Tobacco Documents Online

-~-= CONFIDENTIAL ====== THIS DOCUMENT IS SUBJECT TO A COURT ORDER AND 1'lI1S DOCUMENT .\NI) ITS CONTENTS SIIALL NOT DE IiSED. SVIOWN OR DIS'IRI6UTliD EXCEPT AS PROVIDED IN i'IVE COUR('S ORDER PUBLIC AFFAIRS DIVISION PROPOSED f988 OPERATjpN pyANS AND BUDGET TI DN 00179$1

-~-= CONFIDENTIAL ====== THIS DOCUMENT IS SUBJECT TO A COURT ORDER AND 1'lI1S DOCUMENT .\NI) ITS CONTENTS SIIALL NOT DE IiSED. SVIOWN OR DIS'IRI6UTliD EXCEPT AS PROVIDED IN i'IVE COUR('S ORDER PUBLIC AFFAIRS DIVISION PROPOSED f988 OPERATjpN pyANS AND BUDGET TI DN 00179$1

====== CONFIDENTIAL ===== TIIIS DOCUMENT IS SUBJECT TO A COURT ORDER AND TUIS DOCUMENT AND ITS CONTENTS SIIALL NOT IIE USED. SHOWN OR DISTRIBUTED EXCEPT AS I'ROVIDED IN TIIE COURT'S ORDER PART I TI DN 0017988

====== CONFIDENTIAL ===== TIIIS DOCUMENT IS SUBJECT TO A COURT ORDER AND TUIS DOCUMENT AND ITS CONTENTS SIIALL NOT IIE USED. SHOWN OR DISTRIBUTED EXCEPT AS I'ROVIDED IN TIIE COURT'S ORDER PART I TI DN 0017988

THE TOBACCO INSTITUTE 1988 BUDGET PUBLIC AFFAIRS DIVISION ------------------ 1987---------------- ---------- 1988---------- BUDGET ($000) ESTIMATED EXPENDITURES ($000) AUTHORIZED POSITIONS PROPOSED BUDGET ($000) AUTHORIZED POSITIONS REQUESTED X CHANGE 1987 EST vs 1988 BUDGET General Administration $ 2,768 $ 2,756 31 $ 2,647 30 - 4% Scientific Affairs 1,473 1,683 - 1,300 - - 23% r Media Relations 693 711 - 1,055 + 48% Information Center 90 94 - 111 + 18% 0 Excise Issue 1,080 1,155 - 2,253 + 95% pS~ II ~:Tx, II Fire Prevention Issue General Coalitions 628 1,241 625 1,449 - - 895 1,640 + 43% + 13% OXO ~ ~~ n-_ Advertising Issue 668 1 880 - 1,157 + 31% >c w O "= z or Public Smoking Issue Social Costs Issue , 1.705 0 ,152 0 - ,485 1,035 - - 294% +100X _'TJ ~Hd ti ~~~ Cr7 =~F z $11,382 $11,505 31 $20,578 30 + 79% I

THE TOBACCO INSTITUTE 1988 BUDGET PUBLIC AFFAIRS DIVISION ------------------ 1987---------------- ---------- 1988---------- BUDGET ($000) ESTIMATED EXPENDITURES ($000) AUTHORIZED POSITIONS PROPOSED BUDGET ($000) AUTHORIZED POSITIONS REQUESTED X CHANGE 1987 EST vs 1988 BUDGET General Administration $ 2,768 $ 2,756 31 $ 2,647 30 - 4% Scientific Affairs 1,473 1,683 - 1,300 - - 23% r Media Relations 693 711 - 1,055 + 48% Information Center 90 94 - 111 + 18% 0 Excise Issue 1,080 1,155 - 2,253 + 95% pS~ II ~:Tx, II Fire Prevention Issue General Coalitions 628 1,241 625 1,449 - - 895 1,640 + 43% + 13% OXO ~ ~~ n-_ Advertising Issue 668 1 880 - 1,157 + 31% >c w O "= z or Public Smoking Issue Social Costs Issue , 1.705 0 ,152 0 - ,485 1,035 - - 294% +100X _'TJ ~Hd ti ~~~ Cr7 =~F z $11,382 $11,505 31 $20,578 30 + 79% I

===-= CONFIDENTIAL ===_= THIS DOCUMENT 15 SUBJECT TO A COURT ORDER AND TfIIS DOCUMENT AND ITS CONTENTS SHALL NOT BE USED. SHON'N OR DISTRIBUTED EXCEPT AS PROVIDED IN THE COURT'S ORDER T1iE TOBACCO INSTITUTE 1988 BUDGET COST CENTER Public Affairs - General Administration No. 1301 Authorized Positions 1987 - 31 Authorized Positions Requested 1988 - 30 1987 1987 1988 Account Page Budget Estimated Budget Number _ Description Ref. 000 ($000) ($000) 2801 Staff Compensation ................. .... $1,315 $1,373 $1,305 3201 Employee Benefits .................. .... 356 371 353 3901 Travel - General ................... .... 75 100 75 4001 Conferences & Meetings ............. .... 0 6 0 4701 Furniture, Fixtures & Equipment.... .... 0 25 .5 4801 Books & Subscriptions .............. .... * * 0 4901 Equipment Repairs & Maintenance.... .... 0 2 0 5001 Office Supplies .................... .... 4 3 4 01 Postage & Delivery ................. .... 155 125 95 .;201 Reproduction, Printing & Drafting.. .... 208 122 106 5401 Other Office Expense ............... .... ' 4 8 4 55** Membership 6 Staff Training........ .... 8 8 12 5801 Legal Fees - General ............... .... 100 72 100 6201 Advertising Space & Promotion...... .... 5 2 2 6901 Employee Recruit & Reloc. Expense.. .... 0 10 0 7301 Professional Fees .................. .... 145 136 193 7401 Purchased Administrative Services.. .... 3 3 3 9100 Data Processing Allocations........ .... 390 390 390 TOTALS ........................ .... 2 768 $2,756 $2,647 Overall, a slight decrease due primarily to an anticipated reduction in printing and postage costs for the Tobacco Observer, following the 1987 readership survey. 2 TI DN 0017990

===-= CONFIDENTIAL ===_= THIS DOCUMENT 15 SUBJECT TO A COURT ORDER AND TfIIS DOCUMENT AND ITS CONTENTS SHALL NOT BE USED. SHON'N OR DISTRIBUTED EXCEPT AS PROVIDED IN THE COURT'S ORDER T1iE TOBACCO INSTITUTE 1988 BUDGET COST CENTER Public Affairs - General Administration No. 1301 Authorized Positions 1987 - 31 Authorized Positions Requested 1988 - 30 1987 1987 1988 Account Page Budget Estimated Budget Number _ Description Ref. 000 ($000) ($000) 2801 Staff Compensation ................. .... $1,315 $1,373 $1,305 3201 Employee Benefits .................. .... 356 371 353 3901 Travel - General ................... .... 75 100 75 4001 Conferences & Meetings ............. .... 0 6 0 4701 Furniture, Fixtures & Equipment.... .... 0 25 .5 4801 Books & Subscriptions .............. .... * * 0 4901 Equipment Repairs & Maintenance.... .... 0 2 0 5001 Office Supplies .................... .... 4 3 4 01 Postage & Delivery ................. .... 155 125 95 .;201 Reproduction, Printing & Drafting.. .... 208 122 106 5401 Other Office Expense ............... .... ' 4 8 4 55** Membership 6 Staff Training........ .... 8 8 12 5801 Legal Fees - General ............... .... 100 72 100 6201 Advertising Space & Promotion...... .... 5 2 2 6901 Employee Recruit & Reloc. Expense.. .... 0 10 0 7301 Professional Fees .................. .... 145 136 193 7401 Purchased Administrative Services.. .... 3 3 3 9100 Data Processing Allocations........ .... 390 390 390 TOTALS ........................ .... 2 768 $2,756 $2,647 Overall, a slight decrease due primarily to an anticipated reduction in printing and postage costs for the Tobacco Observer, following the 1987 readership survey. 2 TI DN 0017990

====== CONFIDENTIAL ====== fIIIS DOCUSII:NI' IS SI:6IECT TO A COURT ORDER AND I'IIIS DOCUMENT.\ND ITS CONTENTS SHALL NU•I' UE USI:D. SfiOW'N OR DISTRIDUTED EXCEPT AS I'RDVIDED IN TIIE CUURT'S ORDER THE TOBACCO INSTITUTE 1988 BUDGET COST CENTER Public Affairs - General Administration No. 1301 STAFFING SCHEDULE Prepared 8/17/87 Months of Employment Employee Name Title/Position 1987 Budget 1987 1988 Estimated Budget W. Kloepfer Senior Vice President 12 12 12 P. Sparber Vice President/Deputy Director 12 12 12 A. Duffin Vice President 12 12 12 F. Panzer Vice President 12 12 12 W. Merryman Vice President 12 12 12 S. Stuntz Vice President 12 12 12 M. Kastenbaum Director of Statistics 12 7 0 Osborne Issues Coordinator 12 12 12 Ross Issues Manager 12 12 12 Vacant Media Relations Director 12 12 12 B. Moran Assistant to President 12 12 12 C. Halicki Assistant to President 12 12- 12 J. Goss Assistant to President 12 12 12 J. Smith Media Relations Coordinator Edi 12 12 12 12 12 12 R. W. Sievers Foley tor Issues Manager 12 12 12 M. Stark Administrative Assistant 12 12 12 I. Pinkney Secretary 12 12 12 M. Miller Secretary 12 12 12 D. Baumann Secretary 12 12 12 A. Cannell Director, Production Services 12 12 12 N. Nordhal Production Coordinator 12 12 12 L. Davis Secretary/Production Assistant 12 12 12 J. Lyons Director, Information Center 12 12 12 D. Schoonmaker Research Analyst 12 12 12 C. Hrycaj Research Analyst 12 12 12 L. Picciano Reference/Research Librarian 12 12 12 S. Ransome Project Coordinator 12 12 12 J. Rusk Library Technician 12 12 12 C. Myers Secretary 12 12 12 S. Richman Secretary 12 12 12 372 367 360 3 TI DN 0017991

====== CONFIDENTIAL ====== fIIIS DOCUSII:NI' IS SI:6IECT TO A COURT ORDER AND I'IIIS DOCUMENT.\ND ITS CONTENTS SHALL NU•I' UE USI:D. SfiOW'N OR DISTRIDUTED EXCEPT AS I'RDVIDED IN TIIE CUURT'S ORDER THE TOBACCO INSTITUTE 1988 BUDGET COST CENTER Public Affairs - General Administration No. 1301 STAFFING SCHEDULE Prepared 8/17/87 Months of Employment Employee Name Title/Position 1987 Budget 1987 1988 Estimated Budget W. Kloepfer Senior Vice President 12 12 12 P. Sparber Vice President/Deputy Director 12 12 12 A. Duffin Vice President 12 12 12 F. Panzer Vice President 12 12 12 W. Merryman Vice President 12 12 12 S. Stuntz Vice President 12 12 12 M. Kastenbaum Director of Statistics 12 7 0 Osborne Issues Coordinator 12 12 12 Ross Issues Manager 12 12 12 Vacant Media Relations Director 12 12 12 B. Moran Assistant to President 12 12 12 C. Halicki Assistant to President 12 12- 12 J. Goss Assistant to President 12 12 12 J. Smith Media Relations Coordinator Edi 12 12 12 12 12 12 R. W. Sievers Foley tor Issues Manager 12 12 12 M. Stark Administrative Assistant 12 12 12 I. Pinkney Secretary 12 12 12 M. Miller Secretary 12 12 12 D. Baumann Secretary 12 12 12 A. Cannell Director, Production Services 12 12 12 N. Nordhal Production Coordinator 12 12 12 L. Davis Secretary/Production Assistant 12 12 12 J. Lyons Director, Information Center 12 12 12 D. Schoonmaker Research Analyst 12 12 12 C. Hrycaj Research Analyst 12 12 12 L. Picciano Reference/Research Librarian 12 12 12 S. Ransome Project Coordinator 12 12 12 J. Rusk Library Technician 12 12 12 C. Myers Secretary 12 12 12 S. Richman Secretary 12 12 12 372 367 360 3 TI DN 0017991

CONFIDENTIAI, IIiiS Dt)<'1 ;\II:,\'I' Ic Sl'II)1~CT 1'() ,\ ('()(;RT t)I(DLR ,\.VD TIIIS 1)t)CU.~iI:.'.'i A.\'U I fS C().Y(I:N TS SIIALI Np'! Uf UtiF OR DISI'RIBUTf:O I~a('CP"I' AS I'ROVIDI:D IN TII(: COU D. Stl RT'S ()RDOW~FR THE TOBACCO INSTITUTE 1988 BUDGET COST CENTER Public Affairs - General Administration No. 1301 1987 Budget ($000) 1987 Estimated ($000) 1988 Budget ($000) Account #5101 - Postage & Delivery The Tobacco Observer/Newsletter $120 $100 $ 65 Miscellaneous 35 25 30 $155 $125 $ 95 Account #5201 - Re roduction Printin _ Dra t ng :he Tobacco Observer $165 $100 $ 76 Production & printing of new titles 25 . 10 15 Committee presentations 5 5 5 Newsletter 13 7 10 $208 $122 5~106 Account #5801 - Legal Fees - General Covington Sr Burling $100 $ 72 $100 Account #7301 - Professional Fees PR Contingency Roper Reports $ 45 $50 $ 45 Reserve 100 22 100 Anne Browder 64 48 $145 $136 $1_9_3 TOTALS ................ $2,768 $2,756 2 647 4 1 1 DN 0011992

CONFIDENTIAI, IIiiS Dt)<'1 ;\II:,\'I' Ic Sl'II)1~CT 1'() ,\ ('()(;RT t)I(DLR ,\.VD TIIIS 1)t)CU.~iI:.'.'i A.\'U I fS C().Y(I:N TS SIIALI Np'! Uf UtiF OR DISI'RIBUTf:O I~a('CP"I' AS I'ROVIDI:D IN TII(: COU D. Stl RT'S ()RDOW~FR THE TOBACCO INSTITUTE 1988 BUDGET COST CENTER Public Affairs - General Administration No. 1301 1987 Budget ($000) 1987 Estimated ($000) 1988 Budget ($000) Account #5101 - Postage & Delivery The Tobacco Observer/Newsletter $120 $100 $ 65 Miscellaneous 35 25 30 $155 $125 $ 95 Account #5201 - Re roduction Printin _ Dra t ng :he Tobacco Observer $165 $100 $ 76 Production & printing of new titles 25 . 10 15 Committee presentations 5 5 5 Newsletter 13 7 10 $208 $122 5~106 Account #5801 - Legal Fees - General Covington Sr Burling $100 $ 72 $100 Account #7301 - Professional Fees PR Contingency Roper Reports $ 45 $50 $ 45 Reserve 100 22 100 Anne Browder 64 48 $145 $136 $1_9_3 TOTALS ................ $2,768 $2,756 2 647 4 1 1 DN 0011992

====== CO N FI D E NTIA L====== I I IIS UOCl:M1:N f IS S1;13/[C'T fO A (OIiR T ORDER AtiU TIIIS I)O(IIAI[NT ~\NI) ITS CON'fI:NTS SHALL NOT 6E USED. SIION'N OR 1)ISTRI6liTfD EXCEPT AS PROVIDED IN TII[ C'OI~RT'S ORI)[R THE TOBACCO INSTITUTE 1988 BUDGET COST CENTER NAME Public Affairs - Scientific•Affairs No. 1302 1987 1987 1988 Account Page Budget Estimated Budget Number Description Ref. 000 ($000) 000 5101 Postage & Delivery ................. .... $ 1 $ 0 $ 0 5201 Reproduction, Printing & Drafting.. .... 1 0 0 5502 Staff Training ..................... .... 3 0 0 5801 Legal Fees - Generai ............... .... 180 130 100 7301 Professional Feas .................. .... 1.287 1,553 1,200 7401 Purchased Administrative Services.. .... 1 ~ 0 0 TOTALS ......................... .... 1 473 $1,683 $1,300 A decrease of 23 percent as a result of the transfer of a number of activities (literature review, participation in scientific meetings) to the new Center for Indoor Air Research. 5 'I'1 I)N 0017993

====== CO N FI D E NTIA L====== I I IIS UOCl:M1:N f IS S1;13/[C'T fO A (OIiR T ORDER AtiU TIIIS I)O(IIAI[NT ~\NI) ITS CON'fI:NTS SHALL NOT 6E USED. SIION'N OR 1)ISTRI6liTfD EXCEPT AS PROVIDED IN TII[ C'OI~RT'S ORI)[R THE TOBACCO INSTITUTE 1988 BUDGET COST CENTER NAME Public Affairs - Scientific•Affairs No. 1302 1987 1987 1988 Account Page Budget Estimated Budget Number Description Ref. 000 ($000) 000 5101 Postage & Delivery ................. .... $ 1 $ 0 $ 0 5201 Reproduction, Printing & Drafting.. .... 1 0 0 5502 Staff Training ..................... .... 3 0 0 5801 Legal Fees - Generai ............... .... 180 130 100 7301 Professional Feas .................. .... 1.287 1,553 1,200 7401 Purchased Administrative Services.. .... 1 ~ 0 0 TOTALS ......................... .... 1 473 $1,683 $1,300 A decrease of 23 percent as a result of the transfer of a number of activities (literature review, participation in scientific meetings) to the new Center for Indoor Air Research. 5 'I'1 I)N 0017993

ooc~/H N,'ryniiC'O`NFIDENTIALDi+S __ DISiRIDUiF.D CO, ~fl~S'TS SIIALI„ E~CEPTPROVIDED IN ~~T DE USED, _ll10\VN pR THE TOBACCO INSTITUTE ~~I RT s ORM 'R 1988 BUDGET COST CENTER NAME Public Affairs = Scientific Affairs No. 1302 1987 Budget 000 1987 Estimated ($000) 1988 Budget 000 Account #7301 - Professional Fees Charles Waite $ 17 $ 6 $ 0 Other 35 37 0 Scientific Studies 35 0 0 Scientific Witnesses* 1,200 - - ETS team - 1150 700 ACVA - 360 400 Recruitment & training of new witnesses 100 1 287 $1,553 $1200 TOTALS ......................... $1,473 1 683 $1,300 Legislative support item -- indicated throughout budget documents 6 TI DN 0017994

ooc~/H N,'ryniiC'O`NFIDENTIALDi+S __ DISiRIDUiF.D CO, ~fl~S'TS SIIALI„ E~CEPTPROVIDED IN ~~T DE USED, _ll10\VN pR THE TOBACCO INSTITUTE ~~I RT s ORM 'R 1988 BUDGET COST CENTER NAME Public Affairs = Scientific Affairs No. 1302 1987 Budget 000 1987 Estimated ($000) 1988 Budget 000 Account #7301 - Professional Fees Charles Waite $ 17 $ 6 $ 0 Other 35 37 0 Scientific Studies 35 0 0 Scientific Witnesses* 1,200 - - ETS team - 1150 700 ACVA - 360 400 Recruitment & training of new witnesses 100 1 287 $1,553 $1200 TOTALS ......................... $1,473 1 683 $1,300 Legislative support item -- indicated throughout budget documents 6 TI DN 0017994

====== CO v FI D E NTIA L IIIIS DOC(iAlf.~i' IC S1:I11f;C"I' I'O ~\ (lll'Rl'ORI)I:R,\\T) IIiIS UOCI7.11CNT ANl) ITS COUT(:NTS SILV.!. ~IYC I;f L'SI~:D. SIIOWti OR UISTRIUUTI:D I:\CEPT AS PROVIUI:D IN TIII: COURT'S ORDER MEDIA REIATIONS I. Background The third quarter of 1986 brought the issue of environmental tobacco smoke to the forefront with the publication of the National Academy of Science and Surgeon General's Reports. These reports created media attention at levels unprecedented in recent years. This carried over well into the first quarter of 1987, and still continues, though at a reduced level. Some press accounts now report ETS as though increased risk has been established without doubt. In 1987, it is estimated that the media relations team will participate in over 600 broadcast interviews, 1,500 print interviews, fill over 4,000 information requests from the public and the media, make personal contact with over 1,000 journalists, and conduct 250 interviews with consulting experts. II. Assumptions 0 As a result of a more aggressive approach, The Institute is seen as a reliable source and credible newamaking organization by an increasing number of journalists. Many national and local media outlets make efforts to include The Institute's views for 7 TI DN 0017995

====== CO v FI D E NTIA L IIIIS DOC(iAlf.~i' IC S1:I11f;C"I' I'O ~\ (lll'Rl'ORI)I:R,\\T) IIiIS UOCI7.11CNT ANl) ITS COUT(:NTS SILV.!. ~IYC I;f L'SI~:D. SIIOWti OR UISTRIUUTI:D I:\CEPT AS PROVIUI:D IN TIII: COURT'S ORDER MEDIA REIATIONS I. Background The third quarter of 1986 brought the issue of environmental tobacco smoke to the forefront with the publication of the National Academy of Science and Surgeon General's Reports. These reports created media attention at levels unprecedented in recent years. This carried over well into the first quarter of 1987, and still continues, though at a reduced level. Some press accounts now report ETS as though increased risk has been established without doubt. In 1987, it is estimated that the media relations team will participate in over 600 broadcast interviews, 1,500 print interviews, fill over 4,000 information requests from the public and the media, make personal contact with over 1,000 journalists, and conduct 250 interviews with consulting experts. II. Assumptions 0 As a result of a more aggressive approach, The Institute is seen as a reliable source and credible newamaking organization by an increasing number of journalists. Many national and local media outlets make efforts to include The Institute's views for 7 TI DN 0017995

====== CO N FI D E NTI AL ====== I'IIIS DUC11M1~VT IS Sl.'I311:CT 10 A Ct)l:Rl' c)RDLR AND fIIIS DUCl::4Il \T ANI) I IS CONTENTS SIIALI. NOT IlE USI:D. SIIDW'V OR DISTRII3liTED EXCEPT AS I'ROVIDf:D IN TI11: COL'RT'S ORDER balance. Maintaining, and in fact increasing, this momentum will remain of paramount importance in the upcoming year. o The media continues to be interested in tobacco-related issues and legislative activity. Congressional and national level activity combined with distinct occurrences (e.g. Beverly Hills restaurant ban) make the national news. Anti-smokers show no signs of abating attacks of the industry at local levels. The Institute must continue to take a leading and aggressive role as a source of information and experts to put such events in perspective in addition to providing substantiated opposition. o There is no reason to suspect that current trends in media coverage of ongoing issues will cease, but it is evolving. Specifically: 1) Environmental tobacco smoke (ETS) coverage has, to a large extent, shifted from being covered predominantly on a national level, to being raised at local levels in the context of political battles and consideration of smoking restrictions. The exception to this is announcements of "new findings" or major statements by leaders in the anti-smoking community. -- Virtually all surges in the level of major coverage of ETS science are tied to specific anti-smoking initiatives (e.g. New York Public Health Council, National Academy of . 8 •Y1 DN 001799b

====== CO N FI D E NTI AL ====== I'IIIS DUC11M1~VT IS Sl.'I311:CT 10 A Ct)l:Rl' c)RDLR AND fIIIS DUCl::4Il \T ANI) I IS CONTENTS SIIALI. NOT IlE USI:D. SIIDW'V OR DISTRII3liTED EXCEPT AS I'ROVIDf:D IN TI11: COL'RT'S ORDER balance. Maintaining, and in fact increasing, this momentum will remain of paramount importance in the upcoming year. o The media continues to be interested in tobacco-related issues and legislative activity. Congressional and national level activity combined with distinct occurrences (e.g. Beverly Hills restaurant ban) make the national news. Anti-smokers show no signs of abating attacks of the industry at local levels. The Institute must continue to take a leading and aggressive role as a source of information and experts to put such events in perspective in addition to providing substantiated opposition. o There is no reason to suspect that current trends in media coverage of ongoing issues will cease, but it is evolving. Specifically: 1) Environmental tobacco smoke (ETS) coverage has, to a large extent, shifted from being covered predominantly on a national level, to being raised at local levels in the context of political battles and consideration of smoking restrictions. The exception to this is announcements of "new findings" or major statements by leaders in the anti-smoking community. -- Virtually all surges in the level of major coverage of ETS science are tied to specific anti-smoking initiatives (e.g. New York Public Health Council, National Academy of . 8 •Y1 DN 001799b

====== CON F I D E NT IA L====== liI1S DUCIiAIENT IS SUBJECT TO A COURT ORDER AND TIIIC DOCUSIE.NT AND ITS CONTENTS SHALL NOT BE USED. SIIOwN OR DISTRIRUTED EXCEPT AS PROVIDED IN TIIE COURT'S ORDER Sciences, and Surgeon General's report). There is little or no independent reporting on ETS science. -- Media interest in smoking restrictions is bolstered immediately following coverage of an ETS development. In the wake of such stories, attention given to relatively minor happenings (e.g. Cambridge smoking restrictions) receive a higher amount of coverage. 2) Continued press activity will track tobacco excise taxes (state/federal levels) and proposals to censor the industry's speech. On both issues, our political and press strategies of incorporating coalition members and allies work well, and should continue to be emphasized along with industry viewpoints. Broadening the base of support is often a successful press strategy. o Industry positions are generally strong and compelling. Allies and expert consultants have assisted in gaining a great deal of ground. Increasing utilization of both resources through carefully planned, aggressive media strategies is the challenge. 1) As we have seen in the past, the staging of preemptive media activities works well, and allows greater latitude to frame our message while weakening that of the opposition. One example of this which clearly stands out was the 9 TI DN 0017997

====== CON F I D E NT IA L====== liI1S DUCIiAIENT IS SUBJECT TO A COURT ORDER AND TIIIC DOCUSIE.NT AND ITS CONTENTS SHALL NOT BE USED. SIIOwN OR DISTRIRUTED EXCEPT AS PROVIDED IN TIIE COURT'S ORDER Sciences, and Surgeon General's report). There is little or no independent reporting on ETS science. -- Media interest in smoking restrictions is bolstered immediately following coverage of an ETS development. In the wake of such stories, attention given to relatively minor happenings (e.g. Cambridge smoking restrictions) receive a higher amount of coverage. 2) Continued press activity will track tobacco excise taxes (state/federal levels) and proposals to censor the industry's speech. On both issues, our political and press strategies of incorporating coalition members and allies work well, and should continue to be emphasized along with industry viewpoints. Broadening the base of support is often a successful press strategy. o Industry positions are generally strong and compelling. Allies and expert consultants have assisted in gaining a great deal of ground. Increasing utilization of both resources through carefully planned, aggressive media strategies is the challenge. 1) As we have seen in the past, the staging of preemptive media activities works well, and allows greater latitude to frame our message while weakening that of the opposition. One example of this which clearly stands out was the 9 TI DN 0017997

===-== CO NFI D E NT I A L====== 'ITIIS DOCUMENT IS SUIiJEC'T 10 A COURT t)RDI:R nN1) IIIIS DOCUMENT nND I'fS CONTENTS SIIAI.L Nc)T BE USED. SIIOWN OR DISTRI6UTED E\CI:I'I' AS PRUVIDEI) IN TIIE Cl)I:RT'S ORDER pre-emption by The Institute smoking on airlines. of the NAS' call for banning 2) Through staff visits, consultant appearances, and the sending of reinforcing materials to all levels of media nationwide, we continue to develop a base of contacts and information. As the level of awareness rises, skepticism decreases, and visibility of the industry's views increases. 3) Satellite transmissions to deliver information to electronic media have become analogous to messeriger dispatch of news releases to newspapers. Amid clutter, the content of both must be news - or feature writing. TI has had successful experience in the satellite medium, and, by expanding its use can counter the numerical superiority of grass-roots opposition. III. Objective To encourage fairer coverage and editorial balance of key tobacco issues in the media. 10 TI DN 0017998

===-== CO NFI D E NT I A L====== 'ITIIS DOCUMENT IS SUIiJEC'T 10 A COURT t)RDI:R nN1) IIIIS DOCUMENT nND I'fS CONTENTS SIIAI.L Nc)T BE USED. SIIOWN OR DISTRI6UTED E\CI:I'I' AS PRUVIDEI) IN TIIE Cl)I:RT'S ORDER pre-emption by The Institute smoking on airlines. of the NAS' call for banning 2) Through staff visits, consultant appearances, and the sending of reinforcing materials to all levels of media nationwide, we continue to develop a base of contacts and information. As the level of awareness rises, skepticism decreases, and visibility of the industry's views increases. 3) Satellite transmissions to deliver information to electronic media have become analogous to messeriger dispatch of news releases to newspapers. Amid clutter, the content of both must be news - or feature writing. TI has had successful experience in the satellite medium, and, by expanding its use can counter the numerical superiority of grass-roots opposition. III. Objective To encourage fairer coverage and editorial balance of key tobacco issues in the media. 10 TI DN 0017998

====== CONFIDENTIAL ====== ITIIS DOCUNENT IS SI;RIECT "fO A COURT ORDER AND rt11S DOCUMENT AND ITS CONTENTS Sf1ALL NOT BE USED. SIIOW'N OR DIS"fRIRUTED EXCEPT AS PROVIDED IN TlIE COURT'S ORDER IV. Strategies, Goals and Tactics Strategy I: Increase Levels of media outreach activities, counter-attack, and offensive press strategies Z Goals and Tactics: 1) Keep the Institute in the driver's seat through speakers' availability and, to the extent possible, knowledge of anti-smoking announcements before the fact. Working closely with the TI Information Center, refine and improve the continuing program to monitor anti-smoking research and activities.1 Using this information, develop press strategies to counteract publication or announcements whenever possible. a) Conduct preemptive media conferences or in-person media damage control operations.2 b) Alert the media to TI availability and position via national and/or local wire services.2 c) Distribute position papers, press releases and other materials.2 d) Produce TV and radio satellite packages for targeted or blanket feeds.2 1 1 TI DN 0017999

====== CONFIDENTIAL ====== ITIIS DOCUNENT IS SI;RIECT "fO A COURT ORDER AND rt11S DOCUMENT AND ITS CONTENTS Sf1ALL NOT BE USED. SIIOW'N OR DIS"fRIRUTED EXCEPT AS PROVIDED IN TlIE COURT'S ORDER IV. Strategies, Goals and Tactics Strategy I: Increase Levels of media outreach activities, counter-attack, and offensive press strategies Z Goals and Tactics: 1) Keep the Institute in the driver's seat through speakers' availability and, to the extent possible, knowledge of anti-smoking announcements before the fact. Working closely with the TI Information Center, refine and improve the continuing program to monitor anti-smoking research and activities.1 Using this information, develop press strategies to counteract publication or announcements whenever possible. a) Conduct preemptive media conferences or in-person media damage control operations.2 b) Alert the media to TI availability and position via national and/or local wire services.2 c) Distribute position papers, press releases and other materials.2 d) Produce TV and radio satellite packages for targeted or blanket feeds.2 1 1 TI DN 0017999

====== C O N FI D ENTI AL ====== 'TUIS DcKUNIL.N'( IS SUUICCT TO A COURT ORDER AND lillti DOCUMENT AND ITS CONTENTS SUALL NOT BE USED. SIIOWN OR DISTRIUU'fED ERCEPT AS PROVIDED IN TIIF. COURT'S ORDER e) Use satellite sequential interviews to make experts or TI representative available to press.1 2) Raise the high level of grass-roots contact through targeted mailings and issue campaigns.2 Specifically, conduct no fewer than three such mailings each quarter. a) Conduct mass-scale "FYI" and Tobacco Update distribution of favorable clippings, transcripts, editorials, statements, etc. to targeted national and grass-roots reporters. b) Incorporate speakers' new media contacts into target lists.1 c) Bring the capability for such mailings in-house;1 update(refine various target lists on a quarterly basis. d) Increase dissemination of materials and contacts with appropriate trade publications, allied and industry supplier's trade journals.2 e) Continue to promote "Prohibition: Lessons from the Past" video, showing anti-smokers as new-era prohibitionists. 12 TI DN 0018000

====== C O N FI D ENTI AL ====== 'TUIS DcKUNIL.N'( IS SUUICCT TO A COURT ORDER AND lillti DOCUMENT AND ITS CONTENTS SUALL NOT BE USED. SIIOWN OR DISTRIUU'fED ERCEPT AS PROVIDED IN TIIF. COURT'S ORDER e) Use satellite sequential interviews to make experts or TI representative available to press.1 2) Raise the high level of grass-roots contact through targeted mailings and issue campaigns.2 Specifically, conduct no fewer than three such mailings each quarter. a) Conduct mass-scale "FYI" and Tobacco Update distribution of favorable clippings, transcripts, editorials, statements, etc. to targeted national and grass-roots reporters. b) Incorporate speakers' new media contacts into target lists.1 c) Bring the capability for such mailings in-house;1 update(refine various target lists on a quarterly basis. d) Increase dissemination of materials and contacts with appropriate trade publications, allied and industry supplier's trade journals.2 e) Continue to promote "Prohibition: Lessons from the Past" video, showing anti-smokers as new-era prohibitionists. 12 TI DN 0018000

===- = CONFIDENTIAL --____ rIIIS I>OCU\1sNT IS SUIdJrCT TO A COURT ORDER ANU rHIS D(KUMGNT ANI) ITS CONTF:NTS SIIALL NOT 6E USED. ti11OU'N OR UISTRIISUII:.I) F;TCTPT AS I'ROVIUCO IN Tlif': COURT'S ORI)I:R 3) Use media trade publication advertising to increase awareness of and demand for TI speakers.1 Place at least one ad promoting the media teams' availability in Editor and Publisher and Broadcasting magazines each six months. 4) Improve development of more thorough contacts with the national media representatives in Washington, D.C.2 Build the current systematic approach by: a) Continue to refine the target list of key, influential reporters based in Washington, with designation of specific issues of interest to each individual.1 b) In coordination with the issues managers, determining which issues should be handled each month, and meet with no fewer than 10 designated reporters per month.1 c) Providing a continuous feed of information (at least one follow-up package per month) on subjects of interest.1 5) At least once per quarter, schedule and promote a news-making event, utilizing satellite transmissions and 13 TI DN 0018001

===- = CONFIDENTIAL --____ rIIIS I>OCU\1sNT IS SUIdJrCT TO A COURT ORDER ANU rHIS D(KUMGNT ANI) ITS CONTF:NTS SIIALL NOT 6E USED. ti11OU'N OR UISTRIISUII:.I) F;TCTPT AS I'ROVIUCO IN Tlif': COURT'S ORI)I:R 3) Use media trade publication advertising to increase awareness of and demand for TI speakers.1 Place at least one ad promoting the media teams' availability in Editor and Publisher and Broadcasting magazines each six months. 4) Improve development of more thorough contacts with the national media representatives in Washington, D.C.2 Build the current systematic approach by: a) Continue to refine the target list of key, influential reporters based in Washington, with designation of specific issues of interest to each individual.1 b) In coordination with the issues managers, determining which issues should be handled each month, and meet with no fewer than 10 designated reporters per month.1 c) Providing a continuous feed of information (at least one follow-up package per month) on subjects of interest.1 5) At least once per quarter, schedule and promote a news-making event, utilizing satellite transmissions and 13 TI DN 0018001

==_ === CONFIDENTIAL =__-=_ 1'1115 D()CL'MI:N f IS tiIiRJEC'T TO A COURT ()RIJI:R AND fI11S DOCUMENT AND ITS CONTENTS SHALL NOT DE USED. SIIOWN OR DISTRIDUTED EXCEPT AS PROVIDED IN Tl1E COURT'S ORDER third party allies wherever possible to garner the most possible exposure.2 Possibilities include.: a) ETS surveys using the Portable Air Sampling System (PASS) units; b) Polls of public attitudes on tobacco-related issues; c) Coalition groups speaking out on key issues; and d) Press breakfasts on topical concerns. Strategy II: Expand the "Truth Squad" (third-party experts) approach in the management of the ETS issue, while broadening the issue to that of indoor air quality.2 Goals and Tactics: 1) Redirect the press to questions left unanswered by anti- smokers and ETS research. a) Using media trade publications, advertise "The 10 Questions Anti-Smokers Don't Want You to Ask." b) Use these questions to focus press queries about TI's position. .14 TI DN 0018002

==_ === CONFIDENTIAL =__-=_ 1'1115 D()CL'MI:N f IS tiIiRJEC'T TO A COURT ()RIJI:R AND fI11S DOCUMENT AND ITS CONTENTS SHALL NOT DE USED. SIIOWN OR DISTRIDUTED EXCEPT AS PROVIDED IN Tl1E COURT'S ORDER third party allies wherever possible to garner the most possible exposure.2 Possibilities include.: a) ETS surveys using the Portable Air Sampling System (PASS) units; b) Polls of public attitudes on tobacco-related issues; c) Coalition groups speaking out on key issues; and d) Press breakfasts on topical concerns. Strategy II: Expand the "Truth Squad" (third-party experts) approach in the management of the ETS issue, while broadening the issue to that of indoor air quality.2 Goals and Tactics: 1) Redirect the press to questions left unanswered by anti- smokers and ETS research. a) Using media trade publications, advertise "The 10 Questions Anti-Smokers Don't Want You to Ask." b) Use these questions to focus press queries about TI's position. .14 TI DN 0018002

====== CONFIDENTIAL ==___ rI1IS DoC'cY11 iN'r iS SrNr:c'T r0 A C'ocRT oROI fR AND rmS IX)C'I:MENT ANI) ITS C'ONTENTS SI1ALl NpT UI: USED. SIIOWN OR DISfRI13UTED EXCEPT AS PROVIDED IN TlIE C()URTS l)RDF,R 2) Continue to promote the indoor air quality issue. a) Based on current success, more frequently schedule media tours, by third parties, scientific, and technical experts. Schedule at least three tours per month. (1) Two scientists will be promoted by a PR agency and travel independently of TI, and , (2) Continue to utilize at least one ETS expert who will accompany a TI speaker. b) In mailings to and conversations with the media, include studies and facts which show ETS to be a signal, not the cause, of poor indoor air quality. c) Increase exposure of scientists via satellite deliveries.1 Plan and promote at least one "progressive dinner," obtaining State Activities Division advice in determining what media market would be most appropriate each quarter. d) In conjunction with legislative appearances of scientific witnesses, determine on a case-by-case basis, the advisability of promoting these witnesses to the media. 15 TI DN 0018003

====== CONFIDENTIAL ==___ rI1IS DoC'cY11 iN'r iS SrNr:c'T r0 A C'ocRT oROI fR AND rmS IX)C'I:MENT ANI) ITS C'ONTENTS SI1ALl NpT UI: USED. SIIOWN OR DISfRI13UTED EXCEPT AS PROVIDED IN TlIE C()URTS l)RDF,R 2) Continue to promote the indoor air quality issue. a) Based on current success, more frequently schedule media tours, by third parties, scientific, and technical experts. Schedule at least three tours per month. (1) Two scientists will be promoted by a PR agency and travel independently of TI, and , (2) Continue to utilize at least one ETS expert who will accompany a TI speaker. b) In mailings to and conversations with the media, include studies and facts which show ETS to be a signal, not the cause, of poor indoor air quality. c) Increase exposure of scientists via satellite deliveries.1 Plan and promote at least one "progressive dinner," obtaining State Activities Division advice in determining what media market would be most appropriate each quarter. d) In conjunction with legislative appearances of scientific witnesses, determine on a case-by-case basis, the advisability of promoting these witnesses to the media. 15 TI DN 0018003

====== CONFIDENTIAL =__-=_ rHIs DOCUnff.NT IS ScR1f:CT TO A COURT ORDER AND rHIS DOCUMENT AND ITS CONTF.NTS S11ALL NOT OE USED. SUOW'N OR DISTRIRIITL:D EXCEPT AS PROVIDED IN TIIE COURT'S ORDER 1 Strategy III: Improve the management and coordination of media relations efforts. Goals and Tactics: 1) Improve currently satisfactory coordination among Public Affairs issue managers, and Federal Relations and State Activities personnel, to provide for the best strategic planning as well as the most thoughtful and advantageous positions taken with the media. a) Insure maintenance of clearly designated clearance points for materials, questions and/or new developments on issues. Develop "checklist" to be used when such an occasion arises.1 b) Assure a meeting between the director of media relations and designated representatives from the other divisions no less than once a month, to determine and review activities in Light of developments.1 2) For key issues, keep up to date, in concert with issue managers and appropriate other staff, agenda points for speakers' use with the media.2 16 TI DN 0018004

====== CONFIDENTIAL =__-=_ rHIs DOCUnff.NT IS ScR1f:CT TO A COURT ORDER AND rHIS DOCUMENT AND ITS CONTF.NTS S11ALL NOT OE USED. SUOW'N OR DISTRIRIITL:D EXCEPT AS PROVIDED IN TIIE COURT'S ORDER 1 Strategy III: Improve the management and coordination of media relations efforts. Goals and Tactics: 1) Improve currently satisfactory coordination among Public Affairs issue managers, and Federal Relations and State Activities personnel, to provide for the best strategic planning as well as the most thoughtful and advantageous positions taken with the media. a) Insure maintenance of clearly designated clearance points for materials, questions and/or new developments on issues. Develop "checklist" to be used when such an occasion arises.1 b) Assure a meeting between the director of media relations and designated representatives from the other divisions no less than once a month, to determine and review activities in Light of developments.1 2) For key issues, keep up to date, in concert with issue managers and appropriate other staff, agenda points for speakers' use with the media.2 16 TI DN 0018004

