lia your
and
All the
nd
lue r- o
ull you wot;ld be 'Kind enough :0 let me have,
1--,r
"h:r-, ze g-are-`
sday, 4th April.. any azendzenrs which you feel
are necessar.- :o the
above key area papers, or confirmation that :hey
will remain
Unless a key area paper is zo be subscancially
:e%rriz--an, only the
amen=enzz, w-zh re-ferences to :he -.ext. need be
noted.
'-Z
KNIS13
14 th MArch 1991
c.a. 1. Sti=son (Production paper onl
!ir. J. W. Drurmond (IA&f paper only) N
LEAF DEPT.
APR 199 1
:NIPNAR MSUJAM.
ILE
BATCo document for Province of British Columbia 23
April 1999
Q-4
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P
E-7
VOTE TO VIS
Y-Y AIR-k PAPC'AS
I enclose copies of the key area papers an
Security and Economy of Leaf
Supplies. and Productivit-f'0f Production
Resources which fall 4thin your
depar=encal responsibllit4es. Key area papers are
now updated as and
when necessary. rather than being rewritten
regularly every year. All the
papers -4111 be reviewed at th: Board meeting on
Thursday, l8th April. in
order r-at Te ct s will hzv,. the !azest
amendments and
rritorial Dire -
updates approved before the g%zideltrei to
operacing companies are due to
be d:af:ed in May.
I would be &=a:e_`ul 4f you wou'-d be kind enough
--o let me have,
lhursday, 4:h April.. arv amendments which you
feel are necessar-, to the
above key area papers. or confirmation that they
will remain un--..anged.
Unless a kay area paper is to be substantially
:e%rrizten. only ~he
a=er.dzenzs. with rr'_~rrences to the text, need
be noted.
_Z~
worthy
It. Nors
KNISJB
14 th March 1991
AZ4
c.c. '.r. D. J. Sti=son (Production paper oml
lir. J. W. Drummond (IA&f paper only)
LEAF DEPT.
--,APR 1991
-N PNAR TO SEE ACXN.
,-1LE
Ln
co
X~h
BATCo document for Province of British Columbia 23
April 1999


- 2 -
1.2.3 Direct involvement In domestic tobacco
production will
continue to require the provision of expertise
and. in
certain cases. the Provision of the necessary
financial Inputs although these should continue to
be
met. wherever feasible. from external sources.
Operating Companies will continue to be involved
in
arranging and Managing this financing.
1.2.4 Operating Companies Rust reduce and control
all
Components of crop expenses and processing
wmessesi
~-tarmers growing such tobacco - -- obtain
returns from their tobacco crops in line ith otber
competing crops and prices which reflect domestic
inflation movement.
1.2.5 Economies in f~:al consumption for curing
and the
replanting of tzats to replace wood fuels should
be
encouraged. Reaf!orestatian should exceed in
population the of trees used for tobacco curing
fuel. Agzz-forestry should be given greater
attantion
to ensure that trees are grown not only to provide
wood fuel but also to enhance &oil fertility.
1.4 Stratecies
1.4.1 By tteing directly Involved in dc4mestic
tobacco
production to ensure t2liat, as far as possible,
requiraz*zts. are met not only from increased
acreage,
but also !zom increased yields. A minimum yield of
1,200 kgs ptr hectare. saust be sougnt; this will
ensure
not only higher farmer ef!'Iciency and income.
'but also
improve land utilisatien and tte cost of the final
product. Increased yield will not be sought to tta
detriment of c;uality.
1.4.2 Direct involvezent in domestic tobacco
production must
be allied to the development and expansion of
C compatible food crops.
Z.4.3 Operating Cam;anias 411--actly izvolved lin
tobacco production vill practise fuel econony and
participate in realfarestation schemes and in the
provision of alternative. fuels.
2. IMPORTED TOBACCOS
2.1 Assumotions
2.1.1. There will be a continuing reduction In the
quantities
Of uncommitted tobacco* (all types) Of acceptable
quality at the and of the processing season* in
the
traditional world producing areas.
c0
BATCO document for Province of BrifiSh COIUMbla 23
April 1999


4
2.2.5 Where B.A.T. is not Involved in tobacco
production
and/or procurement, B.A.T. will assets the
performance
of different merchants and place orders with those
dealers who have a business policy worldwide which
does not contravene B.A.T. interests.
2.3 Obloctives
2.3.1 B.A.T. will. whenever possible. consider
purchasing
tobacco originating from Operating C;ompanies, In
preference to similar tobacco available from those
countries where tobacco has to be purchased
through
independent dealers.
2.3.2 Subject to political and financial
ccastraints, and in
order to maintain their comnetitiva advantages.
operating Companies will strive to maintain their
imports of tobacco until suitable alternatives are
Q; available locally.
2.4 Stratecies
2.4.1. B.A.T. will, maintain am effective market
intelligence
system and continually examine forward positions
of
leaf suppl-ies and prices. Forecasts will continue
to
be sent to Operating Companies quarterly.
2.4.2 B.A.T. will previde the necess.
improving classification. proci
systems to meet the more strin,
the final product. .
2.4.3 B.A.T. will use credit and sto
countries of origin as long as
those count:ies are lower than
countries and the risk is acce
3. EXPORTS FROM OPE-UTING COMPANIES
3.1 A ss-otions
3.1.1 The current world supply/demaz
the possibility of increasing, cc
programmes; the demand for be,
pressure to maintain blend coi r
4 yzaAd for filler tobaccos.
3.2 Policiel
3.2.1 B.A.T. will assist Operating
thair exports in particular t
Companies. as well as througb
whom it has influence.
BATCo document for Province of BritiSh Columbia 23
April 1999


- 4 -
2.2.5 Where B.A.T. is not involved in tobacco
production
and/or procurement, B.A.T. will assess the
performance
of different merchants and place orders with those
dealers who have a business policy worldwide which
does not contravene B.A.T. interests.
2.3 Oblectives
2.3.1 B.A.T. will. whenever possible. consider
purchasing
tobacco originating from Operating Cbepanies, in
preference to similar tobacco available from those
countries where tobacco has to be purchased
through
independent dealers.
2.3.2 Subject to political and financial
constraints, and in
order to saintain their comr-etitiva advantagis.
operating Compazies will strive to zaintain thair
imports of tobacco until suit"le alternatives are
available locally.
2.4 Stratecies
B.A.T. will. maittain an effective market
intelligence
system and continually examine forward positions
of
leaf supplies and prices. Forecasts will continue
to
be sent to Cperatlzg Cc=paniez q;arterly.
2.4.2 B.A.T. will prcvide the necessary assistance
In
improving classi!Ication. processing and grading
systems to meet the more stringent specifications
of
the final prodzct- -
2.4.3 B..k.T. will use credit and stockholding
facilities in
countries of or:gin as long as carrying charges in
those countries are lower than in the receiving
countries and the risk in acceptable.
3. EXPORTS FROM OPERATING CCMPXNIE:S
3.1 Ass-otions
3.1.1 The current world suppl:j/demand situation
will offer
the possibility of increas i ng/deve loping export
programmes; the demand for better filling power
and
pressure to maintain blend cost will increase the
demand for filler tobacco*.
3.2 Policies
3.2.1 B.A.T. will assist Operating Companies in
prommoting
thair exports in particular to other Operating
Companies. as well as through Indspendant dealers
w1th
wh= it has influence.
C:)
cc
co
BATCo document for Province of BritiSh Columbia 23
April 1999