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Annotations of documents gleaned from the British American Tobacco Company (BATCO) and BAT Industries documents at the Minnesota Tobacco Industry Document Depository. There are twenty-six boxes, (18 from BATCO, and 8 from BAT Industries (mainly financial statements, which should be of interest to those tracking industry structure). The material in Minnesota represent about ten percent of a larger cache in Guildford, England, also now open to the public. The box numbers here refer only to this Minnesota Select Set but the Bates numbers should be equivalent.

BOX 8

1. Research report (T.154-C), 8 October 1984, E.D. Massey, "Ames Mutagenicity Activity of Mainstream Condensate of Four Commercial Cigarettes for BAT Cigaretten Fabriken GMBH, Hamburg...Project Rio," BAT (File no. B4750) 105490862 - 873.

   (Assessing German cigarettes' mainstream condensate by the standard Ames bacterial mutagenicity test used to measure carcinogen activity. In descending order of mutagenicity: Cortina, Selecta, Auslese de Luxe, Kent de Luxe, with a 1.6-fold difference only between highest and lowest.)

   Notable quotes: "The Ames test is more and more being requested in the legislation as a guide to mutagenicity such that it is now an essential screening assay." "The BATCo Chairman's Advisory Conference held in Brazil, March 1983 allotted top priority to the modification of cigarettes to reduce the specific biological activity of the smoke (PROJECT RIO)." ["Biological activity" is an industry euphemism for potential carcinogenicity, usually determined by skin-testing or the Ames bacterial mutagenicity test.]

   [NB. For more on "Project Rio," BAT's research on "safer" cigarettes, and the legal implications for the industry, see Stanton A. Glantz, et al., The Cigarette Papers (Berkeley: University of California Press, 1996), 146-151, 265-267.]

2. Report, S. Reyneke (Chief), January 1963, "Studies on the composition of tobacco and smoke conducted at the tobacco research institute, Rustenburg," BAT (File no. B4908) 105368780 - 782.

   (Early acknowledgement that cigarette smoking causes lung cancer, and suggests a research approach to reducing the risk.)

   Notable quotes: "The results of surveys showing the relation between lung cancer and smoking have been consistent. Little more appears to be gained by repeating these investigations. Instead, it now remains to identify the components of the tobacco leaf and smoke which may be the cause of the increased rate of carcinoma of the lung amongst cigarette smokers." "The nature of the curing process has been found to exercise a considerable effect on the polyphenol content of tobacco. Air cured tobacco has been shown to contain only small quantities of these substances while flue-cured tobacco contains larger amounts.... These differences may be particularly significant in the light of low lung cancer incidence amongst smokers of air cured tobacco (i.e., pipe and cigar smokers) as opposed to the relatively high rate of smokers of flue-cured tobacco (i.e., cigarette smokers)."

3. Letter from Clarence C. Little (Scientific Director Tobacco Industry Research Committee, New York) to G.F. Todd, Director Tobacco Research Council (U.K.), 14 March 1963, BAT (File no. B4908) 105368847.

   Notable quote: "Bob Hockett kindly showed me the excellent and scholarly monograph on 'Bioassay in Relation to Chemical Carcinogenesis,' which was prepared by Dr. Day.... We have a very real and active interest in the work to be carried out at Harrogate."

4. Draft agreement, 1 April 1963, "Draft International Agreement on Exchange of Information... [between] the Tobacco Research Council on behalf of its member companies.and the Wissenschaftliche Forschungsstelle im Verband der Cigaretten-Industrie on behalf of its member companies," BAT (File no. B4908) 105368918 - 919.

   (A contract on mutual information and cooperative research - a "gentleman's agreement" to share results pointing to a cigarette less likely to cause cancer.)

   Notable quotes: "The Tobacco Research Council and the Wissenschaftliche Forschungsstelle agree by this contract to submit to each other without delay the following information which have to include all technological details of manufacture. These are: 1. Information about modifications to cigarettes or other tobacco products which have been shown to be beneficial to human health. 2. Information about modifications to cigarettes or other tobacco products the smoke or smoke condensate of which have been shown to produce less biological activity to an extent that was statistically significant, a) in a test (or tests) of a type that was relevant for lung cancer or other human diseases...." "Both the Tobacco Research Council and the Wissenschaftliche Forschungsstelle respectively will endeavour to conclude equal contracts with AUSTRIA TABAKWERKE,Vienna...ADMINISTRAZIONE DEI MONOPOLI DI STATO, Rome...SERVICE D'EXPLOITATION INDUSTRIELLE DES TABACS ET DES ALLUMETTES, Paris...SVENSKA TOBAKS AKTIBOLAGET, Stockholm...VEREIGNIGTE TABAKFABRIKEN AG,Neuchatel."

5. Confidential memo, G.F. Todd (Director Tobacco Research Council), 2 March 1964, "Discussion with Dr. F.J.C. Roe, 26th Feb. 1964," BAT (File no. B4910) 105383330 - 334.

   (Plans for setting up Tobacco Research Council laboratories at the Institute of Cancer Research, Sutton. Emphasis on biology. Discussion on asbestosis and relation to lung cancer. Discussion on "safer" cigarette.)

