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CONFIDENTIAL: MINNESOTA TOBACCO LITIGATION JOINT MEFTING NATIONAL TRADE ASSOCIATIONS - ICOSI I Z.UR I CH , MAY 20-23, 19.79 SUBJECT: COUNTERMEASURES DEVELOPMENT PROGRAM SPEAKER: MR. RICHARD M. CORNER, PHILIP MORRIS EUROPE S.A, WEDNESEAY, MAY 23 : 10,45 - 11.30 A,M, ~ MR. CHAIRMAN, LADIES AND GENTLEMEN. THANK YOU VERY NUCH DENNIS FOR YOUR KIND AND SYMPATHETIC INTRO- DUCTION. BRIEF AND VERY MUCH TO THE POINT. INTRODUCTIONS SIOULD BE BRIEF, EARLIER THIS CENTURY, THERE WAS A BRILLIANT ENGLISH BARRISTER AND POLITICIAN CALLED LORD BIRKENHEAD, HE WENT UP TO THE NORTH OF ENGLAND TO ADDRESS A POLITICAL MEETING IN SUPPORT OF THE LOCAL PARLIAMENTARY CANDIDATE - AND THIS IS A TRUE STORY,`-THE CANDIDATE GAVE AN INTERMINABLY LONG INTRODUCTION TO LORD BIRKENHEAD - IT WENT ON AND ON FOR ABOUT HALF AN HOUR. FINALLY, HE GOT TO THE END AND SAID :"AND NOW, I AM PROUD AND PRIVILEGED TO INTRODUCE TO YOU LORD BIRKENHEAD, WHO WILL GIVE YOU HIS ADDRESS~~ TIMN 0156508 LORD BIRKENHEAD, WHO BY THIS TIME WAS QUITE PURPLE WITH RAGE BE- CAUSE OF THE EXCESSIVELY LONG INTRODUCTION, STRODE TO THE MICRO- PHONE AND SAID :"MY ADDRESS IS 36 CADOGAN SQUARE, LONDON". AND PROMPTLY LEFT THE PLATFORM AND TOOK THE NEXT TRAIN BACK TO LONDON,

CONFIDENTIALo MINNESOTA TOBACCO LITIGATION ` -2- DURING THE COURSE OF THIS CONFERENCE, SOMEONE MADE THE REMARK THAT THE MOST EMOTIVE WORD IN THE ENGLISH LANGUAGE IS THE BIG "C" FOR CANCER, THAT MAYBE TRUE, BUT DURING THIS CONFERENCE THE MOST OFTEN QUOTED WORD IN THE ENGLISH LANGUAGE HAS BEEN THE BIG "C" FOR COUNTER- MEASURES, IN TALKING TO YGU THIS MORNING ABOUT THE DEVELOPMENT OF SOCIAL ACCEPTABILITY COUNTERMEASURES, I WANT FIRST TO GO BACK TO THE BE- GINNING AND TO PICK UP FROM PART OF DENNIS DURDEN'S PRESENTATION OF MONDAY MORNING WHERE HE BROACHED THE SUBJECT OF COUNTERMEASURES, . THEN, I SHALL Tl:LL YOU THE PLANS THAT WE HAVE FOR DEVELOPING NEW COUNTERMEASURES, IN A COOPERATIVE VENTURE WITH THE TRADE ASSOCIA- TIONS. COUNTERMEASURES ARE THE WORDS WE USE'TO DESCRIBE'OUR RESPONSES TO THE ATTACKS MADE ON US. As WE HAVE SEEN IN THE PRESENTATIONS GIVEN DURING THIS CONFERENCE, THE NATIONAL ASSOCIATIONS ARE THE KEYS TO COUNTERMEASURES. THERE HAVE, OF COURSE, BEEN SOME INDIVIDUAL COMPANY EFFORTS, BUT WHERE YOU FIND STRONG COUNTERMEASURES. YOU FIND STRONG ASSOCIATIONS, PND AGAIN. AS WE HAVE SEEN HERE, WE FIND THAT THERE HAS BEEN AN ENORMOUS AMOUNT OF INNOVATION, REALLY CREATIVE THINGS THAT HAVE BEEN DONE. REALLY IMAGINATIVE PROGRAMS THAT HAVE COME FORWARD FROM THE ASSOCIATIONS. TIMN 0156509 WHAT ARE THE K:NDS OF COUNTERf•1EASURES THAT HAVE BEEN UNDERTAKEN? THERE ARE MANY DIFFERENT COUNTRY-BY-COUNTRY COUNTERMEASURES, BUT

