Tobacco Documents Online

1+yIIN .UTBS' 9 th META Meeting H~otel Chateau du I,',.ac, Genval, Brussels 2 October 1990 Pres~e~rnt,.. Mr.,I++!:.. Lymb~ery~ Ro,thmans~ (Ch~a~ir~~ Com~pany,)~ Mr. J. Bevan Mr. S, James Dr. W. D. Rowland Mr. M. Hughes Mr. I. Birks Mr: R. Davies Mr. C. Reynolds Mr. I-T: Dymondl Mr. T. McLeod Mr. S. Carlsoi. Mr. Ji. B. Boder Mr. G: N~assi!f Mr. E. Touma Mr. S. Saad! Mr. W. Telling lallaher BAT Philip Morris JR Brown & VailQiamson (host) " Mr. J. Hel'ewicz Mr. M. Garltlal. Mr. M. Oldrnan Mr. R. Allen Infotab: META/Infotab, Dubai . ~ Apologies f'or absence : Mr. P. Schuler R JR N ~ 1

1) Current Situation in GCC Mr. Al1'en requested permission to co-opt a META member locally onn any of the urgent issues now confronting the industry in the Gulf - particularly the potentially iiniminent UAE ban on all industry promotions, sponsorships and adbertising - in, ord'er to meet quickly with officialsa~sreqiuiredl, or tovi~sit o:n, his own if he + the chair company or one other, 1META company considered such visits necessary. It~ was~ agreed that~ Mr: Allien~~ s~iould curtail his visit to Etr~rope~~ and return to Dubai as soon as possilt~?e and to share urgent visits with the local offices of Brown & Will'.iiamscn and Philip Morris. Mr. Lmy bery said the message r!r;.: Allen was tryir,<g to put across was that Gulf officiialis may st2rprise1VIETA with restrictive legi!slation! even with t'he~ existing~ political (^-i~sis -~~ and' META~ w~ouldi be foolh~ardy~ to think taxation and other issues would not be pursued by individual states. Action: Mr. Allen, Brown & Williamson and' Philip Morris.. 2) Minutes of'the Meeting of 4 May 1990 Minu~t'es~~ approved. 3')~ Mia~tt~ers~arising from 4 May~ 1990 nneeting~ a)~ Item~ 2/'N~ewv~ IR~~eglalatiio~ns~ in Qatar Mr. Tarnes confirmedl Rothmans was complying with these. Mr. McLeod confirmed' Philip Morris woul'd be complying from Oct 5. All other cornpanieE confirmed they were complying. b)~ Standard nno~ntlfi &~year (Itern 2). Mr. Reynolds said BAT was sticking to month: and year: Pothmansand Gallah~er on trial shipment to UAE for year-only. Phil'np, Morris and PJR yeai-onl'y pending clarification. 2'

Mr. M~cLeod' said the problenn with these regulat'ions was similar to the UAE ban on promotions first announced in 198© but only now being enforced - that if members "let sleeping dogs lie",, issues come back and hi'It the industry with no warning. However the consensus was that' Connpanaies' position rennainedl essentially the same as at the previous - May 4 - meeting pendiitg clarification b'yindividual t;CC countlries. At present only two, Saudi Arabia and the UAE required month and year, but in the latter the GCC ruling had' yet to be enforced. Each member wass to inform Mr. Allen of any changes if/as soon as these occur. " Action: All Companies. 4) Mledia S'trateu Mr. L~,n~berysumnnarised the re+_ommendationma~deby Mr. Allen, in the papers alread'y circulated and asked for cornments. Mr. Hughes agreed with the recommend'ed' choice of MEMAC with the reservation thr,itcontacts between META and MEMAC should be well defined and that contact o/b/o/ META be confinedto Mr. Allen persosnally.. Mr. Davies said' he was uneasy I hat the programme of action outlined by MEMAC was too assertive; that as the ageincy (MEMAC) was to be representing the~ whole~ industry, i~t's~ proposals gave~ it to~~o~~ rnulch latitude. Mr. Davies added that' there were two main criteria for any agency : a) to collate al summary of press content and b) to assist the industry in fighting back on key issues.. I+IIe pointed out that MEMAC was proposing, to field as many as four people, and questioned whether META's strategy required thatmany,resources. ~ O Mr. Reynolds supported these re servations - the int'ended course of ~V action was over the t~op and', made him, very nervous. ~ Mir. L my ~bery said MEMAC's scope would be controllable by the ~ contract, andi limited by a smaller fee. ~ ~ .,.

