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Council for Tobacco Research

Remarks by Ernie C. Clements, President Annual Meeting, the Tobacco Institute, Inc. [Information Regarding Division of Responsibility and Statement of Objectives]

Date: 26 Jan 1967
Length: 15 pages
CTRMN028525-CTRMN028539
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MAR

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25 Sep 1995
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Ctrmn00028023-9276

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REPORT
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nos30a00

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FLAINTIFF'S EXHIBIT Re-sra . Ea=-e C. ::e-.er.:s. Mee:-- .:e :=ra=-= •"s:---=e• •'=• :'•.:.r ~z v ~`•'~ J ~4 wsw . pp When I beca-e p:es:=e n: of : e I::s:=ta:e ::I Ma:c.., :r.y :::s: task was to eva:Qa:e all przqra.-as a::d object:ves, our s:a:: a nc advisors, and the oryan:zational ar:angewent. I was advise: then that t2:e Ir.stit_te's bas:c object:ves were t,rofcld: . • First, to help rest=:e perspective to the s;•.rjec: of s-c;c:-; ar.d heal t':. Seccnd, to prevent the iTpcs:t:on of pL.i::ve „- restz::-_ve lecis:at::n, at Federal, state or local levels. I can report to you today that we are well along in the process of stzencthenir.e o;L progra_-LS and staff cap acity to Aee :_:e ind_st_-y's r.eeds. Or;an_zatior.al:y, we have diviZed t`e I::stit-ite's ac::•::::es into five .:ajor categories. We have given i::div:d_a: staff -.e--*-e:s , specif=c respor.sibilit:es for these varlcLs areas of 8rie=ly, these are as followss lirst, federal relations--Clements, Dryden and Mills. tecond, state relations--Welch and others. Third, relations with those industries that have s::Ll-=a: . particularly with goverament--Rac,la::d and others. rr..!.Ie-7 fourt-%, relations with other tobacco groups and industr,.-, sz:- pliers--Clemer.ts ar.d others. Tifth, cor.-nur.ications and information activities--DeHa::. T 27860 C T R H N 02 B ED-2 E i
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T'iese are : e wa;c_ areas of resscns:..-_-_y. :::reve:. a:: staff ine:bers and advisors do dc::b:e dutf, and he.= ou_ wtere•:er they have ccmpetence. Now, if I may, I'd like to discuss scr..e of our cb;ect:ves. some of our work, and some of our problems, in eac : of these f:ve areas. I First, and pe::ars most impor:a::t, are tl~:e act:vit:es re:a::-; to the Federal estaylisr.ment--Conqress, the Xcecu,tive brar.c`., ar.d t.ye aser.cies. This is an area of st:onq pe:sonal interest. With the add:t::r. of Frank Dryden and Jack :S.:ls, we have i.:.rrove?' our capac::y tc , do this job. Dryden and Mills are active in work on the H11=, as ve:: as in deiar:.-ments and aSenc:es. Other staff mem_`:ers have scr_e :es=cns:- bilities for spec::ic areas and specif=c ind:•/iCuals. Our object:ves are to: 1. Develop and expaad ou= contacts with me-.=.e:s of t=e L:::se and Senate, and with key staff inersbers, particularly t-%ose ::: c=r.- asittees important to the indust_-y. This is necessary to Ce•:e::p support for our position and to gather intelligence. 2. Monitor all legislation and potential leqislat:c- of interest. 3. Develop ar.d maintain contacts within key sove:=e-: acenc::: ~ 2''j gfi 1 C T~ [ 1 N 02 BE I 2 6