CONFIDENTIAI,: MINNESOTA TOBACCO LITIGATION -3- AS DENNIS POINTr=D OUT, PERHAPS THERE ARE FIVE BASIC VARIETIES OF COUNTERMEASURES THAT THE INDUSTRY AND THE ASSOCIATIONS HAVE TAKEN, FIRST OF ALL, THERE IS THE LOBBYING OF PEOPLE WHO MAKE LAWS, THE MOST BASIC KIND OF COUNTERMEASURES, THE MOST TRADITIONAL AND THE ONE THAT IS MOS" WIDESPREAD, WE ALSO LOBBY THE BUREAUCRATS, THOSE WHO ARE ENTRUSTED WITH TRANS- LATING LAWS INTO REGULATIONS. WE HAVE SEEN COUNTERMEASURES THAT ARE DESIGNED TO MOBILIZE THE TOBACCO FAMILY. AND THE WORD "FAMILY" HERE IS USED WITH THE WIDEST CONNOTATIONS, WE HAVE SEEN SOME EXCELLENT EXAMPLES OF COUNTERMEASURES DESIGNED TO WIN REFERENDUMS, TIMN 0156510 WE MUST ALSO SP,:AK'DIRECTLY TO'PUBLIC OPINION. BEFORE WE ARE ABLE TO TALK TO LAWM;IKERS. TO TALK TO REGULATORS, TO TALK TO OURSELVES - BUT NOW WE MUST GO OUT AND DIRECTLY'INFLUENCE PUBLIC OPINION. AND HERE IS THE SLIDE THAT DENNIS PRODUCED ILLUSTRATING THE CONFUSED WORLD THAT IS TODAY, IN WHICH THE ANTIS ARE TALKING DIRECTLY TO THE PUBLI C: THE PU?3LI C I S QUESTI ON I NG THE I NDUSTRY. AND WE MUST BEG I N NOW WITH COUNTE1;MEASURES DIRECTED TOWARDS THE GENERAL PUBLIC : WE MUST ALSO HAVE c;OUNTERMEASURES GOING DIRECTLY TO THE ANTIS, WE CAN NO LONGER IGNORI: THEM : AND MEANWHILE WITH RESTRICTIONS COMING UP

, CONFIDENTIAL: MINNESOTA TOBACCO LITIGATION -4- FROM GOVERNMENT_ WE CONTINUE OUR LOBBYING COUNTERMEASURES WITH GOVERNMENT : ANi) BETWEEN GOVERNMENT AND THE ANTIS, THERE IS NOW MUTUAL SUPPORT IN MANY COUNTRIES. IT IS HARD TO TELL THE ANTIS FROM CERTAIN BR;~NCHES OF GOVERNMENT, THAT'S THE REASON WHY THE INDUSTRY HAS HAi) TO START ATTACKING THE ANTIS DIRECTLY WITH COUNTER- MEASURES, AND FINALLY, THERE IS ANOTHER NUANCE THAT THE PUBLIC IS BEGINNING TO ACCEPT EDUCATION AND RESTRICTIONS, S0, THIS IS TODAY'S WORLD - AND THI`; IS WHY WE NEED MORE AND VIGOROUS'COUNTERMEASURES AND WHY WE NEED INNOVATION, WHEN WE CONSIDEI: NEW COUNTERMEASURES, WHAT KIND OF THINGS DO WE NEED TO DO ? WE NEED TO"STRENGTHEN THE FAMI LY. WE NEED TO HAVE A STRONG BASE AND IF WE CANNOT STAND UP AND SPEAK FOR OURSELVES, NO- BODY IS GOING TO DO IT FOR US. WE MUST ASSIST "HE'SMOKER, OUR CUSTOMER IS OUT THERE IN THE REAL WORLD AND HE'S