now looks to Asian markets for future growth. But is its staid management up to the challenge? by Chester Dawson / TOKYO / Issue cover-dated June 22, 2000 Source: Far Eastern Economic Review, Thursday, 6/15/00 STARING OUT of a window on the 33rd floor of the Japan Tobacco building, which towers over Tokyo's main government district, Masaru Mizuno surveys the heavy clouds blocking the view of Mount Fuji southwest of the city. "You can't see very far when it's overcast," says the company president, who's soon to become chairman. "It's like the Japanese economy." The same can be said of Japan Tobacco, which faces a hazy future despite its commanding position in its home market and the purchase last year of RJR Nabisco's international tobacco operations. A slumping stock price shows the former state-run monopoly faces plenty of problems. Chief among them: Profits have stagnated, forcing JT to trim its payroll and close factories at home in order to streamline operations. Moreover, Japan's population of smokers is expected to peak by 2007, in line with the overall population. More importantly, concerns about antitrust violations prevent JT from expanding its dominant market share in Japan. These constraints have forced the staid company, a haven for ex-bureaucrats that was established by government charter in 1898, to plot a radical new course. "We don't have any choice but to go abroad," says former tax-agency head Mizuno, 67, who began smoking in earnest only just before his appointment as president in 1994. "Our new focus is on Asia and other international markets." For an inward-looking workhorse like JT, morphing into a global warhorse presents a big challenge--but perhaps not an insurmountable one. That's because the company is seeking its fortunes in other national markets in Asia--the tobacco industry's most fertile region for growth and one where JT already has a limited presence. What's more, it has reinvented itself before. In 1985, the company was privatized and forced to compete on its home turf after Japan's cigarette market was opened to imports. Since then, it has ceded only about 25% of the market to the likes of British American Tobacco and Philip Morris. JT's marketing prowess and reputation for high quality enabled it to hold its own at home and establish strategic toeholds in South Korea and Taiwan, where it has intentionally grown slowly to avoid trade friction. A huge war chest also helps. A year ago JT paid $7.8 billion in cash for RJR Nabisco's tobacco business outside the United States--the biggest-ever foreign acquisition by a Japanese firm. It made JT the world's third-largest tobacco company with about 8% of the global market. The deal secured three key brands: Camel, Salem and Winston. Terrence Oliver, head of the Tokyo office of international brand consultancy Interbrand, says that was a smart move, because smokers are becoming more brand-conscious. Indeed, annual sales of so-called global brands are increasing at about 5% a year, compared to the average 1% growth in overall cigarette sales. The deal also gave JT an established position in the former Soviet Union and Eastern Europe. But the Pacific Rim is where Big Tobacco sees its future. The region accounts for more than 40% of the $330 billion in annual global cigarette sales and two of the world's largest cigarette markets--China and Japan. Mizuno says JT is initially targeting Southeast Asian nations such as Malaysia, Singapore and Thailand for a marketing push to expand sales of its flagship Mild Seven brand. By far the biggest market, however, is right next door in China, which consumes 1.7 trillion cigarettes a year. The Chinese government's tobacco monopoly severely limits inroads by foreign cigarette makers, but that's expected to change once the country joins the World Trade Organization. The state-run China Economic Times reported in May that domestic cigarette brands "could lose 10% to 20% of their market share within five years" of the country joining the WTO. As a first step, JT reached a deal last year to consign production and sales of Mild Seven in China to Shanghai Gaoyang International Tobacco. Though company officials are reluctant to talk about China strategy, they hint that JT may eventually invest in a joint venture--something that's currently prohibited in China's tobacco industry. "If China becomes a member of WTO it will create new opportunities for us," Mizuno says cryptically. Of course, major players like British American