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Subject: June 23 Summit Conference Date: June 5, 1980 on Byssinosis Issues To: Mr. Max Crohn From: Dennis Durden After we talked today, I had other discussions of byssinosis • issues with Joe, Virgil and Gene. When I reflected on our conversation in the light of these later chats, I became con- cerned that perhaps we weren't hearing each other fully this morning. My concerns are such that I thought I'd better send you this s~Immary memo to help foster full understanding. As succinctly as possible, here's my latest thinking on key elements in the controversy: I. In itself, the s,_immit meeting on June 23rd will not solve the basic public affairs issues and will cer- tainly not take care of the basic financial problem that the textile people are trying to solve; namely, who's going to pay for compensation. In point of fact, no amount of goodwill will solve that problem. Gene feels that, at best, the meeting will buy us a short cessation of inflammatory media actions by textile management. I agree with Gene. 2. The textile people believe some kind of legislation will provide their salvation. Further, they want us to help them get legislative relief by using our good offices, networks, resources, etc., in the General Assembly. I am not familiar with all the legislative options open to them. I did hear, very clearly, your opinion that on a "due process" basis, we could make successful court challenges of certain types of legis- lation. Still, I would very much like to know what other legislative options are open to them. Hence, my suggestion that we counsel with someone in Raleigh who has a regular compensation practice plus familiarity with the surrounding body of law. 3. I appreciate your high regard for our political skillsJ and legislative acumen. However, I reiterate that if we do have hand to in the General Assembly, it depends a play on our "ace" and our "ace" in turn depends on our be.ing able to make common cause between farmers and textile. ............. workers, o

4. Therefore, I can't recon~nend any strategy that would finesse our ace byhaving us take even tacit positions that seem to go against either the farm con~nunity or textile worker. Specifically, I have great reservations about our joining in any legislative venture to try and get tighter statutory definitions of byssinosis. Joe Abely pointed out that this would finesse our ace. Also, action by the study commission seems to have accomplished this administratively. 5. In all of this, I have another concern and that is main- taining the goodwill of the non-textile business leadership in the state. Sat being the case, I would be reluctant to join in any effort that would pass along the compensation burden to other industries. These other business leaders, bankers, insurance, utilities, etc., are vital parts of our strength. 6. This brings me then quite close to the heart ofmy problem. I'ii take a step here to recap: - " a. We can't endors~ any~leglslatlve or judicialor administrative proposals that would result in the tobacco industry's or the tobacco ms_nufacturing segment of the industry paying byssinosls claims. Everyone is agreed on that. b. ~n order to preserve our "ace," we canlt take part in .anypost facto legislative or admlnlstrative efforts undertak~ to t--f~ten up medical definitions of byssinosis. c. To keep us whole with the rest of the Carolina business i community, we can't take part in any administrative or i judicial efforts that would lead to the textile industry's compensations problems' being spread among all North Carolina employers. Currently, we seem to have a strong position_with the rest of the Carolina business community because they feel (or could be led to feel) that the tex- tile industry went beyond the pale when their ads openly and publicly attacked us without warning - a business community Pearl Harbor. 7. This brings me to the heart of my problem. What exactly do we hope to accomplish by getting together with the textile people on the 23rd? In other words, what are our goals, what's our script and what do we want to tell the media or our public friends or our business friends when they learn about the meeting, either before or after. 8. My answer to my problem Isthat we can't accomplish anything in the meeting or afterwards that will be of substantive help to the textile managers at least based on what we-know.

9. It is this situation and our limited knowledge that led me to urge our retaining some k6owledgeable practitioner in compensation law to research both administrative and judicial procedures and histc.ry of this issue to see if possibly there is something that is not apparent. Maybe there is a basis of some kind of mutually constructive agenda and action program with the textile managers, but at the moment, I see none based on what we know. I0. If there are no substantive results to be expected from the meeting, do we still have the meeting? I answer "yes" based on what I know now. We have the meeting for the record, to preserve appearances and to keep us whole with public leaders and leaders in the North Carolina business community. Such meetings are hard to script, but can be very supportive of our long-term position. II. Therefore, it is imperative that we line out our strategy, our agenda for the meeting and our "party line" as soon as possible. Other issues are connected to byssinosis and Virgil can be an "invisible man" only so long at the.short session of the General Assembly. If there is a..pat~ where we can walk together withthe textile managers, he needs to know this as soon as possible. Similarly, if. there's to be an "appearances" meeting only, he needs to know thls. In short, he'll need to know how to talk to key people in his network who are going to inevitably question him about this issue. Virgil's effectiveness on the Carolina state tax issues, excise tax acceleration, and other matters will all suffe~ until we have a clear picture of where we want to go with the byssinosis. To me, clarity will come only when we're certain exactly what our legislative and admini- strative options are with regard to the textile people. I Ipok forward to receiving the briefs and opinions on the latest ap~ellate decision, and at all times will be happy to discuss this matter further with you. Currently, th~re'~ nothing that has a higher priorlty in our portfolio of actlvit~es for P, JRT. Denn urden pag cc Mr. J. F. Abely P.S. After dictating this~ Gene. ..... Mr. Wm. D. Hobbs Ainsworth wisely suggested Mr. E. A. Horrlgan that we look at South Carol%ha Mr~ C. A. Tucker where we may also. have same Mr. V. L. McBride problem, but radically dlff#r,ent Mr. W. E. Ainsworth equation. He is trying a q~iet tap through the Institute. ~I~ that doesn't work, I have a~n who can go to ground for