Tobacco Documents Online

PMI Corporate Affairs Weekly Highlights By Region l.~ 0 Week of May 31,1999 ~ ~ ~ ~ ANCAM ~ ~ Country:ECUADOR Issue:YOUTH ITABSA, PM's affiliate in Ecuador, organized a working lunch with Municipal education authorities, representatives from schools participating in Yo Tengo PODER and executives from a local educational NGO. The meeting was held in preparation for the official launch this summer of Yo Tengo PODER, our region's youth no smoking educational program, and provided us with the opportunity to share our philosophy, activities and commitment as a responsible marketer. The Ministry of Education has endorsed the program. ITABSA also recently expanded its "The Law is the Law" retailer program to prevent youth access to cigarettes by launching a TV and radio campaign directed to parents, asking them not to send their children to buy their cigarettes. The campaign has the full support of the Ministry of Health. Country:LATIN AMERICA Issue:LEGAL ISSUES The Judicial Panel on Multidistrict Litigation (MDL) granted a request by Philip Morris U.S.A. and other companies to transfer all federal court cases filed by foreign governments seeking health care cost reimbursement to a single federal court in Washington for the purpose of consolidating pretrial proceedings. Under federal law, the Judicial Panel on MDL can consolidate cases for pretrial proceedings to "promote the just and efficient conduct" of the cases. Five countries, Guatemala, Nicaragua, Thailand, Venezuela and Bolivia, which have suits pending in federal courts against tobacco manufacturers for alleged smoking-related health care costs, are included in the MDL order. Country:PANAMA Issue:YOUTH We recently expanded Yo Tengo PODER, our region's youth no smoking education program (launched in Panama in July 1998), with the training of 400 additional teachers in two cities. Activities and role-playing were also conducted with 400 students that had already participated in the program in order to reinforce the values they had learned. The weeklong training closed with a speech - from the First Lady. ASIA i

2078787830 Country:KOREA Issue: COMMUNICATIONS Local World No-Tobacco Day activities were not covered by major media. Newspapers published an op-ed piece by the head of Korea ASH; tips on quitting smoking; coverage of the giant cigarette explosion at a Bangkok anti-smoking rally; coverage of APACT's meeting in Taiwan headlined "Anti-smoking activists from Asian and Pacific countries consider suits against U.S. tobacco companies"; and a feature on one district's efforts to curb smoking. Country:KOREA Issue:INDUSTRY PMK General Manager Jim Lee has been elected chairman of the Korean Tobacco Association. He was elected unanimously to serve through March 2000. Country:LAOS Issue:FISCAL POLICY The kip fell another 3%, down to Kip6,200 to US$1, from Kip6,000 a week ago. Country:MALAYSIA Issue:ADVOCACY ISSUES; YOUTH Leading up to World No-Tobacco Day, the Deputy Health Minister of Malaysia announced that the govemment is satisfied with the present anti-smoking campaign and has no plans to propose further smoking bans. The Sun reported tlre story on May 29. The Sunday Mail also ran a one-page full color story on May 30 on underage smoking with emphasis on females. The paper quoted Mary Assunta of the Consumers Association of Penang stating that underage smoking campaigns with themes such as "Youngsters shouldn't smoke" could backfire. In addition, the Sunday Mail on May 30 also reported on WHO's World No-Tobacco Day theme and the Asthma Children's Club of Malaysia message: "If you value your child's health, stop smoking." Country:MALAYSIA Issue:ADVOCACY ISSUES The Minister of Health announced that four hospitals in Kuala Lumpur, Ipoh, Penang and Seremban have set-up stop smoking clinics for the public, in particular youth. The New Straits Times reported the story on May 27. . Country:MALAYSIA Issue:CONSUMER FREEDOMS Mary Assunta of the Consumer Association of Penang called for smokers to quit in a New Straits Times May 31 op-ed piece. In the same newspaper, the National Poison Center was quoted as saying a total ban on smoking in restaurants will not affect business. The newspaper a graphic depicting the various harmful chemicals that smokers inhale and articles on the same page with tips on quitting and health risks associated with smoking. Country:MALAYSIA Issue:FISCAL POLICY The Federal Territory Customs and Excise Department seized 28,000 cartons of smuggled clove cigarettes worth approximately RM226,900 (US$59,500) with unpaid duties of approximately