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.. o Moves towards smoking and health legislation in Brazil are expected in mid-1976. This is likely to follow the U.S. and German pattern. . B-AT's position in the U.K. with respect to the Medicines Act was outlined. . Part of Counsel's opinion on liability with regard to the marketing of cigarettes and substitutes in U.K. was reviewed and conference members were asked to put forward names of suitable people of international repute who could be approached as possible independent advisers. 10. The need was identified for further development of the central Millbank advisory service on smoking and health matters. In particular, a capability of fairly rapid reaction to enquiries and a broad and anticipatory approach, similar to that developed by the Group's North American competitors, was desired. Companies were asked to set out in detail their suggestions in this field. 11. After considerable discussion of the decision taken at Merano, it was agreed to continue to report carbon monoxide delivery internally in mg per cigarette, where this is possible. 12. It was agreed that consideration would now be given to the inclusion of studies related to cardio-vascular disease among the objectives in the Group Biological Research programme. 13. The progress of short-term inhalation work in Southampton was reviewed. Techniques have been developed which deliver adequate doses of smoke to the lungs of animals. The techniques and equipment are now in considerable demand from both our competitors and others. Publication of the details of the technique is going ahead. 14.. It was suggested that changes in lung pathology arising from short- or long-term inhalation work would only be considered of significance by some U.S. opinion if these were demonstrably irreversible. 15. In considering the programme of future work in Life Sciences, it was felt that the immediate need was to delineate the extremes of product change which could be effected, particularly in the design of low delivery cigarettes, e.g. ventilation, tobacco expansion and high efficiency filtration. .....a o o cr~ cr~ BATCo document for PFSFC 1 March 1999

m 5 ~ ' " 16. 17. The existence of the published Hunter Committee Guidelines in the U.K. probably affects the legal and ethical requirements which would need to be met in other countries. However, there would clearly be conflicts of medical opinion between various countries. Historically, the treatment of additives demonstrated this, but it also' demonstrated that, in the long term, adoption of standards in one country does influence standards in others. The role and future of the Group Biological Research Meeting was critically reviewed. It was agreed that in addition to the discussions which take place at the Group Research Conference, the Directors of Research or their representatives should meet at Southampton once a year, in order to play a more active part.in resolving priorities for the programme and obtaining wider commitment to the planned work, particularly on the part of No. l's. 18. The proposed cross-over experiment was discussed. This is aimed at resolving whether the switch by consumers from all tobacco cigarettes to those containing substitutes might result in increased risks. Animal experiments suggest a multi-stage process for carcinogenesis and there is concern that, although smoke from a substitute may be low in initiation potential, it could be higher than tobacco smoke in promotor activity. It was agreed that this cannot be resolved without an expensive experiment of the type tabled, but, for various reasons, full commitment to carrying out the test could not be obtained. It was agreed, therefore, to postpone further consideration until the results of a TRC cross-over experiment, using cigarette and cigar tobaccos, was obtained. It was felt this recommendatlon should be communicated to the Hot Springs Conference. 19. In Germany, a switching experiment is being carried out by Schievelbein on the cardio-vascular effects and compensation reactions of human smokers switching from high to low nicotine cigarettes and vice versa. 20. The possible centralisation of short-term tests such as NMFI, sebaceous gland, cysteine index, hyperplasia, inhalation promotion and the Ames mutagenlcity test was proposed; However, it was finally agreed that with the possible exception of NMFI, these tests do not transfer easily or quickly and that, therefore, the most appropriate course of action was to allow them to continue operation in the centres in which they are currently set up. In particular, the development of the Ames mutagenicity test would be left to the Canadian industry programme and, provided a steady flow of samples could be arranged, Hamburg would be willing to undertake sebaceous gland testing. O O ~O C~ ,_~4 BATCo document for PFSFC 1 March 1999

