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RJ Reynolds

Nw Laborers V. Philip Morris C. Dennis Durden. Exhibits 1-18.

Date: 17 Dec 1998
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.." In The Matter Of: NW I:ABORL%RS v, P.IIIIIP MORRIS C, DENNIS DURD :N 'Lrol. 1, December 17, 1998 Seattle Deposition Reporters 1325 Pourt.h Avenue, Suite 1740 Seattle, WA 98101 (206) 622-6661 ortgtnalFtleLD121787n.V1, 159 Pages Mtn-U-Scrljitm File ID: 2977606179 116JK/ Gk4) -,- 4 ~ Word Index included with this Min-U-Script®
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C. DENNIS DURDEN NNV LABORERS v. ; Vol. 1, December 17, 1998 PHILIP MORRIS Pag© 12 (1) counsel. [zl 0: Whert you had a discussion with the lawyers PI yesterday, was the subpoena present? [al A: I had the subpoena in •-- I had my copy of the Isl subpoena in this briefcase as I have it here ls] (indicating). m MR. WITHEY: All right.WCll, do you want [el me to leave the room? Isl MR. BUSH: If you wouldn't mind stepping [101 Out. [111 (Discussion off the record.) [1zl MR. BUSH: Mr.Withey, for the record, t13] yesterday there was a meeting attended by myself, p41 as counsel to the witness, and also counsel for Iis) RIR Nabisco and Philip Morris, and the discussion Ilsl at that nteeting related to the time periods under (1r] which Mr. Durden was an employee of I(iR Nabisco. t+Bl 1ZJR Nabisco has raised an objec tion to his (1sl answering of those questions in part because the [zo) matters involve his employment with RJR Nabisco [z11 during the time period that is relevant in this rnl lawsuit, and we are going to - 1 am instructing tnl Mr. Durden not to answer, or to at least give you tzn) an opportunity, ifyou wish,to seek a quick and [isl prompt determination from the court on the issue Page 13 [q of whether or not this witness should be tzl compelled to answer those questions, and it's t31 just difficult for us to make any determination bl inconsistent with that, particularly given the Is] assertion of privilege by I(1R Nabisco. Isl MR. WITHEY: All right, thank you. m Briefly, just for the record, plaintiffs' lel position is there is no joint defense privilege [gl in light of the facts that were developed in the [w) beginning of this deposition, and in the event P11 that we are able to successfully seek a ruling (121 that overrules the assertion of a privilege, we [i31 will ask that the parties asserting the privilege [iq and instructing the witness not to answer pay (15) sanctions, [1s) MR. HOWARD: Well, Mr.Withey, just for ttrl the record, let me make clear what I meant by the pal joint defense privilegc.We have one with ]uR, (1s) and counsel for the witness appropriately noted pol that the presence of an 12,11t attorney at I211 Mr, flush's discussion in the preparation session W with his client, because it related to the time tzal period of his employment with RJR, does not waive [24] the privilege of the conversation between [261 Mr. Bush and the witness, and then our presence, [11 as counsel for Philip Morris, we believe, does [z] not waive it either because of our joint defense (31 position with IuR. (4] I don't know that I made that clear enough (s) the first time around, and I understand that your [sl position is that there was no privilege attached m to that conversation, but we want to maintain it [s] until we get a court ruling that there was no [s) privilege for this purpose and for precedent for tlo) any future preparation sessions with other [111 witnesses. 112] MR. BUSH: And Mr.Withey, just to make 1,31 sure the record is clear, there is a phone here, (14] and if you want to take the opportunity to call, (is] we would not object. We are more than happy to hsl comply with the order of the court on this issue. Il7l MR. WITHEY: Well, I don't know if either Ilel Judge Guinn orJudge MagistrateThomas are [1al available now, and perhaps at a break we could [20l determine whether that's a possibility, although [z11 I would prefer to develop the record, have this [zzl record made, and make sure that the court has all rn) the information they need. 1241 Q: I would have asked a series of questions about rrsl what was said, what you understood, Mr. Durden, Page 14 Page 15 and what was told you about this deposition. Obviously, all of those questions I think are going to be objected to and you are going to be instructed not to answer. MR. WITHEY: Can we assume that? MR. HOWARD: That's correct. I assume the instructions would come from Mr. Bush. . MR. KOETHE: We would object to the extent that the questions bore on the issue of the content of the discussions that took place yesterday between Mr. Durden and his counsel in my presence and in the presence of Philip Morris's counsel. 0: Sir, can you give me a sense of where you grew up, and went to high school. A: I grew up outside ofAUanta, Georgia, and went to high school. Q: Did you go to college? A: Went to college. Q: Where? A: At Georgia Tech. Q: Did you graduate? A: I graduated. 0: In what degree? A: Bachelor of management. t.. U, rv -- --- - Page 12 - hage 15 (6) Min-U-Script® Seattle Deposition Reporters 622-6661
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IN W LeVisUt(ta<J V. r PII7I.IT' MORRIS (11 UNITED STATES DISTRICT COURT Izl WESTERN DISI'RICT OF WASHINGTON (31 AT SEATTLE WI 15] THE NORTHWEST LABOFlEEtSEiMF'LOYERS ) H[ALTH & SE.CURf1YTRUST F UND, and I (sl tls TRUSIEES, e1 al„ ) p) PlalntA/s, ) No.C97-649WD (e) vs. ) (91 PHILIP MORFIIS, INC., at al, ) (101 Defendanls. ) IIh 2] Depositlon Upon Oral Examinallon ol I+al C. DENNIS DUFIDEN l Taken a15S00 Two Union Squaro (161 Seattle, Washinglon 117I [161 1191 t~l R~) Inl tnl DATE: Deoember 17, 1998 (z41 REPORTED BY: Leanne M. Davls, CCR. RPR CSR No. DA•VI•SL-M974M Page 2 [~I APPEARANCES [21 PI , ForlhePlalntdfs: MICHAELE.WITHEY 141 Sirilnatlor Kessler Wlwlan wnhoy (sl 1200 Markel Place Tower 2025 Firsl Avonue 161 Seatllo• WA 98121 m For the Defendant, AINJ B. HOWARD 181 Philip Morris: CHRISTOPHER M. NOLAN C. DENNIS DURDEN Vol. 1, December 17, 1998 Page 3 (9 INDEX (z) 13] EXAMINATION BY: Page E41 Mr.WOhey ........,.., 4 Isl r !61 Ial (9) EXHIBRS FOR IDENTIFICAT'ION: (101 Number Pago (111 1 r ICOSI Reporl, Aprll 1979 26 (121 2• Memo, Narr to Durden, 1/6!!9 26 [1a1 3• Memo, Narr to Durden, 1r9fi9 26 (141 4 • Document Entitled, "Social Costs, l V So i l M 1979 26 c a a ues; ay (15] 5- Memo, Durden to Several, S/10q8 26 1161 EI7I 6- Memo, Durden to Several, 2110/82 26 te 7- Memo, Narr to Durden, 1/10f/9 26 [ l 8 - Document Entitled, 'Social Costs, (191 Soclal Values • Progress Repon,' 3/17I80 26 (70) 9• R.J. Reynolds Prolil, Expenditure, or [211 Policy Change Proposal, 6/26/77 26 1221 10 • ICOSI Report,'Working Party on SoclaE AcceptahilAy of Smoking; E131 Juty 27•29, 1977 26 (241 (Conl'd) f25] Winston & Slrawn 191 200 Perk Avenue NowYork,NY 10166 110] D Il For the Defondant. PAUL D. KOE.I HE RJ, Reynolds: Jones, Day, Roavls & Pogue (121 North Point 901 LakesltloAvenuu Il]I Clevoland,OH 44114 1^ Ui Fa t<r F., Vi o) I 7 ,., For the DopononC GAYLE E. BUSH 115j Bush, Slroul & Kornleld 5500 Two Union Square (161 601 Union Street Seatde, WA 98101 [vl [181 N W (I91 Seattle Deposition Reporters 622-6661 Min-U-Scripitel (3) - Page 3
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C. Dr;NNI.S DuxDE*N Vo1.1, December 17,1998 Flage 36 I+I characteriiation of the social-cost issue that (2) you've described? [al A: As we wercc dealing with it, yes, I think this [al is a fair representation of what was being [s alleged. ls] Q: Let me go through the first sentence under "The m Argument Linking Smoking to Increased Social [e] Costs." Could you read that first sentence out le1 loud. (tol A: I'm sorry, I'm lost. (I+I Q: Under"T'heArgumentLinkingSruokingtoIncreased a2l Social Costs" - (+al A: Oh, I see.Okay, yeah. [+q 0: -- read the first sentence starting "All major [+s] studies ...". ]+sl A: "All major studies show that cigarette smoking is l+n associated with increased sickness and mortality pel from a range of conditions including lung cancer, I+91 bronchitis and coronary heart disease." rpl 0: Did you believe at the time that there were [z+] studies showing that? tnl A: There were studies that said this, yes. Izal 0: So, in other words, from your standpoint, you re<I were aware that these were studies that were in [zs] the literature linking smoking with these Page 37 diseases, A: That's right. Q: So the linking of smoking to diseases and medical costs was something that was at least a part of the social-cost issue; fair enough? A: The linking of smoking with increased medical costs -. Q: Yes. MR. HOWARD: I'm going to object to the form of the question. Go ahead and answer. 0: Ile can object, but you should go ahead and answer. A: Yes, smoking was associated w'ith disease and the increased cost of treating disease. Q: And if you could read the last paragraph on that page out loud, starting with "This burden ...". A: "This burden should be shifted to smokers and cigarette manufacturers through legal means or Izol legislation to permit wetfare agencies to recover -rf l medical costs and transfer payments from rqI cigarette manufacturers and smokers; or through a tnl safety tax to induce manufacturers to produce n<I s,3fer cigarettes while providing the means to pay trsl for smoking-related medical costs.' Page 36 - I'age 39 (12) NW LABORERS v. ; PHILIP MORRIS Pago 38 1+] 0: Again, was this an argument, at least, that was Iz] being raised by people in the communities or p] society, that this cost-shifting, a burden should Inl be shifted back to or onto smokers? ls] A: This is one of the things being asserted as a (sl part of the issue, yes. m Q: And you understood, did you not, that it wasn't (e] only the smokers who were going to supposedly pay (9] for the social costs, it was the cigarette [+ol n>lnufacturers, correct? I++l MR. HOWARD: Object to the form. li?t A: No, I don't - I don't understand the difference (+31 there.I'm sorry. (+n] 0: Well, let me ask you this:The sentence you just [is] read states, "This burden should be shifted to ns] smokers and cigarette manufacturers through legal l+r) means" and other means. (+s) You understood that it - I+s] A: That's what people were saying should happen, (zol Q: Yes, correct. (z,l A: Yes. [zz] Q: And that's what you were aware of when you were [nl working on the Social AcceptabilityWorking a<I Patty,that people were saying that. Inl A: Yes. Page 39 I+I Q: And so you understood quite well the argument, at M least, that was being made.Whether you agreed [a] with it or not, you understood the argument - I<I A: Yes. (s] Q: - about the burden being shifted onto smokers (sl and cigarette manufacturers to pay for these (7] medical bills of smokers, correct? (el A: Right, right. (9) 0: Now, let me ask you this question about that last [+o] part of that sentence, Mr. Durden. It talks [+a about the idea of inducing manufacturers "to [,zl produce safer cigarettes while providing the (+al mcans to pay for smoking-related medical costs." li<I Did you have an understanding that if the I+sl costs of that medical care happened to be shifted hsl back onto the tobacco industry, that the tobacco Itrl industry might have a financial incentive for (+el developing safer cigarettes? l+sl A: No, I never got that far. I know it was written (zol here, but I just can't say that was a core [21] understanding of mine. tn) Q: Well, I appreciate it wasn't a core rzal understanding. rznl A: Yes. (zsl Q: But reading this sentence now - Min-LI•Scriptta Seattle Deposition Reporters 622-6661
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1V W 1.AISURIiK_S V, PTITI_II' MORRIS Page 32 I+1 A: Yes, I think so --- yeah, yeah, they were. rzi Q: And there were other tobacco manufacturers 131 internationally that were also involved in the lal ICOSI effort. tsl A: That's right, 161 0: And they included Gallagher, Imperial, Reemstttta, pl and Rossn>ans, amongst others; is that correct? tal A: That's the whole roster, as nearly as I can Isl remember, t+oj Q: Now, I want to direct your attention to the p q issues of social costs, if I could, to focus you tI zl on that problem, as distinct from passive smoking t+31 and sntoker courtesy, just for a second, t <I A: Okay. 1151 0: I'm going to hand you a document which has been hsl marked as Exhibit No. 2,You can probably put I+A No. 1 away now, if you want. p8J A: Okay. pal Q: Exhibit No. 2 is a document written by David Narr tzoj to yourself called "Social Cost of Smoking Rn Literature Review," and it's dated January 6, R21 1979. It was provided to us in discovery. Pl I wanted to ask whether some of the tz+j statentents in here refresh your recollection as 1251 to the issue of social cost, and before I direct Paga 33 t+l your attention to it, let me just see if we can l?I reach an understanding of what the concept of t3i 'social cost" is, so that when we use that term t<I in this deposition, we can use it consistently. ISj Fair enough? lel A: Sure, r4 0: As I understand it - and again, correct me if Iel I'm wrong - the notion of °social cost" was that tsl there werc. at least sonte studies that showed that pol cigarette smoking is associated with increased tIq sickness and illness and disease, and that there t+21 were costs to society including, but not limited 1131 to, medical costs that that sickness and disease 1141 caused by smoking caused, and that there were t,s those in society, both in the United States and Dsl internationally, that sought to have that cost - Inj medical costs and other quote-unquote social pel costs - borne, rather than by the people who nel were paying for them now, by the tobacco rmi industry, including Reynolds and/or by smokers. ml Is that a basic understanding, a correct Inl understanding of the 'social cost" issue? Is,j A: Let nte try and phrase ir. my way. I'm not saying 1241 you're wrong, but -. 12s 0: Fair enough. C. DLNNIS DURDEN voL 1, December 17, 1998 Paga 34, t+l A: Let's see, what we were using as a definition t21 were the allegations being made, that apart tal altogether from the costs of smoking to smokers, lal there were other costs that got picked up and tsi borne by others in society, and therefore the " tel concerns for smoking's impact on smokers were no [7) longer the only concerns that were being - and tsl allegations that were being made.The tsl allegations were being made that above and beyond ttol the cost of smoking to smokers, it was alleged ttil that society was bearing costs. (12) Now, there was also the assumption that pal society was getting certain benefits from tax tt<I revenues, excise taxes, and things Iike that, but ttsj that was basically - that was the mind-set as I t+sl remember it. t+rl Q: Was the mind-set within the SocialAcceptability lial Working Party, or the people you worked for, also t,sl that part of the social costs, at least, being rml alleged were medical costs for treating smokers? tatl A: Yeah.Yeah, there was - tite allegation was that ral we could have less expensive medical care, in a rsol general sense, if people engaged in fitness tzal routines, engaged in diet regimes, and smoking tzsl cessation. Page 35 IlI Q: Let me ask you to read under 'TheArgument m Linking Smoking to Increased Social Costs" of l31 page I of this document. PI First of all -- and please feel free to tsl review this -- the title of it is "Social Isl Cost of Smoking Literature Review.' Do you tn recall that within $JR, even if you don't recall tel David Narr, there was conducted a literature tel review to see, Well, what are people saying about t,ol the social-cost issue? t+ l A: Apparently that's what this document is. May I l+zl read this? t+al 0: Sure. Let n e just tell you, I'm going to ask you (14] mainly about the first page. If you want to read nsj the rest of it, that's up to you. t+sl A: Okay. 1171 Q: But to save time, so we don't have to go over to t+el sonic other day, I'll direct your attention to the hsl first page and then the top of the second page, (zol sir. [zil A: (Witness reviewing document.) Okay, I've read fnl it. f23l Q: Let me just ask you, is this document, at least rz<I as far as you read it, Exhibit No. 2, in the tzal first page and the top of the second page, a fair Seattle Deposition Reporters 622-6667. Min-U-Scriptta (11) Page 32 - Page 35
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C. DP,NNIS DURDGN VoL 1, December 17,1998 Page 28 ul A: I was phasing otu in '79, so I don't -- I can't (21 give you an exact answer. Isl Q: 1f you could turn to the last page. wl A: (Witness complies.) (s( 0: Do you see listed there sonie of the Philip Morris (sl personnel represented within ICOSI? m A: You are on page 13? Isl Q: Yes. (el A: Yes. 1101 Q: Do you recognize any of their names? n+l A: Yes,)im Morgan. I see that I recognize him.I pal recognize Mary Covington. I just have trouble with hal this George Burman. (,<I 0: Well, we'11 have other documents that will (is( probably refresh your recollection. [isl A: Yes.And I don't know any of the test of them. (+11 Q: Let me ask you to read just the first paragraph hsl on the first page. lie) A:Oh,okay. Ro( MR. BUSH: Do you mean the second page of tzq the exhibit, Mr.Withey? rnl MR. WITHEY: Yes. Ral A: Am I on the right page? Rq Q: You are. Rsl A: This here (indicating)? Okay. Page 29 (n Q: Why don't you read it aloud into the record, sir, RI and then I'll have a couple questions. t31 A: "Reason and Objectives: I.The problems and (<I attacks proposing restrictions of smoking and tsl normal commercial activities like advertising and (sl publicity have become highly international, m Examples in one country are used to attack the lel industry in another. 191 "No one industry in one country nor any I+ol one company can wage and win the battle against pq this sort of organized worldwide attack.The t+zl resources are just not available to collect all n31 the evidence required nor to prepare [n<I counterattacks on a separate basis.l'hc whole pq industry, companies and trade associations alike, (,sl must unite with common targets and common nn approaches. (,el 0: Mr. I7urden, is this a fair description of the I,sl reason and objectives of ICOSI as you understood pol them? -RlI A: As I understood it, . Rzl Q: And I want you to then turn to page 3 of the pl document. (z4l ;. A: What is that page? Rsl Q: It's at the top, 3. NW LABORB,RS v. P]i1L1P MORRIS Page 30 (Q A: Oh, I see. Okay, I've got it. RI Q: Under "Working I'rogrtms" in paragraph 3 of [al page 3 - 141 A: Uh-huh. (sl [sl Q: -- do you see your name there, sir? A: Yes, I do. m Q: Would it be fair to state, then, that at that (a) time, at least, you were still the chairperson or [sl chairman of the Social Acceptability Working [+ol Party? (11] A: That's certainly the inference I would get from hz) this. 1+31 Q: What was the SocialAcceptability Working Party, (,<( sir? hsl A: I guess you would describe it as a task force [,sl composed of representatives of the various [+n companies, and our mission was to define the [iel issue of social acceptability. [is( 0: Within the idea of "social acceptability," were Rol there three basic issues: one was passive R+I smoking, or secondhand smoke, the second was Rx( smoker courtesy; and the third was the social Ral costs of smoking? R<I A: I wrote that somewhere. Now, that rings a bell. Rsl Q:Okay. Page 31 hI A: I don't know where that is. Can I read through RI here? (31 [4I 161 161 f/I Q: Of course you can. A: Because it was in one of my reports. Q: Page 7 at paragraph 6. A: Yes - page 7. Q: If you can go ahead and read into the record the [e( paragraph numbered 6. (e( A: The heading is "SAWP" - SA-W-P -"Social hol Acceptability Working Pany." °This working n,l party copes with the most difficult problems. h71 Three basic levels for social acceptability hsl issues have been defined: passive smoking, smoker h<I courtesy and social cost." (,sl 0: Is that a fair description, then, of the [+sl difficult problems that the SAWP was dealing with [irl in your tenure? he] A: I think that's the way we defined it, yes. I+sl 0: Now, as I understand it - correct me if I'm Rol wrong -- Reynolds was involved with ICOSI and [21) SAWP through you and others, correct? tnl R31 R<I A: Yes. Q: Philip Morris was involved; is that correct? A: That's right. Rs( Q: And was British American Tobacco involved? Page 28 - Page 3] (10) Min-Ll-Scripto Seattle Deposition Reporters 622-6661
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1v W lAlilllU;KJ V. PFIILII> MOItRIS Page 48 In A: "Dennis Durden has outlined the major social cost Rl thrust against our industry." hI That was the previous thu gs from David Narr, [41 That was the thrust against our industry. tsl Q: And did you understand that one of the [el countermeasures or one of the themes of the m attack of the industry was to argue that "social lel cost concepts are bad economics"? (9) MR. KOETHE: Excuse me..I object to the tiol form, lack of foundation, asked and answered. [1+I Q: You can answer it. (12] A: Please restate it. 1131 Q: Did you under,stand that one of the themes of the t<I countermeasures or one ofthef themes of the ICOSI [isl effort was to make the point that "social cost hsl concepts are bad economics"? pn MR. KOETHE: Same objection. (16] A: All I understand is this is what George Burman [,91 proposed. iaol Q:Okay. R1I WI A: That's the extent of my knowledge. Q: Well, he did propose it, though? pl A: I guess so, because you showed me this. I don't 1241 know. tzsl 0: Did you have the belie.fthat one of the things Page 49 i,l that you were doing in the SocialAcceptability (zl Working Party was develop programs to demonstrate (31 that "smoking benefits society and its members in [+I rwiny complex ways"? isl A: We had always thought, in the Social Isl Acceptability Working Party, that it would he rq important, if society did benefit front smoking, [sl if there were social benefits as well as social lal costs, that those be brought forward. pol 0: Well, did you draw the conclusion that there p,l were, in fact, social benefits to smoking? t 21 A: Oh, yeah, n31 0: What were they? [ul A: Well, we never did - you know, that's what you i+sl figure out, but I would say they included such psl things as taxes, 1+?I psl (191 0: Anything else? A: Support of the farm cconomy. 0: Anything else? R01 A: Social benefits - no, I really never studied 2I it. fnl Q: Other than the taxes and the support of the farm tnl economy - I'm assuming you mean the tobacco tz<I industry? [2sl A: Yeah. C. DENNIS DUItDEN Vol. 1, December 17, 1998 Pago 50 [+] 0: - that was a financial benefit related to the m sales of product in the marketplace, correct? 131 A: No, it was related to the taxes that cigarettes [41 paid.The excise taxes go for something. [sl tsl m [el 0; Yes. A: They benefit society. Q: Financially. A: Yes, financially. 191 Q: But I'm asking you a little different question, itol and that is, what are the benefits of sneaking as [+i distinet from the financial taxes or the fact tizl that people are employed in that industry? Are t+3] there social benefits of smoking, do you believe, tt<I that were put forward as benefits by SAWP? [isl MR. KOETHE: Object to the form; l sl foundation. I t! A: I don't think SAWP -- again, during my watch, I pei don't think we came forward with that. (19) 0: All right. teol A: But there were such things that smoking benefited lz+l the smoker, you know, period of rest, parsing the [rq day, things like that. [zal 0: But that would be an individual or private R<1 benefit to smokers, correct? fzsl A: That's right. Page 51 t+l 0: And that's district from a benefit to sociery iz] from smoking, correct? t31 A: Well, I don't know that I- that my economics [cl are that good. Isl Q: Did the SocialAcceptability Working Party or tsl the countermeasures subcommittee - whichever p7 part of the organization it was --- also advocate lal that "anti-smoking programs and groups are tsl harmful to our society," as indicated by this iol document? il A: I don't know that we ever did. zl Q: Did you believe that the anti-smoking programs +al and groups were harmful to society? ai A: No, I don't think they are harntful to society. ,sl They are part of society. nel Q: In fact, it's been stated in the Surgeon [nl General's report - and I ask you whether you [te] agree - that the anti-smoking campaign has tiel actually saved hundreds of thousands of people's izol lives that either didn't start or quit smoking. (z i MR. HOWARD: Objection to form. [xzi Q: Do you agree with that concept? tzel A: I just have no basis for knowing. vi ,., h-` W tn [z41 0: How, Exhibit No, 5 is a document, again, that was Izsl provided to us. It was a document you wrote on Seattle I)cposition Reporters 622-6661 Min-iJ-Scripto (15) Pagc 48 - Page 51
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!V W 1.dtSV1U:KS V. Pl:-IILII' MOIiRIS 0] Pago 24 A: I don't recall David Narr. David Narr - give me 12] a mOnlent. t37 I can't place David Narr. 1<I 0: Were you involved in an organization called (sl ICOSI, I•Cd)-S1, the International Committee on (sl Safety Issues? PI A: I was involved in a working party for ICOSI. Ial Q: \1Vhat was the name of that working party? 191 A: It was the SocialAcceptability\xlorking Party, I al SA\Crl; S-A-WP. a+l Q: Were you the chair of that? (i21 A: I was the chair of that from '77 to '79. 1,31 Q: And after 1979, did you have any association with p<I or work for either ICOSI, the Social lisl AcceptabilityWorking I'any, or any of their (,el committees or organizations? hn A: I had no regular assignment there, no, but I pel can't tell you whether things came across my desk pel or not. I would imagine that some things did. tzol 0: Do you recall who the persons working at RJ. p l Reynolds were, or any of their affiliates, that tnl worked with you on the Social Acceptability Working ml Party or ICOSI? Or I think it later changed it's Iz+l named to INFOTAB, if you are familiar with that tzsl organi.ltion, Page 25 II A: Yes. I21 Q: Cin you name thenl,please, nl A: Yes. I worked directly with Jim Hind, and Jim NI Hind was my direct liaison c.ith the tobacco (sl company. 161 I remember also working with SamWitt,who r7l was at that time counsel forTobacco lel International, which is a company I forgot to Isl mention as one of the components of Industries. (iol 0: Do you recall any other individuals working, (,U again,widl any of the ]Z,IR-related companies? 1+21 A: Bill Hobbs and -- t,al 0: Who did he work with? ( al A: He was head of the tobacco company. 1151 0: When you say "tobacco company," you mean RJ. [ sl Reynolds --- lirl A: Tobacco Company. pel Q: -Tobacco Company. us; Anyone else? Rol A: That's all I can remember at this time. (211 0: Now, do you remember a woman named Mary fnl Covington? rnl A: She worked for Philip Morris. (z<I Q: Was she also from time to time working with ICOSI (zsl or the SAWI; do you recall? C. DENNIS DURDEN Vol. 1, December 17, 1998 _Page26_,- (,) A: She must have because I carne in contact with her. (21 1 remember the name, t31 0: Do you recall a consultant named George Burman? 141 A: George Burman. I don't think I do, except whenyou Is) say that, I think Philip Morris. But I don't - I (cl can't go any farther than that. trl 0: We have obtained some documents,and I'm goingto (s) take kind of a little bit of a break and have the rol court reporter mark these documents.Then I'm (+ol going to show them to you and ask you sonle tnl questions about it. hz) A: All right. (+sl Q: If you feel like you need to read the entire (141 document in order to answer any particular I sl question, please feel free to do that, although ps) I'm going to focus pretty much on a given (,rl sentence and ask you some questions about it. ual Okay? 1191 A: Okay. laol MR. WITHEY: Why don't we just take a tzil brief break. It won't take long. Cnl (Brief recess taken.) 123] (Exhibit Nos. I- 11 marked (xnl for identification.) tisl MR. WITHEY: If I could ask the witness to Page 27 hl have Exhibit No. 1 in front of him while I ask t~ him this question. (31 Q: Let me represent to you, sir, that this was a 1<t document that was obtained in discovery in this Isl and other cases related to the ICOSI, SAWI; RJ. (sl Reynolds, Philip Morris - there's a number of tn organizations that we'll talk about that were (al involved in the effort -- and they have a Bates (sl number at the bottom that indicates that they nol were produced in discovery in one or more cases. (nl A: What's a "Bates" number? t+al Q:A"Bates"numberisthenameofaguythatinvented lial this system of numbering where you stamp each (+<I document by each page, and,for better or for I sl worse, the Bates system is being used in tobacco hsl litigation in order to be able to track documents ( 21 in discovery. lial This document is a document that has •- at (+91 least by my reading, and correct rne if 1'm wrong [zol - set forth some of the basic reasons and tztl objectives of the ICOSI org,anization, and it was tzzl dated inApril of 1979. rzal First of all, were you still involved, as (zal far as you can recall, in either ICOSI or the 1251 SAWP in April of 1979? ~ F.a ~ F., N V) Seattle I)eposition Iteportcrs 622-6661 Min-U-Scripto (9) Page 24 - Page 27
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C. DENNlS DURDEN Vol. 1, December 17, 1998 F'age 52 I+I May 10,1978. Izl A: Oh, yeah, here's some namcs. pl Q: Yes.You've recalled sonte of thcm, Mr. Hind, lel Mr.Witt. (s) A: Yes. [sl Q: The subject is "inmtediacy of the Social Cost (n Issue" -- do you see that there? Is) A: Yes. tel Q: -- and it attaches a Wail Street Journal article nm for your benefit, because it's referred to in pil your memo. I+zl A: Yes. pal 0: First of all, who were the people you sent this [ial mcmo to, sir? If you recall their job title or [151 what they do. [161 A: Yeah, Jim Peterson was the president -- or no, he I+n «as an executive vice president of Industries. I (tel forgot. He was one of them. But I think he had t,91 oversight overTobacco. ael Q:Okay. 1211 A: Ron Sustana was the head of PR. CharlieT'ucker tnl was the - when was this date? '78. He worked ml at the tobacco company, and he later became their rrel director of public affairs.Jim Hind, as I said, Rsl way my liaison. RI Page 53 0: To the tobacco company? A: To the tobacco company. He worked for the NW LABORERS v. PI3II"IP MOIZWS Page 54 (q man, and Bill Brier, I can't remember. (zl Q: When you say "(w/c)," what does that mean? pl A: I think it mcans "without copy." Ial Q: Now, the first sentence of this document seems to [sl indicate that things were heating up pretty [sl quickly - m A: Exactly. [al 0: - and you wanted to bring to these individuals' lsl attention the social-cost issue as we've [m] previously described it, correct? [nl A: That's right. [+at Q: And there had been a previous memo apparently to pal MrTucker.I assume, was that just a memo [+<I describing the social costs -- t,sl A: I have no recollection, 1,81 0: Now, you recommended they read the Wall Street nr1 Journal article, and I wanted to direct your [iel attention to this statemcnt: "Thus, the article Ital underscores the fact...". Wl Why don't you read that, "Thus, the p,l article underscores the fact that..." - !nl A: - "...business is indeed 'ripe' for t23l health maintenance and prevention programs-the P<I kind that could eventually lead to anti-smoking tzsl efforts." Pago 55 pl 0: Why would that bc of concern to you? [zl A: Because we were under attack, and we had no Fal position on social costs, social -- we had no kI position, Isl Q: Even by 1978 there was no position? tsl A: No, there was no position.T'hat's what SAWP was pl tobacco contpany. Max Crohn was a lawyer and Sam lal Witt was a lawyer. [sl 0: And then you also sent copies of this document to [sl five individuals listed down at the bottom. m A: Yes. tn all about. 181 Q: Whowerethosepeople,whoclidtheyworkfor,and [sl Q: Now, when was SAWP created? Isl what were their tides? lsl A: '77. [~el A: Paul Sticht was my boss. hol 0: When you say you had no position, you mean you [t~l [~~I Q: At RJR? A: At RJR Industries. [nl hadn't developed the materials that were needed [+al to counter this effort, the anti-smoking effort? h31 Q: Was this an IZIR Industries document or an IZJR [ul A: As nearly as I can remember, we hadn't even I1•I document? I sl A: This is a R J. Reynolds - this is an Industries [,sl document, I never wrote onTobacco. t,n 0: Go ahead. What was his position, Mr. Sticht, at [i81 that time? Other than your boss. [isl A: I guess he was COO. F2oI 0: Chief operating officer? jxil A: Yeah, chief operating officer, zzl Q: All right, ml [14] finished the analysis of what all this meant. I+sl Q: Well, was it your sense that business being hsl "'ripe' for health maintenance and prevention t,n programs" was a good thing or a bad thing? hsl A: It was a thing that could lead - as I say (191 here, "could eventually lead to anti-smoking tpl efforts." [z,l 0: What kind of anti-smoking efforts would a health- tnl maintenance program lead to? A: And T'y Wilson, in '78, maybe he had taken over 123] A: I think that they would say,You can be healthy nal ;international tobacco then. Bill Hobbs was head tz<I or fitter, live better lives, if you don't smoke. tzsl of domestic tobacco, BynumT'udor was our employee Psl 0: And isn't that a good thing, that people don't - - --- --------- I>age 52 • Page 55 (16) Min-U-Scripft Seattle Deposition Reporters 622-6661
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N W LAI4ORI:NS v. PFIILIP MORRIS Pago 40 [t7 A: Reading this scntcncc now? t21 0: Yes -- did you understand, at least, there was t31 the argument that there was a relationship [al between the financial costs of inedical care and Isl trying to induce the tobacco industry to develop (67 safer cigarettes? m MR. HOWARD: Objection; vague as to time (e) framc. (9) You can answer after I give my objection, hoi but I just have to get the grounds on the record. (nl THE WITNESS: Oh, right. hzl MR. HOWARD: Objection;vague as to time (+s) frame as to the understanding counsel is speaking (q of. [1sl MR. WITHEY: In light of the objection, psl I'll withdraw the question. p>I 0: Let me direct your attention to the last lial paragraph of this section. Itel A: (Witness reviewing document.) (zol 0: Why don't you read that into the record,the top tz+l of page 2. [nl A: "U1tim3tely, the goal of public policy proposals (rsl represented to this issue are to reduce n41 healthcare costs by reducing smoking incidence tzsl tluough sontc combination of increased taxation, Page 41 tn reduced cigarette advertising and more health Iz) education; to end the subsidy of smoking and its p health costs by the nonsmoking public; and to [41 induce the development of safer cigarettes." Isl Q: And did you understand that one of the purposes (d of the Social Acceprability Working Party was to pl try to develop a program so that that goal that (a) you just referred to was not accomplished? Isi A: Not on my watch. [,ol Q: Well, let me ask you this:\17as it the goal of (11I Reynolds's work and the SocialAcceptability I+zl Working Party to ensure that the goals of the 1131 part of the society that was raising these (,4 arguments would be fulfilled, that you agreed [,sl with them and thought,Yes, that's a good idea, hel let's shift the burden back onto the tobacco pn industry for paying for these medical costs? pel MR. HOWARD: Objection to form, ( sl A: Iv'o.The goal of the SocialAcceptabilityWorking tzol Party, when I was working with it, was to define (z l the issue. Beyond that, I don't really know what rnl happened. I would be informed from time to time. rnl I would get a piece of paper. Iz+t But during my watch, this is what we were ns) to do, was to define the issue and get all of w C. DENNIS DURDEN VoL 1, December 17, 1998 Page 42 p I+I these people to agrce, from the various (zl companies, that this was the issue. [3I Q: Well, wasn't it also to engage in countermeasures t4] to try to protect the industry from the efforts Is) to impose these social costs upon it? 161 A: That may have been an ICOSI -. PI Q: May have been or was? (el A: I don't know.I think it was, for ICOSI, but 1 rol don't think it was the Social Acceptability - I [iol just don't remember it being in the Social [i+l Acceptability charter. (12) Q: Wasn't there a subcommittee of the SAWP called 1+31 "countermeasures," a subcommittee? (tal A: There was a countermeasures group. I don't know hsl whether it was our subcommittee or not. (tsl Q: But the purpose of the countermeasures - and (ir) we'll talk about that with some other documents, (ts) - was to bring about an attack on the [+el social-cost issue, and particularly those that [zol were advocating that this cost should be shifted a+l back onto the tobacco industry? ml MR. HOWARD: Objection as to form. tzal A: It was to address the issue. (z4[ Q: Now, what has been marked as Exhibit No. 3 is (zsl another document that bears your name. Page 43 (+I A: Yes. (z) Q: This again is a document produced 'u) discovery. t31 It was about three days after the prior document, lal as I read the record, on January 9,1979, from [sl Mr. Narr to you - (6) A: Uh-huh. f1 0: - summarizing the "total, direct and indirect Isl costs attributed to smoking by researchers." (s) Do you see that, sir? [tol A: Yes. t++l Q: And as I understand it, in the prior document, (12) there was a distinction drawn within this group uam between "direct" costs and "indirect" costs; is that (14] correct? (tsl A: I don't recall that. ,., ui ,., (,sl 0: Well, let me just redirect your attenuon, just N I,n to refresh it - pal (+91 A: Yes. 0: - back to Exhibit No. 2 on the second page. ra w 0! [ml (z+) A: Okay. Q: Do you see where there's the "Key Concepts" of r2z[ "Direct Costs" and "Indirect Costs"? tnl A: Yes. tz<1 0: "Direct costs ... include expenditures for r,evention, detection, treatment, rehabilitation, Seattle Deposition lteporters 622-6661 Miin-U-Scriptra, (13) Page 40 - Page 43
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C. DENNIS DUItD);N VoL 1, Decentber 17, 7998 --~_Pago 76 I_ (1I Q: The third paragraphh on the third page, sir, m speaks to the issue of the supposed benefits of t31 smoking. Do you see that? [nl A: Uh-huh. (sl 0: He states, "...it would be interesting to see Isl whether there is research to support an argument m that smoking has some social, stress-reducing and (sl satisfaction benefits." Do you see that? rel (IDI (11I A: Uh-huh. Q: You have to answer audibly. A: Yes, I see that. (tz 0: You understood, however, on the prior paragraph I (,3) asked you to read, that Mr. Narr, at least at (i41 that point in time, is saying the "alle.ged" [+s] benefits and "(what are they, by the way?)." hsl MR. HOWARD: Objection to form; no ( > foundation, mischaracterizes the document. 0: He says that, correct? MR. HOWARD: Objection to form. A: I'm sorry, that's a bit 0: Yes. A: Walk me through that. 0: All right, I'll walk you through it. You see up there on the first parag aph A: Yes. Page 77 111 0: -- talking about the ".._ economic costs of (zl reducing disease and delaying death could pl well outweigh the alleged benefits (what are (41 they, by the tiay?)" NW LABORERS v. PIIQ.IP MO17ItIS 1,1 Costs/Social Values - I'rogress Report," March 17, la] 1980. pl Do you see that, sir? Do you have that in (41 front Uf yoU? Isl A: Yes, I see that, (el Q: Now, I want to direct your attention to chapter m III - what's called chapter III - which is on (al about the fifth page. Do you see that? tel A: (Witness reviewing document.) tol Q: Why don't you just read that over, just that „1 page and the beginning of the next page, and +21 then I have a couple questions for you on that. (131 (t41 (sl A: (Witness complies.) 0: Did you finish that? A: Yes. ~(+sl Q: You recall from Exhibit No. 2,1 think it was, p•r) the document that we discussed, the ICOSI +al document - (t91 A: Which document was that, now? (zo] Q: Exhibit No.2.I'll show it to you if you need 1211 it. Cnl A: No, I've got it herc in this stack somewhere. fz31 Exhibit No. I - (zal 0: I'm sorry, I beg your pardon. It's Exhibit [xsl No.4.It's this one here (indicating). Page 76 Page 79 [,1 Here, I'll show it to you.This is m Exhibit No.4, and I asked you son e questions tsl about the attack consisting of four major themes, (41 "Anti-smoking programs and groups arc harmful to (5) A: Yeah, (s) our society." [el Q: Do you see that? m A: Yes. [s] Pl A: Yes. 0: And I want to then direct your attention to this (6] 0: You understood, at least, that he wasn't sure ryl what they are;fair enough? hol MR. HOWARD: Object to the form. htl A: No, he was not sure what the benefits were. (sl next exhibit, which is Exhibit No. 8, referring (91 to draft reports in support of a chapter on "The (tol Character ofAnti-Smoking Organirarions." Do you p+l see that? - (~~I 0: All right. [»1 A: I was not sure.This was a position paper, as he (t21 (tal A: Yes. 0: Now, did you have an understanding at the time of (t41 said, based on'brief exposure to part of the (is) problem." hel Q: Was there - and I'm going back down to the third It41 w lisl or psl ho were some of the leading anti-smoking ganizations? A: No --- U1 (trl paragraph now - pn MR. KOETHE: Excuse me, ~ ,.,. [,s] A: Yeah,okay. [ +al THE WITNESS: Yes. (,el Q: -- in fact, research done to support an argument ( ,el MR. KOETHE: Before you answer, I'm going tzol that smoking has sonte alleged benefits our to ,. " , y t ml to - well, go ahead.You can answer. ~ tz+l knowledge? [ 2+1 n~ A: I didn't keep up with those organizations. ml A: I don't know.I don't know. I don't remember. [ n( Q: You knew, however, there were organizations in fz'I Q: Now, we're going to go to Exhibit No.8, sir. ( ral so ciety like theAmerican LungAssociation, R41 This is a document, again, produced in discovery [ z4] th e American Cancer Society, theAmerican Heart tzsl from RJ. Reynolds related to "Social zs] As sociation - even the Surgeon General - that --- - -------- I'age 76 - Page 79 (22) ` Min-Cl-ScriptcA Seattle Deposition lteporters T622-6667.
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1V W LA1suHL1tJ v. PTITI.Ih MORRIS F'age 8 I+I Q: Are you represented at this deposition? (21 A: I am. Counsel is to my left. [31 Q: But you are rrot represenccd by any of the lawyers IAI for the tobacco industry here; is that correct? Isl A: No, I'm not. (sl Q: Can you tell me what the content of that m discussion was yesterday. (s] MR. HOWARD: I raise art objection. My (al understanding was that that discussion was (ml pursuant to joint defense privilege with counsel (+t] for Mr. Durden. I+z] MR. KOETHE: I join in that objection for (1al RJ.Reyrtolds. (14) MR. WITHEY: Joint defense privilege with [+s] counsel for Mr. Durden? ( sl MR. HOWARD: Yes. 1171 Q: T'o your knowledge, are you a defendant in this (,el case? [+9] A: I didn't think I was a dcfendant. (ao] 0: 1 didn't either. (zi] You can answer the question. Cnl MR. HOWARD: I will instruct him not to. t4l If you want to go to the court to get a ruling p<] on that, that's fine. tzsl MR. WITHEY: Well, first of all, if his Pago 9 Iq counsel instructs him not to answer, that's one (x; thing.A tobacco industry lawyer cannot instruct loI the witness not to answer unless he represents 1<I hirn.Are you representing that you represent lsl Mr. Durden? (sl MR. HOWARD: No, I'tn representing that I t0 represent Philip Morris, but it's a Philip tal Morris privilege, as well. (s] Q: You can answer the question, sir. hol MR. HOWARD: No, I instruct him not to. (+a MR. WITHEY: Mr. Bush? psl MR. BUSH: You want me to answer the psl question? pel MR. WITHEY: No. (psl MR. BUSH: All right. (161 MR. WITHEY: I want you to instruct the url witness as to whether he should answer the nel question or not. I don't believe there's any (+sl basis on the record for instructing a witness not reo) to answer a question unless the it is pursuant to [zil attorney/client privilege, which I don't believe Cni exists between this witness and any lawyer (nl representing the tobacco industry. tzal Q: 1,fr. Durden, you are represented by your counsel Izsl here rather than by lawyers for the tobacco C. DENNIS DURD$N VoL 1, December 17, 1998 Pago10c, (i] industry; is that correct? ]z] A: Yes. 131 MR. WITHEY: So I need to know from you [<1 whether you are instructing hun not to answer, sir. [s] MR. BUSH: I'm not taking a ny position on " Is] it right now. m MR. WITHEY: All right. le] Q: Mr. Durden, a lawyer fo r the tobacco industry (9) has instructed you not to ans wer.That's not (lo] your attorney, obviously, and, therefore, it's [++I your decision, since your cou nsel is not giving (t2] an indication whether you w ould answer the (+3] question or not. p<( So I'm asking you whethe r you will tell ps] us,then,the general subject m atters of your (+s] discussion yesterday. (trl A: Oh, well -. (is] 0: Are you willing to do th at? 1191 A: Sure I am. Izo] Q: Fine. Can you tell me so, sir. [at] MR. BUSH: Just a minute. Le t me just tn] state for the record the follow ing:This man is W] kind of caught in the middle i n this disagreement (z<] between your set of clients an d the defendants in (zs] this lawsuit, and he is appeari ng today pursuant Page 11 (+] to your request. m I, to be perfectly honest wi th you, have no t3] idea what the joint defense pri vilege agreements are, (al I have zero idea about this law suit, and we're kind (s] of caught in the middle. (6) MR. WITHEY: You are. pl MR. BUSH: What I would like to do, if you . (el don't mind, is just have a couple minutes to , (s] confer with other counsel here outside your r+o] presence, and come to a better understanding on this (it] issue, and then we'll make a decision. (121 MR. WITHEY: That's fine. Let me just ask . (ts1 a couple other questions that may aid your [+dl discussion with him - if that's okay - I+s] MR. BUSH: That's fine. (ts] MR. WITHEY: - that won't invade the p7] alleged asserted joint defense privilege. (,al Q: Mr. Durden, have you been shown any documents in [1e1 preparation for your deposition today? rml A: No. rzq 0: Have you reviewed any depositions that have been Iz2] taken in this case? r4] P<1 fa61 A: No, Q: You did reviewthe subpoena duces tecum, correct? A: I reviewed the subpoena that I got from Seattle Deposition Reporters 622-6661 Min-U-Scripto (5) Page 8 - Page 11
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lvw LAUUKYfW V. PFIaIP MORRIS Page 80 (1) were advancing positions and summarizing the [zl research about smoking and health, correct? pl A: That's right. (nl 0: Did you understand, then, that there was an (sl effort by ICOSI and by the Social Acceptability (sl Working Party to anal)rce the character of those m anti-smoking organizations? tel MR. HOWARD: Object to the form. pj A: No, I don't recall that. ho) 0: Does this document refresh your recollection? t, I A: It does not. It does not, It just doesn't seem (12] to fit. (ial Q: It doesn't ring a bell to you? pal A: Doesn't ring a bell. (tsl 0: Can you think of any reason in the world why (+sl ICOSI Or SAWP wotdd want to keep track of p7l anti•smoking organi'rations? I,al MR. KOETHE: Object to the form; calls for (,el speculation. rl Q: Go ahead. (xtl A: I think you want to keep track of what their rnl positions are because they are raising the issue. 1231 They are one of the voices raising the issue. (2+1 0: Do you think it would be proper or improper for tzsl those organizations, ICOSI or the SAWP, to try to Page Bt I+I find out about the motivations of the leadership 121 of the anti-smoking organiz9tions,their hI relationships with their supporters,their wl membership, their patterns of development, that (s) kind of inforniation? (sl MR. KOETHE: Object to the form, m A: I don't know. (a) 0: DidyourecallanindividualnamedAaronWolbowski (el (phonetic)? po A: No. ntl Q: Would you believe,as you sit here today, that (t21 the idea of the tobacco industryorganir.ingan (131 effort to try to find out about the insights of (141 the leadership and their motivations might run (,sl into sonte public-relations issues if it was (,sl discovered? hrl MR. HOWARD: Object to the form. hel A: I really don't know. hsl Q: What were you doing for Reynolds in 1980, sir? Izol A: I was serving as the vice president of public nq affairs. Inl 0: As the vice president of public affairs, if a n3l document like this that you've just read was made Izrl public, do you believe it might cause public- nsl affairs or public-relations concerns by Reynolds? C. DENNIS DURDEN Vol. 1, December 1.7, 1998 Page 82 K (,) MR. HOWARD: Objection to form; calls for tzl speculation. (3) A: I don't know. lal MR. BUSH: Are you talking about if it had isl been made available when it was written? (sl MR. WITHEY: Yes.Thank you. m A: I don't know. (a) 0: You don't think that Reynolds might have some tsl sticky public-relations problems if this document nol indicating that the organization ICOSI that (+u Reynolds was a part of was drafting reports on 121 the political culture of anti-smoking groups and (tal trying to find out about the insights of their (14) leadership and motivation? You don't think that (tsl would have caused any problem at all for hcl Reynolds? I+rl A: I don't know. (,e) MR. KOETHE: Objection to form. (rysl A: I don't know. (sol 0: Do you recall the Fourth World Congress on m1 Smoking and Health that was taking place around tza this time in Stockholm, Sweden? t2sl A: I don't recall that. a<I 0: Do you recall getting any documents, reports on tzs] the conference that various people wrotc to alert Page 83 I ttl you at Reynolds or SAWP about what was being said tzl at that conference? pl A: I don't have any recollection of that. (al 0: Did you attend meetings of the SAWP or ICOSI Isl abroad? (s) A: Yes. pl Q: Did you attend meetings in Brussels? (el A: I don't remember Brussels. (91 Q: Ilow about London? ryol A: Yes, - (nl 0: Do you recall any other locations that you (t21 attended meetings of this working party? (tsl A: I went to London and made a report at Leeds (tq Castle, I think it was. I made a report in (tsl Lausanne, Switzerland, I think, and I think I I+sl made a report somewhere - or had a meeting in (+n Hamburg. It seems like there were more than ryel that. Itsl Q: I'm sure there were. In fact, we have some tzol documents that might refresh your recollection on n+l a numher of them, but let's just go back to rg Exhibit No.1. tzal A: (Witness eomplies.)Yes. tzal Q: On page 2 of Exhibit No. I there's a brief (zsl history to date of the main meetings that Seattle Deposition Reporters 622-6661 1Kirt-U-Script@ (23) Page 80 - Page 83
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C. DENNIS DURDHN Vol. 1, December 17, 1998 NW LABORERS v. PHII.IP MORRIS Page 20 Page 22 I+I governmenta6affairs area. [+] 0: So as I understand your testimony - correct me 121 Q: How so? (31 A: I just wasn't managing wcll. (<I 0: What was your job in the governmental affairs rzl if I'm wrong -- around the early '80s you came to lal believe that smoking was associated with serious lal diseases, correct? [sl area that you were doing? [sl A: I was head of the - one aspect of public affairs [sl A: Yes. Isl 0: And prior to that time you did not have that m was governmental affairs. m opinion, correct? lel 0: Now, have you ever smoked in your life, sir? [91 A: Yes. MR. KOETHE: Object to the form. fBl 191 A: I don't think I said that. pal 0: Do you still smoke? hil A: No. I:zl 0: When did you start smoking? How old were you? Itol 0: Well, then I'm trying to find out. I q A: Yes. (121 Q: If you started believing in the early'80s that [+sl A: I was in graduate school. I smoked a pipe, [+<1 Q: Have you ever smoked cigarettes? lisl A: I did smoke cigarettes also. I+a) smoking was associated with serious diseases, p<I prior to that time I assume you didn't think (151 that. hsl 0: How long did you smoke cigarettes for? nsl A: No, it was a growing awareness. I don't - lt7l A: Oh, four, five years. [17) I can't really pick a time when the light [ial 0: What years were those? l s] A: That would be about, oh - well, it was off and l,el dawned. 1191 Q: But the light dawned at some point in time, tml on, but I last smoked cigarettes in the early pol correct? R+1 '80s. 1211 A: Yeah - yes. fnl Q: When did you first smoke cigarettes on a [zz Q: And it was probably around the early'80s? Pl continuous basis? [?nl A: I didn't ever smoke on a continuous basis - [2al A: I would think that, yes. Iz<I 0: So I assume, then, in the 1960s and the 1970s you asl smoke cigarettes on a continuous basis. -------- -------- zsl did not have the belief that smoking was Page 21 Iq 0: When you smoked on and off for four orfive [zl years, on a daily basis how many cigarettes did Page 23 [+I associated with serious diseases.ls that your nl testimony? lal you smoke? 131 A: Yes. Inl A: Probably five or six. IsI Q: And at the beginning of those four or five years, [al Q: Do you believe that smoking is addictive? (s) MR. KOETHE: Object to the form; lack of ts did you believe that smoking caused lung cancer tn or could contribute to heart disease or pulmonary lal diseases? lsl MR. HOWARD: Objection; no foundation. l ol But go ahead. h,I THE WITNESS: I don't understand what n21 happened. 1131 MR. HOWARD: I just made an objection for I+<I the record.You can answer. Itsl MR. BUSH: You may answer his question. [,sl Please do so. pn A: No, I didn't think so much of lung cancer, but I hel had grown up with the folklore that smoking was I+sl not good for you. t2o1 tater on, as evidence came out and as I tz l read, I think I did get a feeling that, yes, txzj smoking was associated with diseasr.s, serious rzil diseases. Ix<I ;, 0: When was that, sir? 17s1 A: Oh, probably in the early '80s. [61 foundation. m You can answer. le] A: I don't think -- smoking was not addictive in my tel case.I found it relatively easy to stop. I 110) just stopped. But that is really the extent. (ci) I'm not certain how I feel about that, p21 0: Well, at the time you worked for Is<IR Industries, (131 did you believe that smoking and the nicotine in [+a1 cigarettes was addictive? [isl [+el A: No, I did not. Q: Did anybody at RJR Reynolds or any of their tn lvl associated companies ever express to you their ~ pal belief that smoking cigarettes and the nicotine ~ hsl in cigarettes was addictive? Ixol A: I don't recall anyone ever doing that. ,.. N P+l 0: Have you reviewed any internal documents of W Izzl RJ. Reynolds since you've left the company? (zal A: No. Izal Q: Do you know an individual named David Narr, I2s1 N-a-rr? Pagc 20 - Pagc 23 (8) Min-U-Scriptint Seattle Deposition Reporters 622-6661
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C. DENNIS DURDEN VoL 1, December 17,1998 EXHIBIT INDEX- (Conrd) 121 13] EXHIBRS FOR IDEMIF ICAT ION; 141 Number Pago IS) Isl 11 - SAWP Counlermeasures Developmonl Subcommfllee Proposal Agenda 26 12 • DocunwnlEnlnled,'PanI-shon pJ (el Review of SAWP's Major ActNtlios - Dennis Durden' 105 13 - Meeting Minutes • 131h Meeting of ryl ICOSVSAWP, Brussels, October 23-24, 1979 12s (101 14 • Third Rcport by Working Par1y on Social (11) Acceplabildy ul Smoking lo ICOSI 129 (t2) 15 - RJRT Posillon Paper •'Social Costs of Smuking' 142 113] 16 • Memo, Becky to Mi. CT, Dated 8/7 147 (141 17 - t.etler, Covington to Durdon, 6/dOR8 153 119 Iel I> 18 • Memo, Durden to Marcotuliio, 11l13JB4 1Sd I (Iel NW LABORERS v. PITI7-TP MORRIS 1251 A: I was served. Page 6 (1) A: Yes. ta] 0: Just for the benefit of the court reporter, (al uh-huhs or nods of the head aren't favored, so if 141 you could verbally and orally answer the Is] question, it would be appreciated sir. Okay? (s) A: Oh, yes. (71 Q: I assume, therefore, if you answer the question, 181 you feel it's a question that is clear enough to Isl respond to. Fair enough? 11o] A: Yes. n I) Q: And you understand that you are under oath, that 112) the court reporter is taking down everything we ual say, and that this is a deposition that may be (141 used in a court of law some day? 11s1 A: I understand. hs] Q: And for that reason, it's important to be as In) truthful and accurate as you can in answering (1a1 questions. Ilsl A: (Witness nods head.) (zo7 Q: Is that correct? req A: Yes. (nl 0: Were you served with a subpoena duces tecum, or rnl subpoena, requiring you to review your records to (241 see if you had any responsive documents? Page 4 Page 7 pl 0: Whenyousawtheattachmenttothesubpoenaduces 121 tecum, were you able to locate any documents that tal were responsive? Pago 5 IlI SE.aTTLE,WASHINGTON;THUIZ.SDAY,DECEi4fI3ER17,I998 t2] 9:00A.M. t31 141 C. DENNIS DURDEN, deponent herein, having been )sl first duly sworn on oath, was Isl examined and testified as m follows: (BI t91 EXAMINATION pol BY MR. WITHEY: un Q: Could you state your name and give your address (,21 for fhe record, sir. (ul A: Charles Dennis Durden - I go by the name of (+q Dennis Durden - Y.O.I3ox 167, langley, Its) Washington,98260. hs] Q: Mr. Durden, my name is Mike Widrey.I represent 1+> the plaintiffs in this case, and I have sonte he] questions for you today. ( 91 If you don't understand any particular apl question, or feel it is too vague or unclear to ml answer, would you please ask me to rephrase the Irtl question? ml A: (Witness nods head.) 1241 ' 0: You are going to have to answer that with a ' rzsl verbal response. (41 I51 (6) A: No, I was not able to locate any documents. Q: Did you conduct any search of your documents? A: I don't have that many documents, but I did m search the ones I have. (s) 0: Where are those located? ryl A: They are located in my garage. (1ol Q: And were these documents from the years you II+I worked at RJ.Reynolds? 112] A: No,IhavenodocumentsfromtheyearsIworkedat I+31 RJ. Reynolds except my employment contracts. 1141 0: Have you had the opportunity to meet with or (1s) discuss your subpoena with any attorneys for the (1s) tobacco industry? I7> cn A: Yes, I have. )ia] Q: Who are they? (191 A: They are in the room. tn Izol Q: And when did you have this discussion or meeting? o, r.., r~11 A: Yesterday. n+ a> Rzl 0: And how long did it last? PI A: About an hour and a half. (2c1 0: Was it in this location? rzsl A: Right here (indicating). Page 4- Page 7 (4) Min-U-Script@ Seattle Deposition Reporters 622-6661
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i\ W l.rfriVllL'KJ V. PIIILIly MORRIS Pago 56 [+I smoke if their lives are healthier and better? RI Wouldn't that be a good thing for the company? lal MR. HOWARD: Object to the form. (al Q: Goahead. Isl A: If people didn't smoke, wouldn't that be a good Is) thing for the - well, in the first place, we rq don't knee if people really would be better and (s) healthy.rlgain, it was being alleged, but to my [st knowledge we didn't have the studies out there, liol But the fact that we didn't have a position when un other businesses were saying this was what we hzl were trying to raise the flag about. [ia7 0: Then it goes on to say - the next sentence - u<I "Besides the reference to Mobil's program, I..." (is) - why don't you read that. 1161 A: ".,.I also was particularly interested in the (m reference of the 'double stake'that unions have ha) in reducing health costs.This is the first [,sl time I've seen it spelled out so clearly, and it tzol could be a harbinger of things to come." 1211 Q: Now, the "double stake" is something that was [ul referred to in the Wall Strect Journal article; R31 is that correct? tz+l A: I think so. I'll have to read it and see. tzsl Q: Well, let me point your attention to it. Page 57 (,) A: Okay. Izl 0: If I could show you on the exhibit, it's in the hI far right column under "liigh Priority from GM." 1+1 A: Yes, okay. Isl Q: Do you see where it says 'A recent survey..."? [sl A: "A recent survey...' - _. rn Q: Why don't you read that out loud. tel A: "A recent survey by the Ptesident's Council on lal Wage and Price Stability described 126 medical- hol cost-control programs organl.zed by employers or I+iI unions, half of them set up since 1973.The psl unions have at least a double stake:When 1131 companies' medical costs rise,this means firms p<I have less money for wage increases;also union psl members' monthly contributions to medical usl coverage may rise right along with the [in companies'prenuums.' uai Q: And so what you were,as I understand it, calling hsl attention to was at least this survey described 12ot in the Wall Strect Journal about these 126 tzil medical-cost programs involving employers and [nl unions seemed to demonstrate or demonstrated that tni the unions have a "double stake" in the issue of (z4l who pays for medical costs, correct? (zsl A: Correct. C. DENNIS DLJRDEN Vol. 1, Decembcx 17, 1998 Page 58 „ [q Q: And you wanted the people who received this hI letter to know that because it could be a pI "harbinger of things to come," that is, more (4) employers and employees might decided to engage [sl in those kinds of cost-saving programs, correct? [sl A: That's right - that's right. tn 0: And that would include the potential, at least, [el that as the issue became known that smoking was [sl causing sonie, or arguably some, of the healthcare (io) costs, that the employers and unions might take Ittl sonie steps to make sure those costs aren't borne [+zl by them, but rather are either lessened or borne I+al by the industry; fair enough? pel MR. HOWARD: Objection to form. [,sl A: No, I don't think that was what I had in mind [+sl here.What I had in mind here was that if we n'n looked at what was happening, we could see uel incentives for companies who, using data like (+e) this, would say, Other companies are putting in Izol anti-smoking programs, why shouldn't we? [z+l Q: But this also related to the whole social-cost tpl issue, as we've defined it earlier, correct? [rel That's what you say, the "immediacy of the aal social cost issue" - [2s7 A: Yeah. [+I Q: And the "social-cost issue," again, is - well, Pago 59 tzl we've already defined it. Isl Then you say, "All in all ..." -- we11, go [al ahead and read the next sentence, sir, "the (5) article." (sl A: "All in all, the article confirms what we've m suspected and suggests to me some essential [sl avenues of follow•through by us and/or other [s) industry. I hope we'll get a chance to discuss [tol these soon." n tl Q: So you were targeting the idea,We need some [+at program, we need some materials, we need sonte 1+31 response to this; fair enough? 1141 A: We need a position on the issue.It may be usl that there's nothing that we could do.That's (,s) one of the things that comes out of an issue ~ nn study. a ,.., [ie] Q: All right.You understood that in the Wall t+al Street Journal article, they were talking about ks) a, ,-. rlol employer/employee medical-cost-control programs. w ~ tz,l A: I understood that. tnl Q: Is it fair to say that you had the understanding [ral that the employer/employee medical plans were at taal least a part of the private medical-insurance Izsl industry? Correct? Seattle Deposition Iteporters 622-6661 Min-U-Scnipft (17) Page 56 - Page 59
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IV W LAISVlU;1CJ V. PIfII'P MORRIS Page 1 s I+I 0; What year? tz7 A: 1951. tol Q: And where did you go to work after going to lal eollege? Isl A: I went to graduate school. [el 0: Where was that? [7l A: University of Washington. fel Q: What years? (sl A: I took my MA. in '53 and my Ph.D. in '55. ;iol Q: What did you get your M.A, and Ph.D. in? (11] A: Geography. (+z) 0: Did you work as a geographer after that? p31 A: I worked as a location consultant, locating 1141 shopping facilities. usl Q: What companies or entities did you work for after [+sl you got your I'h.D.? t+n A: I worked for a company a41ed Larry Smith & pal Company. (,sl 0: What years? Rol A: I worked for Smith & Company from '55 to '59. Rv Q: Then what did you do? enl A: Then I took a year and went to Baltimore, and I [zal was deputy director of the Charles Center 124] Project,cvhich was an urban-renewal project. tzsl Q: Then what did you do? Pago 17 IU A: ThenIwentbackandtivorkedforSmith&Company. 121 Q: For how long? la t21 pl A: Until '62,And then in '62 I went and worked for [31 kI the Downtown Development Committee of Cincinnati. f<I Q: For how long? A: Till '67. Q: Then what did you do? A: T'hen I worked for Federated Departntent Stores I91 fronl '67 to '75. hol 0: Then what did you do? f+ll (121 [13/ A: Then I went to work for R J. Reynolds Industries. Q: How long did you work for RJ. Reynolds? A: I worked for RJ. Reynolds from 1975 till I was t,al retired out in 1989 - the company was bought - t sl and I was put into the termination of my nel contract, and then I retired - formally retired, (r) in'62---'92;'92whenIcvas62, (ie Q: And can you tell me what jobs you held at RJ. hsl Reynolds. Rol A: Yeah.When I first went, I was director of tzi[ public affairs, and then t221 Q: And if you could give the years, I would tzal appreciate it, if you can remember. nel A: '75 to '77, and then in '77. Rsl MR. KOETHE: Excuse me, Mr. Durden, can C. DENNIS DURDEN VoL 1, December 17, 1998 [,1 you just clarify for the record --- I guess I'ni tzl imposing a somewhat dclayed objection to the 13] question in terms of who precisely your employer tat was during those yeais.I think the question [s] said RJ. Reynolds, and I just want to make sure al that the record is clear. m THE WITNESS: I said RJ. Reynolds (el Industries. [el MR. WITHEY: And I'm going to ask counsel [io[ not to interrupt a question.You can object to I++1 it beforchand, you can move to strike afterwards. (+al The rules only allow objections to the form of (131 the question and do not allow coaching or ual correcting of the witness. (is) Q: But you may continue, sir. (+s) A: And then in '77, I think it was, I was made vice [:>) president of public affairs, and I served in that ual till '81 or '82, when I was demoted back down to (,sl being director of public policy studies. Rol Then in '85 or '86, I was re-created a t2 l vice president and personal assistant to the CF,O, rg and then I think it was in '86 -- no, it was in p) '87, I was made a senior vice president. tz<I 0: At all times - tzsl A: And by then it was ItJR Nabisco, _Page18 Page 19 0: What is $JR Industries? What do they do? A: They were the holding company. 0: For what? A: ForTobacco-forRJ.ReynoldsTobaccoCompany, tsl for R J. Reynolds Food, for Sea-Land, and for a (6) companycalledArcher,whichwasanalunumtm-foil m fabricator/packaging company. [al Q: Well, at the time you worked for $IR Industries, 19] did you work on anything other than tobacco tiol issues? n+l A:Oh,yeah. hzl 0: Could you estimate what percentage of your time (+31 you worked on tobacco issues as opposed to Food, [+al Sea-Land - Sea-Land is a shipping-container I+sl corporation? f+e] A: Right. Q: - orArcher, the aluminum-foil fabricator. w [+el A: It varied over time. I really couldn't give you ~ [t9) a meaningful estimate of it, because -- as tile Rol tobacco company would get ataffed up, but, over . N ~ . R l time, I spent relatively less time with the Inl tobacco company and relatively more time on ta31 matters for Industries itself. [z<] Q: What were the circumstances of your demotion? [zsl A: I really wasn't doing a good job in the Seattle Deposition Reporters 622-6661 Min-U-Sc7ript® (7) page 16 - rage i9
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Lawyer's Notes
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C. DENNIS DURDEN NW LABORERS v. Vol. 1, December 17, 1998 PHILIP MORRIS Page 60 MR. H0WARD: Objection to the form. t21 A: Say that again. t;l Q: Yes, it wasn't a very good question. (4] You had the understanding that there were [sl private in addition to public healthcare plans in [sl this country. PI A: That's right. 181 0: And you understood that at least a part of those (s) private healthcare plans were employer/employee t,ol healthcare plans, correct? Pago 62 [I] A: Uh-huh. [z] Q: You have to answer audibly, sir, ol A: Yes. [a) Q: Now, the Rusiness Week article you attach -- if Isl you could turn to that at the back page -- was lel from january 26th, and I assume that's 1982, m correct?At least according to your memo it is. (e] A: No, according to the bottom of the page - see, [sl down here it says, on the bottom, near 'Business Itol Week," see? [ ,1 (121 A: Employee/employer heahh• 0: Yes, of the kind described, that there were (11] n21 0: Okay. A: On the left, yeah. nal healthcare plans provided to people through 1+31 0: All right. Now, I want you to read out loud into nAl the - t+al the record the second paragraph, starting - hsl A: You mean like we had at Reynolds? (151 A: "The reason ..."? 1161 Inl Q:1suppose,yes. A: Yeah, I understood that there were public -- that hsl tt>) Q: Yes. A: "The reason is the impact of smoking on health. I el there were private health plans. I+el Q: Did you have a plan at Reynolds? {2al A: Yeah. ntl 0: And it was paid for by the company? tnl A: Yeah. ml Q: And that twas when you got sick, you went to the rz<I doctors and this medical plan paid for it, I tzsl assume, correct? Page 61 nl A: I went to the clinic.Thcy had their own clinic. 12] They had their own HMOq•pe thing.And that's pl what y'ou are talking about, right? kI Q: Ycs. tsl A:Okay. 161 0: And that kind is what I'm talking about. m A: Yeah. lel Q: When it's referred to about the "double stake" that tsl unions have, you understood that they were pol talking about a double st.-tke in the medical plan 1s+1 created pursuant to an agreement between the t+21 employers and the unions; is that correct? ttal MR, HOWARD: Objection to form. hal A: I don't think my knowledge and awareness went psl that -- quite that deep. t+sl Q: Well, do you understand that now, reading the (i> article, that that's what they were talking tisl about? (isl A: Yeah. Izol Q: Let me direct your attention to Exhibit No. 6. • Rl) A: (Witness reviewing document.) . Inl Q: This is another memo from you to some of the same rri people, Mr. Durden, dated February 10, 1982, 1241 regarding a social-cost piece in Business Week. (zsl Do you see that? nal Economists calculate that about 6% of total l+sl personal health expenditures are caused by tzol smoking-related illnesses, and the federal [2+] government picks up nearly 30% of this bill. [nl "Warner estimates that smoking cost the laal nation about $40 billion in 1980..." - is t2a1 that - nsl 0: Yes. Page 63 I+I A: - I'm having trouble reading it -"... of which (zl sonte $12 billion went directly for medical pl expenses and $28 billion represented productivity [<1 losses caused by worker illness and mortality." Isl Q: Thankk you. ts] Now, In your memo, them, you are calling m attention to this to these four individuals to Isl whotn it is addressed, correct? (e) A: Right. (,o[ Q: You have identified Mr.Tucker and Mr.Witt. Do (III you recall one Richard Marcotuilio, who worked [tzl with -- Itsl A: Yes,Richard Marcotullio worked forTobacco (,<I International. He was their head of public ps) affairs. 1161 Q: Did he also work from time to time for the Social pl Acceptability Working Party? t+81 A: I don't know. He cante after I ended my [+sl affiliation with it, so I don't know that. 1201 0: Do you know a Mr. E.- 12 1 A: -- Caglarcan. He worked on my staff, yes. t221 0: All right. Izal A: I think by this tinte he was probably working at (zal the tobacco company. (251 0: Now, the last sentence of the second paragraph I Page 60 - Page 63 (18) Min-U-Script,& Seattle Deposition Reporters 622-6661
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C. DENNIS DURDEN VoL 1, December 17, 1998 Pago 84 1+1 officers and representatives of the seven founder tzl companies attended.It's on page 2.'1'he first tl one listed is in Jtme of 1997 in Berkshire, 1<[ F.ngland. Isl A: Yes. (6) Q: Were you present? m A: I think I was, yes. lel Q: And then November'77 in Lausanne? tsl A: I seem to remember going there, yes. pol 0: AndyourentembertheHamburgmeetinginMarchof n+l '78. n21 A: Yes. t131 0: Did you go to the WinstonSalent meeting in August 114) of'78? psl A: If 1 was the host, I'm sure I went, yes. (16) Q: Then the Leeds Castle, you recall that, in [q September'78. [1e] A: Right. [1e1 Q: You went to that one, Izal How about the Antsterdam mceting in R1] Febntaryof'79y nzl A: I don't recall that, but I probably -- I just 141 don't recall. n<I Q: At these meetings there was discussion about the t2sl program of ICOSI and SAW?, correct? Pago 85 111 A: I don't know. I would make my report for the m SocialAcceptability Working Party, I w•ould take t3l questions, it was discussed -- the report of the 141 Social Acceptability Working Party was discussed, Isl and that was my role. Isl 0: Did you recail convening a conference of trade m associations that took place in Zurich, lal Switzerland, in May of 1979 related to the SAWP [sl social•acceptability issues? pol A: I don't recall that, but that was still probably li q within the frame or out to the edge of the frame [12i when I was still active. t13l Q: Turn to page 11 of Exhibit No.1, sir, and see if 11q this refreshes your recollection about this first 11s1 conference of trade associations. 11e1 A: (Witness complies.) 1171 MR. KOETHE: Ite's got the wrong exhibit. [iol Q: This one right here (indicating). [1s1 A: Oh, No. 1.Oh, Julian Doyle. I saw a name, rzol Q: He was the secretary general of ICOSI, correct? .[z l A: I don't think he was in ICOSI. Wasn't that - R2i didn't the name then - change then? tz31 Q: Well, on page 9 it says, 'The ICOSI Secrctary R41 General, Mr.Julian Doyle." Rs] A:Okay. NW LABOREItS v. PITII-lY MOItRTS Pago 86 111 Q: You recall that individual, correct? 121 A: I recall that - yes. He was an Australian, I 131 believe. f<I 0: At any rate, at the top of page 11, under "Future [=1 Plans," it refers to SAWP being "given the task 16] of organizing the first conference ofTrade m Associations." Do you see that? lel A: Uh-huh. 191 0: You have to answer audibly. nol A: Yes. 1111 Q: "Trade associations" referred to tobacco industry [121 trade associations, correct? (1s] A: Yeah -- yes. [141 0: And that would include organizations like the 11s1 Tobacco Institute or the Center forTobacco (1s[ Research, those kinds of organizations? pi MR. HOWARD: Objection to form. 1181 Q: Is that correct? [1s1 A: I think it would, yes.I just don't recall it [zol this well. Let me read some more here. ml (Tause in the proceedings.) tnl Q: Let me ask you to read, then, under "Future p3] Plans," page 11, No. 2, sir. [zal A: "WithinSAWPanewgrouphasbeenformedwiththe lzsl sole purpose of developing new countermeasures. Pago 87 1+1 Mr. RM. Corner of Philip Morris is the Project t21 Leader and this programme will be presented and [3I discussed at the Zurich Conference." [al Q: We had earlier referred to that countermeasures [sl group or subcommittee, Isl A: Right. rn (Bl 0: Did you know who Mr. Corner was? A: No.It doesn't ring a bell. [sl 0: But at least you understood that such a group was [101 forrned to engage in countermeasures, correct? (11) A: That was a pan of the SAWP mandate, yes. t+21 Now, this was about the time that I was [1al leaving SAWE I may have already Icft. 1141 Q: Let me turn your attention to Exhibit No.9. nsl This document is dated June 28,1977, it's an 11s] RJ. ReynoldsTobacco Company document,and I'm I+n going to ask you to read the first paragraph of 11BI this. [1e1 A: "The tobacco industry is faced with limited taol growth over the next five years and possibly no [r11 growth thereafter, based on some projecdons. rm This slower growth in good part is due to the Iza[ antismoking efforts of various groups in the [2<1 areas of social acceptability, restrictive 12s1 smoking, unfounded health concerns, taxation, Page 84 - Page 87 (24) Min-II•Scripft Seattle Deposition Reporters 622-666a.
