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SCMP: Documents show industry Asia plan on ETS



                           Monday  January 18  1999

                The Cigarette Papers 
                       Smoking guns 

                HEDLEY THOMAS and JASON GAGLIARDI 
                Millions of pages of once-confidential tobacco
                company documents have been posted on a
                range of web sites in recent months. Mostly
                from cigarette giants Philip Morris, RJ
                Reynolds, British American Tobacco and
                Lorillard, they range from lengthy scientific
                studies and sensitive correspondence to
                marketing plans and memos dating back to the
                1950s.

                When written, the tobacco industry could not
                have imagined they would ever be publicly
                inspected. They are the result of a
                ground-breaking legal settlement between the
                tobacco industry and United States
                attorneys-general.

                "We are here to do something radical. To look at a
                problem. To achieve a solution. Nothing should be
                withheld."

                Thus begins a sprawling account of a high-powered
                brainstorming session organised by cigarette
                colossus Philip Morris and dubbed Project Down
                Under, for the June, 1987, think-tank's antipodean
                provenance.

                Details of the meeting are revealed in a
                once-confidential Philip Morris document, a
                minuted note of a top-level strategy, and among
                more than 30 million pages - some of which reveal
                the tobacco industry's darkest secrets - prised from
                the companies' own files and posted on the Internet
                as a result of litigation in the United States during
                the past 12 months.

                The memo points to the genesis of an international
                scheme that has now blown up in the face of the
                tobacco industry like an exploding cigar. A scheme
                that involved the channelling of millions of dollars
                from the industry's war chest through a range of
                innocuous-sounding organisations in an attempt to
                procure helpful science, then merchandise the
                findings to ease fears over the effects of
                second-hand smoke and win major concessions
                from the public and private sector over bans.

                The stakes were huge: this was the 1980s, when
                objections by non-smokers to other people's
                smoke were becoming increasingly strident. By
                drawing pie-charts showing when and where the
                average smoker lit up, the tobacco industry
                calculated bans in work places, aircraft, restaurants
                and other venues would result in a dramatic plunge
                in the number of cigarettes smoked. People would
                have less time to puff. And that would lead to
                billions of dollars in lost revenue.

                Several key documents tell the story of how a
                coterie of tobacco big-wigs and American lawyers
                drew up a pan-industry plan to target scientists
                throughout Asia, the US and Europe in an effort to
                wrest back control of an issue on which they had
                decided to make a last-ditch stand. That issue was
                passive smoking, or, to use the industry-preferred
                euphemism, Environmental Tobacco Smoke (ETS).

                According to the US Environmental Protection
                Agency (EPA), ETS is a mixture of the smoke
                given off by the burning end of a cigarette, pipe or
                cigar and the smoke exhaled from the lungs of
                smokers. It cites the possible health effects as eye,
                nose and throat irritation, headaches, lung cancer,
                and heart disease. It says children exposed to ETS
                face increased risk of lower respiratory tract
                infections, such as bronchitis and pneumonia, ear
                infections, build-up of fluid in the middle ear,
                increased severity and frequency of asthma
                episodes, and decreased lung function.

                In January 1993, the EPA published a controversial
                report designating ETS as a human carcinogen
                more dangerous than asbestos, benzene or radon,
                and estimated passive smoking was responsible for
                about 3,000 American lung cancer deaths each
                year. The tobacco industry hit back hard, accusing
                the EPA of putting its own spin on statistics to
                justify a political vendetta against tobacco.

                However, the battle lines in this international
                slugging match were drawn much earlier. In the
                early 80s, the big tobacco companies could see
                which way the winds of scientific and public opinion
                on ETS were blowing. By the mid-80s, they
                believed their position was becoming critical. By
                1987's Project Down Under meeting, they had
                girded their loins for a multi-million dollar battle.

                Asia was, and remains, crucial to the industry.
                While increased government regulation, litigation
                and public awareness of the implications of smoking
                were harming the traditional US and European
                markets, Asia was wide open and primed for
                exponential growth.

                The upshot was a scheme hatched by the world's
                biggest tobacco company, Philip Morris, and
                supported by fellow giants RJ Reynolds, British
                American Tobacco/Brown & Williamson and
                Japan Tobacco Inc.

                The once-secret memos reveal it was called the
                Asia ETS Consultants Programme or Project. It
                revolved around a drive to identify and recruit
                scientists to push the industry's line on ETS -
                namely, that its contribution to disease was virtually
                non-existent and that it was not a major indoor air
                pollutant. The programme thrived under the close
                supervision of industry stalwarts like the
                Harvard-educated lawyer John Rupp, of huge
                Washington DC firm Covington and Burling.

