WPCC (W: IzPTXNߤYk hj6@XAe*k ?ìt[,/EN-ΝI,25"Aګn]}2PR|h-ʹ3zhO:= 䓞$$,:GN}QzD$U  L ]%APbHȋdX#}Uqծ:73UDV'ye=&}yI~sA[ u9~.4qVA=`;m tM="&98ʣL!_+u&9Jd0.c dkLOͥ{}푪:IBA*L| ]tEvr*UD~d WOd\!Rgآ] Qsd.AȋISnW8Aш}@Z茒 /8hh'4f(gb'].((3 $ %!UKUS.,..,,        TRWl6&A43' 6&A43'T"UK        0  (#$  0   "$UKUS.,..,,        "UK      6    Batesnumber2504046705. DDӀP%3|x "$UKUS.,..,,        "UK      9    Batesnumbers($$  0  (3y$ %!UKUS.,..,,        TRWl6&A43' 6&A43'T"UK      0  .   $UKUS.,..,,        "UK      2    Batesnumber2021269359,PhilipMorrisprivilegedcollection(PMpc),18March1988.  $UKUS.,..,,        "UK      3    Batesnumber204830651,Pmpc,1January1994. "$UKUS.,..,,        "UK      4    Batesnumber204853785,Pmpc,10April1995. "$UKUS.,..,,        "UK      5    Batesnumbers25040467022504046708,Pmpc,1August1989. "$UKUS.,..,,        "UK      7    Batesnumber2048255974,PMpc,27March1996. "$UKUS.,..,,        "UK      12    Batesnumbers20257993502025799369,Pmpc,1March1991. "$UKUS.,..,,        "UK      8    Batesnumber250012154,PMpc,27February1996.H ` "$UKUS.,..,,        "UK      11    TacoTuinstra. MovingForward.RJRNabiscosStevenGoldstoneontobaccoafter  McCain.TobaccoReporter1998;October:8790.  "$UKUS.,..,,        "UK      13    Batesnumber50088734,RJRprivilegedcollection,1December1982. ] "$UKUS.,..,,        "UK      15    ݀WuWilliamsAH,etal. LungcanceramongwomeninNorthEastChina.British  JournalofCancer1990; 62 :982987. # "$UKUS.,..,,        "UK      10    Batesnumbers20215021022021502134,Pmpc.Quoteson2021502105and  2021502111. d ) "$UKUS.,..,,        "UK      14    Batesnumber2028360178,Pmpc,memofromCharlesListertoMaxWinokur24  January1994. %!UKUS.,..,,        TRWl6&A43' 6&A43'T"UK     7XXdd7TRY 3' LetterWl6&A43' Letter 6&A4TTRWl6&A4Wl6&A4 6&A4 6&A4T@ aTOBACCOINDUSTRYDOCUMENTSFROMTHEMINNESOTADEPOSITORY:@@CC)a@@ a@ @ @@ a@@ a #  1      @ @ @@ a@@ a@@ a@ @ @@ a@@ a@ @ @@ a d    ` IMPLICATIONSFORGLOBALTOBACCOCONTROL  P  @aa)a@yy aBriefingPaperNo.8(November1998)byNorbertHirschhorn,MD @WWa IndustrystrategiesforChina      IthasbeenabundantlycleartoindustryandWallStreetanalyststhattobaccosalesinindustrializedcountriesarefalling.Profitsthereareatfurtherriskfrommultiplelawsuits,strongantitobaccomovements,increasingscientificevidenceoftheharmtobaccobringsbothtousersandtothosepassivelyexposed(childrenespecially),andtherevelationsofdecadeslongfraudanddeceptionintobaccoindustrydocuments.Theindustrysfavoritepublicrelationsfirm,BursonMarsteller,wroteapositionpapertitled, TheEffectofProductLiabilityLitigationonTobaccoIndustryStocks,inwhichitispointedoutthat foreignconsumptionofAmericancigarettescontinuestogrowdramatically...andtheimageofAmericancigarettes[is]bestintermsofqualityandcharacter.Japanisnowimporting,andChinashowsgreatpotential.h #  2       p   By1994,PhilipMorrisInternationalwasstillhopingforthatpotential.Inresponsetoaninternalquestion( ExpectationsforChina,Russia,Korea,Indonesiaandotherunderdevelopedmarketsintermsofvolumeandprofitpotential?),thereplywas, Intermsofvolume,Chinawillonlyprovidemeaningfulnumberswhenthemonopolyofmanufactureanddistributionislifted. #  3      ל \  Thecomplaintbecamelouderin1995,butsodidthehandrubbingovertheprospects:0  [Question:]Chinaisamarketofferinggreatpotential.Whatrestrictionsexistinthismarket,andarethereanyplanstopursuechallengingtheserestrictionsthroughgovernmentintervention(i.e.301actionwhichwasthevehicleusedtoopenupJapanandTaiwan)?