Document NGLv39kbg2Dm2R3ry8gqG48w
FILE NAME: Eternit (ETER) DATE: 1981 Feb 24 DOC#: ETER113 DOCUMENT DESCRIPTION: Confidential Notes on Meeting Held in Brussels
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J . D. FROGGATT
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A a b c a t q a iiT quti f i M i o r i g o n *1 jiTotca on M e e t i n g H e l d i n D r u s a . e l a , 2<tth F e b r u a r y 19B1
Present
Mr, Mr, Dr,
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Mr, Mr, Mr. Mr. Mr. Mr. Mr. Mr,
J-M. Emgens J, Cuvelior M. G r a f
A. de Meta
C. V, Newton r$,.D,.>i. S o m e r v i l l e E, de .Druyn P. Audebert D, V a s t H, Dorrier B. Glboin J . D. F t o g g a t t
11, A s b e s t o s and E n v l o n m e n t
Mr. D o m o r r e v i e w e d r e c e n t d e v e l o p m e n t s i n t h e a s b e s t o s m i d h e a l t h d e b a t e . He n o t e d t h a t i n many c a i u i t r i e a t h e debate? h a d i n t e n s i f i e d an d v a s becoming- i n c r e a s i n g l y p o l i t i c s ! Trado unions, in c lu d in g in tern a tio n a l trade union bodies, ware b e c o m i n g more t r e n c h a n t and e x t r e m e i n t h . e i r demands r e l a t i n g to the u s e o f asb esto s. Mr. Corner t a b le d V arin us items which i l l u s t r a t e d these developments.
In. Europe t h e r e h a s b e e n a good d e a l o f a d v e r s e public !t ?,, s ome' o f i t p o l i t i c a l l y m o t i v a t e d , o v e r t hf e' l a s t f e w years:-..T h i s now a p p l i e s tp Germany and, t o a l e s s e r e x t e n t , Auscxcia aiid S w i t z e r l a n d , a s w e l l as t o H o l l a n d and S c a n d i n a v i a aesra a n t i - a a b e s t o s l o b b i e s h a v e t r a d i t i o n a l l y b e e n s t r o n g . /u-tb.iasb esto s sen tim ent has alSo been e ^ B r i e n c e d i n France,, although h e re a p e a k was reached about fo u r y e a r s ago siacie v h e n t h e i n d u s t r y h a s done much to; i m p r o v e i t s i mage and r e g a in c r e d i b i l i t y . However, there remains a danger o f itew waves o f a d v e r s e p u b l i c i t y .
E v e n t s I n t h e TJX h a v e e v o l v e d d i f f e r e n t l y , Mr. Newton p o i n t e d o u t t h a t t h e r e p o r t o f t he Si mp son C o m m i t t e e , whJle l e a d i n g to more s t r i n g e n t d u s t st andards-, h a s re d u c e d t he aoola o f i n t e r e s t i n asb estos. I t had le d to a f e e l i n g tihat ithe probl em i s c o n t a i n a b l e and t h a t t h e new s t a n d a r d s w o u l d p r o v i d e a c c e p t a b l y s a f e c o n d i t i o n s f o r t he m a n u f a c t u r e a-.rd u s e o f a s b e s t o s . I t h a d a l s o r e i n f o r c e d t h e UK a s b e s t o s industry's c r e d ib ility .
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Mr. D o m c r p o i n t e d to t h e w o r t c u r r e n t l y i n p r o r e s a a t
v a r i o u s l e v e l s . w i t h i n th EEC. H i t s v a s u m m a r i s e d i n ft
t a b l e : ^ A s b e s t o s <fe I f c a l l h i n
1 9 tn Ja n ua ry 193
preparo!
There i s s t i l l much arcuraont
Tin E E C - S i t u a t i o n a s a t uiM c L r c u l a t a d b y Mr. D o m e r . c.n: d r a f t D i r e c t i v e s l i m i t i n g
t h e m a r k e t i n g a/v.d u s e o f a a b e t b n a n d a s b e s t o s p r o d u c t s
(DC I I I ) an d c o n c ; c r n i n f r w o r k e r n ' o t a c t i o n f r o m e x p o s u r e t o a s b e s t o ( DG V ) , w h i c h may ct>,ua b e d e a d l o c k e d f o r some
t im e . One o f t h e p o i n t s a t ironie c o n c e r n s p r o p o s e d
d iscrim in a tio n a g a in s t c.rocidd.-i I o ,
Th.e g e n e r a l f e e l i n / o f t h e roec;iiig w a s t h a t t h e r e i s a ne-ed f o r t h e - i n d u s t r y t f i g h t '.fv** a s b e s t o s i n E u r o p e , a t l e a s t a g a i n s t th e more xtrwt t h r e a t s and p r o p o s a l s . (A memorandum o f t h e A s b e s t o s , Ci 0 r n a t i o n a l A s s o c i a t i o n , d a t e d hth S e p t e m b e r J^SD, copi-n? o f w h i c h were c i r c u l a t e d a t t he m e e t i n g b y f i r. D o m a r , L: a l s o r e l e v a n t to t h i s i s s u e ) . A c t i o n s h o u l d i n c l u d e :f(. k i n g t h e s u p p o r t . o f members- o f the- E u r o p e a n P a r l i a n n j i i t , e s p e c i a l l y ch'se w ith . a s b e s t o s p l a n t s i n t h e i r c ^ i a t i t u e n c i es , I t was a ls o f e l t t h a t a c t i o n aimed a i thl t i n g the slow e rosion o f the c o n f i d e n c e o f s p e c i f i e r * - . ?nd "Sors i n a s b e s t o s products should he taken.
