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Memo To: Ellen Merlo cc: Vic Han I I ~~ /From: Tom Humber `~ / Subject: ETS , ------------------------------------------------------------- The purpose of this memo is to outline, quickly, for further discussion, topline, but unified and synergistic recommendations for dealing with the ongoing battle over ETS. Several elements are critical to this effort: Speed -- If for no other reason, the OSHA review of ETS as a discrete substance, separate and apart from the review of IAQ in general, should command this. But one must also add the certain escalation of all ETS activities, including the proposed Executive order, local and state regulatory and legislative activi~ty, unilateral employer smoking bans and lawsuits. Centralized project management -- one of the major problems of the past, and one that appears to be growing again, is the lack of a true, coordinated, focused team effort, both within PM and within the industry. Any chance for "success" at this R point will depend on synergistic efforts across a number of ~ fronts simultaneously with strong, definitive leadership and

clear and unmitigated direction. P'olitical campaign mentality -- This will insure movement that capitalizes on the momentum accomplished through D-Day and should instill fl,exibility and accountability. vision leadiing to action tempered by acceptable risk become the operating principles. Objectives o Protect the franchise o Hold the line against an escalation of smoking bans, whether instituted unilaterally by employers or by government action o Discredit the EPA report on ETS specifically and the EPA '' generally ~' I'. o Establish the strongest possible input into OSHA deliberations o Blunt the thrust of employer and manu!facturer liability sui ts o Establish good IAQ overall, accommodation and responsible smoking as the solutions

RECOMMENDATIONS Litigation Sue the Bastards! Although already rejected more than once, there is simply no other action that will accomplish as much across all fronts as effectively. In it is defined the substance and the symbolism of our principall message: We are right! we shall fight! Tt establishes focus and direction; it will inoculate all audiences for follow-up activity and it could, at the very least, delay or cloud precipitous actions against us. with appropriate communications overlays, it could regain some percentage of industry credibility and it could stimulate others, who have heretofore been too timid to fight back against the EPA, to summon up their own courage for their own battles. I, shall not belabor the point, but it is serious, and it should be seriously reconsidered. If that is possible, then I shall address more specific considerations in a subsequent memo.

Media There are those who will maintain that the best -- perhaps the only -- media strategy is to have no more coverage whatsoever. Theoretically they are correct, but to pursue that theory is to ignore reality. There will continue to be considerable coverage generated at the national level and it will be supplemented by growing coverage at local levels. Against those certainti~es, the objective must be to respond, to influence and to maintain balance through a combination of company, industry and third-party spokespeople. The pro-active strategy should build upon the efforts and accomplishments managed through D-Day, which were considerable. Thus, the only stories we should be seeking are those that: o Demonstrate the scientific weaknesses of the EPA conclusions in consequential terms o Put the risk in perspective o Point to EPA excesses and mistakes unrelated to tobacco o Demonstrate EPA "corruption" o Re-evaluate t!7i risk assessment process

o Stimulate non-tobacco industries, anti-regulation groups and others to provide their own perspectives in order to portray EPA as an agency correctly under siege o Provide comfort and articulation to smokers o Provide a counterbalance against an employer stampede for smoking bans o Indicate the company's and industry's resolve on behalf of smokers and employers who wish to preserve the "rights of all" o Indicate the resolve of the company to defend litigation against the company and to provide aid and counsel to others who must defend against litigation o Point to separate sections, ventilation and accommodation: as the only rational solutions of a democratic society Against that'long list, i~t is critical for people to understand that the thrust of such efforts would not be broadsides aimed at the herd of daily journalists, but a sophisticated and carefully targeted approach that will maximize the opportunities available from revisionist

journalists and opinion leader publications to highly specialized media, such as labor and investment newsletters as well as scientific, legal and human resource journals. For example, P.J. O'Rourke, the columnist for Rolling Stone and other publications, is the kind of voice that would appeal to smokers, Mike Royko the kind who would appeal to blue collar workers. Harpers' magazine generally and Rick MacArthur specifically should be approached, as representative of liberal thought leader publications. Victor Schwartz would be just one name suitable for a_legal journal piece or possibly for publications aimed at employers. while there are sensitivities, Peter Huber is well positioned to categorize the junk science as parts of the EPA report. And, we should continue to try with the likes of John Crewdson, Nick Wade and Gregg Easterbrook, as they represent mainstream journalists with the ability to comprehend and investigate the scientific issues. In the end, we simply must inventory all reasonable publications and writers, matching approaches as appropriate, as we successfully did with the Forbes cover story (see attached). By the same token, we must be defensively prepared to deal with contingiencies such as a Larry King Live which, given his posture toward smoking, would be assumed to be negative. Clearly, the cellular telephone example demonstrates the power of that specific

