Tobacco Documents Online

I Liggett Group Inc. 30o North Duke Streei, Durham, Northl Carolina 27702 (9I9)' 683-8802 ]p~~s+s. ~.x, ~~ Wia Pealdans I~ daKral Icounm1 February 2'4, 1989 The Honorable Thomas A. Luken, Chairman Subcommittee on Transportation, , Tourism and Hsm&xdous Materials Cosnmittee on Energy and! Cammerce United States House of Representatives Room 2125, Rayburn Fiouse Qflice Building Washington, DC 20'SL5' Dear Chairman 1.ukens I write in follow-up to Mr. Iley''s letter to you of February 101, 1989 in vhieh, he acknowledged receipt of your letter to him of Janvary 26, 1989. .. Please be advissd' that I have caused to be made a diligent search of the records of Liqgett Group Inc. relative to the specific matters about which you make inquiry, and based upon this due diligence search and to the best of my knorrledge, I' advise and inform you that Liggett Group Inc. in only one in- stance has pa£d' to have its tobacco products used in any f ilm i8sued, since January 1., 1979. This i.s as lollowss In 198'3~., a marketing, tnanager,, whol no, . longer is! wit}ioureompany+, together with one or more other marketing department emplowees, enterediiwto negotiations with a filta, company with a view to rsachin'g a written agreement whereby a 3G-shest color billboard' featurinq Liggett"s LV'E cigarettes would be placed on the set of the movie 'RUlERGIRL" and would ba featured in certain scenes of' the teovi... Following oertain negotiations and excbanqes of proposed dxafts which would have effectuated' a written contractual arranqement, senior aaanageaaant of Ligqett Gr~oup Inc., decided to terminate these discussions and reject the proposed transaction, only to be advised and informed that ths: film compasay had already performtd the services Qontemplated, at least arquabip under an oral agreement. Thi filra company, throuqh its representatS.ves, raade demand; for payment as per invoice submitted, and the statement so rendered was paid by Ligqatt Group Inc. in 1jauoflitigatinq the issue. ' As to this one incident in which Liqqett Group 1inc. has raad'e; payment tol havs, one ofi'ts tobacco products used, in a film, I' respond to your questions and the various sub^parts thereof as follvwiss

-0000000000000004' a . -a- (l) "SUPSRGSR'L" (a')' (a) i'301,000 (b) ARTISTRY LIMITED: Pinewood Studios' Zver Eieath, Bucfks, England 6L0 ONH . Cc)' -in-care-of- Alta Mar.a Productions, Inc. Alta Marea Productions, Inc. Aoward A. Levine 40 East 34th Street New York, NY' 10016 Telephone s(212) 68 6-34 001 (dY EVE (a), Our company is without knowlefte or information as to, whether the movie script a+ar altered to include a smoking scene. (ft Liggett Group Inc. never entersd into any: written agreement with Artistry Limited or Alta Marea Productiofis, Inc. pursuant to which Liggett obligated itselff to make payment to have one of its'tobacco proQucts used in a film, and hence the sub-question is not applicable. Ligqett Group Inc. is o!' the understanding that' A'rti'.stryn Limited had absolute discretion as to the final content of the lilm, and, oontyrollsdall artistic and technical dec3,sionsofa11 aspects of' production and post-production of tfiR !!ilm. (q) Liggett Group Inc. never e+ntered into anv_r .rritten agreement with Artistry Z.i'~Mited or, Alta wcerea Productions. I'mc.pursu+tint to which~ L.,iqgett obSiqateditselfd to saaRe payment to have one of its: tobacco products used, in a film, and hence the suwb-questioa is not applicabl+s. Ligq+stt Group Inc. was nati*f!ed on or about April 9'r 1984 that Artistry Limited taad fully performed pursuant to tKe proposedi enQagetnemt, and an invoice for such services purportedly soo rendered was subnaitted!. (3) (a) Not applicabiej Sa. Mt€1 and (1yi('a) hereinabove appearing. Liqqett from time to time does continue to recesive `soiitations from film companies for Liggett"s pavnaent in return, for the featurinq of products in films. Ltgqettt's position is that it will not pay for product to: be used in f.ilms or for anv othez' promotional aervicas! in connection with fiims.

-W BY: 000000000000000;# 4 I am forwarding this letter for and on behalf of Mr. nev since he is,out of tha country at this time. , Jpsiah S. Murray, ZII JSM,1II:hb cc: Mr., K.. v.. At. Day, Jr. QD ~. ~ : O ~. ~ ~ ,. Q!t