O r9th DLeaPbet 1986 I, Crsv~Dtd, Esq., Inasco linited, P~OI Box 8800, nOntIlal, P.pl, C~nsd~~ 830 3tl i canfiri tht subatanfr of out poa!tion on fundeneatal research which we discussed with ~ou on lrout racent vl~it~ I have rr9iered the position with ct collasgueal Since there is such a wide dtscrcpdne~ hetvten lour approach and that of the test of the Group, I thought that I should writs to explain v~~ it is that I cannot suppott lour co11tPtlOn that we should g:ve a blgher prlotity to projcctt ainad at davslopf~~ I 'safe' cigarette (Is perceived bf those who claiP our CUfr~Pe product is 'unsefc') by either clfPin~t!n~, or at lessr rsducing to ecceptobls levels, all coaponeats cla!Ped by out critics to he urei~ogcale. The 61i objective Is and should he to PI~~ the whole subjecr of ~m~kiog eccsorsble to the iuthorities and to the public at large since this is the teal Ehsllange faclnk the Iodumtrll hot Pnly do I balleve e~~t thla it the right objective but I alsa believe that it is sc ~chia~sbl~ onel ';be Group already hi severst approsehcs in place to respond C~ to rhla ob)ic:lve, rbcse Include cxptrimrPril Icliaet, earrltd O out both Inrenrll! and at IcidiuB unlv~rileiaslnedicP1 b deparrPentsi and slso studies of the c~idinec iron cp!dan~oiopfcsl O wort~ BATCo document for Legal Services : Health Canada 20 IMay 1999 -2· ZltR Deeeabsr 198L I, Ct~rford, Eigl, ItIsfo tlifted, ~b~ti sre iuJ ii~uai ther epprrlbute to rbe oIlnll ~eeaptibilitf of Ip0llag, ~ndlrl~~nd~blfl the C1P"flDP fl)uL in rslItion to eeosral di~a~isi is iepotrbat end vl bn~ to tit' note of 111 rilsti~t public~tioai then ten Ibtor Ilght no thin ieoue, y, eponlor renlernh vort PP IICblPIII Of 611111(1 IPC1Ud1OI psfchPlogic"l or generle Prldi~politlo~~ I' e'II eo pr0binl tbL Illple roPc!a~ioal pf'Lr ii prPblbly rlrhLr poor dpldlPioiojl, Yherroer Itrong $uidsoci Il Offorea by Iapurnble leientinrl on prodPel p~d~flc~rlo~, vh~ch t~el bcliePa ucPli L~ ddl~rlbl'l Is till rIIPoPdl fbC GtOUP hlg oeP.ere! ~C1~IICh projLCIII I11111 in the epebPsrion eree, ther IhoulC rplble ue to eIter our prodPet if good rcIsoP cr~~tll tbIo ~ncPap~llll colpP~cnr~ lucb II Il~ralslnoc l'd i"' 'Ldl~lll bY: Ilflldl IPI:h;t:~::~~p:~~~ 10 eobpcco lesl, for ioItIPci ion tIr, ~nothar inportipt Lo~u efllctiog tceeprebillrl it pL"i" laotin~~ Our current l0ltiltivtl Ire to cbellePBe the rhcie IreI of 'loll riot; LpidlPIP1Dfl' There Ire r~pur~hl~ externeI apa'21 ubo believe tbee tbis is ~ hilh!l Lprlcile leisPca end ve L'~ f!ndinl Icm~ for thee to (Iptlli r~~lt ca~ceral~ In pnrslle!, pa haae rsseereh progroa#~ plelurlnl the colpPlltiaa of "bimr (IotC under clrafullf eonrroll~d eoldirioPII other pt our r~~l~rch Eiui Ire ~~c~~ng praduct~ rLt redoes the burden of olLn11 ~potl O~ its plrriculer colpoa~Pt~ in tba Intiroantntl ~~ port of lP iPflBtllad epprneeb to the leclpt~billtl Of 110t:P81 V( Ire I1Io IfUdllP8 ths so-eIlled 'bepelfti of Ilotin$~l YI "" 'Upportina rl~c~rcb an the ph~n,calogie~l eilcrrs ol nfcotfni (tbe ~sJ l11Pane of our produet ~hich, fPr~unatall, ble foe rd~erl~ri~~)~ The bcnellclel I~IOPI'I1PPO of ao~i~l not Pall pfth IpiCII1C diiiIees eueh as PIr't;fason's dIoeelel but vlth rhe