SECRET Sqw,latorv Issues and the r,"-'s Tobacco R-irp-- C/ CONTRNTS r \ 1^1 Ile Intro&=tian ............................................ page I Dire&- Regulatory Issues ................................ page 1 Regulatory Authorities ................................. Page 2 Regulatory Regiiremats and Product Inniovatim .......... Page 3 BAT and Regulatory Issues ............................... Page 7 R----,.Iitdcns for action within BAT Q=% ............. page 9 ticns for o=rdimtim of Policy (External) ... Page ii AppaxliX 1 Indirect EnV:L,..-d.&1 Iss; ) Available in the UK An-,dJx 2 Possible Scientific Wmlcpmm*z ) AppemUx 3 Rmpirments of Regulatory Authorities Appe.-dix 4 Odsting Regulatory Procedures in Germany (-,n C) ("i BATCo document for Province of British Columbia 25 October 1999 - 1 - FMTTATCFV TcMJM AND qTM GFCUPIS 70BACCO BUSTMVIIM Introduction In the 1990's a probable scenario is that the tres of the 1980's, tending to favour the consLoer at the expense of the producer, will continue and may well accelerate as other preo=q-t such as East/West tensions diminish. This will lead to increasingly st:ringent regulationis cm*=Uing const-er prol=ts, partly as a result of the activities of INgreen" and bealLh -- ~ Ict pressure groups, although GC7verrmants are generally reluctant to legislate'for the e)LL-L.. views of such gr-ps, even for tobacco. BMW=, it seems likely that the tobacco inIztry will cmitinuie to be at the fu-ia-& of oxh regulatory activity as is enacted and even in the absence of zpmr4fl- legislation cw-g~ will, require prolucts that are seen to nake some cmzxmicm to these ism . Examples include lead free petrol, d-ffi-inated coffee, and from the tobacco industry ultra-l- tar cig-ttes, and pesticidL-ftee tobacco etc.) . in terms of the cigarette market x to these ism will be of crucial impartance. Great q:t= =uties will. arise for the am f-t-ws vft best anticipate and respond to the constraints imposed in the market place, although in addition to X-IUct irlr--t3.- support may be r---y for existing brands. mle- controversy over BArMAY arose principally frm a Philip Morris view that it was an immative and successful contender in the ultra low tar sepmTt, which would increasingly itportant as regulatoory pressure forced tar ceilings daAwar~ds- This paper seeks to identify the regulatory issues which will directly impact on the Grow,s tobacco bush-jess in the next ten years, and aoncluaes with prcp~,--I- for their management. In &3dition there are other aspects of Regulatory Ism to be considered. 7 he more general a of an. world win have inportant inplicatians In the 1990s for all iTzIUstries. Plor eoozple, the Zj-& to XMdLIM ni-irns of f1l cocarbans; (CPC's) has already bad direct effects within the BAT Group i.e. the to discontinue the G-13 expansion process. This area wiU be considered in Appendix 1. Finally, them my be other events or scientific developments which my or may rx7t be takEn up by regulators, and which iray not be directly related to the industry, but which could have indirect effects and may influence total sales. By their nature, such events (e.g. a dramatic increase in the incidence of AMS or a major scientific breakthrough undermining =Tent attitudes to the cause of di--) am both difficalt to forecast and almost inpossible to azytrol. As it is debatable wt~ether they strictly fall within the scope of regulatory issues they are briefly considered in Apperdix 2. Direct Recrilatorv Tssues (Wsfira and k7ticiDated) Ln 11 he following topics am considered to faLU within this area, all of which C) relate to prcduct, development. %, cr\ 1. (a) ceilings for deliveries of individual smoke components in mairw-_,-pm smoke and associated methods for measuring delivery (Tar, nicotine, czll-= morimcide and sxh other smoke components which may be ide.-tified by regulatory authorities). BATCo document for Province of British Columbia 25 October 1999 - 2 - (b) 0eilings for deliveries of irdividual smo~m in sidestream --k (again tar, nicotine etc.). 