Philip Morris
890000 2nd Revised Forecast Presentation - Corporate Affairs John Dollisson 000615 - New York
Fields
- Author
- Dollison, J.
- Type
- SPCH, SPEECH, PRESENTATION
- REPT, REPORT, OTHER
- Attachment
- 2500101311/2500101323
- Area
- PLANNING RYEBROOK/BOARDROOM
- Site
- G45
- Request
- Stmn/R1-012
- Named Person
- Aviado
- Mckay, J.
- Connolly, G.
- Daynard, R.
- Document File
- 2500101294/2500101389/890000 Zrf Indonesia
- Litigation
- Stmn/Produced
- Named Organization
- Asia Pacific + Oceana Sports Assembly
- Asia Pacific Anti Tobacco League
- Bat Asia
- Boca Raton Corporate Affairs Conference
- Bw, Brown & Williamson
- Hong Kong Council on Smoking + Health
- Infotab Conference Hong Kong
- Infotab, Infotab
- Jti
- Korea Monopoly
- Korea Tobacco Assn
- Koreas Peak Sporting Assn
- Libertad Conference Capitalism Democracy
- Network of Ets Scientists Asia
- Ny Society
- Pan Asian Assn to Develop Trade Assn
- Pmi, Philip Morris International
- Regional Subgroup of Ianos
- RJR, R.J.Reynolds
- Shb, Shook,Hardy & Bacon
- Superband
- Ttm
- Uscea
- Ustr
- US Embassies
- Characteristic
- DRFT, DRAFT
- ILLE, ILLEGIBLE
- Date Loaded
- 05 Jun 1998
- UCSF Legacy ID
- fml19e00
Document Images
A
J0HN DOLLISSON
J.UNE 15 - NEW YORK
SLIDE
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LAST WEEKEND THE ASIA-PACIFIC ANTI-TOBACCO LEAGUE WAS
FOUNDED AT A MEETING IN TAIWAN.
SLIDE 2
THE MAIN PURPOSE OF THE LEAGUE IS TO ORGANISE ANTI-SMOKING
GROUPS IN THE ASIA-PACIFIC REGION TO WORK WITH ANTI-SMOKING
ACTIVISTS IN THE U.S. __~ TO FORCE THE U.S.
GOVERNMENT TO GIVE UP ITS POLICY OF PROMOTING CIGARETTE
SALES TO ASIAN COUNTRIES.
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THE MEETING WAS ATTENDED BY A NUMBER OF U. S. ANTI-SMOKERS k G'ZC4e4-1
ALSO IN ATTENDANCE WERE MOST OF ASIA'S ANTI-TOBACCO
PROPONENTS
1
THIS EVENT IS SIGNIFICANT TO ASIA FOR TWO REASONS. FIRSTLY,
IT PLACES MUCH GREATER PRESSURE ON U.S. CIGARETTE EXPORTS
AND SECOPfDLY, IT MARKS THE START OF A MUCH MORE
CO-ORDINATED, INTERNATIONALLY DRIVEN A2=TI-SMOYING CAMPAIGN
IN ASIA.
ASIA IS NOW THE PRIORITY TARGET FOR THE WORLD ANTI-TOBACCO
MOVEMENT.
WE SHOULD REMEMBER THAT U.S. CIGARETTE EXPORTS TO ASIA
. 47
ACCOUNT FOR CLOSE TO 70% OF OUR VOLUME AND 59s OF OUR
PROFITS. FUTHERMORE, FUTURE GROWTH IS LIKELY TO COME FROM
EXPORT MARKETS SUCH AS JAPAN, TAIWAN, KOREA A1~D THAILAND.
THE IMPLICATIONS FOR OUR BUSINESS BE IT EXPORTS OR LICEr1SEE4
SHOULD THIS LEAGUE BE SUCCESSFUL, ARE SIGNIFICANT.
AWARE THAT ASIA WOULD RECEIVE INCREASED ATTENTION BY THE
ANTI-SMOKERS WE AGREED AT THE BOCA RATON CORPORATE AFFAIRS
2
CONFERENCE LAST YEAR, TO IMPLEMENT A NUMBER OF KEY
STRATEGIES TO BOTH DEFEND THE INDUSTRY AND JUST AS
IFiPORTANT, TO TAKE THE OFFENSIVE.
, E
THESE KEY STRATEGIES ARE :
* TO RECRUIT, TRAIN AND PLACE CORPORATE AFFAIRS
SPECIALISTS.
* TO STRENGTHEN THE REGIONAL CORPORATE AFFAIRS BASE
AS A STRATEGY, COt?SULTANCY AND INFORMATICN CENTRE.