s~dl~3rc~d disorders of ssoilo delepx.iI or Ilthabr'i disease ~ta being ionirored, :be BAt tin ii thps aider chip that epconpasssd fb the luleo ~pprolch. ~~rthenorc, I bllkrt there are other ipportent ab]rctioae iaherlne in lour ~ppro~cb~ rltltly, f"U' Objlc~i~l II prob~bll loltaip~ble . no Ist''r ubsf nea be dane in chea!Cel rent (LPd i bllia~l Lbit to bl ~lr~ O Ilniead) rbets till co~tlPu~ to be ,rroW rnell Iletions ~hlr ~la~ B to dLnigrete tbL prodaet lad Ibsf ltr 11k,17 to Continue to no~s O tbs gosl posts evsl froa vh~te~at iell!ol I~t8c~ ve uarl 1ble to ~chi~~~· I~ h leeoad prlcrlcel cb)tc~~on il ~h'l ip atteeptinl to da~~lop U1 I 'ssis' Cigarette IOU I1C, by ipplleetiaP 1" denser 0f beiag W fptsr3rstsd I~'CC"~CIPg thlt rL currtar prdduct i' IO"'L~~I L"d this is poe ~ poeir:ian rhet I tbio~ ul should rltP~ BATCo document for Legal Services : Health Canada 20 May 1999 ·3· II CrIwiotd, fiq, 29th Diciib~r 1916 Il~lco Il~it~d, I~ iou flP 1III thlll ii DO dilllrllll~t OD Ihl IIPQI~LDEI thir we 111 plIci oa Ihb ooid for fUOdlllD~11 tllllrCh IlldiPI to raiulti which will hi~i I prIcticil flpIet oa tbs leccptahllltl oi our product. iihlrI vs plrt e~i~in~ froi thi IlIIco IpproIcb is thIt wI do Dot bslicle thIt there 11 I iufliciiorll bfgh chInci of I Iueceltful outcora to jpItifl cOPPlttlPS tbs YIIJ 11Fl( IELie Of r~~ourcii rhIr would be ~sc~ii~rl to purIui thi ditiet but IrtulSlf crir-iiPpllitie Ipproich which lour pcoplI Iri prPpof:ny~ This is vhy I cIooor IPPPOrt thil liD~ Of Ill(lfCt~ fovOoc:, tRii doai out liIn thIr thI debLF1 IE to the belt Ipproleh ro this IlpOttlP1 question ii ElOled lid 1 hope thll thiri will bo cen~inuint diifuIIiPa bPth Iioot thi Ctoupll Iscior r~~ca::~ pdridnnel lnd IIDPt OUrllllll II to thl 1o1t lffOEfilC wIJ to IOP( tOYLIdl OUI c01000 objieti~il f ioo~ iorvird to diocu~~in~ thil fureher vitb iou neit eine VI ICC;~ Yourl IIPCLrcly, P, SBBtEr BATCo document for legal Services : Health Canada 20 Yay 1999 IrPell~q: Ibl I,B.5.I rblul~t'd ~h~ Ilnchcd ~ote oo:hl Cln~lil~ pl~a· 1~~ uL d* n~e Lqs b~ ual dE~ bat iS I ~p~t ~II lh( C~L!:IIP b(l I~ ~:Pld ~L ~~ ~CUM follevi31 hi~ ~iJ!r to Clnldl· ~lt~( A~ I~ Beird ~Lalge~ 29rh Octobrt 1916 6 BATCo document for legal Services : Health Canada 26 May 1999 _ __ _ Canadian Profec: imperial Tobacco CaPa~a believe that the Group Jhoul~ have a Strategic Objective that can be expressed as: 'Zo work rovatds the dis:olery of a 'oatc' cig~te::~,'SlfCI in the ege~ of those who say chat the current cigarette is 'U11Saft'' They believe that this goal is essential if decline of cigdrerte usage is to he halted (since all problems facing the cigarette industry can be ultimately traced hack to health pereeptlons, in ill's ~tru). I~L have given limited Irposure to this concept vi:hin t~e CrPup~ bpar: from the Imlrca B~P:d and LITC~ eha!rnar, discussions have been la:gely confined to senior technical staff including the 1986 aesearch toniercnce· After outlining the oblec:~~c,;;~ hd~L prPeeidcd to consider a particular apprbach to the issue based on rcduc:ioa or removal of components claimed to be padesl:ablL~ 33th the original concept and the lT1 approa:0 to it have generated lively