Tobacco Documents Online

PRIVILEGED & CONFIDENTIAL TOBACCO INDUSTRY COMPANIES. COMMITTEES AND ORGANIZATION~ : (as of 5/12/89) ABIFIYMO (Associac~o Brasileira da Ind~stria do Fumo -- Brazilian Tobacco Industry Association) (690019826-9829) ABIFUMO was founded on 8/6/78. It is composed of private enterprise tobacco manufacturers, dealers and packers. It was established to analyze, advise and act in view of possible actions that could affect the tobacco industry in Brazil at federal, state and municipal levels. It promotes items which give a positive contribution to the image o~ the tobacco industry. It also serves as a clearing-house for information related to smoking issues, tobacco and agriculture, tobacco advertising and its controversies, export and related legislation and the energy crisis. Special emphasis is placed on social acceptability of smoking. The organization coordinates industry efforts on matters of common interest. The Association's 'Information Centre' is responsible for the gathering of all relevant information and for distribution of related material to its associates. AQVERTISING CODE COMMISSION IN AMSTERDAM This organization appears to be a court or governmental body. It makes rulings regarding advertising disputes. ASHRAm/BOCA (American Society of Heating, Refrigeration & Air Conditioning Engineers/Building Officials & Code Administrators) ASHP~ is an organization which has an interest in the indoor environmental pollution issues. It has both sponsor members and rec/ular members. Brown & Williamson may have an employee who is a member. AUSTRALIAN TOBACCO RESEARCH FOUNDATION (690016375-6386) The Foundation was established in June 1970. It consisted of representatives from W.D. & H.O. Wills (Australia) Ltd., Rot~tmans of Pall Mall (Australia) Ltd. and Philip Morris Ltd. It had four scientific members, who also formed the Scientific Advisory Com~=ittee. The Foundation provided grants for research into the rela=ionship between tobacco smoking and disease.

PRIVILEGED & CONFIDENTIAL BAT Co. (690133326) BATCo, which was first registered in London in 1902, is the subholding company for the Group's world-wide tobacco Interests. It is now a wholly-owned subsidiary of BAT Industries. BAT INDUSTRIES (526004487) In July 1976, BAT Industries was formed as the new parent company of the BAT Group as a result of the merger of BATCO wlth Tobacco Securlties Trust. The merger was structured as a reverse take-over so that Tobacco Securities Trust became the parent company of the BAT Group and changed its name to BAT Industries.. The merger was followed by a corporate reorganization designed to give BAT Industries a holding company stz-ucture appropriate the divisional organization of the BAT Group. Subholding companies were formed or re-established to manage the group's interests in each of the four operating divisions. BAT TRADE INSTITUTE (690133340) The Institute was founded in 1972 as a result of several "speclalist" seminars conducted in the mid-1960s for members of the trade. The Institute's aim Is to broaden cooperation between BAT and the trade. (690133551-3552) Effective Jan. l, 1980, BATUS, Inc. assumed sole management responsiDility for BAT Industries' major business interests ~n the U.S.A., including the toDacco and retail companies that had been operating under B&W Industries. BATUS reports directly to the main board of BAT Industries in London. The BATUS management structure includes B&W, Saks Fifth Avenue, Gimbel Department Stores, Kohl Supermarkets, Kohl Department Stores, Appleton Papers and Export Leaf Company. The three industrial divisions under the BATUS Group Board are the Tobacco Division, the Retail Division and the Paper Divlsion. The principal officers of BA~JS were the same as those previously for B&W Industries: J.E. Edens, C.I. McCarty and H.H. Porter, Jr. The Board of Directors of BATUS included: P. Sheeny, -2-

