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THE 4BACCO INSTTTUTE l 7H'S ] STREET. NORTHWEST SAMUEL D. CHILCOTE. (R. WASHINGTO'~. DC 2UOUt. President ?U_ 45:-l8UU • NOU d2l•9R:6 January 17, 1983 Mr. George A. Wilson Executive Director Iowa Association of Tobacco Distributors 200 Stephens Building Des Moines, Iowa 50308 Dear George: I do not understand your "position" as expressed~ in your letter of December 27, 1982, and:I am sorry if our position is not clear to you. The Tobacco Institute and the Tobacco Tax Council have always taken the position that the entire industry is best served by no increases in cigarette tax and no unreasonable limitations on the ability of manufacturers, wholesalers and retailers to market our products. In the long run we believe this to be basic to the-survival of the industry and the prosperity of all those who earn their livelihoods from our products. As the representatives of manufacturers, we have always extended ourselves to have good relationships with the other segments of the industry, in many instances contributing substantial funds to the support of state organizations, such as yours, because we believe that strong state organizations are a:bulwark against anti-industry legislative efforts at the state level. George, we have always recognized that, at times, the interest of different parts of the industry will diverge. As you indicate in your letter, this is one of those times. We understand yours and the wholesalers' commitment to the maintenance of your unfair cigarette sales act. Conversely, I expect that you will understand that our first priority has always been and will continue to be the defense of the entire industry against increased tobacco taxes, anti-smoking legislation and attempts to limit the marketing of our products. 0 W a7 . •~ C1t OD . ~ . N

To that end, we have offered our support and a$10,000 contribution to the Iowa: Association of Tobacco Distributors. Believing that, for the most part, our goals are the same as yours, we hope we can continue to work with you for the benefit of all segments of the industry. We hope you will want to continue to work with us. Sincerely, -~ Samuel D. Chilcote, Jr. SDC/c