RML 1 million during an ambush near an oil palm plantation in the state of Selangor. Both the New Straits Times and Sunday Star reported the story on May 30. The Star and Sun newspapers reported on June 1 that Selangor Customs and Excise department confiscated approximately RM600,000 worth of kretek cigarettes from a fishing boat. . - Country:MALAYSIA Issue:MARKFTING As part of World No-Tobacco Day, the Health Ministry announced that it wants to ban all forms of indirect cigarette advertising to ensure that Malaysians are not influenced to smoke, The Star newspaper reported in a May 31 front page story. A comprehensive cabinet paper is being drawn up with the views of various ministries, the article said. The newspaper also carried a lengthy story headlined "Cash crop under fire" on tobacco growing and farmers, with references to Malaysia. . Country:MALAYSIA Issue:YOUTH Following World No-Tobacco Day, the Malaysian Medical Association Action on Smoking and Health Committee called on the Education Ministry to start ASH clubs in schools to discourage smoking among students, The Star reported on June 1. The article also mentioned World No-Tobacco Day activities organized by the Consumers Association of Penang (CAP). Both the Star and Sun ran an 3

i ~ 2078787836 Country:SPAIN Issue:CONSUMER FREEDOMS Spanish media widely reported the presentation of the Traditional Hospitality Pilot Program in Bilbao, the Basque Country, last week. Press and TV reports said that the program implemented by 10 restaurants demonstrates that "Smokers and non-smokers are accommodated in premises with improved ventilation and air conditioning systems". The Secretary General of the Association of Bilbao Restaurants is quoted as saying that "the solution is not to ban smoking or separate smokers and non-smokers, but to control the air quality of premises." Country:SPAIN Issue:MARKETING The Spanish Tobacco Market Commissioner Mr. Santiago Cid has sent a letter to the Spanish NMA asking NMA members to provide information to an independent consultant, possibly KPMG, to determine the economic impact of an advertising ban. The study results will be incorporated in an economic report to the government proposal to the Parliament. Country:SPAIN Issue:YOUTH PM Spain held a meeting with the Tobacco Market Commissioner Mr. Santiago Cid on 1 June to present PM's youth smoking prevention message on its packs. The Portuguese youth smoking prevention campaign was also presented as an example of future collaboration on educational programs that PM, individually or within an NMA framework, wants to promote. The Commissioner reacted positively to both initiatives and offered to communicate our position to other relevant parts of the national and regional . Administration. Country:UNITED KINGDOM Issue:FISCAL POLICY Philip Morris made a presentation to the U.K.'s HM Treasury about the revenue dangers of further tobacco tax increases and the social consequences that result. The presentation explored the econometrics of increases in tobacco taxation and the example of Sweden's attempts to combat smuggling by reducing tax without lowering revenue intake. Our presentation was very well received. The issues we highlighted -- revenue loss, smuggling and enforcement -- along with a real life example were the topics of principal importance.to the Treasury team. Country:UNTTED KINGDOM Issue:YOUTH The Board of CitizenCard, the U.K.'s national proof of age scheme, approved a Philip Morris proposal to develop a youth education programme. To coincide with the Department of Education's review of citizenship and social responsibility teaching, it was agreed that Philip Morris should work with consultants and education specialists to develop teaching aids and curriculum support materials, in the name of CitizenCard, that can be introduced in schools for September 2000. _ There is a formal Department of Education consultation period unti123 July 1999, which PM will monitor for CitizenCard, followed by various working groups and policy discussions leading up to the impelementation of materials and teaching programs to be delivered in advance of the first term of the 2000/2001 school year (September). 9

