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E x h i b i t # ~ O 0

Date : y -S -

A 1 f r e d A . Betz, RMR

TRIAL EXHIBIT

10,299

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7, DR . H . WAKEHAMR&D PRESENTATION TO THE BOARD OF DIRECTORS

(November 26, 1969)

Gentlemen of the Board and Guests :

Once again It is my pleasure to appear before you and to make this t raditional

ann ual presentat ion of Philip Morris Research Center activities . Before

tal king about th at particuler aspect of the program that I ha ve selected for

this year's presenta tion, let me make a few remarks about the Research

Center in general . yWe have now been in the present Research Center facilit y ten years . We h ave

greatl y Increased the depth of our scientific knowledge In the cigarec product

so tha t we are able to cope with t he demands for new and Improved products

and the needs to defend ourselves from atta cks In the areas of smoking and

health . We have extended our skil ls Into areas p ertinent to our extended

product lines . We have greatly improved our communica tion with and service

to other operat ing groups an d ha ve overcome many of t he probtems encoun tere

In th e early da ys of th e Research Department . We are highl y and effectively

inst rumented with t he most modern research tools, and the qual icy of our staff

is second to none in the business .

You ha ve on t he ta ble before you copies of a n ew brochure on Research a t

Philip Morris . In it are details about our people and th e facilit y, but h ere `' ^. . .

are some figures I think you will find of interest . Our present s taf f nu mbers

about 330 persons . We occupy 125, 000 feet of floor space . Our operating budget for this year was $6 mill ion, of which a bout 25 percent goes Into

research, 50 percent in to produc t development, and 25 percent Int o technica l

services to oth er department s .

. 3

So that you will, be reminded that we are still very active in developing new

cigarets, I will now show you one product prototype which i s perfectly pract ica

in terms of present technology but still fairly fa r out in terms of the present

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market . This product mighc be called a multifunctional filter in which the

different elements function in different manners . The front plug is a chemically

treated paper specific for phenol and hydrogen cyanid e removal . The space

contains three solids identified by colo r . The black one is a general purpose`'M1

activated charcoal for gas phase removal ; the blue one is specific fo r hydrogen. . i ' : _

. .. . .

cyanide; and the white one f or certain water solu ble gases. ' f4'= These solids can be mixed, Inserted into a plug-space-plug filter system, and

. . r . . ~; : r ;~,each wiZ1 perform its specific function in gas phase component absorption

dndependent of the others . A year ago this kind of a product was only a gleam ~'

~ In the chemist's eye . To day it is a labo ratory reality . We have several o cher. . ~ . , : : . . . ..,~,-c igaret prototypes in the works and are now sc heduled to p resent the latest

{ ~ ; : ones for 1970 consi deration to our Marketing Department on January 15 .

T h i s y e a r I h a v e c h o s e n t o t a l k t o y o u a b o u t s o m e o f o u r w o r k i n s m o k e r p s y c h o l o g y

. T h i s w o r k o n l y r e p r e s e n t s a b o u t t h r e e p e r c e n t o f o u r t o t a l e f f o r t

b u t i t i s a n i m p o r t a n t p r o g r a m , s o I b r i n g i t t o y o u r a t t e n t i o n t o d a y .

Ever since research began at Philip Morris, our emphasis has been on the

cigaret -- its chemistry, physic s, bi ological effects, engineering, raw material, : 1

~ f requirements, and production problems . We h ave been . largely concerned with

the technology of the cigaret and cigaret making . In all this we have until

; recently almost t+otally i gnored the smoker and the why of smoking .

,

' Why do 70 rnillion Americans and countless millions outside of ahe United States

smoke despite parental admoni tion, d octors' warning s, go vernmental taxes,

and health agency propaganda?

What benefits do smokers wittingly or unwittingly find . in smoking that outweigi

the real or Imaginary risks that the same smokers feel? QWhy d o s ome people not smoke, others s moke relatively f ew cig arees, still Q

others many, so me merely pu ff s upertiicially, w hi le others In hale deepl y? CJ

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Slide

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Why do some people start very young,

begin smoking?

while others wait until middle life to '

In answer to these and simil ar questions you wil l fi nd many opinions, many

the problem i s hopelessly complex . We d o not delude ourselves into thtnking` ", . , ~ . . .

we are de aling here wi th a simple question searching for a simple answer . On

hypotheses, and very fe w facts . Some w il l throw up thei r hands and say that

K . .that it Is amenable to systematic investigation and research which wil l l ead to

- the other hand we do beli eve tha : the subject is important to our business and, . , .

~ some useful generalizations .

p r o g r a m .

of smoking and the part which psychologists play in our research and d evel opm

..