* TO ESTABLISH AND STRENGTHEN LOCAL TOBACCO ASSOCIATIONS.
* TO BUILD A NETWORK OF ALLIES INCLUDING MONOPOLIES.
AN EFFECTIVE CORPORATE AFFAIRS PROGRAM BY PM IN THE REGION
IS ESSENTIAL; AS TOBACCO TRADE ASSOCIATIONS EITHER DC NOT
EXIST OR ARE IN, EARLY STAGES OF DEVELOPMENT. ALSO, OUR
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COI4PETITORS DO NOT APPEAR TO PLACE MUCH EMPHASIS ON
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CORPORATE AFFAIRS. RJR HAS ~v -CORPORATE AFFAIRS
STAFF FOR ASIA-PACIFIC AND BAT/B&W HAS ONLY ONE IN ASIA.
OVER THE LAST 6 MONTHS OUR
PROGRESS AGAINST THESE STRATEGIES IS AS FOLLOWS :
SLIDE 5
ON RECRUITING, TRAINING AND PLACING STAFF; WE HAVE ADDED AN
ADDITIONAL MANAGER IN HONG KONG. THIS GIVES US AN
ZT"ESTABLISHMENT OF 6 FULL TIME AND 2 PART TIME~IN THE REGION.
WE ARE ALSO SEARCHING FOR AN ADDITIONAL SENIOR STAFF MEMBER
FOR HONG KONG GIVEN THE RECENT INCREASE IN ACTIVITIES
ESPECIALLY WITH RESPECT TO U.S. EXPORTS.
TO ENABLE CORPORATE AFFAIRS STAFF AND APPROPRIATE COUNTRY
MANAGERS TO ADDRESS ISSUES, WE UNDERTOOK A PLANNING WORKSHOP
IN MARCH, AN ISSUES TRAINING WORKSHOP IN APRIL, AND
PRESENTED GENERAL INFORMATION KITS ON EACH ISSUE.
4
MEDIA TRAINING COURSES ARE PLANNED FOR THE SECOND HALF OF
THIS YEARj,
TO MAXJMISE THE POTENTIAL OF OUR CORPORATE AFFAIRS STAFF AND
COUNTRY MANAGERS, THE HONG KONG REGIONAL OFFICE ALSO
PROVIDES STRATEGIC ADVICE, CONSULTANCY SUPPORT A'-,D
INFORMATION RESCURCES.
A MAJOR PROGRAtl TO ENHANCE INFORMATION QUALITY, QUANTITY AND
ACCESS IS BEING UNDERTAKEN WITH THE ASSISTANCE OF INFOTAB
AND SHOOK, HARDY AND BACON.
WE ARE ALSO PREPARING PACKAGED INFORMATION, CONSISTING OF AN
ASIAN TAILORED SPOKESPERSON'S MANUAL, A T190-PAGE SUMMARY OF 5"~
KEY ISSUE*, TOGETHER WITH A MORE DETAILED SUBMISSION ON EACH
ISSUE. ~A-t--V ~~rf~
CORPORATE AFFAIRS STAFF IN HONG KONG HAVE BEEN SET UP TO ACT
AS CONSULTANTS FOR THE REGION - CAPABLE OF FLYING IN TO
5
ADDRESS ISSUES, BE THEY SUBMISSION DRAFTING OR MEETINGS ON
THE SINGAPORE HEALTH WARNINGS, ADDRESSING THE MEDIA AS WE
DID LAST WEEKEND IN TAIWAN OR ASSISTING WITH A PROMOTION
SUCH AS "SUPERBAND" IN KOREA.
WE HAVE ALSO COMMENCED PREPARATION FOR DOCUMENT RETENTION
AND MADE AN ASSESSMENT OF LOCAL LAW FIRMS TO ASSIST ON
PRODUCT LIABILITY. THERE ARE ALREADY TWO LEGAL CASES IN THE
PHILIPPINES INVOLVING THE INDUSTRY AND NO DOUBT MORE WILL
OCCUR.
THE HONG KONG OFFICE IS ALSO CO-ORDINATING INTERNATIONAL
PROGRAMS INCLUDING :
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* VISITS TO THE NEW YORK SOCIETY (THAILAND, PHILIPPINES,
KOREA, AND TAIWAN ARE ON THE AGENDA FOR THIS YEAR).
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* OUR FIRST LIBITAD CONFERENCE IN HONG KONG ON JULY 18
TITLED "CAPITALISM, DEMOCRACY AND 1997".
* JOURNALISTS' VISITS TO THE U.S. (JAPAN JOURNALISTS
NEXT WEEK AND KOREA JOURNALISTS IN DECEMBER).
6
* VISITS BY MONOPOLIES - JTI TO EUROPE, TTM TO RICHMOND.