1 2078787829 Country:CAMBODIA Issue:INDUSTRY; MARKETING Complementing its media sponsorship of F-1 racing on TV5 every Sunday, SE 555 has replaced some of its billboard visuals with F-1 thematics. The final televised match of the English Premier League, also sponsored by SE 555, aired last weekend, Mild Seven held the fourth round of the Club Prix events in Siem Riep, attracting an estimated 15,000 spectators. Country:HONG KONG Issue:ADVOCACY ISSUES On World No-Tobacco Day, the Council on Smoking and Health organized a graduation ceremony for 15 people who attended the Council's sessions and successfully quit smoking. The Secretary for Health and Welfare officiated at the ceremony. Dr. Hor, COSH Chairman and a professor in the Hong Kong City University, received an award from WHO for his anti-smoking activities. Activities organized by the anti-smoking activists on the World No-Tobacco Day around the world received extensive coverage in print but not electronic media. , Country:HONG KONG Issue:FISCAL POLICY Customs officers seized about 10 million cigarettes valued at HK$13 million (US$1.67 million) in a container on a vessel traveling from Xiamen in southwest China to the Philippines via Hong Kong. It was the biggest seizure of smuggled cigarettes so far this year. No arrests have been made. Officers reported half of the cigarettes seized were counterfeits. Country:INDIA Issue:INDUSTRY ITC Limited, 32% BAT-owned affiliate, announced audited financial results for the fiscal year ending March 31, 1999. Pre-tax profit of Rs. 9.38 billion (US$ 215.6 million) and net profit of Rs. 6.23 million both grew 18.5% over the prior year, reflecting strong performance by ITC, particularly in the king size (83mm) & regular filter (69 mm) length segments. Country:INDIA Issue:TRADE ISSUES According to press reports, India has filed an appeal with the WTO Appellate Body against the April 6, 1999 WTO Dispute Settlement Panel report finding that India's quantitative restrictions are not jusfified and should be removed. The Appellate Body decision, which must be based on points of law and cannot re-examine existing evidence or accept new evidence, has to be issued within 90 days of the appeal date. Once the Appellate Body decision is issued, it must be adopted by the Dispute Settlement Body within 30 days. Country:INDONESIA Issue:ADVOCACY ISSUES World No-Tobacco Day received little fanfare in Indonesia. Some public service ads appeared in the local press. Country:INDONESIA Issue:FISCAL POLICY Government officials disclosed that the WHO and World Bank have been pressuring it to address the high levels of tar in local cigarettes. The government has publicly floated the idea of a tax based on tar, which has been attacked by the clove cigarette makers association. - Country:KOREA Issue:ADVOCACY ISSUES Korean press reported that Chung Kwang-mo was selected as the new Chairwoman of APACT. Chung currently serves as the head of the Korean Consumer Federation as well as Vice Chairwoman of Korean ASH. Country:KOREA Is sue: COMMUNICATIONS Half-page feature articles on PMK in two prominent newspapers in Chulla province, part of the country's tobacco growing region, were published with the assistance of PMK as part of its image-building program. Chunbuk Daily (cir. 200,000) and Moodeung Daily (cir. 280,000) reported on PMK's cigarette, food and beer portfolio in Korea, and its contributions to performing arts and community programs. . 2

2078787831 ~ AFP story on the giant cigarette that exploded at an anti-smoking rally in Bangkok. On June 2, the Sun ran a full page story on World No-Tobacco Day's "Leave the Pack Behind" theme. Country:MALDIVES Issue:ADVOCACY ISSUES The Ministry of Health announced on May 31 that it plans to identify no-smoking houses and encourage other households to join the program. Details of the program are not yet available. The government previously has identified two no-smoking islands. Country:PHILIPPINES Issue:ADVOCACY ISSUES; YOUTH Anti-smoking advocates highlighted the May 31 World No-Tobacco Day with a march to support approval of measures restricting the sale and use of tobacco. The Department of Health (DOH) also reintroduced the "Yosi Kadiri" (Cigarettes are disgusting) campaign, first launched in 1993. Shifting its anti-tobacco campaign from adults to potential young smokers, DOH said it would support the passage of a proposed bill that would restrict promotion and sale of cigarettes to minors and smoking in public places. Several newspapers and TV news covered mostly WHO-initiated releases. Country:PHILIPPINES Issue:LEGAL ISSUES The lawyer representing Elsie Reyes in a multi-million peso suit against the tobacco industry, has renewed his call for tobacco manufacturing facilities in Metro Manila to be shut down as "public nuisances." If the lawyer does not get the support of local mayors, he said he will file charges against them under an anti-graft law. Country:PRC Issue:ADVOCACY ISSUES At a World No-Tobacco