====== CONFIDENTIAL ====== nus uucutn!NI ii SlailGCr ruA( OCRT ORDER AND nlls I)(x'l1MLYf :\NI) Il'S CONTf\TS tiflAl.l, NOT Rl: l1S[I). SIION'N OR Ulll'RIIfIITI:D F_XCfl'f AS PRnVIDf.D IN TI1E COIIRT'G ORDER 3) Raise the standard of quality of the media team's activities, and assess improvement on a regular basis.2 a) In addition to daily scrutiny, conduct, at least once a month, a comprehensive review session among the media relations team of video tapes and newspaper clips.I b) Begin sending, each quarter, video tapes of speaker performances to an outside media consultant for independent evaluation and expert commentary.1 c) Regularize each six-months, a video taped review session between each media team member and the Public Affairs Division issue managers.2 4) Continue "walk and shoot" planning -- combining long- range strategic efforts with detailed mapping of all team activities. This will include: a) Advance targeting of locations for media activity with State Activities. (1) Gain advance approval (at least two months in advance) for media tours by traveling speakers and consultants. 17 TI DN 0018005

====== CONFIDENTIAL ====== nus uucutn!NI ii SlailGCr ruA( OCRT ORDER AND nlls I)(x'l1MLYf :\NI) Il'S CONTf\TS tiflAl.l, NOT Rl: l1S[I). SIION'N OR Ulll'RIIfIITI:D F_XCfl'f AS PRnVIDf.D IN TI1E COIIRT'G ORDER 3) Raise the standard of quality of the media team's activities, and assess improvement on a regular basis.2 a) In addition to daily scrutiny, conduct, at least once a month, a comprehensive review session among the media relations team of video tapes and newspaper clips.I b) Begin sending, each quarter, video tapes of speaker performances to an outside media consultant for independent evaluation and expert commentary.1 c) Regularize each six-months, a video taped review session between each media team member and the Public Affairs Division issue managers.2 4) Continue "walk and shoot" planning -- combining long- range strategic efforts with detailed mapping of all team activities. This will include: a) Advance targeting of locations for media activity with State Activities. (1) Gain advance approval (at least two months in advance) for media tours by traveling speakers and consultants. 17 TI DN 0018005

==-=== CONFIDENTIAL ===== i11I5 IH)CI:%IGNT iti SUBJECT TO A COURT ORDLR AND TIIIS DOCUMGNT ANI) ITS CONTENTS Sf1ALL NOT BE USED. SHOWN OR DISTRI6UT[D EXCEPT AS PROVIDED IN TII[ COIJRT'S ORDER (2) Re-clear activity no later than two weeks prior to departure. No media meetings will be set up with out this later clearance by Regional Vice President. (3) For individual media or speaking engagements, gain approval from Regional Vice President prior to acceptance. (4) Document all such coordination. b) Selection of the appropriate solo consultant or speaker/consultant team for each media market. c) Monthly meetings of media team to.designate the market assignments as appropriate. d) Two-month calendar planning of specific media tours with consultants, speakers' media contact tours, consultants who do media work without a TI representative schedule, and other travel plans. The two month planning for each traveling speaker will include: (1) A minimum of two travel days per week, or the equivalent on a monthly basis; , a TI DN 0018006

==-=== CONFIDENTIAL ===== i11I5 IH)CI:%IGNT iti SUBJECT TO A COURT ORDLR AND TIIIS DOCUMGNT ANI) ITS CONTENTS Sf1ALL NOT BE USED. SHOWN OR DISTRI6UT[D EXCEPT AS PROVIDED IN TII[ COIJRT'S ORDER (2) Re-clear activity no later than two weeks prior to departure. No media meetings will be set up with out this later clearance by Regional Vice President. (3) For individual media or speaking engagements, gain approval from Regional Vice President prior to acceptance. (4) Document all such coordination. b) Selection of the appropriate solo consultant or speaker/consultant team for each media market. c) Monthly meetings of media team to.designate the market assignments as appropriate. d) Two-month calendar planning of specific media tours with consultants, speakers' media contact tours, consultants who do media work without a TI representative schedule, and other travel plans. The two month planning for each traveling speaker will include: (1) A minimum of two travel days per week, or the equivalent on a monthly basis; , a TI DN 0018006

____== CONFIDENTIAL TlIIS Dp('UNt:YT IS SUUJf;C'T TO A C'OUR I' ORUI:R AND 1'l IIS UOC'UMENT AND ITS CONTF"N75 SIIALI. NOT BE USI:D. SUO\b'N OR I)ISTRIRUT[D EXCI:PT AS PROVIDED IN 1'f1E C'OURT'S ORDCR (2) A minimum of one consultant/aLLy interview tour per month in a major media market; (3) A minimum of one two-day major market media contact tour -- which may include participation in a media conference. 5) Increase by 15 percent compared with 1987, the speaker team goals, standards and clear expectations of performance.2 Speakers will be expected to complete, on a monthly basis, the following: a) No fewer than five media contacts per tour. b) No fewer than five joint interviews per each designated monthly consultant/ally interview tour. c) No fewer than two media appearances on the road 'involving more than two days of advance notice for unsolicited requests. d) With the exception of Sundays, holidays and days involving four or more hours of air travel, no fewer than two media interviews or contacts. Strategy I9: Increase the use of consultants and allies on other isaues.2 19 TI DN 0018001

____== CONFIDENTIAL TlIIS Dp('UNt:YT IS SUUJf;C'T TO A C'OUR I' ORUI:R AND 1'l IIS UOC'UMENT AND ITS CONTF"N75 SIIALI. NOT BE USI:D. SUO\b'N OR I)ISTRIRUT[D EXCI:PT AS PROVIDED IN 1'f1E C'OURT'S ORDCR (2) A minimum of one consultant/aLLy interview tour per month in a major media market; (3) A minimum of one two-day major market media contact tour -- which may include participation in a media conference. 5) Increase by 15 percent compared with 1987, the speaker team goals, standards and clear expectations of performance.2 Speakers will be expected to complete, on a monthly basis, the following: a) No fewer than five media contacts per tour. b) No fewer than five joint interviews per each designated monthly consultant/ally interview tour. c) No fewer than two media appearances on the road 'involving more than two days of advance notice for unsolicited requests. d) With the exception of Sundays, holidays and days involving four or more hours of air travel, no fewer than two media interviews or contacts. Strategy I9: Increase the use of consultants and allies on other isaues.2 19 TI DN 0018001

Goals and Tactics: ====== CONFIDENTIAL =_____ TIJIS DOCUMENT IS SUIlJ[CT TO A COURT ORD[R .WI) flllti DOCUM[NT AL'D ITS CONTENTS SIIALL NOT D[ USED. SHOWN OR DISTRII3UTI:D EXCEPT AS I'ROVID[D IN I'IIF. COURT'S ORDI:R i) Increase the visibility of independent voices and consulting experts on tobacco-related issues. a) Each traveling speaker will be assigned at least one consultant/ally media tour each month. b) No fewer than five interviews will be conducted on each visit to a major media market. 2) Broaden the press and public perception of opposition to anti-smoking measures. a) To the greatest extent possible, coverage of consultants, allies, and independent experts will be used for mass-mailings.2 3) Work with issue managers to increase the number of and determine the advisability of expert consultants for media use.2 20 TI DN 0018008

Goals and Tactics: ====== CONFIDENTIAL =_____ TIJIS DOCUMENT IS SUIlJ[CT TO A COURT ORD[R .WI) flllti DOCUM[NT AL'D ITS CONTENTS SIIALL NOT D[ USED. SHOWN OR DISTRII3UTI:D EXCEPT AS I'ROVID[D IN I'IIF. COURT'S ORDI:R i) Increase the visibility of independent voices and consulting experts on tobacco-related issues. a) Each traveling speaker will be assigned at least one consultant/ally media tour each month. b) No fewer than five interviews will be conducted on each visit to a major media market. 2) Broaden the press and public perception of opposition to anti-smoking measures. a) To the greatest extent possible, coverage of consultants, allies, and independent experts will be used for mass-mailings.2 3) Work with issue managers to increase the number of and determine the advisability of expert consultants for media use.2 20 TI DN 0018008

====== CONFIDENTIAL ====== THIS DOCUMENT IS SUBJECT TO A COURT ORDER AND THIS DOCUMENT AND ITS CONTENTS SHALL NOT BE USED. SHOWN OR DISTRIBUTED EXCEPT AS PROVIDED IN l'IIF. COURT'S ORDER IV. Resources A. Staff 1) Media Relations: (Vacant media relations director position to be filled), Moran, Merryman, Goss, Halicki, Smith and Baumann 2) Other Public Affairs: Issue Managers, Information Center, Special Projects, Production Services 3) Other Staff: Federal Relations, State Activities and data processing 4) Consultants Public relations counsel, expert consultants, P.R. Aids, TV and radio satellite services, data base providers. B. Materials 1) Press releases 2) Statements 3) Advisories 4) Fact Sheets 5) Daybook/calendar notices 6) Videos 7) "FYI" and Tobacco Update mailings 8) In-house mailing lists 9) Poll Documents 10) Economic Impact materials 11) Scientific Reports 12) Clip and broadcast monitor services e 21 Ta vN 0018009

====== CONFIDENTIAL ====== THIS DOCUMENT IS SUBJECT TO A COURT ORDER AND THIS DOCUMENT AND ITS CONTENTS SHALL NOT BE USED. SHOWN OR DISTRIBUTED EXCEPT AS PROVIDED IN l'IIF. COURT'S ORDER IV. Resources A. Staff 1) Media Relations: (Vacant media relations director position to be filled), Moran, Merryman, Goss, Halicki, Smith and Baumann 2) Other Public Affairs: Issue Managers, Information Center, Special Projects, Production Services 3) Other Staff: Federal Relations, State Activities and data processing 4) Consultants Public relations counsel, expert consultants, P.R. Aids, TV and radio satellite services, data base providers. B. Materials 1) Press releases 2) Statements 3) Advisories 4) Fact Sheets 5) Daybook/calendar notices 6) Videos 7) "FYI" and Tobacco Update mailings 8) In-house mailing lists 9) Poll Documents 10) Economic Impact materials 11) Scientific Reports 12) Clip and broadcast monitor services e 21 Ta vN 0018009

==-- = CONFIDENTIAL -____ T111S DOCUMENT IS SUBJECT TO A COURT ORDER AND TUIS DOCUMENT AND ITS CONTENTS SHALL NOT 6E USED. SIIOW'N OR DISTRIBUTED EXCEPT AS PROVIDED IN TIIE COURT'S ORDER THE TOBACCO INSTITUTE 1988 BUDGET COST CENTER NAME Public Affairs - Media Relations No. 1303 1987 1987 1988 Account Page Budget Estimated Budget Number Description Ref. ($000) ($000) 000 3901 Travel ............................. .... $220 $175 $230 4001 Conferences & Meetings ............. .... 30 30 33 4801 Books & Subscriptions .............. .... - 1 - 5001 0 ice Supplies .................... .... 5 t 5 5101 Postage & Delivery ................. .... 33 75 50 5201 Reproductidn, Printing & Drafting.. .... 100 60 40 5401 Other Office Expenses .............. .... 54 84 60 5500 Membership and Training ............ .... 1 - 10 6201 Advertising ........................ .... 20 10 20 7301 Professional Fees .................. .... 225 265 595 8108 Outside data bases ................. .... 5 0 0 )30 Purchased computer services........ .... 0 10 12 TOTALS ......................... .... 69.3 $711 1055 The proposed budget for media relations activities in 1988 reflects several proposed changes in operations and.expectations. Reduced budget line items (Postage & Delivery, Reproduction, Printing & Drafting, and Other Office Expenses) result from bringing several capabilities in-house, and no expected video/b-roll production. Proposed increases for 1988 (Advertising, Training, and Professional Fees) are attributable to retaining a media consultant to provide ongoing evluation, increased advertising in media trade publications, increased special projects support, filling the State Activities Division request for PR counsel in key markets, and expenditures for satellite and electronic support. a. 22 'I'I DN 0018010

==-- = CONFIDENTIAL -____ T111S DOCUMENT IS SUBJECT TO A COURT ORDER AND TUIS DOCUMENT AND ITS CONTENTS SHALL NOT 6E USED. SIIOW'N OR DISTRIBUTED EXCEPT AS PROVIDED IN TIIE COURT'S ORDER THE TOBACCO INSTITUTE 1988 BUDGET COST CENTER NAME Public Affairs - Media Relations No. 1303 1987 1987 1988 Account Page Budget Estimated Budget Number Description Ref. ($000) ($000) 000 3901 Travel ............................. .... $220 $175 $230 4001 Conferences & Meetings ............. .... 30 30 33 4801 Books & Subscriptions .............. .... - 1 - 5001 0 ice Supplies .................... .... 5 t 5 5101 Postage & Delivery ................. .... 33 75 50 5201 Reproductidn, Printing & Drafting.. .... 100 60 40 5401 Other Office Expenses .............. .... 54 84 60 5500 Membership and Training ............ .... 1 - 10 6201 Advertising ........................ .... 20 10 20 7301 Professional Fees .................. .... 225 265 595 8108 Outside data bases ................. .... 5 0 0 )30 Purchased computer services........ .... 0 10 12 TOTALS ......................... .... 69.3 $711 1055 The proposed budget for media relations activities in 1988 reflects several proposed changes in operations and.expectations. Reduced budget line items (Postage & Delivery, Reproduction, Printing & Drafting, and Other Office Expenses) result from bringing several capabilities in-house, and no expected video/b-roll production. Proposed increases for 1988 (Advertising, Training, and Professional Fees) are attributable to retaining a media consultant to provide ongoing evluation, increased advertising in media trade publications, increased special projects support, filling the State Activities Division request for PR counsel in key markets, and expenditures for satellite and electronic support. a. 22 'I'I DN 0018010

_____= CONFIDENTIAL ====== T IIIS DOCUMENT IS SUI3JECT FO.\ COURI' ORDER AND TIIIS IX3CUMENT ANU ITS CONTENTS SHALL NOf BE USED. SIfOWN OR DISTRIBUTED EXCEPT AS PROVIDED IN TIIE COURT'S ORDER THE TOBACCO INSTITUTE 1988 BUDGET COST CENTER Public Affairs - Media Relations No. 1303 1987 Budget 1987 Estimated 1988 Budget 000 ($000) ($000) Account #4001 - Conferences and Meetings Tobacco College 30 $ 30 $ 33 Account #5101 - Postage & Delivery Mailgrams $ 12 $ 25 $ 20 Targeted op-ed mailings (24) 3 t0 - Targeted radio/TV news mailings (12) 9 20 - 'argeted print issue mailings'(24) 9 20 - Nationwide media mailings (2) - - 16 Targeted print/broadcast mailings (4)* - 14 33 $ 75 $50 Account #5201 - Reproduction, Printing 6 Dr~ing Preparation of mailing & press materials $ 45 $ 21 $ 25 production materials of video & audio - 39 15 "Behind the Headlines" 20 - - Issue B-roll tapes (5) 35 - $100 $ 60 $ 40 Account #6201 - Advertising Media team and Truth Squad promotional ads 20 $ 10 $ 20 23 TI DN 0018011

_____= CONFIDENTIAL ====== T IIIS DOCUMENT IS SUI3JECT FO.\ COURI' ORDER AND TIIIS IX3CUMENT ANU ITS CONTENTS SHALL NOf BE USED. SIfOWN OR DISTRIBUTED EXCEPT AS PROVIDED IN TIIE COURT'S ORDER THE TOBACCO INSTITUTE 1988 BUDGET COST CENTER Public Affairs - Media Relations No. 1303 1987 Budget 1987 Estimated 1988 Budget 000 ($000) ($000) Account #4001 - Conferences and Meetings Tobacco College 30 $ 30 $ 33 Account #5101 - Postage & Delivery Mailgrams $ 12 $ 25 $ 20 Targeted op-ed mailings (24) 3 t0 - Targeted radio/TV news mailings (12) 9 20 - 'argeted print issue mailings'(24) 9 20 - Nationwide media mailings (2) - - 16 Targeted print/broadcast mailings (4)* - 14 33 $ 75 $50 Account #5201 - Reproduction, Printing 6 Dr~ing Preparation of mailing & press materials $ 45 $ 21 $ 25 production materials of video & audio - 39 15 "Behind the Headlines" 20 - - Issue B-roll tapes (5) 35 - $100 $ 60 $ 40 Account #6201 - Advertising Media team and Truth Squad promotional ads 20 $ 10 $ 20 23 TI DN 0018011

====== CONFIDENTIAL ====== TIIIS DUCUNENT IS SU6JECT TU A COURT ORDER AND TIIIS DOCUMENT AND ITS CONTENTS SHALL NOT BE liSED. SHOWN OR DISTRH7UTED EXCEPT AS I'ROVIDED IN TIIE COURT'S ORDER 'ST CENTER Public Affairs - Media Relations Page 2 No. 1303 1987 1987 1988 Budget 000 Estimated ($000) Budget ($000) Account #7301 - Professional Fees Media relations $135 $ 200 $ 95 PR counsel in key markets (per SAD request)* 90 35 150 Special projects support Publicity for PASS studies* (6 @ $30,000) 30 180 Miscellaneous - 60 Satellite/electronic support - 90 Media training for consultants/staff* - 20 $225 $265 $595 TOTALS ....................... $693 $711 $1,055 24 TI DN 0018012

====== CONFIDENTIAL ====== TIIIS DUCUNENT IS SU6JECT TU A COURT ORDER AND TIIIS DOCUMENT AND ITS CONTENTS SHALL NOT BE liSED. SHOWN OR DISTRH7UTED EXCEPT AS I'ROVIDED IN TIIE COURT'S ORDER 'ST CENTER Public Affairs - Media Relations Page 2 No. 1303 1987 1987 1988 Budget 000 Estimated ($000) Budget ($000) Account #7301 - Professional Fees Media relations $135 $ 200 $ 95 PR counsel in key markets (per SAD request)* 90 35 150 Special projects support Publicity for PASS studies* (6 @ $30,000) 30 180 Miscellaneous - 60 Satellite/electronic support - 90 Media training for consultants/staff* - 20 $225 $265 $595 TOTALS ....................... $693 $711 $1,055 24 TI DN 0018012

====== CO N FI D E NT IA L=___=_ I IIIS IXx'lIMUuT IS SUIUI:C'T 10 A COURT ORDER .\ND fI11S DOCUMENT AND ITS CONTENTS SUALL NOT 6L USED. SHOWN OR DISTRII3UTLD EXCEPT AS PROVIDED IN TIIf: COI:RT'S ORDER INFORMATION CENTER I. Background The role of the Information Center (the "Center") is to maintain a document file and library, and to provide information and analyses to individuals responsible for developing policy, managing issues and communicating positions on behalf of The Tobacco Institute's member companies. Management of the Center was assigned to the public-Affairs Division in 1986. The Center was successfully reorganized in 1987 according to a plan approved and launched in the fourth quarter of 1986. The plan, designed to promote efficiency, economy and versatility in providing information services, brought about significant changes in staff, basic services and assignments. Among its many positive results, the reorganization achieved its fundamental objective: to develop a flexible, versatile and creative staff. Each of the Center's six positions was redefined and one was upgraded between May 1986 and May 1987 to reflect its changing mission. The Center was fully staffed by the beginning of 1987, and individuals not on the Division roster on October 1, 1986, now occupy four of the Center's six positions. 25 ' a'I DN 0018013 E

====== CO N FI D E NT IA L=___=_ I IIIS IXx'lIMUuT IS SUIUI:C'T 10 A COURT ORDER .\ND fI11S DOCUMENT AND ITS CONTENTS SUALL NOT 6L USED. SHOWN OR DISTRII3UTLD EXCEPT AS PROVIDED IN TIIf: COI:RT'S ORDER INFORMATION CENTER I. Background The role of the Information Center (the "Center") is to maintain a document file and library, and to provide information and analyses to individuals responsible for developing policy, managing issues and communicating positions on behalf of The Tobacco Institute's member companies. Management of the Center was assigned to the public-Affairs Division in 1986. The Center was successfully reorganized in 1987 according to a plan approved and launched in the fourth quarter of 1986. The plan, designed to promote efficiency, economy and versatility in providing information services, brought about significant changes in staff, basic services and assignments. Among its many positive results, the reorganization achieved its fundamental objective: to develop a flexible, versatile and creative staff. Each of the Center's six positions was redefined and one was upgraded between May 1986 and May 1987 to reflect its changing mission. The Center was fully staffed by the beginning of 1987, and individuals not on the Division roster on October 1, 1986, now occupy four of the Center's six positions. 25 ' a'I DN 0018013 E

====== CONFIDENTIAL ==== TIIIS DOCUMENT IS SUBJECT TO A COURT ORDER AND TIIIS DOCUMENT AND ITS CONTENTS SHALL NOT BE USED. SIIOw'N OR DISTRIOIITED EXCEPT AS PROVIDED IN THE COURT'S ORDER Center staff developed an internal research capability, thus meeting another objective of the reorganization. Center staff responded to specific requests for substantive research, producing quaiity.reports on, among other subjects, the National Cancer Institute, the House Subcommittee on Health and the Environment, the anti-smoking movement, convenience-store economics, and Rorean-American business and political activity. Similarly, staff prepared extensive profiles of members of Congress and their districts, political organizations, and various industries. They also attended and reported on scientific conferences, congressional hearings and news conferences. Meanwhile, the Center handled an average of 65 routine requests for information per month from Institute and member-company staff. Center staff also became responsible for managing several on-going functions and projects, including the weekly Executive Summary, the meetings-coverage procedures, Freedom of Information Act requests to government agencies, the annual Tobacco Industry profile, and the annual survey of member companies and the Council for Tobacco Research to determine the level of tobacco industry funding of biomedical research. Pursuant to the final objective of the reorganization, the Center streamlined its basic clerical functions, replacing its inefficient electronic archival system with an electronic index 26 Tr DN 0018014

====== CONFIDENTIAL ==== TIIIS DOCUMENT IS SUBJECT TO A COURT ORDER AND TIIIS DOCUMENT AND ITS CONTENTS SHALL NOT BE USED. SIIOw'N OR DISTRIOIITED EXCEPT AS PROVIDED IN THE COURT'S ORDER Center staff developed an internal research capability, thus meeting another objective of the reorganization. Center staff responded to specific requests for substantive research, producing quaiity.reports on, among other subjects, the National Cancer Institute, the House Subcommittee on Health and the Environment, the anti-smoking movement, convenience-store economics, and Rorean-American business and political activity. Similarly, staff prepared extensive profiles of members of Congress and their districts, political organizations, and various industries. They also attended and reported on scientific conferences, congressional hearings and news conferences. Meanwhile, the Center handled an average of 65 routine requests for information per month from Institute and member-company staff. Center staff also became responsible for managing several on-going functions and projects, including the weekly Executive Summary, the meetings-coverage procedures, Freedom of Information Act requests to government agencies, the annual Tobacco Industry profile, and the annual survey of member companies and the Council for Tobacco Research to determine the level of tobacco industry funding of biomedical research. Pursuant to the final objective of the reorganization, the Center streamlined its basic clerical functions, replacing its inefficient electronic archival system with an electronic index 26 Tr DN 0018014

===== CONFIDENTIAL ====== TIIIS DOCUMENT IS SUBJECT -fO A COURT ORDER AND TIIIS IX)CI; MENT AND ITS CONTENTS SIIALL NOT BE USED. SIIOWN OR DISTRII3UTED EXCEPT AS PROVIDED IN TfIE COURT'S ORDER of narrower scope and supplementing it with greater reliance on on-line commercial information services and nearby libraries. The Center also acquired a personal computer, enabling staff to manage the Institute's collections, and conduct on-line research, more efficiently. ( II. assu.ptions o The reorganization has resulted in greater efficiency, improved morale and better work-product. Attention must now shift from the elements of the reorganization -- establishing operating procedures and guidelines -- to fine-tuning the Center's role and increasing the direct involvement of Center staff in Division and Institute activities. o Issues managers and other Institute professionals are relying increasingly upon Center staff, rather than consultants, to fill their research, analysis and other information needs. This reliance should result in considerable cost savings. o Strategies to tap the full range of abilities of Center staff are the focus of this 1988 plan. Further strategies to improve the Center will be developed as problems and needs are identified. 27 TI DN 0018015

===== CONFIDENTIAL ====== TIIIS DOCUMENT IS SUBJECT -fO A COURT ORDER AND TIIIS IX)CI; MENT AND ITS CONTENTS SIIALL NOT BE USED. SIIOWN OR DISTRII3UTED EXCEPT AS PROVIDED IN TfIE COURT'S ORDER of narrower scope and supplementing it with greater reliance on on-line commercial information services and nearby libraries. The Center also acquired a personal computer, enabling staff to manage the Institute's collections, and conduct on-line research, more efficiently. ( II. assu.ptions o The reorganization has resulted in greater efficiency, improved morale and better work-product. Attention must now shift from the elements of the reorganization -- establishing operating procedures and guidelines -- to fine-tuning the Center's role and increasing the direct involvement of Center staff in Division and Institute activities. o Issues managers and other Institute professionals are relying increasingly upon Center staff, rather than consultants, to fill their research, analysis and other information needs. This reliance should result in considerable cost savings. o Strategies to tap the full range of abilities of Center staff are the focus of this 1988 plan. Further strategies to improve the Center will be developed as problems and needs are identified. 27 TI DN 0018015

III. Objective ====== CONFIDENTIAL =_____ 11115 DOCUMENT IS SU6IECT'1'O A COURT ORDER AND l'IIIS DOCU,%1I:Yf AND ITS CONTENTS SHALL NOT ISE USED. SHOWN OR DISTRIBUTED EXCEPT AS PROVIDED IN Tl1E COURT'S ORDER To provide efficient service to Institute staff and member companies with respect to their research and information needs. IV. Strategies. Goals and Tactics- Strategy I: Following established procedures, provide and systematically report on basic information services.2 Goals and Tactics: 1) Prepare 12 progress and variance reports in 1988 -- by the second Friday of each month. 2) Receive 12 activity reports from each professional staff member -- by the second Wednesday of each month.l 3) Prepare quarterly activity reports for the Division Director within 10 days of the end of each quarter.1 4) Produce 52 editions of the Executive SumIDary. Distri- bute to Institute Executive Committee members by the close of business each Friday.1 28 TI DN 0018016

III. Objective ====== CONFIDENTIAL =_____ 11115 DOCUMENT IS SU6IECT'1'O A COURT ORDER AND l'IIIS DOCU,%1I:Yf AND ITS CONTENTS SHALL NOT ISE USED. SHOWN OR DISTRIBUTED EXCEPT AS PROVIDED IN Tl1E COURT'S ORDER To provide efficient service to Institute staff and member companies with respect to their research and information needs. IV. Strategies. Goals and Tactics- Strategy I: Following established procedures, provide and systematically report on basic information services.2 Goals and Tactics: 1) Prepare 12 progress and variance reports in 1988 -- by the second Friday of each month. 2) Receive 12 activity reports from each professional staff member -- by the second Wednesday of each month.l 3) Prepare quarterly activity reports for the Division Director within 10 days of the end of each quarter.1 4) Produce 52 editions of the Executive SumIDary. Distri- bute to Institute Executive Committee members by the close of business each Friday.1 28 TI DN 0018016

====== CO N FI D E NT I AL ====== 1'1(1S DOC'IiMENT IS SUI3JECT TO A COURT ORDER i\N D DIIS DOCUMENT AND 11'S CONTENTS SiIALL NOT DE USED. SI1O`A'N OR DISTRIBUTED EXCEPT AS PROVIDED IN lT1E COURT'S ORDER 5) Prepare 26 calendars of significant meetings and conferences possibly requiring coverage; distribute every other Tuesday to Institute professional staff and counsel.1 6) Prepare 26 status reports on pending Freedom of Information Act requests; distribute on alternate Tuesdays to Institute professional staff and counsel.l 7) Prepare "Tobacco News Today" clipping service; distribute daily by 9:30 a.m. to Institute professional staff. 8) Prepare the annual Tobacco Industry Profile; distribute to Institute staff, member companies and others on distribution list by June 1.1 9) Prepare the annual report on funding of biomedical research by Institute member companies and the Council for Tobacco Research; distribute to Institute senior staff, spokespersons and member-company staff involved in preparing the report.l 10) Conduct monthly staff meetings to set priorities, adjust assignments and revise operating procedures as required. 29 TI DN 0018017

====== CO N FI D E NT I AL ====== 1'1(1S DOC'IiMENT IS SUI3JECT TO A COURT ORDER i\N D DIIS DOCUMENT AND 11'S CONTENTS SiIALL NOT DE USED. SI1O`A'N OR DISTRIBUTED EXCEPT AS PROVIDED IN lT1E COURT'S ORDER 5) Prepare 26 calendars of significant meetings and conferences possibly requiring coverage; distribute every other Tuesday to Institute professional staff and counsel.1 6) Prepare 26 status reports on pending Freedom of Information Act requests; distribute on alternate Tuesdays to Institute professional staff and counsel.l 7) Prepare "Tobacco News Today" clipping service; distribute daily by 9:30 a.m. to Institute professional staff. 8) Prepare the annual Tobacco Industry Profile; distribute to Institute staff, member companies and others on distribution list by June 1.1 9) Prepare the annual report on funding of biomedical research by Institute member companies and the Council for Tobacco Research; distribute to Institute senior staff, spokespersons and member-company staff involved in preparing the report.l 10) Conduct monthly staff meetings to set priorities, adjust assignments and revise operating procedures as required. 29 TI DN 0018017

====== CONFIDENTIAL ====== TIIIS DOCUMENT IS SUBJECT TO A COURT ORDER AND TIIIS IXX'UMENT AND ITS CONTENTS SHALL NOT BE USED. SfiOWN OR DISTRI(IUTED EXCEPT AS PROVIDED IN TUE COURT'S ORDER Strategy II: Emphasizing service and efficiency, maintain fundamental Library functions, including reference assistance, routine information retrieval and processing of requests for publications. Goals: 1) Answer each request for information within 48 hours. 2) Process requests for subscriptions and other publications within 48 hours of receipt. 3) Obtain and deliver various executive branch and congressional directories to users within one week of publication. 4) Conduct semi-annual surveys of Institute staff for comments regarding Center services. 5) Conduct an annual survey of Institute staff regarding the relevancy and usage of the journals maintained in the Center. 6) Identify 12 new private collections, such as other trade associations, available for research purposes.1 30 TI DN 0018018

====== CONFIDENTIAL ====== TIIIS DOCUMENT IS SUBJECT TO A COURT ORDER AND TIIIS IXX'UMENT AND ITS CONTENTS SHALL NOT BE USED. SfiOWN OR DISTRI(IUTED EXCEPT AS PROVIDED IN TUE COURT'S ORDER Strategy II: Emphasizing service and efficiency, maintain fundamental Library functions, including reference assistance, routine information retrieval and processing of requests for publications. Goals: 1) Answer each request for information within 48 hours. 2) Process requests for subscriptions and other publications within 48 hours of receipt. 3) Obtain and deliver various executive branch and congressional directories to users within one week of publication. 4) Conduct semi-annual surveys of Institute staff for comments regarding Center services. 5) Conduct an annual survey of Institute staff regarding the relevancy and usage of the journals maintained in the Center. 6) Identify 12 new private collections, such as other trade associations, available for research purposes.1 30 TI DN 0018018

Tactics: _____= CONFIDENTIAL =____- TIIIS DOCUMENT IS SUBJECT TO A COURT ORDER AND THIS DOCUMEN'( AND ITS CONTENTS SHALL NOT BE USED, SlIOWN OR DISTRIBUTED EXCI:PT AS PROVIDED IN THE COURT'S ORDER 1) Periodically distribute advisory bulletins to all Institute staff regarding Center services and contacts.1 2) Provide on-demand reference assistance. 3) Maintain an issue-based electronic index of important reports, articles, books, legislative materials, transcripts and videotapes.1 4) Assist users of the Center's electronic index with searches and retrievals.I 5) Participate in professional associations for informa- tion specialists and in library organizations, particularly the Special Libraries Association.2 6) Maintain good "inter-library loan" standing. 7) Maintain system for logging and processing requests for information. 8) Maintain current information on research/reference products and services. 31 - TI DN 0018019

Tactics: _____= CONFIDENTIAL =____- TIIIS DOCUMENT IS SUBJECT TO A COURT ORDER AND THIS DOCUMEN'( AND ITS CONTENTS SHALL NOT BE USED, SlIOWN OR DISTRIBUTED EXCI:PT AS PROVIDED IN THE COURT'S ORDER 1) Periodically distribute advisory bulletins to all Institute staff regarding Center services and contacts.1 2) Provide on-demand reference assistance. 3) Maintain an issue-based electronic index of important reports, articles, books, legislative materials, transcripts and videotapes.1 4) Assist users of the Center's electronic index with searches and retrievals.I 5) Participate in professional associations for informa- tion specialists and in library organizations, particularly the Special Libraries Association.2 6) Maintain good "inter-library loan" standing. 7) Maintain system for logging and processing requests for information. 8) Maintain current information on research/reference products and services. 31 - TI DN 0018019

====== CONFIDENTIAL =_____ fmS DoccMuiV r IS SUBJECT TO d CuURT ORDER .iND riuS D<x:UNCNT AND ITS CONTENTS SILV.L NOT BE USED. Si1OWN OR DISTRIBUTED EXCEPT AS PROVIDED IN TUL COURT'S ORDER Strategy III: Develop closer working relationships with principal users through aggressive marketing of work-product and the Center's service orientation.1 Goals; 1) Work with principal users to develop at least two requests for substantive analytical research per month.1 2) Coordinate with the vice president of issues management to ensure that Center staff participate in monthly meetings of the issues management team for the purpose of coordinating and expanding Center involvement in issues management activities.1 Tactics: 1) Ensure that Center staff participate in strategy or other working-group meetings on specific issues or projects, and assist in developing strategies and information to manage such issues and projects.1 2) Encourage Center professionals to increase their visibility among principal users through informal contacts.1 32 TI DN 0018020

====== CONFIDENTIAL =_____ fmS DoccMuiV r IS SUBJECT TO d CuURT ORDER .iND riuS D<x:UNCNT AND ITS CONTENTS SILV.L NOT BE USED. Si1OWN OR DISTRIBUTED EXCEPT AS PROVIDED IN TUL COURT'S ORDER Strategy III: Develop closer working relationships with principal users through aggressive marketing of work-product and the Center's service orientation.1 Goals; 1) Work with principal users to develop at least two requests for substantive analytical research per month.1 2) Coordinate with the vice president of issues management to ensure that Center staff participate in monthly meetings of the issues management team for the purpose of coordinating and expanding Center involvement in issues management activities.1 Tactics: 1) Ensure that Center staff participate in strategy or other working-group meetings on specific issues or projects, and assist in developing strategies and information to manage such issues and projects.1 2) Encourage Center professionals to increase their visibility among principal users through informal contacts.1 32 TI DN 0018020

_===== CON FI D E NTIAL THIS DOCUMENT IS SUBJECT TO A COURT ORDER AND fUIS DOCUMENT AND ITS CONTENTS SUAIL NOT BE USED. SHOWN OR DISTRIBUTED EXCEPT AS PROVIDED IN TUE C'OURT'S ORDER 3) Propose and conduct discrete research projects for principal users.1 4) Circulate finished work-product to principal users and Center staff.1 5) Anticipate specific information needs and forward pertinent information to appropriate staff. 6) Conduct analytical research on trends affecting the evolution of issues, as appropriate. 7) Monitor and report on scientific meetings and legislative and regulatory hearings, as appropriate.2 8) Prepare briefing materials for specific events, such as legislative or regulatory hearings or media events, as appropriate. Strategy IV: Encourage and assist with the professional development of Center staff.1 Goals: 1) Ensure that all Center staff participate in at least two specialized training courses, seminars, conferences or 33 TI DN 0018021

_===== CON FI D E NTIAL THIS DOCUMENT IS SUBJECT TO A COURT ORDER AND fUIS DOCUMENT AND ITS CONTENTS SUAIL NOT BE USED. SHOWN OR DISTRIBUTED EXCEPT AS PROVIDED IN TUE C'OURT'S ORDER 3) Propose and conduct discrete research projects for principal users.1 4) Circulate finished work-product to principal users and Center staff.1 5) Anticipate specific information needs and forward pertinent information to appropriate staff. 6) Conduct analytical research on trends affecting the evolution of issues, as appropriate. 7) Monitor and report on scientific meetings and legislative and regulatory hearings, as appropriate.2 8) Prepare briefing materials for specific events, such as legislative or regulatory hearings or media events, as appropriate. Strategy IV: Encourage and assist with the professional development of Center staff.1 Goals: 1) Ensure that all Center staff participate in at least two specialized training courses, seminars, conferences or 33 TI DN 0018021

_-___= CONFIDENTIAL =_____ fi11S DOCU:MENT IS SUIlI[C'T TO A C'OURT ORDER AND THIS DOC'UMI:NT AND ITS CONTENTS SHALL NOT BE USED. SUOWN OR DISTRIIlUT1:D E%CEPI' nS PROVIDED IN TII[ C'OURT'S ORDER other forums in research techniques, writing, a relevant academic field, management or other pertinent area of study.1 2) Ensure that all Center staff submit for consideration at least one new project proposal per month, with justification and resources outlined.l Tactics: 1) Consulting with other Division managers, maintain and distribute information on training programs of possible interest to Center staff and others.1 2) Investigate and report on training programs that could be offered by The Institute "in house."I 3) Encourage staff to join and participate in relevent professional organizations and societies. 4) Ensure staff's continuing Literacy in the use of all available on-line computer services.2 5) Encourage long-range professional planning via informal quarterly performance reviews and strategy sessions.1 34 TI DN 0018022 {

_-___= CONFIDENTIAL =_____ fi11S DOCU:MENT IS SUIlI[C'T TO A C'OURT ORDER AND THIS DOC'UMI:NT AND ITS CONTENTS SHALL NOT BE USED. SUOWN OR DISTRIIlUT1:D E%CEPI' nS PROVIDED IN TII[ C'OURT'S ORDER other forums in research techniques, writing, a relevant academic field, management or other pertinent area of study.1 2) Ensure that all Center staff submit for consideration at least one new project proposal per month, with justification and resources outlined.l Tactics: 1) Consulting with other Division managers, maintain and distribute information on training programs of possible interest to Center staff and others.1 2) Investigate and report on training programs that could be offered by The Institute "in house."I 3) Encourage staff to join and participate in relevent professional organizations and societies. 4) Ensure staff's continuing Literacy in the use of all available on-line computer services.2 5) Encourage long-range professional planning via informal quarterly performance reviews and strategy sessions.1 34 TI DN 0018022 {

====== CONFIDENTIAL =_____ I'l I IS UOCUMEN"f IS $URJECT 'f0 A COURT ORDER AND TI IIS DOCUMENT AND ITS CONTENTS SII.\LL NOT BE USED. SHOWN OR DISTRIBUTED EXCEPT AS PROVIDED IN TIIE COURT'S ORDER V. Reaollrces A. Staff . 1) Center Staff: Lyons, Picciano, Schoonmaker, Hrycaj, Myers, Rusk 2) Other Staff: Sparber, Stuncz, Moran, Dedick, Duffin, Data Processing staff 3) Consultants/Professional Services: Federal Document Retrieval, Inc. The SRC Group,,Inc. DP's computer consultants B. Materials: DECmates; IBM PC-XT and corresponding software; commercial computer services; the VAX; reference and periodical collections; academic, public and private libraries; federal agencies. 35 TI DN 0018023

====== CONFIDENTIAL =_____ I'l I IS UOCUMEN"f IS $URJECT 'f0 A COURT ORDER AND TI IIS DOCUMENT AND ITS CONTENTS SII.\LL NOT BE USED. SHOWN OR DISTRIBUTED EXCEPT AS PROVIDED IN TIIE COURT'S ORDER V. Reaollrces A. Staff . 1) Center Staff: Lyons, Picciano, Schoonmaker, Hrycaj, Myers, Rusk 2) Other Staff: Sparber, Stuncz, Moran, Dedick, Duffin, Data Processing staff 3) Consultants/Professional Services: Federal Document Retrieval, Inc. The SRC Group,,Inc. DP's computer consultants B. Materials: DECmates; IBM PC-XT and corresponding software; commercial computer services; the VAX; reference and periodical collections; academic, public and private libraries; federal agencies. 35 TI DN 0018023

=-=== CONFIDENTIAL ====== TIIIS DOCUMENT IS SUBJECT 10 A COURI' ORDER AND 1'111S DOCUMENT AND 1IS CONTENTS SIIALL NOT BE USED. Sf1OW'N OR DISTRIBUTED EXCEPT AS PROVIDED IN'I11E COURT'S ORDER THE TOBACCO INSTITUTE 1988 BUDGET COST CENTER NAME Public Affairs - Information Center No. 1304 1987 1987 1988 Account Page Budget Estimated Budget Number Description Ref. 000 ($000) 000 4801 Books & Subscriptions .............. .... $ 45 $ 45 $ 45 4901 Equipment Repairs & Maintenance.... .... 1 1 1 5001 Office Supplies .................... .... 2 2 2 5101 Postage and Delivery ......... :..... .... 2 2 2 5201 Reproduction, Printing & Drafting.. .... 3 2 2 5500 Membership and Staff Training...... .... 3 3 5 7301 Professional Fees .................. .... - - 5 7401 Purchased Admin. Services .......... .... 1 4 1 8030 Purchased Computer Services........ .... 33 35 48 Totals ........................ .... 90 $ 94 111 1988 increase of 18% over 1987 projections caused by consolidation of four issue areas' computer services budgets -- totaling $20,000-- in the Information Center. $15,000 of this amount will supplement the Center's existing computer services budget to cover the growth in demand for commercial database research anticipated in 1988. $5,000 has been allotted for professional services related to Freedom of Information Act requests, document retrieval, and other research services. Otherwise, a slight decline in marginal costs is expected. tl Includes $15,000 of $20,000 distributed among the four issue areas (1305, 1306, 1308, 1309) in 1986. 36 TI DN 0018024

