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r LAW OFFICES f~' ~RL S L lACON SAM L. COLVILLE SHOOK, HARDY & BACON DENNIS R DOW r H CI.RN LANE O. RAL/ER GENE E.VOIGTS JAMEST.NEWSOM TWENTIETH FLOOR MERCANTILE BANK TOWER . RICHARD E. MCLEOD C TIMOTHY J. KENNEDY NEIL C. SPRAGUE FRANU P, SEBREE. II R I LEO P. DREYER ELWOOD L TH M 1101 WALNUT CANOLESS J.SCOTT M DIANE S. PARRISH WALTER L. COFER RICHARD M. WRIGHT, JR. F EDER C• BEINL WILLIAM W. SHINN . O AS STEPMEN D. ALIlER KANSAS CITY, MISSOURI 64106 MICHAEL N. MAYS PETER E.STRAND RHONDA C. FAWCETT STEPNEN E SCMEVE JONNC.DODS DONALD K. NOEL PATRICK M. SIRRIDGE DAVID R. MORRIS (816) 474-6550 JOHN F. MURPHY LA R . JAMES M. ASM JOHN T. MARTIN DAVID W. S-NN WILLIAM R NAUGN, JR. LEE E. STANFORD LARRY R. O'NEAL LAURELN.CORN ALLEN R. PURVIS STEVEN C. PARRISH TELEX 42-6291 TELECOPIER (816) 421-S547 U A O. STITM ANNE E. GOOS RICMARD L. SANDLER MARGARET O.LINCSCRRT STEPHEN R. CCKLET JOHN S.JONNSTON JEFFREY S. NELSON* KEVIN R. SWEENEY DAVID K HARDY WILLIAM G ZIMMERMAN ROBERT C NORTHRIP RICHARD 0. WOODS •CRNARO V O'NEILL, JR. GARY R. LONG VERLAND PARK, KANSAS OFFICE ANDREW SEE J. RICHARD GOLUB ANNE K. SMUTTEE MARIE S. WOODBURT W.WOODYSCMLOSSCR CAROL F. FOWLER CLYDE W. CURTIS ANTHONY J ANDRADE PATRICK M=LARNEY HARVEY L. KAPLAN TIMOTMT A PRqTT GARY L. WHITTIER 40 CORPORATE WOODS. SUITE 650 ROSERT D.GROSSMAN . JOHN C. MONICA 4 JENNINGS J. NEWCOM ~ VIV 9401 INDIAN CREEK PARKWAY CHARLES R. WALL IAN W. WIBERG P. O. BOX 25128 JAMES H. OTTMAN OFCOUNSEL OVERLAND PARK. KANSAS 66225 (9131 383-3 55 5 FRANK P. SESREE 1854-1p4O SAM S. SESREE EDGAR SMOOK 14366-105O 1594-1Y70 August 3, 1983 DAVID R. HARDY 1917-1976 CONFIDENTIAL - FOR COUNSEL ONLY Alexander Holtzman, Esq. Ernest Pepples, Esq. Arthur J. Stevens, Esq. S. B. Witt, III, Esq. Gentlemen: 3- ~ADMITT[D IN LMfA{ AND M/fSOYRI Alt OTNCR{ ADMITTEC NI NI{{OVRI The Fifth World ronference on SmokinQ and Healt~ was held in Winnipeg, C nada, July 10-15, 1983. Various individuals associated with the tobacco industry in the United States attend- ed the conference including representatives from the Tobacco Institute. A copy of the official conference program is enclosed (Enclosure A). A booklet containing a large number of abstracts of conference presentations was also distributed to participants and a copy can be sent to you upon request. A Project Team of industry representatives was present at the conference for the purpose of monitoring developments and providing daily information to industry members and national trade associations. The Project Team was headed by Hans Verkerk, Assistant Secretary General of INFOTAB, and was composed of repre- sentatives from tobacco companies, trade associations, and con- sultants. I served as legal adviser to the Project Team. Daily summaries highlighting the more salient information and develop- ments coming out of the conference were disseminated to national trade associations and industry members during the conference by the Project Team via telex, and copies of those daily communica- tions are enclosed (Enclosure B).

