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.• 1a-Q4-01 A.' HOLTZMAN -' ^Cs P. GRISS (PMI), D. NOEL (KANSAS), AEB, RWA, OCS (PME) AS AGREED ON THE PHONE LAST THURSDAY, I SEND YOU BELOW THE TEXT OF TME COMBINED POSITION PAPER s QUOTEs P 0 S 1 T I.0 N P A P E R 1. MEDI CAL CONTROVERSY WE ACKNONLEDGE THE FACT THAT THERE IS A CONTINUING SMOKING AND HEALTH CONTROVERSY BUT WE DO NOT ACCEPT AS PROVEN'THAT THERE IS A CASUAL RELATIONSHIP BETWEEN SMOKING AND VARIOUS DISEASES (SUCH AS LUNG CANCER, HEART DISEASES, BRONCHITIS, ETC). THE RELATIONSHIP REFERRED TO IS PRIMARILY BASED ON EPIDEMIOLOGICAL OR STATISTICAL EVlDENCE.` THESE STATISTICAL OR EPIDEMIOLOGICAL ASSOCIATIONS CANNOT ESTABLISH A CAUSE AND EFFECT RELATIONSHIP BETWEEN SMOKING AND DISEASE. ALSO IT HAS BECOME EASIER TO INDICT SMOKING AS THE PRIMARY SOURCE OF TODAY'S MEDICAL PROBLEMS THAN TO CONFRONT THE DATA WHICH SUGGEST OTHER EXPLANATIONS. IN OUR VIEW THE ISSUE OF CAUSATION REMAINS CONTROVERSIAL AND UN- RESOLVED. WE ADVOCATE THE NEED FOR FURTHER RESEARCH INTO THE NATURE OF ANY RELATIONSHIP BETWEEN SMOKING AND DISEASES AND FOR FURTHER'SCIENTIFIC MORK ELUCIDATING THE VARIOUS FACTORS AND MOTIVATIONS OF SMOKING. TO BE EFFECTIVE, IT IS DESIRABLE THAT THE TOBACCO INDUSTRY AS A WHOLE MUST BE SEEN TO BE RESPONSIBLE AND, WITHIN OUR FIELD, AUTHORITATIVE. MOREOVER, WE BELlV / S BETTER TO SPEAK AS AN INDUSTRY WITH ONE VOICE ON ~~ A TERS AND THAT THIS CAN BEST BE ACCOMPLISHED THROUGH NATIONAL ASSOCIATIONS OF MANUFACTURERS.

2. SOCIAL AWARENESS, RESPONSIBILITY AND THEN SOCIAL ACCEPTABILITY OF A SMOKING, BECAUSE THERE IS GEN'ERAL SENSITIVITY IN RESPECT OF OUR PRODUCTS PER SE, WE SHOULD AT ALL TIMES BE PARTICULARL Y VIGILANT IN EN- SURING THAT WE REMAIN BEYOND REPROACH CONCERNING THE ORDINARY DUTIES AND OBLIGATIONS WE OWE BOTH OUR CONSUMERS AND OUR WDRKERS. WHILST THE OPPONENTS OF SMOKING USE EMOTIONAL ARGUMENTS RATHER THAN SCIENTIFIC FAKTS IN THEIR' ATTEMPS TO MAKE SMOKING SOCIALLY UNACCEPTABLE, WE MUST ENSURE THAT WE NEVER KNOWINGLY MISLEAD OUR CONSUMERS WHO MUST BELIEVE THAT AS MANUFACTURERS AT ALL TIMES WE ARE ACTING RESPONSIBLY AND NAVE CONCERN FOR THEIR INTERESTS. Zl,e WE SHOULD STATE QUITE PROPERLY AND RESPONSIBLY TJIE CASE iTl' PAYOUR-a"MOKUNG: nc < ~~i- 4a C-acw ~~ ~~ ~wi,i:,, "ay`Y 1 WE TAKE THE VIEW THAT TO DATE THERE IS NO.SCIENTUFIC EVIDENCE TO SUPPORT THE CONTENTION THAT THE NON-SMOKER'!S HARMED BY THE TOBACCO SMOKE OF OTHERS. HOWEVER, iN THE-PRESENT-CLIMATE-IT IS CBNS+-DEflED-QUtTE-1NDESIRABL-E TO-ENCOURAGE PEOPL-E-TO ABUSE SMOKING, T&-#FRf ifGE-lON-SMOKEfitS'-Ri-GHT-0R_IQ::gNCOU R AGE=-CHJL DR EN~TO-SMOK E. DiSCL~,..~-~.U 3: 05URE OF INFORMATION ~ WE SHOULD INFLUENCE AS FAR AS POSSIBLE MEDICAL AND OFFICIAL p OPINION AGAINST INCAUTIOUS IMPOSITION OF CONSTRAINTS AND ANY UN- a~~ NECESSARY RESTRICTION ON SMOKING. TO D0 THIS IT MAY BE NECESSARY syr TO TALK TO MEDICAL AUTHORITIES AND GOVERNMENT AGENCIES. OUR LEGITIMATE OBJECTIVES MUST INCLUDE PROTECTION OF THE INTERESTS OF OUR CONSUMERS, MANY OF WHOM FIND SMOKING BENEFICIAL IN ONE WAY OR ANOTHER.

