over"" 94 Vkt-M $U.N. Emki.0 SWIESIL T,"60-IM-917 0" 21 June 1991 si Patrick Sheehy A/ Chrairman 4W-M BAT Industries plc Windsor' House 1,4 so Victoria Street LONDON SWIH ONL L Thank you for your letter of 16 gay about our policy on cco and the aid programme. As you mentioned, Mr Bramley wrote to me an the same subject. It is not clear however whether you have seen a copy of my reply. I enclose a copy for your convenience. 111,04,0r~k, e,- A major concern of the Government in administering the aid provamii-eis the overall welfare of recipient countries. Health problems facing developing countries are serious. That is why the ODA, in collaboration with internati.onal agencies such as the WHO and UNICEF, is helping to tackle them. B,;t I .annot ignore the latest WHO projections for tobacco-related deaths. The WHO's "Tobacco Alert" of January 1991 reported that in the current decade, out of a total of around three million tobacco-related deaths each year. some one million will occur in the third world. On current smoking patterns a total of ten million tobacco-related deaths per year are Maly to occur by the early 2030s. over five million of which will be In developing countries. Half of those who die will be between the ages of 35 tragedy will have enormous economic costs, not only in and 89. This human the loss of productive manpower, but also in terms of the burden on health care system with which many developing country governments are ill-placed to cope. It was in the light of this that the Goverment decided that we shouLd not use the aid programme to further the production or pmeessing of tobacco. These arguments also apply 'in Eastern Europe where health services, and ,r,t while, their indeed all government services are under great pre,.~su economies are being reformed. TIS /I recognize the C:) all BAT Industries document for Province of British Columbia 23 April 1999 I recognise the importance of tobacco growing to a small number of developing countries. I accept our change in policy will not prevent them from growing or processing tobacco. But neither will the change in policy towards tobacco affect our overall volume of aid to the countries concerned. Where tobacco-growing countries seek assistance from us to improve agricultural practices in general, to enhance fuelwood supplies, or to diversify agricultural production away from tobacco, we will respond positively. You express surprise that BAT Industries were not consulted about this policy change. I understand that BAT have had access to foreign currency provided to developing country governments under our programme aid arrangements for balance of payment support, but was not aware that your company has received direct financial assistance for its activities from the British Government. That is why I do' e that prior consultation was ASe necessary. I wrote to Mr Bramley at the time of the announcement as a courtesy. LYNDA C> BAT Industries document for Province of British Columbia 23 April 1999