NOT QUITE CERTAIN HOW HE SHOULD BEHAVE, HE'S NOT CERTAIN WHAT IS SOCIALLY ACCEPTABLE. WE MUST REASSURE HIM AND ASSIST HIM. WE NEED VERY MUCH TO SEPARATE THE ANTI-SMOKERS FROM THE NON-SMOKERS, ANi) KEEP MORE NON-SMOKERS FROM BECOMING ANTIS, WE MUST FIND NEW WAYS TO RESEARCH NEW FACTS FOR GOVERNMENTS TO HELP US, WE MUST INFLUENc:E THE'PUBLIC DTRECTLY, 14E MUST DISCREDIT THE ANTIS, TIMN 0156511

Arp .so C® To~AC~I~`i": ® LITIGATION -5- 14E SHOULD TAKE -HE FIGHT WE HAVE AND THE CHALLENGES WE ARE FACING AS AN INDUSTRY AND LINK'THEM INTO MAJOR PUBLIC CONCERNS : FOR EXAMPLE, FREEDOM OF THE INDIVIDUAL IN THE FACE OF INCREASING GOVERN- MENT INTERFERENCE IN HIS LIFE, IN THESE SLIDES SHOWING THE PRIORITIES IN SOCIAL ACCEPTABILITY AS ~ SEEN BY THE WORKING PARTY, WE COME TO THE NEED FOR NEW COUNTER- MEASURES, LEADING INTO THE STRENGTHENING OF THE PROGRAMS OF THE ASSOCIATIONS, As DENNIS DURDEN SAID ;"THE ONE GOAL THAT WE SEE -IN THE SOCIAL ACCEPTABILITY WORKING PARTY, THE ONE REASON WE HAVE BEEN CARRYING OUT THE VARIOUS PROJECTS AND STUDIES, IS TO STRENGTHEN THE UNDER- STANDING THAT W!: HAVE OF WHAT WE ARE UP AGAINST, BUT IN THE END, WE MUST STRENGTHEN THE ASSOCIATIONS' CAPABILITIES TO LAUNCH PRO- GRAMS AND COUNTI:RMEASURES, AND TO DO THIS, THE GOAL IS TO PROVIDE THE MAXIMUM COUNTERMEASURE'ASSISTANCE'FROM ICOSI, NOW. HOW DO WE 'PROPOSE TO PROVIDE THIS ASSISTANCE ? TIMN 0156512. WITHIN THE SOCII',L ACCEPTABILITY WORKING PARTY, WE ARE FORMING A NEW ICOSI COUNTERME^,SURES DEVELOPMENT TASK FORCE, WITH MEMBERS DRAWN FROM THE ASSOCI;`,TIONS', THE ICOSI SECRETARIAT AND FROM ICQSI MEMBER COMPANIES AND FFOM THE EXISTING WORKING PARTY, 1'rHAT WE PLAN TO DO IS TO CARRY OUT AN ANALYSIS WITH THE ASSOCIATIONS BETWEEN NOW AND THE END OF JUNE. THE AIM WILL BE TO CLARIFY WHAT

CONFIDENTIAL: MINNESOTA TOBACCO I,ITIGATION' -6- COUNTERMEASURES ACTIVITY HAS ALREADY BEEN UNDERTAKEN, AND TO FIND OUT, FROM THE ASSOCIATIONS. WHAT KIND OF NEW COUNTERMEASURES YOU WOULD BE MOST INTERESTED-IN SEEING DEVELOPED, AND ALSO TO TAKE INTO ACCOUNT ANY SPEc;IFIC 'REQUESTS YOU MIGHT HAVE, WE WILL ALSO ASK FOR VOLUNTEERS TO Sl:RVE ON THE 'TASK FORCEMITHOUT PRE-EMPTING THE DE- CISION OF THE T;~SK FORCE, THE PROBABLE APPROACH WE INTEND TO TAKE It TO THE DEVELOPM!:NT OF NEW COUNTERMEASURES IS A 3-STEP-PROCESS, STEP ONE BEI NG :NHr1T ARE THE I SSUES YOU WANT TO ADDRESS," HELP I N IDENTIFYING THE ISSUES THAT ARE PROBLEMS CAN COME FROM GOING THROUGH THE OPINION STUI)Y DATA, STEP 