I 16T17
I AST UPORTING SERVICE
9 M 11
A DYING INDUSTRY
Fcr BAT C:"ANY LTD ROSEMARY SIM
prog: PANOz--;.%U Service BBC TV 1 Senci:
4039'/AGs
Dae 14.4.30 Tfime: 2010 Durvion 50m'-
CD
r\3
r"J
r1 j
C7%
BAT Industries document for Province of British
Columbia 11 November 1999


SIR GEORGE YOUNG:
The tobacco industry in a successful industry,
made up of
very big companies operating internationally who
are selling a
product which they regard as a legal one that-ta
legitimate for
them to sell. And they're using all the commercial
means at
their disposal to defend their interests. They are
a very
effective, wall organised lobby.
Peter Taylor:
Good evening. On World Health Day last week the
World
Health Organisation declared war on the tobacco
industry. it
maid no worthwhile progress can be achieved unless
governments
are prepared to put the intereatsof public health
before those of
private tobacco enterprise. But private tobacco
enterprise has
no intention of durrenderIng the commodity on
which its wealth
is ba3eds cigarettes. Tonight Panorama brings you
the Inside
story of how, where and with what weapons the
industry is fighting
for it* sux-rival.
Part I "We are not Doctors"
FILM
i-~11~ TAYLOR:
Brazil, In Third World countries like Brazil
cigarette
sales are on the increase. In the West they're
stagnant or
declining. Brazil is the industry0s new frontier.
It's. no
accident sales are soaring. To capture this new
generat-jon. of
smokers the industry uses all the sophisticated
marketing techniques
it can no longer use in the West.
- Ad shown - Holl~rwood.
Itts a generation largely unaware of the hazards
of
cigarettes and of the mountain of evidence with
which the West is
now familiar. In Britain reports from the Royal
College of
Physicians; -in America the Government's annual
summaries of the
latest research linking cigarettes not with just
lung cancer
but bronchitis, emphysema and heart disease.
Reports from the
World Health Organisation warning developing
countries to learn
the lessons of the Weat._FBut the tobacco industry
doesn' . t
accept the medical evidence. It says it makes low
tar cigarettes
because consumers want them not because they're
safer. Worldwide
M)
C>
r1 j
r"i
CYN
Qn
BAT Industries document for Province of British
Columbia 11 November 1999


2
the industry needs cigarettes as much as smokers
do.
- Ad shown - Advance.
The Communist bloc and several other countries
have their
own state monopolies. In the rest of the world six
giant multi-
national companies dominate the business,
manufacturing more than
seven cigarat~es in every tan smoked. In recent
years they've
all diversified. They now own ships and oil
companiesp mining
interests and department stores; they manufacture
dog foods,
soft drinks, beers, spirits, paper packag-InC and
cosmetics. But
for all of them the real money lies in cigarettes.
Philip
Morris, makers of Marlboro - the world's best
selling brand:
In 1978 its profits from tobacco alone were C340
million.
Headquartersp New York City, American Brandap
makers of
Pall Mall, in Britain they own Gallahers, makers
of Benson and
Hedges.' In 1978 American Brands made an operating
profit from
tobacco of C150 million. Headquarters, New York
City. In
Britain Gallahers also market Winston cig-arettes,
but everywhere
else the red and white pack is synonomous with
R.J.Raynolds,
America's biggest cigarette manufacturer. Profits
from tobacco
in L978, X330 million. World headquartersp Winston
Sale=,
Sorth Carolina.
Rothmans International, the worldt, fifta biggest
cigarette
manufacturer. Itts a British company based in
London. Operat-
ing prof-it last year, LlOO million. But Rothmans
International
is controlled by the Rembrandt Groupq the third
largest corporation
in South Africa. Group headquarters, Johannesburg.
The Imperial Group owns both Wills, the makers of
Embassy,
and Players. T=perlalls operating profits from
tobacco in 1978..
966 million. Group headquarters, London.
Two years ago State Express Three 5s, was launched
onto the
British market by BrItIsh-American Tobaccov BATp
the world's
biggest manufacturer of tobacco products. In the
United States
its subsidiary Brown and Williamson is the third
biggest cigarette
company. Elsewhere BAT has over 60 subsidiaries
manufacturing
more than 300 brands of cigarette. BATIs operating
profit from
tobacco in 1978, C350 million. Group headquarters,
Victoria
Street, London, N)
C:)
Brazil is the jewel in BATts crown. Here it's
biggest sub- r\.)
sidiary, Souza Cr-uz, has 8No of the market. Its
position an the CZ)
f\j
smoking and health is.3ue is typical of the
industry worldwide. 1\j
Cr\
ON
BAT Industries document for Province of British
Columbia 11 November 1999