=-=== CONFIDENTIAL ====== TIIIS DOCUMENT IS SUBJECT 10 A COURI' ORDER AND 1'111S DOCUMENT AND 1IS CONTENTS SIIALL NOT BE USED. Sf1OW'N OR DISTRIBUTED EXCEPT AS PROVIDED IN'I11E COURT'S ORDER THE TOBACCO INSTITUTE 1988 BUDGET COST CENTER NAME Public Affairs - Information Center No. 1304 1987 1987 1988 Account Page Budget Estimated Budget Number Description Ref. 000 ($000) 000 4801 Books & Subscriptions .............. .... $ 45 $ 45 $ 45 4901 Equipment Repairs & Maintenance.... .... 1 1 1 5001 Office Supplies .................... .... 2 2 2 5101 Postage and Delivery ......... :..... .... 2 2 2 5201 Reproduction, Printing & Drafting.. .... 3 2 2 5500 Membership and Staff Training...... .... 3 3 5 7301 Professional Fees .................. .... - - 5 7401 Purchased Admin. Services .......... .... 1 4 1 8030 Purchased Computer Services........ .... 33 35 48 Totals ........................ .... 90 $ 94 111 1988 increase of 18% over 1987 projections caused by consolidation of four issue areas' computer services budgets -- totaling $20,000-- in the Information Center. $15,000 of this amount will supplement the Center's existing computer services budget to cover the growth in demand for commercial database research anticipated in 1988. $5,000 has been allotted for professional services related to Freedom of Information Act requests, document retrieval, and other research services. Otherwise, a slight decline in marginal costs is expected. tl Includes $15,000 of $20,000 distributed among the four issue areas (1305, 1306, 1308, 1309) in 1986. 36 TI DN 0018024

====== CO N F I D ENT IAL ====== TIIIS DOCUMENT IS Sl:I7JECT TO A COURT ORDER AND THIS DOCUMENT AND ITS CONTENTS SHALL NOT RE USED. SI W W'N OR DISTRI6UTE1) EXCEPT AS PROVIDED IN TIIE COI:RT'S ORDER TAa ISSUE I. Background In 1987, we conducted a public affairs campaign hammering the points that all excise taxes are regressive and undermine tax reform. Whenever possible, we encouraged third party groups and our economists' network to communicate this message. This strategy appreciably enhanced our traditional arguments that an increase in the tobacco excise tax has an adverse impact upon the tobacco economy and the economy as a whole. our strategy to date has been successfully employed on the federal level and increasingly in the states. We also were assigned to develop a comprehensive plan to counter any Congressional effort concerning cigarette pricing in commissaries, exchanges and ship stores. The focus of this plan is to encourage military groups to forcefully oppose any change in the pricing issue as a threat to the commissary benefit. Although considerable progress was made, a comprehensive plan has not yet been fully implemented. II. Assumptions o Cigarette excise taxes are proposed at the federal, state and local levels to raise general revenue to support 37 TI DN 0018025

====== CO N F I D ENT IAL ====== TIIIS DOCUMENT IS Sl:I7JECT TO A COURT ORDER AND THIS DOCUMENT AND ITS CONTENTS SHALL NOT RE USED. SI W W'N OR DISTRI6UTE1) EXCEPT AS PROVIDED IN TIIE COI:RT'S ORDER TAa ISSUE I. Background In 1987, we conducted a public affairs campaign hammering the points that all excise taxes are regressive and undermine tax reform. Whenever possible, we encouraged third party groups and our economists' network to communicate this message. This strategy appreciably enhanced our traditional arguments that an increase in the tobacco excise tax has an adverse impact upon the tobacco economy and the economy as a whole. our strategy to date has been successfully employed on the federal level and increasingly in the states. We also were assigned to develop a comprehensive plan to counter any Congressional effort concerning cigarette pricing in commissaries, exchanges and ship stores. The focus of this plan is to encourage military groups to forcefully oppose any change in the pricing issue as a threat to the commissary benefit. Although considerable progress was made, a comprehensive plan has not yet been fully implemented. II. Assumptions o Cigarette excise taxes are proposed at the federal, state and local levels to raise general revenue to support 37 TI DN 0018025

====== CONFIDENTIAL ====== THIS DOCUMENT IS SUBJECT TO A COURT ORDER AND THIS DOCUMENT AND ITS CONTENTS SHALL NOT BE USED. SIIOWN OR DISTRIBUTED EXCEPT AS PROVIDED IN THE COURT'S ORDER earmarked projects, to deter smoking--especially youth smoking--and to compensate for the alleged "social cost" smoking imposes upon society. o Federal deficit reduction legislation, resulting cuts in federal funding to state and local governments, and aggressive lobbying by anti-smoking groups, foster a political environment conducive to increases in cigarette excise taxes. So far this year, eight Congressional bills have been introduced to increase the federal excise tax; 93 state and local bills have been introduced. o Excise taxes are "regressive" taxes. They are imposed upon consumers regardless of their ability to pay. According to a recent Congressional Budget Office study, tobacco excise taxes are the most regressive. o Excise taxes are inconsistent with tax fairness. The objective of the Tax Reform Act of 1986 was to restructure the federal tax code to assure fairness--many states are following suit. But excises require citizens who purchase certain goods and services to pay higher taxes than those who do not. o Labor-liberal, tax reform, minority, conservative and industry groups embrace the fairness and regressivity issues 38 TI DN 0018026

====== CONFIDENTIAL ====== THIS DOCUMENT IS SUBJECT TO A COURT ORDER AND THIS DOCUMENT AND ITS CONTENTS SHALL NOT BE USED. SIIOWN OR DISTRIBUTED EXCEPT AS PROVIDED IN THE COURT'S ORDER earmarked projects, to deter smoking--especially youth smoking--and to compensate for the alleged "social cost" smoking imposes upon society. o Federal deficit reduction legislation, resulting cuts in federal funding to state and local governments, and aggressive lobbying by anti-smoking groups, foster a political environment conducive to increases in cigarette excise taxes. So far this year, eight Congressional bills have been introduced to increase the federal excise tax; 93 state and local bills have been introduced. o Excise taxes are "regressive" taxes. They are imposed upon consumers regardless of their ability to pay. According to a recent Congressional Budget Office study, tobacco excise taxes are the most regressive. o Excise taxes are inconsistent with tax fairness. The objective of the Tax Reform Act of 1986 was to restructure the federal tax code to assure fairness--many states are following suit. But excises require citizens who purchase certain goods and services to pay higher taxes than those who do not. o Labor-liberal, tax reform, minority, conservative and industry groups embrace the fairness and regressivity issues 38 TI DN 0018026

~ _____= CONFIDENTIAL ====== I 1'UIS DOCUMENT IS SUBJCCT TO A COURT ORDER AND THIS DOCUMENT AND ITS CONTENTS SHALL NOT BE USED. SHOWN OR DISTRIBUTED EXCEPT AS PROVIDED IN THE COURT'S ORDER and can effectively lobby against proposals to increase excise taxes. o The federal deficit reduction movement has precipitated a search for revenue sources. A House-Senate conference committee has conceptually approved $65 billion in new taxes for the next three years in an attempt to meet Gramm-Rudman targets. Although there are a number of alternative revenue sources more consistent with tax fairness, excises--particularly "sin" taxes--are often positioned as the only politically viable revenue option. o Although earmarking continues to be a threat on the federal level, i.e., proposals to earmark for health care and counter-advertising, the deficit reduction movement helps assure that no existing revenue will be diverted or any new tax earmarked for anything other than deficit reduction. o Increased federal excise taxes are detrimental to the tobacco economy and the economy as a whole. All components of the tobacco industry and the Congressional tobacco family should effectively oppose any increased excise tax. o The Department of Defense is committed to reducing • tobacco consumption among military exchange, ship store and commissary patrons. If the military and Congress conclude a tobacco education.program is ineffective in reducing 39 TI DN 0018027

~ _____= CONFIDENTIAL ====== I 1'UIS DOCUMENT IS SUBJCCT TO A COURT ORDER AND THIS DOCUMENT AND ITS CONTENTS SHALL NOT BE USED. SHOWN OR DISTRIBUTED EXCEPT AS PROVIDED IN THE COURT'S ORDER and can effectively lobby against proposals to increase excise taxes. o The federal deficit reduction movement has precipitated a search for revenue sources. A House-Senate conference committee has conceptually approved $65 billion in new taxes for the next three years in an attempt to meet Gramm-Rudman targets. Although there are a number of alternative revenue sources more consistent with tax fairness, excises--particularly "sin" taxes--are often positioned as the only politically viable revenue option. o Although earmarking continues to be a threat on the federal level, i.e., proposals to earmark for health care and counter-advertising, the deficit reduction movement helps assure that no existing revenue will be diverted or any new tax earmarked for anything other than deficit reduction. o Increased federal excise taxes are detrimental to the tobacco economy and the economy as a whole. All components of the tobacco industry and the Congressional tobacco family should effectively oppose any increased excise tax. o The Department of Defense is committed to reducing • tobacco consumption among military exchange, ship store and commissary patrons. If the military and Congress conclude a tobacco education.program is ineffective in reducing 39 TI DN 0018027

====== CONFIDENTIAL ====== 7711S DOCUMENT IS SU[LECI' i() A COURT ORM[R AND TIIIS DOCUMENT AND ITS CONTENTS S}IALL .40T IJf USED, SIIOWN OR Dltil'RIBUT[D EXCEPT.\S PROVIDED IN TI{E C'OURT'S ORDER consumption, they will seriously consider proposals to eliminate the sale of tobacco products in Department facilities or raise the price of tobacco products to prevailing retail rates. o Military and veterans groups view the commissary and exchange system as an integral component of their compensation package. They view proposals to eliminate the sale of tobacco products in commissaries as a threat to the system. III. Objective To discourage reliance on tobacco excise taxes as a source of revenue by demonstrating that excise taxes are regressive and inconsistent with fair taxation.2 To posture any proposal concerning the sale of cigarettes in ailitary coemiiaaaries as a threat to the co.missary systea.1 I7. Strategies, Goals and Tactics Strategy I: Demonstrate that excise taxes are regressive, inconsistent with tax fairness and are an inefficient and unacceptable solution to economic and social problems. 40 TI DN 0018028

====== CONFIDENTIAL ====== 7711S DOCUMENT IS SU[LECI' i() A COURT ORM[R AND TIIIS DOCUMENT AND ITS CONTENTS S}IALL .40T IJf USED, SIIOWN OR Dltil'RIBUT[D EXCEPT.\S PROVIDED IN TI{E C'OURT'S ORDER consumption, they will seriously consider proposals to eliminate the sale of tobacco products in Department facilities or raise the price of tobacco products to prevailing retail rates. o Military and veterans groups view the commissary and exchange system as an integral component of their compensation package. They view proposals to eliminate the sale of tobacco products in commissaries as a threat to the system. III. Objective To discourage reliance on tobacco excise taxes as a source of revenue by demonstrating that excise taxes are regressive and inconsistent with fair taxation.2 To posture any proposal concerning the sale of cigarettes in ailitary coemiiaaaries as a threat to the co.missary systea.1 I7. Strategies, Goals and Tactics Strategy I: Demonstrate that excise taxes are regressive, inconsistent with tax fairness and are an inefficient and unacceptable solution to economic and social problems. 40 TI DN 0018028

====== CONFIDENTIAL ====== THIS DOCUMENT IS SUBJECT TO A COURT ORDER AND TIIIS DOCUMENT AND ITS CONTENTS SHALL NOT BE USED. SHOWN OR DISTRIBUTED EXCEPT AS PROVIDED IN THE COURT'S ORDER Goals: 1) Commission two op-ed articles in 1988 from each consulting economist. As articles are published, promote through economists and third party groups and submit to appropriate federal and state legislators.2 2) Conduct at least one editorial board briefing per economist with local press on the excise tax issue.1 3) Conduct at least ten presentations on the excise tax issue before national and regional tax policy conferences. Use economic consultants.1 4) Support preparation and promotion of at least five allied group studies/reports on the excise tax issue, including at least one study on earmarking for health services.1 5) Support at least 20 editorial board briefings by allied groups in targeted legislative districts.1 6) Conduct at least one federal excise tax advertising campaign and at least three state campaigns.1 41 TI DN 0018029

====== CONFIDENTIAL ====== THIS DOCUMENT IS SUBJECT TO A COURT ORDER AND TIIIS DOCUMENT AND ITS CONTENTS SHALL NOT BE USED. SHOWN OR DISTRIBUTED EXCEPT AS PROVIDED IN THE COURT'S ORDER Goals: 1) Commission two op-ed articles in 1988 from each consulting economist. As articles are published, promote through economists and third party groups and submit to appropriate federal and state legislators.2 2) Conduct at least one editorial board briefing per economist with local press on the excise tax issue.1 3) Conduct at least ten presentations on the excise tax issue before national and regional tax policy conferences. Use economic consultants.1 4) Support preparation and promotion of at least five allied group studies/reports on the excise tax issue, including at least one study on earmarking for health services.1 5) Support at least 20 editorial board briefings by allied groups in targeted legislative districts.1 6) Conduct at least one federal excise tax advertising campaign and at least three state campaigns.1 41 TI DN 0018029

====== CONFIDENTIAL ====== TIIIS DOCUMENT IS SUOIECT TO A COURT ORDER AND THIS DOCUMENT AND ITS CONTENTS S41AI,L NOT BE USED. SUOWN OR DISTRIBUTED EXCEPT AS PROVIDED IN TkIE COURT'S ORDER 7) Organize broad based tax reform coalitions in at least three states.1 8) Conduct tax reform conferences in at least three states.i 9) Prepare and aggressively promote at least one regresaivity study sponsored by an industry group, i.e., Coalition Against Regressive Taxation.1 Tactics: ~ 1) Continue to maintain and refine economists' network for preparation of op-eds, editorial board briefings, preparation and delivery of testimony, the latter as coordinated by the State Activities and Federal Relations Divisions. 2) Commission economic consultants to write and distribute op-ed articles opposing excise taxes for publication in major press. 3) Assign economic consultants to conduct editorial board briefings on the excise tax issue.1 42 TI DN 0018030

====== CONFIDENTIAL ====== TIIIS DOCUMENT IS SUOIECT TO A COURT ORDER AND THIS DOCUMENT AND ITS CONTENTS S41AI,L NOT BE USED. SUOWN OR DISTRIBUTED EXCEPT AS PROVIDED IN TkIE COURT'S ORDER 7) Organize broad based tax reform coalitions in at least three states.1 8) Conduct tax reform conferences in at least three states.i 9) Prepare and aggressively promote at least one regresaivity study sponsored by an industry group, i.e., Coalition Against Regressive Taxation.1 Tactics: ~ 1) Continue to maintain and refine economists' network for preparation of op-eds, editorial board briefings, preparation and delivery of testimony, the latter as coordinated by the State Activities and Federal Relations Divisions. 2) Commission economic consultants to write and distribute op-ed articles opposing excise taxes for publication in major press. 3) Assign economic consultants to conduct editorial board briefings on the excise tax issue.1 42 TI DN 0018030

====== CONFIDENTIAL =-- f1I1S IXICUMEN( IS SIiUJECT TO n COURT ORDF.R "D I'f1/S DOCUMENT.IND ITS CONTENTS SHALL NOT gE USED. S/IOWN OR DISTRIBUTED EXCEPT AS PROVIDED IN THE COURT'S ORDER 4) Assign economic consultants to make a secondary distribution of any articles to appropriate state or federal legislators._ 5) Utilize TAN and field staff network to make a similar distribution to legislators. 6) Encourage economists to deliver presentations at national and regional tax policy conferences, posturing excise taxes as inconsistent with principles of fair taxation.1 7) As appropriate, encourage economic consultants to utilize "social cost" arguments (see "Social Cost" plan) to counter portrayal of excise taxes as.user fees on the state and federal level.1 S) Commission a study demonstrating the potential adverse impact of excise taxes on federal and state tax revenue. Seek third party sponsorship and publication of results in an economic journal. Promote as appropriate.t 9) Commission a study demonstrating the acceleration of government spending when taxes are increased. Seek third party sponsorship and publication of results in an economic journal. Promote as appropriate.1 43 TI DN 0018031

====== CONFIDENTIAL =-- f1I1S IXICUMEN( IS SIiUJECT TO n COURT ORDF.R "D I'f1/S DOCUMENT.IND ITS CONTENTS SHALL NOT gE USED. S/IOWN OR DISTRIBUTED EXCEPT AS PROVIDED IN THE COURT'S ORDER 4) Assign economic consultants to make a secondary distribution of any articles to appropriate state or federal legislators._ 5) Utilize TAN and field staff network to make a similar distribution to legislators. 6) Encourage economists to deliver presentations at national and regional tax policy conferences, posturing excise taxes as inconsistent with principles of fair taxation.1 7) As appropriate, encourage economic consultants to utilize "social cost" arguments (see "Social Cost" plan) to counter portrayal of excise taxes as.user fees on the state and federal level.1 S) Commission a study demonstrating the potential adverse impact of excise taxes on federal and state tax revenue. Seek third party sponsorship and publication of results in an economic journal. Promote as appropriate.t 9) Commission a study demonstrating the acceleration of government spending when taxes are increased. Seek third party sponsorship and publication of results in an economic journal. Promote as appropriate.1 43 TI DN 0018031

====== CON FI D ENTIAL ====== 1111S DOCUMENT IS SUBJECT TO A COURT ORDER AND TIIIS DOCUMENT AND ITS CONTENTS SIIALL NOT BE USED. SUOW'N OR DISTRIBUTED EXCEPT AS PROVIDED IN TfIE COURT'S ORDER 15) Support allied group public advertising campaigns opposing excise taxes on the state and federal level.2 16) Organize broad based tax reform coalitions in selected states identified by state activities division. Support tax reform conferences in selected states.1 17) Cultivate relationships with health care and senior citizens organizations, e.g., National Council of Senior Citizens, and encourage their opposition to earmarking of excise taxes to finance health care.2 Strategy II: Demonstrate the viability of progressive alternatives to excise taxes as a revenue resource and encourage allied group support in promoting these alternatives. Encourage significant involvement of Institute member companies.1 Goals: 1) Support in the first quarter of 1988 a national, academic conference on reducing the deficit, tax fairness and alternative revenue sources. Publish the academic conference proceedings by July 1, 1988.1 2) Working with industry allies, commission three allied group studies of alternative revenues.1 45 TI DN 0018032

====== CON FI D ENTIAL ====== 1111S DOCUMENT IS SUBJECT TO A COURT ORDER AND TIIIS DOCUMENT AND ITS CONTENTS SIIALL NOT BE USED. SUOW'N OR DISTRIBUTED EXCEPT AS PROVIDED IN TfIE COURT'S ORDER 15) Support allied group public advertising campaigns opposing excise taxes on the state and federal level.2 16) Organize broad based tax reform coalitions in selected states identified by state activities division. Support tax reform conferences in selected states.1 17) Cultivate relationships with health care and senior citizens organizations, e.g., National Council of Senior Citizens, and encourage their opposition to earmarking of excise taxes to finance health care.2 Strategy II: Demonstrate the viability of progressive alternatives to excise taxes as a revenue resource and encourage allied group support in promoting these alternatives. Encourage significant involvement of Institute member companies.1 Goals: 1) Support in the first quarter of 1988 a national, academic conference on reducing the deficit, tax fairness and alternative revenue sources. Publish the academic conference proceedings by July 1, 1988.1 2) Working with industry allies, commission three allied group studies of alternative revenues.1 45 TI DN 0018032

===-== CONFIDENTIAL =====- TIBS DOCUMf:NT IS SUI7JECT TO A COURT ORDER AND THIS DOCUMENT AND ITS CONTENTS SHAEL NOT BE USED. SHOWN OR DISTRIBUTED EXCEPT AS PROVIDED IN THE COURT'S ORDER Tactics: 1) Coordinate a major meeting for member company tax experts to re-examine the question of alternative revenue options.1 2) Sponsor a third party, national academic conference in Washington, D.C. on reducing the deficit, preserving tax fairness, and long-term, progressive revenue sources. Publish and promote conference proceedings. Follow up with media tours and editorial board briefings.1 3) Encourage and•support efforts of allied groups, i.e., Citizens for Tax Justice, Congressional Black Caucus and Center for National Policy to study and promote alternative revenue sources consistent with tax fairness.1 4) Maintain an up-to-date index of alternative revenue options and their revenue raising potential. As appropriate, provide to allied groups researching alternative revenue sources (see above).1 Strategy III: Reinforce the negative effect of excise taxes on the tobacco economy and promote unity among the tobacco industry family.2 46 TI DN 0018033

===-== CONFIDENTIAL =====- TIBS DOCUMf:NT IS SUI7JECT TO A COURT ORDER AND THIS DOCUMENT AND ITS CONTENTS SHAEL NOT BE USED. SHOWN OR DISTRIBUTED EXCEPT AS PROVIDED IN THE COURT'S ORDER Tactics: 1) Coordinate a major meeting for member company tax experts to re-examine the question of alternative revenue options.1 2) Sponsor a third party, national academic conference in Washington, D.C. on reducing the deficit, preserving tax fairness, and long-term, progressive revenue sources. Publish and promote conference proceedings. Follow up with media tours and editorial board briefings.1 3) Encourage and•support efforts of allied groups, i.e., Citizens for Tax Justice, Congressional Black Caucus and Center for National Policy to study and promote alternative revenue sources consistent with tax fairness.1 4) Maintain an up-to-date index of alternative revenue options and their revenue raising potential. As appropriate, provide to allied groups researching alternative revenue sources (see above).1 Strategy III: Reinforce the negative effect of excise taxes on the tobacco economy and promote unity among the tobacco industry family.2 46 TI DN 0018033

Goals: ====== CONFIDENTIAL = =__ TIIIS DOCUMENT IS SUBJECT TO A COURT ORDER AND TIIIS DOCUMENT AND ITS CONTENTS SDALL NOT BE USED. Sf1OWN OR DISTRIRUTED EXCEPT AS PROVIDED IN TIIE COURT'S ORDER 1) Distribute to 40 Congressional tobacco family members excise tax information kits in the first quarter of 1988.1 2) Brief at least ten national/regional agriculture groups on the excise tax issue.1 3) Update the federal excise tax video as appropriate and to complete a general excise tax video in the first quarter of 1988.1 Tactica: 1) Maintain up-to-date information on the economic impact of tobacco on the nation's economy and the potential effect of excise tax proposals. Utilize Chase update (see "Social Cost" plan). As appropriate, distribute to Members of Congress, state and local legislators and allied groups to oppose excise tax . increases. 2) Support federal relations division in providing tobacco family members with materials, i.e., fact sheets, extension of remarks, etc., and assist in coordinating their efforts to oppose excise taxes.2 47 TI DN 0018034

Goals: ====== CONFIDENTIAL = =__ TIIIS DOCUMENT IS SUBJECT TO A COURT ORDER AND TIIIS DOCUMENT AND ITS CONTENTS SDALL NOT BE USED. Sf1OWN OR DISTRIRUTED EXCEPT AS PROVIDED IN TIIE COURT'S ORDER 1) Distribute to 40 Congressional tobacco family members excise tax information kits in the first quarter of 1988.1 2) Brief at least ten national/regional agriculture groups on the excise tax issue.1 3) Update the federal excise tax video as appropriate and to complete a general excise tax video in the first quarter of 1988.1 Tactica: 1) Maintain up-to-date information on the economic impact of tobacco on the nation's economy and the potential effect of excise tax proposals. Utilize Chase update (see "Social Cost" plan). As appropriate, distribute to Members of Congress, state and local legislators and allied groups to oppose excise tax . increases. 2) Support federal relations division in providing tobacco family members with materials, i.e., fact sheets, extension of remarks, etc., and assist in coordinating their efforts to oppose excise taxes.2 47 TI DN 0018034

=_ ==== CONFIDENTIAL =__ =_ THIS DOCUMENT IS SUBJECT TO A COURT ORDER AND THIS DOCUMENT AND ITS CONTENTS SHALL NOT BE USED. SHOWN OR DISTRIBUTED EXCEPT AS PROVIDED IN THE COURT'S ORDER 3) Brief national/regional agriculture groups as appropriate and encourage their active support on the excise tax issue.2 4) Support efforts of tobacco family groups, i.e., National Tobacco Council, National Association of Tobacco Distributors, etc., in communicating opposition to excise taxes.2 5) Update federal excise tax video for use by tobacco family members of Congress. Prepare a general excise tax video for use by field staff.' Strategy IV: Reinforce the commissary and exchange system as an integral part of the military compensation package and encourage military and veteran groups to forcefully oppose any infringement of the benefit-.including the cigarette pricing issue.1 Goals: 1) Conduct at least one meeting of the Military Coalition to discuss the importance of the commissary and exchange system.1 48 TI DN 0018035

=_ ==== CONFIDENTIAL =__ =_ THIS DOCUMENT IS SUBJECT TO A COURT ORDER AND THIS DOCUMENT AND ITS CONTENTS SHALL NOT BE USED. SHOWN OR DISTRIBUTED EXCEPT AS PROVIDED IN THE COURT'S ORDER 3) Brief national/regional agriculture groups as appropriate and encourage their active support on the excise tax issue.2 4) Support efforts of tobacco family groups, i.e., National Tobacco Council, National Association of Tobacco Distributors, etc., in communicating opposition to excise taxes.2 5) Update federal excise tax video for use by tobacco family members of Congress. Prepare a general excise tax video for use by field staff.' Strategy IV: Reinforce the commissary and exchange system as an integral part of the military compensation package and encourage military and veteran groups to forcefully oppose any infringement of the benefit-.including the cigarette pricing issue.1 Goals: 1) Conduct at least one meeting of the Military Coalition to discuss the importance of the commissary and exchange system.1 48 TI DN 0018035

====== CONFIDENTIAL ====== 1'IIIS IX)CiME?l'f IS SUIIJECT T() A COURT ORDER AND THIS DOCUMENT AND ITS CONTENTS SHALL NOT IIF: USED. SIIOWN OR DISTRIRUTED EXCEPT AS PROVIDED IN THE C'OURT'S ORDER 2) Brief at least ten military/veteran groups in 1988 on potential threats to the commissary and exchange system.1 3) Commission at least one economic impact study of proposals restricting the sale or effecting the price of tobacco products in commissaries and exchanges.1 4) Commission at least one public opinion poll on the importance of the commissary and exchange benefit to the military.1 5) Support at least 12 Military Coalition media tours (one a month) on the importance of the commissary and exchange system.1 6) Submit at least 10 articles to the military press on the importance of the commissary and exchange system.1 Tactics: 1) Support as appropriate Military Coalition meetings on the importance of the commissary and exchange system to the military and potential threats to the system. Promote as appropriace.1 TI DN 0018036 49

====== CONFIDENTIAL ====== 1'IIIS IX)CiME?l'f IS SUIIJECT T() A COURT ORDER AND THIS DOCUMENT AND ITS CONTENTS SHALL NOT IIF: USED. SIIOWN OR DISTRIRUTED EXCEPT AS PROVIDED IN THE C'OURT'S ORDER 2) Brief at least ten military/veteran groups in 1988 on potential threats to the commissary and exchange system.1 3) Commission at least one economic impact study of proposals restricting the sale or effecting the price of tobacco products in commissaries and exchanges.1 4) Commission at least one public opinion poll on the importance of the commissary and exchange benefit to the military.1 5) Support at least 12 Military Coalition media tours (one a month) on the importance of the commissary and exchange system.1 6) Submit at least 10 articles to the military press on the importance of the commissary and exchange system.1 Tactics: 1) Support as appropriate Military Coalition meetings on the importance of the commissary and exchange system to the military and potential threats to the system. Promote as appropriace.1 TI DN 0018036 49

====== CONFIDENTIAL ====== TIIIS DOCUMENT IS SUUJECI' TO A COURT ORDER AND TUIS DOCUMENT ANI) ITS CONTENTS St1A1.L `OT BE USED. SIIO`.VN OR DISTRII3UTED EXCEPT :\S PROVIDED IN TIIE COURT'S ORDER 2) Brief military and veteran groups on threats to the system and encourage their support in opposing any reduction of their benefit. Provide with appropriate materials.1 3) Maintain current information on military smoking behavior and cigarette sales in commissaries and exchanges for articles, op-ed pieces and economic impact studies.1 4) Commission economic impact studies sponsored by the Military Coalition on the effect of any proposal concerning cigarette pricing or availability in commissaries, exchanges and canteens. Promote as appropriate.1 5) Commission public opinion polls sponsored by the Military Coalition to demonstrate and reinforce the positive value of the commissary and exchange benefit to the military and posture any restriction as a threat to the entire system. Promote as appropriate. Encourage military press coverage.1 6) Sponsor Military Coalition media tours on the importance of the commissary and exchange benefit posturing any restriction as a threat to the entire system.1 50 TI DN 0018037

====== CONFIDENTIAL ====== TIIIS DOCUMENT IS SUUJECI' TO A COURT ORDER AND TUIS DOCUMENT ANI) ITS CONTENTS St1A1.L `OT BE USED. SIIO`.VN OR DISTRII3UTED EXCEPT :\S PROVIDED IN TIIE COURT'S ORDER 2) Brief military and veteran groups on threats to the system and encourage their support in opposing any reduction of their benefit. Provide with appropriate materials.1 3) Maintain current information on military smoking behavior and cigarette sales in commissaries and exchanges for articles, op-ed pieces and economic impact studies.1 4) Commission economic impact studies sponsored by the Military Coalition on the effect of any proposal concerning cigarette pricing or availability in commissaries, exchanges and canteens. Promote as appropriate.1 5) Commission public opinion polls sponsored by the Military Coalition to demonstrate and reinforce the positive value of the commissary and exchange benefit to the military and posture any restriction as a threat to the entire system. Promote as appropriate. Encourage military press coverage.1 6) Sponsor Military Coalition media tours on the importance of the commissary and exchange benefit posturing any restriction as a threat to the entire system.1 50 TI DN 0018037

____= CONFIDENTIAL =_____ I'f11S D(K'UMENT IS SUBJECT TO A COURT ORDER AND THIS DOCUMENT AND ITS CONTENTS SHALL NOT BE USED. SUOWN OR DISTRIBUTED EXCEPT AS PROVIDED IN THE CCIURT'S ORDER 7) Encourage and assist military and veteran groups in the preparation and submission of articles and op-eds to the military press on the importance of the commissary and exchange system.1 V. Resources A. Staff 1) Management: Ross 2) Division staff: Stuntz, Panzer, Duffin. Production Services, Media Relations, Information Center. 3) Other staff: Federal Relations: Payne, White; O'Rourke. State Activities: Battison, Duhaime, appropriate field staff. B. Consultants 1) Economists 2) Public Relations Counsel 3) Legislative Counsel 51 TI DN 0018038

____= CONFIDENTIAL =_____ I'f11S D(K'UMENT IS SUBJECT TO A COURT ORDER AND THIS DOCUMENT AND ITS CONTENTS SHALL NOT BE USED. SUOWN OR DISTRIBUTED EXCEPT AS PROVIDED IN THE CCIURT'S ORDER 7) Encourage and assist military and veteran groups in the preparation and submission of articles and op-eds to the military press on the importance of the commissary and exchange system.1 V. Resources A. Staff 1) Management: Ross 2) Division staff: Stuntz, Panzer, Duffin. Production Services, Media Relations, Information Center. 3) Other staff: Federal Relations: Payne, White; O'Rourke. State Activities: Battison, Duhaime, appropriate field staff. B. Consultants 1) Economists 2) Public Relations Counsel 3) Legislative Counsel 51 TI DN 0018038

====== CONFIDENTIAL TUIS DOCUMENT IS SUBJECT TO A COURT ORDER.IND THIS DOCUMENT AND ITS CONTENTS SHALL NOT BE USED. SHOWN OR DISTRIBUTED EXCEPT AS PROVIDED IN TUE COURT'S ORDER 4) Survey research firms 5) Military spokesperson (} Tobacco Lndustry Labor Management Committee C. Materials 1) Videos 2) Data Cards 3) Topic Sheets 4) Materials from coalitions organizatians and third party 52 TI DN 0018039

====== CONFIDENTIAL TUIS DOCUMENT IS SUBJECT TO A COURT ORDER.IND THIS DOCUMENT AND ITS CONTENTS SHALL NOT BE USED. SHOWN OR DISTRIBUTED EXCEPT AS PROVIDED IN TUE COURT'S ORDER 4) Survey research firms 5) Military spokesperson (} Tobacco Lndustry Labor Management Committee C. Materials 1) Videos 2) Data Cards 3) Topic Sheets 4) Materials from coalitions organizatians and third party 52 TI DN 0018039

====== CONFIDENTIAL =====- TIIIS DOCUMENT IS SUBJECT TO A COURT ORDER AND TUIS DOCUMENT AND ITS CONTENTS SlI~LL NOT BE USED. SHOW OR UISTRIUUTED [XCEPT AS PROVIDED IN THE COURT'S ORDER THE TOBACCO INSTITUTE 1988 BUDGET COST CENTER NAME Public Affairs - Tax Issue No. 1305 1987 1987 1988 Account Page Budget Estimated Budget Number Description Ref. ( 000 ($000) 000 4801 Books & Subscriptions .............. .... $ - 5201 Reproduction, Printing & Drafting.. .... 1t0 5401 Other Office Expense ............... .... - 6201 Advertising Space & Promotion...... .... - 7301 Profesaional Fees .................. .... 730 7501 Support of Tob./Other Organizations .... 235 8108 Outside Data Bases ................. .... 5 $ * $ 0 110 210 r 0 t00 750 730 590 215 703 0 0 TOTALS ........................ ...• 1 080 $1,155 2 253 The tax budget reflects expanded public communication through third party groups, economists, and advertising campaigns and increased focus on state legislation and the earmarking issue. The tax budget also includes the commissary issue. 53 TI DN 0018040

====== CONFIDENTIAL =====- TIIIS DOCUMENT IS SUBJECT TO A COURT ORDER AND TUIS DOCUMENT AND ITS CONTENTS SlI~LL NOT BE USED. SHOW OR UISTRIUUTED [XCEPT AS PROVIDED IN THE COURT'S ORDER THE TOBACCO INSTITUTE 1988 BUDGET COST CENTER NAME Public Affairs - Tax Issue No. 1305 1987 1987 1988 Account Page Budget Estimated Budget Number Description Ref. ( 000 ($000) 000 4801 Books & Subscriptions .............. .... $ - 5201 Reproduction, Printing & Drafting.. .... 1t0 5401 Other Office Expense ............... .... - 6201 Advertising Space & Promotion...... .... - 7301 Profesaional Fees .................. .... 730 7501 Support of Tob./Other Organizations .... 235 8108 Outside Data Bases ................. .... 5 $ * $ 0 110 210 r 0 t00 750 730 590 215 703 0 0 TOTALS ........................ ...• 1 080 $1,155 2 253 The tax budget reflects expanded public communication through third party groups, economists, and advertising campaigns and increased focus on state legislation and the earmarking issue. The tax budget also includes the commissary issue. 53 TI DN 0018040

====== CONFIDENTIAL ====== THIS DOC'UMF:N T IS SUOJf:CT TO A COURT ORDER :\ND fI11S DOCUMENT AND ITS CONTI:NTS St1ALL NOT OE USED. SI/OµN OR U1tiTR7f3UTI:D ECCr.PT AS PROVIDF.D IN TIIG COURT'S t)RDER THE TOBACCO INSTITUTE 1988 BUDGET CENTER Public Affairs - Tax Issue . No. 1305 1987 1987 1988 Budget Estimated Budget 000 ($000) ($000) ount 45201 - Re roduction Printin sa t nA :I tax publications Cax materials for other organizations ;xcise tax videos Cigarette excise tax video* Generic excise tax video for federal and state use* $ 60 $ 30 $ 50 50 30 75 - 50 25 60 $110 $110 $210 ~count #6201 - Advertising Space & =omotion Federal advertising campaign* State campaigns (3 @ $50,000)* iccount #7301 - Professional Fees PR counsel PR counsel Ogilvy S. Mather* Hill & Rnowlton* $ - $100 $500 250 $ _ $100 $750 $150 $ 225 $ - - - 180 - - 20 54 TI DN 0018041

====== CONFIDENTIAL ====== THIS DOC'UMF:N T IS SUOJf:CT TO A COURT ORDER :\ND fI11S DOCUMENT AND ITS CONTI:NTS St1ALL NOT OE USED. SI/OµN OR U1tiTR7f3UTI:D ECCr.PT AS PROVIDF.D IN TIIG COURT'S t)RDER THE TOBACCO INSTITUTE 1988 BUDGET CENTER Public Affairs - Tax Issue . No. 1305 1987 1987 1988 Budget Estimated Budget 000 ($000) ($000) ount 45201 - Re roduction Printin sa t nA :I tax publications Cax materials for other organizations ;xcise tax videos Cigarette excise tax video* Generic excise tax video for federal and state use* $ 60 $ 30 $ 50 50 30 75 - 50 25 60 $110 $110 $210 ~count #6201 - Advertising Space & =omotion Federal advertising campaign* State campaigns (3 @ $50,000)* iccount #7301 - Professional Fees PR counsel PR counsel Ogilvy S. Mather* Hill & Rnowlton* $ - $100 $500 250 $ _ $100 $750 $150 $ 225 $ - - - 180 - - 20 54 TI DN 0018041

==-=== CONFIDENTIAL ====== TIIIS DOCUMENT IS SUBJECT TO A COURT ORDER nND TDIS DOCUMENT AND ITS CONTENTS tiIIALL NOT UE USED. 511OWN ()R DIST'RIBUTfD E\CE('T AS PROVIDED IN TIIE COURT'S ORDER Public Affairs - Tax Issue I - Professional Fees, contd. >nsultants :e* .sts for op-ed program* 3,000) al board briefings* 3,000) ations to conferences 3,000) ~,rk an-Hillard* ~scey* costs :dies & research •n state revenue - Support of Tobacco & Other abor Management Committee for Tax Justice* incil for Latin American ~ment* on Human Needs* ist Forum* conference on deficit studies on excises 1987- Budget 1987 Estimated 000 ($0002 150 200 - - - - - - 50 30 250 200 - - - - 50 25 80 50 - $730 $730 $150 $170 1305 1988 1988 udget Budget 0$y00) ($000) 100 50 120 30 75 30 0 50 - 50 10 45 15 10 (see social 10 coats) 66 15 50 75 $590 45 24 24 24 25 $703 $2 253 50 55 TI DN 0018042 Page 2 No. 1305

==-=== CONFIDENTIAL ====== TIIIS DOCUMENT IS SUBJECT TO A COURT ORDER nND TDIS DOCUMENT AND ITS CONTENTS tiIIALL NOT UE USED. 511OWN ()R DIST'RIBUTfD E\CE('T AS PROVIDED IN TIIE COURT'S ORDER Public Affairs - Tax Issue I - Professional Fees, contd. >nsultants :e* .sts for op-ed program* 3,000) al board briefings* 3,000) ations to conferences 3,000) ~,rk an-Hillard* ~scey* costs :dies & research •n state revenue - Support of Tobacco & Other abor Management Committee for Tax Justice* incil for Latin American ~ment* on Human Needs* ist Forum* conference on deficit studies on excises 1987- Budget 1987 Estimated 000 ($0002 150 200 - - - - - - 50 30 250 200 - - - - 50 25 80 50 - $730 $730 $150 $170 1305 1988 1988 udget Budget 0$y00) ($000) 100 50 120 30 75 30 0 50 - 50 10 45 15 10 (see social 10 coats) 66 15 50 75 $590 45 24 24 24 25 $703 $2 253 50 55 TI DN 0018042 Page 2 No. 1305

====== CONFIDENTIAL -==== THIS DOCUMENT IS SUBJECT TO A COURT ORDER ANI) TUIS DOCUMENT AND IiS CONTENI'S SIfALL NOT BE USED. Sf1OWN OR DISTRIBUTED EXCEPT AS PROVIDED IN'I'l1E COURT'S ORDER TI DN 0018043

====== CONFIDENTIAL -==== THIS DOCUMENT IS SUBJECT TO A COURT ORDER ANI) TUIS DOCUMENT AND IiS CONTENI'S SIfALL NOT BE USED. Sf1OWN OR DISTRIBUTED EXCEPT AS PROVIDED IN'I'l1E COURT'S ORDER TI DN 0018043

===== CONFIDENTIAL ====== THIS DOCUMENT IS SUI3JE.(.T TO A COURT ORDER.\ND TIIIS DOCUMENT AND ITS CONTENTS SHALL NOT DE USED. SHOWN OR DISTRIBUTED EXCEPT AS PROVIDED IN TUE COURT'S ORDER PRODUCT REGIILlTION I, Background After two years of relative quiet, several events in 1987 moved the cigarette ingredients and "self-extinguishing" cigarette issues, back into the public eye. The Federal Trade Commission announced plans to shut down its tar and nicotine testing labs, prompting Congressional hearings and renewed calls to give the Consumer Product Safety Commission or the Food and Drug Administration authority to regulate cigarettes. The Surgeon General's report, on "the pharmacology of quitting," returned attention to the product rather than advertising or envi,ronmental issues. And, the CPSC-coordinated federal study on the technical and commercial feasibility of a "self-extinguishing" cigarette, will be completed and submitted to Congress. At the same time The Tobacco Institute's fire prevention program lept by leaps and bounds in 1987. We have a working relationship with over 225 fire departments in the United States, and we've given grants to over 130 cities and 47 fireservice organizations. 57 TI DN 00I8044