2. Evaluation of novel IALuais~ses uhich may be used in future cigarettes against regulatory reqlir~s and consideratians of reasonable safety. 3. Further evaluation of additives, agruct-ir-l-, or any other &AMicaLl added to t at any stage Prior to sale. 4. cigarettes with low him pLyjAdaity. 5. Biological tests for measuring -taa- qjality. 6. Bi(I-i-I tests for MaMM-ing interactions With the swiroment (e.g. meastmement of Ma adducts). Underlying these sper- i fi r regulatory natters are tbe general smaking and health issues of which the folluding are those - St trequently raised by regulators: (a) Associations between smoking or environmental taba and disease. (b) c-pensation. (c) Addiction. pa=, I atorv Authrmities In most ca the ulti-te regulatory authority is the Gover~~ of the country enacting legislati- which regulates the industry. Ha-wer, there are frequently advisory bodies who initiate proposed legislation and who may be prepared to consular the views of the industry at various stages before the legislation is fix- I i-i - Direct cmtact with politicians is also possible. In some cases the industry is xvgulated on a voluntary basis with some opportunity for modifying the pruposed basis of the notably in the United Kingdom- In m3rry camtries ex:Lst or are set up, to monitor the legislaticn e.g. In that tar ceilings. are not - - - such organizations, although set up to police the legislation, are freqjently c=wulted, eq-mally wh- legislation is -xied, and again omtwt with them nay be beneticial. Mus paper as=3es that in wny comtries, therefore, there will be same dialogue with Regulatory Authorities and that there may be advantages in doing so. In many cases -%xh rli-,---ions are mandatory. However, geographical variaticris in culture mist be identified and taken into accatut. For exatTle in the UK the Independent Scientific Ccmittee prefer an ongoing discussion with manufacb=ers prior to, during and subsequent to, the evaluation of rxNei processes. Failure to respond could lead to the inpoisitian of an exc,-Mi~jgly denanding test schedule. On the other hand there is practically no dialogue in the M. Ln CD 7 he specific requirements of regulatory authorities world wide are identified rl~ in Appendix 3, together with details (where known) of advisory bodies, and ON organizations delegated to police the regulatict-r.. The more general NJ irplications for product development are (Ii-l-A next. CD -`j r-j BATCo document for Province of British Columbia 25 October 1999 - 3 - Few,latory Recpiirere&-% ard Product Truxvaticn Straightforward regulatory matters such as a requirement that the pack shows deliveries of tar and nicatine arising e-ither through legislation or by voluntary a9.,-1 U.'st be o=plied with. These are fully detailed in Appendix 3 to this n0ts. However, the greatest cpport:unities exist for companies who anticipate future regulatory requirements and who have produicts ready to comply with any changes which ray be reggired. In Some ca , crgaing dLalc~ with regulatory authorities (as in the wo gives a clear indication of possible faWm requirements and may even lead to unsound proposals being at-A&L-ed (again in the UK, the in&stry views on the lack of relevance of "shart to= N biological tests such as the "Ames" test, proposed for um in ranking products on the UK market were accepted, at least in the dxwt term). The current scenario of Regulatory . on regional basis is as follows: United Kirodam Mw system here is unique. Me Independwt Scientific Ccmittee (almost excl~isively wmimlly qualified) bave in their tenr. of reference a r pirement to give advice to the Government and DOustry. Me Government then negotiate directly with rniustry arxi some of the Ommittees' ---.ndations are accepted by both parties as the basi ofabindirg voluntary agreement- However, the irktastry (or indivi&ml ccq-des) can appr-ch the ccmittee directly on specific issues. nia- fourth repar (L988) of the u ' ~ - lk=& Scientific Committee made the following L-.,-,Jati- which relate to future product deve1cpnent: [1,2 