_ ___~~ S · 61~ al~ i, 110 OOfaS lyr a ~ s Ecf"; e~ IOaOOO gMTCCI ~I~t 2a -- A oeetiPg of the Tobacco Strategy Bavicw TasD wee held on 30th ~y 19911 Present: Sir ~a~tick Sbeehlt, L( nlPt Broughton, Ib~( BIDI Btrkp, h, 81J1 Pritchard, Mr, k aerter, Elrl A, Ebnteiro de Clcto, L, Jcl, Lrcicr, I)rl B, Salter (Secreearfr) In Atteudaofe : Mr, U, Vylie, Mr, BI I(ohahorst 11 'Ihe. ~lifilD ~alcard lirl de eastro u a DeDber Of the tees in pleoe of He~ ~cobat, who is retiring as PreddcPt of Souu Crutl lliotltoo of Ra001 Ilaetinsl~rrtrr Iri(ipt 21 Ihe Dinntee of the weting held on 27th hb~utg 1991 vare eereedl ·· 3~ llettere arieing froe the sinutes uerr:- (a) JfX : It at noted that there had been continning WPitorins of ~I ae cwpcdtonl, Although theJ continued to he active in far Lltctn Derlrets, there ra~ no nidaee of duepingl thlra p~ aleo no evidence that they were ooepetinS ~ctivrb for hneineee in %etera Europe or the ~SSBI (b) Overaeaa hnel i krs had been no probleoe in iPploentiag the ~Ropa~~d tsdctioa in ftrpwoc~ of Technical liaison seatiogs( Zbt ~uirP~a rphodwd the need to beep a #tict CPtCh 00 travel overall, ensutipg that the sane rJgOrOue critctL were applied in juetiffing overseae vieite hi iodividuela, L (c) ~port TniPing in SOPZI CrPt : it wee noted that training in BATIlAe ~nl being arranged for the BratilieP Erport sanagcrl however, It had not been poesible to provide a gAfga saneger to tRir in Btuill The Chairsan etreased tbs benefits in traneferting expertise through eecondDenta of staff and aelred LI Br·lrt to consider further vhcthct it would be poaelble to DJLe eODeOne available for eeeobOseOt to Brasil, (d) P ~pnd~nf Arrangeaente i LI Broughton reported that the details of the atrPPgePenu for CblqiPS out the COltl Of the centrall)r fimded research in the palt tar-afff~cPt ~Rf had not Pt been finalieed, litl Ehrcicr Itlesaltad that for 53eti~Lt Tob~cco the Doat w#pwbk wtbd for charging Dtgbt he based oa a fined fee plus e pre~otyle of curnovcrl it p~ alao noted that follovlng MIDI relaXation Of the Bratilfen rCQUlatioDe relating to PIIOLPtl for teehnicsi udstoacl, Seuu Cru sight he able to cootribute 0 the colts of Ecntra, reeearchl a, de Cutto Dae BI[LOd CO inveatrgate and to let LI Ilroughtoo Itoov the current position on this, I1I1I N Clit; PDF -!::!!::!!::!.f3 StlC.i: 0111 Xombot Lrht~t IIiIt I, Po Itoltlll roport on tho IrtIoIIontI fat tht Iooilwr In to bl LI11 in OtUo, nori~ irol l)tb to tlrd flolblt II DOflll II It ·1 410 noted bit tho QI~II ·P11 Ird opt i·iei~rio~l IrIlr II Jr Iod eLt tl ~h· ·~1 thin iOU~f dth I(lllltlI O the dltIilld IttIoIIontI for tho n~ut( 6, PI r~en to bo iaft~ Iaid bl 1I follnl ~or~ OilUrlol I l;Iodofu, ~i~~Llir, Bcho~pblc~~r, litaouiieI bltl Cat : Qlrro, Yrde bptr~ TobIcco Itwn, LI MTCf I hbrittlt, ~t : hoCI, tktol, f5Jttortoo, iii, la~lllt, ~11I tl, Ebruodl, Qql, Iorlot, kBrll, L~ow~, 71 YlitiDII CQPPa dfh tho lire ~tla i Rbn~g art ~t, htlac, Yr II Ilbilt~~l Of thcII, hpot allucl Ptcitl ~ thc lilt two Irl roerlt tooruitI O tlr ~ol bLa, ~o Ifo Ipe to join the capl In tbl IIoor, trP1 PopIi-blI onI glBlrC rllpftf~l~l II Po Qli·1D, LI Itbq~(0l, L~ LI111, LI If~Bbl~ Id ~I LTtll dii l1# lttend tbr ~r~t Iod it oill )I ~I eloIr to al~ll tLt bit i~ · LpottIPt nlnt O ~ieh ~~t Ito oIpootod to 1~1 Ipptoprioto ~ioti~ in slriq IttondInco onI in Clpril for tit laltiPI1 91 RotiodoI thl ProIrIoIl it ·I Id &e llrInI Q~11, ~111 t~rar~~~, eolt·lfi~ct81~~1 of )rOotion, Co3eti~t APIllIiI Ila Di~trl~~otlh~~ BolItionIhipI ·rI thI hJ 1IIII ubioh lbOoII bo di~crlal Llr, it rl ~llled tht, Iubjrct to tho ~~~~l~bilitl of rbo oot~idl ~p~r, tit propoIld orIet of tbo projrII IhoQd It ohonIoI, ItottioO db ItInd eooIvilr Iad ~ci~l 9truotlali on ~~~ lirlt ~! Iod thin lofll on to Ql~l~flc~i~ll~~ at Iraotll o~~l, ~~ ~lia 10, PI Qlinla OoPoIod bit iotminI ebl IoldnI gIlitl of bl Croly'I OoIuctI Ibpla L I hf ItrItolic thtnIt tot l)~l·l))tl ~lls~td tht plrPill rdd 0 Irllop LPtQla 1~~~~1 Of IokioI IrUg uhich tl~t~d toro dirootIl to ooIl*ol prIfIronooII Pit thin IoIoI to ~~ Lptovod PtoIrIooIl ril tLII ctitltl bob to ovolIto now PtoIuoto Iod to lodtar la Id~tiq ptoductI Itood r8~~kl to ooopotitotIl It rl ~prt~lt tht thoto Ilo~d LI inctl~l~ coolcioPlrl~ throuIhout tho Ctoup of thl eprtrc~ of IoldnI 1111~1 Ind of the r~ O IohollIo otpatIonoo on thl boot toehaiPuot for ruail thiIl 11·I P ClibPDF - v~~fastio.soni ~3- 11I Hrl XohPbont described the evaluation techniques used in Brown i VI1ILloP, he stressed the Lpattawe of bridging the gap between internal tasts and the coweiteaPt to a east larlpt in a way that gave added confidence that the test oar~t would be successful, without involving the need for extended periods of Inesrwdiafo testing, ~hie had been achieved through the uae of an external (Dupont) panel whose characteristics had been recorded in I way which enabled parlrets to be sleplated on a seall scale, This had enabled brown 6 Uilliaeson to cut down silp~i~icsfirlp on the cyclrtlP# and coot for testing new products, 121 ~, &rcfct stressed the Lportpoea of differeneiating qualities required by different cdnl~ar 8toupsl In Canada, certain qualities which were 1 plus for Players ro~ars would be a substantial negative for du Ekdcr Illolrars and vicwersa, JPS, which in theory was the but cigarette rPperial oade, appeared nor to appeal strongly to any group and had I very low ~rluf share, 131 when TPprda olds changes to the cooposftioo of du rowk (elgl to reduce tar levels), care was taltm to bsPe each new variant tested by' the established du Haurier panel of aokers, 14, it II noted that BATCF place a high priority on both the physical characteristica of their products and also sco~dag quality, which is eonitored against capetiton on a regular annual basis, In cases where BATCP products are found to be inferior, appropriate developoent progr~aus are initiated, 151 Alrhotlgh Lrlboto has shown a steady ippr0Vlk0t Far by par, Iudl Srsib is still thought to be superior on ~ATeF's criteria, 88 is Judged to be inferior but ~L apparently 'bad' qualitiea esy p~ce the cigarrte sere attractive to older s~oLa, 16, BaTCy will consider whether the Dupoot techniques eight be adopted in d~valopi~ ioproved easts. 17, it was noted that ao~ing quality was still a prob].ee in Souza Cruz and iuproviPg thia would he given a high priority in 1991-1992, 18, Virhin Bb~eo,, MeCA tasting panels were Ling established and were in place in lost coapanies, Bowever, it was recognkcd that s~oldng quality still needed to be given a higher priority, Ibrrent initiatives included ieproved training ptogtaoPcll Consideration was also being given to the need to u~rlde the fwcriop of quality controllers so thst this bacw son of a Job in ita own right rather than a staging post for developing eanagers, 191 It ~os suggested that further consideration should ba given throughout the Eroup to reducing the nuehers of blenders and to increasing the statua of the I# teary expert blenders that a coepany required in otdsr to bs able to develop and eaintain product quality, 20, It wsa noead that another bay alrent in achieviog and esintaining quality was the way in which the tobacco wss peocaledl In Browo 6 WIUlePsOP, a changa in the redrying process for burtay had been identified as the cause of a shsrp fall in noldns quality in repeat tests on a product whose coepoaleion had apparently been unchsPgedl n~r quality of Ih~rlboro waa also thought to depeod wore on their process than on the quality of the Tobacco used in their products, i,,, Clit; PDF -!::!!::!!::!.f3 StlC.i: 0111 141 21( It as 18tLM that the Cbairslen would organise a eaeting with ~tl Kohohoar, lit, ~dtade and representatives froo BATCol and BATCP to consider what should be dooe:· (8) To establish I botnt interchange of experisnce on puarity testing within the group, (b) To ipprove the effectiveness with which aoWne a~ullty is aaslped and lonitoradl 221 It as agreed that aolddg quelt]t should be given a higher priority and that each cospaat should be asked to include in their plans a section on Lproving the oaasurePent and upgrading of aohing quality, LQcing b~u~ 231 Lt~ting fnfotwtion Systas I kl Btdsg reported that the worlr to develop a camoa informa~~on base of auhtiag data, accessible by all Operating Cronps, wat alPost c~aoplerc~ Bowever, there are still a few issues to be resolved on the type of data to be collected (a~gl ehiaent~ or end Plbt sales), on the artangeleDts for access ad on the costs of getting up and laintaining the systee, Hrl BraPley will set up I weting to resolve these issues and will wlu recoDendations to the neat weting of the tew, 2C, Sponooship : It as noted that the tuchy SttiL sponsorship of Ltot Cycle racing appeared to be fulfilling its objectives, Bwtoer, the cost-sffectiveness of sponsorship associated with the group's other international brands needed further revf~w:· (a) 1be progtglae for genson g Bedgu will he reviewed by the new rr~tiag director lot BATeol (bj The progteoe for 88555 needs better definition ad a lore effective use of #les of peripheral products cluely associated with the win sponlolipl (c) The gent ptogralle is thought to be too frsg~sPt~d nod to LCL a strong central thbCI Mr, Brrllg and Mr, hirchotd will report haclr to the nrrt wering on the results of thew review, 251 It as noted that Ceraan To way refuse to televise Hotot Sports on the grounds that they are spopsored by Tobacco cwpaPiLs~ It as agreed that Mr, getter w,uld ehoc~ on this pad find out ~stLr the Btot Sports fhaP~alvcl are opposing this banl In the pClp~ipC, the possibility of a ban should be talren into account t)nao signing eng COPelaEtl~ 26, Trade ~tlr Dintliffutiw : It lee agreed that cwpaios Should keep within the spirit as well as the letter of the law in any proootiou of noo·Tobscco products carrying Tobacco ttodaabl P Clit; PDF -!::!!::!!::!.f3 StlC.i: 0111 -5- ~l~tiod IapaI 271 V ~~t~o~ 1~~ : l0, hi~~ta ayrtel ttut 01 siport Id aonOrct ~4~1 Its 2 billion b4· bdllt fot tbs litll glrcltl brter, IftIr raidPI thI IituItion with tOIioiIl m~li~, it hd IIIo IDrod tLt eh Ldllt pt Itill IEhistIbII Id liCt bl pllltd it PP to l~nlionl 211 Ri Iint, it ·I notsd rhIt ~nl IhirlDtl ·tl bQa balltl i~t~t ~tl 131alra tLt fi~ II1II to cor~n ·re holdiq no Iii, ~i~tiow trot thI ItIndItd Ipcificltioll fot ths ltIoa ·rl bsing Ilbilltd PtottsIIiosIY lot it rl Potsd tint thetI vII I oootiiuin8 pioblI ii bpfh MtiCII It II Itld tit if Lit could ct ii ~odEd to thl a Ip(oificItioa, tbo lad IlouIa ii ~itY~m Itr tbs ~Btl 211 Itlcll Ittilu eoPtirl ptogtsIIivO lot thotI rl Itill Iiosd to ilptors I~rtiheion in SpLI I problr in IoI rrbt~ aI th~e thl btInd id blsP introaUoIa LfOM I~PL ttIItDInt II IPCII1IIY II sIIsntiIl pit of thI unufIEtuiinl ptoesIIl CrPlrl without ItIinlsIl lt14 spuipsnt in t~ir ~~~rt dIplttlIntI rre Itirl aIlll to fptioduoI tbil ta~bat u I ~t~Jrd prt of t~ ptoellll ElIsvhoro, rhltl ha loIo proctIII ii upOtIainI PuIlitf, innluainl furthlr r~lrrfor in ths uII at looIl Iwf in Ipil, 301 Pticint : Ltf rttib rl C14pd to'aoopstI litwdf drh Mitlboto Id it Il IIltIId thIt ths bIIiI for tYI Ihoad ii to Iohistlo ~ri9 in ~lttf ~ul offsfiil as COnIIlst P IWIPe~l to Iq bt plitioail ths btIid 1 to or orioI pit lIlov tbs anq Lrril lad, i I iltIriItitI, it lilht h poIIilII 0 crptl It r IpuitniInt pins or ths bIIiI of Llttat IlokinI prlitll ~I ~ho8d is Ivoiaoa ii ~l~tiodg thl btIod tI ptiaI pintI loiow Ltlborol lhiI aIlriaoa tbs Irll Id light ~ctdb lo ~ibi~~l w politio~d rtl thin sa prier pint loll Lrlboro, thin Ibdd be I 11 to iPctrIIe tho ptios O ths Otllt l·cl b ~199n It tbl ZitIIt, Mt, ltitchIta viI lIlud to loPitor prolroII toIidI tbil uigItl 