Day seminar held in Beijing on May 31, a written speech by Deputy Prime Minister Li Lanqing was released, stating that smoking rates among youngsters and women keep on surging and saying the govemment needs to adopt more effective measures to control smoking. According to the Health Minister, who attended the seminar, China is formulating policies to control smoking. He said the government will continue to organize anti-smoking activities in schools, government departments and medical organizations. Government officials, medical practitioners and teachers will be asked to lead the way in quitting smoking and promoting messages on the dangers of smoking. Country:PRC Issue: CONSUMER FREEDOMS The government of Kunming, the capital of tobacco growing Yunnan province, issued an order banning smoking in all public places from June 1. The government said inspectors will visit areas periodically looking for violators. Country:SINGAPORE Issue:ADVOCACY ISSUES The National Smoking Control Unit reported this year's anti-smoking campaign featuring gory pictures of diseased human organs has been the most successful to date, the June 1 Straits Times reported. During the first three weeks of the campaign, 1432 people have called the Quit Smoking Hotline, compared with 10191ast year and 1065 in 1997. On World No-Tobacco Day, the campaign chairman unveiled a taxi advertisement featuring animated blood spurting from a ruptured brain tumor. That ad will run on 100 taxis, the newspaper said. Country:SINGAPORE Issue:ADVOCACY ISSUES The Conunission on Smoking Control said an initial study shows smoking cost Singapore's economy S$670 million (US$387 million) in 1997, the June 1 Straits Times reported. The commission said it will release full fmdings in September, bidding to win more funds for anti-smoking efforts. The commission also said it is considering seeking a ban on tobacco sales near schools and lobbying arts groups not to accept tobacco company funding. Country:TAIWAN Issue:FISCAL POLICY In a Legislative Yuan Committee meeting on May 31, the Ministry of Finance and Department of Health said that they had reached an agreement to levy a 20% tobacco surtax to aid the national health insurance fund. However, the anti-smoking activist Tung Foundation said a 20% surtax equals only NT$2.36 (US 7 cents), not enough to curb tobacco consumption. The foundation vowed to propose again a NT$10 per pack health tax. The Tung Foundation held a press conference with six legislators on June 1, claiming it had gathered 120 signatures in the 225 member legislators to support NT$ 10 tax proposal. Anti-smoking activists unsuccessfully proposed similar bill in 1997: The industry infonned AIT (the de facto US Embassy) umnediately and held a discussion with 4

2078787833 result of the April 8 increase in import duty on tobacco and tobacco products. The Prime Minister requested a detailed report in order to better evaluate the situation. The negative impact of the tax increase on the Regie's sales has prompted the Minister of Finance to request the Council of Ministers to revoke the increase. Country:SLOVAKIA Issue:FISCAL POLICY The recovery package recently approved by the government includes the following measures: 1.An increase in the tobacco excise tax from 350 SKK/000 to 450 SKK/000 for the 70mm segment and from 800 SKKJ000 to 850 SKK/000 fort he KS segment.This increase is subject to approval by the Parliament and will become effective as of 1.7.1999. 2.An import surcharge of 7%, as of June 1. The surcharge will be reduced to 5% from January 2000, to 3% from July 2000, and to 0% in January 2001. The import surcharge will apply to 75% of the imported goods (including tobacco products) and to all countries. 3.An increase in lower VAT rate from the current 6% to 10% as of July 1, and to 12% as of January 2000. The upper VAT rate will be reduced from 23% to 22% on January 1, 2000. - Other measures cover cuts in expenditures, reductions in corporate and personal income taxes, increases in state-regulated prices. Country:SLOVAKIA Issue:POLITICAL ISSUES In Brussels, the Philip Morris Institute for Public Policy hosted the seminar "Slovakia and the EU: Growth of Economic Opportunities." The event was attended by over 80 VIP guests, including EU and Slovak Government representatives. Country:SLOVENIA Issue:ADVOCACY ISSUES The media reported extensively on the World No-Tobacco Day. . On the occasion of the World No-Tobacco Day, the Institute for Public Health rolled out a nation-wide smoking prevention campaign under the banner "Smarter people give up! Give up