WHERE THE QUESTION OF SMOKING AND HEALTH IS ACTIVE AND WHERE THE INDUSTRY IS SPONSORING HEALTH RESEARCH IT SHOULD KEEP MEDICAL AUTHORITIES INFORMED.. Vi{WB-. AN INDUSTRY IN ONE COUNTRY MIGHT ALSO MAKE KNOWN THE RESEARCH IN OTHER COUNTRIES EVEN WHERE SUCH RESEARCH IS NOT SPONSORED BY HEALTH AUTHORITIES. 4,1THE.ROLE OF GOVERNMENT IN A FREE SOCIETY -THE INDUSTRY BELIEVES THAT SMOKERS ARE WELL AWARE OF THE CLAIMED HEALTH EFFECTS OF SMOKING. INFORMATION IS AVAILABLE TO THE PUBLIC FROM A VARIETY OF SOURCES. THE TRADITIONAL ROLE OF GOVERNMENT IN A FREE SOCIETY WITH REFERENCES TO LEGAL PRODUCTS IS TO INFORM PEOPLE, TO GIVE THEM THE FACTS OR TO SEE THAT THEY ARE GIVEN FACTS, AND TO LEAVE THE EXERCISE OF FREE CHOICE TO THE IN- DIVIDUAL: 5:' WARNI NG CLAUSES IF TO COMPLY WITH LEGISLATION WARNING NOTICES HAVE TO BE PRINTED ON PACKS, THE INDUSTRY MUST ENDEAVOUR TO ENSURE THEIR ATTRIBUTION TO GOVERNMENT OR SOME OTHER OFFICIAL BODYs SIMILAR ATTRIBUTION IS.EQUAtLY NECESSARY EVEN WHEN THERE IS NO LEGAL REQUIREMENT TO D0 SO (E;G. VOLUNTARY AGREEMENT BY THE tNDUSTRY IN THE INTERESTS OF GOOD RELATIONS). IF GOVERNMENTS SUGGEST WORDING IMPLYING OR STATING SMOKING CAUSES CERTAIN DISEASES, COMPANIES MUST STRENUOUSlY RESIST WITH ALL MEANS AT THEIR' DISPOSAL-UNTtL--L E3 'T '~ `,,~:TT°= :' IN THIS EVENT IT IS EVEN MORE IMPORTANT THAT ANY SUCH STATEMENT IS ATTRIBUTABLE. fi; LEAGUE TABLES CARBON MONOXIDE AND THE OXIDES OF NITROGEN ARE ALREADY BEING IN- N CREASINGLY REGARDED BY CERTAIN MEDICAL BODIES AS HEALTH HAZARDS FOR SMOKERS AND OTHER CONSTITUENTS OF THE VAPOUR PHASE OF SMOKE ARE COMING UNDER SUSPICION. ---------- C-7

SO FAR THERE IS NO VALID SCIENTIFIC BASIS FOR COMBINING MEASURE- MENTS OF DIFFERENT CHEMICAL COMPOUNDS IN THE SMOKE ON AN IN- DIVIDUAL CIGARETTE BRAND INTO A SINGLE INDEX NUMBER SO AS TO REPRESENT A MEASURE OF IMPLIED HAZARD RELATIVE TO OTHER BRANDS. SUCH AGGREGATION IMPLIES UNJUSTIFIABLE JUDGMENTS OF THE STRENGTH OF ASSGCIATION BETWEEN CHENICAL COMPOUNDS AND DiSEASES. SUCH ARBITRARY INDICES OF HAZARD CANNOT RECEIVE ANY SERIOUS SCIENTIFIC SUPPORT AND'THEIR INTRODUCTION SHOULD BE RESISTED WHEREVER P0S-- SI BLE:; PUBLISHED TABLES SHOULD PREFERABLY BE COMPILED BY AN INDEPENDENT LABORATORY: 7: MAXIMUM TAR AND NICOTINE LIMITS THE,IMPGSITION OF MAXIMUM TAR AND NICOTINE YIELDS, AS WELL AS ATTEMPS BY GOVERNMENTS TO TAX HIGH TAR PRODUCTS DIFFERENTIALLY TO THOSE. ffl TH LOWERDEL 1 VERI ES, SHOULD BE RESI STED. 8: ADVERTISING IT l S THE+;INDUSTRY V1EW THAT THERE IS NO VALID EVIDENCE TO SUPPORT;,THE,CONTENTION THAT ADVERTISING INCREASES TOTAL CON- SUMPTIQN'OF Cl6ARETTESt ADVERTISING MAY AFFECT THE SALES DIS- TRIBUTION AMONG INDlVIDUAL COMPANIES OR SPECIFiC BRANDS. IN ATTEMPTING TO„OBTAIN,THE BEST POSSIBLE SHARES OF THE MARKET C18AREYTE MANUFACTURERS HAVE USED COMPETITIVE ADVERTISING TO INFORM'~THE-CONSUMER.OF PRODUCT AVAILABILITY, MODlFICATIONS AND 1NNOVATIONS:,; ~ 1N:ANY ADVERTISING.FOR HI-FI BRANDS/CONCEPTS CARE SHOULD BE TAKEN TO ENSURE THAT CONSUMER CONFIDENCE IN THE SMOKING HABIT IS MAINTAINED AND THAT ANY ANXIETY ABOUT HEALTH AND THE ALLEGED AZARDS OF SMOKING ARE ALLAYED AND NOT AGGRAVATED. _. N WE SHOULD RESIST RESTRICTIONS ON MEDIA AND ADVERTISiNGa HOWEV£R, p IN THE AREA OF VOLUNTARY AGREEMENTS WITH GOVERNMENTS WE SHOUL {r~1D RECOGNIZE THAT THERE IS A LIMIT BEYOND WHICH THE INDUSTRY ~ CANNOT MAKE FURTHER CONCESSIONS. ~-~~,~,:.,......... .' q'. _ . . . . . ..