   Notable quotes: "'Safer' Cigarette I asked Roe for his views on what would constitute a safer cigarette. He said that he found this difficult to answer. The epidemiological evidence showed clearly that cigarette smoke caused lung cancer. One had to use animals to find out the substances responsible but animals could only be used in a form of fundamental research. It was quite impossible to use animals in a way that would directly reflect the effect of cigarette smoke on the lung."

6. Confidential memo, G.F. Todd, 3 March 1964, "Development of a 'Safer' Cigarette," BAT (file no. B4910) 105383342 - 344.

   Notable quotes: "The ultimate objective is to produce a smokeable cigarette that is as safe to smokers as it is possible to make it.... To achieve a 'safer' cigarette as distinct from the ultimately 'as safe as possible' cigarette it is necessary to reduce two groups of substances in the smoke. These are what have been termed 'carcinogens' and 'irritants' respectively. Both groups of substances are under suspicion as possibly contributing to lung cancer and the latter group are further under suspicion as possibly contributing to bronchitis. Consequently, both groups should be reduced as far as possible while at the same time providing a smoke that is pharmacologically satisfying." "Gallaher and Imperial have provisionally assumed special responsibility for finding means of lowering polycyclic [hydrocarbons] in cigarette smoke and B.A.T. and Carreras/Rothman have provisionally assumed special responsibility for producing filters that will remove irritants, both while maintaining normal nicotine levels as far as possible."

7. Daily briefings on a lawsuit from Hill and Knowlton (Public Relations Counsel) to Tobacco Institute, Tobacco Industry Research Committee Members, Public Relations Committee, Designated Legal Representatives of Members, 16 September to 11 October 1960, "Lartigue vs. Liggett & Myers and R.J. Reynolds," BAT (File no. B4914) 105369702 - 720.

   (One of the earliest suits, beginning in 1956 in a New Orleans court, sought $779,500 damages "for alleged lung cancer contracted by the deceased Frank J. Lartigue," who also had cancer of the right vocal cord. Melvin Belli represented the plaintiff. Much of the mouse skin evidence was presented here. Numerous medical experts give their opposing opinions, including Charles Mayo of the Mayo Clinic for the defense, Alton Ochsner of the Ochsner Clinic and Ernst Wynder for the plaintiff.)

   Notable quotes: "Attorney Theodore Kiendl, opening for R.J. Reynolds Tobacco Company, said Lartigue smoked to an 'absurd excess', actually began to smoke in 1899 at the age of nine and smoked for 55 years, not the 41 years claimed by the plaintiff. He said it would be proved Lartigue's death resulted from failure to pay any attention 'whatsoever to his health'.... Kiendl said evidence would be presented to refute the claim that products of the defendant companies caused lung or throat cancer. He said no one has found the cause of cancer." "[Vice President of L&M, Haddon Kirk] said his company desired to help get the truth when the first tobacco- lung cancer reports came out about 1952 or 1953. He said his company believed it was an industry matter; not for one company along, to sponsor scientific research and that discussions then began that led to formation of the Tobacco Industry Research Committee." "[Dr. Charles Dunlap of Tulane University] said "that a statistical association between smoking and lung cancer is not proof of cause." "The jury returned a general verdict for the defendant companies...after deliberating about two and a half hours."

   [NB. Note the remarkable consistency of defense arguments over the decades.]

8. "Secret Confidential Interim Paper", G.F. Todd, 6 March 1963, "Smoking and Lung Cancer: the Statistical Criticisms.... Personal Views on Statistical Aspects of the Smoking and Lung Cancer Problem," BAT (File no. B4923) 10536944 - 952.

   (Notes that both retrospective and prospective studies "in over 30 investigations, carried out in 12 different countries," show association of smoking and lung cancer. Todd demolishes the "better diagnosis" theory, pointing out that since lung cancer in smokers was thirty times that of non-smokers, it would require missing 29 out of 30 lung cancers in non-smokers to make the theory valid. He shows that every one of the 30 studies would have had to have had a bias in the identical direction. He offers seven possibilities for confounding variables -- smoking associated with the actual cancer-causing variable -- but demolishes these as well, noting that no confounding

   variable is thirty times more prevalent in smokers with lung cancer compared to non-smoking, and one is not likely to be found. In addition, all the statistical data showing differences in dosage, current and ex-smokers, etc. would need supplementary confounding variables to explain away.)

   Notable quotes: "It is exceedingly improbable that the coincidence of circumstances necessary to render every one of the investigations misleading and fallacious actually occurred.... "The most probable conclusion therefore is that the association between smoking and lung cancer is a real association."

9. Minutes of a meeting, 17 January 1963, "Minutes of the 41st Meeting of the Technical Sub- Committee of TMSC [Tobacco Manufacturers' Standing Committee]," BAT (File no.B4923) 105364242 - 245.

   (Report of researches on cigarette smoke, etc. G.F. Todd reports on a visit to the Tobacco Industry Research Council in New York.)

   Notable quote: "The view of the U.S. lawyers that publication of the results of biological experiments by the industry could place the defence in U.S. lawsuits in difficulty was noted."

10. Memo from L.C.F. Blackman to A.L. Heard, Esq. 11 December 1980, BAT (File no. B494)

    105399820.

