Tobacco Documents Online

• . f r THE BROADCAST RS?ORTiNG S"cmCE - G y PLAINTIFFS' EXHIBIT DATE -7=ay-9 7 RICHARD G.-STIREWALT-- .... _ -REG: PROF.-C©URT REPORTER A DYaIG S3Mt1STRY J BAT COMPAN7C LTD ' R0: paxoRUS.t Cc.'e: 14.4.80 1ime: 2010 R05's.+~tARY SIH Se'.YICe : fiBC TV , Ce.^.CI:_ 4o391/AGS O Cvtafor: somi-n3 BAT Co x,TD - MINNESOTA TOBACCO LITIGATION CTR l~~# ~`r.~~2-6

r SIR GEORGE YOUNG: The tobacco industry is a sueeessful industry, made up'of ver7 big companies operating internationally who•are selling a product which they regard as a legal one that•ta legitimate for them to sell: ' And they're using all the commercial means at their disposal to defend their interests. They are a very effective, well organised lobby. Peter Taylof• Good evening. On World Health Day last week the World Health Orga.nisation declared war on the tobacco industry. It said no worthwhile progress can be achieved unlesa governments are prepared to put the interestsof public health before those of private tobacco enterpris.e. But pri'rate tobacco enterprise has ao intentioa of suxzendering the commoditT on vhich its wealth is based: cigarettes. Tonight Panorama'brings you the inside story: of howj vhere.and with what veapons the industry is fighti^.g - for its survival, . • Part 1"We are not Doctors^ __ FrTF3t TAYLOR : Brazil, In Third World countries like Brazil cigarette sales are on the increase. In the West they're stagnant or declining. Brazil is the industry1s new frontier. Itts: no •accidea: sales are soa_-ing. To captu:re this new generation of smokers the industry.uses all the sophisticated marketing techniGues it can no longer use in the West. - Ad shown - Hollywood. Itts a generation largely trravare of the hazards of cigarettes and of the mountain•of evidence vith which the West is now familiar. In Britain reports from the Royal College of Physicians; in America the Government's annual aummaries of the latest research linking cigarettes not with just lung cancer but bronchitis,•emphysema and heart disease. Reports from'the World Health Organisation warning developing eountries to learn the lessons of the West. ~But the tobacco industry doesn't accept the medical evide_n._c1e. It says it makes low tar eigarettes becau3e consuners vazi: t`en not Decause they're safer. worldvi;e BAT Co X.TD - MINNESOTA TOBACCO LITIGATION ~TR MN ~~~~~ ~

( -z- . , R , the industry needs cigarettes as much as smokers do. - Ad ahown - .1dvanc e . The Communist bloc and several other countries have their own state monopolies. In the rest of the world siz giant multi- national companies dominate the business, manufacturing more than seven cigarettes in everp ten smoked. In recent years theylve all diversified. : They now own ships and oil companies, miaiLzg interests and department stores; they manufacture dog foods, soft drinks, beers, spirits, paper packaging and cosmetics. But for all of them the real money lies in cigarettes. Philip Horris, makers of Marlboro - the vorldts best selling brands• Iri'1978 its prof its from tobacco alone were t340 million. Headquarters, Nov Tork City. • American Brands, makers of Pa11 Hall, in Britain they ovn Gallahera; ma7Cers of Benson aad, r Hedgeb: -' In -1978 American Brands -made an o•peratixig profit from tobacco of 415 07 million. °eadquarters,:Nev York City, In Britain-Gallahers also market Xinstori-digare:ies~ but everywhere else the red and vhite pack is-syrionomous-vith R.J.Reynolds, Americals biggest eigarette maaufacturer. Profits from tobacco in 1978, X350 million. World headquarters, Winaton Salem, • Horth Carolina. Rothmans International, the vorld's fifth biggest cigarette manufacturer. ItTs a British company based in London. Operat- ing profit last yez:, £100 eillion. But Rothmans Inte:..ational is controlled by the Reabrandt Group, the third largest corporation in South A.°rica. Group headquarters, Johannesburg. The Imperial Group ors both Wills, the makers of Embassy, and Players. Imperialts operating profits from tobacco in 1978,. £66 million, Group headquarters, London. Two years ago State Express Three 5s was launched onto the British market by British-A-merican Tobacco, BAT, the world's biggest manufacturer of tobacco products. In the United States its subsidiary Brown and Williamson is the third biggest cigarette company. Elsewhere BAT has over 6o subsidiaries manufacttis•ing more than 300 brands of c igarette. BAT1s operating profit from tobacco in 1978, £3-y0 million. Group headquarters, Victoria Street, London. Brazil is the jevel in BATIs crown. Here it's biggest sub- sidiary, Souza C:un, has 83''. of the market. Its position on the smoking and hea1t`i issue is t-%•pical of the :^du3::y vo:ld..•ide. BAT Co LTD - MINNESOTA TOBACCO LITIGATION J W O ; 1-' TR MN 04ti/L/'f/mIl /PYC VMK'

