.3?v '": ~3 .:.. alaSUCZTU? I- i ,... loblccl St:atrg~ Bll!cv Tab j _._1 ;he seventh ve~:3g of :5 teen 9a: Up to review the strategies for the 6rocl'~:obacfP activities var held on ZZnd October t986. ?:escs~: ;YT, P. ShCP.t~V, ~:~ 9,", Qrrava?, E~1\~L arue:;, Pl;ket;s, Hr~ D,1. S)obom, Dr· 9. Sil;e: (Stc:cta~)· ~r, ~.1, fiea:d was in attendance for f:CIPS l'a~ g:. C~L, ilennis was unable to attend, 1~ ~t~e licures If the ~e::ng held on 14th Alril were agr~ed· i, It was noted that further invcrtigarlPo of the opportunity re buy toble:o iror the US s:Dc~p!!t t~d led to the conclusion that tSfs vPurd. not show sigrificant advantages to BA: nod the opportunity had not been pursued, .1]· ~r~ Fee:d pFosonte~ a paper on the funding of a60· it was noted t~a::ie pjlfir) of the 50 effort (colr:ag around coa:any in which the w~k was done, There was a free interchange of the information arising I:s this verk through a eommon database lad it had beer. decided 'U~1: it would be i3effieient to try to make charles between con;anie~ for this ilio~ntrioa. Bowever, there va~ about P~P Of work in SOUlh~ptOD and E0155r of wor'K in Sou:a Crut which vas classified as funda~ncata! research of I type which var esse~t!ll bur which vas not carried out in the other Ri1 de~lr:=ents. i; was agreed thaE the cost of the worte in Sou:a Crul should he carried in that cP~pang bur that the ~m of Lrpen~:urr L Southamptoa should be ec~arrd by the ether co~ponie,. Ir was agreed that I relso~ljL 1`' 1:loeet:on uo~ be f3,5m each to be paid by IhIeo and Bni~S, TO~i eacfi ,:C i:o~ Bn~lC and r~a~co but only fO ,?p frop hsatil (taking iato account the relatively 10V volumes or cigarette ~ it or agreed that Eto~ should aegotiete payments on this basis for 19E·i. It var also agreed that BA~Co, should check back with the strategy fCa~ in future years, to agree both the level of expenditure on fundamental \ oor~ end also rho allocation of the charges, I. It vas agreed that the current level of R5D effort va genera!!v sdegarl to 3eet the requite~en~s of the roba~co activity, BoFner, i: uas suggested that kn CNt might give [ur;her r cans;de:a:iw to :hC POSlfbf!iIY DI co~issioailg work with 97: on the application of bio~eelnology to developingcoba;;o· specific characre:!sr::s in IrJ Clit; PDF -!::!!::!!::!.f3 StlC.i: 0111 -2- I~ II lo~rC t~l: Iulco hd ~lsrioncC uhcrhc: noro Oil,:: ~bodC k 13011C~ to Lt;l:7~17B tO dcvs!~~.lc!i dl~:l:tl Id :p Ilra:i(lt~B or EO=ilSi3PiDP OUl~idt ~r~ to invll;lIltc !~:D'" !:!l~~ci~p i~ IcJca;:ibi!!3 ~ i~dt~idu~ll rJ c~ncl~ rO 1~300~ Of L~I: 1Ia~~ll :~sl ~1C s~glef:d ~1: c~~r~r~ rrl ·(Ltli!DI II~ mc~s~· PU bL I~e lubjec: bl ~11 1ILJd It L:l~ Id i' hi bits tccit~d ~~: i; ~s Ir LlLL! o h(~r~rdinl ~~I of :CV~s::I1::OP' ~,~ ~lo noLcC r~~r if ~ ~~c:ito: dfG luc:aC in Io;:icv:oD I brlli-r~roughIpl:~enl~ on 31~1!!!inl flc:or; ·lacil:cd d:~ ~I ~~cal:!