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C. DENNIS ntnznr:N Vol. 1, December 37, 1998 NW z A>3ORE1ttS v. PHII.IP MORRIS Page 68 Pago 70 I+l Q: Well, wasn't SAWP a part of ICOSI? ( I on the first page, where it describes the first m A: We were a working party for them. tzl basic issuc, "One is ...". Go ahead, PI Q: For ICOSI? t31 A: Tell me again where you are looking. Inl A: Yes. tal Q: (Indicating.) Isl Q: And ICOSI was the umbrella organization and the Isl A: "There appear to be two issues affecting the (sl SAWP was a working party ttnder it. fa A: Working party tinder it. tel Q: So, as I understand it, then, if thc ultimate (el objective is to "preserve its ability to tio) profitably manufacture and sell cigarettes," you ptl at least had the understanding that efforts to 1121 impose social costs on the industry might affect (131 that ability to profitably manufacture and sell (,al cigarettes; fair enough? Its) A: Fair enough, ps) 0: Now, Mr. Narr points out to you that there are (irl two basic issues affecting the industry's ability (ia to achieve that objective, that objective being (191 to profit from the sale and manufacturer of lzol cigarettes. Rq MR. KOETHE: I'm going to object to the Inl question. If you've got a number of questions on tnl this document, I would like to have the witness (zq read the document. (zsl MR. WITHEY: I'nt just going to ask him the Page 69 lil next sentence and then I'll - tzl MR. KOETHE: It just seems like we're pl taking a four-page document and picking out a 1<i couple sentences here and there, and I think the (sl Ritness ought to read this document if you're (el going to -- t) Q: Mr. Durden, if you want to read the whole lal document,ask me.liecause counsel suggests you t9l read it doesn't moon you have to listen to him, (tol but if you want to read it, you just tell me, I'd t+ll rather rcad t h c whole thing, okay? It is up to lul you,okay? 1131 A: Well, let me read the whole thing, because I P4I didn't even remember David Narr, and I feel bad psl about that. (,el (Pause in the proceedings.) pn Q: The third paragraph of 1Sxhibit No.7 described hsl Mr. Narr's assessment to you about the two basic tial issues affecting the industry's ability to Wl achieve this objective described; is that -•Rq correct? . tnl A: That's what he says, yes --- as he says at the Cnl beginning --- "... based on brief exposure to part (z4l of the problem, here they are ..." --. • 1251 0: Now, why don't you read, in the third paragraph (s) Industry's ability to achieve this objective." m Q: And "this objective" is to preserve its ability to Isl profitably manufacture and sell cigarettes, (s) correct? I+ol A: That's what he says. (,I 0: What is the first one? I al A: "One is medical/scientific arguments linking (131 smoking to increased mortality and illness and (tal thus increasing direct and indirect costs of I+sl smoking to society as a whole." (,sl 0: Let me focus you on that. t+71 A: Okay. (tel 0: You were aware certainly by 1979 that there were (,sl articles in the medical literature, including the fzol Surgeon General's report, that said smoking [2t causes disease, correct? In) A: Uh•huh. IaI Q: Is that right? Pnl A: Yeah. Izsl 0: Have you ever read the 1964 Surgeon General's Page 71 I I report? tzl A: No, I never have. lal 0: Have you read any Surgeon General's report? 1<I A: No. tsl Q: Did you understand that the Surgeon General and Icl other leading medical societies and organizations C(l believe that not only does smoking cause (al mortality, death, and illness, but also that lel those illnesses cause those people to go in to (tol the doctor and to get medical treatment for those (t l illnesses? 1121 MR. KOETHE: Object to the form. hal A: Well, I knew that's what they were saying,yes. (ial 0: Did you have an understanding back then of what hsl diseases were mentioned by the Surgeon General as (161 being caused by smoking? n7l A: Oh,yes.Yes. Itel Q: What were the ones you had in mind? I+sl A: The ones that I remember were emphysema, lung (zol cancer, and I think heart disease. Rt1 Q: Serious illness; is that correct? Inl A:Oh,yeah. aal Q: In fact, causing people to die of those diseases, (z<I correct? tz61 A: People die of those diseases. Page 68 - Page 71 (20) Min-U-Scripio Seattle Deposition Reporters 622-6661
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C. DENNIS DURDEN Vol. 1, December 7,7, 7.998 Pago 100 (+1 Q: Well, would you agree that children the ages of t2l 12 to 17 may not have the maturity of judgment in la] order to make a choice about smoking or not? I<I A: Oh, I agree with that, and I think people even Is) older than that may not have the maturity. tel Q: Would you agree that it's intmor,tt to target m underage smokers in any kind of promotional or lel advertising materials by the tobacco companies? PI MR. HOWARD: Objection to the tetm pol "immoral." NW LABORERS v. Pif1ILIP MORRIS Pago 102 Ill allowing the nicotine to get into your blood tzl system faster? t31 MR. KOETHE: Object to the form. 14) 0: I'm asking if you are aware of it. [sl A: I think I've heard discussions of that, (s) 0: When did you hear discussions of that? pl A: When I was deposed by the Philip Morris lawyers. [sl They had a lawsuit against Reynolds, and I got Is] deposed in that. I would say it was in the '80s. no[ I don't know. n,l ual A: I don't deal in immoral, I'm sorry. Q: Well, just as a human being, do you believe it's hv 1121 Q: What was the subject matter of that deposition? A: Knowledge of a process. nal appropriate for the tobacco industry to target [+31 0: Do you know what the nature of the lawsuit was 1141 teenagers? Irl A: Of course not. nsl Q: And would you agree that because of the maybe I,n younger years of people under the age of I8,and t,el maybe some of them having lack of mature pel judgments about lifetime smoking, or smoking in [zol general, that it's important that they get as re+l much information as they can, and their parents, rezl in order to make that decision? Izsl A: I don't know if that's the way teenagers make Iz<I choices.You know, it could be peer pressure. I Izsl just don't know. Page 101 pl Q: Itut peer pressure -- tzl A: In an ideal world, the more information the h<1 between Philip Morris and Reynolds? nsl A: I don't know the exact nature. I just know that [,sl Philip Morris was suing Reynolds. url 0: Do you recall where the deposition took place? [,sl A: In Winston•Salem. 1,91 0: What position did you have with Reynolds at that nol time? [z,l A: I'm trying to think back to when it was. I just tz21 can't remember when it was. tzol 0: Do you recall any of the lawyers that were at the [2el deposition? psI A: No. Page 103 [a 0: Were you represented at the deposition with tzl attorneys for Reynolds? Cl better. Wl Q: And would you agree that it would be important if ral 1<1 A: Yes. Q: Did you give a full-day deposition, or was it [sl $JR had information about their product, Isl shorter or longer? [sl including that, for instance, it was addictive, n that information could be contained - Icl A: I don't recall. I think it was shorter. rn Q: Were there any questions that you were instructed tel [9i A: If it was addictive, yes. 0: And that information should be conveyed to the tel not to answer at that deposition, if you recall? (9] A: I don't recall that much about it, because I had I,ol customers; fair enough? t,al no knowledge of it, really, the issue. p l t+21 MR. KOETHE: Object to the form. Q: Whether they were teenagers or adult; fair I++I 0: It had something to do with the manufacturing hal process? p31 enough? 1+31 A: It was a manufacturing process. (ial nsl t sl nn MR. KOETHE: Same objection, 0: Right? A: Yeah Q: Are you aware of additives in cigarettes? [iel 0: And the idea of ammonia being an additive may hsl have been discussed at that deposition? I,sl A: It came out in the - yeah, there was something ntl about it there. m f., ,., nB) A: Yes. [ 1al 0: Have you given any other depositions? 1,e1 Q: Are you aware that ammonia is one of the ( 191 A: No. ,.. [2o1 additives to the paper of a cigarette? ( zol Q: So the only depositions you have ever given is Izil A: I was not specifically aware of it. [ 211 that one back in sometime in the early'80s - tm Q: Are you aware of it now? t z21 A: I think early'80s. Inl A: You've told me. mi Q: Fair enough. Ral -; Q: Are you aware that adding ammonia to a cigarette 1 2<1 A: Yes. tzsl enhances the pH value of the cigarette, tlms ( zSI 0: - about the knowledge you may have had about Page 100 - Page ] 03 (28) Min-U-Scrip to Seattle Deposition Reporters 622-6661
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IN W LAts Vlu-.KJ V. PHI1-Ik MORRIS Pago 72 nl MR. KOE:THE Object to thc form. rzl 0: And you realized at least around this time that pl the costs of treating those diseases were 14] significant, in the billions of dollars? tsl A: I realize that's what people were saying, yes. 161 0: Well, did you, yoursclf, try to detern»ne, Well, m is what people are saying true? tel A: What we had -- what we were trying to do with [sl SA\r`l' was to determine whether or not this was 1101 true, that's right, and how the industry t„I responds, what's the position,These are (12] allegations being made.What's our position? 1131 Q: And what did you detr:rmine? Was it true, in your 11<] mintl, that smoking caused dise.ases and that the [1s1 diseases that they caused required treatment and pel medical expenditures for them? t1n A: That was my understanding. I don't know whether [+el it was at this time, but it was around this time, [1e] approaching tlle '80s. tzol Q: All right. gil A: But what we did not have was a position,you tni know, where did the company stand, what is the Ix31 company's position on it.That's why I'm waving (z41 the flag. tzs] 0: Itight.The company nc:eds a position, We need a Page 73 t,] position, correct? tzi A: To answer these allegations. lal Q: But you understood -- at least you had the 141 growing awareness - and certainly by the early Isl 'SOs you understood, that smoking did cause the tel diseases, and when people got the diseases, they pl had to go in to the doctors and get medical teJ treatment. tel MR. HOWARD: Objection to the form. [iol A: Smoking was associated with these diseases, and [ul people have to go in and get treatment when they [1zi have diseases. [131 0: Right. [i41 A: Yes. ]1s] Q: So you accepted that as a basic proposition; fair [1s] enough? MR. KOETHE: Object to the form. A: Accepted what as the basic proposition? 0: What you just said. A: That smoking was associated -. 0: But you accepted that back in the late 70s and tnl early '80s; fair enough? tz31 A: Yes. tz<I 0: Now, did you make an attempt in this document to (zsl say to yourself, Well, how would you compare the C. llENNIS DUItDEN Vol. 1, December 17, 1998 Pago 74 [11 economic costs of reducing disease and delaying t2] death from smoking, and whether that outweighed 131 the benefits, whatever they are, of smoking? [41 A: No, I never did that study. tsl Q: Well, let me ask you to read page 3. Read it out ts] loud, "This line of argument...". rn A: "This line of argument might be supported by le] seeking more evidence to advance the argument of Isl Gori and others that, in the long run, the tiol economic costs of reducing disease and [n] delaying death could well outweigh the alleged (121 benefits (what are they, by the way?). 031 "We could argue, in other words, that [1a1 there might be a reallocation of costs, but no 11s1 reduction and possibly an inereasc.This might tis] keel) us away from the problem of arguing the 11r1 value of human Iifc." t1e1 Q: Now, did you understand, then, that part of the [1s) issue that you were dealing with was, Wel1, laol there's these economic costs - benefit, I a1] suppose - of reducing disease, reducing the t221 expenditures from disease, delaying death, that rn1 would outweigh whatever benefits there are from (241 smoking? tzsl MR. HOWARD: Objection to form. Page 75 Q: That that was an issue being raised. A: Yeah, that was the issue.That was the issue. 0: Did you, in your own mind, come to sontc understanding of what the benefits of smoking were? I'm talking about the social benefits of smoking.At that time did you say, Oh, I know what the social benefits of smoking are? MR. HOWARD: Objection;form, asked and answered. A: No, I--- the whole effort was to get to the benefits, the social benefits, if any, of smoking.And as I said earlier -. Q: What did you understand, if you can recall, this sentence meant that you just read: "We could argue, in other words, that there might be a reallocation of costs"? A: I don't understand that sentence. I may have not - understood it 20 years ago, but I don't understand it now. 0: Would it be that the costs be reallocated, 121) meaning borne by the tobacco industry and smokers ]n] more and less by the people paying the medical m1 bills? tza1 A: I don't know what was in David's mind when he t2s1 wrote that, I'm sorry. I can't help you. Seattle Deposition Reporters 622-6661 min-U-5cripft (21) Page 72 - Page 75
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tv W iA_1sUfuacS V. C. DENNIS DURDEN PHII.,iP MORRIS Vo1. 1, December 77, 1998 -------~-- ------- - _- Pego 96 (11 didn't have a position towards social-cost Ri issues? (al A: I haven't seen it anywhere.l don't recall it. (al I don't recall it. [sl Q: Well, I'm asking whether you, based on this Isl document, at least, believed that by September Dl of 1979, in order to engage in countermeasures, tal they must have had sonic position toward the tsl social-acceptability question. (10] A: I'm saying that I'm not aware of the position I+11 that was taken. (+z) Q: Wouldn't you believe that the position taken was (131 to try to change public opinion or public (1<l acceptability of the social-cost issues? Itsl A: I think that's about as near as we're going to tlsl get. But then you have to say what your It> objectives are, and you have to develop the facts (181 to go with it. 1181 Q: Do you recall 1980 being the "Year of the rzol Nonsmoker"? tztl A: I do not. (z21 Q: Look at paragraph 3.2.4. [23] A: 3.2.4. Iz<I 0: h says, "1980 -Year of the Nonsmoker- Psl 'Smoking or health, the choice is yours'."Then Page 97 I+I go ahcad and read on out loud, please. RI A: "Develop an action plan covering all areas pi designed to 'preempt'the inevitable continual (<) negative communication campaign that can Isl positively and professionally using all the tools at the industry's --- disposal." I don't understand that. 0: Well, did you understand that the World Health Organization had declared 1980 to be the "Year of the Nonsmoker," with the title or the themc - A: I don't recall that. 0: -- "Smoking or health - the choice is yours." A: I don't recall that. Q: If you could tell me, why would Reynolds or the Social Acceptability\V' orking Ya1Yy warn to preempt a campaign that stated "Smoking or health - the choice is yours"? MR. HOWARD: Objection; foundation. A: I don't know what was meant by this. I don't know what was nteant by this --. Q: No idea? A: I don't have a clue as to what Mary is getting rroi at. I don't rementber this document. t:nl Q: Well, putting yourself, if you can, back in the t2sl period of 1979. I'm asking you to do that as best (q you can, sir. [zl You would certainly believe, would you p] not, that the position of the tobacco industry is [<] people should have a choice whether they should (sl smoke or not? (sl A: Oh, sure. pl Q: And you would not, I take it, believe it (el appropriate to oppose a campaign that says [el °Smoking or health - the choice is yours," nol would you? (111 MR. KOETHE: Object to the form. (121 A: It depends on the specifics of tlte campaign. I nal don't have the knowledge. h<1 Q: You would agree that if the position of the (ts) industry was the choice of smokers, that it would (1sl be important to inform the smokers of what the [1r( nature of the prodttet is in order to allow them (tsl to make an intelligent choice; fair enough? Pago 98 ~ 119) MR. KOETHE: Object to the form. tzol A: The composition of the product. (z11 Q: The character of it. m] A: The character of it? P3l Q: Yes. Ral A: Say it again. (zsl Q: Sure. I would be glad to. Page 99 (11 A: Help me with the question. m 0: You've already stated that it was the industry's pl position that people should have a choice whether (al to smoke or not, correct? Isl (sl A: That's right. Q: It shouldn't be imposed by governntent,No,you m can't smoke, it was an issue - I think it's been (el referred to as a matter of personal choice; is (sl that correct? [101 A: That's right. 11q Q: And you would agree, would you not,that in order (1zl for people to make an intelligent choice as to na] whether to smoke cigarettes, it's important that (1a( they be provided information about what that (1s] choice involves; fair enough? Itsl MR. KOETHE: Object to the form. 1171 A: Well, I'm not certain that - the way you word (,sl it, I'm not certain that it was an intelligent (19] choice. (ml 0: Why wasn't it an intelligent choice as to whether (x1) or not to smoke cigarettes? lnl A: I'm just not certain if it was intelligent or rzal not. I know in my own cause, you know, I don't la<I know whether it was all that intelligent. It was tzsl pleasurable. Seattle Deposition Reporters 622-6661 Min-U-ScriptD (27) Page 96 - Page 99
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C. DENNIS DURDEN VoL 1, Deceml5e.r 1.7, 1998 ----- Page92 --~-----...- I,I MR. WITHEY: If he recalls that meeting. PI MR. BUSH: - whether he recalls that lal meeting? t<I MR. WITHEY: Yes, (s) A: I went to Yhoenix, yeah, Isl Q: All right. m A: Yeah. I don't recall the meeting, though, (el because this was near the time that I was (91 leaving. pol 0: Under the objectives of this subcommittee, the Iip document indicates that the idea was "1-o prepare (121 proposals for an action plan to develop social (131 acceptability countermeasures"? n<) A: Uh-huh. ltsl Q: You have to answer audibly. 1,61 A: Yes. prl Q: And the action plan on page 2 of this document (ie has a number of fcatures of it that I want to ask (,sl you about. pI First, why don't you read out loud (zq pangraph 3,1 under "Action Plan -Arcas for Inl Countermeasure Action.' Izol A: "It was agreed that the starting point for Izal defining the areas to be covered should be the (zsl framework proposed by Dennis Durden in paragraph Page 93 lil F) of his letter dated May 14, 1979 ..." - do we (el have that? pl 0: Wcll, I'm not surc.We've asked for documents, - I<I but we probably don't have that, sir. Isl A: -".., which was sent b), courier package to7'heo (sl Van Gorkotu,as chairman of the executive m committee, and the essentials of which were [sl passed on to executive committee members by telex (sl of May 15." hol 0: And then it seems like F), paragrtph F) of your t+a letter, even though we don't have the letter, is (+21 then quoted; is that correct? t,rl A: That's what it says, but I would love to sec that I q document, because this was -. hsl Q: Let's read what at least this document says your (,s letter of May 14,1979, at paragraph F) said. Ivl Read that out loud, please. (iel A: 'llighest initial priorities will bc placed on p91 exploring possibilities for helping to change Rol public opinion, but not neglecting the harnessing frv of the efforts of the tobacco family rnl initially efforts will also be concentratc.d on rzal the public smoking thrust of the social a<I acceptability question and the attempts to lzsl denegrate the image of smoking and the smoker." NW LABORERS v. PIIILIP MORRiS Page 94 I+I MR. KOETHE: Excuse me. I would like to tzl note for the record that there are sonte (al ellipses in this document which at least suggest lal to me that portions have been left out, just so (sl the record is clear. 161 MR. WITHEY: Okay. m 0: And then based on that letter, a list of key tel areas to be considered for countermeasure action (sl were listed, correct? ol tl 12] A: I don't know. I have no memory of it. 0: Well, I'm just asking --- A: You are asking me something that -- I don't I(tal remember the letter of the 14th, or whatever date Ital it was --- May 14th. (,sl Q: No, I'm just asking you about this document, lisl which is Exhibit No.11, now, (tn A: Which is - Mary Covington wrote this document. (tsl Because I have no memory of this document. (t91 Q: I understand that. I'm asking you whether we're lzol reading the document correctly when we say that, tztl "based on this..." - meaning paragraph F') of trrm your letter - "... the following list was drawn Ir31 up of those key areas in which it was considered (aal that countermeasure actions should be (25] concentrated." Did I read that correctly? Page 95 (tl A: Yes, lf F) is correct, then this is what - this (zl is what we're saying here. (3I 0: Now,underD)ofthosecountermeasuresonpage3, 1<I please read what it says in this document. tsl (sl m A: It says, "Discrediting the antis." 0: Go ahead. A: "Develop for dissemination profiles, conflicting (al statements, examples of intolerance, etc." t91 Q: I assume by the word "antis" in this document, as (tol presented to the Scottsdale conference in '79, ptl they are talking about the anti-tobacco or (t21 anti-smoking movement, correct? [131 MR. KOETHE: Object to form; foundation. I<I A: I have - I don't know that. I would assume so, l,sl but I don't know. he 0: Can you imagine why a countermeastire would be prl enacted to disseminate profiles of the It al anti-smoking organi ations? (19) MR. KOETHE: Object to form; calls for riol speculation. riil A: When you don't have a position, which we still tnl don't have here, no, I can't make sense out of PI this. (z<I 0: Your testimony is that even though they have an lzsl action plan with countermeasures, they still ------ ---- ------ - - ------- - -.... -- - ~~_.... Page 92 - Page 95 (26) Min-U-Scripto Seattle Deposition Reporters 622-6661
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C. DENNIS DURDEN NW hABORERS v. ' VoL 1, December 17, 1998 PI17[lr_!rn MORRIS Pago 44 III research, training and capital Investment tzl in medical facilities." Do you see that? pl A: Uh-huh, Iat 0: You have to answer audibly, sir. Ist A: Yes. Is 0: And then the "Indirect Costs" are 'the sum of m loss of income due to illness and the present [e value of future lost income due to premature Isl mortality." Do you see that? hol A: Uh•huh. [iil Q: You have to answer audibly, sir. [121 A: Yes. 1131 Q: So, as I understand it, then, if a smoker goes n+i in, gets sick, and has a medical bill, that's a (,sl "direct" cost, whereas if someone loses time from l sl work, it's an 'indirect" cost. I n A: That was the way these studies were apparently [ sl done. hsl 0: All right. (za, A:1'es. rrq 0: Do you believe,as you look at Exhibit No.3, Izzl then, that this is a fair summary of at least the (za state of the literature that existed at that time Ixa that h1r. Narr gathered for you? tzs A: Well, I just couldn't answer that. I just don't Page 45 [ I know, [21 Q: Do you understand that at least this document pl lists the author and the year of studies -- tal A: Of studies that we cited, yes. ts1 Q: - and that that also lists both the total costs (sl and then itemized thern as to whether they would pl fall within the direct costs versus indirect [al costs? tei A: The indirect costs - that's what it shows, yes. l+ol 0: And so «as it fair to say, then, at that time, at (11] least, based on this literature review, you were I,a aware that the indirect eosts,at least according 1+31 to sonte of the studies, could be as much as in 1,41 the billions of dollars? psi A: That was what was being asserted. psl Q: And the same is true of the direct costs, that II they would be in the billions of dollars. (+a) A: That was being alleged also. hgl Q: Would you agree that at that time, then, the tm industry realized it had a fairly major stake in -tya the social-cost issue? ngl A: I don't know whether they did or not. pl 0: Did you understand, at least -- a41 :: A: Yes, I thought it was an imponant issue. tzs 0: It was an important issue in the sense that if Page 48 [,I those costs were reimposed back on the tobacco [z] industry or these organizations, that that would pl make a substantial difference in terms of their tal financial situation, that billions of dollars [sl were somehow reimposed back upon the tobacco [sl industry? m MR. HOWARD:Objection to form, (al MR. KOETHE: Objection to form. pl A: I can't go there. I just don't know that, (101 0: Well, did you have a basic understanding at the [i il time, at least, in 1979, that the imposition of I+zl social costs of, for instance, under Simon's [131 study, $4 billion, and under Hedrick's study of $5.3 t+<I billion, and Hodgin's (phonetic) study of $18.6 I+sl billion might have an impact on the cash flow of 1s,IR usj and the other industry organizations? hn MR. HOWARD: Objection to form. (,eI MR. KOETHE: Objection. hsl A: I just don't know that.I really don't know Izo) that. nil 0: Well, back to the basic point, you realiaed that pl the industry had a financial stake in this issue; tz37 fair enough? Iz41 A: Of course. 1251 Q: Now,we received a document from Philip Morris in Page 47 [il discovery, and it's been marked as Exhibit No.4 r~l to this deposition, and it's a document entitled (3] 'Social Cost.c, Social Values." 141 What I want to focus your attention on in this Is document - it's found on page 1- is down at the Isl bottom where it talks about "Our attack consists of m four major themes." Do you see that? lel A: Uh-huh. pl Q: Why don't you read into the record those four [ ol themes out loud, please. [>>1 A: 'Our attack consists of four major themes: 1. nzl These social cost concepts are bad economics; Its 2,They do not fit into a philosophy of personal p<I freedom and civil liberty; 3. Smoking bencfits l,sl society and its members in many complex ways; 4, us Anti-smoking programs and groups are harmful to (,71 our society." I sl 0: Mr. Durden, would you agree that these four ' tis themes, at least, characterir,ed the ICOSI, Izol International Committee on Safety Issues's, Iztl themes at the time that you were working with rnl them on the Social Acceptability - Iza: A: I have no knowledge of what constituted that. tz41 Q: All right, Why don't you go to the top of the t257 page and read the first line, No.1. Page 44 - ragc 47 (14) Min-U-Scripto Seattle Deposition Reporters 622-6661
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tV W f111f(JKI:KJ V. PfuraY MORRIS C. DI?NNIS DU1iD&N Vol. 1, December 17, 1998 171 want you to read that out loud. Pago 64 Page 66 C 111 customers pay more of that burden? 12) A: "To me this article is a very " -- ... , rel MR. HOWARD: Objection to form. 131 Q: No, I'm sorry,the last sentence of the second 13) Q: Is that correct? 1<I paragraph "Particularly " , ... . lel MR. HOWARD: Misrepresents the document. )sl A: "Particularly in this time of budget strains, Is) 0: You can answer it. Isl they may indulge in even stronger feelings about ' Isl THE WITNESS: What just went on? I m (n letting our industry and customers pay more of (n sorry. [sl the growing tax bills." [al Q: He makes objections and then you should go ahead sl Q: And the "they" you are referring to is business (sl and answer, hol people or businesses, correct? (11) A: Yeah, yeah. 1121 Q: And you described how these allegations or these pal statements need to be "countered," in the last )+<I sentence, correct? I1-,I A: Well, as nearly as I can rcmember, even by 1982, hs when I was doing other things, we still did not 117] have a position, that I was aware of, on social (10) COsts. I+sl 0: Well, we'll get into that, because there are sonte 120; documents that suggest you may have had a r2il position. Inl A: Yes. R3I 0: But what I'masking you is whetheryou understood (241 that based on this article, there was a "threat," tzsl if you want to call it that, to the industry, Page 65 pl that if these costs, as cited in the business tzl news, of S 12 billion for medical expenses were, (3) as you put it, borne by the industry, or letting la; the industry and customers pay for it, that would Isl have a financial impact on Reynolds and other Isl companies. pl A: Yeah. lel 0: And the amount of moncy that this individual, Ken Isl Warner, is discussing, S 12 billion, ot 6 percent, [ al I think it was, of the personal health [11i expenditures, that was, at least, riot totally out n2l of line %vith the estimates on Exhibit No. 3 that pal Mr. Narr sent to you based on sonic of the (1,1 studies. lisl A: I never draw that kind of conclusion. I don't -- 11s1 my mind doesn't work that way, I'm sorry. Iv) 0: Well,you could at least do dte n><ath,that if 11sl Warner is talking about $12 billion and Narr gave (191 you studies talking about betwecn $4 and $26 Izol billion, that we're ndking about billions of r2il dollars, and that was known at the time -- tzz) A: If they're right, if they were right. Wl Q: Well, you understood, however, that the burden of tzel that and your concern about it w as that it would 110) MR. BUSH: T'hey objected to the form of n+l the question. (12) 0: Do you want me to rephrase it? [1a1 A: Yes. [1al Q: All right. psl A: Ask me again. 11e1 0: You understood that whatever the burden,whether 1171 it was $12 billion according to one person, or 11e) $4- or $5 billion according to some other study, 11s1 that your concern in this letter was that you Izol were concerned that these businesses might r2il indulge in efforts to let the industry and their (r21 customers pay for it; fair enough? (z31 A: Yes, I was saying that if this is indeed the way p41 the wind is blowing, that could happen. rzsl Q: Ixt me ask you to review Exhibit No.7, which is Page 67 a document dated January 10,1979, from Mr. Narr to yourself, the subject being "Social Costs of Smoking - Strategic Assessntent." Of course, as we go back, you'll see that this was the day after Exhibit No. 3 which lists the studies in the billions of dollars of direct and indirect costs, okay? A: Uh-huh. 0: Is it fair to state, even though you may aot remember Mr. Narr, that he worked for you at Reynolds? A: Yes. 0: Do you remember him now or not? A: I can't remember the face, but I remember the 191 name. Q: Let me ask if you agree with the second 1171 paragraph, which I would like you to read out 11e1 loud starting "T'he ultimate objective ...". 11s) A: "The ultimate objective of the industry and its tzol various endeavors, including ICOSI, appears to be r2il to preserve its ability to profitably manufacture (nl and sell cigarettes." tr w ~-, n m rW ~ pal 0: Do you agree that that was one of the goals or --- (zal A: I would think for ICOSI it would be.l have no Rsl be, as you call it, letting our industry ~(zs) firsthand knowledge, but I would think so. Scattle Deposition Reporters 622-6661 ffiin-U-Scriptto ~ (19) Page 64 - Page 67
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Lawyer's Notes
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DURDEN/Withey - 12/17/98 160 SIGNATURE I declare under penalty of perjury under the laws off the State of Washington that I have read my within deposition, and the same is true and accurate, save and except for changes and/or corrections, if any, as indicated by me on the CHANGE SHEET flyleaf page hereof. SIGNED IN , Washington, this day of 1999. C. DENNIS DURDEN LMD ~ SEATTLE DEPOSITION REPORTERS (206) 622-6661
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IN w r.nl"xtuw V. FHILIP MOIiItIS Page 104 [tl sonte manufacturing process in a suit brought by zI Philip Morris and Reynolds tbis, and this (al deposition; those are the only two? (<I A: That's right. (sl Q: Did you happen to keep a copy of the transcript Isl of that deposition? m A: I don't know. [sl 0: Would you mind looking and,if you find a copy of rel the transcript, providing it to Mr. Bush? (tol A: I went through my stuff and I didn't find it, so (it( I'nt- I don't think I have it. I don't mind h2) looking again. [131 Q: I would appreciate it. I mean, if you've already hel looked and you are convinced you don't have it- I1s1 A: I looked the other day, looking for anything for psl this. 1171 0: Now, if you believed back in 1979 or the late 1181 '70s, when you were working on the Social tpsl Acceptability Party, that ammonia was in fact Izol added to Rc,vnolds' product to increase the p1I for [ztl particular purposes, and that that had the effect rnl of releasing nicotine into the bloodstream pi faster --- assuming that to he true - is that (2nl something that you believe the consumer of the gsl product should have been infotmed of.~ Paga 105 I+I MR. HOWARD: Objection to form; incomplete (z( hypothetical. . t31 A: I really don't know.l really don't know. [al 0: Do you agree that hacl Reynolds at the time [sl relcased to the public information that it was Is( adding ammonia to its product in order to free or n freebase nicotine in order to add to the kick la; that nicotine gave in smoking the cigarette, that (91 that would have adversely affected the social hol acceptability of its product? h+I A: I'nt in no position to judge that.I just don't (,zl know. (tal (Exhibit No. 12 marked (141 for identification) [,sl Q: Mr. Durden, handing you what has been marked [tsl Exhibit No. 12, again a document provided to us nn by Reynolds in discovery, this document has a 116] review of the SAWP's ntajor activities with your p9( name on it, correct? tml A: That's what this says, yeah. R+I Q; And it's a review of the assignments that SAWP tnl received from ICOSI. Do you sece that? ml A: Ycah -- received 18 assignments, yes tz41 Q: And it indicates 13 have been completed, four tzsl have been deferred,and one is still underway, C. DI3NNIS DURDEN Vol. 1, December 17, 1998 Page 106 K (+I "Social Costs/Social Values." Do you see that? (zl A: Uh-huh. [ol Q: And then it refers again to the governing board [4] meeting at Leeds Castle, the one you attended, Isl correct? (sl A: Uh-huh. Rj Q: You have to answer audibly. (s) A: Yes. pi 0: And describes the five major accomplishments of to( SAWP. A: Uh-huh. Q: You have to answer audibly. A: Yes. Q: Now, it talks about an "international opinion tttl I121 (131 [14I A: Yes. 0: Tell me what you recall, 11s( survey, completed and distributed." Do you (,sl recall that opinion survey? (171 1181 A: Uh-huh. Q: You have to answer audibly. A: Yes. t^ 1191 A: I recall that it was done in London, and that the IZOI intent was to get baseline data about attitudes tztl towards smoking from various countries around the ml world. I23I Q: Do you recall the results of that survey? tz<I A: No, I do not. tzs( Q: Was it a purpose of the survey to kind of test Page 107 pl the waters to see what the people were thinking gl about sonic of the social-cost/social- [ol acceptability issues? [<I A: It was to see where public opinion was, and I'm (sl not certain what the scope was, (sl Q: The second major accomplishment listed is "Social m costs/social value study undertaken and some (a) portions completed." Do you see that? 191 (101 [+11 [1xl Q: And do you recall the "Social Costs/Social ~ h! (tal Valuc"document I showed you from George Burntan? so It<I A: I recall that outline.You were showing it to me 0: Do you recall that that was one of the documents, Q: Yes. A: I don't recall it from -. Its7 today. t sl m +e( 1sl or at least pan of a document, that might be zol reflected in 11-2 here in Exhibit No.12? m A: I just don't know. I just don't know, 0: It had the same title, did it not? A: I guess.I just don't know. Q: Why don't you read 3. A: "A countermeasures development working partyhas Seattle i)eposition Reportcrs 622-6661 1Wfin-U-Scripte (29) Page 104 - Page 107
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IN W LA1SOItriRS v. PTi1T.iP MORRIS Page 88 I+I ctc." [2I Q: And your name and signature is on the bottom of (31 this document? [al A: That's right. Isl 0: 1 take it, then, this document that you signed, Is] amongst others, linked the slower growth in sales tn to anti•smoking efforts, correct? [sl A: That's what this document says. Isl 0: And including the area that you were dealing [m] with, social acceptability of smoking, correct? IIII 1121 A: T'hat's right. 0: Do you feel that if in 1977 Reynolds had (,31 announced to the world that it had determined ha) that nicotine was addictive and that was the (,sl reason people smoked, was to get their daily unit psl of nicotine, whether that would have accepted the [rq social acceptability of smoking? (ial MR. KOETHE: Object to the form; ]i91 foundation, (zol A: I don't know where you're going there. rza MR. BUSH: You used a word I didn't rnl understand, whether you said "accepted" or rlai "excepted." t341 [2sl MR. WITHEY: Accepted, a-c-c-e-Irt-c-d. Q: You write here that anti-smoking efforts of Page 89 [1I various groups include the areas of "unfounded Iz health concerns" --- rn A: No,1 didn't write this. I was on the approval (4] line because I was -- I went to the tobacco (sl company needing money to carry out the SAWP Isl duties. So I signed off on this. I don't think trl I wrote this. tel 0: Well,you approved it. ril A: Yeah. liol Q: All right. li q A: I approved getting the money, yes. hal 0: Well, did you approve the term "unfounded health (,3] concerns" in this document? I++I A: I didn't pay that much attention to it. [,s] 0: Well, at the time, were you aware of documents nsl internal to I(JR that had found that smoking was, p~ in fact, a cause or a contributing cause of pel diseases? 1191 MR. KOETHE: Object to the form. (zel A:1Vo. tz1[ Q: Is that something you would have wanted to have rril been informed of by RJ. Reynolds if they had rr31 internal documents from the, research scientist [zel that had said,Smoking is,in fa ct, a sso c iate d C. DENNIS DURDEN Vol. 1, Decenrber 17, 1998 Page 90, (t) MR. KOETHE: Object to the form; (zl foundation. [al Q: You can answer. Is that something you would have (al wanted to know? (sl A: Oh, sure.Yeah. (el Q: And if you believed that that was true, that IsJR m had such documents showing that smoking caused tal cancer, would you have used the word "unfounded" [sl health concerns? Ito] A: I didn't use the word "unfounded." (++] 1121 0: Would you have approved the word "unfounded"? A: I wasn't approving the word 'unfounded." I'm not In3] that particular a manager, I'm sorry to say. [+a] 0: At least, however, this document indicates that t sl Reynolds saw a relationship between the social- [ts] acceptability/social-cost issue and a possible (irl decrease in growth of sales, correct? [tel MR. KOETHEe Object to the form. (191 A: I think what we were doing - this was to set up, teo] as I remember, the time frame only. We were [x+l trying to set up the money to investigate thc tnl social-acceptability issue. m) (zal Q: And you were trying to get approval for it. A: For the funding, yes. [2sl Q: And the reasons you gave were related to limited Page 91 (9 growth _.- tzl A: The reasons given by the tobacco company, l31 Q: - and included sales, concerns about sales in t4] the future. [sl A: That's what the tobacco company said, that's [s] right. m Q: I'll hand you what has been marked as Exhibit (el No. 10. Now, this is a lengthy document. (al MR. WITHEY: Let's go off the record, ]iol (Discussion off the record.) tnl MR. WITHEY: Let's go back on the record. (,s) Q: Do you have Exhibit No. 11? [13j A: Yes. [14] Q: T'his is again a document provided us in discovery [ts] related to the "SAWY Countermeasures Development (,sl Subcommittee," which, of course, the I+tl countermeasures were part of the project that was ltsl referred to in Exhibit No.1.And I guess there (tsl was a meeting in Scottsdale in September of 1979. tml Do you recall that? [zt] A: Scottsdale in 79? tn) 0: Yes, September 1979.At least according to this (zol document. R<I A: Let me see, because I don't -. tesl withlungcancer,emphysema,andheartdiseaseh lasl MR.BUSH:Areyouasking,Mr.Withey-- tn n ~ Seattle Deposition Reporters 622-6661 Min-ll-Scripa (25) Page 88 - Page 91
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C. DENNIS DURDEN Vol. 1, December 17, 1998 Pago 108 IlI been established and is submitting its work 12) plan." tal Q: And we've talked about that countermeasures [eI development committee, whatever you call it, Isl correct? tsl A: That was the Mary Covington piece from 1979. m Q: Yes, the Scottsdale. (a) A: Yeah. tel 0: Yes, including the motion of discrediting the (iol "antis" that were listed in that document. Do I++I you see that now? (12) A: So this -- yes. So this should be the - so this (131 is, then, 1979, this document here (indicating)? (141 0: I don't know the date of it, although I think [isl maybe you could -- well, let's go back and see if t sl you need it. (irl There was a meeting at Leeds C'astle, and I+ei that's referred to in Exhibit No. l, and the NW I-AI3O1tPRS v. PRILIP MORRIS Page 110 (p A: So - yes. So that had been finished, I guess. (21 1 don't recall it. lal Q: So you had a public position paper on public (<I smoking, correct? [sl A: That's right. [sl 0: Also known as "passive" smoking? FI A: I don't know that that was - I think that's what le] we're talking about, (s) Q: And you had the social cost/social value studies [,ol undertaken and portions completed, correct? (++I A: Yeah, but those are studies.That isn't a n21 position paper.This is -. 1+31 Q: Go ahead. 1,<I A: This is what we were after for everything lis7 (indicating). [+sl Q: Then it also indicates, "A most successful [i7) meeting of national associations was held at ual Zurich." (191 Leeds Castle meeting was in - [,9] A:Itight. [zol A: And some Zurich meeting has also taken place. (201 0: Do you see that? R1I 122) Q: So it would have been around 1979. Is that your best estiniatc of the timing of this document? (zi) A: Right, rnl Q: And that was referred to in another document as a tnl A: I'm trying to establish tttat.I'm trying to (za) establistt that, gsl Q: Exhibit No.1, just to refresh your recollection, Page 109 Iq indicates that the Lceds Castle was in September tzi of 1978, and apparently the Zurich conference had p7 not taken place, so it was sornetirne in either I<I 1978 or '79? [sl A: Yeah. [sl Q: Is that correct?When this document was written? ryl Most likely? Iel A: Most likely, because it looks like a wrepup, (sl yes. (ml Q: "Wr,tl>up' meaning? pq A: I'm reporting back, and we've done the issues, (tal and I'm - I think this is about the timc that (ial I'm turning over the reins. p<I 0: All right. No.4, read that out loud? I+sl A: "The public smoking position paper has been kept (+sl updated." ntl Q: So this seems to indicate, Mr. Durden, that at [isl least as of the time of this document,when you tisl are describing the accomplishments, that a (zol public smoking position paper--- p) plan at the time. Iz<I A: Right - right. (zsl 0: So it sounds like the SAWP had accomplished a Page 111 (,I significant portion of the goals that it had set t21 for itself; fair enough, by this time? [ol MR. BUSH: Would read that back for me, (el please, Isl MR. WITHEY: I'll rephrase it. (sl Q: It's clear from this document that a significant pl portion of the 18 assignments given by ICOSI had Isl been accomplished as of this time. tsl A: Yeah. We were still missing social costs/social 1101 values as of this time. I++I Q: Well, portions were completed, some were (,21 undergoing. (i3) A: Yeah, right. (14] Q: Now, did there come a time when, again, the I sl ICOSJ/SAWP hired consultants to draft papers and usl to present papers? If you recall, t~ A: I don't recall. I don't recall. V? 4-' hal 0: Do you recall - (isl A: Do you have a name? (zol Q: Well, first of all, Mr. Burman was a consultant, t., vi ,tnl A: For public smoking- I z,t co 0 rrect? rnl rA 0: Yes, that had been the - I A: For the public smoking issue,which was one of m Ral A: Uh-huh. Q: You have to answer audibly, R<I the three - remember,when we had three? R41 A: Yeah. (zsl Q: 'I'es .? 1[ 251 0: And do you recall aTollison,T-o-I-l-i-s-o-n? Min-U-Script0 Page 108 - I'age 111 (30) Seattle Deposition Reporters 622-6661
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i\ W isf.nV1U'.tty V. P1itLtp MORRIS Pago 128 (il chair of it, want to have Dr.Wildavsky write a RI 300-page paper on the anti•smoking organizations. lal MR. HOWARD: Object to the form. wl A: I was not aware that he was lvriting a 300-page (sl paper. Isl 0: I'm asking a little different qucstion.The m question, if you could focus on it, is as (el follows:As the chair of SAWP in 1977 through (a) '79 - 1101 A: Right - not through '79, up until part of '79. n11 0: Well, okay - can you think of any rcason why you (i2[ would want to have a paper on the anti-smoking I+3I organizations that was 300 pagcs in length? Ii<I MR. HOWARD: Objection to form;vague as lisl to time. I+el A: I would want to have information on the people pt taking contrary positions, yes. (ie) 0: Well, can you think of why it would take 300 nel pages to write such a- [m[ A: That's beyond my kin. I can't answer that. (21] Q: As you sit here today, you can't think of any 1221 reason why you would need such an extensive ml "dossier,' as it might be called, or "profilcs" of ri4l the anti-smoking organitations. Izsl MR. HOWARD: Objection to fornt. (1I A: I didn't - yeah, I just didn't put those words C. DENNIS DURDEN Vol. 1, December 17, 1998 Page 130 ~ li[ about this document other than to ask you whether tel you believe that this is a document which (al reflects the work of and progress toward the t41 completion of the goals of the Social Isl Acceptability Working Party. - (sl A: Let me take a minute to look at it, because I m wasn't present during the full time ofthis.We [al had family illness. (sl 0: Take a look. 1101 A: So let me look and see. (nl Q: Fair enough. (+zl A: (Witness reviewing documentJYes, I think this (i31 would be a summary of where we were and where we [ul wanted to go at this point in time - at that lia] point in that time. t sl Q: Now, if I could direct your attention, then, to (17) section 5 - (i81 A: Right. 1191 Q: - where it says, "ICOSIApproaches to Social rml Cost Issues." t2+1 A: Yes. tm Q: Under "Background," section C, I wonder if you pI could read that, "The social costs level ...". R<) A: "The social costs level ..." -- tzs[ MR. KOETHE: What page are we on? I'm Page 131 til sorry. Page 129 (at to it. r31 0: \GC have an exhibit here I want to show you just [+I so you know that -. (zl t3l (4) [sl A: (Witness reviewing documcntJ Is) MR. WITHEY: Let's go on to the next m document. lal (Exhibit No. 14 nxtrkect (el for identlflcation-) [+ol Q: Now, this document is called the "T'hird Report I++I by the \r%orking Party on Social Acceptability [1al of Smoking to ICOSI," starting with Ilates (+a) No. 501473496 through -3518. pal A: Yes. (151 Q: You are again listed as the chairperson of this (161 working party, correct? (i71 A: That's right. [161 Q: And the date on the letter that is attached is [ sl dated August 25, 1978. (zo] A: Uh-huh. rzi) Q: Do you see that? rrzl A: Yes. I231 Q: That's your signature; is that correct? Rnl A: Yes. (zsl 0: Now. I'm not going to ask you specific questions THE WITNESS: Page 11. MR.WITHEY: Page ll,section 5. A: "Smoking is asserted to be socially unacceptable tsl because it allegedly raises society's Isl insurance, healthcare, tax and other public m costs. Smokers are asserted to be sick (el more often, require more medical treatment and tel die carlier.They allegedly require others in pol society to pay higher taxes and insurance [1+l premiums to 'quote" subsidize the social cost and [t2i expenses supposedly generated by smokers." [,31 Q: And that was one of the issues,as you've already [,<[ testified to, that the SAWP was dealing with, [,sl correct? hel A: That was one of the three things that we had Iq identified, and this is our best statement of [,el what the issue is, what the other people are hsl asserting. (zol 0: Thank you. 1211 It seems that the social cost --- tax, if (zzl you want to call it that - in the industry, tnl according to this document, originated in Sweden g41 in the 1960s. Do you see that? zs( MR. HOWARD: Objection. Did you say Seattle Deposition Iteporters 622-6661 Min-U-Script® (35) Page 128 - Page 131
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C. DENNIS DURDEN Vol. 1, December 17, 7.998 Pago 124 Iq to be related to -- l21 A: They seemed so to the authors, and I would say 131 that since it went out, ye.s. (<I Q: And in addition, there's one --- you don't have to Isl look at it, because I'll show it to you -- Isl 500298714, that shows a decline aftei the m publication of the Surgeon Genertl's report in csl 1964, correct? (sl A: Yes. I was aware of that, lio) Q: You were? Irnl A: I was aware of that. I+4 Q: That smoking went down after this? 1,31 A: Yes. (141 Q: And do you think it was because of the Surgeon I sl General - [161 A: I think there was a causal relationship in that tirl one.I have knowledge of that. I+al Q: And you also see one that says that anti- hsl cigarette TV commercials in 1969 seem to have (zol depressed the sales of cigarettes. Do you recall 12q that at all? 1221 A: I don't recall. 01 Q: \Ghat's the next document I've asked you to (z41 review? t2sl A: This is another list. Page 125 Ip Q: Another list of consumer activist groups and r2l anti-smoking organiritions, correct? (31 A: Right. _ 141 4: Was it fair to say, based on the title of this Isl document, that these charts and this discussion Isl was something that was available to the Social m Acceptability Working Party? lal A: It was given out at the mcetiny„ as near as I can (sl recall. 1101 Q: Thank you, sir. I++) MR. WITHEY: Has this been markt:d as an I+21 exhibit? t+31 (I:xhibit No. 13 marked 1,41 for identification.) lul Q: This is the minutes of the 13th meeting of hsl ICOSI/SAWY in Brussels in October of 1979. Do n>I you see that? hel A: I see that, lisl 0: 1 want to direct your attention to page 7 of this f2ol docuntent. Why don't you read it where it says ,12q 'An analysis of anti•smoking groups ...". Read tnl it out loud, if you don't mind. p1 A: Page 7? rz,l .; 0: Yes, at the bottom. (zs) A: "An analysis of anti-smoking groups is bcing iVW LABORM v, PIIT1.lI' MORRIS ------------- - ------ Pago 126 t+l performed by Dr.AaronWildavsky.This project is 121 examining the anti-smoking groups in regard to their 131 organization, leadership and content, e.g. writings," 141 Q: Read the next sentence on the next page for me, Isl please, Isl A: "Mr.Burmanexplainedthatthesegroupshavebeen p] categorized as either set or caste, and discussed the lel principle chartcteristics of each category," lel Q: Do you see down below where the author says, pol "This information will help SAWP in dealing with (111 various anti-smoking groups, and will assist in Irel develol» ng appropriate tactics to meet their 1131 challenges'? h<1 A: Yes, I see that. (151 Q: Did you understand what a "set"was as opposed to a (161 "caste"? I+zi A: No, I was not at this meeting. I've never seen I el this one before.This is -- Mary Covington has _ pel taken over the chair at this meeting in Brussels. Izol Q: Well, you don't recall any discussion - Izil A: I don't recall any discussion of that, no. I re? l have no knowledge of that, Inl Q: But certainly you recall front the time when you (241 were the chair that there was a discussion of (zsl developing information on the anti•smoking Page 127 I+/ organizations. rl A: As a part of getting an issue and position paper, 131 yes. 141 0: And did you understand that Dr. Wildavsky actually Isl issued about a 3001page report on these anti-smoking Isl organizations? m A: I had no knowledge of that, lal 0: Can you think of any conceivable reason why SAWP Isl or ICOSI would want to have Dr. Wildavsky write I ol up a paper that had 300 pages on analyzing the hil anti-smokingorgani-rationsg h21 A: As I said, I just don't remember any of that. (13) Q: I'm not asking whether you can remember, I'm h41 asking can you think of any conceivable reason t+sl for that? hsl MR. HOWARD: I'm going to object to the ry7l form of that question. h81 A: Any conceivable reason-. 1%] Q: Why SAWP or ICOSI would want to have a 300-page Izol paper written for -- tztt A: I really can't go back and get inside the minds lzzl of the people. I just can't do it. (x31 Q: No, I'm asking you as the chair of it. [24] A: And I'm answering, Izsl Q: Can you think of any reason why you would, as the Page 124 • Page 127 (34) Min-U-ScriptCu Seattle Deposition Reporters 622-6661
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EXHIBITS CTn1 JLi: , . , DEPOSfI .1C)N >` RLI?OKCERS". : Deposition Reporters • Computerized Transcription 1740 Puget Sound Plaza, 13251roorth Ave., Seattle, WA 98101 • Seattle 206 622-6661 Fax 622-6236
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C. DENNIS DURDEN VoL 1, December 17, 1998 Pago 148 fl A: Yeah, yeah. lal Q: And he went to work for IZJRTobacco? rs] A: Right,right. l+l Q: Do you have any idea who "CI"' is, "b9r. CI'"? Isl A: I don't know, but I would say Charlie Tucker. tsl Q: Do you have any idea who Becky is? pl A: No, I don't recall if I ever knew. Isl Q: Well, this indicates that Mr. Hobbs feels that (91 it's very clear that the accountability for t,ol dealing with smoking and health problems is I,+I Tobacco public affairs, correct? n2l A: That's what it says. t+;l Q: Did you feel that this was sorne sort of turf war p<I where the responsibility was going to be taken lisl away from you and toward Tobacco? (161 A: No,itwasalwayspresuntedthatTobaccowouldget t,n its own public-affairs capabilities so that it I+el could be like the other companies that were part hsl of the RJR Reynolds Industries family. (zo) 0: Was there a sense at the time that people did not (z,l want to deal with you as the head of this effort? rnl A: That could have been. I didn't sense it very ml clearly, but that could have been, yes. 1241 0: In fact, that there was efforts to avoid having nsl to deal \vzth you on this topic. Page 149 I+I A: I don't know that. I don't know that. tzl Q: Let me read you testimony that Mr. Narr gave, and pl then I'll ask your reaction to it. l+l Showing you this document here, which was Isl marked, I think as you can see, as Exhibit NO. 20 Isl to Mr. Narr's deposition, the question was, "If m I'm reading this correctly, there tvas some Isl discussion about accountability for smoking and 191 health problems, and it was Mr. Hobbs' position hol that it should be with Tobacco public affairs." I p The question: "Does that mean RJ. (,21 ReynoldsT'obacco Company public-affairs pal department?' lial "Answer:Ycs." hsl My question was, "Do you recall having tiel this conversation with Mr. Hobbs about that?" I rl "Anscver: I do not, not at all, but I can I al give you a context if you are interestcd," and lisl the question was "Sure," Rol "Dennis Durden,who was the vice president .R11 of public affairs for RJ. Reynolds Industries, Iz21 was widely considered to be a lunatic, and nobody Inl «anted to deal with him on anything, and we went tz<I to great efforts to avoid that. (zsl "He would from time to time burden us with NW LABOItEAS v. ' , PFIDf.1P MORRIS Pago 150 (I) his thoughts about what needed to be done about tzl smoking and health, or any other issue he took an lal interest in, and this looks to me like one of tal those times when it looked like something was Isl heading our way, and it fell to me to go up and lsl talk to Bill Hobbs, who was running the tobacco m company, to give him a heads up, and his response la] was, as I read between the lines, was, Don't I9l worry about it, meaning it wouldn't fall on hal Durden's shoulders." (11] A: Right. (121 0: Is that a fairly accurate description? n31 MR. HOWARD: I'm going to object to that p41 line of questioning. It's kind of obnoxious. ps But go ahead. 1161 A: I didn't know David felt that way. (171 MR. BUSH: I'd like to know what you are hel specifically asking him to address in the quote h91 you just read him, a fairly lengthy quote. Is tml there sonte part of it that you are now asking him t2+1 about? Cnl Q: Were you aware that David Narr felt that way 12s1 toward you? lz<I A: No, I was not aware David Narr felt that way tzsl towards me. Paga 151 l+l Q: Does this testimony surprise you in any way? tzl A: Yeah, a little bit.A little bit. 131 0: Is there some part of it that you believe to be I<I accurate? Isl A: Oh, I think that my subsequent demotion had a lot Isl to do with this, because, you know, as we've pl established, I still don't see the position paper lel on social costs. l41 Q: And how did your subsequent demotion have I)ol anything to do with this? Inl A: I changed jobs then. I no longer was in this 1)zl area. ha) Q: They demoted you to another job, then? hal A: Yes. psl Q: Who demoted you? hsl A: The company.As I said, I wasn't doing a good Inl job of management. pel 0: Who in the company? p91 A: My boss, Sticht. rnl Q: And tell me again what you were demoted to. 12,1 A: I was made director of public policy studies, Inl Q: What did you do as director of public policy r2sl studies? ]z41 A: I worked as staff to a committee of the board of tzsl directors, and I handled the work of the vi h-' lO F., m t., m Page 148 - Page 151 (40) Min-U-Script® Seattle Deposition Reporters 622-6661
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YI3II"lI' MORRIS Page 120 I+1 commentary on the nature of these otganizations, (21 some of the positions taken, arid the like; fair 131 enough? t<1 A: Yes; it's written down there. [s, 0: Arid sonic of their leadership, ct cetera; fair lel enough? Is that right? m A: Yes, they've named sonie of the leaders. tal Q: And this goes back, then, to the documents that t9l we've looked at previously, which is to conduct, [rol as you may recall, a study of, if you want to In] call it, or a paper on the anti-smoking nal organizations. n31 MR. HOWARD: Object to the form. t,<1 A: I'm not sure that that's what this was. I think I sl this was just to list the organizations that (161 have -- that opposed the position of the I+rl industry.l don't know that there was any Ira) further thing implied. It may be.. I just don't (191 recall it being implied. tzol 0: Let's go to the next document, then. (211 A: You tabbed "Influencing FactorsAffecting Inl the Sociaf Acceptability Issue." a31 Q: Could you just read the Bates number on the tz+] bottom, right-hand side. rzs] A: 500298750. Page 121 l+l 0: If you recall, what was the purpose of trying to rq identify what were those factors affecting the t31 social acceptability? I<I A: I don't recall. I don't recall this. tsl Q: At least from reading it over at lunch, was it an ls[ attempt to characterize sonle of the developments (7I in the social-acceptability issue by identifying Iel the key points that were being tnade by the [sl adherence of the social-cost question? [ml A: It's called "Influencing FacrorsAffecting the [++I Social Acceptability Issue." Q: So you assume that's what it was? A: That's what I'm assurning. Q: Why don't you go to the next page, then. A: Okay. 0: On this page there is a chart.Why don't you I+rl read the title of it. (181 A: "The U.S. Cigarette IndusayAnnual Unit Volume- [ 9I 1951-1959." tzo) 0: Could you read the Bates number. rrl A: 5002987129 - I can't read the "-- tnl 0: 1 think it's-8712. W1 A: -8712. 1241 Q: It has the billions of cigarettes sold in the asl left axis, and across the bottom axis is the C. DENNIS DUTtDEN Vol. 1, December 17, 1998 Page 122~ [rl years, correct? t21 A: Yeah; billions of cigarettes and years, right; (31 unit sale. tel Q: And you see how there is a decline in the Is] cigarette sales and where the arrows are pointing [s) to anti•smoking publicity by doctors, scientists, m and Reader's Digest. ta] A: That's what it says, yeah. [sl 0: Do you have an understanding that this kind of [ml information contained in Reader's Digest and I+a other publications actually did decrease the - I zi A: I have no knowledge of that. (131 0: Does that stand to reason to you, that where 11<1 there is publicity --- (1s) A: I just don't know. I just don't know. (16) 0: Well, based on your work in the public relations Irr] and public affairs of ItJ'R, was it your belief tiel that the more information there was in the public l+Bl domain implicating cigarettes and health, that Izol that did have an effect on sales? 1211 [nl PI MR. KOETHE: Object to form. A: I just don't know. Q: Did you have any belief that a decline in the tzal social acceptability of smoking would have a nsl depressing effect upon sales of cigarettes? Page 123 I+1 A: I think that was what we wanted to investigate. !zl That's what we were trying to get to. t31 0: And actually eventually you wanted to avoid that, WI correct,the decline in sales? [sl A: We R-anted to address the issue. (6] Q: But in addition to addressing the issue, didn't ln you recall that one of the goals and purposes of [al ICOSI and the SocialAcceptability Working Party 191 was to ensure the continued profitability of and rol sale of cigarettes? tr9 [121 [131 A: That's what we said, yes. Q: All right. A: But you said "increased," and I don't think the [tal word "increased" was in the ICOSI chan.I may I sl have been wrong. l+sl Q: Maybe the better term might be slowed the decline [nl in sales of cigarettes.IIow does that sound? [ie] A: It doesn't help me. I was just responding to hs1 what you said. (zol 0: Well, there were a number of other charts I asked (z+l you to look at lunch in this document.At [nl lunch, were you able to review these charts to r31 determine whether at least these charts, showing 1241 the historical ups and downs of the cigarette tzil sales, seemed, at least to the authors of this, Seattle Deposition Iteporters 622-6661 Min-U-Saripto (33) Page 120 - Page 123
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C. DENNIS DURDEN VoL 1., December 17, 1998 3S:'1~ 43-A2;45'."1;85:11.; 86:24;145:8;158:23 without 54:3 Witness 5:23; 6:19; 9:3, 17,19,22;12:14;13:1,14, 19,25;18:7,14;21:11; 26:25; 28:4; 35:21; 40:11, 19; 61:21; 66:6 68:23; 69:5; 78:9, 13; 79:18; 83:23; 85:16;129:5; 130:12;131:2;133:21; 141:12;147:22;153:21; 155:20; 159:20; 14:1 ]. Witt 25:6; 52:4; 53:4; 63:10 Wolbowski 81:8 woman 25:21 wonder 130:22 word 88:21; 90:8, 10, 11, 12; 95:9; 99:17; 123:14; 36:23; 74:13; 75:15; 129:1; 134:5; 141:16; 144:11 work16:3,12,15;17:11, 12; 19:9; 24:14; 25:13; 41:11;44:16;53:8;63:16; 65:1.6;108:1;122:16; 130:3; 145:3,9;146:16, 19; 147:23; 148:2; 151:25; 7:11, 12; 16:13, 17, 20; 17:1,3,8,13;19:8,13; 23:12; 24:22; 25:3, 23; 34:18; 52:22; 53:2; 63:11, 13,21;67:10; 146:21; 147:6; 151:24; 156:19; 24:7, 8, 9,15, 20, 22; 25:6, 10, 2-1; 30:2, 9, 13; 31:10, l0; 34:18; 38:23, 23: 41:6, 12, 19,20;47:21;49:2,6; 51:5;63:17,23;68:2,6,7; 80:6; 83:12; 85:2, 4; 97:15; 104:18;107:25;112:18, 23;113:21;123:8;125:7; 129:1 l, 16; 130:5;136:11; 140:23 worker 63:4 world 80:15; 82:20; 88a 3; 97:8; 101:2; 106:22 worldwide 29:11 worry 150:9 worse 27:15 wrap-up 109:8,10 write 88;25;89:3;127:9; 128:1,19 writing 128:4; 126:3 written 32:19; 39:19; 82:5; 109:6; 120:4; ,727:20;152:17 wrong 22:2; 27:19; 31:20; 33:8, 24; 85:17; 123:15; 140:12; 157:5 wrote 30:24; 51:25; 53:16; 75:25; 82:25; 89:7; 94:17;114:21;154:7 without - Zurich (12) y yea r 16:1, 22; 45:3; 96:19, 24; 97:9; 135:22; 136:13;7:10, 12; 16:8, 1.9; 17:22; 18:4; 20:17, 18; 21:2, 5; 75:18; 87:20; ] 00:17;122:1, 2; ] 52:8; 157:8 Yesterday 7:21; 8:7; 10:16;12:3,13;15:11 younger 100:17 I!Z zealots 157:17; 158:3 zero 11:4 Zurich 85:7; 87:3; 108:20;109:2; 110:18 NW LABORERS v, 1'IIILII' MORRIS Min-U-Scripft Seattle Deposition Reporters 622-6661
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INMRNaTxosaL cc3h4iIrLEE oN sMaKrl4c rssQEs N O c ~ ~ N ~_.. A?Tt2L 1979 N M+ ~ V [Il W F+ A n EXHIBIT-/-.._ % ~ De onent ~'~ ~ Date Pptr.~_ utfasooe
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DURDEN/Withey - 12/17/98 162 _...-----.--_____,-_.__ D~,TE: January 8, 1999 TO: GAYLE E. BUSH Bush, Strout & Kornfeld 601 Union Street, Suite 5500 Seattle, WA 98101 NOTICE RE SIGNATURE CAPTION: N.W. LABORERS v, PHILIP MORRIS, et al. VENUB/CAUSE NO.: DIST - SEATTLE/C97-849WD DEPOSITION OF: C. DENNIS DURDEN DATE TAKEN: DECEMBER 17, 1998 NOTICE OF READINESS XXXThe transcript of your deposition is ready for reading and signing at 1325 Fourth Avenue, 1740 Puget Sound Plaza; Seattle, Washington. Please call (206) 622-6661 with the deponent will be reading your deposition. You must read and sign the deposition within 30 days, state in writing your reason forr refusal to sign, or state in writing the fact that you waive your right to sign; failure to do so, signature will be deemed for all purposes waived and your deposition will, be filed with the appropriate representative of the Court. ~NOTICE OF READINESS WITH SIGNATURE PAGE Enclosed is your copy of the deposition of the above-named deponent to review the deposition, record any changes on the change sheet, and sign, (1), the change sheet, and, (2), the original signature page. Please return both forms to this office within 30 days so they may be filed with the original transcript. LEANNE M. DAVIS, CCR, RPR cc: Michael E. Withey, Alan B. Howard, Paul D. Koethe SEATTLE DEPOSITION REPORTERS (206) 622-6661.