General policy] Quote 3. The sales weighted average tar yield should not be more than ]3 mg1cigarette by the end of 1988 and should continue to decline with a target of 12 mg1cigarette by the end of 1991. (para 12) 4. The tar yields of new bra nds should continue to be subject to a ceiling defined as the sales weighted average tar yield of the middle and low-to-middle tar brands during the preceding six-month survey period. (para 13) 5. As soon as possible there should be an upper limit of 16 mg tar per cigarette placed on existing brands on sale, reducing to 15 mg after two years and becoming 14 mg for ALL brands after four years. (para 31) 6. While the overall aim should be towards reductions in the tar; nicotine ratio this should not be through the enhancement nor solely through the maintenance of present-day middle range nicotine levels (around 1.3 mg1cigarette). In general the sales C:) weighted average nicotine yields should fall, and on the lines M-1 of the suggestion made in our Third Report (para 20) there 0\ should continue to be some brands available to the public with nicotine yields below I mg and with tar yields reduced to a proportionately greater extent (be7ow 8 mg). (para 34) CD Uli BATCo document for Province of British Columbia 25 October 1999 - 4 - 7. Manufacturers should take steps to reduce carbon monoxide yields of all brands of cigarettes and the yields of new brands should be subject to a ceiling defined as the sales weighted average carbon monoxide yield of brands In the middle and low-to-middle tar bands during the preceding six-month survey period. (para 20) 8. Government and the tobacco industry should consider what further action could be taken to persuade more smokers to favour low tar brands. (para 33) And, on a longer term basis:- There should be further investigation of the possibility of developing a range of short-ter2 tests to predict the carcinogenic activity of smoke from wdified products. (para 40) 10. The Investigation of yields of other smoke components as identified in the Third Report (para 27) In representative cigarette types should continue. (para 43) 11. The Committee should continue to scrutinize all new developments: and In addition to the regular determinations of tarICOInicotine carried out by the Laboratory of the Government Chemist, there should be studies in newly emerging products of the composition of particulate and gaseous phases of the smoke and of the effect of different sooking patterns on yields and human uptake. (para 44) 16. The tobacco industry should pursue research into ways of reducing the amount, irritancy and other deleterious properties of sidestream smoke fron all tobacco products. (para 73) Unquote While the future of tbese is uncertain (partly because of the unresolved future nature Of the if wW, betmm the ISC and the EB::), if adopted by the UK Gom they would set very clea lines within which future pr~ knovaticns wadd have to be targeted and v"3ted- Flor eoGanple ., - - 31 would require a - -Jderab3e investment in Aerosol Hyysics and Respiratciry ftysiology to caq-t-itly eVl- the identified area. C---UY speakirv the influence of the = is greatest in countries of the comm=-mlth. in Germany scoe ten Government organizations are respot ible for the regulatory issuies that relate to the Ticbaoco Industry. These are identified in Appendix 4. As an exnple of work that could impinge directly an future produict developtent the Federal Health Lwtitute (F4V4--gC=-X2-1e1tSaMt) is investigating specific substances ca7tained in tzba= -ke (Nitrosmunes, Benzpyrene and Fbrmaldehyde) and there,is a proposal for a hybrid list of smoked v.&%AA=itS (the so called 'M=-au" Index) to be developed as well as L_t:~ _. 