Tobacco and Philip Morris, which each have roughly 15% of the world market, also want to expand in China. And as it squares off against these rivals, JT must contend with the vicissitudes of far-flung markets to a greater extent than ever before. Mizuno says overseas operations, which in volume terms made up about 5% of total cigarette sales before the purchase of RJR's international business, now account for closer to 40%. Oddly, though, Mizuno insists that "nothing has changed" in terms of day-to-day management at the company's headquarters since the takeover. That could pose a problem in future: Success abroad will depend on JT's managerial moxie, which some observers say is in short supply, especially when it comes to foreign markets. "They've done a very good job close to home, but not so good further away," says James Sculley, president of Philip Morris's unit in Japan. While Mild Seven has made inroads in Asia, it has failed to sell well in Europe and America. Managing JT's newly acquired empire will test the acumen of Katsuhiko Honda, who takes over as president when Mizuno becomes chairman later this month. Honda, 58, won kudos within the company for spearheading the negotiations with RJR Nabisco. He will be the first nonbureaucrat to rise through the JT ranks to the top job since the company was privatized 15 years ago. But he has got his work cut out for him. In fact, JT came under heavy criticism in the domestic media for paying too much in the RJR deal, which was concluded just before sales tanked in Eastern Europe and Russia. Company officials admit the transaction was ill-timed and has weighed on earnings more than anticipated. In May, JT posted a 32% drop in group net profit to Yen51 billion ($475 million) for the year to March 31 on sales of Yen4.4 trillion. It projects profit will fall to Yen35 billion in the current year. Even those numbers may prove optimistic because of a downturn in European sales due to factors such as higher cigarette taxes in Germany. "I'm sceptical about their forecast," says Keiko Sasaki, an analyst at UBS Warburg (formerly Warburg Dillon Read), who rates the stock a "hold." Still, JT enjoys some clear advantages at home over other big tobacco companies that could cushion the blow from any missteps abroad. For one, its majority shareholder has few complaints. That's because the company is two-thirds owned by the Finance Ministry, which views it as something akin to a sacred cow for tax revenue. The firm also has the support of heavy-hitting politicians in Japan's ruling party; they recently gutted a Health Ministry plan to halve the number of smokers in the country by 2010. Then there's the Japanese legal system, which frowns upon class-action suits. JT officials say they are not interested in insuring the company against legal action, citing a flawless record in court. That's one reason why some investors consider JT a safe bet. Another is its projection for a sharp profit upturn in the coming years. A business plan released in February commits the cigarette maker to wringing out a profit of Yen140 billion from sales of Yen4.8 trillion by the year ending in March 2005. Bullish analysts say those goals are achievable thanks to JT's stable of world-class brands and the industry's high profit margin. "We believe they can make it work," says Morgan Stanley Dean Witter analyst Taizo Demura. For that to happen, though, JT will also need contributions from its loss-making food and drug units. It is now pouring money into biotechnology research to develop strains of genetically modified rice and, not without irony, a drug for lung-cancer treatment. Yet JT's track record for noncore investments is mixed. Previous forays in the 1990s included such flops as mushroom cultivation and a sports-club venture. JT officials admit that changing the company's corporate culture enough to allow it to become a thriving global player won't be easy. As Mizuno notes: "Even changing our company's name would require an amendment of law." From rob@essential.org Tue, 27 Jun 2000 11:25:40 -0400 (EDT) Date: Tue, 27 Jun 2000 11:25:40 -0400 (EDT) From: Robert Weissman rob@essential.org Subject: [Intl-tobacco] Marlboro man races east (to Bulgaria) from tobacco control Marlboro man races east from tobacco control Source: UPI, Monday, 6/26/00 Monday, 26 June 2000 12:40 (ET) SOFIA, Bulgaria, June 26 (UPI) -- The Marlboro man's ride into Bulgaria is among the latest signs that major cigarette makers are racing into Eastern