Tobacco Documents Online

ITEM 2 REPORT FROM THE SECRETARY GENERAL 2.1 Overview ofInternationall Issues and Developments - The Secretariat continues to build coverage of inter- national developments and a satisfactory monitoring system should be in place by the autumn. Information on national developments is still very incomplete, but should improve substantially as NMAsand member companies (lead companies, monitoring companies, and international headquarters) respond to the Secretariat's recent formal request for their participation in the information network. The.following overview is based on what are believed to be reliable sources of information. 2.1.1 International organizations The WHO and, the UICC, with aid from their national allies, remain, the most prominent and effective protagonists in the international anti-smoking move- ment. WHO has redefined its strategy and: will concentrate mainly on long-term, decentralized efforts to influence government officials, the medical community, students and the press. They will also apply selective pressure for anti-smoking legislation when asked by Third World governments for aid to health programs. WHO's recommended approach seems to bee changing from pressuring smokers to aiding those who wish to stop smoking and boosting non-smokers' "rights" and morale. They also recommend as much emphasis on health "education" as on legislation, with information campaigns directed not only to smokers who want to quit and non-smokers, but also to young people and women. Observers of the WHO scene report that the agency O acknowledges the industry's economic contributions, but deplores the "lack of a responsible attitude" N mainly with.h regard to marketingg practices in ~ developing countries. ~ . ~ ~ ~ N ~

- 2 - WHO has very good links with regional government bodies (EEC, Council of Europe, Nordic Council) and recently obtained observer status. on the ISO's technical committee that will set standards for measurement of smoke components.. Tobacco was not on the agenda of the FAO Conference last November, nor was WHO represented Information sources close to FAO aree unaware of a study on the economic contribution of tobacco being conducted by them, although the related WHO study on "social costs" is proceeding. The UN Center on Transnational Corporations has apparently reduced the number of planned regional studies on tobacco from five to one (Malawi, with Zimbabwe as an alternate). INFOTAB's advisor has recommended industry cooperation be considered. The World Bank is helping Tanzamia with a leaf tobacco expansion program. The regional scene in Europe is now relatively quiet. It is unlikely that there will be a meeting of EEC health ministers in 1982. On the other hand, the European Commission's recent report on harmonization of taxation highlights the role off taxation as a means to reduce smoking. The Del Duca Report, passed by the European Parliament on March 11, calls for various kinds of steps to be taken by the Commission in "the campaign against smoking". However, it was substantially weaked by amendments. The alleged synergistic effects of asbestos and smoking have been raised in both the EEC (and the ILO) in connection with codes to be drafted on safety in the workplace. 2.1.2 National developments From the Secretariat's perspective it appears that developments are mixed - positive and negative. Restrictions have been passed in several countries, but industry action has met with success in others. It is possible that the world-wide recession is having a dampening effect on, or diverting efforts away from, anti-smoking legislation towardsmore pressing issues. 2.1.3 Prognosis Developments over the past several months indicate thatt the following issues will be prominent in the medium term:

- 3 - - public/"passive" smoking - industry marketing conduct, including practices in the Third World - smoking in the workplace. Allegations will likely gain further credence, due to the industry's - apparent silence or defensive stance on health issues, and - decentralized structure, which leads to inconsistent policies and practices. It remains to be seen whether or not the industry can move from a fire-fighting mode into long-term strategies to build credibility and support. By establishing an international cooperative effort, companies have started,to build a foundation for long- term action. On the primary health issue, it may be worthwhile considering whether it could be useful to present a qualified: analysis, acknowledging that a variety of opinions exist on the subject, but that none are conclusive - rather than presenting a defensive stance. The question of industry conduct may be difficult to deal with successfully, unless a consensus can be reached to stimulate a change in attitudes at the national level that will make industry less vulnerable to restrictions, particularly in the area of marketing. A focus on socio-economic contributions of the industry may be particularly effective in this recessionary period. 2.2 INFOTAB Achievements INFOTAB's achievements can be dividedd into three categories: - broad impact on the industry - formation and strengthening of NMAs - contribution of specific INFOTAB projects and activities.