. SHOOK, HARDY & BACON August 3, 1983 - Page 2 These summaries were prepared from the reports of the Project Team members assigned to monitor sessions throughout the course of the conference. It is the intent of the Project Team to prepare and distribute a final report on the conference later this summer after there has been a sufficient opportunity to more fully analyz.e events which occurred at the conference. Despite announcement that the conference sponsors ex- pected 2,500 delegates, it was reported that the conference was attended by approximately 1,089 delegates from 79 nations. This may be an inflated number due to local advertising efforts to attract one day attendees. Conference organizers placed the cost of the conference at $700,000, and they predicted the conference would end with a deficit. One of the announced conference priorities was to address the issue of smoking in Third World countries and the "exploitation" of developing nations by the tobacco industry. Despite the emphasis placed on these issues by the organizers, those sessions discussing Third World problems generated little interest and were sparsely attended. Consequently, a group of some 40 Third World delegates criticized the conference organi- zers for their lack of understanding of their problems and ex- pressed disappointment at the poor attendance at sessions which focused on those issues. The disgruntled delegates called for better planning at the 1987 conference so that Third World sessions would not conflict with other sessions. Additional major themes of the conference were "non- smoker rights" and economic issues. Numerous speakers advocated campaigning against public smoking and encouraged "smoking in the workplace" litigation. Activists offered "legislative blue prints" for the successful passage of public smoking restric- tions. Higher cigarette taxes and increased litigation against the tobacco industry were frequently suggested as vehicles for increasing the economic burdens on smokers and the industry. -Two other topics receiving substantial attention were the "social unacceptability" issue and smoking and women. Num- erous presenters cited the growing number of restrictions and bans on smoking as evidence of the increasing public disapproval of smoking. Activists were encouraged by reports of substantial decreases in the number of smokers in both the U.S. and U.K. in the past decade. There were also a significant number of sessions addressing smoking and women. The session on "smoking and feminism" was particularly well received and several speakers 1

August 3, 1983 _ Page 3 reported that lung cancer rates i.n women in several industri- alized countries will soon surpass those for breast cancer. Very few significant scientific developments were announced. The scientific portion was given less emphasis than previous conferences. However, Dr. Takeshi Hirayama of Japan reviewed his husband-wife "passive smoking" data and announced that he has found a significant relationship between "passive smoking" and ischemic heart disease and a "very much significant" relationship with nasal sinus cancer in nonsmoking wives of smok- ing husbands. However, Hirayama admitted that his findings re- garding the latter are based on only 28 cases. Interestingly, Richard Peto of England expressed a high degree of skepticism regarding Hirayama's data and remarked that it is "puzzling that the effects are so large." He added that the magnitude of the "effects" Hirayama reported are "very difficult to believe" and that he "still has doubts" regarding the study's causal claim. In his own presentation, Peto reiterated his claim that "the chief relevance of passive smoking is political, rather than health." Numerous well-known anti-tobacco personalities made presentations at the conference, including Sir George Godber and Mike Daube of the U.K., Dr. Nigel Gray of Australia, Kjell Bjartveit of Norway, Stanton Glantz, James Repace, John Banzhaf, Andrew McGuire, Michael Pertschuk, William Weis, Reinert Ravenholt, Lawrence Garfinkel, Allen Blum, Jesse Steinfeld and Oscar Auerbach of the U.S. John Banzhaf, the head of ASH, urged the antismoking movement to engage the industry in an "economic battle". The tactics suggested by Banzhaf included seeking higher taxes and higher medical billings for smokers, and encouraging increased litigation against tobacco companies by victims of smoking re- lated fires and "smoking-asbestos diseases". Andrew McGuire, a proponent of "fire-safe cigarettes" urged delegates "to go after cigarettes as a fire causing agent". McGuire stated that "ciga- rettes are purposely manufactured to continue burning" and that "cigarettes clearly are the number one cause of fire deaths and fire injuries". Finally, McGuire predicted that cigarette manu- facturers would be forced to meet "performance standards" within three years. Stanton Glantz, of California, severely criticized the Tobacco Institute advertisements regarding public smoking and characterized them as "rampant misrepresentations". Glantz