Mr. Telling shared the views of Mr. Davies and Mr. Reynolds and' considered the number of people allocatied' by MEMAC' and, the likely cost as excessive. He agreed META needed help through a Pft' consultant but that META should'i start cautiously and, in a controlled way. Mr. McLeod agreed with the choice of MEMAC in principle. Mr. Nassif suggested MEMAC's scope for the first year should be less than that which was proposed. Mr. Carlson said META needled to ensure MEMAC' was well-versedd and pro~perl~y~ trained and that! MI,''_TA companies in adva~rnce~ needed a common position. Mr. Tourna shared BAT's re.•.2rvatioils on MEMAC's proposed initiatives, and, added' that on some sensitive issues facing the industry even he had to refer rzck to his head office. He suggested MEMAC's brief be re-defined ancd that the agency progress step by step.. Mr. Saad agreed MEMAC's ~;~oposed course of action was too aggressive and that too much of their language reflected the methods and approach of an advertising rz.t!her than a public relations agency. Mr. Nassif poin~ted out MEMAC would not take any initiative without being cleared by META, but that META had to give them a very clear, written brief. Mr. Bevan shared members' reservations in that it, took time to build up al wel1-definedrelationship. Since META wa~sagreed in principle on the choice of MEMAC then META should accept MEMAC although in a more limited way. Such an exercise had! been done successfully in Malta where the local public relations agency had produced an, effective bookleti to brief the Maltese cabinet and organised press conferences where all concerned haid been well- briefed before-hand. He suggested the fee for MEMAC shouldi be more modest but that Mr. Allen ~hould be encouraged to put forward a proposal to get the bal'1' rolling. Mr. Nassif said this would recjui'r.? a written agency brief from META. Mr. Lyrnbery pointed out Mr. Allen s experience of the indiZstry had'd been too short and thatonecon-r:)anny should doabriief, circulated tomeznbers, to take account of the industry's concerns and public prejudices. Since Mr. Allen wa, not qualified to do the brief, he was offering the chair connpanyi'nthis regard. Mr. Bevan, he s~uglgested~could put together a start-up proposaT. 4

Mr. Helewicz suggested a"test!' country could be selected where the media strategy coulidl be tried out for one year. Mr. Birks said META should have the confidence to let the agency act in, more than one country without waiting, a year. Mr. Touma said META should Ibcnk at'~ the fee structure very carefully. Mr. L~.m~y asked whether META agreed with the choice of MEMAC and whether META would agree with, Mr. Bevan, Mr. Hughes and Mr. A11iern working on a proposa~i'l with and for~ MEMAC and circulate this proposal within one month. Agreed th~at~ a proposaI be woir:ced o~u~t'~ t'o, l~ast~ for six mo~~nths~~ trial period and that no permanent fee structure was to be dh'scussed for this period. META vvould asses:; the fee costs at the next (February 1991) meeting. Action: Rmthnnans, Gall,aher, Mr. Allen. (PLEASE SEE' ADDENDUM AT END OF'TI-IE MINUTES - RA), GCC Tax incidence & structure Mr. Lymbery opened the discussion by pointing out META was in ai position where it could be faced wi't!h having to act on basis off majority decision only. Mr. Bevan: asked `;hether RJR would actively oppose any META decision on specifiKc taxatSam Mr. Touma confirmed that RJR would; it had not changed its position on this. Mr. McLeod asked whether it ;-jas not in RJR"s interest'to see some element of specific tax in countries other than KSA where such, a tax already existed. Mr. Bevan said what was at' st ike w s the long-ternn health of the industry - that wiith~ six major :.ompanies producing highr-quality cigarettes, specific taxation was the better, roadl to take. This was a position adopted all over the world bar the GCC.. Mr. Touma said the situations prevailing in, the US and Europe didl not apply in the GCC. I-Ie added RJR' was committed to producing high,qual'aty cigarettes. 5