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4. E:.cousa:e t.`.e e:ec::orn c: s:a:e tnd r.a:_:ne: =n-_::n:es i . sympaLhet:c to our posit:cr.. S. Assist me-ber ez:-panies, wherever poss: :e, in dee::.;s wit-h the government. Jack Mills will provide val_able help for D:1Cen and :se:= in this,area. Be has close ties with the Rep---"-lican lea:ers ::: as,d vario;is merabers of Car.gress. As a result of the election, we lost some good friends, like 8aro:d Cccley, by tefeat, and Walter Rogers of Texas retire:aent. Bowever, we picked up what may be good support in Se-a:czs Hollincs of South Carolina and Ba;cer of Tennessee. Also, zany friends were re-elected, a:.d several antagonists were de=ea:ed. With the Federal aser.c:es, we have made some progress. We are developir.g closer ties and better intelligence a cm .=e Federal Trade CoMMission. Our relations with AS:=cu:t_re ccn ::n_e s t rong. We may be making a mcd_c-.Lz of progress with Eea_ t=. Ed_- eation. and Welfare; at least, we now have seAe lines of You will be interested in t-he results of scae caan ces :n certain Senate and Bouse Comn.ittees. On the Senate Ccmmerce Co=z'-ttee, Senators Frank koss o: Ut_.: and Ernest Hollings of South Carolina are filling the Bass-.Ne_..~e:;e: / 278C-2 /8 C T R M N 02 8 E5 27'
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- 4 - vaca::c•es or. the Oercc:a::: s:ce. :ha: :s a s:a-d:.:= ::._ _s -:c:e- wise; however, no one could be more ded:cated a;a:-s: us t:an was l4rs. Ne_berger. On t.he Republican side, Senator pominick ef Colorado was replaced by Senator Robert Griffin of M1ch:gan. On the Senate Agricult•xre Ccm"ai::ee, Senators Lcll:r.:s, ~ Deacc:at, and 8atfield, RepL:lican, fill L`.e vacar.c-es. :'% :s co..aittee offers no problerrs. On Senate Appropriatior.s, Senator Robertscr.'s place was eliminated. Senator Javits was added to the Republican side. In the Hcsse, the new Com:^..:::ee assig:me-ts have ger.era::y been favorable. I would be less t.an candid if I did not say that o:r p:cb:e•:s ca:: be made more difficult by subcommi::ees t.`~at are car.s_=e: oriented. The makeup of such subcoir:ai::ees ca.n provide a: roblen of great seriousness. Z'r:e Ser.ate Cor-merce Ccm.ti'_t:ee has es:a'6~lis :e a Cons•.raer Subcom=it:ee, cha:red by Senator Kagnuson, the c!:a::...e- of the parent com:nittee. Such a development is possible in the Hous e . State re?ations is one of our most complicated areas of activity. The legislatures will meet in 47 states this yea_. Sc-.e 60 bills have been filed, or are in preparation, so far in 25 sta=i ~ 2'78F3 !9 C T R n"N 02 8 15-2 6
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- S - Seventeen bil:s selate to the healt.'h area. ?ro:osa:s f=: increases on tcbacco are expected in at least 15 states. :ax xhile we cannot predict what will happen, we are r.cw ir. better srape to meet ouz :espcr.sibil-ties in state leg:s:a::ve probleus. TS=s is largely the result of c.`.anges :n ou_• o:;an:- sational approac!:, in develop:ng specific obJect:ves, and . a new spirit r.f cccrerat=cn between t`e Ir.st:t_te and t.`.e :c:,acco Tax Council. A year ago, the Institute and t.`.e Tax Council were :cth working on legislative probler.s, often in the sa.rte states, but independent of each other. The Tax Co;::.c:: ha::d:ed taxes, and the Inst=tute hand:ed healt-h-related problens. Today we are working toget-her, exchanging i:::a:-nat::.n an'_ intelligence, appraising our strengths and weaknesses in t::e va::c: states, and, most important, mapping strategy. Frank We:c:: and Eill O'Fla}erty are partners, with a sir.gle m:ss:c..--to rreve: :, if possible, punitive legislatiorn relating to health or tc taxes. In addition, we have strengthened our ties in this area w:th Bill Anderson of the Tobacco Growers' Inforanation Ccrn -ttee. T~e TGIC can be helpful on legislative matters in a nti."'ber cf states. To meet potential legislative situations, we have d:v:de" the country in seven areas. Each area has a leader. T'.e Ir.st:t::_: 7 27BFi'l I C T H N N 0 BE t2 9
