S E C R E T
RZT/DK/46D 30th July# 1906
PROJECT ZNN
Meeting-held in Millbank, JuIX 25tht 1986
Present Mr. J. L. Mercier - Imperial Tobacco
Mr. C. Warren Canada
Dr. P. J. Dunn
Kr. R. J. Pritchard - Brown and Williamson
Mr. C. A.A. bruell
Mr- N. Davis - BATCo.
Mr. A. L. Heard
Dr. R. E. Thornton
1. R&CKGROUND
1.1 Rationale
I. T. L. in presenting their concept, believe that many
of the constraints CLrrently operating on the tobacco
industry would be removed if it were not for the Smoking
and Health issue. For example. as a result of the anti-
smoking lobby, taxation La increasing and consumption in
falling, and young smokers are declining in number.
Politicians are not unhappy with these trends. Issues
related to Product liability also constrained the Industry
and an such Issues related to Smoking and Realth.
1.2 Opportunities
I.T.L. stated tbot if w* could remove Smoking and Health
pressures the Industry would stabilize and then gcow.
Productivity and market shar* were likely man to
,plateau,.
1.3 ObiectIve
OT* work towards the discovery of a "saW cigarette,
Osafo' in the eyes of those who say that the current
cigarette to 'unsaft'.6 Such an objective is, in X.T.Las
view, market oriented (in that It would *zpand the market)
but Is not m&rk*tinq-*r1*nt*d, L.*. concerned with short
term tacgets.
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1.4 Business Asmcts
(i) Any return on an investment that led to an increase
in smoking should be high.
(ii) The potential complexity of the project made it
difficult for [non-tobacco] competitors to enter.
1.5 Strategy
Briefly the project is related to a progra of research
related to a three tier approach:
1. Eliminate [undesirable chemicals identified by
Regulatory bodies] and test for biological activity.
A broader interpretation in that noza would be
reduced to threshold levels deemed acceptable.
2. Modify (the cigarette).
3. Neutralize (by vitamins etc.].
which in turn relate to four research areas:
1. Smoke Chemistry - reduction of toxic components
2. Biological Tests (short and long term)
3. Epidemiology
4. mechanism of Disease Production
1. T. L. believe that this calls for a Fundamental Research
approach (attempting to acquire knowledge that others do
not have), but at this stage, have not developed the
Research Programme - (Phase 2).
2. DISCUSSION
2.1 It was accepted that the world-wide scenario on Smoking
and Health was no-t greatly different to that in Canada.
The importance of variations in the economy of individual
countries was stressed (*.g. recent increases In consumption
in Denmank), as was the role of drugs in societies where
smoking was discouraged.
2.2 There wore various views on the necessity and feasibility,
of reducing specific chemicals. Only tobacco specific
nitrosamin*x are unique to tobacco anyway and a moving
target was anticipated. Compounds would always be added
to the list or their acceptable limit lowered.
2.3 The more, pragmatic approach of reducing tar [probably at
constant nicotine level) was discussed. This approach
had been specifically requested by regulatory authorities co
(e.g. a. S.A. , U.K. )- whereas there was equivocal ad-vice on
reduction of specific chemicals.
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The approach was also consistent with effects of nicotine
such as the apparent negative association of smoking with
Alzheimer's Disease, Parkinson's Disease, etc.
1. T. L. agreed that the approach of reducing tar : nicotine
ratio was valid for future research.
The *Rationale for R&DO strategy paper (A. L. Heard, October
1985) which was agreed at the Research Conference in Ric,
is based an ability to respond either to consumer demand
or to regulatory authorities. Fundamental research on
reduction of selected smoke components is thus already in
the Group Research Programme. Monitoring of biological
tests and performance of products against generally accepted
tests are also in the Programme.
2.4 With regard to the four research areas, it was agrooa that
the first step was an on-going appraisal of the scientific
literature as discussed in *Rationale for R&D'. Resource
in this area was being Increased with the forthcoming
appointment of a Senior Scientific Adviser in BLAT Co ,
MLIlbank.
The Scientific Research Group (S. R. G. ) was charged with
appraising the literature and, if necessary, organizing
further work. It was noted however that a considerable
amount of work was already going on in all four areas.
The view was expressed that of the research areas, items
2-4 should drive item 1.
The S.R.G. would be asked to examine if sufficient work
was being carried but to meet the requirements of the
B.A.T. Group.
2.5 It was agreed that time scales could not be set
realistically because of the uncertain nature of scientific
research. However, all necessary resources would be
provided.
2.6 It was also agreed that the S.R.G. would consider the
implications of the tar reduction programme in terms of
necessary research. In any case the next meeting of the
S. R. G. (Montreal, August 1986) was already scheduled to
discuss nicotine in detail.
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CONCLUSIONS
it appeared that there was much in common between the aims of
or and the R&D strategy for the B.A.T. Group. Bowever,
differences were apparent in:
(1) The B.A.T. approach of selectively pursuing smoke
components, with the aim of being ready to respond an
any aspect of smoke when requested in contrast with
the all-tncompassing approach forseen by I.T.L.
(2) The goals for the B.A.T. programme were necessarily
short (5 years) , since longer term goals cannot be
defined (those 'selected' today will Inevitably change)
this contrasts with the long term targets forseen by
Canada (up to 15 years).
Further consideration should be given to these issues In the
1986 Research Conference In Sydney (September) and an agreed
strategy developed.
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CONCLUSIONS
It appeared that there was common ground between the aims of "Elm"
and the R&D strategy for the BATCo Group. However, differences
were apparent in:
(1) The BATCo approach is to monitor the scientific literature and
statements of regulatory authorities, with a response in line
with management's perception of the situation. This contrasts
with the all-encompassing approach foreseen by ITL.
(2) The goals for the SATCo programme were typically defined on a
five year 'rolling-over' programme which in flexible and is
always addressing the latest developments. Longer term goals
cannot be defined (those 'selected' today will inevitably
change). This contrasts with the work foreseen in Canada
(possibly up to 15 years or an even longer time scale).
Further consideration should be given to these issues in the 1986
Research Conference in Sydney (September)
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