- ~
* SPONSORSHIP OF "SUPERBAND" (TAIWAN, PHILIPPINES4 JAPAN)
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DAY TO 7DA\Y D rSCU SIONS~~2E HELb ITH THE`~IASF?I~IG ON 0 FICE,
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SEEKING',USTR AP;D ~?El~ SUPPS~T ON T E ISSUES IN TH~
REG I ON~
SLIDE 7
EFFECTIVE TOBACCO TRADE ASSOCIATIONS WITH LOCAL SPOKESPEOPLE
ARE GENERALLY MORE CREDIBLE THAN U.S. COMPANIES. IN
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ADD ITION TOjAK tWt,- THE LEAD COMPANY ROLE ,-Q~_ ASSISTS WITH
TRAINING AND INFORMATION. WE HAVE ALSO
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A PAN-ASIA ASSOCIATION TO TRAIN, CONSULT WITH AND DEVELOP
ASSOCIATIONS TO A LEVEL WHERE THEY CAN RUN INDEPENDENTLY. SvGl~ "
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THE INAUGURAL MEETING OF THE KOREA TOBACCO ASSOCIATION WAS
HELD IN MAY. THE ORGANISATION, STAFFING, BUDGET AND
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ACTIVITIES WILL BE DISCUSSED AT THE NEXT MEETING TOGETHER
WITH AN INDUSTRY'S CODE OF PRACTICE.
WHILST THE TASK OF BUILDING LOCAL ALLIES WITHIN THE MEDIA,
d&
T-ftt,, , GOVERNIiENT, "T*R;B~ ~~ IS LEFT WITH
THE COUNTRY STAFF, REGIONAL ALLIES ARE ALSO REQUIRED.
ON TNE HEALTH ISSUE, WE ARE ASSESSING THE LITERATURE
ON ASIAN POPULATIONS LOOKING FOR POTENTIAL SPECIALISTS. THE
COt4PARISONS BETWEEN ASIAN AND CAUCASIAN POPULATIONS PRESENT
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INTERESTING~EVIDENCE ON THE SMOKING AND HEALTH CONTROVERSY.
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LONG T~LIF , XPEC tANC'IES.( DR. AVIADO'S EVIDENCE BEFORE THE
PHILIPPINES CONGRESSIONAL ENQUIRIES WAS PARTICULARLY
INFLUENTIAL ON DISCOURAGING UNNECESSARY ANTI-TOBACCO
LEGISLATION.
PM, RJR AND B&W AGREED TO FUND A NETWORK OF ETS SCIENTISTS
- 8 -
IN ASIA. CANDIDATES HAVE BEEN IDENTIFIED Ir? KOREA, TAIWAN,
HONG KONG, PHILIPPINES AND THAILAND. JTI'S SUPPORT IS BEING
SOUGHT TO EXPAND THE PROGRAM TO JAPAN.
~ K ON J . AT THE END OF
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-T4+E SESSION, WE WILL HAVE A CORE OF 10 SCIENTISTS WHO ARE
FULLY TRAINED ON THE ISSUES, READY AP:D PREPARED TO MAKE A
CONTRIBUTION BY WAY OF WRITING ARTICLES, BRIEFING GOVERNMENT
OFFICIALS AIJD SO FORTH. THEIR FIRST TASK WILL BE A PRESS
CONFERENCE IN HONG KONG IN LATE JUNE.
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PM IS COMMISSIONING LOCAL RESEARCH ON ADVERTISING AND
CONSUMPTION TO ADD TO THE LIMITED BODY OF DATA IN THE
REGION.
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THE ASIA PACIFIC AND OCEANA
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SPORTS ASSEMBLY (AI'05A---------T,9E---REG-IONAL" SIIB=GROIIP= `OF IANOS) ,
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4s".15 HAVE4ESTABLISHED A RELATIONSHIP WITH ITS PRESIDENT TO
REVIEW OPPORTUNITIES FOR SPONSORSHIP AND TO IDENTIFY KEY
SPORTING CONTACTS BY COUNTRY. RECENTLY THIS ASSOCIATION
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PROVIDED AQESS TO KOREASPEAK SPORTING ASSOCIATIONS.
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ENHANCING RELATIONS WITH MONOPOLIES4WILL NOT ONLY IMPROVE
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OUR BUSINESS RELATIONSHIP, BUT ALSO THE EFFECTIVENESS OF
TRADE ASSOCIATIONS AND THE INDUSTRY'S ABILITY TO INFLUENCE
NATIONAL POLICIES. -LA-T-ION--Wqm-~F .Tm.2-A2:L==THE
.._S.U.CCESEF-IJJL--I\IEffl`i`IAT`ICrt`°TCJ-MA-IN-T-A-IsN-BROA- DCAST.=AI1VER=-~;G IN
JAPAN,-I~-A°`~PR°IM'E~"E`XA~f PL E~VOF3p`PH~-S..
