Tobacco Documents Online

• Develop relationships with groups and individuals who have an inclination to support positions taken by the company on public policy concerns. • Maintain Philip Morris Companies' reputation as the leading corporate supporter of the arts, using the 35th Anniversary of our support of the arts as an event marking historic achievement by a single company. Continuously evaluate our giving programs to insure the most favorable impact possible in the communities in which we op;erate. I • Work to enhance understanding among opinion leaders about the extent of the company's giving programs. • Coordinate with our international operating units to b uild the proper role and reputation for the company outside of the US in the contribution and public programs functions. Votso%CzoZ

Washington Government Relations Objectives The Washington office of Philip Morris Companies represents the company in a critically important power center of the world. Laws, regulations, attitudes and news stories emanating out of Washington, DC have a tremendous impact on our company around the world. This has been true for many years. Now, the impact of Washington may be even greater as it relates to commerce following the end of the Cold W ar. The operating units of Philip Morris Companies were put under one roof in Washington about two years ago. Now, the management of the staff of about 30 people has been brought directly under the supervision of the Philip Morris Companies Vice President charged with running the office. Additionally, staff has expanded to give the office the resources necessary to run programs supporting the lobbying functions. During 1993 and the remainder of the plan period, specific objectives of the Washington Government Relations Office include the following: Federal tobacco issues.... • Oppose/minimize excise tax increases as part of deficit reduction plans and oppose any attempts to earmark excise taxes on our products to fund health care programs. • Stabilize the tobacco support program. soZ9ozEZ©z

• Oppose advertising non-deductibility and organize grassroots efforts to block passage by the Congress. • Design and implement a program to minimize the impact of omnibus tobacco regulatory legislation. • Support a review of EPA risk assessments as part of the indoor r air quality regulatory process. • Develop a commercially acceptable solution to the fire-safe cigarette issue working with PM USA (the Congressionally mandated study is due in August 1993). • Prevent any US government restrictions on the export of US cigarettes. • Oppose Department of Defense tobacco sales restrictions. • Maintain the flexible packaging exemption in federal solid waste legislation. • Prevent bilateral or multilateral international airline smoking bans. • Preventiany legislative attempt to restrict protective orders in federal civil cases as part of product liability legislation. 90t90%C%0%

Federal food issues.... • Assure adherence to the food safety provisions adopted in 1992 as debate begins in 1993 on the solid waste (RCRA ) deb ate. • Support food safety legislation which provides a negligible risk standard for pesticide residue and federal preemption. • Oppose unnecessary and arbitrary grants of authority to the Food and Drug Administration that might be presented in FDA enforcement legislation. • Develop and support least-cost optrons if user fees become part of a program to fund FDA activities. • Monitor and be prepared to shape dairy price support legislation in a manner favorable to the company. State food issues.... • Advance state solid waste legislation in Vermont, Texas and Colorado. • Seek to incorporate the major elements of the model bill into the strategic plan of the Southern State Solid Waste Coalition. 4oz9ozCzoz

• Support the adoption by the Oregon Department of Water Quality of a food exemption in current law as well as supporting broad consumer product safety legislation which includes food safety provisions. • Seek food safety exemption in California while working with the California Integrated Waste Management Board to gain support for our positions. • Oppose rates and dates legislation in key states.. Federal Beer issues.... • Oppose increased excise taxes as well as any effort to equalize. • Increase grassroots involvement of the wholesalers, retailers, suppliers and labor unions. • Oppose advertising restrictions such as required voice overs and warning labels. • Defeat any attempt to enact bottle bills or other forced deposit legislation. ' 8ot9o%Moz

Corporate issues.... • Seek agreement on FTC unfairness authority as part of FTC re-authorization. • Seek retroactive and prospective uniform tax treatment of intangibles. • Seek passage of maximum resale price maintenance provision enabling a manufacturer to establish price ceilings for the resale of goods. • Seek Congressional oversight of the Defense Commissary Agency to resolve PM USA and KGF accounts receivable problems. International issues.... • Support lower EC duties, particularly for US cigarettes in GATT. • Support the NAFTA when it comes before the Congress. • Support MFN status for China. • Expand relationships with foreign embassies in Washington in support of PMI/KGFI. 60Z90%EZ0?' t.:

Tort reform projects.... • Enact product liability statute in Texas. • Enact the product liability and punitive damages reform legislation in Mississippi. • Protect product liability statutes in California and Louisiana. Corporate Affairs projects.... • Develop and implement a comprehensive plant tour program for federal, state and local official visits throughout the country. • Develop and implement an employee grassroots program. • Develop and implement an extension of the grassroots program to suppliers. • Organize a strong W ashington contrib utions program to reach select audiences working in conjunction with the Public Affairs staff in New York. • Develop and implement a new member, key member and new administration program to acquaint Washington officials with Philip Morris Companies. • Coordinate and maximize PM executives involvement in Washington visits and Washington-based activities. oitisozE%oz

Organization issues.... • Organize tobacco, food and beer strategy groups and hold at least quarterly meetings to guide and direct the government affairs strategies of the operating companies. • Improve the quality of the people and their performances in Washington through closer supervision, training and recruitment. ZTZ90ZCZQZ

Communications Objectives The Communications group has responsibility for presenting Philip Morris Companies to both internal employee audiences through the PM GLOBE /PM in Motion and external audiences through its media relations efforts. The Communications group coordinates with the operating units reviewing media relations opportunities and challenges. During 1993 and the remainder of the plan period, specific objectives of the Communication group include the following: • Develop more extensive and improved relationships with key media contacts following the industry and PM Companies. • Develop and execute a communications strategy involving the CEO and other senior officers in a program which has a consistent theme and message. • Develop a crisis communications strategy for PM Companies and integrate the strategy with the Special Situation Task Force. • Strengthen the company's financial communications program to press, shareholders and analysts through improvements in the annual report and quarterly releases. • Improve internal communications capabilities by strengthening the content and distrib ution of PM in Motion and other special editions of PM in Motion; additionally, improve other internal publications (PM GLOBE, FYI, Happenings). zTTgWTzaz

External Affairs Objectives External Affairs is designed to develop relationships of strategic importance to the company through a series of meetings, conferences and exchanges arranged through the private foundations in which positions of leadership are maintained. In addition, support is provided to the operating units when previously established contacts can be drawn upon for assistance to the company. Objectives for 1993 and the remainder of the planning period include the following: • Develop a clear set of priorities on an annual basis for use in evaluating opportunities during the calendar year. • Report on program activities regularly to inform senior management of both activities and to identify areas where support can be provided. ETT9ozEZOz