Tobacco Documents Online

- 10 - there are strict rules. Only two posters in shot, bearing the house name not the brand. Although sponsorship isn't covered by the current negotiations the industry suspects its television days are numbered. BAT is already looking to.the future when TV pictures may come not just from powerful ground stations but from satellites in the sky. As advertising bans, tend to fall unevenly on countries within regions, companies should explore the opportunities,to co-operate one with another by beaming TV and radio advertising into albant country. Ohr*iously the!political risks of this action must be weighed.up a2id treated with prudence." JOE CALIF'A?70: FII2i of address - The invitation to come to vhere the f lavour is is a ticket to a cancer xa_rd. P.T: In America the industry lies most deepl7 entrenched. Health Hter-Joe Califano was its most.bitter opponent. JOE CALIFANO't We can expect that the tobacco industry will do everything in its power to counteract our public health efforts.. P.T: This was his last attack, launched at the fourth world conference on smoking- and health in Stockholm last June. The. enemy was in the audience, agents of a special ICOSI task force. One of them wrote a concluding memorandum. D:..!~=st Bruckner of the Verband in Hamburg. In his memorandum he first rerieved the anti-smokers strategy and, in particular, their intention to attack smoking as an. anti-social habit, an area in which the industry knew it•vas vulnerable. "It was just a confirmation of our ovn analysis that the social acceptability issue will be the central battleground on which our case will be lost or von." This is the central battleground, America, birthplace of tobacco, home of the modern cigarette. Here the industry faces war on all fronts. It3.most serious threat a defection amongst America's smokers. 'Long encouraged to believe that smoking was manly, they're now being told its a di.-ty, nasty BAT CO LTD - MINNESOTA TOBACCO LITIGATION If C / ~' ~~~°~/ 0 4 ,~,~--.* N-A

habit. But the indus :~p is fighting back will all the weapons at its disposal. The first attack comes from legislation sweeping America banning, for example, smoking in restaurants. Here in Annapolis, Maryland, as in.dozens of cities, smoking in public places has become a political issue. The Marylaad-Senat'e is eurren.-t].y revieving anti-smoking legislation. In the shadov of the Senate House the industry1s lobbyists report back to base. Paul McHen.rFss job is to put out brush fires. The7lre breaking out in the county next door. ' - FII?f of McHenrT - on +phone. PASR: MeHrHRY: ,,.. House Bi17.1511...Montgomery County's been introduced -srhich would mandate a self-extinguish__ing_cigarette and a self- extinguishing cig-a= ...such a thing could ever be nade....(on phone) -- :,; __ The industrp.:has.a_huge pay roll of Hc3ea;ys. This Senate _ Committee is now considering legislation_uhicYL would force restaurants to proPide non-smoking areas. The iadustx-jr=s most •militant opponent is GASP - Group Against Smokers Pollution, to the industry-enemies_of freedom, P.Mc: If you or I or my party, your party are goin.g into dinner we really don't segregate ourselves according to smoker and non- snoker, that's why the no smoking zones go unuaed. Don, t condemn our product, let each guy choose hiaself what he wants to do. •There1s plenty of health warnings on cigarettes. Nhat cigarettes do for people, I eariIt tell you itts good•for you, I' can't tell you itts bad for you,•but at least itts a matter o- choice. P.T: ~ ~ The indust:yts most daunting opponent is John Banzha.f of Action on Smol:ing and_Health, pioneer of the kind of legislation now before the Ma---yland Senate. OFFICIAL: - FILM of address - Your name is spelt B A?I Z H A F, sir. JOHN BANZHAF: B A N Z H A F, the man from Ash. OFF: The ny-= -: om .ish, okay, sir. )BA.T Co LTD - MINNESOTA TOBACCO L,ITIGATION J W O C MN 04314. ~'~"`

