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Annex V CHSL/JJJM/SEM 26th F,ucust, 1981 Dr. H. Wiethuchter, H.F. & Ph F. Reemtsma, Parkstrasse 51, Hamburg 52, Ilest Germany. Dear Horst, I refer to your letter of 15th July on the subject of M;As and "lead companies" and would corrnent as follo;rs: I. Formation of new NVAs Chile I understand a tobacco sub-committee has now been formed within a confederation of industry organisation and that, in view of the strong anti-r,onopoly l aws preval ent in thi s country, thi s i s about as far as the industry can go tewards forming an F{6iA. Ghana Agreed. Mexico Agreed. Panama I understand the first steps towards the form>atlon of an Nb',A are being taken. Venezuela Following ajoint BAT/PM visit last rnonth, an industry Sr^oking and Health Comrnittee has nom been formed which could lead eventually to the forraati on of an fJr1A. Zambi a Agreed. .I.

A:.r_+;Si: : ]"1 .. ., e ~rF:~ i ~ i n Tvrr;nr of "1 ;~^ i5c' to ~ Vzzv CC7•. c.c t Ci i.`''F: Y{ti ~C~1 ;;,~ u ~c. 'sl~it~'i c,ssi*C3i1 t.his role ToC`rially +o co ~7c?R1[5 1R tiiQSs c--u'::ric'S where an "+~'A aiready exists as 'i•fTis T1C~I d tGIiG '11-O L'.^,s0" the C -l&t?-C established ~ v 11 many if l' S?CCiiC .^.'4C^- l~ ~ , J ai tii`,'1 a Dartfcular {'~~+Ait n1 + , . ~ chr'a:ir,ly maS;e scrse for ot , ~^-•~_nv to be r.c.- inZ ' ed *O ' ~' + ~ ~ ~t.:C ~(iE TLi. ^tc:_~Vi(,r f:n J ..• Ili:.'_ CrCt c if h.~'. =.:rl'.riC,ri oil Pe'."E ~0r ur le c~ t.:C Lxct.='L all Axc-2at the foIloelinn: ` . ~or,cura.s tio N'~i, virtual ronopoly. A g rcn B A T, ZI•.r~iv' f v2dor . i:o Agree 8;T. McarGZ;, tta No t;M~=,, virtual ~;:onopoly. A,r3ree Chile :SEe co,.ments in I above. Acree 3^:T. Venezuel a : Se2 CO! :12fi t ri fl I above. i1hi c{t cG,-~pai,y be the "j tcz.d co'^pany" will be discussed at a r?n-e'irg between SAT and Pf, next month. Ecuador : "r'o LAT ir.voSve-ent. With regard to new lead cormganies, we ,•rouid co~ent Es follo.rs: Sierra Leone, Zaire, Kenya, Haurittu„ Surine.r.e, E:rbados: Agree SAT. ~ ~ - Sud4n: No BAT involvement. ~ iiowever, rre would add: Trinidad ~ Guyana -.G 0 -~ ~ ~ ./.

Dr. h. 4liethuc}cter - 3 - 26th August, l9-~A 6:ith regard to Ghana we feel that with 83N of tf;e r.ar,;et, E<<T should be the lead conpa.ny, until such times as an is formed. So far as t,exico 4nd Pun4;:}a are concerned, the matter wi l l be resol ved a t the EAT/PM n{eeti ng i n Septe~-ber (as wi th Yenezuel a) . I shall therefore be writing (with a copy to I`ary Covingten at IiNFOTAE), as you suggestd•j, to our companies in the folTo;,ring countries, advising the~~ of the i r appoi ntzent/re-appoi ntrzent as "l ead cor;pani es": Chile Honduras El Salvador tdi caragua Sierra Leone Zaire Kenya tfauritius Suri nas:fe Barbados Trinidad Guyana Ghana Following the BAT/PM meeting in September, either we or Pii will then iN-rite to Nexico, Pana;fa and Venezuela. With kindest regards, Youcs sincerely, i ~ , C. H. Stewart Lockhart c.c. 11s. M. W. Covington-*" R. L. 0. Ely b.c.c. Territorial Directors J. J. J. Mostyn