smoking before smoking gives you up!" The next phase of the campaign is planned for this autumn. The anti-smoking groups used the World No-Tobacco Day to express their concerns about the ineffectiveness of the current Tobacco Law. Media reported on the antis' intention to submit to Parliament a series of amendments including a ban on tobacco advertising (except for kiosks), the limitation of the sale of tobacco products to kiosks and a legal age increase from 15 to 18 years. Country:SLOVENIA Issue:MARKETING Trade inspectors have intensified their visits to shops selling tobacco as well as other products (POS other than kiosks), issuing rulings for the immediate removal of outdoor tobacco advertising. Inspectors base their rulings on a judgement given by the Court last April and disregard the fact that an appeal against this judgement has been filed with the Supreme Court. Country: SWITZERLAND Issue:ADVOCACY ISSUES A "Quit Smoking" campaign was organised on the occasion of the No Tobacco Day. The campaign received broad coverage both in the media, some 40 articles, and in antis' Internet sites. . Country:SWITZERLAND Issue:PUBLIC RELATIONS The Foundation for artistic promotion and creation of the Vaud Canton, of which PM is a sponsor, organised their 1999 prize giving ceremony in the presence of numerous media and local authority representatives. The Philip Morris prize was awarded to a local video producer. EASTERN EUROPE Country:AZERBAIJAN Issue:MARKETING 6

monopoly on June 3, as pressure for the NT$10 tax appears much stronger than in 1997. ', 2078787832 li Country:TAIWAN - Issue:FISCAL POLICY; LEGAL ISSUES; YOUTH The Asia Pacific Association for the Control of Tobacco (APACT) Taipei conference closed on June 1 without reaching a consensus on whether to file health care cost recovery suits against foreign cigarette companies. The main topics of the conference were litigation, tobacco taxation and youth smoking, and the latter two were unanimously supported. At APACT's official press conference on May 31, Judy Mackay and Scott Baldwin, a US litigator, urged Taiwan and other Asian countries to take US tobacco companies to court. However, the Director of Health Protection and Promotion Bureau said the central government would need more information to support such action, and would evaluate other Asian countries' experiences. APACT conferees decided to suggest members should consider filing lawsuit against the tobacco companies within one year. The group suggested suits by NGOs or local governments if there is no support from central goveinments. Since Taiwan's central government is not supporting litigation, the Tung Foundation is now expected to try to get a local government, such as Taipei or Kaohsiung City, to be the plaintiff. Country:TFIAILAND Issue:ADVOCACY ISSUES On May 31, several entertainment personalities suffered bums to their faces and bodies when a giant mock cigarette containing hydrogen exploded during a ceremony to mark the 1999 World No-Tobacco Day in Bangkok. The event was attended by more than 1,000 people, including Bangkok schoolchildren, show business personalities, health officials, and members of the public. Dr. Prakit, organizer of the event, assured the injured and their families that he and the Action on Smoking and Health Foundation will be responsible for all medical expenses for the injured. However, police are investigating the incident for possible negligence charges. Prakit also announced that he would lobby for the passage of a law banning the sales of hydrogen-filled balloons. Country:THAILAND Jssue:PUBLIC RELATIONS On May 25, PM (Thailand) Ltd. launched the 1999 Thailand ASEAN Art Awards competition. The event was attended by the General Manager of PMTL, representatives of co-sponsoring organizations including the Fine Arts Department, Art & Culture Magazine, University of Fine Arts, and the White Group (a local association of university art lecturers). Thai mass media covered the event. The 1999 Thailand ASEAN Art Awards presentation ceremony and exhibition opening will take place on August 4 at the National Art Gallery, Bangkok; the exhibition at the same venue mns through August 31. CEMA Country:CYPRUS Issue:FISCAL POLICY The Ministry of Finance announced an excise tax increase of CYP 0.15/pack ($14.07/000) with effect as of June 3. The increase . applies on all tobacco products, local and imported. Country:CZECH REPUBLIC Issue:ADVOCACY ISSUES ME Dnes (biggest daily) published a special supplement in connection with the No- Tobacco Day. Most articles focused on health issues and US