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CONFIDFNTIAL: MINNESOTA TOBAC C O LITIGATION COMMENTS Peter G. Sparber Public Affairs Division Board of Directors The Tobacco I nstitute December 10, 1987 TIMN 0014369

CONFIDENTIAL: MINNESOTA TOBACCO LITIGATION TH IS PAST YEAR ... TH E PU BLIC AFFAI RS DIVISION WORKED HARD TO DEMONSTRATE .:. TO TH E PU BLIC AN D TO KEY DECISION MAKERS ... THAT EXCISE TAXES ARE REGRESSIVE ... THAT AD BANS ARE U NCONSTITUTIONAL ... THAT TH E TOBACCO INDUSTRY IS CONCERNED ABOUT ACCI DENTAL F1 RES ... AN D THAT ENVI RON M ENTAL TOBACCO SMOKE IS BUT ONE SMALL COMPONENT OF INDOOR AIR QUALITY. TIMN 0014370

3 CONFIDENTIAL: MINNESOTA TOBACCO LITIGATION FOR 1988, WE W! LL CONTI N U E TO PUSH THESE IMPORTANT MESSAGES ... EXPANDING ON OUR . PU BLIC COM M U N ICATION EFFORTS AND PREPARING THE AMMUNITION N EEDED TO RESPON D TO ANTICIPATED SHIFTS IN THE ANTI-SMOKERS' STRATEGIES. WE WILL CONTINUE ... AND EXPAN D... OU R EFFORTS TO RAISE THE VISIBILITY OF OUR PROGRAMS TH ROUGH M EDIA TOU RS -- AS MANY AS TEN PER MONTH -- AS WELL. AS WITH INCREASED USE OF VIDEOS AND TARGETED ADVERTISING. TIMN 0014371

4 CONFIDEI(TIAL: MINNESOTA TOBACCO LITIGATION WE WI LL MOVE AH EAD WITH OU R SUCCESSFUL COALITION BUILDING EFFORTS. THIS MORNING ... I WOULD LIKE TO SHARE WITH YOU SOME OF THE HIGHLIGHTS OF OUR DIVISION'S 154 PAGE OPERATING PLAN FOR 1988. (pause) THE TAX -ISSUE WILL, OF COURSE, REMAI N A PRIORITY 1 N 1988. TIMN 0014372

5 CONFIDENTIAL: MINNESOTA TOBACCO LITIGATION WE WI LL CONTI N U E TO SU PPORT OU R FEDERAL LEGISLATIVE EFFORT THROUGH THIRD PARTY COMMUNICATIONS, AND WITH THE USE OF VI DECOS AN D TARGETED ADVERTISING. AT TH E SAM E T1 M E, WE WI LL MOVE OUR COALITION EFFORTS TO THE STATE LEVEL. WE HAVE ASKED FOR FU N DI NG TO EXPLORE ESTABLISH M ENT OF ORGAN IZATIONS SUCH AS CART AND CITIZENS FOR TAX JUSTICE IN STATES I DENTI FI ED AS PRIORIT! ES BY TH E STATE ACTIVITIES DIVISION. TIMN 0014373

6 CONFIDENTIAL: MINNESOTA TOBACCO LITIGATION WE WI LL EXPAN D TH E ACTIVITI ES OF OU R N ETWCJRK OF ECONOMISTS I N THOSE STATES, TO I NCLU DE ADDITIONAL OP-ED Pf ECES, EDITORIAL BRI EFf NGS AN D ACADEM IC CON FERENCES I N TARGETED STATES. TIMN 0014374

7 CONFIDENTIAL: MINNESOTA TOBACCO LITIGATION WE EXPECT THAT ANTI-SMOKERS WI LL TAKE ANOTH ER RU N AT ELI M I NATI NG TH E FAVORABLE PRICE STRUCTU RE CIGARETTES ENJOY I N M I LITARY COM M ISSARI ES. THEREFORE ... WE WILL LAUNCH A MEDIA TOUR BY A MILITARY SPOKESPERSON ... TO BRI NG HOM E TH E M ESSAGE THAT EFFORTS TO CHANGE THE PRICE STRUCTURE OF CIGARETTES AT M I LITARY COM M ISSARI ES REMOVES A BEN EFIT FOR THE SERVICEMAN. (pause) TIMN 0014375

8 CONFIDENTIAL: MINNESOTA TOBACCO LITIGATION JUST AS EXCISE TAXES REMAINS ... OUR MOST IMMEDIATE PRIORITY THE PUBLIC SMOKING/INDOOR AIR QUALITY ISSU E IS OU R TOP LONG RANGE CHALLENGE. THIS YEAR WE WERE SUCCESSFUL IN BROADEN 1 NG TH E iSSU E TO OVERALL I N DOOR A1 R QUALITY BEFORE CERTAIN AUDIENCES ... MOST NOTABLY LABOR. WE WI LL CONTINUE TO EXPAND THOSE EFFORTS IN 1988 ... THROUGH SUPPORT OF THIRD PARTY ORGANIZATIONS SUCH AS THE NATIONAL EN ERGY MANAGEM ENT INSTITUTE. TIMN 0014376

9 CONFIDENTIAL: MINNESOTA TOBACCO LITIGATION WE ARE INCREASING THE NUMBER OF MEDIA TOURS EACH MONTH TO I NCLU DE ADDITIONAL TOU RS BY VENTILATION CONSULTANT GRA`( ROBERTSON, TWO BY TRUTH SQUAD SCf ENTISTS, TWO BY LEGAL CONSULTANTS AND TWO BY SCIENTIFfC CONSULTANT ALAN KATZENSTEIN. WE HAVE JUST FINISHED TESTING ADS WHICH WE PLAN TO DISCUSS AT TH E JAN UARY M EETI NG OF TH E EXECUTIVE COMMITTEE. TIMN 0014377

10 CONFIDENTIAL: MINNESOTA TOBACCO LITIGATION WE ALSO WI LL EXPAN D OU R EFFORTS TO REACH COMPANIES THAT MIGHT BE CONS! DERI NG SMOKI NG RESTRICTIONS ... TO 50,000 PER QUARTER. I N TH E FI RST QUARTER ... WE WI LL LAU NCH A N EW OUTREACH PROGRAM FOR THE HOSPITALITY I N DUSTRY ... TO DEMONSTRATE TO RESTAU RATEU RS AN D HOTEL AN D MOTEL OPERATORS THAT SMOKERS ARE A SIGN I FICANT PORTION OF TH EI R CLI ENTELE WHO WI LL GC) OUT OF THEIR WAY TO PATRONIZE BUSINESSES THAT MAKE THEM FEEL WELCOME. TIMN 0014378