diseuasi6n~ whi!st the desire to eliminate or in terms of the concept, even reduce the pressure itam external bodies against rje cigarette is nnanisous, there is considerable doubt that this could be ac~lePed hi any ;echo!cal approach in the l!gh: o current bovltdse~ There will always exist factions that oppose 'smok:ng' and these fac:! ons will constantly set neP goalposts, pethppr the oPst telling pPi~t Is that it is doubtful whether a?y authority would underwrite t~dali a set of specifications for t~e product, vh!cb, if ~chlc~ed, vould he ackpoulidged as 'rafe'· 50 fat, I~~ have charLP to pur'ue the Ipproach of :acn~l~ging components of smoke which reputable external agencies, e·B· Surgeon General, have listed as undesirable with I view to reducing these below accepted rhrobk~ld ie~cli by proincr ~odifiea~i~c. Thcl uoo!d attempt to demonstrate improvements in biological aJsags accPmpanglPg these changes. This apptDacb has been ctiticiscd on several grounds, The list of chemicals in smoke which 'in isolation' are biologically active, e.g~ carcinogenic or mutagenic is long and grows coatinuouslg· There is na agreePear on threshold lePels for su;h materials tin the ii mit Sir Richard Doll claims one molecule is har~rdous!)~ Thus, vhilst the Surgeon General et al have highlighted certain chcnfc~lr, it must be seriouslg questioned that even if all were temo~id, whether the Surgeon General would then say the product is 'sa,'e' or even 'saftr'~ brpume3ts over the use of bioassays as predictors of cigarette siftLI rc~aln 3lrJ legion~ B BATCo document for Legal Senrices : Health Canada 20 May 1999 I ·2· The current Group Pcsearch ProB'g"Pe rcIlccti the Ficv tSar ve be'.ieoe ve cin Ip~ictpare the pd'es that leg~la~or~ ~urhorl:ies v!ll 111 r~e f~d?brrg rb late to its pl~ducf~, oc a railing I-~LPT ~!~cscale~ Io rent of :cda::ion of speeifie sm~te COpPPPC319, Ye ba~e a meeting of the Scieot!fi; Beeearch Group under Or~ ThornroP (~t which the best crrerna! cpaaur:an:5 will attend) in early 1987, the sole function Df which is to set priorities for the nert I year Period taking all factors Into Iccouat· in alternaei~e approach to product modificatioP that we foresee being pursued by hurhorir~Ps 16 reduced tarlaleo:ine ra:io· This is assuming iaerearicg importance in pur Group aeseateh Program~oe~ In teras of biological testing, vhilst vi Ii~e re:ainareC in-house animal 00rk, we con:fnuil!g monitor dc~clop~ents crtetsailg and are quite pte)ared to in~rease erreroal iinaee!Pg if ang initiatives look inpPrraat~ Fe ate also inercaslagll sponsoring research into disease mechanisms by leading medical researchers. fhc:e is therefore a degree oi similaritg between the current 3hT approach and that suggested by ITI~ The ditierecce probably lies in the pcrclplioa by Irt that technical fniril:iocs that caP be identified now might oPe day result iu achov!cdgc~cnt that the ?ypdUCt is 1Blfel or ePCP safer' and that a significant RLD resource should be dePote0 to this godl~ IhT brline that, guided by Reg~lararl ~a~bori:!es, ve .ba!l modifg pur produce based on a rolling 5·year ~iev, and ve support basic research to ~pov more about our product from the