                The contents of the documents - available on the
                Internet - hardly make edifying reading for the
                Asian scientists named as tobacco industry
                consultants. Indeed, the lawyers and tobacco
                executives' references to the scientists verge on the
                condescending; they were dubbed "whitecoats", to
                be "recruited", "oriented", "educated" and
                "deployed".

                In conjunction with the programme, various loftily
                titled institutes and publications were set up -
                purporting to be independent though substantially or
                wholly backed by tobacco money, the documents
                reveal. They were packed with tobacco consultants
                and overseen by the industry's lawyers, who
                encouraged the scientists to attend international
                symposiums that were quietly sponsored by
                cigarette companies, then to provide studies used
                by the companies to further their cause.

                In Hong Kong, the two scientists named in the
                memos as part of the Asia ETS Consultants
                Programme are well-known figures. Dr John
                Bacon-Shone inhabits the top echelons of
                government policy-making as a full-time member of
                the Central Policy Unit. He was seconded there last
                year from his job as director of the Social Sciences
                Research Centre at the University of Hong Kong.
                He is brilliant, articulate, a kind of academic
                renaissance man, with his finger in a mind-boggling
                array of research pies.

                Dr Sarah Liao Sau-tung, a chemist, is the managing
                director of EHS Consultants. She has worked for
                many private and public organisations, including
                British American Tobacco (BAT), the Consumer
                Council, and the University of Hong Kong. She
                recently completed a $10 million indoor air study
                for the Environmental Protection Department.

                Both vehemently reject the tobacco industry's
                assertions that they knowingly took tobacco money
                to work for cigarette company interests, and say
                descriptions of them as paid tobacco consultants
                are gross and shocking misrepresentations. (see
                page 19)

                Their comments are at odds with those of Mr Rupp
                and the tobacco industry. Mr Rupp, now based in
                Paris, Donald Harris, Hong Kong-based Philip
                Morris Asia vice-president, and Clive Turner,
                former Asian Tobacco Council head, all asserted to
                the Post that Dr Bacon-Shone and Dr Liao knew at
                the time that they were being paid to be tobacco
                industry consultants.

                The documents also show the tobacco industry had
                a particular affection for the work of Dr Linda Koo
                Chih-ling, a former University of Hong Kong
                Department of Community Medicine researcher.
                Her research showing diet and other factors were
                more to blame for lung cancer in Chinese
                non-smokers than ETS was manna from heaven for
                the industry. She also collaborated closely in her
                research, the memos show, with the University of
                Gothenburg in Sweden's Professor Ragnar
                Rylander - revealed by the tobacco documents to
                be one of the brightest stars in the industry's galaxy
                of consultants, pulling in US$150,000 (about
                HK$1.16 million) a year in fees and research grants
                in the early 90s as one of the top consulting
                "whitecoats". Dr Koo was not regarded by the
                tobacco industry as a paid consultant.

                Professor Rylander periodically reported to Philip
                Morris on the progress of his work with Dr Koo
                and his visits to Hong Kong to meet her. In one
                letter, dated August 14, 1986, he recounts meeting
                her in Hong Kong a month earlier, "to review the
                present status of the [lung cancer] project and to
                suggest new approaches for analysis or additional
                research projects aimed at defining risk factors for
                lung cancers among non-smokers". He says further
                analysis of the material is important, to learn about
                "confounding factors", some of which "may prove
                to be more highly associated with lung cancer
                among non-smokers than the ETS exposure itself."

                He goes on to say: "I gave as much encouragement
                as possible as to the finalisation into a manuscript . .
                . If a new international workshop on the effects of
                ETS is to be held, it is strongly suggested that Dr
                Koo participates and presents a review of her
                data."

                Dr Koo's star was well and truly on the ascent with
                the tobacco interests by 1987. In a letter from
                Shook, Hardy Bacon, another law firm used by
                Philip Morris, to their client, she was lauded for her
                "outstanding presentation" to an International
                Conference on Indoor Air Quality in Tokyo. Even
                internal University of Hong Kong correspondence
                between Dr Koo and her boss at the time,
                Professor Anthony Hedley, somehow ended up in
                the Philip Morris files, and then on to the Internet.

                As the now-retired Clive Turner, former head of
                the now-disbanded Asian Tobacco Council,
                recalled last week from London, ETS in the 80s
                became "an issue the industry had to think about
                because it was a stick that critics used to beat us
                with".