--6-- SMOKING MATERIALS 21. The work in B & W on developing non-combustlble cigarette fillers is now complete, However, in order to keep open the options on non-tobacco smoking materials, which are available to the B-AT Group, it was agreed that the biological testing of the B & W variants and the further development of non-combustible filler should continue at Southampton. The meeting would not support a case for capital investment in semi-commercial plant at this stage. 22. The view on competitive tobacco substitutes is that NSM is currently more acceptable than Cytrel in biological terms, in spite of its high carbon monoxide delivery. One, if not both, of these materials are currently being consumer tested in the U.K. 23. The meeting was informed that the Glory Mill plant will go into the commercial production of PRT for IED in September, 1976. A basis for agreement on the patent position has been reached with Schweitzer. This involves cross-llcensing of patents. In Brazil, a careful waste utilisation study is being made of the various alternatives which are available relating to the construction of a large scale plant. 24. 25. Germany is currently experimenting with a sheet produced by Schweitzer containing 20% chalk and 5% wood pulp. This is a cheaper product with attractive commercial possibilities. Again, this is in the waste utilisation area. In the PRT-71 project, an exercise is currently being planned to design a small 500 tons per annum plant. This will not necessarily be based on the Foudrinier type machine. It could lead to bett~r designs of a big plant but, in particular, would give more freedom'to all, if successful, to consider introducing PRT-71 with the original health orientated objectives. INTERACTION OF SMOKE AND SMOKER 26. There is still little known of the reaction of smokers to Products with changed characteristics. Compensation has been shown in the laboratories - people tend to try to take more smoke from low delivery products over short periods of time with the result that they perceive such cigarettes as having higher draw resistance or faster burn rates - but their response over longer accllmatisation is not yet clear. The response of smokers to the variability of draw resistance was seen as a subject, worthy of further study. CD C~ cr~ k~D O~ BATCo document for PFSFC 1 March 1999

--7-- 27. With the continuing appearance of low delivery cigarette brands, the need for further development of high efficiency filters was very clearly identified, particularly in relation to smoke taste. 28. Attempts should be made to move away from the current ad hoc approach to flavour development, particularly in terms of the development of flavours for low delivery" cigarettes. Better methods need to be developed for the identification and comparison of flavouring materials and it was suggested the mass spectrometer should be used in this programme as soon as possible. 29. The availability of high porosity cigarette paper in various countries for the production of low delivery cigarettes was reviewed. Progress in the manufacture of such papers is particularly advanced in Europe. It was agreed that similar developments should be encouraged on the part of the Group's suppliers elsewhere in the world. Papers of high natural porosity are required to facilitate the production of low carbon monoxide cigarettes. 30. Philip Morris is reported to be installing cold storage for packed cigarettes and it is felt that this could be aimed either at dealing with infestation or possibly at ageing problems. The problem of ageing is one that could be investigated in the operating environment. 31. Professor Dreys of Munich has reported that for many natural products, e.g. cacao, wine, it is possible to isolate a very small number of chemical constituents which are responsible for the characteristic flavour. If these views are confirmed, this could represent an opportunity of considerable importance in the tobacco field, particularly in the field of low TPM cigarettes. 32. It was suggested that the time is opportune to bring together, at Southampton, those doing research work using puff duplication techniques and a meeting in the Autumn of this year was requested. PRODUCT DESIGN 33. Considerable interest was shown in the P.D.L. activities at R & D Southampton and it was agreed that a four monthly review would be considered. o o BATCo document for PFSFC 1 March 1999

-8- 34. It is still regarded as necessary to continue the development of selective filters (for oxides of nitrogen, for example). The question of re-entering the field of carbon monoxide filtration was also raised. This is recognised as a project with only a very small chance of success, because of clearly recognised technical problems and it was decided not to pursue this objective. 35. 36. Now that sensitive acute animal inhalation tests are available to B-AT, possibly with some exclusivity, and since these require a much shorter time for completion than previous animal tests, these could be used in conjunction with product development without the introduction of unacceptable delays. The use of these procedures in this way could give the Division competitive advantage in the short term. Members agreed to consider this further and Dr. Green said he would raise the question at Hot Springs. The question is whether the tests should be used and whether Southampton could or should provide the service, and if so, on what basis. The current state of development of the O/WP technique was reviewed. Its use in product matching in South Africa and Mexico and as an aid to blending was outlined. The close similarity of Prince and Marlboro results was also highlighted. It was recognised that the technique still requires considerable technical skill in its execution and interpretation and its credibility could suffer seriously from misuse. For the present, therefore, it would be wrong to attempt to transfer this to testing laboratories. 37. Inter-laboratory standardisatlon of test methods and results presen~many problems. Where it is necessary to agree with Government authorities and competitors at a national level, it is recommended that regular meetings be arranged at bench worker level to resolve discrepancies and differences in procedure. 38. Burn rate and puff number control is a continuing need, particularly in the U.S. The problem is under study in GR & DC by an examination of cigarette combustion inter- linked with cigarette paper design and additives. 39. The U.K. approach to total product design of cigarettes and the development of minimum cost products was described and plans for future development discussed. x~c) BATCo document for PFSFC 1 March 1999

