Cable Viewer

Currently released so far... 12453 / 251,287

### Browse latest releases

2010/11 2010/12 2011/01 2011/02 2011/03 2011/04 2011/05
2010/11/28 2010/11/29 2010/11/30
2010/12/01 2010/12/02 2010/12/03 2010/12/04 2010/12/05 2010/12/06 2010/12/07 2010/12/08 2010/12/09 2010/12/10 2010/12/11 2010/12/12 2010/12/13 2010/12/14 2010/12/15 2010/12/16 2010/12/17 2010/12/18 2010/12/19 2010/12/20 2010/12/21 2010/12/22 2010/12/23 2010/12/24 2010/12/25 2010/12/26 2010/12/27 2010/12/28 2010/12/29 2010/12/30
2011/01/01 2011/01/02 2011/01/04 2011/01/05 2011/01/07 2011/01/09 2011/01/10 2011/01/11 2011/01/12 2011/01/13 2011/01/14 2011/01/15 2011/01/16 2011/01/17 2011/01/18 2011/01/19 2011/01/20 2011/01/21 2011/01/22 2011/01/23 2011/01/24 2011/01/25 2011/01/26 2011/01/27 2011/01/28 2011/01/29 2011/01/30 2011/01/31
2011/02/01 2011/02/02 2011/02/03 2011/02/04 2011/02/05 2011/02/06 2011/02/07 2011/02/08 2011/02/09 2011/02/10 2011/02/11 2011/02/12 2011/02/13 2011/02/14 2011/02/15 2011/02/16 2011/02/17 2011/02/18 2011/02/19 2011/02/20 2011/02/21 2011/02/22 2011/02/23 2011/02/24 2011/02/25 2011/02/26 2011/02/27 2011/02/28
2011/03/01 2011/03/02 2011/03/03 2011/03/04 2011/03/05 2011/03/06 2011/03/07 2011/03/08 2011/03/09 2011/03/10 2011/03/11 2011/03/13 2011/03/14 2011/03/15 2011/03/16 2011/03/17 2011/03/18 2011/03/19 2011/03/20 2011/03/21 2011/03/22 2011/03/23 2011/03/24 2011/03/25 2011/03/26 2011/03/27 2011/03/28 2011/03/29 2011/03/30 2011/03/31
2011/04/01 2011/04/02 2011/04/03 2011/04/04 2011/04/05 2011/04/06 2011/04/07 2011/04/08 2011/04/09 2011/04/10 2011/04/11 2011/04/12 2011/04/13 2011/04/14 2011/04/15 2011/04/16 2011/04/17 2011/04/18 2011/04/19 2011/04/20 2011/04/21 2011/04/22 2011/04/23 2011/04/24 2011/04/25 2011/04/26 2011/04/27 2011/04/28 2011/04/29 2011/04/30
2011/05/01 2011/05/02 2011/05/03 2011/05/04 2011/05/05

### Browse by creation date

66 72 73 75 79 85 86 87 88 89 90 91 92 93 96 97 00 01 02 03 04 05 06 07 08 09 10
1966/12
1972/02 1972/08
1973/04
1975/03
1979/08
1985/03 1985/06
1986/05
1987/06
1988/01
1989/12
1990/01 1990/07 1990/08 1990/10
1991/05
1992/01 1992/06 1992/12
1993/10
1996/11
1997/12
2000/05 2000/06 2000/09 2000/11
2001/02 2001/03 2001/06 2001/07 2001/09 2001/10 2001/11
2002/01 2002/02 2002/03 2002/04 2002/07 2002/08 2002/09 2002/11
2003/01 2003/02 2003/03 2003/04 2003/05 2003/06 2003/07 2003/08 2003/09 2003/10 2003/11 2003/12
2004/01 2004/02 2004/03 2004/04 2004/05 2004/06 2004/07 2004/08 2004/09 2004/10 2004/11 2004/12
2005/01 2005/02 2005/03 2005/04 2005/05 2005/06 2005/07 2005/08 2005/09 2005/10 2005/11 2005/12
2006/01 2006/02 2006/03 2006/04 2006/05 2006/06 2006/07 2006/08 2006/09 2006/10 2006/11 2006/12
2007/01 2007/02 2007/03 2007/04 2007/05 2007/06 2007/07 2007/08 2007/09 2007/10 2007/11 2007/12
2008/01 2008/02 2008/03 2008/04 2008/05 2008/06 2008/07 2008/08 2008/09 2008/10 2008/11 2008/12
2009/01 2009/02 2009/03 2009/04 2009/05 2009/06 2009/07 2009/08 2009/09 2009/10 2009/11 2009/12
2010/01 2010/02