Europe before the European Union's expansion and international anti-smoking campaigns lead to stricter tobacco laws. Marlboro-producer Philip Morris and other tobacco giants today are taking advantage of the region's emerging consumerism, apathy toward smoke-free lifestyles and health regulations that fall short of western standards. The World Health Organization says aggressive marketing and advertising in developing countries is creating a "tobacco iron curtain" that separates regions such as Eastern Europe from Western Europe and the United States. An EU plan to ban tobacco advertising next year, for example, will have no effect on non-EU countries such as Bulgaria, Slovakia, Ukraine and Romania. Most of these former Soviet satellites have applied for EU membership, but acceptance is still years away and there is little if any domestic pressure for smoking laws. Smokers in Eastern Europe face fewer restrictions in restaurants, offices and schools than in the West. According to a World Bank report, Bulgarian schools do not restrict smoking and Romanian children can legally buy cigarettes. Tobacco laws are especially lax in Ukraine, where smoking is allowed even on public transportation. In this environment Philip Morris recently launched sales of Marlboro cigarettes, the world's most popular brand. Cartons appeared on store shelves overnight in cities across Bulgaria. Strong demand was reported immediately "irrespective of prices," according to a Sofia newspaper. Marlboros have been sold on the Bulgarian black market for years, but the legal packets are advertised as fresher and more flavorful. Philip Morris says it has cornered a dominant share of the tobacco market in several parts of Eastern Europe. For example the company says it controls 33 percent of the market in Poland, 53 percent in Slovakia and 79 percent in Czech Republic. Another big player in the region is BAT, which aggressively advertises its Lucky Strike brand as "real American" cigarettes. Tobacco companies say they're working with Eastern European governments to protect the public. Philip Morris, for example, says it helped Estonia create the Baltic country's first tobacco-industry marketing code. Nevertheless Eastern Europe's demand for cigarettes is one reason why a WHO report two weeks ago predicted a global increase in smokers to 1.6 billion by 2020 from 1.2 billion today. A World Bank report says by 2020 seven out of every 10 people who die from smoking-related illness will be in low- to middle-income nations. The surge in smoking -- and subsequent health dangers -- prompted the EU, WHO, World Bank and other international agencies to begin shaping so-called "tobacco control" policies in the past year. Under review are large-scale policies such as regional advertising bans, tax increases and tobacco-growing restrictions. The proposed EU ban on advertising would remove cigarette ads from billboards and magazines. Only point-of-sale ads and so-called "business-to-business" promotions would be allowed in the 15 EU countries, most of which already restrict tobacco ads. The WHO-funded Collaborating Centre on Tobacco at the Karolisnka Institute in Stockholm is focusing on training Eastern European health officials to combat smoking with education and regulation. Among other measures, the World Bank is pushing for higher cigarette taxes. It says a 10 percent increase in taxes in 1995 would have spurred 40 million people to quit and save 10 million lives. The call for tobacco control is getting louder, particularly in Europe. In October, the subject will be debated for two days at a WHO-sponsored public hearing in Geneva, Switzerland. It's being billed as history's largest gathering of representatives from the tobacco industry, anti-smoking groups, health agencies and governments. Yet the industry's push into Eastern Europe is not expected to soften. Industry documents obtained by WHO include this statement from a BAT executive speaking about the region's potential for sales growth: "Obviously there is enormous potential in these countries. I would say that the demand for Western cigarettes is insatiable. It's a fantastic opportunity for everybody... in any number of countries." From rob@essential.org Wed, 28 Jun 2000 11:17:42 -0400 (EDT) Date: Wed, 28 Jun 2000 11:17:42 -0400 (EDT) From: Robert Weissman rob@essential.org Subject: [Intl-tobacco] Brazil Co. Made To Pay Cancer Bills (fwd) Brazil Co. Made To Pay Cancer Bills by Stan Lehman / Associated Press