biologics! standpailt· ltL PUCst!on uherher rhie cffo:t is rrufiiciently positive tnd'h~thrt suific:tnt rc~oorccs are being devoted to this acrl~:tg~ d.I. BeardlDET 291h Octobct 1986 BATCo document far Legal Services : Health Canada 20 May 1999 ·_· ·· __ *3TY Fit35sC;I~Y i TobacEP St:~reSf Re~iev Tea : -·-····-· ;Se seventh ~et::lg dj the team se: up to reviev the strategies for I~e 5rPuj15 :sjaceo v:it:des ~as held an 2?nd October t9eb, ?reses;: 9:~ e~ S$e~ty, ~:· 9lPl ear:ava?, ~· E.h.b~ arue:;, lir, P.!. Pfcker:s, ~:· D,i· Siobom, Or, Il. Salter (5cc:etar?)· Ilr~ b~l~ Eea:d vas in attendance tar i:e~s I·a. ~:, C~I~'3esis oas unable to a::e~t~ Se ~au::5 of tie ne::cg held on 26rb April ue:e agreed. 2· t; ar noted that further investigation pi the op~ortuniSr to buy tobre:1 iron the US s:oc~p!!r had led to the coaelusion that this vou:~ nor sjoo r;a~iii:a:: advantages to BA~ and tie Ppper:un;;P bad not beo.l Furruei~ i/I· 'r, Eea:d presented a paper on the funding of abD. it vas noted Ihat:ie mJ13rity Pi the 913 riior; (cPs::ng around fjC~) vu coa3any :3. vhlc~ the vP:k uas done. There vas a free :nre:c~wge oi tte ists~-sr~:on arls;~g frx this uork through a coPmon database and it iiaC been decided that it ~o~d be inefficient to LTY to mBi(e ciB:~1J be:?een eon;ades for this i:ioreutioa· aavever, t'nere vas about ~n Pt YO:k in SOllthaPPPbn and f0l55: of vo:ic in Spc:a Cra which uas ;lassiiied as fundamental research of 1 ripe vi,ici vas essential but vb~ch vas nor carried our in the other R~O ~ de)zr~-ePrs. uy i: as aj:eed that the cost of the uortr in So~a irut s'nPu!C he carrie". in that company bur that the f~ pi expenditure in Soahamptlcshou!C Se 1~ cor~re~ b) the other coqlnles~ It uas agreed that a reasoP13.e ·~ ~· 1· a:lcserion vouY be EO.k each to be paid by 9dIb· and BATI'S, fO~i each Icc~ BIW!C and Isasco bur oalp f0.?1 from ht!l (takinp into account the relatively lov volumes or' cigarette sales in i~mt:l)· 3 i\ I: gas agreed that a~C~. should negotiate paymeors an tiis basis for 15]5;· i: cas also agreed that BhT~o, shol;ld check back vith the Straeegy ?ea7 in f~lUle gears, to agree both the level of er7cdlrute on [UPjlleltai \ WOll and also the I!lootlon of the charges. I, Ir uas Itree0 that the current level of RhC LfiDr: vas generally adequate to leer the requirements of the tobacco acrivity~ Hovever, i: uas suggesrld that Sou:a C:ut dgb~ give further i cans;de:a:;on rs :te yrribi!i:y of commission!lg uor~ t:h Si: ort"l applica:lon Pi bioreelcllogy to developing specific eharac:~:isti:s in tpba;;o· Chj BATC6 document for Legal Services : Health Canada 20 May 1999 -1- :o~i ~a: ilaIeo ~d goc~;!oacC vhcr~c: ~tl Iff,:: Jbd~ be ~~3:1C~ to a~:~~?t!Y to ievc!o? I.l~!i c!pl!l:;e 1~ :~ i~M:iglring 3; EO=IISiln!ng ~:s;al ror~ to invar;igate !Ic:ors i:!!uencia$:~L sfsfe:::ti!!:Y 3- i~Ci~id~8ls to cmc~:~ In ISJP6P Of their Irl~CI:, :her taC s~gper:?d t;lnt c19(:1:lt~ Yrre tp?e of vdrk. ~:. 3:?c!l s~iC t~t~ t~is ~ubjcc: hnd been dc~l;cl It 1L:B:~ and :t hrd beet iedtcC ::a: i; vaJ loc Utc!