11 lylations for lower tar to niattine ratios. Them is also legislation in respect of maximum residue levels for 11 pesticides, recamarded levels for a further 71 pesticides, and a further limit for ncn-registered pesticides. Tn Geniany discussions with Faegulatory Authorities are possible but are nearly al,,mys carried cut on an informal basis by sciext-ists who bridge the gap CD bet.veen industry and "irdependent" regulatory authorities. -4 X~' BATCo document for Province of British Columbia 25 October 1999 -.5 - The mifluence of German regulations is greatest in Europe. For exmple, the Medical Board in Finland have given a favourable response to the use of German regulations for additives in Finland. Other nlr-n --o-Hes Ddsting F-platory t in other European countries vary considerably for exanple with regard to tar ceilimp and the use of additives (in same countries them are no regulaticns f= additives). Germany, italy is unique amcng B=pean ccuntries in havirxI a legal requirement for wavimim resubje levels for pesticides. However, the EEC Draft directive on tar ceil.ings is 1LImly to P4=&uAe local requiranents in mo/199i. 7he Eec view on tobacco additives is not yet known. FM - -&,ies Mile anti --king pressures are ext--ly high, regulatory reggirments vary considerably from Finland on the one band (Tar ceilings simila to proposed in the EEE to Austria on the od-Ar (Tar aaUIM of 25 mg). Mvere is a draft directive in the EEC for tar ceilinc;s of 15 xg by the ed of 3.992 and 12 mg by the end of L"7, exemption beirV for Greece. If this passes U--xjh the Fs+~-nt stages of the EEr- legislative procedures it win have to be implemented by ESC countries in 1990/1991. M'Pe EEC in the context of the Europe Against cancer 1,_,, (docunent. CC24 (86) 717 final) has al proposed that there should be reorientation of t prrA-lirn tzmerds "less tcodr- varieties". The Oamnission of the is also interested in Methods of detecting tm (cellular genet-ic material) damaging agents in I-- and have issued the follading statement through P. Bot=deau, Environment and Ndn-nur-lear Energy Pasearch, Directorate-Ger*xal for Science, Pasearch and Development, of the European Cct--iti-, Rn-sels, Belg-=: "Ibe European Coczunities have iUp-t-'It regulatory .-.*..-IbiIities for environmental protect~ic~. Mx- incIude, the protection, of wcdm=, of the general pqnhttim and of the awircrnent f-rm rL--Jm due to awiranwtal chemicals - both Irxw' -4--1-19 and already presen In the envircrnent. The scientific basi for such regulations is, to a significant degree, provided by envi-A~A~l research at the leve3. of the cm=nity." This statanant is an lrrtzr-%-+i-n to "Methods for detactim rn dmnagin; agents in Himons". ILRC Scientific Publication No. a9, Lyon 1988, a review of a 1988 conference at which there were some 6a papers, 5 of which investigate smokirg as a source of environmental ctw-ir-Ala. If sripcifie- smo)w rhpiml,, were to be found to cause a significant increase in rm adducts in _q=kers then there would be enormous pressure to regulate the delivery of Mr .h materials because, regardless of the scientific arguments, this is a subject of 17mTense concern to the general population akin to nuclear energy. Mle need for monitorirg these areas will be considered later. With the current exoepticn of additives, activities in the E3DC may set the Ln trend elsewbere and this could now include Eastern bloc countries. C:) r,_' (71 PIJ C:) --4 Qn BATCo document for Province of British Columbia 25 October 1999 - 6 - As yet tbexe has been no approach to the EEC to ascertain their attitude- towards =1ified products, an area in uhich the UK TSC has given qualified behin:1-the M4)port. it is that this area be eVlored with the EEC. M& There is a voluntary Z-jLu-wE-j& to show tar and nicotine deliveries an advertisements, measurement being by a method agreed by the Pederal Trades Ommissicn (FIq. In addition the Departn~ of Health and Dmen Pasources are currently examinirzi a , - or - q its List of all additives used by the US tobacco in1istry. As yet they have m3de no cmvent or judigement, an this list or on individual additives. There is also a legal requirement for --i-- residue limits for 16 pesticides although there are no limits for other pesticides approved for use in USA. Most recently a pxcposal for the regulation of the Trbaoco, Irkbstry has been put forard by Senator BNvxd Xemiedy, Which MIght involve mq*nditux-e of up to $200,000,000, and with a broad remit for caltrol of the industry on issLm such as the use of additives. Health arxi Welfare Cxv4a, a Gov-,-& , pjblish listings of clck" 3a+-e nicotine and carbon U-X=ide levels quarterly bat them are no upper ~~ts - M.