Copy No. STRICTLY CONFIDENTIAL TO ALL NO. ls OF ASSOCIATED COMPANIES SMOKING AND HEALTH The association of smoking with various diseases continues to be a major threat to the tobacco industry. It would be unrealistic to expect a No breakthrough sudden scientific breakthrough in the foreseeable foreseen. future and our policy is based on this assumption. Therefore, tobacco companies must consider how best they can continue to live with the problem and what steps they can take to ameliorate it. The companies in the B.A.T. Group most affected at the present time are those in the U.S.A., Canada, Germany, and Australia. Senior GrouD representatives of these four companies, together Con!'erence with reDresentatives rom Millban-k recently held a Conference in Canada, to review Group policy and objectives in this matter. As a result of their deliberations the current policy document, dated June 12tin 1970, is now superseded by this paper. A distinction musn, be drawn at the outset between those companies in waose countries the issue is not yet a live one, and companies who are already having to deal with the problem in some degree. It is not suggested that those in the first category should do anything to initiate action in the matter, but they should, nevertheless, prepare themselves to act as suggested later in this Industry paper should the matter become live. Wherever possible, Leadership the B.A.T. Group company should seek to exercise leadershiD within the industry in its country on the question of smoking and health. It follows that it is the duty of the management of our tobacco companies to be well-informed on Government attitudes to smoking and health, forewarned and alert to likely Government action, knowledgeable about mi.-iisterial intentions and the influence and significance of anti-smoking groups. C--) Co Q.14 BATCo document for Province of British Columbia 2 November 1999 - 2 - The growing threat to the industry on the health front in a number of countries is that its operations will be seriously restricted by anti-smoking legislation including punitive taxation. B.A.T. should not sub- scribe to indLrstry attitudes which we consider are, through their intransigence, likely to provoke undesirable legislation. Our aim is to persuade all Main aim those concerned - other members of the industry, members of the medical profession and governments - towards courses of action acceptable to consumers and the public which are designed to preserve the industry's long-term commercial interests, and at the same time to be as reasonable and realistic as possible in the light of scientific developments. Wherever possible, we should seek to arrange for all smoking and health matters to be dealt with through an association. of all .members of the industry. The medical and health autftoritien (including tho!7e in gover,=ent service) exert the strongest influence on Government action in this field. They are also the arbiters of the hualth effoct of any product change:: we maj make. In the last analysis, therefore, the views of such authorities could dictate the future of the industry. Our objectives, there-fore, are: 1. To Dersuade medical and gover-rLmenz; opinion, that tobacco products (modified as zwr from time to time be required by Government heal-~,", authorities aj knowledge increases) perform a useful and benefic.-ial SOC4a.j, function. Ob-'ec t4 ves 2. To enter into dialogue with medical authorities and Gove--nment denartments on the possibility of develop- ing modified products acceptable to the consumer and recommended by medical a-utlnorit-Les as bein7 likely to be less halrMful. In f,_rtherance o-:' tne two previouz obJectives, to develop suizable s-.z-ate-ies- for influencing medical a-qd Govornment opinion and get each group to accep-. some resDonsibility for helping to solve what is seen to ~e a maJor nublic health oroblem, rather thai putting all the onus on the indu_-~ry. 4. To see that research on the benefitz of smoking is undertaken wherever possible and that information on this matter is circulated to all Group companies. In the first instance, it will be our companies in the U.S.A., Canada, Germany, and Australia who, toRether with Millbank, will proceed with Item a, and Millbarik will keep other corrman_-~s informed of progress. In t~,e earlY days of t!ii, controverzy it seemed good sense for the indur:try zo content zh,~ vaiidity of all the evidence agai=~,- smoking (and this may still CD BATCO document for Province of BritiSh Columbia 2 November 1999 3 be necessary to avoid damage-o in law sz;.4ts) but there is 1-ittle doubt that the inflexibility of this attitude created in some countries ho;tility and even contempt for the industry among intelligent and fair-minded doctors. As these are among the people whom the industry most seeks to influence, it is thought that we should have a reasonable answer on the question of causation. It is suggested View on our answer should be expressed in future on the. following Causation lines:- "We recognize that a substantial number of medical authorities have expressed the opinion that a causal relationshiD has been established between cigarette smoking and lung cancer and certain other diseases, while some doctors and other scientific experts have expressed doubts about the evidence. It seems to us, that in the absence of clinical proof of the mechanism' involved, the issue of causation at the present tim-e remains controversial. This controversy car. only be finally resolved through further research and the induotry is prepared to cooperate with government and medical authorities in any such work." The opporzuniry can also be taken to recali ~he sratemenc in the 1962 Report of the U.K. Royall College of Phys4cians that smoking i:7, "a habit which most- smokers enjoy without injury to t~-eir health", and tais wao not contrad4cted in the further R.C.P. ReDorz o' January 1971. We can also pcinr out that-we, at manufacturers, have alwajrs taken the attitude that i- Moderar'.1-a is sensible for consumers to exercise modera-ion smoking, as in other thiniz_-. 