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. :=_ PLAINTIFF'S EXHIBIT PT/I •u.+aw tl.+a 0sw• a tTATE?St."Yr Or H. H. RINM TO Tf[E tXla?INt COKKl'!T£t 0T / / • TSt!/COtfTtC2b TOR T03ACC0 ltLSCARClt -P.S.A. O;t NOVCNOEII 30, 1970 Since the fore+ation, in the beginnin9 of 1954, of the Tohacoo available to the public frctual in!ornation on this subject,•,. trhen The Council is incorporated the eorF-.ration will have the saa+a iouryos.. Industry Research CorpLittes, nw called :1ie Council for Tobaceo Rtsoarcfi - d.S.A., the purpose of the organisation has becnt •To aid and assist research into tobacco use and health, and particularly into the alla,ad rolationahir betvean the use of tobacco and lwiq cancer and to aake l/ntil reccr.tly The Council's accivities •:srs alaiost exrlucivsly lie.itod to the dakinq of grants epproved L•y the Scientific Advisory Dotrd ::~r :inati:ial sup~.xuct o: applicants for thotr prcposed research in vc:icus 1r.boratori.a and institutions. Durin; th3 early years r.ar.y of these grrnrs werr diceLae oriented and perhapa had little if a,ny dtraet applicaticn W the ue of tobxcc-3. As the research progran has naturod t:io grants have beco-s rora tcba:;o oriented. This has been pasticululy true durlnq the last throe or to;:r 0 I yesrn and has been In respon+e to tha ea,ressed d,rsire of the r.:uDor com}-r.:i:c•. In order for the researc!t to bo ora;:tnr.nd :»re closely to tf.e, p:obl.ms of tho industry, thrco z--tors of the Seicntifie hdvico:y tte+a:3 -- CrA. So-nere, Jr.cobsr.n and Loo3li -- hava serv:d a* a Planning Coralttoe. In late 1060 Dr. Little was askcd to sot forth his conccr,tir:• of WhAt t7io prolraA of T1%o Council should be nnd roucJhly l.ov ita funds should ta cy.ncn ic;l. tn rcf.pon^e to thi. Ur. LitLlc ctatcdi . 1003057214 141 . ... .... . ~ . ~ CT ~ 1~~~ 0~~~~~

.• . 2 •(I) Long-timo rroqrams of pla.~ncd, oriented and sonitorcd rescnrch (possibly of the contract type). As examqles of soae of the fields in which such resaazcfi will be developcd are (a) anireal nodcl studies in the aroas of lung cancer, eardiovascular disoase and chronic respiratory disoa•se, (b) bioassay of effects of exposure to siaoSco, (c) nultitactorial analysis of statistical data, and (d) sophisticated elinical studier in depth of diseesss in which smoking is st.at.istically icrplicated. A rough estis+ate , is that, in future, such research would constitute 75% of the pro9ran. '(II) Crants-in-aid will be continued. These will be scrutinized vith increased critical attitude. Sono such grants' are and will be needed to unearth possible n•v 'le+ds' or to confirr or to supplerent research under category (I). ne fun3s for such k•ork now constitute tte largcst fraction of The Council's budVot. The relative proportion of The Council's funds for grant-s-in-aid should dininich a.a should their actual total. This process will be gradual, for we have 1^?lied eorm+itr.ents to er,any grantees for one or t.,o years longer. A rough estiruto for the future would be 20% of the progras. '(III) Conferences or staff projecta. These have forr.ed a part of The Council's proelraa for years. A rough outirate is that they may constitute S% of the future budmot.• 1003057215 hs all in this room will appraciotd this industry a:os a great debt of gratitudo to Dr. Littlo who has alnost froes the inecption of Tho Council b:cn its guidin7 hAncl. 71io industry has 1>ccn fortunato also in hHving tho benefit of the advice, juAgmont and docisions of -tha ScicnClfic Advisory •oard whose mcn`+:rs -....-.~-.......~ - • . .. . . . .._ _... . .~ - . CtR t E! "1 026310

