Tobacco Documents Online

DEVELOPING COUNTRIES AD HOC GROUP (DCG) PROGRESS REPORT COVERING EVENTS SINCE THE ICOSI BOARD OF DIRECTORS MEETING ON 18TH FEBRUARY, 1980 At the Executive Committee Meeting on 18th February 1980, Mr G C Hargrove's Report on "Threats to the Industry in the Third or Developing World" was tabled. The Minutes of that Meeting do not record approval of the action plans in that Report but it is understood that the Meeting was broadly in agreement with them. Decisions related to the Third World were: 1. A Third World Budget of $35,000 was approved for 1980. 2. Mr Hargrove's Report had recommended the monitoring of certain international organisations, from which many of the attacks on the industry in developing countries originated. The Secretary General proposed a monitoring plan put forward by Hill and Knowlton. The Meeting decided to refer the matter to SAWP, which was asked to recommend which organisations should be monitored while ensuring that there was no duplication of monitoring procedures already available within the industry. The new B.O.D. Chairman was given authority to approve expenditure for this purpose of up to $105,000 on the basis of SAWP's recommendations. 3. Subsequently at the SAWP meeting in Washington, a revised list of organisations was agreed, omitting those which it was felt were being or could be adequately monitored by the industry. Messrs. Hargrove and Corner were empowered to meet Hill and Knowlton in Brussels to discuss proposals based on the new list. Two meetings with Hill and Knowlton were held but the reduction in cost arising from the shorter new list was not considered satisfactory and there were certain other aspects of the Hill and Knowlton plan which were unacceptable. As a result no monitoring agency has been appointed at the time of writing. It was agreed that the then Secretary General should write to the NMA in Brazil suggesting that it would be of benefit to the industry if it commissioned an Economic Impact Study on the lines of the Study carried out by Pea t Marwick and Partners This Mr Doyle did but his However the Brazilian NMA these lines which will be Intelligence Unit working research agency. for the Canadian industry. letter was lacking in diplomacy. has now commissioned a study on- conducted by the Economist in conjunction with a Brazilian /

2 In the spring and early summer of this year, there was further evidence of the WHO's plans to concentrate the attack on the industry activities in the developing countries. The Thirty- Third World Health Assembly, held by the WHO in Geneva in the first half of April, demonstrated only too clearly the WHO's intentions in this respect. Almost exactly half the countries which proposed the resolution on "Health Hazards of Smoking" came from the Third World. The Progress Report by the WHO Director-General emphasised the collaboration that had been established with the FAO and the Annex to this Report was a statement by the FAO supporting strongly the WHO's work to discourage smoking and laying emphasis on its reduction of tobacco projects. Six out of the ten sub-sections of the "Proposed Future Action" section of the D.G.'s Report referred specifically to developing countries and one of the sub-sections recommended the organisation of an Expert Committee on smoking and health problems in developing countries. It was also stated that the WHO was setting up a United Nations Inter-Agency Advisory Group to provide guidance on crop diversification in tobacco growing countries. Finally Dr Masironi of WHO indicated that the WHO was carrying out studies on health costs and the economic benefits of tobacco growing and trade as part of an FAO pilot study on crop substitution, with the object, no doubt, of seeking to establish a negative cost/benefit picture of tobacco growing,- and with the declared aim of develoning a mathematical model to be offered to the member states for their own use. In the May issue of Readers' Digest, Walter Ross's article "Let's Stop exporting the Smoking Epidemic" which was focused on tobacco companies' activities in the Third World, anpeared and- on 30th May the Secretary General of the Stockholm 4th World Conference on Smoking and Health announced that towards the end of the year a book concentrating on smoking related problems in developing countries would be published under the title "Smoking: Third World Alert". Although no decision to set up a permanent ICOSI working party on the Third World had been made at the Executive Committee Meeting in February, it was decided, with the agreement of the Chairing Company, to hold a Developing Countries Ad Hoc Group (DCG) meeting in July. This meeting took place in the ICOSI office in Brussels_: on the 16th and 17th July. Those present were: Gwynn Hargrove Robert Bockman Richard Corner Ansell Egerton Bob Ely Mohamed Ghaus Christian Vogel Dennis Mylonas Don Hoel Chairman Philip Morris, New York Philip Morris, Europe Rothmans B.A.T. B.A.T's Malaysian Affiliate Reemtsma R J Reynolds Shook, Hardy & Bacon REVISED 1.10.80 (Revision underlined) /

a In the spring and early summer of this year, th~e was further evidence of the ~~7H0' s plans to concentrate the,~'attack on the industry activities in the developing countr' s. The Thirty- Third World Health Assembly, held by the WH in Geneva in the first half of April, demonstrated onl too clearly the WHO's intentions in this respect. Almos exactly half the countries which proposed the resolutio on "Health Hazards of Smoking" came from the Third World. e Progress Report by the WHO Director-General emphasised e collaboration that had been established with the FAO a the Annex to this Report was a statement by the FAO support'ng strongly the WHO's work to discourage smoking and^la ing emphasis on its reduction of tobacco projects. Six out of the ten sub-sections of the "Proposed Future Action" sectio of the D.G.'s Report referred specifically to the organisati n of an Expert Committee -on smoking and health problems i developing countries. it was also stated that the WHO as setting up a United Nations Inter-Agency Advisory Group to provide guidance on crop diversification in tobacco rowing countries. Finally Dr Masironi of WHO indica d that the WHO was carrying out studies on health costs d the economic benefits of tobacco growing and trade as par of an FAO pilot study on crop substitution, with the~bject, no doubt, of seeking to establish a negative cost/benefi picture of tobacco growing, and with the declared aim of d~veloping a mathematical model offered to the member~states for their own use. to be In the May issue of Readers' Digest, Walter Ross's article "Let's Stop export'ng the Smoking Epidemic" which was focused on tobacco compan'es' activities in the Third World, appeared and on 30th May e Secretary General of the Stockholm 4th World Conference on Smoking and Health announced that towards the end of the ear a boo concentrating on smoking related problems in de loping countries would be published under the title "Smoking Third World Alert". Although no cision to set up a permanent ICOSI working party on the Third World had been made at the Executive Committee Meeting in February,it was decided, with the agreement of the Chairing Co pany, to hold a Developing Countries Ad Hoc Group (DCG) meet' g in July. This meeting took place in the ICOSI office in ~russels on the 16th and 17th July. Those present were: Gwynn Hargrove Robert Bockman Richard Corner Chairman Philip Morris, New York Philip Morris, Europe f~wl _~ Ansell Egerton Rothmans ~ Bob Ely B.A.T L.r'I ~ Mohamed Ghaus Christian Vogel B.A.T's Malaysian Affiliate Reemtsma ~ Dennis Mylonas Don Hoel R J Reynolds Shook, Hardy & Bacon '~J f~.~ ~ /