show and implies the power of others. The key to all media willl be a combination of message and messengers -- meticulously prepared, consistent and credible. Absolutely critical will be the ability to build upon the precedent established by the D-Day plan to call upon the scientific experts for public service and to expand their number along a variety of fronts, some of which will not necessarily require discussions of smoking or ETS. Whether for media, legislative testimony or coalition building purposes, the recruitment, education and training of a variety of experts must be an integral part of any effort that hopes to advance credibility -- or, conversely, successfully diminish that of the other side. Thus far, with ETS, that effort has been conducted under industry aegis, and the results -- from a pubic relations perspective -- have been less than successful. D believe such efforts must be given renewed emphasis, and I would like to discuss my qualifications, which I think are unique, to participate in that effort. we should specilfilcally discuss the potential for EPA Watch as ~ a part of media and other efforts. I have previously ~ discussed with Tom Borelli several ideas for expanding the ~, ~ f i impact of EPA watch and the reputation o Bonner Cohen as an

expert on EPA matters. At a minimum, a series of radio actualities with~Bonner commenting on EPA matters could reach an extremely wide audience, and we can tailor geographically for maximum appeaL. we think it also possible to establish a standard format that could give Bonner presence as an expert commentator, but that requires fuirther investigation. As a part of the D-Day operation, Bonner's name was provided to several Colorado 3ournalists as an outside resource on EPA transgressions. Coalition Developsent and Mobilization/Third Party Activity For the purpose of this memo, and, I believe, in the interests of overall strategy, all activities that require the recruitment of outside organizations or individuals, against ETS specifics or more general objectives, are being lumped together. while one could exhaustively catalog many more potentials, and we should as we go, the concentration here is on those that, because of existing relationships, past activities and similar or mutual interests can provide the most immediate operational benefits. The Institute for Regulatory Policy Started specifically to address the panoply of problems in the risk assessment and regulatory process identified by OMB in August 19901, IRP is an existing mechanism that currently

is in the best position to assemble and mobilize a wide variety of business groups, corporations, local governments and other parties concerned about or victimized by EPA excesses. Burson-Marsteller has worked with IRP, and its Director, former OSHA Administrator Thorne Auchter, since its inception, and has several clients who are among IRP's key supporters. In September, 1992, B-M mounted an intensive grass-roots effort on behalf of IRP to solicit quality signatures for a petition to President Bush asking him to add risk assessment to the moratorium on regulatory activity. That effort produced a total of 349 letters, the signers of which now represent an important base for a number of activities. Attached is a list of signers. Citizens for a Sensible Environaent (Citizens for a Sound Economy) This group is well-known to Philip Morris, and, like IRP,, already has a track record of activity and is well-positioned to undertake a number of coalition-building activities. Burson-Marsteller has provided support to several previous ~ activities, most notably in August 1992, with regard to a ~ CSE-sponsored conference in Columbus, Ohio, featuring Vice N K%

President Quayle. working with the office of the VP, the staff of the Competitiveness Council, CSE and IRP, B-M was involved in both concept and execution of a strategy that made sure that media coverage of the discrete message regarding over-regulation superseded the political noise surrounding the vP's appearance. The U.S. Conference of Mayors Burson-Marsteller was responsible for the broadening of a resolution (attached) adopted at the last annual meeting to include EPA-specific language and to request specific research regarding the mayors' concerns about "unfunded federal mandates." More recently, leadership.of the Conference has asked B-M to develop strategies and implementation support to put selected big-city mayors and the Mayors Conference front and center in the battle. The potential for this activity is considerable: for the immediate objective; for building relationships for local initiatives; and, for increased media attention to highly credible and newsworthy opponents to EPA excesses. Conference leadership has stressed to us in recent weeks that this is among the hottest topics with their membership. We should immediately discuss next options from PM's ,Q N perspective. ~ N