===== CONFIDENTIAL ====== THIS DOCUMENT IS SUI3JE.(.T TO A COURT ORDER.\ND TIIIS DOCUMENT AND ITS CONTENTS SHALL NOT DE USED. SHOWN OR DISTRIBUTED EXCEPT AS PROVIDED IN TUE COURT'S ORDER PRODUCT REGIILlTION I, Background After two years of relative quiet, several events in 1987 moved the cigarette ingredients and "self-extinguishing" cigarette issues, back into the public eye. The Federal Trade Commission announced plans to shut down its tar and nicotine testing labs, prompting Congressional hearings and renewed calls to give the Consumer Product Safety Commission or the Food and Drug Administration authority to regulate cigarettes. The Surgeon General's report, on "the pharmacology of quitting," returned attention to the product rather than advertising or envi,ronmental issues. And, the CPSC-coordinated federal study on the technical and commercial feasibility of a "self-extinguishing" cigarette, will be completed and submitted to Congress. At the same time The Tobacco Institute's fire prevention program lept by leaps and bounds in 1987. We have a working relationship with over 225 fire departments in the United States, and we've given grants to over 130 cities and 47 fireservice organizations. 57 TI DN 00I8044

_____= CONFIDENTIAL ====== THIS DOCUMENT IS SUI3JECT TO A COURT ORDER AND TIIIS DOCUMENT AND ITS CONTENTS SfInLL NOT OE USED. SHOWN OR DISTRIDUTED EXCE.PT AS PROVIDED IN 1'HE COURT'S ORDER o Although the number of fire deaths related to careless smoking decreased in the early part of the decade, the latest data indicate that trend has leveled off and even increased. Even though the death rate remains lower than it was five years ago, careless smoking still is regarded by many as an i.mportant cause of accidental fires. o In the past, as many as 15 states have considered "fire safe" cigarette legislation. To date in 1987, bills requiring manufacture of "self-extinguishing" cigarettes are pending in Massachusetts and New Jersey; a Minnesota bill carries over to 1988. This contrast is due largely to the fact that officials are awaiting the outcome of the federal study. 0 Although fire service hostility to the tobacco i.ndustry has subsided, it is far from nonexistent. Many major fire service groups have in the past adopted resolutions i.n support of "self-extinguishing" cigarette legislation. Although these resolutions are outdated, they may continue to reflect the positions of some of these groups, and may be used to justify lobbying. Meanwhile, The Institute has helped improve relations and has demonstrated that the industry can act responsibly to help deal with the fire problem. 60 TI DN 0018045

_____= CONFIDENTIAL ====== THIS DOCUMENT IS SUI3JECT TO A COURT ORDER AND TIIIS DOCUMENT AND ITS CONTENTS SfInLL NOT OE USED. SHOWN OR DISTRIDUTED EXCE.PT AS PROVIDED IN 1'HE COURT'S ORDER o Although the number of fire deaths related to careless smoking decreased in the early part of the decade, the latest data indicate that trend has leveled off and even increased. Even though the death rate remains lower than it was five years ago, careless smoking still is regarded by many as an i.mportant cause of accidental fires. o In the past, as many as 15 states have considered "fire safe" cigarette legislation. To date in 1987, bills requiring manufacture of "self-extinguishing" cigarettes are pending in Massachusetts and New Jersey; a Minnesota bill carries over to 1988. This contrast is due largely to the fact that officials are awaiting the outcome of the federal study. 0 Although fire service hostility to the tobacco i.ndustry has subsided, it is far from nonexistent. Many major fire service groups have in the past adopted resolutions i.n support of "self-extinguishing" cigarette legislation. Although these resolutions are outdated, they may continue to reflect the positions of some of these groups, and may be used to justify lobbying. Meanwhile, The Institute has helped improve relations and has demonstrated that the industry can act responsibly to help deal with the fire problem. 60 TI DN 0018045

==-=== CONFIDENTIAL ===== THIS DOCUMENT IS SUBJECT TO A COURT ORDER AND THIS DOCUMENT AND ITS CONTENTS SHALL NOT BE USED, SUOwN OR DISTRIBUTED EXCEPT AS PROVIDED IN THE COURT'S ORDER o Elected officials remain unaware of the severity of the overall accidental fire problem and the availability of good prevention and education programs. They also are unaware of The Institute's role in fire prevention. The fire service believes that these public officials, and representatives from other industries, should be playing a larger role in the overall fire prevention effort. o Anti-smokers argue that the contents of cigarettes should be scrutinized at least as rigorously as those of less controversial products. To industry arguments that the contents of cigarettes are "trade secrets," the anti-smokers respond that public safety is more important than trade secrets, and that no other industry has the same privilege. Similar industry arguments on the "self-extinguishing" cigarette (that a "fire safe" cigarette, even if feasible, might not be as appealing to consumers as current cigarettes), have in the past added to fire service hostility toward the industry. III. Objectives To demonstrate to legislators, journalists and consuuers that cigarette manufactnrers act responsibly by using ingredients which have been scientifically scrutinized, and to reinforce . 6 1 r, DN 0018046

==-=== CONFIDENTIAL ===== THIS DOCUMENT IS SUBJECT TO A COURT ORDER AND THIS DOCUMENT AND ITS CONTENTS SHALL NOT BE USED, SUOwN OR DISTRIBUTED EXCEPT AS PROVIDED IN THE COURT'S ORDER o Elected officials remain unaware of the severity of the overall accidental fire problem and the availability of good prevention and education programs. They also are unaware of The Institute's role in fire prevention. The fire service believes that these public officials, and representatives from other industries, should be playing a larger role in the overall fire prevention effort. o Anti-smokers argue that the contents of cigarettes should be scrutinized at least as rigorously as those of less controversial products. To industry arguments that the contents of cigarettes are "trade secrets," the anti-smokers respond that public safety is more important than trade secrets, and that no other industry has the same privilege. Similar industry arguments on the "self-extinguishing" cigarette (that a "fire safe" cigarette, even if feasible, might not be as appealing to consumers as current cigarettes), have in the past added to fire service hostility toward the industry. III. Objectives To demonstrate to legislators, journalists and consuuers that cigarette manufactnrers act responsibly by using ingredients which have been scientifically scrutinized, and to reinforce . 6 1 r, DN 0018046

_____= CONFIDENTIAL ====== TIIIS DOCU,1fENT IS SUI3JECT To .1 COURT ()RDER AND TIIIS DOCUMENT qND I'fS CONTENTS SIIALL NOT 13E USF'D. SIIOWN OR DISTRII3UTF.D EXCEPT AS PROy1DED IN TIIE COURTS ORDER the fact that the security of "trade secrets" is a fundamental part of'a free market economy.1 To deaonstrate to key public officials and to fire service leaders that the tobacco industry acts voluntarily and responsibly in fire prevention. IV. Strategies, Goals and Tactics Strategy I: Work with manufacturers of other consumer products, and with trade associations and manufacturers representing the ingredients suppliers industry, to raise public awareness of the current rigorous process by which all ingredients, including those in cigarettes, are reviewed. Promote concept that trade secrets are a necessary element of a competitive marketplace.1 Goal: To produce and have published In 1988 15 op-ed pieces by economists on the importance of competition and the role of trade secrets in a free market economy.1 62 TI DN 0018047

_____= CONFIDENTIAL ====== TIIIS DOCU,1fENT IS SUI3JECT To .1 COURT ()RDER AND TIIIS DOCUMENT qND I'fS CONTENTS SIIALL NOT 13E USF'D. SIIOWN OR DISTRII3UTF.D EXCEPT AS PROy1DED IN TIIE COURTS ORDER the fact that the security of "trade secrets" is a fundamental part of'a free market economy.1 To deaonstrate to key public officials and to fire service leaders that the tobacco industry acts voluntarily and responsibly in fire prevention. IV. Strategies, Goals and Tactics Strategy I: Work with manufacturers of other consumer products, and with trade associations and manufacturers representing the ingredients suppliers industry, to raise public awareness of the current rigorous process by which all ingredients, including those in cigarettes, are reviewed. Promote concept that trade secrets are a necessary element of a competitive marketplace.1 Goal: To produce and have published In 1988 15 op-ed pieces by economists on the importance of competition and the role of trade secrets in a free market economy.1 62 TI DN 0018047

Tactics: ====== CONFIDENTIAL == ___ TIIIS DOCUMENT IS SUBJECT TO A COURT ORDER AND TIIIS D()(:UMENT AND ITS CONTENTS SHALL NOT I)E USED. SHOWN OR DISTRIDUTED EXCEPT AS PROVIDED IN TIIE COURT'S ORDER 1) Review existing literature on the importance of trade secrets; prepare briefing papers for use in meetings with other industries.1 2) Identify spokespersons, if available, who are familiar with the issue; seek their assistance in briefing other industries and representing our views to the media, and in briefings with legislative representatives.1 3) Identify officials within appropriate trade associations representing ingredients manufacturers and brief them on the issue. Seek their.support in publicly stating that ingredients that have been identified as being used in cigarette manufacture all have been subjected to proper scrutiny by the appropriate regulatory agencies, and that anti-smoker efforts to weaken consumer confidence in those ingredients as applied to cigarette manufacture could also affect consumer views of other products which use the same ingredients.1 4) Commission economist team to develop arguments and produce op-ed pieces highlighting the 63 TI DN 0018048

Tactics: ====== CONFIDENTIAL == ___ TIIIS DOCUMENT IS SUBJECT TO A COURT ORDER AND TIIIS D()(:UMENT AND ITS CONTENTS SHALL NOT I)E USED. SHOWN OR DISTRIDUTED EXCEPT AS PROVIDED IN TIIE COURT'S ORDER 1) Review existing literature on the importance of trade secrets; prepare briefing papers for use in meetings with other industries.1 2) Identify spokespersons, if available, who are familiar with the issue; seek their assistance in briefing other industries and representing our views to the media, and in briefings with legislative representatives.1 3) Identify officials within appropriate trade associations representing ingredients manufacturers and brief them on the issue. Seek their.support in publicly stating that ingredients that have been identified as being used in cigarette manufacture all have been subjected to proper scrutiny by the appropriate regulatory agencies, and that anti-smoker efforts to weaken consumer confidence in those ingredients as applied to cigarette manufacture could also affect consumer views of other products which use the same ingredients.1 4) Commission economist team to develop arguments and produce op-ed pieces highlighting the 63 TI DN 0018048

====== CONFIDENTIAL =____ TIIIS DOCUMENT IS SUBJECT TO A COURT ORDER AND TIIIS DOCUMENT AND ITS CONTENTS SHALL NOT BE USED. SIIOWN OR DISTRIBUTED EXCEPT .\S PROVIDED IN TI1E COURT'S ORDER importance of competition in a free-market economy, and how trade secrets foster that competition.1 5) If appropriate, commission economic impact study of the effect on research and development of new products of efforts to force manufacturers to discloee trade secrets. Seek third-party sponsorship and promote, via op-ed pieces, testimony, etc., as appropriate.1 6) Support, through a major association of manufacturers, a second economic impact study of the effect on competition of politically-inspired disclosure of confidential information.1 7) Encourage manufacturers of well known products protected by trade secrets to speak out on the negative effects of•disclosure of such secrets.1 8) Encourage the inventors/developers of popular products to speak out on the importance of trade secrets to technology and investments.1 Strategy II: Work with fire officials and, when possible, other public officials at the state and/or local level to improve the quality and increase the availability of education and prevention programs for fire departments. 64 TI DN 0018049

====== CONFIDENTIAL =____ TIIIS DOCUMENT IS SUBJECT TO A COURT ORDER AND TIIIS DOCUMENT AND ITS CONTENTS SHALL NOT BE USED. SIIOWN OR DISTRIBUTED EXCEPT .\S PROVIDED IN TI1E COURT'S ORDER importance of competition in a free-market economy, and how trade secrets foster that competition.1 5) If appropriate, commission economic impact study of the effect on research and development of new products of efforts to force manufacturers to discloee trade secrets. Seek third-party sponsorship and promote, via op-ed pieces, testimony, etc., as appropriate.1 6) Support, through a major association of manufacturers, a second economic impact study of the effect on competition of politically-inspired disclosure of confidential information.1 7) Encourage manufacturers of well known products protected by trade secrets to speak out on the negative effects of•disclosure of such secrets.1 8) Encourage the inventors/developers of popular products to speak out on the importance of trade secrets to technology and investments.1 Strategy II: Work with fire officials and, when possible, other public officials at the state and/or local level to improve the quality and increase the availability of education and prevention programs for fire departments. 64 TI DN 0018049

Goal: __-_= CONFIDENTIAL ====== TIiIS DOCUMENT IS SUBJECT TO A COURT ORDER AND Tfi15 DIS'CTR 6UTED EXCEPT (nS PROVIDED IN TIIE COURT'DS ORI FRN OR To have working relationships in 275 localities by January 1, 1989, an increase of 50 from the previous year's goal. A working relationship signifies (1) a TI-sponsored project in place, (2) TI staff contact with the local fire service and (3) awareness or involvement of public officials.2 Tactics: 1) Develop video formats for existing programs (e.g., smoke detector programs) by June 1, 1988.1 2) Develop and implement promotion plan• for all TI fire safety materials by January 1, 1988.~ a) Assess feasibility of offering nationwide distribution of all programs through National Volunteer Fire Council.2 b) Develop catalogue of fire prevention materials and programs, for distribution N 0018050

Goal: __-_= CONFIDENTIAL ====== TIiIS DOCUMENT IS SUBJECT TO A COURT ORDER AND Tfi15 DIS'CTR 6UTED EXCEPT (nS PROVIDED IN TIIE COURT'DS ORI FRN OR To have working relationships in 275 localities by January 1, 1989, an increase of 50 from the previous year's goal. A working relationship signifies (1) a TI-sponsored project in place, (2) TI staff contact with the local fire service and (3) awareness or involvement of public officials.2 Tactics: 1) Develop video formats for existing programs (e.g., smoke detector programs) by June 1, 1988.1 2) Develop and implement promotion plan• for all TI fire safety materials by January 1, 1988.~ a) Assess feasibility of offering nationwide distribution of all programs through National Volunteer Fire Council.2 b) Develop catalogue of fire prevention materials and programs, for distribution N 0018050

====== CONFIDENTIAL ===== TIIIS DOCUMENT IS SU131ECT TO A COURT ORDER AND TI11S DOCUMENT AND ITS CONTENTS SNALL NOT 6E USED. SIIOWN OR DISTRI6UTED EXCEPT AS PROVIDED IN TIIE COURT'S ORDER in response to requests for information, by January 1, 1988.1 3) Continue city grants program, awarding an additional 30 grants in 1988. To date, 130 cities have received grants from the program.2 4) Continue grants to fire service organizations for fire prevention education programs, supporting an additional 3 programs in 1988. To date. 47 fire service organizations have received grants.2 5) Seek locales as opportunities to implement TI programs as follows; a) Make direct contacts with individual departments and officials in order to ' establish programs. b) Work through state and regional fire service groups to coordinate introduction of programs locally. c) Work through elected offi.cials' offices to approach local departments. 66 TI DN 0018051

====== CONFIDENTIAL ===== TIIIS DOCUMENT IS SU131ECT TO A COURT ORDER AND TI11S DOCUMENT AND ITS CONTENTS SNALL NOT 6E USED. SIIOWN OR DISTRI6UTED EXCEPT AS PROVIDED IN TIIE COURT'S ORDER in response to requests for information, by January 1, 1988.1 3) Continue city grants program, awarding an additional 30 grants in 1988. To date, 130 cities have received grants from the program.2 4) Continue grants to fire service organizations for fire prevention education programs, supporting an additional 3 programs in 1988. To date. 47 fire service organizations have received grants.2 5) Seek locales as opportunities to implement TI programs as follows; a) Make direct contacts with individual departments and officials in order to ' establish programs. b) Work through state and regional fire service groups to coordinate introduction of programs locally. c) Work through elected offi.cials' offices to approach local departments. 66 TI DN 0018051

CONFIDENTIAL ====== TIIIS DOCUh1f:NT IS SUIIJECT TO A COURT ORDER ~~ND TIIIS DOCUh1ENT nND ITS CONTENTS Sk1ALL NOT BE USED. SHON'N OR DISTRIBUTED EXCEPT AS I'ROVIDED IN TIIE COURT'S ORDER d) Approach fire officials who have commented favorably on research supported by The Institute. e) Follow up on all requests for assistance from fire service and public officials generally aware of our efforts. f) Follow up with departments already participating in the program. Strategy III: Maintain and increase fire service awareness of the tobacco industry's contribution to fire prevention. Efforts will target California, Connecticut, Florida, Illinois, Iowa, Kansas, Massachusetts, Michigan, Minnesota, Missouri, New Jersey, New Mexico, New York, Ohio, Oregon, Pennsylvania, South Carolina, Tennessee, Texas, Virginia, Washington and West Virginia. Goals: 1) Encourage placement of at least five articles, each describing a program supported by the industry, by fire service personnel in fire trade publications. 67 TI DN 0018052

CONFIDENTIAL ====== TIIIS DOCUh1f:NT IS SUIIJECT TO A COURT ORDER ~~ND TIIIS DOCUh1ENT nND ITS CONTENTS Sk1ALL NOT BE USED. SHON'N OR DISTRIBUTED EXCEPT AS I'ROVIDED IN TIIE COURT'S ORDER d) Approach fire officials who have commented favorably on research supported by The Institute. e) Follow up on all requests for assistance from fire service and public officials generally aware of our efforts. f) Follow up with departments already participating in the program. Strategy III: Maintain and increase fire service awareness of the tobacco industry's contribution to fire prevention. Efforts will target California, Connecticut, Florida, Illinois, Iowa, Kansas, Massachusetts, Michigan, Minnesota, Missouri, New Jersey, New Mexico, New York, Ohio, Oregon, Pennsylvania, South Carolina, Tennessee, Texas, Virginia, Washington and West Virginia. Goals: 1) Encourage placement of at least five articles, each describing a program supported by the industry, by fire service personnel in fire trade publications. 67 TI DN 0018052

====== CONFIDENTIAL =__= TIIIS DOCUMENT IS SUBJECr TO A COURT ORDER AND TUIS DOCUMENT AND ITS CONTENTS SHALL NOT BE USED. SHOWN OR DISTRIBUTED EXCEPT AS PROVIDED IN THE COURT'S ORDER 2) Obtain at least five mentions per quarter in national, state and regional fire service publications. 3) Appear on the program of at least two national and five regional fire service conferences in 1988. Attend at least a dozen other . conferences, to privately promote industry programs. Tactics: 1) Encourage local departments to publicize industry efforts in newsletters, publications of national, regional, state and county fire associations. 2) Maintain and improve relations with key fire trade journalists. 3) Maintain and improve relations with individuals responsible for planning major conferences. 68 'rI' ®0i8cW

====== CONFIDENTIAL =__= TIIIS DOCUMENT IS SUBJECr TO A COURT ORDER AND TUIS DOCUMENT AND ITS CONTENTS SHALL NOT BE USED. SHOWN OR DISTRIBUTED EXCEPT AS PROVIDED IN THE COURT'S ORDER 2) Obtain at least five mentions per quarter in national, state and regional fire service publications. 3) Appear on the program of at least two national and five regional fire service conferences in 1988. Attend at least a dozen other . conferences, to privately promote industry programs. Tactics: 1) Encourage local departments to publicize industry efforts in newsletters, publications of national, regional, state and county fire associations. 2) Maintain and improve relations with key fire trade journalists. 3) Maintain and improve relations with individuals responsible for planning major conferences. 68 'rI' ®0i8cW

===== CONFIDENTIAL ====== THIS DOCUMENT IS SUBJECT TO A COURT ORDER AND TIIIS DOCUMENT AND ITS CONTENTS SHALL NOT BE USED. SHOWN OR DISTRIBUTED EXCEPT AS PROVIDED IN TIIE COURT'S ORDER 4) Conduct individual briefings as part of visits to departments, conferences and other meetings. 5) Identify opportunities to promote program in media relations visits to appropriate regions. 6) Consider implementing additional model fire safety programs in regions of the country identified by federal and/or state activities staffs. Strategy IV: Continue to encourage discussion among fire service leaders and concerned public officials about the overall accidental fire problem. See Strategy III for discussion of priority regions. Tactics: 1) Make presentations of 1987 research findings of decision-maker attitudes toward fire safety and education to major fire service groups and to representatives of groups surveyed in the report. 69 TI DN 0018054

===== CONFIDENTIAL ====== THIS DOCUMENT IS SUBJECT TO A COURT ORDER AND TIIIS DOCUMENT AND ITS CONTENTS SHALL NOT BE USED. SHOWN OR DISTRIBUTED EXCEPT AS PROVIDED IN TIIE COURT'S ORDER 4) Conduct individual briefings as part of visits to departments, conferences and other meetings. 5) Identify opportunities to promote program in media relations visits to appropriate regions. 6) Consider implementing additional model fire safety programs in regions of the country identified by federal and/or state activities staffs. Strategy IV: Continue to encourage discussion among fire service leaders and concerned public officials about the overall accidental fire problem. See Strategy III for discussion of priority regions. Tactics: 1) Make presentations of 1987 research findings of decision-maker attitudes toward fire safety and education to major fire service groups and to representatives of groups surveyed in the report. 69 TI DN 0018054

===-== CONFIDENTIAL =__=__ THIS DOCUMENT IS SUBJECT TO A COURT ORDER AND TIIIS DOCUMENT AND ITS CONTENTS SHALL NOT BE USED. SHOWN OR DISTRIBUTED EXCEPT AS PROVIDED IN TI1E COURT'S ORDER 2) Publish findings in state chiefs and firefighter publications. 3) Encourage fire service, financial, education and other officials to comment on study in articles, speeches and correspondence with public officials. 4) Meet with State Activities Policy Committee to consider actively supporting smoke detector legislation at the state and local levels. 5) Seek additional opportunities to assist key fire service organizations (e.g., IAFC, ISFSI, IAFF, NVFC, IABFF, Burn Concerns, Pan Educational Institute) with additional programs and projects aimed at fire prevention. 6) Where appropriate, cooperate with Federal Relations and State Activities Division to arrange briefings on fire prevention issues between elected officials and representatives of the fire service. 70 TI DN 0028055

===-== CONFIDENTIAL =__=__ THIS DOCUMENT IS SUBJECT TO A COURT ORDER AND TIIIS DOCUMENT AND ITS CONTENTS SHALL NOT BE USED. SHOWN OR DISTRIBUTED EXCEPT AS PROVIDED IN TI1E COURT'S ORDER 2) Publish findings in state chiefs and firefighter publications. 3) Encourage fire service, financial, education and other officials to comment on study in articles, speeches and correspondence with public officials. 4) Meet with State Activities Policy Committee to consider actively supporting smoke detector legislation at the state and local levels. 5) Seek additional opportunities to assist key fire service organizations (e.g., IAFC, ISFSI, IAFF, NVFC, IABFF, Burn Concerns, Pan Educational Institute) with additional programs and projects aimed at fire prevention. 6) Where appropriate, cooperate with Federal Relations and State Activities Division to arrange briefings on fire prevention issues between elected officials and representatives of the fire service. 70 TI DN 0028055

V. Resources A. Staff iHIS DDCpMENT ISC~N~o D~1~1 ~T DAL D THIS DOCUMENT A ND (TS CONTE DISTRIOpTE NTS $qpEE N D EXCEM AS AROV(DED IN TIiETC01 RT'.DORDERN OR 1) 2) State Activities: Yoe, appropriate field staff 3) Federal Relations: Vinovich, White e. Consultants 1) Legal: John Rupp, Covington & Burling 2) Fire Experts: Pat Mieszala. Burn Concerns, Inc.; Ron Coleman, Phoenix Technology, Inc.; John Sroka, John Sroka and Associates; Larry Zoeller, Larry Zoeller and Associates; Carolyn Perroni Inc.; Phil Schaenman and Barbara Lundquist, TriData; Anthony Granito 3) Appropriate legislative consultants 71 Public Relations; Sparber, Stuntz Osborne TI DN 0018056

V. Resources A. Staff iHIS DDCpMENT ISC~N~o D~1~1 ~T DAL D THIS DOCUMENT A ND (TS CONTE DISTRIOpTE NTS $qpEE N D EXCEM AS AROV(DED IN TIiETC01 RT'.DORDERN OR 1) 2) State Activities: Yoe, appropriate field staff 3) Federal Relations: Vinovich, White e. Consultants 1) Legal: John Rupp, Covington & Burling 2) Fire Experts: Pat Mieszala. Burn Concerns, Inc.; Ron Coleman, Phoenix Technology, Inc.; John Sroka, John Sroka and Associates; Larry Zoeller, Larry Zoeller and Associates; Carolyn Perroni Inc.; Phil Schaenman and Barbara Lundquist, TriData; Anthony Granito 3) Appropriate legislative consultants 71 Public Relations; Sparber, Stuntz Osborne TI DN 0018056

C. Materials TUIS DOCUMENi f,C„ON~'IDEN _ DOCUMG NT AND DISTRI6UTED ITS CONTENTS)SlIALI, NO~p AL DSI/OWN OR ExCGPT AS PROVIDED IN TlIE COURT;S pRpDIIS _ ER 1) New TooLs for Volunteer Firefighters 2) Firesafety...for the Rest of Your Life 3) FireCare 4) Fire Education Evaluation Survey 5) Smoke detector programs (1) urban (2) rural 6) Research reports 7) Fire Sense 8) Reprints of appropriate articles 72 TI DN 0018057

C. Materials TUIS DOCUMENi f,C„ON~'IDEN _ DOCUMG NT AND DISTRI6UTED ITS CONTENTS)SlIALI, NO~p AL DSI/OWN OR ExCGPT AS PROVIDED IN TlIE COURT;S pRpDIIS _ ER 1) New TooLs for Volunteer Firefighters 2) Firesafety...for the Rest of Your Life 3) FireCare 4) Fire Education Evaluation Survey 5) Smoke detector programs (1) urban (2) rural 6) Research reports 7) Fire Sense 8) Reprints of appropriate articles 72 TI DN 0018057

TfIIS DOCU~ DOCUMENT IS SUB DENTIAL =- IEC7 TO q ~~ ~fENT AND ITS CONT COURT ORDER ~Np TIIIS DISTRIBUTED EXCEPT ENTS SIIAUI. NOT II AS PROVIDED IN THE E US COURTE'S D, ORDER SFIOWN OR TAE TOBACCO INSTITUTE 1988 BUDGET COST CENTER Public Affairs - Product Regulation Issue Account Number 5201 7301 7501 8108 Description ------ CONFI Page Ref. Reproduction, Printing & Drafing.. .... Professional Fees .................. .... Support of Tob./Other Organizationa .... Outside Data Bases ................. .... TOTALS ........................ .... 73 No. 1306 1987 Budget 1987 1988 Estimated Budget 000 ($000) ( 000 $130 $115 $ 45 248 280 430 245 230 420 5 0 0 $628 $625 895 TI DN 0018058 i

TfIIS DOCU~ DOCUMENT IS SUB DENTIAL =- IEC7 TO q ~~ ~fENT AND ITS CONT COURT ORDER ~Np TIIIS DISTRIBUTED EXCEPT ENTS SIIAUI. NOT II AS PROVIDED IN THE E US COURTE'S D, ORDER SFIOWN OR TAE TOBACCO INSTITUTE 1988 BUDGET COST CENTER Public Affairs - Product Regulation Issue Account Number 5201 7301 7501 8108 Description ------ CONFI Page Ref. Reproduction, Printing & Drafing.. .... Professional Fees .................. .... Support of Tob./Other Organizationa .... Outside Data Bases ................. .... TOTALS ........................ .... 73 No. 1306 1987 Budget 1987 1988 Estimated Budget 000 ($000) ( 000 $130 $115 $ 45 248 280 430 245 230 420 5 0 0 $628 $625 895 TI DN 0018058 i

====== CONFIDENTIAL THIS DOCUMENT IS SUBJECT TO A COURT ORDER AND TUIS DOCUMENT AND TS CONTENTS SIiALL NOT BE USED. SHOWN OR DISTRIBUTED EXCEPT AS PROVIDED IN TUE COURT'S ORDER THE TOBACCO INSTITUTE 1988 BUDGET COST CENTER Public Affairs - Product Regulation Issue No. 1306 1987 Budget 1987 Estimated 1988 Budget 000 ($000) ($000) Account #5201 - Re roduction Printin LDra ting Production of new materials "FireSense" hearing impaired program $ 10 $ 10 $ 0 Fire prevention case study ($arriers) 10 10 0 Reproduction of existing materials Articles and studies 5 5 15 "FireCare" 30 30 15 Nat'L. Vol. Fire Council materials 15 20 0 Smoke detector programs 30 10 0 "FireSense" 30 30 15 $130 $115 $ 45 Account #7301 - Professional Fees Tri Data, Inc.* General consulting $248 $260 $260 State, federal testimony - - 110 Other - 20 0 Economists (op-ed project)* - - 30 (15 op-ed @ $2,000) Economic impact studies* R&D _ - 15 Competition 15 $248 $280 $430 74 TI DN 0018059

====== CONFIDENTIAL THIS DOCUMENT IS SUBJECT TO A COURT ORDER AND TUIS DOCUMENT AND TS CONTENTS SIiALL NOT BE USED. SHOWN OR DISTRIBUTED EXCEPT AS PROVIDED IN TUE COURT'S ORDER THE TOBACCO INSTITUTE 1988 BUDGET COST CENTER Public Affairs - Product Regulation Issue No. 1306 1987 Budget 1987 Estimated 1988 Budget 000 ($000) ($000) Account #5201 - Re roduction Printin LDra ting Production of new materials "FireSense" hearing impaired program $ 10 $ 10 $ 0 Fire prevention case study ($arriers) 10 10 0 Reproduction of existing materials Articles and studies 5 5 15 "FireCare" 30 30 15 Nat'L. Vol. Fire Council materials 15 20 0 Smoke detector programs 30 10 0 "FireSense" 30 30 15 $130 $115 $ 45 Account #7301 - Professional Fees Tri Data, Inc.* General consulting $248 $260 $260 State, federal testimony - - 110 Other - 20 0 Economists (op-ed project)* - - 30 (15 op-ed @ $2,000) Economic impact studies* R&D _ - 15 Competition 15 $248 $280 $430 74 TI DN 0018059

TI{s ----`= CONFIDENTIAL -_- _ _ DOCIiME~T /S Sl:B1ECT TO q C'OURT ORDER qN DOCUMENT AND THIS DISTRIBUTED D ITS CONTENTS SI{qLL N EXCEPT qS PROVID OT BE USED, SHOWN OR ED IN THE COURT'S ORDER i -"ST CENTER Public Affairs - Product Regulation Isaue Page 2 No. 1306 1988 Budget 000 Account #7501 - Su ort of Tobacco Ot er gan zat ons Fire safety grant program . Grants $120 $125 $120 Model fire programs 25 10 25 Smoke detector program 10 5 40 PR Support to Other organizations . Zoeller & Associates (1307) 85 Pan Ed. Institute 10 25 Misc. (production of materials, (1-307) 45 psa's, etc.) "FireSense" hearing impaired program 10 25 10 Burn Concerns/American Burn Assn. 35 10 20 Lnt'l. Assn. of Fire Chiefs 25 5 10 National Volunteer Fire Council 20 40 40 245 $230 420 TOTALS ..................... 628 $625 $895 1987. 1987 Budget Estimated 000($000) 75 TI DN 0018060

TI{s ----`= CONFIDENTIAL -_- _ _ DOCIiME~T /S Sl:B1ECT TO q C'OURT ORDER qN DOCUMENT AND THIS DISTRIBUTED D ITS CONTENTS SI{qLL N EXCEPT qS PROVID OT BE USED, SHOWN OR ED IN THE COURT'S ORDER i -"ST CENTER Public Affairs - Product Regulation Isaue Page 2 No. 1306 1988 Budget 000 Account #7501 - Su ort of Tobacco Ot er gan zat ons Fire safety grant program . Grants $120 $125 $120 Model fire programs 25 10 25 Smoke detector program 10 5 40 PR Support to Other organizations . Zoeller & Associates (1307) 85 Pan Ed. Institute 10 25 Misc. (production of materials, (1-307) 45 psa's, etc.) "FireSense" hearing impaired program 10 25 10 Burn Concerns/American Burn Assn. 35 10 20 Lnt'l. Assn. of Fire Chiefs 25 5 10 National Volunteer Fire Council 20 40 40 245 $230 420 TOTALS ..................... 628 $625 $895 1987. 1987 Budget Estimated 000($000) 75 TI DN 0018060

===_ == CONFIDENTIAL =---- TIIIS DOCUMENT IS SUBJECT TO A COURT ORDER AND IiIIS DOCUMENT AND ITS CONTENTS SHALL NOT BE USE.D, SHOWN OR DISTRIBUTED EXCEPT AS PROVIDED IN THE COURTS ORDER COALITI08S PLAN 1. Background Coalition activities supportive of specific issues are described in the issues, media relations and special projects plans. In this plan, we propose activities to improve relations with groups and individuals that fall into three general categories: (1) the tobacco family, (2) coalitions with which we have existing relations among some but not all groups and/or on some but not all issues, and (3) coalitions with which we have no relationship as yet. The success of many of these activities will depend upon the involvement and cooperation of staff from other divisions within The Institute, and from member companies and other tobacco-related organizations. II. A,ssu.ptions o The tobacco industry is a highly competitive assortment of individuals, businesses and trade associations. Unity of its competitors in public affairs represents the industry's greatest strength; conversely, disunity can be its greatest weakness. 76 TI DN 0018061

===_ == CONFIDENTIAL =---- TIIIS DOCUMENT IS SUBJECT TO A COURT ORDER AND IiIIS DOCUMENT AND ITS CONTENTS SHALL NOT BE USE.D, SHOWN OR DISTRIBUTED EXCEPT AS PROVIDED IN THE COURTS ORDER COALITI08S PLAN 1. Background Coalition activities supportive of specific issues are described in the issues, media relations and special projects plans. In this plan, we propose activities to improve relations with groups and individuals that fall into three general categories: (1) the tobacco family, (2) coalitions with which we have existing relations among some but not all groups and/or on some but not all issues, and (3) coalitions with which we have no relationship as yet. The success of many of these activities will depend upon the involvement and cooperation of staff from other divisions within The Institute, and from member companies and other tobacco-related organizations. II. A,ssu.ptions o The tobacco industry is a highly competitive assortment of individuals, businesses and trade associations. Unity of its competitors in public affairs represents the industry's greatest strength; conversely, disunity can be its greatest weakness. 76 TI DN 0018061

====== CONFIDENTIAL =_____ THIS DOCUMENT IS SU6JECT TO A COURT ORDER AND 1'IIIS DOCUMLNT AND ITS C'ONTENTS SHALL NOT IlE USED. SHOWN OR DISfRIRUTED EXCEPT AS PROVIDF;D I,11TIE COURT'S ORDER o In dealing with public issues, the industry has come to rely more and more heavily on development of effective coalitions to complement and supplement its communications activities. The development, maintenance and involvement of coalitions by The Institute and its member companies has become a priority communications activity which has produced outstanding results. o Our allies' greatest strength -- independence -- remains a limit on the usefulness of these coalitions. Allies may not agree or even have an interest in all industry issues, and may not be willing or able to assist in all ways requested. o Although a great deal of progress has been made in establishing and involving coalitions in our issue programs, a great deal of additional work remains, particularly in the areas of tobacco family and farm issues, minority and women's issues. o In order to attract allies and maintain their interest in our issues, The Institute must become more involved in responding to requests for assistance on non-tobacco concerns, and in identifying and offering assistance on some issues before we are asked. 77 TI DN 0018062

====== CONFIDENTIAL =_____ THIS DOCUMENT IS SU6JECT TO A COURT ORDER AND 1'IIIS DOCUMLNT AND ITS C'ONTENTS SHALL NOT IlE USED. SHOWN OR DISfRIRUTED EXCEPT AS PROVIDF;D I,11TIE COURT'S ORDER o In dealing with public issues, the industry has come to rely more and more heavily on development of effective coalitions to complement and supplement its communications activities. The development, maintenance and involvement of coalitions by The Institute and its member companies has become a priority communications activity which has produced outstanding results. o Our allies' greatest strength -- independence -- remains a limit on the usefulness of these coalitions. Allies may not agree or even have an interest in all industry issues, and may not be willing or able to assist in all ways requested. o Although a great deal of progress has been made in establishing and involving coalitions in our issue programs, a great deal of additional work remains, particularly in the areas of tobacco family and farm issues, minority and women's issues. o In order to attract allies and maintain their interest in our issues, The Institute must become more involved in responding to requests for assistance on non-tobacco concerns, and in identifying and offering assistance on some issues before we are asked. 77 TI DN 0018062

====== CONFIDENTIAL =__=_= THIS DOCUMENT IS SUBIECT T() A COURT ORDER AND TfIIS D(X'UMENT AND ITS CONTENTS SHALL NOT BE USED. SHOWN OR DISTRIBUTED EXCEPT AS PROVIDED IN THE COURT'S ORDER III. Objective Escablish and maintain working relations with other groups and individuals for the purpose of demonstrating broad support for industry positions and initiatives. IV. Strategies and Tactics Strategy I: Improve working relations with all major segments of the tobacco industry. Tactics 1) Maintain and improve ongoing communications with the basic segments of the industry. Use established methods such as the Tobacco Observer and other Institute publications, as well as guest columns in tobacco-related trade journals, and new means as appropriate.2 2) As appropriate, restructure Tobacco Observer in accordance with results of readership survey to be conducted in 1988. Continue to assess its usefulness a communications/education vehicle for tobacco family members.t as 78 TI DN 0018063

====== CONFIDENTIAL =__=_= THIS DOCUMENT IS SUBIECT T() A COURT ORDER AND TfIIS D(X'UMENT AND ITS CONTENTS SHALL NOT BE USED. SHOWN OR DISTRIBUTED EXCEPT AS PROVIDED IN THE COURT'S ORDER III. Objective Escablish and maintain working relations with other groups and individuals for the purpose of demonstrating broad support for industry positions and initiatives. IV. Strategies and Tactics Strategy I: Improve working relations with all major segments of the tobacco industry. Tactics 1) Maintain and improve ongoing communications with the basic segments of the industry. Use established methods such as the Tobacco Observer and other Institute publications, as well as guest columns in tobacco-related trade journals, and new means as appropriate.2 2) As appropriate, restructure Tobacco Observer in accordance with results of readership survey to be conducted in 1988. Continue to assess its usefulness a communications/education vehicle for tobacco family members.t as 78 TI DN 0018063

===== CONFIDENTIAL ====== TIIIS DOCUMEN'f IS SUBJECT TO A C'OURT ORDER:IND I'IIIS i)OC'UMENT AND ITS CONTENTS Sll.\LL NOT 6E I:SEI). SIiOWN OR DISTRI6UTED EXCEPT AS PROVIDED IN TfIE COURT'S ORDER 3) As part of an aggressive member company relationa program, continue to conduct regular briefings for member company executives and public affairs officers, on issues of concern and ongoing projects at The Institute.2 4) Provide editorial material and services for member company communications on public issues and, in support of state activities and federal relations, undertake communications projects focused on specific events.2 5) Provide public relations services and material in support of events, projects and communications sponsored by tobacco family groupa.2 6) Conduct and promote specialized seminars for family members: Annual Tobacco College in Washington as well as a traveling version for use at sales force and other company and allied meetings; conduct a Iabor/management seminar for tobacco family unions as appropriate; identify opportunities for similar sessions aimed at other industry segments.2 7) Assess continued support of Tobacco Growers' Information Committee. 79 TI DN 0018064

===== CONFIDENTIAL ====== TIIIS DOCUMEN'f IS SUBJECT TO A C'OURT ORDER:IND I'IIIS i)OC'UMENT AND ITS CONTENTS Sll.\LL NOT 6E I:SEI). SIiOWN OR DISTRI6UTED EXCEPT AS PROVIDED IN TfIE COURT'S ORDER 3) As part of an aggressive member company relationa program, continue to conduct regular briefings for member company executives and public affairs officers, on issues of concern and ongoing projects at The Institute.2 4) Provide editorial material and services for member company communications on public issues and, in support of state activities and federal relations, undertake communications projects focused on specific events.2 5) Provide public relations services and material in support of events, projects and communications sponsored by tobacco family groupa.2 6) Conduct and promote specialized seminars for family members: Annual Tobacco College in Washington as well as a traveling version for use at sales force and other company and allied meetings; conduct a Iabor/management seminar for tobacco family unions as appropriate; identify opportunities for similar sessions aimed at other industry segments.2 7) Assess continued support of Tobacco Growers' Information Committee. 79 TI DN 0018064