Mr. Reyn oldls said he feared companies frorm Brazil, Pakistan, I!ndonessa: and others would enber and take a share of META's market. Mr. Lymber_y said M'ETA could never control these companies. Everyone in META had shown himself to be flexible and this hadd been demonstrated atevery meeting. META had' reached the point where five companies would be ;;oing their own way and that this. course was not in the long-term biterest either of the five or of RJR. Mir. Tourma reiterated that the~,e had' been no change in RJR's posi tion. Mr. Bevan stressed that the proposal now in front of the meeting was that the five would pursue theilr preferred approach and that if RJR' wanted to actively dissent that was indeed RJR's right, to do so. The proposal was for the five to pursue their own course and for RJR to absent itself from meetings of the five. There was general agreement from META companies that they wanted RJR' on board. Mr. Lymbery said META had tried to remain passive on this issue andd could' continue to do nothing or the five could go their own way. META was now in a position where the decision, to act by majority rather than unanimity had been proposed. Mr. Bevan said! META would continue as presently constituted except that anotherframework would have tobefound for the tax issue. Mr. Touma saiid! META decisions had to be unanimous. Mr. Bevan said that one membe:- by right of veto should not st'op META going ahead'. Mr. Lymbery suggest'ed the five should put together a proposal based on their common position and put this to Mr. Touma. Mr. Bevan was to call a meeting as soon as possible - but befbre the end of the calendar year - and to ask for a meeting, with Mr. Touma and Mr.Marsh. Agreed: Tax incidence and structure withdrawn from META's purview. 6

It was agreed that the five mernnbers of META, excluding R J Reynolds, would m~eet~ t& put together a p~:)licy~~ and programme with the~ fi~~rm~ intention of pursuing implemientaitioni of specific taxation. Rothmans would then visit RJR to seek their, views on the agreed position. Hopefull~y~ they~ would joi~ni t'he~ initiative. Action: Rothmans. 6) SASO/T&N level ATechnilcal & Scientific) A) SASO Mr. D.~,n~iiondl said 70 non-META brands had' been identifiedl. Of these, 20 were~~ kno~wn~ to be~ not'~ violatirng~ GCC standards. O~f~ t~he~ balance Mr.. Dymond h~~a~d' recluested for tiestiilg, thirty-two~ brands~ had arrived at BAT and were being analysed', 'Early evidence suggested there were rnot that many violators - a f'ull list would be produced within 2-3' weeks and M'r.Dyrnond would publish a summary. A report o~~ni Mr. Dymond's ~ and'~ Dr. Mackenzie's visits~ to~~ K~uwai~t,. Riyadh, Doha and Bahrain last Ju:ne already circulia.tcd. Mr. D,~.i~nd , added hie had received fronl~ S~A~S~O~ a, versio~n~ of specifications w~hichi pre-dated the~one~META~was~al~r,2ad~y using. Referring, to his visit tb Mr. Badr a1-Saad, Mr. Dymondl said the issuess of h}Tdro eg n c,~~an~d.~ and lead cadmium were two of the most difficult areas, and Badr al-Saad had inti:rnated there were ways they could be removed from cigarette specifications. Concerning, denssty levels,, Mr.Dymond said i't'~ was clear Badr a1-Saad' had not read any of the documents. Referring to the conditioning cabi,net, Mr: Dymond said we should' place the order and send it to Baidr al-Saad! - META was asked! to agree this. Mr. Dymond also! said Badr al-Saad'had intimated a general desire for an industry sponsorship to enable one of his young colleagues to dio a Masters Course in the US': It was agreed! not to respond as such a move would simply lead to further similar requests. A r ; To provide a conditioning cabinet at' a cost of soxne £10;000 - NOT' to sponsor the Masters' CoL.rse.. I

B) SASO & GCC Standards Mr: L,ymbery asked when Badr al-Saad intended to publish final SASO Standards. Mr: D~,~ymond' said he - Badr al-Saad - wanted to get this out as a GCC Standard. Mr. Lymbery said a fbllbw up visit should be made to Badr al-Saady and it was agreed that Mr: Dymond and A.N.Other should call' on him again. M!r: Bevarn said he should be encouraged to, bring Kuwait into any GCC standard. Mr. Nassif thought this standard could be delayed. He pointed out that in Omany oficials did not ivant a standard that had not come from the GCC. Specifications sL.R.h as month and year and the heal~t'h, warning on the front of the pack - once adopted by the GCC - became mandatory in each country. Mr. L,wmberY said META should keep talking to Badr al-Saad to avoid SASO standards becoming a GCC standard. Mr. Dymond pointed out that only Kuwait and Oman - apart'~ from Saudi Arabia - had standards organisations. In the UAE and the other. GCC' countries tl'nere were only departments in the Finance or. Commerce Ministries. The Bahraini departmental unit for example was not a recognised standards body although it did take part in regional meetings. MCLS. Dr. Khateeb in Bahrain held the view thatany paper on maximum constituent limits was a wast'e of time and that it was much better to ~ deal with~ these~ issues face~ to~, fac~2: Mr. Dymondsaid the~~ principle~ of ~ holding a~ dialogue on these issues was t'o, be ~ encouragedl He~ asked if there was agreement in META that such a - technical - meeting should take place and if so wht!,:her META scientists should meet to produce an agenda for META clcearance. Mr. L mY bery said there would be legal and'~ other implications so such a meeting would have to be well prepared. 8

