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Mr. Sandefur. Yes, sure. 



Mr. Synar. The FDA stated on Tuesday that DNA Plant Tech- 

 nologies had been authorized by your company to disclose to the 

 FDA that Y-1 was never commercialized. The press release that 

 you have issued yesterday flatly denies that. 



Is it your testimony today that Brown & Williamson did not pro- 

 vide such authorization? 



Mr. Sandefur. We told DNAP that they should cooperate with 

 the FDA. We certainly didn't tell DNAP that they should deceive 

 the FDA. 



Mr. Synar. What are the names of the Brown & Williamson offi- 

 cials who spoke to the DNA Plant Technologies regarding this com- 

 mercialization? 



Mr. Sandefur. I don't know, but I will find out and let you 

 know. 



Mr. Synar. What specifically did you authorize DNA Plant Tech- 

 nologies to do? To say, anything? 



Mr. Sandefur. We told them to cooperate, it's my understand- 

 ing. 



Mr. Synar. Now, in your press release, Brown & Williamson 

 states that your patent application for Y-1 was rejected in 1993 for 

 lack of uniqueness. Yet isn't it true that on February 28 of this 

 year, you filed an appeal on the grounds that for the first time, a 

 plant had been developed with high nicotine content that grew well 

 and could be used commercially? 



Mr. Sandefur. That's my understanding. 



Mr. Synar. Isn't it true that before you received an answer to 

 your appeal from the Patent Office, you expressly abandoned that 

 patent on March 16? 



Mr. Sandefur. That's my understanding, and I would like to tell 

 you why. 



Mr. Synar. OK 



Mr. Sandefitr. Not that I made the decision to abandon the pat- 

 ent, I didn't. But I made the decision in either late February or 

 early March that the issues regarding Y-1 would have to be recon- 

 sidered. That was based on the most recent import laws that the 

 Congress passed with regard to import restrictions. 



Now, I understand there may be some differences in terms of 

 GATT with regard to those restrictions, but I couldn't take that 



Mr. Synar. Is it your position 



Mr. Sajjdefur. Excuse me. I couldn't take that risk. So what I 

 said was, because it's very, very important that we have the ability 

 to obtain oriental leaf for the manufacture of our cigarettes, our 

 oriental leaf is bought in Turkey and Greece and Yugoslavia and 

 places like that, that was part of my allotment, my allocation, if j 

 you will, and I didn't want to give that up. 



I could in fact buy domestic flue-cured tobaccos that would re- 

 place Y-1. So I made a decision, I and my executive committee 

 made the decision that we were going to get out of it. 



Now, I can tell you, in retrospect, that was a good decision be- 

 cause it certainly wasn't worth the grief that my company has had 

 to go through with the FDA over this subject because it's obviously 

 of a controversial issue today when everybody thinks, because I 



I 