====== CONFIDENTIAL ====== 1111S DOC'UMEN"I' IS SUOJECT'tO A COURf ORDER AND I IIIS DOCUMENT AND ITS CONTENTS SHALL NOT OF, USED. SHOWN OR DISTRIUl1TED EXCEPT AS PROVIDED IN TI1E COURT'S ORDER 8) Continue to improve relations with the National Association of Tobacco Distributors by identifying joint projects, supporting appropriate activities, and offering non-financial resources, including materials and opportunities for member attendance at annual Tobacco College. 9) Improve relations with other industry trade associations, such as Tobacco Merchants Asen., Retail Tobacco Dealers Assn., Tobacco Associates, Cigar Association and Smokeless'Tobacco Council, etc., by supporting appropriate activities, identifying issues of joint interest, and offering, as appropriate, non-financial resources. 10) Identify officers and activists in tobacco family organizations, willing to speak out on issues. Develop a Tobacco College program to train potential spokespersons.1 11) Accelerate development of relations with key wholesale and retail groups, including the National Assn. of Wholesale.Grocers, the National Grocers Assn., the Food Marketing Institute, the National Assn. of Wholesaler Distributors, the National Assn. of Convenience Stores, the General Merchandising Distributors Council, the Chain Drug Assn., and the 80 TI DN 0018065

====== CONFIDENTIAL ====== 1111S DOC'UMEN"I' IS SUOJECT'tO A COURf ORDER AND I IIIS DOCUMENT AND ITS CONTENTS SHALL NOT OF, USED. SHOWN OR DISTRIUl1TED EXCEPT AS PROVIDED IN TI1E COURT'S ORDER 8) Continue to improve relations with the National Association of Tobacco Distributors by identifying joint projects, supporting appropriate activities, and offering non-financial resources, including materials and opportunities for member attendance at annual Tobacco College. 9) Improve relations with other industry trade associations, such as Tobacco Merchants Asen., Retail Tobacco Dealers Assn., Tobacco Associates, Cigar Association and Smokeless'Tobacco Council, etc., by supporting appropriate activities, identifying issues of joint interest, and offering, as appropriate, non-financial resources. 10) Identify officers and activists in tobacco family organizations, willing to speak out on issues. Develop a Tobacco College program to train potential spokespersons.1 11) Accelerate development of relations with key wholesale and retail groups, including the National Assn. of Wholesale.Grocers, the National Grocers Assn., the Food Marketing Institute, the National Assn. of Wholesaler Distributors, the National Assn. of Convenience Stores, the General Merchandising Distributors Council, the Chain Drug Assn., and the 80 TI DN 0018065

==-=== CONFIDENTIAL ==-== TIIIS DOC'l:MENT IS SUBJECT TO.1 COURT ORDER AND TIfIS DOCUMENT AND ITS C'ONTENTS SFiALL NOT DE USED. SHOWN OR DISTRIBUTED EXCEPT AS PROVIDED IN THE COURT'S ORDER National Wholesale Drug Assn. Identify issues of joint interest and offer, as appropriate, non-financial resources as assistance. 12) Work with Federal Relations and State Activities Divisions to improve relations with key growers' organizations and other farm groups. Identify issues of joint interest and provide support as appropriate. 13) Reinstitute guest column on tobacco issues in trade publications; seek opportunities for additional columns and/or publications. 14) Support as appropriate the Tobacco Industry Labor Management Committee. 15) Assess feasibility of raising tobacco as an'issue in Southern Presidential primaries, as a means of ensuring objective treatment. Develop and implement Super Tuesday program as appropriate.j Strategy IIa Broaden relationships with non-tobacco groups with which we are now working; establish relationships with new groups. 81 TI DN 0018066

==-=== CONFIDENTIAL ==-== TIIIS DOC'l:MENT IS SUBJECT TO.1 COURT ORDER AND TIfIS DOCUMENT AND ITS C'ONTENTS SFiALL NOT DE USED. SHOWN OR DISTRIBUTED EXCEPT AS PROVIDED IN THE COURT'S ORDER National Wholesale Drug Assn. Identify issues of joint interest and offer, as appropriate, non-financial resources as assistance. 12) Work with Federal Relations and State Activities Divisions to improve relations with key growers' organizations and other farm groups. Identify issues of joint interest and provide support as appropriate. 13) Reinstitute guest column on tobacco issues in trade publications; seek opportunities for additional columns and/or publications. 14) Support as appropriate the Tobacco Industry Labor Management Committee. 15) Assess feasibility of raising tobacco as an'issue in Southern Presidential primaries, as a means of ensuring objective treatment. Develop and implement Super Tuesday program as appropriate.j Strategy IIa Broaden relationships with non-tobacco groups with which we are now working; establish relationships with new groups. 81 TI DN 0018066

====== CONFIDENTIAL ====== rtus DOCUMENT IS SUnJECT TO A COURT ORDER AND TIUS DOC'UMGNT AND ITS CONTENTS SI{ALL N(7i OL USED. Sf1OWN OR DISTRIBUTED EXCEPT AS PROVIDED IN il1E CUURT'S ORDER Tactics: 1) Continue to establish relations with non-tobacco labor unions, particularly those representing white collar workers and manufacturing unions outside the tobacco industry. Maintain and expand relations with AFL-CIO and state labor federations, and local labor federations in major cities.2 2) Establish and build on relations with minority councils within the AFL-CIO representing women, Hispanic and Black trade unionists, focusing on indoor air quality and excise tax issues that are of concern to other labor groups.1 3) Broaden membership of Tobacco Industry Labor Management Committee to include associations and unions representing supplier industries.1 4) Expand relations with publishers' groups. Broaden to include reporters' and broadcasters' groups, using advertising threats and other issues as points of discussion.2 5) Build on existing relationships with women's and minority groups on tax, advertising, workplace and discrimination issues.2 82 TI DN 0018067

====== CONFIDENTIAL ====== rtus DOCUMENT IS SUnJECT TO A COURT ORDER AND TIUS DOC'UMGNT AND ITS CONTENTS SI{ALL N(7i OL USED. Sf1OWN OR DISTRIBUTED EXCEPT AS PROVIDED IN il1E CUURT'S ORDER Tactics: 1) Continue to establish relations with non-tobacco labor unions, particularly those representing white collar workers and manufacturing unions outside the tobacco industry. Maintain and expand relations with AFL-CIO and state labor federations, and local labor federations in major cities.2 2) Establish and build on relations with minority councils within the AFL-CIO representing women, Hispanic and Black trade unionists, focusing on indoor air quality and excise tax issues that are of concern to other labor groups.1 3) Broaden membership of Tobacco Industry Labor Management Committee to include associations and unions representing supplier industries.1 4) Expand relations with publishers' groups. Broaden to include reporters' and broadcasters' groups, using advertising threats and other issues as points of discussion.2 5) Build on existing relationships with women's and minority groups on tax, advertising, workplace and discrimination issues.2 82 TI DN 0018067

-==-== CONFIDENTIAL =___= flll~ IkICI:SII:\ f LS.iI'611~:('T fc) .-\ ('lll'Rf llRl)C-. R.R ANI) Ilil< Iri)C'I:NLV f nN l) I I S(ll\'fFN TS SIIAI.L N/)1' 111: . 1;51':I). S 11U\1 V(/R 1)ISTRI[3l1TLD f:\CI:PT AS PROVIDED IN TIIE C'OURT'S ORDER 6) Establish objective relationships with Asian retailer communities in major cities, e.g., Korean and Chinese businessmen.1 7) Continue to establish objective relationships with groups representing the disabled on accidental fire (special needs), tax (regressivity) and workplace (equal access) issues. 8) Identify trade associations representing major suppliers to member companies; work with member company public affairs representatives to garner support on key issues. IV. Resources A. Staff 1) Public Relations: All staff 2) State Activities: Regional vice presidents, regional directors 3) Federal Relations: White, Leggett 4) Administration: Adams 83 TI DN 0018068

-==-== CONFIDENTIAL =___= flll~ IkICI:SII:\ f LS.iI'611~:('T fc) .-\ ('lll'Rf llRl)C-. R.R ANI) Ilil< Iri)C'I:NLV f nN l) I I S(ll\'fFN TS SIIAI.L N/)1' 111: . 1;51':I). S 11U\1 V(/R 1)ISTRI[3l1TLD f:\CI:PT AS PROVIDED IN TIIE C'OURT'S ORDER 6) Establish objective relationships with Asian retailer communities in major cities, e.g., Korean and Chinese businessmen.1 7) Continue to establish objective relationships with groups representing the disabled on accidental fire (special needs), tax (regressivity) and workplace (equal access) issues. 8) Identify trade associations representing major suppliers to member companies; work with member company public affairs representatives to garner support on key issues. IV. Resources A. Staff 1) Public Relations: All staff 2) State Activities: Regional vice presidents, regional directors 3) Federal Relations: White, Leggett 4) Administration: Adams 83 TI DN 0018068

====== CONFIDENTIAL =__ ==_ ftIIS D(KUMI:N'f IS SUUJECT YO A C'OURT ORDER :\NI) 1'IiIS DOCUMENT AND IfS CONTENTS SIIALL NOT UE USED. SIIOWN OR DISTRf6UTED EXCEPT AS PROVIDED IN TUE COURT'S ORDER THE TOBACCO INSTITUTE 1988 BUDGET COST CENTER NAME Public Affairs - General Coalitions No. 1307 1987 1987 1988 Account Page Budget Estimated Budget Number Description Ref. 000 ($000) 000 3901 Travel - General ................... .... $ 150 $ 120 $ 175 4701 Furniture, Fixtures & Equipment.... .... 3 0 0 5001 Office Supplies .................... .... - * 0 5101 Postage & Delivery ................. ,.... - * 0 5201 Reproduction, Printing & Drafting.. .... 90 90 60 5401 Other Office Expense ............... .... 2 2 2 55** Membership & Staff Training........ .... 5 8 10 6201 Advertising Space & Promotion...... .... 75 45 50 7301 Professional Fees .................. .... 350 703 379 7401 Purchased Admin. Services .......... .... 1 1 1 1501 Support of Tob./Other Organizations .... 565 480 963 TOTALS ........................ .... 1 241 1 449 1 640 Overall, a slight increase with inclusion of a "Super Tuesday" program and support to tobacco and related organizations. Retainers negotiated with most key consultants should mean significant reductions in professional fees. 85 TI DN 0018069

====== CONFIDENTIAL =__ ==_ ftIIS D(KUMI:N'f IS SUUJECT YO A C'OURT ORDER :\NI) 1'IiIS DOCUMENT AND IfS CONTENTS SIIALL NOT UE USED. SIIOWN OR DISTRf6UTED EXCEPT AS PROVIDED IN TUE COURT'S ORDER THE TOBACCO INSTITUTE 1988 BUDGET COST CENTER NAME Public Affairs - General Coalitions No. 1307 1987 1987 1988 Account Page Budget Estimated Budget Number Description Ref. 000 ($000) 000 3901 Travel - General ................... .... $ 150 $ 120 $ 175 4701 Furniture, Fixtures & Equipment.... .... 3 0 0 5001 Office Supplies .................... .... - * 0 5101 Postage & Delivery ................. ,.... - * 0 5201 Reproduction, Printing & Drafting.. .... 90 90 60 5401 Other Office Expense ............... .... 2 2 2 55** Membership & Staff Training........ .... 5 8 10 6201 Advertising Space & Promotion...... .... 75 45 50 7301 Professional Fees .................. .... 350 703 379 7401 Purchased Admin. Services .......... .... 1 1 1 1501 Support of Tob./Other Organizations .... 565 480 963 TOTALS ........................ .... 1 241 1 449 1 640 Overall, a slight increase with inclusion of a "Super Tuesday" program and support to tobacco and related organizations. Retainers negotiated with most key consultants should mean significant reductions in professional fees. 85 TI DN 0018069

====== CONFIDENTIAL = ===== TWS DOCUNIC;NT IS SUBJECT To A COURT ORDER AND flliti DOCUMENT AND ITS CONTENTS SUALL NOT BE USED. SHOWN OR DISTRIBUTED EXCEPT AS PROVIDED IN TIIE COIiRI'S ORDER THE TOBACCO INSTITUTE 1988 BUDGET COST CENTER Public Affairs - General Coalitions No. 1307 1987 1987 1988 Budget ( 000 Estimated ($000) Budget ($000) Account #5201 - Re roduction, Printin & ra t1nR Tobacco Heritage $ 50 $ 60 20 $ Production of materials for other orgs. 40 30 40 90 $ 90 $ 60 Account #6201 - Advertisin S ace & )mot on Miscellaneous placements with allied groups 75 $ 45 $ 50 75 $ 45 $ 50 Account #7301 - Professional Fees Labor consultants $100 $ - $ - Griffin* - 4 0 Regional labor consultants* (per SAD request) - 10 60 Forscey* - 75 60 Zoeller & Assoc. 70 (1306) PR Counsel 100 250 (see 7501) Minority 75 - - Mario Obledo* - 24 24 Gene Reyes* - 65 65 Circulation Experti - 55 - Other Allied Groups 75 150 100 Fleishman-Hillard* - - 50 Hill & Knowlton* - - 20 $350 $703 $379 86 TI DN 0018070

====== CONFIDENTIAL = ===== TWS DOCUNIC;NT IS SUBJECT To A COURT ORDER AND flliti DOCUMENT AND ITS CONTENTS SUALL NOT BE USED. SHOWN OR DISTRIBUTED EXCEPT AS PROVIDED IN TIIE COIiRI'S ORDER THE TOBACCO INSTITUTE 1988 BUDGET COST CENTER Public Affairs - General Coalitions No. 1307 1987 1987 1988 Budget ( 000 Estimated ($000) Budget ($000) Account #5201 - Re roduction, Printin & ra t1nR Tobacco Heritage $ 50 $ 60 20 $ Production of materials for other orgs. 40 30 40 90 $ 90 $ 60 Account #6201 - Advertisin S ace & )mot on Miscellaneous placements with allied groups 75 $ 45 $ 50 75 $ 45 $ 50 Account #7301 - Professional Fees Labor consultants $100 $ - $ - Griffin* - 4 0 Regional labor consultants* (per SAD request) - 10 60 Forscey* - 75 60 Zoeller & Assoc. 70 (1306) PR Counsel 100 250 (see 7501) Minority 75 - - Mario Obledo* - 24 24 Gene Reyes* - 65 65 Circulation Experti - 55 - Other Allied Groups 75 150 100 Fleishman-Hillard* - - 50 Hill & Knowlton* - - 20 $350 $703 $379 86 TI DN 0018070

I ====== CONFIDENTIAL ===-== TIIIS DOCUMENT IS SU131ECT TO A COURT ORDER AND'f111S DOCUMENT ANIJ ITS CONTENTS SHALL NOT BE USED. SHOWN OR DISTRIBUTED EXCEPT AS PROVIDED IN THE COURT'S ORDER 3T CENTER Public Affairs - General Coalitions Page 2 No. 1307 1987 Budget 1987 Estimated 1988 Budget 000 ($000) ($000) Account #7501 - Suppor_t o_f_ T_o_b_acco_and_ Zrhi ~rgani-zations National Tobacco Education Council $300 $ 0 $ 0 . National Tobacco Council* - 150 100 Tobacco Industry Labor Management Comm. 100 - - .PR support to Committee issues/projects (see 7301) (see 7301) Ogilvy & Mather* - - 180 Savarese & Associates* - - 100 Miscellaneous projects - 25 60 John Jarvis* - 75 90 Tobacco Growers Information Committee 48 48 48 Other tobacco "family" support 20 10 20 . NATD* - 50 50 American Agriculture Movement* - 40 (1305) Special Fund/"Super Tuesday"* - - 250 Minority groups* 50 50 30 Women's groups* 30 20 20 Veterans' groups* 17 12 15 $565 $480 $963 TOTALS ......................... 1.241 $1,449 $1,640 8T TI DN 0018071

I ====== CONFIDENTIAL ===-== TIIIS DOCUMENT IS SU131ECT TO A COURT ORDER AND'f111S DOCUMENT ANIJ ITS CONTENTS SHALL NOT BE USED. SHOWN OR DISTRIBUTED EXCEPT AS PROVIDED IN THE COURT'S ORDER 3T CENTER Public Affairs - General Coalitions Page 2 No. 1307 1987 Budget 1987 Estimated 1988 Budget 000 ($000) ($000) Account #7501 - Suppor_t o_f_ T_o_b_acco_and_ Zrhi ~rgani-zations National Tobacco Education Council $300 $ 0 $ 0 . National Tobacco Council* - 150 100 Tobacco Industry Labor Management Comm. 100 - - .PR support to Committee issues/projects (see 7301) (see 7301) Ogilvy & Mather* - - 180 Savarese & Associates* - - 100 Miscellaneous projects - 25 60 John Jarvis* - 75 90 Tobacco Growers Information Committee 48 48 48 Other tobacco "family" support 20 10 20 . NATD* - 50 50 American Agriculture Movement* - 40 (1305) Special Fund/"Super Tuesday"* - - 250 Minority groups* 50 50 30 Women's groups* 30 20 20 Veterans' groups* 17 12 15 $565 $480 $963 TOTALS ......................... 1.241 $1,449 $1,640 8T TI DN 0018071

====== CONFIDENTIAL TIIIS DOCUMENT IS SUBJECT TO A COURT ORDER AND Tf11S DOCUMENT AND ITS CONTENTS SHALL NOT BE USED. SIIOWN OR DISTRIBUTED EXCEPT AS PROVIDED IN TIIE COURT'S ORDER ADVERTISING ISSUE I. Background it is our objective plan to position the issue as an attack on the Constitution, rather than an attack on cigarette advertising. T.I. has been very successful in accomplishing that objective. Through painstaking preparation, the industry clearly got the better of the free speech case in four sets of Congressional hearings -- two before the Waxman subcommittee in 1986 and 1987, one each before the Luken subcommittee and the Ways and Means committee this year. Another major victory, stemming from a massive effort, came about when the American Bar Association rejected a resolution in favor of a prohibition of tobacco advertising. The creation and development of the Freedom to Advertise Coalition (FAC), which has proved itself to be a viable coalition of advertising and media trade associations, is also a notable accomplishment. While more work remains to be done, our coalition with the National Association of State Boards of Education is 88 T, DN 0018072

====== CONFIDENTIAL TIIIS DOCUMENT IS SUBJECT TO A COURT ORDER AND Tf11S DOCUMENT AND ITS CONTENTS SHALL NOT BE USED. SIIOWN OR DISTRIBUTED EXCEPT AS PROVIDED IN TIIE COURT'S ORDER ADVERTISING ISSUE I. Background it is our objective plan to position the issue as an attack on the Constitution, rather than an attack on cigarette advertising. T.I. has been very successful in accomplishing that objective. Through painstaking preparation, the industry clearly got the better of the free speech case in four sets of Congressional hearings -- two before the Waxman subcommittee in 1986 and 1987, one each before the Luken subcommittee and the Ways and Means committee this year. Another major victory, stemming from a massive effort, came about when the American Bar Association rejected a resolution in favor of a prohibition of tobacco advertising. The creation and development of the Freedom to Advertise Coalition (FAC), which has proved itself to be a viable coalition of advertising and media trade associations, is also a notable accomplishment. While more work remains to be done, our coalition with the National Association of State Boards of Education is 88 T, DN 0018072

==-=== CO N F I D E NT IAL ====== Tf11S DOCl1MENT IS SUIl1EC'T TO A COURT ORDER AND Tk11S DOCUMENT AND ITS C'ONTENTS SIIALL NOT BE USED. SUOW'N OR DISTRIBUTED EXCEPT AS PROVIDED IN TIIE COURT'S ORDER developing into a significant community presence in several key Congressional districts. II. Aasu.ptions o In order to accomplish its overall goal of eliminating cigarette smoking in the United States by the year 2,000, the anti-smoking coalition will continue to strike at the industry's marketing practices. o Currently, the coalition relies on two strategies to accomplish this goal -- one is the direct approach of banning cigarette advertising and promotion; the other is the indirect approach of prohibiting tax deductions for cigarette advertising and promotional expenses. o Since both approaches raise serious First Amendment concerns to a broad spectrum of American society, the anti-smoking movement may abandon its frontal attack. o Contrary to expectations, the AMA/Synar proposal has worked in our favor. It has rallied many respected groups, such as ACLU, and powerful interests, such as newspaper publishers, to our side. When our opponents discover their mistake, they will replace an ad ban with less drastic bills 89 TI DN 0018073

==-=== CO N F I D E NT IAL ====== Tf11S DOCl1MENT IS SUIl1EC'T TO A COURT ORDER AND Tk11S DOCUMENT AND ITS C'ONTENTS SIIALL NOT BE USED. SUOW'N OR DISTRIBUTED EXCEPT AS PROVIDED IN TIIE COURT'S ORDER developing into a significant community presence in several key Congressional districts. II. Aasu.ptions o In order to accomplish its overall goal of eliminating cigarette smoking in the United States by the year 2,000, the anti-smoking coalition will continue to strike at the industry's marketing practices. o Currently, the coalition relies on two strategies to accomplish this goal -- one is the direct approach of banning cigarette advertising and promotion; the other is the indirect approach of prohibiting tax deductions for cigarette advertising and promotional expenses. o Since both approaches raise serious First Amendment concerns to a broad spectrum of American society, the anti-smoking movement may abandon its frontal attack. o Contrary to expectations, the AMA/Synar proposal has worked in our favor. It has rallied many respected groups, such as ACLU, and powerful interests, such as newspaper publishers, to our side. When our opponents discover their mistake, they will replace an ad ban with less drastic bills 89 TI DN 0018073

CONFIDENTIAL =~==-_ I'lI1S DOCUMENT IS SUUJECT TO A COURT ORDI:R AND TIi1S IXKIJA4E,NT AND ITS CONTENTS SILILL'.VOT 6E USED. SHOWN OR DISTRIBUTED EXCEPT AS PROVIDED IN TI1E COURT'S ORDER to control the content of advertising or to provide for counter-advertising. o In turn, less drastic alternatives may result in the defection of some, or all, of our present allies. For example, ad agencies and media suffer no economic loss from text-only advertising and may even gain from counter-advertising funded by advertisers or the government. The ACLU might not regard earmarking excise taxes for health promotion as violating the First Amendment. o Promotion is becoming a larger factor in the industry's marketing mix. In 1980, the ratio was 70/30; four years it was nearly 50/50. This trend'could weaken our links with advertising and print media trade associations, requiring us to reach out to form coalitions with groups in the promotional segment. The free speech aspect of the industry's promotional practice will call for research and development. o The legal profession, i.e. the American Bar Association, has rejected the view that an advertising ban is constitutional. But legal scholars will continue to debate the implications of the Posadas decision. o However, other industries, trade associations and their labor organizations (e.g. endangered industries such as 90 TI DN 0018074

CONFIDENTIAL =~==-_ I'lI1S DOCUMENT IS SUUJECT TO A COURT ORDI:R AND TIi1S IXKIJA4E,NT AND ITS CONTENTS SILILL'.VOT 6E USED. SHOWN OR DISTRIBUTED EXCEPT AS PROVIDED IN TI1E COURT'S ORDER to control the content of advertising or to provide for counter-advertising. o In turn, less drastic alternatives may result in the defection of some, or all, of our present allies. For example, ad agencies and media suffer no economic loss from text-only advertising and may even gain from counter-advertising funded by advertisers or the government. The ACLU might not regard earmarking excise taxes for health promotion as violating the First Amendment. o Promotion is becoming a larger factor in the industry's marketing mix. In 1980, the ratio was 70/30; four years it was nearly 50/50. This trend'could weaken our links with advertising and print media trade associations, requiring us to reach out to form coalitions with groups in the promotional segment. The free speech aspect of the industry's promotional practice will call for research and development. o The legal profession, i.e. the American Bar Association, has rejected the view that an advertising ban is constitutional. But legal scholars will continue to debate the implications of the Posadas decision. o However, other industries, trade associations and their labor organizations (e.g. endangered industries such as 90 TI DN 0018074

_=__= CONFIDENTIAL ====== TIUS DOCC;dCNT IS SUBm.Cr TO .~ l'DCRr ORDER :%SD ruIS DOC'UMLNT AND ITS CON'f[N"rS Sf1ALL NOT BE USED. SHOWN OR DISTRIBUTED EXCEPT AS PROVIDED IN TIIE COURI"S ORDER alcoholic beverages, all terrain vehicles and small arms manufacturers) may be considered as potential allies should the issue shift focus. o The anti-smoking network will act as "watchdogs" of advertising and promotional activity and denounce cigarette industry "code violations" and urge that the Federal Trade Commission be given rulemaking authority to regulate "unfair" cigarette advertising. o On the state and local level, 'anti-amoking groups will continue to push for proposals to restrict advertising, promotion and sale of tobacco products, including: sampling bans; limitations on billboard and transit ads; restrictions on vending machine sales; higher minimum age laws for sale/possession of tobacco products; subjecting tobacco advertising to sales taxes; and denying tobacco advertising as a business expense. o in particular, anti-smoking activists will conduct "sting" operations in which a teenager goes on a shopping trip and demonstrates the ease of buying cigarettes and/or alcoholic beverages. These media events will be used to launch and support advertising restriction measures. o To get state and local jurisdiction over tobacco, the American Medical Association and the American Iung 91 . TI DN 0018075

_=__= CONFIDENTIAL ====== TIUS DOCC;dCNT IS SUBm.Cr TO .~ l'DCRr ORDER :%SD ruIS DOC'UMLNT AND ITS CON'f[N"rS Sf1ALL NOT BE USED. SHOWN OR DISTRIBUTED EXCEPT AS PROVIDED IN TIIE COURI"S ORDER alcoholic beverages, all terrain vehicles and small arms manufacturers) may be considered as potential allies should the issue shift focus. o The anti-smoking network will act as "watchdogs" of advertising and promotional activity and denounce cigarette industry "code violations" and urge that the Federal Trade Commission be given rulemaking authority to regulate "unfair" cigarette advertising. o On the state and local level, 'anti-amoking groups will continue to push for proposals to restrict advertising, promotion and sale of tobacco products, including: sampling bans; limitations on billboard and transit ads; restrictions on vending machine sales; higher minimum age laws for sale/possession of tobacco products; subjecting tobacco advertising to sales taxes; and denying tobacco advertising as a business expense. o in particular, anti-smoking activists will conduct "sting" operations in which a teenager goes on a shopping trip and demonstrates the ease of buying cigarettes and/or alcoholic beverages. These media events will be used to launch and support advertising restriction measures. o To get state and local jurisdiction over tobacco, the American Medical Association and the American Iung 91 . TI DN 0018075

====== CONFIDENTIAL TIIIS D()Cl;,\II:,4T Iti tiU13JF,('T f() A C'OURT ORDER .3ND i111S DOC'fiMENI' AND 1"3'S CUNT[,YfS Sf1ALL NOT 13E IISED, SIIOI~N DR DISTRIOUT(:D EXCEpT AS I'ROVIDED IN TIIE COURT'S ORDER Association will continue efforts to repeal the federal pre-emption of state laws regulating tobacco advertising and promotional activities. The AMA/Synar proposal would remove the federal pre-emption clause. III. Objective To deaonstrate to elected officials, on the federal, state and local levels, to opinion leaders, to the media and to the general public that:1 (a) 'ihe First Amendment of the United States Constitution protects the freedom to truthfully advertise any legal product, including cigarettes;1. (b) Cigarette advertising is merely the first victim on a slippery slope that includes many other vulnerable products;1 (c) Young people are not targeted by or especially vulnerable to cigarette advertising. In fact, our member co.panies are responsible corporate citizens, truthfully and fairly marketing their products to adult smokers, not youth.1 92 TI DN 0018076

====== CONFIDENTIAL TIIIS D()Cl;,\II:,4T Iti tiU13JF,('T f() A C'OURT ORDER .3ND i111S DOC'fiMENI' AND 1"3'S CUNT[,YfS Sf1ALL NOT 13E IISED, SIIOI~N DR DISTRIOUT(:D EXCEpT AS I'ROVIDED IN TIIE COURT'S ORDER Association will continue efforts to repeal the federal pre-emption of state laws regulating tobacco advertising and promotional activities. The AMA/Synar proposal would remove the federal pre-emption clause. III. Objective To deaonstrate to elected officials, on the federal, state and local levels, to opinion leaders, to the media and to the general public that:1 (a) 'ihe First Amendment of the United States Constitution protects the freedom to truthfully advertise any legal product, including cigarettes;1. (b) Cigarette advertising is merely the first victim on a slippery slope that includes many other vulnerable products;1 (c) Young people are not targeted by or especially vulnerable to cigarette advertising. In fact, our member co.panies are responsible corporate citizens, truthfully and fairly marketing their products to adult smokers, not youth.1 92 TI DN 0018076

CONFIDENTIAL ===-=_ IlI1S UOC'liNl:~T IS tiU61[CT TO A COURT ORDER AND TIIIS UOCUMGNT ~NU ITS C'ONT[:NTS SfIALL NOT BE USED. SIIOWN OR DISTRI6UTED EXCEPT AS f'ROVIDED IN TIiE COURT'S ORDER III. Strategies, Goals and Tactics Strategy I: Increase official, media and public focus on the fact that the right to advertise is guaranteed by the U.S. Constitution, and that ad bans, copy restrictions and counter-advertising proposals must pass the Central Hudson test; thus, position the issue as a defense of a constitutional process (i.e. commercial speech) rather than a specific product. Goals; 1) To encourage editorial visits, media tours, op-ed articles, video playdates and legislative visits in "hometowns" of 20 key Members of Congress.1 2) To organize a First Amendment cadre of ad agencies, ad clubs, ad media in each of these 20 key locations.1 3) To repackage and update existing materials under the Freedom to Advertise aegis by the end of this year, with all new studies, surveys and publications completed in the first half of next year.1 93 T'Y DN 0018077

CONFIDENTIAL ===-=_ IlI1S UOC'liNl:~T IS tiU61[CT TO A COURT ORDER AND TIIIS UOCUMGNT ~NU ITS C'ONT[:NTS SfIALL NOT BE USED. SIIOWN OR DISTRI6UTED EXCEPT AS f'ROVIDED IN TIiE COURT'S ORDER III. Strategies, Goals and Tactics Strategy I: Increase official, media and public focus on the fact that the right to advertise is guaranteed by the U.S. Constitution, and that ad bans, copy restrictions and counter-advertising proposals must pass the Central Hudson test; thus, position the issue as a defense of a constitutional process (i.e. commercial speech) rather than a specific product. Goals; 1) To encourage editorial visits, media tours, op-ed articles, video playdates and legislative visits in "hometowns" of 20 key Members of Congress.1 2) To organize a First Amendment cadre of ad agencies, ad clubs, ad media in each of these 20 key locations.1 3) To repackage and update existing materials under the Freedom to Advertise aegis by the end of this year, with all new studies, surveys and publications completed in the first half of next year.1 93 T'Y DN 0018077

===== CONFIDENTIAL ====== THIS DOCUMENT IS SUBJECT TO A COURT ORDER AND Tf11S DOCUMENT AND ITS CONTENTS SHALL NOT I)E US[D. SIIOWN OR DISTRIBUTED EXCEPT AS PROVIDED IN TIIE COURT'S ORDER Tactics: 1) Expand the body of credible professional literature and journalism rebutting the most common charges leveled at the industry's advertising and promotion, which findings will also satisfy the Central Hudson criteria.1 2) Through third parties, such as Freedom to Advertise Coalition and tobacco state members, make widespread use of "Tobacco Ad Bans: The Larger Issues" as well as the Philip Morris conceptual video. Target audiences include Members of Congress and their staff, ad clubs and other constituent groups of coalition members, "family" letter-writing gatherings, and media in connection with editorial board visits by ad and media asqociation teams.1 3) Continue.to make widespread distribution of the 16-country study and the 5-nation study -- which demonstrate that ad bans do not work -- to ad clubs and constituent groups of our coalition members. Repackage in shorter version along with excerpts from WHO study and Council of Economic Advisors report. "This tactic shows that advertising restrictions do not advance the goverment interest and hence do not pass the test of the Central Hudson decision.'" 94 TI DN 0018078

===== CONFIDENTIAL ====== THIS DOCUMENT IS SUBJECT TO A COURT ORDER AND Tf11S DOCUMENT AND ITS CONTENTS SHALL NOT I)E US[D. SIIOWN OR DISTRIBUTED EXCEPT AS PROVIDED IN TIIE COURT'S ORDER Tactics: 1) Expand the body of credible professional literature and journalism rebutting the most common charges leveled at the industry's advertising and promotion, which findings will also satisfy the Central Hudson criteria.1 2) Through third parties, such as Freedom to Advertise Coalition and tobacco state members, make widespread use of "Tobacco Ad Bans: The Larger Issues" as well as the Philip Morris conceptual video. Target audiences include Members of Congress and their staff, ad clubs and other constituent groups of coalition members, "family" letter-writing gatherings, and media in connection with editorial board visits by ad and media asqociation teams.1 3) Continue.to make widespread distribution of the 16-country study and the 5-nation study -- which demonstrate that ad bans do not work -- to ad clubs and constituent groups of our coalition members. Repackage in shorter version along with excerpts from WHO study and Council of Economic Advisors report. "This tactic shows that advertising restrictions do not advance the goverment interest and hence do not pass the test of the Central Hudson decision.'" 94 TI DN 0018078

====== CONFIDENTIAL ====== I'IIIS D[)CI:MI:NT IS SUll)ECP T() A COIiRT ORDER .\Nl) iII1S D(x'l1.Mf:NT AND ITS CONTENTS SIInLL NOT [lE USED, SHOWN OR DIS'fR1UUTED EXCEPT AS PROVIDED IN THE C)I1RT'S l)RDER 4) Comb the literature for articles and polls showing that advertising does not cause young people to smoke. Seek professional journal publication, then distribute reprints to key legislators, media, and business schools in their districts. "This tactic shows that advertising restrictions do not advance the goverment interest and hence do not pass the test of the Central Hudson decision."i 5) Commission a comprehensive.review of the economic, marketing and business literature to demonstrate that advertising of a mature product, like cigarettes, does not increase aggregate demand. Get it published in an opinion journal. "This tactic shows that advertising restrictions do not advance the goverment interest and hence do not pass the test of the Central Hudson decision." 6) Canvass the world literature for relevant articles. Monitor papers given at the World Conference on Smoking and Health in Japan. Encourage release of the Literature survey at a press conference of an international advertising group. "This tactic shows that advertising restrictions do not advance the goverment interest and hence do not pass the test of the Central Hudson decision." 95 TI DN 0018079

====== CONFIDENTIAL ====== I'IIIS D[)CI:MI:NT IS SUll)ECP T() A COIiRT ORDER .\Nl) iII1S D(x'l1.Mf:NT AND ITS CONTENTS SIInLL NOT [lE USED, SHOWN OR DIS'fR1UUTED EXCEPT AS PROVIDED IN THE C)I1RT'S l)RDER 4) Comb the literature for articles and polls showing that advertising does not cause young people to smoke. Seek professional journal publication, then distribute reprints to key legislators, media, and business schools in their districts. "This tactic shows that advertising restrictions do not advance the goverment interest and hence do not pass the test of the Central Hudson decision."i 5) Commission a comprehensive.review of the economic, marketing and business literature to demonstrate that advertising of a mature product, like cigarettes, does not increase aggregate demand. Get it published in an opinion journal. "This tactic shows that advertising restrictions do not advance the goverment interest and hence do not pass the test of the Central Hudson decision." 6) Canvass the world literature for relevant articles. Monitor papers given at the World Conference on Smoking and Health in Japan. Encourage release of the Literature survey at a press conference of an international advertising group. "This tactic shows that advertising restrictions do not advance the goverment interest and hence do not pass the test of the Central Hudson decision." 95 TI DN 0018079

CONFIDENTIAL =_____ fI IIS DOCUMENT IS SUDJECT TO A COURT ORDER AND THIS D()C UMENT AND TS CONTENTS SHALI. NOT BE USED. SNOWN OR DISTRIBUTED EXCEPT AS PROVIDED IN TI{E COURT'S ORDF.R 7) Support the Freedom to Adverti.se Coalition (FAC) as appropriate.1 8) Enlist the direct support of the Communications Committee in expanding our coalition building to include supermarkets, convenience stores, military canteens and commissaries, as well as tobacco wholesalers, retailers and yending machine companies.2 9) Measure the economic impact on these groups of legislation restricting tobacco advertising and promotion; disseminate'the data to these allied groups in order to develop a constituency opposed to such legislation. Seek state federation policy statement on job impact, if appropriate. (See #11 below)• Conduct briefings as appropriate.2 10) Expand relationships with organizations affected by promotional bans. Specifically encourage the Committee for Affordable Sports and Entertainment (CASE) and its membership to become active and express its opposition to elective officials and the media, through credible spokespersons.2 11) Assess the feasibility of developing a coalition of labor unions whose members would be adversely affected by advertising and promotional legislation, such as sign 96 TI DN 0018080

CONFIDENTIAL =_____ fI IIS DOCUMENT IS SUDJECT TO A COURT ORDER AND THIS D()C UMENT AND TS CONTENTS SHALI. NOT BE USED. SNOWN OR DISTRIBUTED EXCEPT AS PROVIDED IN TI{E COURT'S ORDF.R 7) Support the Freedom to Adverti.se Coalition (FAC) as appropriate.1 8) Enlist the direct support of the Communications Committee in expanding our coalition building to include supermarkets, convenience stores, military canteens and commissaries, as well as tobacco wholesalers, retailers and yending machine companies.2 9) Measure the economic impact on these groups of legislation restricting tobacco advertising and promotion; disseminate'the data to these allied groups in order to develop a constituency opposed to such legislation. Seek state federation policy statement on job impact, if appropriate. (See #11 below)• Conduct briefings as appropriate.2 10) Expand relationships with organizations affected by promotional bans. Specifically encourage the Committee for Affordable Sports and Entertainment (CASE) and its membership to become active and express its opposition to elective officials and the media, through credible spokespersons.2 11) Assess the feasibility of developing a coalition of labor unions whose members would be adversely affected by advertising and promotional legislation, such as sign 96 TI DN 0018080

====== CONFIDENTIAL = ===== f1IIS DOCUMENT IS SUDJGCT TO A COURT ORDI:R AND THIS DOCUMENT AND ITS CON TENTS SlIALL NOT DE US[D. SHOWN OR DI.I'fRIDUTED EXCEPT AS VROVIDED IN TUF. COIiRT'S ORDER painters; printers; newspaper reporters and workers; machinists, musicians and other trades involved in auto racing and other sports promotion. Utilize the Massachusetts State Federation (AFL-CIO) position statement, if enacted in October, in coalition development. 12) Encourage active support of groups and individuals benefiting from corporate sponsorship of the arts as well as those in other industries who sponsor such activities. Identify credible spokespersons for media and legislative tours, as appropriate.2 13) Use public opinion research and economic studies to show public approval of industry sports sponsorship and impact of its prohibition.2 14) Identify a network of groups that oppose ad bans ideologically or are affected economically. Assess the impact, brief them and seek, as a minimum level of commitment, use of their corporate names as part of a broad-based coalition Like FAC or passage of anti-ad ban resolutions. These resolutions will be promoted to legislatures and media. 97 TI DN 0018081

====== CONFIDENTIAL = ===== f1IIS DOCUMENT IS SUDJGCT TO A COURT ORDI:R AND THIS DOCUMENT AND ITS CON TENTS SlIALL NOT DE US[D. SHOWN OR DI.I'fRIDUTED EXCEPT AS VROVIDED IN TUF. COIiRT'S ORDER painters; printers; newspaper reporters and workers; machinists, musicians and other trades involved in auto racing and other sports promotion. Utilize the Massachusetts State Federation (AFL-CIO) position statement, if enacted in October, in coalition development. 12) Encourage active support of groups and individuals benefiting from corporate sponsorship of the arts as well as those in other industries who sponsor such activities. Identify credible spokespersons for media and legislative tours, as appropriate.2 13) Use public opinion research and economic studies to show public approval of industry sports sponsorship and impact of its prohibition.2 14) Identify a network of groups that oppose ad bans ideologically or are affected economically. Assess the impact, brief them and seek, as a minimum level of commitment, use of their corporate names as part of a broad-based coalition Like FAC or passage of anti-ad ban resolutions. These resolutions will be promoted to legislatures and media. 97 TI DN 0018081

====== CONFIDENTIAL =_____ TIIIS D(K'I:ML'.JT IS SIaL[CT TO A COURT ORDER ANI) I711S DOCUMENT AND ITS CONTF.NTS Sk1AL1. M1OT I3G USED. SIIOWN OR UISTRIUU7ED EXCEPT AS PROVIDED IN THE C'OIiRT'S ORDER Strategy II: Demonstrate that the proposed restriction of tobacco advertising and promotion sets a dangerous precedent to other industries and their trade groups -~ the "Slippery Slope Strategy."1 Goals: 1) To form a new coalition by June 1, 1988 of manufacturers most threatened by enactment of Synar and Stark. Or to broaden the base of the Freedom to Advertise Coalition to include them.1 2) To develop by June 1, 1988 a complete set of documentation consisting of an issue paper, a legislative analysis, a review of scientific literature and a public opinion poll. It would "se11" others on joining the coalition.t Tactics: 1) Encourage third parties, such as advertising, ad media and libertarian groups to adopt data, studies and literature we have developed. Also support their public relations and publicity efforts, as necessary.1 TI DN 0018082 98

