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r Dr. Thomas S. Osd'ene Director of Science and Technology Philip Morris U.S'.A. P.O. Box 26603 Richmond', Va. 23261 Dear Tom: •J S. OSDENE fEF.'12N8 456 Sutherland Lane Prospect Heights, Illinois 60070 February 4, 1988 I have given a lot of thought to the tobacco industry's proposed Center for Indoor Air Research (CIAR). My focus has been the Center's organization, operation!and my role as Executive Director, especially my relationship with the Board of Directors, in light of the industry's goals and objectives. We have had several discussions on these items, which have made some of the issues clearer,particularly after our meeting on January 2'8, 1988. However, even after this meeting I feel that there are some areas still needing clarification and resolution and these issues had best be addressed before we are committed to each other by contract. It is also the wisest course that their resolution should~be documented somewhere so that no misunderstanding between the various parties could arise over these issues at some later time. The main goal of CIAR is to provide independent,scientifically credible research:on indoor air quality, with particular emphesis on Environmental Tobacco Smoke (ETS). The industry has support research in this area in the past and it is their opinion that additional research is needed to better understand the science of ETS and to clarify what risks, if any, exist. Another reason for proposing the Center is that research sponsored in the past, by the industry, has been dismissed as non-objective, in part because it was industry funded, and'often was carried out in support of litigation. This type of industry sponsored research is a necessary part of business, but, it is in the industry's best interests for additional independently planned and executed'research which will judged'solely on the basis of it scientific merit to be carried out with industry support. Such research, in principle, would be accepted as being unbiased and would be considered~in any future policy decisions. Other industries have used this approach successfully and there is no reason to assume that it cannot be used by the tobacco industry. The industry has gone to considerable trouble and expense to

propose the CIAR which it is hoped will meet these objectives. II concur in this premise andam pleased that you and'your colleagues have are condidering me as the f irst Executive Director of CIAR. This represents a significant challange and one which I look forward to~undertaking. However, there are certain aspects of the operation of the Center which trouble me which should be resolved this time. The critical issue for the success of CIAR is that of' independence, both actual and perceived. The scientific community and the policy decision makers must be convinced that the research sponsored by CIAR is free from undue pressure by the industry andthat the results will be made freely available regardless of the outcome. My first concern is that under the proposed operational procedure this independ'ence and objectivity does not nor will be perceivedto exist. As was discussed at our January 28 meeting, the mechanism for funding research will be for the Executive Director to propose a work plan and budget which will be approved as a working guideline:, but, with the exception of some possible administrative items, would involve no actual transfer of funds to the:CIIAR. Rather, it would be required that when the actual research projects are developed and the investigator selected, a request would be submitted to the Board of Directors for review and funding. It would be possible at that time for any or all of the industry sponsors of CIAR to ref use to~support any particular research project. I believe that such a procedure is unworkable if one wishes to attain the industry's goals of objectivity and independence. Furthermore it couldalso present an image of a lack of commitment on the part of the Center's sponsors. The requirement that industry participate in the development of the overall research plan,as well as, the development of the work objectives and tasks of the individual projects is not the question and is absolutly necessary. However, credibility will only be obtained and perceived by those outside of the industry by allowing project selection to be based on scientific merit of the research, independent of any possible industry pressure, control or veto. What is being,proposed is just the opposite and should be avoided if the CIAR is to meet the stated goals. Many other industries have been faced with a similar situations, including the natural gas industry, with which I am associated, and they have also created research institutions with goals and objectives similar to the tobacco industry. However, they have all taken the critical step of removing themselves from the veto position by turning over the funds and the management authority to the institution to accomplish~the approved program plan. At the same time they participate in the sciencific aspects of the organization while insisting,andreceiving accountability. The net result is good quality research which addresses the scientific concerns of the industry while still maintaining the indepenence neededfor objectivity and credibiltiy.

What has been proposed~for the CIAR removes all authority for accomplishing the objectives from those that have the responsibitiy and places almost absolute control in the hands of the Board and allows individual sponsors to withdraw their commitment on a project by project basis. There is no question that the Board has the responsibily to set the policy, to guide the direction and the content of the research and to demand and maintain accountability for performance. However, under the system proposed the Executive Director has little or no authority to insure that the projects are developed and selected on their scientific merits and would be unable to assure the scientific community that there was no industry interference or pressure for reasons unrelated to scientific merit. At best what is now being proposed is a highly paid project monitoring organization, a task which could be more effectivly accompl'ished'in-house. Such an organization and its output would never be accepted or taken seriously by the scientific community or by those who would use the research results in setting ETS policy. The net effect would be not only a loss of money for the industry, but, a very frustrated CIAR staff whose standing and reputation within the scientific community would be suspect. The other concern which is very critical to the success of CIAR is the policy regarding publication of results and access to the data fromithe research funded by the Center. The Board must make it very clear that the Executive Director has the ability and authority to insure that the results of the research will be publishable by the investigators and will be made f reely available to the public with no restrictions. Without this assurance CI~AR will never attract the quality of researchers that would be required to meet its objectives. I find the prospect of of being the Executive Director of a research organization which has the objectives that been discussed to be very exciting and rewarding possibility. It would!be a position that I could fulfill to the satisfaction of my employers. However, the ground rules must be clear before I accept or commit myself to the position that there are no restrictions, procedures or policies which will defeat the success of CIAR even before it gets started. Furthermore,I feel that a good and explicit working relationship with the Board is another key element to the success of CIAR. This relationship can best be established bef ore we begin. It is all our interests that issues which may cause misunderstand'ing, or serious conflict be raised, dealt with and their resolution be:d'ocumented before there is a final commitment on either of our parts. After you have had a chance to mull over what I have said and discussed it with the others or if you wishito go into more detail on some aspects, please give me a call.

.. Sincerely, 44- Irwin H. Billick

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