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HKU 



WCXCROtNI) KATCTIAl CM THE CICAaSTTE IKPOSTIT ailNT 



Th* followinf ia/oraitioa w»s |lvta us by th* presideots of tht 

 leadinf tobacco coopinics at tht Hotel Plaia this ■ornia(. 



I, Participants 



Thert is do trade association Id the cigarette ijidustry. This is 

 because the tobacco coopaoies are preveoted by the dissolution decree of 

 1911 aad the criminal convietioas under the Anti-Trust Act in 1939 fro* 

 carrying on «any group activities. 



As a Batter of fact, before the current health crisis arost, 

 cigarette aasufacturers never aet together at any tiae except at dinner* 

 honoring soce industry leader. 



The group vas called together by Mr. Paul Hahaa, President of the 

 American Tobacco Ccnpaay. The chief executive officers of all the leadiof 

 coopaaies - t, J. XeyBolds, Philip Horris, Benson k Hedges, V, S. Tobacco 

 Coapany, Bro«D h Villiaeson - have agreed to go along with a public rela> 

 tions profraa ob the health issoe. 



Liggett k Nyer* it not partleipatiag la th* orgaaitatioa beeaus* 

 that coeipany feels that the prefer frocedts** la to ipore the «hol« coatro> 

 versy. 



In addition to th* cigarette coapani**, th* tvo iaportant groups 

 of tobacco growers involved ar« enthusiastically supporting the new prograa. 

 Together these tobacco grower* represent tea* 600,000 fants and 2,700,000 

 farmers. Obviously, th* tobacco (rowort ar* th* political strength sloog 

 with th* 1,300,000 retail tobacco outlets. Th* tobacco growers will b* 

 represented by officials of the grower organitatioos, 



II, Organisation 



Because of the anti-trust background, th* coeipanies do not favor 

 the incorporation of a foraal association. Instead, they prefer strongly 

 the organitation of an inforaal coonittee which will be specifically 

 charged with the public relations function and readily identified as such. 



