25 th Septi-,tber 1974
ACTTON CY! '.,'MOI;TIIY, AND
QUC-StiOD5 and 7~ri~;we-rs at
Rotluuansl Annual C*;-~neral
Mef.*,tinq - 25th Sn_TA-. 274
....... . .
.
On cloriing tho forinal part of tbo Annuial
General Mocting,
Sir Derek Pritchard stat(,-d:-
"We ba-.,R for some time been aware that certain
orgnni~sations-
operating in wh,,at thcy ba-linve to bn the public
internst, havo
acclul-rc.-d one ur twu shares of companies wbose
activities are
in tne relevant tiold, with a view to raising
quest -ons on
their narticul~-r subject at the A.G.M. As long as
this is
done in moderation, and shareholders do not. find
-their Annual
Gemeral Meeting intolerably delayed, this might be
acceptable,
even though tho object of the exercise somotimes
is to pro 'pound
a-policy which is contrary to the company"s.,
shareholders'
and work people's interest; and with great respect
to ASH,
I feel-this must bc the case at an 4)4nnval
General Mecting where
a .shareholdar raises a question on behalf of
m,twtti-.5moking
organisatfon, w1hich affects this company.-
However. I am zLnxiouis that no Dbaroholder.
hoi-mver a-mall their
holding may be. should be refuaq~J
thowopportunity..of a,,ki4g
quactions in connection writh -your company I p
business L and it'
is In this .5ense that, I will answer -any
quostions from ASH,
wi-lich is legally represented here today.-.
First of all I would Jike -to.. thank thtmnl----~
-thahk you ~ Mr. Daube.,.
very much for the trouble and-courtesy you have.
'takc.-; in-giving
us -advance notice of youiq questions,
an.d,__t~ha% facvth4t _~Pu W'U're.
,
'
,
ask thz'm
Q=fd 6
h i 4 todxi Ita
. Thank you very much.
_e
w;~ q -4
mr- nanhr -them inx.
___
- - -
- -'-- -- - -- . ___
J
-
-- ~o
-
-
-1-st of elevpn.
out a Ii
aiisv~ars'~qiven by'-Sir'berek, are' U4~_ad
balQw.'_
-.Vctrck alato mentionad -baf oz-~_ qivizig his
answers tb at Ilid waa
N.
a a meeiiner, wit) ir. )~aube 'next to
and any information -with wbicb; 14t. Daube' .4as
n o t .. S f i d.
Q~_,- What proportiah.of. -the porp -IrLi pn
zeseard)a anzd_~-f
pany s expenqiti
4
develooment- is haynLEO
* ~
? 7
of
sr~oking
,
W14L. 6JZ70kl
7 L C 63~tlol IUL
t rc
~'Js de.Vot--d to -..smok e biii~, it i-
-ing. 4nd-b Uth relatod to
._vQF e4_65tant4al. I
YL _ 'ea4-Mt: --D'a ter yesto,rda"
r , . Ube let , ". Y,
_
tma-vridd to che'i* I nto, th - IL' bi i,
tho t iMO. OV, .1 . Q rl,.
1, n
.
round -figures it,Is Iabouk;~ 3/4'. 0~
ouf:i~iqenditurc. Ve zFe.:
f cotLv al f t1 Tobadl ...i"OS68rol CouIIPil-..Pd-
'
fn r., 411
d~'-o'f cou -, ind t
the $1. P.. V. _
(G6rnr.-.ft~r n
302056922
BATCo document for Province of British Columbia 19
April 1999


2
thof-e carry cn very considerable research. The
a:-jaociaLion2
indr~pnndcnt research is at a ratf- in exce!;a of
E2rn por
annum -- ptibli,_11ad in scientific Journals.
Recently wo havc
announced parLicipatinn by our U.K. nubsidiary and
two
othor corapanj,~-n, in a qiant E21;m reacarch
progralmne into
Lbe hTIOW-11 ---- ThiS -
is b-Ang carri,~-d out in America according to the
guidelines
pi.Y.)1.2o_,)ed by Professor 11unter and his
ccummittee.
What nffort _4-:.thn company ma7king to ensure
lovie-r Lar
and nicotine yields for itb cigarettes?
Thc; tobacco induntty throtghniat tbe-vonr]A, and
egnpcially
in th,-- U.K., has fr)r years past been devoting a
great deal
of effort and expendituraL.into spocialised
research into
the c.'fecLs of L;mo%ing and health, and your
tompany has
pioneered tb-- develo,",ent of cigarette filters.
For many
yeara we. have followed a policy of gradually
reducing, tar
and nicotine yields of our products while
maintaining
consumer acceptability.