31, ~e~ : It ·I notIa ~r ths ~na Itrltlll tot krclIl ·1 0 lInnoh ths 201 (Vltri) vsrIioi II lor w poIIibls in at lItl(ItI, Illdq thin to bcn e~~li~bld tot it lsIIt 2 loitL in diIttibutioi Llfotl thI ItinaItd vsrIion r(lrsttId to iLI ~ti~l 81 t~l~ fat tbs Il~llbPt intioaUotioo Of tit 1II (Uletl) RliOD ii 1III ctitieltl 32. lIoIuIs of thl (lotlrrd) tIItinI iIIio i Rnclux, tbs VltrI ptodoot dll ollt IChiIIo ~11 atiq in thlll EoUottiIIl f0~1, it II IltId tht it Ibpld II111 bl lLIohIa in ths IIC Il id to thr IIIo rBtJ11 II for tbI ~ ptoduct ii otltr r~rl, jfl OIII I rl Irrlq tivioIa proltrI in II ktstrcio~ ltiiaI Id It ·I p0rd Iht thsIl n I plr to upItIdo thl bird tot nl)ltl cola LlIf (PCi), It rI IucDIItsd thIt thstI rl I isoa O rnialile S1SJf Inl lel, bd of I~L in fIlt to hII I IrIotIr potontiIl thin rI loinI nd~~ld It prIIspel Thsts ·I corcrP thit 1l155 Ihould is tlttstla lots cl~~tlt It ths ~oapt laQe Ilrb~ nd thIt the ~rot~orl ~~~ light is 001011 11 tIiOot It&t tot ~a 11 I1I thought to bs too 'hiOhliov' in t~telol to ths brIld'I Q ClibPDF - v~~fastio.soni -6·· Jll lroooo : II Qli~a uno dil~ppktll tLt no ~pr hd bm put fontl dioouooioll oyriPr for ~c~ti~ tLI riCtl to L~ 801810 in Oi~ncll a, Irollhtoa voo olbd to blla) on thin, II Qloitoou nllo olha LI hiteh~ to Ik ftltthor eoDlidCtntion to thl lollibnitt of Ilctwi~ ~tcl~f to SIMI Llt~n ~~IDltl 351 a, ~ttlt aprtld bit, ·clliq tho lycil~ ooloo to tL 118 nod nlp Iltot oIlovinD for tho choe in It~tr of tlo hit 011010 oltkCt, Lhl IIi1I IPCt(YI in Chi Llt(tD lUtoPCoo Ihtl La 1101d co~~ialt~blt II I roollt of thc aifficdt ood tottfll lcooooio licrtiol in thtr t~r~ltoti~~. a Jlo wttl t~e St~ph wioo in ~o~l~d~ ~tl Llaiq up rll, then II o lvitoh fr· I~porn to littncJ ln~l withl oonorquont rduotiop in profitl, 311 a, Rit~~d nl a, 1O ~~t~o trpottd tht I~or h Willinnoon rl 80011 Crut rte ~lo apsrimcip bifficnltioll in toiling to thc 189 lpl Pok~ bt voto colrkliq to Ilt olprt~itill 11111 tbllo lto11, 371 anntntJ:Ht' BtlOlojrtoPottCd thlt p(f0tiltfDPI I1I fOltiPdll dth thl 811 on tha p~libnitt of rovinO to I I~~ritt LoYII in tbs ca119 in IICI~ 311 poind : L1 Lttlr apetJ tht ~b uoto eoptinuinO dth tho I~ltri~~ of priati~~tioa od oOtionlturo in Porond tclldf~ tho fnctotl ~r ht~r~doti ~ nuditon *re outtontlJ lllninO t~ cly$, I Itait Ilttat of ipt~lr vonid b di~cr~~ dth rbe Chainan vIthla eL rt flw d~~l pier to l~lilli0l for IPPt~a 11 t~~ ClC) 11, II~ :LI Brtct nytesl ttut on offic~ bd Lon not no in Llca od ~he t~ tootuitnont of loff 111 in hLl It uno notld tblt tL Chnirnon n~a tilit tL 1811 in Septclbcr Pt 1 nriot of tL 4lrso~~t llound Tnblo, 10, mt er~~lat~i~n mht Y boon tooootohod od o rlpott aQ1 L milJle Lr thd oU(t Illtil, 411 aoodn Y Jlo boon toooltchod but a, hitcbld rlyrtll thlt thc rt~r ·I in n Itltr of lilordLtl I futthet It~ of tha i~reV ~tnetal pd ptatidqprrdti~l for invootoont vouId ba pt in hnd, a, Prtlr hd ~l~o pra~~ thl 1~ of n p~rti~ c~id~ta 0 C1ill tlptl~~nt~tion in tho rthtl 421 a, Lrrcr ~lr topottsd tLt I tcprs~lP~ti· bd 1IIO nppointod in ~C~ Id tLt it uno ~t~Jd O aylrl thl tlCIIIPtltitl in fntoolntin, QLt tpr_oronn LlnrLto 131 It voo noted tLt lrovo L ~lli~lol'l alt~~~lae~~ in 010101 Y lo~d into rhl 1A~mfe ofiico, t~t the tlpr·aPPtl~ in lortlyol Y Illa into ttl ~p officl ond tb~~ tho roptooontntiro in SPdon Y rnl into rhl Tiodotnon'o bPild~ in I~oc~b, II, PTPtl~f, it uno bosl thot thc airtributlon of oigotottll alla be pri·til~ ht Lpor~tiol #lld Itill h Iljlct to tllttictGI l~li~l~rioll It uno intcDdtd to opP I IkiloP officl in f~t~PbQ, N 1111 O ClibPDF - v~~fastio.soni 17- latin ~tif~lQ~~llla 451 ~sxieo : Mr( Pritchard reported that the US Congress had agreed to extend the 'fast treclt' authority to the negotiationa for the extension to Hexlco of the North Anerican pres Trade Area, Brown d WiUioeoo will press to have tobacco products included in any agrca~cntl Illthough the Group would prefer to nit Ilntil it is Ifnovn what the new trade regioe will be, foa~ applications to be slowed to Lpott cigarettes will coadnue to be pursued and opprtunieL to unufae~uee will also be evaluated, Hr, Prltchard will also Eoofin that the FTA would oct open the ~oxieen Parlret to exports of gent fra Lt~llotd, id, Colwbk : It was Poted that a mcating had been held to cpordinale the efforts 10 exploit the OPPOttt~itiCI arising frlW the opening of the Coloabian Ipar~ctl 17, South Gone : tl Btoley ~Rls s~hd to set up a worltfng party to report hath on the ilplicatione for the Group of the projected 'South Gone' coDDon rrket( 461 Caribbean ~pru~nution : Ihe Qo~~m asked ~lr. Btrlag and Hr. Pritchard to give further consideration to the possibilides for rationalieing the Group's representation in the earihhean, in order to ilprove the cost-effectiveness of BLUiF8 in the region, The par kat 09, It waa noted that efforts were continuing to peoetnte the wrhe in Thailand and De ta ilue were printing Ta~ Staops for use there, Lls~#r, the authorities were still placing barriers in the way of ipportsl Negotiations were continuing in Bnraa and Viata~l 501 Qina : It we noted that following a oeeting on 29th April of the paople directly coocerned, Eltl Branley uu proceeding with the tecruiaent of the hey personnel required to head up the coopanies which it had been decided to fore in order to provide a wore effective thruat in the china ~rhtl The Qldnm uhd for a note to be prepared for the ePe as soon as pssiblc, eoafi~iag what is propoaedl It was also suggested that setting up the new colpanies could predate the ~ppoiownt of the respective CEOsl Ikntb~cttltt~g 511 ~1 I(oho~u~n~ presented a review of the Group's Rnuhcturiag fuilitias, It was notad that this showed a reasonable 1evel Of cover for utpected ulu up to 1993 but po#ible shortagea of capacity towards tha nfddla of the decade, ~I bhnhor~t at asM to extend the study and to identify $cta additional nachinery orders needed to be placed to provide a capacity 15X greater than the isles forecast to 19951 52, Other conclusions frw the review ~rs ehat:- (a) The capacity incresses should be coacentratad in Brown 1 WilliaPsoa, BUUKE and BATeF rather than in the spllLr copnicl~ ru Clit; PDF -!::!!::!!::!.f3 StlC.i: 0111 .g. (b) The ability to produce high pualitl International grands reeains potrom~t and theta should be la aip to increase the ability to transfer production fret one factory to another, (c) Opgrading the standard of the production facilltlea in Brazil tenains a key re~uircoent and further consideration should be given to the feasibility of inporting II~COPd"hlOd OPCIIIDBIJ fron the UYI 53. $, Btoughton presented a paper cwpriog the contributions frol different rrkctl and froP brands produced in different locationsI It vas agreed that this had been a useful exercise but it Ps felt that it was better to carry out studies of this type ad·boc tsthsr than setting up a systen to collect this data on a continuing basis, 51, it vaa agreed that ~, Rohnhorst should be asked to rrcoP~cnd a consistent schene for 1Peaauring and conpsring production costs, groupvidsl 55, It vol also suggested that further thought should be given to possible transfers of production in order to iPprove pit profitability (ilel after taking into account the effect of taxation and the ownership of the conpeng producing the cigarettes), Transferring contract nannfacture to Soutt~ptoo would appear to be particularly advantageous froo this point of view, 56( Mtet : It tee noted that LI getter had produced a paper for the ~PC outlining the options for uspJiog capacity in Ce~ang, This was presented to the tsao for idoa~tioa, It ws noted that capacity in Cernany could be expanded to 50 billion p,a, without oafor structural additions or changes to the adating facilities, teaf 57, luf ~tioa~Ulltion : t, hiteLrd reported that the classification schena introduced last leer was working satisfactorily, 1ha ~irPaa elrod for a further aviaw of the fnpact of the ffh~l in rationalising buying (elgl had it resulted in a tettioa in the nusber of trips to buy tobacco in Brazil) and in reducing stocks, ~rl Riahsrd will report on this at the next #ating, 58~ Snpply Sitostion : It se noted that hrley tobacco could be In short supply in 1991-1992, especially if BfR lad Philip btds, who have been running dacn~ stocks, again btc~a njor buyers, It 90 again rphaoiled that coopanies pUlt ensure that they have security of supply for the types of tobacco they require, 591 Exports : It was also suggested that leaf exports could represent a significant opportdty for the Group, BILTCol and SOUP Cnuz were asked to give increased epphasis in their plaPs to building up a l0-yaar plan foe.expanding exports, 601 Laaf ~-ordin~tion Ibating : it ~as agreed that since the hef specialists within the Group neat at least once a gest, there was little justification for oFgonLfag an ~ttn co~ordiootioP artiag of the type which had been suggested by SOUM CL11zl C1, however, it was noted that Leaf processing was a key rlaaPI Of the oaPufact~iPg process which was aot understood sufficiently well and ~nete it night be advantageous to exchange expertise, ~I Ritchard us aslred to outline a proposal for Betting up II Paeting to discuss this topic, i,,, hi Clit; PDF -!::!!::!!::!.f3 StlC.i: 0111 -91 ~LPIBC1COt DnclopKnt 62, Training ad Dnalqunt gwiw : Hr, Broughton reported progress on nt, has' project to consider po#ib~a i~ptooeoeorl to the training and dmoloyept of ~nlgats in the Tobacco busia#llro, L also confined tLt the project as an ttac~ for colp3letioo by ~ad·Julpl 63, Discussing the progress report, it as suggested that the finel report should be related to a tingle population of eanegers and thee it should be a~l~Ped thae the expatriate poor would be phased outl 61, it as also suggested thee although Ipove~eote between factions could be advlataglos later in a wager's career, the fiat priority in training and depelopoent should be to ioprove anagers' effectiveness within their factional specialiaetions, 651 It as Pored that the Fnainan end E~, Broughton would agree with Elrl goes, the haadings for his final report, 66, Intct-Coaplot Transfers : L, Braalag reported that there bad been continuing progress In arranging Ltlreoopaa~ transfers, A review peering would be held in Sune and he would present a fond report, reviewing progress over the lear, at the lectiog arranged for SeptePberl 671 ~L~crPitllnt : Ilrl darter reported that tha tea set up to consider possible ptoblae in recruiting staff to support the projected expansion in Eastern Europe had wt and had ~ade significant progress in wnning the toes, 681 it as noted that the project tea for Poland as largely drawn frOlP BATGF lile the tea for hungary vat largely froo BATep, while it as appreciated that this vat a historical accident, it as suggested ht there should be a poeitiva effort to we]Le future teaa international in coepoeition, Iltadi_P11 Besults 69, It as noted that a hey feature of the results for the first quarter had been the iX increase in vol~e relative to last lear, however, the N1 pat forecast as for a vol~Pe increase of only 3~1 70, lt as noted that the current forecaat for the Group ahowa profits slightly lower than 1990 at the half gear, rt is iaportant, therefore, that results equal to the budget an achieved in the second quertar, L, Broughton will be in touch with individual Operating Groups a dL in the nc~ future, Begnlato_ry Iasuee 711 Environeental ~hitar ~ It ma noted that nov of the Tobacco coepanias vlld to sign the charter propoaed by the TCC, however, there way need to be further discusaion on rhla before and during the environpental policy review by the B,A,T Industries Board, due in October, 