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DURDEN/Withey - 12/17/98 161 CERTIFICATE STATE OF WASHINGTON ) ) ss. COUNTY OF KING ) I, the undersigned officer of the Court, underr my commission as a Notary Public in and for the '78 of Washington, hereby certify: That the foregoing deposition upon oral examination of' the witness named herein was taken stenographically before me and thereafter processed under my direction; That the witness before examination was first duly sworn by me to testify truthfully; that the transcript of the deposition is a full, true, and correct transcript of the testimony; That the deposition was submitted to each witness for examination, reading and signature after the same was transcribed, unless indicated in the record that the parties and each witness waive the signing; That I am neither attorney for, nor a relative or employee of any of the parties to this action; further, that I am not a relative or employee of any attorney or counsel employed by the parties hereto, nor financially interested in its outcome. IN WITNESS WHEREOF, I have hereunto set my hand and seal this _____„ day of January, 1999. LEANNE M. DAVIS, CCR, RPR NOTARY PUBLIC, in and for the State of Washington, residing at Seattle. My commission expires: 02/24/2002. ~ ~SfiATTLE DEPOSITION REPORTERS (206) 622-6661
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!V W ll.cfUVtthtt.y V. kII1IaI' MORRIS ~ I 2SE',7:15 29th 112:20 2:30 159:18 $12 b il lio n 63:2; 65:2, 9, 18; 66:17 $18.6 blllion46:14 ~ $26 billion65:19 $28 billion 63:3 3.1 92:21 $4 66:18 3.2.4 96:22, 23 $40 billion62:23 30 153:14 $5 132:17;133:3 30% 62:21 $5.3 billion 46:13 300 127:10; 128:13,18 300-page 127:5, 19; 1 128:2, 4 31 154:17 10 52:1; 61:23; 67:1; 91:8; 3518 129:13 112:17 11 86:4 91:12 16 23 94 , ; ; : ; 131:2, 3 4 12 105:16; 107:20 126 57:9, 20 400,000 135:21;136:17 12:00 112:11 12:40 112:11 S 13 28:7; 155:17 13th 125:15 50007-0803 141:5 14 93:1,16 14th 94:13,14 50007-0835 142:22 15 93:9 500298700 118:9 167 5:14 5002987129 121:21 175:1;78:1;153:14 500298714124:6 18 100:17 500298741 118:24 1951 16:2 500298750 120:25 1951-1959 121:19 500298796 118:23; 1960s 22:24; 131:24 119:6,15 1964 70:25;124:8 500298803119:18 1969 124:19 50036360 147:18 1970s 22:24; 136:9 501473496 129:13 1973 57:11 502121623 141:5 1975 17:13 50s 114:16 1977 87:15; 88:12;1132; 114:21; 128:8 53 16:9 55 16:9 20 1978 52:1; 55:5; 109:2, 4; , 129:19;137:12;153:14 59 16:20 1979 24:13; 27:22, 25; 32:22; 43:4; 46:11; 67:1; G 70:18; 85:8; 91:19, 22; 93:1,16; 96:7; 97:25; 104:17; 108:6, 13, 21; 62 17:3, 3,17,17 125:16; 140:9; 154:17 67 17:6, 9 1980 62:23; 78:2; 81:19; 96:19. 24; 97:9; 143:7 1982 61:23;62:6;64:15 / 1984 155:2,17 1989 17:14 70s 73:21;104:18 1997 84:3; 112:20 75 17:9,24;132:17 1998 5:1 77 17:24,24;18:16; 24:12; 55:9; 84:8; 113:21 2 78 52:22; 53:23; 84:11, 14,17 25 129:19 79 24:12; 28:1; 84:21; 4 26th 62:6 ; 91:21; 95:10; 109: 128:9, 10, 10; 137:12; 27th 112:20___-^ ~ 143:14; 152:5 Seattle Deposition Reporters 622-6661 8 118:1 80s 20:21; 21:25; 22:2, 12, 22; 72:19; 73:5, 22; 102:9; 103:21, 22; 143:11 81 18:18 82 18:18 85 18:20 8618:20, 22 87 18:23 8706 118:10 8712 121:22, 23 8796 118:11 8803 119:7,19 9 92 17:17,17 98260 5:15 9:00 5:2 A a-c-c-e-p-t-e-d 88:24 A.M 5:2 Aaron 81:8; 126:1 ability 67:21; 68:9, 13,17; 69:19; 70:6, 7 able 7:2, 4;13:11; 27:16; 123:22 above 34:9 abroad 83:5 absurd 137:5 absurdity 134:24; 136:25;138:22, 138:22,253, 6, 7 Acceptability 24:9,15, 22; 30:9, 13,18,19; 31:10, 12; 34:17; 38:23; 41:6, 11, 19; 42:9,11; 47:22; 49:1, 6; 51:5; 63:17; 80:5; 85:2, 4; 87:24; 88:10,17; 92:13; 93:24; 96:14; 97:15; 104:19;105:10;107:3t 112:19,23; 113:14; 117:3, 9; 119:24; 120:22; 121:3, 11; 122:24; 123:8; 125:7; 129:11; 130:5; 136:11; 140:23 acceptabilhy/soclal- cost9o:16 accepted 73:15,18, 21; 88:16, 22, 24 accomplished 41:8; 110:25;111:8 accomplishment 107:6; 106:9; 109:19 according 45:12; 62:7, 8; 66:17,18; 91:22; 131:23 accountability 148:9; 149:8 accounting 134:6 Mzn-U-5 51919 C. DENNIS DUitDEN VoL 1, December 17, 1998 accurate 6:17; 150:12; 151:4 accurately 113:5 achieve 68:18; 69:20; 70:6 across 24:18; 121:25 acted 158:17 action 92:12,17, 21, 22.; 94:8; 95:25; 97:2; 94:24 active 85:12 activist 125:1 activities 29:5; 105:18 actually 51:19;116:20; 119:5; 122:11; 123:3; 127:4; 138:1 add 105:7 added 104:20 addiciive 23:4, 8,14,19; 88:14; 101:6,8 adding 101:24; 105:6 addition 60:5;123:6; 124:4 additive 103:14; 101:17, 20 address 5:11; 42:23; 123:5;150:18; 63:8; 123:6 adherence 121:9 admit 152:18 adult 101:12 advance 74:8; 117:3 advancing 80:1;117:4 adversely 105:9 advertising 29:5; 41:1; 100:8 advisory 152:1 advocate 51:7 advocating 42:20 affairs 17:21; 18:17; 20:4, 6, 7; 52:24; 63:15; 81:21, 22, 25;122:17;144:12; 145:10;146:9,11;148:1].; 149:10, 21 affect 68:12; 105:9; 68:17; 69:19; 70:5; 120:21; 121:2, 10 affiliates 24:21 affiliation 63:19 afterwards 18:11 again 25:11; 33:7; 38:1; 43:2; 50:17; 51:24; 56:8; 59:1; 60:2; 66:15; 70:3; 77:24; 91:14; 98:24; 104:12; 105:16; 106:3; 111:14; 119:12; 129:15; 132:13, 21; 133:8, 8; 137:23; 141:3; 142:20; 151:20 against 29:10; 48:2, 4; 102:8; 159:2 age 100:17 agencies 37:20 ages 100:1 ago 75:18; 157:8 a g ree 42:1; 45:19; 47:18;_ 51:18, 22; 67:16, 23; 98:14;99:11;100:1,4,6, r 16; 101:4; 105:4; 116:2; 143:16; 39:2; 41:14; 92:23 agreement 61:11; 159:19; 11:3 ahead 21:10; 31:7; 37:11, 12; 53:17; 56:4; 59:4; 66:8; 70:2; 79:20; 80:20; 95:6; 97:1;11.0:13;112:8; 134:25; 143:21; 147:20; 150:15; 153:17; 155:19 aid 11:13 alcohol135:2;i36:15; 137:17 alert 82:25 alike 29:15 allegation 34:21; 133:7; 34:2, 8, 9; 64:12; 72:12; 73:2;133:12;152:23 alleged 11:17; 34:10, 20; 36:5; 45:18; 56:8; 74:11; 76:14; 77:3, 20;132:20; 135:3;143:24 allegedly 131:5, 9 allow 18:12,13; 98:17; 102:1 almost 112:7 along 57:16 aloud 29:1 although 14:20; 26:15; 108:14; 141:13 altogether 34:3 aluminum-foil 19:6,17 always 49:5; 148:16; 152:7,13 American 31:25; 79:23, 24,24 ammonia 101:19, 24; 103:14; 104:19; 105:6 amongst 32:7; 88:6 amount 65:8 Amsterdam 84:20 analysis 55:14; 125:21, 25 analyze 80:6 analyzing 127:10 and,ff 104:8 and/or 33:20; 59:8 announced 88:13 Annual 121:18 answered 48:10;75:9; 138:5 anti 124:18;95:5,9; 108:10 anti-free 157:17 anti-smokers 157:6 Anti-smoking 47:16; 51:8,12,18; 54:24; 55:12, 19, 21; 58:20; 79:4,10,14; 80:7,17; 81:2; 82:12; 88:7, 25; 95:12,18; 119:20; 120:11; 122:6; 125:2,21, 25; 126:2,11,25; 127:5, 11; 128:2,12,24; 157:21; . 6164 (1) $12 billion - Anti-smoking
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C. DENNIS DURDLN Vo1. 1, December 17, 1998 Page 132 [+I "social cost tax"? tzl MR. WITHEY: A tax. (al ]n] 0: Do you see on the next page the statements made [sl by Secretary of Health, Education and Welfare lel Joseph Califano? m A: Right. lel Q: And Califano was understood to be one of the [sl proponents of the fact that smoking was causing hol medical expenditures and other costs to society, I++] correct? 1121 A: That's right. (,al 0: And again,the cite in this document refers to h<I the enormous quote-unquote economic toll that tts) those diseases impose upon society. hsl A: That's right. I tl Q: And it's been estimated in '75 between $5- and $7 nel billion were required to treat smoking-related [ts] illnesses, correct? Izo] A: That's what's alleged, yes. R1I [nI statements made in the public about the cost to Inl society of snloking•related illnesses -- A: Yes, I had forgotten that. 0: And again, as before, this document reflects the R<1 A: Of smoking. as] Q: - and other illnesses. III A: The social cost of smoking.That's right. Page 133 m 0: W'etl, this one refers to specifically to treat (3) smoking-related illnesses, correct, the $5• to $7 I+I billion figure? (nl P1 A: Well, if that's what he says. Q: Right. A: That's his allegation, yes. 0: So, again, tttis was one of the coucerns, again with this third report, that the industry was trying to grapple with of how to answer --- A: Come up with a position to answer these allegations, right. 0: Then, on page 13 it talks about the current position of the industry on the social-cost issues, correct? A: Yes. Q: Is that a fair sunuttary of the -- A: Let me read it, would you? Q: Of course. A: just give me a minute. (Witness reviewing document.) A: Yes. 0: And so then the next page deals with "avenues to R<] explore for a countermeasure strategy." Do you 125] see that? rage 132 - page 135 (36) NW LABORERS v. PHILIP MORRIS Pago 134 I+I A: "Avenues to explore for a countermeasure ...' - tzl yes, I see that. f31 I^7 0: including "Refute the charges." A: Right. Isl Q: In other words, there are no social costs, it's (s] just bad social accounting or bad - PI A: £sxplore that, see if that's - see, that's a (al possibility. Is1 Q: Well, it doesn't say "explore," it says, ,o] "Demonstrate that the numbers and assertions are i tl false." Do you see that? [121 [t31 n<1 A: Yes. MR. HOWARD: Objection to form. 0: Did I read it correctly? ltst A: You said it said "demonstrate" and I said (is] "explore." Q: But the term used at this time was what? A: Was "demonstrate." Q: Demonstrate what? A: That the numbers and assertions are false. 0: All right, and what's the next strategy that's rz21 a countermeasure? tz3] A: "Put them in perspective and reduce them to Iz41 absurdity." asl 0: Go ahead. Page 135 Iq A: "Demonstrate that overeating, coffee, sugar, lack (21 of exercise, fats, alcohol, etc., are also pl alleged to generate social costs. If tobacco use Wl is subjected to attack, these and other behaviors (s1 should also be indicted,attacked and otherwise (sl discouraged." fn 0: Now, do you think sugar kills as many people as IBl smoking cigarettes does, Mr. Durden? [sl [101 (i+I [+71 MR. HOWARD: Object to the form. A: I have no knowledge of that. 0; You don't know? A: I don't know, [+31 Q: Do you know if coffee kills as many people as /t<I tobacco does? lul MR. KOETHE: Object to the form. 1161 A: Does coffee kill as many people? I don't know t+n how many people are supposed to be killed by t,sl cigarettes. I just really don't know the answer 1191 to your question. 120] Q: Well, do you understand the Surgeon General has tz,l placed that at approximately 400,000 people a tz2] year? Irel A: Now I do. Iz<I 0: Did you then? asl A: No. Min-U-scripto Seattle Deposition Reporters 622-6661
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C. DENNIS DURDEN Vol. 1, December 17, 1998 Pago 140 (,) Q: Well, the other documents indicate that you t21 wanted to explore what the supposed benefits Pl were. (41 (sJ (61 A: That's right. Q: Did you ever find any, of smoking? A: As I said before, the benefits or smoking that m we've identified were mainly economic benefits. lel Q: Do you believe that it's appropriate to say that (el if the position was put forth in 1979 that the (101 benefits of smokutg outweigh the social costs of (] smoking, that such a statement would be deceptive t+pl or wrong? 113] MR. KOETHE: Object to the form. 1141 A: I have no idea.The thing that wee were --- that (tsl was being proposed was an exploration of what it t761 was. t rl Q: And you don't have any idea whether that pal exptoration ever bore fruit, then. n91 A: Not to my knowledge. Not to my recollection. tml Q: Well, let me ask you if you have reviewed a ml document called "Social Costs/Social Values" tnl that was eventually dr.tfted and was published by t2ai the ICOSI and Social Acceptability Working Party. tx<1 A: I don't recall the document. tzsl 0: This is a lengthy document. I would prefer not Page 141 19 to mark it as an exhibit unless you recsdl it. 121 If you do recall it, then we'll have it marked. pl It's a document again provided us in (+I discovery by 1(IR in this case. It's bearing the tsi Bates number 502121623 through 50007-0803. 161 Showing you this document,which, for the m record, has been marked as Exhibit No.8 to the (el Narr deposition previously held, I want you to (sl tell me, sir, if you've ever seen this document (101 or recall the document. Please take your time to D+l look through it. (i21 A: (Witness complies.) I don't rernember this (+31 document, although I don't think it was during my tial watch. 1161 Q: Do you recall seeing drafts, or do you recall the psl words that you are reading and o the topics you I+r) arc reading seent familiar to you? ( el A: I just can't place it.l don't think I've seen pal it, but I don't remember, (201 0: Do sonic of the topics discussed in there seem -a+l familiar to you, sir? r;21 A: Oh, I see.It's issue and answer instead of rrol issue and position. I see. tzy -: Yeah, sorne of these topics, like 'smokers t2si should pay extra tlxes to compensate for their Page 140 - ),agc 143 (38) t+r) impact, at least during your time, you were t+al concerned about. lisl A:Okay, (20l Q: Read the first sentence under "Impact." Go (2t1 ahead and read it out loud, the first sentence, R2] A: "Any substantial increase in health taxes or any r2al other method of making cigarettes bear an t241 increased proportion of their alleged social tzsl costs would have a direct negative impact on NW LABORERS v, I'HILIP MORRIS Page 142 (iI excessive medical" - yeah, I've seen some of t21 these topics, or I've heard discussion, but I tol don't get the totality of this. (4] Q: Fair enough. (s7 A: When was it done? Do we know? (el 0: Let me see it. m Well, it doesn't apparently bear a date. (e] There have been people that have been questioned tsl about this and that identified it as a document Iml that was produced, but I'm sorry, I don't have an (t tl immediate answer for you on it. 1121 Do you recall a Dr. Sherwin Feinhandler (13] (phonetic)? (14] A: No. [+sl Q: Now, do you recall RJR putting forth a position t+sl paper on the social costs of smoking? p> A: No, I don't. (181 (Exhibit No.15 marked ttsl for identification.) (zo] Q: This is an exhibit, again provided to us in r211 discovery from 1ZJR, bearing the Bates number rz21 50007-0835, entitled "IZJR1' Position Paper- tzsl Social Cost of Smoking." t241 Taking a look at that, does that refresh resl your recollection as to whether R]RTobacco had a Page 143 t+l position paper on social costs? rn A: Well, they don't have a position, is the first tal tlting I notice. (4) 1 don't remember this.I don't remember tsl this, but it just says, "Social costs is currently Isl the subject of INFOTAII." Now, the fact that it says m"INFOTAB" means it's, what, 1980, or it's later then, (el which would quite possibly explain why I don't (sl remember it, because it was called "ICOSI" and then (,ol they changed it to "INFOTAB," as I remember. [+t] 0: That was changed sometime in the early'80s.Is h21 that your recollection? (+31 A: I think it was - you better not rely on my (141 recollection, but - it was after '79, but it was (isl about the time Julian Doyle came on. tts] 0: Let me ask you whether you agree that this was an Min-U-Scripto Seattle Deposition Reporters 622-6661
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IN w r.Alsvitc:KJ v. PHTLYC' MORRIS Page 144 [+I industry volurne and pricing flexibility," tzl Q: Did you believe that at the time? (3) MR. KOETHE:: Object to the form, tal A: I wasn't in the tobacco company at the time. [sl I would - they said it would. tsl 0: That was something you discussed even when you m were chairman. lel A: I believe that, but I don't - I can't respond to [al this specific thing here (indicating). Iwl Q: Now, was either ICOSI or SAWI' a public t+a organiration; in other words, one that was quoted I+zl in the press or in the public affairs or referred p3l to by the company in its press releases? (141 A: I don't recall. I think INFOTAB - that was to [,sl be the role of INFOTAB. (161 Q: But I'm talking about ICOSI and SAWP.Before pn INFOTAB, it wasn't as public, or it wasn't public, Iiel correct? hsl MR. KOETHE: Object to the form. real A: I don't k.now.l don't knmNtYou shouldn't rely tz+l on me for the information on that, tnl 0: The member companies funded ICOSI, correct? >ra A: Yes. a=I 0: And did the tobacco industry also provide funding resl for ICOSI? _ Iq A: I have no knowledge of that. til 0: Do yott recall how much RJ. Reynolds provided to Ial ICOSI or SAWP for its work? 1v7 A: No, I don't. I know there Nvas a budget thing (sl that we looked at earlier today, but I don't know (sl what period that was for or whcther that was just Irl for ICOSI. tal Q: Did there come a time when it was decided within ry] IZ,1R that issues related to your work should be pol handled by the 1t,IRT'obacco public affairs rather I+,I than your shop? (+21 A: Yes, that was one of the internal things that was I+3I Set up,was that they would create their own I+41 public-affairs capacity. psl 0: Was that clone? (161 A: Yes. (in Q: Was there a Mr. Hobbs that you were familiar pa with? [+sl A: He was the president of'the tobacco -- the CEO of tzol the tobacco company. 112 11 Q: And was it his desire that these issues should be cnl dealt with under IZ1RT'obacco as opposed to Is,11t In] Industries? tz+l A: I thirtk it was the gener.l desire of all Rsl management, but, yes, I would say it was his Page 145 C. DENNIS DURDI;N 'troL 1, December 17, 1998 Pago 146 t+l desire. (2) Q: And that essentially meant that the duties that (3) you had undertaken would be shifted to Tobacco, [<] correct? Isl A: Yeah. I went back to doing the other things in • (s) trying to get my arms around the rest of my Irl portfolio. [B] Q: Which was what? Isl A: Which was the general public affairs. [to] Q: And you were at that time vice president of (i1] public affairs -- (i2) A: That's right. [t31 Q: - of$JR Industries. [ta] A: RJR Industries. (tsl Q: Right.And soThe responsibility, if you will, [16) for carrying out the work as it relates to SAWP, [tn and ICOSI shifted from I~R Industries to ISTR t,al Tobacco; fair enough? (+s] A: Yes, but a lot of the work had already been being (aol done in the Tobacco through Jim Hind and others. [21] 0: So you worked together with IURTobacco tzzl throughout your tenure to help develop these [2al programs. [xal A: That was the only way, yeah. When I was doing tzsl SAWI'. Page 147 hl Q: So SAWI; even though you chaired it, was fully m supported by RiR ReynoldsTobacco, correct? tal [a[ Isl tsl A: That's right. 0: And Mr.liind was the main person there? A: He was my liaison, yes. Q: Who else worked on the SA\GP while you were chair In from the tobacco part of IZ1W [a] A: I don't think anybody else came to the SAWI? If Isl you give me a name, I can recall, but I don't - o] there was a list of them somewhere here. ++] Q: Well, I'll tell you what, let me show you a 12) document and maybe this might refresh your 131 recollection.There are a couple of names on it si v) F.~ u 0) . ~., tq A: Yes, I[+sl (Exhibit No.16 marked (+sl identification.) [+rl 0: This is a document provided in discovery from RJ tn U? R [tel Tobacco Company, with the Bates number 50036360, [iel from someone named Becky to a Mr. CT; but your (aol name is on the document. Go ahead and take a R,] look at that, sir. I have some questions. [zz] A: (Witness complies.) You reminded me of who Nar r tzal was, and he did go artd work at the tobacco 1241 company. David Narr, He came up earlier today. (zs) 0: Right, thank you.You now recall him? Seattle Deposition ItePorters 622-6661 Min-U-Scripto (39) Page 144 - Page 147
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l\ w Lr1UVlC1aU V. YffiLIJP MOR1t1S III tl Q: Did you find out? A: I found out from you just now. Pago 136 tal 0: You mean the first time you found out how nrany (4] people were killed in this country from smoking Isl cigarettes was when I told you it? (sl MR. HOWARD: Object the: fornt, [n A: How many people the Surgeon General said were Iel killed by smoking?Yeah. (s) Q: Well, did you have any interest in the 1970s, tml when you were dealing with the Social p q Acceptability Working Party, to find out the I1zl comparison between how many people were being (tal killed by cigarette smoking every year as I+n1 compared to overeating, coffee, sugar, lack of psl exercise, fats, and alcohol? 1161 MR. HOWARD: Objection; form. pn A: Well, what we were dealing with in the 400,000 liel people, as we had constructed the policy issues, (isl that's called the primary health issue, and I [zol frankly had very little to do with that. 1711 Q: I'm asking you a different question. Under this tnl approach - which of course you were the chair of (ra] the SAWF at the time - one of the countermeasure tzal strategics was "Put them in perspective and 1261 reduce them to absurdiry," Pago 137 I+I MR. HOWARD: Objection; ntischaracterizes tzl the document. pl A: Wcll, this was one of the things to explore as a t<I possible."I'his is not what we were going to do. (sl We didn't assert that they were absurd,we said tsl put them in perspective, see if they were. m Develop a policy. Isl 0: Were they? Isl A: I don't know.We never got the policy during my (iol watch. (i,I Q: All right.Wcll, let me ask you this: Do you (tzl think in 1978 or '79, on your watch, that there 1+31 was any chance, any possibility, that you could n<I demonstrate that smoking and its effect on human hsl toll could be in any way equal to or less than psl the effects of overeating, coffee, sugar, lack of pr( exercise, fats, alcohol -- which supposedly pel generates social costs - (+al MR. KOETHE: Hold on. [zo) A: We didn't say it would be less. We said put it (zil in perspective. (zzi MR. KOETHE: For the record, I'm objecting Irl to the form, and again it's a mischaracterization C. DENNIS DUI+LDEN VoL 1, December 17, 1998 Page 138 (il of overeating or coffee use or sugar actually ni killed people? pl MR. KOETHE: Same objection. Ial Q: At the time. (sl MR. KOETHE: Asked and answered. • (sl A: I had no knowledge.The point that I was making m here was we should explore to see, and put them tel in perspective. PI 0: But the proposal was to develop a counter (10l strategy that had that as one of the ideas. (ttl A: No, the proposal was to explore, avenues to (t21 explore. (131 Q:Okay. (tal A: Okay? t+sl Q: For strategy.And you thought it was legitimate l sl to explore the avenue that somehow overeating, nn coffee, or sugar might cause social costs that in (tsl any way, shape, or form could be equated to (1s1 cigarettes, (zol A: I thought we should explore it to see the tnl relationship, to put them all in perspective. a21 Q: And reduce them to absurdity, correct? That's Izsl what you were going to explore. rz<I A: See if they could be, yes. nsl Q: To be reduced to absurdity. Page 139 t+l A: To see if they could be put in perspective pl and reduced to absurdity, that's right. pl Q: Were they ever reduced to absurdity, sir? WI A: They were never put in perspective, to my (sl knowledge. (sl 0: Were they ever reduced to absurdity? m A: They were never reduced to absurdity. (sl 0: The third proposed or exploratory countermeasure (9] was to state that the "benefits outweigh any [101 costs,' correct? . ntl n21 A: That's right, Q: And the proposal was to demonstrate that even if It3t smokers do generate extra social costs,which you (ul deny, they are far outweighed by the social [+sl benefits, quote-unquote, that most certainly (tsl generate. Do you see that? nn A: That's right. [+e] Q: Did you ever draw the conclusion that the costs liel of smoking were outweighed by the benefits of Pn1 smoking? ntl A: No, never was. tnl Q: Did you ever reach the opposite conclusion? trel A: Did I ever reach the opposite conclusion? To my Iz+l of the document. (za( knowledge, I have no knowledge of its being Psl Q: Wcll, did you have a belief that these patterns (zsl explored. tn F., ~ r+ lD U1 J Seattle Deposition Reporters 622-6661 riiin-U-Scriptl~ (37) Page 136 - Page 139
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2. SPORT F3IS.OaY TO DA'Pu 1. B ri•e,fl_v, ICOSI has been developed and has ta3cen shape 3ince June 1977 through a series of meetipqs attended by Officers and Rcprosentatives of the seven fcundar companies. 17e priiocipal n,eetjngs have bcen: June.1977 Her.'cshirp, Snqland, 'Eiost - Imperial Novenber 1977 Lausanne, Switzerland, Host - Philip Morris March 1978 Hamhurg, Gesnany, Host - Ree:atsma August 19•78 Winston-Salam, U5A, Host - Reynolds Septesber 1978 Leeds Castle, England, Hast - BAT Februa=y 1979 Amstcrdam, Rolland, Hoat - Bot_ilmans ` 2. During this time and by these aeetings the f•.mdanentals of ICO9T's polivy., gorM, •orwanisztion, °i.nzncing' and wor.k- pro,xa=.es havk; been settled. 3. ICDS2 has a Chartsr and is constituted as a non-proElh Association govexnod by Ayticles 60 throuqh 79 oP :.'se Sw+ss Civil CoF;e. The statutory office of the Aasociation is cs4ablished :Ln the 6anton of Geneva, Switzerland. N G O CJ ~ ~ ~.., W «' r ~
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1V W 1.t1UV(ltlt(J ~'. PIIII.nP r10IUUS Page 1S2 Ip international advisory conmlittee, and I helped p1 with contributions. 131 0: You were taken off of the assignment you had to l41 SAWP, correct? Isl A: I was taken off that assignment in '79 -- that Isl was when I went off. I went off.That was m always planned, but it was subsequent, a couple, (9) three years later. Isl Q: Do you recall efforts to pass by documents that 110] were generated by ICOSI or SAWP by attorneys on t,tl behalf of either Philip Morris or It,1R? 1,21 A: No. We had attorneys that were with us, but it Ii31 w'as always - my understanding of that was the (»1 usual rituals so that you didn't get together and ns) talk about industry business matters. hsl Q: Did you understand that there was a concern that nr] anything that would be published or written either I+sl by ICOSI or SAWP should not admit that smoking (+91 caused health hazards? 1201 MR. KOETHE: Object to th.e form. 1211 A: I didn't know that that was the -- a policy. I tzzl did know that the policy of the company was to tz31 say that there were allegations based on n+l statistical correlations, when it came to the tni primary health. Page 153 111 0: Do you recall an individual named Don Ifoel, f21 11'0•c-I? 131 A: tle was a lawyer from Shook, Hardy & Bailey. !41 flow's that for grabbing it? Isl 0: 7'hat's unbelievable. Isl A: For me it is. For me it is. Fl Q: And this lawyer from time to time would make [al edits or suggest changes in documents that you (sl were involved 1vith or aware of, correct? po] A: I didn't know that.I w~tsn't aware of that. pq (Exhibit No. 17 marked (iz; for identitication) (131 Q: Handing you what has been marked as Exhibit 1141 No. 17, this is a June 30, 1978, letter from Mary f+sl Covington of Philip Morris International to hsl yourself as vice president of IUR Industries. Go yltl ahead and take a gander at that, particularly the (1al first two par.igraphs. (rel A: Oh, this is the public smoking paper. Rsl Q: kight. (zq A: (\Vitness complies.) rai Q: Does that refresh your recollection about the (z3i role of -- (z41 A: No. Obviously, this happencd, but - ;zs] Q: Let me just ask the question. C. DENNIS DURDEN vol. 1, December i'7, 1998 Page 154 K (,] A: Yeah. rrl 0: Reading that document, does that refresh your (3] recollection of the fact that at least Mary (4] Covington was informing you that a draft of the (s] ICOSI public smoking paper had been edited by (sl Shook, Hardy & Bacon, the law firm? p] A: I take this as - yes, Mary wrote me that, (e] That's the extent of my knowledge. Is] Q: In fact, Don Hoel was on one or more of the ICOSI t+ol committees, was he not? (1q A: I don't know that, 112] Q: Well, let me show you a document to see if this (1al refreshes your recollection. I don't need to 1141 mark it.This is a document marked as Exhibit (,s] No.9 to the deposition of Richard Marcotullio. (161 It's an MR intercompany correspondence dated t+n Oetober 31, 1979. It's a memo from himself to Itel Mr. CharlesTucker on "ICOSI International (1a) Symposium on Public PIealth" indicating who was on (xo] the steering committee of the SAWP countermeasure (zil subcommittee. tal A: I'm gone from the scene by this time. I don't - R3I I don't recall this. 1241 Q: You don't recall Don Hoel being on the executive (zs] committee of countermeasures subcomittee of SAWP? Page 155 A: No, I don't. I really don't. 0: Now, as late as 1984 you continued to be involved, were you not, in reviewing what was called the "Social Costs/Social Values" morlograph or article for IZTR? MR. KOETHE: Object to the form. A: I don't remember that. I don't remember that. If you could maybe refresh my memory about that. Q: Let me see if I can. A: Because by this point I would be wearing my public policy hat, so something may have conle by me, but --. 0: Let me show you what has been marked as Exhibit No. 16 to the Marcotullio deposition.It's a memo from yourself to Mr, Marcotullio. A: Okay. 0: It's dated November 13,1984," "Subject: Comment on Your IIVFOTA33 'Social Cost' Monograph."Why don't you go ahead and take a look at that. In A: (Witttess complies.) N (1) (zl t31 (4] IS] 16) VI lel 191 (+e] 1~1 (121 113/ (141 (1sl (1s] h>I [181 (191 Rol (x1] Q: Maybe I have an extra copy of it here. In) (Exhibit No. 18 marked p31 for identification.) (z4] Q: What has been marked as Exhibit No. 18 is the ('is] letter from yourself to Mr. Marcotullio that we Seattle Deposition Reporters 622-6661 Min•U•Scripttv (41) Page 152 - Page 155
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C. DENNIS DURDEN 'vol. 1, December 17, 1998 1583,13;159:12 anti-tobacco 95:11 antismoking 87:23 anymore 158:25; 159:1 apart 34:2 Apparently 35:11; 44:17; 54:12;109:2;142:7 appear 70:5; 119:2,20; 10:25; 67:20; 119:11 appreciate 17:23; 39:22; 104:13; 6:5 approach 136:22; 29:17; 130:19; 72:19 appropriate 98:8; 100:13:126:12;140:8 appropriately 13:19 approval 89:3; 90:23 approve 89:12, 8,11; 90:11 approving 90:12 approximately 135:21 April 27:22, 25 Archer 19:6,17 a rea 20:1, 5; 88:9; 151:12; 87:24; 89:1; 92:21, 24; 94:8, 23; 97:2 arguably 58:9 a rg ue 48:7; 74:13; 75:15 arguing 74:16 Argument 35:1; 36:7,11; 38:1; 39:1, 3; 40:3; 74:6, 7, 8;76:6;77:19;41:14; 70:12 arms 146:6 around 14:5; 22:2, 22; 72:2, 18;82:21; 106:21; 108:21; 146:6; 1582(; 159:1 arrows 122:5 article 52:9:54:17,18, 21; 56:22; 59:5, 6,19; 61:17; 62:4; 64:2, 24; 155:5; 70:19; 115:21; 157:11 aspect 20:6 assembled 118:16 assert 137:5; 11:17;38:5; 45:15;131:4, 7;13:13; 131:19 assertion 13:5,12; 134:10, 20 Assessment 67:3; 69:18 assignment 24:17; 152:3,5;105:21,23;111:7 assist 126:11 assistant 18:21 associated 21:22; 22:3, 13; 23:1, 17; 33:10; 36:17; 37:14; 73:10, 20; 89:24 association 24:13; 7.9:23, 25;156;22; 29:15; 85:7,15;86:7,11,12; 110:17;115:5,7,9 assume 6:7; 15:5,6; 62:6;95:9,14;115:1; , 12721;146:5 121:12 assuming 49:23; 104:23; 121:13 assumption 34:12 Atlanta 15:16 attach 62:4; 14:6;129:18; 52:9 attachment 7:1 attack 29:7,11; 42:18; 47:6,11; 48:7; 55:2; 79:3; 135:4, 5; 29:4 attempt 73:24; 121:6; 93:24 attend 83:4, 7;12:13; 83:12; 84:2; 106:4 attendees 157:16 attention 32:10; 33:1; 35:18; 40:17; 43:16; 47:4; 54:9,18; 56:25; 57:19; 61:20; 63:7; 78:6; 79:7; 87:14; 89:14; 113:10; 125:19;130:16 attitudes 106:20 attorney 10:10; 13:20; 7:15:103:2;152:10,12 attorneylclient 9:21 attributed 43:8 audibly44:4,11; 62:2; 76:10; 86:9; 92:15; 106:7, 12;107:10;11.1:23 August 84:13;129:19 Australian 86:2 author 45:3; 126:9; 123:25; 124:2 available 14:19; 29:12; 82:5; 125:6 avenue 138:16; 59:8; 133:23;134:1;138:11 avoid 123:3; 148:24; 149:24 aware 36:24; 38:22; 45:12; 6f:17; 70:18; 89:15; 96: l0; 101:17,19, 21, 22, 24; 102:4;124:9, 11;128:4;150:22,24; 153:9,10 awareness 22:16;61:14; 73:4 a way 32:17; `14:16; 148:15 axis 121:25,25 B-2 107:20 Bachelor 15:25 back 17:1;18:18; 38:4; 39:164116;42121; 43:19; 46:1, 5, 21; 62:5; 67:4; 71:14; 73:21; 7-/:16; 83:21; 91:11; 97:29; 102:21;103:21;104:17; 108:15;109:11;111:3; Background 130:22 Bacon 154:6 bad 47:12; 48:8,16; 55:17; 69:14;134:6, 6 Bailey 153:3 Baltimore 16:22 based 45:11; 64:24; 65:13; 69:23; 77:14; 87:21; 94:7, 21; 96:5; 118:13; 122:16; 125:4; 152:23 baseline 106:20 basic 27:20; 30:20; 31:12; 33:21; 46:10, 21; 68:17; 69:18; 70:2; 73:15, ' 18;117:6,7 basically 34:15 basis 9:19; 20:23, 24, 25; 21:2; 29:14; 51:23 Bates 27:8,11,12,15; 118:3,9,14; 120:23; 121:20; 129:12; 141:5; 142:21; 147:18 battle 29:10 bear142:'7;143:23; 34:11;112:19;141:4; 142:21; 42:25; 113:11 became 52:23; 58:8 Becky 147:19;148:6 become 29:6;158:22 beforehand 18:11 beg 78:24 beginning 13:10; 21:5; 69:23; 78:1.1;114:23 behalf 152:11 behaviors 135:4 belief 22:25; 23:18; 48:25; 122:17,23; 137:25 believes 114:18 believing 22:12 bell 30:24; 80;13,14; 87:8 below 126:9 benefit 6:2; 49:7; 50:1, 6, 24; 51:1; 52:10; 74:20; 50:20; 34:13; 47:14; 49:3, 8,11,20;50:10,13,14; 74:3,12, 23; 75:4, 5,71 11, 11; 76:2, 8,15; 77:3,11, 20; 139:9,15,19;140:2, 6, 7,10 Berkshire 84:3 Besides 56:14 best 97:25; 108:22; 113:4,7;131:17 46:4; 65:20; 67:6; 72:4; 121:24; 122:2 bit 26:8; 76:20; 151:2, 2 blood 102:1 bloodstream 104:22 blowing 66:24 board 106:3; 151:24 book 113:22 bore 15:9;140:18 borne 33:18; 34:5; 58:11, 12; 65:3; 75:21 boss 53:10,18;151:19 both 33:15;45:5 bottom 27:9; 47:6; 53:6; ' 62:8, 9; 88t2;120:24; 121:25; 125:24 bought 17:14 Box 5:14 break 14:19; 26:8, 21; 112:9,15 brief 26:21, 22; 69:23; 77:14; 83:24 briefcase 12:5 Briefly 13:7 Brler 54:1 bring 42:18; 54:8 British 31:25 bronchitis 36:19 brought 49:9; 104:1 Brussels 83:7, 8;125:16; 126:19 budget 64:5;145:4 burden 37:17,18; 383, 15; 39:5; 41:16; 65:23; 66:1, 16; 149:25 Burman 26:3, 4; 28:13; 48:18; 107:13; 111:20; 126:6 Bush9:11,12,1.5;10:5, 21;11:7,15;12:9,12; 13:25; 14:12; 15:7; 21:15; 28:20; 66:10; 82:4; 88:21; 91:25; 92:2; 104:9; 111:3; 118:5,11,25;119:8,11; 150:17; 13:21 business 54:22; 55:15; 61:24; 62:4, 9; 64:9; 65:1; 152:15; 157:6, 10, 11; 158:1, 9; 56:11; 64:10; 66:20 Bynum 53:25 C better 11:10; 27:14; Caglarcan 63:21 55:24; 56:1, 7;101:3; calculate 62:18 123:16;143:13 Califano 132:6, 8 beyond 34:9; 4121; call 14:14; 64:25; 65:25; 128:20 108:4; 120:11; 131:22; Bill 25:12;44;14; 53:24; 158:4,13; 16:17; 19:6; 54:1; 62:21;150:6; 39:7; 24:4; 32:20; 42:12; 78:7; 64:8; 75:23 121:10; 128:23; 129:10; billion 46:13; 66:18; 136:19; 140:21; 143:9; xNV LABORERS Y. PHILIP MORRIS 82:1; 95:19 came 21:20; 22:2; 24:18;' 26:1; 50:18; 63:18; 103:16; 143:15; 147:8, 24; 152:24 campaign 51:18;97:4, 16; 98:8,12 can 6:17; 8:6, 2 1; 9:9; 10:20; 15:5,14; 17:18,23, 25; 18:10, 11; 21:14; 23:7; 25:2, 20; 27:24; 29:10; 31:1,3,7;32:8,16;33:1, 4; 37:12; 40:9; 48:11; 55:13, 23; 64:15; 66:5; 75:13; 79:20; 80:15; 90:3; 95:16; 97:4, 24; 98:1; 100:21; 112:8; 113:7; 118:7, 21; 125:8; 127:8, 13, 14, 25;128:1.1,18; 147:9; 149:5,17; 155:9; 157:1; 158:20 cancer 21:6,17; 36:18; 71:20; 79:24; 89:25; 90:8; 115:11,14,18 capabilities 148:17 capacity 145:14 capital 44:1 care 34:22; 39:15; 40:4 carry 89:5; 146:16 case 5:17; 8:18; 11:22; 23:9; 117:6,7; 141:4; 27:5, 10 cash 46:15 caste 126:7,16 Castle 83:14; 84:16; 106:4; 108:17,19; 109:1 categorized 1.26:7 category 126:8 caught 10:23; 11:5 causal 124:16 cause 71:7, 9; 73:5; 81:24; 89:17,17; 99:23; 115:7;138:17; 21:6; 33:14,14; 62:19; 63:4; 71:16; 72:14,15; 82:15; 90:7;152:19;70:21;115:2 causing 58:9; 71:23; 132:9 Center 16:23; 86:15 CEO 18:21;1.45:19 certain 23:11; 34:13; 99:17,18, 22;107:5; 115:17 Ln L+ certainly 30:11; 70:18; ~ 4+ 73:4; 98:2;126:23;139:15 kD cessation 34:25 cetera 120:5 0, F., chair 24:11,12;126:19, a, n 24; 127:23; 128:1,8; 136:22; 147:6, 1 chairman 30:9; 93:6; 112:24;113:1;144;7 chairperson 30:8; 129:15 challenges 126:13 22:14, 24; 54:13; 60:25; 1 115:18;118:5;120:8; 1 132:18;133:4; 45:14,17; 155:4; 57:18; 63:6; 80:18; 1 chance 59:9;137:13 antl-tobacco - chance (2) Min-U-Scr:ipt(D Seattle Deposition Reporters 622-6661
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C. DENNIS DtIRDI.N VoL 1, December 17, 1.996 Page 116 In 0: So even though that tvas the position of the t21 industry, you didn't necessarily agree with it; PI fair enough? 1<I A: Fair enough. I didn't necessarily disagree with (s7 it, either, Isl Q: Youquoteinthisintroductorystatementthewarning m on the Surgeon General's report. Do you see tal that? (9l A: Where is that? 110) 0: In the last major paragraph or full, complete (,i( paragraph on this page. (+21 A: No. I'm just saying that that could be the kind (,al of label that could eventually conic out. I think (+<I that's what I'm saying there.That's where I saw (isl present trends going -- existing trends then [,sl going. t+n Q: Towards a stronger statement? I+e] A: Oh, yeah. psl 0: Such a stronger statement, the way you've rzol characterized it, actually was never placed on (z+l the warning labels, correct? tnl A: I don't know. pl Q: You see the health issue and the R<I social-acceptabitity issue very close:ly tzsl intertwined, correct, in this document? Page 117 (i) A: I aas saying in this document that you could r+ot m have had -- that I felt that the social- pl acceptability issue would not have been atlvanced (al unless and until the people who were ademcing it Isl felt that there was no longer any need for them (6) to try and prove the basic health case - in m their mind the basic health case was proven - (el thereforc,they could go on to social p1 acceptability. [+ol 0: And I see it was your position that you didn't (nl want to concede there had been such a health 1121 victory, correct? I+3I A: No, I was not saying - I.vas saying,This is (+I what I think the positions of the industry are, I,sl and this is what I think the positions of the t+sl opponents of smoking were. t+n 0: I understand, but in this document you are making nel the point that as far as the tobacco industry is (,sl concerned, there has been no such "health (zol victory," as you've described it, correct? ISQ A: The industry did not concede that there had been azl a health victory by their opponents, ml Q: Right. Now, do you have the next page that I R+I qtgged for you? Rsl A: The next page that you tagged is "I'roccdural NW LABOREI{S v. PHTLIP MORRIS Pago 118 nl Steps - Revised, 8." hl Q:Okay. 131 MR. HOWARD: Could we have a Bates number, tnl please, [sl MR. BUSH: Did you Avant the back side of lsl that? I noticed it's two-sided copying. p7 MR. WITHEY: Yes, that's fine. He can (el start with that, (sl Q: It's 13ates No. 500298700. t~l A:-87o6. (++I MR. BUSH:-8796. I,21 MR. HOWARD: I would make an objection (,31 for the record based on that.The copy we were 1141 given has this as one document, but the Bates (+sl numbers are not in order. I don't know how it (16] was assembled. I+n MR. WITHEY: Well, I think it's because I+el the document itself has various revisions, but (,sl the document is as marked, and there is some (zol continuity here. R,1 Q: You can see from reviewing this document that tnl there is a list of organizations that are listed rrl on what has been marked as 500298796 (z<I through 500298741; is that correct? (zsl MR. BUSH: Mr.Withey,just to clarify Page 119 (,) your question for the record, are you referring rzl to the pages in sequence as they appear in the lal exhibit when you say that? (e) MR. WITHEY: Yes. (s) 0: Actually, let me just say that there's (el organizations listed in 500298796 through m -8803; is that correct? tal MR. BUSH: I'm mainly checking to see if rel they are in order in the exhibit. I+ol MR. WITHEY: That's fine. (+n MR. BUSH: It appears that they are in (,al order, so why don't you direct him again to those (+al pages. [+nl Q: Do you see the first page I have in front of ine, (+sl 500298796? (,sl A: Right. 1+71 0: And then there's a list of organizations that (+al goes all the way over to page 500298803, correct? (,sl A: •8803,right. Rol 0: And these appear to be anti-smoking t2,[ organi>ations; is that correct? t2a) A: They are organizations, as I recall it, who have rr.+l taken - who had taken positions on social- (xal acceptability and related issues, (zs) Q: And there is in this document, however, rage 116 - page 119 (32) Min-T1-8c7ripto Seattle Deposition Reporters 622-6661
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V~ iVVV TlI~ .[1LV1\yG~ly\>Jy V. FIAIL M~/\lUS (ll Rl hI fal (s) [sl A: Who was he, or she? Q: I ie was a professor of' economics. A: No. 0: Do you recall a Wagncr/l'ollison study at all? A: No. MR. WITHEY: I've got anothe.r document Pago 112 pl that I need you to copy, but it's almost lunch, Isl so we can just get it copied and we'll go ahead Isl and take a break now. t,ol q,uncheon recess held from (i+I 12:00 p.m.- 12:40 p.m.) t121 t+sl EXAMINATION - (Cont'd) p<I BY MR. WITHEY: ps1 0: Mr. Durden, I've asked you over the break to read 1161 some portions of what has been marked as Exhibit (,j No. 10, entitled "The International Conmuttee (,el on Smoking Issues -Working Party on the Social I+9] Acceptability of Smoking," bearing the dates July nol 27th to 29th, 1997. Do you see that. nq A: I see that. tnl Q: Now, on the page indicating who arc the members (zal of the SocialAccept3bility Working Party, you R<I are listed as the chairman; is that correct? r25] A: That's correct. Page 113 Iq 0: And you were the chairman then, I take it, in nl July 1977? ta1 A: That's right. 1<I Q: To the best of your recollection, does this (sl document accurately depict the members of your tel committee at that time? m A: I don't remember that wclLAs best I can lel recall, it does. tvl 0: I've tagged the portions of the document that I ( ol wanted to draw your attention to.The first tag ti,t is on a page that bears your narne, and it's (121 entitled, "An Introductory Statement on the [+3) Health Issue as Related to the Social [141 Acceptability Issue in Smoking." Do you see [,s] that? lisl A:l'es. (,11 0: Do you recall drafting this, or at least -- hel A: I don't recall doing it, but 1'n1- it sounds I+al like me. 1201 0: Was this a presentation, then, made to this rr17 working party in July of'77? tz21 A: It was included in the book. tdon't know that a rr31 presentation was made. tz<I Q: Did you have an opportunity over lunch to review rzsl this? C. DENNIS DURUF,N VoL 1, December 17, 1998 Paga 114 t l A: Yes, I read this. 12] Q: And your point of departure, one of things you tal mention in this document is that you don't [a believe there's been a "health victory" as far as Is] the tobacco industry is concerned; is that tsl correct? pl A: A"health victory" as far as - lal Q: Let me read it to you and I'm going to ask sonte tel questions. It says here, "As far as the tobacco tlol community is concerned, there has been no such t t] 'health victory' " (12) A: That's right.At this time the industry was tlal still saying that the primary health issue was 11a] open. (,s) Q: And they had been saying that since the early I+sl '50s, correct? t+7l A: I don't know how long they had been saying it. [ial Q: Well, it states here, "The industry believes that t1®I the health indictments of smoking are unproven." tm] A: That's what the industry believed. Ixtt Q: Did you believe that when you wrote this in 1977? rnl MR. HOWARD: Objection to form. (zal A: I probably was beginning to get my doubts about t2q it then, I think there may have been something tzsl to it, but I have no knowledge. Page 115 lil 0: By "unproven," I assume it means that there Izl wasn't any proof that smoking causes illness, t31 correet? (al A: I don't know what it meant.The way that it was (s) told to me was that there were associations, and (s] that if you looked at a group of people you could tn find statistical associations, but that the cause Isl may not have been smoking. (sl Q: You understood that by "associations," there were t+ol studies done that compared the presence of lung I++1 cancer in smokers versus nonsmokers? 1121 A: Exactly. (1aI 0: And that smokers has twice or five or 20 times t,<I the rate of lung cancer? tisl A: That's right. t s) 0: And you also understood there was a study showing [+n that when they put certain tobacco tars on the (,el back of mice, that the mice got cancer? [191 A: I did not know that. I did not know that. 12ol Q: Did you make an effort to review any of the t2,1 articles in the literature or a survey of the tn] literature before you make the statement that the Inl "health indictment of smoking is unproven"? tzat A: I was not speaking for myself here. I was trying tn] to give the position of the industry as I saw it. ,.. ~ u Seattle Deposition Reporters 622-6661 Mitt-IYScriptO (31) Page 112 - hageJ.15
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12. 5. .12so chaired by Mr. J.M. Sartogh of Philip kmorris, the Task Force on.the Effects of Advertising on Cigarettes. is making studies in order to prepare a.basic Position Papar and to pull together all existing doetementation on this contravcrsial subject. 6. The EZC Consusarlsm Task Porce will be maf.ntaining the contacts already establisrhed.with the vas:ious F.RC Institutionp and will conti.nue tc pa3 ob.jective in.EoZ'natlon to thom. In addition it intends to a+;alt:ate the results of thc Health Tax in Britain and pror.ote analyses Yavourahla to thcx Induatry point of view. 7, The.xCCSi Secret:zriat =der its new Secretary General will be developing the Fmys and.:aean,c L•o carry ouL• its objectSvers. Particularly inpcrtant vaill be the.area of infornation collection and distributlon, and TCOST i.n Jrussels can be exgectad to become eventually a dat:abauk for Trade AssocSai.ions and member coapamies woz•l4w.iaa.
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S. LEX0 CGt•]P,cNIES - RESPONSIBLt FCR COCfi1QVICATICNS TA'T71a EACH COIIPTRY 1. Tl:e proeedure at tSe moment in operation is that each country has been madn the responmibility ot one ICO9I member company both as regards cea.munications to and fsom thc relevant Trade Association and the collecting of vital Snformation for ICOSZ. Lead companies and l•lteir co:mtries are at p,esent as °ol1cws; BAT: DenmA]'k ~ Norway Iradoncaia blalayaia I11d'_a Eanqla. DeFh Bra zi2. Cent_ra1 America, excl. Guata:.ala and Ecuador Chilc rew Zealand PP.iliv Morrisi Switzarland Pinland Sweden Argentine t*eneat:ala Guatemnla PF.ilipi:nes Pa:ciatam Austr"slia Psy ©14 s n: United Statas RoLhmezs: Benolu_e CandflO. France Hong Rong South Af rica Ecaador Szngapore Spain Imaerial: [1R Gallahsrz Bacmtama: Garmany Greece Eira
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!'Yadb Associations - their role and character.istics Present restrictions in selecLed countries Legal and unde:al'_ng issues (e.g. Product: LiabSlity) SaWP - Public smoking issue, etc. - _SC Consume_j*ssu Task koxce ~ Stoc:kaoLa Con.fSrence Task rorca - Swisa IWPereenduc - Proposition 5 in California STAG (Sc:enti.£ic and Tccfi7ical. Action Group) EAC (Ef'pcts ot Advertisl:fg on Cigarettes) G ..7. de Vos (Turrnac/Rothzans) C. Vogel (Re ~t saa) P. 5chc2.er (R.,T. Reynolds). C. Vogsl (Reo.atsan) N. Dmma ( H rin-Inan/Rotluaa ns ), G.C. Hargrova (a4r) R.M. Corner (C'ha L.tp. Morris) / P.:4. Schulcr. (R.J. Reynolds) G.C. Fiargrove (BAT) R.:l. Corner (1'htlip 14orris}
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7.. EEC' CONSD1iRIS?i 'lhSK PG'RC3 3• The• te...-ms of reference of this Task Porce is to make clear to the EEC that the Treaty of 7ton+e does not allow the ha_ttZization of health mattes:s, i.ncluding advertising for tobacco products. By a series of acti:ons, Interventions and snbnlssio:1s at various 1evels of tho EEC Crganis.ttions under its Chairman Dieter von Specht, conaiderab.lle success has been achieved. 4. For,esaWle, the. xealt.h Ministers of all SEC countries recently met to coordinate their attit+udes croncezning the smoking issua. The very perfvr+ctory coamitments they were able io agree on prove that the main aolitical iamact has been removed from the EEC anti.- smokt.nc, i.nitiat.ive for the timc bcing. 5. rurthar:rnra, in tha European Parliament itsclf, strong and influential statcrr,ants have only very recen°._'y been rrade agaLnst what ia ca7acd "haxr.oniz;tl•ion Yor harmonization's sake". SA(tiP - $OCrxG ACCEPTAI3LLITY T003RTNG PARTY . 6. Tl:is Working Party copes'with tt:e most ditt:.cult problems. ;-hroe baaic lcael,s foz Social Acceptability issues have been c.'ofined: passive amoking, snokcr courtesy and social cost. 7. SAwN produced a Position Paper on Passive Srokinq. And they also =nducted a researaii study into the Social Acceptabil3ty issues in aleven countrir_s. ~ r~. C U ~ N #~
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l. ICOS: - International Coracuttee on Smokir.g issues RCA50N AND DIIJRCTIVES 1. The problems and attacks proposing restrict.i.ons of saroking ar.d normal comraerclal, activities Like advertising and publicity have bccone h: J.• lnternational. Examgles in ona country are used• to attack tb,e industry in anothe.r. No one in3ustry in one countryy nor any one compal1 cur. wage and win the battle against ttxis'sort of organised world-wide attack. The resources- are jurt not available to collect a11 the enidence requircc nor to prepare counter attacks on a'separat.e basis. The whole Inal-ostrv, companies and Trede Associatior,s alike amast unite with commcn targets and ccm.`tOn 'avproaches. 2. Therafore seven companies, who conduct business in more than one country, decidCd to set ::p ICdSI, These founder oompa.7J.es are: ' BaT Reemisma Gal:.ahem Reynolds Impcrial RatEamans rhili•p• Morris 3. ICOSi 's pv-rpose is to estabiish_ a forum ;or the• exchange of views and inPormation on international smoking issues - including s.^noking and health - by coordinating data and tnformation in economi.c, scientific and tecbnic.al arcas, C 'he qor.eral object.ive is to bro3dcn the kr.owledae of inembers, consuners and, authoratics worla-wide. 5. This objective will, be accompLished in a Icrge pa..t by providin'g information to nati.onal and other tobncco Trade Associations, and by serving as a sourme of expPrti9e, data analysis and opirnion on subjects of interest to tho industry and its pub a cs. This information wd.1A be dissesunated in tha form of bolletins, position papers, reports and pamphleta etc. 100372'73].8
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IN W A.tu1vKC1(J V. PITII.Th MORRIS fact 49:11; 50:11; 51:16; 54:19, 21; 56:10; 71:23; 77:19; 83:19; 89:17, 24; 104:19;132:9;143:6; 148:24; 154:3,9; 157:9; 13:9; 96:17 Factors 120:21; 121:2, 10 Fair 6:9; 29:18; 30:7; 31:15; 33:5, 25; 35:25; 36:4; 37:5; 44:22; 45:10; 46:23; 58:13; 59:13, 22; 66:22; 67:9; 68:14,15; 73:15, 22; 77:9; 98:18; 99:15; 101:10, 12; 103:23; 111:2;116:3, 4; 120:2, 5; 125:4; 130:11; 133:17; 142:4; 146:18; 156:23; 158:10,17 fairly 45:20; 150:12, 19 fall 45:7; 150:9 false 134:11, 20 familiar 24:24; 141:17, 21; 145:17 family 93:21; 130:8; 148:19 far 27:24; 35:24; 39:19: 57:3;114:4,7,9;117:18; 139:14 farm 49:18, 22 farther 26:6 fashion 158:23 fast-growing 159:11 faster 102:2; 104:23 fats 135:2; 136:15; 137:17 favored 6:3 features 92:18 February 61:23;84:21 federal 62:20 Federated 17:8 feel 5:20; 6:8; 23:11; 26:13,15; 35:4; 69:14; 88:12;148:13;21:21; 148:8 feelings 64:6 Feinhandler 142:12 fell 150:5 felt 117:2, 5; 150:16, 22, 24 fifth 78:8 figure 49:15; 133:4 f inancial 39:17; 40:4; 46:4, 22; 50:1, 11; 65:5 Financially 50:7,8 find 22:10;81:1, 13; 82:13;104:8,10;115:7; 136:1, 11; 140:5 fine 8:24;10:20;11:12, 15; 118:7; 119:10 finish 78:14; 55:14; 110:1 firm 154:6; 57:13 first 5:5; 8:25; 14:5; 17:20; 20:22; 27:23; 28:17, 18; 3 5:4, 14, 19, 2 5; 36:6,8,14;47:25;52:13; 54:4; 56:6, 18; 70:1, 1,11; 76:24; 84:2; 85:14; 86:6; 87:17I92:20; 111:20; 113: 10; 119:14; 136:3; 143:2, 20, 21; 153:I8 firsthand 67:25 fit 47:13; 80:12 fitness 34:23 finer' 55:24 f ive 20:17; 21:1, 4, 5; 53:6; 87:20; 106:9; 115:13 flag 56:12; 72:24 flexibility 144:1 flow 46:15 focus 26:16; 32:11; 47:4; 70:16;128:7 folklore 21:18 follow-through 59:8 following 10:22;94:22 follows 5:7; 128:8 Food 19:5,13 force 30:15; 159:3 forgot 25:8; 52:18 forgotten 132:3 form 18:12; 22:8; 23:5; 37:10;38:1.1;41:18; 42:22; 46:7, 8, 17; 48:10; 50:15; 51:21; 56:3; 58:14; 60:1; 61:13; 66:2,10; 71:12; 72:1; 73:9,17; 74:25; 75:8; 76:16,19; 77:10; 80:8,18; 81:6,17; 82:1,18; 86:17; 88:18; 89:19; 90:1, 1.8; 95:13, 19; 98:11, 19; 99:16; 101:1 1; 102:3; 105:1; 114:22; 120:13; 122:21; 127:17; 128:3,14, 25;134:13; 135:9,15;136:6,16; 137:23; 138:18; 140:13; 144:3,19; 152:20; 155:6; 158:18; 86:24; 87:10 formally 17:16 forth 27:20; 140:9; 142:15 forward 49:9; 50:14,18 f o u n d 23:9; 47:5; 89:16; 136:2, 3 foundation 21:9; 23:6; 48:10; 50:16; 76:17; 88:19; 90:2; 95:13; 97:18 founder 84:1 fo u r 20:17; 21:1, 5; 47:7, 9,11,18; 63:7; 79:3; 105:24 four-page 69:3 Fourth 82:20 frame 40:8, 13; 85:11,11; 90:20 framework 92:25 frankly 136:20 free 26:15; 35:4;105:6 freebase 105:7 friends 156:24 fro nt 27:1; 78:4;119:14 fruit 140:18 fulfilled 41:14 full 116:10;130:7 full•day 103:4 fully 147:1 funded 144:22 funding 90:24; 144:24 further 120:18; 159:15 future 14:10; 44:8; 86:4, 22;91:4 G Gallagher 32:6 gander 153:17 garage 7:9 gathered 44:24 gave 65:18; 90:25; 105:8; 149:2 general 10:15; 34:23; 71:5,15; 79:25; 85:20, 24; 100:20;124:15;135:20; 136:7;145:24;146:9; 51:17; 70:20, 25; 71:3; 116:7; 124:7 generate 135:3; 139:13, 16; 131:12; 152:10; 137:18 geographer 16:12 Geography 16:11 George 26:3, 4; 28:13; 48:18; 107:13 Georgia 15:16, 21 gets 44:14 given 13:4; 26:16; 86:5; 91:2; 103:18, 20; 111:7; 118:14; 125:8 giving 10:11 glad 98:25 GM 57:3 goal 40:22; 41:7,10,19, 12; 67:23;1.11:1;123:7; 130:4 goes 44:13; 56:13; 119:18; 120:8 good 19:25; 21:1.9; 41:15; 51:4; 55:17, 25; 56:2, 5; 60:3; 87:22; 151:16 Gor174:9 Gorkom 93:6 governing 106:3 government 62:21; 99:6; 158:16 governmental 20:4,7 govern mental-affairs 20:1 grabbing 153:4 graduate 15:22; 16:5; 20:13; 15:23 grapple 133:10 freedom 47:14 1 great 149:24 C. DENNIS DURDEN VoL 1, December 17, 1998 grow 15:14, 16 grounds 40:10 group 42:14;43:12; 86:24; 87:5, 9;115:6; 158:7;47:16;51:8,13: 79:4; 82:12; 87:23; 89:1; 125:1, 21, 25;126:2, 6,11 growing 22:16; 64:8; 73:4 grown 21:18 growth 87:20, 21, 22; 88:6;90:17;91.:1 guess 18:1; 30:15; 48:23; 53:19; 91:18; 107:23; 110:1; 156:16; 159:13 Guinn 14:18 guy 27:12 H H-o-e-I 153:2 half 7:23; 57:11 Hamburg 83:17; 84:10 hand 32:15;91:7; 105:15; 153:13; 145:10; 151:25 happen 38:19; 66:24; here's 52:2 herein 5:4 - high 15:15, 17; 57:3 higher 131:10 Highes193:18 highly 29:6 himself 154:17 Hind 25:3, 4; 52:3, 24; 146:20; 147:4 hired 111:15 historical 123:24 hlstory 83:25 HMO-type 61:2 Hobbs 25:12; 53:24; 145:17; 148:8; 149:9,16; 150:6 Hodgin's 46:14 Hoel 153:1; 154:9,24 Hold 137:19; 19:2 honest 11:2 hope 59:9 host 84:15 hour 7:23 How's 153:4 HOWARD 6:8,16, 22; 104:5; 21:12; 39:15; 41:22;153:24; 58:17 9:6, 10; 13:16; 15:6; 21:9, 13; 37:9; 38:11; 40:7,12; happy 14:15 harbinger 56:20; 58:3 Hardy 153:3;154:6 41:18; 42:22; 46:7,17; 51:21; 56:3; 58:14; 60:1; 61:13; 66:2, 4; 73:9; 74:25; harmful47:16; 51:9,13, 14 79:4 75:8; 76:16,19; 77:10; 80:8; 81:17; 82:1; 86:17; ; harnessing 93:20 hat 155:11 hazards 152:19 head 5:23; 6:3,19; 20:6; 25:14; 52:21; 53:24; 63:14;148:21; 31:9; 150:5, 7 health 41:1, 3; 54:23; 55:16, 21; 56:18; 60:11, 97:18;100:9;105:1; 114:22; 118:3,12; 120:13; 127:16; 128:3,14,25; 131:25;134:13;135:9; 136:6,16; 137:1; 150:13; 158:18 human 74:17; 100:12; 137:14 hundreds 51:19 hypothetical 105:2 62:17 80:2 19 65:10 18 ; ; , ; ; 82:21; 87:25; 89:2,12; 90:9; 96:25; 97:8,12,17; I 98:9; 113:13; 114:4,7,11, 13,19; 115:23; 116:23; I-C-0-S-124:5 117:6,7,11,19,22; ICOSI 24:5,7,14,23; 122:19; 132:5; 136:19; 25:24; 27:5, 21, 24; 28:6; 143:22; 148:10; 149:9; 29:19; 31:20; 32:4; 42:6, 8; 150:2; 152:19, 25;154:19 47:19; 48:14; 67:20, 24; healthcare 40:24; 58:9; 68:1, 3, 5; 78:17; 80:5,16, 60:5, 9,10,13;131:6 25; 82:10; 83:4; 84:25; healthier 56:1 85:20,21,23;105:22; healthy 55:23; 56:8 111:7;123:8,14;127:R hear 102:6 5;142:2 19;129:12;130:19; , 16 140:23; 143:9; 144:10 heart 21:7; 36:19; 71:20; , , 22 14 1 25 14 7 79:24; 89:25 , ; 5:3, 5:3, ; 152:10 18 154:5 9 18 heating 54:5 Hedrick's 46:13 , ; , , ICOSIISAWP 111:15; 125:16 held 17:18; 110:17; Idea 11:3, 4; 30:19; 39:11; 112:10; 141:8 41:15; 59:11; 81:12; help 75:25; 99:1;123:18; 92:11; 97:21; 103:14; 126:10; 146:22; 152:1; 140:14,17; 148:4,6; 93:19 138:10 1VItn-U-ScriptO Seattle.Depo&aaion Re1wrter:s 622-6661 51 91 9 6168 (5) fact - idea
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C. DENNIS DURDEN Vol. 1, December 17,1998 idealloi:2 identification 26:24; 105:14;125:14; 129:9; 142:19; 147:16; 153:12; 155:23 identified 63:10; 131:17; 140:7; 142:9; 1 ">6:1 Identify 121:2, 7 11178:7, 7 illness 33:11; 44:7; 63:4; 70:13; 71:8, 21; 115:2; 130:8; 62:20; 71:9, 11; 132:19, 23, 25; 133:3 Image 93:25 imagine 24:19; 95:16 Immediacy 52:6; 58:23 immediate 142:11 immora1100:6,10,11 impact 34:6; 46:15; 62:17; 65:5; 143:17, 20, Imperial 32:6 implicating 122:19 implied 120:18,19 important 6:16; 45:24, 25; 49:7; 98:16; 99:13; 100:20; 101:4 impose 42:5; 68:12; 132:15:99:6 imposing 18:2 imposition 46:11 improper 80:24 incentive 39:17; 58:18 incidence 40:24 include 43:24; 58:7; 86:14; 89:1; 32:6; 49:15; 91:3; I 13:22 including 33:12, 20; 25 36:18; 67:20; 70:19; 88:9; 101:6;108:9c134:3; 158:10 income 44:7, 8 incomplete 105:1 inconsistent 13:4 increase 74:15;104:20; 143:22; 33:10; 35:2; 36:7, 11,17; 37:6, 15; 40:25; 70:13; 123:13, 14; 143:24; 57:14 increasing 70:14 indeed 54:22; 66:23 indicate 54:5; 109:17; 140:1; 51:9; 27:9; 90:14; 92:11; 105:24; 109:1; 110:16; 148:8 indicating 7:25; 12:6; 28:25; 70:4; 78:25; 82:10; 85:18; 108:13; 110:15; 112:22; 144:9; 154:19 •'indication 1o:12 indicted 135:5 Indictment 115:23; 114:19 indirect 43:7, 13, 22; 44:6, 16; 4 5:7, 9, 12; 67:7; individual 23:24; 50:23; 65:8; 81:8; 86:1; 153:1; 25:10; 53:6; 54:8; 63:7 induce 37:23; 40:5; 41:4 inducing 39:11 indulge 65:6; 66:21 Industrles 17:11; 18:8; 19:1, 8, 23; 23:12; 25:9; 52:17; 53:12, 13,15; 145:23; 146:13,14,17; 148:19; 149:21; 153:16 industry 7:16; 8:•f;9:2, 23;10:1,8;29:8,9,15; 33:20; 39:16,17; 40:5; 41:17; 42:4, 21; 45:20; 46:2,6,16,22;48:2,4,7; 49:24; 50:12; 58:13; 59:9, 25; 64:7, 25; 65:3, 4, 25; 66:21; 67:19; 68:12; 72:10; 75:21; 81:12; 86:11; 87:19; 98:3, 15; 12 20; 100:13;114:5 18 , , , 33:16 interrupt 18:10 intertwined 116:25 into 17:15;29:1;31:7; 40:20; 47:9, 13; 62:13; 64:19; 81:15; 102:1; 104:22; 159:4 intolerance 95:8 Introductory 113:12; 116:6 invade 11:16 invented 27:12 investigate 90:21; 123:1 Investment 44:1 involve 12:20; 24:4, 7; 27:8, 23; 31:20, 23, 25; 32:3; 153:9; 155:3; 99:15 involvement 157:12 involving 57:21 issue 11:11; 12:25; 115:25;116:2;117:14,18, 2a;120:17;121:18; 14:16; 15:9; 30;18; 32:25; 33:22; 35:10; 36:1; 37:5; 131:22;133:9,14;144:1, 38:6; 40:23; 41:21, 25; 42 2 2 4 21 24 2 24; 152:15; 68:17; 69:19; 70:6; 97:6; 99:2 inevitable 97:3 inference 30:11 Influencing 120:21; : , , ,19, 3; 5: 5; 46:22; 52:7; 54:9; 57:23; 58:8, 22, 24; 59:1,14,16; 70:2; 74:19; 75:1, 2, 2; 76:2; 80:22, 23; 90:16, 22; 99:7; 103:10; 109:23; 121:10 113:13,14;114:13; inforrn 98:16; 41:22; 116:23,24; 117:3; 120:22; 89:22; 104:25; 154:4 121:7,11;123:5, 6;127:2; information 1423;81:5; 131:18; 136:19; 141:22, 99:14;100:21;101:2, 5, 7, 23; 150:2; 127:5; 19:10, 9; 105:5; 122:10 18; 13; 24:6; 30:20; 31:13; , 126:10, 25; 128:16; 32:11; 68:17; 69:19; 70:5; 144:21 81:15;85:9;96:2,74; 107:3; 109:11; 112:18; NFOTAB 24:24;143:6.7, 10;144:14,15,17;I55:18 119:24; 130:20;131:13; i i 1 I 133:15; 136:18; 145:9,21; i n t a 93:18 initially 93:22 inside 127:21 insights 81:13; 82:13 instance 46:12; 101:6 instead 141:22 Institute 86:15 instruct 8:22; 9:2, 10,16; 10:9;15:4;103:7; 9:19; 10:4; 12:22; 13: 14; 9:1 instructions 15:7 insurance 1.31:6, 10 intelligent 98:18; 99:12, 18,20,22,24 intent 106:20 intercompany 154:16 interest 136:9;150:3; 56:16;149:18;156:25; 158:8; 76:5 internal 23:21; 89:16, 23; 145:12 International 24:5; 25:8; 29:6; 47:20; 53:24; 63:14; 10G:14;112:17;152:1; 153:15; 154:18; 156:19 156:7,14; 158:14,16; 159:6,8 , Issues's 47:20 itemized 45:6 ivory 157:18 J MV J AI3ORERS v. PIIILIP MORRIS July112:19;113:2,21. 4; 153:3,7;8:3;9:25; 12:2; June 84:3; 87:15;153:14 102:7,23 lead 54:24; 55:18,19, 22; K 71:6; 79:14 Leader 87:2; 120:7 keep 74:16; 79:21; 80:16, 21;104:5 Ken 65:8 kept 109:15 Key 43:21; 94:7, 23; 121:8 kick 105:7 kill 135:16,17;136:4, 8, 13; 138:2; 135:7,13 kin 128:20 kind 10:23;11:4; 26:8; 54:24; 55:21; 60:12; 61:6; 65:15; 81:5; 100:7; 106:25; 116:12; 122:9; 150:14;158:6;58:5; s6:16;157:16 knee 56:7 knew71:13;79:22;148:7 knowing 51:23 knowledge 8:17; 47:23; 48:21; 56:9; 61:14; 67:25; 77:21; 98:13; 102:12; 103:10, 25;114:25; 122:12; 124:17; 126:22; 127:7; 135:10; 138:6; 139:5, 24, 24;140:19; 145:1;154:8 known 58:8; 65:21; 110:6 KOETHE 8:12;15:8; 17:25; 22:8; 23:5; 46:8,18; 48:9,17; 50:15; 68:21; 69:2;71:12;72:1;73:17; 79:17, 19; 80:18; 81:6; 82:18; 85:17; 88:18; 89:19; 90:1, 18; 94:1; 95:13,19; 98:11, 19; 99:16;101:11,14;102:3; 122:21; 130:25; 135:15; 137:19, 22;138:3, 5; 140:13; 144:3,19;152:20; 155:6 L leadership 81:1,14; 82:14;120:5;1.26:3 least 12:23; 27:19; 30:8; 33:9; 34:19; 35:23; 37:4; 38:1; 39:2; 40:2; 44:22; 45:2,11, 12,23; 46:11.; 47:19; 57:12,19; 58:7; 59:24; 60:8; 62:7; 65:11, 17; 68:11; 72:2; 73:3; 76:13; 77:8; 87:9; 90:14; 91:22; 93:15; 94:3; 96:6; 107:19; 109:18; 113:17; 121:5;123:23,25;143:17; 154:3; 156:15 leave 12:8 leaving 87:13; 92:9 Leeds 83:13; 84:16; 106:4; 108:17,19; 109:1 left 8:2; 23:22; 62:12; 87:13; 94:4; 121:25 legal 37:19; 38:16 legislation 37:20 legitimate 138:15 length 128:13 lengthy 91:8;140:25; 150:19 less 19:21;34:22; 57:14; ~ 75:22; 137:15, 20 -. lessened 58:12 lette r 58:2; 66:19; 93:1, 11,11,16;94:7,13,22; 129:18; 153:14; 155:25; 156:7 letting 64:7; 65:3, 25 level 130:23,24; 31:12 liaison 25:4; 52:25; 147:5 liberties 158:16;159:8, 10 liberty 47:14 life 20:8; 74:17 lifetime 100:19 light 13:9; 22:17,19; January 32:21;43:4; ~_..-----_..._....__._.-...,.. 40:15 62:6; 67:1 -------- , likely 109:7,8 v Jim 253, 3; 28:11; 52:16, lack 23:5; 48:10;limited 33:12; 87:19; ~• 24;146:20 135:1;136:14;137:16 9025 2;74:6,7; o 5:14 pne 47:25t 65:1 job 19 Lan g le y 20:4 ; : : 25 52 14 ; ; 89:4;150:14,8 151:13,17 Larry 16:17 linked 88:G jobs 17:18:151:11 last 7:22; 20:20; 28:3; Linking 35:2; 36:7,11, join 8:12 37:16; 39:9; 40:17; 63:25; 25; 37:3, 6; 70:12 joint8:10,14;11:3,17; 64:3,13;116:10 18;14:2 late 73:21;104:17;155:2 list 94:7, 22;118:22; , 13:8 119:17; 120:15; 124:25; Joseph 132:6 Later 21:20; 24:23; 52:23; 125:1;147:10; 28:5; 53:6; Journal 52:9; 54:17; 143:7; 152:8 84:3; 94:9;107:6;108:10; 56:22; 57:20; 59:19; Lausanne 83:15;84:8 112:24;118:22;119:6; 157:10 law 6:14;154:6 129:15; 45:3, 5; 67:5 Judge 14:18, 18;105:11. lawsuit 10:25; 11:4; listen 69:9 judgment 100:2,19 12:22; 102:8,13 Literature 32:21; 35:6, 8; 70:14;158:21 I internationally 32:3; I Julian 85:19,24; 143:15 lawyer 9:2,22; 10:8; 53:3, 36:25;44:23;45:11; ldeal • Literature (6) Min-U-5criptGi Seattle Deposition Reporters 622-6661
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114" LtL)Vt(1:IW V. PIIII.IP MORRIS proot 115:2 proper 80:24 proponents 132:9 proportion 143:24 proposal 138:9,1]; 139:12; 40:22; 92:12 propose 48:22, 19; 92:25; 139:8;140115 proposing 29:4 proposition 73:15,18 protect 42:4 prove 117:6 proven 117:7 provide 144:24; 32:22; 51:25;60:13;91:14; 99:14; 105:16;141:3; 1.42:20; 145:2; 147:17; 156:6 providing 37:24; 39:12; 104:9 public 17:21;18:17,19; 20:6; 40:22; 41:3; 52:24; 60:5,17; 63:14; 61:20, 22, 24, 24; 93:20, 23; 96:13, 13; 105:5;107:4;109:15, 20, 21, 23; 110:3, 3; 122:16,17,18; 13L6; 132:22; 144:10, 12, 17, 17; 145:10;146:9,11;148:11; 149a0,21;151:21,22; 153:19; 154:5, 19; 155:11; 159:10 public-affalrs 145:14; 148:17; 149:12 public-relations 81:15, 25; 82:9 publication 124:7; 122a l publicity 29:6;122:6,14 published 140:22; 152:17 pulmonary 21:7 purpose 14:9;42:16; 86:25; 106:25; 121:1; 41:5;104:21;123:7 pursuant 8:10;9:20; 10:25; 61:11 put 17:15; 32:16; 50:14; 65:3; 115: 17; 129: 1; 134:23; 136:24; 137:6, 20; 138:7, 21;139:1, 4; 140:9 putting 58:19;97:24; 142:15 Q quick 12:24 quickly 51:6 quit 51:20 quite 39:1;61:15;143:8 quote 116:6; 131.:11; 150:18,19;93:12;144:11 quote-unquote 33:17; 132:14; 139:15 R R.J 7:11, 13; 8:13; 17:11, 12, 13, 18; 18:5, 7; 19:4, 5; 23:22; 24:20; 25:15; 2'1:5; 53:1 `>; 77:25; 87:16; 89:22; 145:2; 149:1 l, 21; 156:20 R.M 87:1 raise 8:8; 56:12;159:5; 12:18; 38:2; 75:1; 131:5 raising 41:13; 80:22, 23 range 36:18 rate 86:4; 115:14 rather 9:25; 33:18; 58:12; 69:11; 145:10 re-created 18:20 reach 33:2;139:22, 23 reaction 149:3 read 21:21; 26:13; 28:17; 29:1; 31:1, 7; 35:1, 12, 14, 21, 24; 36:8,14; 37:16; 38:15; 40:20; 43:4; 47:9, 25; 54:16, 20; 56:15, 24; 57:7; 59:4; 62:13; 64:1; 67:17; 6824; 69:5, 7, 9, 10,11,13,25;70:25;71:3; 74:5, 5:75:14; 76:13; 78:10; 8123; 86:20, 22; 87:17; 92:20; 93:15, 17; 94:25; 95:4; 97:1; 107:24; 109:14;111:3;112:15; 114: l, 8; 120:23;121:17, 20,21; 125:20,21; 126:4; 130:23; 133:18; 134:14; 143:20,21;149:2;150:8, 19; 27:19; 39:25; 40:1; 61:16; 63:1; 94:2.0; 121:5; 141:16,17;149:7;154:2; 156:3 Reader's 122:7, 10 realize 72:5; 45:20; 4621; 72:2 reallocated 75:20 reallocation 74:14; 75:16 really 19:18, 25; 22:17; 23:10; 4121; 46:19; 49:20; 56:7; 81:18; 103:10;105:3,3;127:21; 135:18; 155:1; 159:7 reason 6:16;29:3,19; . 62:15, 17; 80:15; 88:15; 122:13: 127:8, 14,18, 25; 128:1 l, 22; 27:20; 90:25; 91:2 reca I I 23:20; 24:1, 20; 25:10, 25; 26:3; 27:24; 35:7, 7; 43:15; 52:14; 63:11;75:13;78:16;80:9; 81:8; 82:20, 23, 24; 83:11; 84:16, 22, 23; 85:6, 10; 86a, 2, 19; 91:20; 92:7; 963,4,19;97:11,13; 102:17, 23;103:6, 8, 9; 106:16,18,19,23;107:12, 14,I7,18;110:2;111:16, 17,17,18,25;112:4; 113:8,17.18;1.19:22; 120:10,19; 121:1,4,4; 123:7; 124:20, 22;125:9; 126:20,21,23; 140:24; 141:1,2,10,15,15; i 142:12, 15; 144:14; 145:2; 147:9, 25;148:7;149:15; 152:9; 153:1; 154:23,24; 159:7; 52:3; 92:1, 2 received 46:25; 58:1; 105:22, 23 recent 57:5, 6, 8 . recess 26:22;112:1.0 recognize 28:10,11,12 recollection 28:15; 32:24; 54:15; 80:10; 83:3, 20; 85:14; 108:25; 1 13:4; 140:19; 142:25; 143:12, 14; 147:13; 153:22; 154:3, 13 recommended 54:16 record 5:12; 9:19;10:22; 12:11, 12; 13:7,17; 14:13, 21,22;18:1,6;21:14; 29:1; 31:7; 40:10, 20; 43:4; 47:9; 62:14; 91:9,10,11; 94:2, 5; 118:13; 119:1; 137:22;141:7; 6:23 recover 37:20 redirect 43:16 reduce 40:23; 134:23; 136:25; 138:22; 157:13; 41:1;138:25;139:2,3,6,7 reducing 40:24; 56:18; 74:1,10, 21, 21; 77:2 reduction 74:15 Reemstma 32:6 reference 56:14,17 referred 41:8; 52:10; 56:22; 61:8; 86:11; 87:4; 91:18; 99:8; 108:18; 110:22;144:12 referring 64:9; 79:8; 119:1 refers 86:5; 106:3; 132:13; 133:2 reflected 107:20 reflects 130:3;132:2.1 refresh 28:15; 32:24; 43:17; 80:10; 83:20; 108:25; 142:24; 147:12; 153:22; 154:2; 155:8; 85:14;154:13 Refute 134:3 regard 126:2; 61:24 regimes 34:24 regular 24:17 rehabilitation 43:25 reimposed 46:1, 5 reins 109:13 related 12:16;13:22; 27:5; 50:1, 3; 58:21; 77:25; 85:8; 90:25; 91:15; 113:13; 119:24; 124:1; 145:9 C. DENNIS DURDEN Vol. 1, December 17, 1998 relates 146:16 relations 122:16 relationship 40:3; 90:15; 124:16;138:21;81:3 relatively 19:21, 22; 23:9 released 105:5 releases 144:13 releasing 104:22 relevant 12:21 rely 143:13;144:20 remember 17:23; 25:6, 20, 21; 26:2; 32:9; 34:16; 42:10; 54:1; 55:13; 64:15; 67:10,13,14,14;69:14; 71:19; 77:22; 83:8; 84:9, 10; 90:20; 94:13; 97:23; 102:22; 109:24; 113:7; 127:12, 13;141:12, 19; 143:4, 4, 9, 10;155:7, 7 reminded 147:22 rephrase 5:21; 66:12; 111:5 report 51:17; 70:20; 71:1., 3; 78:1; 83:13,14,16; 85:1, 3;116:7; 124:7; 127:5; 129:10;133:9; 109:11;31:4;79:9;82:11, 24 reporter 6:2,12; 26:9 represent 5:16; 9:4, 7; 27:3; 8:1, 3; 9:24; 28:6; 40:23; 63:3;103:1; 9:4, 6, 23,3 representation 36:4 representatives 30:16; 84:1 request 11:1 require 131:8, 9; 29:13; 72:15; 132:18 requiring 6:23 research 44:1; 76:6; 77:19; 80:2; 86:16; 89:23 researchers 43:8 reserved 159:21 resources 29:12 respond 6:9; 144:8; 123:18; 72:11 response 5:25; 59:13; 150:7 responsibility 146:15; 148:14 responsive 6:24; 7:3 rest 28:16; 35:15; 50:21; 146:6 restate 48:12 restrictions 29:4 restrictive 87:24 results 106:23 retired 17:14,16,16 revenues 34:14 review 6:23;11:24; 32:21; 3$:5, 6, 9; 45:11; 66:25; 105:18,21; 113:24; 115:20; 123:22; 124:24; 11:21, 25; 23:21; 140:20; 35:21; 40:19; 61:21; 78:9; 118:21; 129:5; 130:12; _ 133:21;155:3 Revised 118:1 revisions 118:18 Reynolds 7:11,13; 8:13; 17:11,12,13,19;18:5,7; 19:4, 5; 23:16, 22; 24:21; 25:16; 27:6; 31:20; 33:20; 53:15; 60:15,19; 65:5; 67:11; 77:25; 81:19, 25; 82:8, 11,16; 83:1; 87:16; 88:12; 89:22; 90:15; 97:14; 102:8,14,16,19; 103:2; 104:2, 20;105:4, 17; 145:2;1472;148:19; 149:12, 21;156:15, 20; 41:11 Richard 63:11,13; 154:15 Right 7:25; 9:15; 10:6,7; 12:7;13:6;19:16;26:1.2; 28:23; 31:24; 32:5; 37:2; 39:8, 8; 40:11; 44:19; 47:24; 50:19, 25; 53:22; 54:11; 57:3,16; 58:6, 6; 59:18; 60:7; 61:3; 62:13; 63:9, 22; 65:22, 22; 66:14; 70:23; 72:10, 20, 25; 73:13; 76:23; 77:12; 80:3; 84:18; 85:18; 87:6; 88:4, 11; 89:10; 91:6; 92:6; 99:5, 10;101:15;104:4;109:14; 110:5,19,21,24,24; 111:13; 113:3; 114:12; 115:15;117:23;119:16, 19; 120:6; 122:2; 123:12; 125:3; 128:10; 129:17; 130:18;132:7,12,16; 133:1, 6,12;134:4, 21; 137:11;139:2, 11,17; 140:4;146:12, 146:12,1525; 148:3, 3; 150:11; 153:20; 156:8,12; 157:1 ^ 24, 25;158:11 right-hand 120:24 ~U,' ring 80:13,14; 87:8; ~n 30:24 ~ ripe 54:22; 55:16 rise 57:13,16 °' F.a rituals 152:14 ^j RJR 12:15,17,18, 20; K) 13:5,18, 20, 23;14:3; 18:25;19:1, 8; 23:12,16; 35:7; 46:15; 53:11,12,13, 13; 89:16; 90:6; 101:5; 122:17; 141:4; 142:15,21, 25; 145:9,10,22, 22; 146:13,14,17,17,21; 147:2, 7,17;148:2,19; 152:11; 153:16; 154:16; 155:5;156:18 RJR-related 25:11 RJRT 142:22 role 85:5; 144:15; 153:23 Ron 52:21 room 7:19; 12:8 Rossmans 32:7 Seattle Deposition Reporters 622-6661 Min-U-Saript® (9) proof-Rossmg.ns
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4. ICOSI'S RGLE AND Ft:LATICNSrIIP k'I~~'H NASICt3kL ASSOCIAT7QNS 1. ICOST will only be effective crith the fu11 help of all the T'rado As.sociati.ons and these Associations w3.11 not be aFile to win their battles alone but only with the suooort o£ ICASI. 2. ICqsI's role is, therefore,pri,z=ily to•helP and suppottt indi,•rldual natiomal Associations, where they exist, a-4th intormation, positi.on papers, advance warning of cvents, lesscns learnt froas other countri.es etc. 3. ICOSI will thus be m•ore involved in world, or perhaps regional atratcgy and in a.chi.ev3:ag: a truly uniteCt in:ustry approach on problcros• atfcctirxg or likely to i.nfluence severu3l countries. 4. Lnplcmcntaiion ot' the broad polici.es or vse of the position papers, studies or data will be thc responsibility of tha Association or conpanies in eac'v couztry. They will have to judge the locnl sitnationrn ane. decide when and how• to use the ammunition that ICOSI has collectad, S. The raw materials for Lais ammmniiion and often for the policies themscLvea will corr.e in maxy cases from the Associ.at.l.ons and compantes, as well as from the ICOSI Worlcintr Parties. The iuipm:LL.,ance here is that the flcxv of inforr•uzti~om must he in both dirccf'_cns. 6. rCDSI nevcr intends to adhpt a piulic or spokesrran zble. This is seen to be the jab of the Associations cr the companies.
