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m THE COUiNCIL FOR TOBACCO RESEARCH-U.S.A., IN'C. 110 EAST 59Tx STREET NEW YORK. N. Y. 10022 December 9, 1977 Mr. Robert K. Heimann Chairman and Chief Executive Officer American Brands, Inc. 245 Park Avenue New York, New York 10017 Dear Mr. Heimann: The thrust of your letter to me of December 6, 1977, as I understand it, is that because certain of the research projects carried on by The Council are performed under contract rather than as a grant, the original purposes and principles of the Tobacco Industry Research Committee (later The Council for Tobacco Research - U.S.A., Inc.) have in considerable degree beern subverted or violated. If that is the opinion entertained by you then I can only say that I believe you to be completely mistaken. The fact is that every contract entered into, just as any grant made, by The Council is consistent with the programs developed an& approved by the Scientific Advisory Board, of which of course the Scientific Director is a member. Every suchicontract is subject to the same consultation, scrutiny, discussion, modification and ultimate vote on approval or disapproval as is every grant. The fact that aproject is carried on under contract is in no way and~to no degree at the sacrifice of "objective andlindependent scientific research" (your letter). Moreover, there is an unusual review process to which contracts are subjected; a subcommittee of the Advisory Board plus ad hoc consultants review the contract programs and progress once or twice each year in addition to the annual overall review by the entire Advisory Board. There is no "contrast between the CTR's emphasis on fundamental and objective scientific research~during its first two decades and its current swing toward contract research" (your letter). Contracts are used because in each instance it has been found impracticable or impossible to carry out the work through the medium of a grant-in-aid'to an individual researcher. The emphasis is still on "fundamental and objective scientific research" (your letter). Research under contract to The Council is as purely "pro bono publico" as is research carried on under grants.

, Txi: COUNCIL FOR TOBACCO RLSEaizcII -U.S.A., Ixc. . Mr. Robert K. Heimann - 2 - December 9, 1977 I have made no effort to reply to~your letter in detail because to do so would, I think, simply lead'to disputation. You will understand~, however, that I wouLd welcome the opportunity to discuss your letter in greater depth. AY:ek cc: Mr. V. B. Lougee III Miss Janet Brown Mr. Richard H. Stinnette Mr. Joseph F. Cullman III Mr. Joseph E. Edens Mr. Clifford H. Goldsmith Mr. William D. Hobbs Mr. Curtis H. Judge Mr. Colin Stokes

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