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PHILIP MORRIS INTERNATIONAL INC. INTER-OFFICE CORRESPONDENCE 120 PARK AVENUE, NEW YORI4 N.Y. 10017 TO: G. C. Bib,le / DATE: July 11, 1989 FROM: A. Whis SUBJECT: ETS This report briefly summarizes the status of the international ETS consultant program, which was initiated by PMI approximately two years ago. Details of the program, on a region by region basis, are set forth in the notebook that is attached. With the assistance of Covington & Burling, approximately 70 scientists in the major international markets of concern to PMI have been recruited into the program. The participating scientists have been included in country or regional groupings, corresponding roughly to the way in which PMI's corporate affairs function is structured. Budgeting for the program is managed, in the first instance, by the PMI corporate affairs heads in the individual regions. Corporate affairs staff at PMI New York exercise general supervisory control over budgetary matters as well as all other aspects of the program. In addition, the external lawyers involved in the program report regularly to both PM and PMI legal counsel on aspects of the program having potential legal implications. During the past two years, the period of the international consultant program's operation, several hundred, specific activities or events have been completed. These have included numerous press briefings, repeated briefings of important government officials, the publication of a number of review articles on the science of ETS, several air quality monitoring studies, convening of a number of scientific conferences, submission of comments on smoking restriction proposals being considered in a number of countries, testimony before a variety of legislative bodies, preparation and submission of affidavits and offers of proof in cases involving claims concerning ETS, publication of a book ("Clearing the Air") that seeks to put ETS into proper perspective, drafting of two additional books on ETS and indoor air quality issues, and approximately 100 separate presentations at major international scientific meetings challenging the unwarranted health claims that have been made concerning ETS.

A reasonably comprehensive catalogue of the accomplishments of the international ETS consultant program is included in the attached notebook. The list that follows may serve, however, to illustrate the scope and intensity of the work that already has been completed: I. EEC 1. Imperial College Indoor Air Conference -- August 1987. This major international conference, attended by more than 100 scientists from around the world, was organized by one of our consultants in the U.K. Approximately 20 papers were presented at the conference by our consultants, all of which were published in either the conference proceedings or a major journal -- International Technology Letters. The papers included a review article on airline smoking, which was relied upon as recently as a week ago in airline hearings in the U.S Congress, and several major reanalysis of the results of the Hirayama study on ETS and nonsmoker lung cancer. 2. Several of our consultants have submitted a research proposal to the EEC Commission in response to a Commission request for an analysis of indoor air issues and a set of action recommendations for member countries. Efforts currently are being made to secure approval of the proposal, which would result in our consultants' writing a blueprint on indoor air issues for the EEC. 3. Six of our U.K. consultants have prepared affidavits that are to be used in defense of the AFCO case in Australia. The plaintiffs in that case are challenging an advertisement sponsored by The Tobacco Institute in Australia stating that "there is little evidence and nothing that proves scientifically" that ETS adversely affects the health of nonsmokers. 4. our consultants have briefed government officials in several of the EEC countries on the airline smoking issue and in connection with smoking restriction proposals that have been advanced by government health authorities or members of the international antismoking community.

5. Two books have been drafted, drawing heavily on contributions by our EEC-based consultants. The first of these books focuses on ETS. The second extends beyond ETS to the more general issue of indoor air quality. Both books should prove to be useful as teaching devices in colleges and universities and in briefings with both government officials and journalists. II. EEMA 1. Several of our consultants participated in Healthy Buildings '88 in Stockholm during the summer of 1987. A number of press briefings and other presentations were scheduled for our consultants in connection with that conference, resulting in approximately 70 favorable articles in newspapers in the Nordic Region. 2. Three of our consultants participated in the SAS airline study. They have prepared and submitted journal articles reporting on the study's results and also have participated in a number of briefings concerning the study requested by SAS management. 3. Several of our consultants have made presentations on ETS to committees of the Nordic Council considering smoking restriction proposals. They also have participated in other aspects of a lobbying program designed to defeat those proposals and in a program opposing any further restrictions on airline smoking by Nordic governments or carriers. 4. Our consultants have carried out a major air quality monitorings study in Switzerland. They also have participated in briefings to publicize the study's results. 5. Two of our consultants have drafted papers that are to be used to convince a major union in Sweden to address the issue of indoor air quality and to oppose smoking restrictions. III. Asia Pacific Region 1. One of our consultants recently made. a presentation to the Hong Kong Consumer Council that resulted in the Council's (a) disapproving proposed restrictions on tobacco advertising in Hong Kong and (b) taking the position that the

smoking restriction proposals advanced by the Hong Kong Council on Smoking and Health could not be justified on health grounds. 2. Other consultants have submitted written comments on the pending Hong Kong smoking restriction proposals and have participated in a press briefing and radio call-in program concerning the proposals. 3. Our consultants convinced the Australian trade representative in Hong Kong to sponsor a major. conference there on indoor air quality issues. They then made presentations at the conference, which were reportedly widely in the Hong Kong press, showing that ETS is an insignificant factor so far as indoor air quality is concerned. 4. Two of our consultants have convinced the Asian Association of Occupational Health to create a standing committee on indoor air quality. The committee's charter, utilizing our consultants, will be to create an indoor air "white paper" and a recommended set of priorities concerning indoor air matters for Asian governments. 5. Our consultants have completed several media tours in the major Asian markets, resulting in numerous articles being published in the Asian press putting ETS into perspective. IV. Latin America 1. During 1987 and 1988, our consultants participated in two major briefing sessions for Latin journalists and government officials. 2. In December 1988, several additional consultants made presentations on ETS at a conference in Argentina sponsored by the National Academy of Sciences of Buenos Aires. The results of that conference have been preserved in a set of written proceedings, which is being utilized in other briefings in the Latin Region. 3. In April 1989, our consultants participated in an extensive set of briefings -- for journalists, government officials and members of the scientific community -- in Guatemala and Costa Rica. A number of excellent newspaper articles and television reports followed the presentations. [ •3 Ui G c 0 ~ ~ c u-~ V

