cc: -br. A &inns ri r. 9. EoaW B A BRITIS11-_- -AMERICAN TOBACCO COMPANY LTD 81 h July 1.238 A member ofthe B-A-T Industries Group ALH/DET Vk D r D-2n, Registered Office: . P_J c PO Box 482 Wes . er Hou e er r H-u~ Im perial Tc'3& co Limiced, .P 31E Ion S P 31E Mon treal. 7 K11bank London S Telephone : oi-22=2 z=2 Fax No: 932 6980 Tell: 27384 DA-rroB G Dear Pat, E:ve no-achad,di s cuss ions with Accounts Department in Millbank and n ed to lar fy some points in relation to Jean-Louis' lette: of 6th May. There are two important errors:- 1. Whilst at the Research Policy Group meeting in Louisville we agreed as a group that I would propose to the Tobacco St:acegy Review Team a funding formula requiring only V-30,000 p.a. from Canada, this was not accepted and a figure of L400,000 as of 1987 was retained. Thus we really should be working from a basis of L400,000 co=cribution from Canada for funding the traditional fumdamental research programme. 2. Se:ondly, the SRG contributions are treated quite sezarately from the costs of the fundamental research wo=k and, indeed, Is handled this way by other co-zatries. Thus, the E60,000 figure should not relate to thfs and this will be billed to you separately (as has ir!eed happened in the bills you have received to date). If we can get these points agreed we are then looking for a L170,000 co=tribution from Canada towards the estimated El mill!on expenditure for Greendot/Airbus. I understand that Jean-Louis LOarcier would like to see the actual expenditure for these areas and this we agree to do quarterly on a pro rats, basis. The situation is already clear to me for Southampton on Greendot anc I will clarify next week whilst I am in the USA bov we collect similar information for Airbus. While we resolve this we agree that you should ignore the two quarterly b!lls received to date, but as soon as we can get your agreement tz the fundamental principles in this note, we will adjust as azpropriate. If you !tave any problems, please give me a call. (I shall be here in Mil:bank next Monday and Tuesday.) Regards, GROUP R 9 D CENTRE Alan Heard Ley-" 12 J U L 19U Ack: ............................... Seen by: ........................ i File: ................................ Incorporated in Iondon Number 74974 Cables: Vehicular London :)Xvi X__ \L 0 _1 BATCo document for Province of British Columbia 27 October 1999