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MRY 26 '94 15:36 6283498 RICFiARD T. HU1ES CONSULTING. INC. 73313dh saeec NW • 7th Pfoor WachimAooa, DC 20005 (2202) 393-0720 • FAX (302) 393-0079 May 26, 1994 Mr. Mat t 11i nokur Director International Regulatory Affairs Philip Morris 120 Park Ave., 23rd Floor New York, NY 10017 Dear Mr. Winokur: P.2/5 In reference to your request tor a proposal relating to news media relations in the European market re•layed to me through Dr. Thomas Borelli of Philip Morris Corporate Affairs, allow me to offer a few ideas. • r To date, it is true that the international tobacco business has avoided some of the negative pressures that have affected Philip Morris in the United States. In this day and age of CNN and instant communication, this will not be the case indefinitely. You may be somewhat familiar with our work with Dr. Borelli involving various policy Institutes in the United States and our development of a network of receptive Journalists, television commentators and editorialists. One successful approach we have employed is our work with the National Journalism Center in Washington, D.C. NJC conducts on-going intern programs for college students and recent college graduates and also assists their graduates to obtain .1obs in maJor media organizations. I attach a partial list of NJC alumni hired or published in maJor media. I would like to take this opportunity to endorse your Idea of exporting for European publication maJor American studies which / support our position, especially the May ii, 1884 testimony of Jane ,/ G. Gravelle of the Congressional Research Service. This is the simple most significant document by an agency of the U.S. Government.supporting the Industry's view of EPA's fatally flawed study on ETS. If this testimony supported the "anti" position, we would already be hearing about it in the print and television media in Europe. Dissemination of the CRS material would be an iemediate and concrete benefit of our proposed'proJect with European policy

MAY 26 '94 15:37 6283498 P.3i5 ;. *00114P inst itutes . Our approach to the European media would be similar In concept to what we have done in America. I have worked closely for many years with the Adam Smith Institute, a tree market, anti-regulatory policy institute based in London and active throughout Western Europe. In Eastern Europe, more recently we have developed a strong relationship with the Krieble Institute based in Moscow, which pursues a similar program to Adam Smith throughout the region. Since 1988, the Krieble Institute has been facilitating this transition to democracy and free markets by bringing successful American entrepreneurs to the former Soviet Union for face-to-face meeting with businessmen. In 1993, the Krieble Institute conducted 22 maJor conferences in 12 different cities in the former Communist bloc, and over 20 mini-conierences in the former Soviet Union. The Krieble Institute wishes to expand its operations by founding a school of Journalism. Pro-free market, entrepreneurial views are often well-presented in the print media in Europe. However, the Krieble Institute seeks to sustain and improve this coverage by training and sending young Journalists to work in the print media of Europe. Their are literally dozens of additional lree market policy groups throughout Europe with which we have contacts. More importantly, through these policy groups- especially the Adam Smith and Krieble Institutes, we have developed lists of key media contacts in each European country. My rudimentary proposal is this; in a manner similar to our approach In the U.S., Philip Morris should fund special programs by ~ the Adam Smith and Krieble Institutes to conduct Journalism ro rams These would consist ot intern programs and policy torums -' & Ph li Y i focusing on regulatory threats to indus ry an political" science. in turn, we would then promote the "care and feeding" of key ~ V tournalists to develop a network sympathetie o i p orr s concerns. The tollowin is a PreliminarY roPosal that out lines a p ~~I g media/policy plan that could be executed in Europe. Unlike most- ~ plans that focus on getting one message out to the mass media our plan focuses on getting our message out to selected network oi./ ,lournalists. Using this approach In the U.S. we have been able.to get favorable articles/commentaries in major publications such as the Wall Stree, ournal, National Review and reach millions ot the ~'~~ pub c through the numerous syndicated columnists that are in our network. Moreover, using this approach we can develop a sustainable media presence in Europe that can be accessed for numerous issues. ~ ~ For success in Europe we would execute the following: -Establish the network... identiYy Journalists that are,--CA receptive to our message. 4A. -Provide supporting material to these Journalists on a~ ~ ~ ~

MAY 26 '94 15:37 6283498 P.4i5 continuing basis. -Train and educate Journalists via policy groups seminars and internship programs.• It is essential that we utilize European based policy groups to execute this program. The policy groups serve as the link to identity Journalists as well as provide local and continual contact with selected media. These policy groups can sponsor conferences, publish magazines and newsletters as well as sponsor ,lournalist iAternship programs. As a second phase. to this idea piece, I will be pleased to provide you with funding proposals for the Adam Smith and Krieble Institutes and a step by step Implementation plan for our European media relations program. Richard T. Hines President