~1!:tP to unfe:, rYI ido~:!a ~dd C fto"-il Edi~blr to at ~~1: rid rh h·U I T·YI ii":'' ·a op d~ · ~~ ~ cedd rclpo~ to Blco~ ~t i I: PI If:)(d dl~ L~ ltuo!l ·lld ~lo pr*ldt L~ brllt~o~ o! thc rot~l Erod Ixll~l~[' O":Oblcco lit, for lolsfble ule ~::bi~ t~e hooua! 1~10': d Icfo·rl~ I i. It ~ pDld tbl: m mc~l thO eOIolnl ~r Y ~r~la~ed llporvu in ii~ocfl! Giffie~lticl ~nd could fli~~ BlICo. Y n antiodnl ~tlt~ar in the por~ijil ~ of 'hr~ tilnr :nchooIol! bur ATP Pro nor ptlp~rld to 11l; or Ucclco ~air IlebolPI~J hi offrrod inl:lnd I·llnh I loi3t divo!op3cnt. ~eo. bid dlcfdld thlt it db L ptcfr:nbil to dr until thO orT f~ilaC, I: did rir boe rhe tlcLlo~ d the tellslilt g'orh could b(EODI Clil~ll· rold be irlpto9l~tl to o?.;or i~to I toix vonruro vf:: AT?l it u;u ~Ptls~td b~r P~~dl c~l3ld ~~iol fodd L to w~drl ~ oPt:!lht~ t~t It woI Il:lta tslt ~~ tall Ib~d o~ L~ LP(m *IldlC thil ,r. I*dY~A B cLDjunctioO dth tW· r3 '· It PI rtld ~~: rhl g~iPatdnl ~tPdt O ~liln tho pIo'0tne 11~~ for ~p vu duo for colplrt!on bl 4rh lo~l~tr ~ Eh~t, bccauJc of ddftioul Plltl fLlturls thlr hud nldld to k fprroduced, th eolt vould L fl~h t~tLr tlur thc Ib.il orilfnlll Il:isrld ~ aovovor, QtboPlh thlrl omld llIo ~ on ~ditio~ coot on C; t~e full rfll ILnL Ile ip~(LI WUld nOt bC JIO 1IU~ h~ tPcll ap~ed thlt lOriOn ~ in hi to a~a·gle ~I mI toblc:o ~~LPIJOD flCilit:l in EbC 11~ CcrJlny bur pol~ibfli:111 for c~r:tint out co;:tlct ·rt fot bhlr CrouP o~ldes p~ 41~ bOinI ~nvlJtiln:~d~ 10. ~· t~rr~v~t tc3artld th~t n firle 1IZiPI ~d boon b;C of tho elol to ulaal~c!lr!n! Pltion~l!lltioP~ Iho O LIICSE t~e 10'"::1~1 for futoPcnn Pito telJ rll d~l ro ual Ilsin On !sI Dtclabrr tod ull din~ ~ recoreld~::o~ bf dd-JLDP"I' ClibPDF - v~~fastio.soni I!. The Cha'rvn I:aLr:et a iapc: su~a:iJ!ag the current p~!rfPa in the USA on Sa:dao· ~:~ougt the prod;:cr nov has the hf::o:-?lw filter and a taring oi jq, progress in the tarkec i~d been rcla;f~ely noda:~ Bovever, it vu fe!::h: there vas considerable good~~ in the Sarclag name vhic~ voulC Se used Is the basis for a Ba:f!ay ~i~es product to compete v::h ~d:llero li~:s· Ilis product uPuld have i coPvedoa~i filter. :1· h~ Brue!! uii, rf,s: the Sar;!ag lights product could ~ro he or' interest in Europe as a 7c:en::al co~pet!tor to &rlbo~o Ugirr· Progress or. E~C CX:.JP:JB 3LrC!a! product bed beeP lio!:ed in lurope. Ihe product vee s;il: bet 03 dr old ~e:ron filar as research in Sviae:Lnd hat laoM that, nov ft~at the harshness had been eliminated from the produc:, custoaers preferred it to products incorporating the AC:FopP1Us filter which had been considered too r3ld and too herd to drav. Da57i:e :~e !i3i:ld progress, Barclay vu still holding its oM lad vork uas C:::!1,:39 to obtain agreement to reduced ratings on the pac~l· in te~-~i oi ~at~er share, the pjer diJlppofn5eP: ues in Cersany and vays to ove::ooo this vou!d be considered futthct· !3~ The Cha!~san las disappointed that there bed not been note progress in introducing lic::oP?lus ~echPoiojg into Europe end he ~1~ he dilcwring this vith Bror, L k'i!