BY ENCOURAGING MEETINGS OF TRADE ASSOCIATIONS, INVITING
SENIOR MONOPOLY EXECUTIVES TO CORPORATE FUNCTIONS A2;D
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OFFERING CORPORATE AFFAIRS ASSISTANCE AND EXPERTISE~ WE ARE
BUILDING OUR RELATIONSHIP WITH MONOPOLIES.
WE ARE ALSO TAKING ADVANTAGE OF THE UPCOMING INFOTAB
CONFERENCE IN HONG KONG TO INVITE MEMBERS OF KEY h'_Ct'CPOLIES
IN ASIA.
SLIDE 9
THESE SLIDES SUMMARISE THE MAJOR ISSUES IN TfiE P.EG=C?".
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IP' JAPAT' - A SUCCESSFUL NEGOTIATIO'. ON BROADCAST
ADVERTISING, HEALTH WARr'INGS, AND "T R" AND
NICOTINE. ~&' fd19 VC I ~PM' h-colsv4tet
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IN TAIWAN - OUR FOCUS IS ON DEFENDING ADVERTISING SIGNAGE,
SEEKING SUPPORT FOR A1; ADVERTISING CODE OF
PRACTICE) ACTION AGAINST CO2'TRABA2TD, AND SEEKING
A DUTY REFUND ON OLD STOCKS.
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I?? HOr?G KO2?G - WE ARE FIGHTING THE ,jCOSH PROPOSALS COVERING
EVERYTHING FROM A2: ADVERTISING AND
SPONSORSHIP BAN, PUBLIC SMOKING RESTRICTIONS,
HEALTH WARNINGS AND CONSTITUENT LABELLING TO
A TAXy~ TO BUY OUT SPONSORSHIP. A SELF
REGULATORY APPROACH IS BEING ENCOURAGED.
SLIDE 10
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II`' KOREA - WE ARE LOBBYING TO CHANGE THF~EXCISE TAX W/15
ALLOCATED AND TO STOP Ol?GOING HARASSMENT BY THE
MONOPOLY. u~i
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IN THE PI:ILIPPItTES - WE HAVE SUCCESSFULLY DELAYED THE
PASSAGE OF NATIONAL LEGISLATION AND
MORE RECENTLY LOCAL LEGISLATION. PM
IS ALSO LOBBYING FOR TAX REFORM TO
STOP DISCRIMINATION OF FOREIGN OWNED
TRADEMARKS AND MOVE TO A SPECIFIC TAX
STRUCTURE.4 IS ft~ G'~tieJ,
IN THAILAND - THE SECTION 301 PETITION HAS GE2'ERATED
VERY NEGATIVE REGIONAL MEDIA. THE USCEA OR
Pts SHOULD ATTEMPT TO GET SOME BALANCE IN THE
MEDIA. A PROGRAM IS BEING DISCUSSED WITH i~f~
USCEA.
IN SINGAPORE - WE ENCOURAGED THE GOVERNMENT TC TAKE A
MORE COMMERCIAL APPROACH TO HEALTH WARNINGS
REGULATION AND NOW HAVE AN ONGOING DIALOGUE
ETITH GOVERNMENT.
SLIDL 11
TO DATE THE REGION HAS BEEN SUCCESSFUL AT FIGHTING OFF
ANTI-TOBACCO PROPOSALS.
IT IS ESSENTIAL THAT WE DEFEAT OR SUBSTANTIALLY WATERDOWN
C~,ut~: u.. a+~ <k /"+d4 !~y'?'A
THE(C--49SH PROPOSALS IN HONG KONG TC EP.SURE THAT IT IS NOT
USED AS A PRECEDENT FOR THE REGION.
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I PROPOSALS AND THEIR PROPOSER DR. JUDITH MCKAY ARE
RECEIVING AMPLE ATTENTION AND THE INDUSTRY HAS TAKEN A HIGH
PUBLIC PROFILE INCLUDING A NUMBER OF DEBATES ON RADIO AND
TELEVISION.
RECENT EVENTS SUGGEST THAT GREATER TIME AND ATTENTION WILL
HAVE TO BE GIVEN TO THE U.S. EXPORTS ISSUE AND CORPORATE
AFFAIRS GENERALLY IN THE REGION. WE ARE CONFIDENT THAT Pl!i'S
STRATEGIES AND RESOURCES, PARTICULARLY ITS STAFF CAN ADDRESS
THE CHALLENGES AHEAD. p
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THANK YOU. (4
