Daily Doc: PM, Dec 17, 1986: Philip Morris Around the Globe
Daily Doc: Philip Morris Around the Globe
Title: MORRIS INTERNATIONAL CORPORATE AFFAIRS
PM, Dec 17, 1986
Bates #: 2025431401/1406
January 5, 2000
This document reveals Philip Morris' astonishingly deep and widespread interference in government affairs all around the world. Written by Philip Morris' Andrew Whist, (who, incidentally, according to telephone records, maintains contact with Wisconsin Governor Tommy Thompson, whom incoming U.S. President Bush has nominated to head the Department of Health and Human Services) this document reads like a brag sheet:
"The government in Hong Kong responded to Philip Morris pressure by narrowing the differential between duties on imported leaf and finished cigarettes...significantly benefiting Philip Morris...This report reveals the sheer scope of global activity by Philip Morris (PM), but perhaps more importantly it also reveals the powerless state of governments before this corporate behemoth, as PM goes about restructuring countries' tax systems, repealing laws it doesn't like and blocking legislation pushed by citizenry. We can only ask ourselves how much progress would have been made around the world in reducing the spread of tobacco-related disease had Philip Morris put humanity above its own profits, and refrained from pouring so much of its resources into stopping, delaying and watering down health measures in every corner of the globe.
"In Brazil, we achieved a significant tax decrease...
"In South Australia, Philip Morris significantly watered down an anti-smoking tobacco products control bill...
"In Quebec, Benson & Hedges pressed the government to overturn its ad valorem system of taxation on tobacco products...
"Through [PM's] efforts, the GCC Health Ministers...delayed health warnings and maximum constituent labeling on cigarette packs...
"In Venezuela, we were successful in stopping a detrimental, self-regulating advertising code...
"Our work in Senegal resulted in a new advertising decree which reversed a total advertising ban."
CITATION
Title: PHILIP MORRIS INTERNATIONAL CORPORATE AFFAIRS
Type of Document: Memorandum, report
Author: Whist, A (Philip Morris)
Recipient: Philip Morris Board of Directors
Date: 19861217
Site: Philip Morris Tobacco Company Document site http://www.pmdocs.com/cgi-bin/rsasearch.asp
Page Count 6
Bates No. 2025431401/1406
URL: http://www.pmdocs.com/getallimg.asp?DOCID=2025431401/1406
Litigation Usage: None yet
Found Using Search Criteria: "NY SOCIETY FOR INTL AFFAIRS" on the Philip Morris site
QUOTES
This has been an emergent year for Philip Morris International Corporate Affairs...the issues we face -- taxation, marketing restrictions, environmental tobacco smoke (ETS) -- are now literally world-wide problems, and the anti-smoking groups use sophisticated tactics to attack us on these issues throughout the world. [We] have mounted challenges to these attacks through...marshalling of all resources and the enactment of targeted, integrated programs...
Following are highlights of our activities...
TAXATION
Through Philip Morris efforts, the Dutch government revised its tax system to narrow the gap between roll your own and manufactured cigarettes...
In the Middle East, an announcement was made in October that Gulf Council Countries (GCC) Finance Ministers would "indefinitely postpone a GCC-wide duty increase on cigarettes." ...
The government in Hong Kong responded to Philip Morris pressure by narrowing the differential between duties on imported leaf and finished cigarettes...significantly benefiting Philip Morris...
In Australia, a Taxation Committee, representing tobacco manufacturers and the Tobacco Institute of Australia (TIA) was established. It operated effectively in preparing submissions to state and federal governments which resulted in no increases in tobacco taxation at the federal level or in five of the six states...
In Quebec, Benson & Hedges pressed the government to overturn its ad valorem system of taxation on tobacco products. This was achieved through private representations to the government and a petition drive which amassed the largest number of signatures ever in the province. And we got the Prince Edward Island government to abolish its 10 percent retail tax on tobacco products...