. J. 3: . In any case, this growing desire for non-smoking rights has, I say, translated itself into some 38 states and several hundreds of cities and counties and towns, passing these kind of restrictions. The non-smokers rights movement reminds smokers that their smoking is anaoyiag and irritaang to the great majority of people around them.' 40MAX: (Holding glass 3ar) May be thiz will help firm up your attitude this week because this is kind of what your lungs look like, of course it doesn't have the actual butts in it but this black gook, as we call it in Smoke Enders, is really....(FILM fades) P.T: Second attack,.Smoke Eadejr.s._- The}i help addicts kick the • 'habit.-Theyase ~ver''100,000_gcadaates,snd claim a success rate of 70%. Not surprising at 300.dollars for eisht lectures but at least -•_y.ou,-ean aaoke for the f irst five. -dnd-bigg business is nov signing up too. The.list reads like the Dow Jones top 20.• All was vell until--goverssa,ent -joiaed_the- queue._ _. The___VS Depar tment of Healt.h Edncation k Welfare.--• .-It offered- to subsidise its employees to attend the Smoke Fnders course, industry flexed its political muscles. Itta one of•the most.powerful lobbies on Capitol Hill, controlling a netvork of Southern politiciars whose interests coincide with its own. Behind the scenes the indust2yts lobbyists got to work, they had words in the e ar s of their favrosy ite tobacco eongressmen. A eon::dent:ai industzy source explained what happened when the congressmen vent to work. The government subsidy was Smoke Enders Achilles heel. "Our lobbyi..sts say our congressional people have been assured that E.E.X. will end the programme. Reason: because our people have been putting the heat on. They insisted- E.E.X. employees must file rri.th the Internal Revenue Service about this benefit. It seems E.E.X. may •throv its hands up and say to hell with it." U P.T: I showed Jpquie Rogers, Smoke Enders founder, vhat the source had said. She d idn't know•why the programme had been stopped. She• %.as surprised and ang:-y at what she read. BAT Co LTD - MrrrNESOTA TOBACCO LITIGATION W ~ UTJ!  l 1 l 043238

JAOUL ROG"sRS: I1m Just...there's no way that I here in Philipsburg, New Jersey can fight the tobacco lobby. It's outrageous but Ilm not so naive to think tha' they're going to act reasonably when economics ss- are involved. P.Ts Third attack. In this building is an office of Leo Burnett, one•of the world's biggest advertising agencies. Last year they launched a new campaign for an old client. -"Can you name a lif e insu_^ance company that gives you : a discount just for being healthy?• -"Yes, Allstate Life...." "Onr gllstate ageat•already gives me a discount on home owners ,.. . .._. -3iisiu•aace: -' hcv vith their -nev Hea3thr Ameriean Plan he t s giving me a discount on life insurance tcos I dontt smoke and I p`assed the Healthy American physical:" '(Isiffier]It to hear) __To the industry :his networked ad xas a threat. Four d-ays before the first commercial hit the air there vras a pre-emptive strike. Tobacco g:owers in North Carolina accused AZ].state, of discrimination. -- State Y.r.su.^x:nce officials-anubunced an investigation. Allstate,• vhotd kept their campaign a close secret, were amazed at the leak, although they knew the industry had S:iends. ROBERT S%ILER: (Allstate) They have employees and people on retainer in most of the states to watch for things that are developing that might be inimicable to their interest, so I suspect they found out about it in the course of the film being shot. But, in fact, theT, told us where it was filmed which was something I did not k'now myself but I wouldn't necessarily have to know in ary job. . P.T: ' But the people whose Job it was to know about Allstate's campaign was its advertising agency Leo Burnett. Someone in Bu.rnettWS tipped off another client, Philip Morris, breaking the cardinal rule that a client's account is confidential. Philip Morris' Marlboro;•.cowboy, the most successful campaign in advert- ising hi3tory, was invented by Leo BurnetL,,perhaps cigarettes were more important than i.nsujance: This is a letter that BAT Co LTD - IVIINNESOTA TOBACCO LITIGATION J W O CTR 1 ! I l I W`  1w" Amm 1w~' ..~T