~:P be I :eva:dfnl ~~c,t ~~v!J::al:io3~ !r''S d'SO oareC r~lr ii ~ cnc3c:itP: Cid Juc;etf in le~fcv:3a a bre~i-r~r3uln ob ~lsJ!!ying flc:o1s associated vith :~e ,1, :.S UDCC:I VOU:d be f:I~!J ~~li:~jll to I~lrycnl~ ;~~ C~~i~: Is;(Ld "r. Ir~ell tc ~rdvlde ~b::ef 3ote on this Ie ~lr he EDU!d Illpb~ t~ IPSCO· I: ~s Ig:ted t?lt L~ Ir?r!l volld also ero~ide Ir. 6i:rl~~ d:~ a btc~2t~ ai the total crouo Ixlt~ian pn:3baeco RLL, for los~lblt ule r!:hf; t~l ~~1 Report and bcco~tl~ L i. It u~ a~d th~: ~ Isc·, the co~T~ ckst bnd dcvnlo?rd ~aor use in f:~nc:11 diffic?leica m~ codd fail. 1IlCo. bnd a e6nri3dPg interest in the possijle use of their filclr :Ic~olol~ but bl oere not prepared to lell or UEelcl thel! Lle~~1~61 ~d bd d~lld irl:ald :p m~r;lke I joint dcvc!oplcnr~ leeb· ~d dlF!1Cd ~II i: vuuld be pl~CllblC to vIit ~til ~I conplny the ttc~~logy and the relevant people could bcco~a *1:rl1~~ F~!!E ;: ~15 zg:eeC t~l: i: vould be i3a3Proo::acl to ~~rl::~ta I i! vsr suggested rLt ~ Ilceroatlve e3u:le oi aelioo could be to rldtl ~ ~at:!gbt· I I possi~!l:l, In coojunctioa dth 1hTI]5. ti it vls ~g:eed th,t ~. IrPe!l should ask t~ Lnt tb "'1Pra ~s ~P Ir' r"l 1'3 I· ft ~~ PCced that the ~nEinetrlng Itadf to design the protornl plant ior u~ dur fo: colelr~ioa bp Ith lo~c~ll· lreeent i~iur:o~ vere t~lt, because i sdd!t'orui slfecy fearutls :tir h~d needed t3 be i~ttoiuctd, t'e eor~ vcu:d Se tl.?n Ta:~r t~n Ihe M·jp origf~!l! cl:iyEIC. Hoveter, althougb there uoPld also h an ~diriPnl cost on the full sire the increase uould not k pro t~~l· g. ~, 3:~~~! reported that ac:ian Ms in hand to cationa!iJe the OIIT EOblCCO (ITl~ion flc:li~ies in the g and GernnnY but polribili:iel for E1T:!i7B out E3t:TZCt uolk fD1 other Crolp eoqldtl var Pro being invcs:iba:~d~ !0. ~:· tsrravev ~30I;Ld Ihl: I f:rel ~leliDI had Seen hclC oi bt ieen to Irllss t~e 1011:::11 ~t !UIDllln ~~UIIC:UI!DI RLI!J~II!II~IOG. ~L O nni(e ec~o~~ ~~~ t3 *e[ aJa'n O~ !Sr Dccllbcr m~ ual d""B t" rlce=lldl~oa Lldl-il~ll~p O BATCo document for Legal Seniees : Health Canada 20 ray 1999 -3· I!. Ihe Cha!nar presented a ppc: sura:is!3g the current position in the I'SA on 9d::!ay. I~:houZ~ the p:6iuct now has the Xc::a:·?lus filter and a ratin~Eg, progress in the u:ker had been :cla:f~e!g modest. fovever, i: was Le!::L: there was considerable goodlU in the Satclap name vhici uould he used as the basis for a Ba:cray I~an:s product to compete with ~::~Pf3 li~:$· n:S PfOdutc would have i conventional filte:· :2~ ~~ Btue!l said that the 3ar:lay lights product could also be of interest in Europe as a potential competitor to ~arlbdro lights. Progress on the existing 3a:c!ay product had been limited in Europe. The product was still j,,,r; on the old bc:ron filter as research in Soitre:!a3 had shown ti.al, now that the harshness had been eliminated from the product, customers preferred it to products incorporating the Actroc-Tlus filter which had bees considered too mild and too hirl to draw. Desli:e the limited progress, Barclay was still holding its own and vorit was c::!lcilp:o obtain agreement to reduced ratings on the packs. in ~ers of sariter share, the major disappointment was in Cersany and ways La overcome this would be considered further. !3~ The Ca!3an was disappointed that there had not been mo:e progress in introducing dc::sa-?lus