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6 prov_:es s;:re:v:s:...n an_ --o:::na::;,r.. These area :ea:e:s are :es:c-s:b:e ::_ s:a:-n; c.. ._: leg:slative develcj-er.ts in the:z respect:ve states. They -,a:n:a:rn contacts with the state t:bacco :eade:s:::p, w:th :::e nds c: the ind::stry, and with &-*-e ro::tica: :eadersh:p. Each area leader makes :eg::la: reports to the :::s:::_:e. A I cor.:erer.ce of these leaders was held in Sep:e:r!:er to b::es :he-m on ouz pos:t:on, to disc_ss needed mater:als, ar.d tc a.ar = ux plar.s. Since then, there have been ind:vid::al conferences wi th eac:: of our area rep:esentatives and with the Tax Coti:r:cil's field rejre- sentatives to qo over oux cooperat:ve plar.s. We have also streng t.`.eneC our pos: _ion by ca taloq:.--= an _ filing background data or. each of the SO states, i::c'_-id:r, -:s tobacco lesislat:ve history, the tobacco leade:s}:i., he:r:-:: f::en_s and a.n aprraisal of the political power stracture. As ycv can apprec:ate, it is essent:al in e-e:;ency periods to have a:: the relevant facts at band. In addition, we have provided each area leader wit'h r,z _e::a! s outlining our position with regasd to nine basic types of :cssib:e legislation. 4'hese position papers make it possible for c= ::e:d representatives to move into acticn iauaediately when new le:_slat:c-n is proposed. The position papers can be ;ued as the basis fcr 2/ t CTR IHIN 026530
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leg:slat:ve test_=-f, __ for baci;:.,..:.d Ot the state bills aow pending, a pz:pcsc= ban on ac:e: __s:-; in the state of Vtah is of great concern. It is spcr.sose= b.~ the Mor:zon C:urc4, and 14 of the 28 senators :r. L'ta`h are e::he_ c_:- zent or past off=cers of the c`:•-ch. Despite t.`.:s. we are not pess:.mist:c a•bo::t our chances there. I Or.e exanple of our last year's state activity m.ig*= be of interest. In Maine, the State Eealt% De=az=-aer.t in July arLnou-.ce" plans to put up 30 billboards to warn the public about smok:nc. 2'ive of the sigrs were act•ally put up. You may have seen the p:c:•:..:e in newspapers. Through indss t.'y ef=ozts, the other 25 were .., _ 'and the first five were not up for too long. p=ace^, A detailed report covering ou- state re:at:cr.s act:.__:es be mailed to member compar.ies on Monday. Oc- thisd maior area of ac::vitv lies in trying to develop suppor t among indus t. ies and gr oups t_`:at have similar pr c=: e:s , particularly witb qover:=ent. • Some work in Vhis field has been done by Ed Ragland a:.d -others of youi Institute staff and this work will contir.Le. It .Ys an important area and one in which we will need your g_:dance •and support from time to •time. C T R H N 0 ~'8 S 1`3 ' IL