72( Sao~SPI Cospendia :Mr, BFrlay reported that a revised version of the Ssoidng Conplladia would be available for distribution shortly, i,,, Clit; PDF -!::!!::!!::!.f3 StlC.i: 0111 ·la- 731 ~ntitaa#otil ~ob~cco Snob I ntl pritchsrd reported that discussions on the SPl rsport were continuing, lq, fire snfatt : L also reportad thst there had bun no further prolreas on the proposal to develop teats for a 'fire-safe' cigarette, 751 Iddititas llegiater :Ih, BtlDlq reported that the Mditioes Ilagister would be eveilable for distribution later in the year, Roduc~ionlPtoca# eetaloprpf 761 O was agreed that rh;dLcwliooe of Sideatreeo Slob, I-1 Tohero, Dscapodtiw ~Mdue~ of ~noni~tcd Iobooo and the uae of Orconatitoted Sta should he held over the neat oeeting, ISext Ltiae 77, Ihe next weting sill be hard on ~rid~p, 6th Septeoberl Rag subjects for diacussioo at this Iwtiag vill be the cwgetitive position in technology (the Chairoen'a letter dated rat &I refers) end the Beseetch poioritisa for incorporation in the 860 ptogrsoec asloa 6th June 1991 Clit; PDF -!::!!::!!::!.f3 StlC.i: 0111 g eol~ g 1~~ b~~ec Itntc~r~i I ntiq of thl ToIleeo 8tritlat Lli· Ir iii L111 II t7tl Rbtut) 1991, rrl~lle It litrielr IIooIt, L, I11, Zqhtol, L, llD, ItUlol, L, 1,JI hit6lrl, LI II brrlt, L, I,J, IolIout, LI II Siltlr (Lcrlt~tt), ~11(0 II priooit : g, JILI Hercier In ~tla~ocl I 9, Jtll ~cl~l i, I~ rloueoi of tIo I~~tiq bcY on 30ti IoviiIcr 1990 atl iltlodl 11 eontriIotiou to Iooutoh lroIriiia 1 111, Ito3htop raprtld tbit Ia bid lot lot eaplt~l tlc worlt to onooro that 1I1 toooireb progruK rl fnodod ii i rl t~~t wai ~cii~ci~~t ood which oloo t~ into icfouat tbl nld to ouiliao II ilto~, BI dll rsport ~c~ oi thia it tIo aat loitinI, j, ~trlt Detolopiont ; L, raLtoo aplrtsl that ~, Iooa (ToIioeo) old ~, allirr (ml~nciP Sorviooo) LJ Iooa oofoodod to tho projact to rairr tbl rr3amtl Or r~scnt ttaiiiiI ra I·llopl~, I~ lrojoot hi Ioon Iccll~#td and io now aos for allltiol Il a~~P111 holr9a9 dll Io nprtd it tL nurt oootioIl 1, bt~f·Colp~l ~n~f~r~ : L, ltoorol apttll tbe thcr, hio Llo 3 tr~utlr~ liDCI thl kit III~111 1 foil tdl of ~01~111 dptiq tho ~~r ii oolodolod for thl dopt·bor rltip, JI rnoroiood Lc~~clt I re r~ iotCd thit at 1~~ to I~lpt plPiloWot tcr for tho LCtilltiol IoioI Ilt $ ii Lltl~P lUroPo id othlt rll~t~ Ld oxpoood i ~6~~~ ii thl lLited nriiriIilitl of oipdiditoi for throo pltll rt woo Ilnd tLt LI Lrtlr Mold oct oI i projoct aleh ~, It·lg iod kl hi~t~~~, to iovaitiIiei tIl ·rlor of tbio lroIlio, QIPYldll and to rlooooond hoV it COlll C ~ lulinnrd. h. Ldl Wr( ~1l ~ Hmag D b ~~~. 61 Ltia of wiwfiotoriiI Q~dB I kl hi~hl~ roportod thit ~, hrl Iohohorit hid initlited tbl ptojrt to e~tJ~lh tbo oart and ~~~pt~9 rP~Put~e~r~nl ~pei~t ii tho Ct~h to cotiblisa whoro I~ortf8b Iq ooour ood to ditoroiio vIoro thcrs it a ptati8 for ~I~uion or other chlll~ to ioprovo thl ~er81 Itollctf~itf, colt~frlct$al~l lad t~Mif~cicq ii ~o~cil tho Crooo'o lirlrcto, 11 It woo potcd that eh projoct ~~r woo Ir to rlt oa JrC(EL Yab ond it ·~ Iplrltd thit L1 tard, LI Iioniotot lad lIr, SiIoii ahouId II iaitll to join tho etc, II It r ~1· IlllltJ thit tIl toio oLonl( corilt tIo peatill for liPI, in It·il or gll~lfl, ooft q and oeIot wchllltl vhioh Y Ioeooo ~lr~ folloviag tL ~~~ioP of Iox ~ch~q iid othar upltidioI at lkooi, Other ala~Pt ~~ in bid it a otudY II It, Lrtlr of tha ixpiioion potatill of lalrluth ood I ~t~t )t L, Lo4~1~ tbo optLI oourcioI of aprtl, U1 of tIio MrI it Iro O I1 tsyrtsd B ~f, /111 ClibPDF - v~~fastio.soni .__ __ It~ 101 Infonotion IIotolo I LI Irrlg roportsd ~olrll~ on tbo proJoct to nlrs eLt fiInrso for eiInrotto ooIco codl k. ~ccl~~~d w~ilt II oII ths CporotioI ftolpo in o LD uhich rl of rolt nos to Alrple vho ocodsd to III thn, lhs Qloiroon ~~Y thct tit Il9t· chonld Is cspL11 of cbowioI totot oIIoo to 1 ca·ttl (ipcludinI ~911 0 Duty ~I~) fr· 41 $ool lourosl d tbnt thcrs IhOd( LI o cllor rd~tlt~il ·i oIroolont blal ths Opsrotiooo on the coa·tionl to Io nod to c~l~~~ tald ~11I~ odor 118 IoodioI (o,II 99191 of ~~cifir lntonuttoDlI Ir~d ·rldddl)l 11, IL voc lord ~t t, ~rlg vooId Ild propouIo to Hr, Iritchora. ~1 It, Pttst in lLroh P1 9~1 tlrrt of thc oort lsotinI on Ir~lll tP·t~ le~c~~p ~ Ipt· which *I LO~lhlllil Id which could Is oeccolod frl~lt throuIhout tho Croon, 121 Irod btllrip : It woo ootod tLt folIovlnt tbs ~~ia~~'~ ·te aotsd 3rd ~rv, tbcrs Id Its inerollod )trl~s to oncuro tht rhrl ·I I Ulh dllnl of ·illitl in tbs caplitiol d ptoootion st Intctpctippci hllll Or1llidll L iopprecccc ol al~tiq ~t 111 Irodc ~re e(rl O or Isttlt thdn colpstitits bt~~ woo r~i~ Ittllld oa it voo IPllltld ~lt tbs I bdldfiel should bo llla to pt fllltl on oouotrioo to tg· npiracl~~ for tbs *( of Ioool lolf whore thlw ors Itiu in fotcl (III1 in Ltpl~~ ood I~w~lll~) I 131 If woo notod tlot ~ Eopono Id oIrssd to t~b thsir IrtJ Btrib 11I~ fta Iro· 1 WiIlionoon, lbs ~i~ of tIo locd cq~q will sloo Is I~ha to support ths c~ls for rig Rtl loportsd Ilof in ordor to uPIrodo tho soolltlr of tIl oiIorottoc, 111 1~ hoitnln Llhd Lt ~l~q to eodin thst tbsro woo no 1sIoI roPUirUsnt in 901D to oil loc$ Ild od Ittllld spin tbl ipportoocs of fl~i~tLI thot ths plitl of hctl Stril;s ILdl Io colporlbls or ~tt~r thl ~rlloro od Qlltltiiad~ UIO, thlt thlrl voo colti·il proocuro to ioprnro LLOlf Lla Lpl Crolm, tho wtat oIjoctino for aia vers tbopht to Is too ·rlit~o·l C D~ ii nI ·~ till I~ *~.lail~ Cr Brlc$ Irb ·1 iod~q·El for o Irod lich Id o 31 ~~~r ILr~l L1 Iroolct woo oolud to to~~Ylr how this riIht II ~tr~lth~l~, 1(1 lIoovboro, lirInntiao Y now lIrosd to oao· to Ironl ~tl' Ipeifleltbol d Dalt~ Id oIrsd to re Sc oooo LpC~ ~tte Ilod os Qng, & coalpe bIsnd for h~ol C Bdt~~ ia ~~Ili~, incorporotinI 10X lo~t Iclf ·I Pro eonlidercl to Iivo o e~(~r~tte of ocfcptobls ~itll WhiIo voloooloI tIo ioprottsrmt in NcloYoic, tho (hoirooo ~trlllla thot tho ~~ nuot LI to ·a~ II Irlitl ra ~Q1 ohouId oontinuo to prslo for ~~II 171 ~1 Qloirooo 9~0 131(~t(a thot thlrl choUld II coPeiainl ~1110tl to B~ol MoldnI 9uolitt in Crrp btp11 Ioi4 cold in Ilo~lffi~ ~la in Ilotorl Cold Lli, rtlYdll 11, 19 Intoroot;Lonol Irodo I ~I hitclrd rspottcd tint olthouIh tIo IUdIst for 1)91 IhoVsd noll 17,91 ioCrooos, 1II forsCoct for I11II to lhioo woo COll(nlt~l nod if ·I hopd thot oetlul ~a~l adl chow I IroVth rots olooor 0 tbo 151 btllt, BoX ElpdtJ lh0~1 Is Ill(lf( b lil·~~r Id wnld Is so ~pr~t hetot in oupportioI ~~1~~1 I,,, , ClibPDF - v~~fastio.soni 1JI 191 It Ms noted that tbsra are still inconsistencies between BATCo, and grown i Y11Urloo vial figures but it Ma hoped that these would be resolved before the LJ #eting, 20, Iraq : Following the ad of the at with Iraq, it Ms anggested that iooediate consideration should be given to possible MM for establishing brand gooduiU in this wrbrl 211 blolbia : It Ms noted that although there Ms a high level of tan, iPports into ecloPhia were now allowed, As a result, it should be possible to establish brand presence in the rarket, 22, ggRT i It Ms noted that the gent TOT in Europe had highlighted the problaP that the proPotion and ackaging projected an EaglLh iaage which vis pot helpful for a ~erican cigarette, brio~ ways to produce a Pore ~Peticaa i~~ge were suggeated including ~~nutactute in the USA (but thought to be uneconwic); c~pLeLing oo the packaging that it Ma a ~crie~a-st]rla cigarette; udag a European advertising agency to give a European Lqe of d~edconesa; and concentrating on wrkets such a France and Itsiy ~tn there were severe restrictions on advertiaingl 23, It Ma noted that work waa continuing to develop a superior gent tights product and to conflrp the agreed packaging forPats, It was also noted that Ccasoy will test Parket gent Ilgbta in the 3rd P~~ttrtl Ii, gent tsbfot progressive in hlnal following the solution of the tipping ptoblfa and the cutting off of parallel supplies through Uruguay, it is hoped that sales to OliM will aceLd budget in 1991, 211 It as noted that gent eontlnoo to ba a key Intsrnatiooa1 brand for the Croupl Mr, ptitchard will report on the plana for the gent LLlac package at the hay IpeetiPg, 261 Loen sarm continues to be progtesain and a key objective for 1991 will be to expand lucky Strike tights, introducing the brand into L # oany P~drcb # possible u a direct coPpetitot to Marlboro lights, It vat agreed that there should he a deteniPed crpaign for axpansioo based on lucky Strike Plain, Filter and lights rersioae with lucky Strike Super lights available if required, f(ovevet, it wat thought that having lucky Strike MIU as all II lights Ms Eoofwiag to the conauser, It Ms auggestad, therefore, that tbs current policy to ptonote lights'and to let Hllda find their own level should he lodifiad, dth gtuter effort being applied to converting Mild nohts to tights, II, It MS StreSd tht it would he helpful to kpuira fra CSl:lehere the tights to sell lucky Strike in Mace end that Mr, lrsnley should prepare to open discussions with Colkbcrs to deternine ~e~hat they would he prepared to sell for cash the rights to lucky Strike in prance or, failing this, to negotiate Io uchange for certain tights to Benson i Badges in Europ, ucluding Duty Free and eernany, 28, In preparation for this, lit, Pritchard will establish by md-~arch, the value to BAT of owning tucky Strike in praeeel At the s~pe tiPe, Mr, Bralq and Mr, Barter will aasess the value of Benson i Bedgas in Europe, 1111 Clit; PDF -!::!!::!!::!.f3 StlC.i: 0111 _CC_Z_ ·1· 29, It was noted that the salssforce in brasil are enthusiastic about the aucceas luc~g St~lle is achieving in direct colpetition with Ltlboro, It Is alao hoped to launch In hlla iced of Lrlbotol 30, It was agreed that there should be cootinuing pressure to nise prices with the sin Of cooiog close to, OLtChkg or even exceeding the Ltlboto price in aa oany #tht~ as possible, 311 MBetaT : it ~I noted that the version of Larcaay rated at ing was doing well in Switlerlandl however, it was also noted that despite the difficulty of verifying the ntiog in laboratories land the lad; of taste), Philip Horde were continuing to prorate a ing cigarette in Irvlnl hey ~~aa, It waa agreed, therefore, that in addition to launching the new ~g version, there should 1110 he a ing version available for Lunch if required, 32, There is II continuing need to,reposition the original hrclq 'bg' product as a 508 product and to tire this rrpo~itionip correctly in L relation to the launch of the new ing product (and potentially also in relation to the launch of the new ing product), 331 It was agreed that ntl Pritchard would present an overall strategy for Bsrclap st the hay nesting, including the pleas for the 91Pg, 5~g, 2~g and log versions, 34, Tt was Pored that despite a disappointing reception in the Japanese Parltat overall, Batelq had been succesafPl in sone segoents and woe therefore being persevered with, with I view to tbs long tare, 35, Oipgl, vlOggOy and loor, i It wea noted that Kool was shoving sooe vitality in par Lit #t~esl ~ nora derailed review of lool and of the other two brands is scheduled for the hey *etipgl 38, DI International hrands : Hr, Btrlcg reported that Benson i hedges had stabilised and was looltiog to increase in 19911 State expsuo 555 rBained progressive, especially in the par gest, end PC1 i was also progressive, JmS was budgetted to increase in 1991 after i experiencing 031~ el4ht decline in 1090, cap~rsd dth Ieuch greater decline in 1989, 37~ n vee Ford rbut ~~ Brlple)r would bring'toglther Ilr~ Iro~L;ec, Mr, Crichton and hiss Osborme for a Ieetlng to review the overall strategy for the proeotion and developoent of mt International Btmdel eoPfiniog the positioning and potential of the individual brands (including Sg 555 ~Uld~); and discusaing the relationship between the ptwotioaLt spend and the larLt potential for each brsnd, 38, Lltefi torope : Hr, herter reported that ucluding last Cernany which ~ss now included in the total CcnPn Pubt, Group sales to Pastern Buropa end the IISS11 increased froa 1(1 billion in 1989 to 2IB billion in 1990, with erports increasing fret 111 billioo to 2,2 billion, 391 The hairnan atresssd the need for ~kt garter to proceed with urgency on the appointaePt Of representativea in Bulgaria and rngoalavia and to cpplcte the ~a~h~ study in Oaechoalovalria, Obtaining good inforrmotioP wss aD essential precursor to idcPtlfping and evsruating oppbrtdli# within Gaatern Europe, i,,, ru Clit; PDF -!::!!::!!::!.f3 StlC.i: 0111 .. _: .