'We car. also to the benefits which smokers derive from smoking. In r". n e f i t. -~ this context the question rai-sed in the 1964- Report of the U.S. Surgeon General, set out below, iS particularly pertinent: "'Arhat would satisfy the psycholog4cal needs of the 70,000,000 Americans who smoked in 1963 if they were suddenly deprived of tobacco? If the thesis is acceDted that the fundamental nature of man will not change significantly in the foreseeable future, it is then sa-fe to predict that man will continue to utilise phLa-macologic aids in his search for contentment. Seeking the goodwill and ccop--~ration of the medical authorities should not Lnhiblt us from questioning vigorously any factually incorrect or dishonest statemenrZz made by the opponents of smoking. 01% CC) BATCO document for Province of BritiSh Columbia 2 November 1999 In those countries where the industry is carryjiag out or sponsoring health research, it should keep the medical authorities fully informed and welcome their collaboration and views. It should also make Industry known to them the extent of the research effort- in Research other countries. In countries where the local industry has sponsored no such research to date, it should provide the Ministry of Health or appropriate medical authorities, with information about industry research in other countries. In giving any information about research it is important to place the emphasis on the quality of the research rather than its cost, since the latter often compares unfavourably w-Eth advertising or promotional expenditure. B.A.T. is opposed in principle to the imposition of Advertisimg restraints or restrictions on advertising, coupon Restrictions trading, or other types of promotion, as these are accepted commercial practices in a fzt~e entezzmrise i , i:3 an adult system. B.A.T. considers that smoking choice and does not direct its advertising at the young. There is little or no evidence that advertising increases total consumption. Where, however, Government insists on some res-cricticas, the quest,101- arises as to whether it is better for the ind-u-s7ry for this to be effected throug'a volunrary a~Ereemezrir or by legislation. Voluntp-ry :-es-z;ric7ions present t~ie industry in a more favourab_'~_ I .J*L;:az than t.ne: i-mosition of legal control:-, or Dron-bitions. ~:! moz- caSes voluntaxy agreement would s-?em 7a be but there are some argumentc favouri-nz legiSla-,10n. 4) in Fcde-a, z-,;-!7~ems leiz~ Tlation -r zi:- centz-~ oreeni-j:S: s!:a-:-~ cr _iegisla=-es enac-._~=~3 a number I differing lawn. -'i Voluntary agreeme=s to dishonoured by a com--:~,:_7,or who-ze mar.----". position is being serio.;sly th.7eatened; legislation requires all compe-:~_tors to cormly. iii) Legislation is less easily charzed for the worse than a volunrary agreement. There is attached to thiS oaDer a Report dated February 1973 on the growth of res~riczions world-wide on the p e nd4 adv~_rtisJniz and marketinw'ot" tobacco -:roduct-z (AD _x A". Tar and The r)ublication oC ta-z- a-nd aicotine leaglue tables Nicozine Lea~z,;e to be relatively lip-riless to t---e ind,,.:_-zry, but tfte Tables iniziative for such action saouli a.'wa:,rs be seen to be taken by the Government and noz b-7 t"ne indu-:z-.:-y. The L14 CD C:) CO BATCo document for Province of British Columbia 2 November 1999 - 5 - industry should always aim to get tar arid nicotine firmly separafed in the minds of the authorities and the Dublic. It should insist that the tests are made by a laboratory independent of any member of the industry. Publication of brands i-a alDhabetical order is preferable to ranking by levels. Every Group company should have available a brand which would be favourably placed in the table, and a filter version of a particular brand should always No Health show a lower level than the plain version. Group Claims policy of never making health claims remains unchanged. We should resist as far as possible the imposition by Government of maximum levels for tar and nicotine. If a Government is determined to take such action, we should strive to have the levels fixed sufficiently high to cover the majority of brands on the market. If necessary, we should point out that a reduction og nicotine below a level satisfactory to the consumer migh-c lead to increased per capita consumption. Tar and The printi-ig of tar and nicotine figures on Dacks Nicotine or in advertising should be resisted as far as Figures o r- possible on the main ground that figuzes can imply Packs that small differences indicate degrees of safety and the f urther ground that var4 ations Jn b'end, etc., 'L ' esul t in the since a brand was last tested cl~ also r consumer being misled. If compliance is insisted on, fig-,ares are preferable to groupings under headings such as, "high", "medium", and "low" (although the U.K. industry has accepted grouping for tar content on packets). Cautionary wa--ning notices on packs would appear War-iinx fram exoer4ence to have had no significant effect on Notices total consumption. If insisted on, the word-rigmust make clear that the warning emanates from a-Govermment source. Warning notices in advertising stould be resisted as long as possible. There is a~.tached7 for general information, a summary (Appendix B) of other matters dealt -with at the recent Smoking and Health Conference referred to on page I of this paper. ADr/CAF ON Un BATCO document for Province of BritiSh Columbia 2 November 1999