-- - no other requirements. Cmxlm-sate and nic&-ine levels are published by the Td=co Institate of Japan, an organization m K z :-*Ing both Gove~L, -& and lrxtmtry but there are is no regairement for No other requirements. MAR Countri- Again Uwe are aft=g Witi-smm'drv pressures led by the Go~~ of As,jait and SwAl Arabia &cUrq through aranizations such as SAM (Saudi Arabian UduJaLJ~. ) - Theset have led to the arbitrary introduLtim of delivery ce4lings, current maxim 12 zq tar, o.s ag nicotine'. Mxse low figures may be re&xed even Amthw in the near fUbxre (tar to 8 z2f.) Other Coun-i- The position varies but tends to follow that in developed c=rtries with which there my be some affinity e-g. South and latin America relate to USA and Con=vealth countries relate to UK. Ln CD rIj 0 \ N) CD --I ON BATCo document for Province of British Columbia 25 October 1999 7 - PIT and RecP11 atorv I BAT objectives in relation to Regulatory Iss; can be suz=arised as follaws: 1. To ensure that regulatory canstraints uhich are not scien0fl-Ily justified are not, introduoe& 2. Th ensure that BAT prcducts (both new 1 .1 .. quotions of ccrwentional prah=ts and innoivative designs): (a) c-ply with the r-pirments of raplatary auftwities (b) any additional C-Pany regAremm-Its, arising ftm ST's of the state of sciertific knowledge (duty of care) (c) meet any r--sary narketiM req'i I (d) increase m&.et share. 3. To anticipate ftture, regAmments; of regulatary authwities, and to try to influence tbem. 4. To ensure that BAT prah=ts are disadvantaged as little as possible by the iq=itim of unscund testing procedures or through competitors activities. To achieve these objectives the follading key activities can be identified: 1. To be aware of the current views of regulatory audxz:ities. 2. 7b establish -q-W Tddelir-, particularly V-Rxe Mere are no regulatory requiremayl-, (either in partiailar scientitic areas or in particular countries), or for use in crt-WiM disoussi= with regulat-y authorities and to carry cut any rmosessary zemacl to clarify regulatory issues. 3. To critically review the scientific literature relating to any additive or pmoess, JALI J- for U- in a*xetes, agairst reTaLatiory require-ft and oampany (y,iAal irM. Th adVift, With external consultants if r-,y, an any ftwtber , Ir necessary to coWlete an adequate exminatim of any Proposed additive or prooess. Th enSUre that such necessary research is completed to a-eptable scift*Atic standards and the results appraised. 4. To put in place and use the r----%,y ca*zr-ts to adALw effective mmication of the BAT position to key people. in practice it is -,,; convenient to ocnsider the managemert of this area with regard to the internal anift external aCt3.VltleS Of the BAT CD Group. cbjective 2 and key activities 1-3 are internal activities of rI_I lip BAT Group, the remairiler are external. CTI r"'; CD --4 ---4 BATCo document for Province of British Columbia 26 October 1999 - 8 - Tnt.rp.l Cbie&iv,- Thp- BAT G=u; should be organized along the following lines: Iderytifica== of Ddsting & =ici;xted T= and -r for Action cmeirnation -_Imt fall within G=.* St=tegyI - - - - - - - - - - - - V Relevant - - - - - - BAT Group External Research Fhowledge L- - - - - - - - - - - - - - MT knowledge - - - - - - - - - Base and Guidelines I CAC RED Dqnxtmerits L t, "I C Tcbacco Strategy Rwiew Tom V 03 vered by Grcmp cmq-A-, eg-cially Agmed, at annual neeting of Research Policy Gr-V Arises f= BAT G=V Research P-.