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This was to keep them moist during transit from the North American colonies to the rest of the Empire

In the early 1600s, James I of England wrote that tobacco was dangerous to the lungs,[1] and yet hundreds of years later, tobacco companies in the USA were using doctors to promote the idea that smoking was safe

Retrieved 2002-10-22

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A group get together, buys tobacco legally in the USA, smuggles it into Canada, converts it into cigarettes in factories on indigenous land, and then sells the cigarettes to consumers at a huge discount to the highly-taxed legal product