SECRET Research Meeting Sheraton Park Tower Hotel, London 21-22 March 1985 Present: Mr R J Pritchard (part-time) Mr A L Heard Dr R Binns Mr H Borowski Dr P Dunn Mr E Kohnhorst Mr R G Nicholls Mr E Rittershaus Dr C J P de Siqueira CO CO BATCo document for Province of BritiSh Columbia 9 November 1999 -1- Background To Changes Planned For GR&DC Points raised were: (i) The willingness of CAC Boards to commit the funds, previously paid to GR&DC, for expanding their resources. (ii) A clear need for CAC companies to identify and protect their new basic research (of Group benefit) against both short and long term market crises. (iii) Concern that whilst research can be quickly terminated at GR&DC, it will take a long time for build-up to occur in the CAC laboratories. Three plans are foreseen in the latter: (a) Project planning and approval (b) Recruitment and training (c) Productive outcome. At least five years will be needed before new teams can be expected to produce significant achievements based on basic research. (iv) Concern that media, staff and competitors will perceive, wrongly, that BAT is running dowr, R&D. CO CZ> U1 BATCo document for Province of BritiSh Columbia 9 November 1999 -2- Discussions of 21 March 1985: (v) It is essential to convey to senior management the important potential contribution technical advances can make to the future of the business. A willingness to make, if necessary, sizeable investments in top rate external scientific groups if vital. BIOLOGICAL There was no disagreement with change in direction of the biological work, ie retaining only a small "in vitro" testing facility in Southampton. (It was noted, however, that R J Reynolds are advertising to build a biological team of 30-50 scientists in the USA.) Although there will be no in-house development of completely new tests, a senior expert will be retained in the residual team to monitor such developments from external sources. They will be evaluated and, where appropriate, brought in-house for screening purposes. The main biological Group project, RIO, will continue with the remaining resources. This project has three phases: 1. Brand survey. Ii. Influences of cigarette design. 111. Alterations to brands in the light of I. and II. . Project RIO will be completed in Southampton to Stage II. Tuereafter territories will consider the implications in brand development. cc cc N-) _9 :b.