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PHIUP MORRIS INTERNATIONAL INTER-OFFICE CORRESPONDENCE 120 PARK AVENUE, NEW YORK, N.Y 10017 TO= FROM: SU6JECT: Distribution Andrew Falkiewicz W EklyiroTHTlental Totiacc0 gilQke DATE: July 1, 1986 The ErS issue has reached all but unmanageable proportions in the United States. Hardly a day goes by without drastic steps being taken by local authorities throughout the country. You may be aware of two latest developments (press materials attached) which took place during the past three weeks. They are persuasive evidence of how we are losing control of the situation. No direct blame can be ascribed to any one canpany or to the industry as a whole since the specific conditions that have prevailed in the United States are not necessarily the same as those in our other markets. tidiat we do know, however, is that unchecked progress of anti-sroking campaigns and actions in the United States invariably helps generate similar developnents all over the world. It is our job at Philip Morris International to act to contain issues, wherever they originate. To that end, I invite each and every one of you to give this matter urgent and thoughtful attention and, by August 15, give us your creative input as to haa we can best tackle this issue offshore. Following our Tax Conference in~Washington in September (please see attached memorandua which reflects the efforts of Wendy Burrell and Ian Sargeant in cooperation with Prof. Ingo Walter), we will plan a worldwide Corporate Affairs working conference on the E1'S issue to take place late this year or early in 1987. You should know that we are currently working with a number of scientists as well as with natural allies, and that research and other preparatory work is gathering manenttun. You should also know that the allegations levelled against us on the ETS issue are unfounded and rest on flimsy research. Responsible scientific findings, in the United Kirgciam and elsewhere, are beginning to surface. We should seize the initiative based on solid facts and sound a.rgiunentation. • .R ECEIVED JUL 8 1936 R. W. MURRAY I

Distribution Page 2 Environmental Tobacco 9noke I am attaching a relevant report from The Times of London: within hours of publication, every British parliamentarian and decision maker received an information package (attached) from the Tobacco Advisoxy Cauncil, and FOREST is following up with a vengeance atmng the public at large. Additionally, I am attaching a copy of an advertisement appearing in all major Austraj.ian dailies during an important Labor Party conference at which the issue is likely to be discussed. I bring these examples to your attention to show that action is possible and desirable on condition that it is well conceived, vigorously executed, and takes account of the local social and political climate. I would appreciate your full cooperation in dealing with this very serious issue. /jag Attachments Distribution: P. Francis M. Horst C. von Maerestetten F. Moreno B. Robinson M. Winokur cc: G. C. Bible A. Buzzi D. Dangoor D. Devitre R. W. Murray C. Salguero R. L. Snyder W. Z'hana W. Webb A. Whist