### Browse by origin

A B C D F G H I J K L M N O P Q R S T U V W Y Z
Embassy Athens Embassy Asuncion Embassy Astana Embassy Asmara Embassy Ashgabat Embassy Apia Embassy Ankara Embassy Amman Embassy Algiers Embassy Addis Ababa Embassy Accra Embassy Abuja Embassy Abu Dhabi Embassy Abidjan Consulate Auckland Consulate Amsterdam Consulate Adana American Institute Taiwan, Taipei
Embassy Bujumbura Embassy Buenos Aires Embassy Budapest Embassy Bucharest Embassy Brussels Embassy Bridgetown Embassy Bratislava Embassy Brasilia Embassy Bogota Embassy Bishkek Embassy Bern Embassy Berlin Embassy Belmopan Embassy Belgrade Embassy Beirut Embassy Beijing Embassy Banjul Embassy Bangkok Embassy Bandar Seri Begawan Embassy Bamako Embassy Baku Embassy Baghdad Consulate Barcelona
Embassy Copenhagen Embassy Conakry Embassy Colombo Embassy Chisinau Embassy Caracas Embassy Canberra Embassy Cairo Consulate Curacao Consulate Ciudad Juarez Consulate Chennai Consulate Casablanca Consulate Cape Town Consulate Calgary
Embassy Dushanbe Embassy Dublin Embassy Doha Embassy Djibouti Embassy Dili Embassy Dhaka Embassy Dar Es Salaam Embassy Damascus Embassy Dakar Consulate Dubai
Embassy Freetown
Embassy Guatemala Embassy Gaborone Consulate Guayaquil Consulate Guadalajara
Embassy Helsinki Embassy Harare Embassy Hanoi Consulate Ho Chi Minh City Consulate Hermosillo Consulate Hamilton Consulate Hamburg Consulate Halifax
Iran RPO Dubai Embassy Islamabad Consulate Istanbul
Embassy Jakarta Consulate Jerusalem Consulate Jeddah
Embassy Kyiv Embassy Kuwait Embassy Kuala Lumpur Embassy Kinshasa Embassy Kingston Embassy Kigali Embassy Khartoum Embassy Kathmandu Embassy Kampala Embassy Kabul Consulate Kolkata
Embassy Luxembourg Embassy Luanda Embassy London Embassy Ljubljana Embassy Lisbon Embassy Lima Embassy Lilongwe Embassy La Paz Consulate Lahore Consulate Lagos
Mission USOSCE Mission USNATO Mission UNESCO Embassy Muscat Embassy Moscow Embassy Montevideo Embassy Monrovia Embassy Minsk Embassy Mexico Embassy Mbabane Embassy Maputo Embassy Manila Embassy Manama Embassy Managua Embassy Malabo Embassy Madrid Consulate Munich Consulate Mumbai Consulate Montreal Consulate Monterrey Consulate Milan Consulate Melbourne
Embassy Nicosia Embassy Niamey Embassy New Delhi Embassy Ndjamena Embassy Nassau Embassy Nairobi Consulate Naples Consulate Naha
Embassy Ouagadougou Embassy Ottawa Embassy Oslo
Embassy Pristina Embassy Pretoria Embassy Prague Embassy Port Of Spain Embassy Port Louis Embassy Port Au Prince Embassy Phnom Penh Embassy Paris Embassy Paramaribo Embassy Panama Consulate Peshawar
Embassy Quito Consulate Quebec
REO Basrah Embassy Rome Embassy Riyadh Embassy Riga Embassy Reykjavik Embassy Rangoon Embassy Rabat Consulate Rio De Janeiro Consulate Recife
Secretary of State Embassy Suva Embassy Stockholm Embassy Sofia Embassy Skopje Embassy Singapore Embassy Seoul Embassy Sarajevo Embassy Santo Domingo Embassy Santiago Embassy Sanaa Embassy San Salvador Embassy San Jose Consulate Strasbourg Consulate St Petersburg Consulate Shenyang Consulate Shanghai Consulate Sao Paulo
Embassy Tunis Embassy Tripoli Embassy Tokyo Embassy The Hague Embassy Tel Aviv Embassy Tehran Embassy Tegucigalpa Embassy Tbilisi Embassy Tashkent Embassy Tallinn Consulate Toronto Consulate Tijuana
USUN New York USEU Brussels US Office Almaty US Mission Geneva US Interests Section Havana US Delegation, Secretary UNVIE Embassy Ulaanbaatar
Embassy Vilnius Embassy Vienna Embassy Vatican Embassy Valletta Consulate Vladivostok Consulate Vancouver
Embassy Windhoek Embassy Wellington Embassy Warsaw
Embassy Yerevan Embassy Yaounde
Embassy Zagreb