+- pagulat-Y pb*d-ments cac O-Pud- Activities (in apprcpri- Marketing DVUt ) in ralatim country) ) to 4mcific, ) Existing Products ) Markets 1'ro= .Ype Now Prodwts Modifications to ard lalidation* d-Ves in F-julatory R I I or in BAT GrCUP Policy 7 his may be ra-c-aired at a later stage (e.g. on specific products immediately prior to laurch)- C) NJ ON C) _--j co BATCo document for Province of British Columbia 25 October 1999 - 9 - proposed Action by Ftecommendation-- for action --r-th i n RkT Grn - 0 rcli -1 i r= ("Ir 0on-Mes) 1. Exten-1 k-wledge (e.g. info=atim obtained at BAT Q=p oftenial conferences) is not always circulated effectively by Group camanies to the centre. 7his a=jld be irpxvved. Die to other demands on the time of CL,.,k-,,.Le R&D AIH/IMr Depart-7t, Millbank the cngoing review of scia*.Jfic papers is becoming increasingly difficult to mamtain. 2. Coordination, of the appraisal of additives across the BAT Group Group sIxmId be intrah-d (agreed in principle RM 1989, riot yet implemented). 3. Intro~ion of syst- '-or ensuring guidelines are met in AUVREr operating companies. 4. More work should be car---ed out to invest-Igate the AIK pyrolysis products of additives/materials used in cig--tt- (again, agreed in principle RPG 1989). 5. More attention. should be given to the probl- likely to. BAT Q70W be associated with valie-ting potentW new 6. In future Regulatory Iss; , including comideration of AUVCAC their Upat on am&ict Develcpnent, W3-U be given higher priority in the Group R&D Strategy meetings. L .7 C, BATCo document for Province of British Columbia 25 October 1999 - 10 - ExtexTr-1 01:r~--&ives Essentially objectives all relate to getting the BkT view an regulatory issues accepted externa-UY as far as possible. M-Lis is dwe by lobbying by various to target graips as di--A earlier. However, thF-=--- are maw ons which do this and these are now 1 i nted: ortmnizaticr-s wi+-h PAT Tnvolvers-nt 1 Either d=ectly of indirectly the BAT Group is involved with all of the follading , vho wM lobby an tobacco-related issues. Manufac----ers' associations may of course take a point of view different frm that of BAT, notably on regulatory iSSLM With direct ommacial, inplicat:~- e.g. cigarette testing methods for BAR=AY and currmytly the minin= level of tar (1, 2 or 4 mg). BAT indh=ries and its principal sul-idiarjes BAT in&zscries Associates (e.g. IMAsa)) BATCo BATCo -;-iAiavies BATCo Associaties; (e.g. SkandinwrLsk) aATM Ftiendly i- (e.g. Tiedemann's) Manafact=n= Assocjzticns (e.g. Tkq A--cci-ti=s of Manufacturers Associations (e.g. CECCM) INFUTAB Doin role infonostion M-m-mination) CCRMM~ 2. 0rqaniz&"-cn:s without PAT Tnvolv-T-,nt The follawing organmtions with uhm BAT is not directly involved WIth will also lobby on issues. Fbr the Arm i rist the Trvi"-! , V T.I. aM4 and any other Map,f-h--ers A.S.H. and simila organizations A-.oc i ---4 en B&T is not involved in. world-wide. F.O.R.E.S.T. & slynila org. world-wide. Ywt -iiel/scientific Auth. Occasional Medical/Scie7tific Auth. Doctors etc. Politicians Politicians Standards arganizations politicians Discussion Given the lary-- MMber of organizations who may express views an regulatory issues, scue c=Iination is clearly rm-c---Ary within the BAT group to ensure that a ocz..cx view is put over unless th~e are special reasons for 10=1 variations. rcLthin the various med)ers of the indistry, coordination of industry-related activities is also desirable: if this is not possible then Qr knowledge of =cpetito- positions, where different from that of the BAT Group, C:) is required. saever, further difficulties arise from the rationalization of 0, different interests within specific BAT coapanies i.e. tar minima, attitudes towards testim of Roll-Your-Own tobacco, use of particular additives, etc. and these omplic-acions furt - strengthen the case for central coordination. C) c0 BATCo document for Province of British Columbia 25 October 1999 ReconTer-dations; for Coorrii-tion of Policv (rxternRl) 1. It is assumed that the broad principles of Policy will be set by the Tobacco Strategy Review Team. 2. in ccamm with sn*Jxq and health issues the regulatory issues di-,---A here have a sciertific:/medical basis of increasirq ccuplexity. Hance the focus for the BAT response should be