passed the leak on, written by senior Yice-?resident of Philip Korris James C.Bovling. It was sent to the Tobacco Institute in iashi: gton end s aids "Dear Bill, the' people at Leo Burnetthave sent us these copies of a new campaign for Allstate Insurance featuring their new Healthy American Life Insurance Plan. I think you, Panser, :%astenbaum, et al, should get together to consider a measure to get this one off. Please keep us posted and let us know if we can feed aaything back to Burnett. Best regards, cordially, James C.Bovling." And so the trail continued from Leo Burnew to Philip Horris, then ti'om-Philip-Horris to the Tobacco Institute and from there - ~- to the 'g:overs izi Nortti Ca'roliaa:='~=•ShortlY•afte:vards dllstat's dropped the ad: `` lttack''~ber four:- The 'tobacco •grovers of J=erica are a poverful political-conatituency. Halt a aillion of them, like Virgil Hi'tchell~ 3cattered acrods the*gseat states of the South,•they plant the3.r seeda~ politicians and presidents reap their votes. Last year this tobacco coalition scored its biggest political victory to'date. Joe Califanoy; scarcely over his Stockholm jet lag, was kicked out of Carterts Cabinet. J.C : ~ The President in terms of myself told me that ..yesterday afternoon that I had done a superb job, to use his words, as the best secreta.-y of H.E.V. but that•the same qualities of leadership and drive that made me a good secreta•.^y created f`ricti•on with certain members of the White House staff. They're telling reporters, according to the newspapers, that theytre concerned about tobacco and the smoking issue and that he had to change the Cabinet around to get ready for the 1980 elections. Y'Ri GII. ?fITCH'..LL: (Tobacco farmer) Nobody liked him, everybody thought he was just meddling, that he was like an old maid school teacher meddling in something that he didntt have no business to meddle in. P.T: r~ The industry couldn't have done better if Yirgilts lines itself. it had written J BAT Co LTD - MrNNESOTA TOBACCO LITIGATION C M~R MN ~~43~40

r e The sign on the hat means - Pride in Tobacco - is that we're proud of our product, we try to in the world and we're proud of it. P.T: grow the best tobacco This was the pride behind Joe CalifanoIs fall. 20 miles down the road from Virgil's farm is the world headquarters of R.J.Reynalds. They gave Yirgil his hat and invented the campaign behind it. They know that farmers with dirt on their hanrSa and tobacco in•their fields are.better spokesmen than smooth-tongued ' executives behind smoked glass windows. Small farmers like Virgil are often used to absorb the initial attack. But in America there is no victory in sight. The smoking habit is beginning.to-die..____ The-izudnstry knows- it-must--expand to survive, to generate: the -wegath •xh.at- fuzla.=its otbier multinational operations. New markets must be von, new battles fought. The Third World is - the -target. --- The•- dndustxy has learnt •from -its--•battles back home:tbat- defence is the-'best form of- attac]c. Already the World ==Health_Orgaaisation=is aouading the=aierm;-=Last year the World Health Organisationts expert committee on smoking control said in its report: "the intern.ational.tobacco iadustryts irresponsible behaviour and its massive advertising and promotional campaigns are diisect causes of a substantial number of uaneeessary deaths. " In the memorandt= he wrote at the end of the Stockholm conference, Dr.B=uckner warned of the new opposition: "By introducing the emotional and political powers of Third World countries the anti-smoking forces have given the fight about the smoking issue a new dimension. Objective: we must try to stop the development towards a Third World eommitment against tobacco. We must try to get a11 Third World countries committed to our cause. Action recommended: it is a fact that tobacco is a Third World cash crop which cannot be replaced by any other commodity. TyPget countries should be made aware of this fact. Then it is possible to encourage the grower countries to form alliances under the silent responsibility of the one of them which is affected the most, for example, Africa - Halawi,. South East Asia- Indoneaia, Latin 'dmerica -Brazil." - (Carnival Scene) - Of all the multinationals new markets Brazil offers the most g1=_te:i=g p-i=e. A r.ation of 120 cillion people, 20 million smol:ers and many more to come. Sao Paulo is a hoarding to BAT CO LTD - MINNESOTA TOBACCO LITIGATION J W O V' TI 4 ! l l 4I 043241

