Day 067 - 15 Dec 94 - Page 58


     
     1        governments because we believe in free trade.
     2
     3        Also they have a big disadvantage in distribution.  If you
     4        want to move a small product it will cost you a lot.  We
     5        move a lot of product from the US that goes to a lot of the
     6        countries that we have restaurants in too.  If we add up a
     7        small part that added cost is very small as compared to
     8        when the only product you can export is beef.  So,
     9        competitively it is very difficult for them to be
    10        competitive and logistic-wise it is also difficult.
    11
    12   MR. JUSTICE BELL:  On N, McDonald's to Costa Rica, that is
    13        Hamburglar, is it, with burgers falling all over the place
    14        in a burger tie?  If you look at tab N, the reply to you,
    15        the one you had difficulty with yesterday.  I was so
    16        gripped by the Spanish I did not look at the picture.  If
    17        you turn back to the beginning of tab N, is that
    18        Hamburglar?
    19        A.  No, it is one of our characters.
    20
    21   MR. JUSTICE BELL:  Are you specifically going to ask him about
    22        the answer on N?
    23
    24   MR. MORRIS:  We sort of jumped ahead.  I cannot remember why we
    25        jumped ahead now.
    26
    27   MR. JUSTICE BELL:  It is just while you are on Costa Rica at the
    28        moment if you are going to ask about that I wondered if
    29        this was the moment.
    30
    31   MR. MORRIS:  Yes.  Did you say it was not economic to import
    32        from Costa Rica?
    33        A.  I said part of the reason in importing into Costa Rica,
    34        we cannot by law import beef or chicken.
    35
    36   Q.   But I am saying import from Costa Rica, if Costa Rica wants
    37        to export to you, you said you could not do that for
    38        economic reasons?
    39        A.  I said that was one of the reasons to be considered.
    40
    41   Q.   You said they are export capable?
    42        A.  Yes.
    43
    44   Q.   But there would be economic considerations?
    45        A.  No.  When we define "export capable" is when the
    46        supplier is capable of meeting our specifications and
    47        requirements, they have the right attitude and we want to
    48        develop that supplier for other reasons as a zone supplier
    49        as opposed to a local supplier; they have proven through
    50        time that they are a reliable supplier that would 
    51        consistently meet our specs. That is when we define them as 
    52        a capable supplier.  It has nothing to do with the 
    53        economics.
    54
    55   Q.   So why do you not take beef from Costa Rica then in the
    56        USA?
    57        A.  Why do I not right now?  Because we do not need to,
    58        there is no need.
    59
    60   Q.   Or in other countries?  On this one it says it is exporting

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