    "I met yesterday with Dr Frank Colby of Reynolds Tobacco. Before he left, he gave me the enclosed booklet on 'Tobacco Flavoring for Smoking Products'. The booklet contains a very comprehensive listing of chemical components in tobacco smoke and an attempt to classify them according to smoke taste and smoke aroma. Dr Colby said the object of producing the booklet and circulating it was to prevent other Tobacco Companies obtaining patents in the area of taste and flavor. Reynolds see this as a way of protecting their own very heavy investment in the subject."

11. Minutes, R. Camber, 30 April 1969, "Notes on the 14th meeting of the Respiratory Study Group," BAT (File no. B930) 10556712 - 716.

    (G.F. Todd at meeting reporting on various industry-sponsored researches.)

    Notable quote: "Battelle Work. So far the [unreadable initials,? MXV] treatment has given 3 tumors of the respiratory system out of 80 animals, but it was considered too early to make a decision on the future of the work."

12. Essay, Sir Charles Ellis (Executive with BAT R&D at Millbank), 25 March 1969, "Bridging the Gap," BAT (File B 930) 10556771 - 776.

    (How to link the evidence from mouse skin painting bioassays to events in the lungs of human smokers. Suggests a research scheme that makes the mucus-covered internal lung surface analogous to mouse skin when smoke constituents keep bathing it. Should help discover a safer cigarette.)

    [For additional information on Sir Charles Ellis and the search for a safer cigarette, see Glantz et al. Cigarette Papers, 111-118.]

13. Research plan, anonymous, probably late 1960s, early 1970s, "Recommendations of T.R.C. Respiratory Research Committee," BAT (File no. B930) 105557010 - 011, 105557030 - 034.

    (Research on animals with "fresh, whole smoke" inhalation to see if it causes various diseases.)

    Notable quotes: "It was recommended that respiratory research by T.R.C. should be based on some or all of the following hypotheses: -- 1. Cigarette smoke causes lung cancer by acting as a complete, yet weak, carcinogen. 2. Cigarette smoke contributes to lung cancer by acting in association with other environmental factors, either specifically (co-carcinogenic) or non-specifically (irritating). 3. Cigarette smoke causes and/or exacerbates bronchitis and emphysema. 4. Cigarette smoke interferes with lung clearance mechanism."

14. Talk by Professor J.P. Shillingford to Tobacco Research Council, 17 March 1971, "Research into Cardiovascular Disease," BAT (File no. B938) 105452662 - 682.

    (Notes that high blood pressure, smoking and high blood fats all contribute additively to coronary thrombosis. Cites US study on veterans of four-eight fold-mortality in smokers compared to non-smokers in the middle-age range (35-54). Blames effects of nicotine on circulatory system.)

    Notable quote: "This confirms all the other results as to their suggestions about an association between smoking and the development of heart disease."

15. Memo (partial) describing a program of communication, anonymous, 1995, "Smoking Issues," BAT (File no. BA0165) 502634385 - 386.

    (An ongoing public relations program.)

    Notable quotes: "[to coordinate] awareness of scientific developments, and allowing a more proactive approach to the communication of certain smoking issues...ensuring that the Company continues to have proper and consistent positions on smoking issues and that those positions are appropriately communicated." "No Communications go into the field without corporate affairs awareness."

16. "Talking Points Relative to Waxman Visit," anonymous, 29 August 1994, BAT (File no. BA0280) 502575836 - 838.

    Notable quotes: "Nothing new, no deception." "Dr. [David] Kessler assailed Brown & Williamson for 'secretly' developing a tobacco ('Y-1') that had reduced 'tar' but a uniquely high concentration of nicotine. The effort to develop the Y-1 variety was an outgrowth of efforts by the USDA in the 1970's to develop a 'safer' cigarette that was low in 'tar' but rich in flavor." "The company's position [is] that a statistical association between smoking and lung cancer is not sufficient from a scientific standpoint to establish a causal relationship." "FDA regulation means back-door Prohibition."

17. Minutes, G.J. Burgess, 1 April 1992, "Tobacco Strategy Review Team," BAT (File no. BA0322) 502557993 - 059.

    (Discussion of several strategic issues.)

    Notable quote: "Transdermal Nicotine The Chairman drew attention to the reported development of a product which could be applied as a patch and which would transfer nicotine into the body. A description of the product was circulated to all members who were asked to discuss with their marketing and technical people: -- a) Whether this is a significant technical advance which could be developed into a saleable product for mass markets. b) If so, does it represent a threat to the tobacco industry. c) what should be the reaction, if any, by B.A.T. Industries."

18. GMs Conference Plan Update, 1995, anonymous, BAT (File no. BA0410) 502635686 - 713.

    (A Public Relations slide presentation on "Resocialisation," that is, the right to public smoking without shame. The aspects of resocialisation are social pressure, nature of social smoking debate, the right to smoke, legislation vs. accommodation.)