~a;son, r~, ;y,, Bruell drev attention to prob!e~ns being encountered in the Wddle East uhere a video at:acjdng Barclay had been circulated to Covlr~Pcnt ~aistea~ P:iaugh there vas no firn evidence, it uas suspected that thr video PaO have been originated and distributed by people acting on behalf of P~L~lil Ilor:!s· It uas agreed ::~;:- e, to, Bruelr should ask L~ Csrdvel! to obtain evidence (rith~t di:ee:!p or through investigators) as to the source and 'i71 distribution of the video. n~L/ Ic (b) ha Srue!! vou!d take legzl advice and vauld than rccon~end what action if any should be taken against Philip Yor:fs~ (e) be Cha!ran vill see !!r. Or!tchard uhen he is in london on tSth October tad tiill agree vhat action Should be taken to restore gtrcL!'r position in the rmlbl(c~B~ by kuncl:ng products bed on ~ct:ot-"lus)~ II, It was Pored that the distribution of the video had occurred at a tine vhen there had been goad industrg co-operation in negotiations vib Covetnments and it vas essential that strong action should be taken to lake it cleat :3 philip Uo[:iS that action of Chis could br Crl porenriailg very ~rmg~lg Pot enl~ to the Indesrg also to Philip O Horris t~eae:vcs~ Clit; PDF -!::!!::!!::!.f3 StlC.i: 0111 · -I- 16. Ilr. !,:cketts :a7orreC :~U, l:t·i!sl:f3a oi 5i(andinavisk b]r das~ hn~~::an had suggPs:o.;. that if 3~1.: InCEllr:es;ished to aC:(ii:B the outstanding Eta:ebo!E?rls, i reasonable price would be E3703, re;;eae?t:ng a !IE of 12.e. ttis;:s)a:ai, with an asset nke of a:,uaC :?00:. I: as agreed that fc::jer sori should be cart:ed out to es:ab;fsh poss:~le ways :1 vhi~ tha:obacco ~eJiPess at SZand~ruvisl: Jigh: be acgi:cC, possibly by a~sEi:i:q the coie jusine~s and then eves:!ng the non-Tobacco ac::vfties. ;o?s:o: ~ti?clng lay leodYili wr:re'l[i Ehau!d also be cosite:ed~ u~. S!oj, var akei. r~ prc!a:~ I p!r: ia: the Chs~~an ourl:aq possiUe appl3achcs tbr i~'n: be tanes~ ii~ The Chairman presented a palt: sue;ar!shg the current posir:on regsrd!q exports f:om 5:3wn L'k'ii!!a3oa to :ie Jalanese nr~ct~ This shoved that sales vtn ., Nnning at Ih(~oP::. n~r~iB~ also reported encouraging results for an b:!ca::17e ;PS brand, which as running well ahead of idgct~ Fel!ou!nS the ~pounclleo:l pt f"jL' ~oY" 10 "ducr the tnr!ifs impo~d on I:?or:s there coaid be c oppo::uniry for a eajcr inc:use in the marker s'na:es far ioreip brands, and brown i iiilU~ison $d ko asked. to consider posr!bk ualrs for ~ouoring 1 major attack on the market, and to consider with )L* ions bow a, initial ai~ePd!:~re o!shr be qltllisel rather than charged ta :cvc~ue~ Although i: as ac:epted r`sat L~e initial opportunity is Ilkell to be for marketing, it was suggested ri~r the posr;hilig of manuiwruriag in Jala: should i:so be cJcs:Ce:cC as 1 13cS!: ten posr:bi!!rt~ !g. ~rs. Bn4 taorred that i: ha br-l decided not to Proceed Yi~ the Invcsaea; uhic~ had previoulig been proposed In k'esr hfrica~ acn