- I-'- -S· 401 It was noted that there had been continuing progreas on negotiations which could lead to joint ventures in hungary and pOlDdl Tne ~b~i~aP will discuss with Hr, prenley and kl parter bow these projects should be wnaged, it as suggested that the possibility of recruiting polish Ipcotca fros the USA ahould be borer in sind, PII It a~ noted that grow a Ililli~wn would conpleta I survey of the ilownian rht by the end of April and would report on the potential of the writer It tL ~hg o#tingl Ourrent sales were handled thtwgh 29 independent distributors and were for full utgin products only, 421 In the OSS1L, it was hdped to fioali# the choice of an office in Ihrch, Group coFpaniea were continuing to pursue Lport opportunities within the price and brand paraneters which hsd been agreed, however, swingefng increases in ilport duties and the general disorganlsation within the country IPsde it difficult to build up stable trading relationships, 431 ~f Advisory Tww : Hr, Brssley reported thst the Leaf advisory Tew had eaplctad aa initial survey of Ld growing in poland, hungary and Bulgaria and had cone to the conclusion that whereat it Fight be cosparatively easy to effect iFproveFepts in poland and hungary, port radical changes to the systees night be tagdrcd to bring Bulsarillo production to a satisfactory standerdl 441 It was agreed that an inportant aeocPt of any investnent proposal in Eastern E~ope would be to deternine tba type of cigarettes to be wade and to #~au the inprovanents to leaf quality that ~uld be needed, Zhe proposal should then include appropriate rseoonendations for the tean rrguitd (e,gl an agtoo~ist and ablcodct) in order to achieve the required iFprovesent, 451 Other Aetllrthts I hi Pritchard reported that the leader of the coup in Thailand had been a strong supporter of the national sonopolyl Therefore, then was di~ely to be an tprovelcnt in the current situation where although iPportl weft allowed, the lowest practical pries at which thase could be told wts PO baht conpsrad with 15 baht for local cigarettes, 461 Hr, BrsPlg reported that MTCPI nov had w Lport liuPce for ~luico lad would be bringing aproject to the ~C propoaing a rropeniog of the naritet, Ibere had been no significant new dPvelopPents in Turhey or in BP1*l and ~~ePL~I however, it was hoped to Lye the position on SIITL clarified fln:ther before the Chairnsn's visit to Singapore in June, 171 Btuilian hxporte : It was noted that SouUa CTuZ had eXPorted 70 nillion to poland in 1990 and was hoping to incraaae this to 700 oillion in 1991, Other Ipar~ts were also showing significant growth, dr Gbdrpla epphasised the need to build up a strongtr orgnnLatlon overseas and suggested that training for tbs people involved could be provided through BATUKEI 1,1I hi Clit; PDF -!::!!::!!::!.f3 StlC.i: 0111 -------- ·6· 181 3ltiODLUUtlW of OveIYaU ~PT~1LDtltlOP i Hr. BrgFlCy reported that there was I progra~oe in hand to strengthen the Roup's representation in overseas wr~t~ and to ensure that ~mere there ao lore than one Roup cwpePlf represented in a1aOFbt, consideration was being given to the potential benefits of sharing facilities and people, ~ new office had been opened in Greece, facilities in Tb~i~t~pd and hivla had been rationalised, fatu wss under dLeulliaP and nag, Sandr, Pong gong and ~bado~ rte also under review, 09, it we noted that ~I~~ Br~~s~ and 81 Pritcherd would report in r9y on the reaulta of the study set up to detenlne the optlua structure for lewing the chin larlret, 50, JTI :lh, Br~le~ reported that JTI had increased their sales to the South Rest Ibian wrttcb by a substantial ~oouPt, There had been a suspicion that they had been duoping but further investigation had not substantiated this, Ihafr activity u co~ptitors will, however, continue to be Fonitored cLelTt 511 General ~f~pleen ~l~tE~tlng SniPu : Eir, Priteherd and nrl ecbaon reported that it was hoped to a~ a final recweFendation for the location for the conference by ePd~btchl it was agreed thst of the locations aiCh had been considered, Orlando, norida appeared to have lost to refoowpd It, Although the dates provLiondly agreed for the ecFlnar had been 24rb-29th kaber, this had now been found to be LpnctiePble and, su~#~uaot to the Peeting, revised dates of 19th-23rd #oP~bcr wan agreed, 521 %, Berter (excile Structures), ~k, Bnotct (Irand Coodwill) and b Dritchard (callt-effectiPePels of kaodon and Di~etributionlTEade Relationships) confined that the preparOtionI for their respective scaioru were going aheadl Hr( Ilerter will circulate a paper on excise before the seplnar to enabledelegatal to prepare their`own contributions, Hr., Brolcf aM for u~oplcs of the tpft of quality on brand goodvill lad it w~ suggested that grow i OillisosoP Fight be able to provide help on this, 531 The provisional list of participants to the aaainar was confined ps follon:- BtOM~ WI11IIIOP I hPdefur, WhieeLir, Schoenbachler, Pitzlaurice Souu Cnu eastro, ~ndt~de lFPerial grown, lee 1I~TCF ' : SchweitKr, Tolat nh~Co I I Brookes, tLeel, Uatterton, Boss, Brucdllllar, Rapt, Tandrnp, Frelre, Piner, Wunser, ~aold, law, EdFunds, Lush, Borloz, HcDowell, HBtllDBtOB, ~bbPI Changes fta the previoue list were the substitution of law for Stepbenson and the addition of Bshn, Rose, SLuart and BootslingePI had been deleted frw the original lilt but were still considered as possibles, Hr, Broughton rrae os~ed to review and report bac~ on other potential candidates for the lelinar, ~mkh tass designed for younger general aaapn with top~~nag~ocnt potential, Subsequent to the neeting, Dwt and PI 8roolra were suggested as possible additions to the list, ,,,, Clit; PDF -!::!!::!!::!.f3 StlC.i: 0111 .11 54, Technical tid~anLctiPI~ : Mr, Braley presented a review of the Technical liaison laetings held in 1989 ad 1990, it as agreed that while the Tobacco Strategy ikvicw Tee wished to enc~rac the interchange of ipfonaion and apartise by individuals, then should be I reduction in the fnpueact of gaeal oeatings involving large P~bca of people, It as suggested that when general Ipccdngs were held, the at should be to lipit the attendance to the cbdtoso of the oueiag plus on representative fra each operation, It was also agreed that the ttepwncg of there general wctiags should be reduced to the folloving:~ (a) Research policy etoup~hogtaos Ileview Pwdplcntd Basearch I Cabined kn~ul Lsling. (b) Scientific Research Group - Annual, (c) Product DeveloplPt Crou~ - hrery Second Yeprl (dj Ad-hoc Por~Bops, etc, - Onll where initiated or agreed by the Tobacco Strategy Review Tea, 55, kf Snppliea : It as confined that leaf supplies are lilrely to be oevenly restricted worldwide in 1991, with Burley in articular in short supply, US prices are Lxpcetcd to increase by 5X and greater price increases an erpected for supplies fron Brasil, Argentina and ZLbabuc, it as alao expected that the EC stoc!pile of 300 lilUon Itilos would be run domes and that the pressure on leaf prices would eobarnss cappanias who had coPittad to supply low price cigarattas to the USSR, 561 bit, PritcLrd, Mt, Bralpley and Mr, herter coPflrPed that aupplies had been secured for 1991 and tbat the lihly swing in the pendule in 1992, a cutnnt shortagas encouraged are planting, bad also been talren into uco~mel 571 ntl RMsbaut reported that Sousa CNI are still behind on duntiops and it as agreed that it as ilppottant to taUr to the Bntllian Covereent about how increased IBlf production Could be encouraged, The aip should be to increase Leaf production by ill and Mr, Boobaut as Olbd to report to ths Chairoan how SouU CNZ would attapt to ancourage LMI, 581 tnviroaental Tobacco Swb : ~L, pritcbard reported that the two draft reports by the 00 EoviroaaPkl protection ~cneg on health effects of Passive Sboldng and Emtirenosntal Tobacco Slob in Wor~plelo an still under review by tbs Covsr~BPt's Scientific Mvisotg Board (SP)( Btown 5 Villianson believed that the Tobacco industry representatives are aaolsiPg the issue satisfactorily and that no further initiatives are called for at present, however, this would be kpt under review, 59, Fixc~Slfs~f :Ilr, Rilcbmrd Rported that a Oongrasaional co~irrac had concluded that it as technically posaibla to produce a self-extinguishing cigarette and had initiated further work sled at dnfting legislation to specify this a a repuirewnt, however, the niniolla period t~uited for the further testing which would be neceaaary prior to freing the legislation would be three years, Curreot indication are that further poblcoe had arisen in defining a valid test for a odf·utingui~h~ng cigarette and progress appeared likely to be slow, however, this would continue to be lodeored, i,,, N Clit; PDF -!::!!::!!::!.f3 StlC.i: 0111 -II~ COI en~irawPd Gharters : Mr, Broughton reported that the International ~hrbsr of eoaPctu had put forward s Charter of Eoviro~en~d principles to lich colpanies would be invited to give foePal supP3rtl This was siFilar to the Yaldet Principles pleated or the be oecting but as lore prsgPstic, seeking steady IP~POVCDePt rather than setting absolute standards, Since it as also supported by 1 body with lore standing than the Ceaes pressure group, who wre prosotiog the Paldat Principles, it could pin lore support than the very low level achieved by CEBeSI 611 The current view on the ICE Qlarta was that although the wording of paragraphs 6 and I of the Principles, on ProductslServices and CustoFer Mvice, Fight raise difficulties for a Tobacco copang, qualified acceptance of the (haiter light be desirable, CoPpnlca would be aslted to consider, with their legal advisers, whether these paragraphs could be redrafted in a fon which would be acceptable to a Tobacco cap~nll 621 it vos noted that there could' also be 1 rsguirrmt for iodapandaat coPitonmcatll audits and Mr, Broughton would discuss with tapanice how L the# dsht beet be carried outl 63, Hr, Broughton will wire to coppaic~ separately regarding the whole guestion of EPviroP~antal Policy, 8ich is also due for review by the B,AIT Induatriea Board in October 19911 63( Slollng ~nprPditP~ : Ilr, Brpsley reported that the SPoldns ~Ppcndl~a would be updated bit cod-~ptill 66, Sidatrur Slob : It was agreed that although than were doubts about ths potential for proloting rclductiool in aidestrelsp soolre as a selling point, there should still be fPr~ objectives to reduce visible sideetreas lpsh froP Group products, It YBI salted that CWPIIIICII should introduce appropriate objactivss into their product dovalopsPt sad quality control prograaPes, 651 Mditives ]Legister : Mr, Braolry reported that the Mditives Begister vae aloost coPplete and would be circulated later in the year, C II. Iludm UL~L: L. )rltchrd ~iru~d.lhl o[ [LI n~plal BaPdboo~ to FeFbers, 67( f-l Tobacco : It ws reported that vor~ to incorporate Y-l blends into roptu cigtcttu