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C. DENNIS DURDEN VoL 1, December 17, 1998 Pago 156 UI previously identified, correct? tzl A: Is this the same one as the one I was just (31 reading? I+I Q: Yes. (sl A: Okay. (sl 0: And you were provided, then,as I understand this m letter, a monograph on the social-c:ost issues, te] right? [sl A: It says I was. 1101 0: And you made sonic pretty detailed comments on n,] this monograph, did you not? p21 A: That's right. (131 Q: And you understood that Mr. Marcotullio was a [+<] person dealing with the social-cost issues, at (is) least at that time, for Reynolds. [,s] A: Yes. I{e went on the SAWI; I guess. I don't know (irl whethei it was SANVP. (iel 0: And that was tinder Iz,IR"I'obacco,then? (,sl A: WeII, he worked forTobacco International,whiclt tml is a separate entity from RJ. Reynolds'i'obacco R ] Company. tn) Q: Well, there was an association between the two; tta fair enough? 1241 A: Yes.They were close friends, yeah. tzsl Q: What I'm particularly interested in is your Page 157 ta comments on the second page. If you can look to Ix] page 2, the matin paragraph, about chapter 8. hl A: Yeah. (<I Q: I think what you are saying - and correct me if Isl I'm wrong -- is that today's conferences of (sl anti-smokers are supported by business m coalitions, correct? (a) A: That's what I started saying seven years ago. [al Q: In fact, that was something that you pointed out (iol in the Tlusiness Week and the Wa11 Street Journal [, q articles, that there was business, 1,2) employer/employee involvement in the efforts to pal reduce the costs of smoking. t <I A: Yes, (isl 0: And as I understand it, then, you believed that (,sl the attendees at these kinds of conferences can't nn be characterized as zealots oranti-fiee [ el enterprise or ivory tower theorists. 1191 A: That's right. (zol 0: Whereas the characterization of other elements of .,(zi] the anti-smoking movement might be so tial characterized. tzal A: They were characterized in sonte circles as that. (z<I .. Q: Right. tzsl A: That's right. Page 156 - Page 159 (42) NW LA.SORERS v. Pxn,IP MORZUs Page 158 I+1 Q: And did you believe the business coalitions, the [21 employee/employee conferences posed a more (3) serious threat than the anti-smoking "zealots," (<I if you want to call them that? I51 A: I don't know that it was a more serious threat. (s] It was just a different kind of threat from m- you know, from your own peer group. [al Q: People who are interested in making - 191 A: People who were in business also. [io] Q: Including employers and employees; fair enough? I,4) A: Right. (i21 0: But you understood that private enterprise taking (131 °anti-smoking" efforts, if you want to call it [ta] that, or dealing with the issues of medical costs [ul or social costs, didn't present the same civil- pel liberties issues as the government would if they I4rl acted similarly; fair enough? nal MR. HOWARD: Objection to form. [is] A: No, I don't - let me say what I was trying to l201 say - what I think I said. Employers can exert (zil a lot of direct and indirect and subtle pressure (nl on their employees, and there is - if it becomes [re] a question of fashion, say, within a company, so tr<I that if you say,We're not going to smoke around rrst here anymore, you are probably not going to smoke Pago 159 Iv around here anymore.Ifyou know - if you do, tal then you are going against the norm of the pi company, so we can't say that someone was forced Inl into doing something. Isl 0: So it doesn't raise the same civil-liberties (c] issues? p) A: I don't really recall what I meant by "civil- [sl liberties" issues. 191 0: Well, what you said is "Concern with civil (+ol liberties and public policy making have little to [+a do with this fast-growing sector of ( 21 and-smoking." pal A: Yes. Well, I guess I would still say that. n<I (Pause in the proceedings.) 4-+ [+s] MR. WITHEY: I don't have any further r4 [is] questions.Thank you, Mr. Durden. nn (I'he deposition concluded [ al at 2:30 p.m.) (,gl (Byagreentent between counsel [zol and the witness, signature (zil was reserved.) [22) Min-tl-ScriptCO Seattle Deposition Reporters 622-6661. F., o
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c lv W iHlsuxt'." v. PffJ..TP MORRIIS 153:8;59:7;69:8 suing 102:16 sult 104:1 sum 44:6 summarizing 43:7; 80:1 summary 44:22; 130:13; 133:17 Support 49:18, 22; 76:6; 77:19; 79:9; 74:7; 147:2; 157:6 supporters 81:3 suppose 60:16; 74:21; 76:2; 135:17; 140:2 supposedly 38:8; 131:12; 137:17 Sure 10:19; 14:13,22; 18:5; 33:6; 35:13; 58:11; 77:8,11, 13; 83: ] 9; 84:15; 90:5; 93:3; 98:6, 25: 120:14; 149:19 Surgeon 51:16;70:20, 25; 71:3, 5,15; 79:25; 116:7; 124:7, 14;135:20; 136:7 surprise 151:1 survey 57:5, 6, 8, 19; 106:15,16,23,25;115:21 suspected 59:7 Sustana 52:21 Sweden 82:22;131:23 Switzerland 83:15; 85:8 sworn 5:5 Symposium 154:19 system 27:13, 15; 102:2 T T-o-I-I-i-s-o-n 111:25 tabbed 120:21 tactics 126:12 tag 113:10 tagged 113:9;117:24,25 talk 27:7; 42:17; 150:6; 152:15; 108:3; 59:19; 61:3, 6, 10, 17; 65:18, 19, 20; 75:5; 77:1; 82:4; 95:11; 110:8; 144:16; 39:10; 47:6; 106:14; 133:13 target 100:6, 13; 59:11; 29:16 tars 115:17 task 30:15; 86:5 tax 34:13; 37:23:64:8; 131:6,21;132:1,2 taxation 40:25; 87:25 taxes 34:14;49:16,22; 50:3,4, 11; 131:10; 141:25; 143:22 Tech 15:21 tec u m 6:22; 7:2;11:24 teenagers 100:14,23; 101:12 telex 93:8 tenure 31:17; 146:22 term 333:89:12; 100:9: 123:16; 134:17; 18:3; 46:3 termination 17:15 Tes 109:25 test 106:25 testified 5:6; ] 31:14 testimony 22:1; 23:2; 95:24; 149:2; 151:1 theme 97:10;47:7, 10, 11,19,21;48:6,13,14; 79:3 Theo 93:5 theorists 157:18 thereafter 87:21 therefore 6:7; 10:10; 34:5;117:8 thinking 107:1 third 3022; 69:17, 25; 76:1, 1;'/7:16;129:10; 133'1;139:8 Thomas 14:18 though 48:22;67:9; 92:7; 93:11; 95:24;116:1;147:1 thought 41:15; 45:24; 49:5; 138:15, 20; 150:1 thousands 51:19 threat64:24;158:3,5,6 three 30:20; 31:12; 43:3; 109:24, 24; 131:16; 152:8 throughout 146:22 thrust 48:2, 4; 93:23 THURSDAY 5:1 Thus 54:18, 20; 70:14; 101:25 Till17:6,13;18:18 times 18:24; 115:13; 150:4 timing 108:22 title 35:5; 52:14; 97:10; 107:22; 121:17; 125:4; 53:9 tobacco 7:16; 8:4; 9:2, 23, 25; 10:8; 19:4,4, 9, 13, 20, 22; 25:4, 7, 14,15,17, 18; 27:15; 31:25; 32:2; 33:19; 39:16,16; 40:5; 41:16; 42:21; 46:1, 5; 49:23; 52:19, 23; 53:1, 2, 3,16, 24, 25; 63:13, 24: 75:21; 81:12; 86:11,15, 15; 87:16,19; 89:4; 91:2, 5; 93:21; 98:3; 100:8, 13; 114:5,9;1.15:17;117:18; 135:3, 14; 142:25; 144:4, 24; 145:10, 19, 20, 22; 146:3,18, 20, 21;147:2, 7, 18, 23:146:2, 11, 15, 16; 149:10,12;150:6;156:18, 19,20 today 5:18; 10:25; 11:19; 81:11; 107:15; 128:21; 145:5; 147:24; 157:5 together 146:21; 152:14 , told 15:1; 101:23; 115:5; ~ 136:5 C. DENNIS DURDEN Vol. 1, December 17, 1998 Tollison 111:25 100:17; 130:22; 136:21; took 15:10; 16:9,22; 143:20; 145:22; 156:18 85:7; 102:17;150:2 tools 97:5 underage 100:7 undergoing 111:12 top 29:25; 35:19, 25; underscores 54:19,21 40:20; 47:24; 86:4 understood 14:25; topic 148:25; 141:16,20, 29:19, 21; 38:7,18; 39:1, 24; 142:2 3; 59:18, 21; 60:8,17; total 43:7; 45:5; 62:18 61:9; 64:23; 65:23; 66:16; totality 142:3 73:3, 5; 75:18; 76:12; 77:8; totally 65:11 87:9; 115:9,16; 132:8; 156:13; 158:12 toward 96:8; 130:3; d 148:15;150:23; 96:1; 106:21; 116:17; 150:25 lower 157:18 track 27:16; 80:16,21 trade 29:15; 85:6,15; 86:6,11,12 training 44:1 transcript 104:5, 9 transfer 37:21 treat 132:18; 133:2; 34:20; 37:15; 72:3 treatment 43:25; 71:10; 72:15; 73:8, 11; 131:8 trends 116:15, 15 trouble 28:12; 63:1 true 45:16; 72:7,10,13; 90:6;104:23 truthful 6:17 try 33:23; 41:7; 42:4; 72:6; 80:25; 81:13; 96:13; 117:6 tryi n g 22:10; 40:5; 56:12; 72:8; 82:13; 90:21, 23; 102:21; 108:23,23; 115:24; 121:1; 123:2; 133:10;146:6;158:19 Tucker 52:21; 54:13; 63:10; 148:5; 154:18 Tudor 53:25 turf 148:13 turn 28:3; 29:22; 62:5; 85:13; 87:14; 109:13 twice 115:13 two 68:17; 69:18; 70:5; 104:3;153:18;156:22 two-sided 118:6 U un ertaken 107:7; 110:10; 146:3 underway 105:25 unfounded 87:25; 89:1, 12; 90:8,10,11,12 union 57:14; 56:17; 57:11,12, 22, 23; 58:10; 61:9, 12 unit 88:15; 121:18; 122:3; 33:15 unite 29:16 University 16:7 unless 9:3, 20;117:4; 141:1 unproven 114:19;115:1, 23 up 15:15;19:20; 90:19; 145:13; 150:7 updated 109:16 u po n 42:5; 46:5;122:25; 132:15 ups 123:24 urban-renewal 16:24 use 33:3, 4; 90:10; 135:3; 138:1 u sed 6:14; 27:15; 29:7; 88:2 1; 90:8; 134:17 using 34:1; 58:18; 97:5 usual 152:14 v vague 5:20; 40:7,12; 128:14 value 44:8; 74:17; 101:25; 107:7; 110:9; 47:3; 78:1.;106:1;111:10; 140:21; 155:4 Value'document 107:13 U.S 121:18 Van 93:6 uh-huhs 6:3 varied 19:18 ultimate 67:18,19;68:8 various 30:16;42:1; Ultimately 40:22 67:20; 82:25; 87:23; 89:1; umbrella 68:5 106:21;118:18; 126:11 unacceptable 131:4 verba15:25 unbelievable 153:5 verbally 6:4 unclear 5:20 versus 45:7; 115:11 under 6:11; 12:16; 30:2; vice 1876, 21, 23; 52:17; 35:1; 36:6, 11; 46:12,13; 81:20, 22; 146:10; 149:20; 55:2; 57:3; 68:6, 7; 86:4, 153:16 toll 132:14; 137:15 1 22; 92:10, 21; 95:3; victory 114:4, 7,11; Seattle Deposition Reporters 622•6661 Min-U•Script® 51919 6174 117:12, 20, 22 voices 80:23 ' Volume 121:18; 144:1 w w/c 54:2 wage 29:10; 57:9,14 Wagner/Tollison 112:4 waive 13:23; 14:2 Walk 76:22, 23 Wall 52:9; 54:16; 56:22; 57:20; 59:18; 157:10 war 148:13 Warner 62:22; 65:9,18 warning 116:6, 21 WASHINGTON 5:1,15; 16:7 watch 41:9, 24; 50:17; 137:10,12; 141:14 waters 107:1 waving 72:23 way 31:18; 33:23; 44:17; 52:25; 65:16; 66:23; 74:12; 76:15; 77:4; 99:17; 100:23; 115:4; 116:19; 1.19:18;137:15:138:18; 146:24; 150:5,16,22,24; 151:1 ways 47:15; 49:4 wearing 155:10 Week 61:24; 62:4, 10; 157:10 welfare 37:20; 132:5 What's 27:11; 72:11, 12; 78:7; 124:23; 132:20; 134:21 whereas 44:15; 157:20 whichever 51:6 whole 29:14; 32:8; 58:21; 69:7,11, l3; 70:15; 75:10 widely 149:22 Wildavsky 126:1; 127:4, 9;128:1 willing 10:18 Wilson 53:23 win 29:10 wind 66:24 Winston-Salem 84:13; 102:18 wish 12:24 withdraw 40:16 WITHEY 5:10,16; 6:14, 25; 9:11,14,16;10:3, 7; 11:6,12,16;12:7,12; 13:6,16; 14:12,17; 15:5; 18:9; 26:20, 25; 28:21, 22; 40:15; 68:25; 82:6; 88:24; 91:9,11, 25; 92:1, 4; 94:6; 111:5; 112:6,14; 118:7, 17,25; 119:4, 10; 125:1 1; 129:6; 131:3; 132:2; 159:15 within 28:6; 30:19; 34:17; (11) suing - within
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:cV•:o9IS••j.•~:•. ....:{".• ...................._...........«.,..~e...~~e......•.n..ua:t~Jl. Johnson, P.R. THE SOCiA. ,OST OF TIIC TOCA6C0 PROCa1di• 1)1)~~., r. Farm Economics 47 (No. 2) 242-255 (1965). (U.S.) METHODOLOGY: Harshaltian welfare analysis defininp social,cost as a loss in consumer and producer surplus from departures from ccmpetitive e,uilibriums. ,. \ TRESIS: . U.S. has monopoly position in world tobacco trade. Price increasing feature of tobacco program transfers incomo to tobacco producers from foreign purchasers. Short run benefit will in long run become more costly In terms of lost producer and consumer surplus because rigid acreage controls will result in greater inefficiencies of resources use, and foreign producers will capture larger segments of foreign market. METHODOLOGY: , Citing previous research esp. Doll & Hill, Royal College of Physicians of London Report (1962). Calculation based on avg. 1 yr. loss of life by male smoker to age 65; half U.S• male population smoking and annual payroll of $322 billion In 1963. TRESiS: Smoking reduces male life expectancy and, therefore, earnings. Reduction in smoking would Increase productive life and earnings far offsetting loss of advertising revenues and tobacco industry wages• ~;b
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13: PHILIP MORRIS QEPRESENTATION WITCiht rCOSI Board of Govarnors Mr, Hugh Cullman L'xec~ative Co=Sttee Mx. R.Sd. Murray Mr. J.:d. HastOgh Inter:,m OfSioe Membar and Liaison k:xacatl,va Fts. R. N. Corncr Task I'orce covering 4trht 14orld Confcrrnce or. Smok±nq aasd Health h1x. J. M. Httxtogh (Choiz=n Mr. R.M. Corner Sj%L,'P (Socia7. Acceptabi].1ty . Svorsiag Party) EEC Consumexiam EEC P rocL ct 7,i. abil i ty STAC (3cienti.Eic and 2echnicgl Aotion Group) .F.AC (D£facts of Advartising on Ci7aro(-tes.) Mr. A, Whist Nx. D.it. HOe1 (Lega? Consaltant) Mr. •L. Zahn (Cons'alta-.t - SclentiSic Journalist) Mr. J, _4cagan M :. M. Covi.agton Mr. G• Bei'n'.ari (Frujcct Ccnsultant) Ur. R. Caisch Mr. R.hi. Cor ner Mr. D.K. &cei (Legal Consult.ant) Mr. J.bi. t+locksidge (Legal Connnltant) Dr. 13. Gaisca Mr. S.M. Hartoyh (Chail-zttr.n) Mr. It.M. Cornex Ms. T.L. tyeils $AS4P Countarmcacures Development ?~r. R.M. CornQr.• (P1:ojact Leader) Pragzamma
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C -4- illness and death to smoking is specifically criticized. Another major problem is the one of how the estimates should be combined to arrive: at an overall cost and benefit balance sheet. Stmple addition of costs is inadequate yet many leave it at that.. Too many authors ignore the economic and social gains attributable to tabacco. . It also occurs that the errors resulting from scanty or less sophistica`ted research tend to be reproduced in later research, along with many unjusti- fiable transpositions of numbers or techniques from one study or country or time to another. no savings. Gori's argument is even more intriguing. It is that if current social, legislative and economic rules remain unchanged, a successful policy of disease prevention has a recessive economic potential as more people will reach and live beyond retirement age. The dileama he notes is that the growing increase in the retired population could result in economic difficulties. Pension funds and social security payments would be required by a greater segment of the population than is now forecast, necessitating increases in taxes tu meet future retirement expenditures since the wor~ force may not tncrease accordingly, - 0r. in other words, there may be a reallocation of social costs, but likely David Harr swm attachr.znt tb
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.~.. A n EMarr--3-' Depone.^•t •l et'~ / L~te-_Rptr.___ ~ DmO800K r SOCI3;., COSTS SOCSAI, VALUES /^,1/ Iy7~
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sub)ecti: Attachment Date: January 9, 1979 ' To: Mr. Dennis Durden From: David Narr Here is a quick summary of the total , direct and Indirect costs attributed to smoking by researchers as outlined in.the matrix I gave you Monday: 7ota1 (Yr.Dollars) Direct Ind irect Simon (1968) $4 Billion (1964) $ 4 Billion . Hedrick (1971) $5.3 Billion + 50% (1966) $1.1 Billion $ 4 .2 Billion Hodgson (1975) Freeman (1976) $18.63 Billion 4% Discount (1970) Emphysema: 3,35 Billion 15 .28 Billion $1.5 Billion (1970) 182.8 MM 13 92 MM Shillington (1977) Garner (1977) $519 MM (1971) $4.2-12 Billion 91 MM 42 9 MM Luce & Schweitzer $26 Billion (1975) 7.7 Billion 18 .2 Billion (1977) Luce & Schweitzer $27.5 Billion (1976), 8.4 Billion 19 .1 Billion (1978) Selected foreign studies for comparison: I DHSS (1972) e108 MM (1970-71)' -er36 MM -C7 2 MM Freour (1976) 3 Diseases: FR 4.9 Billion (1973) 1101 MM 38 39 MM All Diseases: FR 9.5 Billion (1976) 1497 MM 522 1 MM 5mith (1977) .,~'i Billion (1976) .16' 190 MM X8 60 htM David Narr swm AI POflM 2413-A.v. 7/70 - A g EXHIBIT~.t' _ UeponentllUt_;~...S~L.t_ Date_.,_._Rptr._ ouoeooc
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;M. ._ _. ..... _ .. .. , :... .. .. i;.,~.... ~ ~ ., ' .,_~...r,••::. ........ .,:,., Lli,/:••n••'n. .~..w....h,:'I:. :.1i.nYirr Freour, P. ET AL. T1iE [b~f OF 706ACC0 SMOKING IN FRANCE• Bull. Acad. Nat. Med. l60(6): 50]-591. 1976 llFrance) METHBDOLOGY; Overall cost of each major disease was estimated then the role of tobacco in each was estimated using a weak case and strong case. For this r2porvt only the strong case of three most prevalent tobacco-related diseases are' noted. THESIS: Economic costs of illness are increasingly important. The costs of a risk factor (Tobacco) are studied because the number of diseases related to tobacco continue to increase and three diseases: chronic bronchiopathies, coronary diseases, and bronchial cancers account for 75% of all costs. • _.~;... ' ._,...__ ...:.,,...,...:. Shillington, E.R, SELECTED ECONOMIC CDNSEQUENCES OF CIGARETT`e SMOKING. Cinadian Dept. of Nat'1. Healt~ & Welfare, Health Protection Branch, Non-Medical Use of Drugs Directorate, Research Bureau, Monograph Series No. 2. 1977. METHODDLOGY: Citing previous research, using Canadian health statistics and following Rice's methodology for estinating the cost of illness, the percentage of disease and cost attributable to smoking is calculated using morbidity and mortality rates. Costs are given in 1971 dotlars. THESIS: - Quantification of sorae of the destructive aspects of cigarette smoking is necessary, especially in view of increasing health care costs. This is not a cost/benefit analysis.howwever• r
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-a- Costina the effects of Smcking: - Canadian Department of National Health and Welfare, THE ESTIMATED COST OF CERTAIN IDENT:FIAULE CONSEOUENCES OF CIr=ETTE SMOKING ON HEALTH, LONGEVITY AND PROPERTY IN CANADA in 1966. Research and Statistics Memo, Ottawa, 1967. ~ - Rice. D.P., ECONOMIC COSTS OF CARDIOVASCULAR DISEASES AND CANCER. 1962. - Rice. D.P.. REPORT TO THE PRESIDENT, CON,M!SSION ON HEART DISEASE, CANCER AND STROKE, Washington, GPO, 1965. - Rice. D.P., ESTIMATING THE COSTS OF ILLNESS, PHS Publication 947-6, Washington, GPO, 1966. - Hedrick, J.L., THE ECONOMIC COSTS OF CIGARETTE SMOKING HSMHA Health Report 86 (2) 1971. - Hodgson, T.A., THE ECONOMIC COSTS OF CANCER. In "Cancer EDidemioiogy and Prevention, Current Concepts," 0. Schottenfeld ed,. 1975, _ PolicY imolications: - Calabresi, G., THE COST OF ACCIDENTS: A LEGAL AND ECONOMIC ANALYSiS7 - Garner, D.V., CiGARETTES AND kELF.M1RE REFORH, Emory Law Journal 26 ~ SHO. 2a 1977. :. The other side: - Gori, G.B., and 8,J. Richter, !"ACROECONO'".ICS OF DISEASE PREYENTION•IN THE U.S. Science 200 (No. 4346) 1978. - Public Health Reports COST OF DISEASE AND ILLNESS IN THE UNITED STATES IN THE YEAR 2000, Public Health Reports 93 (No. 5) 1978. • - Wilson, M.J., T}1E ECONDMICS AND SOCIAL IHPLICATIONS OF CIGARETTE SMOKING (BAT) . APPARENT COUNTER ARGUMENTS There are two apparent counter arguments to the thesis of social costs of cigarette smoking. One Is an extensive criticism, by M.J. Wilson, of the methodology of various studies estimating the direct and indirect costs of smoking; the other a paper by Gori an1Q,Richter., conf_it?ned.by.Public Healtu Reports, irtdicating that.ihere.is-no real„saving from reducing the incidence of amoking-reiated diseases. To sumnarize. Wilson maintains that most attenpts to estimate the social cost of cigarette smoking are seriousiy inaccurate and that many authors have themselves recognized that it has simply not been possible to estimate some of the components of cost. The method of attributing some portion of
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C. DENNIS DURDEN VoL 1, December 17, 1998 roster 32:8 routines 34:24 rules 18:12 ruling 8:23; 13:11; 14:8 run 74:9; 81:14 running 150:6 a7 S-A-W-P 24:10; 31:9 saf e r 37:24; 39:12, 18; 40:6; 41:4 Safety 24:6; 37:23;47:20 sector 159:11 seeing 141:15 seek 12:24; 13:11; 74:8 seem 80:11; 84:9; 124:19; 141:17, 20; 57:22; 123:25;124:2; 54:4; 69:2; 83:17; 93:10; 109:17; 131:21 se I I 67:22; 68:10, ] 3; 70:8 seniorl8:23 sense 15:14; 34:23; 45:25; 55:15; 95:22; 148:20, 22 sent 52:13; 53:5; 65:13; sale 68:19; 122:3; 123:10; 93:5 50:2; 88:6; 90:17; 91:3, 3; sentence 26:17; 36:6, 8, 122:5, 20, 25; 123:4, 17, 14; 38:14;39:10, 25; 40:1; 25; 124:20 54:4; 56:13; 59:4; 63:25; Sam 25:6; 53:3 64:3,14;69:1;75:14,17; same 45:16; 48:17; 126:4; 143:20, 21; 69:4 61:22; 101:14; 107:22; separate 29:14;156:20 138:3;156:2; 158:15; September 84:17; 91:19, 159:5 22; 96:6; 109:1 sanctions 13:15 satisfaction 76:8 save 35:17; 51:19 sequence 119:2 series 14:24 serious 21:22; 22:3,13; saw 7:1; 85:19; 90:15; 23:1;71:21;158:3,5 115:25; 116:14 served 6:22, 25;18:17 SAWP 24:10; 25:25; 27:5, serving 81:20 16 21; 42:12; 25; 31:9 , , session 13:21; 14:10 50:14,17; 55:6, 8; 68:1,6; 72:9; 80:16, 25; 83:1, 4; set 10:24; 27:20; 57:11; 84:25; 85:8; 86:5, 24; 90:19,21;111:1;126:7, 87:11, 13; 89:5; 91:15; 15; 145:13 105:21;106:10; 110:25; seven 84:1; 157:8 126:10;127:8, 19; 128:8; 131:14;136:23;144:10, 16; 1•f5:3; 146:16, 25; 147:1.6,8;152:4,10,18; 154:20,25;156:16,17; 105:18 saying 33:23:35:9: 38:19, 24; 56:11; 66:23; 71:13:72:5, 7; 76:14; 95:2; 96:10;114:13,15,17; 116:12,14;117:1,13.13; 157:4, 8 scene 154:22 school 15:15,17; 16:5; 20:13 scientist 89:23;122:6 scope 107:5 Scottsdale 91:19, 21; 95:10; 108:7 Sea-Land 19:5,14,14 search 7:5.7 SEATTL.E 5:1 second 28:20; 30:2I; 32:13; 35:19. 25; 43:19; ii2:14; 63:25; 6t:3; 67:16; 107:6; 157:1 secondhand 30:21 secretary 85:20, 23; 132:5 section•10:18;130:17, shape 138:18 Sherwin 142:12 shif141:16; 37:18; 38:4, 15; 39:5,15; 42:20;146:3, 17 shipping-container 19:14 Shook 153:3; 154:6 shop 145:11; 16:14 shorter 103:5, 6 shoulders 150:10 show 26:10; 36:16; 57:2; 78:20; 79:1; 124:5; 129:3; 147:11; 154:12; 155:13; 33:9; 48:23;107:13; 36:21; 90:7; 107:14; 115:16;123:23; 141:6; 149:4; 45:9; 124:6 shown 11:18 s ic k 44:14; 60:23; 131:7 sickness 33:11,13; 36:17 side 118:51,120:24 signature 88:2;129:23; 159:20 signed 88:5; 89:6 significant 72:4; 111:1, 6 similarly 158:17 Simon's 46:12 22; 131:3 1 sit81:11;128:21 roster-suggest (10) situation 46:4 six 21:4 slowed 123:16 slower 87:22; 88:6 Smith 16:17, 20;17:1 smoke 20:10,15,16, 22, 24, 25; 21:3; 30:21; 55:24; 56:1, 5; 98:5; 99:4, 7,13, 21; 158:24, 25; 20:8,13, 14,20;2]:1;88:15 smoker 30:22; 31:13; 32:13; 44:13; 50:21; 93:25; 33:20; 34:3, 6,10, 20;37:18,22;38:4,8,16; 39:5, 7; 50:24; 75:21; 98:15, 16; 100:7; 115:11, 13; 131:7,12; 139:13; 141:24 smoking 20:12; 21:6,18, 22; 22:3,13, 25; 23:4, 8, 13,18; 29:4; 30:21, 23; 31:13; 32:12, 20; 33:10, 14; 34:3,10, 24; 35:2, 6; 36:7,11, 16,25; 37:3, 6, 14; 40:24; 41:2; 43:8; 47:14; 49:3, 7,11; 50:13, 20; 51:2, 20; 58:8; 62:17, 22; 67:3; 70:13.15, 20; 71:7, 16; 72:14; 73:5, 10, 20; 74:2, 3, 24; 75:4, 6, 7, 12; 76:3, 7; 77:20; 80:2; 82:21; 87:25; 88:10,17; 89:16, 24; 90:7; 93:23, 25; 96:25; 97:12,16; 98:9; 100:3,19,19; 105:8; 106:21;109:15,20,21,23; 110:4,6;112:18,19; 113:14;114:19;115:2,8, 23;117:16;122:24; 124:12; 129: ] 2; 131:4; 132:9, 24; 133:1; 135:8; 136:4,8,13;137:14; 139:19, 20;140:5, 6,10, 11; 142:16, 23;148:10; 149:8;150:2; 152:18; 153:19; 154:5; 157:13; 34:6 smoking-related 37:25; 39:13; 62:20; 132:18,23; 133:3 sneaking 50:10 Social 24:9,14, 22; 30:9, 13.18, 19, 22; 31:9,12, 14; 32:11, 20, 25; 33:3, 8, 1.7, 22; 34:17,19; 35•`2, 5; 36:7, 12; 38:9, 23; 41:6, 11,19;42:5,9,10;46:12; 47:3, 3,12, 22; 48:1, 7,15; 49:1, 5, 8, 8,11, 20; 50:13; 51:5; 52:6; 54:14; 55:3, 3; 58:24; 63:16; 64:17; 67:2; 68:12; 75:5. 7,11; 76:7; 77:25; 80:5; 85:2, 4; 87:24; 88:10,17; 90:15; 92:12; 93:23;97:15;104:18; 105:9;106:1;107:6,12; 110:9; 111:9; 112:18,23; 113:13; 117:2, 8; 119:23; 120:22;121:3,11;122:24; Min-lJ-Scripft NW LABORERS v. rH11.111MORRrs 123:8; 125:6; 129:11; 37:17; 62:14; 67:18; 130:4,19,23,24; 21; 132:1; 133:1; 131:11, 134:5,6; 92:23;129:12 state 5:11;10:22; 30:7; 1353;136:10;137:18; 44:23; 67:9;139:9; 51:16; 138:17; 139:13,14; 97:16; 99:2; 33:15; 38:15; 140:10, 21, 23; 142:16, 23; 76:5; 114:18 143:7, 5, 24;151:8;155:4, statement 54:18; 113:12; 18;158:15 115:22; 116:6,17, 19; social-acceptability 131:17; 140:11; 32:24; 85:9; 90:22; 96:9; 116:24; 64:13; 95:8; 132:4,22 121:7 statistical 115:7;152:24 social-cost 35:10; 36:1; steering 154:20 37:5;42:19;45:21; 54:9; stepping 12:9 58:21; 59:1; 61:24; 96:1, 14; 121:9; 133:14; 156:7, steps 58:11; 118:1 14 Sticht 53:10,17; 151:19 social-cost/social 107:2 sticky 82:9 social ly 131:4 stl II 20:10; 27:23; 30:8; societies 71:6 64:16; 85:10,12; 95:21, society 33:12,15; 34:5, 25; 105:25; 111:9; 114:13; 11,13;38:3;41:13;47:15, 151:7;159:13 17; 49:3, 7; 50:6; 51:1, 9, Stockholm 82:22 13,14,15; 70:15; 79:5, 23, stop 23:9, 10 24;131:10;132:10,15,23; Stores 17:8 131:5 stralns 64:5 sold 121:24 Strategic 67:3 sole 86:25 strategies 136:24 somehow 46:5; ] 38:16 strategy 133:24; 134:21; someone 44:15; 147:19; 138:10,15 159:3 Street 52:9; 54:16; 56:22; sometime 103:21; 109:3; 57:20; 59:19; 157:10 143:11 stress-reducing 76:7 somewhat 18:2 strike 18:11 somewhere 30:24; stronger 64:6; 116:17,19 78:22; 83:16; ] 47:10 studied 49:20 soon 59:10 studies 18:19;33:9; sorry 36:10; 38:13; 64:3; 3G:15,16, 21, 22, 24; 65:16; 66:7; 75:25; 76:20; 44:17; 45:3, 4,13; 56:9; 78:24; 90:13; 100:11; 65:14,19; 67:6; 110:9, 11; 131:1; 142:10 115:10;151:21,23 sort 29:11; 148:13 study 46:13,13, 14; sought 33:16 59:17; 66:18;74:4; 107:7; sound 123:17;110:25; 112:4; 115:16; 120:10 113:18 stuff 104:10 speaking 40:13:115:24 subcomittee 154:25 speaks 76:2 subcommittee 42:12, specific 129:25; 144:9; 13,15; 51:6; 87:5; 91:16; 98:12 92:10;154:21 specifically 101:21; subject 10:15; 52:6; 67:2; 133:2;150:18 . 102:11; 143:6; 155:17; speculation 80:19; 82:2; 135:4 95:20 submitting 108:1 spelled 56:19 subpoena 6:22, 23; 7:1, spent 19:21 15; 11:24, 25; 12:3,4, 5 Stability 57:9 subsequent 151:5,9; stack 78:22 152:7 staff 63:21; 151:24; 19:20 subsidize 131:11 stake 45:20; 46:22; subsidy 41:2 56:17, 21; 57:12, 23; 61:8, substantial 46:3; 143:22 10 subtle 158:21 stamp 27:13 successful110:16 stand 72:22; 122:13 successfully 13:11 standpoint 36:23 sugar 135:1, 7;136:14; start 20:12; 51:20; 118:8; 137:16; 138:1,17 22:12; 157:8; 36:14; suggest 64:20; 94:3; Seattle Deposition Reporters 622-6661 vi ~., N F.a a w r
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COST/B .FYi EFIT ANALYSIS WAS A REASONALBE, IF RATHER INACCURATE, TOOL FOR EVALUATING GOVER.'ZiENT I-NV::STSL..F'NTS. THE MAJOR PROBLEM WAS DETE.^.,MINING THE SOC:IAI, BENEFITS WHIC»3 WOULD BE OBTAINED. WHEN TGE COST/BE:IEFIT CONCEPT IS APPLIED TO PRODUCT REGULATION, HOWEVER, WE ARE I-i A 2a.ARc:-'aELi='VE WORLD OF BOTH COSTS AND BEDIEFITS. THE ECONDMIST KNOWS HOW THESE SHOULD BE DEFINED BUT HE OFTEN ADMITS T:T.~1'^ 2~".cASDRE:IED7T WILL BE IM9OSSIBLE OR VERY INEXACT.
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8. TH8 ICOSI "I1'T.S^nI?1 OFFICX" B. The Liy7ett and Kyers European Headqt;artex5 olfSice in Lrussels has beem rentnd '~y TCOS]: from Philip rlorris ar.e7 it in hare that a Secretariat operation has been maintained since septcnber Last ycar, k very capable secretary, 12rs. Josephina 5hakespeare, formcrly with Li3getl: arnd Ldyer3, stayed on to be'tk:e'pernans;t TCOS_ :egratnry. L&zge conference room faci3ities have been me.dc out of the ex],sting space and the TCG.311 Wcrkiag Part:es noar xe9ularly meet in the offices. Cutside calering comcs in to provide tor working lunches. 9. An Inte=im Office tean of 3xccu`tives was establishad wi.th or.a representative from each of tho•seven TCOSI mer,tber companies. Regular meetings of ti1ls team have been heyd in Hr:L.sois ih ordex to onsure the swooth progressizg ot the proRrammas approved by the , Iixecutive Coar-ittee and to pr.ovide help andd asaistance to the heads of the vsrious working part.iee. On those weoks when no• such meeting has been hs,Ld, one mnmber of the tcam has taken his tuxn- to spend a°manning day" in the oftiee to deal with urgent matters. So that the office, in t(k11tl.on to the presence of its pcr.manent secrcta-rv, is coveared at 1e,-ist weekly by the Interiat Office Team. 10. The interim Orrzce will :eccoma a pe_manent• Secretariat• under thc new Secretary CcneruJ.., Jslian Doyle, ar.d: vrit.z iLs own pernanent sitaf ~ .
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C. DENNIS DURDEN VoL 1, December 17, 1998 124A,17,18;126a8; oversight52:19 I patterns81:4;137:25 131:13, 16; 132:8; 133:2, own 61:1, 2; 75:3; 99:23; Paul 53:10 8;136:23;137:3;138:10; 145:13;148:17;158:7 Pause 69:16; 86:21; 144:11; 145:12; 150:3; ...... _--------- 159:14 154:9; 156:2, 2 'n ones7:7;71:18,19 '~ PQyla14~37.?4~3gs~r only 18:12; 34:7; 38:8; 22;89:14;131:10;141:25 71:7;90:20;103:20; p.m 112:11,11.;159:18 paying 33:19; 41:17; 104:3; 146:24 P.D 5:14 75:22 onto38:4;39:5,16; package93;5 payments 37:21 41:16; 42:21 Page 27:14; 28:3, 7, 18, pays 57:24 open 114:14 20, 23; 29:22, 24; 30:3; operating 53:20, 21 31:5, 6; 35:3,14,19,19, peer ]00:24;101:1;158:7 25,25;37:17;40:21; people33:18;34:18,23; opinion 22:7; 93:20; 35:9; 38:2,19, 24; 42:1; 96:13;106:14,16;107:4 43:19; 47:5, 25; 62:5, 8; 70:1; 74:5; 76:1; 78:8,11, 50:12; 52:13; 53:8; 55:25; opponents 117:16, 22 56:5, 7; 58:1; 60:13; 61:23; 11; 83:24;84:2; 85:13,23; opportunity7:14;12:24; 86:4,23;92:17;95:3; 64:10;71i9,23,25;72:5, 14:14; 113:24 112:22;113:11;116:11; 7;73:6,11;75:22;82:25; oppose 98:8; 19:13; 117:23, 25; 119:14,18; 88:15; 98:4;99:3,12; 120:16; 126:15; 145:22 121:14,16; 125:19, 23; ] 00:4,17; ] 07:1;115:G; 117:4;127:22;128:16; opposite 139:22, 23 126:4;130:25;131:2,57:3;1, 131:18;135:7,13,16,17, orally 6:4 132:4; 133:I3,23; 1 2; 119:2,13; 127:10; 21; 136:4,7,12,18; 138:2; order 14:16; 26:14; 1 142:8; 148:20; 158:8, 9; 28:13,19 27:16;96:7;98:17;99:11; 24 Sta9 p id 50 a : 4 ; 60 : 21 , , 100:3, 22; 105:G, 7; percent 65:9 6; 53:17; 55:3, 4, 5; 6,10; 21;11:3,17;13:5, 8,12, 1t8a5;119:9,12 paper41:23;77:13; 101:20;109:15,'10;110:3, percentage 19:12 56:10; 59:14;64:17,21; 13,18,24; 14:6,9 organization 24:4, 25; erfectl 11:2 . 72:11,12., 21, 23, 25; 73:1; Probably 21:4, 25; 22:22; 27:21;51:7;68:5;82:10; 1z;1zo:11;1z7:2.,10,20; P Y 77:13;95:21;96:1,8,10, 28:15;32:16;63:23; 97:9; 126:3; 144:11; 128:2, 5,12; 142:16, 22; performed 126:1 12; 98:3,14; 99:3;102;19; 84:22; 85:10; 93:4; 24:1G;27J;dG:2,16;71:6; 143:1;151:7;153:19; perhaps 14:19 105:11;109:15,20;110:3, 114:23; 158:25 154:5; l ll:15, 16 eriod 12:21; 13:23; 12; 115:25; 116:1; 117:10; 79:10,15, 21, 22; 80:7,17, h z8:17; 30:2; p prob(em 32:12; 69:24; 25; 81:2; 86:14,16; 95:18; QaragraQ 50:21; 97:2.5;145:6;12:16 120:16; 127:2; 133:11,14; 74:16; 77:15; 82:15; 29:3; 118: 31:5, 8; 37:16; 40:18; 140:9; 141:23; 142:15,22; 22;119:6,17, 21, 22; permit 37:20 31:11, 16;82:9; 148:10; ' 120:1,12,15;125:2; 62:14; 63:25; 64:4; G7:17; person 66:17; 147:4; 143:1, 2; 149:9; 151:7; 149:9 G9:17, 25; 7G:1, 12, 24; 80:1, 22;117:14, 15; 127:1, 6, 11;128:2, 13. 2•i ] 56:14; 24:20 Procedural 117:25 77:17;87:17;92:21,25; 119:23; 120:2; 128:17 organi1ed29:11;57:10 93:IO,IG;94:21;9G:22; persona118:21;47:13; proceedings69a6; organizing 81:12:86:6 116:10, 11;157:2; 153:18 62:19;65:10;99:8 positive(y 97:5 86:21;159:14 originated 131:23 pardon 78:24 personne128:6 possibilities 93:19 process 102;12;103:12, others 31:21; 32:7; 34:5; parents 100:21 perspective 134:23; possibility 14:20;134:8; 13;104:1 74:9; 88:6; 131:9;14G:20 13G:24;137:6, 21;138:8, 137:13 produce 37:2,3; 39:12; parsing 50:21 21;139:1,4 possible90:16;137:4 27:10;43:2;77:24;142:10 otherwise 135:5 art 12:19; 34:1<9; 37:4; Peterson 52:16 possibly74:15;87:20; product 50:2;98:17,20; ought 69:5 Q6 8 : ; 3 ; 4 : : 10 1 1 51 7 , : 3 9 3; outlxlo;17:1•(;21:20; 15;59:z4;6oa;6s:1; Ph.Dt6:9,10,16 143:8 22:10; 28:1; 36:8; 37:17; 69:23; 74:18; 77:14; phasing 28:1 potential 58:7 47:10;49:15;5G:9,19; 82:11;87:11,22;91:17; Philip9:7,7;12:15;14:1; PR 52:21 57:7; 59:16; 62:13; 64:1; 107:19; 127:2; 128:10; 15:12; 25:23; 26:5; 27:6; precedent 14:9 65:11; 67:17; 68:16; 69:3; 147:7; 148:18;150:20; 28:5; 31:23; 46:25; 87:1; precisely 18:3 74:5; 81:1, 13; 82:13; 151:3 102:7,14, 16; 104:2; preempt 97:3,16 85:11; 89:5; 92:20; 93:17; particular 5:19; 26:14; 152:11; 153:15 prefer 14:21;140:25 94:4;95:22;97:1;103:16; 90:13; 104:21 philosophy 47:13 premature44:8 109:14;116:13;12d:3; particularly 13:4;42:19; Phoenix 92:5 125:8, 22;136:1, 2, 3, 11; premiums 57:17;131 a1 143:21;146:16;157:9 56:16; 64;4, 5;153a7; phone 14:13 preparation 11:19; 156:25 ho netic 46:14; 81:9; outline1D7:1d;48:1 P 13:21; 14:10 parties 13:13 142:13 outside 1 L9; 15:I6 party 24:7, 8, 9,15, 23; prepare 29:13; 92:11 ph rase 33:23 resence 11:10;13:20, outweigh 74:11,23; 30:10,13;31:10,11; p 77:3; 139:9; 14 0: 10; 74:2; pick 22:17; 34:4; G9:3; 25;15:12,12;115:10 34:18; 38:24; 41:6, 12, 20; 62:21 139:14,19 49:2, Q 51:5; 63:17; 68:2, present 12:3; 44:7; 84:6; over 19:18, 2D; 35:17; 6, 7; 80:6; 83:12; 85:2, 4; piece 41:23; 61:24; 108:6 11.1:16;116:15;130:7; 52:19; 53:23; 78:10; 97:15; 104:19; 107:25; pipe 20:13 158:15; 87:2; 95:1o ?7:20; 109:13; 112:15; 112;18, 23; 11.3:21;123:8; place 15:10; 24:3; 56:6; presentation 113:20, 23 113:24; 119:1.8; 121:5; 125:7; 129:11, 16; 130:5; 82:21; 85:7;102:17; preserve 67:21; 68:9; 12G:19 136:11; 140:23 108:20; 109:3; 141:18; 70:7 overeating 135:1; pass 152:9; 93:8 93:18; 116:20;1.35:21 president 18:17, 21, 23; 136:14;137:16;138:1,16 passive 30:20; 31:13; plaintiffs 5:17;13:7 5216,17; 81:20, 22; overrules 13:12 32:12;1I0:6 plan 60:19, 24; 61:10; 145:19; 146:10; 149:20; NW LABORERS v. PIiII.iP MORRIS 92:1.2,17,21;95:25;97:2; 153:16; 57:8 108:2;110:23;152;7; press 144:12,13 - 59:23; 60:5, 9,10,13,18; pressure 100:24;101:1; 86:5, 23 158:21 please 5:21; 21:16; 25:2; umed 6 P 26:15;35:4;47:10;48:12; lc 'Q« 93:17;95:4;97:1;111:4; 156:10 --- 118:4;126:5;141:10 prevention 43:25; 54:23; pleasurable 99:25 55:16 point22:19;46:21;48:15; previous48:3;54:12 56:25; 76:14; 92:23; previously 54:10; 120:9; 114:2; 117:18; 130:14,15; 141 8 156 1 138:6;155:10;157:9; : ; : 122:5;68:16;121:8 Price57:9 pricing 144:1 policy 18:19; 40:22; 136:18; 137:7,9; 151:21, primary 114:13;136:19; 22; 152:21,22;155:11; 152:25 159:10 princip(e126:8 po(itical82:12 Prior22:6,14;43:3,11; porNolio 146:7 76:12 portion 111:1,7;94:4; P riorities 93:18 107:8;110:10;111:11; Priority 57:3 112:16;113:9 private 50:23; 59:24; posed 158:2 60:5, 9,18;158:12 position 10:5;13:8;14:3 privilege 8:10,14; 9:8, 101:5; 104:20,25; 105:6, 10 productivity 63:3 professionally 97:5 professor 112:2 profiles 95:7,17;128:23 profit 68:19 protitabi(ity123:9 profitably G7:21; GBaq 13; 70:8 m Qrogram41:7;55:22; ~• ~ 56:14; 59:12; 84:25; 30:2; 47:16; 49:2; 51:8,12; v 21; 54:23; 55:17; 57:10 , 0, 58:5, 20; 59:20; 79:4; r, 146:23 ~l programme 87:2 Progress 78:1; 130:3 Project 16:24, 24; 87:1; ~, 91:17; 126:1 proJections 87:21 promotional 100:7 prompt 12:25 Ones - prompt (8) Min-U-Scriptcn Seattle Deposition Reporters 622-6661
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-z- TuUS, OUR PROJECT IS CONCEZf1's'D WITq ECT4 SOCIAI. COSTS r1ND SCCItIi, V,3LUES. OUR RESOURCES IN THIS FIGHT ARE.PEOPI,E AND IDEAS. I WILL NOW INTRODUCE YOU TO TH:: KINDS OF PEOPLE e'1cVD IDEAS THAT ARE CRUCIAL TO THE DHVELOP:MV?' OF COUNTEB.'H.E.~1Sii',t.-' .S'.S AGn2iIST SOCIr3I. COST ANALYSES.
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nbrnw heaitn Rept. 86 1?g-162 (1971). (U. S. d Canada, ~ 77~ METHODOLOGY: Citing previous research esp. Canadian rept. of National Health & Welfare Research Memo (1967) and U. S. Public Health Svc. Reports. Rice, D.P. Phs.Publ. 947-6. Applied Procedures & Basic Data From Canadian Study to . U.S.,asultiplyicg by 10.• ~ THESIS: Sickness and death caused by or contributed to by smoking drains the economy by diverting scarce health resources from other needs and by reducing national economic production through early death and excess morbidity. Four diseases: Lung Car.cer, Coronary Heart Disease, Chronic Bronchitis and Emphysema; and fires are examined for their economic costs• Costs are classified by: -Cost of providing medical care -Income lcst because of illness Future income foregone because of death -Value of property lost In fires caused by smoking . , ._....... : . : ::: :;: ~ ..;.. .,.,: ;.: .:~.::... . . . . . . ::+: . . . , British Dept. of Health & Soc. Sec. SHOKING'AHD HEALTH: A STUDY OF TriE Ert-ECTS OF A REDUCTIOH I:1 CIGARETTE SMOKING ON NURTALlTY AND MORBIDITY RATES, HEALT'r1 CARE, SOCIAL SECURITY [iXPEHDITURE AND PRODUCTIVE POTEYTIAL. London 1972 MEiHGDOLDGY: Citing previous research in U.K., U.S. and Canada and deriving attributability factors for relation of smoking to lung cancer, bronchitis and coronary heart disease. Derives mortality and morbidity costs from limited U.K. surveys of hospital beds, a? and pharmaceutical svcs. THESIS: All major studies show that cigarette smoking is associated with increased mortality from a range of conditions, especially lung cancer, bronchitis and coronary heart disease. Percentages of all deaths from these diseases are attributable to smoking and can further be associated with high health care .costs, and sickness and social security payments. Both types of expenses could be reduced if smoking incidence decreased. However, extended life due to reduced smoking might mcan larger retirement pensions, offsetting the savings in health care and insurance• ,. . . ' . - .'...... . ~'.... !.._. . . n ': :.: ..... .:.~ •' ~ 1. ~ 2-~..,'.v . : 'y...r.-~~r...:1L..1. ... ... .-. .r.l'. ._.. ..._ ........ ...-.-.... . . .
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6. ACHIM.°']L:1'i'S TO DATE SnTISS RLCCRLGPJIIC•! l. The Swiss branch o! the Good Teraplars organisation racsed sufficlent'slgnatures to cansa a national direct referendvn to be hcld on a px:oposal which, if carried, wov-ld efJfect,Cvely ban outright all advertis3ng and prowotiaa for tobacco products as well as for alcohol. LCOSI formod a Task Force to prapare for this voto. This Ta:~c Force having done a certain amount of very useful wurk haaded over to the Swiss Assomiation of Cigarei:te I4anufacturers (A.SFC) . The ASTC, Philip Mcrris• as lead Corvany for Switzarland and it> Swiss Affillate, Pabriques de Tabac Ftwunios, aall playcd a major role ir, the Acta,or. Com.~aittee of thc Organi:,ation fLSr Econonic 1)evelopir.ent (Kirl.scha9tsCt,rG•erunc). - a. ceti•traT inaus'_ry «cdy threuga which a:!1 eEforta by alI partica were cianneled. The results were highly- suaceysf•.:1, and on Febrcary 18, 1979, the Swiss peoola rejected t:ie proposal by a' majo<°ity of 598. POSI1'IO:V Px1PYRS 2. Basic Position Papcrs have bc:a agreed and issued as foUlows: The Rnsic xCOST Pos:tion Paoer .~ Thfs covers t:ese topi--'s: - ,iedical Comtrovexql• - Social Aw.,:ri+aaaa, Aeupons.il:ility, and thc - Social Accmpta3ility of Smoking Disclcsuxe of Tn`.ormation - The Role of Covarnmcntt in a FPree Sdciety - Warning Clauso& - League Tables C: - MaxA:m:.u Tax and N:~cotir.c L.imits M - P,.dvertisin3. :.a - Reseurch ^ YXoduct Liab'_li_y M+~ - •ettH ManuEacturcr'a :1=ociationa Cigerr . C.1 G~ . 4'he nublic Sma:ting Position Papcr
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1V W L:1rSVK1aCJ V. I?I1[I1P MORRIS '10:1% 115:21, 22 litigation 27:16 little 26:8; 50:9; 128:6; 136:20; 1512, 2; 159:10 live 55:24; 51:20; 55:24; 56:1 locate 7:2, 4, 8, 9 locating 16:13 location 7:24; 16:13; 83:11 London 83:9,13; 106:19 long 7:22; 17:2,5,12; 20:16; 26:21;74:9; 114:17 longer 34:7;103:5; 117:5; 151:11 look 44:21; 96:22; 123:21; 124:5; 130:6,9, 10; 141:11; 142:24; 147:21;155:19;157:1; 58:17; 104:14, 15; 115:6; 120:9; 145:5; 150:4;70:3; 104:8, 12, 15; 109:8;150:3 loses 44:15 loss 44:7; 63:4 lost 36:10; 44:8 lot146:19;151:5;158:21 loud 36:9; 37:17; 47:10; 57:7; 62:13; 64:1; 67: I 8; 74:6; 92:20; 93:17; 97:1; 109:14;125:22;143:21 love 93:13 lunatic 149:22 lunch 112:7;113:24: 121:5; 123:21, 22 Luncheon 112:10 lung 21:6,17; 36:18; 71:19; 79:23; 89:25: 115:10, 14 M M.A 16:9,1o Magistrate 14:18 main 83:25; 147:4; 157:2 mainly 35:14; 119:8; 140:7 maintain 14:7 maintenance 54:23; 55:16, 22 major 36:14,16; 45:20; 47:7, 11; 48:1; 79:3; 105:18; 106:9; 107:6; I16:10 makes 66:8 making 117:17;138:6; 143:23; 158:8; 159:10 man 10:22;54:1 management 15:25; 145:25; 151:17 manager 90:13 managing 20:3 mandate 87:11 manufacture 67:21; 68:10, 13; 70:8 manutacturer 68:19; 32:2; 37:19, 22, 23; 38:10, 16;39:6,11 manufacturing 103:11, 13;104:1 many 7:6; 21:2; 47:15; 49:4:135:7,13,16,17; 136:3, 7,12 March 78:1; 84:10 Marcotullio 63:11,13; 154:15;155:14,15, 25; 156:13 mark 26:9; 141:1; 154:14; 26:23; 32:16; 42:24; 47:1; . 91:7;105:13,15;112:16; 118:19, 23;125:11,13; 129:8;1412, 141:2,7; 1147:15;149:5;153:11,13: 154:14;155:13,22,24 marketplace 50:2 Ma ry 25:21; 28:12; 94:17; 97:22; 108:6; 126:18; 153:14; 154:3,7 materials 55:11; 59:12;' 100:8 math 65:17 matte r 99:8; 102:11; 10:15;12:20;19:23; 152:15 mature 100:18 maturity 100:2,5 Max 53:3 may6:13;11:13;18:15; 21:15; 35:11; 42:6, 7; 52:1; 57:16; 59:14; 64:6, 20; 67:9; 75:17; 85:8; 87:13; 93:1, 9,16; 94:14; 100:2, 5;103:14,25;114:24; 115:8;120:10,18;123:14; 155:11 maybe 53:23;100:16,18; 108:15; 123:16; 147:12; 155:8, 21 mean 25:15; 28:20; 49:23; 54:2; 55:10; 60:15; 104:13;136:3;149:11; 75:21; 94:21;109:10; 150:9; 37:19, 24; 38:17, 17; 39:13; 54:3; 57:13; 115:1; 143:7 meaningful 19:19 meanl 13:17; 55:14; 75:14; 97:19, 20;115:4; 146:2;159:7 medical 33:13,17; 34:20, 22; 37:3, 6, 21, 25; 39:7, 13,15; 40:4; 41:17; 44:2, 14;57:9,13,15,24;59:'23; 60:24; 61:10; 63:2; 65:2; 70:19; 71:6, 10; 72:16; 73:7; 75:22; 131:8; 132:10; 142:1; 158:14 medical-cost 57:21 medical-cost-control 59:20 medical-insurance 59:24 G. DENNIS DURDEN Vol. 1, December 17, 1998 medical/scientific 70:12 meet 7:14; 126:12; 7:20; 12:13, 16; 83:16; 84:10, 13, 20; 91:19; 92:1, 3, 7; 106:4;105:17, 19, 20; 110:17; 125:8,15; 126:17, most 31:11; 109:7,8; 110:16t 139:15 motion 108:9 motivation 82:14; 81:1, 14 move 18:11 movement 95:12; 157:21 much 21:17; 26:16; norm 159:2 normal 29:5 - Nos 26:23 note 94:2; 13:19 notice 1433;118:6 notion 33:8 November 84:8; 155:17 number 27:6, 9,11,12; 19 meetings 83:4, 7,12, 25; 84:24 member 144:22; 47:15; 49:3; 57:15; 93:8; 112:22; 113:5 membership 81:4 memo 52:11, 14; 54:12, 13; 61:22; 62:7; 63:6; 154:17; 155:15 memory 94:10, 18; 155:8 mention 25:9; 114:3; 71:15 method 143:23 mice 115:18,18 middle 10:23; 11:5 might 39:17; 46:15; 58:4, 10; 66:20; 68:12; 74:7,14, 15; 7>:15; 81:14, 24; 82:8; 83:20; 107:19; 123:16; 128:23; 138:17;147:12; 157:21 Mike 5:16 mind 11:8;12:9; 58:15, 16; 65:16; 71:18; 72:14; 75:3, 24;104:8,11;117:7; 125:22;127:21 mind-set 34:15,17 mine 39:21 minute 10:21; 130:6; 133:20; 11:8;125:15 mischaracterization 137:23 mischaracterizes 76:17; 137:1 Misrepresents 66:4 missing 111:9 mission 30:17 Mobil's 56:14 moment 24:2 money 57:14; 65:8; 89:5, 11; 90:21 monograph 155:4,18; 156:7,11 monthly 57:15 moon 69:9 more 14:15;19:22; 27:10; 41:1;58:3;64:7;66:1; 74:8; 75:22; 83:17; 86:20; 101:2; 122:18; 131:8,8; 154:9;158:2, 5 Morgan 28:11 Morris 9:7, 8;12:15;14:1; 25:23; 26:5; 27:6; 28:5; 31:23; 46:25; 87:1; 102:7, 14,16; 104:2; 152:11; 153:15; 15:13 mortality 36:17; 44:9; 45:13; 89:14;100:21; 68:22; 83:21; 92:18; 103:9; 145:2 118:3; 120:23; 121:20; must 26:1; 29:16; 96:8 123:20 ; 141:5; 142:21; myself 12:13; 115:24 147:18 ; 31:8; 27:13; 118:15 ; 134:10,20 N N-a-r-r 23:25 Nabisco 12:15,17,18, 20; 13:5; 18:25 name 5:11, 13,16; 24:8; 25:2; 26:2; 27:12; 30:5; 42:25; 67:15; 85:19, 22; 88:2; 105:19;111:19; 113:11; 147:9,20; 23:24; 24:24; 25:21; 26:3; 81:8; 120:7;147:19;153:1; 28:10; 52:2;147:13 Narr 23:24; 24:1, 1,3; 32:19; 35:8; 43:5; 44:24; 48:3; 65:13,18; 67:1,10; 68:16; 69:14; 76:13; 141:8; 147:22,24; 149:2; 150:22, 24; 69:18; 149:6 nation 62:23 national 110:17 nature 98:17; 102:13,15; 120:1 near 62:9; 92:8; 96:15; 125:8 nearly 32:8; 55:13; 62:21; 64:15 necessarily 116:2,4 need 10:3; 14:23; 26:13; 59:11,12,12,14; 64:13; 72:25; 78:20;108:16; 112:7; 117:5; 128:22; 154:13; 55:11;150:1; 89:5; 72:25 negative 97:4; 143:25 neglecting 93:20 new 86:24, 25 news 65:2 next 56:13; 59:4; 69:1; 78:11; 79:8; 87:20; 117:23,25;120:20; 121;14; 124:23; 126:4,4; 129:6; 132:4; 133:23; 134:211 nicotine 23:13,18;88:14, 16; 102:1; 104:22; 105:7,8 nobody 149:22 nods 5:23; 6:3,19 Nonsmoker 96:20, 24; 97:10;115:1.1 nonsmoking 41:3 oath 5:5; 6:11 object 14:15; 15:8; 18:10; 22:8; 23:5; 37:9,12; 38:11; 48:9; 50:15; 56:3; 68:21; 71:12; 72:1; 73:17; 77:10; 80:8,18; 81:6,17; 88:18; 89:19; 90:1, 18; 95:13,19; 98:11,19;99:16;101.:11; 102:3; 120:13; 122:21; 127:16; 128:3; 135:9,15; 136:6; 140:13; 144:3,19; 150:13; 152:20; 155:6; 15:3; 66:10;137:22 objection 8:8,12; 12:18; 18:2; 21:9,13; 40:7, 9,12, 15; 41:18; 42:22; 46:7, 8, 17,18;48:17;51:21; 58:14; 60:1; 61:13; 66:2; 73:9; 74:25; 75:8; 76:16, 19; 82:1, 18; 86:17; 97:18; 100:9; 101:14; 105:1; 114:22; 118:12; 128:14, 25; 131:25; 134:13; 136:16; 137:1; 138:3; 158:18;18:12; 66:8 objective 67:18,19; 68:9, 18,18; 69:20; 70:6, 7; 27:21; 29:3,19; 92:10; 96:17 obnoxious 150:14 obtained 26:7; 27:4 obviously 10:10; 15:2; 153:24 October 125:16;154:17 off 12:11; 20:19; 21:1; 89:6; 91:9,10;152:3, 5, 6, 6 officer53:20,21;84:1 often 131:8 old 20:12 older 100:5 one 9:1; 13:18; 20:6; 25:9; 27:10; 2.9:7, 9, 9,10; 30:20; 31:4; 38:5; 41:5; 48:5, 6,13,14, 25; 52:18; 59:16; 63:11; 66:17; 67:23;70:2,11,12;78:25; 80:23; 84:3,19; 85:18; 101:19; 103:21; 105:25; 106:4; 107:18; 109:23; 114:2; 118:14; 123:7; 63:4; 70:13; 71:8 1 no r 29:9,13 Seattle Deposition Reporters 622-6661 Min-U-Scripto 51 91 9 61 70 (7) litigation - one
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ICOSI URGANIS?,TI031 POLICY 1, At the policy level is the Board of Governoxs. It rarets annually and decidbs main policy. Cne OE,icer from each member company, aits on the scard. P.hi.Lip Morris is rcaproscntad by Mr. Rugh Cullman. 2. Ircplenenting policy and day to day decisions is the Executive Cosraittea. :hia Cmuni.ttcc accts twa to three times a year, but its members are.in fraquaat contact in the intcrim. Mr.R.W.Murray 1's the Philip Morris r:ember, assisted by .Lr.s.M..Bartogh. The Chairman will be Mr. ':heo van Gorkom of Roth:oans who took over from D7r. K.Stcwaxt Lockhar,t ();AT}, V7.0 .UI::G I'30GA.U1.~1F:S. 3. At the working level there are kbr3cing Parties or Task Forces set u'p by thu F[acc!c•.:t1ve Conmiti.~ee to deal a'i+-h epecifi.c tasks ::a specific areas. Zach gro;zp works under a.n appointed Chairman and reports o:, the.i.r womk are ma3e to the ExecuUive Ccnrnitt•ee•., At the present ti.m.e these are the V7brking Parties: SAWP fSociai Acce:ptability working, Party}, Chairman: tir. D.burdcn, Rcynolds ESC COhSnmcxism, Chair:nan: Mr. D, von Spccht, BAT F.EC Pr.oduct Li.abiLity, Chair-man.: Mr.Ii.R.Douglas, Inperia.l STAC (Scicntific and ':echnical Action Groun), Chai:man: Dr.Fi.R. n^ent2ay, Iaperial Covering the 4th 'rlorld Conterence on Smoking and Healtbj Cn.'1ir7lant A7.r.J.M. Hartogh, Philip Mor_is PI,C (?'atacts oF ,advertising on cigarottcs), w CIlairmans ;Sr.J.M. F:azrtogh, pttilip Morris p W V ~
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IT C.V BE SHOWN THAT MY ABSENCE FROM WORK DOES NOT COST YOU AN,THING. AND THIS CCNCLUSION IS ONE w'fiIC:'. WILL BE SUPPORTED BY A WIDE RANGE OF ECO;VCMISTS. IN MOST OF THE CASES CITED AGAINST US THE NECESSARY BALANCE OF COSTS AND HENEFITS HAS Bc.EN AC :IE7°D BY TH E WORKING OF Tv : ECONOb3Y ITSEL,F.. 2. 'r7I AT SHOULD BE ANALYZED? IT CCES NOT Ma{E SENSE TO ANALYZ.? AN ENTIRE =tiDUSTR`?'S SCCI?.L COSTS. THE CyjL~ VALID AND USEFUL ANP.:.'_'SaS IS ONE T.°.a': FCCUSES ON A?RCFCS.=D GOVE?NY-E;IT AC':'ICN. IF THE GOVERNMENT IS GOING TO I?I1T S" IV A CP "., EAT ACT;CN WIL HAVE _E ]EeI S 4cIC:: uUS"_' EXCEED THE COS^ OF THE DAK IN ORDER TO .7USTI?'L ITS CONSTRUC- T;ON. IF THE GCVERtibf?N'.' IS GOING TO RESTRICT SMOKING IV RES- TAUR.:uVmc, THE nr;7 _rITS TO INDIVIDUALS OF THESE ACT;ONS MUST EX- C='c;D THE COSTS TO OTH: R INDIVIDUALS. NEITHER THESE COSTS NOR THESE EENEF=TS : c J"r A"NV^'4ING TO DO W7T:i THE COSTS OR HENLF :.TS OF AN E:iT=?,E INDUSTRY. SUCH AN AN.~L'!S:S IS SI.MFi,Y MEANINGLESS, AND WE MUST GET THAT MESSAGE ACROSS.
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- 1 - DENNIS DURDEN HAS OUTLINED THE MAJOR SOCIAL COST THRUSTS AGAINST OUR INDUSTRY. VARIOUS CRITICS ARE USING A FORM CF ECO- NOMIC ANALYSIS TO COME UP WIT5 AN INVOICE, A BILL OF SMOKING COSTS WHICH ARS PAID FOR BY SOCIETY. IT WOULD BE POINTLESS TO JUST DISPUTE THESE ARGUMENTS WITH SIMILAR DATA, TO ATTACK THEIR NUMBERS WITF. OUR NUMBERS. INSTEAD, CUR STRATEGY IS TO ATTACK THE CONCEPTS OF SOCIAL COST ANALYSIS. ti HAVE FOUND T1iA THESE CONCEPTS ARE MOST VULNERa3LE. IF WE CAN UNDE:v'dINE THE CONCEPTS, THEN WE DO NOT HAVE TO ENTER INTO PUBLIC DEBATE OVER SPECIFIC NUMBERS. CUR ATTACK ACK CONS=STS OF FOUR uAJOR THEMES: 1. THESE SCCi:?,, CCST CONCEPTS ARE BAD ECONOMICS. ..-------- 2. T'3EY DO NOT FIT INTO A PHILOSOPHY OF PER- SONAL FREEDOM AND CIVIL LIBERTY. 3. SMOKING BENEFITS SOCIETY AND ITS MEMBERS IN MANY CCMPLE:C WAYS. 4. ANTI-SMOKING PROGRAMS AND GROUPS ARE F?AZMFUL I TO OUR SOCIETY. - ----~
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• ~-.+....-.......w.....~..ru,...,.[. f Hodgson,*T. A., Jr. ZHE ~ OM1C C05TS OF CANCER. In: "C er Epidemiology and Prevention, Current Co 4epts", 0. Schottenfeld, ed. (1975). Pp, 29-59. (U.S.), METHODOLOCY: Rice nrodel of direct and indirect costs of disease; discounting present value of future earnings; data from professional activity study of Conunission on Professional and Hospital Activities of the American Hospital Assoc.; ~. estimates from National Disease and Therapeutic Index. THESIS: lhere are economic costs of disease which can be calcuiated. These costs are the value of foregone alternatives and include direct costs, which represent resources which could be allocated to other uses in the absence of disease; .and indirect costs, which are the value of idle resources and cost output., As for cancer, direct costs are proportionally smaller (18%) than indirect I fl costs (82%) but are increasing faster (168% to 62"% between 1962 and 1970), " Overall, the total econcmic costs of cancer increased relative to GNP between 1962 and 1970. Freeman ET AL, ECONOMIC COSTS OF PULMONARY E.xiPHYSE.'tA: IMPLICAiIONS FOR POLiC,Y ON SMOKING b HEALTH. Inquiry 13 15-22. 1976 HETHOOOLOGY: Data was obtained from published and unpublished sources of the National Center for Health Statistics and Lea Associates. NCHS data were collected by the 1970 Health Interview Survey of 37,000 U,S. households which Collected data on chronic respiratory diseases and smoking habits of the population. Transfer payments, lost tax revenues, training, special diets, relocation, industry R & D were excluded from the study. National economy was presumed to be at full ea:ptoyment. Present value of future earnings estimated by Rice's method, using 6% discount, THESIS: Although a cause and effect relationship has not been established, cigarette smoking has been implicated as the most important etiological factor in pulmonary emphysema. Total direct and indirect cost of this disease to society in 1970 is estimated to be ;1.525 Billion. Of this total, direct costs represent 12S and indirect costs 88Z, This study offers no policy recom- mendations.
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AV W 1.d1ASV1U:KJ V. PTIT1-1P MOTiKTS C. AJA-i1V~VAJ LUA1UAi1V Vol. 1, December 17, 1998 char\ge s5:22; 93:19; commentary 120:1 confirms 59:6 12; 47:3; 49:9; 54:14; 55:3; 96:13; 2=1:23; 143:10,11; commercial 29:5; 124:19 conflicting 95:7 56:18; 57:13, 24; 58:10, 151:11; 153:8 Committee 17:4; 24:5; Congress 82:20 11; 64:18; 65:1; 67:2, 7; 23; 68:12;70:14;72:3;74:1, chapter78:6,7;79:9; 47;20;93:7,8;108:4; considered94:8 , 1572 112:17; 1 13:6; 151:24; 149:22 10,14, 20; 75:1.6, 20; 77:1; Character 79:10; 80:6; 152:1; 154:20, 25; 24:16; consistently 33:4 130:23, 24;131:7;132:10; 98:21,22 154:10 consisting 79:3 134:5;135:3;137:18; characteristics 126:8 common 29:16, 16 138:17; 139:10, 13, I8; characterization 36:1; communlcation 97:4 consists 47:6,11 140:10;142:16;143:1, 5, 157:20 communities 38:2 constituted 47:23 25;15L•8;157:13;158:14, characterize 121:6; community 114:10 constructed 136:18 15 47:19;116:2D;157:17, 22, consultant 16:13; 26:3; cost-control 57:10 23 companies 16:15; 23:17; 111:20,15 25:11; 29:15; 30:17; 4'2:2; cost-saving 58:5 charges 134:3 57:13,17; 58;18, 19; 65:6; consumer 104:24;125:1 cost-shifting 38:3 Charles 5:13; 16:23; 842;1oD:8;144:22; Cont'd 112:13 154:18 148:18 contact 26:1 cosUsocial 110:9 Charlie 52:21;148:5 company 16:17,18, 20; contained 101:7; 122:10 CostslSocia178:1; chart 121:16; 123:14, 20, 17:1, 14; 19:2, 4, 6, 7, 20, content 8:6;15:10; 126:3 106:1; 107:7,12; 111:9; 22, 23; 125:5 22; 23:22; 25:5, 8,14,15, context 149:18 140:21:155:4 charter 42:11 17,18; 29:10; 52:23; 53:1, continual 97:3 Council 57:8 checking 119:8 2,3;56:2;60:21;63:24; continuo18:15;123:9; Counse18;2,10,15;9:1 72:22,25;87:16;89:5; , Chief 53:20, 21 91:2, 5;144;4, 13;145:20; 155'2 24; 10:11; 11:9; 12:1,14, 14; 13:19;14:1;15:11,13; children 100:1 147:18, 24; 149:12; 150:7; continuity 118:20 choice 96:25; 97:12, 17; 151:16,18;152:22; continuous 20:23, 24, 25 18:9; 25:7; 40:13; 69:8; 95:4, 9, 15, t8; 99:3, 8, 12, 156:21; 158:23; 159:3; contract 17:16; 7:13 159:19 15,19,20;100:3,24 72:23 contrary 128:17 counter 55:12; 138:9; cigarette 33:10;36:16; compare 73:25; 115:10; contribute 21:7 64:13 37:19,22;38:9.16;39:6; 136:14 contributing 89:17 counterattacks 29:14 41:1; 101:20, 24, 25; comparison 136:12 contributions 57:15; Countermeasure 92:22; 105:8; 121:18; 122:5; compelled 13:2 94:8, 24; 95:16; 133:24; 123:24;124:19;136:13; 152'2 134:1,22; 136:23; 139:8; 20:14, 15, 16,20.22,25: compensate 141:25 convening 85:G 154:20; 42:3,13,14,1G; 21.•2;23a4, 18, 19t37:24; camplete 116:1D; converset(on 13:24; 39:12, 18; 40:6; 41:4; 50:31 105:24; 106:15;107:5; 14:7; 149:16 48:G,14; 51:6; 8G:25; 87:4, 67:22;6S:1o,14,20;70:8; 110:10;111:11 10;9L•15,17;92:13;95:3, conveyed 301:9 25;96:7;107:25;108:3; 99:13, 21; IOL17;12124; completion 130:4 convinced 104:14 1 4 25 122:2, 19, 25; 123:10, 17; complex 47:15; 49:4 000 53:19 countries 106:21 124:20;135:8,18;136:5; complies 28:4;78:13; copes 31:11 count 138:19;143:23 83:23; 85:16;141:12; ry 29:7,9;60:G; Cincinnati 17:4 147:22-; 153:21; 155:20 copied 112:8 136:4 circles 157:23 comply 14:16 copies 53:5 couple 11:8,13; 29:2; circumstances 19:24 components 25:9 copy 12:4; 54:3; 104:5,8; 69:4; 78:12; 147:13; 152:7 cite 132:13; 45:4; 65:1 composed 30:16 112:7; 118:13; 155:21; courler 93:5 civil 47:1•l;158:15;159:7, composltion 98:20 118:6 course 31:3;46:24; 67:4; 9 concede 117:11, 21 core 39:20, 22 91:16;100:15; 133:19; civil-liberties 159:5 Corner 87:1,7 136:22 conceivable 127:8,14, 36:19 clarify 18:1; 118:25 IS coronary court6:2,12,14;8:23; clear 6:8; 13:17; 14:4, 13; concentrated 93:22; corporation 19:15 12:25; 14:8, 16,22; 26:9 18:6; 91:5;111:6;148:9 94:25 correcting 18:14 courtesy 30:22; 31:14; clearly 56:I9;148:23 concept 33:2; 51:22; correctly 94:20, 25; 32:13 client 13:22; 10:24 43:21;47:12;48:8,16 134:14; 149:7 coverage 57:16 clinic 61:1, t concern 55:1; 65:2•1; correlations 152:24 covered 92:24 close 156:2•( 66:19; 152:16;159:9; correspondence 154:16 covering 97:2 closely 116:24 66:20; 114:5, 10; 117:19; cost31:14;32:20,25t Covington25:22;28:12• 143:18; 34:6, 7; 81:25; 33:3, 8,16, 22; 34:10; 94,17;108:6;126:18; clue 97:22 87:25;89:2 13;90:9;91:3; 35 42:20 6 37:15 44:15 , ; ; : , t coaching 18:13 133:8 16;47:12;48:1,8,15; 153:15;154:4 coalitions 157:7; 158:1 concluded 159:17 52:6; 58:24; 62:22; create 145:13;55:8; coffee I35:1,13,16; concluslon 49:10;65:15; 130:20;131:11,21;132:1, 61:11 136:14;137:16;138:1, 17 139:18, 22, 23 22;133:1;142:23;155:18; Crohn 53:3 collect 29:12 conditions 36:18 30:23; 32:11;33:12,13, CT 147:19; 148:4,4 college 15:18, t9;1G:4 conduct 7:5;120:9: 35:8 17,18; 34:3,4,11, 19,20; culture 82:12 35:2; 36:8,12; 37:4, 7, 21, column 57:3 confer 11:9 25•38•9•39•1315•40•4 current 133:13 vr o, © daily 21:2; 88:15 data 58:18; 106:20 date 52:22; 83:25; 94:13; 10s:14;129:18;142:7; 27:22; 32:21; 61:23; 67:1; 87:15; 93:1; 129:19; 154:16; 155:17; 112:19 David 23:24; 24:1,1, 3; 32:19; 35:8; 48:3; 69:14; 147:24;150:16,22,24; 75:24 dawned 22:18,19 day 6:14; 35:18; 50:22; 67:5;104:15 days 43:3 deal 100:11; 148:21, 25; 149:23; 31:16; 36:3; 74:19; 88:9;126:10; 131:14;136:10,17; 148:10;156:14;158:14; 133:23 dealt 145:22 death 71:8; 74:2,11, 22; 77:2 DECEMBER 5:1 deceptive 140:11 decided 58:4; 145:8 decision 10:11; 11:11; 100:22 declared 97:9 decline 122:4, 23;123:4, 16; 124:6 decrease 90:17;122:11 deep 61:15 defendant 8:17,19; 10:24 defense 8:10, 14; 11:3, 17; 13:8,18; 14:2 deferred,and 105:25 def i ne 30:17; 41:20, 25; 31:13,18; 58:22; 59:2 defining 92:24 definition 34:1 degree 15:24 delayed 18:2 delaying 74:1,11, 22; 77:2 demonstrate 49:2; 57:22; 134:10,15,18,19; 135:1; 137:14; 139:12; 57:22 demoted 18:18; 151:13, 15,20 demotion 19:24; 151:5,9 denegrate 93:25 DENNIS 5:4,13,14; 48:1; 92:25;149:20 deny 139:14 combination 40:25 conference 82:25; 83:2; 24; 41:3,17;42:5;43:8, currently 143:5 Department 17:8; 149:13 Comment 155:17; 85 6,15; 86:6; 87:3; 95:10; 13, 13, 22, 22, 24;44:6; customers 64:7; 65:4; I departure 114:2 156:10;157:1 109:2; 157:5,16; 158:2 45:5, 7, 8, 9,12,16; 46:1, 66:1, 22;101:10 depends 98:12 Seattle Deposition Reporters 622-6661 Min-U-Scripto (3) change-depends
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- b .. EVE:1 IN MORE CCMPI,EX SITUATIONS, I:yVOLVING GROUPS OF PEOPLE, IT CAN USUALLY BE SHOPIIN TH.AT THE GROUP HAS ARRIVMD AT A SOLUTION WHIC:: ADEQUATELY TA.<E .`i INTO ACCOUNT THE COSTS AND BE:IEF =TS OF EACH MEMBER OF THE GROiJP. T3US,'THERE IS NO ~TUSTIFrCamION FOR THE LARGER SOCIETY TO INTERVENE. THEN, Svii .N MIGHT IT BE APPROPYI_AT°_ FOR THE GOVERNMENT TO ANALYZE SOCI?.T COSTS? CNZY WHEN SOME OF THE COSTS CANNOT BE u.ATCS:D WITH 3ENE_ _TS . THESE ARE CALLED "UNCOMPENSATED COSTS". FOR E:{?.MPLE, W'r.EN A FACTORY IN CNE AREA C.RE.ATES POLLUTrON IN ANOTHER AREA, SOME CF TP_F COSTS 0; THE FACTOR° PRODUCT ARE BORNE BY PEOPLE 4in0 HAVE HAD NO CPPORTUNITV TO PARTICIPATE IN THE ECO- NOMIC ..E.CIST_ONS WHICH ~ HAVE BEEN MADE. INDEED, T?:ERE :1°-A°- SE A FE'A CASES W~:ERE SMOKING CREATES UNCOM- PENSATED COSTS FOR NCN-S2?OKERS. BUT THE ECONOMISTS ARE QUITE CER- T?.IN THAT MOST OF THE ALLE Gs'.D 2dEDICAL EXPENSES DO NOT QUALi Y AS SOCIAL COSTS. AND THE MUCH LARGER C?.-ARGES OF ABSENTEEIS i AND LOST PRODUCTIVITY rLRr NOT SOCIAL COSTS AT ALL.
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UNFORTUNATELY, THE USE OF SOCIAL ECONCM7CS IS OFTEN A DISGUISE FOR EX..~RESSING A PARTICULAR POLI':`IC.3L P?:rLOSPE°. THUS, I? A WORX.;K IS r13SEJIT BECAUSE CF ILLNESS ALLEGEDLY RELATED TO SMOKING, THERE IS SAID TO 5E A SOCIAL COST. EUT NO ONE Sc.v.mG TO CONSIDER SXII?IG ACCIDENTS AS A SOC_TA_.T COST, AND CERTAI;ILY NOT TFiE TIME SPENT ON EOLIDr17. SO WIiET?iEii ABSENTEEISM IS A SOCIAL COST SEE.'4S TO DE- . ._---•-- ?END CN HOW yCU FEt_~OCm THE CAUSr:! TS_S IS AN ~RF.a OF P?1ILDSOP:3Y, WF'ERw WE NEED TO LCOX ?, 4+': 3':` PEOPLE HAVE A R_TGiiT TO DO TO TP=:M-- SEL'vES AND TO EAC : C':.'?i?:R. WE LyVE ASXED CNE OF T?iE LEADING ~;:7 TKE U. S. TO DE- r-----~'- VS,'LCP A P:-:CSCP:IC_..... POSI_ICN :vrIC: W:=.L, AG?,IN BE _'JRTL,R AD_ , DcZ-..SS'cJ HY uIS CCUN':.'ER AnTS I-i T?'E U.1. AND EUROPE. DR. RCcERT NC22C3 _ PROF;SSCR OF i.CSOP Y AT ;-:A_^•,VARD CNIVERSIT'!. HE IS BEST :CNCh~1 :OR :-:Ij RECENT ?CCK, i.NARC;?Y, STATE AND UTOPIA, A CL,...^ARLX-WR_TTE:1 STATEMENT OF TSE .,._3$R'_ARIA"N POSITION, WfiIC : WON TtiE 1975 NAT;ONAL BCCK AWAKD.
