Tobacco Documents Online

'ECRET ::::::::::::::::::::::::::::::: i:i':"" ============================ PLA!G<IIIC ASSU;,'~PT]O,~S AND FORECAST FOR TIIE PERIOD 1977-1986+ FOR R. J, REYNOLDS TOBACCO CO;IPAI~Y TIIE C-E;;ERAL BUSII~ESS CLII,IATE ................ THE ;O~ACCO II~DUSTRY AI~D R. J, REYIIOLDS TOBACCO COi,',PANY THF RESEARCH DEFARTI~E~I A. GE~E RAL ......................... [$. SI.',OKIIC~ A;~D hEALTH ..... ' .............. C. REGULt,TIO:,~, lIXAl]O!~, ETC ............... D. P~Alt I.',tJERiALS A'<fl PP, OCESSES .............. E. PPO[~UCTS ....................... F. I~,~ SCE[.I.t,::EOIIS ....................... 1 3 3 3 5 9 I0 18 CX 35-A Research Department Hatch 15, 1976 RM036397

I, THE GEI~ERAL BUSIIIESS CLI:.'ATE o No sudden change v;ill occur in the "system" or business environr,~ent in which ~.~e operate, i.e., there will be no catastrophic pestilence, disease, ~orld war, revolution, major depression, natural disaster, or the like. There is a possibility of renewed warfare in the Hid-last probably again accompanied by a petroleum crisis, As the present "under 35" age group becomes the dominant po~.;er group in our society, the new personal and political values of that group will exert a more predictable influence for change upon most aspects of government, society, business, morality and foreign .policy. The changes vhich occur are not expected to be favorable to business. However, this large consu~.~er group will have needs to be satisfied In terms of tobacco products. This offers us a large market if we ~re sufficiently astute to identify those needs and desi~cn and sell products to ~.eet them. l~orld leaders of ~.orality, sucl; as the P.ope, will exert great influence to p;odify the perso~al mopes, and consequently the civil and political values, of the present "under thirty" ag? gro~?. There ~.~ill be a stron~ s~.,,ing to~..'ard vholesomeness, integrity a~,~ decency ~.,<qich w~ll affect the consu,~er outlook and product exFecte- tions of this group. ~rice, quality and durability ~.'ill beco"e more ii~portant than fad, fla.,.~boyant fashion or sex appeal. The "consumerixm" ~ove~ent will ramain strong, and the ability of consu~ers to objectively judge the quality and utility of pFed~cts may increase, Product labeling will &ecome ~ore definitive in te~s of co~?osition, date, hazards, and the like. Present socio-legal-governmental trends will continue. Conce~n for "social justice", e~viron:.ent, energy, population control, and product safety will re:.~ain high. CovErt, mental regulation of al:ost all aspects of our society will increase. ~he energy shortage and to a lesser extent other material shortages over th~. next decade will cause a change in world economy and politics a change in national p~iorities and life style~ and increased cast and difficulty in doing business. Concern for environment will remain high a~'.ong certain Stoups; and although energy ~;eeds ;vill finally out~migh environr,;ent considerations, th~ environmental groups ~..,ill continue to fight and delay, These influences v:ill continue beyond the projection period and will intensify as energy needs and environ- merit consideration exert a greater effect on the average person. = The U. S. standard of living rill not i~crease at the rate of last decade. Tl~e a,,,oJ~t of discretionary income v;ill de,crease. lhe r~ain squeeze ~ill be on the p;iddle economic class. RM036398 CX 55-B