. *** Brazil's prosperity. Cigarettes the symbol of i:s success. Smokingt3 growing as fast as the cities. Last year 135 billion cigarettes. Inflationis running at 70%. Cigasettess 20pence for 20 But . there 's another Brazil, her face smscar. ed by the city. Here high in the mountains to the South, above'the town of Santa Crus, is the wealth that lies in the land: tobacco, the richest h.arvest of all. There used to be food crops in these fields, now there'a only tobacco. Five years ago R.J.xeynolds told this fa_-mer that hetd malce a lot of money if he planted tobacco. He did and he has. E2,000 a year, twice what he made out of'corn and beans. A.L: these people. Ve're dealing with something like 100,000 small tobacco growers. We are also encouraging the rerersal of the urban drift vhich is- beco"ming-a'lv*ery seriosis' grobieei in Brazil. We're encouraging farmers and their families to remain on the land, ve're of!'eziag'thed a cas2T crop`, 'offet-isig export opportunities for their produce. So I believe t hat any reduction, large scale reduction in tobacco growing vould have a very serious impact on P.T: - Hauriao Muller - Tobacco workers union.**+* But, not au farmers agree. Their union representative in Santa Cruz believes that his members'could live without tobacco***; A high price has been paid f or tobacco. This landscape used to be forest. It's gone. Chopped down for fuel for the c•.tring ba..-ns. But the cocpanies are now reforeati?.g the laYd tobacco . has stripped. The companies supply the fa.-aers with everything, including, at cost price, the wood to dry the tobacco in his barn, 'But they give the farmer more than just wood. There's free advice and technical asaistance. The companies also guarantee the loans these farmers need to buy the fertiliser and equipment, without such guarantees they~d•have no credit at the bank. And, most welcome of all, the company gives farmers cash across the counter within hours of bringing their tobacco to the factorp. This study says that the first signs of Brazil becoming a developed country will be seen here in the South, thanks to tobacco. The' tobacco companies say that if the Third Rorld vere to discourage the growing of tobacco both national economies and farmers would suffer greatly. But the farmers I've spoken to here i: Br ac'_1 all say t::at if they couldn't g-ow tobacco they'd +•+++T=anslation given on screen. See end of prog.amme. BAT Co LTD - TVZrNNESOTA TOBACCO LITIGATION W O ~ O N cJl CD C yl ~ / 1 l 7 l ~I 04, ~..'• ~ : / (mx

A - 17 - simply grow something else, although they may not make quite as much money. The fact is that if the Third Vorld were to discourage the gr,oving of tobacco the people who would •suffer in '. the long term would not be the farmers but the big tobacco, ; companies. Santa Cruz and Brazil represent an iaveetment of millions for the multinationals but Reynolds hasn't found the going easy, nor has Philip Norris. Both have lost heavily **s and witekedSouza Cruz, which has been in the country 50 years, increase its market share. But no company is going to let the World Health Qrganisation stand between its izvestment and its profits. What would happen to the town of Santa Cruz, they ask, if tobacco growing- were banned? Wfi0's answer vould be simple: . keep the infrastructure, preserve the -jobs, Just change the end product. Grow fruit, for example, and put it in cans instead , ~ th b k t h k B i u g ve . e farmer e ae - e.. of stripping tobacco for mar up for food he already gets for tobacco. But, what about government revenue, the industry is quick to ask. - A.L: Firstly I could mention the amount of excise and sales taxes that Souza Cruz paid last year, something of the order of , 4500 million, which account for something like 9y6 of the total i tederal tax reventie* - a-verp substeatial 'figu: e. Tobacco exports, " . 300 million. dollars last year of rchich Sossa C:uz contributed j 67 million dollars. The job creation, a very substantial ! importance to the economy. There are a lot of people, apart from the direct employees of the tobacco ird_stry, who are indirectly connected. We calculate them somewhere between 21 ' and ) million people. P.Ts . ~ But, there's another side to the pict-se. This is a lung - cancer operation. ! - FILM of op - In the past 40 years lung cancer deaths in the state of Sao Paulo have increased dramatically. In men ag•ed 40 to 49 they've nearly trebled._. In men aged 50 to 59 they've gone up over seven times. And in the age group 60 to 69 they've gone W O . .~ O _ .. ... N Ul BATCO LTD - IVZINIv-ESOTA TOBACCO LITIGATION i..r TRf f f"i 043102"1`°'f' 3