2 WILL BE ;"l°IITHIN AN ISSUE, WHAT ARE THE POINTS YOU WOULD LIKE TO MAKE, WHAT ARE THE MESSAGES YOU WANT TO PRESENT"? STEP =i WILL BE :°FINDING THE BEST MEANS TO PRESENT THEM," THEN, IN .JULYAND AUGUST, THE TASK FORCE WILL MEET TO PLAN FOR A COUNTERMEASURE UORKSHOP THAT WILL TAKE PLACE IN OCTOBER AND TO WHICH ALL ASSOCIATIONS WILL BE INVITED, THE ISSUES FOR WHICH COUNTER- MEASURES ARE TO BE DEVELOPED WILL BE SELECTED FROM THE INFORMATION SUPPLIED BY THE ASSOCIATIONS, IT IS MOST LIKELY THAT IN MAKING THIS SELECTION, WE W:LL FOLLOW THE CRITERIA OF FINDING THOSE THAT ARE BOTH TOP'OF'THE LIST-FOR URGENCY AND COMMON TO AS MANY ASSOCIATIONS AS POSSIBLE. IF OUTSIDE"CONSULTANTS WILL BE NEEDED FOR THE WORKSHOP, THEY WILL BE SEf_ECTED, IT COULD WELL BE THAT THE "EXPERTS" WHO COULD GIVE THE BEST HI:LP. W_ILL COME FROM WITHIN THE ASSOCIATIONS OR THE INDUSTRY, TIMN 0156513 VIE WILL PRESENT THE PROGRAM`TO THE FULL SOCIAL ACCEPTABILITY 14ORKING PARTY AT ITS SUMMER MEETING AND THIS PROGRAM WILL BE SENT AROUND TO ALL THE ASSOCIAfIONS,

CONFIDENTIAL: MINNESOTA TOBACCO LITIGATION -7- BECAUSE OF TIMING AND NOT NECESSARILY IN THE BEST INTERESTS OF LONG- RANGE PLANNING. WE WILL ALSO AT THE SAME TIME HAVE TO FIGURE OUT A PRELIMINARY BUDGET FOR"1980, A BUDGET FOR 1979 IS ALREADY ASSURED, IN SEPTEMBER, WE WILL MAKE A PROGRESS REPORT TO THE ICOSI EXECUTIVE COMMITTEE MEETIVG IN SCOTTSDALE, ARIZONA, USA, AND WE WILL SUBMIT A BUDGET'REQUESf FOR 1980, IN OCTOBER, WE WILL HAVE THE FIRST OF THE COUNTERMEASURE WORKSHOPS, PURELY ARBITRAR:LY, I HAVE FIXED A DATE OF THURSDAY AND FRIDAY, OCTOBER 25 AND 26, 1979 - BUT THIS CAN BE CHANGED IF THERE ARE ANY MAJOR CLASHES, :T WILL TAKE PLACE IN THE ICOSI OFFICE. BRUSSELS',-WHICH HAS PLENTY OF SPACE AND A LARGE CONFERENCE ROOM. THIS WORKSHOP WILL BE A REAL WORKSHOP, A WORKING MEETING, THE TASK FORCE WILL PRESI-NT THE WORK THAT WILL HAVE BEEN DONE ON THE SELECTED ISSUES. TOGETHER WITH WHATEVER CONSULTANTS WILL NAVE BEEN ENGAGED, THEN, FOLLOWING THIS, WE WILL BE REVIEWING THE PROGRESS MADE AND THE EXPERIENCE GAINED SO FAR, ASSESSING WITH THE ASSOCIATIONS THE NEEDS FOR 1980, AND PREPARING A DETAILED PROGRAM FOR 1980, S0. THAT'S THE BASIC OUTLINE PROGRAM FOR THE DEVELOPMENT OF COUNTER- MEASURES, THERE yAY WELL BE MODIFICATIONS, BUT I WANT TO EMPHASIZE THAT THE INTENTIDN IS TO MOVE AHEAD AS FAST AS POSSIBLE - YET AT THE SAME TIME EN3URING THAT WE HAVE EVERYONE WITH US AND THAT WE DO OUR BEST FOR -VERYONE, TIMN 0156514