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THE 7CQSI SliC3E^.ARY GENERP.L, MR. JCLI,AN D'JYT.+E Mr. Jnlian Doyle has signed the te=ms of agreement with ICOSI and takes up his appofntmont as Secretary General on 16th April. fli.s firstt engamenent. is to attemd a 2-day Briefing Session i.n Lruaaels, April 17 end 18f givcn by members of the interim Office. He wiLl then fly to uew York on Apri1 2S to carry out hic induction prograane in the U.S.A. which tir. hltt of It.J.R. !•s arranging. T•.t ia experted that he w1•zi be back in B:usaela by May S2 and his next assignment will be the Trade Associatiors Conference in Zurich on May 20 - 23. ll..ring the interim wcek he will have the opnostur.ity to mcet Mr. van Corkom, the Chairaan of the ExecutS.va Committee. it is planned tknat, after the Zurich Confcrcnce, a puogranma ot visLts to FSxecutive Cotzmittea mnl*cra in Europe ancJ their 1,.)ca1 Trada Acsociations will be arranged °or Ju•Liza Doyle. PROGRAMML POR ICOS2 )iR2ETING Oi 'Tl2h'' SCC:2Ei:32Y GFVERi L BY T'iE Iti•PLRI?3 C•P:"IIE CI'r:N?L•:R.9 This briefiing will take place at the Inftcrim Office in Brv:ssels on Apri1 1T and 18. '.'•nq prc.ranwte ifi a.: foilows: Histoxy and Ra3aon d'Etre oS ICOSI M.~.II. iiulholland (Gallaher) - Review of senaitl.vta azeas by ccuntr•t: (1) 0.5.A. P..X. Schuler (RJR) (2) U,X, xzi: i;iz:e M.F.x. Mulholl.:nd (Gallaher) M+ ~ . (3) G~ira:any C. vogel (Reemtsr,a) (4) Switac:-land R.t1. Corner (Philip 1'orrisl W h s ~ (5) Bcnelux C.J. de b;os - * h! V ~ (Turmac/Rothmans) - Role of the Tnt:ornational Bod-les R.M1. Corner VI U+ ,... (e.g. 4fEio, UNCT:.YD, ata.)• {Phi1Lp PSoiTis) ~ m
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THE TECHNIQUE CF CCS7/BENEFIT ANALYSIS WAS ORIGINALLY DEVE- LOPED IN THE 1920'S TO ASSIST THE U.S. GOVERNMENT IN MAXING INVESTMENT DECISIONS. IN FACT, THE ANALYSIS WAS AIM,ED AT ONE, VERY NARROW, :CIND OF DECISION: I? WE ARE GOING TO BUILD A DAM, AND WE HAVE X-DOLLIRS TO S2END, WHICH OF SEVERAL POSSIBLE DAMS SHOULD WE BUILD? NOTICE HOW MUCH C,7F THE DECISION-MARING IS STILL OUTSIDE OF COST/3E:IEFIT ANAL'_'S_TS; - WE WILL BU=,LD A DAM. - WE WILI. SPEN:: X-DCLLARS. - THESE AR-E "_':i2: ALTERNATIVE DAMS. THE RCLE OF CCST/OLNEF'lT ANALYSIS WAS LIMITED TO AN APPRAISAL OF ALTERNATIVE INVESTMENTS, ONE AGAINST THE OTHER. IN RECENT YEARS, SOME OF THE CONCEPTS OP' COST/BENEFIT ANALYSIS HAVE BEEN APPLIED VERY LOOSELY, ESPECIALLY IN THE ARE.~. OF GOVERN- MENT REGULATION. RIGHT NOW A MOST F.EATED DEBATE IS TAXING PLACE IN THE U.S. OVER THE "ACCEPTABL$" LIMITS OF VARIOUS SUBSTANCES. ~ 0 N O ~Q iiCW MUCH RADIATION IS "ACCE2T.~3LE" AROUND A NUCLEAR PLANT? Lm W2 -4
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-2= Ultimately, the gcal of public policy proposals related to this issue are to reduce health care costs by reducing smoking incidence through some combination of increased taxation, reduced cigarette advertisir.g and more heaith education; to end the subsidy of snoking and its health costs by the non-smoking public; and to induce the development of safer cigarettes. KEY CONCEPTS , Attributability - The idea that a percentage of the cost fcr sickness and death from lung cancer, bronchitis or coronary heart disease should be attributed to cigarette smoking since studies show the relationship of cigarette smoking to various medical conditions. These studies provide the raw data from which attributability is estimated. Estimates in the,U,K. were based on the mortality experience of British doctors over the period of 1951-61 by applying the death rates of doctors who were non- smokers or smokers of various numbers of cigarettes, to the entire U.K. population. The difference between the number of deaths which ` would have occured had all men been non-smokers and the death rates of smokers and nom-s:nckers in the general population as projected from the doctors study was the excess number oC deaths attributable to smoking. Direct Costs - Direct,costs according Lo Rice, who did;th~;;s~ninat:~ror~ irt,.,this aree;:1A 196.tv.: include expenditares fors;@r~~riiiiin,~tectic~ii, tr=a~.ent`. rehab:iTitatiion, research, training and'capiwa~"9uvesfjcent in':dAidica'1'" "' facilities. Indirec Represent the sun of loss of income due to illness and the present value of future lost income due to premature mortality--usually calculated at a 4.-6t discount rate. They account fcr abeut 80" n' to*-aLh.e.alth costs. Subsidy - Non-smokers ac.ong the public in general subsidize smokers' disability and death costs through government payments for smoking-related medical or welfare costs. SEMINAL WORKS Establishinq a link between cigarette smoking and various illnesses or -early deatht ~ - Surgeon General's Advisory Comnittee, SMOKING AND NEALTti, Washington, GPO, 1964. . - Doll & Hill and Doll E?eto, 10 and 20-year studies of British Doctors. Royal College of Physicians, London 1962, 1974.
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...,,.,..... . . . ..~ .... . ~................./~ I.f.•.iawrr.r.-:mnrrryv:r:.>: er::r.::an:. Luce, B.R. & 5.0. Schweic r THE ECONOMIC COSTS or SMOK15 NDUCED ILLNESS ln: "Research on Smoking Behavior,'• National Inst. Drug Abuse Research Monograph Ser. No. ?7• 1977• METIi006LOGY: Cites previous research incl. USPHS "Health Consequences of Smoking"(1965) Royal College of Physicians "SmokinU and Health Now"• ~ Cites cost estimates of selected diseases from Cooper & Rice (1976) and , Baden's 1976 estimates of the percent of various diseases attributable to smoking. Economic costs are multiplied by correspondtng smoking factors to arrive at estimates of the cost of various diseases attributable to smoking. Present value of lifetime earnings discounted at 4<. Previous metheds of calculating costs are criticized. THESIS: Smoking results in a major drain of the nation's economic resources in terms of both direct and indirect health care costs• In the absence of these costs, resources could be reallocated to other sectors of the economy and - there would be more healthy individuals to enjoy them. J ( ,_, ... Cuce, B.R. 6 5.0: Schrreitzer SMOKIN6 AND ALCOHDL~IIBUSE: `A' COMYRB25dN'OF THEIR ECONOMIC CONSEQUENCES, New England Jour. M•ed. 298 (No. 10). 1978 METHDDOLOGY; f Citing previous research esp. Berry's 1971 estimates of alcohol abuse analyzed in terms of 1976 dollars and compared to costs of smoking (also adjusted to 1976) derived from Cooper & Rice's (1976) cost estimates of selected diseases; and Boden (1976) estimates of the percent of those diseases attributable to smoking. Direct and indirect cost concept is used. Present value of lifetime earnings discounted at 4A. TIfESIS: Direct and indirect economic costs of smoking are large and measurable, although they are considerably less than alcohol abuse (527.5 Oillion/Yr. -as compared to $44 Billion/Yr.) mainly due to lower direct health care costs for smoking-related illness and higher motor vehicle accident• violent crime and social rehabilitation programs related to alcohol abuse. Per ~ capita cost of illness related to smoking is estimated at 5459/Yr. . ~ O . G•! N . GC . ~
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TXESi, TWO GENTLE'R.F'.N ARE CO-AUTHORS OF A FORTHCOMING BOOK CA.i,Lc.D PERSONAL LIBERTY, STATE ACTION AND ECONOMIC CCORD_NATIGN, A TIT?.E WHIC3 CERTAwNLY COVERS THE SUBJECT OF THIS PRCJ.?CT. THE ECONOMISTS WGMING ON THIS PROJ'cCt ARE FIRST DEVELOPING A"LAY:7PN' S GUIDE" TO S OCI? L COST/SE:IEF IT ANALYSIS. THE ATTACXS AGAI:7ST US Cl'.A,I:1 TO USir ECONOMICS TO JUSTIFY FURTHER ACTION. THE IA'SYA;]'S GUIDE WILL ADDRESS T?REE K£Y QUESTIONS. 1. 4r.Ea IS SOCIAL CCS'"/3EV?:I'" ANALYST_S CALLED ~CR? THERE IS A LIMITED QUANTITY OF RESOURCES ?.JAILn3:,E TO SCCIETY. JUST SC )4UCH b?.ND, LABOR AND :^1?TrR;:.LS. THE OBCECT CF CCST/3E;IE- FIT ANAi.YS_S IS TO GET THE ua.{I.^U,^ FROM THESE RESOU:cCES. BUT WHAT IS VALUE? TO THE ECONCM=ST, 71 7 THE VALUE THAT PEOPLE, AS INDIV_DC?.LS, PLACE ON SOMETHING. rOr. THIS REASON, MOST COST/ ----- BE:IE FIT ANALYSIS IS ACCOMPLISHED BY PEOPLE IN THEIR DAILY ECONOMIC D£CIS_TCNS.. IF I AGREE TO PAY THE PRICE OF A PACX OF CIGARETTES, I AM SAYING THAT TEE BENEFITS I GET ARE AT LEAST AS LARGE AS THE COST OF THE RcSCU-RCES USED TO M_AXE THE CIG:,RETTES. AND I AM SAYING =YER IS NO OTHER USE OF THIS MCNE: WEiC^ I VALUE MORF. HIGFiLY, OTHERWISE 1 WOULD SPEND IT DIFF E2ENTLY.
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TO T`IE ECONOMIST AND THE PHILOSOPHER, IT IS UNIMPORTA.~VT WHY ?ECP:.E PI,?.CE A VALUE ON SMOKING. BUT, SI':+1C E OUR SUBj-,CT IS SOCIAL COSTS AND SOCI.aL VALUES, WE FELT IT WOULD BE APPROPRIATE TO SHOW FiOW SMCKING SERVES MANY SOCIAL ENDS. SEVERAL FT_NDINGS OF OUR OPINICN SURVrY REVEALED THAT SMOKERS ARE MORE AWAR~'. OF THESE . VALUES THAN NON-SMOFCr:LS. SFZRWIN FEINFiANDLER IS A CULTURAL A~7TqROPOLOGIS^. WH0 HAS ER- . - r. ~++ MINE:~ ?.E POR'.'.'S CN TF?. SOCIAL EOL? OF unq cr.yG ri ,.~= - - - c]VEi 180 D__.:.~v, Ci;LT URES. AS A R`SUL." OF T;:ES: ST.UDIES, IS CONVINCED T?iAT SMOKING PROVIDES CERTAIN UNIV`•,RS:1L :^NEF ITS, ALT_HOUGE THEY MAY ,+PP°_A.i I?T DIF FE.RENT FORMS FRCM TI_'dE TO TIME AND IN DIFF ERZNT SO- CIE'TIES . DR. = I~1'r'A*IDLER IS PRESIDENT CF SOCI??, SYSTEMS ANaLYS='S, A CCNSUL.=NG FI-cM WHICH EVALUATES TES WAYS IN WiiICS VA3IQUS ACTI- VITIES ARr IMPORTANT TO SOCIETY. HE IS A LECTURER AT THE HARVARD UNIVERSITY MEDICAL SC :007., AND HIS TESTIMONY BEFORE CONGR-~,.SS ON PUBLIC SMOfi=NG WAS MOST HELPFUL. Ln C N C ~ a rn C ~
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Srrith, D. J. S!10KIRG, TY'- 9URDEN TO INDUSTRY. Safety su( ror. UK (May 1977). tl , costs. Ultimately, the goal of these proposals is to end the subsidy of smoking ~ and its health costs by the public, and induce development of safer cigarettes, ~ y r uc n uce maou ac urers p t cigarette manuf acturei s, or a sa ety tax to d safer cigarettes while providing the means to pay for smoking-related medical Cigarette smoking causes sickness and death. The economic costs of smoking- induced diseases are measurable and large. Presently, a substantial and growing part of the economic costs of smoking are borne by non-smokers among the puhlic in general who subsidize smokers disability and death costs through govt. weifare payments. f~ The public shouldn't bear any portions of these costs. Rather, the burden should N i be shifted to smokers and cigarette manufacturers through civil adjudication to permit welfare agencies to recover medical costs and transfer payments from ~ to d o e f i i [IS P1~•} ~ '~"~•y ' J ~ 1~1".~,~ ~ ~(YtMl,vf,l NI 4 \Y~hjfj'Y ..... '.( •. . ~ ~ . . . .. . .. . HETHODOtOGY: Various studies support the proposition' that cigarette smokers have shorter lives than non-smokers and that smoking-related diseases are important causes of death and disability. Economic costs of premature death and disease attributed to smoking are calculated. Citing previous research esp. Doll & Hill and Doll & Peto, 10 and 20-year studies of British doctors. THESIS: ......... • ... Garner, D• N. CIGAitETTES NiA"dELFARE REFORH: Emory LaH Jour. 26 (No. 2) 1977. , HETHDDOIOGY: Cites legal precedents, legal theory, esp. G. CaTabresi on The Cost of Accidents, and previous research on medical costs of smoking, incl. Hedrick. TWSiS: W
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' 3. WHAT IS TuE'PR0PER OBJECTIVE OF THE ANALYSIS? FROM THE POINT OF VIEW OF ECONOMICS THE OBJECTIVE OF GOVERN- MENT INTERVENTION IS TO RESCLVE UNCOMPENSATED COSTS. AND, FUR- THE?MORE, TO RESOLVE THEM IN THE WAY PEOPLE AT LARGE WOULD IF THEY COULD NEGOTIATE WITH THOSE WHO ARE GETTING THE HE:IEFITS. FOR EXAMPLE, CONSIDER SMOKING IN AN ELEVATOR. THE SMOKER GETS TO SMOKE. BUT SOME PEOPLE ARE MADE UNCOMFORTABLE. IT IS NOT REASONABLE TO EXPECT THEM TO WALK TO THEIR FLOOR. SO SCME RULES MAY B: NECESSARY. BUT A TOTAL SAZN ON SMOKING S2:4P:.Y R. - 4ERSES THE INEQUITY: NOW THE SMOKERS ARE UNCOMFORTABLE FOR THE SAKE OF THE CCCASIONAL NON-SMOKER WHO OBTaCTS. TI? E PaOPE:4 A-:1 V JF CCS:/BEVEFIT ANALYSIS WOULD BE TO HELP F_ND A SCL'JT;CN 4+i?=C: IS "FAIR" TO BOT H SIDES. THIS LAY:"PN'S GUIDE WILL INCLUDE THE PARTICIPATION OF ECONCMIST_S F30M COUNTRIES OTHE R THAN THE UNITED STATES. WHEN A BASIC POSITION HAS BEEN ESTABLISHED, THE ECONOMISTS WILL EXAM7.IE CLOSELY THE SOCIAL COST PAPERS WHICH SAVE APPEA..RED IN EACH COUNTRY. A CRITIQUE OF EACH PAPER WILL BE FILED WITH ICCSS ALONGSIDE THE PA.P°_R ITSELF. THIS WILL PROVIDE US WITH A WEAPON AGaINST ARBIT ?RY, C? 4 LESS 'ATTACKS USINC "SOCIAL COST" AS A F.?7_T0] LE. ~14 C N 0 b c 0 N
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C. DENNIS DURDEN VoL 1, December 17, 1998 depict 113:5 deponent5:4 deposed 102:7, 9 deposition 6:13;8:1; 11:19;13:10;15:1;33:4; 47:2;102:11,17,24; 103:1, 4, 8, 15;104:3, 6; 141:8; 149:6; 154:15; 155:14; 159:17; 11:21; 103:18, 20 depressed 124:20 depressing 122:25 deputy 16:23 describe 30:15; 36:2; 54:10; 57:9, 19; 60:12; 64:12; 69:17, 20; 117:20; 70:1;106:9 describing 54:14; 109:19 description 29:18; 31:15; 150:12 designed 97:3 desire 145:21,24;146:1 desk 24:18 detailed 156:10 detectio n 43:25 determination 12:25; 13:3 determine 14:20; 72:6, 9, 13; 123:23; 88:13 develop 14:21;40:5; 41:7;49:2;92:12;95:7; 96:17; 97:2; 137:7; 138:9; 146:22; 13:9; 55:11; 39:18; 86:25;126:12, 25 Development 17:4;41:4; 81:4; 91:15; 107:25; 108:4; 121:6 die 71:23, 25; 131:9 diet 34:24 difference 38:12; 46:3 different 50:9; 128:6; 136:21; 158:6 difficult 13:3; 31:11, 16 Digest 122:7,10 direct 25:f; 32:10, 25; 35:1& 40:17; 43:7, 13, 22, 24; 44:15; 45:7,16; 54:17; 61:20; 67:6; 70:14; 78:6; 79:7;119:12;125:19; 130:16;143:25; 158:21 directly 25:3; 63:2 director 16:23; 17:20; 18:19; 52:24; 151:21, 22, 25 disagree 116:4 disagreement 10:23 discouraged 135:6 -discovered 81:16 discovery 27:4,10, 17; 32:22:43:2; 47:1; 77:24; 91:14; 105:17; 141:4; 142121; 147:17 Discrediting 95:5;108:9 discuss 7:15; 59:9; 1 depict - faciiities (4) 78a 7; 85:3, 4; 87:3; dossier 128:23 l 03:15; 126:7; i 41: 20; double 56:17, 21; 57:12, 144:6; 65:9 discussion 7:20; 8:7,9; 23;61:8,10 doubts 114:23 10:16;11:14;12:2,11,15; down 6:12; 18:18; 47:5; 13:21; 84:24; 91:10; 53:6; 62:9; 77:16;120:4; 125:5; I26:20, 2l, 24; 124:12; 126:9; 123:24 142:2; 149:8; 15:10; Downtown 17:4 102:5 6 , Doyle 85:19, 24;143:15 disease 21:7;33:11,13; 36:19; 37:14,15; 70:21; Dr 12C,:1;127:4, 9; 128:1; 71:20; 74:1,10, 2.1, 22; 142:12 77:2; 89:25; 21:8, 22, 23; draft 79:9;111:15;154:4; 22:4,13; 23:1; 37:1, 3; 140:22; 82:11;113:17; 71:15, 23, 25; 723, 14, 15; 141:15 73:6, 6, I D, 12; 89:18; draw 49:10; 65:15; 132:15 113:10; 139:18 disposal 97:6 drawn 43:12; 94:22 disseminate 95:17 duces 6:22; 7:1; 11:24 dissemination 95:7 du e 44:7, 8; 87:22 distinct 32:1.2; 50:11 duly 5:5 distinction 43:12 DURDEN 5:4,13,14,16; distributed 106:15 district 51:1 doctor71:10;60:24; 73:7; 122:6 document 26:14; 27:4, 14,18,18;29:23;32:15, 19;35:3,11,21,23;40:19; 42:25;43:2,3,11;45:2; 46:25; 47:2, 5; 51:10, 24, 25; 53:5, 13, 14, 16; 54:4; 61:21; 66:4; 67:1; 68:23, 8:11, 15; 9:5, 24; 10:8; 11:18; 12:17,23;14:25; 15:11;17:25; 29:18; 39:10; 47:18; 48:1; 61:23; 69:7; 92:25; 105:15; 109:17; 112:15; 135:8; 149:20; 159:16;150:10 during 12:21; 18:4; 41:24; ,50:17; 130:7137:9;141:13;143:17 duties 89:6; 146:2 24; 69:3 8; 73:24; 5 , , 76:17; 77:24; 78:9, 17, 18, E 19; 80:10; 81:23; 82:9; 8; 87:15 16; 88:3 5 , , , e.g 126:3 89:13; 90:14; 91:8, 14, 23; 92:1 I, 17; 93:14, 15; 943, earlier 58:22; 75:12; 87:4; 15,17,18,20;95:4,9; 131:9; 145:5; 147:24 96:6; 97:23; 105:16,17; early 20:20; 21:25; 22:2, 107:19;108:10,13,22; 12, 22; 73:4, 22; 103:21, 109:6, l8; 1 10:22; 111:6; 22; 114:15; 143:11 112:6; 113:5, 9;114:3; easy 23:9 116:25;117:1,17;118:14, economic 74:1, 10, 20; 18,19,21;119:25;120:20; 77:1;132:14; 140:7; 123:21;124:23;125:5,20; 129:5, 7, 10; 130:1,2,12; 47:12; 48:8,16; 51:3; 112:2 21; 131:23; 132:13 , 133:21; 137:2,24; 140:21, E:conomists 62:18 24,25t141:3,6,9,10,13; economy 49:18, 23 142:9;147:12, 17, 20; edge 85:11 149:4; 15UL2, 12, 14; 6:24; edited 154:5 7:2,4,5,6,I0,12;11:18; edits 153:8 23:21; 26:7, 9; 27:16; education 41:2; 132:5 28:14; 42:17; 64:20; effect 104:21;122:20 25; 82:24; 83:20; 89:15, 23; , ' - 137:14 16 7:18; 120:8; 90: /; 93:3: 10 , 140:1;152:9; 153:8 ef f o rt 27:8; 32:4; 48:15; dollars 45:14 17;46:4; 55:12,12; 75:10; 80:5; , 81:13;115:20;148:21; 65:21; 67:6; 72:4 42:4; 54:25; 55:20 21; domain 122:19 , 66:21; 68:11; 87:23; 88:7, domestic 53:25 25; 93:21, 22; 148:24; Don 153:1; 154:9, 24 149:24;152:9;157:12; done 44:18; 77:19; 158:13 106:19; 109:11; 115:10; either 8:20; 14:2,17; 142:5;145:15;.146:20; 24:14; 27:24; 51:20; 150:1 58:12; 109:3;116:5; Min-U-Scriptu 126:7; 144:10; 152:11, 17 elements 157:20 ellipses 94:3 else 25:19; 49:17,19; 147:6, 8 emphysema 71:19; 89:25 employed 50:12 employee 12:17; 53:25; 58:4; 158:10, 22 employee%mployee 158:2 Employee/employer 60:11 employer 18:3; 57:10, 21; 58:4,10; 61:12; 158:10, 20 employer/employee 59:20, 23; 60:9; 157:12 employment 7:13; 12:20; 13:23 enacted 95:17 end 41:2 endeavors 67:20 ended 63:18 engage 42:3; 58:4; 87:10; 96:7; 34:23, 24 England 84:4 enhances 101.:25 enormous 132:14 enough 6:8, 9;14:4; 33:5, 25; 37:5; 46:23; 58:13; 59:13; 66:22; 68:14,15; 73:16, 22; 77:9; 98:18; 99:15; 101:10, 13; 103:23; 111:2; 116:3, 4; 120:3, 6; 130:11; 142:4; 146:18; 156:23;158:10,17 ensure 41:12; 123:9 enterprlse 157:18; 158:12 entire 26:13 entities 16:15 entitled 47:2; 112:17; 113:12; 142:22 entity 156:20 equal 137:15 equated 138:18 . essential 59:7; 93:7 essentially 146:2 establish 108:23, 24,1; 151:7 estimate 19:12,19; 108:22; 132:17; 62:22; 65:12 etc 88:1; 95:8; 135:2 even 35:7; 55:5, 13; 64:6, 15; 67:9; 69:14; 79:25; 93:11; 95:24; 100:4; 116:1;139:12;144:6; 147:1 event 13:10 eventually 54:24; 55:19; 116:13;123,3;140:22 evidence 21:20; 29:13; NW LABOREftS v. PIIILLP MORRIS 74:8 exact28:2;1.02:15 Exactly 54:7; 115:12 EXAMINATION 5:9; 112:13 examined 5:6 examining 126:2 Examples 29:7; 95:8 except 7:13; 26:4; 88:23 excessive 142:1 excise 34:14; 50:4 Excuse 17:25;48:9; 79:17; 94:1 executive 52:17; 93:6, 8; 154:24 exercise 135:2; 136:15; 137:17 exert 158:20 Exhibit 26:23; 27:1; 28:21; 32:16, 19; 35:24; 42:24; 43:19; 44:21; 47:1; 51:24; 57:2; 61:20; 65:12; 66:25; 67:5; 69:17; 77:23; 78:16, 20, 23, 24; 79:2, 8, 8; 83:22, 24; 85:13,17; 87:14; 91:7,12,18; 94:16; 105:13,16;107:20; 108:18, 25; 112:16; 119:3, 9; 125:12,13; 129:3, 8; 141:1,7;142:18,20; 147:15; 149:5;153:11,13; 154:14; 155:13,22, 24 existed 44:23 existing 116:15 exists 9:22 expenditures 43:24; 62:19; 65:11; 72:16; 74:22; 132:10 expenses 63:3; 65:2; 131:12 expensive 34:22 explain 143:8;126:6 exploration 140:15,18 exploratory 139:8 explore 133:24; 134:1,7, 9,16; 137:3; 138:7,11, 12, 16, 20, 23;140:2;139:25 exploring 93:19 exposure 69:23;77:14 express 23:17 extensive 128:22 extent 15:8; 23:10; 48:21; 154:8 extra 139:13;141:25; 155:21 F F 93:10 fabricator 19:17 fab ricato r/pac kagin g 19:7 face 67:14;87:19 facilities 16:14; 44:2 Seattle Deposition Reporters 622-6661
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WITHIN THE SUBJECT C')F COST/BENEFIT ANALYSIS, THE PHILCSOPHZR LOOKS AT SOME SUBJECTS 'r13iICH ARE IMPORTANT, BUT VERY DIFFICULT FOR T".~-. ECONOMIST TO DEAL W::T?. FOR EXAMPLE, THERE IS A VALi]E TO HAVI:IG A GOVERNMENT WF'iIC:'. DOES NOT INTERFERE WITH PERSONAL BEHAVIOR AND FREEDOM OF CHOICE. IF SUCH RESTRICTIONS ARE BEING CONSIDERED, FOR "SCCIAi, COST" REA£~;CNS, T_~.. I:: LOSS OF T:?ESE FREEDOMS MUST BE COUNTED AS PART OF TIiE: COST OF THE GOVERNMENT POLICY. mrE P.?ILCSCPfiER INTS:::.PQETS MAN°_ OF THE KEY ISSUES IN USEFUL, 'r.Uc+_aN TC~MS. W:: WOULD CERT: :NLY AGRE:, THAT PREl~+.ATUR°_ DEATH, ILLNESS AND ABSENTEEIS:4 ARE BAD. BUT WHEN THE AIVlLYST LABELS THESE PROBLEMS AS COSTS TO SOCIETY F=: ?:S EX?RESSIvG A PHILOSOPHY MORE APPROPRIaTE TO A SLAVEE S^ amE THAN TO A DEMCCRACY. LOST WORKING TIME IS A SOCIAL COST ONLY IF MY _.;~_2OR BE:,CNGS TO TEE STATE. THEN, OF COURSE, SOCIETY HAS A RIGr:T TO PROTECT ITS PROPERTY, WITHOUT MUCH REGARD FOR WHAT THAT "PROP ERTY" WOULD PREFER. IF LOST WORKING TIME IS A COST TO SOCIETY, HOW SHALL WE VIEW RE- TIRrMENT? DOES ONE HAVE AN OBLIGATION TO THE STATE TO WORK LONGER, CR TO WORK AT A PP:RTICULa.R JOB? IS A DOCTCR FREE TO BECCME A `'POTTER? y"..-...-....`..'1
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1EiAT LEVEL OF TOXIC CONTAMINATION ' SHOULD BE ALLOWED I'q VARIOUS FOODS? TSE DEBATE, HOWEVER, IS NOT SO MUCH ABOUT WHAT TI:T-- LI;LTS SHOULD BE, BUT WHETHER COST/BGNEF IT ANALYSIS IS AN APPROPRIATE METHODOLOGY TO USE FOR SUCH DECISIONS. THE LEGITIMACY OF COST/BENEFIT ANALYSIS IN PRODUCT REGULATION IS A SUBJECT THAT GOES :'AR BEYOND OUR INDUSTRY. THE APP L-=TZCN OF SCCI?._'. CCST ANALYSIS TO S.dCK;NG IS DE_'ECTI7IE ECONCMT_CS P?PLIED TO UNCERTAIN DATA. TO DEVELOP ° HIS POINT, WE HAVE CAI L 0 ON TAO i E;7IVG ECONOMTS 5 FROM T i_ CE IT_R FOR T iE STUDY JF PUBLIC C::OIC.:, V'=::GINIA PCLYT°CiiNIC INSTITUTE. DR. RIC::...^ ++;+G2dER IS THE AUTHOR OF 11 30OKS AND MCNCGR??5S, AND OVER 20 ;LRTICLES, IN THE'FIwL.D CF PUBLIC FINANCE AND ECONOMICS. DURING THE LAST YEAR HE WAS VISITING ?ROFESSOR OF ECONOMICS AT THE R..L':1CWNETJ LTIIVERSIT_° OF KONSTANZ. HIS COLLc.aGUE, DR. R OBERT TOLLISCN HAS SERVED AS A CONSULTANT TO =-- U.S. GOVJRNME:IT TREASURY DEPARTMENT, COMMERCE DEPARTMENT, OFFICE OF TECHNOLOGY ASSF.SS2^x'NT AND TH E COUNCIL ON WAGE AND PRICE _STABILTTy.
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DR. FyINHANDLER'S BASIC POSITION IS THAT SMOKING ENABLES PEOPLE TO FUNCTION BETTER IN SOCIETY, REDUCES SOCIAL FRICTICNS. HE ALSO BELIEVES Tw:AT MANY ANTI-SMOKING PROGRtLM.S AND R ESTRICTIONS INCREASE SCCI?L TENST_CN, HIS ROLE IN OUR PROGc'ZAM WILL BE TO OBTAIN THE NECESSARY E:~7LORATORY DATA TO DEFINE THESE HYPOTHESES FURTHER, USING U.S. SOCIET° AS A MCDEL. r_ _.__......... ....... ..... I ............. , E:GICTT_." HHOW THESE SOCIAL FUNCTICNS RELATE TO CNE PiNCT::ER, AND HOW ,...ECTIVE EACB FUNC°_'ICN IS, WI'_,.L BE A MATTER FOR LOCAL IvVrSTI- GAT=CN AT _'H.: JIA^_'_CN<"~L L'cVE:,. SUT, __ DR. 'EI\ IE:3NDLER IS RIGc:T, WS CyN DEFINE TwE BASIC SOC-TAL ru?p.CTS OF SMOKING :u1D ?.NTI-S24CK=NG r1N'?rfiER , r.ND T3?E:I AL:O?T HIS FINDINGS ON A COUNTI~_-3Y-COUNTRv BASIS WITi TII9 'r: P OF :.OC.:~j E:{PER^'S IN FIELD. THE :(=:VDS CF ACTIVITY DR. _..._TNHANDLER IS EYAMIN;NG FL.L INTO T4B.EE BASIC AREAS: 1. PERSONAL SPACE. TSiIS CATEGORY I24CLUDE S ALL THE WAYS IN WHICH PEOPLE MAKE .THEIZ t., ~ ~ SURRCUND_NGS SUIT TuE=R NEEDS. FOR EY.7.,`dPLE, PEOPLE TEND TO uFA- m N c N N 6~ SURE ^."=;L:. BY TF.EIR SMCKING ACTIVITY. AN IROQUOIS I`IDIA:I W=LL DE- N C b • FIND A.TCURN.5Y AS ONE TSAT TAXES T?iR$.:' PIPEFULS OF TOBACCO.
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DR. BERGER PBRC.°:T_VES SEVERAL MOTIVATIONS AMONG THE MORE VOCAL aNTT•'SMOKERS WHICH SE:JS TO CONNECT THE24, AT.:dOST TSROUGH A COMMON RELIGION, WITH OTHER PUBLIC-L'VT°REST GROUPS. INDEyD, DR. BERGER USES RELIGIOUS TERb!S TO DESCRIBE T?ESE MOTI'TES: PURITY VERSL'S POLLUTION, GOOD AND E'viL. HE NOTES THAT M.ANY TECHNIQUES WHICH STRwyGT?iEN THE POSITION OF THE RELIGIOUS ADVO- CATE ARE FOUDiD AMONG Ai1TI-SMOKERS: ELITISM (I KNOW BETTER THAN -~"----•~ YOU) ,:^rSSIA.NIC DRIv:~ (I WILL S'r.OW YCU SnLVATION) , AND THE USE OF =UNIvr'^=.NT IN THE FORM O: TAXES AND F:NES, A WAY OF SA'_'ING "_ W1Li. SP.GW YOU A TASTE OF GET...:.., T.O,0". WHO ARE THE ..:.aDERS OF THESE =NTE37ST GROUPS? THEY p-a,r GENERIL:.,Y 'BETTE. EDUCATED, AND =-AVE !?=GiiER INCOMES THAN THE AVERAGE SMOKER. A CI.r':~R ELE:IENT CF C:.nCS PVTaGON=SM IS PRESENT IN THEIR PtiILOSOP'?Y. I. SMOKING FESiJLTS IN SCCIAL COSTS, WE KNOW WHO PAYS THE BILLS AROUND HERE.
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°' HIS RESEARCH WILL BE FULLY DOCUMENTED, A'CAREFUL, SCIE'NTIFIC AND REPRODUCIBLE EFFORT. IiE WILL DEVELOP A BASIS FOR FURTHER WORK COUNTRY-BY-COUNTTtY, USING METHODS WHICH ARE UNDERSTOOD BY SOCIOLOGISTS Et7B.RYTr7F:;.-aE. Ly THIS WOR.K, HE WILL DRAW UPON COLLEAGUES IN SOCIOLOGY, ANTHROPOLOGY, SOCIAL PSYCHOLOGY AND POLITICAL SCIENCr. -- LIGii'"S UP --
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Subject: Social Cost of Smoking: Literature Review to:• Mr. Dennis Durden Date: January b, 1979 From: David Narr, Attached is the literature review you requested on the social costs of smoking. In addition to those items we picked up Tuesday afternoon. I ordered another packet of materials which seemed promising after reviewing the bibliography, and so reviewed some 53 Items for this summary. I reiected most items as not germane to the purpose of this project and selected 12 papers for su,rmary. FORMAT selected; and this memo, which sunmarizes the general argument linking smoking to increased social costst identifies some key concepts and seminal works; and suan:arizes apparent counter-arguments to the social costs ~ argument. This report consists of three parts: A matrix which itemizes Direct and, Indirect social costs attributed to smoking; a set of file cards which briefly describes the methodology and thesis, or major line of argument, of each paper u s s bur en shcu e a e o smo ers and cigarette manu ac g t k These economic costs are increasingly important, especially as the cQ;~of medical care is orowing faster than the economy as a whole and because the rjovernment assumes Targer ari8'laFge~ pFoQor•tions* of"the dation's medic8l bi1l. ~_______-____--~ 7hi5 rer~~>ital societyas a whole is paying the_b.i_I1 for tabacco-related 1L Ji -ess and that a sub . stanttal and groaing part of the econ~amic co`sia of smoking are borne ty ,non•-smokers among the-publit.wha subsidize smokers' disah n eath..costs through government wetfAp_e pay^ments. ~ throu h tv~ rer 7hi d ld b hift d f t Moreover, the economic costs of tobacco-related diseases represent the value of foregone alternatives. Resources could be reallocated to other sectors of the economy and there would be more healthy individuals to enjoy them. diseases are attributable to smoking and can further be associated with direct and indirect health care costs including the cost of medical treatment during illness and the cost of lost productivity and future income due to illness and early death. These costs are measurable and large, far offsetting the benefits of tobacco use from fann and manufacturing income and sales taxes. : _: . .. ..,:.::. ::- A1t''siajor stuilies._ -5h6ei that: t~sgare,t;e sWkinn ::i# dssi.€dted::with iacrsas~S sickness and mortality from a range of:ccnditions inctudfng'lung center, bronchitis and coronary heart disease. Percentages of all deaths fram:these THE ARGUMENT LINKING Sh?OKING:.T.ti 1.NCREASED SDCIAL. COSTS -:. ..:::. while providing the means to pay for smoking-related medical costs. Cp costs and transfer payments from cigarette manufacturers and smokers; or 0 through a safety tax to induce manufacturers to produce safer cigarettes f„~ iegal means or legts at on to permit welfare agencies to recover me ca nin,roeuona A ?t EXHIBTT_L Deponentu4~~~ Dote Rptc_ J
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- 23 - BASED ON HIS FORMER GROUP STUDIES, DR. WILDAVS.i{Y BELIE;1i"S THEY WILL TELL US ALL ABOUT IT IF WE ONLY TAKL SER_TCUSL_v WHA~m THEY SAY TO ONE ANOTHER IN THE MEDIA BY WfiICa THE': COMMUNICATE. ANTI- SMOKING GROUPS WILL TELL US A LOT AaOUT THEPdSELVES I? WE LET T?iEM. DR. WIL:,e'eVSi{Y'S THIRD TASK IS TO DEFINE ANTI-SMOKI?7G THEMES AND T9EIR RcLa_'IVE" FRzQ[Tc'UCY.'UCY. ARE THESE Tu~a"~S SOLEi_' CONCr?NED WI ? SMOKING, OR DO THEY COVER LARGER SOCIAL ISSUES? W'r.E?W DO THEY F:fLL ON THE POLITICAL SPECTRUM? WHAT DO THEY HAVE IN CCM?`^.ON, AND HOW DC THEY DiFF ~R "CM, SAY, AN','I-GRCW?'H OR ANTI-INDUSTRLT TH.E:^2S? WHAT CLUES DO THEY GIVE TO THE SELF-INTERESTS OF THE ~VmI-SauOK'~1G LcADERSaI?? TO OB'"A=N PRE:.I:QINnRY ANSWERS TO THESE QUES'.'ICVS, DR. WILDAVSKY'S S^_:.FF IS :..VAL'_'ZING A SAMPI.2 OF P.NTI-SMOKhIG MnTE:cIALS IN THE U.S. AND GREA T' BRI'"AIN. HIS OBJECTIVE IS TO DE?IN E THE BASIC MOTIVATIONS OF THE MOVc.blENT. IF TF E RESULTS ARS CONSISTENT BETWEEN TIME PERIODS AND BETWEEN COUNTRIES, WE C-M BELIEVE WE HAVE LEARNED SOME BASIC FACTS ABOUT THE AN"_'I-GMOKING MOVE:MWNT.
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DR. PETER BERGER HAS CONSENTED TO ADVISE US ON THIS PROJECT, AND DR. AARON WILDAVS:{Y TO MANAGE THE NECESSARY RESEARC:i. DR. BERGER IS A PROFESSOR OF SOCIOLCG'1 AT RUTGERS UNIVERSITY, THE WIDELY-iCNCWN AUTHOR OF A D02E:1 BCOXS IN HIS FIELD, AND IN- NL'MERABLE A.RTICL ES . HE HAS WRITT:.'N OF ANTI-SMOKERS : T Ho XVmr-SMOKING ATTITUDE IS ONLY ONE ITEbS IN T?:E CONSCIOUS- NYSS OF A SPECI_:C GROUP OF PEOPLE. IT SHOULD BE SEEN IN RE- LATION TO OTHER ITEMS IN THAT CONSC:OUSNESS... ASX THIS SIMPLE QL::SPION: WHAT ARE OTHER CAUSES TO WHICH THE ANTT_-S,SOKE RS ARE LI:CrLY TO BE ATT9~.CTED? THERE IS, PROBABLY MOST L`VORTANT OF ALL, THE VARIOUS CAUSES ESPOUSED BY THE ENVIRONMEN- --------_ TA.:,TST MOVE 9ENT. MODERN INDUSTRIALISM _TS PERCEIVED AS A GIGANTIC DEATH MACHINE. COMMEiCIALLY PRODUCED FOODS ARE SUPPOSED TO POISON US, AND THE ONLY SALVATICN IS IN T.°.k: RETURN TO SOMx' FORM OF ORGANIC NUTRITION. WHAT IS SAID HERE IS TYAT ALL OF US WOULD LEAD LONG AND HEA',T::X L_'lES I? ONLY THIS OR THAT PARTICULAR SOURCE: OF POLLUTION WERE REi^.OV:D.
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11. PUTURF: l'LANS l. After having initiated a numbcr of studl,es coycarnir.g public smokinq (social accopta'lility) ,,SASip was given the task of organisiag the !irst cdaferenca of Trade A•ssociations. This will take place in Zurich, Switz2rland, May 20 - 23, 1979, invited will be Trade Assoe:,al!ons £ror,; .4ustralia, Helqiua, Canar9a, Xrcland, Netherlands, Switzerland, Lt:uted I4ingdoa, D.sA, West Ger;nany; Denmark, Norway and Finland. The Object of the conference is to have a fv,li e.echange oC ideas par:3.- calarly with rcgc_r•d to social accep~.apiliity problems•. Dhc accn'da has been planned to involve the Tra=e lL:aoc3.Gtio:m an muc:h as possible in the prograume and therefore r„Wce them feel part of the indn.^tzy'c intornatianal cYforts. Bet also to eiaphasize tthat tPsey, not ICGB•T,, are responsibles for Tndlsstry acLiv>,tiea at tha nac.ional la•.el. 2. Within SAWP a new group has been formed with the sole purpose oC davelo?ing »ew countermeasiurea. R.9. Corner of Philip horris is the Pro]oct Leadcr andl this pr.cgramae srill be presented and cisouaccd at the ZurLch Co^.fcrencc. 3. SI•SVP, under Cccrgc 3crmani ac 3roject Consultant is al.so' prcparir.g an impor,tant neA S•oc1iA1 CoAta/Socizt Banefits Study. 4. The Task Forco covoring thc 4th P?orld Conf•erenoe on Smcking and Health, under the C:zairnanship oi Mr. J.j:.llartngb of 3hilip•t7orris, is planning to monitor end conbat on the spat thc strong prcpaganda expected to be goncr.ai.cv at this Conrot;ance, which ta:<cs place !s Stockho;ln, Sweden, in June and is ..ponccred by the World iiealuh. Organization and the Swedlish yealth Authorities. ThQ programme o- the or,ganiaerc ir ba~ing analysed a_nc positi.on paE;ers writton on•the nain sabjeots. A sub-group ;Lac bsern establichcc to ccaL with hx.e toF•r;c o'_ the Third Wo.rld. 1cRcdiately prior to tEae Conference baaic ?infurmation w'ill be sent to all Tradc Associa- tions. llu_•'ing its course they will be kept con+inually inPozmcd. ?.nd a,ftarwards sut account of the Proceediagc m•itF: anaJyses will be circnlatcd in kaot.h a Eu11 and a chortcr version, 1003717328 ~ N
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7xoqress Report March 17, 1980 Ln f.n u? h-' lp N s> G1 JC E%HIBIT Depnnentft t' """ ' Uale Rpa.__.__
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Y aA r. World econom+c outlook: Re iove'ryfor.the industri~lt18t10riS•a.9~sT l ® '. ' 1 sR~ !4A M /hll i, t w l, Pu
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.,.,. ._ ____...... T:IBY ARE DI:tECTED BY GROUPS WITfi SPECIAL SEL.°-IIdTI:RESTS . - SMOKING SERVES MANY SOCIAL NEEDS. - MANY ANTI-SMOKING PROGRAMS HAVE ANTI- SOCIAL EI'FECTS. IF WE USE T°.=SE COUNTERMEASURES WISELY, WE CAN SiiARPLY RE- DUCE, OR ELI:4INATE, SOCIAL COST AS AN ISSUE IN THE SOCI?.L ACC°_?"_'AB_T',I"_'Y CF SMOKING.
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3. SMOKING BEHAVIOR CO22MUNICATES MESSAGES. . ~ WHEN A CREEK INDIAN WOMAN LIX"cS r~ MAN, SHE WILL BITE OFF A PIECE OF TO&ACCO AND GIVE IT TO EI?i. AN AMERICAN WHO LIGHTS A LADY'S CIGARETTE IS SAYING HE'S 4=<i? AWARE OF HER. AN EVEN CLOSER RELATIONSHIP IS I.'lLPLIED WHEN HE LIGHTS THE CIGARETTE aI?lSELF AND TI?EY GIVES IT TO HER. IN ORDER TO LOCATE THE LARGER ME;LIING OF THESE BEHAVIORS, WE NEED TO RELATE TEiE:1 TO TEE SOCI-XI, S_TUATION IN WHIC : THEY OCCUR. WHY IS _m APPROPRIATE TO S24CKE IN A BAR OR Pi:B, BUT NOT IN HOW DO SI40KERS, NON-SMOKERS AND ANTI-S240Ke.RS DT_FFz'R IN THEIR UNDrRST?.vDI:IG OF APPROPRIATE S2dCKING BE'r::yVICR? THE PROPONENTS OF PROPOSITION S IN Gti.iF ORNIA SE:.'^WD TO TSINK TFAT SMOKING WAS APP ROPRIAT: IN A ROCK CONCERT, BUT NOT AT A JAZZ CONCERT. IN A BAR, BUT NOT IN A COCKTr1IL LOUNGE. Wc:? IS Tz'RE A DEEP CLASS- CONSCIOUSNESS AT WORK HERE? DR. FEINF.ANDLER' S GROUP IS STUDYING TI3E SOCIAL FUNCTION OF SMOKING, AND OF SMOKING RESTRICTIONS, IN A WIDE RANGE OF SETTINGS. THEY WILL DEVELOP A SOCIAL MODEL CF SMOKING B'c: AVIOR WHICH WILL • ALLOW US TO EVALUATE HOW SuCKING AFFECTS, FOR EXAMPLE. ~ C N C .. a ~ C
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Social Costs of Smoking - Date: January 10, 1979 Strategic Assessment Mr. Dennis Durden From: David Narr After reviewing the work I gave you Monday, and discussing it with Murray Senkus, it occurs that perhaps some notions regarding strategy may be in_order. Keeping in mind that this is based on brief exposure to part of the problem, here they are for what they're worth. The.ultimate objective of the industry and its various endeavors, ' including ICOSI, appears to be to preserve its ability to profitably manufacture and sell cigarettes. There appear to be two basic issues affecting the industry's ability to achieve this objective. One is medical/scientific arguments linking smoking to increased mortality and illness and thus to increasing direct and indirect costs of smoking to society as a whole; the other revolves around public attitudes toward smoking and the implications of those attitudes for public policy initiatives affecting the cost of, or people's ability or willingness to use, cigarettes (advertising restrictions, health education, increased taxes and the like). The objective of anti-smoking forces appears to be to stop or reduce smoking incidence by a combination of strategies which include calling attention to medical/scientific studies linking cigarette smoking to increased rates of illness and death and their consequent cost to society; encouraging disapprobation of smoking by depicting it as harmful, inconsiderate and costly to others, as well as declasse; and, supporting public policy which, at the local level,,restricts the freedom of people to smoke when and where they choose, and at the national level increases taxes in order to reduce consumption and encourage industry to develop safer cigarettes. In assessing the success of anti-smoking initiatives it may be fair to say that their efforts to reduce smoking incidence by calling attention to the alleged health consequences of smoking have essentially failed in their ultimate purpose. This may be due to demographic increases as much as anything, but, nonetheless, after a temporary reduction in smoking rates sales recovered and have,I gather, continued to grow until recently. Of course, opinion research which shows that 83% of the public and 75% of smokers link cigarette smoking to increased cancer indicates that the point has been made, even if it hasn't resulted In a change of behavior. ~ M W DD ~ AJRI I OAM 919PR". 7/70
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- 26 ALL OF THIS WORK WOULD BE A MERE EXEBCISE I^ WE DID NOT HAVE SPwCIFIC COUNTERMEelSucZ'.-s IN MIND. PEOPLE AND IDEAS -- HCW DO WE USE T.?EM? OUR FIRST C:.UNTER."'fEASi7RF.. IS OUR OWN NOWLEDGE AND AWAFYc.NESS. WE SHOULD KNOW WHAT T`.iP: SUBJECT OF SOCIAL COST IS REALLY A$OUT, AND WHAT OUR DEFENSES ARE. TO THIS END, ICOSI IS DEVELOPING AN EXECUTIV ; SUMMARY OF T_F-SS PROJECT AS IT PROCEEDS. WE WILL SEND EACH NATICNAL ASSOCIATION A LOOSE-L.1L COPY OF THIS SUMTtARY, AND WILL iC: v-P IT UP TO DA_,:.' OUR SECOND COUNTERXx'.ASUR°. IS SURVEI_.L?,IC.E. WITH YOUR HELP, ICOSI WILL COLLECr NEW rn„ATE,R,yAL ON mv^, SCCIAL COST OF SXOKING AS IT A=-A.RS. WE WILI. AtiRANGc FOR TWO CRITIQUES OF EAC: PP3ER, AvD WILL TRACK TP.: DEVELOP^tENT CF THE ISSUE IN EACH COUNTRY. YOU WILL BE 3EPT UP TO DATE ON THESE DEVELOP~MNTS. OUR THIRD COUNTE:v'". ASURE IS TO EXPOSE THE DEFECTS IN SOCIAL COST STUDIES. OUR CONSULTANTS WILL PUBLISIi PAPERS AND COMSdEN- TAR.IES IN THE APPROPRIATE JOURNALS. THE WORD WILL BE PUT OUT TO TH: ACADEuIC CCMb?UNIT": CA~ELESS WOR:{ WILL BRING DISCREDIT UPON THE AUTHOR.
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Chapter IV. The Thre.at to Civil Liberties. Progress to Date T_h_,i~s.~ roer~' fracqrporate material from Chapters I and II. It-.fs, therefore, xtill at an early stage. Current Activity By mutual agreement, Dr. Nozick has withdrawn as a participant in the project. we are making further contacts now. Future Activity Every effort will be made to have a draft chapter ready by mid-1uly. ~ ~_. N 0 a) to ~ a f
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•z'8E ECONOMISTS TELL US A SOCIAL COST MAY EXIST WHEN IT FALLS ON SOMEONE WHO DOES NOT ALSO SHARE IN THE BENEFITS. BUT IF I AM RESTRICTED FROM SMOKING BECAUSE IT BOTHERS SOMEONE ELSc., I H:.AVE LOST MY BEyE. ITS , THAT IS, A COST HAS BEEN PLACED ON ME. DON' T ~ - - - THOSE WHO BENEFIT I'ROM THIS RESTRICTION OWE ME COMPENSATION FOR MY LOST BENEFrTS? OR DO ANTI-SMOKERS HAVE EXCLUSIVE OWNERSHIP OF TI'.,.- AIR R_GF:':'S I;1 A PUBLIC PL,1C°_? AS ANOT?iER PHILOSOPHER PUT TH£ MATTER RECENTLY, THERE IS A LIMIT TO THE EXTENT WE ARE MORTGAGED TO ON: ANOTHER. PECPT_.E SMOKE FOR A ~iA tIE"" OF R!IASCNS. PLANY OF THESE REASONS ARE RELATED TO HCW THEY :LiNCTICN IN SOCISTY, AND WE'LL LCOK AT THESE NEXT. BUT I? SOCIA:. COST/BENEFIT ANALYSIS ITSELF IMPLIES A CONCERN FOR.r_OPIE, THE ISSUE CCM:.S DOWN TC A QUOTE FROM DR. NOZIC{'S BOOK cN PHILesaP?:Y: WHY NOT INTERFERE WT_T- SOMEONE ELSE'S Si?AP:NG OF HIS OWN LI?E? BECAUSE ANYONE MIGHT COME UP WITH THE PATTERN OF LIF°_ YCU WISH TO ADOPT. TI?EREFOR.:. r IT IS IN YOUR OWN S'cL'r-INT';'R'ST TO ALLCW ANOTI:^R TO PURSUE i:IS COi1C~P^.ICt1 Cr LIF:: AS IiL SEES IT. YOU MAY L'cAR-11 £i.OM FIIS L::i.:4PLE.
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MANY OF THE ISSUES IN THIS PROJECT SE"E4 TO ARISE FROM THE ACT_IVIT° OF ANTI-SMOKING GROUPS. THEIR ATTACKS MOVED FROM DECLARING SMOKING TO BE UNHEALTHY TO DEFINING IT AS SCCLAS..LY DESTRUCTIVE. IT IS THIS DEFINITION, RAT3ER THAN ANY FACTUAL DATA, THAT MAi{ES SOCIAL COST AN ISSUE FOR SMOKERS, BUT NOT FOR SiCIERS. ANTI-SMOKT_NG GROUPS HAVE INCREASINGLY INFLUE:IC°_D SMOKERS AND NCN-SMCKERS IN DEFINING AND LI-%lIT_ING THE SOCIA:. ACCEPTABILITX OF CIGARETTES. NOT CONTENT TO STOP Si4CKING T5E:4SE!V=S, OR TO PERSUADE OTHERS, '^EEY SEEK PUNITIVE PRCGRAMS OF AC74?RTISING, `A3EiLING, SEGR.EGaTICN AND T.3.~CATICN. WERE TEE SE ?aNT2-SMOK-NG PROGP.AMS UNDERTA%{EN OUT OF T:iE GOOD- NESS OF THEIR HEARTS, CONCERN FOR Tzr ;R FELLOW M_a.N, OR DO ANTI- SidOKI.NG.GIcOUPS AND THEIR LEADERS F?sir. SOMETHING TO G<`-.IY FOR THEMSELVES? DO THEY RESPOND TO A VERY SPECIAL SET CF VALUES NOT Si-:A.^ti°D BY MOST OTHER PEOPLE? IF THEY DO, WE HAVE AN IMPOR- TANT STRATEGIC OPPORTUNITY TO DRIVE A WEDGE BETWEEN ANTI-SMOKER AND NON-SMCKER. AND THE LONGER ANTI-S:7CKERS CLAIM TO SPEA:{ FOR ALL NON-S.40KERS, THE HARDER IT WILL BE TO CREATE THIS DISTINCTION. U v 0 b .. a N
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- 25 - WHEN THIS RrS:..ar'ZCi? IS COMPLETED WE WILL HAVE A FCUNDATION FOR DEALING WITH T°...~ SOCIA.L COST ISSU . WE WILL HAVE ATTACKED ITS ECONOMIC REASONING. WE WILL HAVE LCOKED AT THE DARK SIDE OF ITS PHILOSOP?:Y, AND Rz :ATED TuAT PHILCSOP&7 TO THE LARGER MOTIVES CF THE ANTI-SidCK_NG L::ADERSiuP. WE WILL HAVE EXPLORED THE SOCIAL BENEFITS OF S.40KING, AND T?E SOCIAL COSTS OF SMOKING REST2 CTIONS. 'r.OPEPUT:,LY, WE WILL BE ABLE TO STOP TY_TS ATTACK HEFORw IT STOPS US. AS I'M SURE YOU cAVE NOTED, TcE CONS JL^VVTS WF.O AR° &'cLP,N G DS 710 DE'T'_.OP A P CS W','ION ARE ALL ?.mL°.3IC.aNS . BUT T`.::. IDEAS Th:.V AR,E WORKING WITH HAVE A UNIVERSAL BASIS. THEY A.'~~. THE IDEAS OF ECCNOM_CS, SCCIOLOG?, P:?ILOSOP`:y -- NOT 2_MERIC""-y ECCNOMICS, OR P.MERIC.aa SCCIOLCGY . :N ORD:.a TO DE`i:,LCP THE PEOPLG AND TFE I<^JEAS INTO AN hTTERDiATIONAL RESOURCE, WE WILL INVCLVE EXPERTS FROM THE U.K. AND EUROPE IN THESE PROJF,C.'S AS EvELL. IN SOME C.?SES, THESE EX2tRTS WILL ~VIEW CUR WCRX, AND ADD THEIR VIEWS. IN OTHER CASES, T.` EY WILL CCNDUCT .?DDITICNAL S'_'UD:.;S, IN THEIR OWN ODUNTBIES, TO ASSURE US THAT CL'R POSITIONS REFLECT DIFFERING NA_TIONAL VIZWS .e3S WELL AS A UNIP::RS+ PROrSSIONAL CORE.
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-22_ HE WAS DEAN OF THE GRADUATE SCHOOL OF PUBLIC POLICY THERE, AND, MORE RECENTL_°, PRESIDENT OF THE PRESTIGIOUS RUSSELL SAGE FOUNDATION. DR. WILDAVSFX BELI EVES WE ARE DEALING WITH BROAD IDEOLOGICAL THEMES --- ANTI-CAPITALIST, ANTI-INDUSTRIAL, ANTI- MULTI;7ATICNA.i. AND COUNTEPIdODERN. THESE VIEWS FAVOR A RETURN TO A MORE PRI:+:Tn7E LIFS: WHILE RETAINING ALL THE EXPENSIVE BENEFITS OF THE INDUSTRIAL SOCIETY. T5EIR LEADERSHIP WANTS TO PROTECT US FRCM A WHOLE HOST OF RwSKS, TAKIVG JOBS AND 1NFLC.EN'.'T_AL POSITICLIS AS THE PRICE CF TSIS PROTECTION. DR. WI:,DAVSXY' S RESc AZC:-: 'rLAS BEGiiN WITH IDENTI.?ICATION CF TH E LEADERSHIP OF ANTI-SMCKING AND OTHEA PUBLIC INTE2.S:' G.RCUPS. WE A_~E LCOKT_NG FOR INTERT_.OCIING, OR JOINT, LE?OLiSc -1-J, AND, SUPP:.EMENTIqG THIS WIT3 3IOGR.=.P:iICAI. DATA, LEARNING MUCH P.50U'1' THEIR SCCIAL AND PRO- F-ESSICN.'1L STATUS. NEXT, WE WILL E:SA.~SINE WHAT THESE LEADERS DO INSIDE THEIR GROUPS. HOW DO THE'_' OPERATE? HOW DO T.` E'_' INFLUENCE OTHERS? ARE THE GROUPS .,. .~.,._ DEMOCRATIC OR AUTOCRATi C?
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.( . '3- ` i This line of argument might be supported by seeking more evidence to advance the argument of Gori and others that, in the long run, the economic costs of reducing disease and delaying death could Well outweigh i the alleged benefits (what are they, by the way?). We could argue, in i other words that there might be a reallocation of costs, but no reduction i and possibly an increase. This might keep us away from the problem of i arguing the value of human life. ~ On the benefits side of the equation, a comprehensive statement of the economic benefits of the tobacco industry, especially if it produces i harder numbers than the cost side has to date, might support the argument ~ that efforts to restrict smoking will harm society more than it will i help it, economically. In addition it might help us identify and rally constituerits to aid us in fending off unwanted legislation. Related to the benefits of smoking, it would be interesting to see • ~ whether there is research to support an argument that smoking has some social, stress-reducing and satisfaction benefits which may safely ~ be taken advantage of with cigarettes having reduced levels of tar and nicotine. i As for the need to build constituency relations with groups which have a stake in the continued success of the tobacco industry, I think the argument pretty much speaks for itself and the technique has enjoyed demonstrated success with other industries including oil and insurance. On the issue of the health effects of smoking, the Industry might want to emphasize the methodological defects, age and other shortcomings of research attributing higher disease incidence to smoking. Since it appears that as far as the public is concerned, this argument is essentially lost, the key audience for this theme might be policy makers and the scientific conmunity. If all this makes any sense, some logical next steps would be to identify who is doing what at present, expand this to fill in the gaps and work to develop a short-range strategy to help us get.through the impact of the latest Surgeon General's Report. David Narr swm b UI
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WE ARE CERTAIN TH'IS WILL SHARPLY REDUCE TI3E NUM9ER OF PAPERS IN A VERY SHORT TIME. OUR FOURTH COUNTERLmr?,SURE IS TO DRIVE A WEDGE EETWEEN T:?E ANTI-SMOKER AND THE NON-SMOFCrR. 'CUR ANALYSIS OF THE ANTI- SMOKING MOVEuF.yT IS THE PRIYARY WEAPON. WE WILL ENCOURAGE PUSLICATION OF ARTICLES AuND CONFER:.^NCE PPPERS ON THIS SUBJECT. THESE CAN BE DELIVE.°.D IN CIRCUMSTA.VCES WELL OUTSIDE TH'E' CCN- TEXT OF SMOKING. FOR E:`CAl`^DT_.E, IN A GE:IERAL POLITICAL SCIENCE :.OUrZ..*7A.T.,, OR A C.^.NFER::.:7CE CN PUBLIC INTER°ST GROUPS. OUR FIFTu COUNTERMEASURE 15 TO STRESS THE SOCIAL EEVEFITS OF SMOKING, AG?.IN ZN A NON-SMOKIJIG CON_='XT. EX?s'^pLc'.S MIGHT BE A PAPER AT A CONFERENCE ON SOCIAi, SI'P-SS, OR Alv ARTICLE IN A POPU- LAR PSYC:iOLOGZ JOURNAL. A SIXTH COUNTERM.._ASiJRE IS TO HIGHLIGHT THE THREAT TO •CIViL LIBERTIES WHICH IS PRESENT IN TvESE CONCEPTS OF SOCIaL COST, AND THEIR 1-12i.,'~,T.I.,`-. +J+J EXPr',NST_ON OF GGVERNME.`IT INTO PERSONAL $EHAVIOR. ul • r+ WELL-DEV:':.OPED POSITIONS ON THIS SHOULD BE MADE AVAI'LAHLE TO v ~ Lm C N 0) LcGiSTaTGRS AND OPINICN LEADERS iNC:~IVED TO Rt•ST_ST SUC3 EXPADISION. ~ W N V
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GROUP INTEGRATION, CONFLICT RESOLUTION, AND INDIVIDUAL CDM- FOR_ IT WILL TAiCE INTO ACCOUNT TIM REACTIONS TO OTHER PEOPLE S.SOK=NG, AND THUS T.°..^ CONFLICTS THAT SURROUND THE USE OF TOBACCO. ::?1:.LLY, DR. . EINFirI.NDLER' S RESEARCH WILL FORM THE BASIS r OR A ~ STUD° CF THE EFFECTS OF SMOKI:VG RESTRICTIONS. WHY DC LABOR UNIONS OPPOSE THEM? HOW DO THEY A.-, F-CT THE SMOK: R IN HIS WOR.K, HIS R:...TATIONSH IP TO CTHE R WCRlCERS, TO MANAGEDIENT? THROUGH THE METHODS OF INDUSTRIAL PS•_'CH OLCG1, Fi:. WILL Sc.=K TO .MF3SiJRP. THE WAYS IN D+'r._C' THE DEPR_V:'D SMOKER, IN A R^STRICTED E:IV=RCNMENT, REACTS TO THE LOSS OF HIS S:^Ori=NG BcNEF=TS. IN THE UN:T=D STATES, THE ASH .1NTI-SMCK=NG GROC7 HAS PUBLISHED A REPORT ON THE COST OF SMC:C:?IG TO A BUSINESS ::STA3LIScYIE;7T. OUR WORK W=LL ALLOW US TO ~+ IOP A REPORT ScOWI7VG THE OTHER SI :: OF THE STORY, T H E COST OF RF.STRIC'_'ING SMOKING. THE PRECISE ROLE OF SMOK'NG IS D::: _RE:7T IN DIFFERENT COUNTRIES. BUT THE CENTRAL .=:Lc.TE!:NTS ARE MOWZi TO BE THE Se1ME ^'7ER'-'WH:RE. THE RESEARCH CARRIED CUT BY DR. =EIN'r.ANDLER WILL SiiED LIGttT ON BOT`.i T.°.:: SCCIiL VALUE CF S40K_TVG, A.ND THE SOCIAL OF RLSTFT_CTYNG SMCKING.
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.. Bi ONO Subject: Social Costs Piece in Business Week Date: February 10, 1982 To:rNfr. C. A. Tucker From: Dennis Durden Mr. R. Marcotullio Mr. S. B. Witt Mr. E. Caglarcan The attached copy is from the latest Business Week (Feb. 15, 1982). The middle article is a very clear recap and summa~ry of all the key allegations made against cigarettes in the social costs arena. This is the first time that I have seen the whole bundle of "social costs" allegations presented as a, straight-forward,piece in a business magazine. I imagine this column has high readership among top=level business people. We know that many of these business people have been taken in by anti-smoking allegations. Therefore, they may be predisposed to believe the allegations set out here. Particularly in this time of budget strains, they may indulge in even stronger feelings about letting our industry and customers pay more of t growing tax bi11 s. 7 , this article is a very important straw in the wind, and I am afraid we see many more similar ones in the future unless and until we can counter #eVe allegations. pag attch
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- I5 - AN CFFICE WORKER WILL HAVE ONE MORE CIGrI.eZETTE BEFORE STARTING TI~' NEY'T JOB. OR A PRODUCTION-LINE WORKER WILL DENY T:i? PACE OF THE L_T:7E BY nE-DE:INING THE DAY IN TERMS CF C.IG.ARSTTES SMOKED. ANOTHER PE.~^.SONAL USF: OF TOBACCO IS TO DEFINE SPAC°. THE SMOKER WF.C SIT_S IN CONTE?1PLATICN, SURROUNDED BY SMMOK^, IS SETTING UP A S24A.i,i„ PERSONAL SPACE ?•OR F?I?^.SELF. IN A McET_?7G, HE MAY BE I~I- SuZ ATI?IG HI"ScT F c RCM ?.NCT` ER P°RSCN r TO R GAIN A PRIVATE EOUNDARY WE_:C : WAS LOST TO OLERC'.RCWDING. TH_TS AREA OF SOCIAI. ACTCVITY DEALS W=TE THE BCUNDA.R`_' BETWEEN YOC ~UD fi. OR B TTNLGV OU aVD US. NFAN EAST A?RIC?SI KPS4Ba - -- ~.-._ FATHER WANTS TO NEG^vTlr?'^` : MARRI`lGE ACROSS C=.A;I BOUNDARIES, riE M.AY c'XC::?VGE TOraC:.'J :'7IT mHE Bit=ZE I S FAMILY. IN THE ,S?.2^~. WAY, A H~lI W7-i0 JOINS A GTcCCP AS A STRANGER ;±y'? C: FER CIGARETTES AROUND THE GROUP, OR ASK F OR A MATC : OR AN ASHTRAY. BY S'-:?.RING, P EOPLE TFiE WORLD AROUND C?.24 MORE EASILY JOIN AN EXISTI•NG GROUP. ON THE OTFi :R H2uVD, L=GcTING A C_GAt'L'°.TTr WIT!:CUT SHARING CAN ESTABLISH A N:EDED BCUNDARY: I AM ME AND YOU ARE YcU.
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ANTI-SDlOKING IS NOT ALON^. IN ITS PUNITIVE CHARACTER, ITS 2°VE:RSAL OF LONG-S_" 2dDING ATTITUDES, ITS PRE-OCCLPATTDN WITH POIS.UTION, ITS RE. cCTION OF THE DUAL NATURE OF COSTS AND BENE- FITS, ITS OPPOSITICN•TO INDUSTR°.• TF.. COSTS OF SMOKING ARE CON- SIDERED, BUT NOT THE BENEFITS. THE BENEFITS OF REDUCING POLLUTION, BUT NOT T°7r COSTS. LOTS OF P°_OPL EARE CONCERNED ABOUT NUCL£A.R POWER, INDUSTRIAL POLLUTICN, POPULATION GROWTH, OR SMOKING AND HEALTH. BUT ONLY A FEW DED=C.=.TE T E,^.SEL 7?,"S TO PUBLIC AND LEGISLA"_'T_VE ACTION. WE NEED TO ISOi.ATE AND DEFIYE TS? 010TIVATIONS AND T?:E ALLIANCES OF °_'4:--- rlCTI~iz ANTT_-SM.OtiING L:;.aDERSc;;P. WE NEED TO DO THIS IN ORDER TO PREPARE EFFECTIVE COUNTERMEASURES, BUT EVEN MORE IMPORTANT, TO E:~CSE THIS GROUP AS RESPONDING TO A VERY DIFFERENT SET OF VALUES THAN MOST PEOPLE. TO ASSIST IN THIS RESEARCH, 4ir. HAVE CALLED ON AARON 'r7ILDAVSiC1. DR. WI7.DAVSiCY WAS C::AIR'•tAN OF THE POLITICAL SCIEJICE DEPART.^lyNT AT T:?E L_ ~'NII,TR$Tmv nc nT~,+ +„}OR~7'~ 'u ~~qXELEY
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lnter-of fice Memorandum Subiacr Innediacy of the "Social Costs" lssue Date: May 10, 1975 To: Messrs: J. R. Peterson lv y`` Ron Sustana C. A. Tucker Jim Hind (w/c) Max Crohn (w/c) Sam Witt (w/c) From: Dennis Durden Earlier predictions about the development of the "sccial costs" issue in smoking are coming through a little faster than I ar:ticipated (see my most recent memo to C. A. Tucker). If you haven't already done so, I strongly recomnend that you read the front page story in today's Wall Street Journal (Wednesday, May 10, 1978). Fortunately, the article does not specifically mention smoking, but it does: 1. Highlight the rapidly-growing interest that corporations have in reducing their health benefits costs. . 2. Points out a number of ingenious corporate programs to encourage employees to stay healthy--including the "bonus" program at Mobil. Thus, the article underscores the fact that business is indeed "ripe" for health maintenance and prevention programs--the kind that could eventually lead to anti-smoking efforts. Besides the reference to Mobil's program, I also was particularly interested in the reference of the "double stake" that unions have in reducing health costs. This is the first time I've seen it spelled out so clearly, and it could be a harbinger of things to come. 11 in all, the article confirms what we've suspected and suggests to me some ssential avenues of follow-through by us and/or the industry. I hope we'll t a chance to discuss these soon. M anwhile, I did want to send this memo just in case you might not have seen t e Journal article. I can provide you a copy if you don't have one available. nk you. r ~ Dekis Durden pag cc Messrs: J. Paul Sticht J. Tylee Wilson (w/c) k>nu: a: *Hobbs( Bynum Tudor (w/c) Bill Grier ,,
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ExP£Fl'^_S Wa0 Hav£ Sci~VED AS CONSULTANTS TO THE PROJECT CAN BE CAL=-D UPON AS ADVISOFLS AND WITNESSES, AT FdEARINGS OF GOVERNMENT COMMITTEES OR REGULATORY AGENCIES. ONE OF OUR OB~cCTIVES IN THE COURSE OF THIS PROJECT IS TO LOCATE CONSULTANTS WHO HAVE NOT ONLY THE NECESSARY FC`706v'LEDGL, BUT ALSO THE REPUTATION ANA PRESENCE TO SERVE AS SPOKESMEN FOR THEIR CONCEPTS. TaE COUNTF'RMEASiJR~S WHICH EACH OF YOUR ORGANIZATIONS ELECTS TO USE WILL DEPEND ON TIMI'NG AND LCCAL CONDITIONS, STYLE, ETC. BUT, TO SUMMaR:ZE, HERE IS WHAT WILL BE AVA_TLA3L$, I? YOU NEED IT: - AN EXECUTIVE MANUlL TO KEEP YOU UP WITH THE FIZI1D_TNGS OF THE PROJEC':. - CRITIQUES CF ALL MAJOR ATTACKS. - bAPERS, AUT NORS AND SPEAXF,RS FOR THE DEFF:.VSE. - A CONSISTENT LINE OF DEFrNS`t WHICH SAYS: - THESE ATTACRS ARE 8AD F.CCNOMICS. - THEY PRESENT A DANGER TO INDIVIDUAL FR_rmDOM.
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51919 6255 ':L I 5C029 II66A , . 9 tl n n;.~ mr.vtn . 11
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Information Retrieval Progress to Date A survev of on-line compu r<pfo a inn hs3 e has been como A copy o ~'s'urvey report has been sent to the I~,'iSSI office. .r' A preliminary search profile has been used to test the value of these sources, and to test the search profile itself. This has narrowed the list of usable information bases consider- ably. Current Activity We are reviewing the test results to improve our search procedure. A complete .2garch will be condueted opthe most promisin informa on ases. This will generate a useful b 5l' ogxap y on t e soeiaMost of smoking, and on social cost in general, by the end of Aoril. Furture Activity Based on the results of our current activity, we will or ize a svstematie_„y,pslatinq orocedure so that current papers wall be rougn to our attention as soon as they are entered into the public information bases. We wijr 8ec•e~oo dg~j~d n ans and st /PStsma*n< for (a) custom information_basICOSI and (b) develo~inq ai r~1a1'~yna..rE.Y-"-'in.!at_c_vstem arou`nICOSI ne ds, by a apting an existing system. / f ~
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0 ASSIGNMENT S8fiE1' (Grouped by Name) kr. Rictucrd Haddbn Australia Brazil Canada Aonq Xonq (or Halayaia) Xr. Ulrich Hert.,r, Belgiwa Nethe.landa ~,. ?fr, yatma~' Y. Aind F~"erti ~, Svedcan afta,Q. Onited States Hr. e~. LandrY Svits:arland Venaxuola !ff. ~'~'Q~sl+ M. xeid ~ ,~•~•Ireland '« United Kinqdom Hr. Chriatian 'Loqa1 Arqea~tina uest Cezmany 7/]7-7/24 dcotinq.
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0 ~ ~ e!Xlmft coRrErrS v, . . I. MEETING LCEtRM 1-2 II. DAtKCAOUND, ObJLCiIVES A11D IROCEDORE3 3-9 111. DElI11ISION 01' ?ERMS 10 IY. SlBDRIlfO AHID pL1LSx CONiROVERlY E6T U.S.A. 11-22 V. AX N1S19RICA1, TERSPECSIVE E+lBIC fpF1C2llC MODLI. 23-24 PLVy~ 40AJCINC MOAEI. APTLIED TO U.S.A.- 25-49 ~ Iatluvnelas Factors , SO-s2 a 53-56 9SI6"iIB+iEKDUC f•-I~ I iib..