3 ' ,LI:,.V LONG: (Souza Cruz) The medical evidence, as far as I am avare, is of a statistical nature and it is, as you know, the iadustryls view that no evidence has been produced to.establish a eau al relation- ship between smoking and any of the diseases with vhich it has been assoeiated. DR.S.J.GFtEE.Vo (Research chemist) I think this is a very naive view and quite simply I,believe that just to say evidence is statistical and can't prove anything is a nonsense. I think that nearly all evidence these days is statistical. I believe that experiments can be carried out and have been carried out and I think that in a autshell vhat ve can show is that smoking is a very serious causal factor as far as the "sm"oking populatiori ia concei•ned;••- P_Tt - _ Dr.Green isn't just another anti-smoking cruiader. H0s an eminent acientist who for 20 years directed research in the tobacco industry. Last September he reti.ed from the board of Britinh-dmerican Tobacco. I-n the early '70s in statements like this from its scientists the industry vas advised to revise its position on smoking and health. "I believe it vill not be possible to maintain indefinitely the rather hollow tve are not doctors' stance, and that in due coL=se we shall have to come up in public vith a rather more positi4e approach towards cigarette safety. Ir^ my view it would be best to be in a position to say in public .rr.at we believe in private." Clearly the industry has not accepted the advice which it was given in 1972. Bight years later•BAT is still avoiding the issue, saying they can't comment on medical matters because they're not doctors. Do you believe that cigarette smoking is has4sful to health? A_L:, As you know, I am not a medical man and therefore I cannot offer medical opinion. I would be incompetent to offer a medical opinion on that question. I am, of course, aware and my company is aware that there is a very substantial controversy in this area, but I am also aware that a very substantial body of Pesearch is being dedicated to this area in which the industry contributes cu'_tz ~_e _: icar.:ly. . BAT Co LTD - MINNESOTA TOBACCO• LITIGATION J c:7 c T~ ~N 0 43 22 ~

(` - 4 - P.T: Are Tou saying you don't know? A.Ls That is e xactly what I'm saying. P.T: And, Mr.Long Panorama and position was than endorse C was sper3cisg for BAT. Last month BAT wrote to clarif ied the position. They saids the industry covered by Hr.Long in Brazil and we eau do no more that statement. But that statement isn't endorsed by the man who was BATsa senior scientist for nearly. 20 years. Do you believe DR.Gs that cigarette smoking is harmfull S'iel1, as Ilve said, most snokers can smoke a11 their lives without any apparent harm, but if you say do I believe that smoking can cause harm Ism quite sure it can and does. In fact, Ilm quite sure it's a major factor in lung cancer in our society. :For_;exa.mple, and ptrhaps;I=can-_e_xpressli itrbetter by saying this, ___in_rap_opin_ion. iS ..ve_ could get a decrease in the prevalence of smoking we would get a decrease in the incidence of lung cancer. P:Ts u I The -reason fo: the industrTts position_lies in Ameriea. Here it has faced a string of law suits brought by eonsumers who say that cigarettes have damaged their health. They1re claiming huge sums of money in compensation. Claims currently run to over 40 million dollars. So far the industry hasn1t lost a case. If it were to lose a case it could face an avalanche of literzl.ly thousands of similar claias. The result? The industry might face economic ruin. No vonder the industry closes ranks where- ver.it's interests are threatened. The companies operating in the United States finance a powerful lobby organisation, the Tobacco Institute. The companies in Britain are represented by the Tobacco Adv-isory Council, the TAC. In Germany the multinationals have combined with domestic and Luropean manu- facturers to form the Yerbaad Der Cigaretten Industry, and to keep a watchin g brief on bodies like the Common Market Commission and the iiorld Health Organisation, the industry has now set up an office in Brussels, ICOSI, the International Committee on Smoking Issues. The companies finance the office in Brussels, its staff seldom talk to the press. ICOSI keeps a lov profile: smoking and health is its business. Last year it issued a . BA.T Co LTD - MINNESOTA TOBACCO LITIGATION J rPi O CTR MN 043230