[Answer:]Highimportdutiesandlocaltaxes(264%)severelylimitourabilitytoexportbothbeerandcigarettestoChina.PRCbannedanynewjointventuresinmanufactureofcigarettes.HavecooperationagreementwiththeChinaNationalTobacco l)#0 Corporationforthemanufactureofabrand(Red&White)forexport(500millionunitsshippedsinceJune1994)andthemanufactureofMarlboroforthedomesticmarket.DiscussingoptionsformanufacturewithinChina(optionsbeyondourcurrentcooperationagreement).NoplanstouseSection301tochallengeChinasplethoraofrestrictionsontradeandinvestment.PRCisthelargestmarketintheworld.AsPRCmovestowardmarketorientedeconomyandincomesrise,itoffersgreatpotentialforconsumers.Continuetodefendourcommercialrights. #  4      L "" (Section301ofthe1974TradeActauthorizedUSGovernmentpoliticalandotherkindsofassistancetovariousAmericanindustriestoopenupforeignmarketstoUSgoods,tobaccoincluded.ThestrategysucceededfortobaccoinTaiwan,JapanandKorea.In1998,however,PresidentClintoninstructedhisrepresentativesabroadtostoppressuringcountriestoopentheirdomesticmarketstoUStobacco.)  ThetriumvirateofUSmanufacturers,PhilipMorrisInternational,Inc.,R.J.Reynolds,andBrownandWilliamson,otherwisecompetitors,bandedtogethertoformtheUnitedStatesCigaretteExportAssociationtodealwithsuchtradeissues.In1989theyprepareda SettingtheRecordStraightstatement(ofwhichwehavethedraft)torespondtoarticlesandeditorialsintheThaipresssharplycriticizingtheUScompaniesattemptstoentertheThaimarket.Someremarkableanddemonstrablyfalseassertionsaremadeinthisdocument:1) Thereissimplynodiscerniblecorrelationbetweenadvertisingandthenumberofpeoplewhosmoke.2) Cigaretteadvertisingseekstoconvincesmokerstousecertainbrands...nottoinducenonsmokerstoinitiatesmoking.3) Handingoutnotebookstostudentsprintedwithcigarettebrandnamesandsellingchewinggumsimilartocigarettesinappearanceandpackagingistheworkoflocalentrepreneurs.4)Americantobaccomanufacturersdonottargetanyadvertisementstowardsminors....Likewise,AmericantobaccomanufacturersarenotattemptingtoenticethenonsmokingsegmentofAsianwomentoinitiatesmoking.Ifthemessagewasnotclearenough,thedocumentendswiththeringingdeclaration, Tradepolicy,notmoralsorhealthpolicy,isthefundamentalissueinvolvedintheexportationofcigarettes.| #  5       +V%6   ThecynicalthinkingofthisUnitedStatesCigaretteExportAssociationisbestdisplayedbytwoparagraphsthatwerecrossedoutbyhandfromthisdraftdocument.TheseexplainedthatforcingopentheThaimarkettoUScigaretteswasnothingliketheOpiumWarinChina,andthatanyway,Chinahadalreadybeenexportingitsowntobacco100yearsbefore. AndtodaytheChinesemonopolyisthelargestproducerandconsumeroftobaccoleafandcigarettesintheworld. #  6      כ N     Atechniqueusedbylawyersinpreparingaclientistoposethekindsofquestionsthatanadversarymightspring,whetherinalawsuit,byahostilejournalistorangry%  stockholder.AseriesofsuchquestionswaspreparedforGeoffreyBible,PhilipMorrisCEO,fortheannualstockholdersmeetingin1996.Whileoneachpageisthecaveat HypotheticalQuestions...ForIllustrativePurposesOnly,thedetailsofthequestionsrevealsomeastonishingtruths.Onequestionposesthefollowing:0  Mr.Bible,Ihavelistenedtoyoudescribewithpridethetremendoussuccessofyourinternationalbusiness....ButwhatIhavenotheardandthesilenceisalmostdeafeningiswhyyouhavenotbroughttothesemarketsthesamecorporateresponsibilityyoupurporttodisplayathome.WhydoyoucontinuetosamplecigarettesinChinabutban    thepracticeathome?Whydo100feetpluscowboystoweroverschoolsinHongKong " butareagainstCompanypolicyhere?Whyisthelegend UnderageSaleProhibitedonly H$ onthedomesticproduct?󀀀Whydontwedothesethingsineverymarketinwhichwe  F& operate?