Tax and - nicotine tablep ~arc- -, _!I _-':iheqI,
and the rates, as
you know. have been divi&ed into five groups. de
panding on
tar content, and tbe.wbole industry has adjusted
its
rang,2 of ptoducts to meet the requirements-of
those who
"prof or.. a- lowcr tar/nic coptiZnt - e.g. in-
Germarly, whicl-k,_
is our biggest market, we market the
laxgest-selling low-
nicotine brarid, Lord rz~ttra, -whilst -a glancc
at.:the- recently-
published Dapartment of -.:Health tar/nic. tables
-will show that
the great majority of yo4r company's brands-are in
thd top
half of the table. Research-into the d6v4lopment
of new
ciga'reLte f i#er.s and. imp-~oved products is
continuilng-all the
Q,- -Mhat..,,.is the company-s total expenditurd
on edv,6r+is'!ng, ..
-forms -of promotion?-
;U~am aorr I zaa not prLaparec-f. to. "sw?er thiz.
n 0t beeausx~
it..m. barraszt., or ~ecaui~4 6nd' it diff but-,
e 'r vould -not- wi-gh, n
ar~ vmVid ~ T bK:~ permiEti~d "bV--
my bo'aiif,' 6imiti Pui 1161y _"kbr -the
0
Vill your coMpany-pr publi '~#ith fuller
inf9r*ait'
ov .11 - C a-on
q!n-a-arborr maoxide,,, as -well, ate ta~r/niq
yield- in. ~Cigarettea?
..stated:-- - "The
-Goverriment,,voulzd.sui-ely,,b<-, unwif~ I
to- pqql i sh
furt-ter- fit~ures An addition- to,~th6_tar/nJL6
fiqurdt UnX;6_-sS
A
"heire -is 'Sqw~a qow*ASqS o inion- as,: to
~,:bich:.of;. tha~~i-
dir6=at6h6as wo Oo -not feel. "thatr we .~hOuljd e
f
_#.plbla u. SM41
arlttAi tttorio:xidE~ in -Smokl
nc
A4'
302056923
BATCo document for Province of British Columbia 19
April 1999


R - 3
in vir!w or the evidence of the damago cau&;cJ by
cigarette
z smoking, u-ill tho company conzuidcr
establishing a
cornpan.,,ation fund to benefit those who have
sutfered as
a result':.,
No.
As you will know the ascociation between cigarette
smoking
and cortain disease.,s is baned on epidemiologir-A
survays
and tbe funclzarpnt-Al reason- foi. the statistic
of Causation
are not yet knowni and fully understood. This
company with
othQr3 ill Lbe indu:~;try doen not express any
opinion (xi
this subjc-~-t- wc bclii.~-~,e i-L is the
responsibility of tbe
Departments of Health in the various countries in
wiiich we
operate to advise the public on matters of
bealt-b, and
thi-ir vinivs-, we kiiow, have been widely
publinhed. I feel
that we can say that like ourselves many
industries can
be said to be manufacturing something which causes
risk to
life, for instance the motor-car industry, which
can be
very lethal, shot guns, the liq'uor industry;
obviously drinking
to excess is something Ole liquor industry
ditcourages..-
many industries d"'cou'rag" excessos, includizn;
the food
industry. We cannot forcibly. try to restrict the
individual Is
f,reedom(it I-A neitlier possible. nor desirable)
of choice. It
is wrong for a-central body to try to do this.
-This is
something which. cvarybody -4-n cvery
country'viishes to defend,
iind it is therefore not practical to follow this
sualcrtioa.
alho pulblic at I-arge are wc-11 aware of the.
views of tn e
medical authorities and those ';64io choose -to
smoke' do 'it, of
their own free will, -. Furthcrmore every -time-
-a smoker ligh~Es
a clg'aaret-Le -he has -a reminder - a warning
printed-*n every packacjle
-no otbor. manufacturer gc>es,.to..such lengtha.
Q. can thb company gave ah assurance
that-jt--mak-e-s- no use of.
tobacco exported from Ahod sia?
Z.-
1 can dq-t):lat.
As a responsib.1p internatiOnal company ~trading
in ~some 150
different countrios, -wa, jia~va rdeticulauglv-
o1Pz6tvbd'the sanct.L;~.
0 f trade', wi
~'IaI4 down b - the 'United NAti ns in resoect - o
_y
jZbOdozia,,.,.-, Zarl~er - -this year'. it
w6e.,suggrested by. the press7
tha t one,of our"as .~Oci~4t.ed .- p*paniies 'i n-
-Hollan&,-was t4ding,
'd' Nn ti= r As A. refta
.~Rhode~ iap -tdbei~. Ve conducto aAjL, ~ -sti
Ve. ga
by~the'Dutch Gamrerhm6rit~
d our .-:co",= s-gi~tally- eoconerirt--~-'and-qlx-
4'adn's..
a
n any_ Wa
0. A-ftlic, d
h %--re, the.. dbat-l tiesn to which: yp r-company
cqnV~r bute
-932?
AM,
'. in tt.ho-.nitle..Imonth poriod'unde .r
revi-4~4, approkiMatol.y -80, 7
louvre com
'recoived,.(:kznati6ni3- from y. p6ny. These-
-in..