woe continuing, including its use in the forthcooing trial of garclay in Norway, Lbers were ast(ed to report progress at the next oeetingl 68, Peconstituted Jtr : It ws Poled that wor~ to increase the use of reconstituted steF is continuing, It vas agreed that this should be pursued with the objective of 1IIPJdDS full use of tbe potential for iPprooe~cnt offered by this process, 69, ~Ploni~ TrubcPt : It ws noted that the worlr to characterise the deconposition products of cigarettes containing pwniatcd tobacco we continuing and that the results of this worre would be reported in Septeoberl Mr, Btalep was aeM to eneure that products froo Brown i Wflli~loa and results froPI their own rmr~ ware included in the worrtl. review, 70, Istss of ht Meetings : 'lhe n#t Peering has been arraaged for Thursday, 30th Nay( Subsequent dates are Pridq, 6th Scpteuber and LPd~y, lad D~cPrblr, aslDJ1L 15th ~rch 1991 P Clit; PDF -!::!!::!!::!.f3 StlC.i: 0111 .R'IPL~k·t~ a j~j~lb dTi~ii. SECRFT V To: 11,, r,r, Iltoughton / sj~'~ yjY\ Tobacco Stnrca Pnis~ Teag L~fhcd are a coot of the oinurea of tha Tobarco Stntcgg Broiew Teag netting held on Ztth kbnuq and a draft agenda for the Paeting due to he hald on 30th hat, L Ilcuc Ict os hoo if pou h~e toy Idditioo~ ital ior the 1SePdal keording to at Poter, subjects too are due to report on It the Ebt getting are as follova, listed against the agenda itaPs and dth rcfelac~e to the appropriate oinutea froI the laat aeeting ebolm in parentheeia after clch:- ; 2(3 illloeation of Qqlll for OuadaPental %lureh (Pinuta 2) (b) IlotePbor Ltlrct~ae Snht : Mdition~ noginationa (ginuta 53)1 6(a) gepraseatation in ehina (Pfn?tl q9 : IlJlIBW), 8 Gtport Sourcing: (ginuta 9)1 ll(a) Progreee Pap6tt on Training and Pt~elopcn~ ~roj~ct (oinuta 3), .· 'C· 12 Betiav of Trading b~~ts : geviin of Lt plaFter Tobacco PPBI 13(~) ~iroaPmtat PoUg (linutaa gW3), ~n attached for tout iPfotgation an copies of the briefing notaa aent to the other teap neabers, B, Salter PslaJa Ilth Ikreh 1991 gncloeurea IV Clit; PDF -!::!!::!!::!.f3 StlC.i: 0111 I #)pIgg.IT 1~ ~CO~1Bm r roheceo Stntsn Mew hu IZjl I\ ii ~~~ciag of the Tobuco stntegl Beriev TenP wu held on Ztth ~bnury 1991, OtuePt Bit httic~ Sheehl, Ilrl IIP, ~twghtoP, Mr, BIDlllrJat, ICI Lfl Ptitchad, hr, VI garter, Lt P,JI IloPbeut, Dr, 8, gaiter (SleAtal)l UnebIe to he present : Mr, JIL Ilerckt In bttendpnca : L, J1L ec~Pn TtO linUtll Of tbl PC(III hetd on 3ork #oPabe 1990 nrt QHd, eontribptiow to Lsaeh holro# : Lit, ~ougbton reported that he had not pt cwp],eted the wo~ to ensure that the res(srch progreaw #l funded in a rg that tnl rersfficiant snd uhich aIao tot into IECO\IPe the need to wxiniee Dg 1ncooe, he vlll report baB n on this et the oar wetingl ~) ·LI·1~~~311..I~h0 .r~t~ 1~ r, r~l V (tobcco) end ~r, Will~ (linnPciJ. Sdnica) hid boon #eoPd~Ld to the project to tnicv the IftlPga~Ptl for Panqacnt training end deoelopaept, Tbe project has been ~ecalenred and is pow due for coPpbtion bJ oPd-Jul~, RPptYI will he reported at the PLlt neeting, i, fPterCowpanJ ~utaa i Ilr, BgplaJ reported thut there bu been 3 trenafen since the Lt ocetingl ~ full tnicll of progress during the felt in Khdulcd for the Sopteoher wiring, I, IPcnud ~r~itlrnt : It #s noted that the peed to appoint PlrugcoLnt tCIP( for the eCtifitiaa Ling set up in Ple~lm ~utop rod other nov Dlr~ell had sxpold a tFeelrness in the Ulited s~il3ilitf of undidltel for theae poltll It we agreed tht:~l llerter YWld eat up I project with L, grllrj end L, kirchtb, to` iautipte the ertent of this problw, etwpvfd~, end to recooeand how it could he ewIioreted, Dr, DotL ~adtC ill he ~lcrct~rl to the project, 61 Ltir of &nofeotnrIng Cepwitl I L. Rttcbud reported that Mr, Prl ~ahPhotlr had initiated the project to eetahuah the current and potential PIWfllCtUfiry QpleltJ in the Groupl to sltiblll where ~boptfPh Pg occur and to detereine when there II a potential for CIPDlion or other chsn8ee to IPPrOVe the o0erafl PrOdUEtitrltJ, Eolt-eff~eti~wels end t~ufflcirpclr in sonrcing the Gronp's Plthtll 71 It we noted that the projlet teen we h to net on Itb·ltb Yurch and it vs lugpltad tlu~ kl tard, Mr, Banniatar end LI Slbak lotS1 he imrited to join tha tew, II, It %I eIao ouggelted that the tew should conlider the potential for using, in kdl or elaewhere, loft cop and other olhinerl uhich had becow lurplw folowing the crplas~oa of bot p~r~iPg and other upgradiog at Hecon, othOr d~~pt rO,rt in tOOd L( Itudl bl Mr, Ibr~lr of th Oxpnneioe potential a LlrePth end s ~~ud~ bJ P1 Broughtoa of the apeiPIP sourcing of exports, 11l1 of this vor~ is due to be reported in Lt, i,,, lu Clit; PDF -!::!!::!!::!.f3 StlC.i: 0111 __ -2- 10, Yadll$ltr : L, lt·IO r~Crl~ Iroyrrll DP 61 po~s~ to n~~ tLe fiyrOo for oilorotto ooIoo coull bo oecloora aolly 11 o11 th Opnti$ CroSI klba aieh ro of loot ols 0 altpl~ I p(oda to III th·l ~1 Quiroa Illd tLI tha ~llta ~blll be oooobio Of ~bdq totll ooloo 0 ~r·t~ (incYil ooloo pLtt lac) h· 41 Croup lolrcll Id e~~r rlla ~boP1 LI o ell~t lalrltdiq ool ~tsamt boOoa tho OPorltioDl or thC CoPVoDtioPo to Io ad to cac$111 totlI 1~~1 oda oooh hoolio8 (III1 soIoo of " ~llc~ic ~Pfe~tiorl BrOol addddl), 111 It ·I notd tbt LI kll~t a~l ood ppol~L to ~, Iri~Ld. ra lIT, ~rtlt it lLroh lol ~Qd ro)ort at thO oat w~~~~ a prolrool to·t8 lorolooioO o ~ptr vhloh ro oooprohoooito od whlob oouIl 11 oooooool frllll throlybout thO Ctolp, 121 ~t~nd ~~rlt~P : It no Pot!d ILt ~11~1 thl QL1W1'1 III dotod 3rd Joooorl, thotl 114 bar r+t~~~a ~r~rl to onluro tht thorl at o allh dolrll of ·~baitt io tho roy~it~oP al prolotion of Iotorootiolll lrlOdl VorldVilol b eprtr~ of I1I~11 thlt oil bn~~ ~tl ~rr to or bottcr t~ oooootititro Lr~~ aI q~ ~ttclld ~a it ·~ I~ll~td ~t thl 1 Irlll Offiel Ilo~ L *la to PPL pllll( 01 CDltrill to rdr tl~rlcll~ for thO n of loc4 Ild Yhlrl Eblll lrl ItiU h fOrel (Iltl ii UQlil d IIPlall) , 131 It ·I potd thnt lllI Bpy M ogrod to tolo thoir tr~ gtib blld BI Broun 1 WiIliuoop, Io Qoiroop of thl loc8 cotplpl mi 410 bl ooltol to lopprt tho coll for ·ial Ire irportod Irf k ordlr to orFdl thc p~lrl of tho e4alrtlll ii, lho Qloiaoo ookol ~I L·let to cdia tb~r thoro rl a Iotol roouiraont io sooio to uoo 1~~ Iwf d Itrolld oloio tL L~rt~nc~ of inliotin8 t&t tho blitl of Lc~l IttL obould bo co~p~t811 or bettrr thr ~~~ d ~~f~tliQdl hloo, ~~t thorO voo coatf·tq prooouro O ~pt·~ LLat od ~1 eta, tho ourrrnt O)jlCtill for ohloh rtl thouOht to 11 00 ·rlitiowl 15( It ro notod tblt tho liotributioo io Iloir for Le~l Ittib ro i~l(rt~ for I bt~ l4ob ha o st mbe 1~1, L, lraIot rl ~lbl to coalYlt hov thil lilht bl otrcngthOPod, 1CI tloowhoro, kyotin hd row Ir~~ to eolfoa to LII1 ~lrl' opocifiootiooo al Dlrr~ 14 yrood O ro rls oao lool;t stre blod oI ~nq, Zho cutronr llod for ~~o~ t lldloo io ~pk, ineorptltip 60X loc~l )~~f ·o 41o eoaoilcrOd to ~tl o dl~tltts of ~ec~)t~L1~ p~it~, Vhilo nlcafl rL e~ot~t io llolotoio, thl Qli·ln IEtlllld &r thl 110 oat Lo to rtch pt 9·litr ad MICo, ~~Pdl colrinr to prool for tYII 171 11 Choiaoo Pro Iptlltla eLt thlea lodl bI eoltiai~ plllre to Lpa· ~o~~ gdicl it Group bnla~ loIol all il~~lal~ ola iP lll]rCrl Coil tlf, laY((~ 111 n Iotornotioul ~t~od~ : rl hi~h~d rsyortod tht ~t~lb tb! budlot for 1111 lbovod odf o 2,92 ~lcn~~~, tbl Itla~~ for 1~1~ to ehloo rl co~~cn~t~ta d it ·o bpll thlt ~ctrl ooioo a4l Ib o Growth ntl clooar to the 132 t~tylrl 1011 e~l~cie~ should lo d~prrl bt oil-ltopr ool sold bo a ~pr~t bceot io ~llprdll rloo, ClibPDF - v~~fastio.soni IJI 191 it MS noted that there Mre still iacopeLreociu between BATCo, and I BtOVD I WIIUOIDP sales figures but if Ma hoped that these would be resolved before the hay Peering, 201 Iq : pollowing the end of the Mr with Inp, it use aleestcd tbat iaoadiate consideration should be given to possible Mys for establishig brand goodwlll in tbis wrlret, 21, 6bbi~ : it Ma noted that although there as a high level of tax, ioportJ into eolo~bia are now alloMd, Is a result, it should be possible to establish bread presence in the ~s~et, 22~ rrst i It vllooted tha;lhegcpt rDT inEutope bd h~gblighted the problo that the prolotion and peclugiug projectad a Bngliah iPage which Ma not helpful for m ~arlcaa cigarette, Various Is~ys to prodee a nre ~~ricaP inage ware suggested including lanufacture in the nsa (but thought to be Uecononic); CDphlligfg on the p~chg~ag that it Ms so $eticon-stJle cigarette; using a European advsrtisig agency to give a europr~n ipags of ~wriconlss; and concentrating on #r~cts such as France and italy t~hare there were severe teettiftiop~ oa advertasag, 23, it Ms noted that vor~ Ms oontinuig to develop a superior gent tights product and to cwfia the greed pclaging foaafel It Ms also noted that Crrailoy will test wrlret rent tights in the 3rd p~#tlt, 24, rnnt rrda prelresslve i~o QIPe, Follmrfng dr solutho~ the tipping problrP and the outrig off of parallel supplies through Oruguay, it II hoped that sales to ehina will axceed budget in 19911 25, It Ma noted that gent continues to be a hay lateraational bFI~ for the Group, B, kitchPrd will report a the pleas for the gent leisure Paclup at the hey Peering, 261 mm s~rx~ continues to ha progressive and a bt objective for 1991 will be to expand ruciry Stri~a tights, introducing the brand into as Imy aar~ctl u possible as a diner co~pecitor to &tlboro tights( it Ms greed that there should be a deeetlPincd erpigp for eapansion bssed on tuclrJ Stritu Plain, Filter ad tights versions with Llry Setih Super tights available if required, fowcvar, it Ms thought tbat having tacky Stt~h Hilds as well as lighb Ms confusing to the conll~ar, it Ms auggestsd, therefore, that the CIPt~CPt policy to prooote tights and to let Mill find their own level should be podified, dth greater effort being applied to converting Ilild saolrera to Lights( B; Ms greed that it would bs helpful to acquire frcn Gallahara tbs to sell tuc~ St~ih in prance lad that Elr, Bralag should prepare to open discussioaa drb Callohra to detsaias whether they would be prepared to sail for alh the rights to luclv3 Strilra in prance or, failing thia, to negotiate M exF,hange for certain rights to Benson g gedges in Europe, ercluding Duty pree lad Gernany, O in pnpentioo for tht, nF, Ritehad will establish by oPd·El~rch, ' the value to BIT of o~ming Llr~ Str~b in prance, At the saae tiae, ~1 Brilplel and Mr, Plerter will assess the value of Benson ii Bedgea in Lropc, 1,11 Clit; PDF -!::!!::!!::!.f3 StlC.i: 0111 29, It was noted that the salesforoa in Irasil are enrhuaiastic about the success L~e~y Strilra is achieving in direct foopritiap with Ltlborol It is also hoped to launch in hfle leed of rsrrborol 301 It wt agreed that there should be continuing pressure to raise prices with the sip of casing close a, utehiPg or pen ~nctd~ng the Lrlboto price in aa aany uth~~ as possible, 311 gdg&U : It was noted that the version of Ilorclap ratad at 200 was doing well in Swltcerlsnd, however, it was also noted that despite the difficulty of perifgins the rPring in Iloraforiel land the led: of taste), philip Y6rria were continuing to prooote I leg cigarette in several hey rthts~ It wee agreed, therefore, that in addition to launching the new bg version, there should also be a lag version aailablr for Lunch if reguiiedl 32, Tnere is a continuing need to repodtion the original Barclay 'Iag' · product as II Sag product and to tLe this repositioning correctly in relation to the launch of the new 209 product (aod potentially also in relation to the launch of the new lag product), 33, It vol agreed that Mr, pritchard would present an overall strategy for Barctay at the Hey aaeting, ~indudiag the plans for the 9001 Sag, 209 and log