    Notable quotes: "Social Pressure. Image. - a smoker is 'a weak personality, a social leper. Is smoking a catalyst for innate social intolerance?" "The social smoking debate. Nuisance is immediate issue... Are relative risks of ETS overstated? - what about vehicle emissions and other pollution?" "Do you have the right to smoke? YES... Governments do not have the right to ban smoking for the good of society." "How can we help improve negotiation between smokers and non-smokers?" "1995 Communications Plan. Goal - Reintegrate smokers. Strengthen customer base." "Initiatives. UN Year of Tolerance media campaign.... To be the first to take the tolerance message into the workplace.... Promote airport lounges.... reaching business, international and travel media in Europe, travellers, travel buyers, airports, industry opinion formers.... BATCo is a major international business, employing thousands and making a positive economic contribution in over 45 countries.... BATCO Connections contact programme... Friends of BAT.... Funding of anti-smoking groups [!!] ." "Countries prioritised so far: Year for Tolerance - South Africa, Switzerland, Russia, Chile, Malaysia. Best of smoking Policies [media package] - Hong Kong, Hungary, Venezuela, Bangladesh, UK." "Don't need to remind you that there is increasing pressure on the industry, and the company, from our opponents. Need to counter these threats if we are to stay in business. But, more importantly, and echoing the theme of this conference, we need to take the initiative to enable us to regain the number 1 position from PM." [emphasis added.] "Key Issues Council. Primary health, ETS, addiction, advertising, plain packaging, taxation, product liability, ingredients, deliveries, employee communication.... KIC formed in wake of negative world wide publicity from Waxman hearings and theft of B&W documents.... Want to be more proactive than reactive.... Advertising code. No direct marketing or marketing research with minors. Clothing in adult sizes only. No celebrities or testimonials appealing to minors. Models in ads over 25. No payment for product placement. No depiction of sexual or social success. non-tobacco items directed at minors." [NB. We must compare this (?) suggested advertising code with actual advertising since 1995.]

19. Public Affairs for Profit, The Public Affairs Resource Group, 1990, anonymous, BAT (File no. BA0462) 502649591 - 595.

    (Establishing twelve world regions to coordinate public relations activities.)

20. Public Affairs International Conference 12-16 July 1992, BAT (File no. BA0462), 502649609 - 796.

    (Proceedings of the conference on "Public Affairs for Profit," with BAT public affairs delegates from all over the world. Their profiles, excerpts of speeches. Key presenters from BAT Public Affairs: David Bacon, Brendan Brady, Sharon Boyse, Paul Dietrich (with Jones Day Reavis), Isobel Norwell, Heather Cooke, Dominic Cook, Professor Gordon Hewitt, David Etchells, Tom Watson, Johan Priem, Christopher Bullock, Steve Percy, John Luke, Paul Bingham, Ron Tully, Dr. Frank Ryan, Alan Gallop, Chris Tame (FOREST). Sharon Boyse has a PhD in pharmacology, studied effects of valium and drugs to treat dementia and Alzheimer's.)

    Notable quotes: "Which delegate...stalks Judith McKay [sic]? Brenda Chow, China/Hong Kong." Barry Bramley, Chairman BATCO: "Our International brands sales have risen strongly by 7.9% per annum... the growth rate itself is accelerating...export sales...growth rate of 16% per annum...22% of our total business, compared with 13% in 1987.... return on net assets has increased to 38.6%.... objectives: ...obtaining the right excise structures, maintaining the freedom to market -- advertising/sponsorship...influencing duty levels on imported leaf...influencing access to new markets/reducing protectionism (eg. USA, Japan).... Technology & Innovation: scientific arguments on ETS, use of technology in effective communications,.maintenance of ability to use flavours/constituent parts... Product Quality: ...maintaining our ability to manufacture how and what we want to -- diet, additives.... Role of public affairs has been redefined to reflect the more commercial approach.... corporate image is at the top of that list... Public affairs must be the custodians of the corporate image...the desocialisation of smoking poses an enormous threat to our business today. That is the biggest issue -- people not smoking because of either social pressure to stop or restrictions brought about by social pressure. This social pressure is also leading to marketing restrictions.... In many parts of the world, taking the primary health issue is the wrong way to go...we are far better off discussing business and economic issues, our contribution to local economies and the amount of tax we pay.... Our opponents are now skilled professional adversaries -- no longer the well meaning amateurs -- we must match them." [NB. Note that at the World Economic Forum, Davos, 1999, BAT Deputy Chairman Kenneth Clark mentioned in a "corridor conversation" BAT's new policy, accepting that tobacco causes lung cancer and many other major problems.]

    (Key area papers are reprinted.)

    Notable quotes:

    Excise Taxation of Tobacco Products (Bingham) -- "Increases in taxation which reduce consumption may mean the destruction of the vitality of the tobacco industry... The psychology of smoker demand is such that they are more likely to absorb smaller and more frequent price increases than larger and less frequent price increases.

    Desocialisation of Smoking (Dietrich) -- "Value of smokers' rights groups; how should they best be organised and managed for maximum impact... To what extent can we 'win' the ETS debate by concentrating on scientific arguments, indoor air quality arguments and freedom arguments?