- 5 - _ series of background briefing papers. Their purpose, to make sure companies are consistent in their answers on smoking and health. This rras their basic position: "Scientific research does not support the conclusion that tobacco smoke or the constituents found in tobacco smoke have been proven to cause disease in humans." Dr.Green doesn't have much time for ICOSI. DR.G: . I must say, the scientists in the industry, and thatts vorld- wide I think, refer to that particular organisation as the Flat Earth Society. P.T: DR.G: s For obvioua reasons. (Laughter) I don't think itts a scientific, scientifically based organisation. P.T;` --- _ ~--=- = - - '-- '-- ~ ICOSI's veneer of scientific authority is designed to do one thing, to eonv'..nce the public that the smoking and health issue is not cut and dried. "The smoking and health question is unresoived and answers xill be found only t::.rough urbiased scientific enquiry." Part 2 The indust:y does spend millions on research but today- the industry funds others to car:-T out the research it once did itself. One of the industry's most famous research institutes xas financed by the Verband in °a.mburg. Here a team of scientists under Professor pontenville conducted experiments to study the effects smoke on mice and on hamsters. on pigs vhoee respiratory system a series of important animal of the inhalation of cigarette But they also conducted e.zperimentsf i3,most akin to humans. The pigs not only inhaled cigarette smoke but were injected with nicotine to study the effect on arteria-sclerosis, the arterial disease that leads to'heart attack. Suddenly in June 1975 the Yerband closed the institute and rented it to the state health authority for one deutsch mark a year. Today the labs still stand empty. In aa official statement the Verband said the ir.stitute hadn't the resources for nev research and that $A,TCO I,Tp - NIINNESOTA TOBACCO LITIGATION W O I I 1 I 0 4- 1..~' iuv 3 .F

(` - 6 - . Professor pontenville, its director, was ill. No scientist who worked here was prepared to talk openly about what hnd happened. One scientist however was prepared to talk to us on tape as'long as he remained anonymous.' Thia is an exact trans- lation of what he saids SCIE:7TIST: It is certainly not right to say that there was a shortage of money. In the institute we always had the beat of everything we needed. . We had a budget of between 6 and 8 million marks a 'ear• P.T: • ~ Vera you ala surprised when the institute was closed down? SCI: -7e_s_ i. it va.a_-S_str_ns_lik_e sL. f_l.aab,_oS_ lightning out of the aky when we were told about the closure of the institute. P.Ts Was -3~rofe s so.r.IZonteavilla. 1114._ _ SCI•.. --- _ `- ~ - =: , •_One-can.answer.that with a-simple no,,_ He was in good health and once when we talked about the official annocmcement he aaid . to us "it says here that•I'ta ill. ~Yell, look at me,. how sick I am" and he was very healthy. - He was being- sarcastic. P.T: Why was the institute at=t down? ~ SCI: Therets the version given in the of:icial statement, and there is another version which nearly everybody believed when the institute was closed down, namely, if a connection between smoking ar.d vaacular disease was established the cigarette industry would be pushed even more into the firing line.' We aupposed that the isstitute was closed down because of the results we were getting from P.Tf our experiments into arterio-sclerosis in the pig. J Does the industry knov that cigarettes are harmful7 SCI: I think only someone who covers his eyes with glue will not know that and only someone who is very irresponsible could deny it. P.Ts That was one scientist's opinion. Redundancy payments were genercue. T::ese are the _,_.^.L_e: c° the Ve:bi^.d mtetr,E at vhich BAT Co LTp - MINNESOTA TOBACCO LITIGATION ~T R M N (") 43-20,3 2

. they agreed to pay Professor Dontenville 1.6 million deutachmarks, nearly ha3f a million pounds, to cover his salary until he wa,3 - 60 - he was around 50 when the institute was closed down. Today - Professor ponteaville works here in the Pathology..Department at fiamburg Hospital. He declined to talk to us. When I rang him and asked him about his research he said hetd forgotten it all. DR.G: • Yell, he had a good memory the last time I spoke to him. P.Ts Arterio-sclerosis can cripple as well as kill. SCRGEONs - FILM of operating theatre Ism actually going to actually do a below knee amputation of his right leg.---You_can see.on the foot there's an area of earl~ gang:-ene in the ..over this particnlar•base of the toe. .Thia patient-at.BartIs Hospital has an acute form of'the _disease~Hamburg was i•m•reatigatingj- ha=•denin6=of the arteries. Ee_already had scveral:arteries replaced.'==0f the 3,O00 patients Bartss+ has treated for arterial disease 95% were smokers.' Only a 1raction face amputation, but •a11 those who do have been• unable to,stop smoking, amputation is the last resort. 'No one knows exactly what_causes arterio-sclerosis, that's exactly what they vere trying to find out in Eamburg. Meanwhile this surgeon amputates 50 amokers legs a year. Are the hawks now in control? DR. G: I don't knov how to answer.t:at question. I.suppose places the hawks must be on the...in the ascendence. Thia assuming that scientists are doves. They're very,much on I'm afraid at the moment and not at all on top. . in some is tap Part 3 P.T: Governments can no longer stand by. In a letter to a .~ constituent earlier this year Mrs.Thatcher saidi "Hy Health Ministers and I are in no doubt that smoking is the major preventable cause of illness and premature death in the IIK." Her Government is only the latest to try and do something .~ O about it. Her Junior Health Minater Sir George Young is cu:: ently '_eadins his tea.•a ''i nego:iating a volun:a.ry agree=ent ~ CD N .L~ BAT Co LTD - MINNESOTA TOBACCO LITIGATION C T R M ~~ 0 ~'~~~'~