mts~oa~~ 341 It was noted that despite a disappointing reception in the Japanese ntlret overall, krclag had been succeesful in soee segaents and was therefore being persevered with, with a view to the long taral 35, CIpgl, vreQm lad gOOl : It usa noted that I(ool ~nl showing soae vitality in Par pest Oarkets, I 1DOrC detailed review Of 9001 and of the other two brande is acheduled for the hay aeeting, 361 1g Iotctpdiol Inod~ : ph, BtePrcg reported that I~nsoo i Bedgas had stabilised and was looldag to increase in 19911 State Express 555 radncd progresaive, especially in the Par Erst, and PCI we also progressive, JPS was budgetted to increaae in 1991 after experienciDg only a slight decline in 1990, CffPpot~d with I DUCh greater decline in 19891 3'1, It was noted that ~rl Bre~lcg m,uld bring together Mr, Brootrea, ntl Crlchton and ~s~ Daborne for a aeetiag to review the overall strategy for the proootion and dntlolntnr of ~1~ International Brands; confirefng the positioning and potential of the individual bnndl (IOCllldlPp Sg Slj LUlda); and discussing tha relationship between the proaotiooal spend and the olrbt potential for each brand, 381 gaatern kop~ : Mr, tIerter reported that ucluding But GerPany which ups pow included in the total Gcnanl~r~ct, 0100p #lv to Eastern Europe PPd the DSSR increased froa 117 billion in 1989 to 2,95 billion in 1990, with exports braaiag fret 1,1 billion to 212 billion, 39, Iha QldtPaa stressed the need for Mr, garter to~n~S~' on the applinaent of repreleptetbcll in 11111$1 Toeo~~ol~ and to cooplete the nrlut study Obtoining good infonstioo was an essential precursor to identifying and wlaluating opportunities within Eastern Europe, i,,, ru Clit; PDF -!::!!::!!::!.f3 StlC.i: 0111 ~~C~ -5e 401 It as noted that there bed been continuing progress on nagotiationa which could read to joint Ventures in Ijppll~ and ~O~LD~I RI projects abuld be mansged, It as suggested that the p6sdbiltg pf Chairman will discuss with L, gramlel and Mn garter how these recruiting polish epaa~en fta tbs DSA Should be bow in liod~ 41, It vail noted that grown i IJilliaPson would complete a ~urvc~ of the gomanian wht bf the end of ~ptil and would report on the potential of the wrlret at the hay meeting, Current sales are handled through 29 independent distributors and are for futl margin products onlgl IZ, In tbe OgSI, It HI( bap~ to ila(Lile the cboi~~ pi cc office in Marchl Group cwpaoka were continuing to pnrsue import opportunities within the price and brand parameters which had been qrCCdl I1OveVlt, swingeing incraases in import duties and the gmatal disorganisation within the enmtry eade it difficult to build up stable trading relationships, 43, tuf Mlilorl taa : PP, BrllDlg reported tLt the leaf 4dvieor)r Ram had completed an initial aurVeg of leaf growing in poland, tluagary and Bulgarh and had come to the conclusion that $anu it eight be ccnparatfvclf eaeg to effect improvementI in poland and rtungary, lore dial changes to the slstems eight he required to bring Bnlgarian production O a #tLfsctorl standard, 44, It as agreed that an iePortant elelent Of PD~ imr~s~lPt propoaal in pastern Elaope would be to determine the type of cigarettes to be made and to assess the iaproVePents to leaf quality that would be needed, Re proposal should then include appropriate recoeeendations for the team required (e,gl an agronooist and a brander) In order to achiwe the required inproVement. 45. Other ha fLt)taU ;Hr, Pritchard reported that the reader of the coup in ReilaPd bad been 1 strong supporter of the 01110091 eoPopory, Therefore, there as untiloll to be an iPproPaaat in the current situation where although imports were allowed, the roast practical price It which thase could be sold as 40 baht compared with if baht for local eigate~eu~ pr, Baler reported that BUCo, now bed an import licence for Ilcrico and aurd be bringing a project to the CPC proposing a te-opcnfPg of the #thtl Rare had bran no significant new developments in Torhet or in gaa and ~i~r~p~ Bowaver, it as hoped to haps the position on gOllclarified f~th~r before the QIPlfDIO'I Visit 10 SIPgaPorC in JUPal 471 graailian gtports : It was noted that Souza Crut had arported 70 million to poland in 1990 and as hoping to increase this to 700 million in 19911 Other marl(ets are also showing significant growth, Re Chairman emphasised the need to build up II strooger · organisation oVerseas and suggested that trsining for the people Invo5ved could be provided through BATmtEI 11II h, Clit; PDF -!::!!::!!::!.f3 StlC.i: 0111 1I1 htio~r~a of OIII1 ~r~~ : Mr, frItIl tlptrll thIt thItI ·I I PtolrIllI in Y to Ittllthm thI Lpl)'l toprIIIntItioI in r~ll~~ arlutI Iod to anti ~L~ vhorI thItI aI tote t~l onl eoq corp~al tl)tl~rra it 1 wtbt, co~~~st~tfr vII boint tblP O thI PtllfW Illlitl Of ~i~ fIEilitioI ad ploacl ~a· officl hi ~ opra in caol, fIcllitiII in ~iZIPd Id TLIVIP hd bra t~rio~il~a, lorI II ndIr PIICIIIIOD Ind DUi, SIDdi, ~ q ad ~tbl~lOl III alo lalt rIviIv, It ·I ootd ~t LI Lrll Ind ~I ~itcLrd Iuid tlptt in LI on thl rIInltl of thl ~~~~ IIf p to dItonioI tbl optLI Itnctltl for IorvinO thI ChiI wrb~l 501 Jn 1 ~, Itrlol tlport~ tLt BI h~ ~ctl~ld their IIloI to thl gDllth LII Lia Il~tl b I I~ll·tM It il· Y kII I IlIpicioo thIt t~lY bIII dapini but fnrthIt iacltit~rio~Y at I~~Ekttl tbiI, ~ir ~ct~itt u eaptiton ~1, honlr, eo~tin to bI ~od~ta doIIt)r, 511 ~d ~LPy~r~ ~Lrlut~ IIiIr I LI IritohIrd Id ~1 Ioban rl~te~ tLr it rI bop~ to rb I fiat t~e·raCtlon for th lacItisn for thl coaltrl b Jlrel, If II IOtIId t~t'of t~ loc~tior ~i~ h~ bIa Eorid~r~l, M~o, notib ~p)c~tJ to hffo Dolt to rIaaInd it, bItholyh tbl ~el~ rail~o~8 ~tll~ fot tb ~r~r h~ boIn iltt3~~ ~~~r, thiI hd aa ber fold to ~ ilp~~cticdll Id, IubIIquInt ta ~ wIting, rnriIId ~nl of l9th-231d bt·ber ·rI yrINd, 52, g, Prt~t (IxeiIe struotnroI), LI Llrll (It~ eoodviiI) 14 Hr, hit6~ta (Qlt-tliletkr~~ of Prolotioo ad Yl~iktioll~~s ~l~tiol~p~) foafinod ~f 2~ ~,~r~fiool for thIit tl~~eti~l Il~lio~ Iro toinl ILlIdl LI Lrtr dU circ5tl I pyr a ~~ci~~ IILrl thl I·~t to ~1~ d$~lle~~ to ploPIrI ~it a co~ttl~ionll h Lrrlf ~IY for oxIptII of tbI ~Tr of pditt on bd loodvill Iod it ·I IPllrtol tllt Iran i Ill~~ol lilht ~ J11 to ptotidI b41~ thL1 II, B1 ~~illo~ tilt of p~r~irt~ to thI IIillIt rI Eoofind II tollol:· Iron i WilliIIon : : bltto, ~r~l ~ria 1 Itwn,Ino I~aTef : 8cbiitilrl TolIt I Itoob~, ~1~1, Ittsrtol, lloII, hclQlr, emt, usl ~t~l Pinor, Wurplorl bid, ~·, EdUPII, Qlb, bdorl HoDoIII, Lt~tol, ~I Iljlh· ChIttII h· thl ptItrioa tilt ·tl dr IubItitutioD of b for StIphInIoD Ind thI Idditiop of L~I RoII, Start ln1 Lo~~4r ~d boon allltd tra tho oril~ tilt but ·rl Itilt cooIidIrId a IoIIibloI, LI )IOlltl II IY to rAi· IJ rtptt L1B a othlt' ptlpfi~ undldItOI bl thl Ilii, vhioh II dIIiepd fat p·~lt I Icll~ rlyn dr~ eoprl'l por~Pt~d, SubcpuIot to tho ~Heil, Lt Id I, atl Ipl~ltld II pll~ll IdditionI to tL tilt, 'rU i,,, o ClibPDF - v~~fastio.soni ,7·· 54~ Lehnlul LidoooYootlso I ~I Ir·lll plllt(( I Ril of tho tochniCoI Lioiooo nlltlso hold in 1919 nod 1990, It so qn~ tLI 6111 tll Tohnoco ltrotoBlr Bnim bl dlhll to Icrll thc io~st~ny of ilfontion nod aplrrill hi iP(ili~ll, thorn Ibdl Is 1 t~wt~n in tho fto4nooct of l~m~l oeotinll iaolrioO iorlo prbln of poCI, It n lspootod tbt vhoo rllra ~t~l~ rrl hold, thl oio ~b$l ho to IiDit th ~et~drcl to rlr ehinr of tho Iwtia Ihl ol~ ro)rooooutitn ~a oooh oyatioll If st 4~0 olrood eke tho frlbwl of th~~e Ir~r~f I~~ti~~ Ibdl 4 nard to t~~ Illodql- (o) bl~a~ lolicf CtouplOroOrcoo Ltil~ PnodoolntlI Llllr~ - ealin~l Ilnplul Mootis, (b) Sciantific llooontch Etool - knl, i B) kl~l 1~1~ hou) · Llq Y ~h (1) Ad-hoc ~~~bpl, otcl I Ooig I~rl initiotd or srood )I rho Toboooo Otnel~ lniow Brl 551 1l Jolpiioo : It ·I cdDfitlod e~r Llf ooopIioo ·n 1~1 to ho le~s~ t~ltrictd worldwido ip 1991, vith tr14 in porticuiu in Ilort ooooit, 1 pticll voro oxPootod O incronlo It Sl nod lrootor ptiel locnl~l~ woro upootod for I~plil~ froD kuil, ~ltir nod wobohoo, It pt Br yctd thot tho & Iroctpl of 300 lillioD ~lo~ r~d bo hm ion ood t~t thl ptooonro on Llf otiou vould oohlrrnlo cooPnnill Yho Y coodttCd to onoPil 1· PTico dlltlttll to rbl II11 I(( LI Pritchnrd, Hr, I~lg ord ~I lLrtor eaiiad ~t ~~1~~~ Y hoon ICCtd for 19)1 nod eht th lih4 Ids in tlo pooduIll in 1992, no rnnt ohor"oloo oncwrsod rn plnntiol, Id nloo hoon toluo into ncoolmt, 571 L1 Roohout rlyttcl thot tom Cror tnro ~rai bohiad on durotiool od it n pld Eht it woo ~prtrt to tnIlr to flo Ll~nL CollrOoont ~bQe hoV lnotonood ~lll'~oartio~ c~d bl LPUIU~L~~ I oL llo4d Io to irtu~~ luf pl+tLI II1SX ond L, bLlt ooo I~ba 0 tlpte to thl Qli~ll hov b·l ctot ·dl Ittat to oDtourolo thin, 511 E~fitO~P~ Tohceo Slolu I LI hitcltl nprta thot tho a drnft roportl It tho I Biro~l~l laewtiolr~lq or ~~a lffooto of I~~I~I Lo~q nod aairora~l roblcco Oloh in Lr~pwa~ ·t~ Itm oodor rdr Lt tho ~ltnt'l 8oiootifio klvilorl b~~ (IU)I L~ L glll·an IBinJ thot tho Tohoooo ~r~~ roproooototivu m unsl(ip LL i~~~ I~ti~fuari~ nod thlt Po frthlr Ipid~ei~~l mtl ~la for it ~s~ll~, L~lr, thin would bl Iopt DndLr r~L. 19, nrrSlfi9 :h Pritthsrd tlpottcd &r o Qpr~~l~~ cr~~t~l hod tonclad thnt it so r~cLic~~ plble to pdn o oolf-ottisuithis c4ntt~ nod 41 initiotod fiathor r~ oiod It drnftis l~dlktir to ~pcilt thin no o r~~dr~tl Bovovor, ebl liniolu ptioa ropuirld for thl IreLr tlotinp ~~d edl ho oocoooort ~ior to fr·il tho Ilt~~l~tlr vonld Io thrsc looto, Cutront i~~c~tiou voro t~~e frthlr proIlooo Y orilll in dofinis o voiid toot for o ~~l~atiqd~U~ cillrltte nod Folt~~~ op99orod lihlt to Io ~1~, ~~~t, thin ·~1 cootiooo to LI ROiBI~I N 11,I o ClibPDF - v~~fastio.soni I·I ,gl ~-·· Chrten :Htl Brwghtoo reported that the Brctutiooll (baaher of CooPatce bad put forward a Qurtet of EnPiroaeotat principles to lieh coapanies would be invited to give fo~al support, Zhill was siPilat to the Valdes Principles presented at the last neeting but 91 note ptagpatic, seeldng steady inproveeent rather than setting absolute standards, Since it las also supported by a body with #n standing than the 01616 pressure group, who were pto~otiag tha Valdel Principles, It could gain tote support than the very low ~eval~ achieved by 01669, The current view on the Ice Qarter wall that although the wording of paragraphs 6 and 7 of the Principles, on Productsl6crvices and Cu~~aLr Mvica, eight raise difficulties for a ToLco coPpany, qualified acceptance of the Chsrrar eight be desirable, Coopanies would be aslred to consider, with their legal advisers, whether these paragraphs could be tedrafted in a fore $ich would be acceptable to a Tobacco coPpmyl c B environrnrol audits and LI Ilroughton would discuss with EoPpmieP how it was noted that there could also be a tepuireeent for independent . there eight beef be carried outl O Hr, Brougbtoa will vrite to coepanies separately regarding the whole question of Envitooeental Policy, which is also due for review by the B,A,T Induatries board in October 1991, 6?1 Slo~in~ COIPPDdllPa ;1PI BrPlrc]r reported that the SDOUDp Dopondlw would be updated by cnd·aptill 60, Sidestreaw SooE~e : It was agreed that Ptbougb there were doubts about the potential for pro~odng raductioua in lidsstta~ seolu as a selling point, theta should still be fo~i objectives to reduce visible sidestreeD s~oh ftoP GtOUp P~OdUEtl~ lf was OI~LCd that coppanies should introduce appropriate objectives into theft product developent aod quality control prograeees, 65, ~ddititsl Jmgister i ~I Ijyppllf reported that the Mdifivel BegLtet C Vis Il~a~t c.