                RJ Reynolds scientist Dr Guy Oldaker III put it
                another way in an internal memo: "For our industry,
                the present and future effects of the ETS issue are
                clear. Smoking restrictions limit the time available
                for consumers to enjoy our products. Put simply, a
                cigarette not smoked is a cigarette not sold."

                Dr Oldaker was a visitor to Hong Kong during the
                early stages of the Asia ETS Consultants
                Programme, which began in 1989, and in a memo
                he describes his role in helping to devise the
                protocol for a $1 million indoor air study by Dr
                Koo and Dr Bacon-Shone. The study was
                sponsored by the Centre for Indoor Air Research
                (CIAR) - a tobacco-funded-and-directed group set
                up by cigarette companies in 1988 - which has also
                paid for university studies by eminent scientists. The
                CIAR says its funding source has not affected its
                independence, but critics like Boston law professor
                Richard Daynard charge: "Their true purpose was
                to generate disinformation."

                The tobacco industry's serious concerns over ETS
                are also reflected in the memo summarising Project
                Down Under. As recorded in the minutes of its
                10am session on June 24, 1987, John Rupp
                summed up the situation succinctly: "Where we are
                - in deep shit."

                He went on to say the industry had a serious
                credibility problem on ETS, that it had been "fixed
                on by the do-gooders". Mr Rupp says the
                industry's position must be to show ETS is not a
                health hazard to the non-smoker. Outside the US,
                he notes, "scientists on our side pretty good, we
                need more.

                "Studies now funded: None a silver bullet.
                Somebody has to say ETS is no risk . . . bullets
                against us are lousy, but we don't have better
                bullets."

                Another participant chimed in: "ETS not solvable
                with deductive reasoning, sum up with something
                company can get behind with $ . . . ETS is focus
                because it's driving public policy. It is the LINK
                between smokers and non-smokers."

                Mr Rupp, in a 1988 memo, also noted the industry
                "has not yet adequately dealt with Hirayama's
                study". (In a finding damaging to the industry,
                Takeshi Hirayama, chief of epidemiology at
                Tokyo's National Cancer Centre Research
                Institute, tracked almost 100,000 non-smoking
                women for 14 years, and reported in the early 80s
                that the incidence of lung cancer was significantly
                higher in those married to smokers.)

                A BAT internal document, titled "notes on a special
                meeting of the UK industry on ETS", dated
                February 17, 1988, shows that moves towards
                loading the tobacco industry guns with scientific
                silver bullets had progressed apace since Project
                Down Under.

                Penned by BAT scientist Dr Sharon Boyse, it
                begins: "Philip Morris presented to the UK industry
                their global strategy on environmental tobacco
                smoke. In every major international area . . . they
                are proposing, in key countries, to set up a team of
                scientists organised by one national co-ordinating
                scientist and American lawyers, to review scientific
                literature or carry out work on ETS to keep the
                controversy alive. They are spending vast sums of
                money to do so . . ." She notes although action on
                ETS is becoming increasingly vital to the industry,
                the plan "is perhaps questionable in some respects,
                eg involvement of lawyers at such a fundamental
                scientific level".

                The function of the US lawyers, she writes, is "to
                act as intermediaries between the consultants and
                the industry and also to indicate 'areas of sensitivity'
                on ETS research". Potential consultants would be
                contacted by the lawyers and asked if they were
                interested in problems of indoor air quality.

                "Tobacco is not mentioned at this stage. CVs are
                scrutinised and obvious anti-smokers or those with
                'unsuitable backgrounds' are filtered out. The
                remaining scientists are sent a literature pack
                containing approximately 10 hours reading matter
                and including 'anti-ETS' articles. They are asked for
                a genuine opinion as independent consultants, and if
                they indicate an interest in proceeding further a
                Philip Morris scientist makes contact.

                "Philip Morris then expect the group of scientists to
                operate within the confines of decisions taken by
                PM scientists to determine the general direction of
                research, which apparently would then be 'filtered'
                by lawyers to eliminate areas of sensitivity. Their
                idea is that the group of scientists should be able to
                produce research or stimulate controversy . . . The
                scientists would not necessarily be expected to act
                as spokesmen for the industry, but could be if they
                were prepared to do so."

                Another memo lauds how the "Asian group has
                proved to be a successful offspring" of the
                European programme. It says: "Just as we must
                continually eliminate unproductive consultants, so
                too we must continue to seek new consultants to
                satisfy new needs."

                A Philip Morris memo dated July 11, 1989,
                summarises the progress of the consultant
                programmes. "With the assistance of [law firm]
                Covington and Burling, approximately 70 scientists
                in the major international markets of concern to
                PMI have been recruited into the programme."

