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otine and this much tar. You've talked a lot about the lengths to 

 which your company goes to meet the consumer demand. 



What would happen if the FDA 



Mr. Sandefur. It's according to what Dr. Kessler and his staff 

 would recommend or would tell us to do. In my opinion, if we make 

 a cigarette that's not satisfying to the American smoker, they are 

 going to fmd a cigarette that does satisfy them. 



Congressman, this country manufactures about 12 percent of the 

 annual cigarette — annual consumption of cigarettes worldwide. 

 And, if my figure is correct, there's something like 4 percent of the 

 cigarettes worldwide consumed in the United States. 



Now, I must tell you that if we market, if we manufacture — if 

 FDA forces us to manufacture and sell cigarettes that are not satis- 

 fying, the demands of America's smokers, we are going to have 

 massive black market cigarettes in this country, a massive black 

 market. 



We already know that there is black market between States on 

 taxation in cigarettes moving across State lines. Can you imagine 

 what would happen if tomorrow morning every cigarette manufac- 

 turer had to produce a cigarette that wasn't satisfying to the 50 

 million smokers or 47 million smokers in the United States, what 

 would happen? 



The crime element around the world would have a heyday in this 

 country. Forget the fact that we don't derive any benefit from the 

 Federal excise tax. Forget that. We have a situation where we 

 aren't controlling anything. 



Mr. Greenwood. I remember that in the early 1970's, there was 

 kind of a fad of roll your own cigarettes. They had little machines 

 that 



Mr. Sandefur. Sure. Our company produced some, yes, sir. 



Mr. Greenwood. I would assume that if the FDA were to say 

 every cigarette must be the ultra light variety so that we control 

 the nicotine, that you might see a resurgence of that. 



Mr. Sandefur. Well, that's not my concern because the FDA 

 could take jurisdiction over that, as well, just depending on what 

 Congress decides. My concern is where Congress won't have juris- 

 diction or FDA won't have jurisdiction and that's in other countries 

 around the world, where you cannot tell the manufacturer in those 

 countries what in fact they produce. Those products will find their 

 way into this market, this U.S. market. 



Mr. Greenwood. Can you tell as much about the difference be- 

 tween domestically produced cigarettes and foreign cigarettes? Do 

 you know much about the difference in their standards? 



Mr. Sandefur. Yes, I know a lot about it. I've been thinking a 

 lot about it. I know that cigarettes produced offshore generally 

 have higher tar and nicotine than cigarettes produced and 

 consumed in the United States. 



For instance, the products produced in China, a lot of those prod- 

 ucts don't have filters, they have high nicotine deliveries. It wasn't 

 until the advent of the U.S. manufacturer being able to market oj.r 

 cigarettes in Japan that some of the type low tar products became 

 available in the Japanese market and they are doing very well and 

 the Japanese government who runs the tobacco industry in Japan 