Corporate R&D Department, working within the remit of the Tobacco Strategy Review M&m. 3. Detailed Policy on Regulatory Issues for all BAT Group Coqpanies should be set by 0orporate R&D Dq=tment after consultaticn with the following, as necessary: (a) 0-airman of BATCO (Director responsible for R&D Department). (b) Other CAC Ttbaoco Ompanies and if appropriate BkTCo subsidiaries. (c) Legal Department BA=- (d) Public Affairs Departnert BA=. (e) M-keting Depart-it BA=- (f) Leaf Department BkMo. All those ..,ActaL~xad With the implementation of the policy in individual conpanies should be advised through No. 1s that activities mist relate to the policy set out by Corporate R&D Departwnt, who will have responsibility for coordinatug the Group's external activities in the areas defined in this note. Position papers on Regulatory Ism win be comurdcated to No. Is by Corporate REM Department. (Mis follows BkTco policy on hand].ing Smo1ang and Health Ism and is carzistent with the fact that marry Pagulatory Authorities deal both with Smdoxg and Health Lssues and the Regulatory matters defined in this 5. Implementation of Policy will largely be carried out within individual BAT Intastries or BUM subsidiaries, and by a variety of ir%Uviduals, who may or may riot have scientific training. The cmLs =.wt be on these irzilviduals to CMISUlt With "I-Le R&D Depart:ment if they feel unable to cope with the scientific o=plexity of any of the J so , and when special J st assistance (Dr Thornton, Dr Boyse, Mr Mitchel.1 or Mr Dymcrxi) may be required. This applies most obviously to rli--icns with kncwledgeable eAen-al authorities wk-D may be hos-tile to the industry. it is difficult to be speci ic in this area but the CAc countries are m- - likely to have their own R&D staff able to assist. 6. With regard to specific orWizaticns the foumLng are made: (a) Natioml Marxifactll-rs Associations (NMA's) In countries where BAT sells cigarettes BAT should be represented on these associations with the objective of getting BAT views accepted. There is one anarralcus organizaticn, TAC (Uhl, where BAZ does not sell (-n cigare-t-tes. Ho;,7ever, the in~t u-Lfluence of the UK, particularly in Coamrwealth countries, justifies continued mmnbership. M-ds should be ~Lwiewed circa 1992 with the advent of the harmonized common market and in relation to CECCM. N: CD c0 BATCo document for Province of British Columbia 25 October 1999 - 12 (b) The role of NMA's MY charge in relation to regiaully hased organizaticns such as CEOCH. Circa 1992 there my be a ca for oansiA-ring whether it is r---y to belcrzj both to CM34 arxi to NMhls, altb-gh in principle actim at EEC level re*drw . At present, with fcr caMle no sign of ban=ivation cn additives in the ESC, it would rxxessary to balwig both to CDOCK and to individual NM;Lls. (c) lff= On Regulatory Issues there Would appear to be a strifatly I imi ted role far MOXYMB as an informatim semimfing orgazii-tion. (d) BAT Group membership Is rxw strcng and with a wide g&-grarhical spread the cml---- In recent yeaxs this m9mimtim has beccime Mw=m iqxwtant, partly V-x-- of its delegated role in cigarette delivery measurement. We shculd continue to sWort tiLts crganimt ,icn but the activities of delegates, at all levels, should be led and coardinated. by G-k-Late R&D in Millbank (AuVRET). (e) or-nizatior- without PAT Trwolvement (i) Naticral Manufact=ers A-x0aticris Obviously if we are not members there are no d1reCt CppCMtUn1t.Jes for influence and in the ca of the T.I. in the M, %hich we C='M rejoin, this is a risk to be x-midered. (ii) MqdicaVScientific Authorities Giving encou-j--A- to reputable irLk1,er4.jL scientists to Ictby regulators is a legitimate activity and is carried cut in the Group- 7. VIT Omwit--t If the BAT Grcup is to be an effective of the orgwdzatia-z listed above, tcp m-agement --t reco7LLze this ard allow fcr the costs in time of senior staff and mmW involved. REr/IEW/SC 30 th January 1990 Ln CD r1 J cr" C-D BATCo document for Province of British Columbia 25 October 1999