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THE SMOKING & IIFALTII SITUATION 1. Let us assume that in five years' time, we are able to market a ctRarette whose smoke is significantly less carcinogenic and irritating as measured by animal tests. Since the anti-smokers now adduce bio-assay results in support of their attack on the industry, they will then have to admit this support will be weakened. This will be the turnin~ point in the fight and while tremendous and different problems will remain it is a fair basis for forward policy to assume that in a further *en years, that is plus fifteen from now, smoking and health as an issue will be confined to the identification of those who are allergic, the susceptible minority. The policita] issue ~s to surmount these crucial five years with as little damage as possible to the industry and with as few imposed restrictions as possible, it is obvious that the handling of this political issue is o£ great importance and should be contrasted carefully with the possi- bilities of immediate profit, lJnfortunatel~, the industry is doin~ Just the opposite as can be seen from'.the introduction of the lO0 mm. cigarette and increasing the inhalability of ci~arettos. BATCo document for Province of British Columbia 8 November 2000 BATCO 00290360

3. The task of the scientist is to make the assumption come true, that is within five }'ears to produce and bio-test at l..a~t one acceptable new cigarette with proved lower animal irritation and carcinogenic reaction to the smoke. 4. Ne as a Group, have the means to do this, our current knowledge suggests several promising candidates for this nex¢ cigarette. But the query is whether we can combine and marshall our forcc.¢ sufficiently skillfully to attain this objective within this crucial ~erlod. But, and this is essential, we ~ust ,Io this without dl~inishlng too ~uch ~ur current work on product development since, we, as a firou~, cannot afford to follow pollcics that would adversely affect our share of the market vis-a-vis other tobacco companies. 5. Serious thought should a]so be given to the problems of marketing the new cigarette. That these can be overcome is suggested hy the incident of the ~trickman filter. Positive action is required now in three areas: a. Company policy (para 2) Marketing policy (para 5) c. Scientific pollcy (paras 3 and 4) Only the last one lies within the scope of our BATCo document for Province of British Columbia 8 November 2000 BATCO 00290361

- 3 - decisions. 7. There is some ~easure of cooperation between different tobacco co~panies but it is too much to hope that this can be increased to a point where there would be effective joint action on a new cignrctto. Discussion of financial details ~lone would stultify the project. The most we should assume is that the present joint action, for example Harrogate nnd Lokshcdt, continues, thus the Group must tackle this problem alone. a. Normal scientific procedure would be first to work out and prove the efficacy o£ whatever prlncip1es it is proposed to apply in the new cigarette and then tackle the problems of manufacturing the cip, arette in a saleable ~orm, but I submit that the urgency of the situation is such that there is not tim~ for this. On this occasion, we must re- verse the procedure a~d apply now all of the several possible principles and build them into smokeable cigarettes. As soon as one is a manufactureable and marketable reality, it should be subjected to blo-assay investigation. The most pro.~isin~ candidates should be pivcn priority In the test facilities. This procedure is the only one that offers any hope of having at least one new cigarette in five years' time. BATCo document for Province of British Columbia 8 November 2000 BATCO 00290362

9. Prlnciples that see~ posslble to incorporate in the nc~.: cigarette arc: a. Chemical additives to the tobacco b. New filters c. Modification of the tobacco, e.g. ~ore PCL, fermentation, different cuts/inch d. The Ariel vrinciple. ]n. h very important line of advance would seem to be the development of the non-inhaled cigarette, but while this probably contains the ultimate solution, it should not, in mF opinion, be ~ivcn high priority in this first five year programme. This is designed to fight back the anti-smoklng lobby and must produce quick results. It is they who have made such a parade of animal bio-~ssay results and they will have to admit the value of a cigarette with lower animal carcinogenic effect. The "non-inhaled" cigar- ette would be more difficult to use in this w~y, and in addition, its introduction to the public will he a very delicate proceeding. BATCo document for Province of British Columbia 8 November 2000 BATCO 00290363