[emphasesintheoriginal]| #  7       "("" ̛̜  Theindustrywillcontinuetoinsist,statingquitecarefully,thatitiscigarettesthatarebeingexported,notsmoking;thatAmericancigaretteexportsdonotoverwhelmforeignmarkets; '0!0 thatamajorityoftheworldsproductionisprovidedbygovernmentownedcigarettemonopolieswhileUSexportsaccountforonly4%ofworldwidecigarettesales.0 #  8      ׀Whatisofcoursenot X*#4 mentionedarethemultiplearrangementstopurchase,lease,license,coown,andfranchisewithlocalcompanies,producingamyriadofnew qualitybrandsaddressingeachmarketsegment(youth,adults,women,professional,workingclass,andtheonesworriedabouthealth),andpromotedintheremarkablefashionwenowseeinAsia,LatinAmerica,Africa,EasternandCentralEurope.TheseveralUSandBritishtobaccocompaniesnowcontrolsthemajorityofworldcigarettesales.  ThereisaproblemwhenitcomestoChina,however.Andtheproblem,fortheindustryisglobalaswell.Theproblemisenvironmentaltobaccosmoke(ETS).Aoncesecretdocumenthascometolight,minutesfromanurgentindustrymeetinginAustraliacalled ProjectDownUnderinJuneof1987.  #  9      ל!| #  10      כThesubjectwasETS.JohnRuppofthelawfirmCovington& r  Burlingputittersely, Whereweare.Indeepshit.Thepublicsperceptionisincreasinglythat 8  ETSisbadforhealth. PERCEPTIONISEVERYTHING.ITDRIVESPUBLICPOLICY,the 6 minutesshout.Where% # theindustryspublicrelationsandlegalargumentisthat[tobacco] isanadultproductwithknownhealthrisks, #  11      ׀andthosesmokingmerelychoosetodoso,any ^ implicationthatETScancauseillnessordeathininnocentnonsmokerscanseriouslydamagetheindustry,bothincourtsoflawandnationallegislatures,aswellasinpublicseye,allovertheworld.  TheindustryfollowstheETSscientificliteraturequiteclosely,summarizingeveryarticleasitappears.OneannualsummaryistitledAsianLungCancerStudies.The1991edition H$ examinedtwentystudies,ofwhichseventeenlookedatlungcancerinnonsmokingwomenwhowereexposedtoETSandotherpollutants.ElevenoftheseventeenshoweddefiniteevidencethatETSwasacontributingfactor! #  12       n# * М   HOWTOALTERPUBLICPERCEPTIONTHATETSISDAMAGING?Project $l, DownUnderasked.Clearlybyattackingthepositivestudiesandtrumpetingthenegativeones.Onemustnotbelievethatthetobaccoindustryiswillingtobescientificallyobjectiveinthis '0!0 matter.TheperformanceevaluationofFrankG.Colby,DirectorofScientificIssuesforR.J.Reynolds,listsasthenumberoneareaofaccountability, EfficientlyprovidethetechnicalexpertisenecessaryfortheCompanytocombatantitobaccoclaims. #  13      ׀Toassistsuchcompany (  scientistscombatantitobaccoclaims,theindustryregularlyseekstorecruitlegitimatescientistsfromprestigiousuniversitiesasconsultants,particularlythosewhosestudiesseemtofavortheindustrysposition.InAsiascase, WecouldusesomeEuropeans(perhapsforthesakeofappearancewithsomeAsiancollaboration)todofirstratework.&| #  14      ׀Industrydocumentsname L  specificChinesescientiststheindustryintendstorecruittosupporttobacco.  IntryingtochangepublicperceptionwithrespecttoETStheindustrykeepsthespotlightononestudyonly,thatbyWuWilliamsandothers, #  15      ׀whichaloneofallthestudiesshowed,oddly r  enough,alowerrateoflungcancerinnonsmokingwomenexposedtoETSinShenyangand 8  Harbincities.ThatonestudyhasevenledsomeindustryspokespersonstosuggestthatmaybeETSisgoodforyou!    Whattheindustryfailstosaypublicly(althoughitisplainlywrittenintheirsummaryofthepaper)isthattheWuWilliamsstudy(amongseveralothersexaminingthematter)showedcigarettesmokingtobethemaincausalfactoroflungcancerinwomen.Theindustrywants, " insteadtokeepthedebatefocussednarrowlyonlungcancerinnonsmokingwomen(nevermindotherdemonstratedbadeffectsofETSoninfantsandchildren).  HereistheissueforChina,andothernationswherethemultinationaltobaccoindustrywantstoexpandthemarketforitscigarettesamongwomen,adolescentsandmen:Mmillionsofnewbutpreventablecasesoflungandothercancers,aswellasheartandrespiratorydiseasewillcausefarmoredeathsthananyfloodorearthquake.Howisaresponsiblenationtorespondtothisthreat?%  %   ("2 Ї /|)< Ї ,&4 Ї ,&4 Ї ,&4 Ї ,&4 Ї