--9-- 40. 41. It was agreed that a review and circulation of information on the transfer of nicotine from tobacco to smoke was necessary. It was also felt that such a review would indicate that profitable work could be carried out on the improvement of the efficiency of this process. Work at present in progress in GR • DC tentatively indicates that the carbon monoxide deliveries from different samples of tobacco can vary quite widely. These variations are not necessarily in line with the tobacco grading, but do indicate that the selection of tobacco to be used in the design of low CO brands will prove useful.' 42. The measured CO delivery of cigarettes may vary markedly and it was, therefore, agreed that if sufficient evidence can be obtained, a defensive publication should be prepared in GR & DC on this subject for use in dealings with health authorities when league tables are being proposed. 43. Coated carbon is now available in sufficient quantity for consumer testing to be carried out on low carbon off-taste filters. It is not likely that any agreement will be reached with Smith and Nephew, the suppliers, at this stage, if at all. We can, however, proceed without them, if it is required. 44. Attention was drawn to the filter introduced on the brand Flint in Switzerland. This contains silica gel. It has been found that fine particles are discharged from the filter and could be inhaled by the smoker during smoking. This is seen as unacceptable and will be drawn to the attention of Philip Morris in private discussions. 45. The progress of polypropylene filter development was reviewed. Bridon have sought permission to approach Cigarette Components in the U.K. with the development and this has been given. In the B-AT Group, consideration is being given to the use of polypropylene tow in the Far East, South America and by I.E.D. PROCESS AND ENGINEERING DEVELOPmeNT 46. Energy considerations are a growing concern in the industry. R ~ D Southampton are now completing an energy audit as an example of an approach which could be more widely adopted. The energy requirements of the PCL plant have been identified in Canada as a growing cost item and heat recovery systems are proving valuable in controlling 0 o o~ N BATCo document for PFSFC 1 March 1999

-10- 47. costs in this and other processing systems. In discussing the aims and objectives of the GR & DC Process and Engineering Group, a number of clear lines for future work were identified : - a) Process studies, particularly as they relate to the effects of process variables on product characteristics as seen in the longer term. b) Pre-production studies and development of new machinery. c) Product control for the future, i.e. TPM, nicotine, CO, NO, etc. d) Rationalisaticn of drying practices and the level of control achieved. e) The examination of the primary process possibly from the botanists' point of view. 48. 49. The Australian company is now going ahead with the GI3 process. It is also considering the use of vacuum drying and the removal of solubles from stem in the cigarettes. It is possible that confidential tests could be made by other Group companies using the Australian G-13 plant and Mr. Nicholls agreed to discuss this in principle. The use of GI3, however, can now be seen in the context of low delivery cigarettes. On marketing and quality grounds, it may now be seen as a factor in product improvement. The Group still do not envisage the need of the GI3 process for filling power improvement other than in Australia, because of cost and royalty considerations. % 50. The need was recognised for a safe and reliable tracer for use in blending studies. Rubidium, silver and lithium salts have all been used in the past. It was agreed that before a choice of tracer was made, transfer studies should be carried out and any effects on the smoker considered. STATUTORY REQUIREMENTS, ETC. 51. Mr. T. G. Mitchell will visit Montreal shortly to discuss microbiological control problems. The opportunity will also be taken to discuss a programme of work in GR & DC on the use of enzymes in the improvement of tobacco quRlity which the meeting would llke to see undertaken. O ~O C7~ CO BATCo document for PFSFC 1 March 1999