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Chapter III. The Character of Anti-Smoking Organizations. Progress to Date Three draft reports have been completed in support of this chapter. 1. An analysis of "The Political Culture of Anti- Smoking Groups", by Aaron Wildavsky et al. 2. observations on the Fourth World Conference on Smoking and Health, by Peter Berger. 3. A brief report linking the two studies. Our primarv o i ctive in this area was to demonstrate clearly t annq activists ave a special_Aa=dy whic se es t eir own rposes,~ u not necessarily the major ty o nonsmo ers. At this time, we have achieved only partial success toward this objective. It was hoped that a rigorous, scientific analysis of the written material produced by anti-smoking groups would reveal a great deal about their ideologies. At Stockholm, speakers indicated, for example, a clear bias against capitalism, business, and multinational firms in particular. There are other indications that organized anti-smokers are also active in public interest movements relating to air-pollution, nuclear power, health foods, and the like -- a1l characterized by an aversion to moderate risk, by a utopia of eternal life, and by a disregard for the economic trade-offs which these imply. Such disregard necessarily affects their view of the social costs of smoking, and in turn justifies the distortions of ' social cost which were addressed in Chapter I. In fact, analysis of anti-smoking materials revealed very little ideological content. This is in such striking contrast to Dr. Berger's observations at Stockholm that we must speculate that these ideas are suppressed in the anti-smoking media. Dr. Wildavsky's report speaks of anti-smoking leaders having a'mail-order constituency", i.e., a loosely-knit, largely unkown membership who never really encounter the movement face to face. In this case, it may be very important to avoid issues which might alienate some members. If this is indeed the case, evidence of a network of-ideologies beneath the anti-smoking surface may require a much more direct approach, possibly one which we would not wish to pursue. Wildavsky's report does provide insights into the Dr . ~ motivation of anti-smoking leaderst into the origins of such 0 N groups, their patterns of development, and their relationships 0 ~ N O N
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0SZ? 515T5 prOodCeo 8 A v31 ' ,v-~~es i ~ ~ ;i~~larM~ li n "l'ela4"- tlV VV i1 FS l•R}rGY'7 Pl1u . E r'Y wfY [ - ' . . ti
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Chapter II. The Social Role of Smoking. Progress to Date A first draft of the Manual Chapter has been reviewed by the SAWP Project Team. The underlying consultant's report has been distributed to SAWp and ICOSI Secretariat. Current Activity A revised draft of~the ~Sa~ual Chaoter is in oreoaration for w by A We have developed an outline. with Dr. Feinhandler, of a Traini~ 'ac ak g~ Lo-fieSg social science consultants i~y other coun r es to obtain anc a~nT~~ya__e ~sim a`YI 3ata in a manner eon- sisent with t'Ti--e I,JT: t-st~ This further research is expec e to cost far less, by virtue of the Training Package and the experience which has already been gained. The Package will consist of six elements: --The ICOSI report. --A training text. --A video tape which: -illustrates and discusses social functions of smoking. -gives viewers an opportunity to record actual data. -tests the reliability of these observations by comparison with Feinhandler coding of the same activity. --Interview formats to help define the settings and meanings attached to the smoking behavior. --A format for recording behavior. --A coding manual. --Complete statistical methodology. . The objectives of conducting this research elsewhere are t~o__~ ain~1 cd af cred~ibi].itY.and, ultimately, to procure cross- cu tTural ata. uc c4ata will offer an opportunity to ex_plain smo anrk'-`g`3eTi6'vior in terms of other social variables, rat~e -r than merely describe it. Future Activity We are develooing a plan to cain publicarion of Dr.~ Feinhandler!s resear~r L At present, this plan calls for breaking the work nto two topics, each to be written for two levels of
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ta reopea the Surgeon Generay's.report. © Thus, to tie, It 1s lo9tcal that the enti-soqking forces turn to social acceptabtlity as a key issue. Nowever, they could not nake tAts turn tf they did pot feel that they had their •health victory." Tha "health viftory" had to come first. it is an Initial step in isotating saakers and arousing their ~ ~ fears and anxtetias. ~e The health issue and the social acceptability issue are ctosaly inta twined. ~, Ne treat thea separately, but as my opeai•ng premisa. I hold that no successes ~~ saakinq hadn't been able to assu.e and, in fact, elaiet a Wittory" on the '~ •health• tssue. • ~ couid hare beea achtered tn the social acceptabllity issue if the foa of . ~;kkl -4- --"..NNN~
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taQ. 2 of 2. d pv-k_• TridaZ, Jultr 29 9:00 s,s. (Sssaloo V) ~Diacussion of sat6oda and fot*ots for ~ pcaa.ntia2 data oa "undsrl7iat factora" 1000 a.ao 6taak 1It00 s.Y. •(S.ssioa VI) Discussioo of prthoda and fotaats lou 12r30 2100 ps. (seasioa VT1) 3230 p... Btuk 4300 p... d 5 (Ssdoa YIt.I) . 6:00 ptssaotin= da[i ` eamut waasueea Lunch in wtkrooa Dscide on eooettY by coontq rtpottia{. .a.ltn.a+ts foti tack,pattYeipaat ttscap daeislnas and assitswats Set plsc. of aact ttstiet Vt•sp-up caasata by each patticipsnt AdSoory wikist session ootil Aatwt 30 t
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..V.. .,_.. _..... , 0 Mr. Plcbard gaddoa Nanafar, Public P.alatto°s nsAgsh-Asaricoa Tobaaco Co.. Ltd. P. 482 v "ptaSastar Nousa 7 •xi7,lbsnk Loud~7r 3.7rs ~Cich gataY I"jha Pe.licy i Public Relatio°s Manss,.r ~rinfara°n A.G• Nsnas JunBfarnatits 18 T4gdWkpt 30 9:S 30 30QO,,Sasburj 36 ~seisn Vo9s2 t Publi,; Balatioaa DLrisioa ta 31 barc 31 Dr".Wvird Staxa Ca11tAt~, Ltd. 6l1:Cii=ssny j°7.x Me.. 806446 806446 851 44791 851 27384 $41 213261 841 r 0212333 851 2330y loado° S7C2D 6M • ' Lstlsad Mr. Joh° S. Laodrr (1SCU 710 $91 2237 ! Lxacutiv. Yie. Prasidant Philip Harris U.S.A. c° 100 Park Avaw• lttv ?ork, NT 10017 . . s w ' . • . In N t 8/~/77 • !. iovtnca ` MFM2AS 0T MOlOt2N0 PnR2Y ON SOCTA' ACCLPTA61L1Tf iSSUE (Chcitaao) Mr. Dannis Datdea Vies Prsidant !t. J. Ray°olds Induatriss, I°c. Vinaton-Salo., NC 21102 (Associat0 Mr. Joess T. 81od Cbdrsa°) Yiea Pruident, P1t°nio= 1. J. 2aT°alds lobacco Coapa°y VL°ator.Q.las, NC 2710t Mr. Jmdrw N. Raid Com.rcial Director lpaial Sobact:o LL:it.d Loabstd Str.at brtatol 0399 7J7t tusl+nd •
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tbrkinq_Dofiniti<>a on social AnL-aptability of Anokina Refers to tle described level of acceptantc of cigarette ...o f...r ~s smoking~by a countzy's society - including non-snakera as woll as ~mokers. St can be measured by the attitude toward taokinq, the nature and extant of people's smoking behavior, types of organiied activity for and against saoking, and gbveramental policy and/or types of goverraasnt legislation on smoking. Tezas of Raterencai for Working Party on Social Acceptability o g 1'. To~I~tss~e,,s,~a the current levell of the social acceptability of s#aoTci.nq, country by countxy, where relevant. 2. Tb~~g. '1fy the factors which have aifoctad this. 3. 1b,"'mine such counter-measures as have been used. ~ •qITo ~.ra.nd the counter^measures to be used. na~t ~ 5. Tocd a mechanism for aonitorinq and measuring ' ~' • ..... . _ . ~ The ob~t"NI~ro s and 'procedural steps that follow flow from these teras~of rsference. N M Cd
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Cb ectives 'ot fiorking FartY 1. Datermxne the nature and extent of the social acceptability of uwking, country by country. 2. CategoriYe and describe ,{ts level and tYend. 3. Develop strateyA* to retard or xeverse the trezul vhere feasible and~desire!!. 7h6 Working Party will be coace.aed with only objectives (1) and (2) for its first of four quarterly reports, due 9/17/77. . D ]Q 8 c~ •a m ~ 7L. ~
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fPORKINC PARTY ON• T}tE SOCIAL ACCEPTaOiLITY OP SMOKING ISSUC ~ ~ BACXCR(iUND Ot1JF•CTIVES AND DROCEDURCS ~ Background Froa the inaugural iaeettnq of the International Committee on Seokinq Yssue, stwckerwick 8oose, June 1977, the following was accomp2ishedr (1) A charter (position paper) waa approved. (2) An •outside contact' and press xeleasi policy vaa established reqardinq ICSZ. ~ (3) Three working parties were formed to examine the ~ current state of each of three areas of interest, "4; develop atrateqiea. Suggested t.ra~a of d~ rafor9iice to guide each working party were developed. - '~ A single com"qan_y was chosen to be the 'lead eompany'-on each '~ Ott,, working paZ rsr-~hazqad to produce a report acoeptabie to the ` ~~full ICSI +jjn~roted below: ~ al AceaRtabilityr of Smokin9 'a~y J. Reycolds Tobacco Company ~ ~a ` . ~ avior Sr.oking~r ~ AfNsh Amertcan Tobacca Medlcal _Basiasch . ~ -M[a,Fvrial 7oba cco 7,iroited ~ 'o*=x'`n ~ UM _5- ,
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•-- 7tevised altsr 7/27-7/29 meetiny. 0 Procedural Steps 1. With U.S.A. as an example, construct an assessment framevork based on and showing the sequeatial evolution of the social acceptability issue. - Idontity factors that influenced it, and their iapact. - Identify conntermeaseres that were used and t:heir impact. - Identafy trends. OWN 199~' .'A" .%Es" 4) UaYSw this fzamework, idontify the current status of s;. . . the social acceptability issue in other•coantries as is&c~ted'by, members of the Working Party. m;xasu satsee Identify factors that influenced it and their'iapact: Identi:y coUnterrneasures that were used and their impact. ~ Identity trends. 3. I7~ify and recommend more effective counteraeasures •- . l8Fr1Yetardinq and reversing the trend toinrd sreokinq inq ruqaxded as socially unacceptable behavior (not to be covered in first report to ICSI). 4. Identjfy and recommond methods for monitcriaq future trends on the social acceptability issue (not to be
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51919 6289
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x, . 5191y 6284 •a. s -- .4tausucan~ erL..O[+ `~' ' . 1 t. 50029 b709 a1./
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0 Thus, to me, it is lagial,tDat the aati-saaking forces turn to social acceptability as a key issue. tioxeyer. they could not uake this turn if they dfd not feei that they had their 'heaith victary.' The "health victory" had to cama first. It is an initial step in isoiating smokers and arousing their ~fears and anxieties. The health issue and the social aceeptahility issue are closely intertwined. g . . . . ' . ;A3iE9w He treit thm separataiy, 5ut as uy opentng premise, I hold that no successes ~~ coold huee been achiev.d in the social accepta8iiity issue if the foes of ~ smokinq hadn't been aG1a to assme and, in fact, claim a•victory' on the ~ 'health" issu.ey~. '(Revised) ~4- U N e w• w 1 ~ w u ~ .!
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51y 9 o'2S6 50029 ST0
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"ODBZ PHA9E ZV ° YNDIVIDUALB AND CROOPS SELX TO PORCE OA BNCD(lAACH INDIVIDWUS TO ALTER TREIR BEHIIVIOR L71N3 PASSED AGRT'HST CICARETTE SNORINOs 2. Harkatinq Restraints IZ. RestrictSva.Smoking in Public Places I2T. Taxation M''° Pzopowd (product restsaints,. lut xnazksting, • 4 i7 p, and environmental)
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66Z9 6i6tS
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~ ' AASYC HORXINC'lSODEL Poa !4°.1SURYNG LE17E'LS OF SOCIAL 11CCEPTABI7.ITY Phase lv'•- Individ,uals and Groups Seek to Torce or Lncourage Yndiyiduals to Alter Their Behavior ~tts'san~s and supprassions not only alter behavior, they n~s1,Ao ca^henge and intenaify the beliefs. sttitudes and intanti~ld by wide segments of society. Thus, stage IV As stronger opinions are formed, efforts are made to have society toaally sanction or suppress specific types of behavioz~~Thess sanctione or suppresaions take the form of lawa and/or zequlations that encocirage individuals to altar their be2~f,~,or. Ths laws or regulations can be promu2gated r. y at vrsi~""~evels of government. The sanctions and suppressions can tak~zi.ty of forss (banning, taxation, subsidy). . reqenera~ tages I, ZI, and ISI.
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z r. PHOPO8E0 LE028LJ1'p2qN 1. Product inqredtent lagit2ation.by Federal OTUtf AdmiAiatraf,ion. 2. Purth.r reatrictfoni on nrtnre and extent of advertising. 3. Further rast•rictions oa amokiny in the ?vork placn by the Environmental Protection r
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~~ ~~ ~."'~ ~~ey~ ~~~ ~~ ~ ~,`,~ ~ AtOIRtTING DURDEN OP fEDERAI AND STATE CtGACET TAXES 1920-197s . ;~ ,Mtt/0N) 01 ppiUN ' - 4rt.tqqOf qptLaAf kOe 2~p )1~ r ).)YC • y ) $ ~~gqI¢¢~y ~{ ~t ~ •~"°"i~j k°`ij{ `~uaw . L" f.+ i ' !} 'y,iW ~ r L eioan~t.aa~natr~+as ~ +. .,A,. ~n.,~,: '-, -7 „a. .o •w ' . . . t . . . . .,~._, ._f. t j e t 1 r rvi.' rm t+o~ not :a ~s ~s .r>a H y SOURCts 2he Tarx Burden on 4bbacco. Kistorical OompiLaticn, obacco $"az L`'dunci , nc., volume il, 197i. ZaZ° 6t6TS
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® 1. CJ.vil Aeronautics Doard ordars commercial airliners to separate arockers and non-sawkers because voluntary arranqements arenOt working thoroughly. F it~ . 2. Interntate Coxeerce Cosnission puts a rule into MTRICTIVB.SNOKSNG Itt PUBLIC AU1C58 3. eftect limiting 20 percent of seatiag apace,on interstate bvaes to sswking passcaq.rs. Tl~f y one of fifty sta•tes have pasred laws bi}n~in'g asokixiq in selected public places (e,tors, public transportation, theaters,' aaraiisma, 1i37rariea, concert halls, food stores, ao!B,„ respmrants,• ana neaaM c&se saca ~~ziaa~ . -CME'F ~ jjw2rs •. s~ ~ . MTF-V 4. Tlre~ughest: anti-ssaking ordinance so far has ~ jvn69:Z~een instituted in Berkeley, Cali.fornia. d commeroial at otm i i l ki v e y e a~oo a pr ng ~ builG.£nga as; xell as public, or governmental, .~~ "I b"Tdi?igs, and carries a i50 fine for failure to zemmn 9 pe~Po S~naking` signs. only bars, tobacco shops ~ ~ aMm restaurants are exempt. A I
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~ hl~, cy,r~aa. s vs ..~..." .~.. _. .. 'DS'....:Juttel8 '- Smokin ~T .dDivislon R.J.Reynolds iobacco Company PEP Control NumbeH i'ROFIT,EXPENDITURE,ORPOUCYCHANGEPROPOSAI RJRT Sub _.. See reverre eide lor Innructione! Attach Perunent auPPoning informarion RJR7 -3.g2Z RJRI heluz ProfitRtossl Effect: Annually Amt. of Budgol Chenge t8..77... 1918_ s_532, Dnn S.._b32,II0D $ 993,5>ZO DATE oov] Appropriation (Oetell Belosv) Total i In Totul S -- $ Amt.olBudgatChenge S..-_ -- $ S $ _ Description of Opportunhy or Problem, Background, Proposed Action and Alternatives, Results: . The tobacco industry is faced with limited growth over the next five years and possibly no growth thereafter, based on some projections. This slower growth in good part is due to the antismoking efforts of various groups in the areas of social acceptability of smoking, restrictive smoking, unfounded health concerns, taxation, etc. The tobacco industry has not developed satisfactory data/information on which to establish a credible public position related to the smoking and health issue. Furthermore, the tobacco industry must determine how to communicate effectively its public position. It is recommended, therefore„ that Reynolds Tobacco undertake to formulate and test a program for educating, informing, and mobilizing support on behalf of smokers, smoking, and the entire tobacco community. The program is to be designed to communicate the truth about smoking and the rights of smokers and nonsmokers alike. It aims to correct misunderstandings about what king means and what smoking does. It seeks.to establish broad-scale public support for m esty in the conduct of research, in the expression of research results, and other scientific .scussion of smoking. Overall, the proposed program is intended to reassert the public credibility of the tobacco industry, its position on public issues, and the story it has to tell the general public and public leaders. Schedule 1 attached outlines the work to be done related to this program along with estimated cost. It is projected that it will take approximately one year to develop and test this program. Summary of Flnancial Effect ProfiUfLossl 18----.. 19- Annually S s s Or n ~ F. • st Annually After Implemenlalion s Approve See Schedule 1. i iy -Gr- 7 pppropri` etion Total 19...._ 18.__ 18, :unted b S._.... x S Expemed ^. m . After Tax ROI - x I no. of preceeding PEPs «Iarive to thls subiect_.._ I Starting Date Completion Dase_. ___Proj, No. inel PP ve : 3~ etlo ~'~ Approved Copy to: Dennis _Dstrd 0 • 7 17 A .>z 6XHIBIT._T DeponenlJ,~l; l l . Dalo Rplr.__ - mvn.rxx
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' TlLJITIDH Three levels of yoJarnment tax cigarettes in the U.S.x. - Federal - $tate - ltnnicipal (local) ~~ raderal - 00 per pack of 20 qigarettes. State ~ ~ - X1.1 50 states and 2he District of Colus,bia tax cigarettea. ~ raafrom ]C to 210 per package. . . ~_ Mnnici a ~ a y ~ « 36*.•,"es, trnnre and counties imposa further,excise >a ~~t rates ranging from 14 to 100 per rackage. AetaitiSBr~tf9 , ~ - Th~aqS racHil price of a package of 20 cigarettes .en~n §A= in,tVfitrs0. S. aan 49.20, includiag rederal aad State +4rVI $SEAM exGi taxes aad general sales taxes, but excluding r~ . 1 taxes. Aithoat any taxes, cigarattes would ~ retidCdar 21<r•per package. ~ Total - E'cdff". 5tata, and Nunicipal excise taxes on ciqarsttas ~ fop°~w fiscaIl year endinq June 30, 1976, amounted to ;6,057,348,56d ... over 6.0 billion dollars or $28.46 per man, v.oman and child. SOOFtCEr The Tax Bcuden ort Tobacco. Riatarical Corspilation, oFaco rtau cc t~uncil,Tno~ ,cil,Tno~, Volume 110 1976. -47- ' .
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• 'Deaaf: Durdon ra•lor: .d l~N 1MT! ~ µY SYI1TfNEHT ,1uly 169 1977 NFAITN 1SSUE AS RELATFO To 1HE ., ACCEPTABIIITY ISSUE IN SHOKJN6 • Conventional xisdom in tAe U. S. tobacco coammity says that the "social acuptability" issue has arisen because other issues of anti-smoking forces hare failed to curb cigarette consuarption. Nore specifically, failings of the so- .4al~led `health"issues are cited as the reasons for a new 'and much stronger anti- saruciag thrust based on social acceptability. , . . . fi I disagrn. ' a I don't believe that the social acceptability issue is being forced as a 'laceeent for the health issue. Quite.the contrary. I think social accepta- _~_UFxPty is viewed as a logical followvp to en assuaed victory which is being 4lh hhid thi med oa the hea4 sue;ntt-saokiog forces fee teyave aceves , d ~. . • . jsYdaory and are now ready to aa6.e a-followup effort. As'far as the~t&!Fo cocmunity is concerned there has been no such 'heaith 0 ! 1Te tnduf;~believes that the health indictaents of smoking are unproven. Rtoore research is needed before there will be enough facts the "heaith" issue. To ecr+tbe and!~noking forces are saying that more health research is not - Instead. ~hey want to see is more money being ipent to.spread the knowledge have alreadypli'Mished about the"health"hazards and dangen of smoking. ~h'dy feel that thq~~ their health victory in hand. They see everyone of our ~ ' ~arette packag x~ing the tabel"uarning, the Surgeon General has deteiwiined ~t cigarette sow ~Q is dangerous to your yealtA." I believe they now feel '~°~ tiwe is right to teek a broader • warning. Khich would ultimatelj include ~rase such as this: `She Surguon General has deterained that cigarette saaking %Ak.y~ery dangerous to your health and to the hoelth of non-smoken.', As I read the opinion surveys, I believe that more and ~--. of the Pmerican . public tends to agree Rith the anti-smoking forcest Pins7Ty,I think that the health issue is closed until there has been sufficient additional medical research
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r WORLD ?47URKET 2.5 SriU.ion Daiti (Exal. Cortrnnnist E1oo) ~ V• S. K1RURT 604 8illion Units . . ~ ^ FF~3YRA 9 ~
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iarz.n~csxo r~+rrox~ xrr;crt 80MAr-7zrrFi'~dIL21"Y I&SUE aqe •~°2te,'dv'a VI. Poiitical and S,egal Anti-smoking Actions spread to "' aT Tuzind ct~ns. -• RSdespread Diffusion of Attacks and Points of Attack Nake Zt Even `bre Difficult For the IruSustty to Cope. -- Noy pace a flewi]doriny variety of Localized Raqulationa to Hake SprokinQ and Smoker Socially Onacceptable. ii QEM!;43 l[wvaav/J -n-
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E a Country United states 7Wa NethIrlands 5 JwS3IGiiXEiiT 9HEBT (IUcnkad by salee) Volume (Millions) 619,100 132,000 123,800 106,700 '58,400 38,200 30,833 22,700 18,900 16,088 15,500 11,700 7,901 7,648 Richard Aaddon .~.r~.~.-.Y .... Assigned to Sameg T. Hind Andretr !!. Reid Christisn Voge3. Richard'RSddon Rioaerd }taddaa Christian Voge1 . RiLaird UAddOn i7lrich t{erter vlrich Rerter John T. Landry John T. Landry James F. Hind Andreu H. Reid
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' Rcvirod aitor 7/27-7/29 mooting. .4 ~ ~ /iorking D+fini,tion on social Aaclptability of smokina Refera to the described level of acoeptance of cigarette snokinq and aaokers by a country's society - includinq non-smokers as well as smokers. It can be measured by the attitude toward smokinq, the nature and extent of people's smoking behavior, types of,organized activity for and against smoking, and governmental policy and/or types of government leqislation on smoking. rdeally, there could ulti=tely also be developed measures of smokers' beliefs, attitudes and opinions about the social overtones of sroki". ~ cxerne21eference for Working 7arty on Socia.l_TceptabilitY 1. Toaa'ssaes the current level of the social acceptability ~ cfoMicinq, country by country, where relevant. " T4 Zentify the factors which have affected this.' 9L-Ae p~?; ~ 3. 2b ine such ccuatermessures as have been uaed. 4. ~i re endl the countermeasures to be used. . 5 1b r~pcommend a mechanism tor monltoring and measuring ncarraFr future changes. ~ The objectives and procedural steps that follow flow from these terms of reference. (Revised) -6-
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Billions of ciqarattas 460.0 440.0 420.0 400.0 380.0 360.0 LJ ..~ . f~`.~ v.. 1951 - 1959 URA ~~rz `~V'r Anti-$~tmokibg Publicity By Doctors, Scientists and Ixader'a Digest 1951 1932 1952 1954 1955 1956 1957 1958 1959 380 395 389 370 380 391 410 438 453 4 Gu~ +3..3 +3.9 -1.5 -4.9 +3.2 +2.1 +4,8 t0.6 +4.5 * A4iustad for tradihg day differences Unit Balns ZttS 6Z00S 770£S 6T675
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E RE'rAxZ sxLas $15.5 Eillion WROLE8kL8R SALES ;13.1 Sillion ., So871cCO Ca•SrAltY SALES $ 8.3 8113ion" 7.ncludes Feder:l +.S:cise Taxes. r
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O9'HSR GROUPS Saventh oay Adventiata (Religious) - most active and vocal r+ligious group - strong proaoter and sponsor of "quit' sooking olinias - praduces anti--moking publications and cann.d news Women's Christian Ten ep rance Union (WCSU) -"Ia 1976, using the theme 'tiew Rori:onII•in . ~Ieqislaticm,• it urged its mQmbers to speak y~ up against smokera pollutinq the air. . tior!Aa.RSalth Or~,anitation (WHO) ~~ =Os4part of Anited Nations m%r 6arqes Mesa2»r qovernments to stop up anti•- L smoking propaganda and tak0 eteps to 1-0~otect non-smokers. > : ..~..~ I ".42-
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-4- %D ALA produces anti-smoking commarcials for telcvisiod oq a peblic service basis. It }rablishes a montly bulletin. APHA - A!lERICAN PUHLIC HERxTH ASStJCI71TIGN National Headquartersi 1015.Eighteenth Street, W.W., Washington, D.C. 200061 SO affiliated groups. ~, APRA is a•profesaional organization of health related people walo seek to protect and proioote public and personal health." It ~lishss a montly nows].attar and produces aati-sarokinq pasphlets ~nd tilms and has in past years condueted stop-smoking clinics. It a facilities. active in proswting na-ssakinq in hoapitals and other health d2f' Zn August 1974 it instituted a suit, with senator e'raak Moss -+Jtah) and the District of Columbia Lung llssc., asking the U.S. ~strict Court to order the Consumer Product Safety Conscission to ider a proposal banning the interstate sale of cigarettes with then 21 ligrams of tar. Legislation preesq,ted the suit. sa4ongrasa detem-' that cigarettes were not in the jurisdictton aDf CPSC. 00F~'"" saP~' . ' AP871 has ~.`t&cted saooking at its meetings since 1973. ~~ . It claias -J~oAupporL- research in smmacing and health,. t of an adv ccamdittee to the Surgeon General on rmakinq health whi a 1964, produced the anti-smoking report now AM , wi , A%A ar,d /eLR, was instrwsental inn the appoint- called i"c 9urumsGuneraLl' a iteport. e ~es~e~ __ '~RICAN 2EMPE1(7A= SoCIPTY, (See Seventh Day Adventists) R - J155pCIAMOR NON-S2iOICERS RIGHTS ~~R . ...I ,~ Lucated i*"•liFPA~eso ta, PA~esota, the association was organized in 1973 aponsored Lung Association of Hennepin and Ramaey.Counties. ~ is an activ up for citizens interested in protecting the _'s~aht.s" of th Lamoker to a"cleaner" indoor ecvironment. It expanded tg 4#Aer cities and states. ~3 - CITIZENS AGAINST PUBLIC SHOKING Orqanized in 1974 in Revere, Hassachusetts. it is attempting n convince citizens that it's not only hazardous if they smoke, also if someone near them smokes. it helped lobby passage•of B 409941A (mora) N ~ N a Oy M d Y^^r+.:.:.•eN...«:.ir...:....w.:a.' -.."-".....«... ... .. . ......... .» _. .. • .... . . . . . .. .u.......... .:.
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-9- lMi • $09 - STS7DENP5 OPP03LD TO SMOKIHG - Penn. State University, 1976. A group of students opposed to smoking in cl.assrooms. umoroui approach. Newport 9each, Ca1i!., 1975. It uses cartoons and posters to encourage smokers to quit and/or be courtsous smokers - in a SURVIVAL GROUP • , I TAPS - TEX7WS AGAINST POBLIC SMOKING - i ! •.Formed in 1975, this anti-9mokinq group is working for a ban rd yVW ou smoking in public places. The group is lobbying for legislative e q action. ~"TOIi49 - TtXARS ONITED. FO1R TNH RIGBTS OP RdDT-St/0K&R8 Por,.ed 7/ with several local groups unitinq their lobby- Snq etforta introduce leqialation that will support tho "rights` of nonsmokers atqonghout the state. c ~ '7R0- WOALD ItEALTfl ORGANt2ATION .. • '+c ~ C d x ~ d i h i en.va serlan . A part of t e On te s. . at ons, HNO in p tha onsmo eceive protection, to whieh they are entitled, pro ,ada conaider steps which cxn be taken towards eneur.inq A.tP ib vrqea qovernments to step up cnear anti-saoking o ~~ !r s~envinment polluted by tobacco make.' ' 1iGTU - 4M0X-AA=CH1USTIAN T ZMpBRANCE t1NIOH !i 0. ~~ •In 197 Snq the ir'seme "Hew Norimns in Lagislatloa,' it urged its s to speak up against those who smoke in enalosed ~ plecas ar.d a nd up :or their 'riqhts" tb unpolluted air, ~ ~f . txJanuary, 1977 1;1
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-S- petitions to place non-sraoking referenda on the ballot in Marsachu- F. r+S setta. There is a branch in Orlando, Yia. that was astablished in 1S76. ; CAN - CLFAN AIR NON Organised in 1975 in South Kensington, Rhode Island, by a group of students and the University of RI, it is active in trying to get professors to enforce no-snwking rules and is urging that sections of the campus cafeteria be reserved for non-smokers. OCDEAAL £NnfAYL88 FOR NON-6NOXER9 RICNTS Formed in 1976 by employees of the Agency for taternatioaal Develop- ~ ment, it provides support for enforcement of recently issued guidelinea on smoking in public places in the State Deparlxoept, IL LLLOWSNIP OP NON-SNOXF.RS_ • ~ ~ A firm thab is establisbiny itself as a source for "non-saoking ~ _ Y,jewelry.' 24~•a 1975 ad it asked people to send in articles on anti- ' ~ hint their frustrations with smokers as a procaotion for , ~~"si.oking and ta. 3,.•,,:_.,their producis. It sa•id it would pay a fee to those it used. Itt is '~° ~ located in Apati4, Texas. ~ ~ FaNS - FRLSa aXLJ'OR NQN••SNOXERS ~ Orqani f q 1974 and sponsored by local health asaociationa in v t ~ i.s actively promoting non-sanking sections in rest- .,2tassachu:et ~ura.nt~s,~and ME7ie public places. ~pc~F 1 FRES}irASI70~"~iLES ~ ~. ~ Satablibhe'd°!.n 1915 in Florida, it•is a social club for non- - . . ....~. . . ~ -- ---~~ 'GASP - GRGOP ST Sl60KCRS' POLLUTION 1 ~ jd j National 8 quarterst P.O. Hox 637, College Park, Mazyland 207401 ~ ~..~toundar and t-ae, Nrs. Clara Couin. It claimad 32 chaptars as of 9/76. i ~ GASP has_u_blished a monthly ne+.sletter, "The Ventiletor," and vari- t ns anti-smoR`th'~"paaphlets, working in cooperation with the Lung Aasoci- ation of Southern Maryland, Inc., and other anti-smoking groupa, Ac- } coxding to it,i pamphlats it "is an environseantal action group specif:cally F ncerned with tha problems of indoor sir pollution caused by tobacco wok e . • f ~~~,,0.°~~ 6ASP members include nonsmokers, forn~er smokers, and "even sowo en- ~ ~iqhtsned smokss who recognize that 'smoking is an activity which ~ashould be limited to consenting adults in private.1' o~ n ,... • , a e . - ~ Over) '9 .
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E 296 1 g6 ~_ ~ I~~~ PtlELTCITY INTB!l9IPL D R0M CCLLEGb 08'PHYSICIM3 'S!lpKZtlp i NE7ILTH REPORT" PUBLICIESD IN U. S. StlRCrM GEDigML'S REPORT IBSUED. ' a!lERICNN MRDIC7lL ASSOCIATIOli ENDORSLS CIGARST?t'd SN[SKINQ AS A SERIOf13 8P.1lLT$ NAZ1lRD. -O;rMAE R87WRR'S DIGEST ARTICZSS OPITH SY11VY fm~sS PUbLICIT7. C 0
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du'oed • k vo R i .~ R Lta~}ntp '.,,dt~„ - %T[E V. S. CZCJIRETTE IHDU3TRY 9f • in ~ xMNDAL Ot12T VOLiSH$ . •1960•- 2964 surgeon General'a +/ Report 90£9 6T5I5 1960 1961 1962 1963 1964 476 496 494 507 497 +.4 . S f4 . 4 --0 . 8 t3. 0 -2 . 3 far.tradinq day diLferenoes a] 0
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7ato 1 of 2 ACTNDA ' . July 27-29 .eatin6 af tha'1CSZ SS.tkiad Party on Social Acceptabi2ity of Swokind (A11 uorkind aaaioaa vflr be h.ld at the Onitad Nations Pla:a Nottl ie Nav York City) 8200 y... ,/9330' p.a. k'` ~ Thuredar. Ju'Y7"79'0 k1i 9:0Q a.a. ~ITljeioo I) ne~ S am.a.hirtak N ~~ V/Alz40"s.e. .4( Senion II) ~ ~` n +JDid•.A7 ~c . ...,....._, ~ `~iZrJA p... ~ ~- rAm 2100 p.a. xs0asaloo TI:C) . ~ f ar~rxw 3S7D p.wp dreak ~ ' • ' F a3' 1700 S/~ p... ($easion IV) ~~ G7i ~ 8t30 p.. Aaception, dteaer aad ahort aaetin=. Cocktail Rour - 9uit. /Zali U. X. )lasa 8ott1 Diaaer - 8ots1 Mn2nS Aooa Ehort wrkta= diseosaioo - Suita 12614 Cacherint tosathar to gat, Ta ssacquaiatcd Votkios out dail7 achedule ss out votkiis notebooki Vorkroon is re4isterod in Denois Durdaa's na.e at Q. N. pla:i Discussion of each participanc's overatev and back{roood p.rspactiws on Soaiai Aca.ptability Issue `yavisat, ssplify aod-dettla on aust aarchio= orders for the Wwrkta= patitr (couree docua.nc ia "Iatwa of ftafar.nce" sbeat from first ICSI saotind)• .Agrea oa wortia: definittona of key teras. Lunch io wotkroo. S.ttla on tcopo of work and exret eonteata t. be ineluded in the vorkiat party's September 17 report Dlscussioa of basic worklos no4el for ortooi~tnd datt that portrays the level of IIocial Acte?tabtlity of S.okins. ., • country by country Dinner - Vindowo 00 Th. World r
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r v u ~ r o cl u ce e 2f2il.lOn3 - af a u~ k I 1~ Ciqaratte; • , State Cigarette Taxea Mt3-Cigarette TV Carmeraiale 530.0 52S.0 520.0 515.0 510.0 : 1965 1966 1967 1968 1969 Unit Si143 $15 (Bila:.ot Ciqta.). t 7~nnval 520 Gy-owth +3.8 +1.2 523 528 517 1970 '524- +0.7 +0.1 -1.7 +1.6 ~ Adjnsted far trading day diff*rsncas. 9LLQ 6COOS , 90E9 676I5
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;6 SPORX SCHBUt1LL 7/1 7/27-7/29 9/22-23T) S :,.4,_- P.7R proposes meeting.dates and places. Yorvards Definition of Social Acceptability Issue, Objectives o! Working Party, Procedural Staps, and Tiasatablr,. rirst meeting of Working Party held in U. S. •Lead Company RJR presents U. S. case history on evolution of the Social Acceptability Issne and proposes assessment framexork. , assessmnt iram®vork, defiaition of tezas, evaluation approaches, qeneraliaed report format, countries to bee monitored and dssignments finalized. Second meeting of 4lorking Party held in Europe. Reports for all countries reviewed and agreed upon., rinal reports, country by cbuntry, consolidated and auttaaarized. 8ina1/consolidated WorSci.ng Party Report sent to menbez8 of ICSI. Reports on •Socidl Acceptability o! Smokinq with recosaaended next steps presentad to full ICSI in Lausanne'. . (Revised) -9- I . a r ® Reqleoa actes 7/27-7/29 meetinQ.~ yoe.+i w1.~a.:: f
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-6- ~ WP's objectiveei "To support the rights of tho nonsmokert ~ to turn public opinion against the social acceptability of aaok- ingr to publicize the hazards nnd discoafort caused by 'seeond» ~ band' tobacco smokes to eliminate smoking in public places used by nonsaokers asd to provide information for the establishment of local GASP chaptersi.• Local GASP chapters ase actively promoting legislation in local and state governments to establish anti-snwking laws. They are encouraging and aupporting people to ehallenge smoking in the rk place and have made 'citizen's arxeats" in publio piac,p;s „ hero no-smoking laws exist. with lawsuits rasulting.. ~a ,, • ~ "'HEALYR RESEhRCg GRDUP National Readquartar.s: 2000 7 Street, H.W.P,ftashington, D.C. A Ralph Nader organization "composed of doctors, lawyers, and "t*alth professionals working in several major areas of Consuaur aehsalth and ety -- food and drug, products safety, health caxe alivary sy~ and ocr.upatioaal health and aafety,• smoking in o$m,iexcial airline cockpits and by crew menbers eiyht hours beforea•~ta. Zk. has encouraged people to ask for ttoa- raoking rooau _ hospitals and haa called for an snd td tobacco In 1976'it ~etiticned the Pederal Aviation Agency to ban ice suppor „g,,,i.ilAC7C AND JIL?~"McLSS CLt)B ' 7~I lorida, 1975. a senior cit.ize»Q non-ssrking i.ng2~soc:a '~ub< . ~ V TZOitXL CLt7GRfiG800SE FOR SHORZNG HtiD BEALTH' Nation dquartarsa Canter for Disease Control, Dept. of ~~tealth, EducWt!% and Welfare, htlanta, Georgia 30333 ~ Daniel RaPh•D., Director (3/'76) The Clear3n houae was established by the Secretary of HEi~ in ~~~965. Its p`r`ose is to assist the Secretary in acevmalating cur- ''qsssont intorwation an the health consequences of aaoking. This in- ~qformation is passed along to Congress with legislative recoauaenda- i ttl.ona on smoking and hea.lth. '' It is the chief ant.i-saoking propaganda arm of the government ~_ nd servca as eounselor and.clearinghouse for other groups on matters f smoking and hcalth. (raore) ^-'-.... ...... ....... w.e. w: • ........~........: w..'ti'
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faxxerzrro REsrPAzttrs I. Yederal Cigarette Labeling and Advortisinq Act passedt requires following stataa~ent on all cigarette packagesr Cautioni Ciqarette 8nokinq May Be Hazardous To Your Health. ~ 2. Pederal Communications Coaenission rules that ~` broadcasters who carry cigarette commercials awst ~ pros~ide time for aassagns on the barminl effects ~' "~ • ~ of ~tgaratte smoking (Fairness Doctrine). 3. C1 ~~t•~te caupanies volunteer to withdraw from bro'&IkV!t advertising and•law is passed banning C a oi 't caomercials after 1/1/71. ~ . .~ ~ ~ Ciq at a oompanies aqrae to display surgeon C.nbral's x~ he44,,biarning and list brand's tar and nicotine in all media advertising. 5. CipYa;ate companies voluntee'r to withdraw promotlons co~ students, aa~
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AM HI:8TORIGL PLRSPLCTIYE 0:1 T}I6 BNOKINO AND NLALTH COttTROVSASY IN TNL' 0. S. 1951 - 1977 -a i 1. 1951-1959i Its 8eginninq. II. 1960-196'<y Anti-Ciqarette Publicity IntensiLied. 111. 1965-197Gt 7unti-Srookinq Orqani:aationa Iorm.d* Coverneaent Barveillance of Ciqarette Industry and Its Activities increased, and Laxs restrainiaq the marketing of ciqarettes pasaad. IV~1-1977 a Advanced and skrouger forss of regulation against oigarette smokinq proposed or enacted as laws. a ...-,;.•-T~;..4l.:r~~. .....~C:., .S~i
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-8- NON-SMOKER3 RIGNT9 CROUP ~, Norwalk, Connecticut, 1975. It has circulated a petition .- requesting local restaurants to aat aside no-smoking areas. NON-SMOKERS SOCI..'TY OP JIJQRICA. TNC. Established 1959 with 1:lton Ochaner, M.D. as Honorary Presi- dent. In one of its by-laws it states that it 'supports research into the effeot en non••smokers of asicke exhaled by others in public r ~ ~ places.• In 1971 it cl.al.med that switching from cigarettes to ~ipes contributed to pollution of the atssosphere. R ~ 1 si NONSMOXERS' TRJIVEL CLUR": r 0 An o[t-shoot of GASP, 1975. It qathers toqether groups of inonsmokers ta travel toeether on oommercial vebicles.'• , ~ . ~~7-•R-L. -N-O~N-6M0)~('i KI71ltI 9INGLE CAMPSRB ...~ ltiami, Tle., 1976. A group of sinqle ncasmokers that go on weekend cs.pagts,. ¢ LVENTFI DaY f~TIST3 • w~ Nationa3°Rdquarteurr: 6840 Eastern Avenue, N.W., FTashinqton, oj%WC~D.C. 20012 ~ is^26lS'v6.of the most activa groups on the smoking •quit cli>~rsap~,Initiatar of tha °Pivo-Day Plan to Stop 9aaoking,° ~tha qroup p ~ s anti-ss~oking publications and provides "canned" ~ewa and feA stories to loca.ll papers. It rune d.ona 7,inda Uni- versity in rnia, which does saee amoking and health research. e SDA reli forbids smoking, drinking, wearing cosmetics and eatlnq meat smoking clinics are usually conducted by a min- ~a~ter of theecYq4ch, a.nd are usually free, charging only for mater- e,ls. Other secCs, notably the Mormons, also forbid use of tobacco, but have not=tesr+alized their activities as SDA has. ~z '- ti71~tE - SoCr.WrT-ro RUMTLZATE, AGGRAVATE, HORTI.°Y AND EHHARRASS SMOK$RS ~~ Yormed in 1916 it is a militant group of anti-emol:ars who have ona so far as to remove cigarettes from swokers' mouthe and dip nds in the water glasaes of snwkers at restaurants, claiwing that if their air must be polluted by amoke, $o the snokers'-water should "lso be polluted. N • N d ! S- p 0 ~ (more)
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ACS - ANLR_CAN CANCER SOCIETY ~ ~ National Headquartars: 777 - 3rd Avenue,* New York, NY 100171 Chartered Divisions, 58s Local Units, 3,000. Income is from public donations•(an annual `crusade•), invest- ments and lagacies. It publishes a large variety of aaterials on smoking and health, including paxiphlets and posters. It produces 'public servico" anti-emokinq spots for radio and television. It reportedly spends 291 of its incoae on cancer research, It supports sms research on smoking and health (last known annual figure: T00,000 in 1970). In 1910 it claimed that experiasntal dogs in one its research projeets developed lunq cancer as a result of foreed saokinq. The Society's refusal to permit review by an impartial ~aientific panel led TI to label the report as a•6osx." ACS supports various anti-emoking groups (see Hational Inter- oncy Council on Srookiay and Health), and conducts smoking cessation linicr. It is nov active in.the "passive amoking" issue. It has ecently conducted surveys of teenage and adult fea+ale smokers. • 57 ACS off o have said that one aim of the society is to ` liwinate c~ialcn, te sauoking entirely." A program adopted in 1976 targets a 25I~Yiution in adult smokers and a 501 reduction in d en smokers` Y 1982. ADA - ANERICA}•~1~EtJTAL ASSOCIATION - ' _ ~ - T:~,~dquartera ~ " Nationa *~t0611•. ^.. ~ ~ pub 4W telev*W n-wiaBVal ~ The Natio 211 East Chicago Avenue, Chicago, IL anti-emahinq pamphlets and aponsors anti-smoking ' It also provides feature articles to laedical and ications on smoking and oral health. It is a member teragency Council on Smoking and Health. ERICA2i KFA~UNDATSON, INC. Nationa~quartcrse 1370 Avenue of the Americas, Nea York, ~NY 10019, F unde and prr•sident, Srnest L. Hynder, M.D. The foun~d ndn is non-profit and tax-.xampt. Its main revenue 0 ource is gra~•fro~n the federal government and otherr foundations. ts objectivea':'!'To enqagA in research and education in the field d f preventive medicine !.n order to evaluate methods of preventinq, ctect.inq, diagnosing and arresting the progression of disease, and effect of such methods on the individual's health and usefn). "*;;Iongevity.' &M D ttdr i a ma jor national r.ynes,• anti-smoking spokesman. The foundation does research in smoking and health, including tmo.,* - - ---- - - ..- - - -- -- .,.
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-7- Its annual budget hxs in the past been as wuch as $I nillion. ~ Sn the last several years its budqet has been cut to less than halt that amount. It publishes a srouthly 'Bulletin,on Smoking and Health" and conducts surveys of sasoking trends. it also publishas a yearly •Direetory of On-Going Research on Smoking and Health." scNJ1TI0NAL INTERAGLNCY COONCII. ON SNDICIbTG AND Ii6AL?R g National eoadquart:ars3 419 Park Avenue South, Rooa 1301, NY 10016; Lstablished: July 9, 1964. Executive Di- Naw York , ~., ;ectori Aobert L. Nall.acs. The council has 34 active members g°°-Inoluding ACS, ALA, M. APRA, the luoericsn r.edieal asen„ and several government departments and bureaus. Contributions from, non-governmental members are its major neame souree. Tha council •seeks to use its professional talents a'"OU bring to the Nation, particularly the ynung, an increasinq avare•• Stesa of the health bpzards of cigarette s=kinq, to encourage, sup- aauort and assi"fe..Hationai. State and local Smokin4 and Health nro-. area ot health.• elated to thris graas, and tosQ ne erate and coordinate public interest aad action # I tsy, rta d.i travels widely to address end counsel anti- material ndividnala and organizations throughout the coun- ` cas filmstrips for teachers and pzovidas information oooncils, pr The nat~ council provides assistance to local ,tateraqancy .moking grou lay audiences. Each January it has staged a kinq~d h 'educ:at.ion• veek near the anniversary of the repor of' thesggg6eon General's Advisory Committee, concentzating on tb ssi smoking" issue in recent years. ss - ... . 0It is - e of the sponsors of the World Conference on oe.okinq and H.,f19h which has been held every th:.•eee or four years. A!gt publishes-Vtnyarterly newsletter. aWONS - NATIO43ffiftaANILATION OF NOH-SHO3CERS Chicagoc'~ .ZZI „ 1991. NONS members are monitoring public placea Mhere no-smokS ""`~ava have been established and reporting violations, . rhey than prastre those responaible to enforce the laws. NSi(O7tER5 11LLSANCE V Denver, Colorado, 1974. It was organized with the specific h.-pur,7ose of lobbying for leqislation to prohibit smoking in certain /~ ublic places. • ~ ~~,y o ` ~/~ N a d b 0 (over)
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. d ' Procedural Steps 1. Hitb U.S.A. as an exacple, oonstruct an asaessment fraue•Work b4aed on and shawing the sequential ,evolution of the social acceptability issua. -'Identily factors that influenced it and their impaot. -,Identity counter-Measures that were used and th.ir impact. . - Iderttify trends. 2. tlsing this fraraework, identify tha current status of the social acceptability issue in other countries as selYPW by murabers of the Working Party. 3;P-,~nidentify factors that inf2uenced it ia> .--,_„~pnd their 3npact. , ~"Identify countsr-neasures that were "~Pwuud and their impact. ~ Identify trends. • . M-4'#Aiy aad recoearnend more effective counter-measures t~natardi.nq and reversing the trend touard smokinq "RN egazded as soeisly unacceptable behavior ". 4. Identify and reeommend metbods for monitorinQ future tr,~¢s on the social acceptability issue.. N lf1 W
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Talex No, (Cbairaan) Mr. Dennis Dairdra Vioe Presida.t • •k. J. Reynolda 7nduatriaa, Inc. MSnaton-Sais, NC 27102 (bsoptate Mr. Ja.es P. Mind CMirnan) Viea Presid.ac, Plmnics 1. J. Rqaolda tobacco Coopaay 11 741, µinston-9s1er, NC 27102 1%0~ ' - Mr. Andiw M. Raid 8,rlt1s6-~Asericaa Tobacco Co., Ltd. f~~0~3ox 482 Niftaiaat.r Nou.a ~1 ' I Nillbank ~.o{?doe Sst1Y 'J1t an~s'ed ~ TpLissry Policy & Pvblte Ralttiona Xaaarer a020WA Comercial Diractor laperial Tobaoto Lintted Lo.bard Straa . lristol E399 7JR lutd. =lutd Pa = Nr. Richard Raddort Dir.etor of Poblie Ral.atioas .. Irich Mstax `~ Irinkwna A.O. Y JunBtarnstie= 1$ Q, 1au 30 05 50 36 t C.ra.np ristiaa Vo8e1 of Pubiia A.latioas Division 806446 806446 861 44791 Asl 27384 , 841 213261 841 0212333 $51 23503 London i,'CZE 6% t]+slaod Hr. John T. Landry (BIIC) 710 $912237 0cecutive Vice President Philip Norrla U.S.A. 100 Park Awnue Nev York, ttY 10011 N d a N a w
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a 7/1 ~~Cy y/a7-7n9 '•~. . ..~' . ~ i Noax.SCUEaUbB R7R proposes meeting datos and places. Porwards Definition oS Social Acceptability Issue, Objectives of Working Party, Procedural Steps, and Timetable. First maeting of Working Pdrty held in U. S: 'L.ad Company" ta7R presents 0. S. case history on evolution of ths Social A=sptability Iasue and proposes assessment framework. Assessasnt framework, definition of tersss, evaluation approaohes, generali3ed report foraat, countries to be monitored and asaiqwoents finalized. secoad meeting o! Horkinq Party held in Earope. Ibeporta tor.all countries revieaed.and aqreed . upon. Suromary ortlinn developed. rinal'reports, country by country forwarded to RJ"R for consolidation and saemary. Yiaal/consolidated Working Party Report sent to mambers of ZCSI. Aeports on Sooial Acoeptability of S,uaking with recommended next steps presented to fea1J. ZCSI in Lausanne. -g- 1.~ ~ N .~ ~ ~ O . f lTl h N 4 H lD 6+ N kD Ln
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1951 - 19591 ITS DLCINN2N0 - - F7k"S'EEN REAOER'S DIGEST ARTICLBS PtTE.LICIZED MIC8 DA?IIe SMOXINQ. - S1t01CYNG & NEALTB STGDIES SY NOTED NEDZCpL DOCTORS AHD SCIBNTIST P48.LICIEED. p3=°' SO/OS CTG7~R6~TS COMPANISS ST11RT ~ ~ COHi~hFtATZVB TAR LEVSL ADVERTISINC - r-!~]IKBICYCAH CRNCLR SOCYATY REQOBSTS ~ 0. S'. PRESIDENT TO RAVB A CO!!lfISSION _„4STUDY TOSACCO AND RE7¢.SFf QmSTIONS. 64= b V r y - ~ ~
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• DEPSNITION OF 1'ERt<8 1. Social Aoceoeability of Smoking -'the described leval of acceptance o."f c:igarotte smoking by a country's society - inc2uding non-cmokera as well as smokers. It can be weasurad by tfie attitude toward smoking, the nature and extAnt of peop)..'s smoking behavior, types of organized activity for and against amoktng, and governmental policy and/or types of government legislation on smoking. 2. 8asic Norkinct Model - A qualitative and descriptive fr rk on which to assess the nature and categorize thent of the dev.lopment of the Social Acceptabi.lity a c~ of Scok~g issae. ~~wa 3. Sno146s~luvior - Caa be quantified in a nawber of vaysi 2readin inc:idence of ~1Ctn9 ~a the popalationr percent a~tmamraastaftiag to iQeoket percent quitting saokingi per capita ,conkcpsionj and types of cigarettes smoked (e.g., high ~ 'tar. low 'tar.', ~ 4. Coual.z3Heasuras - 7he response of the industry to the ,~ ~ ~ •~ Soc1~aS Acceptability of Smoking Iasus. N 17 [}) Q ~` b kD . . . a 0) r . ~
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- n. , • ~.........r.Irrw+.atwuwwW~a.r....a..a. tt .... w.. ~/Mtrts t.r .b I..t..aq L w.• - tW t.e.. >r..ItMr}.( wLtl M yuatW rvr.}al~e M ~J..Jty ..i .•..tar wal.tyl r.rYW.. zscc bZ00t L8Z° 61619 ~ ~•niP' 'lIn ~ `IttrNS }t• ~ c e `kL+llf tt. f..- ~ fl.ely. 1...1 «.a.aWtt.y r..,tHl.r - a rt.l.a 1..J•.n KaNtlW.ewNt•.~-• ~•• lWy,p. .111Y. Yrl{ r.~.[Y Y Y..I «I~IMY ~...Y..{ (NNlY.N. ~ l.N1Y ly".. 1/,~M /Y1w11rlIW. p~~ t1 f1S .i~ittL~,.( (y..M1 l1,Ii[i} E la .... C}N)Y{W. G - WIWM...w r/.ait4.~"l~MMf Y..M.w.a. -tr...e1-:.wts Mtr. MY~+IwWF.wtw.. 0 • • t..... ......._ .t M+L. .,t ..ua o... . -}vlW«t s.}W..W..a ryr.. YW... ' . s r ~ - 41{i nVM t 11f.. y . • pl{j.}} , [ ~. t(r. .y.e{.Itr f.e rlut stir~ 4.w. LLL+~. Z -Ofoia /.12ta(.... w4 cra.v t.. l...Iq. t , - i«:i{{lt.f ~/LYl MIr.. M tL/ «f.. t.f w..( ' i 4.1Y Yat.r. . Z F _ ' . 1 . 1 . s t ! - W~iMe'WtJ u,wttYh.. w <rw.e .N.Mµ ~..•M. .+ tl/uNN 1JwU} WYL t..}Lr.LLL! ..r.na. . . ! -a{Yr /i~rtW f.ii Y.~}..( r rW. Wlrl .W4~ w . _ .rW. l..y.. ..tttt...J..n.,W. - tRF..a7,it thl<w.. .xt.w.aN rtl. !~S}-w.Aa t.~te~. • ~ f .. LILWN dfw 1...... \lr.tp r.yilN.il../. • s .u..t ...a.t..« 1... . -(.wr .. . ~- IW V.IIy ~r.allp..! Lt.~..~ W,~trlwl• • Z . . ' . a = W / ii~~~i4WUl .I 9t `~ ~~y'+ F =!!!3 s I
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67~d"r~ded b~~ R R~u,i9~ ~ ,~ )n in U.S GARETE NSU PTiONz Ci U~L AHD POTENTIAL ACT a t . , ~ PoNntini'R 6001 SOSIRCSs The Tobacco Situa on. published'!lottth2y Sy Tbe U. 8. Dapar nt of Agriculture, June 1974. 197t- "e qo an.... J
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rOU I H i Rl 2lOAL t7N2T {tOLVlsE 1971 -- 1977 ¢a?t 1-tr~t t ~ ~ ~P s l '1971 1972 1973 ' 1974 1975 538 554 : 577 592 600 s ~ ~ s ' G y.~ +2.f i3.t +a. +2.8 +1.2 ••ndjusted for trading day ditlersnaes. %'Y1G8 6L00S 540.0 520.0 1976 1977 605 613 +0.9 +1,0 t I
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MIVy*.tY Yt.YI 7/27-7/29 meeting. I INYLi7LNCING FACTORS APFECSING Ny TM ISSUE I• Leoecy of srroking and Health Cantroversy. -- Puritanical. 9eliefs Against Pleasure Products. -- Ontavorable Health Connotations Against Smokinq ('Coffin Nails"), ~§ xI. Genernl Pub7ic Aov.lo a 9tronq Interest and 8elief 't~5 n ern <Tnce and Nodsrn cine. - High Reqaxd. for The Power of Science to Manage Lifs. -- Righ Expectation for Medical Scienca to lSanage Health. - Growinq Public/Mass Media Concerns for Health. - Inability of Medical ecience to lind Cures for Many Health Problems. ,NEW%. III. Hedical Science Concludes Saakino "Bad Por Your Raalth.' -= !_nqs Based on Statistical Associations. --s~Opinion Leaders accept/sadnrs./4iasaminata find3n9s, . ~ Hass Media Yroaotes as Newst Stimulates Government j vqlvemeat. ing Tssues aeccrae Tnternationalizad. unteer •ttealth" Associations and Consumer Activist iups Join the Anti-Smoking Cause. ratte Industry Unable to Ef£sctively Counteract. sr Industries Fail to Object to Staps Against. ~iaokinq and Smokers (e.g., airlines/natworks), -,,,~iducational.' Prograps Against Smoking Lsplemeated. -- Anti-Smoking Programs,Supplemented With Anti-Staoker Programs. -- ]uiti-Smoker Effort Eecomas Highly Politicalizad, -- ?.nti-Smokar Effort Manipulated into a"Righta• Cause (i.e., rights of non-smoker). -- Marketing Pradticea of Zndustry are Restricted. C~6'VlHBd) «~- a~ , q q ons. V. Nw~s~• averncunt Rnti-Smokin Cr aaizations and Cron a ~Z`~oven~msata~t str ct ona an ~t - mo g roarams ~, -- Inl.tiated No New Scientific Researc.k Prior to ~ ' aEiidorssmont. ---Fi,ads Anti-S noking Drives Pro rams/Ot anizati IV. Ceatral Governnent Endorses Medical Science Conclusions. :a-~ - ~17pqFiticaL Acceptance of 6tatistical Associations.
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AH IltTRf>aUCTOAY STATENEHT Piqe I of 2 ~ U-sr- Revised aftar r• HEALT}t tSSUE AS RElATE6 TO TNE 3b'CTAC ACLEPTABTLiTY ISSUE =M S7dOKIHG 7/27-7/29 i'r i M nq. Mett • Conventionai uisdom fn the U. S. tobecco coransnity says that the 'social acceptabflitrj" issue has arisen because other Issues of anti-smoking forces have faited to curb cigarette consumption. hsore specifically, failings af the so- called 'Malth'issues are cited as the reasons for a nex and auch stronger anti- .4sa,aking thrvst based on social acceptability. 4)mI disagree. ~ don't beTieve 3 jr*'cesxnt for the j is viexed.as that the social acceptability Issue is being forced as a health issue. Quits the contrary. I think social accepts- a logical foilowup to an assumed victory 5,hich ts being •CWl4ed on the health issue~. 4nti-sanking forces feel they have achieved this WeAry and are now,je3dy tc make aNilowup effort. far as the tobacco coamunity is concerned there has bten no•such 'hebltti R .~ A t~ 6elteva• that the health indictyaents of snokfng are unproven. ~ vlctary' The indus ~ ~sc,x- act. rerdir i the °health° issue. iidustry feels~that ssore r~esearch Is needed before there xill be enough facts To +x antfBMking forces are saying that aore health research is not 61~b1~' 1 W&d. Instead, kt}s"Pey xant to see is more mcney being spent to spread the knowledge have already ;;&Qished about the"health"hasards and dangers of sanking: '~ feel that the9~fPki~ their health victory in hand. They see everyone of our s~~nn eEsrrette pacicaqassba ing the iabel'Narning, the Surgeon General has determined -1r9-- th°!,'s cigarette snol'C{h'g"ts dangerous to your health.' I believe they noa feel :~iaa Is right'~'-`o•leek a broader • warning, xhich would ultimately include ~nsa such as this: "The Surge.on General has deteneined that cigarette smoking t3"Ret? •daegerous'to your healt5 and tarthe health of non-sa+okers.", . ~__,,,~WI read the opinion surveys, i believe that mre and nore of the American tends to agree with the anti-smoking forces• (Revised) =3- I
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-3- rnro than =8SO,o00 in contracts in 197S from the National Cancer ® 'Institute's Swoking and Health Prograa. `.t conducts anti-smoking clinics to detsrmine an etfactive matbod of smoking withdrawal. Tt publishes a quarterly r.ewsletter. ziaenced entirely by voluntary contributions from ths public, priaoipally during the Heart Yund campaign ia Yebruary, AHA has as ~ts purpaset •To support research, education and cosvsunity service a programs vith the objective of reduoing death and disability from ,mrbeart and blood vessel diseasas.' U24 The association publishes anti-smoking ccavaerciula for radio m"4ad television on a tiae••contributed basis and gives away pamphlets _3ud posters. Xt supports some smoking and health research; last ~nown figure?sus i60,OC0 in 1970. Overall, heart disease research 'V~s said to acc'00tt for about 284 of ARA's budget. 4'-'~s~ ~" se~s • • • ALA - AHERICIl1 3+iliiG AsSOCSAT_OH :z~c~sA ~ m- Hationalquartersa 1740 Sroadway, Naw York, NY 100191 has 60 cOp _ tuente, 130 branch constituents and 134 affiliates. ~= The maicesmsua~rcce of revenae i the Christmas Seal Campaign. ~nly aboat 31 0t its annua3l income is spent to support research. asb'~s ~_~ emely act.ive on the non-anoker issue. RLA is nao'r""T"nqVsverri s othar anti-smoking groups, G71SP, XSCX, Association ;or Non-Smok~ghts and National Interagency Council for Smoking and Realth, ir efforts to ban sawking in public places. . A recan rtising agency proposal to ALA recoaunended that AHA - AHERIC)kN HEAR7 ASSQCIATIONNational Headquarters: 7320 Creanville Rvanue, Dallas, Texas 752311 ArUx has 56 affiliate offices, 8 regional offices and chapters I n alnwst every major city in the U.S. a.ising. ~~ ALA publd¢hes anti-smoking pamphlets and posters and sponsors .:...atop-smoking cVnics. It supports a minor amount of snaking and • a~ealth resea=W_~An example is a study funded by its Haseachusetts onstitu.nt at Harvard Uni.versity on passave sawking. The study found that there was no evidence to back up the contention that noking affected non-smokers. The research is continuing at Nar- ~ard but atA has dropped its support. It frequently issues to ' local nevspapers smoking 'newa• releases, written by the national "taff but using local "spokesmen.' Recently it has actively ebal•- ~ g V ~~enged TI spokeswen in local appearances. 0 ~ e .4 (OveY) ay use tAe vijWy ive smoking" issue as the main thrust for fund
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~ . • . . . , • ' . Pfkse (Y - Ind v.id ,et; Aftd JiMyn Ink •i,4 Forcc or Encourage Individuals to d1S.tC.T}liLr g4h".C , As stronger opiqions are formed, efforts are aiade to have society formlly sanction or sup?ress specific types of behavior. '(hese sanctions or suppressions • e the form of laws and/or reguiations that encourage individuals to alter their avior. The laws or regulations can be promulgated at various leveis of govern- "t. The sanctions and suooresslons can take a varletYof foras'(bannine, taxation. 0 gs,-y4•stdy}, The sanctions and suppressions not only alter behavior, they also can nge and intensify the beUiefs, attitudes and•intentions held by wide segaents a,psoclety. Thust'Stage tY regenerates 5tages 1, Ii,'and II1:
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. 1971. '1977 r 11DVANCED/STRONGER F•OPD18 OP ANTI-Sl90XING ACtIVITIES PROPJ9ED OR ENACTED AS LAWS - SVFK;EON QENERAWS NEALTN WAHNINC AND BR]IND'S TAR AND 17ICOTINE NUMBERS REq02RED IN ALL MEDIA ADVERTISINQ. - HEAVY A1iTI-CICAStET"'.S PVBLICITY LESSENS IN F.ARLY 70 4s AND THEN PICTS. pY xGAIN.. g3._. AND YROHGTSD. • I VV. • ~a • , ~~1 Nitt~eR or SMOKING CESSATION CLINICS .~ - CIVIL AERONAUTICS 80ARD ORDERS CO?4SERCIAL &ALINER3 TO SEPARATE SMOIZ°S AND NON••S!lOKERS. ~: . -~~ ONE 0F FIPTY STATES PASS LAWS HA2itPING -§tMIHQ 7CN SELECTSJI PLACES REGULIITION 0F SdLB OF CIGEBSTTES UNDER . DRUG ADMIpISTRATIGN (REGALhTES YROPRIETARY . N O N N a y I F_. -20- V kD 1> ~ ~ W w•.......~ - -
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NOOtL PRRSB 2•• $KLIEPS. ki'r3411bE8 ANO OPINZOR3 CN]INGL AT?ITl1DFS TOWRRb SM07CINC AND RF.ALTR ~tahss q.) •196 . Pzaquanlffy causes disease and deaths 2 4 Smok.R s 501• ~ Total~~yakers 8 nan-sawkars) 50% 1966 1970 1975 72t• 796 82t 0214 87+k 90% 59% 65t 71t 66t 76t 821
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® t Rovisod after 7/27-7/29 mcetinq.; DBPINITION 0F TEAHS I~ . ~ 1. Saok#i% U=~ the social overtones of sookinq. Sooial Rcceptsbility, of'smokinet - Refera to the described level of acceptance of cigaxette smoking and smokers by a country's society - including non-smokers as voll as smokers. Yt can be measured by the attitude toward smoking, the nature and extent of people's smoking behavior, types of organised activity for and against smoking, and govern- nentel policy and/or types of goverasent legislation on smoking. Ideally, there could ultiaat.ly also,be developed measures of smflkers' beliefs, attitudes and'opiniona about 2. Basic Working Model - A qualitative and,descriptive frame- .rork ch to assess ths nature and categorise ths extene~f the development of the Social Aceeptability o# Sxolki --f~havior - Can be quantified in e number of aays: -^~---~---~--- TreacfsAaR incidance of amokiaq in the total population and graphicsp percent startiag to arooket percent th ~okingt per capita consumptioao and types of it useniguaMsmoked (e.g., high 'tar' vs. loa 'tar.' Gount=snres .. The response of the industry to the Socis, eptabil.ity of Smoking issue. ~ R°rgwr ~ 4. (Revised) -10- --.-;~,~....,.....
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I eASSC sronxzHC. MOALr. FOR , HEASUF@TNG LEVEIS OF SOC2JlT. ACCEPMIBILIT7 Phase T- aelief'a, , Xttitndes and lntentions Loiinfona) Change and opvas change. These changea can be wasuzed by attitud.~'a opinion research. I"oz any type of behavior to beoose either mqre or leas sociall.y aaceptabla, individuai beliefs, attitudes t
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_,._._..._~ HOOZC rH7~sS z- asLrErs. 1~rrrtynts Nro orTNloes cNllxcs $f . ~ aTTITl10II3 ^ TONAAO M2i0YrNCE ~ 1964 1966 n- wnaa an w ne naas:.M.R1a 4 amo e: -"" Smokers 19• S6t :) . Total jsaokers k-son-saok.rs) 464 49% YY-' Shoald Albu3lev+sr lp aCef to 8wkerfz3w 33% 1970 2975 33i 354 $91 ' 63%
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1 SUQlA0.EIl tOlptTAY TYPC ESZ. T'OTAL UNITS SALES UN1TS (MILLIOH5) (AS1 ASIA (coM'T) Japan - (16) S- South Maraa C Yalaysia - (17) S Phil;vPines S Singapore S Ta1wn S I3and S• strilia S 2>t,l.nd S 7 J~AC~IFI~C ISLAHDS - • C h Paclflc ands ~ Nar Gulnu - 7ruft TerritD r 20) ~A.eriun Saooa - (21) E COl4t~Ulf!'3T ASIA ChlJOCA,iiorch Korea, a ~~ SU9/AREA COnNTRT ! .,_r._.._.... TYfL EST. TOTAL UNITS SALES UNITSI (MILLIOtlS) . CENTRAL lJSERUA - (22) 306,700 lrrtish Ilondvras S- 162 52,418 Coso Rica S 2,200 10,900 E/ S4Ivador S 2,099 47,700 Guatc+nala S 2,300 3,170 Honduras C I,E16 20,700 Hicaraqua C 1,66i 22,678 Panawa S 30,833 wl~] VEST IlID1ZS - (22) 11246 . Eahaaus - (24) 1 ' 131 earbados S- 190 436 B.rwda - (25) 1 128 Cuba - (26) S- 23,100 90 Dasinican Repu6lr< i 3,010 French Vest IndTej . 200 - (27) 1 13 Matt! C 600 77 Jam.ita - (211Y Leeward - Jlndward C 1.540 238 n. W Iclands Netherlands S- 400 Antilles - (23) I 3.935 Tr[n*dad - Tobago 5- ) 138 3"ti;TBS• ~saa. S+~ >t 500 0 /IORTH AMER1 ttn ad. tates. .~ Hc ~x1uF 55~,§0 619,100 58,koo 45.3DO 73Y'i(oo ttORLONIDE (Tncludinp Il,S.)3,76A,313 40RLDVIDE,(ezcluding U.S.)3,150,213 SoMUERICA - (22) Aryen'~t na 38,200 bl vTau ' F~ II,1a8 Sro#~r 5 ~ 106,700 .~ Ca+sanen 8,500 atihl't S 24,708 ua3~o S 3.780 ~ rreo~Yl'S`Cuiana -(23) 1 :afawv S- Sa2 srrVuay S 9,8xa , S 3,576 S- }09 -A ~ I Iruyut~`~ S- 3,373 ia , S 16,08,8 W 226,688,4 , m r N N
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kODLL PHaSE I - 9EL1Y.F8 ATTZI4DE8 1ND OPINIONS CNhNOE ATTITUDES ?ONARD RECOZRSXOH + ^ #"smoks~ ~~e Tobal~~~Cera i non-smokers) * a~ , Sell1~q ot__oi a~rett'es s?~ovld be stoyeT"oompl.terv: Smokars Total (amokers G tnon-smokers) . CSqarat4APadv+ertisinq should b« etelyr )Cers & ttoa-sieokors) aretta,Lvertisia sbovlQ x t u~r nq e tamaetc' a 1964 1966 1970 1975 12% 14% 261 N.A. 25% 25% 38% N.R. • • 23!' 27t • 4St 40% 333 341 601, 56% ~ 52% 60% ~83~t N.71. 62% 696 89% N.a. • M. A
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BASIC WORKING NOU$L ron . !ffiASUR%N!s LMLS OY SOCIAL ACCBPTAeILITY Phase II - Indiv'iduel Behavior Alters •If changes !.n Yhase I are strong enough, they'will be reflected in behavior. Individuals will alter their behavioite conform with their bsliefs, attitudes, and intent~s abont the social acceptability of certain action~.s~ NIa nwst instances, individual bebaviox alterat.ions . ~ . will tr#a4;vWwasd doing the more socially acceptable things. °'4lare ar.e soaie significanb gronps in Almost every yaoesety wSo feel pressures to Aove against the tides of- -- jav?"-a I ~optabi].ity. . x ~ ;IMP • 
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1 I 2ELQ 6ZOOS 0 tlZ9 6T6?5
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NES! SMOKERS AND QOYI7ERS ~. ~ 76) ~ Among thoso 18 yoars old and older, iaotdonco of quitting has been higher than incidence of now sarokers, quitting rates, which vare high during.the period of tax lncreasos (196&-1970), declined irom 1970 to 1973 and then lncreased duxrinq the recessioa years. SOV1tC8I Enti.mates Dased on U. S. Govezmeent eurveyn. 36-
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Basic Working Hodel . , !"1 id.Idy- 1 for ' Measuring Levels of Social Acceptability For purposes of this exercise, we propose to use the foltowtng nodel to'show measures of the social acceptability of sawking. We believe the model could be ~sed for various types of behavior. Further, we beiieve that the model could be sed In aiost every developed country. b NYYY-YMYr• N _ wY-VYYYYYaNYY~Y MY ~ 4A•# G' •.j^.,.,• . MiN %.~se -l - Beliefs, ttitudes acd Intentfons 0 inions ~OIne '~ £or any type of behavior.to beeaae either mre or, less socialiy acceptabiej. . ivfduai belie ,titudes, and intenttons nust change. These changes can be :uasured by attntude dnd opinion re•search. *A-h~.se II - d khhpv_iQI; }ter ~: If changes4 ~pse I are strong arough, they will be reflected in behavior. ra , lndividaxil~a . th _.._ eir behavior to confonn to their beliefs, attitudes, and 'tntambions t the social acceptability of certain actions. In nost instances, ndividual beha, terations ni11 trend toward•dotng the aore socially acceptable ~tngi. However.~e are some stgnificant groops in almost every society who ~+leel pressures t3~ again'st the ttdes of social acceptability. ; ~Ohase III - Grouos.'-•''~p~t &pp+,A k a a Q h~ ividv s jp gUqp T BtfMVior Ifre and more individuals hold more and nore strong opinions atnot the social % mo 10-~ ceptabittty of a psrticular type of behavior, new groups of bei•ievers coalesce to encoure9e others to alter their bahavior. Addittonaliy, the resources of existthg ovps are redirected to encourage specific behavior alten tions. r
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iaqo a duly 25, 1977 0 j 10. This his lent a•stronq sta+ap of iegitiaacy to individual and group acttons against cigarettes and other products. Persanal likes and dislikes could be translated into •causes.' , 11. Thus, attacks on smoktng could take the form of guerritta actions as keli as foraul proceedings. Attacks on smoking becaise an eawteur sport. ~ ~ 12, Statts and other uatts of goverr.eeat became as receptive to anti-saoking . pressm groups as Congress; in fact, xor•s so beause rost of tbese units of goverra~.•nt lack any strong 'tobecco bloc.' '" 13. This caabinition of more attAckers plus aore points of possible attack has geoaetriaily increased the potential for ~ol,iticallY and le9allr classif ng smoking as socially unacceptabie beharior. Fraa tbis>iGrther step is possible--classifying the saakers as toeially undesirablemamf socially harxfui to themselvas and others. a a 15: It !s tha•'azps+iding crc.•.pt of social 'harm' that iias at thq root of poves to try'aiiMe smoking categorized socially unacceptable. ~: • .. r4~ ~ ~ 8rief Recap of Basic Influencai ~ . • ~ 1. "fPF3try of~Dntravcrsy ~ 2. Growtng~nd .asi-Aedia concern about lkalth. : ~ 3. Strcag ~ y-pubitcized health attacks on tobacco. 10% •4. EniistroeAPWjhe Federal Goverrioeat in the attacks. ~ S. Po1StlcaT£WNtentng of the totiacco contamity,• . ^~ 6. 6roxth of social activtsm {n the U.S. 7. Politialtzation of smoking issues. .' Z"w '~.:1i= I . • . . ' . . . ~ . i . ~ . ~ ~ • ' ®
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seax r SP[RCEPfTAOE iM EACH CAT[6ORY WHO ARc SJNOKERSj r...r....r..•«..._ - y•w .-Y.•. r.N.r•.wi :.:.v...nr ..~ "«: __ • • EELi bLuOS , SOURCEE :1DUL2 USE OP TOSaCCO~- 1975 .AW'V1 • 'L,U#.17k.i'311yhj4b'X.~1~W? '~i7FL:!C:Sa:}.. SZE° 5~5~5
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MODiL PttaS6 I- dELIEiB. A9TI'1M7DE8 AND OPINIONS CHANCE Plea ~_ .., Y s Saoke * 90t 91L ' 78i ~~se~kers A non-amok.rs) Set 55% 518 P09TTYVE ATTTTqDES TOWARD SMOKING A. Na to LYIeX1 ~ ~ 'Smokers 87• e4• 75% ~ 7bta1 (aasokezs i nan-emekera) 65% 6/t• 53% 70% 434
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r ~c, SUO/MEA COUHTRY TYPE' UHITS WESTERN EUROPE Austria S Arores S- Birlglun - Luxuebourg S Ca+ary Islands S nwark g Finland ;.sliptwo 3 OaraAnY, West OS'La4u ~~ a~aY H.~erlands Y uyal ~ Swtden Swttzorla~ ~ iW~ShJNIS7 EUROPE 1`DSnla 2~7x-- 1ulgaria &41 ~~dtQos too~ "'~'"nany, East T4snpary rqd+nd Is .,T-S.R. ~ Y-~ay~qlavla ~ H1~IIQL.E EAST ~-~-~ cs~.. 8~t57n, Kuwalt, Unlte'd ie.~Emiratas - (2}~3'+.~ 7¢~prvs S- i~ S {., ,y t EST.. TOTAL SUB/AREA E-0U/ITRY TYPE SALES UNtTS UNITS (HitLtOHS) AFRICA Atars - Issas - (11) I 13,400 Algeria S- 423 Angola - (5) S- z8,900 Caaeroon - (6) 5- 17,ow Conpo - Brazzavlll• S- 7,100 8,000 0alar.oy (8E11tN) Egypt 5- 82.100 Ethiopfa S- 123,800 IB,goo Gobon - Gaabla - (9) / 335 . 6hana - (to) S- 7,901 Ivory Coast 5- 88,700 Kenya C 454 Libarla - (il) S- 22,700 Llbya S 1,600 Nalagasy Republic S- 12,043 Halawl - (12) S- 58,100 Haurijlu7 S- 1F,700• Morocco S 1.5,500 HozanbtQae S , Rigeria S sa a~0 R?wdes/a s- ' Senagal 5- Sierra Leone C South Africa s- 5,700 Sudan S 13'r68o Tanzanla S- 22',200 Togo 5- 26,000 Tunisia S- 24,500 Uganda S- 65,025 Nest Afriu S- 30,000 Zaire S- i19,532 2ambra 5- 41 000 ` 33 ~". SOUTNERN ASIA Afgh.nlstan I 6,692 Bangladesh - (13) 5- 1,520 Ceylon 6 17,700 India C 7,000 Hepat S- 5,600 Pakistan S I,540 3.800 2,900 EAST ASIA ~,495 Burma - (14) 5- S~, Cambodia 5- , Hong Kong - (15) S Indonesla S I ES7. TOTAL SALES UNITS (MILLIONS) 647 8,200 2,550 1,100 730 1,350 23.736 1,550. 354 2,470 2,952 31456 3k5 4,219 1,250 1.515 680 8,200 7.761 11,330 +~,200 i,as5 1,173 23,634' 1,615 1,464 377 4,800 1,700 122 5,225 I 300 Ni;5`oN. 131 10,000 ;,340 60,100 1,200 ~ 2,000 4,400 71648 53,800 , r
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YHAS_E ZY ~ YNDIYZJt1NL BEBAVZOR ALTERB MXASORED BY.rlcEtips ItP: T. Zncidanco of Cigarette 8makiag Yn Population Y2. Percent Starting to Saaks .. xZI. percent: (ne.itting .~~Nambar of Cigarsttea 8moked Per pay , ar" V.q ~s of CiqaretL. &mok.d &I f'qh 'tar' va. low 'tar') ~ . •
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9 r 2965 - 197C - XNTZ-SHOKINO ORCAN7EATI0N8 t'ORNBD GOVERt7SLNT SuRVLILLANCE INCREASED JL4D LANS PASBED. - t7ATI0NAL I?iTF.RAGENCY•COUNCIL ON SMO)CIIQ6 AND HLALIB FoR1= ax U. S. GovsRNHxdT. ~ PEDERAL CIGARETTE LA88LINfiJ1ND ADV$&TISING ACT PRSM. O,Oy1'C ANNCWNCES MONITORINO ACTIONS ODt. CIQAkETTE VSRS''ISINd aND PRODlOTION. }~EClIObY ON SMOKINQ AND BEaLT& (7lSH) FOtlNDED IA U. r,~•~•--- . 'ATE TxX71TI0N OY CIGARETTFS SICNIFICANTLY T2lMtEASED. ~/ ""' F~~al~ I11•9~ A,i. WaC.M f/ G"G. t'AK ti^1 ~~ aM I8NES5 DOCTItINS IM?LENENTED (i.n.t FREE rtI TSME R aI1TI-CIGARLTTE C06tM8ACIAT.8) . kr vA W7rc.%R3Trs CoMrnNles voLVNTEx TO wITxaanw PROM Tv. aa~;.m . ~r~ ~r r or :A 0 9 l'•~.. ......... .. ~..~..~.tiT _ S. r
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Economic diary/Jan. 25-Jan. 29~~ January 25 A 'sure-fire' forecast for stocks at yearend The more than 100 mitlion peopte who were glued to their iv sets yesterday watching the San Francisco 49ers hold ad the late charge of the Gncinnati Bengals may have been viewing more than just Super Bowt XVI: They wore watching a batuo over which way the stock market would be heading during 1982. At IeaSt that is the 5nding of Robert Stovall, senior vice-president of Dean Witter Reynolds. Stovall has de- veloped what ho catts the "Super Bowl Predictor," and it is saying that the San Francisco victory means the stock rnar- ket will close out 1982 higher than it ended 1981. , In the 15 years since the first Super Bowt was played, whenever the victor was a National Football Conference team--or an old Nrl team now in the American Football Conference, such as Pittsburgh or BalTlmore-the stock market as measured by the Standard & Poor's 500 went up. This occurrod nine times. In 5ve ol the other six years that an original AR team won, the stock !.^.arket ended the year tower. (The only exception: 1970 when Kansas City, an original Att team, won and the market rose-but only by 0.14A.) This year, since San Francisco is an ex-NFL team, stoc`:s should move higher again. Stovatl readily concedes that "there is no mtional explanation" for the con- necycn between tootball and the stock market. But he notes that being right 14 out of 15 times Is a track record that any analyst would envy. January 26 Hidden costs of keeping cigarette taxes down President Reagan's decision not to raise excise taxes on cigarettes has disappointed some ecdnomists--but not because an increase in the tax would add to govwnment revenues and thus help trim the budget deficit "rhe irony," says economist Kenneth Warner of the University of Michigan Scfioot of Public Health, "is that dou- bling the current excise tax of Sc per pack would have a substantial tongrun beneficial impaC, on both government expenditures and worker productivity." The reason is the impact of smrking an health. Economists calculate that about 6% of total personal hearih ex- penditures are caused by smoking-ro- iated iNnes.ses, and the federal govern- ment piclcs up nearly 30% of this bill. Warner eatimates that smoking cost the nation about $40 billion in 1980, of which some $12 billion went directly for medical expenses and S28 L511ion rep- resented productivity losses caused by worker illness and mortality. Raising the tax on cigarettes-and thus the pdce-could have a significant Icng-run effect on such costs because the demand (or cigarettes among teen- agers and young adults is very sensi• t'rve to price changes. Indeed, a recent study by eamomists Eugene M, Lewit Cougias Coate, and Michaei Grossman of the National Bureau of Ecor,omic Research suggests that a doubling of the excise tax would reduce the num- ber of teenage, smokers by about 15%-parl!y try inducing some to quit but mainly by discouraging many fmrn starting to smoke in the first place. Since smoking habits are acquired early in life, the effects on smoking --and health•-tautd be expected to last Moreover, because most dga- rettes are sold to adults whose smok- ing demand is not very sensitive to price, the impact on cigarette industy sales would be small over the short run. "But the long-run payo8 in terms of less suffering, iower medical expen- drtures, and higher productivity would be cumulative," Warner says. Warner notes that the federal excise tax on cigarettes has not been raised I Fetta by e.n. Knw for some 30 years, which means that its real value has declined by more than two-thirds. And while he calcu- lates that doubling the excise tax would cost the average smoker abouC Saa a year, he observes that "the average nonamoking fanVty of four Is currently paying about $150 a year in taxes and insurance premiums to subsidlze the medical casts incurred by smokers." January 27 Arms for the poor. E=orts' silver iining While world trade fell last year in nemi- nat dollar tarms for the first time in decades, one product group seems to be thriving: weaponry. Armaments shipments continue to climb. pardriar ly to developing courttries. The Soviet Union exported scme $6.2 billion wor±ti of w^rs to daveioping countr.es in 1981, according to the centrally planned economies unit of Wharton Econometric Forecasting As- sociates. That representa a jump of 10% from 1980 as ti about 52.5°.6 of all Sov et exports to developing countries. (NOreova,r, since atmft 154.~ af those sales were for hard currency, they were a big factor in offsetting Russia's im- ports from the West. As for the U. S., even though arms exports constitute only about 5% of total exports, America still produces a bigger share of the Third Wond's weap- ons than the Soviet Union does. Third World countries, inctuding Israel, or- dered close to $9 billion worth of mili- tary equipment from U. S. companies through the Pentagon's foreign mirrtary sales program 1n fucal 1980, according to Wiitiam Hartung of the CounCl on Economic Priorities, a New York-based research organization. He says the trend is accelerating. U. S. embassy and military personnel are now permit- ted to promote arms sales overseas, and U, S. companies canbesign weap-, ons solely for export Hanung notes. January 28 A new way to test the leading indicators News that the governments index of leading indicators moved up in faecem- ' ber for the first time fn six months Contittued on page 30 J i 26 9USNESS'NEEG Fetnisuy 15. 19a2 ECONCM)c pIARY
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SHITC1lI4IG 7d IAw-TAIt CIC.Hn6'TTPS During the six-year period inmediatoly tollowina•tho Surgeon Gcneral's report, incidcnce of low-tar cigarette setoY.ing re- mat.ned relatively stable. Since 1974, there has be*n a draaatic growth in 1ow-tar cigarette smking, and the low-tar category has tripled its share of market. Low Tar Share of Harket Year 50M 1 964 LJ • 1965 4.3 1966 5.2 1967 . 3.1 1968 5.0 1969 5:1 1970 4.3 1971 5.7 1972 7.4 ]973 8.5 1974 9.6 ' 1975. 10.9 1976 15.9 -35- t
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lfODEL PHA.4E III •^ GROUPS FORHBD OR E£POR1'S OF EXISTING QROUPS REDIRECfED TO EHCOURAGE OT7tER INDIVIDUALS TO ALTER TNEIR bEftAVIOR : R7PES OP GROUPSx• I. Governawutal II. Consumer Activist Groups IIS. Hadiaa]I xssoci.ations (Re]iqioas,Afliliations and Cessation Clinics) f _3g..