### Browse by tag

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
ASEC AORC AMGT APER AU AF AS ACBAQ AFGHANISTAN AFIN AR AE AJ ADANA AEMR AG ATRN ADPM APECO AGAO AMED AX AM AL ADCO AA AECL AADP ABUD AMEX ACAO ANET AODE ASCH AY APEC AID AORG ASEAN AFSI AFSN AINF AGR AROC AO AMBASSADOR AFFAIRS ASIG ABLD ASUP AND ARM ARF AQ ATFN AC ACOA AORL ADM AUC AGMT ACABQ ASEX AFU ALOW AZ APCS AVERY ASECKFRDCVISKIRFPHUMSMIGEG AER AN AIT AMG AGRICULTURE AMCHAMS ACS
BR BA BD BL BO BF BU BILAT BEXP BRUSSELS BK BN BM BT BY BX BTIO BIDEN BG BE BP BBSR BC BTIU BWC BB BH BMGT
CH CY CA CU CS CO CVIS CPAS CMGT CE COUNTER CASC COUNTRY CJAN COUNTERTERRORISM CG CI CD CIDA CJUS CDG CBSA CEUDA CR CM CLMT CAC CBW CODEL COPUOS CWC CIC CW CBE CHR CFED CT CONS CIA CTM CDC CVR CF CLINTON CITEL CLEARANCE COE CN CACS CAN CONDOLEEZZA CB CSW CITT CARSON CNARC CACM CDB CARICOM COM CROS CAPC CTR CV CKGR CBC CL CICTE CIS
DR DHS DA DJ DEA DPRK DEPT DOMESTIC DEAX DOE DS DAO DCM DO DE DK DEFENSE DTRA DISENGAGEMENT DOD
ECON EFIN ELAB ETRD EIND EC EINV EAGR ENRG ETTC EAID EPET ELTN EWWT EAIR EFIS EMIN EG EU ER EUN EPA ENVI EXTERNAL ECPS ENGR ETRC ECIN EN EI ELN ET EINT ETRDEINVTINTCS ES ETRDEINVECINPGOVCS EZ ETRO EDU ETRN EFTA EAIG EK EUREM EURN ECONCS ECONOMICS ENVR ELECTIONS EAP ENIV ECONOMY ESA EINN ECONOMIC EIAR EXBS ECA ECUN EINDETRD EUR EREL EUC ESENV ECONEFIN ECIP ENERG ENNP EFINECONCS EFIM ENGY EAIDS EINVEFIN EINVETC EUMEM ETRA ETC ERNG ETRDECONWTOCS EUNCH ECINECONCS EINVECONSENVCSJA EXIM ERD EEPET
FR FREEDOM FTA FJ FARC FI FTAA FAC FBI FOREIGN FOI FDA FM FAO FAS FINR FOR FINANCE FMLN FO FISO
GM GV GOI GOV GL GAERC GH GT GG GA GY GR GF GCC GE GZ GTIP GERARD GLOBAL GANGS GAZA GTMO
HA HR HUMAN HO HK HU HILLARY HUMOR HI HSTC HURI HYMPSK HEBRON
IR IS IZ IAEA IO IAHRC ID IC IT IRAQI IWC IN IL ISLAMISTS IV ICAO INDO ITPHUM ITPGOV ITALIAN IPR ICRC INTERPOL IQ IBET IMO INR ITRA INTERNAL ICJ ICTY IRS ILO INRA INRO ISRAELI IEA INRB ITALY ITU IBRD IIP ILC INTELSAT IZPREL IMF INMARSAT IRAJ IDA ICTR IA IGAD IF IDP ITF ISRAEL IEFIN IRC IACI
JA JUS JO JP JOSEPH JM JAMES JOHNNIE JOHN
