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Charging that the Nestle company
and American Home Products are
dumping infant formula in the Third
World, a corporate watchdog group
last week renewed a boycott on those
On the anniversary of the end of
the original seven-year Nestle boy
cott, Action for Corporate Accoun
tability (Action) called for a protest
oh an even larger scale, saying Nestle
has not lived up to the agreements
made in ending the last boycott in
Congress tries to wrap up
anti-drug bill, tax measure
Fom Associated Press reports
: WASHINGTON Its election
year antennae in full working order,
Congress is aiming to finish fashion
ing a something-for-everyorie anti
drug bill and a $2.7 billion tax
treasure this week and then to
adjourn for the year.
; Both measures would satisfy a
cpmpelling urge that overtakes law
makers each election year: to churn
out legislation popular with large
numbers of voters.
; Work on both, however, is being
influenced by another instinct that
becomes unusually potent on Capitol
Hill late in even-numbered years: the
desire to flee Washington in time to
campaign for re-election.
; Thus, when the Senate turns to the
drug measure possibly on Wed
nesday legislators will be strug
gling to finish their work quickly or
gping home with no bill at all.
; "Ninety-five percent of the good
well do with this bill is in the core
bill," insists one of the sponsors of
the drug legislation, Sen. Sam Nunn,
D-Ga. If members from both sides
continue to insist on the more
controversial amendments, we won't
get a bill."
The drug bill is a two-year, $2.6
billion collection of programs ranging
from an expansion of the availability
of treatment programs to a stiffening
of penalties for people convicted of
distributing drugs to children.
; But lawmakers are lining up to
offer an assortment of amendments
that are so contentious that the bill
just might be debated to death.
Senators and their aides spent the
long Columbus Day weekend trying
to figure out how to slash the number
of amendments the chamber will have
to sort through, with Republicans
ready to offer six to 10 amendments
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The group is urging an across-the-board
boycott of all products made
by Nestle and American Home
Products, but the protest will focus
on two products of each company:
Nestle's Taster's Choice Instant
Coffee and Carnation Coffee-mate
Non-Dairy Creamer and American
Home Products Anacin and Advil
across-the-counter pain relievers.
The way the company markets
infant formula in underdeveloped
countries violates the UNICEF and
World Health Organization Code of
Marketing of Breast-milk Substi
tutes, said Carol-Linnea Salmon,
and Democrats poised to introduce
more than 70 others.
Among the more controversial
amendments are proposals to allow
courts to consider illegally gathered
evidence that police obtained in good
faith, narrow the rights of prisoners
to claim they were jailed illegally,
require a waiting period for people
wishing to purchase handguns and
apply tougher sanctions against the
apartheid government of South
An effort may be made to strip
from the bill a provision that would
allow capital punishment for drug
dealers who order killings, hired
killers who commit murder as part
of a drug enterprise and anyone who
kills a law enforcement officer during
the commission of a drug crime.
One matter the measure skirts is
where the money will come from for
the very programs the bill would
Although $1.4 billion of the leg
islation's spending would be expected
to occur over the next 12 months,
lawmakers say the government right
now can only scrape together $450
million. The Senate has so far voted
down efforts to raise some taxes and
to cut other federal programs to
provide the extra money.
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roup reoews boycott of companies
associate director of Action. ,
Nestle agreed to the , code as a
condition for ending the previous
boycott, one of the most well-known
and effective boycotts ever, Salmon
said. Officials of both Nestle and
American Home Products deny they
have violated the code.
"The basic allegations they
(Action) are making are simply not
true," said Carol Emerling, spokes
woman for American Home Pro
ducts in New York.
The code permits donations or
sales of formula for babies needing
breast milk substitutes, but says the
formula may not be used for sales
promotion, which includes the use of
Action officials believe that by
providing hospitals with samples,
distributors of infant formula effec
tively cause babies to become
addicted to formula within days of
"The companies provide for free
Trades may not have ' been invest!