technology into Europe and he dll be discussing this with Bror, ~ k'i!l'as6P· i~~ 9t~ Sruel! drew attention to problems being encountered in the;u~ddle East where a video attacking Barclay had been circulated to Cover~mect Yifiisrtrs. ~:iocgh there uas no firm evidence, it was suspected that the video ~a~ have been originated and distributed by people acting on behalf of Phil:3 Ilorrfs. It was agreed ;;a;:- ca, t~s. Brue:: should ask Mr. Carduel! to obtain evidence [eithlt directly or through investigators) as to the source and / distribution of the ~i~dco. l"i/ 1C (b) ~~ Srue!l would take legal advice and would then recommend what action if any should be taken against philip Morris. (c) The ehai3ln vill see Mr. P:~tchatd when he is in london on 21th Octlber and will agree what action should be taken to restore Sarclap's position in the market (c~g~ by launching products based on Act-an-Plus). !5~ it was ~Llted;~O~ the distribution of the video had occurred at a time when there hat been good industry co-operation in negotiations with Covernents and it uas esselrial:hat strong action should be taken to make it clear to ?Sil:e ~or;is that action oi this type could be W p~ralidlp vt~ inag:~l ao~ sly u ~~ !nius-v Lu: ~ip ~~ Ililip O Morris :~cPsel~cs~ I··~ BATCo document for Legal Services : Health Canada 20 May 11999 -4- 16, Yr. 2:ckctts :·?or:ed a: er;!ca:i3fi oi S'adnd:navisk by Chase ~dnta::an had scgges:li t~a: if 3.i~::nCcst::es wished to ac:u::e the outstanding sta:ebolCi~3s~ a reas~~ile price would be 2370~, representing a !IE Pi ll~a. Iris ;a)a:?t with an asset value of ar3unC 2?OC:~ it rat agreed that further ?srk shou:d Se tarried out to establish poss:3:e vavs in vi~i~ rhr:lbrc·s ksinesr d: Sbndinavisi dg4: be ac:i:!d, possibly tr a·sc::f:q the ~Jie business and tneo divesting the no:,-:o5acco ac:lvit!es· ;iys f or rai.ucfla any BpodYill write-off should 1153 be onsii~:et~ y:. I:~jop sas ake~ e1 gr!?a:a a la?e: to::h~ Cha!rnan i~u:!i~ilg poss'.jle app:;aches that pig'n; be tau~· ii. fhe Oa!can eEen:ei a aa:e: su3r:si~g the arrl~t position regarding exports from S:s~ 6 i;ill!a'son to the lalanese nrket. This shoved that sales were a~J~ runr.ing II 1JSI:CP::· ~t~ Bruei! also reaorreC encouraging results for an ~e:fea: :ne Ps brand, ch:ci was ruln:"g well ahead of judger. Rl!ovi~g the a~eouc:eae:l o[ f~::le: mves to reduce the tariffs i3pPsed on i-.?3r:s, there could be an opportunity for a major increase in the nrket shares fP: foreign ~:a3~5, and Srowm h Wi!liamsoo bd been Iskd to clfs:~er posr!ble ways lot Pouncing a ~jor attack on the market, and t: consider r;:~ ~~ tong bu the initial expenditure night be ea31cal!sei rather rtian:horged to rcvetile· Aldouph i: vaa ac,r?rel that the isi;iar oppottlal~) is Ilkelg to be for Ja:ker!ng, it vis suggested :iut :~e plssib!li~ of manufacturing in lala~ should i:so be c3asitcrLC as a longer ter: ~ossihi!!r~~ !8. ~1· araell t?7arted that it haC be?l decided not to proceed with the icves;men: which t~al previourlg been proposed in k'es: biriu. There had beer a favourable reaction f:op Turkey where it appeared that the Cove:3Pec: were i0di(i:p 10: 8 proposal which would allow Tckel