KN KCRM KOMC KNNPMNUC KIPR KPAL KWBG KSCA KFRD KNNP KUNR KTIP KWMN KSTC KFLU KOLY KISL KPAO KMDR KJUS KSTH KDEM KCOR KIRF KAWC KU KTFN KWAC KNPP KERG KSEO KACT KHLS KZ KGHG KTIA KFRDCVISCMGTCASCKOCIASECPHUMSMIGEG KCRCM KE KPKO KCIP KDRG KVPR KV KIDE KICC KPRP KBIO KSUM KGIT KCFE KG KBTS KFLO KMPI KS KGIC KPAI KHSA KTLA KSEP KTEX KFSC KOCI KHDP KPLS KTDB KHIV KCSY KSAC KTRD KID KMRS KOM KSAF KRVC KR KMOC KNAR KIRC KBCT KSPR KFIN KBTR KJUST KNEI KAWK KGCC KMCA KREL KMFO KFRDKIRFCVISCMGTKOCIASECPHUMSMIGEG KFTFN KVRP KCOM KO KLIG KAID KVIR KNSD KHUM KSEC KRAD KPRV KCMR KPWR KCHG KIFR KCFC KICA KPIN KSCI KESS KDEV KTBT KCRS KCGC KOMS KRIM KTER KREC KPOA KWWMN KRGY KPAK KWNM KMIG KDDG KRFD KWMM KWMNCS KX KRCM KPAONZ KNUC KDEMAF KNUP
LY LE LO LG LH LI LTTE LAB LOG LA LT LU LABOR
MARR MOPS MASS MCAP MTCRE MNUC MIL MX MEDIA MO MPOS MU ML MA MP MY MERCOSUR MG MD MW MK MAS MEETINGS MR MT MI MOPPS MASC MTS MLS MILI MAR MTRE MEPN MAPP MTCR MEPI MQADHAFI MAPS MARAD MASSMNUC MEPP MCC MZ MILITARY MDC MRCRE MC MV MIK MUCN
NATO NL NZ NPT NI NAFTA NU NDP NIPP NP NPA NG NRR NO NSC NEW NE NH NR NA NS NSF NZUS NATIONAL NSG NC NT NAR NK NGO NV NSFO NSSP NASA NW NPG NORAD NATOPREL
OTRA OAS OPRC OIIP OVIP OREP OPDC OEXC OSCE OFFICIALS OMIG ODIP OFDP OECD OPIC OBSP OPCW OFDA OTR OSAC OSCI ON OCII OES OVP OIC OPAD OIE OHUM OCS
PREL PGOV PK PHUM PINS PARM PA PTER PINR PREF PHSA PBTS PBIO PO POL PE PARMS PM PROG PL PAK POLITICS PORG PTBS PNAT PUNE POLICY PDOV PCI PROP PGOVSMIGKCRMKWMNPHUMCVISKFRDCA PBT PP PS PAO PG PY PTERE PGOF PALESTINIAN PKFK PSOE PEPR PPA PINT PMAR PRELP PSEPC PREFA PGOVE PINF PHUMPGOV PNG PMIL PGOC PFOR PCUL PLN PSA PGIV POLINT PAS POGOV PHUMPREL PHUMBA PEL PGGV PNR PHALANAGE PARTY PGOVLO PRAM PHUS PDEM PECON PF POV PROV PRL PREO PAHO PHUH PSI PINL PU PRGOV PAIGH POLITICAL PARTIES POSTS
QA
RS RU REACTION REPORT REGION RIGHTS RO RW RCMP RF RM RFE RSP RP RICE ROBERT ROOD RELATIONS RIGHTSPOLMIL RUPREL RSO
SU SNAR SO SOCI SW SENV SMIG SCUL SP SZ SENVKGHG SR SY SA SYRIA SF SI SC SWE SARS STEINBERG SN SG SIPRS ST SEVN SL SPCE SNARIZ SSA SNARCS SYR SK SPCVIS SHUM SIPDIS SHI SH SOFA SEN SNARN SAARC SAN SANC SCRS
TRGY TBIO TU TF TERRORISM TI TSPL TPHY TH TIP TSPA TC TO TW TX TZ TNGD TT TL TV TFIN TS TRSY TINT TN TURKEY TBID TD TK TR THPY TP TAGS
UNGA UN UK US UNC UNSC USUN UG UP UY USEU UNESCO USPS USTR UZ UNHRC UNO UNMIK UNAUS UNHCR UNCHR USAID UNVIE UAE USOAS UNFICYP UV UNEP UNODC UNCHS UNIDROIT UNDESCO UNDC UNCHC UNDP UNCND USNC UNPUOS UNICEF UNCSD UE
VT VE VTPREL VM VZ VI VTIZ VAT VN VC VTEG
WS WTO WTRO WTRQ WI WZ WHO WFP WBG WITH WWARD WHA WB WIPO WA WMO WMD WHTI WEU
XA XF XM XL XW XV XR XB XU XY XH XG XE XK XX XD XI XS XT XTAG XQ XZ XC
YE YM YI YMCS
ZI ZO ZU ZEALAND ZK ZR ZF ZP ZN ZA ZB ZOELLICK ZL ZJ ZANU