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\ ` lMEL PHASE I» 1tEL2LP8 J11T39'ODES At1C OPINIOHB CHANa AkrAB OP ATTITUUE NEAStlREl4ENTS TOWARD CIG.tRETTE SlSOKTHG* Y. 9iwkinj and Hiealth: - xarmxul to health. . Frequently causes di,sease and death. - Selling of cigirettes should be stopped coapletely. - Cigarette advertising should be stopped coiapletely. • Cigarette advertising ahould c^try a health warning atatemient. • xI2. 11n 7uyiovanca: ying to be near people Wso .moke. ld allow fewer places to aaake. IV. Posi§t'~wr•Exttitudos Toward Saokingn *SourceZult Use of Tobacco. •Sased on a national• prP bnfty sampa oi smokers' (and non-sa,okers!) . gR~~itndes and opinions toward cigarette saaking, uKvey conducted by tl. 8: pepartroent of Reaith; -4 aucation and Welfare in collaboration with aslti•e National Cancer Znstitute. 1964, 19660 1970 and 1975. -26-
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' Lmaw Cano. ALE. STREET JOlliff ® U# D„+ 1,.., rf C..p.r. Lr.,trl RId.. t ITl,g a l.aU•7 e _ l. 'ompanies Fight Bael WE:DNFSDAY l,gairl,t-=Oiciaring Cost-T,.. )f Medical Coverage.,.`: : f. .. veapons - Include Execcise, Two Opinions on Surg.ety .; And a Crackdown on Fecs . > ,~ ord Plans HMO of Its Own By JOANV S. f,tJBLIN rrG)/ lfepmfrr nf T717.'A'ALLSTIIY,Y.T JneIINAI. YEEVAH. Wis.-About 20 flabby men :d women huff and puf( around an Indoor ick at KlmberlyClark Corp.'s headquar• rs here. They jog along four running lanes a spmwling, brightly painted exerciso •ilding. Backed up by an oxygen tank,.a. nurses keeps a watchful eye on the ged runners. 1. employes are runhing (or their llves. -evious illness; high btood pressure or ex• :ss weight makes them prone to heart a,t• .cks. "This place was designed for me. I'm mmng three miles every day." boasts one qger SteverrSatnu:-x-39year~oltt;esean::r ::entist who had open•heart surgery last :mmer. "Instead oLsaying goodbye at 48, 1 iay say goodbye at 68. It's a good deal all round-for me and for the company." The supervised exercise program is part i Kimberly~lark's new, $2.5 million health• :reening and fitness center. The diversified. :anu(ac:urer of paper products hopes for a ,ng•term payoff: a slower rise in the insur• ice premiums It pays for employe health snefits. :xperlencc Carries Weight The hope Is based on the fact that an in• ~rer's premium charges for an employe' roup depend partly on the amount'the'Im ~rer had to pay out for the group's medical xpenses in the past. Such: premiums cost • :ImberlyCark $14.3 million in 1 f ~, 75%. lore than in 1973, to cover 15.000 employes. Kimberly-Clark's costlier health benefits " medical expenses generally, which oting up twice as fast as the con• .,,ier price index. It wasn't so long ago 1at;employers viewed health Insurance as .n Inexpensive fringe benefit that could be. ubstltuted.for pay increases. That isn't the .ase any more. For Ford Kotor Co., for a~x• .•nple, it is the most expensive fringe bene• cosung the company an estimated $520 :lon this year and s6oo million next yea.r. : °:~ =- e~ }tAY 10, 1D78 I AL. hoc.,n.. h.. ln+. ^_SCF:`'r3. ~eeking a Cure Companies Fight Back Agair~ ~oaring Cost Of Mediral Coverage Weaporu Ine!uf!e F.xerciu. Two Opininnc on Sluxery And a Crukdown on Fees Ford P!ans fiMCJ of (ts Own er .....~...-......,._. _.._......:.._ ............. . up from $•I50 million In 1977 despite no In• '; crease In coverage. ' Altogether. U.S. businesses paid 25'Ib nf the nation's SI61 billion he.alth bill last ycar• ' High Priority From GM b ~-, ~., ~ 6. N w ~ spending atwut Lc0 ltlion that was rndl• But such gtans as General Motors Corp., rectly paid by consumers. Many companies' premiums have'?Itsu• Ford• Deere & Co. and Goodyear Tlre & Rubber Co., often working together wltS bled in the past five years: these costs noav '' t'' r'orit '. g the problem top p' J' are so high that many firms, not Just.Kim..'. unions. :re ~vin berlyClark• are trying to do somethTng •A recent survey by the President's Counc'.) about them, says Wlllis B. Goldbeck, dit'f.c• on Wage and Price Stability descr:bed 1:S tor of the Washington Business Groupi.onmedical•cost•control programsorganlzed°by Health• an organlzadon of 155 maJor-temployers or unions, half of them set up employers. sinc:•I9i?: T!u.ussions havo atJ^ssta double A Variety of Tactics Some companies arc helping employe5.to stay healthy through medical screening and on•the•Job exercise regimens. Many emptoy ers. in conjoa..:.btrwith insurers, are reqtiir• ing 'a second opinion before surgery or are cracking down on what they consider exces• sive doctor fees and unnecessary hospital stays. A few are even using corporate mus• cle to block controversial hospital expansion and construction. And there is lncreased business interest in health maintenance or• ganizations, or HMOs. prepaid group•prac• tice plans that emphasize preventive and outpatient care over hospitalization. How much success concerns are having with all this is open to debate. "I don't see employers having the impact they could if they really wanted to make their purchasing power felt•" argues Douglas R Brown, asso- stake: When companies' medlcal cosu rlse,.•. •j the-uiills-have't~3J onh.ucry iNr'MagC• @`' j creases: al.so. union members' monthly con• jtributtons for medical coverage may..tise right along with the companies' premiums. There is. Indeed, a push to have em• ylayea Yay cw;.: sre a(torp..-_te tt.:.•' icai bills, Continental Illinois National Banit &.Trust•Ca ot•Chlcago has•more than':dou-'. ..bleti-ita•8,000 employes' •tnonthly .contrtbu•• tions from S2.40 in 1975 to $5.41 at present, to Lrover . a portton of Continental's prem'um Ia: ~ creases. And auto• Workers must help pay i for recently won health benefits. such. ss dental coverage, vision care and drltys; there was a time when the auto companfes paid for everything. : Otr the other hand, one way to try to ketp pretnittms down is to oHei emptoyzibes a_dSs•_ co`uaCt R lfieCr~eatt~~ ~tx tbatstrioas healthy and !n shape. Mobil in for kee g p .clate_professor_tn_the_health_program_at-.. Cotp•'s 27,00o U.S. employes are divided lnto Cornell University's graduate school of busi• r~ ^~^*~aJ~d.t~-"-`" w-aTaedanca ness and public administration. Some com• -• panies, he observeso are "overwhelmed by the complexity of the problem" and frus- bonus. In 15rt, the progrartt's flrst year. ido- trated by the lack of simple panaceas• , bil handed out SL4 mllDon_to 35,800d an Continental Air Lines Just throws up :its ~xPtp°se' YLrn to Page zx L'otiimR f.: hands• "fn my Judgment, there's nothing more that Continental Air f.fnes can •do other-than'ask;our'peopl€ to be more ts• creet In how they spend their health dol• tars•" asseru John Woodlock• vice president
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TRE SNXSxzaa & nEALTH COtiTROV^ASY SN THE U.S. - rilteen Header's Diqeat articles published ' which C9amn sxwking. - Smoking and health stndies by noted medicaal a~ doctors and scientists publioiaedy noting ~ r death rate of smokers and cigarette. O'r+aoking causing cancer. A V. a .~ : =FSo W »ajor U. s. cigazette caapanies start' ~ azOta~z derby'•advertising and claim •saler• I X. 1951-I959s The Beainnina. +rltrhEration. Sam »~. S. preaident is requested by rmericatt Canrer ~-~ty and other fund raising groups to havs ission study tobacco and health questions. 1960-19b4,w Publicity Against Cigeratte 9mokina zntehiified, - Ita~yaL College of PLvaioiana "Smoking and FiealtA" Report publicized in U. S., stating that cigarette saoking is, the cause of lung cancer and bronchitis and probably contributes to the development of • corGnary }leai't diteasee.
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COtIERNMENTaL CAOUP9 Federal Tradle Comaissioni 9vreau of Consamer Protection - In early 2960's,emphasis directed to saaoking and health oontroversy. - In 1965, attempt*d trade regulation of oigarett. advertising - courts ruled it vas fanisdiction of Congress. ishes annual report to C4ngress on smoking wla~ mendations. "heslth xith legislative reeom ~ 2. Nati~AWClearinaboase 3"or Sasokinc and Health: ~ -vA*tablished In 1965 by Secretary of NEN. lates and distributes info on the bealth aqaences of smoking to CQngress with f Anti-smoking propaganda arn+ of covernment. 3. Peder~T~ plovees roe'Non-8sakers, Rights$ - Pormed In 1976 by Agency for•Individual Development. - Balps enforce guidelines for amoking In public places in the•State pepartment. P ~ H f °~ ~ jttJ77JJJ ~D r ..39.. }j I
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.rv. oontinnact I (Appondxx) Revisad d/5/77 - tncraased nwaber af saaking Cessation Clinics formad and proaoted: - Inczaased goverrimental sczutiny of additives in tobacco and damaging substances . in s+vrkplace environmant such as sowk4 (Lnvironmental Protection A9encyl ., Proposed requlat3on of sali of cigarettes under Yederal Drug AdMintrtration (regulates proprietary drugs) . #r"T~ghesti anti-smoking ordiaance so far xas in privately owned comaercial buildings d nacted in eorkeley, California. St bans fi&ft11 as public or goverruiental buildings and oes a $50 fine for failure to post 'No Baaking" ns. dnly bers, tobacco shops and restaurants 25 of the 50 largest businesses in the state lled by a committee of the House altsr approxi- ate-passed restrictive amoking bill in California . (Revised) «5
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iI. continued • V, S. 5urgeon Ganeral.issuss rehort saying cigarette amoking is causally related to lung cancer, chronic bronchitis, other diseasesi statas smoking is considered health hasard ot sutticie:nt importanoe .., to warrant remtdisl actioru: (V. B. cigarette sales deolins sharply in 1964 when this is announced.) - Amexican Medical Association endorses 'cigaretta smokiag" as a serious tialth hazard. ltead'errs Digast articles appear follovwd avy pross publicity throughout the countxy. sap.rob7.eia, and to promote actions to reduce it. ~ - Tedexal cigaretta i.abeling and Advertising Rct cduCtiom, and youth agencies uhose purpose ia to 900ox¢ase public awareness of the amoking anil health passedi requires following statemant on all cigarette • ;~ ev% paekaqesr Cautions Cigarette Smoking May Be Rasardous Tb Your HaaJ.th. i~== ~ Itnti-Smokina orqanisations Formedt Incraased 2Y: 1965-N~19 4;Emd~,-- -'- CoverMTlsts Surveillanoe of Cigarette sndustry and its ` '_ ~ ~ a.°°,. tiv€~~T and Laws Restraining the Marketing of ~ ~C`i'yarst~iecs paased. -%Wonal znteragenoy Councii on Smoking and }lealth ;aad- voluntary oxganisaticn of national health, ..x_ t
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Y HSA4TN AND PffDICAI. A68OCIhTIONS (professxonal and ohariLable) 1. American Cancer Societys - 3,000 local units. - Aim is to "eliminate cigarette smoking entirely." - publishes anti-unoking materials for public use. - Yroduc:es: public service anti-smoking radio/TY ooaur,eroials. - Reportedly spends 291 of income on cancer reeearch. 2. Jurerican Health Foundation, Ino. t - Non-profit and tax-exempt. •- Ravenue source is from Pederal grants. • -o;DOea research in smoking and health for itCl. . -~ conducts anti-smoking clinics to• deterA,,ine ,~ o~t3fec'ive withdrawal. n 3. 7uoezerArt 7lssociation: ced by voluntary contributioas troa public. s-'°°x'~ -&Tports some smoking and health research. _. ... 'F- lish ti-smokia comaercials for radio/2V ub es an 6a s94•a 4.' ]Uia~ Lvn~xssociation: n source of revenue is christmas 3^A1 Campaign. - _tJ'`ramely active on non-saaker issue. « Pushes for bans on smoking in public plaoes. h lishea anti-smoking pamp lata/postsra. ,r~• - eponsors stop-smoking clinics. ~~ 3. anwrican Publir• Health ksaaoiationr - Professional organization of health related people. - Publishes anti-siqokinq materials. - Promotee stop-smoking clinics.' -41- • g . fl
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© , IYI. eontinued 0 the P9'C 1~ct. Federa]. Trade ooaa+issicn announca-V It Will aonitor ciqaretto advertising and promotion closely and take all apprvpriate action consistent vith Y.abeLing Act to prohibit advertising that violates Hational clearinghouse for Smoking and Health is established in the Poblio fieaith Seryice'to collect, organise, and dissaminata inforaation on noking and healthr provide encouragement and support for ,~state and loca], edueational activitiest and conduet• azeh into the behavioxal•natura of the meoRing - lnal Task Force on Ernphyyema and Chronio 9ronehitis _avrsends ceasation of smoking by parsats and icians as an exataplo to their children. a . • n on S>aokinq and Nealth (aSH) founded - a siational action organization deaignsd to take effective . n aqainat problems caused by smokingi sponsored leading physicians, scientists, lawyers and• eda~tora. increase their cigarette taxas - siqnificantly au-~:xa, ' Fifteen sts.tes accounting for 40% of population , impacting on sales. -3- I
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CONSt1MLR ACTTVIST GROUPS U 1. Action on E'moking and fiealth.(ASH): - rounded in 1967 bp John F. gar•zaf, III. Zsq. - Non-profit,.oharttable organization. - Concerned solal with problem of asioking. - Represents non-smoker through legal action, from tobacco smoks. 2. Oroup Aa_ainst Smokers' Polution (CASP): ~ 32 chapters in U. S. - Sovironmontal aotion group. , - Concerned with problem of indoor air polution. 3. Societ to Xnruiliate,Aqgravate. Mortify and Embarrass S in 1976. - ~H~ls,tant group ot anti-smokers. -~NO-w"~ i6spcaad but occaseionally 4heir actions, :~qt publicity. 4aal~~searoh Gronp: ,~g~ph, Nader organization. °;5VM at ssionals f lth l d h z e ea pro 0, bcto axyer; an s iis in areas of consuaier health ind safety. • - Assooiation for nonsmokers' rights (utSR) - Hinaesata, - Citizena Against Public Smoking (CAP3) - Hassachusetts. , - Clean Air Now (CAN) - Rhode'Island. • - Frash Air 1'or Nonsmokers (10hNS) - Hassaohusetts. •. 5. Han cal xou~a a ,•--- ~r1~k ace of Nonsaakers {ANS) - Chicago. ~ght hours before flights. : - g976, petitioned FAA to ban s+wking in pauaorcial airline cockpits ana by crew members - tionamokfng Hiami. Single Campers, -40-
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publicity. 8urgeoti Cenersl inerease the barrage of anti-smoking 8ederal Communications qomaiisaion rules that broad- oastora who carry cigarette oommercials must provide time for messages on the harmful effects of eiqarette smoking (Pairness• Dootrine),. e~} cit.izen action against cigarette smoking.• eiomaend proqrame of•research, edocation, and pubiio - over $00 delegactea froa 34 countries attend fir•st Norld Conferetice on 8moking and Health in New York _City •to compare•experienees and to exchange ideas, xeport on new medical and scientifio findings, and to eral Txade Ccaaaission'rules tar and nicotine can be ~ ='VMersd Sn advertising and publishes levels for, most s=i'-v O11 brands. ~garett:e companies volunteer to withdraw from broad- t advertising and law ia passed bansling cigarette m'.~eroials after 1/1/71. lY. 197r-at-f" zIedvaricet and &tronger Porms of aequlations Droposed or Esiact.ed Againat Cigarettes. - Surgeon Gbneral proposes government initiative to ban smoking in public places claiming health hazard' SYI, Continued ~ - Coves+uaent officiala, congressmen, scientists, and to nonsmokers. kP
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10 1 EASIC HoRlcztic MonBL •PUR MZX5URING J'.EVBLS OP SOCrNL ACCLPTRBZLZTY :phase TzT -•.c_roups are 8orsed to Encourace Other Individuals to alter Their Bohavior If arore•dnd more individuals hold more and more strong opinions a~Cit the social acceptability o# a particular ~i the resonr~ce.s of exiatina graups are redirected to i~se~c encouragetwsgecific behnvior alteratioas. Y encouraqe"rb&iers to alter their behavior. Additlanally, type of beltaav_ior, new groups of believers coa2eace to af sV49 -3'7- N O t 0 . N : M
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. T,V.• ' continnod - Xncraaaed n<ueber of suwking Coasation Clinios forraed and prozxoted. Increased qovtrnsoant.al scrutiny of additiv.a in tobacco and dassaging oubstances Sn worYcplacw envircnament such as aaoke (Environmeatal Yrot.etion k4e+oY') • Proposed ragnlatiQp g_t_gqls,;ot.cigarettaa under Pedera.l lmrq Adminiatration (regulates propziatary, drugs) ) uqhest snti-woking ordinanco so far W Z f3 bsen instituted in 9erkeley. California. Zt ~ s*okang in pzivately owned comaercial bnildings a 11 as pubiia, or qovernr.ental, baildinqs, and oDammies a SSO fine for failure to post "tio 6Ynokinq" ft4ft , fla.ly bars, tobacco s2eoqs and restaurants are pt• WMV -6- W LD
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. 9'he Federal Govermnent 9 Chronologyyol Zntervention in the 8aoking'and Health Coutroversy 1955a Federal Prade Coa+isiasion (8SC) tells cigarette menu- ~ ~ . a~uiors ra'i~a e no lth inle_-.nces in their adv.rtising, one way or the other. d . . 1957e .Surn eo._n Consral ~8_u~rney says statistics indicate thYt IA ' ex--crtssiva oiy'ae~ a-mokinQ is one bf the causative ~ 1960~ factors in lu.yq cancer. FTCrkl,s cigarette manufacturers'to stap •tar derbf pt flters.~"e to refer to any effects or re- a~ti .11h+ouse is requested by Arerican Cancer Society ~ a"iy%"qWr-Tund-raiainq groups• to have a commission staLdytjLObacco and health questions. xrI,V.M &t, . . OpkMW 196V2~2 ~President•lcenned is asked at a news confer- ki d h lth ~s K ws on :mo ng an ea . ~ e says heAkewsot we}.1 enough informed to state any views. ~ ~ . Jua~.u eon Cenernl ,T~e~rr announces an Itdvisory ~~~.tkee on b~mo-k~'ng and.-FF~ealth wilx be formed. ... . s~`~ . . 196/i January. Sur eon General's A__d~vis.o.~c Coanaittee tssues its reporti ~garett" e smokinq~s causa y rs ated to lung cancer in wa1e2, is one of the arost 3mportant of the causes of chronic bronchitis in the U.S., may contribute to other diseases and ia •a health hazard of sufficient importance. .,to warrant reasedial action". .
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~.. , .~~ .. .. .. «...~.,,~ ..rYr....:r:-:..r~-~ ~ -11- _ r ,,.... . ,. .. ....... ...... Novesbei. a!ob.eco Institnte, intorvoniitg tor first tis. in lk fcderal saroker-transpoetation case, tells G9 there's no basis for its proposed pipe-cigar han. ~ Tho Tobacco Inatitvte 1776 X 6treet, N.W. ~ Naabington, D.C. 20006 Janaar 1977 y, wd ~ ~ >M L... E ~~ ~ Oft s~ 07 r
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Anti-SrookSnq Or9anixations The following gnide Aas b.en assembled by The Tobacco Institute staff from published sources.' Nh.re possi- bie, the-aati-srwking aima of the organisations are quoted from their own public statownts. The list i.s probably incon+aiste, but doeo contain those oryaai- si,tioas whose existen" is known to 2he Tnstitute stat 2 ~ ( f
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E .~ March. CJ.•a. Court of ~paals for D. C. refuses to impose an o:yrgency 6"an`on's-mo7cinq on corsycrcisl air carriers as requested by Ral h Nadar. kpril. Tob.:co Znstituto Announces its %ember companies will henceforth voluntarily'display the package warning in all media sdvertising. July. Senate again votes 71-10 to defeat Senator Moss' Aqricultora lippropriatioas bill amendmsnt to aII•" kill governrasat pr.ogra=ss !ox tobacco. July. PTC votes aot to activate its'Congressionally enbargoTproposal to require a severe health warniaq in cigarette mds:. Insteads the coamission says it will negotiate with each banufacturer to require the packa e xarninq to show in cigarette ads in aL more "olear" an~ apicuous" manner. r. 0. 8: District Court in Hashington rejects a ot six` br~ters to declare unconstitutional arette ad broadcast ban. in a two-to-one decisioa ,Eonrt saids ' ress has the right to prohibit ad- visApaing of cigare s n any media. is r. Znterstate Commerce Commissiois (ICC) orders ear 201 o-f -ests ntars t~ s be set aside er. XCC postpones "indafinitoly" its order to • te airwkers in buses. J Further fragmentary reports appear in newspapers o a fAR and U. S. Public Kealth service joint study on the eTisots oi° tobacco abok6-rn-ai -tr&asport. The SS- page report,says tobacco smoke is "Judgad not to repre- sent a health hazard to the nonsaokinq passengers,• January. 11•l major cigarette advertisers and the M annonnoe agreement on new method to display packaga warning in advertising. , rc
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BUDGET (TEHTATIVE) 39D a. 1290 YEAR OF 1RE HOH-Si-tOKER DLRS DEYELOPILl6 CAI•TPALGr)S,, AGT[DHS• AND- MATERIALS USE OF CONSIIUTANTS HOLDING KORKSHnP NEETIA WITO NATIONAL ' ASSOCIATIONS 60.000 Qu-Nippog sE 4T101JAL ASSOCIAT[ON OH 40 • 00.0 2. iNTERNATIONALASSIV("SmOK1NO ~S$~ I}JAR AN C1+!'(jNU1NG PROG,RAM "•YEA F TRE NON-SN,OKERS" THE WORKSHOP WIL.L. OHLY BE THE FIRST' STEP. AREAS FOR FURTHER DEVELDPMENT EXPECTED', FURTHER CREATIVE CDEAS. INCLUDING CE'GAL FEES•• 80.000 5- RESERVE FOR CO jT'I.b.GF.lIOr . AND AD , (IQL ACT10U, (WE DO NOT 001 14HA1' REQUESTS FOR FURTNER ACTIOaI MAY RESULT FR'Ohl FIEETINGS WITH NA:TIOHAL• ASSOCIATIONS••, OTHER AD HOC ACTIONS MAY BE REQUIRED) 30•000 50.0.0,00 REGARDS. R. CORN~R
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C) SOCIAL COSTS/SOCIAL BENEFITS P4SITIYE ECDt:Di9IC :IiiPACT OF. THE INDU•STRY (E•G: CANADIAN IMPACT STUDY) ESTADLISH TNE CmSTS•OF 1NTRODUCING OR ENFORCING.LEGISLATIOk D) DISCREDI1T[NG TNE ANTIS DEVELOP FOR DISSEISINATGON PROFILES, CONFLLCTING STATEMENTS, EXAPIPLES OF INTOLERANCE, ETC, 3.;1-2,, [D•BIIYAN, IDENTIFICATION OF WHOM TO LOBBY ARD METHODS TO, BE USED.. LOBBYING NOT CONFINED TO, THE POLITICAL ARENA, BUT TO INCLUDE A L L DECI- S10N TAKERS OR OPINION FORMERS ON RESTICICTIVE HEASURES.. IT WILL ALSO NAVE TO INCLUDE LOBBYING OF INT,ERNATGON/MUIITINATIONAL BODIES . AND ITS COQRDINATi0I1• L. 2• 3. A.i'~iFS TOBACCO-FAMILY NON-T08ACC0 FAMILY' SL.IENTISTS/NEAICAL XIDENT'IFY THE wIDEST POSSIBLE LIST OF ALLIES, 41iTH DETAILED REASONS FOR SO DEFINING THEM (E.G. CO[1MflN FEARS, ECONOHIC 1NTEREST, POLITICAL ATTITUDES,• 'ENDANGERED SPE•CIES', CDhiPION: ~ PR•OBL•EMS)• TO ASSIST NATIONAL ASSOC[AT10NS. TO• IDENTIFY NEM POTENT'IAL ALLIES YOT YET DEVELOPED. TH1S WOULD BE FOLLOWED'WITH . Q IDEAS ON BEST APPROACHES FOR RECRUITOI£NT'OF ALLIES AND POSSIBLE ~ PRIORI IE O EE N E TH T M. S ETw 9
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01 November., YC publishes rnsults ot tha first of somi•. annual tests of •tsr•-nteotiae content of U. $. oiga- rettas,,urhich it canduets at the reqasst of Warren lta_ qnuson, chairman of the Senata ComMerce Coen~~i`t-'tee. 1969+ February. PCC proposes to forbid broadcast cigarette advertiainq. • March-.7une. House of Re raaentati~ves eosraittae holds hearings on extenaion o Cf ~igarette Labelinq Act. Yinds "nothing neM• in scientific evidence since 196S hearings. Nay. M reaews 1964 proposal to raquize drastic health varnin4n cigarette advertisements. 9enate cosrai.ttee holds hearings oa extension of~ etts Labeling Act. Cigarette manufacturers sepZanti-trust law exception to peradt inter-coapany a"a+ent to discontintu broadcast advertising volun- ocia" u'. e. S.u.pre.me Court reiuses to review Court of ls"decizioa ap'h TdTnq iCC's 1967 application VI'M oft a fairness doetrine" to cigarette oammercials. b.. UAW AN atm ~970: Ap~ President Nixon signs new Cigaratte babeling f-a m'~:mn.. 10 r.{}.r.F..1 1-SfaM *1.w nnl.lin .Lna.1 ackago c.ution label is revised as a"varninq."' be"MyL9uately inforraed that cigarette smoking ~ b. 3. States and localities may impose on cigarette ad•vertiainq and promotion 'no reqairements or. prohibition baaed on ss,oking and health.` a 4 I. F'1+C may not kuxther its wa rning-in-adverti sing trade regulation proposal until at least July, d it it do s s fter it th t 71 i 1 b N b . , an mus e o erea g ve • 9 Conaress_six months to consider the matter. o•~ O ~s to health." Principal provisionss Sising an offer by the cigarette industxy iscontinue voluntarily ;ts radio-tv adver- •• inq) such advertising is prohibited as of . 2, 1971.
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MINU'!':S OF THE TIIIR'C!:'-::TH MrETING OF ICOSI/SA'r7P BRUSSELS CCToaER 2J-24, 1979 .4 In attendance: Mary Covi.nqton . Chairrran Gcorge 8crman Richar•d;Coxner Julian Doyle Bob Ely Don HOel. Ed Jacob Trevor Xing Colin rnowles Richard Marcotuiii•o Mortin Mulhollar.d Con Needham Charles Ducker Christian Vogel Sam Witt AGscnt - Ulrich Ru«lenschmidt Preii;ainary Meeting;October 23, 1979 1. Wel.comel AoQroval of Minutes: Agenda Review. Mary Covington welcomed Martin Mulho2land, Sam Witt and Richard•Marcotullioto their first SAWP meeting, u.M. Hoel was welcomed ae consultant on leoal and other matters. H8. Covington noted that the purpose of this preliminary mcatfng was to revi®c~ the agenda items and other preliminary :natters in preparaticn F`+'(9 tha Eu21 meeting on Cctober 24. ~ 'rhe minutes of the previous mcctings were approved w +~P wttnout change } "1.
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S.3•~ WE THEREFORE DECIDED THAT I WAS BOTH URGENT A1ID APPROPRIATE THAT 1H OUR. COUNTEf;'riEASURE NO.RK 4!E DEVELOPED CAPtPAIGNS: AND ACTIOHS THAT COULD BE ADAPTED AND USED:BY NATIONAL ASSOCIATIIO[4 THE VERBA[ID, SPECIFICALLY: POINTED OUT THI:S AREA AS ONE:VHERE 1EOS:I SNDULD BE OF HELP- 5-4. THE SCOPE UF THESE CAMPAIGNS ANDACTIOIIS WILL BE. PURPOSELY WdDE• THE AREtiS COVERED WILL UNDOUBTEDLY: INCLUDE THOSE LISTED IN PARAGRA'PH 3. THE AID WILL BE TO: PRODUCE CmPS11U1dICATTOH PLANS WI.TH SUPPbRTI'1NGH MATERIALS AHSWERING 8UESITDFJS•i -• 1LkL0. SHOULD BE: ADDRESSED - k N A- T MESSAGES SHOULD BE COMMUNICA'TED - fi_U, SHOULD THESE BE CONVEYED 7HE HELP OF 0#JTSIDE: CONSULTANTS, PARTICULARLY 1N YHE CREATIVE AREA, W:IUL BE.' CAI.LED UPbN'. 5.5. DEVELOPMENT WILL CONTfNNE THRDU6H THE NEXT MEETING OF THE, SUB-CONiMITTEE (OCTOBER. I AND 2). WHICH WILL ALSO BE ATTENDED BY REP'RESENTATIVES [IF CERTAI.H NATIONAL ASSOCIATIONS. THIS WILL BE. FO(:LDtIED BY THE HEXT FULL MEETING OF SriWP' (OCTOBER 23 AND 24)• THE A1M.MILL BE TO PREPARE A' NIRST BATCH OF COUNTERMEASURE PROPOSALS FOR PRF:SE:FlTA1ION TO THE ASSOCIATIONS AT A WORKSHOP* MEETING TI0 BE HEL.D, IF POSSIBLE•, IN DECEHBER THIS YEAR, OR IF THIS 1S HOT POSSIDLE, THEN VERY EARLY IN JANUARY 1950- 5.5. IT IS FULLY EXRECTED THAT AS, A RESULT OF THIS WORKSHOP AHD ALSO OF WHAT THE ANT[-SMOKIl:G FORCES ACTUALLY D0, FURTHER COU.[ITERHEASUIRES ARD CREATIVE: IDEAS WILL REED T0: BE DEVELOPED DUR.IHG THE COURSE OF 1980. THIS HAS BEEN ALLOWED FOR IN• THE . BUDGET.
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2.3. THIS ACTIOH; PLAN IS THE RESULT OF THESE:DISCUSSTDHS. FOLLOWING APRRi1VAL IN SCOTTSDiALE THE SUB-COME9•ITTEE WILL CONTINUE. ITS DEV£LOPtiENT AIlO 1f1PLEMENPATI1ON. 2.4. THE SUB-COIiPIIUTHE iIILL MEET AGAIN ON' OCTOBER 1/2 AND THE NEXT FULL SAWP' ME:ETI:NG WILL TAKE PLACE ON OCTOBER 23/74. 3. A'CTION P'LA1L10AS FOR COUNTE i1EASUR CA T14N 3.1. PT WAS AGREED THAT THE STARTIIIJG POIHT FOR DEFIHI:NG THE AREAS TO BE COVERED SHOULD BE:THE FRAMEWORK PRGPUSED BY DENNIS DURDEN IN PARAGRAPH F) OF HIS: LETTER DATED'HA•Y 14, 1979 WHICH WAS SENT, BY COURIER PACKAGE TO THEO VAN GORKOH AS' CHAIRfiAN OF THE EXECUTIVE CORM'[T'IEI: AND THE ESSEHTDALS OF WHICH WERE PASSED ON TO EXECUTINE (OMh11TTEE HE17B€RS BY TELEX OF NAY 15. F) HIGHEST INITIAL PRIORITEES ?iILL BE PLACED ON EXPLORING POSSIBILITIES FOR HELPLNG TD CHANGE PUBLIC OPdN10N ... BUT NOT NEGLECTING THE HARNESSING OF. THE•E:FFORTS OF THE TOBACCO FAMILY •••.. IN.ITIALLY EFFORTS WILL A'LSO BE CODICEIITRATED ON THE PUBLIC SIIOKING 1SSUE THRUSTS Off THE SOCIAL ACCEPT- ABILITY AUESTUON AND THE ATTEMPTS TO DENIGRA7E THE 1MAGE OF Sh10KI11G AND, THE SriOKFR. • 3.2. BASED. ON TH3S,. THE FOLLOWING LIST WAS DRAWN UIP OF THOSE KEY AREAS IN WH1CH IT WAS C.OPJSIDERED THAT COUHTHRiEASURE ACTION SHOULD BE COHCEN7RATED. 5.2.1. HA1C JGING,PUBLIC OPINION A) E'UBLIC/.PASSIVE• Sf•IOKING COURTESY/ANJaOYANCE B) BREEDOM OF CHOICE ASSISTING THE SPJOKER ATTITUDES TGNA'RDS' SHOKERSlSM0K1NG
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0 'iY, continued - Ciqarette coonpanies :qree to display Surgeon General.'s h,ea2tb, warning arut list brand's tar and nicotine numbers in all aedia advertising. Civil Aeronautics 9oard orders•eommarical airliners* to sopurate sasokers and non-smokars becausa voluntary arrangewants arsn'ti working thoroughly. Interstate cromaerce Comrission puts a rnle into effect limiting'20 percent of seating spaoe on interstate buses to smoking passengers. avs proposed to tax bigh tar and nicotiae ~algArettas, to,rsgu2ate their level in'ciqarettes YQ rUb t i nata government anppor aJ.ica pragrams £or tobacco 19af brSlce surnoort laws. (Nax York City passes and ~ . . v=iItrr raacinds tax on tar 6nd nicotine level of o+af'garottas.l -~f 50 statey have passed laws banning sarokinq in ~ed pnblic places. ~ -~aaeasurement and publication of gas nurobers , ="pgcted in 2998. :: . • . ~ American Cancer bociety initiates 5-year prograa designed ta reduce number of smokers - starts with public hea.rings in major cities against amoking and is deiigned to develop a pablio ,aandato tor proposed further goverrment regulations.
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•12- 1tsy. saprette Court declines to stop potontial finos of oigarette smnu arers•while PTC litipaelon @otorminos Mhether they have violated the 1972 advertising warning agreement. Itay. Tobacco Institute testifies before Senate c0snqittee in opposition to the eart-xenned tax bill as •the equiva- lent of a ban" of sosut cigaretts brands. tay. Asked in Lexington, Ky., whether he'd approve . tougher• cigarette health Varning, Presidential candi- dats ZIMZ Carter says he regards present warning as "adequats...Iff"Tti is determined in the future that•smoking oigarettes is more danqsrous than we had thought, I+rould be vsry eager to see the government present that information to the public in a 1.ost forceful way.• OotO Responding to ASH petition in Marcb, CA8 proposes regulft5.on to ban pips•and cigar smoking in aircraft. October. ICC amends 1974 regulation allotting rear 20 percent ot-6iis seats for smokers, expanding'allotne;nt to 30 percent. Bus operators had requested 50 percent. .r Jun atiobal Clearin house for ~Sm~oki~n and Health re- le"ass survel+ o! . p.rsons oa amoTci""n4 cus~om `and and rttLtadas, claim preponderant sentiment to prohibit cithte advertising and public smoking. JuhAwSoss effort in Senate to kill tobacco •siibsidy' _ faf'Y~?8. • . . . a~s LWW ~~ auY Senate defeats, 60-25, an_ettort_to add the Hart-..._ Ke ___ •tar"-nicotins sliding scale tax to a pendinq tax
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NNNNJDH.2 LSa 29-08-22' MARY COYfNGTOM '$L SANP COUNTER,4EASURES DHYELOPf'IEHT SUB-COMfti1,TTEE PRAPOSALS 10 ICASI EXECUTIVE C.OMMIT7EE SCOTTSDALE SEPTEFiBER 9,(10 1979 1. MEh+BERSH[P QF 1HE ZUB-CG8MITTEE 1.1. FOLLOkING THE CANCELLATION'OF'THE FIRST MEETING (JULY 13): IT WAS AGREED THAT THE COP]PDS'ITION OF THE SUB-CONMITTEE SHOULD BE, AJ A NUCLEU& OF' SAl`IP 11E14BERS. >i) NON-SA41P REPRESENTATI.VES OF ICOSI MfiMBER MfPANOES• AND REP- RESENTATIVES' OF RATIONAIi MANUFACTURER'S ASSOCIAYIflNS MAY'BE INV•ITED AS CnNSULTANTS AS: DEEMED NECE•SSA•RY.. C) SIMILARLY, 'OUTSIDE' CONSULTANTS HAY ALSA BE HIRED,. Z-Ms1 CTty S:qE 3yE t•UD-COFPI> TTEF 2•1• T0 PREPARE' PROPO'SAL•S FOR AN ACTT.ON PLAII TO DEVELOP SOCIAL ACCEPTABIL(TY' COUHTERi`i£ASURES THAT CAN BE USED BY NA7IONAL t0t1U- FACTURER'S- ASSOCJ.A11DN. N 2.2. THE SUBrCOf9[f1.TTEE FI9fST MET ON AUGUS7 7TN: IN Bl{USSELS AND: ~ FIRST PROPUSALS HER£ DISCUSSED AT THE FULL SA4IP•SUtfDER MEETING ON s~ AUGUST 14%15 AT SNOCKERtiIICK HOUSE. ~ la
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q. A.TjOI-PI,A H HQiR_KIM WITH AhD HARKETING 10 THE ASSOCIATI6NS 44- AI.L THE ASSDCCATIOHS REPRESENTED AT TRE ZURICH J,EETIMG WILL BE• KEPT INFDRMED OF PROGRESS, THEIR- EXPER.IENCE AND KNON•HDiT WILL BE QA'LLED UPON AS APPROPRIATE BY THE SUB-CONht]T11EE. 9.2. BASICALLY T;1'sE DEVELOPMENT OF CDUUTERMEASURES WILL FO.LLOW A• "MARXETING APPROACH"- WITH THE TASK OF- THE SUB-COMMITTEE BEING TO COIIE UP WITH 'PRO:DUCTS' THAT THE ASSOCIATIONS NEED AND CAN: ADAPT AND USE. 4..3. HDHEVER, THE ASSOCIAT'IOHS ARE THE KEYS TD EFFECTI.VE CDUNTERNEASURE ACTIONS, AND, THERE IS• RO P0.1NT 1N DEVELOPING CO:UHTERPIEASURE PROGRAMS IF THEY DO SOT HAVE THE CAPACITY OR CA'PADILI;TY OF CARRYbNG THEM, OUT. PROPOSALS TD: STAFF UP' THE INDUSTRY• WI:TH SUITABILITY AUALIFI;ED PUB.LIC: RELATIONS AND COP111U- NICAT.IONS EXPER1ilSE IS OUTS:IDE THE TERMS QF REFERENCE OF THE SUR-CO,ii~1TTEE, BUT tS CRUCIAL TO THE SUCCESS OF ITS ACT.IYITIE•S. THE E.XE=V {IMMiIT_jCE!5 ATTENTIION IS RAD iJll TO T1LLS VERY ,[MP(1RTANT SUBJEf:jt 5. ACTION PLI,N pROPOSALS 1980 - YEAR OF T~ NDII_-SrilO R- PRE-EINPTIVE CA&PALfN, 5.1-1. THE• WORLD HEALTH ORGANIIATION ORIGINALLY DEC.IDEIf THAT THE THEPIE OF THE wORLU, IIEALTH DAY IN 1990 (APRIL 17TH) SNOU:LD BE 'SMOKiNG 0 R HEALTH - THE CHOICE IS YOURS"• THfIS IDEA WAS THEN EXPANDED. AND MEF;BER GOV£RUHENTS ENCOlURAGED TU ~ REGARD 1980 AS THE' YEAR OF THE NOII-SMDKER. q 5.2. WE KNOW FROI7 DUR- EXPERIENCE AT THE STOCKHOLM CO{NFEREHCE ~ AND AFTER THAT THE'ANTI-SMOKING PIOVEMENT IS INCTiEAS1NG ITS CAPABILI1TY OF CUORDINATING ITS• ACTIONS ON A HORLD-WI.DE SCALE. WE CAfl THEREFORE EXPECT THA'T HIS W H 0 INiTIAT19E'WLLL RES:ULT IN INCREASED CODRDlRATED ACTIO.NS BEING CARRIED OUT THROUGHOUT THE YEAR A}iD THROUGHOUT THB HORLD..
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It was det3rm'tnr.d t.*.at the October i•1 agenda should include, di,scussion of the 1980 Worid Health Day s.:onsored by the KoX)d )1r.alth organixation. This is nornally observed on April 7, but in Germany it is observed or, Marc:^ 28. 17, Discussion of Scottsda:e 61eetLn•. There was a gene:a3 :?isoussion o`f the m.atters dealt with at the Ooard of Covernors'and Exeoutive Cnr..mit[cc Meetings in Scottsdale, Arizona, September, 2979. Xzoig s~)c4 items dis- cus:ed were the following: A. The public smo:<i;q paper _s to be u?dated. The i.^.ieial draft is to be prepared by Jacob s Medinyer. B. The coacep t of an interr.ational public sa.oking sym.posiun was approved. A proposed budge: and p:'ogram• outline will be requirec'. before final approval. R•iohard eorner reported on the furra ion of the Stearing Committee (Juaan Do;rle, Don H0e1, Co:in xncuLes, Christian Vocel) under the CountFtmcasures Sub- cocsci=tee which had been assi5ne3 the task of developing a firm symposium proposal for submission to SAWP by the end o` ca:=dar 1999. upon approvr.l, S?FP will. tirmam:: the prcposal to the ~ Sacrc.ary General who will cissibute it to the F.xecutive Cornmit'~e for approval. C.] N C. Gporqe sernan reported on the social costs/saciel yp ,Fh va3aes pcoje:t. In Cebruasy, 1980, the Executive Co:rjittec is dD -Z- 64
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PART I - SHORT REYIEk OF SAwP'S NA70R AMVITIES - DEtiNIS DoRDEN A. In total , since its founding, SAWP has received 18 assigmnents from.ILOSi: (see appended report) t 13 have been completed 1 4 have been deferred focr consideration/action by the Secretariat / 1 is still underway } Social tosts/Social Values g. Since ther last•Governing goard meeting at Leeds,Castle, the followtny.have been major accoaq+lishsents of SAWP: 1); Internationa7 Dpiaion Survey completed and distributed, 2) Socia;t Costs/Social Values: 5tudy undertaken and sone portions completed. 3) A CvunOerrneasures Development Working Party has been estab113hed and is submitting Its work p1an. 4). The Public Smoki.ng Position Paper hes been.kept updated. 5). A most successful meeting of National Associations wss helfd at Iurlch. 6. Nigtilights of the Zurich nretiog, •(See Appendem Report) A 7t EXKMTT_La: Deponentl.~L~ Date Rptc_ DOO,00[
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bo. acvised of the. prog.ress or this proj•:ct and is ther; to make .ecomcc.ndati.on sons to the Board 040 Governora. yr. scrrar.•feels that by Fcbruary most of his contracted work w•ill be near cor.ip:etion, or be completed. The gencral discussion e:ophasized the importance ot suhttittiag a specific with recomnendations and, demunstrat.icns of its utility. Mr. Bzr:nan reported thatt as each assigned project is completed. there wil}: be a recommendation Por turthcr indicated work. This tnay present him with a r_i:aing prob_er in p=eparir.p a ncw budget to cover thc proposals. Mr. aernan also reported that he has employed a Lrea- lancc writer.- to convert the naterial contained in the econom`_c chapter in L•hc projuck manuab into "isnuc-aad-answer" forn. T^is is i:tcndad to iNprove• /readability for the ultihate •,1ser. SttmE)le outlines-w[,re given to the SAwP members to study overaight for corunenls ar.d suggestiense the next day. 7. ;AWP has been assigned the resj+onsibil.iry to act as a stund~r.: Advisory Comrittee to the Sccretary Gener.al. Jalian N Doyle qave his views en what he anticipated from this arrange- Ca men.t. SAWP has experienced public affairs pract-itioners x•ith• k:iowlec.ge o: the ccmpanies' vicws whe cin benef °.t :zi.rr in genersl ~ informational and backgrot:nd discussi0ns. SkZTP is not to be used m °.or dnci s ion- making: purposes. Lt was recagaized that by t:iGie ExP^_utivo Comnittee dectsion, 5AA'P hes btcor..e a aencanent comiti:tcc, and as a result, its stor•cs has chanyed. MF. Ccvington asked the -3-
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-7• entary arrangeaents aren't working thoroughly. 8aya Ges "2'he segregation of sx!okers; we believe, strikos an equitable Lalance, aliowing neither smokers nor non- saokera to infringe on the reasonable exercise of.the rights of ot:hers." eirliners to sap~ .cia smo`creis and noasmokers because voi• Nay. Civil ronautics soard (CAn) orders coeneercial June. Again, , Sen. Hose loses on a voice vote his annual A §L atteupt to phase out tobacco price support prograns, ~ ~ LE August. Consumer Product SafetY Caamission .(CPSC) Chsirman 1~{c~r~TO. 8~`~r son, tells t-Tie Nev?~ ork ?i.as he's prepare3 ti see?c a-ban on-ill or scse cigarettei-11r""an examination contirAS the surgeon geperal's tindings'on the asserted hasards of cigarattes. Namerou's Congrassaen and The Tobacco Institute point out that the Consnessr Product Safety Act, which set up the Coeedssion, apeci- cr3 a12y ex`eiap"Ea"Eobacco from CPSC jurisdiction. • Se#r. CPEtC Chairman 3 son makes public thn ~ Coaaon'e"Zronsua!er pr uct sard index" and puts ~ t in eui area or "qneationable jurisdSction." Z win . Ftouse passes the bi11 to outlaw broadcast advs iaing ciT~nittle cigars." President Nixon signs ~ thw'M#M ~ Sept;aaber 23rd and it goes-into el~e`ct 30 days ~ . ,_~ a5a6~ ~d4~ ~a 97<: Jan Lxt.ensiva media coverage reainds Americans of th h anniversary ot tha saakinq-health report of th eon Generai's Advisorv Committee. '~__..R._.... __.._.._. Feb. Sen. Moss and the N"eriean Public Realth Assaobetion petl~on CPSC to pro5~x s~ee' o3~'ic -qa• rsttes p1eTding more t an 21 mg. "tar," noting that the limit "xi11 remove the nrost dangerous varieties of cigarettes frow the market." April. zCC puts a rule into effect limiting 20 percent of seatinq space on interstate buses to amoking passen- gers. i.r!...'y'i•t'\li~:7~lrtit:iJ1~~
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5.12. IF THIS IS AGREED IN PRINCIPLE, THEN DETA}LED PROPOSALS 4f ILL BE PREPARED AS: T0- THE RECOliP1E1JDED ORGANIIATIOtJ. SPONSORIUG BODY, PARTICIPA'NTS ETC. AN OVERALL FIGURE HAS BEENi1NCLUDED IN TRE BUllGET. 6. EXPERI'MENTAL, INFORMATION'AC. CARPAI'GR TO OPINi01I LEADERS IN A SELECTED COUNTRY. PRECEEDED AND'FOLC041ED BY OPINION SURVEYS TO' _ NEASURE EFFECTLVENESS-. 6.]. A PDSS.IDLE CDUNTER9hEASURE: T}lAT COULD BE ORGANI2ED IN THE' ' NEAR FUTURE WOULD BE TO HEllP•A RATIONAL HANUFA:CTURERS' ASSOCIA-. T10N MOUNT AN E:XPERIMENTAL, 1NFORMATI'ONAL CAMPAIGN OEALING WITH SOCIAL ACCEPTAB'IL1TY ISS.UES. THIS CAViPA-IGN WONLA TAKE THE FORM OF.I - SEL•ECTION OF APP'ROXIMATELY 250 OPINIOH LEADERS - CHECK THEIR OPINIONS 0N SOCIAL-ACCEPTABILITY', MAKI~NG SMOKERSt 1NTO: SECOND CLASS C7.T1.2ENS, PASSIVE SMOXING, ETC. ' - ASK THE:IR OPIiNIOtl ABOUT THE DEHANDS: OF' ACTIVE N0N-SMOKERS; AND THEIR OBJECTI.VES'. DO THEY AGREE OR NOT? WHAT DO THEY FEEL TO BE THE VARIOUS CONSEAUENCES OF THESE ACTIONS? - FOLLOW BY A S116RT, IIiTENS'1VE CAMPAIGH PRESENTING ALL THE ARGU- MENTS IN SPHCIALLY PRO:DUCED MATERIALS (REPRI:NTS' UF NEIlSPAPER i ARTI¢LES, BROCHURES, ETC)-. INDEPENDENTLY, ACQUAINT THEhI WITH THE MOST VIOLI:{T THEMES USED. BY THE ANTC-AMOKING f90VEMENT. - AFTER THREE TO SIX MONTHS', CHECK WHAT EFFECT THE INFORI1A7i0.N AND THE INFORMATIONAL T00'LS USED HAVE IIAD, WHAT SPECI!FIC AREAS ~' HAVE HAD MOST SUCCESS, ETC. THf.EXPERII4ENT COULD PROVIDE US WITH A• LOT OF DATA ON H041' TO PROCEED WITH OUR ACTIONS -IN THE ~ cn ~.. ~ SOCIAL ACCEPTABILI.TY FIELD. A DHAW6ACK,HIGHT 8E THAT 17 COULD ~, ~. ~ ATTRACT SOME NEGATIVE PUBLICITY, B-UT,. THAT NOULD, BE NO DIFFEREN.T ~, ~ TO THE PRESENT SITUATIOII. w ~. Ln
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, THIRD REPORT I .•1 y BY ;,.p~RKING PARTY ON SOCIAL ACCEPTABILITY OF SMOKING TO na INII:RNATIONAL COhHITTEE ON SMOKING ISSUES > ?' r~:h
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D. National Associations Meeting, Januasy 28 and 29, 1980•. The progran wi11 cover: (1) World Health Day. (2) Public smoking. (3) Mobilizing tho- tobacce family. (4) Freedom of choice and image of srwking and the smoker. (3} Social costs/social values. 'dI. SubsQoucnt Meetings. 11, was determined that the nestl SAWR neeting w:ll be held in London on December 10 and 11, starting at 4:00 p.m. on the 10th. Imoorial v.°.11 asaist with neccssary arrange.irents, The January meeting oF BAWP is scheduled in Brussols on• „anuary 30, :1980, fo•llowing the meeting of t.he national associa- tions or. January 28 and 29. There being nc further bUsiness, the MeeGing was acjourned.
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SaLay JiwX2Nd lK..aTMI.`XV{. MVIS4AT;yN - pS.I1t.Fr•i wNl..ai= slwxxNa uAS sFxN VROHISITEII OR CONTINED TO CERTAZN ARE.18. 1972 - 1377 1~ Prohibition in elevators 2. 3. Prohibitiou or ssgiegatiois ia pablic transportation. Prohibition or saqrsqation in theaters; tttus.ums, libraries, concert halls, etc. Prohibition or sagregation in health care tacilities. Prohibition or segregation in bealth delivery laeilities (doctors, dentists, etc.). Prohibition or saqrecation in Covernmaat building/public i meet nq placss. Prohibition or.sagregation in retaii'stores and other bli l pu c p aces. Yrohibi~an or seqreqation in food storss, superzarkas, etc. O". Prohibittt~ o~r aogreqation in restaurants and other food' ' ' '• i hments . s e rviCk s£ab l i Fz`ohilj~ or sa;grcgation in privately owned plaqes. 1: xxxsoaaoc Copi.s~~e ZAWS are avai.lable on request from State _ es. ~ , •. . I
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-9- Octobor. Six major cigarette manufaoturers intervene in the Noss_ suit. October. President Pord asks tha National Cancer Advisory Board for sai'en'~i£io•avider~e•to baraconeanda-tlo-'n oi r"Iederal regulation oC cigarette •tar' and nicotiae yields. November. New York Times says the NCA8 makes a•partial• response to"'~s~"~ZesYdeenti,~s~"~ZesYdeenti and that his reception ls `cool. • November. iY.&. DiWiat Court denies cigarette manufacturerso petition to dismiss the Mo_ s_s suit:. Xurniture eunufacturers seek court judgaent" does have jurisdiction over cigarette burning De#4460r. U'.S. attorney and ciQarette companies again're- •' = sa court dtsmissal of Moss auit, olaimiaq CPSC lacks ~tior{, over ciqarette x tar" and nicotine. jaae *Ulm 19~ . YTC issues its report to Congress for 1914, again ~ois Bra- eicarette advertisinc and repastina earlier tive recommendations. It makes no reference to the sing investigation begun the previous April. AA~OtinN. . . sg March. Mosai, without referring to his court suit, d b'M: to give CPSC jurisdiction to regulate intro- "•tar" March. The Senate votes 55-26 to defeat an agriculture appropriations bill amendment by Hoes to end tobacco "eubsidies." May. V.S. District Court rules in the Hoss suit that CPSC does have authority to regulate 'tar' and nicotine. }iouse of Represant:at:ives subcommittee approves a bill to exempt tobacco from CPSC jurisdiction. i~ ....,, +r ' .... . ~ M4if:d4nM./.• . ' .w • f
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I TABLE OF CONTENTS 'Page Members of Working Party . . . . . . . . . . . . . . . . . . . . i letter of Transmittal . . . . . . . . . . . . . . . . . . . . . ii Table of Contents . . . . . . . . . . . . . . . . . . . . . . . iii Reader's 6uide to This Report . . . . . . . . . . . . . . . . . iv SECTION I Suimwry~vBaslc Conclusions and Recaroroendations 1- 3 SECTION 11 ~.-' FeasibC;~f~y of an Advertising Campaign on Smoking IssuOftl International Media 4- 5 ; r~1 r~ SECTION III ~ ~ ,~ ICOSI ~o er•age of Fourth World Conference on Smoking and Hr&1fth 6 - 8 ,...._ ._; - SECTION IV Confergnce on Swking issues Proposed by Tobacco Worker~firade Union 9 - 10 'i SECTION V ICOSI Approaches to "Social Costs" Issues 11 - 15 APPENDIX Status of ICOSI Assignments to SAWP 16 - 17 iii
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October 19, 1979 (afternonn). V. Counterrceasures Subcar:rni.ttee Report, The. afternoon session convened and Richard Corr.er re- viewed the following items which were discussed at Countermeasures Subcoram`_ttee meeting in Warburg on October 1 and 2: ,0.. A request was .nade of Shook, Hardy d Bacon to prepare a basic tr.dustry reponse to tho WHO Expert Cortrnittee recom:nendations in the publi-cation, Controtlin4 the Bmo Epidemic. El. Pub1.S,c smoking symposia.m. A general review of the outline of the symposium proposal was made to the SAn'P meTbers. It was noted that the Steering Committee would meet. the following day in the ICO5I offices to gathe< full details on the proposal and to report back to SAWP at the December meetiny. Generally, the synposiom will address the scientific, societal (social inteqratior•) , end legal aspects of public smoking. It was deter- mined that the syr.tiposium cou3.d r.oa be helc' before World Health Day. C. Social costs/social values workshop, It was deter.nined tha: plans Eor a separate workshop be pos.poned. =he subject can bd purt of :he SAWP workshop .`or the national associac'_ons sched-0 uled at the end of January, 19901. it was reported that the na:ionol associations are strongly in fsvor o: the SnWP wori.shop•~ rroposal and• have expressed the need to ncet and exchange infor-„""., ma=ion• 1. -9- V
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•V~oluntar..y ! initiat vee ol.tho iqarette Camoanies ~ln seli-Ragu~at7on of7~idverttxing and Promotlon . ~• tounded the Council for Tobacco Research to pursue independently, with all necessary funds, the aany•vnanswered scientific and med- ieal questions about smoking. . 1963 Withdrev cigarette promotion to students, setting the policy that smokinq is a cuaton of personal choice to be decided upon by more mature parsons in light of all available information. ~ , 1965 3 Established a strict: advertisinq cods, the principles of whi.h are still observed by all companies. 1967 ~jengan s continuinq proqrara of technical assistance to the tederal " " ' tar uid nicorlne testing. n Trade Coarni*Aon on the Commission 1968 !ft Participat;e¢' ~idual cigarette company scientists, who c~ntinup ~i to serv.e in~f capacities, in the Tobaceo Workin Crou of the Lung C ask Yorce of the ltational Cancer Znstitute, the kinq andjh lth research program of the ?ublic Health Service. Ja 1969 VoluWMredtWbtlithdraw from broadcast advertising, principally be its oreasing competitive level coupled with steady qrow o1 y~i audiences sude St aa inappropriate medium. 7 19 0 ~ Volunteeredgin to include•FTC "taz• and nicotine ratings in ~0 t& advartisinq~ • DVoluntarily a reed to depict eiqarette packages legibly ihowing qagora the Congres package xarninq in all newspaper, maqazine, billboard and other advertising. 0 1972 Entered aqreeMent with Tederal Trade Comml3sion on terms ol: dSs^ L i s i n ' pr i nt a d vert i ng i kage warn %yiamm play oL pacng. he Tobacco institute Narch 1975 J t(7 ~ F1 J V) 0) * W 04 U
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R.J. Reynoltls inoustries. Inc WinstonvSalem• N. C. 27102 Den",s Durden Vice PresiOem August 25, 1978 . T0: The Members of 'ICOSI r Gentlemen: Members ofe Social Acceptability Working Party (SAWP) have authorized my sending ~op ~his third report from our group. _ ' It follows tbe~,;ame format as our two previous submissions. Its prepara- tion tion has onceAgain involved all our membership. SAWP's associate chairman, James F. HiYid;`thas played an especially valuable role. When family illness hobbled my:tra*l schedule, he took the helm and guided our efforts through `'a critical stag~ of the work program. memb'~i^~.plso have authorized me. to present this report to ICOSI at . t~e'L`eeds CSsi~P1' meeting in September 1978. .r, ,1;L~ look forw~~o disjussing it with you. }ncerely, ,,M . ~[ 1 r;~ • -~ De nis Durd'en'"~ s'° cc: Members of the Working Party .:.Y. Thomas Rucker, Esq. U1 h. J: y ~D N ~ (7) W CU G)
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II. Reoort bv "Sr. %inc. Tre'vor King reaorted on the status of enabling leyis- lation and anti_ipated regvla io^s to be p•ronulgatcd by the Irish Health p!inister, Mr. Hing also reported on the health warning labet d'evelopnents in the Channel Islands, as well as, the renewed interest in thc smoking and health situation by the E.E.C. The F.E.C. Health MQnisters are to meet in Ireland in Deceswer 1479. Each companv was asked t•o maintain awareness of t.hia situati.on, especially with regard to participation o: representatives o',the J.R., oenmar:< and Cermany, Infor.nation obtained should be reported to the SecreGary General. fairs Advisory Ccninittee, 1TI. Industry 7- T:+e r.ole of SAWP as Industry Affairs Advisory Ccmm.ittee to the Se retar.v 3er.eral was discussed. S4ithSn the next few weeks, .:u2ian Doyle, in conjunction with Marlr Covington. is to prepare a report which details the role and fvr.etion of S?,WP as the Indcs:ry af;'oirs Advisor.y Gom.roittee. This report will be sent to SAWP members for comments, 9ob F:ly advised that his view of the role of SAWP in thia capacity was: (a) to act as standing advisory committee to the Sr!cretary Generai; (b) to•monitor anti-snaking activities as © :hey move away from tr.e priaary heal,t : iss-.:es and advise ICOSX in CJ regard to a7p-opriate cour,termeasures: and Fc) to establish -6-
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5. vTC and Nw isust continue their annual reports eo conarass on the saokinq-healtd issue. 0 July. U. s• Senate votes 52-15 to defeat San. ltoss' (D-Utahj AqricuTCura appropriations bill a~wndmen't which would have killed all government programs [or tobacco leaf price support loans, export subsidios, overseas aalas proarotion and inspection and grading. 7uwgust. g°C proposes to r uire its •tar"-nicotino scores to appear in all c garstte advertising. December, FTC accepts industry proposal voluntarily to display FiC •ter"-nieotine scoras in all its ad- vertising. tCC announces that at the ssus tine aiga- commer`c-rals leave broadcasting, on Jan. 2, 1971, 'tairness doctrine" will cesae to apply to smoking~ 4old sters may assume there is no sars controversy ts ill eflectsi and to the extent +usti,-sawk{ng cements are broadcast as "public service," s need not sir•contresting viaws. s~' b~ Columnist Jack Anderson writes that "in- ~ nAgWrinformed hiu 04 yat-" to-5s-released, joint s; al Aviation adbinistration-Public 8ealth Sersice a t at wi"LZ''aay to cco saa s does oc rpresent th basard to nonsmoking cormsercial airline' { J 1972) see y yars. an. ~ 1971; Jan. Surgeon General Sta3nield proposes govern-. m n o-n s_ -mokinq" in nub c p ces. claiadna health tss+~cvt to nonsmoxers. ~WaLm January, Bills introduced in Con ress to limit or ban cigarette sawking aboard aircra , ra lroadR, buses and vessels carrying passengers. (Frist one, intro- duced in Aate 1969, received little or no attention.) March. Tobacco rnstituto asks U. S. Court of hppeals in nichraond to decloro •unla:+fuT' Zie Daceaswr FCC ruling thak'airing of contrasting vicws to anti-'-smoking broadcasts are not required. r
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"1- Jaauary, nesident Johns 's budget requests funds for a Hati-onar_ ear q use for Smokiny and Healt agency. CoOni rass appzroves. r gg 1966: comoerce may be protecteT against "confusing' ions.. Principal provisions: arett,e packs must bear a health caution label. era.l and state agencies may not u+ake qther 7A~elin or advertisi •eqnirements in cann - 9 n e Januaryu t~ proposas to requiro a severe health warniay on -c~garette packages and in all ciqarette advortini~q. Junw-July. Hoaase of R~e_pr~e~se~nt~at~i_v~es aommittee holda hearings on smoTcTng=health q- ueatien. Then 1K'C says it will hold off its warning proposal peadiny Con- assional action. xaroh-July. Con essional hearings completed, " Cigarette Labe niiyAat enacted, in order, as the Act says,•that •the public aNy be adequately informed that dgaxatta eswkiAg ma be hazardous to health," ' . 4 C ~ n with aawking and health at least until July 1969. aud the be rta+ent of Health, Education and fare (H.EK are to eep Congress orme on e ssue through annual reports. LrTC reverses its 1955 position on filters--says y ti.o promote thest and list "tar" utd nicotine liff"In cigarette advertising, though there should lateral implication of reductions of hialth • June: Yederal Communications Coaaeission (FCC) rules. . that stat3ona }. c a r a arette cornoercials must broadcast anti-sa+oking announcements, under the "fairness doctrine." t harardh. M a 1967: tla .1isu issues a household iurvey of `morbidi,ty," aasert ag links between cigarette smoking and aioknesa.
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Secretary Genersl to pre,^.are a brief paper sctting forth his ideas raqardinq how the new relatior.s;ip between SAwF and the Secretarv General ca:o funct:.on. E. S.aNp hss been asked by the Executive Ccmmit`ee and Board of Coverncrs to work with the Secrc~ary Gene:al in develep- ing allies outside the immediate tobacco family. Primarily, SANP is to explore with the Secretary 6eneral potential areas of effort in buiiEin9 these alliances. Speaific :natterra to be consiEered are: (1) what can be done; (2) how it is to be doneP and f3A what budgetary requirements are necessary. The Secretary Ger.era7: offered :o compile a list- of iasues and potential allies asing in:orr:.aticn gathered f«oct kis past and anticLpated visits with national assor,iations, This materi .1 is to be :r.ade available for .coas'_deration by S„?f'P at its neXt reeting. Mr, Dovle regorted on other de<:isioRs made at ths Scottsdale meetings. There being no fjrther bisiyess, the meeting was ad- jovrr.ed until 9:00 a.rn., October 24, 1979. 1979 (morninc,~. october 24 Full htee_inq N C , ,.. _... "~ ~ dcE the Tbe same persons were present ss atta.^. pre- liminary meeting on October 23. 1e ~ -4-
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I #. i z.]. (k S a z S s l,0. . ' ~ i n ?nsrts: x Anrstrr n a Y e n , IT,M Kfi . Ii , ' 0 ~ ~e" K R R :Im(' .j WY fit WrIS d'f(ETT x N x s +"' n. :.?'slf'.1 s i isI~TCLS % immr.-Vr .uqT'!n; ~ x x ' . v "T7Sft, :• ~ rt '~D'lft~t' R ^atxr.cr,• ;~(.f;' y r.-i~ n x x o u`: T2S7+'~S!' .: . -7•1Lr" x 71 x ~.~ :r . ti 3iEF^ .23.. 22..18.19••6 16 3"5 6 2 eat.u. 1l7T Scelar' a.aaaraatr in pub13c1Y ams4 kul:¢Lr vic~ svar~ "~ pRCStY o.as $0. risaty ~.rc.at o41 .ats .cso 6. Los J c. ~at.~c ~~ g ~~4va - M~ -sz ~v ~adc - Ib .mokSnq szaRF xost Dv dnstqaand ta aa:atc:as op.r. y Ca tS. q.ennl poyl3e and toeat.C ia c stat. bolldAn{. frlactpailY bY C414 dh"9•. t•4* tnllaWln; .tats& hav. prnklylttd Reoki.at la oao ar bach Kl+nb.~ o[ the l.qisl.r-. ds-- aq aasloqst Alaskay czM.r ii~tdf. X[.r K.Y.IM.Y., Qtall, HathtUqtnA talfn C9NRtttN/p.~Rtt2199~• July 22, 1977
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READER'S GUIDE T0 THIS REPORT This report covers four of the seventeen assignments which have been given to SAWP by ICOSI. The Appendix of this volume contains a complete listing of SAWP's progress on all assignments. Very briefly summarized, the current status is: 1. SAWP has completed their portion of the work for seven of the assignments from ICOSI. 2. SAWP and ICOSI have agreed that an additional five of the assignments should be deferred until.the Secretariat is fu1Ty operationai and can ' ' carry thgm out. y '~ .~x . 3. SAWP•;ICOSI have agreed that one assignment is not scheduled to be cVYe;nu•4ubiI uic nmi.ar/ayr,ny ,aI a mect::ny V: +VVVa. '~ S:a:e. .~1 4. Hence;J`~ere are four assignments which need to be addressed by SAWP at thtis.,,time. Section ~,, imnedia.tely foiiowing, suimsarizes the conclusions and recommen- ..> ", dations Yit`all four assignments. Next, in Sections II through Y, each of r.a the~separatt~assignments is dealt with in a separate section. 4tstsiis ~Fshortest of SAWP's reports to ICOSI to date. However, the sub- jects fects it:,t~o.v4rs are very important. This is especially true of Section V. It deals•kfo approaches to the "social costs" thrust of social acceptability ~~ issues. ~~.ia1 costs" should be a central focus of SAWP's 1979 activities and shoufd"occupy much of SAWP's agenda just as "public smoking" has during 1978. Whiserrs of the Working Party wi11 particularly welcane ICOSI's comments 1,nr:l on the "soedull costs" conclusions and recomnendations contained in this report. iv
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-8- ) Aprii. Comptr.olJer Qsn.ral of the 0. a, rules that cvsC "does not fiawo t~o au or ty to act- on the Nse pet t on. April. Y2C begins an investigation of the sise of the warning roquired in cigarette advertising, seeking copies o[ a11 advertfsing from sanutaeturers and some 260 news- papers and 40 maqesines. • ~ Hay. CPSC docidea it has no jurisdiction or authority to set mandatory "tar" levels on cigarettes as urged in the Moss petition. ~ • swam d . aa' Juiy. HtW Sec. Weinber er asks Congress to set authority to requ ats-F£ar a n cotine content in cigarettes "'and other ingredients shown to be iniurious to health,• Ju1y.•,di'ft decides to limit application of 'fairness doctrine to broadcast viewpoints rather than 'to product c , thus reversing its 1967 decision which sppl e'doetrine" to a vhole category of product adv g (cigarettes). Au en. Usoes, the Ameriean public Health Assn. and ~e Di r:e~ 03 °`olumbfa u`L~ _,_ qn_T,is+ng pati on a~aaeral ~IIis ourL in as ng~on'to zule that the CPLff 3o:a ,aav thorltyy to Dan rroai lnt.rstate coRUberce c].garettes. yfelmore .then 21 ssg 'tar.'._.... Aug~ reports biggest annual increase in cigarette salq~ten years, and a decrease in advertising expendi- tures, Septeabes. CPSC rejects a furniture manufacturers' petition '. to regulate cTqarette burning ties befors regulating uphol- stery flanmability, claiming lack of'juriediction over cigarettes. October. k'a117moves the National fer 8moki~ and fteaith from Nashington ~o~tlanta`FQ~quarters of t•Fi-e enter for Disease Control. N N ,( Em p H ~ ~ •~I"rw.Y+'.!/:X.. . . FIwIM>r..M.v.+/ ....~. .... . . . . . 1 "
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51919 6398 50147 3516 x ..