====== CONFIDENTIAL =_____ TIIIS D(K'I:ML'.JT IS SIaL[CT TO A COURT ORDER ANI) I711S DOCUMENT AND ITS CONTF.NTS Sk1AL1. M1OT I3G USED. SIIOWN OR UISTRIUU7ED EXCEPT AS PROVIDED IN THE C'OIiRT'S ORDER Strategy II: Demonstrate that the proposed restriction of tobacco advertising and promotion sets a dangerous precedent to other industries and their trade groups -~ the "Slippery Slope Strategy."1 Goals: 1) To form a new coalition by June 1, 1988 of manufacturers most threatened by enactment of Synar and Stark. Or to broaden the base of the Freedom to Advertise Coalition to include them.1 2) To develop by June 1, 1988 a complete set of documentation consisting of an issue paper, a legislative analysis, a review of scientific literature and a public opinion poll. It would "se11" others on joining the coalition.t Tactics: 1) Encourage third parties, such as advertising, ad media and libertarian groups to adopt data, studies and literature we have developed. Also support their public relations and publicity efforts, as necessary.1 TI DN 0018082 98

====== CONFIDENTIAL =_____ TIIIS DOCUMENT IS SUUJECT TO A COURT ORDER AND I IIIS DOCUMENT AND ITS CONTENTS SIiALL NOT BE USED. SIIOH''N OR DISTRIBUTED EXCEPT AS I'ROV IDED IN TIIE COURT'S ORDER 2) Develop short review papers (based on our broadcast ban experience) for use as op-eds or trade articles reminding media and legislators that other groups -- advertising, media, distributors -- suffer from advertising and promotion bans, not the tobacco industry.1 3) Contract for a paper by a former FTC commissioner or top commission official (or former Justice Dept. official) pointing out that an ad ban is an anti-competitive proposal which limits consumer information and freeze market share at current levels.1 4) Commission a review article by some scientific think tank such as the Franklin Institute that would demonstrate that (a) tobacco is not unique as an alleged health hazard and (b) list the great numbers of citations in the literature of other generic products and practices that could easily share the same status. Seek publication in Science or similar professional journal.1 5) Establish the ground work for a coalition of obvious "vulnerables" to ad bans or tax-code censorship, including manufacturers, suppliers and distributors. They would be activated to fight off 99 TI DN 0018083

====== CONFIDENTIAL =_____ TIIIS DOCUMENT IS SUUJECT TO A COURT ORDER AND I IIIS DOCUMENT AND ITS CONTENTS SIiALL NOT BE USED. SIIOH''N OR DISTRIBUTED EXCEPT AS I'ROV IDED IN TIIE COURT'S ORDER 2) Develop short review papers (based on our broadcast ban experience) for use as op-eds or trade articles reminding media and legislators that other groups -- advertising, media, distributors -- suffer from advertising and promotion bans, not the tobacco industry.1 3) Contract for a paper by a former FTC commissioner or top commission official (or former Justice Dept. official) pointing out that an ad ban is an anti-competitive proposal which limits consumer information and freeze market share at current levels.1 4) Commission a review article by some scientific think tank such as the Franklin Institute that would demonstrate that (a) tobacco is not unique as an alleged health hazard and (b) list the great numbers of citations in the literature of other generic products and practices that could easily share the same status. Seek publication in Science or similar professional journal.1 5) Establish the ground work for a coalition of obvious "vulnerables" to ad bans or tax-code censorship, including manufacturers, suppliers and distributors. They would be activated to fight off 99 TI DN 0018083

====== CONFIDENTIAL =_____ TIIIS DOCII.%IENT IS SU6,flCf 10,, CUl'.RI . ORDER A.D I ,ll> DOCUMENT AND I fS CONTENTS SIIALL N()r I71: US[U. IIK)" ()R INSTRIUUTCD ETCGI'T AS PROV1DI:D IN THE CUl1RT'S ORDER "less drastic" text-only or counteradvertising alternatives.! 6) Develop background briefing papers for use with each of these potential coalition groups.1 7) Assist coalition groups in carrying out legislative mobilizations of their memberships to register timely and effective response to Legislators.1 8) Develop stronger coalitions with suppliers of the industries that directly benefit from the tobacco Industry's traditional advertising and promotional activities.1 9) Seek broad-based corporate cooperation with other threatened industries in funding symposia or seminars on The First Amendment, advertising and consumer choice. Sponsorship might include the Freedom to Advertise Coalition, the Freedom of Expression Foundation and a consumer group. Topics would cover the effects of ad restrictions on competition, free access to consumer information, freedom of choice, etc.t TI DN 0018084 100

====== CONFIDENTIAL =_____ TIIIS DOCII.%IENT IS SU6,flCf 10,, CUl'.RI . ORDER A.D I ,ll> DOCUMENT AND I fS CONTENTS SIIALL N()r I71: US[U. IIK)" ()R INSTRIUUTCD ETCGI'T AS PROV1DI:D IN THE CUl1RT'S ORDER "less drastic" text-only or counteradvertising alternatives.! 6) Develop background briefing papers for use with each of these potential coalition groups.1 7) Assist coalition groups in carrying out legislative mobilizations of their memberships to register timely and effective response to Legislators.1 8) Develop stronger coalitions with suppliers of the industries that directly benefit from the tobacco Industry's traditional advertising and promotional activities.1 9) Seek broad-based corporate cooperation with other threatened industries in funding symposia or seminars on The First Amendment, advertising and consumer choice. Sponsorship might include the Freedom to Advertise Coalition, the Freedom of Expression Foundation and a consumer group. Topics would cover the effects of ad restrictions on competition, free access to consumer information, freedom of choice, etc.t TI DN 0018084 100

nlls IxUcu.Su;Nr iC~~FIDE,~TIAL D rll1s =` IxX'UNENT.AND ITS CONTENTS.SUqLL NOT QE USED. $IIOWN OR DISTRIQUTED EXCLPT AS ('ROVIDED 1N THE C()URT'C ORDER 10) Develop an award for presentation at these events for outstanding defense of commercial speech. 11) Encourage the U.S. Constitution Bicentennial Commission, First Amendment Congress, American Bar Association, U.S. Chamber, Washington Legal Foundation to cover commercial speech in their activities, by offering support grants. 12) Working with Media Relations staff, explore similar opportunities with the Reporters Committee for Freedom of the'Press, Sigma Delta Chi and professional trade associations of minority news media, e.g., the Association of Black Journalists and the National Association of Hispanic Journalists. Resolutions should be solicited from these groups. Strategy III: Increase the level of awareness among 1oca1, state and federal officials and opinion leaders that smoking is only one of a constellation of adult practices; that social and family factors are the primary factors shaping the behavior of young people; and that member companies act responsibly in this regard.2 TI DN 0018085 101

nlls IxUcu.Su;Nr iC~~FIDE,~TIAL D rll1s =` IxX'UNENT.AND ITS CONTENTS.SUqLL NOT QE USED. $IIOWN OR DISTRIQUTED EXCLPT AS ('ROVIDED 1N THE C()URT'C ORDER 10) Develop an award for presentation at these events for outstanding defense of commercial speech. 11) Encourage the U.S. Constitution Bicentennial Commission, First Amendment Congress, American Bar Association, U.S. Chamber, Washington Legal Foundation to cover commercial speech in their activities, by offering support grants. 12) Working with Media Relations staff, explore similar opportunities with the Reporters Committee for Freedom of the'Press, Sigma Delta Chi and professional trade associations of minority news media, e.g., the Association of Black Journalists and the National Association of Hispanic Journalists. Resolutions should be solicited from these groups. Strategy III: Increase the level of awareness among 1oca1, state and federal officials and opinion leaders that smoking is only one of a constellation of adult practices; that social and family factors are the primary factors shaping the behavior of young people; and that member companies act responsibly in this regard.2 TI DN 0018085 101

CONFIDENTIAL TtiIS DOC'U~NENT IS SI713JECT TO A COIiRT ORDER AND Tt1lS DOCUNENT.\ND ITS CONTENTS.Sit.tLL NOT 13E USEp. SttOWN OR nISTRI~UTED EXCEPT AS PROVIDED IN TIIE COURT'S ORDI,R Goals: 1) To support in 1988 a total of 20 community-based "parent-child" communications programs, at the rate of 5 per quarter, and help publicize them locally and in Washington, D.C.2 2) To gain professional and legislative recognition for the industry's effort to shield youth from cigarette advertising.2 Tactics: 1) Involve local, state and federal elected officials in the opening and operation of each of these community programs. After the first year of operation, support a Washington D.C. conference of key participants at which they will meet their Member of Congress.1 2) Reaffirm the industry's position against youth smoking by commissioning a case history study of its experience in dealing with the problem. With NASBE, publicize the study through a one-day seminar and through appropriate professional publication.2 3) Assist educational consultant and associated groups to distribute the parent guidebooks "Helping Youth 102 TI DN 0018086

CONFIDENTIAL TtiIS DOC'U~NENT IS SI713JECT TO A COIiRT ORDER AND Tt1lS DOCUNENT.\ND ITS CONTENTS.Sit.tLL NOT 13E USEp. SttOWN OR nISTRI~UTED EXCEPT AS PROVIDED IN TIIE COURT'S ORDI,R Goals: 1) To support in 1988 a total of 20 community-based "parent-child" communications programs, at the rate of 5 per quarter, and help publicize them locally and in Washington, D.C.2 2) To gain professional and legislative recognition for the industry's effort to shield youth from cigarette advertising.2 Tactics: 1) Involve local, state and federal elected officials in the opening and operation of each of these community programs. After the first year of operation, support a Washington D.C. conference of key participants at which they will meet their Member of Congress.1 2) Reaffirm the industry's position against youth smoking by commissioning a case history study of its experience in dealing with the problem. With NASBE, publicize the study through a one-day seminar and through appropriate professional publication.2 3) Assist educational consultant and associated groups to distribute the parent guidebooks "Helping Youth 102 TI DN 0018086

====== CONFIDENTIAL =_= __ I'IiIS DOCUMENT IS SUDJECT T() A COURT ORDER ANI) TIIIS DOCUMENT AND ITS CONTENTS SUALL NOT IlE USED. SUOWN OR DISTRIDUTED EXCEPT AS PROVIDED IN TIIE. COURT'S ORDER Decide" (HYD) and "Helping Youth Say No" (HYS) and related materials developed with National Association of State Boards of Education.i 4) Prepare a video tape presentation for staff and consultants to use in visits with elected officials, editorial boards and educational leaders that will demonstrate the good faith efforts of cigarette makers regarding youth.1 5) Support, as appropriate, National Automatic Merchandising Association (NAMA) point of purchase awareness campaign; seek and support similar opportunities with other vending trade groups, retailers and other industries.t 6) Join forces with others to create a multi-industry, multi-disciplinary study group on how beat to discourage youth from early adoption of adult practices, of which smoking is just one.1 IV. Resources A. Staff 1) Management: Panzer 103 Fg DN 0018087

====== CONFIDENTIAL =_= __ I'IiIS DOCUMENT IS SUDJECT T() A COURT ORDER ANI) TIIIS DOCUMENT AND ITS CONTENTS SUALL NOT IlE USED. SUOWN OR DISTRIDUTED EXCEPT AS PROVIDED IN TIIE. COURT'S ORDER Decide" (HYD) and "Helping Youth Say No" (HYS) and related materials developed with National Association of State Boards of Education.i 4) Prepare a video tape presentation for staff and consultants to use in visits with elected officials, editorial boards and educational leaders that will demonstrate the good faith efforts of cigarette makers regarding youth.1 5) Support, as appropriate, National Automatic Merchandising Association (NAMA) point of purchase awareness campaign; seek and support similar opportunities with other vending trade groups, retailers and other industries.t 6) Join forces with others to create a multi-industry, multi-disciplinary study group on how beat to discourage youth from early adoption of adult practices, of which smoking is just one.1 IV. Resources A. Staff 1) Management: Panzer 103 Fg DN 0018087

__-__= CONFIDENTIAL =__ -- !lIIS IX)c(;air.vr IS IUBJECr ro A C'ocR'r ORDER AND r111S DOC'UA1RN'r AND 1TS CONTENTS SI(ALL NOT 6E USED. SIIOW'N OR UISTRIRUTED EXCEPT AS PROVIDED IN Tllf: COURT'S ORDER 2) Division staff: Media Relations, Production Services and Information Services staffs. 3) Other staff: State Activities and Federal Relations staffs. B. Consultants t) Economic/Iegal experts 2) Education organizations and 3) Public Relations counsel 4) Research firms as necessary 5) First Amendment consultants consultants C. Materials Booklets, folders, news releases, audio and videotapes, HYD and HYS materials, other printed materials TI DN 0018088. 104

__-__= CONFIDENTIAL =__ -- !lIIS IX)c(;air.vr IS IUBJECr ro A C'ocR'r ORDER AND r111S DOC'UA1RN'r AND 1TS CONTENTS SI(ALL NOT 6E USED. SIIOW'N OR UISTRIRUTED EXCEPT AS PROVIDED IN Tllf: COURT'S ORDER 2) Division staff: Media Relations, Production Services and Information Services staffs. 3) Other staff: State Activities and Federal Relations staffs. B. Consultants t) Economic/Iegal experts 2) Education organizations and 3) Public Relations counsel 4) Research firms as necessary 5) First Amendment consultants consultants C. Materials Booklets, folders, news releases, audio and videotapes, HYD and HYS materials, other printed materials TI DN 0018088. 104

===== CONFIDENTIAL = ===== "fHIS DOCUMENT IS SUI3JCCT TO A COURT ORDER AND TU1 S DOCUMENT AND ITS CONTENTS SUALL NOT OE USED. Sf/OWN OR DISTRIBUTED EXCEPT AS PROVIDED IN TIIE COURT'ti l)RDER T1iE TOBACCO INSTITUTE 1988 BUDGET COST CENTER NAME Public Affairs - Advertising Issue No. 1308 1987 1987 1988 Account Page Budget Estimated Budget Number Description Ref. 000 ($000) 000 5101 Postage & Delivery ................. .... $ 80 $ 15 $ 15 5201 Reproduction, Printing & Drafting.. .... 338 245 150 5401 Other Office Expense ............... .... - * 0 6201 Advertising Space & Promotion ...... .... 650 0 0 7301 Professional Fees .................. .... 330 - 260 497 7501 Support of Tob./Other Organizations .. 265 357 495 8030 Outside Data Bases ..... :.......... .... 5 3 0 TOTALS ........................ .... 1,668 $880 1 157 j 105 TI DN 0018089 ~

===== CONFIDENTIAL = ===== "fHIS DOCUMENT IS SUI3JCCT TO A COURT ORDER AND TU1 S DOCUMENT AND ITS CONTENTS SUALL NOT OE USED. Sf/OWN OR DISTRIBUTED EXCEPT AS PROVIDED IN TIIE COURT'ti l)RDER T1iE TOBACCO INSTITUTE 1988 BUDGET COST CENTER NAME Public Affairs - Advertising Issue No. 1308 1987 1987 1988 Account Page Budget Estimated Budget Number Description Ref. 000 ($000) 000 5101 Postage & Delivery ................. .... $ 80 $ 15 $ 15 5201 Reproduction, Printing & Drafting.. .... 338 245 150 5401 Other Office Expense ............... .... - * 0 6201 Advertising Space & Promotion ...... .... 650 0 0 7301 Professional Fees .................. .... 330 - 260 497 7501 Support of Tob./Other Organizations .. 265 357 495 8030 Outside Data Bases ..... :.......... .... 5 3 0 TOTALS ........................ .... 1,668 $880 1 157 j 105 TI DN 0018089 ~

CONFIDEIYTIAL ====== '1'1115 DOCIiMLNT IS SURJfC7 TO A COURT ORDER AND T111S DOCU,Nf4T AND ITS CpNTCNTS SIIALL \OT U2 US[D. SHOWN OR DISTR113UTED F.XCEPT AS VROVIDED IN THE COURT'S ORDER THE TOBACCO INSTITUTE 1988 BUDGET COST CENTER Public Affairs - Advertising Issue No. 1308 1987 Budget 1987 1988 Estimated Budget 000 ($000) ($000) Account t5101 - Postage & Delivery "Helping Youth Decide" (HYD) booklets distribution $ 60 $ 15 $ 15 Spanish HYD 20 0 0 80 $ 15 $ 15 :ount #5201 - Re roduction, Printin ~ Dra ting HYD booklet (1987 - 200.000 copies) $ 80 $ 0 $ 0 "Helping Youth Say No" booklet* 200 100 0 (1987 - 200,000) Misc. printing, reprints, etc.* 30 75 25 16 country & 5 nation studies 20 Youth smoking survey 15 Aggregate demand study 5 International literature review 5 Coalition impact reports 5 Ad ban videos* - 50 75 HYD parent education tape sets 20 20 0 HYD ad reprint (1987 - 200,000) 3 0 0 New success story folder printing (1987 - 20,000) 5 0 0 $338 $245 $150 106 TI DN 0018090

CONFIDEIYTIAL ====== '1'1115 DOCIiMLNT IS SURJfC7 TO A COURT ORDER AND T111S DOCU,Nf4T AND ITS CpNTCNTS SIIALL \OT U2 US[D. SHOWN OR DISTR113UTED F.XCEPT AS VROVIDED IN THE COURT'S ORDER THE TOBACCO INSTITUTE 1988 BUDGET COST CENTER Public Affairs - Advertising Issue No. 1308 1987 Budget 1987 1988 Estimated Budget 000 ($000) ($000) Account t5101 - Postage & Delivery "Helping Youth Decide" (HYD) booklets distribution $ 60 $ 15 $ 15 Spanish HYD 20 0 0 80 $ 15 $ 15 :ount #5201 - Re roduction, Printin ~ Dra ting HYD booklet (1987 - 200.000 copies) $ 80 $ 0 $ 0 "Helping Youth Say No" booklet* 200 100 0 (1987 - 200,000) Misc. printing, reprints, etc.* 30 75 25 16 country & 5 nation studies 20 Youth smoking survey 15 Aggregate demand study 5 International literature review 5 Coalition impact reports 5 Ad ban videos* - 50 75 HYD parent education tape sets 20 20 0 HYD ad reprint (1987 - 200,000) 3 0 0 New success story folder printing (1987 - 20,000) 5 0 0 $338 $245 $150 106 TI DN 0018090

====== CO NFI D E NT I AL =_____ I111S DOCUMt:NT IS Sl:B1LCf TO A COURT ORDER ANI) TIIIS DOCUMENT AND ITS CONTENTS SIIALL NOT DL USED. SHOWN OR DISTRI6UTED L\C[PT AS I'ROVIDCD IN TIIF. COIIRT'S ORDER ST CENTER Public Affairs - Advertising Issue Page 2 No. 1308 1987 1987 1988 Budget 000 Estimated ($000) Budget ($000) Account #6201 - Advertisin S ace romot on HYD national insertions $150 $ 0 $ 0 "Helping Youth Say No" 500 0 0 $650 $ 0 $ 0 Account # 7301 - Professional Fees Advertising creative fees S 50 $ 0 . $ 0 Public relations counsel* 75 135 150 . Media tours (10 @ $5,500 each) 0 0 55 James Peterson 30 0 0 Jolly Ann Davidson* 75 25 25 Economic, behavioral & opinion studies* 100 100 - Economic impact studies - - 100 Scientific/behavioral research - - 20 Public opinion surveys - - 50 Coalition impact studies - - 12 Historical review of broadcast ban - - 10 Youth smoking case study - - 10 Labor counsel* Savarese & Associates - - 45 Forscey 20 $330 $260 $497 Account #7501 - Su ort of Tobacco & Ot er rgan zat ons National Association of State Boards of Education (NASBE)* $150 $272 $275 First Amendment Coalitions 80 - - Freedom to Advertise* - 80 50 Seminars (3 @ $30,000)* - - 90 Other Education groups 30 0 0 CASE/Arts groups* 5 5 20 Supplier & Distributor coalitions* - - 25 Vulnerable manufacturer coalitions* - - 25 Support to Labor Management Committee - - 10 $265 $357 $495 107 TI DN 0018091

====== CO NFI D E NT I AL =_____ I111S DOCUMt:NT IS Sl:B1LCf TO A COURT ORDER ANI) TIIIS DOCUMENT AND ITS CONTENTS SIIALL NOT DL USED. SHOWN OR DISTRI6UTED L\C[PT AS I'ROVIDCD IN TIIF. COIIRT'S ORDER ST CENTER Public Affairs - Advertising Issue Page 2 No. 1308 1987 1987 1988 Budget 000 Estimated ($000) Budget ($000) Account #6201 - Advertisin S ace romot on HYD national insertions $150 $ 0 $ 0 "Helping Youth Say No" 500 0 0 $650 $ 0 $ 0 Account # 7301 - Professional Fees Advertising creative fees S 50 $ 0 . $ 0 Public relations counsel* 75 135 150 . Media tours (10 @ $5,500 each) 0 0 55 James Peterson 30 0 0 Jolly Ann Davidson* 75 25 25 Economic, behavioral & opinion studies* 100 100 - Economic impact studies - - 100 Scientific/behavioral research - - 20 Public opinion surveys - - 50 Coalition impact studies - - 12 Historical review of broadcast ban - - 10 Youth smoking case study - - 10 Labor counsel* Savarese & Associates - - 45 Forscey 20 $330 $260 $497 Account #7501 - Su ort of Tobacco & Ot er rgan zat ons National Association of State Boards of Education (NASBE)* $150 $272 $275 First Amendment Coalitions 80 - - Freedom to Advertise* - 80 50 Seminars (3 @ $30,000)* - - 90 Other Education groups 30 0 0 CASE/Arts groups* 5 5 20 Supplier & Distributor coalitions* - - 25 Vulnerable manufacturer coalitions* - - 25 Support to Labor Management Committee - - 10 $265 $357 $495 107 TI DN 0018091

~I ~C~:YFip>~NTIr _ _ 11TF IJ! r1.ft11 .,1ENfn `\C1E T~1.5 1'ROVII)I:D IN NOi 13[AgL OSIIOS _ TIIF. COI:RT'S ORDl.R OR "'ST CENTER Public Affairs - Advertising Issue TOTALS ...................... 108 Page 3 No. 13Va 1987 1987 Budget Estimated 000 ($000) 1 668 $880 1988 Budget 000 $1,157 TI DN 0018092

~I ~C~:YFip>~NTIr _ _ 11TF IJ! r1.ft11 .,1ENfn `\C1E T~1.5 1'ROVII)I:D IN NOi 13[AgL OSIIOS _ TIIF. COI:RT'S ORDl.R OR "'ST CENTER Public Affairs - Advertising Issue TOTALS ...................... 108 Page 3 No. 13Va 1987 1987 Budget Estimated 000 ($000) 1 668 $880 1988 Budget 000 $1,157 TI DN 0018092

===- = CONFIDENTIAL ===-== TIffS DOCUMENT IS SUBJECT TO A COURT ORDER AND TIIIS DOCUMENT AND ITS CONTENTS Sf1ALL NOT UE USED. SJIOWN OR DISTRIBUTED EXCEPT AS PROVIDED IN TIIF. C'OIJRT'S ORDER PUBLIC SMOKING ISSIIE I. Background As a result of the 1986 Surgeon General and National Academy of Sciences reports on environmental tobacco smoke, an explosion of anti-smoking legislation was introduced at both the state and local levels. Midway through the year it was apparent that the budget for public smoking was not adequate to meet the legislative support and public communication challenges these reports presented. In part because of more aggressive marketing of our resources, in part because of the incresed public awareness of the ETS issue, we were able once again to meet our goals for mailings, and corporate and indoor air quality briefings by midyear, despite our having quadrupled most goals from 1986. These accomplishments also occurred with one less staff, member assigned to the issue. We continued to expand the broader issue of indoor air quality media tours involving ventilation experts. We also have completed production of three workplace and indoor air quality videos for use in private as well as legislative briefings. With additional funds made available in August, we moved forward with plans to encourage the hospitality industry to 109 TI DN 0018093

===- = CONFIDENTIAL ===-== TIffS DOCUMENT IS SUBJECT TO A COURT ORDER AND TIIIS DOCUMENT AND ITS CONTENTS Sf1ALL NOT UE USED. SJIOWN OR DISTRIBUTED EXCEPT AS PROVIDED IN TIIF. C'OIJRT'S ORDER PUBLIC SMOKING ISSIIE I. Background As a result of the 1986 Surgeon General and National Academy of Sciences reports on environmental tobacco smoke, an explosion of anti-smoking legislation was introduced at both the state and local levels. Midway through the year it was apparent that the budget for public smoking was not adequate to meet the legislative support and public communication challenges these reports presented. In part because of more aggressive marketing of our resources, in part because of the incresed public awareness of the ETS issue, we were able once again to meet our goals for mailings, and corporate and indoor air quality briefings by midyear, despite our having quadrupled most goals from 1986. These accomplishments also occurred with one less staff, member assigned to the issue. We continued to expand the broader issue of indoor air quality media tours involving ventilation experts. We also have completed production of three workplace and indoor air quality videos for use in private as well as legislative briefings. With additional funds made available in August, we moved forward with plans to encourage the hospitality industry to 109 TI DN 0018093

„Ils D(xl:.\l,:~'T C.~I:'NFIbE1VTIAL ~ TII I)lx.'U,\fENT AND Il'ti C'()Nl'CN'fS S11A1.L P q. I)ISTRIUUTED GCEPT AS 1'ROVIDfD IN C USGD. SIiOWN OR 711C COUR7'.S ORDER recognize smokers as a significant portion of their clientele, with development of ETS and indoor air quality advertising, and with plans to increase significantly the number of experts on the road bringing the workplace/ETS/indoor air quality issues to the public via media tours. II. Assuaptions o Most smoking restrictions and smoking restriction legislation are based on the alleged health effects of environmental tobacco smoke on the nonsmoker; proponents are strongly motivated' by annoyance. The 1986 Surgeon General's and NAS reports provided additional ammunition for legislative activity. 0 Although other viewpoints exist, it has been difficult for scientists with these viewpoints to express themselves within the scientific community. A network of anti-smokers in leadership positions effectively muzzles opposing views; publication of articles with these views is difficult. o Federal, state and local public smoking activity continues to increase. As of June, 1987, 5 bills were pending at the federal level; 189 state and 178 local bills have been introduced. Eighteen state proposals have been 110 TI DN 0018094

„Ils D(xl:.\l,:~'T C.~I:'NFIbE1VTIAL ~ TII I)lx.'U,\fENT AND Il'ti C'()Nl'CN'fS S11A1.L P q. I)ISTRIUUTED GCEPT AS 1'ROVIDfD IN C USGD. SIiOWN OR 711C COUR7'.S ORDER recognize smokers as a significant portion of their clientele, with development of ETS and indoor air quality advertising, and with plans to increase significantly the number of experts on the road bringing the workplace/ETS/indoor air quality issues to the public via media tours. II. Assuaptions o Most smoking restrictions and smoking restriction legislation are based on the alleged health effects of environmental tobacco smoke on the nonsmoker; proponents are strongly motivated' by annoyance. The 1986 Surgeon General's and NAS reports provided additional ammunition for legislative activity. 0 Although other viewpoints exist, it has been difficult for scientists with these viewpoints to express themselves within the scientific community. A network of anti-smokers in leadership positions effectively muzzles opposing views; publication of articles with these views is difficult. o Federal, state and local public smoking activity continues to increase. As of June, 1987, 5 bills were pending at the federal level; 189 state and 178 local bills have been introduced. Eighteen state proposals have been 110 TI DN 0018094

M1$DD':.111NTLC;FIDEiVTDE ENT.IVDIT.SCY)NiCN IAL f7LSiRl(;li'i[D EXC 1'EPT ~; Col R A VD TIII$ 1' 7SSlIALLNDI'Bf:1110WV ~~ ` R()VIDED IN ili[ COURT'.S <)RI)[R f)R enacted; however, local Legislation has a g reater chance of passage - - 53 bills (30 percent) have been approved so far this year. Since the first public smoking legislation was passed in 1973, some 42 states and 198 localities have restricted smoking in public places. Of these, 12 states restrict smoking in the private workplace and 23 states address smoking•in government facilities. In addition 167 localities restrict smoking in the workplace. o Although many private employers who regulate smoking attempt to accommodate smokers and nonsmokers, some implement smoking bans and discriminatory hiring policies. The public, the business community, and the news media perceive a growing trend toward severe restriction. o Fmployers and restaurateurs are receiving substantial pressure from anti-smoking organizations to severely restrict smoking to protect the public's health, reduce overhead expenses and thereby increase profits. 0 Although the Public Affairs Division has caused increased focus on the broader issue of indoor air quality, environmental smoke is still viewed as a separate and distinct issue, and smoking restrictions continue to be viewed as the only way to improve indoor air quality. 111 TI DN 0018095

M1$DD':.111NTLC;FIDEiVTDE ENT.IVDIT.SCY)NiCN IAL f7LSiRl(;li'i[D EXC 1'EPT ~; Col R A VD TIII$ 1' 7SSlIALLNDI'Bf:1110WV ~~ ` R()VIDED IN ili[ COURT'.S <)RI)[R f)R enacted; however, local Legislation has a g reater chance of passage - - 53 bills (30 percent) have been approved so far this year. Since the first public smoking legislation was passed in 1973, some 42 states and 198 localities have restricted smoking in public places. Of these, 12 states restrict smoking in the private workplace and 23 states address smoking•in government facilities. In addition 167 localities restrict smoking in the workplace. o Although many private employers who regulate smoking attempt to accommodate smokers and nonsmokers, some implement smoking bans and discriminatory hiring policies. The public, the business community, and the news media perceive a growing trend toward severe restriction. o Fmployers and restaurateurs are receiving substantial pressure from anti-smoking organizations to severely restrict smoking to protect the public's health, reduce overhead expenses and thereby increase profits. 0 Although the Public Affairs Division has caused increased focus on the broader issue of indoor air quality, environmental smoke is still viewed as a separate and distinct issue, and smoking restrictions continue to be viewed as the only way to improve indoor air quality. 111 TI DN 0018095

====== CONFIDENTIAL ====== TfllS DOCUMENT IS SUUIEClTO A C'DURf ORDER AND l'1111 DOCUMENT AND ITS CONTENTS SHALL NOT !lE USED. SHOWN OR DISTRIBUTED EXCEPT AS PROVIDED IN f11E COURT'S ORDER o Over the past year, several jurisdictions have taken preliminary steps to address the problem of indoor air quality, either as a free standing proposal to address ventilation standards or as a companion bill to a smoking restriction proposal. o Most employers and restaurateurs would prefer to develop their own responses to the issue rather than respond to specific legislation or to anti-smoker demands; however, we are seeing a growing trend toward support of legislation and/or total bans as easy ways out of dealing with a potentially difficult issue. o The Institute can and does call upon considerable resources to broaden the issue to the greater problem of indoor air quality and to assist employers and others in dealing with the public smoking issue in a responsive and reasonable manner. Although the Institute has provided assistance to a number of institutions, many continue to be unaware of our resources and willingness to provide assistance. III. Objective To increase public policy makers' awareness of the need for proper ventilation as the one effective means of dealing with 112 TI DN 0018096

====== CONFIDENTIAL ====== TfllS DOCUMENT IS SUUIEClTO A C'DURf ORDER AND l'1111 DOCUMENT AND ITS CONTENTS SHALL NOT !lE USED. SHOWN OR DISTRIBUTED EXCEPT AS PROVIDED IN f11E COURT'S ORDER o Over the past year, several jurisdictions have taken preliminary steps to address the problem of indoor air quality, either as a free standing proposal to address ventilation standards or as a companion bill to a smoking restriction proposal. o Most employers and restaurateurs would prefer to develop their own responses to the issue rather than respond to specific legislation or to anti-smoker demands; however, we are seeing a growing trend toward support of legislation and/or total bans as easy ways out of dealing with a potentially difficult issue. o The Institute can and does call upon considerable resources to broaden the issue to the greater problem of indoor air quality and to assist employers and others in dealing with the public smoking issue in a responsive and reasonable manner. Although the Institute has provided assistance to a number of institutions, many continue to be unaware of our resources and willingness to provide assistance. III. Objective To increase public policy makers' awareness of the need for proper ventilation as the one effective means of dealing with 112 TI DN 0018096

_°___= CONFIDENTIAL TI IIS UOCI.~~IENT IS SURIECT TO A COURT ORDER AND T/t!S DOC'UMENT AND ITS CONTENTS S(IqLI. NOT BF, USED. SUpWN OR DISTRIOU'fF,D EXCEPT AS PROVIDED IN TlIE COURT'S ORDER most or all of the co.ponents of indoor air pollution in the workplace and public places; and to discourage legislators and organizations from unfairly discriainating against employees and others who smoke. IV. Strategies, Goals and Tactics Strategy I: Focus greater attention on the broader issue of indoor air quality and the need for improved ventilation systems or more efficient use of existing systems. Goals: 1) Conduct at least 500 briefings on the broader issue with officials from labor, industry, trade, environmental groups and the media throughout 1988.2 2) Continue ACVA media tours, conducting at least 17 in targeted communities throughout the year.2 3) Continue Truth Squad (lay and scientific spokesman teams) media tours, focusing on indoor air quality issues. Conduct at least 24 (two per month).I 113 TI DN 001g097

_°___= CONFIDENTIAL TI IIS UOCI.~~IENT IS SURIECT TO A COURT ORDER AND T/t!S DOC'UMENT AND ITS CONTENTS S(IqLI. NOT BF, USED. SUpWN OR DISTRIOU'fF,D EXCEPT AS PROVIDED IN TlIE COURT'S ORDER most or all of the co.ponents of indoor air pollution in the workplace and public places; and to discourage legislators and organizations from unfairly discriainating against employees and others who smoke. IV. Strategies, Goals and Tactics Strategy I: Focus greater attention on the broader issue of indoor air quality and the need for improved ventilation systems or more efficient use of existing systems. Goals: 1) Conduct at least 500 briefings on the broader issue with officials from labor, industry, trade, environmental groups and the media throughout 1988.2 2) Continue ACVA media tours, conducting at least 17 in targeted communities throughout the year.2 3) Continue Truth Squad (lay and scientific spokesman teams) media tours, focusing on indoor air quality issues. Conduct at least 24 (two per month).I 113 TI DN 001g097

====== CONFIDENTIAL ==-== TIIIS DOCUMENT IS SUBJECT TO A COURT ORDER AND TIIIS !HX'UMENT AND ITS CONTENTS Sl1ALL NOT BE USED. SHOWN OR DISTRIBUTED EXCEPT AS PROVIDED IN 111E COURT'S ORDER 4) Continue media tours by Alan Itatzenstein, a lay expert on environmental questions, sponsoring at least two per month.2 5) Identify by June 1. 1988, a spokesperson for the National Energy Management Institute, capable of carrying NEMI's message regarding ventilation adequacy to the press. Conduct at least one media tour a month once spokesperson is identified and trained.1 6) Assist the tobacco industry funded Center for Indoor Air Research in conducting an additional six "briefcase" studies in priority locations identified by State Activities and/or Federal Relations. Such ETS studies will have been completed in New York, Dallas and Washington.t Tactics: 1) Through the Center for Indoor Air Research, encourage scientific research and publication of articles that point to environmental tobacco smoke as a minor indoor air quality factor.2 2) Through the Center for Indoor Air Research, encourage continued and expanded participation by 114 TI DN 0018098

====== CONFIDENTIAL ==-== TIIIS DOCUMENT IS SUBJECT TO A COURT ORDER AND TIIIS !HX'UMENT AND ITS CONTENTS Sl1ALL NOT BE USED. SHOWN OR DISTRIBUTED EXCEPT AS PROVIDED IN 111E COURT'S ORDER 4) Continue media tours by Alan Itatzenstein, a lay expert on environmental questions, sponsoring at least two per month.2 5) Identify by June 1. 1988, a spokesperson for the National Energy Management Institute, capable of carrying NEMI's message regarding ventilation adequacy to the press. Conduct at least one media tour a month once spokesperson is identified and trained.1 6) Assist the tobacco industry funded Center for Indoor Air Research in conducting an additional six "briefcase" studies in priority locations identified by State Activities and/or Federal Relations. Such ETS studies will have been completed in New York, Dallas and Washington.t Tactics: 1) Through the Center for Indoor Air Research, encourage scientific research and publication of articles that point to environmental tobacco smoke as a minor indoor air quality factor.2 2) Through the Center for Indoor Air Research, encourage continued and expanded participation by 114 TI DN 0018098

CONFIDENTIAL ====== IIIIC 1)OCIi,~I1:NT IS ,S1113.1f: (' T.1f:('T TO A('pI1RT ORUF.R AND 1'IIIJ UOCUhILNI' ANU ITS C'l)~'TI:NTti SIIALI. \'pT 13[ IiSE1J, CIIpW'V OR I)ISTRII3UTLD 4:YCT:Pf .11 PR()VIIJ[:U LN TIIF. ('pI;RT'S ()RI)ER scientific consultants on committees of organizations studying indoor air quality.2 3) Through the State Activities Division and the Center for Indoor Air Research, identify localities in which portable air sampling system (PASS) tests might be conducted, with credible third party support and spoasorship. Assist sponsors in promoting results via news conferences, media releases. As additional studies are conducted, summarize cumulative results and release to media in jurisdictions considering restrictions.1 4) Continue to assist the Federal Relations and State Activities divisions in opposing unnecessary smoking restriction legislation and regulation, emphasizing the need to examine the broader issue of indoor air quality. Provide scientific; economic, ventilation, and other expert testimony as requested. 5) Point to smoking restrictions/bans as an ineffective response to poor indoor air quality. Identify, prepare and promote positive case studies where indoor air quality was improved without restricting smoking. 6) In conjunction with ACVA (a company devoted to the ' identification and control of internal pollution 115 TI DN 0018099

CONFIDENTIAL ====== IIIIC 1)OCIi,~I1:NT IS ,S1113.1f: (' T.1f:('T TO A('pI1RT ORUF.R AND 1'IIIJ UOCUhILNI' ANU ITS C'l)~'TI:NTti SIIALI. \'pT 13[ IiSE1J, CIIpW'V OR I)ISTRII3UTLD 4:YCT:Pf .11 PR()VIIJ[:U LN TIIF. ('pI;RT'S ()RI)ER scientific consultants on committees of organizations studying indoor air quality.2 3) Through the State Activities Division and the Center for Indoor Air Research, identify localities in which portable air sampling system (PASS) tests might be conducted, with credible third party support and spoasorship. Assist sponsors in promoting results via news conferences, media releases. As additional studies are conducted, summarize cumulative results and release to media in jurisdictions considering restrictions.1 4) Continue to assist the Federal Relations and State Activities divisions in opposing unnecessary smoking restriction legislation and regulation, emphasizing the need to examine the broader issue of indoor air quality. Provide scientific; economic, ventilation, and other expert testimony as requested. 5) Point to smoking restrictions/bans as an ineffective response to poor indoor air quality. Identify, prepare and promote positive case studies where indoor air quality was improved without restricting smoking. 6) In conjunction with ACVA (a company devoted to the ' identification and control of internal pollution 115 TI DN 0018099

„/1, DOCI;:~II:.T I~C,~,~FIDENTIAL AND THIS IX)( USICN~ nND ITS CONTENTS SIInIU NOT RC ~)SED SIIOWN _ DISI'RI~UTF.D GXCLPT AS PROVIDED IN TII , C C'OURT'S ORDI:R OR problems in public and commercial buildings) media tours, sponsor ACVA indoor air quality issue ads in newspapers in media tour cities.1 7) Identify opportunities to use ACVA indoor air quality corporate video in legislative, media and issue briefings. Update video as appropriate.2 8) Continue support of National Energy Management Institute indoor air quality project, through the Tobacco Industry Labor Management Committee. Identify appropriate NEMI spokespersons; promote the project as appropriate.1 9) Continue to identify additional ventilation experts who also are qualified to conduct media, corporate and legislative briefings.2 10) In consultation with the State Activities division, identify Iegislation/ordinances that have been introduced, passed or are pending that impose smoking restrictions as a means of improving indoor air quality. With third party (i.e. labor) support, shift the focus from smoking restrictions to ventilation standards. Seek to repeal existing' smoking restrictions.2 116 . TI DN 0018100

„/1, DOCI;:~II:.T I~C,~,~FIDENTIAL AND THIS IX)( USICN~ nND ITS CONTENTS SIInIU NOT RC ~)SED SIIOWN _ DISI'RI~UTF.D GXCLPT AS PROVIDED IN TII , C C'OURT'S ORDI:R OR problems in public and commercial buildings) media tours, sponsor ACVA indoor air quality issue ads in newspapers in media tour cities.1 7) Identify opportunities to use ACVA indoor air quality corporate video in legislative, media and issue briefings. Update video as appropriate.2 8) Continue support of National Energy Management Institute indoor air quality project, through the Tobacco Industry Labor Management Committee. Identify appropriate NEMI spokespersons; promote the project as appropriate.1 9) Continue to identify additional ventilation experts who also are qualified to conduct media, corporate and legislative briefings.2 10) In consultation with the State Activities division, identify Iegislation/ordinances that have been introduced, passed or are pending that impose smoking restrictions as a means of improving indoor air quality. With third party (i.e. labor) support, shift the focus from smoking restrictions to ventilation standards. Seek to repeal existing' smoking restrictions.2 116 . TI DN 0018100

===== CONFIDENTIAL ====== ITBS DOCUMENT IS SUBJECT TO A COURT ORDER AND TUIS DOCUMENT AND ITS CONTENTS SUALL NOT BE USED, SIIOWN OR DISTRIBUTED EXCEPT AS PROVIDED IN TUE COURT'S ORDER 11) Through Tobacco Industry Labor Management Committee and the National Energy Management Institute, identify opportunities to conduct building ventilation studies in areas or among employers considering smoking restrictions.2 12) Develop-and implement nationwide ETS/Indoor Air Quality advertising campaign. Seek third party support.1 Strategy II: Work with employers and business organizations to increase awareness and credibility of the Institute's workplace programs. Encourage reasonable employer response to employee demand for smoking restrictions or to state and local legislation. Goals: 1) Conduct in 1988 at least 500 workplace smoking issue briefings with institutions that are facing the issue.. A briefing shall consist of either an on-site visit by an Institute representative, possibly accompanied by a specialty consultant, or a detailed phone/correspondence briefing. Follow up a11 briefings as needed.2 117 TI DN 001810I