In Brazil, we achieved a significant tax decrease...
In the Nordic countries, our network of resources initiated a continuing effort to convert the Finnish tax system to a fully specific one...
In Morocco, [we] initiated a tax study which we expect will lead to structural changes in the future. And in Guatemala, a campaign was begun to prevent changes in the countries existing price/tax structure...
Staff from Hong Kong and New York worked closely...with the Washington Office in developing new strategies on trade issues and market access, strengthening our relationship with the U.S. Government, particularly in the United States Trade Representative's office (USTR). The outcome will greatly enhance our business in Asia...
Most notable was the Japanese government's agreement to suspend the tariff on imported cigarettes. The agreement resulted from a coordinated strategy undertaken by Philip Morris...
In Taiwan, as a direct result of Philip Morris and industry pressure, the U.S. government undertook 12 months of negotiations which resulted...in an agreement which will open the market for imported American cigarettes in 1987...
In South Australia, Philip Morris significantly watered down an anti-smoking tobacco products control bill, which would have required a total ban on smoking in taxis and long distance buses, a notice setting out the tar, nicotine and carbon monoxide yields of cigarettes to be displayed in retail outlets, a prohibition of the sale of cigarettes in packs of less than 20 and a health warning on all tobacco signs including sports and other promotions...
The new French government's agreement to allow an overall price increase for tobacco products of 7.5 percent was the result of a massive and prolonged effort which dates back to 1982...
Through [PM's] efforts, the GCC Health Ministers...delayed health warning and maximum constituent labeling on cigarette packs. Rotating health warning labels and initiatives to ban advertising were also defeated...
We launched a successful challenge to the Swedish government's health warning label proposal... In Algeria, Philip Morris efforts led to government approval for an attribution on health warning labels...
ENVIRONMENTAL TOBACCO SMOKE
During 1986, we hosted U.S. visits for 97 journalists from five countries...We will convene media briefings for journalists in Asia, Latin America, Europe and Australia...
In Canada, we overturned a federal adjudicator's ruling that ETS constitutes a workplace hazard.
...[We] will continue to create scientific symposia dealing with ETS...
...In Australia, the manufacturers and TIA responded successfully to a proposed smoking ban on domestic airlines by rallying the chief executives of the major carriers. IN addition...an effort to place restrictions on smoking in restaurants was thwarted.
In Italy, Philip Morris responded to a sharp increase in proposed anti-smoking legislation by convincing other importers of cigarettes to form a unified strategy, which included the setting up of a credible "Documentation and Information Center on Tobacco," intensive lobbying and a media campaign.
...In Argentina, the industry's voluntary advertising code was written into law, and the government accepted industry recommendations for mandatory health warning texts.
...A law prohibiting tobacco advertising was passed in Ecuador, but, after a mobilization of journalists from throughout Latin America and numerous international organization, it was vetoed by the President...
Additional legislation to ban tobacco advertising is pending in Costa Rica, but we believe this too will be defeated. We are now able, however, to sponsor sporting events. We have received the tacit approval of the Costa Rican government and are at present sponsoring several events.
In Venezuela, we were successful in stopping a detrimental, self-regulating advertising code, and are now negotiating a new one. Our work in Senegal resulted in a new advertising decree which reversed a total advertising ban.
BUILDING COALITIONS
In New York, we continued our successful political contact program through the America-European Community Association (AECIA) and The New York Society for International Affairs. AECIA was equally active in London, Paris and Amsterdam, and will continue to expand in other European countries...
Philip Morris has taken a leading role in the Philippine Chamber of Commerce, which is now chaired by Mr. Richard L. Snyder. We assisted with the highly successful U.S. visit made by President Aquino. Philip Morris International personnel now occupy key positions in a wide array of international organizations that can assist us in the years to come...
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Anne Landman, Regional Program Coordinator
American Lung Association of Colorado, West Region Office
Grand Junction, CO
(970) 245-2120
afoxland@gj.net
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