Ness Motley Documents
The Secrets of the Mouse House, Initial Development Report
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Affected Defendants: BAT, B&W, PMI, RJR, L&M, SHB
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- Safe Cigarette
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- Wynder, Professor
- Green, Dr. James
- Mold, Dr. James
- Velmans, Mr. Loet
- Hardy, David
- Green, Dr.
- Colucci, Tony
- Garraway, Brian
- Sarokin, Judge
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THE SECRETS OF THE MOUSE HOUSE
Initial Development Report
(c) Diverse Production Ltd for Panorama • 24 November 1992

INTRODUCTION
Professors Doll and Fletcher wander around Oxford. They are two of
the grand old men of British science. In the '50s they were the first
researchers to draw attention to the high cancer rates amongst smokers.
They began a process of international scientific investigation which
proved, beyond a shadow of doubt, that smoking is far and away the
greatest cause of disease and preventable death in the western world.
They walk past tobacco adverts and groups of young people smoking.
They are, they confess, disappointed to see smoking still so popular and
the tobacco industry still so strong. Back in the '60s they had hoped to
see the habit almost eradicated by the end of the century.
Meanwhile in the same city solicitor Charley Hopkins meets one of his
clients, a lung cancer patient who is trying to sue the tobacco industry.
Hopkins, with 250 British cases on his books, is battling against the
tobacco industry's surprising, but highly successful, defence strategy:
'We do not accept', say the industry, 'that our products are dangerous.
We do not accept that the case against smoking has been proven. We
call for more scientific research. Meanwhile we carry health warnings -
if governments force us to - but we do not accept they are valid.
However, if you do become ill those warnings, which we do not believe
are true, nevertheless absolve us from all responsibility for your
condition."
Tobacco executives call this policy 'the tightrope'. It hangs on one
critical claim - that the industry has no detailed information on smoking
and human health. Meanwhile companies call for more research to
resolve the 'smoking and health controversy', indeed companies will
happily funds such research - the longer-term and more detailed the
better. In truth the industry would like 'research' into smoking and
health to go on for eternity. For while there is research there is still the
option of saying 'we don't yet know all the facts....the ease against
tobacco is not yet definitely proven'.
On this 'tightrope' is balanced their legal position, their residual
respectability and their vast profits.

But what if the tobacco industry knows exactly what its products do to
its customers? And what if the industry is covering this information up
whilst simultaneously telling its consumers that it will fund objective
research into the health 'controversy'?
Tonight Panorama investigates the secret tobacco industry health
research programmes. We reveal how these studies dearly
demonstrated the dangers of smoking - and were then disowned by the
executives who had commissioned them. We talk with former industry
researchers whose work has been buried without trace. We identify the
safer cigarettes which were manufactured but never went on sale. And
we contrast what the tobacco industry says about health in public with
what it knows about health in private.
2

BUILDING THE MOUSE HOUSE
The tobacco industry has changed out of all recognition. Back in the
late 1950s it was run by a rather genial bunch of pan-timer~ Tobacco
executives were not thought to be the most highly-stretched of
businessmen. Competition was not intense. A cosy cartel neatly divided
the market. When the first reports linking smoking to lung cancer were
published the industry did the decent thing - it invited the scientists
around for a chat.
Doll and/or Fletcher talk about the early response of industry
executives. The men were genuinely shocked that their products might
be dangerous. They wanted to know more.
Then came the first animal tests - American scientist Prof. Wynder used
smoke to produce tumours in mice in the late '50s. Tobacco executives
wanted to know if these results were genuine. They started hiring top
scientists by the score. One was Dr. James Green. We talk about him
and his early work. Mrs. Green speaks about those times. At first they
repeated the mouse experiments, then did more complex biological
tests. Green was excited when he got the same results as Wynder. The
cancer link seemed to be genuine.
In America Drs. James Mold and Tony Colucci were doing similar work
- one for RJ. Reynolds and one for Liggett and Myers. They also recall
the early tests and the shock waves running through the industry when
the various companies began comparing notes and realised just how
carcinogenic their products really were.
The next stage was to find out why ? At first the scientists were very
excited and very fulfilled - they were doing state-of-the-art research in
well funded labs. They were sharing their information and working, they
thought, for the public good. The guiding idea was 'lets find out the
problems and fix them'. There was support from company executives
and intense competition to come up with a safer cigarette. Meanwhile
they were also doing pioneering work on smoking and other health
problems - heart disease and emphysema. These things were all
discussed at board level.