===== CONFIDENTIAL ====== ITBS DOCUMENT IS SUBJECT TO A COURT ORDER AND TUIS DOCUMENT AND ITS CONTENTS SUALL NOT BE USED, SIIOWN OR DISTRIBUTED EXCEPT AS PROVIDED IN TUE COURT'S ORDER 11) Through Tobacco Industry Labor Management Committee and the National Energy Management Institute, identify opportunities to conduct building ventilation studies in areas or among employers considering smoking restrictions.2 12) Develop-and implement nationwide ETS/Indoor Air Quality advertising campaign. Seek third party support.1 Strategy II: Work with employers and business organizations to increase awareness and credibility of the Institute's workplace programs. Encourage reasonable employer response to employee demand for smoking restrictions or to state and local legislation. Goals: 1) Conduct in 1988 at least 500 workplace smoking issue briefings with institutions that are facing the issue.. A briefing shall consist of either an on-site visit by an Institute representative, possibly accompanied by a specialty consultant, or a detailed phone/correspondence briefing. Follow up a11 briefings as needed.2 117 TI DN 001810I

U(1 i~FIDENT e C'UAENT nND ITCCO l)FR AND TlflS _ DISTHIUUTED EXCEPr~S pROVIDED IN TIIE COA D usr: URT',S ' S710µ7y pR OROF.R 2) Make workplace presentations before 25 meetings or professional associations (i.e., American Society for Personnel_Administration, Association of Legal Administrators, American Management Association) by the end of 1988. These workplace presentations will be done by an Institute representative or specialty consultant.2 3) Provide workplace written issue briefing materials to 200,000 employers during 1988. Briefing materials include Institute resource guides, workplace kits and materials produced by state and local chambers of commerce. Follow up as needed.2 4) Respond, within two days, -- via letter or telephone call --*_o all requests for assistance and/or i.nformation. Follow up all responses as needed. Tactics: 1) Continue targeted mailings establishing the Institute's expertise and willingness to provide assistance. In consultation with State Activities Division, mailings will be prioritized according to states and localities that are facing workplace smoking legislation.2 118 Tg DN 0018102

U(1 i~FIDENT e C'UAENT nND ITCCO l)FR AND TlflS _ DISTHIUUTED EXCEPr~S pROVIDED IN TIIE COA D usr: URT',S ' S710µ7y pR OROF.R 2) Make workplace presentations before 25 meetings or professional associations (i.e., American Society for Personnel_Administration, Association of Legal Administrators, American Management Association) by the end of 1988. These workplace presentations will be done by an Institute representative or specialty consultant.2 3) Provide workplace written issue briefing materials to 200,000 employers during 1988. Briefing materials include Institute resource guides, workplace kits and materials produced by state and local chambers of commerce. Follow up as needed.2 4) Respond, within two days, -- via letter or telephone call --*_o all requests for assistance and/or i.nformation. Follow up all responses as needed. Tactics: 1) Continue targeted mailings establishing the Institute's expertise and willingness to provide assistance. In consultation with State Activities Division, mailings will be prioritized according to states and localities that are facing workplace smoking legislation.2 118 Tg DN 0018102

CONFIDENTIAL ====== 1'IIIS DOCUMENT IS SUU)CCT TO A C'OURT ORDfR AND TIIIS DOCUM[NT AND ITS CONTI:NT.S SI7ALL NOT BE USED, SIIOWN OR !)ISTRI6UTED EXCEPI' AS PROVIDED IN TIiE COURT'S ORDER 2) Promote reasonable policies to employers who are considering policies or responding to state or Local Legislation. Maintain samples of reasonable policies to incorporate into package. Reasonable responses will accommodate smokers and nonsmokers without allowing an individual or a group of individuals to dictate preferences. 3) Identify opportunities for corporate briefings as follows: a) Companies with which we have already established contact but have not yet requested a briefing. b) As a follow-up to targeted mailings and phone calls. c) Leads from state and local chambers of commerce with which we have established a relationship. 4) Briefings will be conducted by institute staff. Specialty consultants may include: legal counsel, union specialists, ventilation expert and management consultant. 119 TI DN 0018103 I

CONFIDENTIAL ====== 1'IIIS DOCUMENT IS SUU)CCT TO A C'OURT ORDfR AND TIIIS DOCUM[NT AND ITS CONTI:NT.S SI7ALL NOT BE USED, SIIOWN OR !)ISTRI6UTED EXCEPI' AS PROVIDED IN TIiE COURT'S ORDER 2) Promote reasonable policies to employers who are considering policies or responding to state or Local Legislation. Maintain samples of reasonable policies to incorporate into package. Reasonable responses will accommodate smokers and nonsmokers without allowing an individual or a group of individuals to dictate preferences. 3) Identify opportunities for corporate briefings as follows: a) Companies with which we have already established contact but have not yet requested a briefing. b) As a follow-up to targeted mailings and phone calls. c) Leads from state and local chambers of commerce with which we have established a relationship. 4) Briefings will be conducted by institute staff. Specialty consultants may include: legal counsel, union specialists, ventilation expert and management consultant. 119 TI DN 0018103 I

====== CONFIDENTIAL =____ ITIIS I)lXliAIENT IS SUF3JECT I'O A COURT ORDI:R AND ITIIS DOCU~tENT AND ITS CONTLNTS SHALL NOT BE USED. SHOWN OR DISTRIBUTED EXCEPT AS PROVIDED IN THE COURT'S ORDER 5) Continue promotion of expert legal, labor, science and ventilation consultants in briefings with print and broadcast media, and in corporate briefings.2 6) With third party assistance, promote effective ventilation, air fiLtration/cleaning technology as a viable alternative for employers/restaurateurs facing the issue. Develop materials outlining low-cost approaches to.improved ventilation system, use in communications with employers and restaurant groups.2 7) As appropriate, offer generic workplace smoking video and corporate indoor air quality video to employers considering restrictions. Videos may be used in instances where in-person briefings are not possible.2 8) Encourage publication in the general media of articles giving examples of reasonable responses. (Consultants who are adept on the issue will respond to articles which suggest unreasonable and unfair solutions to workplace smoking issues.) 9) Conduct at least two legal expert media tours per month; focusing on reasonable employer response and 1ega1 issues relating to smoking in the workplace.2 120 TI DN 0018104

====== CONFIDENTIAL =____ ITIIS I)lXliAIENT IS SUF3JECT I'O A COURT ORDI:R AND ITIIS DOCU~tENT AND ITS CONTLNTS SHALL NOT BE USED. SHOWN OR DISTRIBUTED EXCEPT AS PROVIDED IN THE COURT'S ORDER 5) Continue promotion of expert legal, labor, science and ventilation consultants in briefings with print and broadcast media, and in corporate briefings.2 6) With third party assistance, promote effective ventilation, air fiLtration/cleaning technology as a viable alternative for employers/restaurateurs facing the issue. Develop materials outlining low-cost approaches to.improved ventilation system, use in communications with employers and restaurant groups.2 7) As appropriate, offer generic workplace smoking video and corporate indoor air quality video to employers considering restrictions. Videos may be used in instances where in-person briefings are not possible.2 8) Encourage publication in the general media of articles giving examples of reasonable responses. (Consultants who are adept on the issue will respond to articles which suggest unreasonable and unfair solutions to workplace smoking issues.) 9) Conduct at least two legal expert media tours per month; focusing on reasonable employer response and 1ega1 issues relating to smoking in the workplace.2 120 TI DN 0018104

====== CONFIDENTIAL ====== 7lIIS DOCUMENT IS SUl7JECP TO A COURT ORDER AND TIIIS DOCUMENT AND ITS CONTENTS Sl1ALL NOT BE USED. SHOWN OR DISTRIBUTED EXCEPT AS PROVIDED IN 7HE COURT'S ORDER Strategy III: Increase the hospitality and travel industry's understanding that smokers choose services that are gracious to all customers; and that smokers comprise a significant segment of their markets. Increase smoker awareness of hotels, airlines, rental car companies and restaurants that treat smokers graciously.2 Goals: 1) Complete attitudinal survey of smokers' opinions of nonsmoker promotional efforts in the hospitality industry by March 1, 1988.1 2) Have all materials developed and available for use by June 1, 1988.1 3) Develop by June-1 a plan for briefing representatives from the various hospitality industries on findings from the survey, and providing them with materials.l 4) Through the remainder of the year, brief at least 75 officials from the hospitality industry and its trade associations.i 121 TI DN 0018105

====== CONFIDENTIAL ====== 7lIIS DOCUMENT IS SUl7JECP TO A COURT ORDER AND TIIIS DOCUMENT AND ITS CONTENTS Sl1ALL NOT BE USED. SHOWN OR DISTRIBUTED EXCEPT AS PROVIDED IN 7HE COURT'S ORDER Strategy III: Increase the hospitality and travel industry's understanding that smokers choose services that are gracious to all customers; and that smokers comprise a significant segment of their markets. Increase smoker awareness of hotels, airlines, rental car companies and restaurants that treat smokers graciously.2 Goals: 1) Complete attitudinal survey of smokers' opinions of nonsmoker promotional efforts in the hospitality industry by March 1, 1988.1 2) Have all materials developed and available for use by June 1, 1988.1 3) Develop by June-1 a plan for briefing representatives from the various hospitality industries on findings from the survey, and providing them with materials.l 4) Through the remainder of the year, brief at least 75 officials from the hospitality industry and its trade associations.i 121 TI DN 0018105

Tactics: _____= CONFIDENTIAL =_____ TUIS DOCUMENT IS SUBJECT TO A COURT ORDER AND T111S DOCUMENT AND ITS CONTENTS SHALL NOT BE USED. SHOWN OR DISTRIBUTED EXCEPT AS PROVIDED IN TIIF. COURTS ORDER 1) Commission a survey of smoker's attitudes towards discrimination in the hospitality and travel industry. Promote the results via news conferences and releases.1 2) Communicate results of survey in briefings with the trade associations and major companies within the hospitality and travel industries.1 3) Complete survey of major hotel, restaurant, airline, rental car and other industry chains, for attitudes toward smokers and awareness of smokers' attitudes.I 4) Develop background information and materials resulting from the industry survey to member companies for use in their smoker communications programs; communicate with smokers by providing materials (based on both surveys) for use by hospitality and travel groups supportive of smokers; and through the news media.1 5) Continue to promote "smokers are welcome here" tent cards and hospitality materials for restaurants. Offer similar materials for hotels and motels and airlines.2 122 TI DN 0018106

Tactics: _____= CONFIDENTIAL =_____ TUIS DOCUMENT IS SUBJECT TO A COURT ORDER AND T111S DOCUMENT AND ITS CONTENTS SHALL NOT BE USED. SHOWN OR DISTRIBUTED EXCEPT AS PROVIDED IN TIIF. COURTS ORDER 1) Commission a survey of smoker's attitudes towards discrimination in the hospitality and travel industry. Promote the results via news conferences and releases.1 2) Communicate results of survey in briefings with the trade associations and major companies within the hospitality and travel industries.1 3) Complete survey of major hotel, restaurant, airline, rental car and other industry chains, for attitudes toward smokers and awareness of smokers' attitudes.I 4) Develop background information and materials resulting from the industry survey to member companies for use in their smoker communications programs; communicate with smokers by providing materials (based on both surveys) for use by hospitality and travel groups supportive of smokers; and through the news media.1 5) Continue to promote "smokers are welcome here" tent cards and hospitality materials for restaurants. Offer similar materials for hotels and motels and airlines.2 122 TI DN 0018106

-===== CONFIDENTIAL =____ IIUS DocuMHNT IS Sul)1[Cr 10 A CouRT ORDER A.u ITIIS DOCUMENT AND 11S C'ONTENTS SIIALL NOT 0[ liSC/). Sf1O)VN ()R I)ISTRI6UTLD EXCF.PT AS I'Rl)VID[D IN TIIC COURT'S ()RDCR 6) Identify opportunities for the Center on Indoor Air Research to conduct portable air sampling system tests in restaurants and airlines. With third party support, promote results to news media and to travel and hospitality industries.1 Strategy IV: Continue to broaden political and professional relationships with organizations and individuals heavily affected by restrictions and/or concerned with the issue of indoor air quality. Goals: 1) Conduct briefings before at least 20 state/local labor councils on workplace smoking issues, using the "Indoor Air Quality: A Labor Perspective" video and labor consultants.2 2) Conduct at least one media tour per month in unionized regions of the country, featuring labor consultants. Target the labor press, central labor councils and union audiences. Utilize existing labor video as appropriate.2 123 TI DN 0018107

-===== CONFIDENTIAL =____ IIUS DocuMHNT IS Sul)1[Cr 10 A CouRT ORDER A.u ITIIS DOCUMENT AND 11S C'ONTENTS SIIALL NOT 0[ liSC/). Sf1O)VN ()R I)ISTRI6UTLD EXCF.PT AS I'Rl)VID[D IN TIIC COURT'S ()RDCR 6) Identify opportunities for the Center on Indoor Air Research to conduct portable air sampling system tests in restaurants and airlines. With third party support, promote results to news media and to travel and hospitality industries.1 Strategy IV: Continue to broaden political and professional relationships with organizations and individuals heavily affected by restrictions and/or concerned with the issue of indoor air quality. Goals: 1) Conduct briefings before at least 20 state/local labor councils on workplace smoking issues, using the "Indoor Air Quality: A Labor Perspective" video and labor consultants.2 2) Conduct at least one media tour per month in unionized regions of the country, featuring labor consultants. Target the labor press, central labor councils and union audiences. Utilize existing labor video as appropriate.2 123 TI DN 0018107

====== CONFIDENTIAL ====== TNIS DOCUMENT IS SU6JECT TO A COURT ORDER AND TI IIS DOCUMENT AND ITS CONTENTS SHALL NOT DE USED. SHOWN OR DISTRIRIJTED EYCEPT AS 1'ROVIDED IN TIIE COURT'S ORDER 3) If appropriate, produce by June 1 a second labor video featuring the president of a union representing pink/white collar employees.1 4) By March 1, have completed and available for inclusion in the existing workplace guide for labor a brochure outlining legal aspects of the issue.1 Tactics: 1) Expand or establish and maintain personal and professional contacts with state, local and national organizations; i.e., unions, civil libertarian groups, minority groups, veterans' groups, personnel management associations and environmental groups.2 2) Attend and/or appear on the.program of conferences sponsored by such organizations.2 3) Assist interested organizations in preparing statements opposing smoking restriction legislation utilizing research/materials described in Strategy I. Publicize as appropriate. 4) Utilize materials prepared for organized labor to encourage state and local labor councils/international 124 TI DN 0018108

====== CONFIDENTIAL ====== TNIS DOCUMENT IS SU6JECT TO A COURT ORDER AND TI IIS DOCUMENT AND ITS CONTENTS SHALL NOT DE USED. SHOWN OR DISTRIRIJTED EYCEPT AS 1'ROVIDED IN TIIE COURT'S ORDER 3) If appropriate, produce by June 1 a second labor video featuring the president of a union representing pink/white collar employees.1 4) By March 1, have completed and available for inclusion in the existing workplace guide for labor a brochure outlining legal aspects of the issue.1 Tactics: 1) Expand or establish and maintain personal and professional contacts with state, local and national organizations; i.e., unions, civil libertarian groups, minority groups, veterans' groups, personnel management associations and environmental groups.2 2) Attend and/or appear on the.program of conferences sponsored by such organizations.2 3) Assist interested organizations in preparing statements opposing smoking restriction legislation utilizing research/materials described in Strategy I. Publicize as appropriate. 4) Utilize materials prepared for organized labor to encourage state and local labor councils/international 124 TI DN 0018108

====== CON FI DENT I AL ====== Tt1IS Dl)CUMENT IS SIiBJECf TD A CDURI ORDER AND 1111S D()Cl1MENT AND ITS CC)NTF.N'fS SIIALL Nl)'f ISL I;SED, SIIOWV OR DItiPRIBl1TED ER([;PT AS PROVIDED IN TIIE C'DURT'ti ORDER unions to reasonably accommodate all members in their bargaining conferences. 5) Assess feasibility of producing a video to promote NEMI's ventilation program, and, if affirmative, produce it.1 6) Promote availability of existing "Labor Guide to Collective Bargaining on Workplace Issues," to unionized employees. Update and add to materials as appropriate.2 7) Identify opportunities to place the existing five-union ETS ad in unionized cities hosting workplace seminars and/or considering legislati'on.1 8) Via Labor Management Committee, support efforts of local unions to promote indoor air quality awareness.2 9) Promote opportunities for ACVA ventilation studies, funded by Labor Management Committee but done at the request of affected unions.2 10) Support, as appropriate, labor requests for help in grievances as related to workplace smoking. Maintain a current file of grievance decisions; update Labor Management Committee legal assessment as appropriate.1 Q5 TI DN 0018109 11

====== CON FI DENT I AL ====== Tt1IS Dl)CUMENT IS SIiBJECf TD A CDURI ORDER AND 1111S D()Cl1MENT AND ITS CC)NTF.N'fS SIIALL Nl)'f ISL I;SED, SIIOWV OR DItiPRIBl1TED ER([;PT AS PROVIDED IN TIIE C'DURT'ti ORDER unions to reasonably accommodate all members in their bargaining conferences. 5) Assess feasibility of producing a video to promote NEMI's ventilation program, and, if affirmative, produce it.1 6) Promote availability of existing "Labor Guide to Collective Bargaining on Workplace Issues," to unionized employees. Update and add to materials as appropriate.2 7) Identify opportunities to place the existing five-union ETS ad in unionized cities hosting workplace seminars and/or considering legislati'on.1 8) Via Labor Management Committee, support efforts of local unions to promote indoor air quality awareness.2 9) Promote opportunities for ACVA ventilation studies, funded by Labor Management Committee but done at the request of affected unions.2 10) Support, as appropriate, labor requests for help in grievances as related to workplace smoking. Maintain a current file of grievance decisions; update Labor Management Committee legal assessment as appropriate.1 Q5 TI DN 0018109 11

-===== CONFIDENTIAL ====== -j 11115 DOCUNILNT IS SliR1EC f TO A COURT ORDER AVI) 1111S I DOCUMENT AND Il'S CONTENTS SHALL NOT BE USED. SIIOW_N OR i DISTRII7UTED EXCEPT AS PROVIDED IN THE COURT'S ORDER 11) Broaden relationships within AFL-CIO to include councils representing Hispanic, Black and women trade unionists. Seek positions on indoor air quality as appropriate.2 12) Encourage neutrality on tobacco issues among organizations for which such issues are not a priority. 13) Brief civil libertarians on employer practices that discriminate against smokers. Encourage opposition to employee screening programs that may attempt to discriminate against smokers. 14) Encourage and support presentations of the existing American Association for Affirmative Action (AAAA) paper, "Toward a Civil Rights Approach to Smoking" to select audiences. These presentations should be conducted by the authors, Dr. Robert Ethridge, President of AAAA and John Fox.2 15) Identify Legislation of interest to our allies and offer our support where feasible. 16) Where appropriate, assist third parties in legal efforts to overturn workplace smoking restrictions. 126 TI DN 0018110

-===== CONFIDENTIAL ====== -j 11115 DOCUNILNT IS SliR1EC f TO A COURT ORDER AVI) 1111S I DOCUMENT AND Il'S CONTENTS SHALL NOT BE USED. SIIOW_N OR i DISTRII7UTED EXCEPT AS PROVIDED IN THE COURT'S ORDER 11) Broaden relationships within AFL-CIO to include councils representing Hispanic, Black and women trade unionists. Seek positions on indoor air quality as appropriate.2 12) Encourage neutrality on tobacco issues among organizations for which such issues are not a priority. 13) Brief civil libertarians on employer practices that discriminate against smokers. Encourage opposition to employee screening programs that may attempt to discriminate against smokers. 14) Encourage and support presentations of the existing American Association for Affirmative Action (AAAA) paper, "Toward a Civil Rights Approach to Smoking" to select audiences. These presentations should be conducted by the authors, Dr. Robert Ethridge, President of AAAA and John Fox.2 15) Identify Legislation of interest to our allies and offer our support where feasible. 16) Where appropriate, assist third parties in legal efforts to overturn workplace smoking restrictions. 126 TI DN 0018110

====== CONFIDENTIAL ====== THIS DOCUMENT IS SU6JECT TO A COURT ORDER AND Tf11S DOCUMENT AND ITS CONTENTS SItALL NOT (SE USED. SIIOWN OR DISTRI6UTED EXCEPT AS PROVIDED IN TIfE COURT'S ORDER V. Resources A. Staff 1) Public Affairs: Stuntz, Foley, Osborne, Ransoms, Media Relations, Information Center, Production Services 2) State activities: Woodson, appropriate field staff and legislative counsel 3) Federal Relations: White, Walters 8. Consultants 1) Legal (John Fox, Dennis Vaughn) 2) Labor experts (Mike Foracey, James Savarese and Associates) 3) Public relations counsel (Ogilvy & Mather, Fleishman-Hillard, Hi11 & Knowlton Inc.) 4) Management consultants to be identified 5) Scientific consultants (Indoor Air Pollution Advisory Group, Scientific Witness Team) 127 TI DN 0018111

====== CONFIDENTIAL ====== THIS DOCUMENT IS SU6JECT TO A COURT ORDER AND Tf11S DOCUMENT AND ITS CONTENTS SItALL NOT (SE USED. SIIOWN OR DISTRI6UTED EXCEPT AS PROVIDED IN TIfE COURT'S ORDER V. Resources A. Staff 1) Public Affairs: Stuntz, Foley, Osborne, Ransoms, Media Relations, Information Center, Production Services 2) State activities: Woodson, appropriate field staff and legislative counsel 3) Federal Relations: White, Walters 8. Consultants 1) Legal (John Fox, Dennis Vaughn) 2) Labor experts (Mike Foracey, James Savarese and Associates) 3) Public relations counsel (Ogilvy & Mather, Fleishman-Hillard, Hi11 & Knowlton Inc.) 4) Management consultants to be identified 5) Scientific consultants (Indoor Air Pollution Advisory Group, Scientific Witness Team) 127 TI DN 0018111

====== CONFIDENTIAL =____ 1 I IIS D(1('1'\t l~:\' I' 1.> >i'!31l:(' 1' I<) :, ('(1('R t' t)RDI:R 4\I) !I I IS DUC'I; ,V11:NT :\11l) 1'fS C()NTI:NTS SIL\LL NUF 13L: LSE.D. S!1()W'N OR DISTR117U'1'[D EXCEPT AS PROVIDED IN TIiE C'()DRT'S ORDER 6) Commercial air quality inspection firms (ACVA Atlantic, National Energy Management Institute) 7) Survey firms (Hamilton, Frederick & Schneiders and regional firms identified on an as-needed basis) 8) Economists (supervised by James Savarese and Associates) 9) Labor Management Committee C. Materials 1) Backgrounders on indoor air quality and other issues of concern to third parties 2) Examples of reasonable workplace smoking policies 3) Chamber issue brochures 4) "Some Considerations" workplace kit, economic, productivity, legal, design, health and other publications 5) Workplace Smoking: A Resource Guide 128 TI DN 0018112

====== CONFIDENTIAL =____ 1 I IIS D(1('1'\t l~:\' I' 1.> >i'!31l:(' 1' I<) :, ('(1('R t' t)RDI:R 4\I) !I I IS DUC'I; ,V11:NT :\11l) 1'fS C()NTI:NTS SIL\LL NUF 13L: LSE.D. S!1()W'N OR DISTR117U'1'[D EXCEPT AS PROVIDED IN TIiE C'()DRT'S ORDER 6) Commercial air quality inspection firms (ACVA Atlantic, National Energy Management Institute) 7) Survey firms (Hamilton, Frederick & Schneiders and regional firms identified on an as-needed basis) 8) Economists (supervised by James Savarese and Associates) 9) Labor Management Committee C. Materials 1) Backgrounders on indoor air quality and other issues of concern to third parties 2) Examples of reasonable workplace smoking policies 3) Chamber issue brochures 4) "Some Considerations" workplace kit, economic, productivity, legal, design, health and other publications 5) Workplace Smoking: A Resource Guide 128 TI DN 0018112

====== CONFIDENTIAL ====== I'IIIS D(XUMI:NT IS SUI3JECT TO A COURT ORDER :\NI) TI111 DOCUMENT AND ITS CONTENTS SHALL NOT BE USED. SIION'N OR DISTRIBUTED EXCEPT AS PROVIDED IN TIfE COURT'S ORDER 6) Workplace materials for organized labor 7) Workplace video 8) Corporate and labor Gray &obertson videos 9) Hospitality and travel industry materials including tent cards, policy certificates, program brochures, window and door decals 10) Summaries of economic, voter and other surveys and research 129 TI DN 0018113

====== CONFIDENTIAL ====== I'IIIS D(XUMI:NT IS SUI3JECT TO A COURT ORDER :\NI) TI111 DOCUMENT AND ITS CONTENTS SHALL NOT BE USED. SIION'N OR DISTRIBUTED EXCEPT AS PROVIDED IN TIfE COURT'S ORDER 6) Workplace materials for organized labor 7) Workplace video 8) Corporate and labor Gray &obertson videos 9) Hospitality and travel industry materials including tent cards, policy certificates, program brochures, window and door decals 10) Summaries of economic, voter and other surveys and research 129 TI DN 0018113

====== CO N FI D E NTIA L=_____ I111S DOCUMENT IS S;IUECP TO.\ COURT ORDER AND TIIIS DOCUMENT .SN[) ITS CONTENTS SHALL NOT BE USED. SHOWN OR DISTRIRUTED EXCEPT AS PROVIDED IN TIIE COURT'S ORDER THE TOBACCO INSTITUTE 1988 BUDGET COST CENTER Public Affairs - Public Smokina-Issue No. 1309 1987 1987 1988 Account Number Description Page Ref. Budget 000 Estimated Budget ($000) ( 000 4701 Furniture, Fixtures & Equipment.... $ - $ 7 $ 0 4801 Books & Subscriptions .............. - * 0 5101 Postage & Delivery ................. 8 35 5201 Reproduction, Printing & Drafting.. . 165 281 485 6201 Advertising Space & Promotion...... - - 5.750 7301 Professional Fees .................. •... 1,105 1,371 1,554 7501 Support of Tob./Other Organizations .... 430 430 661 8030 Outside Data Bases................. ... 5 5 0 9100 Data Processing ALlocations........ 50 TOTALS ........................ •... 1 705 $2,152 $8,485 130 TI DN 0018114

====== CO N FI D E NTIA L=_____ I111S DOCUMENT IS S;IUECP TO.\ COURT ORDER AND TIIIS DOCUMENT .SN[) ITS CONTENTS SHALL NOT BE USED. SHOWN OR DISTRIRUTED EXCEPT AS PROVIDED IN TIIE COURT'S ORDER THE TOBACCO INSTITUTE 1988 BUDGET COST CENTER Public Affairs - Public Smokina-Issue No. 1309 1987 1987 1988 Account Number Description Page Ref. Budget 000 Estimated Budget ($000) ( 000 4701 Furniture, Fixtures & Equipment.... $ - $ 7 $ 0 4801 Books & Subscriptions .............. - * 0 5101 Postage & Delivery ................. 8 35 5201 Reproduction, Printing & Drafting.. . 165 281 485 6201 Advertising Space & Promotion...... - - 5.750 7301 Professional Fees .................. •... 1,105 1,371 1,554 7501 Support of Tob./Other Organizations .... 430 430 661 8030 Outside Data Bases................. ... 5 5 0 9100 Data Processing ALlocations........ 50 TOTALS ........................ •... 1 705 $2,152 $8,485 130 TI DN 0018114

====== CONFIDENTIAL =_____ TNIS DOCUMENT IS SUl1JECT TO A COURT ORDER AND THIS DOCUMENT AND ITS CONTENTS SHALL NOT BE USED. SHOWN OR DISTRIBUTED EXCEPT AS PROVIDED IN TNE COIIRT'S ORDER THE TOBACCO INSTITUTE 1988 BUDGET COST CENTER Public Affairs - Public Smoking.Issue No. 1309 1987 Budget 1987 1988 Estimated Budget 000 ($000) ($000) Account #5101 - Postage & Deiivery Workplace Resource Guide (4 @ $7,700)* $ - $ 8 $ 35 Account #5201 - Re roduction Printin _ Dra ting Smoking in the workplace kit production S 10 $ 12 $ 25 printing 40 20 160 reprints of articles 5 5 20 Other public smoking publications/ reproductions 50 50 100 Video Workplace* 30 90 50 (1987 actual high due to demand from State Activities,.coalitions) . 30-minute ACVA (Per Philip Morris for use overseas) - 44 0 Restaurant* 30 - 75 Corporate air quality* - 45 20 Workplace resource guide (200,000)* 15 35 $165 $281 $485 Account #6201 - Advertising Sp ace & Promot on ETS issue ads - - 5.000 ACVA issue ads* 750 $5,750 131 TI DN 0018115

====== CONFIDENTIAL =_____ TNIS DOCUMENT IS SUl1JECT TO A COURT ORDER AND THIS DOCUMENT AND ITS CONTENTS SHALL NOT BE USED. SHOWN OR DISTRIBUTED EXCEPT AS PROVIDED IN TNE COIIRT'S ORDER THE TOBACCO INSTITUTE 1988 BUDGET COST CENTER Public Affairs - Public Smoking.Issue No. 1309 1987 Budget 1987 1988 Estimated Budget 000 ($000) ($000) Account #5101 - Postage & Deiivery Workplace Resource Guide (4 @ $7,700)* $ - $ 8 $ 35 Account #5201 - Re roduction Printin _ Dra ting Smoking in the workplace kit production S 10 $ 12 $ 25 printing 40 20 160 reprints of articles 5 5 20 Other public smoking publications/ reproductions 50 50 100 Video Workplace* 30 90 50 (1987 actual high due to demand from State Activities,.coalitions) . 30-minute ACVA (Per Philip Morris for use overseas) - 44 0 Restaurant* 30 - 75 Corporate air quality* - 45 20 Workplace resource guide (200,000)* 15 35 $165 $281 $485 Account #6201 - Advertising Sp ace & Promot on ETS issue ads - - 5.000 ACVA issue ads* 750 $5,750 131 TI DN 0018115

====== CONFIDENTIAL ====== 1'IIIS DOCUME.NT IS SU13JL'CT TO A COURT ORDLR AND TIIIS DOCUMENT AND ITS CONTENTS SHALL NOT I7E USED. SIIOWN OR DISTRIBUTED EXCEPI' AS PROVIDED IN TI{E COURT'S ORDER ...,ST CENTER Public Affairs - Public Smoking Issue Page 2 No. 1309 1987 1987 1988 Budget Estimated Budget 000 ($000) ($000) Account #7301 - Professional Fees PR counsel/corporate* $100 $ 50 $ - Fleishman-Hillard - - 50 Hill & Knowlton - - 20 PR counsel/labor* 150 Ogilvy & Mather 200 225 Savarese 200 150 Consultants to conduct research and represent TI to media, corporate, labor, and technical audiences Local voter surveys (2 per SAD request)* 00 0 30 Local restriction cost studies* (4 per SAD request) 80 40 40 Local economists 25 . 10 0 Ventilation consultants 150 (Media (Media Economic (Solmon) 25 tours) tours) 20 25 Miscellaneous opinion research* 25 50 25 - Hospitality survey - - 50 Paul, Hastings, Janofsky & Walker 25 200 50 Labor consultant (Forscey) 150 150 75 Workplace consultant (Alan Katzenstein) 80 70 25 Social Costs research 50 25 - Arbitrator 45 - - Media Tours Truth squad (24) - Expert consultant (@ $8,000 each) 56 192 - Agency (@ $5,500 each) 40 132 ACVA - Gray Robertson (expenses) - 25 35 - Agency (@ $6,500 each) - 175 150 John Fox (24 @ $7,500) (See PHJ&W) 180 Katzenstein (24 @ $4,000) See Katzenstein) 100 $1'.105 $1,371 $1,554 132 TI DN 0018116

====== CONFIDENTIAL ====== 1'IIIS DOCUME.NT IS SU13JL'CT TO A COURT ORDLR AND TIIIS DOCUMENT AND ITS CONTENTS SHALL NOT I7E USED. SIIOWN OR DISTRIBUTED EXCEPI' AS PROVIDED IN TI{E COURT'S ORDER ...,ST CENTER Public Affairs - Public Smoking Issue Page 2 No. 1309 1987 1987 1988 Budget Estimated Budget 000 ($000) ($000) Account #7301 - Professional Fees PR counsel/corporate* $100 $ 50 $ - Fleishman-Hillard - - 50 Hill & Knowlton - - 20 PR counsel/labor* 150 Ogilvy & Mather 200 225 Savarese 200 150 Consultants to conduct research and represent TI to media, corporate, labor, and technical audiences Local voter surveys (2 per SAD request)* 00 0 30 Local restriction cost studies* (4 per SAD request) 80 40 40 Local economists 25 . 10 0 Ventilation consultants 150 (Media (Media Economic (Solmon) 25 tours) tours) 20 25 Miscellaneous opinion research* 25 50 25 - Hospitality survey - - 50 Paul, Hastings, Janofsky & Walker 25 200 50 Labor consultant (Forscey) 150 150 75 Workplace consultant (Alan Katzenstein) 80 70 25 Social Costs research 50 25 - Arbitrator 45 - - Media Tours Truth squad (24) - Expert consultant (@ $8,000 each) 56 192 - Agency (@ $5,500 each) 40 132 ACVA - Gray Robertson (expenses) - 25 35 - Agency (@ $6,500 each) - 175 150 John Fox (24 @ $7,500) (See PHJ&W) 180 Katzenstein (24 @ $4,000) See Katzenstein) 100 $1'.105 $1,371 $1,554 132 TI DN 0018116

====-= CONFIDENTIAL ====== TuIS DOCUMENT IS SUBJL'Cr To A COURT ORDGR AND rWS D(X:UMENI' AND ITS C'ONTENTS S11.1LL NOT BE l1SED, SIIOW'N OR DISTRI6UTED EXCEPT AS PROVIDED IN TIIE Cl)URT'S ORDER ST CENTER Public Affairs - Public Smoking Issue Page 3 No. 1309 1987 Budget 1987 1988 Estimated Budget 000 ($000) ($000) Account #7501 - Su ort of Tobacco & er rganiza ons Grants• to assist in implementation of voluntary policies* Workplace $ 40 $ 30 $ 40 Restaurant 40 10 40 Hospitality - - 30 American Assn. for Affirmative Action 10 10 10 Grants to conduct building studies* 300 - Building studies per PAD request 80 80 Building studies per SAD request 0 20 Support to National Energy Management Institute (NEMI)* Grant to develop IAQ protocol 180 100 Spokesperson to represent NEMI in testimony, media work - 50 Video - 50 Labor Management Committee* Workplace smoking materials 1S 30 30 ETS ads - 40 100 Labor spokesperson media tour - - 66 (12 @ $5.500) Indoor Air' Quality Video - 25 20 Miscellaneous * - .25 25 Air quality seminar 25 0 0 $430 $430 $661 TOTALS ......................... 1~ ,705 $2,152 $8,485 133 TI DN 0018117

====-= CONFIDENTIAL ====== TuIS DOCUMENT IS SUBJL'Cr To A COURT ORDGR AND rWS D(X:UMENI' AND ITS C'ONTENTS S11.1LL NOT BE l1SED, SIIOW'N OR DISTRI6UTED EXCEPT AS PROVIDED IN TIIE Cl)URT'S ORDER ST CENTER Public Affairs - Public Smoking Issue Page 3 No. 1309 1987 Budget 1987 1988 Estimated Budget 000 ($000) ($000) Account #7501 - Su ort of Tobacco & er rganiza ons Grants• to assist in implementation of voluntary policies* Workplace $ 40 $ 30 $ 40 Restaurant 40 10 40 Hospitality - - 30 American Assn. for Affirmative Action 10 10 10 Grants to conduct building studies* 300 - Building studies per PAD request 80 80 Building studies per SAD request 0 20 Support to National Energy Management Institute (NEMI)* Grant to develop IAQ protocol 180 100 Spokesperson to represent NEMI in testimony, media work - 50 Video - 50 Labor Management Committee* Workplace smoking materials 1S 30 30 ETS ads - 40 100 Labor spokesperson media tour - - 66 (12 @ $5.500) Indoor Air' Quality Video - 25 20 Miscellaneous * - .25 25 Air quality seminar 25 0 0 $430 $430 $661 TOTALS ......................... 1~ ,705 $2,152 $8,485 133 TI DN 0018117

====== CONFIDENTIAL =___- THIS DOCUMENT IS SUBJECT TO A COURT ORDER AND TIIIS DOCUMENT AND ITS CONTENTS SHALL NOT BE USED. SHOWN OR DISTRIBUTED EXCEPT AS PROVIDED IN THE COURT'S ORDER SOCIAL COST ISSUE I. Background The "social cost" issue is a new program assigned to the Public Affairs Division. In the past, we have addressed this issue on an ad hoc basis when used to justify specific anti-smoking proposals. The "social cost" issue impacts all of our issues and is being used increasingly and with greater intensity by anti-smoking groups. This plan represents our first comprehensive program to aggressively manage the "social cost" issue. II. Assumptions o Anti-smoking activists increasingly are arguing that the smokers' alleged cost to society, i.e., increased job absences, higher public medical expenses, accidental fires, etc., justify increasing cigarette excise taxes, bans on cigarette advertising, public smoking restrictions, and elimination of the tobacco farm program. "Social cost" arguments promoted by anti-smoking groups add to the perception that tobacco use is socially unacceptable. o "Social cost" arguments are utilized by anti-smoking groups to counter any effort by the tobacco industry to 134 TI DN 0018118

====== CONFIDENTIAL =___- THIS DOCUMENT IS SUBJECT TO A COURT ORDER AND TIIIS DOCUMENT AND ITS CONTENTS SHALL NOT BE USED. SHOWN OR DISTRIBUTED EXCEPT AS PROVIDED IN THE COURT'S ORDER SOCIAL COST ISSUE I. Background The "social cost" issue is a new program assigned to the Public Affairs Division. In the past, we have addressed this issue on an ad hoc basis when used to justify specific anti-smoking proposals. The "social cost" issue impacts all of our issues and is being used increasingly and with greater intensity by anti-smoking groups. This plan represents our first comprehensive program to aggressively manage the "social cost" issue. II. Assumptions o Anti-smoking activists increasingly are arguing that the smokers' alleged cost to society, i.e., increased job absences, higher public medical expenses, accidental fires, etc., justify increasing cigarette excise taxes, bans on cigarette advertising, public smoking restrictions, and elimination of the tobacco farm program. "Social cost" arguments promoted by anti-smoking groups add to the perception that tobacco use is socially unacceptable. o "Social cost" arguments are utilized by anti-smoking groups to counter any effort by the tobacco industry to 134 TI DN 0018118

CONFIDENTIAL Illll D()C('.\1L, '1' IS.1(IIl1LC'T 70.1 (()(;RC()RDIR ANf) 17111 DUCU~i[\T AND ITC CpNTI:NTS SIIALL N()T !lE [;;11;D, SlIOWV ()R DISI'RI6UTGD EXCLPT AS I'RnVIDLD 1N TIlE C'OURT'S ()RDER demonstrate the positive economic impact of tobacco on the nation's economy, i.e., the Wharton and Chase studies. These economic impact studies do not deal with "social cost" arguments. o Independent economists state that "social cost" concepts and computations used by anti-smokers do not withstand credible economic scrutiny. Anti-smokers' research presumes that most costs they perceive to be associated with smoking represent a financial burden on society as a whole. o The Surgeon General's assertion that environmental tobacco smoke is a demonstrated health hazard to the nonsmoker will most likely escalate future "social cost" estimates. o The "social cost" debate thus far b~as been largely between the anti-smoking lobby, including some members of Congress, and the tobacco industry, with public policy makers as the primary audience. Some actuarial and health care economic discussions which do not support anti-smoker research have not been widely distributed or promoted. The general public is not familiar with all aspects of the issue and, if they were, would likely be unsympathetic to "social cost" economics as a justification for restricting free lifestyle choices. 135 TI DN 0018119

CONFIDENTIAL Illll D()C('.\1L, '1' IS.1(IIl1LC'T 70.1 (()(;RC()RDIR ANf) 17111 DUCU~i[\T AND ITC CpNTI:NTS SIIALL N()T !lE [;;11;D, SlIOWV ()R DISI'RI6UTGD EXCLPT AS I'RnVIDLD 1N TIlE C'OURT'S ()RDER demonstrate the positive economic impact of tobacco on the nation's economy, i.e., the Wharton and Chase studies. These economic impact studies do not deal with "social cost" arguments. o Independent economists state that "social cost" concepts and computations used by anti-smokers do not withstand credible economic scrutiny. Anti-smokers' research presumes that most costs they perceive to be associated with smoking represent a financial burden on society as a whole. o The Surgeon General's assertion that environmental tobacco smoke is a demonstrated health hazard to the nonsmoker will most likely escalate future "social cost" estimates. o The "social cost" debate thus far b~as been largely between the anti-smoking lobby, including some members of Congress, and the tobacco industry, with public policy makers as the primary audience. Some actuarial and health care economic discussions which do not support anti-smoker research have not been widely distributed or promoted. The general public is not familiar with all aspects of the issue and, if they were, would likely be unsympathetic to "social cost" economics as a justification for restricting free lifestyle choices. 135 TI DN 0018119