I. THE GEIIERAL BUSIIIZSS CLIHM[ (cpnt'd) 9. 10. 11, 12. 13. The health consciousness and technical understanding of the population, as applied to products, will increase, Prlce-wage-profit Controls i.dll remain a possibility for at least several more years. Coping with the business cycle will remain difficult, The profit squeeze will remain a major proble';~ unless periodic "pass-throuQh" price increases are competitively feasible and allo~.;able. Due in large part to political tan~pering with an economy already under real stress, it was Ion9 thought that the economy k.;ould cycle bet~.:een hi.oh une~plo)'ment and high inflation at about 2 to 3-year intervals. Hoverer, it is appai'ent from recent experience that this idea should be abandoned. For several years unemplo.vn~ent and inflation have been cycling tog.~ther. As a lO-year average, inflation will probBbl.y run at ebout 8~ and unemploy~.ent at about 8%; i.e., politicians will continue, in election years, to place more emphasis upon full employmer, t tha~ upon price stability. Also, for complex reasons, the government is con,nitted to a continued policy of i|~flation. A key factor in the control of the economy's vigor is the decreasing birth rate, Even at current levels, every facet of the juvenile mar}:et may expect to be depressed. And only a few years beyond the projectio~ period looms a ~ar~edly reduced generation of young adults ~cho will need consun~er goods. This ~ay provide a built-in cooling of the econon'.y, leading reynard less inflation and specialized areas of unen}ploy~ent. More and n~ore evidence of financial mishandling by cities, states and national governments will leak through to the public in the Irmlediate future. The root causes, such as overextending in ~.~elfare programs, abuse of expenditures in such programs, corruption, ~vas~.e, unwise and expensive experimentatio~ :..'ith educational programs, and unnecessary services will become more evident to the public and will elicit strong response and possibly backlash. Considerable irish.ability in F, unicipa1, state and federal spendiF, g policies and progran~s ~vill result, with attendant uncertainties in taxation outlook, cx 55-c RM036399

~cynolds l(,~,~cco Co',.pan~, ~nd (b) 1he ~esearch ~ep~rt~;~nt hos bce~2. (.r~.~ed ~s t~.:o separate sc.ct~, ~::..in.~p~st ~ssuc.s of Pl~,'.~n3 Assut.~ptions ~nd Forecests. I~s f~r,=~t l.~s b:.un cha~,qc.d for the" pre~.nt ]h#~,l~,~:~ esc.u~.~t~ons end forecast for ]t,e lob;coo Industry' - ~O? for 197~-~9~ ~re p~r~11e~.:'.~ere ~ppllc~ble, o~ the sar'.e F~o s:ith co",',~nts c.n tl~, .~o~s~ble rc.s~on~e of_tt~e [~esearch~r~c.E~rte.er, t ~o the assur.~p~icns affecttn9 forr,,ot ~ :o so~ r~;c't~tten ~n the text, ~rticu~* t~ Ferscn:,~l tn olher de ~rt~ents of the R~se~rch Pe~:rt~..~,t's ~nvo~vca',ont ~n t,e sit~.~,s fo)'ec~st for the 1971-~9~ p~riod. t,s the tec~,n~cal ¢~.'.?lextty of the ..... :.r: crtuntties for basic re.search ~;;su~ts and procedur:.~ develo~d in l)=~ic rc'c.arch., frc:.~ )'ears will l.e u~il~zed at an Increa~c.,~ level. .Projects ai~.ed ~t effectln9 ~:~jor ~hort- ar, o Ior,9-ter~n c~:;hasis. ~~l~tcd, a~,d ti.e like, ~:ill crease as th,. size., product lines, Scientific co:,~lexit7 of the tobacco Dcvelop:;~r,t, Legal, ar.,~ oLi',er t,~.rti~,c.nt to rest.arch i, ro~r~r:s. RM036400

Research [k,k~,r;:",ent v;i]1 be Ir,':ol';c~ ~:: P, JR-I on r~q'~,.,~t (probably thrc.~gh IFi<. CX 55-E RM036401

II .~",. ~.,' ~CO I,,. J:ql',Y H.;3 i{ O. Ill. lie I',L5£;,!',(.I1 ,,~ " "' (0 B, SpOl:~nq ard Ih'alth 1. ll;c. sCiehtif~c (ontroversy over the all(.ged l. (ff~.ct~, of s:.ut.~n., c~, ~,~ neatU~ of the S~ol;ing-health.research da:~e on a c(,llaborctivc l~s~s by Cc~?~ny, indust~ and ~rlvate or acade:4ic groups ~411 ~ ~he ~_esearch~~l to ~~ an~ £~ssibly v~r~ous ~~' studies. " ~ . Research related to the sn,oki~,g~health controversy ~.d]l continue to receive major. ~hort- an~ lor,;-term e;r, phasis. l,~.:a~eness vi]l be ~alr, tained b; Roseate! F RM036402

Anticipation of th~ nature ol the specific selective st, eke co:r,~onents alleged to lle harr.,ful t:ill develop,n~nl..o_f e_'..~ro~ri~t~ anal~vtical effects, etc. RN~036403