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,ippropriat:>. suhgroups for reporting hack to SA97r. :h?se mJtters will be considered by Ms, coviagton and Mr. Doyle in the prepara- tzon of their SAWP role report. V. social <.osts/Social Values Report. A. De^rfved S:noker Studies. George 8erman reported that Dr. Norman E:eimstra recently has been e^gaqed to perfoim studi.es rclating to "deprived smokers.' The studies would include task pcrformanct in laboratory situations and mood changes, ccmparing continuing smokers wi.th dep:ivea; smokers. Prior work by Dr. tleiT.s;.ra has compared nonsr..okcrs wi.th deprived smokers. TSere will ,:c oomc ro:u.l.ts and an interim report com+:leted by January 19, 19801. The budget allocation is $16,000 out oE a totai assigned bud;et ot $50"000. B. Social Role o! Smoking. This portion of the tota_ project is being completed by Dr. Feinhand:.er, It ia hoped that at least a dr.aft of this report will be available by Janaary 1, 1980. The possible value oS conductir.g a similer stidy in the U.K., Cernany, and possibly sotac of thc third world nations, was no:ed. C. 1lnali t:is o1 Ant,i-Smmking Croups.. an analysis o: ant:- C smoking grolsps is being pcrPoraad by Dr. Aaron Wildavsky. This W prnjact is exs:nining the anti-smokir•.g groups in rega:el to their ~ organization, Leadership and ccntent writings}', ~ t7! ~ -7- ~4
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SECTION I SUh4dARY OF BASIC CONCLUSIONS ANO RECOhF1EN0ATI0NS For the four assignments covered in this report, SAWP's basic conclusions and recommendations can be very briefly sumoarized as follows: I. An International Ad Cam ai n on Smokina ssues. A. SAWP concludes that: ~. J •.. ... ::? B. SAWFnFeCOnmends that ICOSI's .a ;,.~1. ..:.9 4~ % .,~ 2. ..,~.~ .. :,, i. . ,W :creative and carefully . {kfimhed advertising is Geing used as an industry coun~ermeasure in social +Ieelptability contro- vqrs;ies at national and Ceg.~onal levels. .:a,w.a ~ a;lert to the industry's ' : scaitered advertising co8ntermeasures on smoking iii nes, and -fati.litate an interchange df~Sbch advertising's strategies, concepts, and t* between national ,trade associations and companies. II. ICOSI ~Cove_r_a_q_e of Fourth World Con- ~` =' ference on Smok~ a` ~n3 Health. 4^" A. SAWP concludes that: 1. The Fourth World Conference, like its predecesso~rs, will be postured as a media event to generate extensive world- wide publicity and coverage. 1, an ICOSI-sponsored inter- national campaign is not feasible. , 2. However, SAWP finds that 2. It will develop new themes for attacks on smoking and will chart new courses for harrassing the industry. 3. It will also serve as a rallying point for continued and intensified efforts by established anti-smoking groups. 4. It will also promote the spread of anti-smoking efforts to those parts of the world where such efforts heretofore have been non- existent or insignificant. 5. Its proceedings will_ be. published and proclaimed as further evidence against smoking. 6. It will also further unite anti-smoking forces and efforts into more inter- national linkages working with common worldwide themes and approaches. B. SAWP recormrends that: 1. ICOSI not participate directly (nor encourage direct company or national trade association participation) in the Con- ference. 2. ICOSI provide low-profile, high-capability coverage of the Conference proceedings 1
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3-:?.4., 1980: YEAR OF THE NUN-Sf•OKER i'SMOKIHG 0 R• HEALTH - THE CHO:iCE IS YOURS.' } DEVELOP AN ACTIOH PL1N COVERING ALL AREAS DESI'GNED TO 'PRE-ETiPT'* THE INEVITABLE CO?i'IIt:UAL NEGATIVE COMMUNICATIOHS CANPAIGN THAT CA•N POGITIVELY AND PROFESS['OHALLY•, U~-ING. ALL THE TOOLS AT THE IHDUSTRY'S ---------- DI!SPOSAL. 3.3.__LT WAS DEC IOfD THAT I'T HfiSNDSES.SAR% IQ DEAL WITH! THESE' AR .Aa ON A PR10RLT ,Y BASIS ARD T1,k,{LT F[RSLpR10liI'j`[ SOU.}L LD GE S1Yf.N TO COUl`LT' r'lEAFLIRFG STEMhiING FROM THE STUDIES AL'D W'DRlC BEING CA,QRIED 011L$y $Ati'Q.,,' XJ' S A SO CONSiDFREjI, (RGEHT TO HELP. THE NATllDNAL ASSSIATIOHS COUNTER THE RELIE•HELI, C011TIN UD IS AfJ~ DgCRf;STRATED ATTACxs ExPE,CTED D ~RL ILlG THE D%O YEAR. QF FRE DN-SMO&FR. 3.4. IT, WAS THEREFORE DECIDED'THATe - THE REMAINDER- OF 1979 SHOULD BE DEVOIED TO PREPARING PRE- EMPTIVE CAMPAIGNS AND MEASURES.TO'COUNTER THE 198a YEAR' OF THE -..v..-........-..-..._---..--..---....-------•--....---..w-.-...--------•----- . NOH-SMDKER,. WITH THESE TO DE THE SUBJECT OF A HORKSHOP LIEETING 4TITH THE• ASSOCIATIORS EI.THER. BEFORE THE END --------- OF TiHE YEAR OR IN ENRLY JAtI[1AR.Y. ' - IN 39&0 THERE' SNOULD BE TWO MAJOR ACTIVI.TIES:. COUHTERISEASURES DEVELOPED FROM THE SOCIAL COST S1!UDY aND THE SUBJECT DF'A NOR•K- SHOP MEETINO WITH ----------- ASSOQIATIONS' Ilt THE: FIRST HA'LF ------------ OF'THk YEAR, AND THE ALREADY PROPOSED PASSIVE SflOKINC SEMINAR SHOULD TAKE: PLACE. TOMARDS ------------°------ THE END OF THE YEAR- ' - THOUGH THESE kILL BE THE MAJOR TASKS OF THE SUBrCOMM1TTEE FLEXIBILITY WILL BE NAINTAINED AND OTHER AD-HOC ACTIONS-UNDER- TA•KEN AS,ANA WHEN RE'OUIRED. (
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i:i.+Si CQ'vt:n;~.~f. OF FOur2iH'eUriLU . ON SMOKING ANO HEALTH SAWP also recommends that ICOSI arrange for systematic, on-the-spot coverage of the Stockholm ioeeting. It should be similar, but more coordinated and professional than the coverage of the three previous conferences carried out by some national trade associations.. Appropriate ICOSI coverage would be a small group of low-profile, high-capability scientists, legal and PR professionals. Their mission is to prepare quick on-the-spot analyses of Conference proceedings, press releases and other publicity. The analyses would be forwarded as rapidly as possible to a pre-arranged network of contacts in national trade associations and ICOSI's Secretariat. ~ . All industry responses to "news" emanating from the Conference should come from I national trade associations. A major purpose of ICOSI's coverage will be to 'V insure that trade association responses conform to ICOSI policy positions. in that connection, ICOSI should have a "social costs" position paper similar to ~~ the one adopted by ICOSI on public smoking. SAWP believes that "social costs" ~... will be a ma~or theme of the Stockholm Conference. ~'~. . Coverage of'I,~ t`ne Fourth World Conference will provide ICOSI with one of its first opportu.,n,t~ies for a significant demonstration of how it can aid national• trade associ,atiqrs. Therefore, SAWP pledges its support to making the coverage , ;; exemplary. ~, ::a;; ~ '~ ~ :«+^}. P :1 '.'~ 1CON4`.q •S3nY j / Y~ I4~
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-6+ lbbrvsry. Sen, Moss, phairsaan of the Sonata Consutor subcaemittaa, hoXds hearings on his proposed bill to regulate the 'tar` and nicotine content of cigarettes. HoarSnya rev®al laelc,of justification. No further action takeu. March. The 6~_u_p~r,_~e__a__e~_ Court upholds an appollate court finding of cons~t t o? naTity of the 1970 law which prohibits ku^ewdcast aigerette advsrtisiny, as a result of the suite filed by six radio stations and the 8ational Association of Broadcasters. July. Annual xoss aiaandnent to the n_ept. of Aqriculture appropriations bill that would atop prae support pro- graas for tobaceo,is defeated on a voiee vote, with only one vote'in favdr. ary. !'PC turns down a p.tition from John 8anzhaf, di o~'~ction on Smokin i Nealth, raquest aq that Coaadssion a+ove atelY to ~n "little ciaar" oLdorwt ads. fSC says any action on "little oijars• ~ ~ . be hrndlsd by Congress. Jamseixy. Surgaon General Stainfeld resigns. eZUWL - ~ ~ - - " II= 2 S ' f b d i i d ciqars.• egt;~+o f+of HE~'s office of international health. ~ Ap ~1 San+~te passes and sands*to the House a'bill to prohibit coawTereial broadcast advertisinq ol "little Sa~i. Hoss introduces a bill to 4rohibit ad- e c qars . rom_ roa cast_a t ng o vertising. .. NESt says the vacant surgeon general's poaition ot-6e filled and appoints paui Ehrlich, Jr. as -,,, , acin`~surqeon ganeral in addition toTi i s 3ob as dir- I llay, House Cammittsa on Ynterstate i Poreign Commerce `-' - - N S Fiy e holds a ree- ad ar Ng to debate the Senata-passe bill to prohibit "little cigar' advertising from the- airwaves. O VI ,.., O w ~ . ~ t
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'SU6PVlRY OF BAS[C CONCLUSIONS AND RECOMAENDA7IONS 3. 4. 6 ;M ~ -4 :;i 5. Industry responses to all Conference proceedings should come from national trade associations. A major purpose of ICOSI's Conference coverage will be to insure that national ~trade association responses qooisorm to ICOSI policy' posi'tions and guidelines. :.. > 'PrSor to ICOSI's going to the,Conference, SAWP be- ~Yte'ves that ICOSI should Aave a position paper on ial costs" alon the c g "sn lines of the one on public smbFCtng. P a _~II. oP1_S~_n~o~k_I " Nssues Conference•S-ponsored l~ lobaece~ r,ers ra e Union. lT.T4 i in Stockholm. Coverage, should take the form of scientific and professional PR personnel on the scene to prepare quick responses and analyses for ICOSI and _national associations. ~:;~ SAWP,~COncludes that: 1. .7he.jinitial proposals as =ad'vanced by M. Ren6 Rondou `wautd riot be desirable. '- ;rst Iv. " d 2. 'However•, the concept of "' trade-union conferences ` " could be developed into < : potentially valuable , countermeasures. 3. Future discussions and •refinements of the concept should be handled by ICOSI's Secretary-General rather than by representatives of individual companies. 1 2 B. SAWP recommends that: l. Only perfunctory follow-up be made with M. Rondou until the Secretary-General is ready to undertake the work personally. 2. In discussing the concept with M. Rondou, the following points should be advanced by the Secretary-General as being most helpful to the total tobacco comnunity: a. Union-sponsored activity should parallel that of manufacturers, but not be directly linked. b. Union-sponsored conferences on smoking issues should initially take place at the national, rather than international level. c. Such conferences should focus on issues like freedom to choose; econo- mic and tax benefits; and the employment importance of the industry while sta in away from smoking an ea th and related scientific issues. ICOSI AQproacres to "Social Costs" ssues. A. SAWP concludes that: 1. "Sociai costs" issues are developing with even more strength and breadth than SAWP earlier predicted. 2. Unless the industry develops a strategy for handling these issues, they could become
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I. The Yea:' of tnc r'onsnc:<er. It waS reported that recent i~:ormatios indicates the Ycar oE the I.on-smoker wil:. =robakaly be a full-year effort, not just the customary World Health Day. There is an apparent neqd fcr an, easly alert system to keep ICOSI inforned of activities taking plr.ce arount'' the world. Specific infornat_on was reported from Italy, Ger:nany, Ar:gola, _Trelar.d, amd Ve^ez'jela. Therl was some indicaticn that wy0 mav bc "threatening" saae third world couniries to wichhold monel for diseases such afi mataria, if the local government does nct launch anti-sR.oking camcaigrs. Bob Ely will a.tteln;:: tc gat'ier further info.aiation in this reqard. Eiach compa.n.y w•a.s askcd to request its aPCil:ates to gather• inPors:ation on wiEO actSsiti+ex relating to the °ear of the Ncnsmo;<cr and r'eport '.o thcir respccavu headquorters. Tbis• in£or:r.ation should be forear'ded by each coR.pany to ICOSI offices src that :hc Secretasy General wM have full knowledge of such acti•:ities and can then report conhlete information to the mec6er ccmpanies. Rirhard Corner will oather information available in G.nneva concerning MH0 Lundin7, budcets and other data relating to ~ the Yean of the Nonsmoker. Georqe Berman, Charles Tucker ar,d ~ Masy Covingt:on will ooordina:te U.S. effGrts to aoqu,ire similar Q N iaformaNion. .7ulian Doyle •_ontactcd Mr. °. Corhat of the Swiss A Asceciaeion with a request for informat.ion. ~ -5- i
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Mr. 1"craan explained that thase groups have boea :ate- gorized zs either "sects" o: "castes" ::ad d_scusscd the prinuipal characteristics of each-ca:eqory. Mr. Aernan expeets that the draft paper on this part cf his total projecC would be available in a few wccks.. fhie ic:formation vill heLp SAW? in Icalina, with varicus anti-smoking groups and will assist in develcpinq appro- priute tactics to maet their ehal]enqrs, 7t was generally felt that a sinilar breakdown by co•.inery should be undertaken since each ccuatry may have anique ehacacteristies wh'_ch would prove enlighteniaq. D. Information zetridval Systens. Mr. Herman reportt:d that of approx:.mately 40 information retr:eval systems surveyed with appropria.t.e data bases, 10: might be ueable. Alternatively, he eould•3evelop a separate data base Cor potential future use. L'. ECor.omic Study. In regard to the acoxcsic pc,tion o`- the study beir.g conducted.in the U.S. and C.X., Y.r. Berman reported that stephcn Littlr.Child, an economist from the U.R. tnow teachi.hg at N.Y.u..), has been wor:cing on his report and Geozge 8erman will aeot vith him in ]ate-NDVeraber to teview the status of the project. F. Question and Ansucr Materials. 7hexe was a lenqrhy disccssion ccncernLnq materials proposed for ese by the national trade associations and the questior.-answor format uaed by the writer of the materials. 2t was deterained that since this matcrial was prizKarily fcr usu by the r.ational trade aesocLation5, the pruscnt :ormat was appropriate. -8- m CJ tn
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SECTION III ICOSI COVERAGE OF FOURTH WORLD CONFERENCE ON SMOKING AND HEALTH BACKGROUND Backed by financial and administrative personnel support from Parliament and - other SwediO government agencies, the Fourth World Conference on Smoking and Health will be held in Stockholm, Sweden, June 18-21, 1979. Organizers of the Conference are: ~ , Swedish Ministry of Health and Social Affairs ~ National Smoking and Health Association ~ Sponsors are: ew S~ Cancer Society Sv{e6#A National Heart and Lung Association ; ~ ..:t s,-_al ' Co-Sponsors ar, V World Health Organization ;csn Othet;~.International_Organizations Sca,adisr viar~ ' tries, especially Sweden, have long occupied a leadership ~:z; position in y~{o,*r;dwidle anti-smoking drives. The choice of Stockholm as the ~ Fourth Confer.~iiC, site is a logical and powerful one for smoking opponents. ~ Y ~tT> ORGANIZATION-ATFENDANCE AND OBJECTIVES ~ Like its thre~redecessor conferences (New York in 1967; London in 1971; and New YorR~'agadn in 1975), the Stockholm Conference is being planned and :;;: organized b*xev+erat weli-known leaders in anti-smoking efforts. Attendance from -throughout the world is being encouraged and can be expected. '. . Attempts will be made to assure participation in the Conference by a wide range of scientists in various fields: namely, medicine; economics; social; behavioral ~ ,,,,,;~~,and natural sciences and agriculture; health professionals; educators; managers; organization leaders; industrialists; fournalists; and others. The purposes of the Conference as stated by Conference President, Olle Hillerdol, and Its Secretary-General, Lars M. Ramstrom, are: 1. To analyze the impact of smoking on health of people and to determine the nature and magnitude of this problem In the world. 2. To review activities that could be undertaken to present unfavorable effects of smoking. 6
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FEASIBILITY OF AN ADVERTISING CAMPAIGN ON,SMAKING ISSUES 1N )NT.ERNATIONAL MEDIA Moreover, experience to date has shown that advertising does not occupy a high priority in most existing national strategies for industry countermeasures. Public relations efforts, and more especially, public affairs efforts such as lobbying, testimony and direct outreach actions for specific public groups have much higher priorities. Overall, SAWP concludes that advertising is neither a feasible nor cost effective countermeasure for ICOSI at this time. OTHER FACTORS ABOUT ADVERTISING In exploring the feasibility of an ICOSI campaign in international media, SAWP ' ' ''found that there is a scattered, but growing body of issue advertising being ! ~y~ ~arried out by companies, trade associitions and special groups 1n various countries and regions. This advertising is tailored to specific situations rVand tightly targeted to specific audiences. Its approaches range from humorous cartoons to hard-hittin radio and tv spots (in the California referendum t vo e .°AIPon smoking resxrictions~. Additionally, same industry-sponsored print adver- '4 ;tising is beipj;Oirected at the U. S. tobacco "family" as a unifying and re- ,;-;:,,,inforcement c~ountermeasure. curren~a&ertising approaches are very specific and parochial, not ';:,;~•~general lzed ora:.qtobal. .14f-ST 1.. .:-= NEXT STEPS : =;O(In SAfIP+?s opinion, the next steps for ICOSI to take with regard to advertising inclofta rri~~ , The SecrArfiat's keeping abreast of the growing number of smoking countermeasure -°>> advertisi~*'Zampaigns taking place In various forms from country to country. ` Companies"and associations should be encouraged to help keep ICOSI's files ~,<W compleWan8`up to date. .~2. As a parir.qf.,,keeping trade associations informed of worldwide trends, the *~M A Secretarfdti"should include updates on issue advertising in its.periodic : reports. ,.,~ . i ~Thus, encouraging interchanges of strategies, concepts, and copy is the role that SAWP sees for ICOSI in issue advertising. For now, it is not a high- .,priority role, but, long term, it could be an important one as the industry ':`;lyearns more about effectively speaking out on public issues. 5 I
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x Juae. CAB~C WbaCOO exQmption is.pending in both Sonate and Isousa. July. Action on Smoking a}lealth (ASH) asks Interstate Camaerce Cowaission for further restrictions Of ssoking on trains. , •3uly. National'Cancer institute publishes maps of cancer death rates in u.s: counties 1950-59. Significantly higher and unexplained lung cancer death rates for white eu,les are reported along the Gulf coast and in the northeast. >W hugust. Hfi1t releares its sookisrg-health report to Congress due the pYevious January. accompanied by a•personal" legis- lative, recoeuaendation by $scratary Weinberger to prohibit cigarettes with •excessiv.Tp »sar'do-u-r~v-.Ts' of tar, nico- tine, carbon nonoxide...• compliance. '.. ae of a 62-page statement to T4'C which deaonstrates gs in advertising lead the companies to authorize iolations ot the 1972 agreement to display health `P+eaks` from PTC in several newY media to the that the Coameis`san wi11 charge cigarette companles p~e,tpber.ber. ;!TY' gets $50,000 from the National Cancer Ynstitute evelop a means to measure carcon monoxiae yieias %1ong_ ..... ts 'tar• and nicotine measurements begun in 1967, . Re~. Drinan (D-Nass.) introduces a bill to stif- ~ g in federal buildinqs and in interstate transporta- ' ~ i smoki.nq-health legislation, segregate or prohi.b.it I e cigaretteTieaTth warningV require "tar• and nicotine to appear on packages, end the federal preemption of ~ tion~and increase the federal cigarette excise to pay for u~rFlicr heart-lung research. January. ICC administxative law judge propoaes to prohibit a ; smoking i~-'ireod sersice cars on trains, responding to ASN request of July, 1975. b j ~-.w...,..• ~ ~ I
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(O4INT RM AS.IJR ~ ASED ON TH O.IA~C_OST3 $TUDY S•7. 17•IS• ERnPOGED THAT COUNTERMEASURES BASED ON TH[IS VERY IMPORTANT STUDI SHOULD BE THE: SUBJECT OF A FURTHER HORKSHOP TYPE. MEETING TO BE HELD N1TH' THE ASSOCIATIONS IN TNE F1RST HALF•OF NEXT YEAR. S•B•• THE DEVELOPiIEND' 4F APPROPRIATE COUNTERMEASURES WILL BE CARRIED OUT' IN CLOSE CONSUI.TATION WITH GEORGE`. BERHIAN WHO LEADS THE SOC'IAL COSTS STUDY AS A COHSULTANT TO SAwP• 1NTF13N9I[QNAL PIISSlVE SMOKI~IG SEh1INAR 5.9. Afi THE 1COSI NtEETIRG IN LAUSAdJfJE IN NOVEMBER 1977, SAW? WAS REQUESTED TO EXPLORE;THE FEASIDI'L1TY Of,HOLDING AH INTERNATIONAL• CDNFkREHCE ON PASSIVE SMOKIh6. A REPORT MAS PREPARED DATED FEBRUARY 15T 1978• SINCE THEN THERE Hi4YE BEEN A NUFIBER OF C'AMMENiIS AND SUGGESTIONS IN FAVOR DF HOLDIN6 SUCH A• SEI4IHflR• 5.10.• THE WORKSHOP OH 'ENV7RONMENTAL TOBACCO SMOKE EFFECTS ON THE HON-SMOKER'.TOOK PLACE IN BERr1UDA MARCH 27-29, 1974•, IT WAS; ORGANIZED BY RAGNAR RY.LANDER,• GENEVA UNIVERSITY; TOGETHER WITR M0RT01J COR•N, PITT'SBURG UNIVERSITY AND KAYE H..KIIBURN, UNIVERSITY OF WISSOURI. THE'110RKSHOP WAS SilPPORTED BY GENEVA UNIVERS1ilY THROUGH A GRANT FRO'rI "FA&R14UES DE TABAC REUNIES', NEUCHATEL, SNITZER'LAND. THEN THERE WAS THE' BAVARIAN ACADEMY SEMINAR ON 'PASSIVE SNOK•ING. IN THE NORKPLACE' HELD I:N MUNICH, MARCB 31S•T AND APRIL J1ST 1977. THE V.ERBAND IN PARTIC'ULA'R HAS SUGGESTED A NEW SEM[NAR AS A FOLLOW UP TO THIS ONE, AND THE IDEA DF'A FURTHER SEJ'IINAR HA'S A•LSO' $EEN BROUGHT• UP IN THE EEC CONUMER:ISM TASK FORCE. 5 11. IN VIEW OF THE PRIPUE IMPORTANCE OF THE' PASSIVE SMOKING ISSUE WITHIN THE'uHOLE AREA OF SOCIAL ACCEI'TADILITY, ANJk THE FACT THAT 1T IS• CONSIDERED TO hE ONE off THE INDUSTRY'S "BE•ST. CASES", WE PROPOSE THAT A NEW SEMINAR BE DRGAN.1lEll TO TAKE PLACE BEFORE THE END OF 1900•
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SECTION II FEASIBILITY OF AN ADYERTISING CAHP.AIGN ON 110K G I SU N NA L ME A BACKGROUND Very early in SAWP's work, the.concept of ICOSI's running advertising campaigns on smoking issues came up for consideration. The concept involved magazines with international circulation that might provide suitable vehicles for adver- tisements on various smoking issues, particularly pub}ic smoking. Ads in such 'media might be effectively aimed at their high proportion of "opinion leader" ~,~~freadership. Perhaps, such media might not be subject to as many advartisirtg r restrictions as those imposed on smoking issue ads in most countries. ~ '~ ,;From the outset, SAWP realized that the concept was open_to many questions. nunemnereS3,•'lj IYas rerc cna{. 745 IeaSiur,lcy inUuru a?. ~easL De eA{1lRrErp. . ;z' ICOSI also hadGWny-reservations, but it authorized a feasibility exploration ~~,~by SAWP. Y ,i .4/ ;,.&;,;,.KEY OUTCCME QE• THE EXPLORATION ~ - i... w, The reservations."of SAWP and ICOSI were justified. The working pariy's exploration A~'has shown an=fss~e advertising campaign in international media would not be a ~4,,feasihk*undec~tadRing for ICOSI at this time. Howeven the•;`•,o~i,c0,oration brought to light a number of factors about issue adver- r^4 matising by thes.:lndustry. On balance, it was a necessary and useful exercise. ' uP '~ ~~`''~OTHER FINDIN95-OP THE EXPLORATION ,•~,~ y......... •` . g~In expioringj;.ttra:feasibility of issue advertising campaigns in international r~media, SAWP hai,,concluded that there is no particular international magazine .=,~y;,~readership adtffe~rice who can or should be singled out as a high priority target y.,;for a particrtAQxmessage. For example, research suggests that public saaking not viewed as an important public issue by very many U. S. opinion leaders. , •"::?'Smoking issues appear to be generated and sustained by a relatively small ' leadership group of "public interest", activists and political leaders who use extensive media coverage to arouse public controversy. ac,. .,. ., Further, research indicates that It is extremely difficult to translate general ICOSI positions on smoking issues into effective print advertising copy for an international audience or for that matter, almost any other audience. With the exception of "cartoon" approaches, copy that would be clear and persuasive in one country would likely be ineffective and unacceptable in another. 4 Ul V , ~-, 0 w w R)
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i tCOSI APPROACHES TD "SOCIAL COSTS" ISSUES These funds would be used to contact and retain consultants for planning, reviewing past work,.defining the problem, firming up avenues for future research, and developing detailed actions plans. The bulk of the "social costs", work'for ICOSI would be accomplished during 1979. A final report outlining findings, conclusions, possible strategies, and counter- measures recomnendations would be presented to ICOS2 in winter/spring .1980. Prior to that, SAWP would provide ICOSI with periodic progress reports. hiost importantly; the research effort would generate a position paper on "social costs" prior to,the Stockholm World Conference in June 1979. In addition to the $45,000 (U.S.) needed now, SAWP recommends that ICOSI also , make a 1979 budget appropriation of $330,000 (U.S.) to carry out the work planned during the balance of 1978. ' The $330',000 (U.S,).estimate is high. However, the problem is large and serious, and the deadlines are pressing. Every effort will be made to reduce final cost fugures below estimate. Commitments to spend the $330,000 (U.S.) would not ffl' checks its plans and proposed action program with ICOSI. 'l~ be made untfr;SA ~ *m *11~ d ..-; C..Y ~ .Sw N:~:Mil 15
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1 2 3 4 5 Hon. Karen Overstreet Chapter 11 Hearing Location: Courtroom 427 315 Park Place Building 1200 6th Avenue Seattle, Washington 98101 Hearing Date: December 18, 1998 Hearing Time: 1:30 p.m. Response Dates: December 15, 1998 (Statements in Support December 17, 1998 (Objections) UNITED STATES SANKRUPTCY COURT WESTERN DISTRICT OF A7AS&INGTON 11 12 In re ) No. 98-13604 CELL?R0, INCORPORATCD, ) STIPULATED ORDER APPROVING } SENIOR 22NAGUMENT RETENTION Debtor. ) PAY PROGRAM } } ) AT SEATTLE, WASHINGTON, IN THIS DISTRICT, ON THIS DAX OF DECEa43F.Et, 1998. Based on the "Objection to CellPro's Retention Pay Program" (the "Equity Committee Objection") filed by the Official Committee of Equity Security Holders (the "Equity Committee"), a hearing was scheduled for December 18, 1998 in the above-captioned chapter 11 case of Ce.L1Pro, Incorporated ("Ce11Pro" or the "Debtor") to consider the Senior Management Retention Pay Program sttTAOW, a9=2!'a7t 6 C2.1SS s'22PQLAStf) OUDOt WPAOV2NG l1HxOh IqNMOWW1' xtTRNTxON Pl.7t !lcrzsi20PUL OoA7OR11220K PTACUW )aqa 1 3699 wSlahlre soulevarC. Sulte 900 :97066.aoe rrn;~~V Los Mqelas, cali!o[nia 9001v telepnone: (2131 ]S1-l100 FacsI.alle: (2:31 251-3286
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SUHMARY OF BASIC CONCLUSIONS AND RECOWNDAiIONS 3. a; potentially very threatening. The anti-smoking arguments involved in the "social costs" issues could be translated into economic incentives for smokei~, governments, and businesses to participate in anti-smoking programs. "Social costs" attacks on smoking Involve mixtures of unproven medical assump- tions, dubious social account- ing techniques, unbalanced economic rationales, and untested assertions'based on statistical associations•. ~. r: a.l J ~.a --=z; ':;.. . 4. `DOveloping industry counter- ,Rures to attacks based on raeW `"so4ial costs" issues will 'favdlve several disciplines 'iRTuding statistics, eco- nom€csN 1aw, and the health •scfences. q''' a :~ ,•-•- ~~A 5. 'W1a formulating strategies aak'countermeasures on "social r:~ : =q ..costs" issues; the industry have to develop its own `n.evi,resources, research materi- and a1s; and reservoirs of exper- ,;tti3t from several disciplines. ~~~~n-this regard, "social costs" 'tszues are very different from -;tbe~,'public smoking issues with •.wh,ich the industry has been ~~ea?ing for.a number of years. _ 6. ICOSI is the appropriate group to take a worldwide leadership position for industry approaches to "social costs" issues--always bearing in mind that linkages with national trade associations will be a key to this work as well as to almost all other aspects of ICOSI's operations. B. SAWP reconmends that: 1. ICOSI authorize SAWP to retain consultants, comnission research studies, Involve caopany personnel and take such other steps as are needed to develop a "social costs" position paper.plus recommend- ed strategies and counter- measures for the industry. 2. The timetable for this effort should include final completion of all work by winter/spring 1980.with periodic progress reports to ICOSI and a posi- tion paper prior to the Stock- holm World Conference in June 1979. 3. ICOSI should authorize SAWP to spend up to $45,000 (U.S.) during the balance of 1978 to contact and retain consultants, - flesh out the problem, firm up possible avenues for counter- measures, and develop detailed action plans. These would set the stage for full-scaled oper- ation during calendar 1979. 4. ICOSI's 1979 budget should include an appropriation of $330,000 (U.S.) to cover con- sultant fees and other expenses related to the "social costs" effort being proposed. This appropriation would not be spent until the appropriate top-1eve1•group in ICOSI has reviewed and approved the detailed action plan in early 1979. The $330,000 figure is only an estimate and may be high. Every effort will be made to control expenses. However, the need to prepare a position paper before the June meeting in Stockholm will require a high level of expenditure during a relatively short time period. w 0 .. : J 3 W U O
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V ASH - ACT70N ON SMOI(Z1VC AND MLTR National Readquertorss 2000 N Street, N.W., Washington, D.C. 2006; PFounder and Executive Director, John !. 8anzhat II2, Saq. ded in 1967, it c]'.aims to have 24 chapters in the U.S. and 2 i foraign countries (4/76) with nev chapters "cropping up daily.• w bm+ r atiekers It bi thl n lstt b bli tt h pe , pu es a rmon y a s a er, u ons '~ has order forms•for publications and materials. It is "a non-• .g profit charitable organisation concerned ~so~la_l_y with the problem unoking and represents the nonsmoker aza fights for his rights inq bard-hitting and affective legal action." es and solicits individual contributiona It e oura . nc g ___ 3 ursued an effactive uo a sfull ASH it h s ' d t A a s c s y p ccor o urse of 1eqkion" leading to free brordcast time for anti- smoking messa , separate no-smoking sections on•airlines and teratate tra61.nd buses, and removal of little cigar commer- cials fron toj§esfi saon. it has petitions pending in several govern- ment agencies 16»o smoking and health question. As a result of ' e of them, Awil Aeronautics Board propoaed in 1976 to pro- 2 cigar a pe smoking aboard commercial planas. oXftt ASf! !s c' `xating almost ontirely on the "passive smokinq" sue Vj4,.pla reaponsit•ility tur the first state-wide law (Ari- aona) ic king in certain public placss. Its chapters are scities where similar_.moves have taken place. W11TAS aeokara to sue for their "riqhts, " espec.ially in en~~es t e work plao . SanshafIs motto is, "Sue the 8aatards." ASH's leie und raising drive was aimed at The Tobaceo In- itute, sayl ou and I musc defeat these Pied Pipers of death, -4~sease and " ~ Mr. 9anz ho teaches law at George Washington University, kea biaaelf abls for radio and television interviews and ~scussions an as been opposite TI spokesmen on many occasions. VM&rae ox ASH'sa pS~apors are Drs. Alton Ochsnar, Richard Overholt,• P~,~Na Rail7erlne a. .SCUr.9ai, anu wawwuaa..a n+iw~a+r .e.., o..av,a .wu ~~~,. n Landers. XNS - ALLIaNCS OF NONSMtlRM9 a Chicago, Ill., 9/76. It is an aotive group lobbying to get 1~king banned in certain public places. (over) I ; 0 r d;'
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CURRENT STATUS OF ASSIGNMENTS: One assignment now in progress to be reported by SAWP at the 1979 winter/ spring meeting of the executive committee. 13. Analysis of social acceptability work now underway in other countries: Note: At this meeting, there.aiso will be reports on: ,-.., - ~ tF....ry Y.t.: v., 17 a) a detailed analysis of ICOSI's own opinion survey. b) the smoker seminar scheduled for September 1978 before the U. S. Congress in Washington, 0. C. c) the next U. S. Surgeon General's report due in January 1979. d) the results and strategic impiications of the November 1978 statewide voter referendum on smoking restrictions in California. Four assignments to be presented to ICOSI's governing board at the Leeds Castle et~ating: on September 12-13 for their decision, ratification or suggestia&~'j'~for future SAWP study. . 14, Re~pn~s~C:on feasibility of International ad campaign. 15. Re ~n recommended lans to cover the Fourth Norld Conference on mo fiml a3 ea th at tock o m n June ;_x; 16. Re or{'°bn contacts with Rondou concernin possible smokin conferences U:h.jv s d~ to acco tra e un ons. X4 $7-7".'u Re~~ on SAWP's recommendations for stud in gand develo in ICOSI sta tx on the soc a costs t rust o t e soc a accefltab tY iss101~ ' I
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APPENDIX A CURRENT STATUS OF THE 17 ICOSI ASSIGNMENTS TO SAWP I Seven assignments have been completed, incorporated into other assignments, or passed along to ICOSI's governing board or executive committee for final disposition. 1. Initial concentration on gublic smoking - reflected throughout SAWP's work program 2. _A,navl ze, current national and inter- n_ational data ser es - completed 3. Examine smoker/nonsmoker differences in a" tt3tude5. an3 ~ee nTi g~" - to be included in opinion survey (see below) 4. Summa scientific data on public ~ smo ,,. r 5. A~nal~'~° `f~_-asibility of International Sec~t fi~°''~S~_tu_dp~~~a~s_ibility,.of.standard oo-~ro~"ah surveys - incorporated into Public Smoking Position Paper. Has been approved by the executive comnittee. - SAWP work completed. Now in hands of executive committee. - study completed. Survey proved feasible. Preliminary report on opinion survey to be presented at September meeting. 7. A vr c~ou.ntries to be covered by y`.FY future wo - final decision has been made by rk'o executive committee. :-ss+ .x*'s ~ Five ass ~jnm~nts which have been deferred until the Secretariat is operational and can carry them out. x ~;:a 8. An ICOSI-saonsored meeting of national trade associations. 4- 9. A periodic regulatory review and u~,date of national trade associations. 10. A regular scientific update system by ICOSI for national trade associations. 11. Other information systems to keep national trade associations fully Informed on smo ng issues. 12. A 1979 ICOSIpublic smoking "workshop." 16 J
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MEMBERS OF WORKING PARTY ON SOCIAL ACCEPTABILITY ISSUES *Mr. Dennis Durden Vice President R. J. Reynolds Industries, Inc. Winston-Salem, MC 27102 Mr. Richard Haddon. Manager, Public Relations British-American Tobacco Co., Ltd. P. 0. Box 482 Westminster House ~ ~7 Millbank ,~;tondon SWIP 3JE ! ' England P, 4 ~ ..~ ~.~~.,.~ Ulrich HerteN ^='~Oirector, Markq~iag "Martin Brinkrqnw A.G. f' ;=YNeuer Jungfer93tieg le ~-'P. 0. Box 30 .0v~0 2000 Hmoburg;3i~ ,rWest Germany;;~ q . ,. .~'~ !E r°"=~y C ..? ;k:.. F.iffln4 .,~,.,,Yice rrAideitit;'Rlanning ..~ R. J. ReynoldawTabacco Company ; ,Winston-Salem,~1{C 27102 ~ ~_.., y ~y :.....-, ~'.grMr. John T. LAndry , ~.~,Senior Vice ~esident - Philip Morris~-;'Iiic. .100 Park Avens4-_~; „ ~New York, HY'10017 : ,yr "Mr. Colin R. MtCay =;Chainnan & Managing Director :'.%01Jden's Imperial Tobacco, Ltd. Boundary Lane P. 0. Box 48A Liverpool L691DT England *Chairroan **Associate Chairman i Mr. James J. Morgan Vice President, Assistant Director of Marketing Philip Morris, Inc. 100 Park Avenue New York, NY 10017 Mr. Donald F, L. Needham Manager, Strategic Planning 6allaher, Ltd. 65 Kingsway London WC28 6TG England Dr. Murray Senkus Director, Scientific Affairs R. J. Reynolds Tobacco Company Winston-Salem, NC 27102 Dr. Edward Stern General Manager, R&D Resources .Gallaher, Ltd. 65 Kingsway London WC2B 6TG England Mr. Christian Vogel Chief of Public Relations Division H. F. & Ph. F. Reemtsma Parkstrasse 51 2000 Hamburg 52 West Germany
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-2- the joki. I.B.M. expects executives to wear white shirts and dark suits. K.F.C. expects store employees to wear a uniform, etc., etc. Within very wide parameters, bosses can get what they want. Faced with bosses who want no smoking, our customers can choose to become nonsmokers or they can choose to work somewhere else. In Chapter B,.Berger will do a superb job with the 1983 conference, but that's not wholly germane for our current situation. Today's more crucial conferences of anti-smokers are those sponsored by business coalitions all over the country. Attendees can't be characterized as zealots or anti-free enterprisers or ivory tower theorists. They, look like our colleagues in the RJR family and their expressed motives are the same as ours - enhancing the values of their sfiareholders investments. They are convinced that banning or discouraging our products is one way they can further the basic corporate mission. . * * 4 ain, I appreciate the chance for review and commentary on this mportant document. cc Mr. C. Tucker Mr. R. Sustana k--ftr. S. Witt
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8/7 Mr. CT: Dave Narr talked today with Mr. Hobbs about Durden's presentation per the attached memo. Dave said he thinks they have accomplished their objective. Mr. Hobbs is going to listen very carefully to Durden's presentation, and then ask him a few questions. (He did not tell Dave what these questions would be.) But, he said Mr. Hobbs feels that it is very clear that the accountability for dealing with smokin and-h_~ealth problems is Tobacco Public Affairs'. Becky I
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ICOSI APPROACHES TO "SOCIAL COSTS" ISSUES CURRENT SHAPE OF THE ISSUE The present shape that "social costs" issues are taking in public debates can be gauged from statenents made by Secretary Califano when he launched his most recent attack against smoking in the U. S. The launching was made from a"social costs" platform. Some Califano testimony before the U. S. Congress is typical of statements being made by smoking opponents in many arenas in many countries. Here is the shape of the issue as described by Califano. "Cigarette smoking is harmful to individuals and is a multimillion dollar public health problem for the Nation. It is also a major problem for the Federal Government which in fiscal 1976 paid approximately $40 billion of the Nation's $139 billion health bills....... " "The econanic toll.that these diseases Impose on the country is enormous. It has been estimated that in 1975, S5•to $7 billion were required to treat'saioking- relb,4d,illnesses. Another $12 to $18 billion were lost in;WodUctivity in the workplace due to.absentees as retated,to smoking. These costs do not reflect wages orrprodiicti'vity lost due to early death nor do they reflect :'% yp' the"co3t of household fires--about 13% of which are estiAi~fed to be related to smoking." . ~ Notice fou(ccl;tical outlines in the shape of the issue as set out by Califano: b.1:.Thp argument against smoking is based on a strange amalgam of unpr"wmedical assumptions) dubious social accounting techniques, unbalan:ceeeconomic rationales, and untested assertions based on statist^fical' association. c.._~Sreking Is being held _res ns~i__ble for a large part of today's,-.,,high tazes,medicaT expenses s and other social service costs. d."'iVmention is made of any benefits generated by the tobacco industry. . a. 4=S*king is characterized as a pirobiem 'of pu blic finance ~'iRher ,tkan. Personal 1 ifestyle. Smoking opponents in other countries could be cited, but their arguments L would take the general outline'as Califano's. Government officials are not alone in trying to shape the "social costs" issues. Many businesses are also doing it directly or indirectly. For example, insurance companies in the U. S. are advertising that they give lower rates to nonsmokers. Upon investigation this turns out to be more a marketing ploy than an actuarial fact, but nonetheless, the advertisements continue. In addition, U. S. asbestos manufacturers are attempting to have cigarettes taxed to help pay compensation to disabled asbestos workers. Finally, some companies and units of local government are refusing to hire smokers on the basis that they generate extra expenses. 12 9
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CONFIDENTIAL RJRT POSITION PAPER SOCIAL COSTS OF SMOKING ISSUE Anti-smoking elements nationally and internationally charge that smoking imposes a social cost on society in terms of lost produc- tivity and increased medical and other costs. Smokers, they say, should be made to bear these costs more directly through imposition of additional taxes on cigarettes, the proceeds of which are to be dedicated to offsetting the social costs of smoking. BACKGROUND " Up to now, most work on the Social Costs issue has been done in .the U.S., Canada and the U.K., by anti-smokers seeking to statis- tically attribute some proportion of the annual incidence of lung cancer, heart disease and other disabilities to smoking. An annual cost to society is calculated based on health care costs, sick pay, death benefits and other costs alleged to be associated with smoking. The explicit assumption is that specific costs can be identified and ought to be imposed directly on smokers so that non-smokers in society will not have to share this health care burden. Implicitly, anti-smokers assume that increasing the cost of cigarettes will reduce smoking incidence. IMPACT Any substantial increase in "health taxes", or any other method of making cigarettes bear an increased proportion of their alleged social cost would have a direct negative impact on industry volume and pricing flexibility. Imposition of health taxes under the guise of achieving a more equitable distribution of the so-called social cost of smoking would give anti-smokers a policy lever to minimize smoking by making it prohibitively expensive. By arguing that smoking's social costs fall disproportionately on the Third World, anti-smokers could attempt to attack smoking in the only segment of the world market which is showing rapid growth. RJRT POSITION Social Cost is currently the subject of an INFOTAB task force study. Positions and implementing strategy are expected this year. e n EXHISrr_./5'_ DeponenU!Lm&n Dale Rplr...__
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tCOSt COVERAGE OF FOURTH WORLD CONFERENCE 0N SMDKING AND HEAL,?H 3. To pranote international collaboration to curb smoking. The program is being organized to Include three types of sessions: 1. General sessions: These will be comprehensive presentations dealing with each of the three stated purposes, 2. Satellite sessions: These will be for detailed discussion of specialized issues. ~ G 3. Contributed papers: For project reports and presentations of scientific research. # -X. WHAT ICOSI SNUWLD EXPECT FROM THE CONFERENCE Based on the-xe3ults of the three preceding World Conferences, ICOSI should ~ expect the Cat*ence to try and achieve the following results: "`v4 1 . He af~iwworldidbliitnddia ca b Cf _Swe uc a meovergeecauseonerence • ^ : / act~#v riifT 6e treat as a med fa event and will be the focus of~arapress attention. t Thb"unaeiling of new themes to attaak'smoking and the charting ' ~ ia caE . ~s=~d 3. ~' o~nw crses to harrass the in~ustry. o h?1^y al reinforcement to promote intensified Sctmdfic and idealo ic ~ e oc~sy esiabiished anti-sou s. 6^" V ' i 4. Pressures to activate. new anti-smokin efforts in countries where ~_: the,~.p,L~evious y have not exist or aveeen insignificant. ~,...,~ .+ : . S. At s to have the ublish,~ed, Conference proceedings accepted as . ~°~ ' ada t anaT stron evi encd e against srtaTin .d . ~_. 6. ~Atte,m ts to force stron e international linka es between various nationa~ ant -~ swk ni-g effo ~ rts. . >y~l ICOSI'S PRESENCE AT THE FOURTH WORLD CONFERENCE SAWP recomnends that ICOSI's members and their national trade associations take no part in the formal proceedings of the Conference. 7 ~ a 0 r ! J u a a ~ I
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SECTION IV CONFERENCE ON SMOKING ISSUES PROPOSED BY C K the tobacco trade union sponsor a conference on smoking issues. In his con- BACKGROUND In the spring of 1978, M. Ren4 Rondou contacted a member company of ICOSI. M. Rondou is president,of the Tobacco Workers International Union in North America and also serves as executive vice-president of the international union which encompasses the tobacco workers plus allied unions. In his initial contact, M. Rondou sought a meeting with representatives from tobacco 3manufacturing companies. His stated purpose was to discuss his proposal that tact, M. Rondou indicated that his concept of the conference would emphasize ~ health controversies as well as other issues facing the international tobacco :._ community. apr,pi Following M,~itlou's request for a meeting, it was decided that SAWP would r u~ be the apprppriate vehicle to follow up on behalf of ICOSI. .,~ F'.....1 THE VALUE OF COUNTERMEASURES BY TRADE UNIONS In carrying outlhe follow-up, SAWP's initial conclusion was that all contacts :.~yith M. RonchWAst be handled with great discretion. The concept of having "•.L.,~ trad~,u~ion rl=1~i.~ si.~s to help carry out Industry countermeasures has many obvious ,;~,,.,~ appe" However, it's equally obvious that labor's participation in counter- measutwq shourd{,be parallel to, but not directly linked to the efforts of ICOSI. , ~ VF: ~ ~ VALIDITY OF Ii.~RONDOU'S CONFERENCE APPROACH j ;JHaving concluded,that trade union involvement could be a desirable supplement , to ICOSI's p~bms, SA1JP next examined M. Rondou's proposed conference. SAWP ,~;;y concluded that the effectiveness of trade union countermeasures will be greatly enhanced if ~ focus directly on those issues that most logically relate to '±~,.4~ the'traditiona~lrsconcerns and strengths of trade unions. Specifically, SAWP feels I ~, that any union-sponsored conference on smoking issues should concentrate on ~Q!:,r'topics like: the economic and tax importance of the tobacco industry; the employ- ment generated by industry and Its suppliers; the importance of maintaining personal freedoms; and the need to curb excessive government interference with "~ individual behavior and life style choices; all on a country-by-countr'y basis. SAWP feels strongly that union-sponsored conferences should not involve them- selves with questions of smoking and health and other me f-cal or scientific matters. Initial conferences should be oriented to issues in specific countries. CONTACTS WITH M. RONDOU Three members of SAWP were delegated to coordinate the follow-up contacts with M. Rondou and give him SAWP's view on union countermeasures including the proposed 9
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y 12/17/98 THU 12:56 FAX 608 257 2508 HCRPf1Y & AESHOp SruTMFtJ. TREISI'ER fax:213-251-5288 Dec 16 '98 19:11 P.07 1 2 3 5 6 7 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 4 the payment of Incentive Compensation to the payment, in full, of allowed claims of general unsecured creditors, vithout; interest. DATED: December , 1998 SvaDd2TTEa BY; THE HONORABL£ IUiREK' OVERSTREET UNITED STATES BANKRUPTCY JUDGE F'RA K A. MEROLA, a Membe: o STUTMAN. TREISTER & GLATT PROFESSIONA£, CORPORATION' General Bankruptcy Counsel for Debtor and Debtor in Possession Agzeod to as to form and content: Jo n R. R:.zzardl, Esq. Cairncross &.Hempelmann, P.S. Counsell for Creditor's Committee iam ;y.'RAmeker, Esq. Murphy f Dessaond, S.C. /4 ir Counsol,for the Equity Committee KimbexTyr osm augh, Esq. Bogle & Gates 'Counsel for Senior Management rMaozasm oaruui a.crwwzi.G snrtoti ,awmaxr asrRW'rzar aJ.r rnoc+a.u e.y. 4 197aS6.4oc aWOWWW. 'kss.aa . aJ1ts *rc.:..xaWc oesoaarzca 3409 rilsniss loal~sd. .ialc. foo Las Upgal4s, Calil.rai• 90010 r.i.ynen.: 13111 xsl-sioo raaiyA,l,lti .(:17, asl-ssas
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1 2 3 4 5 6 8 9 10 11 12 13 14 23 24 25 26 a. Subject to Paragraph b below, the Incentive Compensation provision shall be amended by deleting the current paragraph under the heading "The Incentive Program" and replacing it with the following: The Employee wi ll be entitled to be paid on the Confirmation Date an incentive payment. This payment will be made in a lump sum (less applicable payroll taxes) and will be determined based on Ce11Pro's non-cash assets (as of September 30, 1998) that have been converted to cash as of the Confizmation Date. For purposes of applying this formula, the Company and Employee agree that cash received from the following transactions shall not be included: (a) the consideration received from the sale of substantially all of CellPro's intellectual property assets to Nexell Therapeutics, Inc. or the conversion of that consideration to cash; (b) the profits generated by CQl1Pro from sales under the Distribution Agreement with Baxter Healthcare Corporation; and (c) the funds returned to the Debtor from the "international escrow" pursuant to the Settlement Agreement with the Patent Plaintiffs. Accordingly, if on the Confirmation Date CellPro has received at least $5.0 million (the "Hurdle Amount") from the sale, disposition or other conversion of such non-cash assets, the Employee will be entitled to an incentive payment equal to one month of the 8mployee's then-current annual salary, and, if on the Confirmation Date Ce11Pro has received an amount in excess of the Hurdle Amount from the sale, disposition or other conversion of its non-cash assets to cash, the Employee will be, entitled to an additional incentive payment equal to one month (or a fraction of a month) of the Smpl oyee's then-current salary for each increment of $5 00,000 (or fraction of such increment) received. in excess of the Hurdle Amount that is b. Messrs. Handfelt and Bishop hereby subordinate YTY4QLA^ID oRD81 >1pTROVIDM SLYZOA K%JL1aA6.ZTT RSZSNS:ON PAr azvT)aN. T1Sxsssi a aLAT2 nE0?ESSXCttL1L CVRP0AA220N PRa6PAM hp• 3 3699 Al_a~,;z* 3W1WiXd, Stiit• 900 Lo. Ing.lea, c11i_°osna $0010 , :el.pho"u (2131 2SL5100 ?acaimil.: (2_3) 271-S2Y4 :95o56.doc
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Subject: D Comment on Your;INFO~P "Social Costs" Monograph .. r, ~ r" -^iiC i r~ ,.... lilv.V~~.vl..• N1 .~ C :^„ :... r ... ....:i RFC;~, v ;•;3 S~ NOV I 6 '84 Date: November 13, 1984 From: Dennis Durden To: Mr. R. Marcotullio Thanks for letting me see your November 9, 1984 memo. Since we started studying these issues seven years ago, our competi- tors have grown and become more effective in at least three critical ways. Our competitors have enlisted growing business support for anti-smoking•effor~ts. They have spread their activities to public arenas at state and local levels, including initiative and referendum campaigns. They have spread their activities to private policy arenas like the workplace. Using these three strategies, they have by-passed our traditional public affairs defense lines of lobbyists in D.C. and the State Houses. The net result are increased social and economic pressures on our customers, pressures which the tobacco industry is very hard-pressed to counter. In view of these strategic shifts of recent years, you may want to rethink or supplement Chapters 6, 7 and 8 in the monograph. kvents may have overtaken the original study outline, so much so that these sections may not be timely as they ought to be. Without modifica- tion, they could be like documents of the French general staff - manuals for the previous conflict rather than the next one. Den Vyl is probably right in Chapter 6 when dealing with "public authorities" and the "state" in traditional public policy arenas. However, our colleagues in other businesses are making it ri~ vate business policy practices to discourage smoking even where there are no public policy proscriptions. For example, there are strong anti-smoking activities by business in N.C.'s Research Triangle areas as well as in our textile industries. This occurs even though North Carolina's public policies are the nation's moet favorable ones toward smoking. Concerns with civil liberties and public policy-making have little to do with this fast-growing sector of anti-smoking. The growth reflects•the decisions of managers to encourage certain types of behavior by the employees of their businesses. u, ~ ~ ~ N ~ This same theme carries over to Chapter 7. Today, employers are telling workers that being (or becoming) nonsmokers is the route to being hired, retained and promoted. Companies expect people not to drink on the job. More are expecting workers not to smoke on or off o RJRI FORM 2121-Rw.7/70 W N W ut o ~c n~~rr_1 C. Deponent ~~~~ Dote Rptr.__ ~ ocro.oor J
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ICOSI APPROACHES T;0 "SOCIAL COSTS" ISSUES SAwP believes that the current shape of the issue is ominous, However, it appears that the issue is still at a stage where the right kind of industry response and countermeasure could influence the ultimate shape that the issue takes in public discussion and debate. KEY INPLICATIONS FOR THE INDUSTRY Given todayts favorable climate and the ominous shape of the issue, SAWP perceives several very serious implications for the industry. The first is that "social costs" issues add a broad, new economic thrust and rationale to anti-smoking efforts. In practical terms, society would try to make smokers pay for alleged damages to society. While cigarette taxes are already high in most Jurisdictions, this new rationale would furnish a basis for raising ~Jthem even higher. Smokers would pay these taxes not just to enjoy the pleasures T' I of smoking, but to reimburse society. &IMIPaying higher taxes is one serious implication. f~ , \ ;,.,.*qY Another is thed*orporate'managers (as well as public leaders) could feel s.Iftk economic pre5sur.,es and economic incentives to Join anti-smoking efforts. Today :f all business"es~are seeking ways to cut spiraling medical and hospitalization ;rcosts. If erno~ managers become convinced that,anti-smoking efforts will help their ccmpan,~profitability, then SAWP can visualize an avalanche of corporate- sponsored • sponsored anti;oking programs. If so, such programs could easily dwarf the present efforts carried out by governments and public interest groups. They cope, more depth, and more persuasiveness. At some point in :~='could have mo~ .:j the future, dS~ftors of corporations may be asked to publicly justify their ,,:~,.w emplo~ftw smoMpg policies. Shareholders who oppose smoking could open questions of £i.dwiaryr.r~onsibility and force directors to explain why they haven't discouraged e`myees from smoking when doing so would apparently lower insurance ':~ costs and ot~,~related business expenses. =-J Considering rastithese two major implications, SAWP believes that the industry '.y.,.1must begin to•-qu)ckly and seriously address "sociaT costs" issues. 4:.T CURRENT POSIMO OF THE IHINISTRY ON "SOCIAL COSTS" ISSUES ~ Considerin9 the strength, shape and implications of the issue, the industry's :~ current position Is not a strong one.' True,-there Is industry awareness that y„u the issue exists and scme work done pointing out the tax, economic and job benefits that the industry provides to society. Also the industry is aware r""Zthat social costs arguments against smoking are based on shaky ground. However, "-''~Ihere has been no systematic industry approach to the issue, no body of or9anized research, no expertise, no experience in dealing with the issue in the public arena. In other words, no strategy for countermeasures on "social costs" issues. By contrast, when dealing with public smoking issues, the industry has had a firm systematic grasp of all research studies, strong marshalling of experienced legal talent, and much experience in publicly coping with the issue. In short, the industry knew where it was coming from and where it would like to go. Not so with "social costs" issues. 9 r . J
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CONFERENCE ON SMOKING ISSUES PROPOSED SY TOBACCO HORKERS TRADE UNION conferences. In turn, one member from that delegation contacted M. Rondou by telephone and gave him a brief summary of SAWP's position. M. Rondou appeared to accept SAWP's general conclusions and wanted to have more speci- fic discussions. It was agreed that a meeting would be set up. However, M. Rondou's schedule has not permitted his following through on the phone conversation-with the SAWP member. NEXT STEPS 'yFor the time being, SAWP feels that no further efforts should be made to_generate 01q IYIWICI16avY/q1: Y1 Gb%, 1Yn IINw 1'N 1\YINYYr IIKIII 14 1111 YJ7YCTSWIIiIO~If rw- "Va'''tuctance to have representatives fran individual manufacturing companies dealing ~with M. Rondou. In SAWP's opinion, future discussions and agreements with M. ~ Rondou should be made by ICOSI's Secretary-General on behalf of all manufacturing ~~companies. iherefore, SAWP believes that only the most perfunctory follow-up with M. Rondou sho~f be undertaken prior,to the Secretary-General's being able to undertake thiTwork personally. Because tra*Won participation could add an important new dimension to industry countermeasuras a~~~SAWP believes that discussions with M. Rondou should have at ~~~`~'least a medi®n,;>Tevel priority. T°'R ~n:.~i~.'t , . .._ . . . .. . . _ . . . . . . . . .. . ~ ~---+ u~ :....._, . . ; ..:~_. ,lq .r rd . S 10
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1 . 2 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 JJ/// b. Messrs. Handfelt and Bishop hereby subordinate sl•cfuMN, Tarxszrx . ararT CTIP7GSED ORDBl: h4TROVD0 3E2COII MW[ifl6NI R8?CNLION YAY ttt08CS52OlAL CORVORASION tRbOPM Pav. 3 1699 a11[N.ira Bculevazd, Suite !00 Loa Aaqelea, Galifot7+ii 30010 . Tolsphena: (2111 251-5100 Faceimile: (211) 2S1-S29e 1l50%,doc a. Subject to Paragraph b below, the Incentive Compensation provision shall be amended by deleting the current paragraph under the heading "The Incentive Program" and replacing it with the following: The Employee will be entitled to be paid on the Confirmation Date an incentive payment. This payment will be made in a lump sum (less applicable payroll taxes) and will be determined based on Ce11Pro's non-cash assets (as of September 30, 1998) that have been converted to cash as of the Confirmation Date. For purposes of applying this formula, the Company and Employee agree that cash received from the following transactions shall not be included: (a) the consideration received from the sale of substantially all of Ce11Pro's intellectual property assets to Nexell Therapeutics, Inc. or the conversion of that consideration to cash; (b) the profits generated by Ce11Pro from sales under the Distribution Agreement with Baxter Healthcare Corporation; and (c) the funds returned to the Debtor from - the "international escrow" pursuant to the Settlement Agreement with the Patent Plaintiffs. Accordingly, if on the Confirmation Date Ce11Pro has received at least $5.0 million (the "Hurdle Amount") from t•he sale, disposition or other conversion of such non-cash assets, the Employee will be entitled to an incentive payment equal to one month of the Bmpioyee's then-current annual salary, and, if on the Confirmation Date CellPro has received an amount in excess of the Hurdle Amount from the sale, disposition or other conversion of its non-cash assets to cash, the binployee will be,.entitled to an additional ~ ~., incentive payment equal to one month (or a fraction of ~V a month) of the Employee's then-current salary for ko each increment of $500,000 (or fraction of such o, increment) in excess of the Hurdle Amount that is ~ received. °i ZO'd 0£; [r 86, LI ~aQ 88L5 iSL Sii: Xej ?J3lSI3?Jl ' NHWlftiS
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•..,, ,. • / I I PIIILIP . ~~~~ •.1ooPNYfAVEMJl,NBWY~ONCN.Y.10017 UAnr \v.co"KnmN . ' Yw.lwatwn•W.ra.nAnF,o Dear D'onniss • Winston-Oalem, NC' 27102.„> , Vice President. :, R, J: Reynolds.Indusbries, xno. Hr. C. Dennis Durden gested ohanges. . The notations for editing'represent•our.views based on a review of the paper by Bhook, HaYdy & Haoon. Don Noel •has given- ,a copy. to Tim•. ;, ., ' Finnegan and will call him to explain the.sug~ managoment. Enclosed is the draft of the XC082 public smokinV paper you sent us for„dlearance by our eenior. ' We think it would be a good idea to prosent the gr ather you plan to also.obtiain MsRa conaaents..! efore the meeting. " to comment on the text and, hopefully,•xttie .: necessary editin6 'will'have been'oomplete.d. ,I, tnember companies will;have had the opportunity paper for official approval of the'Executive Committee at its meeting in nugust. ..8y then, ., to his request for ICOBX rdembor clearance. . Philip Morris Europe will,send a•copy of.this edited draft to Nr. Btowert-Lockhart in response RS twyv..a..aU.lfn~nl•er•wwVS~..~qt+.•wI~O'rii1NN!•Mt~"I~IC~MPIM'~I^1^'4/r~• ,r.... ~ r..~_......_............',rma:• ..~:
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ICOSI APPROACHES 1'0 "SOCIAL COSTS" ISSUES AVENUES TO EXPLORE. FOR A COUNTERHEASURE STRATEGY In considering strategic possibilities, there are three avenues that seem to be well worth exploring. At this stage, they are only possibilities. One or more of them could ultimately prove to be a deadend alley rather than an avenue to effective countermeasures. However, they are not mutually exclusive; so perhaps one or more of the following would form the basis for industry countermeasures: l. Refute the char es - Demonstrate that the numbers and assertions are false; re., t ere are no "social costs", ,just bad "social accounting" and/or "bad statistics." 2. Put them in rs ective and reduce them to absurdit - Oemonstrate that overeat ng, co ee, sugar, ac o exere se, a, a co l, etc, ~' are also alleged to generate "social costs." If tobacco use is subjected to attack, these other behaviors should also be indicted, taxed and other- ` wise discouraged . ~ 3. ~i.efits outwei h an costs - Oemonstrate that even if smokers do generate,x ra soc a costs which we deny), these are far outweighed by the!,~o~ib1 "benefits" they most certainly generate - i.e., smoking is concenf~'at~d in those age and occupational groups that are the true "producd'R.~ in our society, the ones who lead economic production and generafae.~h of society's total economic output. In this approach the otti, onomic benefits of the industry (taxes, jobs, etc.) would also bet ssed. . ;oe, wNtlj ~:?s;k i`m ~ materials, aau"servoirs of expertise from several disciplines. The industry can draw on of its traditional tegat and health science resources, but it ~rwes will also need~ nputs from economists, other social scientists, and statisticians. '.~ As quickly aF-Asible, a position paper must be prepared; strategies decided ,4^+, upon; and countermeasures set into motion, particularly through national trade 4 -"' associations, HEJf? MIPS `s_•L;M~ ~~ In SAWP's op~a '.D posi tion de ~ , will be exp ,~ and secure i ~ It is recommended that ICOSI authorize SAWP to retain consultants, commission „;,,,;r,research studies, involve company personnel, and take such other steps as are needed to develop a "social costs" position paper, plus reconmended strategies and countermeasures for the industry. Included in this effort would be appro- priate contacts with national trade associations and other traditional sources ~ ~ ,.. of expertise for the industry. w ~ SAWP believes that it should begin inmediately on this work. It is estimated that approximately $4I>,000 (U.S.) would be needed during the balance of 1978. ~ .. e J on; the seriousness of the issue and the industry's unorganized that ICOSI's approach be strong and swift. Of necessity, it i'Ve. Within a short period, the industry must stake out a strong sft,ion. This will'require development of new resources, research 14
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1 2 3 4 5 6 17 18 19 20 21 22 23 24 25 26 (the "Senior Management RP?"). The O.ficial Committee of Unsecured Creditors (the "Creditor's Committee") also raised issues with the Senior Management RPP pursuant to its "Respor.se of Official fJnsecured Creditor's Committee to Retention Pay Program" (the "Creditor's Committee Response"). The Equity Comr.ittee commenced in_°cr^al discovery in this matter, including the depositions of certain representatives of the Debtor. in arr e_"fort to resolve the Ec,uity Committee Objection and the Creditor's Committee Response, the parties irn this case have engaged irn good faith negotiations, ar.d have resolved the issues related to the Equit,v Comr..ittee Objection and the Creditor's Committee Response as provided 'nerei,n. Based upon the foregoing, and good cause appearing, IT IS HEREBY ORDERED, ADJUDGED AND DECREED: 1. Subject to the stipulated changes to the Sen_o: Management RPP specified herein, the Equity Committee Objection is w:,tadrawn. 2. Subject to the stipulated char.ges to the Senior Managemeat RPP specified herein, the Senior Mar.agemen*_ RPP is approved and Ce11Pro is authorized to take all actions to perfor:n its obligations under the Senior Management RP?. 3. The provision of the Senior Management RPP ent=tled "The Incentive Program", which provides for the payment of the incentive compensation to Mark J. Handfelt and David Bishop (the "Incentive Compensation"), shall be subject to the fol?osring stipulated changes: ~ ~ ~ siVa9uf. xRazsTSA & cznsT lTTDpi.k2m OROLn 7V77o5vzSo tLxYOU raequ.`=4St[ 7isTaR2ON AAY eROGtt}/ laq% 2 . r,roasaezaias. oormoxauow 3699 :/;lshire soulevard, Suita 300 Ws Anq.l.s, Calilornia 90010 :.l.phon.: f2131 2A1-5100 facaimal.: 12511 251-5.04 IYl05d.doc
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SECTION Y 1COSI APPROACHES TO "SOCIAL COSTS" ISSUES BACKGROUND in SAWP's ftrst report to ICOSI (October ]977), it was pointed out that social acceptability challenges to the industry arise on three basic leveis: a. The pubtic ( assive) smokina level -- smoking is asserted to be so a1Ty unaccepta e because it-`alYegedly is damaging to the health of others who happen to be in the presence of smokers. During 1978, work on this public sniokin9 level has been a central focus of SASiI"s work.. A* "- b. The courtes level -- smoking is alleged to be socially unaccepqeecause Tt'is annoying to others who happen to be in ,the pree of smokers. The work that SAWP has done on the public smoking", 1e e1 can be tied directly to any future ICOSI work on the courtet~a-l~vel. :S ~ N'FL'"3I c. ArtW social costs level -- smoking is asserted to be socially unacce p,~i e~ecause iL aC e edly raises society's insurance, health care tax and other public costs. Smokers are asserted to be sick more often,,`-~ire more medical treatment, and die earlier. They allegedly ~ 7ayquirwrotEiiers in society to pay hi.gher,tax.es.and.insurance premiums J-ta "su*dize" the social costs and expenses supposedly generated by y sssoker .y. ~6j. In SAWP's s~-t~ report (February 1978), it was pointed out that social ~ acceptability,ytssues on the social costs level were rising rapidly. SAWP went on to ~econhiend that ICOSI focus special efforts on "social costs" during ~ 1979. ICOSI--ratified SAWP's February 1978 recoornendation and asked SAWP to suggest appxoM}ate ICOSI approaches to "social costs" Issues. EHERGENCE ANI>rGURRENT STATUS OF THE' ISSUE C.-Y "Social costs" attacks on the industry seem to have originated first in Sweden 'k in the 1960's. Since then, there have been 3 small, but growing number ~~ of studies on various aspects of "social costs". These have appeared in µ:`?~professional Journals and government documents often in comparison with the '~'"`~^social costs of alcohol consumption. These studies remained largely unpublicized until recently. Today, more and more opponents of smoking are beginning to emphasize "social costs" themes. This current emphasis on "social costs" comes at a time when taxpayers are rising up in strong protest against taxes, costs of government, costs of medical care and other social service expenses. Thus, for opponents of smoking, "social costs" is clearly an idea whose time has come. Certainly "social costs" issues are developing with even more strength and across an even wider front than SAwP was able to predict as recently as last autumn in their October 1977 report to ICOSI. 11
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i 4 5 11 16 17 18 25 26 the payment of Incentive Compensation to the payment, in full, of allowed claims of general unsecured creditors, without interest. DATED: December , 1998 THE HONORABLE KAREN OVERSTREET UNITED STATES BANKRUPTCY JUDGE SY7Hi2CTTED 13Y: ~ ~~CGt ERANK A. MEROLA, a e er o STUTMAN, TREISTER & GLATT PRO:ESSIONI~.L CORPORATION General Bankruptcy Counsel for Debtor and Debtor ia Possession Agreed to r4s to fortt and content: \ ,~ r r / J"a l~~p w.rr. '.1'ILv.ma . a , 'fOr la-J!'~-l9tr Jonn R. Rizzardi, Esc,` Cairncross & Hempelmann, P.S. Counsel for Creditor's Committee Couns fq~Y' ~ie ~,d~3:,tq` C,f6~6ni~ee Murphy & esm nd, i zam J. ~une er, E fKrxx~ a c d-Cdcs,~tc. Gc~n2 n- •. ~ W~lt~1 ~.mqer:~.y`~oA ~[ erenb~srrY`~5q. Bogl~ & G te:: 'Counsel r Senior Mana(x`?ment 9TIYQLATLD ORCLU AP41tl'fLNG SYNIOR W~tN6II4tf2 RIYENLIqM P3~T srvnalN, a1ssIIZZRR S GXATr PROT!<SSSCi0.L OORFCR7lS1W PROGRaM ;aq~ l 3699 Milahin Bcul.vasd. Suite 900 Los lu:g.les, Cali[ocnia 90030 Telephone: (213) 251-5100 Tacsimile: (213) 291-52H8 195036.doc ,n•i f>.nT nr 't ~yT OOYC_Tf71`T7•YDJ Y71D77v1'A6AJIMC
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.-Seeki.ng a CurEl : Firms Fight Back Against Rising Medical-Plan Costs Cortfinued From Fint Pngr ~ gan a year agu. IT vo of the stx didn't have ployes In nine gmups; the average worker. ~ the operation after all.) Pauents appear to _ who beneflted recelvcd abont 555. be re!uctant to question their doctors' judg• Cost•control moves nrc hecoming quite I'~en'• sophlsticated. Rockwell Internntlonal hns! •'Jt they do• and he ends up performiag computerized Its quarterly "trend reporc" to the operac:on anyhow, they think he may be spot unusnal doctor or hospital bllis. Not 11 trntated enough that he'll leave a sponge in long ago, the report showcrf Ihat onc physl• c'•an had done'?A of the 100 operations pcr• employe benefits. formed on one plant's employes that quar• 1, In fact, a physician boycor, has c;ipple9 tea~E~ery one of the 30 was a broncho•~ the se ond-opinion program launched last scopy, an expicratory lung operation. ~ July by Blue Cross, the United Auto Wcrk• "There shculdn't have been that man y people with lung problems." says Edwin McManus, a Rockwell staff vice president. A Rock'we!I Insurance consultant visited the doctor• who owned the local profit•maktng hospital. The consultant suggested that the physlc!an perform bronchoscoplcs only when they were "absolutcly ncccssar/ ." The resalt" "AII this broncloscopy actlviry cnem to get even.-; suggests James bior,l •l• mer. Connnental's manager for personne!• ers and the big three auto makers In ,LUc1i• I gan. The state's medical society voted not to pattlcipate• cante:iding that "it Interferest with the doctor•patlent re!ationship." __•Several conceras are abandoning routine annual physicals for employes because t.he exams detect too few serious medical prob• lems to be cost•effective. For example, Gea•, was• brought to a stop," Mr. !dc.5tanus re• i ecaJ Siills Inc. now administers yearly phys•' parso icas to just 1,400 of its'],00o Hinneapolis•I hospltal•admissbns program in Phcentx, Ar1z., that Is saving it more than i4o4C0o annuaily 1n avoldr.i or rcducM hospltalixa. 9on for Its 43.0(0 Phocnix•area cmploycs ar.d the:r families. As tr,zona's !argest ° pioyer, Motorola used its Influence to get the nrogram launched through the Ma-co pa Foundatlon for.5ted;cal Care•, a physician Iroup• _ Before a 5totorolaworker en:e:s a lcsol• tal for sc.`.eduled tests or surgery, founda• don doc:ors must agree that the uospitallza• ton Is ae:essa;/. They rr'plcally refuse ap• proval for most dlagnostlc tests or such pro- cedures as tonslllec:omtes and abortlons• sug;esttng that the tests or suraery be done In an-outpatlent clInic Instead. Hospltaliza• dan for °vague diagnoses, such as lower in- testhal patn` Is rejected. too. "unless the patient Is really In ternfic pain." obserres Anthony )fi;ten, fcundat!on executive dlrec• c e• or work m hazardous Jots. Some exPe!',s see more merit in the ex- tensire prevention programs and exercise fae!Ilties pcpping up at Standard Oil Co. IJndianal; Picw iork ` e!e;,hone Co., EYxon Cor'P., Kimberly-Clark and other companies. At Kimberly-Ctark, 1.215 of t•he :.',1Co eii• gtblc saluricd employcs havc partie~ Ipnt«f In the company's voluntary hcalth•manage• mr.nt prngram slnce the center opened last September here !n Vaclah, xl mlla north of btllwankec. To use the exorefse faclllty, staffers rrtust fl,yt underzo a rigomus flt• ness screening uiat Inc!udes a troarJmitl tnst and b xly•fat measurement. Computcriznl results pmfllc each pcr• son's "heallh-"sk". nge• If he Is in poor shape. thc -heaith-risk age soara• One i0- year•old mailroom clerk was told he harl the body of a 63-year-old because he was 'A pounds overweight and had high cholesterol Ar• Ievels. "That makes people sit up and take Continental Bank, G.M, Ford, Chrysler notice•" says Dr. ftobcrt A. Detimon, stalf md'Ntobll`2M,ently-began tn pay for their , vice president lor medical affairs. sorkers tn p t a"second surb cal opinion." I After thus gettJng an cmpldye's attentlon, :he Idea is ;hat a second surgeon may sug- ;est a cheaper but equally effective treat• re.n,t. Dr. Dedmon typically Issne.s nn Indivldual- izr.i "health prescrlptton." The thoroughly •shaken ernptnye usually chooses a regimen Exercise, for Instance 11 such as regulor laps In the pool, jogging on That happened to James Sauls• a 24•year- ~ the Indoor track, jumping rope or exercise :Id Contlnental por,follo advlser. After an classes. Ear•h regimen Is deslgned to grad• :r.hopedtc surgeoon recommended surgery unity build up spccd and endurancc. :or his bad knee, he got a second opinion. Cnmmunity Invoivemenris another front ihe second phystclan prescribed exercise in- where private Industry Is lar.kling runaway ;;ead. 1 don't get shooLng pains anyy health costs. Fur years. hospltzls eagerly hore," Mr. Sauls says. "and I'm ve.ry sought businessme7 as trastees because :appy I didn't have an operation." • they helped raise funds for new buildings But only six of an esdmaEed 195 bank em• i and fancy medical equipment. But econo- aoyes and famdy members • who planned ~rnists now blame much of health inf7atlon on '!ec:ive su:g°ry have sought second opin excess hospital beds and duplicated ser• ins slnce Cantlneatal's voluntary effort be-, f hr vices, prompting-many businessman•trus• six dl~ln' r hqv^ tees to vote against such projects• . ~tefor la Inc. hclprS set up and flnancc a; area s.af/ers, these people are overneight. v A n r~nBIT_.~... Deponent ____. Data Rplc- . "Don't Check Your Bralns" To raise these officials' "cost consc::sness." Aluminum Co. of America and C~-• eral Motors give t.hem special training. "I tell them. 'Lbn't check your brains at'he board.room door. Remain the same kfnd ef questioning- human beings you are in tui• ness•' " says V!ctor X Zlnk• GM dircccc: of employe benefits ar•d services. There is a!so greater employer inte:^r In cuttmg medical bills ehrouga health tenance orgartlzat!ons._In an HINt0, sala=ed ~ physictans provide a complete range of medical ser•ilc^_s in a sing!e, c!inlc•like srt• tJng. They have an incenti•m to hold dr- hospital use because subscribers pay a a: fee In advance; if a subsc; bcr has to en:er a hospitaL the FtitO has :o pay the hos.:a:i costs. 1LMOs ha•re consistent:y c!aimed _`_;; they lower ttte overall cost of medical cr> by any'uhere frrm ;tl"o to ;O%• Ford Is saving S: mllllnn a year fcr. fN0 partlcipnttnn by 10•OM cmplnycs. ~r just a~^ nf its U.S. work forc^. says .Inck ::. Shelton, emptoye•Insurance :~ma;,^.r. , ^.r, R :. Reynolds Yndustr:es recently arsnt M2 =`- lion to build and staff an 1i1d0 for lu . workers In 'Ninston•Saiem. N.C. The tatization ra;e among P.eynoids •xorier, there fe!I by nne•half within thre^ months c- ter the plan bcgan last July. For' a!sn =_s dec:dM lo bui!d an NMO of i!3 n•u;, In _^ Detroit area. Industrialist Henry J. Kaiser pionecrz the HMO idea in t•he early i!,1Os when ce asked a young surgeon to pro•ride prepa _. comprehensive health care for emp?oyes ca the Kaiser shipbuilding empire. The Kafszr- Permaaente medical•care proi;t•am now `-s three miliior, members• and ;:ost don't wc:i for Kaiser- A 147J Grderal law requtres e^tplnye^ with 25 or more workers to of`,er the FLS'.C option If a federally quallfled plan exJsu ire the viciniry.,; Kaiser and about 160 ot.`.er ~ plans .n,ow exist aationwide. with a combi_ed enrollment of 6.3 -ilfion persons. The F-MLs are primarily ntn by Insurance catr.e s, physician group practices. Blue Cross pir= hospitals and consumer groups. The number of ii.HOs is likely to incres r soon. On March 10, senior executi•res fr.c• = of the 900 largest U.S. corporations a 200 labor leaders attended a federal F'.%C conference• the first of its kind. They, hea= the Secretary of iiealth, Education and µ fare,,Joseph A. Califano Jr., estimate big business could have saved up mililon last year if just 5"< of the emp..;es of Fortune 5CU companies belonged w MMOs. 51979 6238
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Fobruary. Sons, ~xennedy (D-Kass.) and It~ert ,(A-Colo.) introduce a`Fr'iTi to-za~ae the federal cigarette excise on a scale increasing with "tar" and nicotine yields and to earmark the estimated $9 billion per year revenue in- crease for goveravoent health research. At a hearing there is a forecast that.the Ford 7Wministration will opposo the aeasure, and several scientists tastify that there is no baais for using the yields as a bazard index. March. ASH petitions Civil Aeronautics 8oard to prohibit oigar anl-Pipe swa7cinq oa planss, and petitions ICC to prohibit all smoking in bus dHpots. April. A fedekal judge in New Orleans disstissos; as with- ' toundation, a aitizsns' suit to pro- out Constitutional hibit smoking in the Louisiana Superdome sports arena. Aprtl. President Yord talls news reporters "I am against the s~~y-dirt a~^.d tax bill on tobacco products," and the YEent oigarette regulation is adequate because it pe fraedotn ol choice, and that is pretty lanportant in vgwabountry.' • r~sNap.IMM" Consumer advocate" R~al h N~ader nsks the Federal ]gency- to prohibitim -o k~ieg ia airplane cockpits, Hay 's aa~nual report to Congress says it is inveati- gatin qarette advertising "to determine whether there ma ception and unfairness.• Nay~_ Presidant sigds legislation to exempt 6bacco froa SC requlationo mooting the Moss lawsuit and the . lur manutactarers' effort td-'o'taKin regulation of cigarette burrting time. May, zCC approves its law judge's January recommendation on behaTf of P+SH, ordering smokinq prohibited in train dining cars and requiring separate passenger cars for. : smokers and nonsmokers. r

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