Tobacco Documents Online

OUTLINE - REVISED MDP - PRESENTATION (5 mins.) I. Organizational Overview - Slide (SBW) (15 mins.) II. Smoking and Health - Primary (WWJ) Background - (# of cases, no losses, notices, ho settlements) Policy Statement - Slide Highlight salient provisions to make ~ points - Controversy ~ - Body of knowledge we must respond to - Understand our products better than anyone else - Modify Products - N~w - "as found in" (2 mins.) III. Secondary/Passive Smoking Issue (SBW) " (5 mins.) IV. Self-Extinguishing Cigarettes (WWJ) (i0 mins.) V. Rot~'ing Warning Legislation (WWJ) - Status - Problems we have with it. (2 mins.) VI. Barclay (SBW) (15 mins.) VII "Questions and Answers

SELF EXTINGUISHING CIGARETTE o Another key issue facing cigarette industry o Opponents' Claim: - Cigarettes a primary cause of fires and dealths and - Cigarettes Company's should be required to manufacture cigarettes that will go out (like a cigar) if left unattended - Also claimthat we have technology and are not using it because cigarettes that burn fast are more profitable. o Wron~ on all counts although we share their concern about cigarette-related fires and are working on solutions. - Statistics grossly over inflated - Pressure on fire chiefs for causes before completing investigation - Recent statistics show 20% decline in cigarette- related fires. - Increased use of smoke detectors - Efforts of UFAC in developing fire-resistant products (funded in part by Tobacco) - Tests show that furniture manufactured to UFAC standards will not be ignited by cigarettes. o Current Problem: - Old Furniture - Furniture not manufactured to UFAC standards solution ~ '~:~ " • .... .: ...... - Chemical spray (works, in home, inexpensive) o Technology does not exist to make a cigarette which will not start fires and still deliver smoking satisfaction. o R & D working hard on own and with suppliers but everything tried to date either doesn't work, unsafe or increases T&N. o Some opponents suggest we already have a S/E cigarette - MORE Not so - although We did receive some consumer COmplaints - Never reliably/consistantly went out - Never fire-safe '~

WARNING LEGISLATION o Three bills presently pending: 2 in Senate 1 in House o Waxman and P~ckwood Bills are stalled in committee but would substitute a series of health - specific warnings and require that they be rotated periodically. o Hatch Bill as reported out of Committee would subsitute a single health - specific warning. SLIDE o Stated purpose - inform the public of risks associated with smoking. - -~ Nonsense - 90% aware Real Purpose - is to deter which is just a step away from prohibition o Two aspects of Hatch Bill particularly troublesome - - Finding~ - state as scientific fact matters which are the subject of an unresolved scientific controversy - Warning - which only makes matters worse o Contrast present w/ Proposed Warning o Real concern from a legal standpoint is that this legislation will encourage a new round of litigation against the Tobacco Industry.

o Lawsuits o Legislation - 20 states - Moakley - compromise

CURRENT WARNINGS "Warning: The Surgeon General Has Determined That Cigarette Smoking Is Dangerous to Your Health" PROPOSED WARNING (S.772)- "Warning: Cigarette Smoking Causes Cancer, Emphysema, and Heart Disease; May Complicate Pregnancy; and Is Addictive."

R. J. REYNOLDS TOBACCO COMPANY THE SMOKING AND HEALTH CONTROVERSY VIEWS AND OBLIGATIONS The Company's views on the smoking and health controversy are simply stated, though they cover a vastly complex area of science: o The smoking and health cont.rovers[.continues -~ unresolved. Despite claims about cigarette smoking and health, it has not been scientifically established that smoking either does or does not cause disease in humans. o Despite claims to the contrary, no ingredient or group of ingredients, as found in tobacco smoke, has been proven to be a cause of disease. The simple and unfortunate fact is that scientists do not know the cause or causes of the diseases reported to be associated with smoking. Nor do they understand |. the mechanism or mechanisms whereby these diseases develop. Much more research is necessary before science can determine the causes and mechanisms of these diseases.

o There is a significant body of information that is inconsistent with the hypothesis that smoking causes or contributes to disease causation. However, there is a large and widely-cited body of information and opinion (based largely on statistics) in support of the conclusion that, although the specific mechanisms of disease causation have not been proven, cigarette smoking may be a cause or contributing factor in~ disease causation. o In view of the controversy surrounding our products, the Company is committed to continued funding of ongoing programs of biomedical research concentrating both on smoking and health and on the causes and mechanisms of various chronic degenerative diseases, particularly those reported to be statistically associated with smoking. o This research will entail an understanding of whether or not smoking plays a role in the causation of these diseases; and if it do~s, an understanding of what that role might be.

SMOKING AND HEALTH o Really 2 rel~ted but dissimilar issues Primary Secondary/Passive o People have claimed for hundreds of years color blindness ..... lung cancer o Serious Issue Objective to put us out of business o Complex Issue .... - Legal - Medical/Scientific - Political - Emotional - Religious War o Legal Standpoint .r - Since 1954 more than i~0 lawsuits O~L|~ - 8 Trials ~.~ - No loss - No settlement - Contrast asbestos industry approach o Policy Statement - Give better idea where we stand on issue