3
ALVT LONG- (Souza Cruz)
The medical evidence, as far as I am aware, is of
a
statistical nature and it isq as you know, the
industry's view
that no evidence has been produced to establish a
causal relation-
ship between smoking and any of the diseases with
which it has
been associated.
DR.S.J.GREEN: (Research chemist)
I think this is a very naive v-1ew and quite
simply I believe
that just to say evidence is statistical and can't
prove any-thing
is a nonsense. I think that nearly all evidence
these days is
statistical. I believe that experiments can be
carried out
and have been carrIed out and I think that in a
nutshell what we
can show is that smoking Is a very serious causal
factor as far
as the smoking population is concerned-
P.T:
Dr.Greexx isn't just another anti-smokIng
crusader. Hels an
eminent scientist who for 20 years directed
research in the
tobacco industry. Last September he retired from
the board of
Brtt13h-American Tobacco. Ta the early 1703 in
statements like
this from its scientists the industry was advised
to revise its
position on 3moklng and health.
"I believe it will not be possible to maintain
indefizitely
the rather hollow 'we are not doctors% stance.,
and that in due
course we shall have to come up in public with a
rather more
positive approach towards cigarette safety. In my
view it would
be beat to be in a position to say in public what
we believe in
private."
Clearly the industry has not accepted the adv-ice
which it was
given in 1972. Zight -years later BAT is still
avoiding the issue,
saying they can't comment an medical matters
because they're not
doctors.
Be you believe that cigarette amok:Lng is harmful
to health?
A..L:
A.s you know, I am not a medical. man and
therefore I cannot
offer medical opinion. I would be incompetent to
offer a medical
opinion on--that question. I am, of course, aware
and my company
is aware that there is a very substantial
controversy in this
area, but I am also aware that a very substantial
body Of --fesearch rQ
C:)
is being dedicated to this area in which the
industry contributes N:_
quite significantly.
BAT Industries document for Province of British
Columbia 11 November 1999


4
P.T:
A.L:
Are you saying you don't know?
That is exactly what I'm saying.
P.T:
And, Mr.Long was speak.:Lng for BAT. Last month
BAT wrote to
Panorama and clarified the position. They said:
the industry
Position was covered by, Mr.Long in Brazil and we
can do no more
than endorse that statement. But that statement
isn't endorsed
by the man who was BATIs senior scientist for
nearly. 20 years.
Do ybu believe that cigarette smoking Is harmful?
DR.G:
Wellq as I've saidv most smokers can smoke all
their lives
w-ithout any apparent ha , but if you say do I
believe that
smoking can cause harm X1m quite sure it can and
does. In fact,
I'm quite sure it's a major factor in lung cancer
in our society.
For example, and perhaps I can express it better
by saying thist
In my opinion if we could get a decrease in the
prevalence of
smoking we would get a decrease In the incidence
of lung cancer.
P.T:
The reason for the industry's position lies in
America. Here
it has faced a string of law suits brought by
consumers who say
that cigarettes have damaged their health.
The-fire claiming huge
sums of money in compensation. Claims currently
run to over
40 million dollars. So far the industry hasn't
lost a case. If
It were to lose a case it could face an avalanche
of literally-
thousands of similar claims. T72o result? The
industry might
face economic ruin. No wonder the industrx-y
closes ranks where-
ver itts interests are threatened. The companies
operating in
the United States fl-11ce a powerful lobby
organisation, the
Tobacco Institute. The companies in Britain are
represented
trr the Tobacco Adrisory Council, the TAC. In
Germany the
multinationals have combined with domestic and
European manu-
facturers to form the Verband Der Cigaretten
Industry, and to
keep a watching brief on bodies like the Common
Market Commission
and the World Health Organisation, the industry
has now set up an
office in Brussels, 1COSI, the International
Committee on Smoking
Issues. The companies finance the office in
Brussels, its
staff seldom talk to the press. ICOSI keeps a lo'w
profile: C)
s.oklng and health is its busimess. Last year it
issued a
NJ
r1 i
0 \
C~o
13 AT Industries document for Province of British
COIUMbia 11 Novernber 1999


- 5 -
series of background briefing- papers. Their
purpose, to make sure
companies are consistent in their answers on
smoking and health.
This Was their basic position:
"Scientific research does not support the
conclusion that
tobacco smoke or the cowtituents found in tobacco
smoke have been
proven to cause disease in humans."
Dr.Green doesn't have much time for 1COS1.
DR.G.
I must say, the scientists in the industry, and
that's world-
vide I think, refer to that particular
organ13ation as the Flat
Ea-r th S o c I a t-y
P.T:
Why?
DR.G:
For obvious reasons. (Laughter) I dontt think it's
a
scientifict scientifically based organl3ation.
P.T:
ICOSM's veneer of scientific authority is designed
to do one
thing, to convince the public that the smoking and
health issue
is not cut and dried.
"The smoking and health quest-ion is unresolved
and answers
will be found only through unbiased scientific
enquiry."
Part 2
The i=dustrydoes spend millions an research but
todaT-:, the
industr-y funds others to carry out the research
it once did i t3elf.
One of the industry,13 most famous research
institutes vas financed
by- the Verband in Hamburg. Here a team of
scientists under
Professor Dontan-rille conducted a series of
important animal
experiments to study the effects of the inhalation
of cigarette
smoke an mice and on hamsters. But they also
conducted experiments
an piV vhose reapiratory system is Most akin to
hISMATIA. The
piC3 not only inhaled cigarette smoke but were
injected with
nicattze to study, the effect on
arteris;.-oclerosiss the arterial
disease that leads to heart attack. Suddenly in
June 1975 the
Verband closed the institute and rented it to th*.
state health NJ
authority for one deutsch mark a year. Today the
labs st-111 C)
stand empty. In an official statement the Verband
said the C)
institute hadntt the resourcesi for new research
and that N)
N)
0 \
BAT IndustrieS document for Province of BritiSh
Columbia 11 November 1999