### Browse by classification

CONFIDENTIAL CONFIDENTIAL//NOFORN SECRET SECRET//NOFORN UNCLASSIFIED UNCLASSIFIED//FOR OFFICIAL USE ONLY

### Community resources

Follow us on Twitter Check our Reddit Twitter this Digg this page Contact us on IRC

courage is contagious

### Viewing cable 05WELLINGTON577, NEW ZEALAND AIMING TO STEM SALE OF PRESCRIPTION

If you are new to these pages, please read an introduction on the structure of a cable as well as how to discuss them with others. See also the FAQs
Understanding cables
Every cable message consists of three parts:

- The top box shows each cables unique reference number, when and by whom it originally was sent, and what its initial classification was.
- The middle box contains the header information that is associated with the cable. It includes information about the receiver(s) as well as a general subject.
- The bottom box presents the body of the cable. The opening can contain a more specific subject, references to other cables (browse by origin to find them) or additional comment. This is followed by the main contents of the cable: a summary, a collection of specific topics and a comment section.

To understand the justification used for the classification of each cable, please use this WikiSource article as reference.
Discussing cables
If you find meaningful or important information in a cable, please link directly to its unique reference number. Linking to a specific paragraph in the body of a cable is also possible by copying the appropriate link (to be found at theparagraph symbol). Please mark messages for social networking services like Twitter with the hash tags #cablegate and a hash containing the reference ID e.g. #05WELLINGTON577.