SHOOK, HARDY & BACON August 3, 1983 ~ Page 4 implored the delegates to educate themselves regarding the scien- tific evidence on public smoking and then scrutinize all tobacco industry advertising for misrepresentations. Glantz encouraged anti-smokers to file claims with state agencies having jurisdic- tion over consumer and deceptive advertising issues. Reinert Ravenholt, of the U.S. Government's National Institute on Drug Abuse, declared that cigarette smoking is the "most serious and wide-spread form of addiction in the world". Ravenholt stated that cigarette smoking demonstrates "a typical substance abuse pattern". James Repace, a physicist with the Environmental Pro- tection Agency, advocated the use of greatly disparate ventila- tion rates for smoking and nonsmoking areas. He expressed his belief that increased ventilation can "remove the threats" of public smoking. William Weis, a Seattle economist, repeated his assertions about the increased costs to businesses of employing smokers and openly suggested that employers actively discriminate against smokers in their hiring practices. Weis predicted that in five years, employers without policies severely restricting smoking in the workplace will be the exception rather than rule. Garfinkel and Stellman, epidemiologists from the Ameri- can Cancer Society, spoke on the ACS' new Cancer Prevention Study II. They were expected to deliver comparative health data on the smokers of low "tar" and nicotine cigarettes; however, their presentation focused on the survey methodologies being employed in their study. Stellman was extremely careful to point out that the population sample in the new ACS study does not constitute a random sample of the U.S. population, and he offered several statistics to illustrate how the population sample varies from the general U.S. population. Presentations by Allen Blum, editor of the New York Medical Journal, and representatives of the Australian organiza- tion BUGA-UP were extremely well-received by the delegates. These sessions consisted of emotional attacks on cigarette adver- tising utilizing slides of defaced cigarette advertising bill- boards. Surprisingly, Michael Pertschuk stated that the con- ference's objective should be disease reduction, "not retribution

SHOOK, HARDY & BACON August 3, 1983 ` Page 5 . against those with an economic stake in tobacco." He also urged delegates to drop opposition to the tobacco price support pro- gram. Australian Nigel Gray and Britain's Michael Daube de- livered attacks on the tobacco industry. Gray compared employ- ment in the tobacco industry to working in the heroin business, and Daube called upon conference delegates to identify cigarette company officials by name as being personally responsible for hundreds of thousands of deaths. Norway's Kjell Bjartveit admonished the delegates that smoking is not a medical-scientific problem, but a political one which must be solved through legislation. Bjartveit sounded popular conference themes in instructing the delegates to in- crease their lobbying efforts for cigarette advertising bans, package and advertising warnings, higher taxes, and disclosure of additives. It appeared that the majority of conference speakers consider the "scientific case" against tobacco to be irrefutably established. Thus, there were intense efforts to convince the conference attendees that the next major step is to achieve governmental and legislative action against smoking. Speakers called for a greater commitment of government resources to smok- ing cessation and public health education programs. Sessions describing lobbying and legislative techniques to effect passage of public smoking restrictions, advertising restrictions or bans, and higher cigarette taxes were also common. A common observation among members of the Project Team was the increased level of professionalism compared to previous World Conferences. The majority of the sessions were well organ- ized and highly professional in presentation and content. This increased level of competence was also reflected in the number and quality of antismoking literature and films available at the conference. The conference ended with the announcement of a list of recommendations developed by the delegates and approved by con- ference officials (Enclosure C). The primary objective was listed as "establishing non-smoking and the right to a smoke-free atmo- ~ sphere as the norm". Other high priority recommendations called ~ for a halt of the production and exportation of high-yield ciga- ~ rettes and reports by the Ministries of Health of all nations on ~ the progress being made in their respective countries in relation N N

SHOOK, HARDY & BACON August 3, 1983 ~ Page 6 to advertising restrictions, health warnings, sales to minors, and health education programs. The Sixth World Conference is scheduled for Kitakyushu, Japan, a city with a population of approximately one million located south of Tokyo. The conference president in 1987 will be Dr. Hirayama. If you have any questions or comments regarding the Fifth World Conference or desire any additional information con- cerning the enclosed materials, please contact me. Sincer,ely, ~ Donald K. Hoel DKH/rf Enclosures