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        BRITISHMIBRIWii~E~ICCOm~hwL~


                   ~,~mb~tolthrB·A·TloddcrGmup P9~
        8th Jury 1988

        ~lalner                               RrSirtrredOffier: ~ ,~"i~·


        Dr~ P~J, Ounn,                        POBdXJ2
        ~pprtlal Tobacco If nited I           7Millhanl: toPdon

        Ilontrool~                            Tl~phooe:ol·m Im
                                              Tdcr: g&mrroe G
        Pax No: 932 6980


        Dear PLtl

          Pave now had discussions vieh Accounts DepattP(P~ in lillbank
        and Peed re clorif~ IOPC Points iP relation to Jean·touia' letter
        of btb naJ~ There ate two important errors

           1,  Vhilst at the g~rurch policy Creup nesting in I,ouistille
               we agreed as a group that I would propose to the Tobacco

               Strategy BrPiev IeaP a funding foroula re9'1:i"B onll
               E300900O pla, from Canada, this was nor accepted and a

               figure of f1009000 os of 1987 was retainedl Thus we
               really should be wo,~ipg from a basis Of f400,000
               coPtributian frop Canada for funding the trediliOPI1
               fundancPtal research ptograenc~

           2,  SecoPdl~, the SRC contributions are treated ~~ite
               sepbratelt flOP the costs of the fuodoPentel re~clrch
               uot~ and, indeed, is handled this way by other
               eounttici~ Thus, the fb09000 figure should nor rcllle to
               this and this will be birlcd to iou seplratrll (" bit
               indeed happened in the bills 9ou have received to date)·


           If we can get these points agreed we ore thee loekiPg for a
         E170,000 contribution fraP canada towards the estinated el lilliOP
         exprnd~ture for erceadotlUrbul~ I understand that
         Jean-Lou~e Mercier would like to see the actual expenditure for
         these areas and this we agree to do puort~tl~ on a pro rata
         basisl The situation is Ilreadl clear to Pa for SoPthanpton an
         Gteeodot end I pill elarlfl next peek vhilor I a In the ~Sb hop
         we collect (iplrlt ~Of0fPltiOP for ~itblll'

           While we resolve this we agree that you should ignore the two
         qunrtetlg bill, reeeived to date, but as soon as we can get your

         ~gteenenr to the fundanePrai principles In :hls aote, we pill
         adjust as appropti~ec~

           If ~o~ hl~l lp~ p'bblL"S, plure 81,L pt ' C111· (I Ih~ll be
         here in Millb~nk acxt noodl~ and Tucsday·)

                                   i GROUP R d O CUITRI
                          Begard,,
                          ~lan Beard
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                              ~a I f~L. CJ1

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       Note to C.t· D~nnil, tlq·

                 iIL - h,·au1 Luud O~ k~


         There ~ti seVC'L1 point~ to eovlr iP l(IPOLII to th( Itl[lf
       froi JIln'lOull n(lCIII· Fltltlf, hi IltecI ou~r~tht rO ""ir I

       son Of f300,000 tovlrdl rhc SouthIipio" Yund~iiniil I~ri~rch
                          Il tIl;en Itei the iinurei of our


       2rolrllla; rhfl fi9urt, hovev'rl
       Irsi9rch eooflr""ei in OcrPb~r, uheo I pufell Inllcotrd t~'

       propoaIl I YOUld II~( ~ ,, kbac YnuQ Ilds f(ll iud on
       the soro project bile II ~ltl~d ii Iire 198b, l~c· ~oiiillot t2
       iillion p'L· Thil ptepp,Il eilled !oI I reduction In c0Dltibutlon

       by Irl froP f400,000 io 1)87 to t300,000 in 1911. Ihls u~l pot
       r·P~b d' ~· '1 dr n~ o.~~d' P1 ngp~:hr,


       f100,000· BoVeY1'( Ihil ii of ~c~daiic fiportlncr.
       I vent on ~o prelent to the TSIT t,, lev projeEtll rllpondiPI to
       the RJR spokelesJ citPrc't' L~~d~c~ fhlll clll br JM~RI1
       tundt v~lch I could oPly dltlll[C 10 be 11 lilliOP iP 1PI~
       Illoving for thisoi the ~1 ~~~budol tar tll Ctou) IU~'"~~f
       Iriaiich vould he L510, 000~

          (The Scienrific Ira,lrch Group budle' for SLt type extirPIi
        reselrch of f60,0001~ Idn wl·'~ L'1 ~ I,lo~dd )1
        Drl ihorntoa·)

          Turning to the reel point It iorur, Jeln·louir H~~cl" II
        eleIrll FDPeCrPLd thlt, Vblr(LI Ilf fIiled to fclpall to ClaIdfoa
        llll1Drl to pUrIUt r~die~l pl(l~ nn~KL, vr h1(1 9r·d '"
        respond Puic~ly to the RJI iaiti~livi·

          this cauld bi d~lMd (f ~1~1 11I V~LI 1I1UI I~t~l~

                            thf~ vhola Irl~~ II he
        thIt ve hlvl 1AT luppotr to OP"D UI ceut~~ 1I IU'"ULd end I

        rilhill Ifknovlcdpai, pt"ci"'lf vbir
        better insllht into vhIl fuPdl vill be rlgulrld, vlll be hopltullt
        Iiiolril It II Deetla( In llev Tor~ (Ithl~rh J1Pu~tl)~ III vill be
        vlll rcprallated It the leltial·

          In the ipr(ril, IICOBOIIIPI the opproxil"ta IIlure pi thl
        llditlonal luodi (beyend f100,000) needed for thele pTOjlCI11 Y1

        ropld lilre to worlt on (~ Ill bu~~ f~urc~ tSlo,ooO t~ U~·
        11 1s1 need to 1~~1 'P IdjUltlePt Ilt(l·

                         Seleatific ReIeITch Ct6UP )IOjLetl
          The EL0,000 ~lloc~tion for

        is ~dditionil~
          ~~I' d~ clril~l dr iU'· rdwC

                       ~(·1~""1

                        A.I1 Pelrd
        c~c~ E.b~l~ Iruelli til~

        ~lalDE~
        13ta Pcccibir 1917                                  ,


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