PRIVILEGED & CONFIDENTIAL P.G.M. Best, B.P. Garraway, J.J. Hangen, A.R. Johnson and R.J. Suslow. D.A. Schechter served as Secretary to the Board. HILL HECHT & ASSOCIATES (WASHINGTON ASSOCIATE OF CARPENTER This company may be involved in lobbying for TI. It appears that Hecht would tell Pepples to whom money should be sent. Pepples apparently would then send the money to Kornegay, who would distribute it. William Hecht was a TI vice president from 1976 through 1980. HROWN & WILLIAMSON INDUSTRIES~ INC. (690133319) Brown & Williamson's acquisitions of Vita Food Products, Inc., the Kohl Corporation and Gimbel Brothers, Inc. led to the formation of Brown & Williamson Industries, Inc. as a "new corporate center" in September 1974. Brown & Williamson Industries serves as the central management group to the operatlng companies that comprise the group. Brown & Williamson Industries is a wholly-owned subsidiary of B.A.T. Industries, Ltd. CAMPHELL-JOHN$ON~ LTD, (A member of the Hill & Knowlton Group of Companies) Campbell-Johnson issues Smoking & Health Monthly Reports. It is employed by the TAC as a clipping service and to summarlze smoking and health media. The TAC sends Campbell-Johnson's reports to BAT, which probably then sends them to Brown & Williamson. CANADIAN TOBACCO MANUFACTURERS COUNCIL This organization is Canada's version of TI. (521061960) CORESTA is a standards-setting organization of European countries and tobacco companies. -3-

PRIVILEGED & CONfiDENTIAL COU~C~ FOR TOBACCO RESEARCH (CTR) (690107781-7788) CTR is an independent, industry-supported medical and scientific research support organization that sponsors research into smoking and health issues. It was formerly called the Tobacco Industry Research Committee (TIRC), an organization formed in early 1954 by tobacco manufacturers, growers and warehousemen. The name change occurred in Janual-y 1964. CTR's Scientific Advisory Board meets regularly to evaluate applications for grants and contracts. Qualified applications are approved, and CTR awards research grants to independent scientists, who conduct the approved research and publish the results without CTR direction or control. CTR regularly publishes descriptive material on study projects it is funding, and the project results are available through medical and scientific publications, and through CTR. ETS ADVISORY COMMITTEE (NATIONAL ETS ADVISORY COMMITTEE OR PUB~%C SMOKING ADVISORY GROUP~ The National ETS Advisory Committee addressed issues concerning ETS. Its members were attorneys, company repre- sentatives and TI representatives. It is ~ot a TI committee. The committee was set up in 1978 at Ernest Pepples' request and was initially called the Pepples Committee. In 1981, Hoel (SH&B) took over the chairmanship of the committee, which was then called the ETS Committee (a/k/a NETS Advisory Committee or ETS Advisory Group). Later, Sirridge took over chairmanship, and then in 1983, Hoel was chairman again. Research was funded throug~ CTR Special Pro~ects and Special Account 4. FQR$CHUNGSRAT RAUCHEN UND GESUNDHEIT This organization is an advisory board of independent scientists who meet and decide which research grants should be funded by the VDC. HONAN TOBACCO AND SUGARDEET INDUSTRY RESEARCH INSTITUTE. CHENGCHOWl HONAN (680225011-5012) This institute was organized in 1958. Its four research laboratories include leaf material, manufacture, engineering and chemistry. -4-

PRIVILEGED & CONFIDENTIAL This organization is an Illinois research and technology institute, and it did some work for B&W. Its CTR Special Pro3ect was approved in May 1985 and was entitled, "Investigatlon of Self-Reporting Questionnaires for Environmental Tobacco Smoke." David Sterling was involved in this project. IMPERIAL DE~rELOPMENTS, LTD. (680279889) In March 1967, Imperial Chemical Industries and the Imperial Tobacco Co. formed a company called Imperial Developments, Ltd. "to take over the development and manufacture of any new smoklng material to emerge from the research program." IMpeRiAL TOBACCO GROUP (680227818) Imperial, one of the largest tobacco companies in Great Britain, owns approximately 29% of BAT and, together with BAT, controls Tobacco Securities Trust, Ltd. INDEPENDENT SCIENTIFIC COMMITTEE ON $&H/FROGGATT COMMITTEE/ HUNTER COM~ITTEE (680583161) The I.S.C. is another name for the Hunter or Froggatt Commlttee. The committee revlews British regulations regardlng addltives and flavors and seems to have done some less hazardous clgarette research as well. The committee is appointed by the health ministers to advise them and, where appropriate, the tobacco companies on the scientific aspects of smoking and health matters. Funds for research made available to the committee by the Tobacco Advisory Council as part of the voluntary agreement between the govez-nmen~ and the industry have been transferred to the Tobacco Products Research Trust, which has been established to disburse research funds on the advice of the com~ittee. The I.S.C. meets and issues reports on an ad hoc basis. Hunter was the first chairman of this committee, Fairweather was the second and Froggatt was the third. INDUSTRY RESEARCH REVIEW GROUP Pepples was chairman of this group in 1982. The group recelved research funding requests for C~ Special Projects and Speclal Account 4 projects. -5-