3 I aso somo of 'tho a+ost cainont sscdical scientists in the Cnitsd States. , I tllink it can be said without contradiction that due to Dr. Little and the Scientific Advisory aoard 'Cne Council has oarned the respect o: the scientific cormunity for the unbiased research it has supFortod and for the achievsmsnts of many of the iavestigators sponsored by The Council. . :.. . As the restiilt of 1S years experience the tim• has arrived when we should be in positioa.to asro-in moro closely than bafore on the problanu that The CouncJl was originally set up to explore. Mitrout in any way disparaging, - the stalwart work dons by Dr. Little and the great hslp received fros the Scientific Advisory Doard, the t.ime has nov arrived when it sosas apprcpriats, if answars are to be found in the most or•poditious and least costly manner,'to progran the research mrt specifically than has been possible in ths past. 6y pro;,rcrr.od- or soatimos called dirsctod-rsssarch I do not s+oan rssoar:h srcqra.:r.ad :y t.*.e pr•rtis?pttin3 co-.anicc or a-y o* t•'•cir atwff t-.:: tssaarch progra:.:.sd by The Council. To dovslop and ir..planent such a program it is essential that we hnvs the services -- preferably on a full-ties buis -- of an outstandinq scientist, one vho enjoys the respect and confidence of ths scientific coz:unity. Such a terson would be Charlis fosrmrs but,ho-is not availablo. He has, hou.vsr, been ~ kind enough as Research Director to give part-timo -- ons day a week, I bQlievs -- to The Council. 4'o carry out an effective program the Scientific Director must have an able and au,-ontcd staff. The Cou_icil hr.s bcan fortLnat• in the quality of the staff it hi~s had to dats. Dr. ftocl:stt and others havs been of inestimahlo v,tluc but oven today the staff is inadequate in nu.-bcrs. I enviangc the neccsaity ot ho~~ing at lcast'tvo otAcr sciontitic oc:Ncrs on'U~c~Za~I£7zls .. . ......-..•. _. -. • C~°~ H~°~ ~~8311,

.4 - Rocontly 7ho Cocncil has ontcrcd into contr.icts for research. tf,ese contracts pornnit a definition of the rescsrch and a policing of the work being done in a runner that avoids waste that we know has happened too ofton in tre case of grants where the funds have becn used more for the support of a de?arte.*nt or for the benefit of graduate studcnts than for the research project in%°dlvod. Perhaps this has occurred ftore often in recent years when governmcnt funds have ceased to be the goldon floa.e they once were. To get the most effective use of its research dollar it is anticipated that The Council will in the future use a larger percent of ita funds for contract~ research than has beca done in the past. As you all are aware we have been endoavoring for sometiwe to engage a now Scientific Director. Dr. Little recognizes that he cannot fulfill the danands that are required. It is icliortant, hoa.rever, for us to be able to .ca-:inuo to have t'e advSc= and con-ultet-lon of Dr. Little rrd I ws+!pld su':T+.t that, when we have obtaine] a nc:•? Scienti"ic Director, Dr. Little be designttod Scientific Director Ezer$tus with, of c>.:urse, an appropriate reduction in his compens ation. It is also inportant that we retain the Scientific Advisory IIoard. There oay be aoao r+en5ors who because of advancing age or other reelons will j ~ want to discontinue their r+enborship, but they should be replaced by other ~ i equally qualified and eminent people. As to the structure of the staff and the ccnloyra nt of additional r.erbcrs of the staff, I believe that this should be loft to the new Scientific Director working with rza and, through c-0, the induwtry. 1Q03Q5721'j TTho function of the Scientific hdvlsory Roard is again a Quttor on which'wc should hsvo the advice of tlie ncv Scientific Director. Certainly t1nc Donrd shnuld cct in an advicory capaclty•to the nri Scientific Diroctor. pu-ti-:a .......~.. •.. ....~...r.. •. . .-...:.r-..v.- -- -... i CTRHN 0228~ 1,G..

: . S - ovor tho courio'ot tica it indy dovelop that the Doaid will be solely an advisory body. Dortiaps also the Board could, in conjunction with the r Scientific Director, s+ake dacisions as to Srant applications and leave the matter of contracts for the decision of the Sciontific Director. Lven with contracti2 envisage the Scientific Director asking the advice of the loard. In additioR to the Scientific Advisory ioard it may well be t.hct the Scientific Director vill want to be in position to soak the advice ar.d counsel of other outstanding scientists. If•ve are to have an eminently qualified scientist as a Scientific Director I aa quite certain that he will insist, as has the Scientific Advisory Eoard in the past, that all iesearch work be done in proper scientific nanner and in the interest only of deternining the truth,r vhatevor that s+ay be. * The problerss in the health area confronting the industry are aany a-.d co-pl:x. Thcy to-.C a::as -.!hsra rilliols of dollars have ?r.en s;en: :n researc.ti over a period of aany, man;- years. ?here can be no assurance as to the results of research. All of you have experienced this in your own rasea:ch laboratories. Dresuaably there is a scientific truth and it is this trti:th t~.at ve are endeavoring to find. If we do not find the icientific ans.•ers nost assuredly others will. , wfi en the products of an industry art accused of causing harn to users, certainly it ia the obligation of that industry to andaavor to deternino vhether aach accuaatioria are true or false. Koncy spent for auch purpose should not be ro9arded as a olaritable contribution but as a business exp.nso -- an exponse ncces:ary to keop that induatry alivo. In vioY of the billions of dollars of tanwl se).os of our industry our •xponditures tgr~h~t,l~,~~~rrh have boen of a~ninisal order. This does not r.»an that fundalUsUh•oiuUld 'JL (~ba needlessly npont or vastcd. It ocnnc, ho*rover, that it vo arc to have a wortlwhilo and prrducti:o rcasarch progran the nccostary funds must be naJo availabie. ........_...._...:..... --. r ~r:... _.. ..4.... CTR H~~ 0~6~ ~ ~