6
Professor Dontenvilleg its director, was ill. No
scientist
who worked here was prepared to talk openly about
what had
happened. One scientist however was prepared to
talk to us on
tape as long as he remained anonymous. This is an
wxact trans-
lation of what he saidt
SCIENTIST:
It is certainly not right to 3ay that there was a
shortage
of Money. In the institute we alway3 had the best
of everything
we needed. . We had a budget of between 6 and 8
million marks a
year.
P.T:
Were you a-11 surprised when the institute was
closed down?
SCI:
Yea, it was for us like a flash of lightning out
of the skr
when we were told about the closure of the
institute.
P.T:
Was Professor- DonteavIlle ill?.
SCI:
One can answer that with a simple no. He was -in
good health
and once when we talked about the official
annotmcement he said
to us 'it says here that I-Im. ill. Vellt look at
me, how sick I
amO and he v" very healthy. He was being
sarcastic.
P.T:
Why was the imnt-Itute shut down?
SCI.-
There"s the version given in the official
statement, and there
is another version which nearly everybody believed
when the
institute was closed downg namely, if a connection
between smoking
and va3cular disease was established thi&
cigarette industry, would
be pushed even more into the firing line. We
supposed that the
-~astitute was closied down because of the results
we were getting
from our experiments imto arterio-sclerosis in the
pig.
P.Ts
Does the industry know that cigarettes are
harmful?
SCI:
I think only someone who covers his eyes with Clue
w-ill not
~=ov that and only someone who is very
irresponsible could deny
it. r%j
P.T: CD
That was one scientist's opinion. Redundancy
paymex~is were N3
C)
generous. These are the minutes of the Verband
meeting at which 111)
CD
BAT Industries document for Province of British
Columbia 11 November 1999


they agreed to Pay Professor Dontenville 1.6
million deutschmark3,
nearly half a million pounds, to cover his salary
until he was
60 - he was around 50 when the institute was
closed down. Today
Professor Dontenvtlle works here in the Pathology
Department at
Hamburg Hospital. He declined to talk to us. When
I rang him
and asked him about his research he said hatd
forgotten it all,
DR.G:
Well, he had a good memory the last time I spoke
to him.
P.T:
Arterio-sclerosis can cripple as well as kill.
SURGECNz FILM of operating theatri
Itm actually going to actually do a below knee
amputation
of his right leg. You can see on the foot there's
an area of
early gangrene. in the ..over this particular base
of the toe.
P.T:
This, patient at Bartls Hospital has an acute form
of'the
disease Hamburg was investig-atingp hardening of
the arteries.
He already had several arteries replaced. Of the
3,000 patients
Bart's has treated for arteria-1 disease 9-Th were
smokers. only
a fraction face amputatIon, but - all those who do
have been.
maable to.stop smokling, amputation is the last
resort. No one
knows exactly what causes arterio-sclarosis,
that's exactly what
they vere trying to find out in Hamburg. Meanwhile
this surgeon
amputates 50 smokers legs a year.
DR.G- Are the hawks now In control?
I don't know how to answer that question. I
suppose in some
places the hawks must be on the ... in the
ancendence. This is
a.531ming that-scientlats are doves. They're very
much on tap'
I'm afraid at the moment and not at all on top.
Plart 3 P. T -
Governments can no longer stand by. In a letter to
a
constituent earlier this year 4r3.Thatcher saidt
"My Hea2th Ministers and I are in no doubt that
smoking
is the major preventable cause of illness and
premature death
in the UK."
rQ
C)
Her Government is only the latest to try and do
something r,-)
about it. Her Junior Health Minister Sir George
Young is C)
N)
currently leading his team in negotiating a
voluntary agreement r1i
ON
BAT Industries document for Province of British
Columbia 11 November 1999


with the TAC.
8
'701CE: SIR GEORGE YOUNG - FIIJM of minutes -
Well, we're meeting the tobacco boys again
tomorrow, we've
sent them an agenda and perhaps we can just Joe
gently through
the items that werd like to discuss.
P.T:
it'. a three yearly ritual in which the unspoken
threat of
legislation is supposed to squeeze concessions the
industry
wouldn't otherwise rive. Si= George wants a
stronger health
warning arld an advertising ban.
SIR GEORGE YOUNG:
I don't think any Health Minister can be unaware
of the
tremendous drain on. the health 3ervice caused by
smoking. 50,000
premature deaths, 50 million days lost from work
through sickness
and if.ve could use the resources currently
devoted to looking
after those i.11 from smoking to disea3es which
are non-
preventable, kidney patients, people sufferine
from hip joints
that need replacementr we could make a big
improvement on the
country's health.
P.T:
In p=imciplet Mrs.Tbatcher is behind Sir George
Young in
acceptine that cigarettes kill 50,000 people a
yearp but ranged
against him are the 1=terests of other powerful
government
dopartments. John Nottga Department of Trade, L300
million from
tobacco expo=ts. James Prior-rs Department of
Employment, 40,000
jobs plus bal a million people indirectly
affected, people lil~e
small shopkeepers. Sir Keith Joseph's Department
of Industry-9
3 tOO0 new jobs created from L20 millIon. worth of
Government
assistance since 1972. Sir Geoffrey Rove at the
Treasury,
Z2' billion in revenue from cigarettes, enough.to
pay, for a third.
of the National Health Service. DespIte his
Government's Sta.ted
concern for the health of the nation, in his last
budget Sir
Geoffrey only put 5 p. on a packet of 20.
Clgarettes are still
cheaper in real terms than they were 15 years ago.
So the .
industry calculates that in the last resort this
Government won't
legislate to ban cigarette advertising. (Various
ads shown)
Heanwhile Sir George Young is still trying
frIendly
persuasion. The negotiations should have been over
last month. r1j
* C~)
Theytre deadlocked. The industry is calling his
bluff, It rQ
argues that advertising doesn't affect consumption
and only C:)
rNj
CN
BAT Industries document for Province of British
Columbia 11 November 1999