    Risk and Risk Priorities. A Perspective on Risks in the Environmental Tobacco Smoke Debate (? Speaker) -- "The tendency to confuse 'risk' with 'cause' leads to the belief that an alteration in 'risk factors' will reduce death and disease.... Day after day, the public are given advice on how to maintain and improve their health and, in theory, live longer. Recent advice ranges from eating more fibre to eating less salt, reducing fat intake...exercising more. The advice is unending, but it is a little more difficult to substantiate the claims that life expectancy will increase as a result of taking the advice.... Smoking is known to provide support under stress, as well as needed relief, relaxation and pleasure. Studies have shown that -- by their nature and not because they smoke -- smokers as a group have personalities that seek and experience more stressful life styles. Absorbed in their endeavours, such personalities often end up having less healthy diets and exercising less for fitness. Most of these and other associated lifestyle traits have been associated with, and are recognised as risk factors for lung cancer, cardiovascular and respiratory diseases, quite independently of smoking. In families, if the breadwinner has a smoker's personality and lifestyle, other members of the household may end up developing similar lifestyles even if they do not smoke. This way they may also acquire independent risk factors for lung cancer, cardiovascular and respiratory disease.... Most chemicals found in tobacco smoke are also present in outdoor and indoor environments, the food we eat, and the waters we drink.... It is...misleading to give the impression that if smoking is banned in public places and the workplace, people will no longer be exposed to the chemicals that constitute tobacco smoke. Those chemicals are present in the air anyway, and in far greater concentrations, from other sources. It must also be pointed out that, although these constituents of tobacco smoke are among the most heavily researched substances in the world, no constituent at levels found in cigarette smoke has been scientifically proven to cause cancer or any other disease in humans." [NB. These specious arguments are clearly necessary to maintain the morale of the international PR delegates.]

    Environmental Tobacco Smoke: Science or Politics? (?Speaker) -- "One of the most disturbing trends of recent years has been the manipulation of science and the scientific process to fit pre-selected policy goals." [NB. See previous paper.] "From a scientific point of view, the available evidence simply does not support the EPA's conclusions. For lung cancer, for example, 23 of the 31 studies now carried out have concluded that there is no significant increase in risk associated with exposure to a smoking spouse.... including one of the largest studies ever carried out in the USA on ETS and lung cancer." [NB. Simon Chapman/ Stephen Woodward papers on passive smoking litigation in Australia are attached.]

    The Battle Won: The War Continues. How Bangladesh Tobacco Company Tackled the Ban on Tobacco Products Advertising in Bangladesh (?Speaker) -- Between 1987 and 1989, Professor Nurul Islam (a former chain-smoker) convinced then-President H.M. Ershad ("Another ambitious man fishing for international fame") to promulgate anti-smoking curricula in primary school syllabi, health warning clauses to be printed on tobacco packaging, banning of advertising and sports sponsorships. In 1990, Ershad was overthrown. The counter strategies included the arguments that advertising does not get people to start smoking, that local, cheap brands would take over the market, that nearly one million people depended for their livelihood on the industry, including the news media and other businesses, that sports could not find such good sponsorship and would fold up. With these arguments BTC went to the major ministries, intelligentsia (BTC supports the arts), sports groups, the press, advertising agencies. BUT "The Acting President, the Prime Minister and Leader of the Opposition all being non-smokers, the last two being women, were not approached. Smoking is still somewhat of a social taboo, more so for women in Bangladesh. This trend is beginning to change, though very slowly." Continuous lobbying allowed the ordinance to die.

    Case Studies (theoretical crisis situations to test delegates' ability to respond, such as industrial accident, major fire, environmental or product contamination, etc.) -- "Case Study 4. Stolen Documents. The Facts. The details of the ETS consultants programme, including the names of the consultants, the amounts of the retainers, a list of proposed papers for publication and details of current communications strategies are contained in a briefcase, which has been stolen from a company executive at Heathrow Airport. The theft coincides with the handing down of a negative judgment in a 'passive smoking' case in Europe and the loss of the appeal against the AFCO judgment in Australia."

21. 21. Management Paper, A. L Heard to TEC, 16 March 1990, "Rationale for Restructuring of Southampton R&D," BAT (File no. BA0699), 502635057 - 063.

    (Decentralization of R&D in 1985, but fundamental research needs to be recentralized within the Fundamental Research Centre or the BATCo Technical Centre for "Product Maintenance Development and Innovation.)

    Notable quote: "Important elements will [include]...: iii) basic product development (e.g. the development of ammonia technology for modified Virginia products."

22. Speech by BAT Chairman (Barry Bramley) to T-Management Development Programme at Chelwood, 24 July 1990, BAT (File no. BA0783) 502619006 - 029.

    Notable quotes: "We should not be depressed simply because the total free world market appears to be declining. Within the total market, there are areas of strong growth, particularly in Asia and Africa.... Tobacco products are very resilient to changing conditions. The industry is consistently profitable, and there are opportunities to increase that profitability still further."

    "A generally falling incidence of smoking due to a variety of causes, including the anti-smoking lobbies.... Increasing restrictions are being imposed worldwide on the advertising of tobacco products." "In a number of major markets, notably the USA, Malaysia, Argentina and the Middle East, significant growth in the low priced, primarily blended, segment has re-emerged."

    "I wish to highlight four external pressures which have a major impact on our business: the competition; the world economy; smoking and health; and excise taxation and our ability to secure price increases. A) THE COMPETITION. Philip Morris is our most aggressive competitor...Marlboro remains the single most important threat.... Reynolds...continues to make ground in certain key markets as a result, like BAT, of a more focussed international marketing strategy." "B) THE WORLD ECONOMY. ...Population growth rate is high and the demand exists, but much will depend on an improvement in the economies of certain of these countries, particularly in Africa (e.g. Uganda, Nigeria, Cameroon and South Africa) and Latin America (Argentina and Venezuela).... Demand will accelerate when cigarettes become significantly cheaper for the consumer in real terms." [Emphasis added.] "C) SMOKING AND HEALTH.