Mr. Birks said the prote-ct'iion, providled by a closed agen& was very useful'_ Mr. Lymbery agreed but aidd'c d the disadvantage of an informal dialogue was that no one could accurately remember what was sai,d. Mr. Carlson said he would be more relaxed if a dialogue could be organised "one-to-one" a1tFiouj;h in principle he concurred with META scientists writing an ag2ndia. He suggested making, conta~ct' (with GCC officials) at another conference where they might all be gathered and arranging an iirf'ormal meeting, Mr. D~ymond said the~ principle~ in having a meeting, was~ to delay any moves on MCL reductions - although other issues would also be raised. Dr. Rowland pointed out Dr. Khateeb was a, WHO man. Mr. Dymond said he was unsure whether an informat approach would work. META could take up Badr al-Saad"s idea and have a meeting based on ISO Stand'ards. Dr: Rowland said the rnain problem was in setting, an, agenda - for META the main issue now were MCLs but there were al'so the other issues such, as additives and ETS. Mr. Bevan said'wha~t' META vti-ished to probe was the underlying, rationale of moves to, l'ower mc::s and where it comes froim. META felt from the scientists' meeting, with, Dr. Khateeb that the pressuree was not great. These issues had to be taken up on political and technical levels to prepare the buili&-up to a full rrneeting, if and when the pressure to lower mcls increased. M'r. Nassif said the M'inistersofs fnealth have called for a study tolook into further lowering level's of ;!ar and nicotine. But the committee concerned had yet to meet. Whim,it did, META would,need'ito get the proceedings of this meeting and know the extent of the pressure.. Mr. Bevan1 urged that' presentatiorns be made before the committee met. Mr. Allen should co-ordinaue between Mr. Nassif amd Mr.Dymond to find the best way to proceed. Mr. Carlson re-iterat'ed' tihat additives was an: issue that', could not' be ducked. It was becoming as big an issue as ETS and constifuent levels,s and META had to know about official moves on add'itives.

Mr. Lym~bery~ suggested taking the~ informal route with Dr. Khateeb~ and his friends to better find out who and where the players were. ' Mr. D~ymond said he was~ pencil0ing~~ in a proposed meet~ing~ of META scientists on 30 October in Copenhagen, and addedl it! was best not too leave the proposed' overtures to C,ICC officials until the need ta go wass urgent.. Mr. Bevani questioned whether it was not' preferable to talk about tar and nicotine issues separately - in the long run this was very i mpor tant'. Mr. Dymond, referring, to: a standard SASO had proposedd only last week and based on, the German DIN testing method now superceded' by the I'SO, method still in draf't! form, said it applied only to charnnel- ventilated cigarettes. I-Ie would draft a reply to SASO and circulate iit, to META companies before sending it. Action: META Scienit'ists/hvir. I:ynnond and then a proposal from Mr. Allen on how best'to proceed. Addienidum :~ Mr. Lymbery said META shou'd consider ways to help Mrs. Marafi, once she was located and the GuF' := crisis over, get back into operation. Mr. Telling added it would be ae ood gesture to try and find out news of her. Mr. Tames said it was possible Rothrnans would know lat'er, in the week and would communicate any news to other members. Mr. Telling suggested. META should help get things re-established by donating laboratory equipment, and ait'the next' scientists meeting think what exactly could be supplied. Thi& would be a good gesture from the industry. This was a rg eed.. Action: META Scientists & All Companies. Restrictions on sponsorslnip/prornotions (See Item 1'. above:) 1C