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- o - OL: •-•J:th ra•_ art• -` --ts _ n _-.. .-:=---" related 5rcL'ps, s-ich as the Cc...._i: fz_ T:LacL7 Resea:_', t;,e t: conru::ee, t`.e Tobacco Grawezs' Ir.fontia::on C:rait:ee, the ':ax and wholesaler aad retailer groups ar.d suppliers. Our effcrt, of course, is to prov:de gui=ance and d-rec:::: _.n ordes to *:e:p mee= i::dust:f objec::ves, part:c_larly i to goves r=er.. and :n c:.--:Ln:cat:ons. wi:.~ :e:e:en:e I believe it is fa.r to say that the cooperat:on and betwee n the I: s:::_:e ar.c the C:;a-.ci1 for Tobacco Research, Dr. Eockett, and be:.+een t`:e Ir.st:t::te and the ad hoc cc.=-:::ee its been quite p:cduct:ve to t.`:e Iat:tute. At the Sprins :leet:ng of t`:e Insti:::te, I expressed the that scr,e of cur me:.~er ccmpar.ies' amplcyees around the ccu-.:-• --._ be he:pful in provid:ng i::foz-mat=cn to make us be::e: infc--e:. : am glad to report that, while this has Aot been as prcd_ct:•:e :.s : had hcped, represe::tat:ves of some eorra.r.:es have p:ovided _se':: sup_crt. We will continue to try to bring into the fold all othe: r3;=: sec,ments and groups of the tobac:o aconomy, by emphasizing t: 'the dedication of our enesmies, whose ultimate goal is the of the use of tobacco. Our fifth ma+c: area of activitv is eommunicat:ons and 1- 2'j8fi7 2? C T - H N 02 6 5- 32
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9 It 1s c.~'•vj0us, I sL'rjose, that t~t a w:!e . in f::r.at:or. and ma:er:als is rer:ared i:. eac` c: cur c:.`.e: ra: ^_ areas of act:vi_y. this is an essen::al ar.d activity, I do r.ot intend to dwell on it r.ow. It is more important, today, to discuss our publ:citf a-.f relat:cns activ:ties. I We have received reco=endat=cr.s fo: a greatly exrar.de= relatior.s proqraLn in 1967. I hope these :ecc"_endat:ons w::: be care:_:ly rev:ewed ar.d eval_ated. our object=ves ln public relat:ons are exact:y t.`:e sa__e as t.`.cse of the Institute overall: To restore perspec-ive on smokin:; ar.d to help pr event the is: osition of p=itive or res trictive ley:s:at=cr.. As you all know, tellir.g our story to the public presen a d_f::- cult problems. We are compet:nq against the machinery and author_ty c_ the qover: -er.t, which seems to have u:!i.Lted fu-.ds, t.~e volti::.:ary healt.`, agencies, medical and scientific groups, and a hcst c= I-:er- aqency Councils throughout thecount_-y, on a state and loca: level. All of these qzoups are engaging, jointly and independe:::y, in propaganda programs against smoking. Ar:other proble:a is the populir:ty of anti-smoking a:--cnc ce::a:n doctors a.nd scientists, and among certa_n influential poli::c:a-s. / 27868 Z14 C T R H N 02 8 5-3 3_23'
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t on the cthe: s:de of the cc-..- it :s r.c: t:c c::en .: a= __C.=:s and sc:en-:s:s wr::e a:t:c:es or sreak c_: 4ues::or.:n; the c.`.ar:es agains t smoking. When t: ey do, we circ:.:ate t%ei: v:ews. Aao, we are _:1:-: _: encou:age more ssea',cin g out, throug : our cooperat.cn with the ad :.__ comrs:ttee. I We also face a sit::ation in whicti much of the c=:.a.:.nica::or.s media appears to have accepted the char;es arai:st smoking. Finally, we a:: icncw that char:es get more attention than the rebuttal. es=ec:a::y when t.`:e reb_t:al cannot be a flat den:al. This makes it fairly easy fcr critics to get the headlines when they make new charges aSainst smok::.y, and diff:cult to get attention to the doubts and quest:or.s about the c`:arges. We can expect a continuation of these ant:smokinc act:v:t:es, with even greater erarhasis on state and local levels. During the past year, we have made sor.e progress in :`:s a:ea. 8ut we must do more. First, it is vitally important that the industry s: eak out more often, t~-.rough individuals and t.`ucugh printed materia:s. We must speak out :n Washington, in Hew York, and in other parts of the country. The program reco:amendations subnitted are designed to `:e:: make this possible. T 2'76F9 9 CTR HN 02"6534

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