CONFIDENTIAL: MINNESOTA TOBACCO LITIGATION -g- I AM SURE YOU WILL ALL AGREE THAT THIS MEETING HERE IN ?URICH HAS SEEN THE SOWING OF SEEDS THAT WILL GROW AND FLOURISH IF THEY ARE WELL CULTIVATED, PART OF THE SUCCESSFUL CULTIVATION PROCESS WILL BE THE CROSS-POLLIhATION OF IDEAS AND EXPERIENCES IN THE DEVELOPMENT OF NEW COUNTERMEASURES, THE NEW TASK FORCE AND THE WORKSHOP PROGRAM WILL BE THE FOCLS OF THESE ACTIVITIES, 9 WHEN I JOINED THIS INDUSTRY, ON FEBRUARY 1. THIS YEAR, I REMEMBER COMING ACROSS A REPORT ABOUT THE INDUSTRY IN WHICH THERE WAS A SEN- TENCE THAT READ SOMETHING LIKE THIS :°THERE IS A PRESSING NEED FOR THE INDUSTRY TO SAY SOMETHING - WHICH IS ALMOST MORE IMPORTANT THAN WHAT IS SAID," THIS CONFIRMED MY OWN EXPERIENCE AS AN OUTSIDE OBSERVER - BUT ONCE INSIDE THE MAGIC CIRCLE, I BECAME AWARE, AT ONCE, OF THE LITERALLY INCREDIBLE AMOUNT OF INFORMATION THAT WAS AVAILABLE IN THE INDUSTRY, IT WAS A BIT LIKE VISITING THE QUEEN OF SHEBA : "THE HALF WAS NOT TOLD ME", I HAD BEEN HIRED TO HELP GET THIS INFORMATION OUT, TO COM- MUNICATE, TO PRESUADE, TO MOTIVATE - AND I AM DOUBLY PLEASED NOW THAT I CAN ALSO PLAY A PART AS CHAIRMAN OF THE COUNTERMEASURES DEVELOPMENT TASK FORCE. As DENNIS DEFINED :"COUNTERMEASURES ARE THE G•lORDS USED TO DESCRIBE OUR RESPONSES 'TO THE ATTACKS MADE ON US". AND IN TERMS OF RESPONSE, THIS CONFERENCE ITSELF QUALIFIES FOR BEING A COUNTERMEASURE - AS, IN FACT,CAN THE DECISION TO HOLD IT AT ALL IN THE FIRST PLACE, TIMN 0156515

CONFIDENTIAL: MINNESOTA TOBACCO LITIGATION -g- THIS HAS BEEN A VERY INSTRUCTIVE CONFERENCE FROM THE COUNTERMEASURE DEVELOPMENT POINT OF VIEW - WITH NEW POINTS BEING RAISED ALL THE TIME, I TRIED TO KEEP NOTES CONCERNING THESE POINTS THAT PEOPLE RAISED AND WHICH WE MUST INCLUDE IN OUR CONSIDERATION OF COUNTER- MEASURE DEVELOFMENT - EVEN DOWN TO THOSE REMARKABLE INSIGHTS INTO THE URINARY HAPITS OF THE SKUNK; FOR EXAMPLE : THERE HAS BEEN THE x POINT THAT IT IS BEST TO GET A THIRD PARTY TO ACT/TO PROVE THE CASE - NOT FORGETTING THE IMPORTANCE OF RAISING AS MUCH MONEY AS POSSIBLE, THE iHESIREABILITY OF FINDING AN APPROPRIATE PLATFORM FOR EACH INDIVIDUAl. COUNTRY, PLATFORMS ON WHICH TO BUILD CREDIBLE POSI- TIONS, THE IMPORTANCE OF FINDING AND WORKING ALONGSIDE ALLIES, THE WHOLE ASPECT 0F RELATIONS WITH AND COLLABORATION WITH THE TRADE UNIONS. THE NErD FOR EARLY WARNING, AS MUCH ADVANCE WARNING AS POS- SIBLE ON UPCOM[NG LEGISLATION. OR SITUATIONS THAT VJILL REQUIRE