3 The first part of the meeting consisted of presentations on the following subjects: - Central moves in the attack on the industry in developing countries under the coordination of the WHO. The role of EEC in relation to developing countries. This item was in response to a request from the EEC Consumerism Task Force which asked DCG members to provide the answers to certain questions arising from the examination now being carried out by the EEC Directorate of Social Security of the relationship between EEC manufacturers and developing countries. Current regional situations in: (a) Middle East (b) Far East (c) India, Pakistan, Sri Lanka (d) Africa (e) Latin America The meeting then turned its attention to Action Plans under the following headings: Monitoring (i) International Organisations It was agreed that any further consideration of the Hill and Knowlton proposal should be delayed until the Secretariat's information service could provide analytical facilities for information received. It was agreed that, subject to the agreement of the Board of Directors, Mr B D Hauser should be retained as consultant to ICOSI on International Organisations. (See Annex A attached). (ii) Monitoring of the WHO Regional Offices It was agreed that Member Companies or their affiliates would undertake this assignment as follows: Washington D.C. North America (coverin N G ~ g and Latin America) Philip Morris Ln ~ Middle East ..G' ~ (Now in Alexandria but J ~ moving to Jordan) Rothmans ~

- 4 - (ii) (Cont.) Brazzavill_e B.A.T. New Delhi B.A.T. Manila Philip Morris Copenhagen B.A.T. (iii) National Monitoring in Developing Countries Since there are so few NMAs in developing countries and a number have no effective organisation, it was agreed that Member Companies would write to their affiliates in those countries requesting them to report to their parent companies on any WHO inspired activities in their countries. Alerting the Industry in Developing Countries It was agreed that in the letters referred to in (iii) above Member Companies would include the information given in the presentation already made on "Central moves in the attack on the industry in developing countries under the coordination of the WHO". Setting Up New NMAs in Developing Countries It was agreed that this should be a major item at the next DCG meeting and members should come to that meeting ready to express views on priorities. Alerting Potentially Friendly Elements in Develo ing Countries to the Implications of the WHO Report's Recommendations It was agreed that: (a) The Secretariat would prepare a paper designed for this purpose for distribution, after clearance with Member Companies, to developing country NMAs and by Member Companies to their affiliates in those countries. (b) Mr G Berman would be asked to produce material for possible use in developing countries to provide assurance that tobacco does not have a negative cost/benefit effect on the economy. This would be examined by the Malaysian NMA before being made generally available. /

5 (c) The approval of the Bermuda B.O.D. Meetir4 would be sought for: 1. The arrangement (through local NMA or affiliates) of seminars for local leaf grower in developing countries, at which the WHO threa s to leaf growing should be discussed. 2. Approaching leading leaf merchants to suggest to them that they should hold an international leaf seminar for the same purpose. (d) In view of the FAO's changed role towards the leaf growing industry, two members of the DCG_will review possible FAO contacts. Ensuring that the World Bank, IMF nd Western Countries Overseas Development Ministries understapthe Economic Implications of the WHO Report's Recommendations / It was agreed that the ap-'oval of the Bermuda B.O.D. Meeting should-be sought for th DCG to develop a communication plan and strategy to meet is objective. Achieving Maximum Usage of the EIU Leaf Tobacco Study The Chairman was empowered to commission Hill arid Knowlton to produce a plan to meet this objective on a world-wide basis by the end of August. This has been done and the plan, if satisfactory, together with costs will be presented in Bermuda. Use of Economic Impact Study It was agreed that Mr G Berman would be asked to see whether a simplified model could be produced for use in developing countries and an estimate of the cost involved. Mortality and Morbidity Figures Since WHO published figures for developing countries are outdated and inadequate, it was felt that through NMAs or affiliates data should be collected and developed on a country by country basis. BAT agreed to attempt to develop a model for this purpose. Fundamentalists Revival It was agreed that BAT would examine third party documentation on this subject. ./ - ~ ~-

- 6 - IUCC Workshops in Latin America The need for monitoring these Workshops, which take place in October, would be examined by the Secretariat. Future Role of the Developing Countries Ad Hoc Group The DCG felt that the Action Plans which they had agreed were an appropriate follow up to Mr Hargrove's paper which had been discussed at the February Executive Committee meeting. It was the unanimous opinion of the meeting that the Group should become an official Working Party of ICOSI to be called the Developing Countries Group (DCG) and that approval for this should be sought at the Bermuda B.O.D. Meeting (Proposed Terms of, Reference attached as Annex B). It is also proposed that the DCG should maintain close liaison with the Middle East Special Group which is currently engaged in coordinatin.g industry activity in the face of threatened restrictions in Egypt and the Gulf States. August 1980