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'i R.J.Reynold.~ Industlries, In¢: ~,nston-oal~em, N. C. 27102' Max H. Cr,ohn,,Jt~. A,ssistanli General Counsel (919)~748-7,311 December 9, 1977 To. Committee of Counsel At the Committee of Counsel meeting on December 8, I mentionedi the subcommittee which I have been appointed to chair that will begin assembling witnesses and witness statements to be used in an appropriate forum wh,ere the effects of smoke on. the nonsmoker is at issue. For example, such witnesses or statements might be used in a court case such as Mitchell in New Jersey, FENSR in D.C. or the cigar store owner's action in Ber~i-ey; in a regulatory hearing such: as in New Jersey, the Social Security Administration or Department of Defense; in. a carefully orchestrated symposium; in congression,al over- site hearings; or before a state or local legislative body. As you will recall, when the decision was made to present live medical witnesses for the New Jersey Public Health Commission, we had very little time and it was only because of the super-human efforts of Bill Shinn, Don Hoel, Tim Finnegan and Ed Jacob that we were able to put on the quality performance we did. If we do not fully prepare ourselves, when the next bell rings, we very well might not be ready, Special Account No. 4 has been used to pay expenses and fees connected with expert consultations and statement preparation. Dr. Aviado's fees and expenses, for example, have been paid from this account. The account is audited and information sent to all participating companies on a regular basis. A copy of the la:st audit report is attached, Earlier this year, counsel discussed the payment of expenditures connected with obta:ining public smoking witnesses from the account and I was under the impression that ~such expenditures were approved. It appears, however, that this may not have been as clear as we thought,

R.~r :ynolds Industries, Inc. WiCk,on-Salem, N. C. 27102 Committee of Counsel Page 2 December 9, 1977 In any event, authorization is requested to use the account to compensate such potential witnesses for consultations, for the preparation of statements and for expenses attendant thereto. I am unable to predict what the amounts paidi would be with any degree of certainty. Some clearance mechanism that would operate on a reasonably fast basis could be established for amounts paid (a) in excess of a certain level to any one witness or (b) over a certain total dollar amount within a given period of time. Major undertakin,gs (such as Dr. Aviado's fees for reviewing literature -- wh.ich, incidentally, we hope he will be able to continue) could be handled as they have been in the past by obtaining approval on a project by project basis. We could use a system, perhaps, of approval being assumed if no objection, was raised within five days (or some such period). It is not unlikely that the fees to be paid will include non-scientific witnesses (e.g., philosophical observations with, respect So whether there is a need for ad;ditional re- strictions) or technical services (carbon monoxide testing, for example). I have asked Messrs. Shinn, Hoel, Jacob'and Finnegan to begin identifying, medical witnesses, and where possible, preparing statements for them. Messrs. Morgan and Temko have been requested to identify civil libertarians, constir tutional lawyers and the like who could address smokers' rights and the question of majority abuse. Ray Oliverio and Blucher Ehringhaus will gather names of fire marshals, police chiefs and others who are involved in enforcing restrictive legis- lation. The next meeting of our subcommittee is on the morning of J~anuary 12 in Washington~ We hope at that time to have a progress report which I, of course, will share with. you. MHC:rch cc: Messrs. Shinn Jacob Ehringhaus Sincerely, Max Its. Crohn,