Reference ID | Created | Released | Classification | Origin
--- | --- | --- | --- | ---
05WELLINGTON577 | 2005-07-29 01:01 | 2011-04-28 00:12 | UNCLASSIFIED//FOR OFFICIAL USE ONLY | Embassy Wellington

`

    This record is a partial extract of the original cable. The full text of the original cable is not available.

` `

    UNCLAS SECTION 01 OF 02 WELLINGTON 000577

    SIPDIS

    DEPARTMENT FOR EAP/ANP-TRAMSEY, EB/TPP/IPE-BSOILA AND
    EB/TPP/BTA/ANA-RARMSTRONG
    STATE PASS TO USTR FOR LCOEN
    COMMERCE FOR 4530/ITA/MAC/AP/OSAO/ABENAISSA

    SENSITIVE

    E.O. 12958: N/A
    TAGS: ETRD ECON KIPR NZ
    SUBJECT: NEW ZEALAND AIMING TO STEM SALE OF PRESCRIPTION
    DRUGS BACK TO U.S.

    REF: (A) WELLINGTON 119; (B) 04 WELLINGTON 1037

    ¶1. (SBU) Summary: With selected medicines much cheaper in New
    Zealand than in the United States, efforts are under way to
    impede the ability of Americans to purchase prescription drugs
    from New Zealand.  The New Zealand Ministry of Health is
    tightening the law to prevent doctors from prescribing medicines
    to non-New Zealanders.  Both the New Zealand agency that decides
    which medicines are publicly funded and its usual nemesis, the
    pharmaceutical industry, are working on other plans to counter
    any flow of prescription drugs back to the United States.  End
    summary.

    Affordable and safe
    -------------------
    ¶2. (U) Hard bargaining with pharmaceutical companies by New
    Zealand's national health care system ensures that its
    pharmaceutical prices are among the lowest in the OECD.  Under
    that system, the Pharmaceutical Management Agency (PHARMAC)
    decides which medicines will be subsidized by the government and
    how much reimbursement will be paid for each pharmaceutical (ref
    B).  The agency's bulk drug purchases account for 73 percent of
    prescription drug expenditures in New Zealand.  PHARMAC's
    practices result in prescription drug prices that are roughly 40
    percent less than those in the United States.  The perception
    that New Zealand maintains high safety standards for medications
    makes its more affordable drugs even more attractive to U.S.
    consumers.

    ¶3. (U) So far, however, only a trickle of U.S.-made drugs is
    brought to New Zealand and then re-imported back to the United
    States, according to PHARMAC and the industry.  That amount is
    expected to remain insignificant.  In fact, until recently, the
    New Zealand government assumed that it would be nearly impossible
    for U.S. consumers to make retail purchases of prescription
    medicines from New Zealand.  The Medicines Act 1981 allows
    doctors to prescribe medications only to patients under their
    care, and regulations that took effect in November 2000 forbid
    pharmacists from selling drugs overseas to any individual who
    does not have a prescription from a New Zealand doctor.
    (Previously, only the sale of prescription drugs to New
    Zealanders without a prescription was illegal.)  The regulations
    also extend the Medicines Act restrictions to drug sales over the
    Internet.

    ¶4. (SBU) However, in a recent case against a doctor who wrote
    bulk prescriptions over the Internet, the court broadly
    interpreted whether the patients were "under his or her care" and
    acquitted him of breaching the Medicines Act, according to Kevin
    Moar of the Ministry of Health's Sector Policy Directorate.  The
    government has appealed the decision to the High Court.  (The
    government has successfully prosecuted three Internet-based
    operations under the Medicines Act for retail sales of
    prescription medicines to overseas buyers without a prescription.
    One pharmacy's overseas sales accounted for 70 percent of New
    Zealand's Viagra allotment in 2002.)