                In the same memo, an assessment of Asia-Pacific
                operations, Philip Morris executive Andrew Whist
                writes to his boss Geoffrey Bible (now chairman
                and chief executive of the company): "One of our
                consultants recently made a presentation to the
                Hong Kong Consumer Council that resulted in the
                council's disapproving proposed restrictions on
                tobacco advertising in Hong Kong and taking the
                position that the smoking restriction proposals
                advanced by the Hong Kong Council on Smoking
                and Health (COSH) could not be justified on health
                grounds."

                Mr Whist reports eight scientists have been
                recruited in Asia. He says while no retainers were
                allocated, compensation was paid on the basis of
                time spent, at an average of US$15,000 to
                US$20,000 a year. Internationally, the "total
                project cost" for two years is recorded as US$2.5
                million. Total legal cost over two years is recorded
                as US$1 million.

                In a "privileged and confidential attorney's work
                product, February 14, 1990", Mr Rupp wrote:
                "This report summarises the current status of the
                Asia ETS Consultant Project, which is now entering
                its second year. Much of the project's first year was
                consumed with the recruitment and orientation of
                consultants. While those activities will continue, the
                groundwork has now been laid for more of our
                attention and resources during 1990 to be focused
                on deployment of the consultants within the Asian
                markets of interest to supporting companies.

                ". . . During the past year, consultant activities have
                been reviewed and approved on an ad hoc basis -
                primarily through occasional meetings of supporting
                company representatives . . . By the time of our
                October meeting, we had recruited a total of seven
                consultants in three markets - Drs Reverente and
                Somera in the Philippines, Drs Liao and
                Bacon-Shone in Hong Kong, Drs Kim and Roh in
                Korea and Dr Wongphanich in Thailand.

                ". . . The key objective of the project has been to
                recruit and educate scientists who then would be
                available to testify on ETS in legislative, regulatory
                or litigation proceedings in Asia or elsewhere. This
                objective was based on recognition of the fact that
                there were essentially no local scientists with a
                background in ETS issues and that experience
                elsewhere has shown that it is essential to have
                credible, local scientists prepared to speak out
                when ETS becomes an issue, which often occurs
                on short notice. We have made considerable
                progress towards this goal, and now have a group
                of scientists who could provide testimony."

                Mr Rupp writes that about 80 consultants around
                the world attended a tobacco-funded symposium at
                McGill University in Montreal in late 1989,
                including Drs Liao and Bacon-Shone. "At the
                consultant meeting held in Hong Kong on January
                19 and 20, we spent a substantial amount of time
                exploring appropriate avenues for distributing the
                published proceedings of the McGill symposium
                within Asia."

                His memo says nearly all of the industry's current
                Asian consultants are working on papers for the
                tobacco-funded "Indoor Air Quality and Ventilation
                in Warm Climates" conference to be held in Lisbon
                from April 23 to 26, 1990.

                Mr Rupp's memo continues: "Among other things,
                Dr Bacon-Shone's Lisbon paper criticises the
                unsophisticated statistical analysis appearing in Dr
                Hirayama's paper on ETS and non-smoker lung
                cancer in Japan, the cornerstone of the scientific
                literature relied upon by industry critics."

                In the memo Mr Rupp then discusses the
                tobacco-funded Indoor Air International, "a
                scientific society devoted to the study and
                discussion of issues relating to indoor air quality",
                and founded by tobacco companies.

                "Beginning in January 1991, IAI will begin
                publishing on a monthly basis an indoor air quality
                journal, based in part on the McGill symposium
                proceedings. In addition, Drs Bacon-Shone,
                Ferrer, He, Kim, Liao, Liu and Reverente are
                serving on the IAI journal editorial board."

                Mr Rupp moves on to describe what was a "highly
                preliminary presentation" concerning the so-called
                "Asia Cities Monitoring Project" at a tobacco
                industry meeting in Hong Kong in October 1989.
                This project, he writes, is aimed at collecting data
                on indoor air pollution in offices, shops and public
                transport facilities and comparing it with outdoor
                pollution in the same areas.

                If approved, it was to begin in Hong Kong and then
                move to Manila, Seoul and possibly Tokyo. "We
                expect the project to show that ambient air
                pollution . . . is a serious problem in the target Asian
                cities and that the much less serious indoor air
                pollution problems that exist in those same cities
                are, in turn, caused largely by pollutants that are
                generated outdoors. Such data would be of
                substantial value in discussing with Asian officials
                sensible priorities on air pollution and environmental
                issues.