    Consistent and increasingly co-ordinated attacks on the industry by national and international pressure groups on the issue of smoking and health, and the related issue of social acceptability, have undoubtedly had a constraining effect on sales volume in North America, Europe and the Far East.... On the issue of scientific evidence, a statistical association between the habit of smoking and certain diseases has been claimed in epidemiological studies. However, the mechanisms of these diseases are not understood nor has it been established what role, if any, smoking plays in the initiation or development of the diseases. It is the view of BAT that further research is required on this complex subject. A statistical association alone is not proof of causality. BATCo will be taking a very much more proactive attitude in [the] future against the critics of the industry, and we shall be encouraging operating companies also to take a more positive stance against excessive anti-smoking pressures." "BATCO'S KEY STRATEGIES... In 42 countries we have operating companies, with manufacturing facilities, which are primarily concerned to exploit their own domestic cigarette markets. These companies sell both their own national brands...and, where appropriate, international brands.... In the export markets, which comprise all those countries where BAT does not have an operating company, BATCo, through BATUKE [BAT United Kingdom Export], is responsible for the sales of its UK international brands, and B & W [Brown and Williamson] is responsible for the sales of its US international brands. The only exception to this is China. All BAT cigarette products into that large and growing export market are channelled through BAT Hong Kong.... BATCo therefore has two objectives. In the domestic markets it is to maintain or gain market share using whichever BAT Group brands are necessary to attract consumer preference. In the export markets, it is to gain an increasing share of the UK international brand segment, which is itself a static segment."

    "We have adopted a highly focussed approach to marketing. Advertising and promotional expenditure has been diverted from declining brands, and has been placed increasingly behind growing brands.... Most important of all...is the question of product quality....product and smoking qualities.... Introduction of products which have marketable elements of innovation.... Capri was the first example of a new ultra slim concept.... Innovative processes also being developed, e.g. tobacco expansion." [NB. The process reduces the total amount of tobacco mass, number of puffs, tar and sidestream smoke per cigarette.]

23. Minutes of meeting, D.J. Leach, 22 October 1991, "Far East Re-Organisation," BAT (File no. BB0180) 500038508 - 509 and 500036528 - 530.

    (Creation of a separate BAT China company,"with the organisation in China pushed to its limits.")

24. Company Brochure, February 1993, "BAT Industries. The Global Tobacco Company,"

    BAT (File no. BB0362) 500031281 - 317.

    (A "puff" piece. 100 tobacco operations in over 50 countries, Over 650 brands and their versions and extensions sold in over 160 markets, contracts for growing tobacco in 24 countries and exports leaf from 18. 570 billion cigarettes produced in 1992. With three other international companies, 1.7 trillion, 30% of the world total)

    Notable quotes: "BAT invests for the long-term and seeks to contribute to the development of the countries in which it operates. BAT has an international reputation as a good corporate citizen." "Research to increase or decrease individual components of smoke constitutes an important part of the research programme. For instance, certain compounds present at quite low levels can have an important positive or negative affect [sic] on smoke taste and flavour characteristics. Control of such compounds have [sic] an important effect on smokers' choice of product."

25. From a 1994 annual report to stockholders, listing of Board of Directors, BAT (file no. BB0429) 503805941.

    (Clayton Yeutter was appointed to BATCO Board on 1 December 1993; he is former US Secretary of Agriculture and US Trade Representative, was responsible for forcing open Taiwanese, Japanese and Korean markets to US cigarette.)

26. Research report (RD. 1440), D.E. Creighton, 1 October 1977, "Smoking behaviour (low delivery cigarettes)," BAT (File no. BC0090) 503108915 - 923.

    (Ten smokers, BAT R & D employees, test two very low delivery brands, 1.0 mg tar, 0.1 mg. nicotine, smoking them for one week.)

    Notable quotes: "Measurements show that both low delivery brands were smoked in a similar way and with a much greater intensity than the subjects' usual brand (mean delivery 25 mg TPM [total particulate matter], 1.6 mg nicotine). Compared to machine smoking, on average about twice as much smoke was taken from each cigarette by the panel, in about half the time. Although the intensity of smoking individual cigarettes was increased, the number of cigarettes smoked per day was not markedly altered." "There were some observed abuses of the cigarette design. These took place outside the behavioural laboratory. It was observed that at least one subject learned that by placing the cigarette further into the mouth, the ventilation holes could be covered up and smoke deliveries increased. It was also noted that the fingers used to hold the cigarette could be conveniently placed to cover up some of the ventilation holes. One subject was seen to cover the ventilation holes with clear adhesive tape... [NB. A BAT R & D reader has double-stroked this paragraph in the margin. See next item] A further observation, noted from the oscilloscope traces of individual puff profiles, was that the incidence of double and multiple peaked puffs was much higher than has been observed previously." "As the subjects could not hope to equalise their nicotine intake from one of the low delivery brands with that from their usual brand (unless they took about three to four litres of smoke, which is clearly impossible) it might be expected that more cigarettes of the lower delivery brands would be smoked in a day. In fact the number of cigarettes smoked per day was similar to numbers smoked during a comparable panel test where the nicotine deliveries were between 8-19 times higher." "The smokers...were unwilling to increase their smoking intensity beyond one puff per 30 seconds and the maximum average volume per puff is 50-60 ml.... The results suggest that few smokers will find very low delivery cigarettes attractive."