RM036404

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.C; ._ .rLe:~ulati on, l'a×at Co':~p:~s i t ion, I;,~ nu f~,c ture, .ed.',.~,,)~t_i sales a~"J use of tobacco co~ under incre~slng 9cverr.,.ental . .~:.~ 1he ~.o~rol (~ow-rnn¢.nt ~;a~ sot i, etT, t~::~::~e ]eve~s for "tar". nicotine, c~rl,~o n~ho>:ide, and other co~;,onents, ~y ~es 1~ tn tnc~o,~o6 t~x~tion o~ the ~#~:itk, to IF,',edi~to]), r; ~co tar .~.~..~e~]s of m~3oP brands t.h~]e ~nd t~?;.~to of such govern~,nt oction riot' Uc. &dvanc~d by. tho it~rodoction of ~; "tar" proo~cts ~uch ~ the ~n~ the. KOl.~ t;hlch det~onstr~te f~os~:~,~i?~' of ~o~.~ "tar" ci~c.~tes. ir, crt.ase,~ becoming ~:;ore FuoItive ~elet(.d to the alleged health of e~c..h product. l,~gi~:~v(-s or a~ulter~nts an~ (oloranis of lhe :~tC !~y extend its s,,~,c, ke er,~lv~es incl~B~;::::~::~:bmponents in ~d~itlon to"tar' ~nd ~i~ine. Carbon r,onoxi~o end ot~,~r 9as-l,-ha~~ coa~pur, ents ~re the next lit:el)' ~,o~:,~alvses for these oth{.r com- ~(,vc~'t~s.t~. tn~s c.xtc.ns~on of ~nal~'ses t~o~ ~E*ff~e s~n~ultat,cous oc, tc-rnnnattons ' of v.:~(~.s entit~os; e.g., ,at , nico- tin~ c~,~i~on monoxide, &rid n,tric oxide ::::::::::::::::::::::::::::::::::::::::::::::: I',esc.orch services to ;.rovid.:. inforr:~ti' to combat suci~ regulation will be pro- vided on request, Rest.arch ~,'ill provide techr, olo9), to enable such reductions to be accon~plisi:.. 3. A~:a|{.ness ~:111 be r:.~intair, c.d. 4. A:.,'areness ~dll b~ r~mlntalned. Anticipation of anal).ses reo.uired by t!,~ FTC ~ill I,e o cc, ntinu~'~s ]%search ~. Ool, ar Dr, ent function. ~ RM036406

I0 £, P,e~ulat~on, l'ax~tion, Etc. '.Cith a concerted effort involving I:re- paratlon of a~pro?riate argu.~'.,..nts to rebut tile patent exami~ier; patents be obtainable vh,.,re such effort is dee~md advls,~ble.

II I I. llI[ IO~,kCCO |',;t)'JSfl;Y .,.. R.~"~ J. KEYHOLDS IOi;f,CCO Gm!..erm~nt support oF do:,;.~stic tobacco p,'dductlioa eventuallv ~.Jill be dropped and be.curtailed. T~,e entire system for ch~:n.ge,.And the tobccco ratc.rlal produced ~:l~':~r,,ge in form and have sut,stant}ally r~::::::~:~ll be to~q~rd r.echanized production to~c.~terl:} derived from high densitX ~:.c,~raphlc re~Ions, Fossibly on a t~.:o- for year basis. re~uire subst~hti~) ch~,ges in our i,r~;~>ing and manufecturi~ t(.chnIRu~s. o'J~....1,rc~sent pro~essc.s, aired v~:~::::::f~f~vor ant s, addi t iv~s, substa~ti al ........................ , ; • r~nltorir, ard inter=retction df • • • ' :, " ,..; " ,'-~ ...... .'"L.r . , .results the pri~ry responsibi~ity..o~ . . ... ....... ~.,. ,.,.,,.... . .... :~.~..; .: : " :" '::~:~:~:~*~:: " " "' "' " ,..'"; ...... " ". ": .".the Resoat'cl~ Oc-~.~rlment. 0~, it :"""" ~'" "' '" ' : """ " " p~sslb~e in tcr,:,s cf ~os: and creel- ~]::~::~;~;~ • .':.' ............ "" .' ,.. .= .....:." .". l, i llty to arrange for se~e of thls ~;:=~==%:==~;::~;=:::~ ' to be done by the llatlonal Cancer 5, A co:.?c.t|tor or othor e~.~ency ~.:ill ~ fro:n the qesearch D~partr, ent at the e~per,~e of on-9~i~g projects. Suhst~ntlel change~ tn processin~. nology, r~w materlalg, tnd prod~ct to substantitl -Ireration of st:eke co'- position, ~:ill necessitate increased effort on t, iolc~Ical eveluatlon of n~ or altered ~roducts. Un{,er present C~,;.'p~n/ policy, this vor;: ~:ill be c(,ht)-acted to ir,(:~:sn~ent laboratori~ expensive r.~nufacturi:~9 syste;cs for con- verti,9 ra~.~ ~,a~eria~ to finished cigarette. Institute. G. Efforts along these lines ~.HII contlnu: at an incr~asc.d level, , " RM036408

