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Hon. Henry A. Waxman -3- September 27, 1994 



On September 21, while our counsel was awaiting 

 the rescheduling of the aeeting with Mr. Schultz, we were 

 advised for the first tine by Ripley Forbes, also of the 

 Subcommittee staff, that the Subcommittee needed to receive 

 information from the Council within a week, without waiting 

 for any discussions about procedures. 



Because we believe it is fundamentally unfair to 

 require the Council to provide documents and information 

 without affording us even an opportunity to discuss the 

 Subcommittee's procedures, we are now providing only certain 

 materials to the Subcommittee. This letter describes the 

 balance of the information and documents that the Council 

 has gathered in response to the Subcommittee's requests. 

 Promptly after an understanding has been reached as to these 

 procedural matters, the Council will make these materials 

 available to the Subcommittee. In the interim, with respect 

 to responses to the Subcommittee's requests that are af- 

 fected by the confidentiality issue, I respectfully request 

 that this letter be included in the record. Earlier today, 

 our counsel explained to Mr. Forbes that we would be pro- 

 ceeding in this way, and Mr. Forbes indicated that it would 

 be appropriate to do so under the circumstances. 



I reiterate that the Council will continue to 

 cooperate fully with the Subcommittee in this matter, and 

 that the Council does not object to providing full and com- 

 plete information or documents to the Subcommittee. Rather, 

 our concern arises from the possible disclosure to others of 

 non-public information and documents without any procedures 

 to control such disclosure, and from the possible impact of 

 such disclosure on pending litigation against the Council 

 and on the legitimate privacy interests of others. 



II. 



Preliminarily, I would like to provide you with 

 some of the basic facts about the Council. 



The Council and its forerunner have awarded more 

 than $230 million in grants-in-aid and contracts to indepen- 

 dent research institutions and scientists for scientific 

 research. The Council, which is funded primarily by five 

 major American cigarette manufacturers, is now awarding 

 approximately $19.5 million in research grants annually. 