~le 1Pd IYld k dtEY1IUd ~I1I ii & PII 661 blendars ILodbol : ~I Rftcbnrd circulated copiu of the blenders ~odboo~ to peebarsl 67, f·l robacco : it was reported that tRr~ tb incorporate 1-1 blends into Iw-ta cigarettes was continuing, focruding i# use in the forthcooing trial of Batcky in lonrall MePbers wera uhd to rapott progress at the cart eeetingl 66, LcOPlrirora gtee : It waa noted that VO~~ to IDEtCalll the IlsC Of reconstituted stea is continuing, It was agraad that this should be pursued with the objective of wlriag full use of tha potential for iPptovawnf offered by this process, 69, Looi~ Zkeateeat i it was noted that the uort to characterise the dccapolitioP products of cigarettes containiPg ~pOPiStld tobacco Vaa continuing and that the results of this worlr would be reported io Sapteeber, Mr, brawley wt u~cd to ensure that products fra brown i Xillianson and results ftoe their own Mr~ were iPctuded in the overall review, f01 Datea of beat Ileetings I Ihe next eeeting has been arranged for Ihursda), 30th hay Subsequent dates an Ptidq, 6th 8epteeber and Nonday, Znd Deceeber, afilns~ 15th hteh 1991 O Clit; PDF -!::!!::!!::!.f3 StlC.i: 0111 _t __I I· ~·· _·· ·· a eo~s l11I a 1IlDII i -~ SESc~i r~o~manloinsn I 'cl U ""' ' ' A Ieting of rbe Tobeeo lteetest Bniw Wr vu held on 30th Po~~btr 1990, ~c~ld: wt, ~I Shleht, L, n,r, seonghtou, he, B1D, sealet, LI B,J, Riteh#d, Itt, O, Barter, ~. p,l, BoPbalt, Kr, J41 LreLr, Dr, B, Salter (Seeretary) LI d~b Beard attended for Itau 35·51, 1, Tho tlnptel of the *etiPg held on 17b Septabrt an yrced, i, IPtcrCapmT rTeenfete': It pe noted that apy~~~n~ieiel to broaden nanagars' uperiewe apd to trawfer expertiae through noveeenta of staff batuean group colpisl are being pursued Icrltclg, baearing to review detipg seoondwnts 1Dd to review progress on the identification of new opporrla~itial and new candidates will be arranged bt· Nrl k~PlcJ in liCU91, The reanlts of these tnicvl will be reported to the tew in Saptaber 1991, I I 31 Lprulpution in Orcnau ~utct~ I It wa Pored that in sone Pld211 Ihere PorC then one CrOPP COlaq II FcF~ale~led, inanfficieot advantage #s being ta~sP of oppottm~ltial to raduce costs and iaprove afficienef bg sharing office facilities, aarlret Inbm~tion, plrlut eeecetch, ate, It rl egreed tlut L, sealet, E~, PtitEhsrd and i~t, Barter vould review the arrangenents for their ovcr#w representation and vould report baeh to the pert Peering op specific actioo being uh to inprwe ceotdktioo~ i, 1 InternationJ. Branda :~h, Ptitchard reported that alw of OSIB for the pc would show II significant (133) iarease on 1989, The rate of incrcuc in the MCOPd half of 1990 would be less than in the early PIFt Of the rat but then Ieo lyltic hcron erpieiuing tbil [*II' the tiPing of the OiPelellcvBa; of 1IIDehcl IDJIPUI; and Of the opening of EIE EUrOpean Par]rets), Th#, it did wt repreaent a sbfLohg in the ~Pdetlflpg noaentlIs of grovth in US International Brands, Brow i Villiwson VCre COePlttCd to the objective of achiaving 153 p,a, vo~t~ growth through identifying ad L: fPlb sdpitiPp aurkar apportdtL a then neoee, wotldvlde, 51 for Ent, it vaa noted that a first crrlrtiop of the Total Mfer Bin In gmbp sould be lade In di-Dccaaher, LmIPs tbet thin evaluation ~hot~ encouraging tasulta, teet urhR·ua planned for 1993 with a p~sluropdan LuPch in 1992. It mt tllp wrad tb~t the lawch in Brasil bad baan brought forward froa 1992 to 19911 6, htLI S~ri~ liZb Il coplidarsd to here I good genrtb porntiel end VoYfd be IPLlllble in15 eoPtrieI iP1991, d ponibla lennoh in ~cPa~ucL tar being eoPlid~ttd ad lucLt Strik ae pallng good progress in Brazil, prospects in Europe were cowidered to ba prticulorll good dth ligdfiunt progteee in Ceauny lad f~rrt~r lunchl p~nacd for 1991, the AUI~D uod~rll~ed the IDPOPtLPU Of lo~ntiPg a nP111 effective sales drive for this brand, clnnensnrata with its ~dting ptolpctl in the lur&r, It vrl also inpottant that the OPidmco on pricing and on blends uas follovsd in each Puht to euure the right podtioniag ralativa to Marlboro, he, sealet ail ubd to nvir the blandl, prLlq ad dilltibutln in Spain and to raporE bwh to tha Patt Yltinp on action k~P to inptwe pltallt~, rain pdcu and strengthen distribution in rhia oulat, h) P Clit; PDF -!::!!::!!::!.f3 StlC.i: 0111 12- 8, The Chairan stressed the ippottance of cbnfotniag to the apprwed blends for gent ad luclrg Srrfb worldwide ad olbd for reports for thou rthts where other bloods are being used, outlining ueioo in hand to chanee O the approved recipesl 9, br garclafl it as agreed that it would be critical to aPofd dragiPg the i~nage of Batcley as cabining full fleoo~r with low deliveries, It as inportant, therefore, to he in a position to launch Barclay Ultra lights (288) old of any change in the tar rating of the existing product, Ba~iald strategies should be considered for those urhts vbare it had been intended to launch a 519 tared product ahead of the hg ~eaioP~ The revised strategies foe beerq will be tevisvsd at the nut aeetiag. 101 It as agreed that eapri ad other lupasll products would continue to be sigaificant I1I niche productsbut, in future, progress should be rcPiemd at i Ponttlp ineenrllll rather thon pwtcerl~l 11~ it as noted that ~icsrg ad Iool continued to be prolrud~e in selected rrh# and it as suggested that further cooddet#ion should be giocn to the potential for CIPP~IPB sales Of ~PtbOl cigsrettes in the AfricalMiddle East regionl 12, It vat noted that Pall ILU as i~PportooL a a leading low-priced brand for Eastern Europe and far Gernaey, The hairnsn Ilttulld that it as iDportsot for the brand owner to coatrol the bleods~ Bowever, prwided this as done, the ~th~e should be supplied fta the 1Puele cost source, subject to the further condition that the business Dust be profitable on a full cost rather than a ppatginal bads. Specific consideration should be given to luppl~ng Pell hall fra Itdl, Details of the blend to be wed will be supplied by Hr. Pritchard. 131 The 1991 Plans for the ujor m fnternatioaal gruda will be reoievld It the neat naating. in addition, LI Pritchard will also ptoPlde II nots explaining the differencss bataan the Dethods wed to calculate the figures for US Lta~nstioPal Brondr, as presented by grown i f8lli~n~wP ad B~TCo~ respectivelyl C 16, 1 IPtereatiwal Bnndo : g~ Brdcg reported ~h~t dlhough dc~esric sales of Ug tntetoationa1 grands, apart ftO~L Players Cold leaf get),.,, static or dsclfnipg, export sales of SE 555 ad Pm are ptogrcnk and the declines in Ienson i Badges and JPS appeared to hot beep halted, Overall, aales of Vg Interpatianal BtJI are continuing to upand, 15~ For gelon i Badges it as aoecd that there had been good progress in Fr~Pcr ~0192 rrlur Shore) end the podeipn ~p seer Ifricl appeared to have stabilisedl ~e ndlueion of the potential for LuacbiPg a B~uon i Bedgas ~crtcao lights had not been encouraging but as being looW at again in the contut of the EkktlLn parhtl 16. State Erpress continued to do all in the Par g~LI There as a need to redesign the pact( for the LW TOt Pariants but it as agreed that the brand inage was sufficiently strong to allow cwidctable latitude in deaign, 171 gDoung Qalitt was a continuing concern ad it as agreed that ia order to pliPlsln she Lage of the International Btanda, it as ipppttePt r1UI these were Lucd on ~PII~PldD1 U~pds~ I;Parltfkt N should be made to negotiate an end to ay restrictions (e1B, in Spain O and Malaysia) requiring the we of local Icd~ ~ Clit; PDF -!::!!::!!::!.f3 StlC.i: 0111 -JI 18~ Butern gprope : a, Bertar reported IL even excluding %et CerWny, ~ich is now pt of the Germa doneetic ~rht, 1990 sales to Eastern P,uroa a to the ad of Octoher are 2.5 billion, which We over 502 ahesd of the corresponding period in 1989, Bowver, matht conditions are bCQDIOO more difficult due to political ~e~tulnties and a ZRI#PIPB economic litUltiW· n WI 91110 noted that Philip HorrL We still Ire succsseful in penetrating the Olthtl ad in expanding 91191 to duty free and hard currency outlets, 19~ The lTSSB Ws being vidtcd during the vee~ and ons p~apoee of the visit will be to set up the bscw off~ea~ The Group had already established a wee of contacts in the IISSR and in addition to offers to the Orntrel lmart ~OPC9, an~uities ware also being received fra traders who are believed to he supplying the rt~t through coater-trade arrangements, 201 in Polnnd', increased taxes lad pilipe darier on inarts were severely restricting business, especially in the hard EurrePcV outlot~~ Blthpugh there are oops opportunities tot iport~ from Brazil (tJhich attacted lower rates of iqatr duty), longer ten expansion as liltely to depend on ~nufacruring in Poland, 21, a, Better hsd bad trl& with the vorlra council of a factory in Poland ~hieh could be ptivetieed and tha nert Itngo vould be to Icnd p folhl proposal for I joint venture, dlthough the factory as saaller thsn the ta leading manufacturing plants (which are in negotiation with Philip Ltril and 1JB), it apaare to be reasonehly efficient and has room for apa~liopl If the Group pToPOU1 are to he accepted, the ~i~tlf leal of iwls~cot would be around e4.5 aillion, VblC~ might be in the fon of mcchneryl 221 The Qlairmnn suggested that it would be helpful for nth Better to seelr assistance froP a COPPq in london which as bowP to the Group and which had experience of negotiating joint venture arrangaents in Poland, ro~ fttlr aid he would do this ahesd Of sending the proaaed letter of intent to the Polish Binister for ~ore~gn lnvestant. In addition, It We Doled thst the Gnup should lo be prepared to advise the Polish CdVertsPent on excise structaes, which L apaared to be rudimentary at present, 231 8nnyry ~ a, Br~lg reported that a proposal for a investment In a factory It Pecs in Hungary as currently being considered by the State Property ~encT, blthough their responae on this had been delayed, it Wa exacted within the next few days, Bovcvet, the change of Finance 1Pistcr in aungary might cause a father delay, 20, lalguL : klloving a visit to evaluate 3 fPctoti# in aulgaria se potential investments, it vet intended toeend a letter of intent which a, Vatterton hopd to discuss with the ~gsrk authorities in Jnnuaryl a, Watterton would also seelr to identify export oppottaitiee during his visit, 251 hd ~dti#tl Taa i a Btrlq reported that the leaf Idoisory Tea had been set up sloog the lines previously agreed snd the tea planned to visit Bungstf, Poland and Bulgaria duriPg January, it II hoped that by i~til next year, the tea would be in a pdtion to provide nseful sdrica on loaf growing in each of these eollntriul 1l11 Clit; PDF -!::!!::!!::!.f3 StlC.i: 0111 ·· ·II 211 ~ktna : Mr, srslley reported that Mr, Watterton had visited Viatna ad would return in january for further discussions on the potential for iwwrmept there, In the neantine, It as thought thst there could be opportuoities to prolote exports of Se 5551 271 ~M1 : BaTCQ, hsd ant in a sdviwr to help the Butnesa Govarnnent set up on ucLsa structure, Clthough inadiore opportdtitcl for iacruled rrlde or invel~PLPt l)peered to be linited, contscts with this Mtbt would be Deintained, 281 soa : It as noted that BsT had been veil Imows in vietnal end Bu~s through S~TL and the Chairlnan suggested that a fo~al ~grre~ent with S~Z night be considered a a ~wy to build on these contacts, 29, 1Mco : Hr~ Braoley reported that the Group's brands had been registered in Idco and a fnpott licence bed been applied fot~ The potential for setting up a secondary pmufefruriPg plant as slso being invest fptcd, Attenpts are being lade to hll badr the rights to the viceroy ttodep~t~ bor the current owners were resistant to this, 30, ~r~cT I Htl Bt~lef reported that a weting would be held early in Decenher to progress the nagotiations on