[Intl-tobacco] North Korea: BAT confirms plan in North Korea

[robert weissman]

October 19, 2005
The Korea Herald

BAT confirms N.K. cigarette plant



British American Tobacco confirmed yesterday that it owns a cigarette
factory in North Korea but avoided any comment upon human rights issues
raised by a British daily newspaper.

In a written response to a story published yesterday in the British
daily, the Guardian, the company reported that it co-owns the production
plant with a state run firm, the Korea Sogyong Chonyonmul Trading
Company. Their joint venture is called Taesong BAT.

BAT withdrew from Myanmar in 2003 after pressure upon them grew from
human rights organizations and eventually led the British government to
issue an "exceptional" request for them to leave the military state.

The North Korean operation began in 2001 with an initial investment from
BAT of $7.1 million which the company says was "largely for
manufacturing equipment rather than cash." Some 200 people work in the
factory, which BAT said are employed by their partner - it`s illegal for
foreigners to employ North Koreans.

BAT owns 60 percent of the North Korean business, the remaining 40
percent belonging to the state company - an identical ratio to BAT`s
Myanmar firm, Rothmans of Pall Mall Myanmar of which 40 percent was
owned by the military regime there.

BAT denied the factory was a "secret," as portrayed in the Guardian`s
report and stated that they were "neither surprised by the newspaper`s
stance nor the timing." The Guardian is considered to be a left of
center paper in Britain and a leadership contest is currently underway
within the nation`s Conservative Party once led by Margaret Thatcher.
Ken Clarke, one of the leadership contenders is Deputy Chairman of BAT.

A spokeswoman at the British Foreign Office in London said the U.K.
government is continuing to raise the issue of human rights with the
North Korean government.

By David Nicoll