We can film the extensive research facilities built by BAT in
Southampton, Harrogate and Hamburg. We can also take Dr. Mold
back to Raleigh-Durham, where Liggett built their lab, and/or take
Colued back to Winston Salem where RJ. Reynolds poured money into
what they called 'The Mouse House'. Working with rats, rabbits and
mice Colucci says that his work pointed the way to the exact mechanism
by which tobacco smoke damages the most sensitive inner linings of the
lung - causing emphysema or provoking tumorous growths. There was
talk of nobel prizes in the offing. Colucci says what his team discovered
made them realise that they had an awful long way to go before they
could find a 'safer' cigarette.
We tell this by interviews with the Americans, with Mrs. Green and her
daughter and with documents now available from this era. We focus on
the BAT ones because they are exclusive but I also now have some
good ( and barely publicised ) American ones which also demonstrate
just how detailed was the industry knowledge of tobacco's poisonous
properties and just how keen they were to find a safer product.
By '68/69, therefore, the industry had a very clear idea of the effects of
smoking - available documents list dozens of identified carcinogens.
ENTER THE ATrQRNEYS
Then the problems began. America is a litigation culture and personal
injury lawyers had begun taking cases of people who had contracted
lung cancer. There was a growing anxiety inside the industry that they
might go the same way as the asbestos business - sued out of existence
in the US civil courts. More and more attorneys began to walk the
corridors, throwing anxious glances towards the labs. In addition a new
and tougher breed of executives was coming to the fore.
Mrs. Green and our American scientists can speak about the gradual
change in corporate atmosphere which these first court eases brought
about Lawyers acting for the industry had to create a strong defensive
posture and they began grumbling that the company scientists were
making their life increasingly difficult.
4

BOARD RQQM DISPUTES
The disagreements reached the board room - and the Madison Avenue
offices of Hill and Knowlton. H.and K. were, and are, the world's
leading P.R. company. During the '60s their biggest clients were the
tobacco industry. Former H.and K. executive Loet Velmans says that his
company was pressing the industry to adopt a bold and open approach.
The plan was publicly to acknowledge the facts and to work, in harness
with governments, towards safer products.
But the lawyers disagreed. The crunch came in the late '60s. A '69 Wall
Street Journal report, carefully placed by the company, says that H.and
K. were urging their tobacco clients to make a new beginning - to
accept that smoking could be harmful and to say to consumers: 'we're
working on safer products...meanwhile smoke at your own risk.' This
strategy was not adopted and within a few months H.and K. voluntarily
dropped all their tobacco accounts. According to Velmans they did not
want to be associated with the deceptive tactics they knew the industry
was about to adopt.
Without savvy external advice from the likes of H.and K. the industry
increasingly turned in on itself and retreated into a huddle with only its
lawyers for company. A new culture developed - paranoid and defensive
and extremely hostile to perceived enemies in the media and public
health bureaucracies.
lAWYERS GET THE UPPER HAND
Given an increasingly free hand, the lawyers turned on the scientists.
Dr. Green found himself at the centre of this conflict.
Industry researchers were openly talking about their animal experiments
and their relevance a) to human health and b) to the creation of safer
products. For example a 1969 Philip Morris memo talks about BAT's
Harrogate experiments and makes clear that the work has direct
relevance to human health. That same year an open conference in
Hamburg, attended by BAT researchers, discussed this and similar
work. For company lawyers, who were busy constructing a defence
against personal injury claims, such papers and conferences were a stab
in the back.

Internal, and highly confidential, BAT papers from '69/70 illustrate
what happened next. At BAT's request their American lawyers wrote a
long opinion which was sharply critical of the behaviour of company
r~ientists. It complained that company researchers had spoken in
Hamburg and urged great 'caution' about public statements. The
lawyers pointed out how the industry's legal position could be
undermined by public knowledge of internal company research In
response BAT agreed to be 'careful'.
This exchange of documents is highly significant. The lawyers were the
firm of Shook, Hardy and Bacon - the firm which are credited with
creating the entire 'tightrope' policy and the firm which still represents
every single tobacco company in the American courts. The BAT letter
is written by founder David Hardy ( his son is now a partner there ).
Some I have shown the letter to think it is tantamount to conspiracy -
urging a company to deceive its customers. The copy we have is covered
in James Green's handwritten notes...he was clearly very angry about its
contents as his private papers ( and his family's recollections ) confua~
For long quotes from this docul,,cnt
marginalia - see my original proposal.
and reference to Green's
Essentially what had happened was that a group of attorneys in Kansas
City were now able to instruct the board of a London based multi-
national corporation. Everything had to become subservient to the legal
position in what executives now saw as a battle for survival. A 1970
memo ( marked highly confidential with each copy numbered ) is frank
about the need for BAT, and other tobacco companies, to dissemble
before the American courts. In particular it is clear that the firm now
realised that it must keep its internal knowledge of smoking and health
strictly private.
Meanwhile in America a near-identical situation faced Tony Colued.
There was a build up of tension between the R.J. Reynold's research
and legal departments and then, suddenly in 1970, in a sort of corporate
coup, the 'Mouse House' was closed and 26 bio-chemists were fired.
They were not allowed to take anything with them and all their
notebooks were seized by company attorneys. They were all
immediately stamped 'confidential, lawyer/client privilege' and locked
away.