- 4 - 2.2.1 INFOTAB'ss broad impact has caused a significant change in attitudes of the tobacco industry around the world which have led to: aJ more cooperation on smoking issues among companies at international and national levels; b) support, encouragement and stimulation of NMA directors and staffs. This positive influence is perhaps best expressed in a letter to INFOTAB from an NMA Director who wrote: "You've done so much this year to give NMAs a feeling, of confidence that it is difficult to adequately say thank you." 2.2.2 Specific results of the change in attitudes mentioned above include the action carried out in the past six months and listed: beLow. This is by no means a complete review, as more comprehensive information is still lacking. - Costa.Rica: official inauguration of NMA - Guatemala: formation of NMA within chamber of industry - Panama: formation of NMA - Venezuela: steps towards forming industry ad hoc committee with secretariat - Zimbabwe: creation of new staff position im NMA to handle smoking issues and liaison with INFOTAB - Ghana: discussions between two manufacturers to form NMA - Belgium: formation of smokingg issues committee - Denmark: ad campaign to prevent advertising restrictions - TAC: communicationscampaign, with first phase featuring: taxation issue, and an economic impact study - Norway: provision of information to local SAS office to prevent permanent ban of smoking on short flights - Australia: successful conclusion of industry participation in state monitoring committee on advertising; economic impact study and combined strategy with economist critique of social cost issue - Guatemala: industry agreement on marketing code and successful presentation to government - Argentina: development of ad campaign on smoking issues ready for implementation - USA: start of new ad campaign and pre-emptive information on Surgeon General's report. 2.2.3 Specific INFOTAB projects and activities listed below contributed to industry understanding of, and action on smoking issues. This listing is limited to those contributions thafl are confirmed by observation or feedback: ""S :iiriLNEStipipf jgtg~

- 5 - Contacts in missionss to an international agency and im national governments by INFOTAB advisor and NMAs to influence attitudes towards anti-tobacco program of an international agency; substantial use made of condensed version of EIU study. Direct action to form and strengthen NMAs. Project "Mayfly" input to TAC communications program. Conference on consumer policy and promotion of published proceedings in cooperation with local NMA. Annual NMA workshop providing substantial support and stimulation to NMAs through sharing of knowledge and experience. Stimulation of economic impact studies in Brazil (in planning stage) and U.K. (completed), plus requests for help from~Panama and Costa Rica. Provision of information and materials to NMAs.in response to specific requests and through distri- bution of intelligence, reports and argumen- tation. Successful coordinated action on European Parliament report. Develiopment of industry knowledge and understan- ding of issues through research projects, suchas social costs/social values work, and Scandinavian study on role of advertising. Coordinated industry response to measures passed: by Egyptian Government.. 2.3 Projects The reorganization of INFOTAB's committee structure is completed /see 2.5 below) and projects are now more clearly defined, scheduled and budgeted. The. Advisory Group has approved 16 projects for execution. Of these, 12 had been agreed by the Board of Directors in~ October, 1981 and 4 were proposed: by committees.before they disbanded. Appendix I contains a list of the projects, results to be achieved by each, respective budgets, and timing of completion. Since 13 of the projects are in progress and 3 are still in thee planning stage, there are no major developments to report to theBoard., with one or two possible exceptions which will be covered verbally at the Board meeting.