9
persuades 3mokers to sw-itch brands. Further, it
points out that
a ban wouldn't allow it to advertise the low tar
brands the
Government wishes to encourage. But the Department
of Hes-1th
realises that nicotine is a more powerful
persuader than
advertising and accepts that many hardened smokers
are unwilling
or unable to give up. Sir George Young wlshe3 to
create a fresh
atmosphere for the next generation.
SM G.Y:
The argument about advertising is that one wants
to create a
climate when non smoking is actually the norm and
smoking is
unusual. And :if, particularly children, grow up
in an atmos-
phere where on the Way to 3ChOOl they see a lot of
postersi,
where they see sports sponsored by tobacco
companies, it is very
difficult indeed to got the health message across.
My, oun view
is that at some point over the next 10 or 20 years
adverti3im.g
will probably stopt whether ittll be through
legislation or through
voluntary agreement with the industry I honestly
don't kno~w. But
if you look at the trends in Western Europe this
13 undoubtedly
the trend and 3: don't particularly see why this
country ahould
resist. it.
P.T:
But, the, industry will resi3t as long as it can.
For RAT it's
not a question of if but when advertising will be
banned. This
was its forecast at a special conference last
July.
"An averviev of the progressive trends in
restrictions on
advertising up to 1990 concludes that prospects;
are poor. Among
the =oat important BAT markets the number
completely free of.a.1.1
-,ans and restrictions will have diminished from
eight in 1979
to two. These restrictions primarily affect the
persuasive
nature of advarti3ing."
But, there ire ways round most thinC3. John Player
is now
symonomous with sport. Sponsorship buys, Imperial
a fund of
goodwill, besides, itf3 better to have your
product associated
with a healthy sport like rugby" than
bronchitis.Land emphysema.
Most important of all, you get your name on
television.
NJ
- rMM of match
bans on . advertising an TV since the 160a,
sponsorship C:)
N)
has enabled the companies to turn defeat into
v-ictor7. But r1j
C11
r1 j
L14
BAT Industries document for Province of British
Columbia 11 November 1999


- 10 -
there aze strict rules. Only two posters in shotj
bear-Ing the
house =ame not the brand. Although sponsorship
isn't covered
by the current negotiations the industry suspects
its television
days a_--a numbered. BAT is already looking to the
future when
TV pic=:res may come not just from powerful ground
stations but
from satellites in the sky.
OAA advertising bans. tend to fall unevenly on
countries
within regions, companies should explore the
opportunities to
co-operate one with another by beaming TV and
radio advertising
into a fbant country. Obviously the political
risks of this
action nust be weighed up and treated with
prudence."
JOE CALZFANO: FILM of address
Mme invItation to come to where the flavour is is
a ticket
to a ca=cer ward.
P.T:
I= America the industry lies most deeply
entrenched. Health
Mini3t,~= Joe Cali-fano was its moat bitter
opponent.
JOE CALMFANO' . .
We can expect that the tobacco industry will do
everything
in its power to counteract ou= public health
effo=ts.
P.T:
Th 3 was his last attackq launched at the fourth
world
conference on smoking- and health in Stockholm
last June. The
enemy vas In the audience, agents of a special
T.COSI task force.
One of them wrote a concluding memo=amdum.
D=.Srnst Bruckner
of the Ve=band in Hamburg.. In his memorandum he
first rev-1eved
the -zi-amokers, strategy and, -in particular,
their intention to
attack smoking as an anti-social habit, an area in
which the-
indusczy knew It was vulnerable.
lr=t just a confirmation of our awn anal-Tsis that
the
social acceptability issue w121 be the central
battleground on
which ou= case will be lost or won."
-his is the central battleground, America,
birthplace of
tobacco, home of the modern cigarette. Here the
industry
faces war on all fronts. ItA. moat serious threat
a defection NJ
amonVz Americats smokers. Long encouraged to
believe that C)
smoki=C was manly, they're now being told itt3 a
dirty, nasty C)
r1 j
r1 j
C71
N)
BAT IndustrieS document for Province of BritiSh
Columbia 11 November 1999