Writer Source: AP, Tuesday, 6/27/00 Tuesday, June 27, 2000; 5:36 p.m. EDT SAO PAULO, Brazil =96=96 Brazil's largest cigarette manufacturer must pay t= he medical bills of a terminally ill cancer patient who said he contracted the disease by smoking the company's cigarettes for 27 years, a judge said Tuesday. Pending the outcome of a $2.5 million lawsuit filed by 42-year-old Joao Lopes Lamenha Lins, the Souza Cruz tobacco company must front $27,500 to cover the cost of treating Lins' lung cancer, Judge Henrique Gomes de Barros Teixeira said. Teixeira issued the ruling last week in Maceio, a city 1,200 miles northeast of Sao Paulo. The company can appeal his decision, he said. Souza Cruz, which is owned by British conglomerate BAT Industries, said it would not comment until it had been officially notified of the ruling. "Lins presented sufficient evidence linking his cancer to the habit of smoking, which he was persuaded to do by misleading advertisements showing smokers as healthy, virile and successful individuals," the judge said. In May, the government sent Congress a bill to ban cigarette ads from television, radio, newspapers, magazines and billboards. Tobacco companies also would be prohibited from sponsoring many events, including an annual jazz festival and the Formula One and CART auto races. Brazil, an important tobacco grower that for years ignored the anti-tobacco movement abroad, has recently stepped up efforts to curb smoking, banning it in public buildings and on domestic and international flights. Some states have filed suits in U.S. courts against American tobacco companies to recover money spent in treating smoking-related diseases. Rio de Janeiro and Goias states are seeking at least $5 billion each. From rob@essential.org Wed, 28 Jun 2000 15:45:02 -0400 (EDT) Date: Wed, 28 Jun 2000 15:45:02 -0400 (EDT) From: Robert Weissman rob@essential.org Subject: [Intl-tobacco] Russia's Parliament Bans Smoking in Parliament Russia's Parliament Bans Smoking Source: AP, Wednesday, 6/28/00 Wednesday, June 28, 2000; 3:08 p.m. EDT MOSCOW =96=96 Citing tobacco's health risks, Russia's lower house of parliament voted Wednesday to ban smoking on its premises. Russia is one of the world's most smoker-friendly countries, and smokers can often be seen lighting up in parliament's offices, halls and stairwells. The resolution passed in the lower house, the State Duma, by a vote of 290-72 with three abstentions, according to the Duma press service. The bill cited the need to "promote a healthy lifestyle and increase labor productivity," the ITAR-Tass news agency said. However, nationalist lawmaker Alexei Mitrofanov claimed the measure had a political thrust. He called it "part of a larger campaign against Western tobacco monopolies that control the Russian market," ITAR-Tass said. Smoking in Russia is allowed almost everywhere other than on public transportation. More than 50 percent of Russians smoke, and doctors cite the high rate as a reason for Russians' low life expectancy. From rob@essential.org Wed, 28 Jun 2000 15:46:51 -0400 (EDT) Date: Wed, 28 Jun 2000 15:46:51 -0400 (EDT) From: Robert Weissman rob@essential.org Subject: [Intl-tobacco] Canada to require grotesque new tobacco labels (fwd) Canada to require grotesque new tobacco labels by Randall Palmer Source: Reuters, Wednesday, 6/28/00 Wednesday June 28, 3:12 pm Eastern Time OTTAWA, June 28 (Reuters) - Smokers in Canada are to be confronted with grotesque depictions of cancerous tumours, sexual impotence or other afflictions under tobacco packaging regulations the government says are the toughest in the world. Health Minister Allan Rock said on Wednesday the regulations requiring graphic health warnings, which he proposed in January, have now become law and will take effect for most tobacco products next January. ``Canada is the first country in the world to implement such strong labeling and reporting measures,'' a statement from his office said. The warnings will have to cover the top half of the fronts and backs of the tobacco product packs and will feature a text warning -- like ``Cigarettes Cause Mouth Disease'' -- alongside a graph or photo, for example of rotten gums and stained teeth. Another of the 16 different warnings features a drooping cigarette next to the warning: ``Cigarettes may cause sexual impotence due to decreased blood flow to the penis. This can prevent you from having an erection.'' Cigarettes sold in Canada already carry warnings but smaller and on a