I t v a s s t r e s s e d t h a t , i n motin.ziiv,^ c a m p a i g n s o f s u p p o r t f o r a s b e s t o s and i n ; r e f u t i n g a t ta d t ig on a s b e s t o s , a calm and ra tio n al approach i s e s s e n tia l. A-ll a lle g a tio n s should .be r e p l i e d t o , b p t t h i s s h o u l d l>>e d o n e a t a t i m e and i n a manner o f one* a own c h o o s i n g aaci no t i n the h e a t o f t h e moment. T h e r e a r e d a n g e r s I n corpi t e r --a t t a c k i n g i n t h e p r e s s , s i n c e t h i s can r a i s e enuftions and draw p u b l i c a t t e n t i o n to. c l a i m s and e o u n t a r - s l i d a s o u t o f p r o p o r t i o n
w i t h t h e i s sii e s i n v o l v e d .
I n t h e USA " e x c i t e m e n t " o v e r a s h j b t o s and h e a l t h i s s u e s
continues tq run f a i r l y high.
Newton in d ic a te d th a t
much o f t h e p u b l i c i t y c o n c e r n s l f i f c i g a t i o n a r i s i n g f rom b a d
p r a c tic e s i n the p a s t . Nevertanle a s , a fresh rash o f claim s
for compensation f o r the i l l - i f f e c t s of working w ith asbestq
h a s cme f o r w a r d a n d t h e r e a r e ano o r two b i g c a s e s i n t h e
offing.
The a s b e s t o s and h e a l t h i s s u e Exh m o s t d e v e l o p i n g c o u n t r i e s
3 n o t y e t a c u t e . Dut t h e meefcims a g r e e d t h a t p r o b l e m s
could erupt alm o st anywhere,. f t t was im portan t t h a t the
r e l e v a n t "home--b a s e " s t a n d a r d s .should bo a p p l i e d t o
s u b s i d i a r i e s o p e r a t i n g i n de ve toj pl Jig c o u n t r i e s so as to
f o r e s t a ll any p o s s ib le Host
t a c tio n ag a in st .these
operations,- T h i s a p p l i e s to niniin^j as v e i l as m a n u f a c t u r in g
though the p r o b l e m s a r e g r e a t e r and may t ak e l o n g e r to s o l v e
in the caso o f mining.
Mr, S o m e r v i l l e r a i s e d t h e probi* o f s p l i t b a g s ( e s p e c i a l l y from Canada), w hich i s f a i t p a r t i c u l a r l y a c u t e l y i n d e v e l o p i n g c o u n t r i e s . Dr. G r a f g r e e d , p o i n t i n g o u t t h a t p oo r p o r t f a c i l i t i e s were somecii a p a r t l y to blame, The q u e s t i o n o f t h e p o r t h a n d l i n g J-tf a s b e s t o s i s c u r r e n t l y being i n v e s t i g a t e d ; and the prstblew i s also under d is c u s s io n in the Asbestos International Ai^toclation.
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Mr. Dornor t a b l e d , some a s b e s t o s f i b r e p r o d u c t i o n z=rd - * ^
c o n s u m p t i o n e s t i m a t e s . R e f e r r i n g to th cori-sumptiom,
e s t i m a t e s f a r 1979 i t v a s au ggo at od t h a t u s a g e prstoitfcly .
d e c l i n e d by 5 0 0 , 0 0 0 t o n n e s i n 19.30 -- n e a r l y 5 0 0 , OCO
7
tonne.s i n N o r t h America' and around 2 p o , Q O G t o n n e s i s : . ' / ['>
/ Vofstom Europe, Consumption in the d e v e lo p i n g c o u c i i i es woul d h a v e to i n c r e a s e b y 3 0 - ^ 05 to o f f s e t s u c h a i y cp ; .this- d i d n o t h a p p e n - 'in .. 1 9 3 0 . Dem and i n E a s t e r n Etirr-'f
(which i s met to o n l y a v e r y sm a ll e x t e n t b y f i b r e iTiom
** * J r. / w
th e W e s t , a l m o s t w h o l l y i n th e h i g h e r g r a d e s ) w.aa p y o b a b i y
r a t h e r d e p r e s s e d a l s o . T h u s , t o t a l w o r l d coh-sumptiesn
almost certa inly dropped n 1930.
