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SOSAS REVIEW February i0, 1978

SOSAS REVIEW o-.-. ~ " " AGENDA "February 10, 1978 - " Appendix. . I. Introduction and Background IIo Califano Issue D. ~urden A. Appraisal of Where We Are o B. Strategy C. Governor'.s Meeting • .. (Hunt Position Paper} " IIIo ACS N~tlonal Commission on F.H." Christopher, Jr. Smoking and Public Pollcy • Update IV. Nonsmoker Forum M.H. Crohn, Jr° • . Ao The Issue B. Industry Response - • Alternatlves (German symposium) " '" ~ • Witnesses . V. Publlc Relations Update" R. Sustana. .. VI. Public Affairs ~pdate D. Durden -.--. VII. Advertising Strategy T. D~llon " and Alternatives D. McLo.ughlin VIII Next Steps and Timetable J.R. Peterson ~

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SOSAS REVIEW February 10, 1978 The last time we met, we reviewed an updated Charter for this work. -The first three paragraphs of this Charter are worth reviewing to focus in on the work that is being carried out: SOSAS is a feasibility study of a long-term, inten- Sive, nationwide effort by the.Tobacco Indust~v pointed at the closely related issues of passive smoking, restrictions on smokers, and the social acceptability of smoking and smokers. Its purpose is to determine what programs, if any, should be implemented to educate, communicate, and mobilize support on behalf of smokers, smoking, and the entire tobacco conmlunity. It is designed to proclaim the truth about the rights of smokers and nonsmokers alike. Overall, it is intended to reassert the Tobacco Industry's position and its public credibility as it relates to the Issues of social acceptability. In other words, it is the charge to this group to carry out an exhaustive study of what can be done to turn.the tide of public opinion that has built up over the past 20 to 25 years. We are In the process of searching out viable programs through the avenues of: - Direct consumer con~nunlcation - Public Relations and - Public Affairs Because of the preponderance of public opinion, which is negative to the Industry, there is great do~vnside rlsk connected with any program that we identify and develop but the future of the Industry warrant~ the effort.

SOSAS REVIEW - February I0, 1978 Page 2 tte will be covering a number of key elements of this work this morning. CONFIDENTIAL AND/OB PRIVILEGEI~ • FOBMATIDN HAS BEEN ~E[.ETEP Before we turn to the agenda, ] would like to touch on what has been accomplished in the eight months since this group was formed and started this effort. In net, through the work of SOSAS, the Industry is unified and is moving far more a~.ressivel_~_, under RJR's leadership. If nothing more comes from this work, the benefit would be well worth the effort. Some of the progress resulting from this effort can be summed up in the following points: " Clearer understanding of the problems confronting the Industry and an appreciation of the consequences. • Unity of the Industry, • Reorganization of T.I. and Programing. Broadened focus of work and moved to a more aggressive posture. • T.A.N, • ICOSl ° Recognition of possible role of Brand Advertising. Development of data bank on economic impact of industry by Congressional District. This is basically a lobbying tool, but a powerful one. • Recognition of non-smoker issue and program development. • Effective program to deal with Califano Program. • Effective program to deal with ACS Target 5 Program.

SOSAS REVIEW February ]0, Page 3 In review, we have moved from a planning and learning mode to one of action -- not action for action's sake, but action that is based on strategies that are well thought out and carefully considered in terms of negative or dovmside effects, as well as upside potential. The agenda for todaY's meeting deals with two basic issues: - The Califano Program - The Non-Smoker Issues Dennis will start out with a report on the Califano issue.

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28 JAT(LL~J~Y 1978 DURDEN SLIDE 4 SOSAS REVIEW ~EETII~G OF FEBRUARY I0, 1978 SU~;~J~RY OF RJR AND I~DUSTRY INITIATIVES (~CO~,'PLE'[ED _AN[).PROPOSED) IN THE CALIFANO AFFAIR * T.I.'S PRE-EMPTIVE STRIKE * T.I.'S SYSTEMATIC FO{LO-W-UPS 0,~ CALIFARO OUTREACH * T.I. 'S "FAMILY" ADS * RJR'S CORPORATE-WIDE GRASSROOTS MAIL PROGRAM * V#~IL FROM FRIEI~DS OF THE COMPANY AND INDUSTRY * RJR'S Q. & A. SHEET * RJR'S BACKGROUI~D PAPER FOR TOBACCO-STATE GOVERNORS * RJRT'S TOP ~tANAGE!,IENT LETTERS TO REGIONAL PAPERS AND SYt~DICATED COLUI.I;II STS * RJR'S BRIEFING PAPER FOR COLIN STOKES' MEETING WITH CALIFANO * RJR'S FOLLOW-UP BRIEFING PAPERS FOR: * TOBACCO 1RADE * FAPJ4ER CO~UNITY * FI~ANCIAL COI,~IU~ITY * RJR'S SPECIAL INITIATIVES WITH STATE AGRICULTURAL SECRETARIES * OTHER ACTIVITIES

28 J/V~UARY 1978 DUP, DEfI SLIDE 5 • "" SOSAS REVIEW ~EETING OF FEBRU~RY I0, 1978 KEY ISSUES HIGHLIGH'~ED B._~_Y CAL~IFAI~O'S ACTIONS ~ARNII~G LABELS EXCISE IAX ]HCREASES uON,INuAT,ON TOBACCO SUPPORT PROGP,~I .... S~KII~G EDUCATIO~ PROGP, AMS GROWING EI~PHASIS ON SOCIAL COSTS THRUSTS RESPONSE OF OTHER CO~4PANIES TO CALIFANO POL]IICAL IMPACTS OF A DECLINING ~RKET A I~EW SURGEOI~ GENERAL'S REPORT

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