From Associated Press reports
WASHINGTON The Securities
and Exchange Commission has failed
to investigate most reports of suspi
cious foreign trading of U.S. secur
ities, despite a growing number of
illegal trades originating from
abroad, a House panel said Monday.
A report by the Government
Operations Committee said the SEC
had actively investigated only 61 of
229 reports from the. stock exchanges
of suspicious foreign trades mostly
those appearing to involve insider
trading in 1986 and 1987.
The report was based on a year
long investigation by the panel's
subcommittee on commerce, consu
mer and monetary affairs, chaired by
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large amounts of formula to hospi
tals, therefo re. encouraging them to
feed all babies by bottles, which is
a hard pattern to break," Salmon
It is physiologically possible to go
back to breastfeeding, Salmon said.
"But mothers don't get that message,
and their children die because they
can't afford to feed them.
"Even if they might be able to
continue using the product without
diluting it to dangerous proportions,
they often don't have access to clean
water or sterilized bottles."
The formula distributors do not
dispute that breastfeeding is better,
"Everything is labeled," she said.
"Every piece of information and every
product says breastfeeding is best,
and it's in the language of the
"But every infant that is not
receiving breastmilk has a right to the
Rep. Doug Barnard, D-Ga.
The 168 incidents not investigated
by the SEC, the report said, involved
503 foreign individuals, banks or
other entities in 25 countries and
represented gross potential profits for
the foreign investors of at least $36.1
million. k" .
The director of the SEC's enforce
ment division, Gary Lynch, said
Monday he had not seen the report's
final draft, but that in testimony
before the panel last June the com
mission had taken issue with the way
the probe was being conducted.
Lynch said the House subcommit
tee investigators had underreported
the number of SEC staffers working
on cases involving foreign purchases
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best substitute science can provide,
and that's our product."
American Home Products does not
give formula to mothers, only to
medical personnel who ask for it, she
"Every request that we have for
supplying hospitals with donations is
in writing," Emerling said. "It is the
Action officials say suppliers'
promotion techniques have become
more sophisticated. "It used to be
billboards and jingles," Salmon said.
"Today promotion is largely in health
care centers. It is not as blatant, but
it may be more dangerous.
"This is following a decade of
industry promotion through dona
tions of equipment and money to
build maternity wards not conducive
to breastfeeding," she said. "Hospital
leaders are saying to us, They give
us all this formula, and it's just easier
to use it.' "
and sales of U.S. securities, and that
the report was based on an incorrect
assumption that all trading activity
brought to the SEC's attention
automatically warranted a federal
He said many domestic and foreign
trades are reported as "suspicious"
because they occur near the time of
a major price move on a securities
exchange. Most of these trades are
legitimate, Lynch said.
The report said the dollar volume
of securities bought and sold by
foreigners has increased from $25.6
billion in 1977 to $277.5 billion in
1986. Last year it leaped to $481.9
Expert testimony before the panel
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Action estimated that worldwide
sales of infant formula total about
$6 billion each year, half of it in '
developing countries. Salmon said c
Nestle has 40 to 50 percent of that '
$3 billion market and American
Home Products about 20 percent.
"Those two companies have a lot
of influence in the market," Salmon '
said. "If they pull out, no other '
companies will step in because they ;
know well apply the same boycott '
to them. Nestle and American Home :
Products could have an effect on the
The code is actually a series of.',
recommendations that was approved
by 166 member countries of the
World Health Organization. It is up :
to each nation's government to.'
monitor the enforcement of these
recommendations, said Dan Epstein, ',
information officer at the World
Health Organization in Washington, ,
last summer indicated that the
number of illegal trades had also
grown in recent years, although the
report gave no figures on this.
In response, the report said the
SEC should assign more people to
its international enforcement activi
ties and give them more responsibil
ity, to pursue new information- '
sharing agreements and to renego
tiate and expand the scope of the
Only six countries Switzerland,
Britain, Japan, Canada, the Nether
lands and Italy have bilateral
information-sharing agreements with
the United States, and the SEC rarely
pursues suspicious trades originating
from other countries.
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