IN- DUSTRY DECISIONS - SO THAT THERE IS THE MAXIMUM AMOUNT OF TIME TO PREPARE A SOUN) REASONED RESPONSE, TIMN 0156516 THE FACT THAT EXPERIENCE IN ONE COUNTRY (LIKE THE JONES HEARINGS, PROPOSITION 5. DADE COUNTRY. THE SWISS REFERENDUM) ARE ALL GOOD ARGUMENTS IN OUR FAVOUR AND THEY SHOULD BE USED IN OTHER COUNTRIES, THE POWER OF HUMOR WHEN USED IN OUR APPROACHES. THE BENEFIT TO BE GAINED FROM TOURING WITH MEDICAL AND SCIENTIFIC-EXPERTS, THE ESSEN- TIAL NEED TO THOROUGHLY BRIEF ALL OUR COLLEAGUES AND PERSONNEL ON THE ISSUES - SO THAT THEY CAN ALL HIT BACK WHEN ATTACKED, AN ENGLISH WRITER WROTE :"WE ARE ALL DEBTORS TO OUR PROFESSIONS" - AND WE HAVE A DUTY TO STA~D UP AND BE COUNTED, BUT WE MUST KNOW THE FACTS. I

CONFIDENTIAL: MINNESOTA TOBACCO LITIGATION - 10 - I HAVE BEEN STRUCK BY THE SIMILARITY OF OUR POSITION TO MY EX- PERIENCE WHEN I ENTERED THE ADVERTISING BUSINESS IN THE U.K. IN 1956. ADVERTISING WAS THE WHIPPING BOY IN THE U.K. IN THOSE DAYS. AND IF IT WAS NOT.COMPLETELY SOCIALLY UNACCEPTABLE, IT WAS'NT PAR- TICULARLY SOCIALLY ACCEPTABLE - AND IT WAS AT THE HEIGHT OF THE DETERGENT ADVERTISING CONTROVERSY WHICH AGGRAVATED THE SITUATION, ~ AT A COCKTAIL PARTY YOU COULD SMOKE AWAY MERRILY - BUT IF THEY FOUND OUT YOU WERE IN AN ADVERTISING AGENCY THEN YOU WERE IN FOR A ROUGH RIDE, BUT OUR AGENCY HAD AN EXCELLENT PROGRAM OF TRAINING FOR THE PERSONNEL - AND WE WERE ALL VERY WELL BRIEFED ON THE ISSUES. SO THAT AT EVERY CONFRONTATION POINT, WE COULD PUNCH BACK, AS HAS COME UP IN DISCUSSICN HERE. THIS IS A TERRIBLY IMPORTANT COUNTERf•1EASURE. AND IT HAS THE ADVANTAGE OF BEING REASONABLY EASY TO IMPLEMENT, MAYBE I COULD VENTURE TO GO A LITTLE FURTHER ON THIS SUBJECT OF TRAINING AND BRIEFING - BECAUSE I FEEL IT IS VERY MUCH TIED IN WITH COUNTERMEASURE DEVELOPMENT, TIMN 0156517 I WAS ONLY TWO DAYS IN MY COMPANY WHEN MY ENLIGHTENED EMPLOYER PACKED ME OFF 1'0 THE COLLEGE OF TOBACCO KNOWLEDGE THAT IS RUN - AND SUPERBLY RUN I MUST ADD - BY THE TOBACCO INSTITUTE IN INASHINGTON. NOW THAT KIND OF SEMINAR IS A COUNTERMEASURE ALL BY ITSELF AND IN RELATION TO THI: REMARKS THAT WE HAVE HEARD HERE ABOUT THE IMPORTANCE OF MOBILIZING !'HE TOBACCO FAMILY. TO TRAIN AND EDUCATE OUR OWN PEOPLE ON THE 'SSUES AND THE RESPONSES, I WOULD LIKE TO SUGGEST THAT THOUGHT BE GIVI:N TO THE POSSIBILITY OF RUNNING SIMILAR KINDS OF SEMINARS HERE :N EUROPE UNDER THE AEGIS OF ICOSI. BY AND FOR THE BENEFIT OF THE ASSOCIATIONS AND ICOSI MEMBER COMPANIES,