litigation. Materials were prepared by anti tobacco activists from the State Health Institute. Country:GCC Issue:ADVOCACY ISSUES The "World No-Tobacco Day".generated significant anti-tobacco media coverage. Country:HUNGARY Issue:FISCAL POLICY The Ministry of Finance has informed that the government is likely to seek a significant tax increase on cigarettes in 2000 in order to move towards harmonising excise taxes with the EU. While the principle of a derogation is accepted, the duration of the derogation is under debate. An optimistic scenario, with harmonisation being achieved in 2010, would call for a 15% tax increase already in 2000, while harmonisation in 2006 would imply a 30% increase next year. The MOF has to fmalise the excise tax proposal in July. Country:LEBANON Issue:FISCAL POLICY Representatives of the Regie met with the Prime Minister to highlight the financial difficulties that the Regie has been facing as a 5

2(178787834 Area and the Advertisers' Union met with the author of the draft of the legislation on mass media to discuss the tobacco ad ban proposal included in this legislation. The author has agreed to withdraw the ad ban included in this draft following a discussion on the issue with the other members of the commission. Area expects the hearings for this draft law to take place in June. Country:BELARUS Issue:INDUSTRY; MARKETING; YOUTH During a heavily promoted RJR Magna brand sponsorship of a music concert in Minsk on May 29, a thunderstorm occurred causing a stampede of concert-goers to a nearby underground metro entrance. As a result of the stampede, 44 females were killed, most of who were females under the age of 18. The event was widely covered by media throughout the region. TV news commentary was aired against the backdrop of the concert stage heavily branded with Magna advertising. Country:KAZAKHSTAN Issue:FISCAL POLICY The Kazakh Foreign Ministry forwarded a diplomatic note to the Ukrainian Foreign Ministry on the ratification of the indirect taxation agreement between Kazakhstan and Ukraine. The agreement was effective on May 31, 1999. Country:KAZAKHSTAN Issue:PACK INTEGRITY On May 31, Area obtained an additional six-month extension, until January 1, 2000 from the State Standards Committee permitting . them to use existing NTM stock without the required technical specification numbers. Country:KAZAKHSTAN Issue:PUBLIC RELATIONS On June 3, Area's managing director was one of the keynote speakers during the Almaty Investment Summit, presenting on Philip Morris' investment experience in Kazakhstan. The Summit was co-sponsored by the International Herald Tribune andd the Kazakhstan State Investment Agency. The event was opened by President Nazarbayev and attended by all senior government officials and close to 300 representatives from international organisations and the business community. Country:RUSSIA Issue:FISCAL POLICY A letter was sent by the State Duma Deputy Chainnan to President Yeltsin, containing a proposal to increase cigarette excise tax rates to a single 150 roubles/000 (USD 6.17). The Presidential administration will analyse the proposal and will forward their recommendations to the Duma. However, this proposal has already been rejected by the Duma Budget Committee. Country:RUSSIA Issue:PUBLIC RELATIONS On May 27, the first night performance of the PM-sponsored "Jane" operetta took place at the Moscow Operetta Theatre. A VIP reception was held following the performance, which was attended by Government officials, public leaders and the media. On May 28, a concert of the municipal symphonic orchestra was held within the framework of the 'Premiera and Philip Morris invites...' event in Krasnodar. The Master of Ceremonies highly praised Philip Morris' on-going support of the local community. Country:RUSSIA Issue:YOUTH On June 2, Area organised a joint industry/St.Petersburg government meeting and press conference to announce the launch of the first joint industry/government action against underaged smoking in St.Petersburg. Attendees included the St.Petersburg city government, PM, RJR/JTI and BAT. Key members of the local media attended the press conference. During a separate industry meeting to discuss future co-operation, RJR/JTI and BAT agreed to a PM proposal to instigate a joint research programme on the prevention of youth smoking and industry image. Country:UKRAINE Issue:FISCAL POLICY President Kuchma sent a draft law to the Parliament on the introduction of a special5"/o tax on both locally and imported cigarettes earmarked for the Pension Fund. The draft was officially registered with the Parliament on May 25, which means that within 30 days the Parliament should hold hearings on this draft law. If the Parliament does not reject the President's draft Iaw; the proposed tax will be imposed as of June 24, 1999. Area is working closely with allies in Parliament on the issue. Country:UKRAINE 7