PRIVILEGED & CONFIDENTIAL INDUSTRY TECHNICAL COMMITTEE (ITC) The ITC is an advisory group to CTR, but it is not actually a part of Cq~R. It was formed in 1966 or 1967 because CTR had started funding research on smoking machine development. INFOTAB/ICOSI ICOSI (International Commission on Smoking Issues) was formed around 1978. It was reorganized in 1980 or 1981 as Infotab. It is currently located in Brussels and will soon move to London. Infotab is an information clearinghouse that collects articles and legislative information. The data is funnelled to Infotab by members of the industry. Infotab is considered to be a trade organization. The founding companies are R.J. Reynolds International, BAT, Philip Morris, Reemtsma, Rothman's, Imperial and Gallaher. The last three companies dropped in and out. A company had to give three years notice to resign. BAT gave its notice to resign In late 1987 in conjunction with B&W's resignation from TI. BAT and B&W's resignations were partially because of the Barclay controversy. The companies pay the Infotab dues, but the beneficiaries include the national manufacturing associations (NMAs). NMAs worldwide receive newsletters from Infotab. They can call and get information on various topics. G.C. Hargrove of BAT was on Infotab. INTERNATIONAL STANDARDS Q~GA~ZZATION The ISO is located in Brussels and is used by European nations. Its activities include setting up cigarette standards. Naisbitt wrote "Trends in Anti-Smoking Publicity," a literature search, and was funded by B&W. -6-

PRIVILEGED & CONFIDENTIA5 NATIONAL ASSOCIATION OF TOBACCO DISTRIBUTORS (1933-Present per ~ Interrogatory Answer No. 77) This organization serves as a communication link for its distributor members, associates and affiliates and provldes a forum for education, enhancement of trade relations, the exchange of information, political awareness and influenceand various cooperative services. NATIONAL CANDY WHOLESALERS ASSOCIATION. INC. (Munn Interrogatory Answer No. 77) The purpose of this organization is to unite members of the wholesale confectionery industry. NATIONAL TOBACCO COUNCIL (Mu~ Interrogatory Answer No. 77) In 1982, TI merged with the Tobacco Tax Council, which included the Tobacco Tax Council Board. This board later became the National Tobacco Council. On an organizational chart, the National Tobacco Council appears alongside TI and is linked to TI with a dotted line. The Council, which is housed in TI facilities, is a small group of people who act as consultants to TI. The purpose of this organization is to serve as an industry-wide council and forum for the discussion and conslderation of legislatlve and regulatory issues of common interest and concern to all segments of the tobacco industry; to mobilize support for any common position on such issues that may be developed by the industry; and to gather and distribute information about tobacco lssues of public importance. PUBLIC SMOKING ADVISORY GROUP This group was comprised of representatives from the six companies and was reactivated by the Committee of Counsel. It does not seem to be part of CTR or TI. The companies paid for the research by market share percentage. (Is this group the same as the ETS Advisory Committee?) RETAIL TOBACCO DEALERS OF AMERICAx INC. (Munn Interrogatory Answer No. 77) This organization works for the welfare of the tobacco trade and battles unfair cigarette laws and taxes. -7-

PRIVILEGED & CONFIDENTIAL SHANGTUNG TOBACCO RESEARCH INSTITUTE, I-TUNG. SHANGTUNG (680225010) This research institute was established in 1959 as an agricultural experiment station under the Academy of Agriculture Science, and was responsible for nationwide toDacco research. In 1971 it was reorganlzed and became the Shangtung Tobacco Research Institute. Its focus is mainly on tobacco production and research within the province of Shangtung. Activities include breeding, culture, plant protection, curing, chemical analyses and special projects. It has laboratories, greenhouse facilities and an experlmental farm. It encourages the "three-way united term approach" including party leadership, technlcal personnel, and commune members. SH-QCHANG TOBACCO EXPERIMENTAL STATION. HONAN (680225010-5011) This station is located in the main tobacco producing area of Honan province. Current activities include the following: Development of new varieties, culture, fertilizer, spacing, disease, insects and curlng. SMOKELESS TOBACCO RESEARCH COUNCIL This organization has many activities which are similar in purpose to CTR. It solicits applications and funds research in the area of smokeless tobacco products. It also performs many activities similar to TI, such as lobbying and public relations work. The president is Michael Kerrigan (former vice-president of TI). SOCIAL ACCEPTABILITY WORKING PARTY S.A.W.P. is a project under ICOSI. It was to monitor smoking issues in Europe especially with respect to risk/benefit. It may have continued once ICOSI turned into Infotab. The S.A.W.P. commissioned white papers to be written by SH&B on the subject of risk/benefit. S.A.W.P. lasted one or two years (mayDe 1980-1982). SOUTH W~STER~ NOMINEES. LTD. South Western is a London-based holding company whose principal activity is holding the stock of BATUS. -8-