====== CONFIDENTIAL ====== TIIIS DOCUMENT IS SUBJECT TO A COURT ORDER AND TIIIS DOCUMENT AND ITS CONTENTS SHALL NOT BE USED. SIIOWN OR DISI'RIBUTED EXCEPT AS PROVIDED IN Tl1E COURT'S ORDER o Other industries, i.e., dairy, meat, alcohol, chemical producers, nuclear power, hazardous wastes management and small aircraft, are also vulnerable to similar "social cost" arguments. III. Objective To challenge the validity of anti-s.okers' "social cost" argudents used to support anti-tobacco legislation on the federal, state and local level.1 IV. Strategies, Goals and Tactics Strategy I: Aggressively counter "social cost" research with credible, independent economic studies.1 Goals : 1) Conduct at least one organizational meeting of the "social cost" economists network within six months.l 2) Submit for publication at least five articles summarizing independent economic review of "social cost" arguments within six months.1 136 TI DN 0018120

====== CONFIDENTIAL ====== TIIIS DOCUMENT IS SUBJECT TO A COURT ORDER AND TIIIS DOCUMENT AND ITS CONTENTS SHALL NOT BE USED. SIIOWN OR DISI'RIBUTED EXCEPT AS PROVIDED IN Tl1E COURT'S ORDER o Other industries, i.e., dairy, meat, alcohol, chemical producers, nuclear power, hazardous wastes management and small aircraft, are also vulnerable to similar "social cost" arguments. III. Objective To challenge the validity of anti-s.okers' "social cost" argudents used to support anti-tobacco legislation on the federal, state and local level.1 IV. Strategies, Goals and Tactics Strategy I: Aggressively counter "social cost" research with credible, independent economic studies.1 Goals : 1) Conduct at least one organizational meeting of the "social cost" economists network within six months.l 2) Submit for publication at least five articles summarizing independent economic review of "social cost" arguments within six months.1 136 TI DN 0018120

====== CONFIDENTIAL =_____ TIIIS DOCIIMF.NT IS SURIECI' TO A COURT ORDER ANI) 1'IiiS DOCUMENT AND ITS CONTENTS SHALL NOT BE USED. SHOWN l)R DISTRIBUTED EXCEPT AS PROVIDED IN Tf1E COIIRT'S ORDER 3) Commission at least five specific new studies on the "social cost" issue within six months.I 4) Conduct media tour to promote Tollison and Wagner book now in draft within the six months.1 5) Support at least one academic symposium on the "social cost" within nine months.1 6) Submit at least five abstracts of new "social cost" studies to prestigious economic conferences within nine months.1 7) Brief at least five legislative organizations on the "social cost" issue within six months.l 8) Brief at least 10 minority and veteran groups on the "social cost" issue within six months.I Tactics: 1) Identify network of economists familiar with the "social cost" issue to review and maintain literature, to conduct research, to prepare articles, legislative testimony, letters to the editor and op-ed pieces. When possible utilize existing tax issue economists' network. Conduct periodic meetings in central location.1 137 TI DN 0018121

====== CONFIDENTIAL =_____ TIIIS DOCIIMF.NT IS SURIECI' TO A COURT ORDER ANI) 1'IiiS DOCUMENT AND ITS CONTENTS SHALL NOT BE USED. SHOWN l)R DISTRIBUTED EXCEPT AS PROVIDED IN Tf1E COIIRT'S ORDER 3) Commission at least five specific new studies on the "social cost" issue within six months.I 4) Conduct media tour to promote Tollison and Wagner book now in draft within the six months.1 5) Support at least one academic symposium on the "social cost" within nine months.1 6) Submit at least five abstracts of new "social cost" studies to prestigious economic conferences within nine months.1 7) Brief at least five legislative organizations on the "social cost" issue within six months.l 8) Brief at least 10 minority and veteran groups on the "social cost" issue within six months.I Tactics: 1) Identify network of economists familiar with the "social cost" issue to review and maintain literature, to conduct research, to prepare articles, legislative testimony, letters to the editor and op-ed pieces. When possible utilize existing tax issue economists' network. Conduct periodic meetings in central location.1 137 TI DN 0018121

====== CONFIDENTIAL =_ I IIIS D(CI;\II:NT IS ~I:IllI~,C'T i() :\ COI'RT ORDfR .\N'D IIIiS D(XUNE NT .\NI) IIS CUNTI:NTS SIL\l.L NUI' BE USED. SII()WN OR DISTRIBUTED EXC:I'T AS PROVIDED IN TIIE COURT'S ORDER 2) Publicize independent economic review of "social cost" arguments and encourage publication in newspapers, economic journals and economic conference proceedings.1 3) Commission and aggressively promote new studies on precise topics, i.e., smoker vs. nonsmoker productivity, absenteeism and accident rates, actual estimate of all taxes paid by smokers vs. the public health care costs allegedly attributed to smoking, etc.1 4) Publicize Tollison and Wagner book in conjunction with a media tour of "social cost" economists sponsored by an academic institution. In conjunction with tour, prepare and distribute executive summary of book.1 5) Support and aggressively promote a one day symposium sponsored by an academic institution, i.e:, Center for the Study of Public Choice at George Mason University, on the "social cost" issue. Sponsor would commission papers on precise topics and publish and promote the proceedings.1 6) Direct "social cost" economists to submit abstracts of studies and seek speaking/seminar opportunities at prestigious economic conferences, i.e., American Economic Association, Southern Economic Association, 138 TI DN 0018122

====== CONFIDENTIAL =_ I IIIS D(CI;\II:NT IS ~I:IllI~,C'T i() :\ COI'RT ORDfR .\N'D IIIiS D(XUNE NT .\NI) IIS CUNTI:NTS SIL\l.L NUI' BE USED. SII()WN OR DISTRIBUTED EXC:I'T AS PROVIDED IN TIIE COURT'S ORDER 2) Publicize independent economic review of "social cost" arguments and encourage publication in newspapers, economic journals and economic conference proceedings.1 3) Commission and aggressively promote new studies on precise topics, i.e., smoker vs. nonsmoker productivity, absenteeism and accident rates, actual estimate of all taxes paid by smokers vs. the public health care costs allegedly attributed to smoking, etc.1 4) Publicize Tollison and Wagner book in conjunction with a media tour of "social cost" economists sponsored by an academic institution. In conjunction with tour, prepare and distribute executive summary of book.1 5) Support and aggressively promote a one day symposium sponsored by an academic institution, i.e:, Center for the Study of Public Choice at George Mason University, on the "social cost" issue. Sponsor would commission papers on precise topics and publish and promote the proceedings.1 6) Direct "social cost" economists to submit abstracts of studies and seek speaking/seminar opportunities at prestigious economic conferences, i.e., American Economic Association, Southern Economic Association, 138 TI DN 0018122

_____= CONFIDENTIAL TIIIS DOCIINI(:NT IS SUBIECT TO A('OURT ORDER ANI) TIIIS DOCUMENT AND ITS CONTENTS SILVl NOT BE USED. SUOWN OR DISTRIBUTED EXCEPT AS PROVIDED IN TIIE COf1RT'S ORDER Western Economic Association, Atlantic Economic Association, etc.1 7) Seek opportunities for "social cost" economists to testify, to prepare testimony, and to include research/ articles in the legislative record when anti-tobacco legislation is under consideration and "social cost" arguments are utilized. (This year, economists already have prepared rebuttals to "social cost" arguments to justify excise tax increases in California and Texas.)l 8) Direct "social cost" economists to brief economic and policy staffs of legislative organizations, i.e., American Legislative Exchange Council, National Conference of State Legislators, Council of State Governments, National Governors Association on the "social costs" issue; encourage them to address the issue as a serious public policy concern. Seek publication and speaking/seminar opportunities.1 9) Encourage existing and future smoker anti- harassment groups to point to "social cost" arguments issue as another form of harassment.1 10) Brief minority and veterans groups on the "social cost" issue and encourage them to take a position. Assist in preparing op-ed pieces, letters to the editor 139 TI DN 0018123

_____= CONFIDENTIAL TIIIS DOCIINI(:NT IS SUBIECT TO A('OURT ORDER ANI) TIIIS DOCUMENT AND ITS CONTENTS SILVl NOT BE USED. SUOWN OR DISTRIBUTED EXCEPT AS PROVIDED IN TIIE COf1RT'S ORDER Western Economic Association, Atlantic Economic Association, etc.1 7) Seek opportunities for "social cost" economists to testify, to prepare testimony, and to include research/ articles in the legislative record when anti-tobacco legislation is under consideration and "social cost" arguments are utilized. (This year, economists already have prepared rebuttals to "social cost" arguments to justify excise tax increases in California and Texas.)l 8) Direct "social cost" economists to brief economic and policy staffs of legislative organizations, i.e., American Legislative Exchange Council, National Conference of State Legislators, Council of State Governments, National Governors Association on the "social costs" issue; encourage them to address the issue as a serious public policy concern. Seek publication and speaking/seminar opportunities.1 9) Encourage existing and future smoker anti- harassment groups to point to "social cost" arguments issue as another form of harassment.1 10) Brief minority and veterans groups on the "social cost" issue and encourage them to take a position. Assist in preparing op-ed pieces, letters to the editor 139 TI DN 0018123

====== CO N FI D E NT I AL ====== 1'IIIS Dl3CL'NiLYT IS ti1;131LCT TO A COURT ORDER AND TIIIS DOCUMENT AND ITS CONTENTS SI3ALL NUI' BE USED. SHOWN OR DISTRIBUTED EXCEPT AS PROVIDED IN THE COURT'S ORDER and developing a series of position statements suggesting "social cost" as a byword for discrimination.i 11) Inspire Congressional request for a new OTA study within proper economic guidelines.1 Strategy 2: Demonstrate that "social cost" arguments can be applied to other industries and generate support from those industries in challenging these arguments.1 Goals : 1) Conduct studies extending "social, cost" research to at least five other industries within three months.1 2) Identify and brief at least five industries on the potential threat of social costs arguments to their businesses within six months.1 Tactics: 1) Extend "social cost" research as applied to smokers to other industries by obtaining estimates from "social cost" economists of potential cost targeted commodities 140 TI DN 0018124

====== CO N FI D E NT I AL ====== 1'IIIS Dl3CL'NiLYT IS ti1;131LCT TO A COURT ORDER AND TIIIS DOCUMENT AND ITS CONTENTS SI3ALL NUI' BE USED. SHOWN OR DISTRIBUTED EXCEPT AS PROVIDED IN THE COURT'S ORDER and developing a series of position statements suggesting "social cost" as a byword for discrimination.i 11) Inspire Congressional request for a new OTA study within proper economic guidelines.1 Strategy 2: Demonstrate that "social cost" arguments can be applied to other industries and generate support from those industries in challenging these arguments.1 Goals : 1) Conduct studies extending "social, cost" research to at least five other industries within three months.1 2) Identify and brief at least five industries on the potential threat of social costs arguments to their businesses within six months.1 Tactics: 1) Extend "social cost" research as applied to smokers to other industries by obtaining estimates from "social cost" economists of potential cost targeted commodities 140 TI DN 0018124

====== CONFIDENTIAL == TIIIS DOCUMENT IS SUBJECT iO A COURT ORDER .\N1) 1111S DOCUMENT AND ITS CONTENTS CHALI NOT BE USED. SIIOWN OR DISTRI6UfED EXCEPT AS PROVIDED IN TIIE COURT'S ORDER impose upon society, i.e., beef, alcohol, sugar, coffee, salt, etc.I 2) Brief target industry association executives on repercussions of potential social cost allegations utilizing "social cost" economist network. If possible, have economists brief peer economists at targeted industries or utilize third party groups, i.e., tobacco grower representatives for briefing with cattlemen's association.1 3) Attempt to organize coalition of business to counter "social cost" claims. Prepare and distribute coalition brochures, newspaper advertisements and video on the issue.1 4) Organize coalition of economists frustrated with abuse of economics in politics. Seek speaking opportunities at economic seminars (see above); interviews with business and economic journaZists.~ Strategy 3: Counter the objective of those using "social cost" claims and maintain tobacco family unity by reinforcing the historic and economic benefit of tobacco in the U.S.Z 141 TI DN 0018125

====== CONFIDENTIAL == TIIIS DOCUMENT IS SUBJECT iO A COURT ORDER .\N1) 1111S DOCUMENT AND ITS CONTENTS CHALI NOT BE USED. SIIOWN OR DISTRI6UfED EXCEPT AS PROVIDED IN TIIE COURT'S ORDER impose upon society, i.e., beef, alcohol, sugar, coffee, salt, etc.I 2) Brief target industry association executives on repercussions of potential social cost allegations utilizing "social cost" economist network. If possible, have economists brief peer economists at targeted industries or utilize third party groups, i.e., tobacco grower representatives for briefing with cattlemen's association.1 3) Attempt to organize coalition of business to counter "social cost" claims. Prepare and distribute coalition brochures, newspaper advertisements and video on the issue.1 4) Organize coalition of economists frustrated with abuse of economics in politics. Seek speaking opportunities at economic seminars (see above); interviews with business and economic journaZists.~ Strategy 3: Counter the objective of those using "social cost" claims and maintain tobacco family unity by reinforcing the historic and economic benefit of tobacco in the U.S.Z 141 TI DN 0018125

CONFIDENTIAL ====== nuS DDCUM2Vr IS SUBIBCT To A CoURT oRDeR AND TfllS DOCUMENT AND ITS CONTENTS SHALL NOT 13[ USED. SU()WN OR DISTRIBUTED EXCEPT.\S PRpVIDED IN TI7E COI:RT'S ORDER Goals: 1) Commission an update study demonstrating the economic impact of tobacco by the end of the year. The last study was completed in 1985 based upon 1983 data.1 2) Sponsor at least one historical celebration, art show or archival collection by the end of the year.1 3) Commission at least two articles that highlight the historical role of tobacco in the U.S. in three months.1 Sactics: 1) Continue to promote Chase study and commission an update demonstrating the impact of tobacco upon the nation's economy.2 2) Commission and aggressively promote articles and research that highlights tobacco's historical role in the U.S.1 3) Support an art show or archival collection demonstrating the historical role of tobacco in the U.S.1 I il, 142 TI DN 0018126

CONFIDENTIAL ====== nuS DDCUM2Vr IS SUBIBCT To A CoURT oRDeR AND TfllS DOCUMENT AND ITS CONTENTS SHALL NOT 13[ USED. SU()WN OR DISTRIBUTED EXCEPT.\S PRpVIDED IN TI7E COI:RT'S ORDER Goals: 1) Commission an update study demonstrating the economic impact of tobacco by the end of the year. The last study was completed in 1985 based upon 1983 data.1 2) Sponsor at least one historical celebration, art show or archival collection by the end of the year.1 3) Commission at least two articles that highlight the historical role of tobacco in the U.S. in three months.1 Sactics: 1) Continue to promote Chase study and commission an update demonstrating the impact of tobacco upon the nation's economy.2 2) Commission and aggressively promote articles and research that highlights tobacco's historical role in the U.S.1 3) Support an art show or archival collection demonstrating the historical role of tobacco in the U.S.1 I il, 142 TI DN 0018126

--_- = CONFIDENTIAL ==___ THIS DOCUhi(:NT IS SUIUC f TO A Cl)IiRT ORDI R•\\D TIiLµ,N OR DOCUMENT AND IfS CONTLENTS SHALL NOT 13E l1SED. SIfO DISTRIBUTED ESCEI'1' AS PROVIDED IN TIfE COURT'S ORDER 4) Serve as corporate sponsor of Normandy Museum demonstrating tobacco's role in World War II.1 5) Promote "heritage" materials in tobacco states to elevate awareness of tobacco's historic role.1 6) Identify historians at major southern universities to write articles of tobacco's role in U.S. history.1 V. Resources A. Staff 1) Management: With the elimination of the Kastenbaum position following his retirement, management has not yet been determined. 2) Division staff: Ross, Panzer, Stuntz, Foley, Lyons, Moran 3) Other staff: State Activities and Federal Relations Divisions, their staffs and legislative counsel 143 TI DN 0018127

--_- = CONFIDENTIAL ==___ THIS DOCUhi(:NT IS SUIUC f TO A Cl)IiRT ORDI R•\\D TIiLµ,N OR DOCUMENT AND IfS CONTLENTS SHALL NOT 13E l1SED. SIfO DISTRIBUTED ESCEI'1' AS PROVIDED IN TIfE COURT'S ORDER 4) Serve as corporate sponsor of Normandy Museum demonstrating tobacco's role in World War II.1 5) Promote "heritage" materials in tobacco states to elevate awareness of tobacco's historic role.1 6) Identify historians at major southern universities to write articles of tobacco's role in U.S. history.1 V. Resources A. Staff 1) Management: With the elimination of the Kastenbaum position following his retirement, management has not yet been determined. 2) Division staff: Ross, Panzer, Stuntz, Foley, Lyons, Moran 3) Other staff: State Activities and Federal Relations Divisions, their staffs and legislative counsel 143 TI DN 0018127

4) Consultants ====== CONFIDENTIAL ====== TUIS DOCUMENT IS SUBJECT TO A COURT ORDER AND TIIIS DOCUMENT AND ITS CONTENTS SUALL NOT 13E USED. SUOW'N OR DISTRIBUTED EXCEPT AS PROVIDED IN TIIE COURT'S ORDER a) Economists --Network coordinated by James Savarese b) Public Relations Counsel to be determined c) Private research firms d) Chase research and consultants e) Legislative Counsel f) Tobacco family consultants g) Tobacco historian/archivist B. Materials 1) Tollison/Wagner book 2) Chase materials 3) Heritage materials 4) Brochures, reprints, seminar proceedings and other printed materials 5) "Social cost" video 144 TI DN 0018128

4) Consultants ====== CONFIDENTIAL ====== TUIS DOCUMENT IS SUBJECT TO A COURT ORDER AND TIIIS DOCUMENT AND ITS CONTENTS SUALL NOT 13E USED. SUOW'N OR DISTRIBUTED EXCEPT AS PROVIDED IN TIIE COURT'S ORDER a) Economists --Network coordinated by James Savarese b) Public Relations Counsel to be determined c) Private research firms d) Chase research and consultants e) Legislative Counsel f) Tobacco family consultants g) Tobacco historian/archivist B. Materials 1) Tollison/Wagner book 2) Chase materials 3) Heritage materials 4) Brochures, reprints, seminar proceedings and other printed materials 5) "Social cost" video 144 TI DN 0018128

====== CONFIDENTIAL --_ TIIIS DOCI;\iLNT IS tiU13JECT TO:\ COURT ORDl:R AND TIiIS DOCUMENT AND ITS CON'fi:NTS SHALL NOI' BE USED. SIIONN OR DISTRIIIUTED EXCEPT AS PROVIDED IN TiIE COURT'S ORDER T1iE TOBACCO INSTITUTE 1988 BUDGET COST CENTER NAME Public Affairs - "Social" Cost Issue No. Account Number Description 5201 Reproduction, Printing & Drafting ..... 6201 Advertising Space & Promotion ......... 7301 Professional Fees..................... 7501 Support of Tob./Other Organizations .. 1987 1987 1988 Budget Estimated Budget 000 ($000) $( 000) - - $170 - - 20 - - 705 140 TOTALS ........................ $1035 The social cost issue budget reflects development and implemenation of an entirel --ogram to manage the issue. 145 TI DN 0018129

====== CONFIDENTIAL --_ TIIIS DOCI;\iLNT IS tiU13JECT TO:\ COURT ORDl:R AND TIiIS DOCUMENT AND ITS CON'fi:NTS SHALL NOI' BE USED. SIIONN OR DISTRIIIUTED EXCEPT AS PROVIDED IN TiIE COURT'S ORDER T1iE TOBACCO INSTITUTE 1988 BUDGET COST CENTER NAME Public Affairs - "Social" Cost Issue No. Account Number Description 5201 Reproduction, Printing & Drafting ..... 6201 Advertising Space & Promotion ......... 7301 Professional Fees..................... 7501 Support of Tob./Other Organizations .. 1987 1987 1988 Budget Estimated Budget 000 ($000) $( 000) - - $170 - - 20 - - 705 140 TOTALS ........................ $1035 The social cost issue budget reflects development and implemenation of an entirel --ogram to manage the issue. 145 TI DN 0018129

TIIIS DDCUMENT IC 1O,SFiDENT[I)AL`U 7_I115=- IFNTS SUALL NUT Ul: USF.U' ~Ill>N'N UR pUCUMENT AND 175 CI\N' AUVIDED IN TUE CUURT'S URUEA DISTRIUUTED EXCEI•T r , THE TOBACCO L..,.ITUTE 1988 BUDGET COST CENTER NAME Public Affairs - "Social" Cost Issue Account #5201 - Re roduction Printin & Dra t nA Reprints of articles, symposium proceedings, etc. Article reprints (5 @ $10,000) Symposium proceedings Miscellaneous brochures Reprints of Heritage articles Chase Econometrics update Video Account #6201 - Advertisin S ace romotion Advertising (political abuse of economics) Account #7301 - Professional Fees PR Counsel Consultants to conduct research, prepare articles, deliver briefings "Social cost" economists (research, articles, briefings) "Social cost" studies (5 @ $30,000) "Social cost" industry case studies (5 @ $30,000) Chase Econometrics update Tobacco historian/archivists 146 No. 1987 1987 1988 Budget Estimated Budget 000 ($000) ($000) - $ 50 - 15 - 20 - 10 - 25 50 $170 $ 20 $ 30 80 150 - - 150 - - 100 - - 25 $170 $705 TI DN 0018130

TIIIS DDCUMENT IC 1O,SFiDENT[I)AL`U 7_I115=- IFNTS SUALL NUT Ul: USF.U' ~Ill>N'N UR pUCUMENT AND 175 CI\N' AUVIDED IN TUE CUURT'S URUEA DISTRIUUTED EXCEI•T r , THE TOBACCO L..,.ITUTE 1988 BUDGET COST CENTER NAME Public Affairs - "Social" Cost Issue Account #5201 - Re roduction Printin & Dra t nA Reprints of articles, symposium proceedings, etc. Article reprints (5 @ $10,000) Symposium proceedings Miscellaneous brochures Reprints of Heritage articles Chase Econometrics update Video Account #6201 - Advertisin S ace romotion Advertising (political abuse of economics) Account #7301 - Professional Fees PR Counsel Consultants to conduct research, prepare articles, deliver briefings "Social cost" economists (research, articles, briefings) "Social cost" studies (5 @ $30,000) "Social cost" industry case studies (5 @ $30,000) Chase Econometrics update Tobacco historian/archivists 146 No. 1987 1987 1988 Budget Estimated Budget 000 ($000) ($000) - $ 50 - 15 - 20 - 10 - 25 50 $170 $ 20 $ 30 80 150 - - 150 - - 100 - - 25 $170 $705 TI DN 0018130

-===== CONFIDENTIAL =_- _ TIIIS DOCUMENT IS SIiUIECT TO A COURT ORDER AND TIIIS DOCUMENT AND Il'S CONTENTS SHALL NOT RE USED. SIIOWN OR DISTRIBUTED EXCEPT AS PROVIDED IN THE COURT'S ORDER r^ST CENTER NAME Public Affairs -"Social" Cost Issue Page 2 No. 1987 1987 1988 Budget Estimated Budget 000 ($000) ($000) Account #7501 - Support of Tobacco & Other rganizat ons "Social cost" symposium - - $ 25 Miscellaneous coalitions - - 50 Archival Exhibition - - 50 Normandy museum 15 , $140 TOTALS .......................... 147 $1035 TI DN 0018131

-===== CONFIDENTIAL =_- _ TIIIS DOCUMENT IS SIiUIECT TO A COURT ORDER AND TIIIS DOCUMENT AND Il'S CONTENTS SHALL NOT RE USED. SIIOWN OR DISTRIBUTED EXCEPT AS PROVIDED IN THE COURT'S ORDER r^ST CENTER NAME Public Affairs -"Social" Cost Issue Page 2 No. 1987 1987 1988 Budget Estimated Budget 000 ($000) ($000) Account #7501 - Support of Tobacco & Other rganizat ons "Social cost" symposium - - $ 25 Miscellaneous coalitions - - 50 Archival Exhibition - - 50 Normandy museum 15 , $140 TOTALS .......................... 147 $1035 TI DN 0018131

====== CONFIDENTIAL - -_ THIS DOCUMENT IS SUR1F.Cr TO A COURT ORDER AND THIS DOCUMENT AND ITS CONTENTS SIIALL NOT DE USED. SHOWN OR DISTRIBUTED EXCEPT AS PROVIDED IN TIIE COl1RT'S ORDER PRODUCTION SEBVICES I. Background In the last quarter of 1985 the Production Services Department (PSD) was reassigned to the Public Affairs Division. The reorganization resulted in redefined staff duties and responsibilities. Consequently, PSD grew more efficient and versatile as a service group to the Institute. PSD is not a separate budgeted cost center. The group provides services to all Institute divisions. These services are then charged to the cost center initiating the project. The Information Center is another department within the division that follows this administrative proceedure. II. Asstmptions o New York, Chicago, Los Angeles and Dallas are centers of graphic design. By comparison, Washington, D.C., has relatively few art studios and printing companies. The responsibility of the Production Services Department (PSD) is to find and utilize the highest quality and most economical services for The Institute's needs in this geographic area. 148 TI DN 0018132

====== CONFIDENTIAL - -_ THIS DOCUMENT IS SUR1F.Cr TO A COURT ORDER AND THIS DOCUMENT AND ITS CONTENTS SIIALL NOT DE USED. SHOWN OR DISTRIBUTED EXCEPT AS PROVIDED IN TIIE COl1RT'S ORDER PRODUCTION SEBVICES I. Background In the last quarter of 1985 the Production Services Department (PSD) was reassigned to the Public Affairs Division. The reorganization resulted in redefined staff duties and responsibilities. Consequently, PSD grew more efficient and versatile as a service group to the Institute. PSD is not a separate budgeted cost center. The group provides services to all Institute divisions. These services are then charged to the cost center initiating the project. The Information Center is another department within the division that follows this administrative proceedure. II. Asstmptions o New York, Chicago, Los Angeles and Dallas are centers of graphic design. By comparison, Washington, D.C., has relatively few art studios and printing companies. The responsibility of the Production Services Department (PSD) is to find and utilize the highest quality and most economical services for The Institute's needs in this geographic area. 148 TI DN 0018132

_: CONFIDENTIALD=` `~ ORDUR Ay TUS.~N OR r •CWR OTISGUSUU.SVSO TIIlS IX7CUMtNT IS SUOJI:CT T~ SIIALL CIfE COURT'S ORUk.R ISC DOCUMLNT~~C~CEMOS~ROVIDEDINDISTRI6UTED ' These needs generally consist of publication design, slide presentations, photography, printing and mailing services. Special projects are addressed as they are assigned. o Communicating with Institute staff on projects is an important area. Projects, regardless of complexity, require as much initial input as they do follow through. 0 Deadlines need to be agreed upon and met. Each stage of the production process involves careful planning and managing in terms of time and budget. Streamlining all phases is necessary. o Production of printed materials for allied organizations - as part of the coalition process - increased by an estimated 40% in 1987. By providing project management, we are able to support these groups in a variety of ways. o A total of $700,000 was spent on the production of graphics in the first six months of 1987. Most of these monies supported major projects such as: - The National Tobacco Council Legislative Mobilization Packages - Helping Youth Say No 149 TI DN 0018133

_: CONFIDENTIALD=` `~ ORDUR Ay TUS.~N OR r •CWR OTISGUSUU.SVSO TIIlS IX7CUMtNT IS SUOJI:CT T~ SIIALL CIfE COURT'S ORUk.R ISC DOCUMLNT~~C~CEMOS~ROVIDEDINDISTRI6UTED ' These needs generally consist of publication design, slide presentations, photography, printing and mailing services. Special projects are addressed as they are assigned. o Communicating with Institute staff on projects is an important area. Projects, regardless of complexity, require as much initial input as they do follow through. 0 Deadlines need to be agreed upon and met. Each stage of the production process involves careful planning and managing in terms of time and budget. Streamlining all phases is necessary. o Production of printed materials for allied organizations - as part of the coalition process - increased by an estimated 40% in 1987. By providing project management, we are able to support these groups in a variety of ways. o A total of $700,000 was spent on the production of graphics in the first six months of 1987. Most of these monies supported major projects such as: - The National Tobacco Council Legislative Mobilization Packages - Helping Youth Say No 149 TI DN 0018133

CONFIDENTIAL ==__= TFSIS DOCUMENT IS SUBJECT TO A COURT ORDER AND TIIIS DOCUMENT AND ITS CONTENTS SHALL NOT BE USED. SI1OWN OR DISTRIBUTED EXCEPT AS PROVIDED IN TUI: COURT'S ORDER - Workplace smoking assistance booklets and kits - ACVA presentation packages - Transcribing and video taping our hearings o Large contracts with vendors are based on competitive bidding proposals. o The graphic arts industry is constantly growing in the areas of computer graphics and new product developments. PSD keeps in touch with these advancements.by regularly reviewing vendors and their specialty services. Desk top publishing is an area that we will continue to explore in 1988. III. Objective Produce high quality, graphic materials in a timely and economic manner. IV. Strategies, Goals and Tactics Strategy I: Increase TI staff knowledge of PSD capabilities and guidelines related to the production of graphics and publications, as a means of gaining their help in containing costs and ensuring quality.2 150 TI DN 0018134

CONFIDENTIAL ==__= TFSIS DOCUMENT IS SUBJECT TO A COURT ORDER AND TIIIS DOCUMENT AND ITS CONTENTS SHALL NOT BE USED. SI1OWN OR DISTRIBUTED EXCEPT AS PROVIDED IN TUI: COURT'S ORDER - Workplace smoking assistance booklets and kits - ACVA presentation packages - Transcribing and video taping our hearings o Large contracts with vendors are based on competitive bidding proposals. o The graphic arts industry is constantly growing in the areas of computer graphics and new product developments. PSD keeps in touch with these advancements.by regularly reviewing vendors and their specialty services. Desk top publishing is an area that we will continue to explore in 1988. III. Objective Produce high quality, graphic materials in a timely and economic manner. IV. Strategies, Goals and Tactics Strategy I: Increase TI staff knowledge of PSD capabilities and guidelines related to the production of graphics and publications, as a means of gaining their help in containing costs and ensuring quality.2 150 TI DN 0018134

--==== CONFIDENTIAL =_____ THIS DOCUMENT IS SUUIECT TO A COURT ORDER AND THIS U STR DUTEU EXCEr~ CONTENTS PROVIDED IN TIDIE COURT S ORDFR OR Goals and Tactics: 1) Stress to staff that PSD must be informed, well in advance, of upcoming conferences, projects, etc., that require visual support. Require written directions and time table on all assignments, time permitting. PSD will negotiate reasonable deadlines and plan to meet 100% of them. 2) Involve and apprise clients at everq'stage of each project. All stages will require signature and date of responsible staff before proceeding to next step. 3) All completed projects will be reviewed by PSD staff and clients to determine that project needs were satisfied. A record of the meeting will be filed in the job jacket. 4) Continue publication cost/quality recaps and distribute to clients on a timely basis. 5) Distribute to all staff information on any new capabilities that PSD has acquired either in house or through outside resources, within two weeks of acquisition.t 151 TI DN 0018135

--==== CONFIDENTIAL =_____ THIS DOCUMENT IS SUUIECT TO A COURT ORDER AND THIS U STR DUTEU EXCEr~ CONTENTS PROVIDED IN TIDIE COURT S ORDFR OR Goals and Tactics: 1) Stress to staff that PSD must be informed, well in advance, of upcoming conferences, projects, etc., that require visual support. Require written directions and time table on all assignments, time permitting. PSD will negotiate reasonable deadlines and plan to meet 100% of them. 2) Involve and apprise clients at everq'stage of each project. All stages will require signature and date of responsible staff before proceeding to next step. 3) All completed projects will be reviewed by PSD staff and clients to determine that project needs were satisfied. A record of the meeting will be filed in the job jacket. 4) Continue publication cost/quality recaps and distribute to clients on a timely basis. 5) Distribute to all staff information on any new capabilities that PSD has acquired either in house or through outside resources, within two weeks of acquisition.t 151 TI DN 0018135

====== CONFIDENTIAL =__ TIIIS DOCUMI:NT IS S1:131F.CT 10 A COURT ORDER AND I IIIS DOCUMENT AND ITS CONTENTS SIIALL NOr 13E USED. SHOWN OR DISTRIBUTED EXCEPT AS PROVIDED IN TIiE COURT'S ORDER 6) On the first of every other month, issue a publication inventory for all cost centers. Distribute to appropriate personnel. 7) Update and issue publication list bi-monthly to maintain maximum use of publications by member companies and the general public. 8) Coordinate new publication release mailings with appropriate support staff for distribution.2 9) Support TI staff on audio-visual aids. Update and maintain equipment as necessary. 10) As a means of measuring quality, enter selected T.I. publications in awards competitions. Strategy II: Require vendors to ensure high quality output on a timely basis with minimal costs. Goals and Tactics: 1) Conduct bi-annual review of vendors in: typography, design, photography, printing and mailing. Maintain profiles of each company in PSD files. 152 TI DN 0018136

====== CONFIDENTIAL =__ TIIIS DOCUMI:NT IS S1:131F.CT 10 A COURT ORDER AND I IIIS DOCUMENT AND ITS CONTENTS SIIALL NOr 13E USED. SHOWN OR DISTRIBUTED EXCEPT AS PROVIDED IN TIiE COURT'S ORDER 6) On the first of every other month, issue a publication inventory for all cost centers. Distribute to appropriate personnel. 7) Update and issue publication list bi-monthly to maintain maximum use of publications by member companies and the general public. 8) Coordinate new publication release mailings with appropriate support staff for distribution.2 9) Support TI staff on audio-visual aids. Update and maintain equipment as necessary. 10) As a means of measuring quality, enter selected T.I. publications in awards competitions. Strategy II: Require vendors to ensure high quality output on a timely basis with minimal costs. Goals and Tactics: 1) Conduct bi-annual review of vendors in: typography, design, photography, printing and mailing. Maintain profiles of each company in PSD files. 152 TI DN 0018136

__--== CONFIDENTIAL - THIS DOCUMENT IS SUBJECT TO A COURT ORDER AND MIS D R OUTED EXCEPT AS PROVI ED IN T{1E COURT'4 ORDERN OR 2) Produce written estimates for staff on any project involving design and printing. 3) Have comprehensive bids submitted on projects that will exceed $10,000. Budget or time restraints must be discussed and approved by initiating client, in advance to exempt a project from bidding. 4) Where appropriate., initiate contract agreements with vendors pertaining to the production of specific publications. Several publication series are already under contract: state data cards, heritage series and issue topic brochures. Develop a similar arrangement for the [revised) Tobacco Observer.1 5) Produce and maintain production schedules on all projects. Coordinate projects with designers, printers and TI clients. 6) Devise and maintain a written evaluation form for each project. After completion of a project, review with client design and printing quality and procedures. File and feed back all problems, recommended changes, criticisms or praises to appropriate vendor. 153 0018137 TI DN

__--== CONFIDENTIAL - THIS DOCUMENT IS SUBJECT TO A COURT ORDER AND MIS D R OUTED EXCEPT AS PROVI ED IN T{1E COURT'4 ORDERN OR 2) Produce written estimates for staff on any project involving design and printing. 3) Have comprehensive bids submitted on projects that will exceed $10,000. Budget or time restraints must be discussed and approved by initiating client, in advance to exempt a project from bidding. 4) Where appropriate., initiate contract agreements with vendors pertaining to the production of specific publications. Several publication series are already under contract: state data cards, heritage series and issue topic brochures. Develop a similar arrangement for the [revised) Tobacco Observer.1 5) Produce and maintain production schedules on all projects. Coordinate projects with designers, printers and TI clients. 6) Devise and maintain a written evaluation form for each project. After completion of a project, review with client design and printing quality and procedures. File and feed back all problems, recommended changes, criticisms or praises to appropriate vendor. 153 0018137 TI DN

IV. Resources nnsppCUMENr SCONF~IDENTIDALOTHIS __ IwCUMENT AND ITS ~` DISTRI6UTeD e CONT[NTS SHA,,N XCEPT qg pROVIDED IN TI ETCOURT S ORDER OR A. Staff 1) Production Services: Dedick, Nordahl, Davis 2) Public Affairs: Baumann, Miller, Myers, Richman, Pinkney, Stark 4) 3) Administration: Coulton, Dieman, Evans, Grays, Hilderley, Jones, Miller, Ott Vendors: Typographers, Design Studios, Freelancers, Photographers, Printers and Mailers 5) Clients: TI staff, other supportive organizations B. Materials 1) Supplies for in-house equipment: wax, cartridges and type wheels for Xroy, paper and film for Video-Show, miscellaneous drawing supplies and tools. 2) Files: Photo, Slide, Art and Publication 154 TI DN 0018138

IV. Resources nnsppCUMENr SCONF~IDENTIDALOTHIS __ IwCUMENT AND ITS ~` DISTRI6UTeD e CONT[NTS SHA,,N XCEPT qg pROVIDED IN TI ETCOURT S ORDER OR A. Staff 1) Production Services: Dedick, Nordahl, Davis 2) Public Affairs: Baumann, Miller, Myers, Richman, Pinkney, Stark 4) 3) Administration: Coulton, Dieman, Evans, Grays, Hilderley, Jones, Miller, Ott Vendors: Typographers, Design Studios, Freelancers, Photographers, Printers and Mailers 5) Clients: TI staff, other supportive organizations B. Materials 1) Supplies for in-house equipment: wax, cartridges and type wheels for Xroy, paper and film for Video-Show, miscellaneous drawing supplies and tools. 2) Files: Photo, Slide, Art and Publication 154 TI DN 0018138

_____= CONFIDENTIAL =_____ THIS DOCUMENT IS SUBJECT TO.\ COURT ORDER AND THIS DOCUMENT AND ITS CONTENTS SHALL NOT BE USED. SHOWN OR DISTRIBUTED EXCEPT AS PROVIDED IN Tt1E COURT'S ORDER PART II TI DN 0018139 ir 1

_____= CONFIDENTIAL =_____ THIS DOCUMENT IS SUBJECT TO.\ COURT ORDER AND THIS DOCUMENT AND ITS CONTENTS SHALL NOT BE USED. SHOWN OR DISTRIBUTED EXCEPT AS PROVIDED IN Tt1E COURT'S ORDER PART II TI DN 0018139 ir 1

CONFIDENTIAL ===__ 1~~~5 DOCUMENT IS SUB1E(,T TO n ~'OURT ORDER AND TIIIS DpCUME4T AND ITS CONTENTS SHAI! N07 BE USED. SHpWN OR DISTRIBUTED EXCEPT AS PROVIDED IN THE COURT'S ORDER PART II ~s noted in the budget summary, the expenses we believe are iecessary to get the job done in 1988 represent a 77 percent increase over projected expenses for 1987. We recognize that =his is an unrealistic increase. Therefore,-following are reductions that can be made to bring our 1988 non-administrative axpenses even with projected expensea in 1987. ------ ------------ 1987-------------- --------- 1988-------- budgeted projected actual proposed % change 11,382 11,505 20,386 77% General Administration - 1301 Account 07301 - Professional Fees Roper Reports $ 45 Scientific Affairs - 1302 Account #7301 - Professional Fees Scientific Witnesses $ 700 (Transfer funds to division responsible for incurring the expenses) Media Relations - 1303 Account #7301 - Professional Fees PR counsel in key markets $ 150 Excise Taxes - 1305 Account #6201 - Advertising Federal advertising campaign $ 500 State campaigns 250 Account #7501 - Support to Tobacco ~ Other Organizations State tax reform coalitions (33%) 25 State tax reform conferences (33%) 15 155 TI DN 0018140

CONFIDENTIAL ===__ 1~~~5 DOCUMENT IS SUB1E(,T TO n ~'OURT ORDER AND TIIIS DpCUME4T AND ITS CONTENTS SHAI! NOT BE USED. SHpWN OR DISTRIBUTED EXCEPT AS PROVIDED IN THE COURT'S ORDER PART II ~s noted in the budget summary, the expenses we believe are iecessary to get the job done in 1988 represent a 77 percent increase over projected expenses for 1987. We recognize that =his is an unrealistic increase. Therefore,-following are reductions that can be made to bring our 1988 non-administrative axpenses even with projected expensea in 1987. ------ ------------ 1987-------------- --------- 1988-------- budgeted projected actual proposed % change 11,382 11,505 20,386 77% General Administration - 1301 Account 07301 - Professional Fees Roper Reports $ 45 Scientific Affairs - 1302 Account #7301 - Professional Fees Scientific Witnesses $ 700 (Transfer funds to division responsible for incurring the expenses) Media Relations - 1303 Account #7301 - Professional Fees PR counsel in key markets $ 150 Excise Taxes - 1305 Account #6201 - Advertising Federal advertising campaign $ 500 State campaigns 250 Account #7501 - Support to Tobacco ~ Other Organizations State tax reform coalitions (33%) 25 State tax reform conferences (33%) 15 155 TI DN 0018140