had but a faveutab!e reaction Iooc rurke? where it appeared that the CoverruPen: were looi;i:g far Ipposa! which wdd allow Ichl to hape a 301 share in the business but where foreign shareholders would be allowed to have coar:o:~ eutreor indications are that the initial ~nvtst~enr recuired fna 3xCot would be of the order of f13~ with 1 fnrther fbl rd~uirrd tar the ~cn~ri lion of a shell factory. B~Co. vould he prqlt:ng I la~ei fPr ;he 35 within a week, asking for guidance as to the acceptability of rt~t apprlafh which it was prPPOIea to ta~e In the pegoriot!o~l· It was noted that the ptul!ty of tobacco being obtained from china bad improved considerably and more ~ss being boughr~ 8egotiat!oas were proceeding on the prsje:: far SJu~~ Qinl· W BC:i had oar accepted the plew that there was a need ior better aQeocy relresentatioc in I:alv, I: was qeed that this question should be Q rr~lr,sidered vieh~ 3:icbe: i: 21:ing i981, at which ~k there Ihauid be a critical !Pok at the ean!ar:sonr with the petidi'"ce oi philip Ilorris and R'3 in Itsly~ it i;as noted :mr I~C:;s, were cop~:~u:ng ;3 evaluate Greece at a CO potential neu Jarlrer· pottuealhat slra been considered hot was apr thought to ha'e gOOd prospects for investjent, I··· Clit; PDF -!::!!::!!::!.f3 StlC.i: 0111 ___ -5- 1~· it vPr I:cld t~: i: Jd bo ~ ~v~n:ly~ to JC i:: t~~h~r ~~rrlll to tPt:oCce ~:l:Ji:'rS' tor aJkl a~* Ip~ne P6L B PL~ CCI VIII a~o Il:ccC :il: CIC:I(E cn;lPrlyta: Le~ r:ICliOl dthr L Ifvln o r~r b~c~~~ 'I Ch~n, BoJdut~l, Silr:l Seo31 Ind ~glPd~~ 20. ~~ltoal: ~po::td :~lr diffioOl:!Ps Yc'r boiPt rxJc!'rlcPd it K'tlnp conic:aPer o~ tliddoloyu ~ ~sl~ for pro~t!:l Ino ~~k!~0 UO' ----~e of I:~;~; pl':!5lr j!LPDld Ld thl co~sndi~· ~I:~ lurlr!n JlotlO:' (~( FIIEDhOlC: I~;I;U;I) wort POI (.:husillliE LIOUZ t~rir Pbi!f:y to ,,,: ~thlr oel~ JI· i~onron lo oooI!PuIal ~I d!Iourlio-J ~!t~ I:rpoicr but ii I!Jo CD3Eidl:iq 1: L!tCrPIEIVI Iponsor!31 bbdl frOI ClplCl. bz rYI ~cltln bP~d sldl* o k ~~B t Ylh ptiorit~~ ~c:: ,, latip Plidtnct of I lrOu3dJwl"Ot alilloP IgIiDst cetlr~l ·~,·tlly I"''* ·d i: vpo!C k ~111'1 for mt CrouP to tlkl ~dtl::lp of t~ir r:lod~ 11. fe vis ~l:sll du L. )ntll vouid e:~g? 13~iDI'~~ a' M~ Pod ~· ~l~lI lO dilIPPP OLhll YIYI 11 vhio5 bot~ ~~ Pod tb i~~tV ,C ~""~l~"i~" ,~ _-- ~~..~ ~L·, rk~ Loom ~lt ~ to EoDSia11 ~I IrlOCI +iCh Illlf 21~ c._..l..·(.. iP~ptOp vis da to rct IndlJt:ia Ib~ 'L OD tP "l~i~?~. IlPin oP l!nUZlrd Oc:Pblr· the ~jce: of this tlP~II to fO~~t(l folP of prlposPi tLt "11 h I::qtll~ loll m :be iPllra Id D dr poaopolill ~ 61th would Porit: k ~I f':'~: panrl:l;ioo of Forronl llOP01! Iltltf~ '.3. ~· Bncll C:cv ~r:l~t~on ~d the ~lh ""; (C.~~) oi Ic n~rcll~ vhiOh rhclY blc: PdvircC prcrl~l~ to cl:~n~:l PIta:id fr· air~lnl oilhl bo ~=ilcJm P ~L 5~,11 i it ·I ·IdD1 to hi prodPcd ii In ~ria corrr~ fr ~s PBrlod !br ·h. ~nU would IrrInga for b· 1Lrt to Ice ~~ CLls · this, alpJh 23td Ofrober !9e6 ClibPDF - v~~fastio.soni