vi:h the TaC. 90ICE: SIR GEORGE YOUNG -=M of minutes - Xell, we're meeting the t obacco boys 'again tomorrow, velve sent them an agenda and perhaps ve can fust Jog gently rhrough the items that vetd like to discuss. P.Tt It-is a three yearly ritual in which the unspoken threat of legislation is supposed to squeeze concessions the industry vouldn't othervise give. Sir George wants a stronger health va..-niag and an advertising ban. SL~ GEORGE YOIING: I don't think any Health Minister can be unaware of the tremendous drain oa the health service caused by smoking. 50,000 pramaturs _deaths~-:SO~millioa_.dey3_ ,loat,~rom.__~.or~C- through sickaess andlf,ve could use the resources cu.^rently devoted to looki.ng* atter.. those_i•ll_ rrom_am.o_king._to $eaaes_vhich_p,re_non- preventable,- kidney -patients, people auffering -from hip Joints that need replacement, ve-could make a big improvenent on the countryta he.alth. In principle; Hrs.Thatcher is behind Sir George,Young in accepting that cigarettes kill 50,000 people a year, but ranged against him are the interests of other powerful government departments. John Nottts Department of Trade, L300 million from tobacco exports. James ?riorts Department of Employment, 40,000 jobs plus half a million people indirectly a.rfected,-people like soa11 shopkeepers. Sir ICeith Joseph's Department of Industry, 3,000 new jobs created from L20 million worth of Government assistance since-1972. Sir Geoffrey Rove at the Treasury, L2= hillion in revenue from cigarettes, enough.to pay for a third, of the National Health Service. Despite his Government's stated concern for the health of the nation, in his last budget Sir Geoffrey only put S p. on a packet of 20. Cigarettes are still cheaper in real terms t,han they were 15 years ago. So the . industry calculates that in the last resort this Government won't legislate to ban cigarette advertising..(Yarious ads shown) Meanwhile Sir George Young is still trying friendly persuasion. The negotiations should have been over last month. Theyfre deadlocked. The industry is calling his bluff. - It argues that advertising doesn't affect consumption and only BAT Co LTD - NZINNESOTA TOBACCO LITIGATION J W O CTR l l l y/ 043234

I - 9 - persuades smokers to switch brands. Further, it points out that a ban wouldntt allow it to advertise the lov tar brands the Government wishes to encourage. But the Department of Health realises that nicotine is a more powerful persuader thaa advertising and accepts thai many hardened smokers are unwilling or unable to give up. Sir George Young wishes to create a fresh atmosphere for the next generation. SIR G.Y: The argument about advertising is that one wants to create a climate when non smoking is actually the norm and smoking is unusual. lnd if, particularly children, g:ow up in an ataos- phere where on the way to school they see a lot of posters, where they see sporta-spon3ored by tobacco companies, it is verl ditficult indeed to get the health message across. My own viev is that at some point over the next 10 or 20 years advertising vill_probably,<stopa: vh.ether -it~11::~ar through legislation or through voluata_--T agreemer;t vith the iadustry I honestly don't knov. But if you look at the trends in Western Europe this is undoubtedly the trend and I don't particularly-see.v}s7 this couatry should resist.it, ~ P.T: ~ But, the industry will resist as long as it can. For BAT itts ; not a question of if but when advertising will be banned. This was its forecast at a special conference last Ju1y. ":.a overPiev of the progressive t_ ends in r estr ictio.^.s on advertising up to 1990 cconcludes that prospects are poor, Among the most important BAT markets the number completely free of all bans and restrictions will have diminished from eight in 1979 to tvo. These restrictions primarily affeet the persuasive natz:e of advertising." ~ But, there are v ays round most things. John Player is now synonomous with sport. Sponsorship buys Imperial a fund of goodwill, besides, itts better to have your product associated with a healthy sport like rugbp than bronchitis.:and emphysema. Most important of all, you get your name on television. - FILtf of match - Fi-.~ bans on adverti3ing on TV since the '60s, sponsorship has e=abled the conpaaies to turn defeat i.^•to vieto-y-, But BAT Co LTD - MINNESOTA TOBACCO X.,ITIGATION J C• a I 1 ! / l N 043423E7.5