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Strictly Confidentiall - Limited! circulation BRIEF NOTES ON OPERATION BERKSHIRE - SHOCKERWICK HOUSE ~ JUN E 2 AN D 3, 1977 PRESENT : Philip Morris Mr. Alexander Holtzman Associate General Counsel, Philip Morris Inc. Mr. R. William Murray President, Philip Morris Europe, Middle East, Africa Mr. Andrew Whist Director of Corporate Affairs, Philip Morris (Australia) Ltd'. Imperial Tobacco Mr. Tony Garrett Chairman and Managing Director Mr. Malcolm Anson Assistant Managing Director BAT Mr. Petrick Sheehy Chairman, BAT Co. Ltd. Mr. Kit Stewart Lockhart Deputy Chairman R. J. Reynolds Mr. VI/illiam, Hobbs Chairman, R.J. Reynolds Tobacco Company Mr. James R. Peterson Executive Vice-President, R.J. Reynolds Ihdust'ries Inc. Mr. Samuel B. Witt, IIl Legal Counsel, R.J. Reynolds Tobacco International Inc. Reemtsma Dr. Horst Wiethuchter Chairman Mr. Alois Spengler Responsible for Cigarette Division Dr. Wolfgang Gloy In charge of Industrial Policy Rothmans International Mr. Alex Orlow Chairman of Tobacco Division Gallaher Mr. A.W. Hume Stewart Moore Chairman ~ N rP N ~ N iI '

2 June 2, p.mi. - Get to know you dinner June 3, a.m. The chairman of Imperial, Mr. Tony Garrett, acting more in the capacity of host rather than chairman of the meeting opened proceedings by showing: an Imperial film, allegedly produced on a smaLl'budget and intended for "interna!" use only. The film, predictably, follows the Imperial policy line, which appears to be that the company accepts thati some adverse health effects are caused by smoking. Acting "responsibly", they have sought to co-operate with the authorities, while seeking a: commercial advantage via NSM. Mr. Garrett's presentation thus unblushingly pushed NSM, and by implication rather than direct admission, made concessions in the areas of Lung Cancer, Pregnancy and' to a lesser extent, Coronary Heart'. Disease. The meeting next moved to a full discussion of the PM' - BAT position paper, previously circulated to all participants. The position paper provided' a useful stfarting point for the ensuing discussions. R.J. Reynolds tabled a parallel paper, with~some modification to the original PPvi-BAT document, phrased~ to meet certain U.S. and general legal requirements. This paper was readily accepted by the meeting.. Using this document as a base, the meeting agreed to establiish, three working, parties dealing, with 1. Social acceptability of smoking 2. Benefits ofl smoking (Smoking Behavior) 3. Other possible causes of alleged smoking related diseases (Medical'. Research). The three above papers are appended~. In terms of action, the following time table was agreed to :

3 1. Three working, parties to be established and commence operation on June 17, with BAT acting as host for committee no. 1, Reynolds no. 2 and! Imperial no. 3. Type of company representationy if not nos., was left to the discretion of participating companies,, with the exception of committee no. 3, which initiall'y will include scientists only. 2. The three committees to complete their documentation by September 17, and to circulate findings to company principals on or before that date. 3. A second meeting of company principals hosted by PME to take place on November 11 with a view to establish formal agreement on t'he reports and'' their implementation. In the afternoon, of June 3;, Hume Stewart Moore of Galloher served notice that in view of the official U.K. industry stance, a U.K. based company was not in, the best~ position to hostl committee no. 3'. Tony Garrett disagreed, pointing out that the committees are initially intended to be fact finding only, and" could thus be hosted by any one company, irrespective of geography. The meeting generally agreed with this principle. The meeting was free and frank in expression. At no time were subjects ot!her than S & H introduced for discussion, formallyy or informally. Recommendations: 1. That PM regards the Berkshire Operation as a turning point in international co-operation on a matter of vital concern to the industry. 2. That PM attempts to maximise the effectiveness of the three established working committees by including executives with experience beyond purely the scientific or legal disciplines.

4 3. That full security cover be maintainedl for future meetings irrespective of nos. of executives involved. 4. That the agreed position paper becomes the vehicle to activate I'nd'ustry Associations throughout the world'. 5. That PM produces and presents a paper concerning anti-smoking bodies„ their philosophies, functions and' funding,, prior to the November 11 meeting. This should be done in an effort to demonstrate the "spill-over" effects caused by the actions of anti-smoking groups internationally. Lausanne, June 8, 1977

HOST : BAT Terms of Reference for Working Party on Social Acceptability of Smoking 1. To assess the current level of the social acceptability of smoking, country by country where relevant.. 2. To identify the factors which have affected this. 3. To examine such counter-measures as have been used. 4. To recommend the counter-measures to be used. 5. To recommend a mechanism for monitoring and measuring future changes.

2. HOST: R.J. REYNOLDS Suggested Terms of Reference for Working Party on Smoking Behaviour 1. , Review current state of scientific knowledge on this subject and identify such unfinished research as may be in progress. 2. ' Identify information which: is suitable for use and recommend method of using it. 3. . Identify questions which remain to be answered' and recommed areas for • further research. Recommended methods : a) Who w i l l do i t ? b) Where is i t' to be done ? c) Who will pay for it ? d) How will the results be merchandised ?

3. HOST : IMPERIAL Working Party on Medical Research Review current state of scientific knowledge on the multifactorial origin of cert'ain diseases and identify such unfinished research as may be in progress. The Working Party should start by considering all diseases and medical conditions that have been associated with smoking, but have discretion to be selective in their recommendations. 2. Identify questions which remain to be answered and recommend areas for further research.. Recommended methods : a) Who will do it ?' b) Where is it to be done ? c) Who will pay for it ?