habit. Buz the industry is fighting back will all
the weapons
at its dismoaal. The first attack comes from
leg-islation sweeping
America banning, for example, smoking in
restaurants. Here in
A-apoli3, Maryland, as in dozens of citiesq
smoking in public
places has become a political. issue. The Maryl=d
Senate is
cu=exLtl-r rev-ie%rizig anti-smoking legislation.
In the shadow of
the Senaza House the industryts lobb7-ista report
back to base.
Paul MaHe==yls job is to put out brush fires.
They're breaking
out in the county next door.
FILM of McHenry -
on 'phone.
PAUL Me_--74TtT:
.... House Btl.11511 ... Montgomery Count7ts been
introduced
which w-bulld --date a self-extingulahing
cigarette and a self-
extinguishIn algar-such a thing could ever be
made... 4on phone)
P.T:
The industry has a huge pay roll of McRe-y . This
Senate
Committee is now considering legislation vhich
would force
restaura=zs to provide non-smoking areas. The
induatrj-~s most
.militant opponent is GASP - Grotrp Against
Smokers Pollution, to
th& industry enemies of freedom.
P.Mc-
. If yvu or I or my party, your party are going
into di=er
we really don"t segregate ourselves according to
smoker and non-
smoker# zhat's why the no smoking zones go unused.
Don't
condemn our product, let each guy choose himself
uUat he wants
to do. There's plent-y of health warnings on
cigarettes. what
cigaret-.e3 do for people, I can't tell you it's
good.for yaul I
cantt tal:_ you itt, bad for you,- but at least
itts a matter of
choice.
P.T:
The i=duztx-y1s most daunting opponent is John
Banzhaf
of Action on Smoking and Health, pioneer of the
kind of legislation
now before the Maryland Senate.
OrFICIAL: - F11_4 of address
To= -me is 3pelt B A 1.1 Z H A F, air.
JOHN BAS~: N)
B A. N Z H A F, the man from Ash. C)
OFF: N)
C)
The =an from Ash, okay, sir. t1_j
r1 i
CN
f"i
Un
BAT Industries document for Province of British
ColUrnbia 11 Novernber 1999


In any case, this growing desire for non-smoking
rights has,
I say, tran3la-.ad itself into some 38 states and
several
hundreds of ci:ies and counties and towns, passing
these kind of
restrictions. The non-smokers rights movement
remind.3 smokers
that their amcking is annoying and irritating to
the great majority
of people arot:nd them.
'WCMAlf: JHolding glass jar)
May be t!:~ will help firm up your attitude this
week because
this is kind of what your lung-3 look liki, of
course it doesn't
have the actual butts in it but this black gook,
as we call it in
Smoke Enders, is really- ... (FILM fades)
P.T:
Second a=ack, Smoke Enders. They help addicts kick
the
habit. They've over 200,000 graduates and claim a
success rate of
70%. Not surprising at 300,dallars for eight
lectures but at least
you can 'smoke for the first five. And big
buaine33 is now 3-ign-112
up too. The list reada like the Dow Jones top 20.
All was well
until government joined the queue. The US
Department of Health
Education-& Welfare. . It offered to 3ubsidisa Its
employees to
attend the Smoke Enders- course, indu3try flexed
Ita political
muscles. It's one of.the most powerful lobbies on
Capitol Hill,
controlling a network of Southern polit-Ici-,
whose interests
coincide with its own. Behind the scenes the
imdu3try's
lobb7i3ta got to work, they had words in the ears
of their
fav,our-Ite tobacco congressmen. A. confidential
industry source-
explained wha= happened when the congressmen went
to work. Me
government subsidy was Smoke Enders Achilles heel.
"Our lobbTist3 say our congressional people have
been asm%red
that H.E.Y. w-_'11 end the programme. Reason:
because our people
have been put-ring the beat on. They insi3ted-
H.E.W. employees
must file with the Internal Revenue Service about
this benefit.
It seems H.E.7. may throw its hands up and say to
hall with it.*
P.T:
I showed Jaquie Rogers, Smoke Enders founder, what
the source NJ
had said. She didn't know- why the programme had
been stopped. C)
She, was surprised and angry at what she read. N)
CD
r1 i
r1 i
0 \
rQ
C\
BAT Industries document for Province of British
Columbia 11 November 1999


- 13 -
JAQUIE ROGERS:
I'm Just ... there's no way that I here in
Phtlipsburg, New Jersey
can fight the tobacco lobby. It's outrageous but
I'm not so
naive to think that they're going to act
reasonably when economics
are involved.
P.Tt
Third attack. In this building is an off-ice of
Lea
Burnettq one of the world's biggest advertising
agencies, Last
year they launched a now campaign for an old
client.
"Can you name a life insurance company that gives
you
a discount just for being healthy?"
"Te3v Allstate Life...."
"Our Allstate agent already- gives me a d1scount
on home owners
insuranc a. Nov w-ith their new Healthy American
Plan he 13
giv-Lng me a discount on. life insurance tcos I
dontt smoke and
I passed the Healthy Amer-ican, physical."
(DIffiefilt to hear)
To the industry thIs networked ad was a threat.
Your days
before the first commercial lilt the air there was
a pre-emptive
strike. Tobacco growers in. North CarolinaL
accused Allstata . of
discrimination. State insurance officials
announced an
invest1gation. Allstate, - who Id kept their
campaign a close
secret, were am, ad at the leak, although they
knew the industry
had friends.
ROBERT SEILER: (A-Ilstate)
They hav-& employees and people on retainer In
most of the
states to watch for thinip that are developing
that might be
4-nimicable to their interest, so I suspect they
found out abo'Ut
it in the course of the, film beinC shot. But, in
fact, they,
told us where it was filmed which was something I
did not kixov
myself but I wouldn't necessarily have to I=ov in
my job,
P.Tt
But the people whose job it was to know about
A-11staters
campaign was its advertising agency Leo Burnett*
Some'one in
BurnetV3 tipped off another client, Philip
Morr-ts, breaking the
cardinal rule that a client's account is
confidential. Phi4p r\.)
Morris' Marlbora,%cowboy, the most successful
campaign'in advert- C)
ising history, was invented by Leo Burnet4j,
perhaps ctgnrettes
rQ
were more important than insurance! This is a
letter that r\)
BAT Industries document for Province of British
Columbia 11 November 1999