a potential ~lnrellarnl in Tuthgl This project had now been bonded war to Mt, LtrcttoP end his teal 311 llruiliangrpotts : It as noted that following a significant increase in 1990, the target for uports fron Brasil io 1991 would be 3 billion, which as over doubt the rohne schiared in 1989, The Chai~P stressed the need to upgrade the stsffing and erpertise in this activity and it mag Doted that Sousa Cruz are obtsiniag brrp'fra Brown i Clilliaeleoo in this respect, It was o~ll that 9ouu (hu should report progress at the oat leering, copaidetiog the price and profitability of exports as #11 as tbs tol~~ 32, Mnnfartnring Gapacity : PoUovlPg discussion of sn initial survey of the plcn~ and potential capacity of the Group's ain olmufoetllt~Pe facilities, it as suggested that f~rtbat work as repulred both to establish where shortfalls sight ofc~ and also to V aetablish Bare there vee a p~aPrlP for aprpdon re iqrAc the ovsrall productivity, Eo~t·effcctivaPcel and tat·fficiency in sourcing the Group's ~rht~, 331 It as agreed that Mr. l(o~mho#t should be Ps~ed to strange aseeting of the Group's prOdllCtiOD directors snd tbst he should produce a review for the hay leeting of the teal showing the currently planed capacity and output of the Group's naoufacturing facilities; identifying potential ptoblens; and considering optloss for specific sxpasions to provide extra copitl ad oppttdries for lora cost-effsctive ad tarefficient YIJI to oaet overall Group dLDLDd~ 34, The hsirssn noted that Mr, ~lltlr at B~LTORg hd produced s good appraisal of the potential for erpanding Southanptoo ad suggested that I sinilar appraisal should be cuticd out for Ihytcurh~ be also stressed the Peed for each COPPIDJr to eDPCC that PIChlDell 1RUld be available to rer planned expasioo snd refurbishant up to 1991, If as also suggested that Souza e~ul should contact rehiPary nanuaactrlpets to try to encourage inproved evailsbility in Brasil of the aquipnent needed to update their naufacturing facilities, 1111 Clit; PDF -!::!!::!!::!.f3 StlC.i: 0111 II· 31~ roddentalPleutch Prottoaa : Introducing the proposed prograne for rllndePentll aeeeerch, Hs~ heard uid that there had been e change of enphasis with grutsr priority now being sivcn to providing the scientific bis for iPprOved product deligp, k a result, less priority as being given to regulatory issues end to speculative vot~ on innovative products, Tbs proposed allocation of effort vs~:- (3 Snob Ouality LpprrvaPt 352 (b) Innovative products 202 (c) aegulatort rssues 282 (d) tevirolepental ~;sll~ 172 36, lifter discussion, it twa agreed that the proposed allocation of effort and the total budget of E31881 Pillion plus f04296 dllioP for the Scientific aesearch Group projects were acceptable, Zhe propoaoll for the contributions Iroo each conpaoll to funding the progranes as noted I bur before qreeiag these it as oslred thst there should he a further chcc~ by YP, BroUghton to ensure that the allocations are oade in the nost ta~tfficlr vaJ~ 31, ~iolotic~ Ltitftl I ~ specific issue diseased in the review of the research ptogt~a as the Group's position on testing for 'biological activity' by the hu test and by other nethods, It as noted thst there is a continuing ptogte~e to aopltor trends in the eargence of new hioeuaye end to develop expertise in thou which Ipay bov! relevance to tobuco products, Xt wu alao noted that despite the tmcertninty elocktcd with current in vitro tests end their qplicPbil;LB to caPpla systens, they could provide infornation both as O ha people who we these tests Plf charecteriu Group products and as to ~ble~t further research is required, Bovcvcr, this does pot inply acecptulce of the validity of these tests, 381 Techolul W~OD : BevIewlag the current arrangaents for technical liaison, it as noted tbat the ioterChlPSe of iPfOFPltiOP OOlhD and product devlloFPent appeared to he vor~Pg all but there vol lus L edldcPce io tb effccti~was in shariPs IPfOWLIDP end expertise op nonuf vturiag proca#es, 391 It as sgraed that, wherever possible, technical liaison should be on on ed hoc basis and reguler liaison neetinga should be noidldl It as also suggested that it as better for the person responaible for a activity to be involved directly rather than having one person reeponsihle for liaison over a rage Of subjecte, ' while it as accepted that secondPentl are I oct3 effective ncan~ for sharing ap#iePce in depth, these should he r#tricted to cull where there as a specific purpose related either to the tranafer of specific uperttae or to ~PVr developeeet, 40, The (baiaan ubd L~ BrppjdJ a arrange for a paper to be presented to the next netiag, detailins the technical liaison aetings which had occurred in 1989 and 1990, Showing the location of each ad tbs pppall Of the people who had attended, Bessd oa this, the tea would then be ulred to decide whether there as a case for reducing the nunber of DHdP8I end whether the attendance at future neetings ought to involve a wider spectra of p0plcl O Clit; PDF -!::!!::!!::!.f3 StlC.i: 0111 -6- II, ~tP~t0B IoIoo ' b~ I UtCtlft : L~ 3ll1B iPrtolrd I Ioot IuIteotlne Ippwwll vhioh e·9 c~~l piIht r~b 400 f~ccl with tbe noOIihiIitl of ~1~~ iottodotfnI hooo on ·o~q, It rl eItood tit the pplt rlll he rlfQ u taaP Iofdnooo tot rl bl i~a~~~ ooopooieI nod Ihould he ~~ ndllls to tL for ·I in this It, It rI 4# Ini8oltod tit In ddiein9 ~Bt to be oodo r tit ~~ drliwl IoIood ftl IoolrioI ioo thtouIh tacd 41iniltritire d ~ oIonoioI coltl, fIenno ~LI IuId not be jalfl the lllue rtirlL fta thlit altalrl' point of ~~rl Il, 1 ~i~one~~ Ptotootion 4~ : It ro 00~d thot the I laitoat~l )sewtia 41001 hd ptodooeb t· dtnit teportI or L4th Iffectl of PeoIltre SooldnI Ind ~iroreP~1 Tobocco ~ob i WorltpIIooIl t~ )rithl roportoil tbr 1Lle rtl I* leil ooPIilerod b tbo CoterraentlI Ocintific ddviIotlr bcd (I~)~ he all report the trwtiou a the SE ot the oext wltilt, 131 BidcIttw bh I ObjectiveI iot rdriq Iiaootto· ·oh dll i mild il)cbt~~ 1991, ~~~ Inohinl eIpendiIo : It rI ootod tit the 900401 ood ~~t~ ~pl~~~ 411 bo tniovoa d I~t~ ilJr~V 1991, IS~ Ii ldditltoo loIiotor Jll he ca~ctld lo the f~r~t 6rtsr of 1993, 161 Cn· IooIo : It rl noted tit thn Pk 1III libll to be of IiInifieenco to the Croop ·I the ettitude to peoheIIoI end t~ r91tcd ar~ in the lutonoen ColIlliIeion ohIoh could 1~ to 1 Diteetite, held on PloPoIed GetIIl legiIletioD, to rh r~~il~r~ reIPonIlbIe for the coll~ctiop of ~bl~ uIed on fdrtl lich tLI 111l1 It II ~nd Iht d~oyt~ i lttitudeI to IoluIIoI P4d he L hf ieIue to he lodlt~ b the Crop~ It, 14al ~~lt : It II noted tit thrtl II inorelIint ptooeoto i the 0911 It ujor cqri~~ to IIIo P (AIDlltP clrelt boIod I the 'I~llel~t~ciall'l the secteterJ ·I ~~ha 0 tonott heolr or the polllbll li~liif~l Or tYI to 1,1I~ ~lltlill~ II, ltodnote ~o~n~W Tdhcco : L1 hitc~rd tepotted tit ptodoote inearpntkt P1 Ylceo were dtqoip teItI, the al~tl of Uch n4a be tlprtcd It the oat #tiPI1 ro, ~ttct topotted tit teete of ~Q Itoirtl rl 1· 11 l99lepd ~01 eIeo n)ortJ tit 14 111 hoIoI epeIuetnd, 191 TheII(ndete Budb~ id heeo clr)Ieted nod 11l ltitohetd ·41 ettlnle It thiI to he oitcuIIted tbl~t the Croon, the Ybr~ n4d he tteeted u I hiIh ~c~itl ac·~t end tYI aB1 he reflected i the 1 in 4ieb it re dlIttihuted end IubIelIotl]r held, 501 Loople reohnoloIl ~ leoIooeltiIltoduoto I It rl tlprtla tit the Irojeet to ch~rwt~rill the ale~lit~lrod·tl of oiIerettee oontolninI rt~rL1~ Iohjeoted to r~~ ~l~a~lt Ii dr for ooopIotioo lOOultI Of teItI to h~ here It I1I1 fll for ooocern, fl, ~~ of leooItitutod 9101 : It rl yteed thet the ptojeot to m9rtl the henofitI of fnoorpotetlnI Its ~ the Ln of tlonltitPtll aluet Ibdl he e~ll~·l u rolu poIeible, Lld~ thIt thte IhoI tLr the uee of Ihect iI briie~9, ~n Ihold ho ptepered for oeetinI 11I roluiraIPt for Iller it broil, (ndll on the q~r~lcl of Iron L P~II*P who hive Iheet ude for thI b 1iheti9 ~t~· ClibPDF - v~~fastio.soni ,t~ 52, M lupplia : it as Pored tLr retries of the liltell m~~billty of tobacco in 1991-1992 1l. suggested that shortages could dnelop, Llyeiolly in Burley~ it as agreed thet all Ewpanies should cP~tac that orders ate pieced a eerlp se possible in 1991, sufficient to cover the tot~ nrluirnant for 1992 if thara pre aop ~bobf~UI, ction should be put in bend iPPedl*ely to expePd supplies within the Group (elg, in Brasil and Nicaragua) 53, Crsde lletloueliution : It as noted ehet the Imtting of the lest Crede retiooeusetion sobae was due for mriw in 14J 1991, currat bldlpl : PavlcdPg the results tot the Group's robseco busineelee up to the end of the third p~uttar,.~, Broughron drall attention to the increase in vohl which, for the full gaar, as speered to be 1C billion hisher tha in 1989, despite a Issoed 3 billion reduction in tnde loading in the ftSAl trading profits were also oxpaed to show sp incraaae conparad with 1989 despite an adverse novement in CICbdngC rOtLI~ i II, Ir ull nora tb~t UKo, un hoping for a significant increaae on 1989 despite adverse effects due to exchange rate novenents ad aa eeonoa~ic do~ntlan in africa, Spain had parfoned batter than expected, hrh~ share and profits had increaaed in india in local currency but this bed been offset by the devslunriop of the BPpcc, 56, Brown i Yilliaaon r~e also hoping to neat their profits budget btl~vPl~ae could be slightlybelov budget, l~e results were adversely effected by the ~ptctcd inuntiop of Philip Lrris to laereesa trade loading as the presaure grown for chair tobacco Linv#l to conpenaare for tduccd growth in their food bPsincsaes, It, BafQ profitsbefore Ee~ were DH5 dlioo below budger at the end of the 3rd PIurterbut are uptcted towt the budget for the full gear, 58~ Soou e~ tar expecting to achieve a ~tet share of 811 for tha full yest but there would be e Pegllri~e ouiaPce on profits due to C price controls on rigacttol md ths edverae affect of an ovmaluod Bteito on Leaf axport~, The current trend was for the Crtsefro to 1~~11Pe uhich would be toed for erporta but vould Le a mera effect on the translation of profits, 59, Irpa~'~plrle~ Ilereksd incrssrd to IOX ad DparedinPrrofits VPre expected to be CanSlr million bertLt than bodpt, however, iodt~t~ voL1DLI tnre down a,lX on the gear and this trend was axpactsd to cootinual 60, Wenasaat DnelopePt :Wt, BrougMon reported thr the project to raoiew the Itr~Pgcanb for ~oeaPan~ training and dmlopont bad bap I)bUp end would be ceordintcd by Ilr, Hcseeth, Ihe eaiP pert Pt the ~n~ would be ctrtied out by LIR ICCWAIII one frg Tobacco and one fr(w FIaanEIa1 servicea but It as also intended to nae consultants to collect data on current practices both within BILT and in other eap~oicl, 61, it as noted rhet It as likly Llet the coneulreot to be used aould he Bill lofdl~a~, who had vatl~rd for Bot~aos and raa Pow a partner in L~aic, a ~811 independent conaulting firm speetalislng in this field, 1l11 Clit; PDF -!::!!::!!::!.f3 StlC.i: 0111 ,gl 62~ Italagtaa rLrtha patwPrcoPdsd fo thepto]eetllbouldb~~bi~h ptatlJ, pnqar in 30-40 lBe group end should pr,tenbll not be I pctlonnd ~pacfalilt, I Iprcific ncain~doP Is Pde uhicb vlll C followed-up by ~I tlroughtoo~ 631 the (bairnep aLd that the t~B ehould he prarided with progreee nports v the project aetreloped, 64, ~kthtln~ Dirccto# 8adpu : Zbe ~inlP eLolred the olpben of tba teen for their 11~88~1fiOPI for illUeI YbiCh eight be consideted by I fu~urcrmhtiog Itaeton' I~inn~ Ihe erreogeepts tar this lo~pinor will now be prograseed ftm the C~Pac, 65, D~ru of FotPt6Lftinp : HeetiPge in 1991 will tL place on YrdPesdey, 27th IcbrPsrl; Iburlda, 30th ~Ly; ~id~, ~rb Spptonber; and LodO, 2nd Dccmbar, sslPJa 12sb DrcePbet 1390 Clit; PDF -!::!!::!!::!.f3 StlC.i: 0111