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Smoke over the track(附图)
http://www.sina.com.cn 2003/08/01 09:54  上海英文星报

  WHEN Yu Zhifei, deputy general manager of the Shanghai International Circuit Company (SIC), endorsed the deal with Formula One chief Bernie Ecclestone last October, he did so with a big cheerful smile.

  But the city's sports tycoon had to force a smile when he was asked whether tobacco advertisements would be permitted during F1.

  Formula One is perhaps the most expensive sport in the world, with each racing car costing about US million and its drivers enjoying some of the highest salaries among world's sportsmen.

  To build the racing track located in the city's Jiading District, SIC has invested 2.5 billion yuan (US million) during the initial phase of construction alone, so as to be ready to accommodate 200,000 spectators upon the project's completion in March 2004. The track will be the largest in the Asia-Pacific region.

  The huge audience potential of the world's most populous country, the equally vast market and the excellent new facilities may have pushed Ecclestone to take the sport to Shanghai, but the most direct reason was China's liberal attitude to tobacco sponsors, Formula One's major financial backers.

  In European countries where race meetings are held the advertising of tobacco and related products is strictly prohibited and appropriate alterations must be made to the livery of some of the cars to disguise tobacco brands. This results in a substantial loss of revenue for both race teams and tracks.

  Furthermore, both the Belgian and the Austrian sixtures will be dropped from the F1 calendar as of next year due to laws concerning the advertising of tobacco.

  Foreign tobacco giants are also trying to take advantage of F1 racing to promote their products in the world's largest tobacco-consumption country, especially since China will soon abolish the special retailing licences for foreign-brand tobacco.

  Tobacco ban

  But Yu had not expected tobacco advertisements to become taboo in China. In China's Advertisement Law, tobacco advertisements are forbidden at sports fields and other public places.

  Besides, according to the World Health Organization's Convention on Tobacco Control, which China has agreed to soon abide by, tobacco advertisement, promotion or sponsoring will be widely banned and limited.

  SIC is in a dilemma: it should abide by Chinese laws and regulation and international practice; but should it also fight to win permission for tobacco advertising, as it agreed to do when signing the deal with Ecclestone - tempted by the capability of F1 to ensure a prosperous future for the local automobile industry?

  Yu admitted tobacco advertising remained one of the most troubling problems, but he was unwilling to say anything more definite about this highly sensitive issue.

  "Chinese people are wise enough to deal with such matters. We are working very hard to negotiate with various departments and will achieve our goal (hosting the F1 with its tobacco sponsors) while also following international practice," said Yu with confidence.

  Insiders say SIC is trying to gain special permission from Beijing for F1's tobacco adervtising, because the large investment is an effective bargaining counter.

  "Early this year, the WHO officials in Beijing asked our association, through the Ministry of Health, to contact Yu Zhifei with the request to reduce tobacco influence to a minimum during F1," said Hu Jinhua, of the Shanghai branch of Health and Smoking Association, China's largest non-governmental anti-smoking organization.

  Hu himself has met with Yu several times over the tobacco question and WHO officials will also meet him to discuss the matter in detail in the future, according to Hu.

  Without tobacco companies, the F1 could face severe financial difficulties, so the WHO has suggested they try to find new non-tobacco sponsors for the F1 game, although this suggestion remains unfulfilled so far.

  Profits or health?

  After hearing the news about tobacco advertising during F1, Li Xiang, a researcher at the Tobacco Control Department of the local Disease Control and Prevention Centre was very worried about the possible bad influence on public health, especially among children and juveniles.

  "Exciting motor racing games are very attractive to young people. If tobacoo advertisements accompany sports games, they can strongly influence the young."

  Besides the audience at the F1 track, the game will be broadcast internationally, so health experts are worried the tobacco advertisements will also influence China's image overseas.

  As is often the case, the government is torn between the desire to conserve its tax revenue and an obligation to protect the population's health.

  "In the long term it is in the country's health and economic interest to control tobacco use, since the revenue raised from the tobacco industry does not cover the economic and health related costs of smoking," said Li.

  The WHO estimates, for example, in 1993 China gained US.9 billion in cigarette taxes, but lost US.8 billion in productivity and additional health care costs.

  For some reason, Shanghai has not been listed as one of China's "tobacco-free cities" and outdoor tobacco advertisements can still be found.

  The Grand Prix, the world's most prestigious motor-racing event will be hosted by SIC from 2004 until 2010. The event not only introduces an exciting sports game into China for the first time, but will also brings the city enormous revenues from ticket sales, services, tourism and related areas.

  "The tobacco control work all depends on the government's attitude. The situation will not be easy to change. Tobacco advertisements will eventually appear in F1 if the government fails to take decisive measures," said a local tobacco control worker, who asked not to be named.




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