voluntary basis because of a 1995 Supreme Court ruling. The United States became the first country to impose a mandatory health warning on all cigarette packs, but the label takes up less than 20 percent of the pack and is on the side. Bills to implement measures similar to Canada's have been held up in the U.S. Congress. ``Canada has set an example that we need to follow in order to protect the health of millions of American citizens,'' Senator Frank Lautenberg, a co-sponsor of one bill, said in a statement in Washington. ``It's time for Congress to stop letting the tobacco lobby's money dictate national policy on what amounts to a serious public health hazard.'' The Canadian measures, which became law on Monday, were almost certain to face legal action but it was not clear that this would delay application of the rules. ``More than likely there will be a court challenge, for sure,'' Marie-Josee Lapointe said for the Canadian Tobacco Manufacturers' Council. But Ottawa says it is comfortable it is operating within the guidelines of the 1995 Supreme Court decision. That ruling struck down a government ban on tobacco ads and said it was unconstitutional to require unattributed warnings. The new regulations attribute the messages to the government department Health Canada. ``The Supreme Court of Canada has given us some pretty clear guidance,'' Health Canada spokeswoman Lynn LeSage said. The requirement to start the labeling in January applies to an estimated 98 to 99 percent of the market -- any brand with 2 percent or more of the market. The smallest players have until next June to comply. Imperial Tobacco Ltd., a wholly owned unit of British American Tobacco (quote from Yahoo! UK & Ireland: BATS.L) of Britain, holds 69 percent of Canada's tailor-made cigarette market. Rothmans, Benson & Hedges is the No 2 maker. It is owned 60 percent by the Canadian firm Rothmans Inc. (Toronto:ROC.TO - news) and 40 percent by Philip Morris Cos. Inc. (NYSE:MO - news), the United States' biggest cigarette company. Canada's third-largest cigarette maker is JTI-Macdonald Corp., owned by Japan Tobacco Inc. . From rob@essential.org Thu, 29 Jun 2000 14:40:31 -0400 (EDT) Date: Thu, 29 Jun 2000 14:40:31 -0400 (EDT) From: Robert Weissman rob@essential.org Subject: [Intl-tobacco] ENEWS: EU Ministers Agree on Stricter Tobacco Regulations, Labeling Robert Weissman Essential Information=09=09=09| Internet:=09rob@essential.org ---------- Forwarded message ---------- Date: Thu, 29 Jun 2000 12:21:44 -0400 From: geneb@tobacco.org To: rob@essential.org Subject: ENEWS: EU Ministers Agree on Stricter Tobacco Regulations, Labelin= g This is article number 45430 --------------------------------- EU Ministers Agree on Stricter Tobacco Regulations, Labeling by Adrian Cox EUROPE; Source: Bloomberg News, Thursday, 6/29/00 Brussels, June 29 (Bloomberg) -- European Union health ministers approved a= cut=20 in the tar content of cigarettes, tighter rules on cigarette labeling, and= =20 larger health warnings on packs, such as ``Smoking is deadly'' and ``Smokin= g=20 leads to impotence.'' The ministers agreed to enlarge health warnings to cover 25 percent on both= =20 sides of the pack, higher than the current 4 percent, although lower than a= =20 measure voted on by the European Parliament earlier this month that called = for=20 35 percent on the front of a pack and 45 percent on the back. ``Tobacco must be regulated through a responsible manufacturing and marketi= ng=20 policy,'' said David Byrne, European Commissioner for Consumer and Health= =20 Affairs, adding that ``the appalling and entirely preventable death toll fr= om=20 smoking'' claims one European life a minute. Smoking kills half a million EU citizens a year and is the single biggest= =20 preventable health threat to Europeans, according to the commission, the EU= 's=20 executive arm. Almost 30 percent of Europeans are regular smokers. Ministers voted to ban phrases such as ``low tar,'' and to lower the maximu= m=20 tar level to 10 milligrams per cigarette from 12 milligrams and set a=20 1-milligram ceiling on nicotine content. Germany opposed these measures, but was outvoted by a majority of countries= in=20 the 15-nation bloc, according to a U.K. spokesman. Luxembourg, Austria and= =20 Spain abstained. The proposal needs to be agreed by the commission before returning to the= =20 parliament for final approval. =A92000 Bloomberg L.P. All rights reserved. Terms of Service, Privacy Polic= y and=20 Trademarks.=20