4. Two of our consultants are participating this week in a major scientific conference in Caracas, Venezuela, which we have organized. An extensive set of media interviews has been scheduled to coincide with the conference. V. Canada 1. A response to the adverse ETS report released by Health and Welfare Canada has been drafted by two of our consultants. 2. Another of our consultants is serving on the organizing committee for a major international indoor air quality meeting that is scheduled to be held in Toronto in mid-1990. A number of our consultants are scheduled to make presentations at that meeting. 3. One of our consultants provided a written endorsement of an air quality monitoring study conducted in Canada_by R.J. Reynolds. The endorsement was used at a press conference called to release the study to the Canadian press at the time smoking restriction proposals were being considered in Toronto and by the Canadian Parliament. 4. Two of our consultants testified before a joint committee of the Canadian Parliament in opposition to smoking restriction proposals. 5. Two other consultants participated in the press conference that was called to release in Canada the book "Clearing the Air." The press conference resulted in a number of favorable stories in the Canadian press. I have attached some facts pertaining to the program, they give a birds-eye view of activities around.the world - and provides the opportunity to focus more clearly on where additional efforts are required. Australia merits a special mention - we have been unable to operate as vigorously there as we would have liked. Our legal advisors have asked us to tread carefully until the AFCO case is settled. We are given a decent chance of winning this case - provided the local efforts are not jeopardized by public stridency. The above does not provide a complete inventory of our various activities - we have attempted to create an

atmosphere of not resting on past laurels, but continuing to keep up the pace, going just as hard as our limited manpower and financial resources will allow us. cc: W. H. Webb L. Pollak

INTERNATIONAL ETS CONSULTANT PROGRAM 1. Total Number of Scientists Recruited: 70 EEC ------- 45 EEMA ------ 9 Asia ------ 8 Australia - 3 Canada ---- 5 2. Affiliated with universities: 49 EEC ------- 31 EEMA ------ 7 Asia ------ 6 Australia - 1 Canada ---- 4 3. Private consultants: 21 EEC ------- 14 EEMA ------ 2 Asia ------ 2 Australia - 2 Canada ---- 1 4. Disciplines covered: Epidemiology Biostatistics Pulmonary Medicine Occupational Hygiene Toxicology Pharmacology Risk Assessment Chemistry Biology Building Systems 5. Average annual fees: No retainers paid. Compensation on basis of time spent. $15,000 to $20,000 per year on average. 6. Scientific Conferences (not including press briefings): EEC ------- 12 EEMA ------ Asia ------ 6 7 fJ Cn ~ Australia - L/A ----- 0 6 0 n ~ Canada ---- 5 V ~-, a~

7. Published papers: EEC ------- EEMA ------ Asia ------ Australia - Canada ---- 25 8 3 3 4 8. Papers in preparation: Scientific 17 Workplace 8 Hospitality 3 Transport 5 9. Scientific briefings: EEC ------- EEMA ------ Asia ------ Australia - 14 4 6 2 L/A , ----- 5 Canada ---- 1 10. Political briefings: EEC ------- 8 EEMA ------ 6 Asia ------ 4 Australia - 2 L/A ----- 13 Canada ---- 8 11. Management briefings PMI EEC ------- 6 EEMA ------ 11 Asia ------ 4 Australia - 3 L/A ----- 2 Canada ---- 6 (RBH and other companies) 12. Management briefings other companies and their employees: EEC ------- 16 EEMA ------ 14 Asia ------ 7 Australia - 2 L/A ----- 0 Canada ---- 6 (see entry 11 above)

13. Media results: (including favorable T.V. and radio interviews) EEC ------- EEMA ------ Asia ------ Australia - L/A ----- Canada ---- more than 500 more than 300 approximately 100 approximately 100 over 100 50 odd 14. Books: USA ---1 (published in 3 languages) UK ---1 (published in 4 languages, near completion) International-- 1 (published simultaneously in all regions, near completion) 15. Legal preparation/ETS lawsuits: Australia - 10 affidavits prepared in AFCO case 16. PMI regional personnel involved (not including country representatives): EEC: M. Horst, P. Maglione EEMA: B. Robinson, K. Ware Asia: J. Dollison, J. Goodheart, J. Fung Australia: P. Francis L/A: Dr. F. Moreno, A. Gonzalez Canada: C. von Maerestetten Lawyers: L. Pollack, F. Newman, A. Holtzman, H. Brass, B. Brooks, F. Dulles 17. Covington & Burling lawyers: J. C. K. B. A. D. Rupp (Washington) Lister (London) Teel (London) Smith (London) DuPont (London) Billings (Washington) M. D. M. Sidak (Washington/London) Remes (Washington) Jacobs (Washingon) r-a Cn C. Ely (Washington) c 18. Covington & Burling research assistants: a ~ 0 J. M. L. Greene (London) Whitney (Washington) Alkire (Washington) m r-Q

19. Courtesy campaigns: EEC 8 EEMA 2 Asia - Australia 1 L/A - Canada 1 20. Total project cost over two years: $2,500,000 21. Total legal cost over two years: Approximately $1,000,000