0 Aa.ta !N' it the first ordet of business it to obtaia the na. Scientific Director. Ha haw beon enqaqed In this for some:tiee. Ke had originally hoped that Dr. futat would be the Dan.• As you will recall, Dr. rurst joined the staff as a coruultant a year aqo last July. In January. bocauso of his wife, he decided ha had to return to Calitornia. I think all of you know that Drr•Turst has beea retained as a scientifia consultant. After Dr. hurst m.ade his decisioA we thou7ht w Md the maA in Dr. John Wyatt, but he advised us lar last sprinq that he proferred to stay In the acadec+ie world. Sinea than approxinatoly fifty individuaL have been interviewd directly or indirectly. Z say •ind.irectly• because In order to ex;adite the search soese months ago we retained Spencer Stuart a Associates to assist. At the aorsont tAero are five active candidates und.r consideration: Whether any or all of thoa will be interested w: do not know today. One of the candidates, Dr. Ilodos, who is Professor and itead of the DepArtntnt of ltadtol,~ y , of Jefferson Kodical Center of Philadelphia, trAS intervioved by sors of tho attorneys aproscntinq jre.r.bors of The Council last week. With your persaission it is my intentioA as the screening process proqrer.sos to follow this pattern a,nd have the candidat.s seloetod intarvir:ed by general counsel for the najor ciqasette nanutacturinq sosders of The Council. / dofors any final co~saitmoAt is ssada it would be iey iatention to qet the ap,^.roval of the chief axecvtives of these rarSer cocpanics. 1003057219 Ona of the sutters that frequently comes up for discussion is the rolatlonship that should be occupiod by the scientific directors of the various nenDor cor..panios with the functions of The Council. The scientilic directors of the coapanios have a Coclaitteo which does ronder aisistance to the Sciontific hdvisory Dc.ard and the staft of The Council. Their knowlediio as to tobacco and sn,oke r.nd tho conctiruonts of cach, the rcthoc!a of s~olanq ciqarcttva, sno`:inq ruchincr, tnachincs for animal inhalation, et cotcra, are invaluahlo and this _...~_ .. .......... . /I( CTR HN 02-6314

. a . 7 • .. . • • , . .:_. - " Abisistrrncc hns b:cn rcuvtrcd. In ad littc.n, Uio C1iuirmcn of the Cc.a1:nittcc of '. coion.;,ny ocic:ntiwtt sits killi the SeSontific Advisory I.oLrd e'icn they rtct. Currcntly Ar. Spoara ot LoTlllurd is the Gi+Srnan,; nnd I knrxr froa cr.; orici,cc that he hcs rcndcrcd valuYalo aid to the Scientific hdviaery DoArd. Yrcrtr.,rj'jly, undcr thc ncv Scientific Dircctor, this kind of coo?c•ration will be continu.d. !IC r+ay, in the dsvcloprsnt of hiR prograa, dociZc to nct:o oxtcnmivo uro of U,s knaAcdVc and cxi.crioncc o: th• ooa azny scioritistA. During Uio two ycari that I h++vo bean scrving a.s Tccr,:orary Chr<irrrn of The Couacil, I have co:~2 to rcaliro and apprccictc mro than evcr the vc1Lr •to the inc:uctry of Uj• dcdication of tnc staff of i'nc Cou.ncil both on thc scicntifie and aOninistrativo levels. I found, ha.+over, a feeling on their pc:t of boin; soor+:hut out of contact with tho induatry. Nopcfully, if I a.13 to cvntinu3 to scrvo Ttic Council in an cxccutivo er.;•ecit,, throc.^h contact vhicti I hnpt to rxintain vfth t)j: cxccitivcs of tho nk:osr oanpnnics and Ocir qcncrcl eoun:cl, this: void c~-y be fille::. The prinnry task et t.'.o tn.ow;nt is to find the ne-., Scientific Dirccto:. lfian he has been oLtaincd tiut ii-hcn ho hnc had the o;rortunity, Khic•i uay ttr:o soma time, to develop a coa2rchensivo resoarch prograw we will be in bottcrr position to rivo noro specific pltns for Uio tuluro. ..0 w , CTR 1 \ • \ • 0t.u. 63.M ED