14
passed the leak on, written by senior
Vice-Pres-Ldent of PhIlip,
Morris James C.Bovling. It was sent to the Tobacco
Institute
in Washington and said:
"Dear Bill, the people at Lea Burnetthave sent us
these
copies of a new campaign for A-11state Insurance
featuring their
new HeaLlthy American Life Insurance Plan. I think
you, Panzer,
.Xastenbaum, et a-It should got together to
consider a measure to
get this one off. Please keep us posted and let us
know if we
can feed anything back to Burnett. Best regardag
cordiallyg
James C.Bowling."
Ind so the trail continued from Leo Burnettto
Philip Morris,
then from Philip Morris to the Tobacco Institute
and from there
to the growers in North Carolina. Shortly
afterwards Allstate
dropped the ad.
Ittack number four: The tobacco growers of America
are
a powerful political constituency. Half a million
of them,
like Vir6ril Mitchell, scattered across the great
states of the
South, they plant their 3eedat politicians and
presidents reap
their votes. Last year this tobacco coalition
scored its
biggest political victory to date. Joe Califano.,
, scarcely over
his Stockholm jet lag, was kicked out of Carterts
Cabinet.
J.C~:
The President in terms of myself told me that
..yesterday-
aftornoon that I bad done a superb job, to use his
words, as
the best secretary of H.L.W. but that'the same
qualities of
leadership and drive that made me a good secretary
created
friction with certain members of the White House
staff. They're
telling reporters, according to the new3paper3,
that they're
concerned about tobacco and the 3mok,'- issue and
that he had to
change the Cabinet arouncL to get ready for the
1980 elections.
TIRGIL M=CHELL: (Tobacco farmer)
Nobody liked him, ever-ybody thought he was just
meddlIng,
that he was like an old maid school teacher
meddling in something,
that he didatt have no business to meddle in.
P.T:
The industry, couldn't have done better if it had
written
Virgil's lLnes itself.
CD
BAT Industries document for Province of British
Columbia 11 November 1999


- 15 -
V.M:
The sign on the hat means - Pride in Tobacco - is
that
we're proud of our product, we try, to grow the
best tobacco
in the world and we're proud of it.
P.T:
This was the pride behind Joe Califanols fa-11. 20
miles
down the road from Virgil's fa= is the world
headquarters of
R.J.Reynalds. They gave Virgil, his hat and
invented the campaign
behind it. They know that farmers with dirt on
their hands and
tobacco in their fields are better spokesmen th-
smooth-tongued
executives behind socked glass windows. Small
farmers like
Virgil are often used to absorb the inltial
attack. But in
America there is no victory in sight. The smoking
habit is
beginning to die. The industry knova it must
expand to survive,
to generate the WOaltlL that fuels its other
multinational operations.
New markets must be won, new battles fought. The
Third World is
the target. The industry has learnt -from its
battles back
home that defence is the best form of attack.
Already the World
Health Organization is sounding the alarm. Last
year the World
Hemath Organisatlon's expert committee on simoking
control said in
its report: "the international tobacco industry's
irresponsible
behaviour and its massive advertising and
promotional campaigns are
dii4ect causes of a substantial r-,-ber of
unnecessary deaths. "
In the memoranduar he wrote at the end of the
Stockholm conference,
Dr..Bruckner~ warnecL of the new opposition:
"By introducing the emotional and political powers
of T2:Lird
World countries the anti-emokIng forces have given
the fight about
the smoking issue a new dimension. Objective: we
must try to.stop
tho development towards a Third 'World commitment
against tobacco.
We must try to got a-11 Third World countries
commtItted to our
cause. Action recommended: it is a fact that
tobacco is a Third
World cash crop which cannot be replaced by any
other commodity.
Target countriesi should be made aware of this
fact. Then it -is
possible to encourage the grower countries to form
alliances
under the. silent responsibility of the one of
them which is
affected the most, for example, Africa - Malawi,
South East Asia -
Indoneaiag Latin "America -Brazil,"
(Carnival Scene)
Of all the multinationals new markets Brazil
offers the most
glittering prize. A. nation of 120 million people,
20 million
smokers and many more to come. Sao Paulo is a
hoarding to
N)
CD
rl-N
CD
NJ
0 \
rQ
11 C
BAT Industries document for Province of British
Columbia 11 November 1999