- 6 - Projects completed by former committees following the last Board; meeting have been covered in the last quarterly report issued by the Secretariat. 2.4 Regional Coordination 2.4.1 INFOTAB Regional Coordination The Regional Coordinator - Middle East/Africa joined INFOTAB on September 1, 1981. Soon after, he started an orientation program by making visits to key staff personnel and line managers responsible for the Middle East and Africa; participating in the INFOTAB NMA Workshop; attending, the Tobacco Institute "College of Tobacco Knowledge"; and visiting the Council of Malaysian Tobacco Manufacturers to learn about the activities of a fully operational NMA in the developing world. The Regional Coordinator agreed to serve as Chairman of the Middle East Working Group at the Group's req,uest made during their meeting in September. In this role, he hass been keeping members informed of developments in Egypt and the Middle East in general, and, coordinating a unified response by members to the Egyptian Government's measures on advertising, measurement of components, and a caution notice. The Middle East Group is still trying to arrange an appointment with the Egyptian Health Minister for a small industry delegation to obtain clarification of the Government's regulations. In January, the Regional Coordinator visited: the tobacco industry in Zimbabwe, with arrangements made by the local industry association. Local industry representatives expressed strong supportt of INFOTAB's objectives. The association plans to hire an additional staff member to handle smoking issues and liaison with INFOTAB. He also paid an introductory visit to the Nigerian NMA;; joined a small industry delegation going to Senegal to try to gain clarification of the recent Senegalese advertising legislation; andd made a brief stop in the Ivory Coast to assess the present climate regardingg smoking and health and possible "spillover" effects from Senegal. The Regional. Coordinator is leading the project to design an economic impact model for developing countries and is a member of the project teamm that will produce recommendations to mobilize leaf growers and: related; allies in lesser d'eveloped countries (LDCs).

-7 - 2.4.2.Special Assignment Board members agreed at the last meeting that there was a need to give special assistance with the establishment of an NMA and/or strengthening of weak NMA(s) through secondment of a company manager to INFOTAB for assignment in the country(ies) chosen. They asked that the Advisory Group handle the matter, and: a project team was established to survey member companies as to appropriate countries, interview candidates for the assignment and arrange orientation for the final candidate selected. The Secretary Generall wrote on March 2 to the Board members of member companies concerned that Mexico, Guatemala, Panama and, Costa Rica had been identified as the highest priorities that could be most easily helped by special assignment. She also asked that, if the selection of countries was agreed by Board members and local affiliates, the companies concerned nominate candidates for the assignment. 2.5 Other Activities 2.5.1 Restructure As noted under 2.3, the reorganization of INFOTAB's committee structure is completed. The four former committees disbanded and the new Advisory Group held its first meeting in November at which it agreed on detailed procedures and started a review of projects, which wascompleteds in January. Oversight of projectsis still imperfect without the permanent Deputy Secretary General on staff, but liaison officers are spending as much time as possible to oversee projects led by respective company managers. At the final meeting of the EC Task Force it was agreed to keep an EEC "Standby Group" to monitor EEC developments and meet if necessary to coordinate action. It was further agreed that interested NMAs might be involved in such.activities. 2.5.2 Middle East Group Members of the Middle East Group have focused their efforts mainly on clarification of Egyptian. Government regulations and; a coordinated industry position on compliance (see 2.4 above). 2.5.3 EEC Affairs The Secretariat kept member companies and EEC NMAs informed of developments in EEC institutions (and the Council of Europe) through periodic reports. N Q N Ln W ~ ~ N