2078787835 Issue:YOUTH Further to a request from the Kharkiv City Centre for Health, Area provided the Centre with 100 "Smoking? No time for it!" posters. The Centre will distribute the posters to children's medical and prophylactic organisations and teenage clinics. EU Country:BELGIUM Issue:POLITICAL ISSUES The Belgian Federal Minister of Health Marcel Colla (Flemish Socialist) and the Federal Minister of Agriculture Karel Pinxten (Flemish Christian Democrat) resigned on Monday, 31 May after it reportedly became clear that they knew for over a month that Belgian chickens and eggs are or could be contaminated with dioxin. The health scare led the Belgian Government to halt the sale of chicken and eggs. M. Colla was succeeded by Luc Van den Bossche, fomerly the Interior Minister, press reports said. The President of the Flemish Socialist party has called for the re-organisation of the inspection services of the health department, agriculture department and other nutrition related inspection services. Country:EUROPEAN UNION Issue:POLITICAL ISSUES The Philip Morris Institute for Public Policy Research hosted a seminar in Brussels on "Slovakia and the EU: Growth of Economic Opportunities". The guest speaker, Jan Figel, State Secretary of the Ministry of Foreign Affairs and Chief Negotiator for EU accession, underlined Slovakia's conunitment to join the EU and NATO and expressed confidence that Slovakia will be promoted to the first wave of accession countries by the end of 1999. This evening event was attended by over 80 guests, including representatives from the EU Council of Ministers, the European Commission, the European Parliament and the diplomatic and business communities. The Slovak delegation included the Slovak Ambassadors to the EU and to NATO and the Directors General of the Foreign Affairs and Economic Ministries. Country:GERMANY Issue:PUBLIC RELATIONS PM Gemrany hosted a press lounge on 28-30 May at the annual party convention in Bremen of the FDP (German Liberal Party), where the Party Chairman Wolfgang Gerhard was re-elected. Many FDP politicians visited the lounge, including the Party Chainnan and the Deputy Party Chairman Rainer Bruederle, the Party Secretary- General Guido Westerwelle, Minister of Economics of the State of Baden-Wuerttemberg Dr. Walter poring, Vice President of the Bundestag Hermann-Otto Solms, and Chairman of the Finance Committee Carl-Ludwig Tluele. Country:ITALY Issue:MARKETING On 26 May, the Italian Chamber of Deputies approved the text of the 1999 EU Law ("Comunitaria") which will transpose several EU directives into Italian legislation, among which the EU tobacco ad ban Directive. The EU Law is now being examined by the Senate. The Government will have one year from the final approval of the EU law to implement the ad ban by means of a legislative decree that does not require approval by Parliament. Country:ITALY Issue:SCIENTIFIC ISSUES On 31 May, representatives of the Italian NMA Assotabacco and CDA (Centro Documentazione di Assotabacco) visited PM's Neuchatel facility in Switzerland. Assotobacco Director Lucia Do Gregorio and Carlo Bassi and Francesco Arceri of the CDA met with a delegation of scientists and researchers to visit the Neuchatel plant and review some teclmical issues. Country:NORWAY Issue:CONSUMER FREEDOMS Norway's Ministry of Health has presented an action plan for a smoke-free environment 1999-2000. The plan includes increased activities for smoke-free workplaces and possible sanctions against outlets which have not complied with the tobacco law. The plan also includes the ingredients issue and increased cooperation with the European Union and World Health Organisation. Country:NORWAY Issue:LEGAL ISSUES A tobacco litigation seminar took place in Norway attended mainly by anti-tobacco campaigners, about 60 out of 70 participants. The event can be seen as a platform for further discussions on tobacco litigation between Norway and the U.S. The seminar was followed by a 10-minute TV debate in which the head of the Tobacco Damage Board, Liv Urdal, and the Secretary-General of the World Health Organisation, Gro Harlem Brundtland, participated. During the debate, the Tobacco Damage Board received aggressive complaints on why they have not succeeded in reducing smoking. 8