PRIVILEGED & CONFIDENTIA[~ SO~THE~N TOBACCO & CANDy ASSOCIATION Interrogatory Answer No. 77) The purpose of this association is to keep members abreast of industry trends and to facllitate educatlonal and lobbying efforts for the beneflt of the members. TOBACCO ACTION NETWORK (TAN) (Mu~ Interrogatory Answer No. 77, 690107781-7788, 690132666- 2673) The TI State Activities Division maintains a nationwide field force of approxlmately 40 persons who lobby state leglslatures and who also run TAN. TAN, which was begun by TI in 1977, is made up of manufacturers' field sales employees, wholesalers' employees and retailers who have volunteered to participate. Membership is open to the general public. TAN develops and coordinates state, country and municipal tobacco support groups nationally. It writes letters for TI in order to obtain contact with officials, and it makes "tobacco friends" in leglslative campaigns. TAN employees attend hearings in order to gather information for TI. Other activities include informlng its members about news of interest to the tobacco industry and asking its members to express their opinions on public issues. TI funds TAN out of its general budget. B&W makes no contribu- tions to TAN, but in each state where TAN is organized, B&W selects a State TAN Representative who has volunteered to represent the company on the State TAN Committee. TOBACCO ADVISORY CO~IMITT~E CTAC) The TAC is the British equivalent of CTR. previously named the Tobacco Research Council. The TAC was TQBACCO ALLIANCE (690132031) The Alliance was formed by the Tobacco Advisory Council in 1983 to be a communications network for the tobacco family and its allies. It is similar to TAN. TOBACCO ASSOCIATION OF THE UNITED STATES (521043028) This organization appears to be made up of leaf buying companies. -9-

PRIVILEGED & CONFIDENTIAL TQBACCO INDUSTRY LABOR MANAGEM]~NT COMMITTEE (521042698) The purpose of the Tobacco Industry Labor Management Committee Is to contribute to greater cooperation among the varlous segments of the tobacco industry in order to improve job security and economic development and to assist employees and employers in solving problems of mutual concern. The Committee performs this function through public education and research addressing problems facing the tobacco industry (e._~., unwarranted restrictions on the advertising, promotion or sale of cigarettes and other tobacco products). The Committee does not deal with wages, hours or any other aspects of employment relationships. As of January l, 1985, membership in the Committee included representatives from: the Bakery, Confectionery & Tobacco WorMers International Union; the United Brotherhood of Carpenters & Joiners; the International Brotherhood of Firemen & Oilers; the Sheet Metal Workers International Association; and TI. TOHACCO ~NQUSTBy PUBLIC AFFAIRS COMMITTEE (TIPACl (690107781-7788) Before February 1982, TIPAC was called TOPPAC (Tobacco People's Public Affairs Committee). Political contributions from executive and administrative employees of TI's member companies are distributed by TOPPAC to candidates for congressional office who have the ability to render effectlve public service and who agree with the industry's philosophy regarding the importance of the free enterprise system. TOPPAC is managed by TI. TOBACCO INDUSTRY RESEARCH COMMITTEE (TIRC) (680263509) TIRC was a joint industry group initially made up of the tobacco companies and growers associations. It was formed around January 1954. A scientist was in charge of the committee's research activities, and an advisory board of independent scientists advised the TIRC on its research activities. TOBACCO INSTITUTE {TI) (6901077~i-77~8) TI was founded in 1958 and is the Washington-based trade association for the tobacco manufacturers. TI is funded entlrely -i0-