S.JC-:.I;w Sth Seotember 1974 NOTS ON THE CURR-MiT STATUS OF SUBSTITU`r_-_S PLID POLICY Q=rent trendz i33 tobacco prices gives added incentive to exploring further use of reconstituted tobacco and non-toba=0 substitutes. B.A.T. policy on the use of substitutes has bean stated since 1962 as follows: "We will not use substitutes unless there -is a demonstrable advintage on healt12 grounds". Since that time our policy has been modified in scuze respects. largely by the interpretation of what we mean by "cie nmtxable advantage". The present position is that we regard a matexi~l as havizg a. de natxable advantage if it gives cigarettes with, lower tar and lower n1cotine and with carbon monoxide no higher and shows no increase ijx biological activity. The Eimtez Committee Guidelines have now helped us to clarify what we =earL by biological activity: this should cover an examinat-iort of the chemistzy of s=okQ including materi-1-- suc-la as benzzyrene, nitrosamines, hydrogencyanide, etc., it should =ver tests for tumor igerLicity both by skin Dainting and by inhal-at--;=, it should also involve some general inhalation toxicology. i~-..Lat2r, of course, is developing his Guide1ines further to include cli=ical azd other hu=aa stuLes. B.A.T. could go fux-Lhar thaa HuatQ--- in one respect: We could take cognizance of the initiation/promotio= h a is ym_o th -3 and ai= to get both a reduction in total tu=origenic--ty and La prazation acti-jity;. A list of substitutes and their present status is attached. To my knowledge only two of these are likely at present to show a demonstrable advantaga on health grounds that would satisfy us: these axe CYT-'--I- and N-14. Presumably we wou ld only use tobacco substitutes if they prove to be profitable in the broadest sense, i.e. acceptable to the consumer, acceptable to the cigarette manulactoxer, .. avail-ble- at the right price, etc. One other condition, of coursep is t-hat the!r mmld not contravene the law in the market for hich the use is intended- Befoxe they axe used in any z)articula.r market careful considexation would also have to ba givan to any change in the legal position with respect to consumers. In rxy view the fact that tobacco have been accepted for sale by the German Federal Fealt~i Ainjst=7 does not necessaxil7 constitute a demonstrable advantage on h2 alth grounds or provide a basis for use in any other count--y. 'rhe tests r-axr-4ed out under the Ger=an law by Professor Kzlle consistz only of simple pyrolysis tests and benz-oyrene dat2r=in- ation, on this basis 13ATFL-UM, CYTREEL and N34 have all been cleared. Equally although the Hunter Guidelines are very =uch --ora 2-xtensive it does not follow that clearance by Funterwould be satisfactOr7 .for clearance either by B.A.T. or for use in another cOunt=7- Contd. CD CD CD Ln (-,p4 CD BATCo document for Province of British Columbia 27 October 1999 2 - TI-Li-% last rais-as impoxtan-c questions. If - as for pro=tion - we regard Hunter Guidelines as inadequate should we do ou-- ut=ost to got the Guidelines enlarged or should vm be gratatta for small mercies. Should we in-sist on more st-riz9ant requirements to satisly B.A.T. than axe required to satisly Huntext or for that matter Krdla--" In my view we should get the best legal advice we cam with regard to potential markets and our re sponsibi 1-i ties as manufacturers. This advice will almost certainly require us to act responsibly and it may be necessary to get independent medical advicQ. Suggested actions are as follows:- 1. We sh-ld got legal advice on our position if we u- substitutes im. the United Kingdom. Perhaps simi laxly opinions could be sought in U.S.A., Cana"- and Austxal-4.. 2. We have pro=tsed to propose to American Celane-se a draft agreement for the purchase of CYTREL. This would, if accepted, commIt us to buying a given quantity of C7Y=ML contingent upon CYTRF-L In substantial quantities in cigarettes on sale in the U-K- This zvould cover both consumer acceptance and any revision In. Hunter requirements or reversal after testing on humans. 3. We should aim to get a similax understanding vrith !DL for N SM. 4. We shcruld continue to press on with BAVFLA= development and a proposal will be put to the Tobacco Board in this resiDect on the 20th Seotember. 5. We should make an approach to Courtaulds to explore the possibility of some co-operation or a phased joint ventura. The main att=action here is that it is Likely that they could quickly engage ia large scale proch=tion. 6. We should diligently i.-iform. ourselves irith respect to the other materials. part-;cmla-rly Scusta which is being t2sted by the N.C.I. in America. 7. We will make a point olE ec-amining the Bayer material when, it ampeaxs in Ree=tsmals cigarettes and t.ras becomes *'*Ie to us, at least for la:Doratory vork. a va.il~ 8. We should continue th2 davelop=ent Of rZCOMSt-ztUt2d substitutes with lo-xer biolog-kcal activity. S.J.G;Z7--CN Enc: CD C) (D BATCo document for Province of BritiSh Columbia 27 October 1999 APFF-?fDl-'C r B.A.T. product based on chalk and socLiu= carboxymethyl cellulose. Approaclhinq.decision stage for se=.i-c rcial plant. Weak but useful patent position. Probably~'i~ per 1b. N.S.M. Product of Imperial Developments Ltd. Full scale 20 - 30 million lbs/year plant under construction. Partially oxidised.ce/llulose. Useful patent protection. Expensive - probably over S I/lb. C1. T-IREL Product of American Celanese Corporation. Full scale 10 million lbs/year plant under construction- Inorganic additives with cellulose bondex probably caxboxymethyl cellulose. Useful patent protection - not impregnable. Price at present values about 75 Vlb. ECUSTA Product of Ecusta. Believed at pilot plant scale but probably no problem in production as is essentially cellulose. No patents. Probably 50 d /1b. No biological claims but under test by N.C.I. COURTAULDS No public-information. Probably viscose. No patents known. Price - not to be offered for sale but cost is probably around 60 & /lb- Could be produced readily. BAYER No information but will be on test in Germany and samoles can then be examined. Almost certainly cellulose based. Batflake type product based an aluzi.=iu= compounds. Laboratory stage. Vegetable reconstitution. No biological in-formation. May be on sale in U.S.A. in 1974. Dfj-3NT No knowledge S~U.W PRODUCT Presumed dead - .-;as reconstituted veegptable wast2 but effectively flavoured. SUTTON REESEAROi Turned down by IDL, B5W and SAT. Patentad. Cellulose based. SJ(3:.qw 5.9.74 C:) (Z) CD BATCo document for Province of BritiSh Columbia 27 October `1999