27. Memo, T. Hirji, 11 July 1983, attached to the above 1977 research report, "Comments on 'When low tar cigarettes yield high tar: Cigarette ventilation hole blocking and its detection,'

    (A paper by Lombardo, Davis and Prue, Addictive Behaviours, 1983, Vol. 8, pp. 67-69)," BAT (File no. BC0090) 503108924 - 925 ((924-925 pages also numbered 100436925 - 926).

    (Discredits the research showing compensatory behavior. Discusses possibility of a counter-publication by a third party, "to help relieve some of the pressure on the industry." Discusses political pros and con-- "we need to weigh very carefully the effect such a publication would have on the Group activities involving products with ACTRON filter" -- in a doubly scored paragraph.)

28. Minutes of meeting, unsigned, 14 July 1977, "Millbank Product Development Committee," BAT (File no. BC0090) 503108928 - 929 (attached to above two items).

    (Among other items, discussion of compensation for filter ventilation holes, triply scored on the margin.)

    Notable quote: "Mr. Sheehy asked whether, from our knowledge of the compensatory responses of smokers, cigarette designs could be postulated which took advantage of this information. For example, could a 9 mg. [tar] cigarette be designed which would make the desired adjustment of smoking pattern easy to the smoker."

29. Portion of Proceedings of a Research Conference in Brazil, 22-26 August 1983, BAT (File no. BC0090) 503108930 - 932 (also 109882435, -443 - 444) (attached to the above three items).

    (Paragraphs 16-24 of the Proceedings, dealing with smoker compensation.)

    Notable quotes: "There is now an urgent need to assess whether there are ways in which the industry can either counter the situation or alternatively turn it into a commercial advantage."

    [The possibility of a whole new FTC testing procedure]..."would weaken the concept of low tar

    and would both confuse and concern the smoker. Operating Companies around the Group should, therefore, do everything possible to defend and maintain the present standard test procedure... In the meantime it is essential that we should increase our own research into how and why people smoke: eg what the smoker needs or gets from the cigarette in terms of nicotine and other sources of satisfaction." "We must aim to use our knowledge to develop products that give improved smoker satisfaction. The concept of 'smoke elasticity' can be expected to play an important role." [NB. "Smoke elasticity" refers to filter designs to deliver smoke in different ways. It is also possible that Y-1 research arose from this concept.]

30. Job description for "Scientific Advisor," with curriculum vitae of Sharon Boyse attached ("Manager of Smoking Issues, 1991-present"), BAT (File no. BC0223) 503113947 - 952, and -962.

    Notable quotes: "Principal Accountabilities 1. Follow and interpret developments in medical and scientific research relating to smoking and health with the aim of advising the Company on implications for the business." "Problems and Challenges. A typical challenge of the work is deciding the importance of new scientific findings and their implications for BAT's business, for example, the importance of revolutionary methods of administering nicotine through the nicotine patch developed by a pharmaceutical company.... Another challenge is to respond to an operating company's concern about a health issue and its relationship to smoking, as raised in the media...enabling the operating company to respond if the issue is raised in their country."

31. "Smoking Issues, Part III. Position Papers," March 1981, BAT (File no. BC0270) 503092393 - 421.

    (Titles of brief papers are: Advertising/Sponsorship, Constituents, Benefits of Smoking, League Tables, Addiction, Marijuana, Social Unacceptability of Smoking, Passive Smoking, Social Costs of Smoking, Product, Research, Legislation/Taxation, S&H Controversy, Smoking and the Pill, Smoking and Pregnancy, Smoking by Non-adults, Television and Radio Appearances, Voluntary Agreements, Moderation Campaigns, World Health Organization, Operations in Developing Countries, Advertising Methods Used in developing Countries, Tobacco Growing Inhibiting the Production of Food Crops in Developing Countries, Use of Wood for Flue-curing.)

    (Positions on each issue are depressingly familiar and not materially different in 1999: Advertising and sponsorship do not increase consumption or initiate smoking; none of the constituents of tobacco are harmful or only present in tiny amounts, or also found in food and water and air; smoking is beneficial by reducing stress and tension that in themselves cause disease; smokers on the whole don't compensate, smoking is a habit not an addiction although "we are totally opposed to smoking in excess and do not encourage it."; if marijuana were legalized, "whether we would engage in this business it is impossible, at this, juncture, to say. We would then consider these new circumstances."; smoking is an adult choice, smokers should not be ostracized; passive smoking is not harmful, an annoyance perhaps, White and Froeb's study has been discredited; Garfinkel's first study is cited; "punitive" taxes punish the poor; statistical association is not causality, may be purely accidental, linked to other factors; oral contraception and smoking are linked only by being used by "liberated women" susceptible to illnesses; we are researching the ill-effects of smoking and pregnancy; school-based curricula on smoking should not only blame smoking but also show other risk factors affecting health; "WHO should [not] interfere in the internal affairs of [member] countries"; in developing countries, "We are being actively encouraged by many Third World governments to develop a tobacco industry.... We are proud to have played a large part in the initiation and expansion of tobacco growing and export and cigarette manufacturing which have contributed substantially to their economic and social development"; "In most developing countries there is abundant land available and thus its usage for the growing of tobacco in no way inhibits the production of food crops" and in any case BAT helps farmers grow more food crops.

32. "Smoking Issues, Part I. Assumptions" (see above item), March 1981, BAT (File no. BC270) 503092368 - 373.

    (47 predictions of the future issues facing the industry, that lead up to the position papers in Part III; most related to smoking and health, possibilities for "safer" cigarettes, especially low-delivery, advertising and marketing, especially in third world.)

33. Undated document, Robin to Graham, "Proposed revised document, examined by Mike Dixon and Peter Bevan, "'Bound' and 'free' nicotine," no date, BAT (File no. BC0411) 503106035 - 036.

    (One-page document downplaying the distinction. Alkalinization helps increase the "impact" sensation of smoke on the back of the throat.)

    Notable quote: "After uptake the free/bound ratio in the human system will depend upon the pH of the body fluid in which it is transported, which will overwhelm the relatively small quantity of smoke. Thus it will be immaterial at this stage whether the nicotine was originally free or bound or in some proportion of each."

34. Contract between BAT Uganda and Paramount Pictures for the movie "Congo," art release and cover letter from latter to former, 21 December 1994, BAT (File no. BC0467) 503109604 - 606.

    Notable quote: "As we discussed, your company's cigarettes will be used in our film as the product is intended. Specifically, one of our main characters, Munro Kelly, the American guide in the Congo, will be smoking your cigarettes. The only slightly different use is when he offers a cigarette to Amy, the gorilla who is being placed back in the Congo, and she takes it and imitates Munro by smoking."

35. Letter from Kendrick Fells (Brown and Williamson) to Nick Canner (BAT Industries UK), 22 January 1990, BAT (File no. BC0534) 503128305 (letter) - 313 (attached article).

    (Attached article from the law journal Litigation, Lawrence B. Solum and Stephen J. Marzen, "Destruction of Evidence.")

    Notable quote: "I thought you might be interest in an article discussing possible consequences of corporate maneuvers with documents appearing in a current edition of litigation, a journal of the American Bar Association Section of litigation.

36. Memo from Richard Binns to the Communications Group, 26 August 1986, "R & D Centre Document Review," BAT (File no. BC0581) 503140657 - 658.

    (Review by visitors of all "files, disks, bench books, loose papers, etc.". The files will be "taken to London and reviewed" unless needed on site; these to be reviewed in Southampton. All returned to owner, to be closed out, nothing new added.)

    Notable quote: "Until further notice, neither files nor documents within files which have been reviewed should be destroyed or otherwise disposed of."

37. Analysis, unsigned, about May 1992, "Note for the Tobacco Strategy Review Team. Transdermal Nicotine," BAT (File no. BD0013) 501557432 - 441.

    (Market analysis to see if BAT ought to get into the patch business.)

    Notable quotes: "Sales of patches in New Zealand are said to have been better than the makers expected and it is reported that demand is 'amazing' in the U.S.A.... It could be argues that patches represent an alternate product for nicotine users.... They would however need to be clearly positioned as not being an alternative to cigarette smoking, since this would erroneously suggest the cigarette itself is a simple nicotine delivering device." "Patches may focus debate on nicotine as a psycho-active component of cigarettes, diverting attention from other valid aspects of smoking satisfaction (taste, texture, visual/tactile stimuli) and potentially focusing on nicotine as a drug and a poison." "In product liability litigation tobacco companies assert that people continue to smoke because they enjoy it and that it is not appropriate to term smoking as addictive when millions of smokers have given up voluntarily and without assistance." "Thus, from a business opportunity viewpoint, TNPs should be viewed as a high profit potential but high risk venture."

38. "Key Area Papers - Public Affairs" 30 May 1991, BAT (File no.BD 0013) 501557710 - 720.

    (Standard positions on smoking issues. More stress on developing a "good corporate image".)

39. "Note to No. 1s Overseas," W.J. Dickson (Westminster House, Millbank), 7 July 1987, "Smoking by Non-Adults and Advertising," BAT (File no. BD 0033) 501567217 - 218.

    Notable quotes: "We do not aim our cigarette advertising at non-adults nor do we use advertising campaigns which could be interpreted as encouraging non-adults to smoke. For this reason advertising should not be placed in media where the majority of the audience is non-adult.... Non-adult means people under the age of 18 (or a higher age if regulations in any particular country so require)." [NB. This can be checked; consider "Project Kestrel" and "Just Black" ads in India in 1997.] " Would you please ensure that all employees involved in marketing and advertising are reminded of this position, and similarly your advertising agencies.... I should emphasise that we attach great importance to this policy and any wilful disregard of it by a BAT employee will have the most serious consequences for the person concerned."

40. Letter from W.J. Dickson to D.K.Thorpe (BATUKE), 14 September 1987, "Advertising and Promotions," BAT (File no. BD 0033) 501567219 - 220.

    Notable quote: "We are concerned to ensure that all our advertising and promotional activities comply with local laws, codes of practice, and industry agreements.... Check very carefully with your local lawyers...."

41. Memo draft, T.R. Bates, "Annual Smoker Questionnaire: Adult Definition," January 1991, BAT (File no. BF1132) 500175119.

    Notable quote: "I am writing to inform you...of an important change that has to be made in the collection of statistics. We have been asked to define adult as 18+, therefore, if you presently collect statistics on smokers under the age of 18, I would ask you to terminate this as soon as possible." [NB. Over three years after Dickson's letters.]