Colucci's lab was in the middle of several pioneering experiments -
mostly focused upon smoking and health. What, according to former
researchers, alarmed the attorneys the most was that Colucci was
making progress in the critical area of 'mechanism'. In other words he
was investigating how it is that particular compounds in tobacco smoke
trigger particular types of disease. In court cases it was, and still is,
possible for tobacco attorneys to argue that no-one can ever prove what
produced one person's particular illness - so details of the precise
mechanism (or the fact that companies were even looking for it) is very
si ificant.
In an earlier era Reynolds executives had encouraged Colucci, since his
work held out the prosect of isolating and removing the most dangerous
chemicals. This would open the way for a lucrative 'safer' cigarette. But
by 1970 priorities had changed. The most important thing was to assist
the lawyers - and so it became very inconvenient to have internal
company scientists like Colucci probing into the mechanism of how
smoking killed, when in court the lawyers were saying that smoking did
not kill.
THE WATERSHED
On both sides of the Atlantic a watershed had been passed. From now
on the industry was to operate on an entirely new basis. Executives saw
themselves - and still do - as engaged in a long defensive war in the
West, whilst taking every opportunity to expand in the East and the
Third World.
Instead of trying to identify and fix the problems in their products
company chiefs were now busy denying there were any problems - and
also denying that they had ever even looked into the subject of smoking
and human health.
Reynolds say that the 'Mouse House' was closed because it was a crude
lab and because the science produced there was not very impressive.
The notebooks themselves are still kept under lock and key but a 1985
document written by a company consultant says that the work was very
good and set new standards for biological health research. The memo
also confirms that work was targeted on how smoke triggers disease.

THE COUNCIL FOR TOBACCO RESEARCH (CTR)
Reynold's other defence of their action is very significant - the company
say that they had decided to fund scientific research through the
Council for Tobacco Research. The CTR was, and is, a key pan of the
"tightrope' policy and is now the focus of American criminal
investigations.
The CTR is, effectively, a means of endlessly spinning out the so-called
health controversy. Companies tell the public that, as responsible
organisations, they are concerned to clear up the 'debate' about
smoking and health. To this end they have funded the CTR for many
years.
The existence of the CTR allows executives to say 'we're not scientists
or doctors but we are happy to fund research by properly trained
professionals'. Pushing research outside their own corporate structures
in this way allows the necessary distance so that executives and lawyers
can claim that the charges against their products are 'unproven'.
For example some CTR-funded work has resulted in powerful anti-
smoking results. This is published and circulated in the correct way. But
the fact that it is CTR work and not, say, BAT work, means that
companies can still say - 'yes, well, very interesting but still not
definitive..the debate continues...we call for more research' ...... and so it
goes on.
Meanwhile any other work that blunts the anti-smoking message
receives maximum publicity. Internal documents reveal that the CTR
has at times sounded more like the industry's PR operation. An internal
CTR memo from 1975 talk of 'favourable' press coverage which
questions the smoking-cancer link. The document draws attention to
research which shows smoking may have some health benefits. The
author also claims to have 'spun' various journalists away from a strong
anti-smoking stance and is full of vituperative language against anti-
smoking 'extremists'. The whole tone is far from that of an objective
sdentific body.
Tobacco company documents are also explicit about how the CTR is
used as part of the overall PR strategy of the industry. One ends : "P.S.
I doubt if you will want to retain this note".

The CTR was, and is, presented to the public as an independent body
following its own scientific agenda. There is now plenty of evidence to
suggest that it is in fact a publicity and legal device - nothing less than
a twenty year confidence trick to persuade anxious smokers that the
industry was looking into the health problem...whilst in reality the
industry was busy concealing its own internal knowledge.
Dr..lames Mold spent many years working with and alongside the CTIL
He speaks about their obvious lack of interest in pursuing the most
important health questions - he attended one meeting and made some
pointed suggestions about the future direction of research into smoking
and cancer. He was not asked back to another.
A 1974 memo from the Lorrilard tobacco company writes: "Historically
the joint industry-funded smoking and health research programmes have
not been selected against specific scientific goals - but rather for various
purposes such as public relations, political relations, position for
litigation etc. Thus it seems obvious that reviews of such programmes
for scientific relevance and merit in the smoking and health field are
not likely to produce high ratings."
A 1972 memo from Philip Morris to the Tobacco Institute talks of the
industry's brilliant strategies - "we create doubt about the health charge
without actually denying it". The public emphasis on the CTR and its
'independent' research ran in parallel with advertising which cleverly
negated health fears and rationalised smoking impulses.
DR, GREEN'S ANGER
To an increasingly embittered Dr. Green the role of the CTR and
BA'I"s own attitude to smoking and health was based on a denial of
reality. He took to writing scathing memos to fellow board members. In
turn they produced a pamphlet ( which I have ) detailing the pat
answers executives should give if they were ever asked about smoking
and health. The basis line was 'we don't know anything about it but we
do fund independent research ..... meanwhile we regard the case against
smoking as unproven'. To Green, who had spent years proving it for
BAT, this was insufferable. In one memo he writes:
9