4. DECLARATION OF CONSTITUENTS rko J'y WE SHOULD RESIST FGR--AS•-60NG--AS-POS9FBLE ANY REQUIREMENTS TO PUT FIGURES FOR THE YIELDS OF SMOKE CONSTITUENTS OR TAR GROUPS ON PACKS OR IN ADVERTISING. 1ll. RESE ARCH .RESEARCH PLAYS A KEY ROLE IN OUR REACTION TO THE ATTACKS ON SMOKING." IT IS INCUMBENT ON A RESPONSIBLE MANUFACTURER TO -UNDERSTAND THE ALLEGATIONS AGAINST SMOKING PRODUCTS, AND TO ACQUIRE ON A CONTIUING BASIS AS MUCH KNOfi.EDGE AS POSSIBLE OF HiS PRODUCTS: 'IT IS OUR POLICY TO FURTHER SUPPORT WORK ON THE SCIENTIFIC SMOKING AND HEALTH CONTROVERSY AND ALSO ON SCIENTIFIC MORK ELUCIDATING THE VARIOUS FACTORS AND MOTIVATIONS OF SMOKING. ONE AREA OF RESEARCH WHICH IS BASIC TO, AND WHICH SHOULD HAVE HIGH PRIORITY IN OUR THINKING, BOTH IN THE CONTEXT OF HEALTH AND IN DEVELOPING AND PROMOTING OUR PRODUCTS, IS THAT OF THE BENEFITS ASSOCIATED WITH OR DERIVED FROM SMOKING. THESE MAY BE LIMITED TO CONSUMER PERCEPTION OR MAY.BE REAL AND MEASURABLE. IT IS OUR VIEW.THAT CO-ORDINATED INDUSTRY EFFORT IS REQUIRED IN THIS AREA. THE RESULTS OF SUCH SCIENTIFIC INVESTIGATIONS MUST BE MADE AVAIL- ABLE TO THE PUBLIC BY APPROPRIATE MEANS. WE SHOULD EXAMINE CAREFULLY AND IF NECESSARY OPPOSE ANY PROPOSALS BY AUTHORITIES WHICH MIGHT MAKE THE--INDhlSTRY-RESPONSiBLE FOR D1- SEASES ALLEGEDLY CAUSED BY SMOKING. OF THEM IS LIKELY TO BE THE ORDINARY COMMON LAW ACTION OF NEG- LIGENCE. IT IS THE DUTY OF A MANUFACTURER TO TAKE ALL REASONABLE CARETO ENSURE THAT HIS PRODUCTS WILL NOT CAUSE INJURY TO THE ULTIMATE CONSUMERf THE STANDARD OF CARE REQUIRED IS THAT WHICH A PRUDENT MANUFACTURER WULD OBSERVE. WHILST CLAIMS OF VARIOUS KINDS CAN BE £NViSAGED, THE MOST SERIOUS

12.CiGARETTE MANUFACTURERS' ASSOCIATIONS WE ACCEPT THE NEED OF NATIONAL CIGARETTE MANUFACTURERS' ASSOCI- ATIONS AND GIVE THEN FULL SUPPORT. WE BELIEVE THAT THE INDUSTRY'S ACTIVITY IN THE SMOKING AND HEALTH FIELD SHOULD BE CARRIED OUT PRIMARILY BY OR THROUGH THE ASSO- CIATIONS, WHEREVER THIS IS POSSIBLE. 13:CLEARING PROCEDURES IN CONSIDERATION OF THE POSSIBLE LEGAL AND POLITICAL IMPLICATIONS OF ANY PUBLIC STATEMENTS MADE IN THE AREA OF SMOKING AND HEALTH APPROPRIATE CLEARANCE PROCEDURE MUST BE ESTABLISHED AND MAINTAINEV UNQUOTEs PLEASE LET ME HAVE YOUR COMMENTS AND OK AS SOON AS POSSIBLE. REGARDS = P. ISENRING +*+: