British American Tobacco confirmed yesterday that it owns a cigarette factory in North Korea but avoided any comment upon human rights issues raised by a British daily newspaper.
In a written response to a story published yesterday in the British daily, the Guardian, the company reported that it co-owns the production plant with a state run firm, the Korea Sogyong Chonyonmul Trading Company. Their joint venture is called Taesong BAT.
BAT withdrew from Myanmar in 2003 after pressure upon them grew from human rights organizations and eventually led the British government to issue an "exceptional" request for them to leave the military state.
The North Korean operation began in 2001 with an initial investment from BAT of $7.1 million which the company says was "largely for manufacturing equipment rather than cash." Some 200 people work in the factory, which BAT said are employed by their partner - it`s illegal for foreigners to employ North Koreans.
BAT owns 60 percent of the North Korean business, the remaining 40 percent belonging to the state company - an identical ratio to BAT`s Myanmar firm, Rothmans of Pall Mall Myanmar of which 40 percent was owned by the military regime there.
BAT denied the factory was a "secret," as portrayed in the Guardian`s report and stated that they were "neither surprised by the newspaper`s stance nor the timing." The Guardian is considered to be a left of center paper in Britain and a leadership contest is currently underway within the nation`s Conservative Party once led by Margaret Thatcher. Ken Clarke, one of the leadership contenders is Deputy Chairman of BAT.
A spokeswoman at the British Foreign Office in London said the U.K. government is continuing to raise the issue of human rights with the North Korean government.

By David Nicoll