-11- 52. Serious and expensiv6 problema still occur with tobacco developing moulds due to faulty storage conditions and greater care, together with a better understanding of the problem, is called for. These problems, however, can generally be handled by companies with bigger R & D facilities. 53. The proposed EEC limits on pesticide residues in tobacco were reviewed. These will present control requirements for the future for those exporting tobacco and tobacco products to Europe. In Australia, where current levels are much higher than any anticipated legislation could envisage, efforts will need to be initiated to reduce the contamination in advance of any foreseen Government activity. 54. One further threat to the industry which is now developing concerns the objections by local authorities to the odours attributed to tobacco factories. This problem is a live issue in a number of countries and work is going on in all of them to find a solution. Complaints can arise from smells both outside and inside factory premises. TOBACCO STUDIES 55. The Group's need for further research on tobacco growing was reviewed. Work was proposed for Brazil on pre-harvest curing, particularly as related to Burley tobacco. Other requirements were : - a) the development of tobaccos having enhanced flavour characteristics, ~or example, as identified by O/WP - pyrazines and indoles). b) the growing of tobacco of improved physical properties c) the development of tobaccos specifically for low delivery cigarettes d) cell and root culture studies, e.g. Prof. Zenk, (Dortmund) 56. In the U.S., Becker is expected to report that glycoproteins in tobacco can cause allergic reactions possibly both in the smoker and the passive smoker. This 'is being examined in the U.S. by Savaggio. But, since it could give rise to a very serious threat, if it cannot be rebutted or controlled, it will be pursued urgently in GR & DC. ---..w ~4D BATCo document for PFSFC 1 March 1999

-12- MISCELLANEOUS 57. Many workers in sophisticated laboratories in the Group are now using advanced scientific equipment which can be of intdrest to their colleagues in other locations. It was agreed that the performance of such equipment will be reviewed critically in future and reported for the benefit of those who could be interested. CONCLUSIONS 58. At the end of the Conference, the Aims and Objectives of the U.K. R & D programme were re-examined in the light of the discussions which had taken place. A number of conclusions were drawn : - a) The role of central R & D was seen by the meeting to be concerned both with insurance aspects (anticipating outside research results, etc.) and with its contribution in providing scientific foundations on which Company R & D would build. b) The Biological Research programme might now be more directed towards the development of specific products, but policy guidance is needed on the directions in which we should move, for example, to lead in health orientated, biologically tested cigarettes. So far, our central research has been concerned with providing options; should these now be taken up? So long as we are concerned merely with providing options, R ~ D are necessarily self-starters, but more positive product development would require guidance and commitment from No. l's. c) Nevertheless, the defensive role of high quality research across a wide field should not be neglected. In particular, this enables us to refute allegations made based on poor quality research. The Aim on Smoking Materials, etc. was reworded as follows : - To develop the options and the technology for the production of smoking materials having desirable subjective smoking characteristics and physical properties compatible with tobacco manufacture, while possessing improved and/or controlled smoke properties with optimisation of cost. The meeting felt it would be desirable to give indications of the time-scales involved in different approaches. C:) <:D c~ x4D xYD "--4 O BATCo document for PFSFC 1 March 1999

-13- d) e) f) The Aim of the work on interaction of smoke and the smoker was considered and .after a full discussion was changed as follows : - To establish in objective terms why people smoke, how they smoke, and the effect of product characteristics on smoker response in order that preferred cigarettes may be designed. Product design Aims were restated as :- To advance the technical knowledge necessary to combine the components of cigarettes to produce predictable effects. In the process and engineering'development field, it was agreed that a longer range approach should be adopted and the processing side particularly emphasised, although not to the exclusion of all machinery development. The Aim was changed to : - To pursue longer range developments in tobacco and filter processing and handling techniques so as to establish both methods and guidelines whereby the quality of the product can be improved, tobacco used more efficiently, greater control exercised over the packaged product and cost reductions realised. 59. g) The remaining Aims were endorsed without modification. It was recommended that, in putting forward for endorsement by the Chairman's Conference at Hot Springs the revised Group R & D Aims and Objectives, the individual objectives should be illustrated by narrative statements. To this end, overseas research centres agreed to submit items from their own programmes which had co-incident objectives, to ensure that overlap is minimal or, where it occurs, is deliberate to ensure local requirements are met. 60. A revised policy for patents was put forward. In this, the aim would be for the patentees to recover costs from users and beneficiaries where possible. Companies would then be free to pate~ where and when they wished, subject to some general Club rules. A drawback of this proposal was identified as a possible increase in secrecy within operating companies, although it was recognised that this already exists. fib O ~uD ---4 BATCo document for PFSFC 1 March 1999