16 -
Brazil's prosperity. Cigarettes the symbol of its
success.
Smok:Lngts growing as fast as the cities. Last
year 133 billion
cigarettes. Inflationts running at 70%.
Cigarettest 20pence
for 20 - ~ But there's another Brazil, her face
unscarred by the
city. Here high in the mountains to the South,
above 'the town
of Santa Cruz, is the wealth that lies in the
land: tobacco,
the richest harvest of all. There used to be food
crops in these
fields, now therels only tobacco.
Five years ago R.J.Reynolds told this farmer that
held make
a lot of money if he planted tobacca. He did and
he has. L2,000
a year, twice what he made out of' corn and beans,
A.L:
We're dealing with something like 100,000 small
tobacco
growers. We- are also encouraging the reversal of
the urban drift
which is becoming a very serious problem in
Brazil. We're
encouraging farmers and their families to remain
on the lay2cf,
we're offering them a cash cropp offering export
opportunities for
their produce. So I believe that any reduction,
largo scale
reduction in tobacco growing would have a very
serious impact on
these people.
P.T: - Maurino Muller - Tobacco workers un1ou.****
But.. not a.11 farmers agree. Their union
representative in
Santa Cruz believes that his members could live
without tobacco****
A high price has been paid for- tobacco. This
landscape used to
be forest. It' a gone-. Chopped down for fuel for
the curinC
b--ns. But the companies are now reforeitIng the
land t obacco-
has stripped. The companies supply the farmers
with everything,
includine, at cost price, the wood to dx-T the
tobacco in his
barm. *But they give the farmer more than just
vood. There's
o
free advice and technic al assistance. The
companis al
:
guarantee the loans these farmers used to buy the
Xer:ili er and
equipmeut, without such. guarantees theyd. have no
credit at the
bank. And, most welcome of all, the company gives
farmers
cash across the counter within hours of bringing
their tobacco
to the factory. This study says that the first
signs of
Brazil becoming a developed country'vill be seen
here in the South,
th--k to tobacco.
The tobacco companies say that if the Third World
were to
discourage the growing of tobacco both national
economies and
farmers would suffer greatly. But the farmers I've
spoken to
here in Brazil all say that if they couldn't grow
tobacco they'd Nj
--"Translation given on screen. See end of
programme. L14
CD
BAT Industries document for Province of British
Columbia 11 November 1999


17 -
S:Lmply grow something else, although they may not
make quite as
much money. The fact is that if the Third World
were to
discourage the growing of tobacco the people who
would suffer in
the long term would not be the farmers but the big
tobacco,
companies. Santa Cruz and Brazil represent am
investment of
millions for 'the multinationals but Reynolds
hasn't found the
going easy, nor has Philip Morris. Both have lost
heavily
and watcledSouza Cruz, which has been in the
countr-T 50 years,
increase its market share. But no company is going
to let the
World Health Or&nIsation stand between its
investment and its
profits. What would happen to the town of Santa
Cruz, they a3kt
if tobacco growing- were banned? WHOIs answer
would be simple:
keep the infrastructure, preserve the jobs, just
change the end
product. Grow fruit, for example, and put it in
cans instead
of stripping tobacco for market. But give the
farmer the back-
imp for food he already gets for tobacco. But,
what about
government revenue, the industry, is quick to ask.
A.L:
Firstly I could mention the amount of excise and
sales
taxes that Souza Cruz paid last year, something
of~ the order of
L300 milliong which account for something like 9%
of the total
federal tax revenue - a very substatntlal figure.
Tobacco exports,
300 million. dollars last year of which Souza Cruz
contributed
67 million dollars. The job creation, a very
substantial
importance to the economy. There are a lot of
peopleg apart.
from the direct employees of the tobacco industry,
vho are
indirectly connected. We calculate them somewhere
between 2T'
and 3 million people.
P.T:
But, thersts another side to the pict-Lwe. This is
a lung
cancer operation.
- FILM of op
In the past 40 years lung cancer deaths im the
state of
Sao Paulo have increased dramatically. In men aged
40 to 49
theytve nearly trebled. In men aged 50 to 39
they've gone up_
over seven times. And in the age group 60 to 69
they've gone C>
CD
Nj
ON
BAT IndustrieS document for Province of BritiSh
Columbia 11 November 1999


See end of transcript - 1.8
r-P nearly nine times. Other smoking related
diseases are on
:he increase too. This patient has emphysema -
disease is the
-same in any language. - FILM of.patient with
doctor
-*FILM of doctor with magazine
In the Wes t nine out of ten smokers believe
cigarettes are
dangerous. Theytre familiar w-ith the evidence.
But in developing
countries few are aware of the health risks
involved, especially
the young.
DR.JOSE ROSENBURG.-
Young people in Brazil beg-Ln to smoke earljw
today than 10
.ears ago and this is because 'the massive
advertising in television
about subject like success in life, glamorous and
30 on -in young
people from 12 to 19 years is very receptive to-to
this type of
Ad shown - Arizona.
In Brazi-I few share the life Arizona has to
offer. Millions
crowd the slums of the city, leaving behind their
homes On the 12"A.
Here they exchange one kind of poverty for
another. Spectators of
a world beyond their reach. Television and a
cigarette bring
11 : closer.
Ad shown -Hollywood.
This is the world of Hollywood too. A Davis Cup
qualifying
jund between Brazil and Argentina brought to
millions by courtesy
of Hollywood. Prett7 girls, free cigarettes and
lots of exposure
an televi3ion~ Hollywood is BrazIll, best selling
cigarette
and one of the world's top 20. Hollywood is the
sign Of success.
'-rTs motto speaks louder than words.
A.L:
- FILM of match -
Our understanding of the Use of the word success
associated
vith Hollywood is that Hollywood is a very
successful brand and
i-. is to that we are rmferring when we us e it.
P.Ti
A.L:
You think that', the way that the consumer sees
it?
I couldn't tell y;u.
CD
r1 J
BAT Industries document for Province of British
Columbia 11 November 1999