12 II. l',.~v~ I-~teri~.ls and Proces~,..s If ho~,'~?enized tobaccos are r, roduced and a ~i~..~~ c'pportunity to v~nil'ulate and con.~:~t;,c, co'~position of the product 9r~,@~::~::~;~,se of do;'estic l,roducts as long ~ th:y:~are substa~tia)ly lass expc.nsive ti,~:~::~:.~stlc tobaccos c~,d (~.n be uEgraded sources of off-shore tobaccos ~.~111 gro~ at a faster rate than tl,~t of tho U.S.A.; ~: ..:~:~:~: ~:~:~:~:~:~:~:~:~ ~,ar6:::::~rL?ens~ve, a~d of ~c, ur quality. On,-:--or f.ore.. "ssnthettc" toL~ccos or tobacco ]o~:~b~ends. ~y the e~,d ~f the or~::~"t~ba~co exteno~rs r.'.av ~.~ d:,vc.lolgd to lh~l~t where th~ will rrovid~ reason- ab~::@cceptable ci~arett,..s alcr.e, ngt pr~}~j, ~.fill net in ths rear futura ~e~.:.e.~pens}ve to use ti.~n n~tural Oo~J~@~(~nt or oti~ers suC.?~-st v'ill reduce a):~odly h)r,:~ful effects (,f tgb~cco r;ay le:af shbrtagc.s and improve pr~fitabil I,rescntly, ,o~ever~ all non-toSacco mot(.ria~s are under a "cloud". .7, Past studies indicated that ho:.:og~niza- tion of tl:e strip portion appc.ars to app|'ec~ebly affect sr~ol:e quality adversely. Ilence. further sophisticat" s:ork on i,~mc,~entzatton of leaf are clearl~ indicated, I0, Gy 197E;, ,.J:,-T uill Fro~uce ~:,.d use proprtotary Turkish flavorants in do',,~stic ~rc, du'cts. In cddition to ti:c.~ t:rol,r~e,ary flavorun~s f~rst isolated a decaGc, ag~ In the Hescarch I;:.;.crt(=2~ ~;orl: in pro.grass ~t11 yield new f]avorants. .. uill l'e mainta|_r~'-~L_ In spec~fic "~ "strangers" r.ay be instituted. ~ O~r J~O product, ~:hen deve~o~Pd, may ~ offer aver$ attractive alternative ~ to.use of. synthetic tobaccos.or other.~ :"Cxten~Ol'S~ i:~ tCr,~s'~f both ~cone~,ie~ a,d a~lsued "safety". ,~pproi.ri~c stu~ius o, the ~ro~ertic.s of GlO end JlO-tob~cco s(~oke will be co,.~%ctcd in late Igll. RM036409

