Tobacco Documents Online

TO: FROM: DATE: RE: MEMORANDUM H. F. Frlgon I. W. Hughes ~:J. A1ar R. A. Pittman E. E. Kohnhorst J. K. Wells R. H.' Sachs December 9, 1983 Committee of Counsel Meeting - 12/8/83 REC£1VED DEC 1 2 7983 JOHN ALAR Fire Safe Cigarettes - John Rupp (from Covington & Burllng) reported that we are gaining some support from within the Internatlonal Association of Fire Chiefs. In the past they have supported Congressman Noakley's bit1. Thls year, after hearing a presentation from the tobacco Industry, led b~ Dr. Spears from LorI11ard, IAFC set up a committee to reconsider their position. The efforts we have put behind buildlng a relatlonshlp with the organization may be paying off. The companies agreed to proceed wlth an Industry examination of Ignition propensity In order to develop a model for a testing methodology. Scientists from each company will meet to discuss this• Covington & ~urllng w~11 provide counsel at these meetings for the purpose of antitrust oversight. Rupp reported on efforts to get a meeting wlth Moakley to see if there Is any way to reconcile our position. There are two troublesome areas: federal preemption and trade secret confldentlallty. On the first Issue, our position has been ~j~ push for "perpetual" preemption. Rupp and others think this Is unreallstlc. Moakley has accepted the Idea of some federal preemption and Rupp would llke to see us accept 18 months after pubIicatlon of the study. He is also seeking more flexibility on the trade secrets issue. He mentioned a11owlng information to be turned over to permanent Congresslonal committees "wlth some safeguards"• Rupp would llke to hear from each of the companies on this by the mlddle of next week. Warning Notice Leglslatlon - Kornegay reported on the present status of the pending leglslatlon. TI's federal activities division continues Its efforts at the primary

-2- targets In the House (Gore, Sinar, Eckhart, Swift, and Sikorsky). Gore is considered too weak in thls Issue, so they are concentrating on Sinar. In the Senate," there is not great resistance by Trlbble and Ford although they have told us they need to have something more than we ha~e already Indicated In order to get the bill out of commlttee.. Philip Morris is concerned that whatever we propose will not be seen as our bottom llne but as a bargaining posltlon. Chilcote shared thls concern• CAB Smokln9 Rules , Final publlc comments are due 12/27. Horace and Sam discussed thelr plans. We discussed the possibility of codifying present regulations in a statute. Thls w111 be pursued. Taxes - Kornegay opened that If the Admlnlstratlon decldes ~-~-~tack the deflclt In 1984, we could see addltlonal taxlng proposais. Smoklng In the Workplace - We ~Iscussed the draft of a m6"deI ordinance prepared by C&B. Temko lamented that suggestion to add language for some sort of "equa~ accommodation" for smokers was dlfflcult. Mozlngo does not need the modeI ordinance at present. Shook, Hardy reported on a Swedish case wherein descendants of a Iung cancer victim were awarded compensation because of prolonged exposure to tobacco smoke at work. (I talked to Morlnl about thls case. He was aware of ~t, and is presently checking It out.) A settlement agreement Ss near in the Lee case (Mass.) and an accommodation has been worked out In the Orange County (Cal.) case. There was a deep split of opinion with respect to commissioning scientific studies, using Battelle, with respect t6"~smoklng In the workpiace. B&W and LorIIIard are In favor of proceeding. ATCo. Is strongly against It. R3R and PM both expressed grave reservations but were not In a position to give a flnal answer. It looks like its dead. Tax Treatment of Grass Roots Lobbying - Temko reported that the Treasury is still reviewing this issue and that It Is concelvable that new regulatlons could be issued In the Spring. C&B will keep an eye on It. /dy5482t R. H. S.