19
P. T:
Why do you associate Hollywood with glamour and
success?
A. L:
I hardly think..Clamour is a very subjective word
real.ly.
P. T:
Are not fast cars, surfing, dunek. buggies
involving young
people, attractive, beautiful. people smoking
cigarettesv is not
that glamorous?
A.L.-
It could well appeal to the people who are smoking
Hollyvood.
P.T.-
Do you direct your advertising at young people?
A.L:
No. we quite specifically do not. We do not appear
on the
television till mime o'clock.
P-.T:
Until nine atclock?
A.L:
Until nine o1clock in the evening.
P.T:
But I saw Hollywood ads at seven o9clock in the
evening.
A.L:
I think youtre referring to a specific sponsorship
which
is provided for -in the regulatory code.
P.T:
It was the tennis.
A.L.-
Yes, correct, vhich Souza Cruz was sponsoring. But
the.
general rules are that cigarette advertising does
not appear'until
mime o'clock so we are advertising to an adult
audience. -.*.~thAt our
models ... we will. not use models who are under
21 years of age
and so we are quite specifically not advertising
to young people.
P.T:
Perhaps young Brazilians have got the wrong
message. Last
Tvar Professor Rosenberg conducted a survey of
3,000 students at
the University of Sao Paulo. He found that nearly
30% hadD
started smoking by the age of 15. The industry
knows that the
V10=9 Smokers of today are the customers of
tomorrow. When I
M)
spoke to young people in the shanty near Rio they
told me -that C:)
r\.)
BAT Industries document for Province of British
Columbia 11 November 1999


20
there were smokers in every family. When I asked
them if they
thought cigarettes were dangerous they shook their
heads and
laughed. There are no health warnings on packets,
no programme
of public education, no sign of coming
restrictions. For years
to come young smokers may link Hollywood with
success.
ibat will happen in Brazil if there are no
restrictions, if
there are no laws?
DR.J.R:
Ah, we must pay In the future the same price of
mortalit7.
and disabilitT that developed countries have paid,
like North America, like England.
P.Tt
Since the industry does not accept that ita
products cause
dea.Zh and disease, it has little time for its
crit1c.s. blamInig
the messangers for the news they bring.
Politicians who heed
the doctors warnings are dismi3sed as
'self-seekine men. BAT
seems to have little respect for the politic-Lana
of the world who
sta.=d in its way, Concluding its memorandum an
future advert-
isir.C restrictions, it says:
"Ban. mak-Ine factors, One, absense of _serious
civil and
political unrest leavtng politicians free to
indulge in so-
called reforming practices. Two, the presence of
a) ambitious
politicians, b) a grovi-mg bureaucracy, c)
autocratic governments
with weak or no of)poaition seek-4- to make a name
for themselves
bry adopting striking social measures. It is
important for the
tobacco industry, and BAT above all, to be &live
and responsive
to t~Ls.tnfluence of such men.n
I showed the extract to Sir George Young and asked
him what
he ttought.
SIR G.Y:
I think they have very seriously misread the
situation. I
see no reference here to health which 13, of
course, the prime
1.1iterest of government -in seekimg to intervene
in this field,
and to try and relate other factors to what
government is doing,
ambittouA_ politicians, growing bureaucracy is
totally to mis-
CD
understand what government is tryIng to do; and
if. you look at
wbLazts happening throughout Western Europe and
North Ameri~ca
r1 j
there is increasing awareness of the damage done
by smoking and rQ
BAT Industries document for Province of British
Columbia 11 November 1999


21
of the responsibilities of goVernment to try and
do what they
can to reduce the toU of sickness and premature
death caused
by smoking.
P.T.
Itis a fact that without tobacco many Third World
countries
would be less well off, their families and
governments the poorer.
It's a fact too that the economies of Western
governments depend
heavily an its revenue. But it's alsa a fact that
the vast
majority of world medical opinion believe that
cigarettes cause
death and disease. The industm-T has resolved this
central
dilemma bry refusing to accept It exists, to admit
in public
what it-13 been told in private vould shake its
very foundations.
If you believed that smoking were harmful or if
you had been
told that smoking were harmful to health would you
continue to
market your product in the vay that you do?
(No answer given.)
Voice from Background (Iffr Nick Brookes)
I am not sure that is one of the question areas
Peter that is
right out of any of the areas.
Voices
Cut the film OK Cut the film.
TRANS"TION Maurtno Mulleri
It is like a sickness here. Santa Cruz is known as
the capital
of tobacco. We have-other alternatives - pigag
vegetables and
daix-y products, but It is hard to uonvince them.
In time, no
doubt, ire will persuade the farmers that tobacco
is no t the
only thing in life.
* (Film of doctor with magazine)
Look here, here there are diffeient
advertisement's a-bout cigarettes.
(Shows "Charm ad on back of magazine) . This
beautiful couple, this is
the beginning of all snokers, but the end of this
we have shown this
moment with this patient who has emphysema.
Changes made by Public Affairs department
according to sound
recording.
rQ
N)
C:)
NE: Names spelt phonetically where necessar7.
BAT Industries document for Province of British
Columbia 11 November 1999