A t t h e same t i m e , p r o d u c t i o n o f f i b r e i a a l s o a s t i s - s - t ed to have f a l l e n . P r o d u c t io n i n Canada was r e d u c e d i y s t r i k e s and moves t o wa r d s a s h o r t e r w o r k i n g w e e k , %& w e l l a a i n r e s p o n s e t o s l a c k e n i n g demand, R u s s i a n p r o d u c t - t o n a l s o appears, to have been lower than e x p e c t e d . liovyver, a s u r p l u s o f f i b r e ac cu m u la ted d u r i n g I98Q, l e a d i n g tj, soma m a r k e t w e a k n e s s . T h i s i s most a p p a r e n t i n fch l o w e r f i b r e - g r a d e s where u s e s s u c h as f i l l e r s aftd r o a d s t y f i c i n g . are' te n d in g to d i s a p p e a r .
I n the a s b e s t o s cement g r a d e s i t was s u g g e s t e d t h a r jpriaa w er e n o t f u l l y r e f l e c t i n g t h e d e p r e s s e d s t a t e o f tl<r -nnrket . T h i s was a s c r i b e d p a r t l y to t he weakness' o.f s e v e r a l TBxro'pean c u r r e n c i e s a g a i n s t d o l l a r - r e l a t e d c u r t e r t e i e s and t p ns^Ward p r e s s u r e s on c o s t s , ' e s p e c i a l l y i n Can ad a.
I t was s u g g e s t e d t h a t a t l e a s t one C a n a d i a n mine vita r e l a t i v e l y h igh output o f low-grade l i b r e s was l i k e l y to clo se during the current recession. O ther mines could also
b e u n d e r p r e s s u r e . Mr. Emsena s u g g e s t e d t h a t , a s m a l l number o f mine c l o s u r e s c o u l d be' i n t h e i n t e r e s t s o f f i b r e purchasers, since the remainder could then operate cle-ier to capacity, thus reducing costs per u n it o f output. liy t h o same t o k e n , t o e n s u r e a d e q u a t e p r i c e s may be i n iih\9 l o n g - t e r m i n t e r e s t s o f b u y e r s ; f o r c a s h f l o w i 3 a ica.jer k e y to s u c c e s s f u l m ining V e n tu r e s , and i f i t l a i r i a t l e q t u ' i a f t e r allow in g f o r tho c a p it a l expenditures nee'ess-ary f o r ain-eoing o p r a t i o n s , t h e r e may be no a l t e r n a t i v e t o c l o s u r e .
l o o k i n g to the l o n g e r term, the demand t r e n d f o r a s 5 eCoa p r o d u c t s i n t h e USA was t h o u g h t to b e d o v n k a r d a . Tien-s had be on a drop i n t h e a--c m a r k e t o f a r o u n d 2 0 o i n 1 9 8 0 a i d t h i s c o u l d , a t w o r s t , bo r e p e a t e d i n 1 9 3 1 . S u c h a r a t e of* d e c l i n e w i l l n o t go. on i n d e f i n i t e l y ; b u t f u r t h e r f a l l s a r e pyof ea bl e i n a s e r i e s o f s t e p s . The U S market i s g e n e r a l l y v i n t h e e a s t e r n s t a t e s ; t h e r e may s t i l l be some g r o w t h im
veston: states.
I n Europe as a w h o l e , l o n g - t e r m demand t r e n d s may be l i t t l e s t r o n g e r t h a n I n t h e USA. I n E a s t e r n E u r o p e t h e r e hjo,y bo somo i n c r e a s e i n demand f o r Group t f i b r e s f r o m t h e r**t i f the funds are availab le.
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Flbr'e demand i n d e v e l o p i n g c o u n t r i e s i s e x p e c t e d to c o n t i n u e t o r i s o o v e r t h e lor*?-: t e r n . Dut soro_o d i s q u i e t v a s e x p r e s s e d . For e x a m p l e , t ho Mifu.Ue E a s t i s n o t p r o v i n g t h e g r o w t h m a r k o t f o r a - c pipo. C h a t vaii earpect od. X t- may bo n e c e s s a r y to d i r e c t m.e.rfie t i n j f.v*rt o r a t t he head o f f i c e s o f c o n s u l t i n g e n g i n e e r s and o t h e r - s p c i C i e r a who a r e r e s p o n s i b l e f o r m a j o r p r o j e c t ' s i n th r'egicon.. T h e r e was some d i . s c u - T ^ o f s u b s t i t u t o f i b r e s . Some s u c c e s s was r e p o r t e d on subsit i tu te a f o r " n o n - s t r u c t u r a i '1 p r o d u c t s , b u t l i t t l e f o r " a tr-rcc tuaral " p r o d u c t s .
D, FROGGATT
3.198 1
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