                "Our current plan is to begin the project in Hong
                Kong, under the direction of Drs Liao,
                Bacon-Shone and Linda Koo, who has agreed to
                consult on the project. A complete protocol, with
                proposed budget, for the Hong Kong phase of the
                project should be available within the next few
                weeks. If ultimately approved by the supporting
                companies, we would hope to begin field work in
                Hong Kong in May 1990 and to have the results
                ready for publication by early August. We expect
                the project to yield over its course several different
                scientific publications."

                Under the heading "Country Specific Activities:
                Hong Kong", Mr Rupp writes: "Drs Liao and
                [Roger] Perry [of Imperial College in Britain]
                currently are preparing a list of government officials
                in Hong Kong who might be given a copy of the
                McGill publication. We must emphasise again,
                however, that the decision to circulate the McGill
                book in Hong Kong and the manner of its
                circulation lie with our supporting companies and
                the Hong Kong Tobacco Institute. We took the
                opportunity provided by the January consultant
                meeting in Hong Kong to meet with JP Lee [Lee
                Jark-pui] of the HKTI [Hong Kong Tobacco
                Institute] to explain the objectives of the Asia ETS
                Consultant Project. We invited Mr Lee at that time
                to alert us to any opportunities or threats in Hong
                Kong involving ETS to which our consultants might
                respond.

                ". .. . As we move into the second year of the Asia
                ETS Consultants Project we believe we can
                provide a much higher level of public consultant
                activity than occurred last year. Having now
                achieved a reasonable command of the relevant
                literature, and with a substantial level of enthusiasm
                for the project, our consultants are prepared to do
                the kinds of things they were recruited to do, which,
                in the final analysis, is the project's real test."

                In another memo by Mr Rupp dated February 13,
                1990, he sets out estimated costs for the Asia part
                of the programme for 12 months at US$800,000.
                This included US$420,000 for recruitment,
                orientation, training and administration,
                US$225,000 for the Hong Kong and Manila
                components of the Asia Cities Monitoring
                Programme, US$35,000 for "review articles in
                Asian scientific journals", US$28,000 for
                "publishable papers" and US$50,000 for "review of
                papers, attending conference, travel and related
                expenses".

                Philip Morris Asia executive Donald Harris, in a
                memo on January 24, 1990, implores regional
                offices to make every use of the findings from the
                McGill symposium. "We must use the material
                wisely and effectively to block attempts by
                governments to establish public policies against
                smoking based upon ETS," he writes.

                "The material and information can be of greatest
                value...when it is given to the 'right people',
                probably in a private situation and probably by
                non-tobacco person."

                A 1990 memo from Covington and Burling on the
                "Whitecoat Project", the European arm of the
                consultant programme, records how one of its
                consultants managed to infiltrate the respected
                medical journal The Lancet and the World Health
                Organisation's International Agency for Research
                on Cancer, and come up with "factors other than
                passive smoking which cause lung cancer - for
                example, keeping pet birds".

                It details the exhaustive measures employed to
                distance tobacco companies from the research they
                were sponsoring, in codes worthy of a James Bond
                film: "B functions as the executive arm of A to
                which it is directly accountable . . . B is the interface
                with the operating units (whitecoats, labs) except
                for those aspects A elects to manage directly. D
                has responsibility for the range of ETS activities in
                its given markets . . . D may be considered as being
                accountable to C." It continues in this vein for
                several confusing pages.

                Extensive searches by the Post of the tobacco
                company documents turned up little of note about
                the consultants' programme during 1993, apart
                from a letter Mr Rupp wrote on March 12 in which
                he refers to how the industry had used the work of
                Dr Liao and Dr Bacon-Shone to present to
                authorities when the "Hong Kong Government was
                actively considering smoking restrictions in public
                places and in the workplace".

                By 1994, however, things are beginning to go awry.
                Donald Harris notes: "For a variety of reasons, the
                Asia ETS Consultants Programme is in a state of
                significant transition - and, quite possibly, reeling
                towards an inelegant collapse. Some effort has
                gone into fixing both the problems and the
                programme, but at this point it is more damage
                control than anything substantive."

                His concluding remark proved more prescient than
                even he probably realised: "There i 

                                                                We must use
                                                          the material
                                                           wisely and
                                                          effectively to
                                                         block attempts
                                                               by
                                                        governments to
                                                        establish public
                                                         policies against
                                                         smoking based
                                                         upon [passive
                                                           smoking] 

                                         

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