13 Alternatives rill be sought. RM0364 ? 0

14 llo lie TOBACCO IIiDUS~kY AIID R. J. REY',IOLDS ~OBACCO CO:IPA:~Y Ill, THE RESEARCII DEPARTgL;~T l~-" WIHSIO;I and SALEH market shares will peak ~:~::~:~:~.. then decline during the projection .~%:~ the leading domestic cigarette in .......... ~o.~ccti~es to ha~ a leading product in ~.~.:~::~:~Bh c~e~cry a~d to ~iscover end produce E. Products Work to .improve smote quality and innovations directed toward establish- ment of new .brands will continue to receive major short- and long-term empha s i s, l,brk to improve smoke quality a~hd innovations directed to;.~ard es~blisb,- ment of new brands will ccnLin'.N to receive m~jor short- ~nd long--~rm empha S i S, Work to improve smoke cuality ~d innovations directed merit of new brands ~. receive major sl~ort- end le"s-term emphasis. 2. lhe present large nur.ber of people in the 2. 18 to 35 year old age group represents ...... :]::![t:t!.~ greatest o2portunity for lone-term i~+::::~.rette sales oro',l/h. Young people .... ~:#~:~:]I continue to beco-,e srno;:ers at or ab.&ve the present rates during the pro- .... ~::~::::~::~::~:~ t i o n p e r i o d. T h e b r a n d s ~,h i c }~ t h e s smot;e accept and use ~.~ill beginning ' rs :bc...come the dominant brands in future ::::::::::::::::::::::::::::::: [vidence is now available to ~:~ ...... indicate that the 14 to 18 year old group ~:::.~::~::~::~:::.::~ an increasing segme',;t of the sF.~king ::~ ...... po.pulation. RJR-T :~ust soon establish .:#]~:::::~.~::]~uccessfu] new brand in thi s market ~:~::~:~:~:~:~::[~[~ o u r ~'o s i ~ i on i n t h e I n d u s try i s t o : -be~n,~intained over the long term. ::: "[":i~::"" 3#i~::~:::::~}~#~ total market for lo~.~ "tar" and nicotine 3. :#:::::~%~brands will continue to gro'a. The ~:~:::~::~#:~:-~b d l 00 - ~,~H ) r e g u I a r a n d me n t i~ o I c a t e - .... ~#:::~::~ries will also continue to gro~.~. .... C~:~bihations of these categories :%~::~ "tar" cigarette in the 4- to 6- -:::~:~:~:~l.~e, regular and menthol) offer new .. , • ...... . -..... .,,; .... • :..... ~:::t:L::~,u~tunities '..The market for very low ""- " .' :"; "" :'"' :::::::: ::::::::::::::::::::~ ~::~~:- r ' c ~' g a ~"~ t { e s ( 2 ~.. ~. o r I e s s ) ~.,' i I l ..::~:]:~:::.. C":::~:re',Hain lir;ited for at least 5 ),ears. ~he . . .... : r:.:..::lo~.,- tar cigarette o2portunities in the 2- to lO-mg range ~ill be exploited the next few years and m~y b~cc~.e an i,[,e~tar, t ~'arkct se~:,ent [y 19~,l. RM036411 CX 55-0

Carl,on-filtered cigarattes will continue 4, ~dec1~m in share of ~nr;:c.t b~cause r, he~bnt off-taste. U~filtered cigarettes ~:::~~e present CS-~:r, ,~or~i Flavor Filter )~.flF)). cigarette w$11 d~clSne in share of :!())~:~B)b end of the projection period, ~)~)~$ally all cSgarettcs sold I~ill ))~.k~'"" :et thor fi 1 ters or m)uthp(ecos, , :~):.:~ , . . . , ~).sL:~:!ranos, resvond(~ to p~essutes (o) 6, ~e"~:=): ~ "'er:~ ~n11 u~entvmlly use ~::;" • ,~;~:;:~;:~.:~:~: , ~ • ~.::~of ~r d~ut~or,. . 7, Spin-offs from established brands will j'ic.ld i,ore tht, n i:odest r,~ot brand oaSn, ~::~i::ettes (i~02), any fully r,~ la'and vlll h~:e Io dellver ~,..~l~sfaction to tho s~ol.er and will ha~e ~[ionand/or physical cor, f~surat~on from ~:St'n t products, ~:~ bUcome those uhich 6oliver n~co~ ~#~sfact~on accompanied @ the least ::~ ur,~l~asant, flavor and ,.outl,-f~el" .... ~Fprima~y factors ~n 0 lhe Resc,~.rch D,..i.art;.:et~L v:ill to ~nticipate brands, leer f~iter concepts will be explored. Capability rill be m~.intatned, concepts rill be explored: l~e~;' cigarette concepts t;ill be sou~h~. In son~ ir, stanc~s, the M-~e~rch ~epart~ent ~)' ba the "court of las~ resorU' i. F, rovidin~ the (:~cess~ry s~,~ke data to indlc:.te tl,at a parti~! additive, colorant, etc. does not contribute "strangers" to tl,e sr~oke,~ P~nel testing ~tll re;~ln at, i~;port~t n,easura of tobacco smol:~ quality; h~,q~ver, p;r,el test~n9 r,~eds to be i~p~oved to beco;.'~ r~re "realistic ~nd a r.,~re obJe:tiv~ pc.asurcr-e,-,t, based on reFroduclble analytical data profiles, Is n~eded and..;~y be technically feasible. t: Io:.:-nicotine clg:-rette acceptable in terms of sF, oi:e b.y i.c1usicn of certain or precursors of th:-.se cc:,:pou~;ds plus other fIavorants. "