    ¶5. (SBU) Moar said the Ministry of Health is working to change
    the law to restrict doctors to prescribing medications only for
    patients who are physically present in New Zealand or for New
    Zealand residents who are temporarily traveling overseas.  The
    amended law is expected to prevent retail sales of prescription
    medicines at subsidized prices to overseas consumers.  The
    government has set a deadline of July 2006 for the law to be
    changed, as part of an amendment that also would allow the
    startup of a joint Australia-New Zealand agency to regulate
    therapeutic products in both countries (ref A).

    ¶6. (U) Meanwhile, the amended law would not prevent re-
    importation of over-the-counter medicines or of prescription
    drugs sold wholesale, or at non-subsidized prices.  Wholesale
    prices for newer drugs are generally not that different in New
    Zealand and the United States.  However, wholesale prices for
    older drugs -- especially those older than 10 years -- and for
    over-the-counter medicines are much lower in New Zealand,
    according to PHARMAC's chief executive officer, Wayne McNee.  New
    Zealand pharmacies with wholesale licenses can sell medicines
    directly to the United States.

    A watchful eye
    --------------
    ¶7. (SBU) To counter such sales at the wholesale level,
    pharmaceutical companies in New Zealand have been modifying their
    contracts with wholesalers, restricting their onward sales only
    to New Zealand.  Pfizer, for example, altered its wholesalers'
    contracts after detecting substantial quantities of its drugs
    being sold from New Zealand to Asia.  If the industry were to
    discover large flows of its products being re-imported back to
    the United States, McNee fears it would restrict pharmaceutical
    supplies in New Zealand and raise their prices.  The drug
    companies certainly are monitoring pharmaceutical exports out of
    the country and "will move to protect themselves" if the problem
    becomes significant, said Lesley Clarke, chief executive officer
    of the industry association Researched Medicines Industry of New
    Zealand.  Meanwhile, she said, the industry considers a change in
    the law as the best way to prevent re-importation.

    ¶8. (SBU) McNee said PHARMAC stands ready to respond if re-
    importation causes pharmaceutical companies to cut the supply or
    boost their prices of prescription medicines in New Zealand.  In
    contracts with pharmaceutical companies, PHARMAC would increase
    the use of rebate arrangements.  Such contracts would stipulate
    that a drug would be sold at New Zealand pharmacies at what
    effectively is the international price, but that the drug company
    would reimburse PHARMAC for a set portion of that price.  This
    arrangement would preserve the agency's cost-savings, while also
    discouraging exports of the drug since its retail price in New
    Zealand would match that in the United States.  PHARMAC's use of
    rebates has increased dramatically in recent years, according to
    Stuart Bruce, communications and external relations manager for
    PHARMAC.  For example, rebates rose 29 percent over the past
    year, from NZ $80 million (US $54.5 million) to NZ $103 million
    ($70 million).

    ¶9. (U) The Medical Council of New Zealand, which registers
    doctors to practice medicine in New Zealand and monitors their
    standards and conduct, also is hoping to strengthen its
    guidelines for the prescribing of medications.  Its current
    guidelines mirror the Medicines Act in specifying that a doctor
    should prescribe medicines only to patients "under his or her
    care" and only to patients with which the doctor has had at least
    one face-to-face consultation.  Tania Turfrey, the council's
    registrar, said that although several doctors have violated those
    guidelines, no doctor has been disciplined under them.  She said
    the council plans to rewrite the guidelines later this year to
    include a stronger statement on the ethical dispensing of
    medicines.

    ¶10. (U) Comment: Normally, the government and the pharmaceutical
    industry are at odds, disputing pharmaceutical pricing policies
    that the government touts as reducing its citizens' health-care
    costs and that the industry says are denying it adequate return
    on its investment.  In this case, however, both agree on the need
    to prevent the re-importation of pharmaceuticals from New Zealand
    back to the United States.  While the government does not
    consider this issue to be significant yet, it is poised to act if
    its pharmaceutical supplies and prices are affected.

    BURNETT

`