. = See end of transcript ,a e •• up nearly nine times. Other smoking related diseases are on the increase too. This patient has emphysema - disease is the same in any language. - FILM of.patient with doctor - -*FZLM of doctor with maraa.zine - In the Vest nine out of ten smokers believe eigarettes are .dangerous. They're familiar with the evidence. But in developing countries few are aware of the health ris]cs involved, especially the young. DR.JOSE ROSENHUttGs *** Young people in Brazil begin to smokeearlir today than 10 yeara ago and this is because the massive advertising in television about subject like success in life, glamorous and so on in young people from 12 to 19 years is very receptive to..to this type of - Ad shown - Arizona. P.T: Ia-Brazil fex share the life Arizona has to offer. Millions : crowd the slums of the city, leaving behind their homes on the land. Here they eschange.one.kind of poverty-for another. Spectators of a world beyond their reach. Television and a cigarette bring it closer. - Ad shown - Hollywood. i This is the world of Hollywood too. A Davis Cup qualifyir.g round between Brazil and drgeatiaa brought to millions by eourtesy of Hollywood. Pretty girls, free cigarettes and•lots of exposure on television. Hollywood is Brazills best selling cigarette and one of the worldts top 20. Hollywood is the sign of success. Its motto speaks louder than words.- J j - FIIM of match - i - . Our understanding of the use of the word success associated with Hollywood is that Hollywood is a very successful brand and it is to that we are ='eferring when we use it. W PyT : -- O You think thatIs the way that the consumer sees it? -' A.L: `J - a I couldn't tell you. C:) •• N BAT Co Lm - MrnrNESOTA TOBACCO LITIGATION C" T R M N 0 4322. 4 4

. *** P.Ts - 19 - Xhy do you associate Hollywood with rlamour and success? A.Ls I hardly think..glamour is a very subjective•vord really. P.Ts re not tast cars, surfing, duner buggies involving young A re people, attractive, beautiful people smoking cigarettes, is not that glamorous? A.L: It could vell appeal to the people who are smoking Hollyvood. P.Ts --... ~Lr But I saw Hollywood ads at seven.osclock'in the eveni~g. A:L: - ---. - - - : - I think you're referring to a specific sponsorship which is prov3ded for in the regulatory code. P.T: No,__ve..quite specifically 'do"hot;' Ye .do not appear telev131-0n-tii~-II~IIQ-btc10CSC:.~ _ - Vntil;•airie=os'clockl' on the -IIntil nine o-tclock in the evening. P.T: . A.L: Do you direct your advertising at young people? It was the te: ^.is. Yes, correct, vhich Souza Cruz was sponsoring. But the general rules are that cigarette advertising does not appear until nine osclock so we are advertising to an adult audience,'-:th~t our models...ve vil.l not use models who are under 2-1 years of age and so we are quite specifically not advertising to young people. P.T: • a- Perhaps young Brazilians have got the wrong message. Last year Professor Rosenberg conducted a survey of 5,000 students at the University of Sao Paulo. He found t hat nearly 50~ hado started smoking by the age of 15. The industry knows that the Toung smokers of today are the customers of tomorrow. When I spoke to young people in the shanty near Rio they told me 'that BAT Co j.,Tp - IVIINNESOTA TOBACCO LITIGATION J CTR MN 043245'