- $ - A meeting for members of the EEC Standby Group and interested NMAs was held on March 2 in connection with the Del Duca Report that was scheduled for vote in the Parliament on March 11. A representative of two international advertising associations also attended. Strategy was agreed, and the outcome was favorable 2.5.4 Information Services The Information system and related data bases are being set up as planned. Some 40 information packages and mailings were sent in the past five months to NMAs and companies on relevant issues, including reports on a variety of international and national developments and meetings. Questionnaires to gather information on industry action programs, national legislation, and taxation were mailed to NMAs and lead; companies. Incoming replies are being analysed for input to the data bases and subsequent dissemination in various forms to the INFOTAB network. About 35 requests have come in during the past five months, mainly from NMAs in industrialized countries. Some of them~ are more strategically orientated than before. Examples: Norway requested background infor- mation to counter plans for non-smoking flights and to prepare a paper on "passive" smoking; Costa Rica requested a response to media reports about the American Cancer Society's allegation that a certain number of deaths are caused by cancer due to smoking. The first issue of "INFOTOPICS", a monthly abstracting service with summaries and highlights of documents on smoking issues, was sent in March to NMAs and member company managers. 2.5.5 Contacts with Intergovernmental organizationsThe INFOTAB consultant in this area of activity made visits to Rome in November and February and to Geneva in February, to maintain contacts made in connection with the FAOmeetings in November and to obtain information on new activities in international agencies. The work of this consultant isjudged by all to be useful. 2.5.6 Contacts with Non-Governmental Organizations (NGOs) The Secretariat now hason-going: relations with the European Association of Advertising Agencies and the European Advertising Tripartite, although Hugh Holker, former DAC consultant, still also maintains contacts with~them to tie in withthe International Advertising Association and tocoordinate the aid he is giving to selected NMAs with national advertising groups.

- 9 - The Secretary GeneraL made a visit to CORESTA to arrange access to some of their information. It was noted that CORESTA and INFOTAB have different roles, but that certain information,was of mutual interest. The Secretary General has been introduced' to the European Tobacco Forum, but it seems unlikely at this time that it can be of help. The Secretary General also paid an exploratory visit to the International Chamber of Commerce, whose representatives expressed very strong interest in cooperating with INFOTAB on common problems (see 3.4). 2.5.7 NMA Network The list of NMAs with which INFOTAB is in contact is at thefrontie of this binder. NMAs in Zimbabwe and Greece have joined the network, as have the new association in Panama and Guatemala. The Swedish NMA has advised it will reply in May to the invitation to join the network. NMAs in Chile and Brazil are finding it difficult to achieve united industry action, for different reasons. Progress in cooperation in Venezuela is very s.low.. In Asia, only three countries have associations in which cooperation with INFOTAB is possible: Malaysia, Singapore and Hong Kong. It is not yet possible for NNAs in India, Pakistan, the Philippines and Indonesia to establish direct contact with INFOTAB and intra- industry communication on smokingg issues needs to be developed'. 2.5.8 Expansion of Membership Due to delay in the Secretariat, materials to present to potential new members were not cleared by member companiesuntil early March. The Secretary General will write in April to the potential new members approved by the Board in October, 1981. N O N ~ CO ~ OD ~

A endix I PROJECTS Item ~.... Project Timetable for 1982 No. Identification Results Planned Completion Budget 1 Mobilization of Leaf Recommendations for NMAs and companies for April $ 1,000 Growers and Related mobilizing support of appropriate allies, Interest Groups based mainly on experience gained from EIU study and related action. 2 Asia Regional NMA Help NMAs and lead companies deal with week of April 26 $ 20,000 Workshop smoking issues. (tentative) 3 Mayfly 1) Broad-based PR proposals for NMAs, and 1) June $130,000 2) help to specific NMAs, as required 2) on-going 4 Economic Contribution Pre-tested model/methodology for NMAs July $ 16,000 Model for Less (tentative) Developed Countries 5 Economic Impact Model Methodology for NMAs May $ 10,000 for Industrialized Countries 6 Rerun of Revised 1) Indication of trends in public opinion to be to be 11-Nation Study on specific issues, and established* established* 2) possible findings for strategic use by NMAs 7 Social Costs/Social 1) Completion of distribution of Wharton 1) June ) Values papers and refined argumentation on ) economic issues, ) $ 50,000 2) determination of possible approach to 2) June ) civil liberties issue, and ) 3) determination of feasibility of major 3) March ) study on smoking in the workplace * detailed proposal to be submitted to Advisory Group after first meeting of-project---t.eam- and selection of project team leader. sEe~sszzoz `