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245 PARK AVENUE, NEW YORK, NEWYORK 100/7 OFFJCE OF THE CHAIRMAN.OF THE BOARD AND CHIEF EXECUTIVE OFFICER December 6, 1977 Mr. Addison Y. Yeaman Chairman and Fresident' The Council For Tobacco Research-U.S.A., Inc. 110 East 59th Street New York, New York 10022 Dear Mr. Yeaman: Following our discussion of December 5, I should like to summarize our Company's position with re- spect to The Council For Tobacco Research. For many years after the T.I.R.C. was established in 1954 we were able to say that "all grants are made upon recommendation of an~advisory board of inde- pendent doctors, scientists and educators. Recipients of grants are assured complete scientific freedom~in conducting their investigations." Ind'eed, this point was made a part of our pledge to the public in full- page advertisements headlined "A Frank Statement to Cigarette Smokers" and "Nine Important Facts about Smoking andYour Health." The latter ad specifically said: "A Scientific Advisory Board of outstanding doctors, scientists and educators has complete and free rein in directing the research program and awarding the money for grants." This we can no longer say since what is called "directed" or "contract" research has been brought into the picture. As I remarked at the September 1976 meeting, the original concept of T.I.R.C. did not embrace the idea of contract research but en- visioned industry support of research on a ro bono publico, arm's-length basis. I believe the current movement toward contract research is a violation of our advertised pledges to the public and I also be- lieve industry support of objective and independent

r 4 C scientific research is of cardinal importance in maintaining a statesmanlike stance. I do not think it would be an exaggeration to say that. the current shift to contract research bastardizes a fine concept of objectivity which many good people in past years worked long and hard to establish. Quite apart from the departure from first principles represented by contract research, this new develop- ment seems to have led to internal inconsistencies as well. For example, at the September 1976 Directors Meeting your Research Director made the point that mot.tse research in the area of smoking and health in- volved the wrong animal, the wrong tissue and the wrong material. It seems to me that the contract research labeled MA-22, among other projects, amounts to precisely that type of misguided research and that no amount of talk about "animal models" and the like can'gainsay the now-obvious nontransferability of animal results to man. All of us are witness to the scientific reductios ad absurdumiresulting from the FDA's literal adherence to the Delaney Amendment, which makes it possible to label almost any substance carcinogenic. In any event, there appears to me to be a distinct contra- diction between the Research~Director's position and the Scientific Director's enthusiasm for contract re- search of this particular kind, analogous perhaps to the contrast between the CTR's emphasis on fundamental and objective scientific research during its first two decades and its current swing towards contract research. An.interesting sidelight to the above comments on con- tract research and on animal research as such is the experience of the U.K. tobacco industry which conducted its own animal research on a very large scale at its own Harrogate laboratory for many years at a cost of millions of pounds. A few years ago this massive effort evaporated when the sponsors simply turned their backs on it as being fruitless. Another side result of our new direction is that we seem to be combining in one person a Scientific Director and a quasi-grantee, a combination which is hardly compatible with the ad!ministration of an I

r 3 objective and independent grant program. Without entering in any way into a personality question, it seems to me that no single individual can properly discharge both functions at the same time. By you own definition you:are the "interface" between the industry sponsors and the scientists of CTR. Equally important in our view is the interface between our industry and the public generally. It is ironic that we decided some years ago to rename T.I.R.C. "The Council For Tobacco Research" because "Tobacco Industry Research Committee" sounded too much like industry-directed, as distinct fr=in- dependent, research. We think it is a pity that the current CTR lacks the restraint and discipline to live up to the newer name. Sincerely, ~ ~ : L~~CC A Robert K. Heimann Chairman and Chief Executive Officer 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 bcc: Mr. Arnold Henson