Maio
302056924
BATCo document for Province of British Columbia 19
April 1999


0. CikTk Llv! coiw,.-)any provid- evid(n;ce that
its toh;4cco navertininq
and pi:omoLioi).q c;aes nn;- ancourago cni.wieu -w
:~WL)L.L! QL
otherwise increase tbo size -oi-the total warket?
Thc-rv is no c-,videnco to sugqe:-;t that your
company's advortining
eithcr cncoura~j,~.,s children or non-sindkers to
start smoking,
or i.-x;.,-;tino smohnrs to mnolzo more. All our
advertining is
;,L,1,AY at cxi-lting =01.crn- inith th,,~ of
encouraging tbem, quitc, openly, to smoke our
brands instead
of othcrs. 11r: never advertise smoking in
children's
mac-,47.ines, and keep out of children's and
juvenile programes
0. Can thr-- company give art assurance that its
advertising in
tl,,:~ tT*.-.,. will- in futurc comply uritb t"
prov-3-ions of tbo-
voluntary codos of tobacco advertising?
Wo comply at. piesanL as a mattL-r of fact-.
Perhaps wc cam
discuss this in detail later. and you can show me
some
advertisements wbich you take exception to. We
feel
we have always.observed codes in all countries in
wbich
we manufacture our cigarettes. Any allegations to
the
contrary are really based. on the code itself, and
for
such de-ficiancies..we are not responsible. w-id I
-.4o not
thinkthere is any ground for accusing us of not
complying.
It rftay well be that when we see you next week we
can find.
so-me common ground and come to a
better-understanding.
.0. What proposals does the company have to
diversify, so that
it. -can without con-anarcial hardship to
-sharchv1ders, cease
tQ.Provide furtherlethal products?
i4 i&%io sp~oken' at other Annua'.1.'-Genera1
M66-tings. 3: think,
-about diversifying. We'always keep an eye open on
this.
subject, but -at the Moment, _part. icularly. in
view of ~tha..
ge'Lleral economic. and finan4al situation' in
industry, we have
no, plans:.for this other thai .i expanding the
geographical
is-'-
, 'I'V_ ' L 6 0..
A.SaUrIATMe 1a.9 it ~-prckbj p~~n t
-
,cM;5- qpQ _U 4tA ry
p4 q..
.
Sorrae wembLT& pfr -our group are ihVolVed"in the
wirfe'trade
in Ausiralia -and -example,;.. but m6st of our
Ohat,th(-r(~ is na,'na~lticul-Ar- area whi-ch
would
be,,cle;Lrly ii~ the-- iii~er _1-esf-, ~t`hrl
~b!Li,~h6lders drid withiff-
capabilitioa~ If any
t4 C-MSeLve-9,,,wa shall of co
uriso Pqrhaps, ydu
~ TD
--
Could brinq- ~ftny you fe'e 1, wO_-1A-- b~,
riglit-~ to -hy attent ion,
D
-a t -have any.plana,'to ~~rettain in thio
o b6 company mmr exyoes
T.
As. 4.zw, 6 retrairiii4 is u c6nceziied' -it
arises
'es. obyipusly. wa, will take tilia Very 'At
-*moent
bokiijgf. at it.: in the 3~igbt overall:world t
ends
L of r
40'%S bot 1.0.0k, lill-ely. to hapoen.
302056925
BATCo document for Province of British Columbia 19
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liavirxg aa.-;wared all the quvstionf3 Derek then
thanked
bir. Dwibo for couUng and putting all these fair
questions.
and. invit,--.-d him to ma],.c any comment3.
"I rcqret that I cannot find the answors wholly
satisfactory,
particularly in relation to the provision of
information relating
to your .~-.,,pendituru on advortising, etc. whpre
it may compare with
your oxpenditlirn on Resaaz~i;lhi and
D;--velop-ment and the harmfill
effects of smakinq; or on the voluntary codes
which the tobacco
manufacturErshave undertaken to ob--crve. I am
hoping, however,
that as a result of these questiotiz, arid. our-
discuczians you
might find it worthwhile to moderate some of tho
company's
adverti5ing, and to provide the public with more
information
orr the known hazards involved in smj*.,Ling
cigaruttes.d-
i i3ubsequen'tly spoke' to Graham. McKelVie wbo
alo..'.
attented the A.G.M., and.he informed me that'he
'heard'
Sir Derek say that.he would provida
T)au~be'.%,rith advertising
-expenditure etc. in private. Gg- -felt that thii
WIOUld-.:be
a: -pretty` reckaoss -thing to do. I
(C.M. Is sending me acopy
--of VIL--,jiL-_Lfons and, Anaw--r:-pr-A,ir-d_!D
~ihi ch
m- hold of).
Y. Q
ap ugh. to get'
a
302056926
BATCo document for Province of British Columbia 19
April 1999