to have a 10: stare in the business but ~hc:e foreign st~rehpldzs would be allowed to have cbnt:o:· Current indications were that the initial inves:Pent ree~~ired fr~J 9xto. would be Pi tL order of f!3m vlth a further fjm re;u!red :o: the acluislrion oi a shell factory. BX"Cs. would be preparing a paper for ;he ~i~~ within a week, asking for guidance as to :he acce:tabiiliy oi the approlei, ubich it Ms proposed ~s taie 13 the negoriatioss· it was Feted that the quar!c3 ct tobacco being obtained fra China bad isl'"ved eoos!?erab!y and Ipre las be:og bougtr~ Negetiar!ons vere proceeding on the pr"je:: for South China. C~ BI;:~ hd not accePrei c~L Pie';~l~ ;her~ Ms a need ior better ageocy re:rcseacalior, in itdlv. i: MS agreed ci;ar this question IhpuiC Sc O reclssl!e:l! y:r~h or, ~:i;:le~ i!. Ssring !98i, at which :i~ Llere should be a critical look at the csnlarisccs vith the performance of Philip lor:!s and R'3 in Italy, It vas noted :aar B~TCs~ were continuing to evaluate Greece as a potential new 3arkel· Pa::~~ had also been considered bur was not thaught to have good prospects ist isves:~ene~ i~·· BATCo document for legal Services : Health Canada 20 May 1999 -5- 19. It was ag:etc rta: i: voi~ be of aCn::ap:o 1E i:: !a:ner Eo~c:rits to iat:ob;e;:cCai"3~:l f01 V~lim sotiees on ci;a:er:e packs. It was also ag:eeC :ia: d~sc:eet e~lu:iigclen: ia r~:s di:c::ion might k given to t:.e Ipe~c::s of Ghl"~ Bo;lGuras, S!e::a Icwe and Ogand~~ 20~ ~-. Srutl::r?o::ed:Sa: Ufiie?l:t.ts vcre bei7g c~i?e:il:red h rtrrlng us a coeie:·c:e os elide~cl~ as a leans for Pt3EO:i:5 tne saoklsg OT' s:~i;;; 3e?:i;3s ;!anned and the C31Peldiu3· 3e:e ve:~ a rmnbe: Turative s?scsors (~he ~rau3hofe: !os:!iu:') Ye:? tot e::h~siasci; aSbur tnei: ab:!!:~ to Joua: aco;tor a~e· ilr~ ~onrc; is E?P:!ouing his d!scussiots Pi:~ 7:a~3noier bur is also a~sfderi~ a: a!terna;!ve seP390f!3g bO~! f:Oa daoata, t· was agreed ·ja: ~t!s venture should continue to be given a high p~iorit~~ T3e:t gas .,ting evidtcce of 1 g:lun0sv~l of opilien against excess!~~ anti-aaking p:essu:es sPG i: vou!C be helpful for the Group re rake ~OPa::age of rais cep~~ 21. I: was agreed t~ai S. Bruell voc;d I::aP8! a *e~iPg v::h tt~e Chai~r. $ l~d nr, a;ie: :D d!sass other FLYS i: VtiE~ bOL~ !~ II~ :hC inlD~J ~· t ' i~ as 1 iolr nigi: eaite a ppre por::ive srance Irli:sr :Se dari-sPoiiag lojbY· us to consider ~~e stance vh:ch B.b~T 22. It was po:e~ that the rean set Industries should ;oie on tax hanooisat!oP i; lu:0pe vas due to meer again oa 2!adiZ!rd October. 'Ihe Dbjec: of this u~?as to formulate a fpm of prlPosa: t~ar ~tauld be arctpdie bor~ :o the iJdarry a~d tl r~l aon~polics ~ uhiFh uould uf:5: in 3e h;r4e gcne::a;ion of cu:ren: oenopolp a:ierr~ ?!. ~r. Bnci: 1:ev ar:c·:lon tb the Yd~ Els: (~·5-.i of at, aercl,e uhlch they had bee: IdviieC cds aecessar! to e!l-bs yt·:!al jrPm elis:lng research files vnit" rlah; be de::imenril re ~o Crlul i: it vaS re~uirel ~ V,d to be pro~ucc~ in an ~etican eosr~· II v~s agreed that ·~r~ Bruall would arrange for ~~ aalrer to see the C~af~an on this~ Is~ ~pl" rl~P·v RSIDJ~ ~D 23rd BcrobLt !~Ei BATCo document for Legal Services : Health Canada 20 May 1999