IG • , ........ C t 11. 12. One or ~:,~,'e ci.Garette product~ wttl~ novel fle~.r t,.~y ."st;t,l ish anc'.., r~arI:et cate~or~. It, i~r,u;~~(l~vor concept nay include an ai]-~y or flue-cured c(;arette. A c~le ~;iti, "nor,~a~" s~;Loke nicotine a,,d ~ig,~ficantly l:,:ere$ "tar", e.g., L ci~re.:~te desIun(,d end labolcd as being "nod~T:#~able'', i.e., wi:h all:a)ine, Hgh r,arket. k cy:f:~:)..~I it. (L5 et~d/c,r IC:J r,:.~) at or just =,),ov~.,...i~i~::it~h(_ C~)'Iton ("t:r" 4 t,9, nicotlhe for t.~.,....i , i.e. , a c~c :)'c.tte.. at e S- to 7 "" "tc" -~,~ ........... ~, , 0.b-r.~9 nicotine rand 5-~9 or ::~::.. , Tt, e~..j:~, t,e a plece it, t~e ~a)'):et for a pr¢,~;:i:VI th the dir.:c-r, sions e~)d conven- ier,~:~..of.::~a c~arette ~r,d th~ v~uth-ple~e 6rid ~;;~s:~:~ ng p~'o~ erti es and 'couth-fee1' ~.~ ........ • .. ~ The ~,esearch Da|,artv.ent rill att, e,i;pt to c)'cate r,~,~' cc,)~cepts. lhe ~esearch Oepatt~:cnt rill explore now concepts. Sources of nicotine re)' th|s t).pe of cigarette ~v|11 be |nvestlg~ted. . ~ } . , ~ . 15. Research will explore r, evr concepts, )O. lh~i:.e.iiiiii~.,.~uld be i,igh accepta,ce for a 16, Research uill explore r, ew concepts. = "9o6110..i~:::~::Igar~,tte 1(.av|r,g no unpleasant . • ~ I,re~:~:~ or afte)'lcste. " , .~ . " ...... ~ ..... ~ . .. : ..... ..~ ... -..... .... .. :;, ," .~. "',,: ~ :-.,~, ..~. ~:.;... ~ ">~:.v, .. ..~ :',.'~,~.~ .... ,. .: ..... .7...:"...'..."'...," ;1. Ihn~t~*or, s in " ' ' , "'" ....... i,,c,:aglng, ir t:conc;mt " ' ~l, Rese~r~l;~i1) cxplore nevt to:ncepts offer pro~ise aS a

I1 Stu~;'.,s on influence of cigarette para::~'ters on s|:~ke yieid, co:.:/.v~iti: and prop~,rties ~ill continue into t. • i;ro.iectio~, retied. RM036414

ll. JtH. ]6'.;,..LCO '"'~":""~ I,:;{~ R. O FH~'YHr I+'5 ICG..(':..O C6,~ A,IY 18 The contribution of additives other the" l°,ajor Cel, ital ingostir,~nts in ,,>;, or improved e,ad/or fore sgpl,istic~z:'~ instru:"_.nts or ar~z,'etus ~=i11 I:, t,OCtSSat'/ aS the sc~f,e a~d'cc ,,Icxitr of our ~esearch. ((fo~t i~,~'c.,,~'~.

i.#ill I.,o si..;l~r to ti~t for i.(,soarcl- l.cl'so:,r,el for high productivi~ and creativity ~.:ili co.tinue to receiv~ l;lyh priority. 6. Supr, c, rt fr(,:~ tl:o ~e~earch Dapartr,!ent '" " "" for leccnt mr ,w.u~c' ac~is ions I.~111 conLlllue, l, ny i'e~uiroi:ent for basis v~11 recuire e~, i~icr(,ase in the tcchnical staff. ..::{ii!i!!::..