Hon. Henry A. Waxaan -9- September 27, 1994 



Subcommittee staff with respect to procedures for the Sub- 

 committee's handling of materials provided by the Council. 

 In the interim, I respectfully request that this letter be 

 included at page 82 of the May 26 transcript. 



We have collected copies of the audited financial 

 statements of the Council and its predecessor for each year 

 from 1963 through 1993. (In 1983, the Council changed fro» 

 a calendar year to a November 1 fiscal year.) We have also 

 collected copies of budgets for each year from 1954 through 

 1962; we are unable to locate financial statements from 

 before 1963. Again, this financial information is non- 

 public, and the Council and its members regard it as confi- 

 dential. We expect to provide these tables to you promptly 

 after we have reached an understanding with the Subcommittee 

 staff with respect to procedures for the Subcommittee's 

 handling of materials provided by the Council. In the in- 

 terim, I respectfully request that this letter be included 

 at page 82 of the May 26 transcript. 



Item F in the Appendix is a copy of the Council's 

 current by-laws. Article III of the by-laws provides the 

 method of apportioning the funding of the Council among its 

 sponsors. 



MAI contracts fTr. at p. 70) . Item G in the 

 Appendix includes copies of each of the Council's contracts 

 with Microbiological Associates, Inc. ("MAI"), together with 

 contract renewals. The Council spent some $12 million under 

 the MAI contracts on a large-scale, long-term study of the 

 effects of smoking inhalation on mice. 



I was mistaken when I told the Subcommittee that 

 these contracts contained no restriction on publication by 

 MAI. The Council has had no research contracts during my 

 tenure, and I had erroneously assumed that the Council's 

 policies with respect to publication by contract researchers 

 were the same as its policies with respect to publication by 

 grantees. Since my testimony, I have learned that the MAI 

 contracts provided that the Council's prior written approval 

 was required for MAI to publish its research findings. Such 

 provisions are customary in research contracts. 



It is my understanding that the results of the 

 major inhalation study performed by MAI were published in 

 complete and unedited form. In addition, MAI published 



