June 19, 200 0

7LE
I FE FPASTR Dr. Adrian Payne
INSTITUTE International Scientific Affairs Manager
British American Tobacco
Globe House, 4 Temple Place
London, UK WC2R 2PG

Dear Dr. Payne;

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to public policy problems
Thank you for taking the time to meet with Patrick Basham, Director of the
since 1974 .
Fraser Institute's Social Affairs Centre, while he was in London, and with Laura Jones,
Director of the Institute's new Centre for Studies in Risk and Regulation while you
were both in Toronto . I would like to share with you what has transpired since then
and how we hope to proceed with British American Tobacco's help .

It is our hope that British American Tobacco will contribute $50,000 towards
the Institute's Social Affairs Centre, picking up the multi-year commitment made by
Rothman's International two years ago . As well, we hope that you will contribute an
Vancouver
+ additional $50,000 to the new Centre for Studies in Risk and Regulation . These funds,
together with contributions from other organisations, will enable us to move forward
Calgary
with our extensive research agenda designed to educate the public and policy makers
4
about risk issues . It is our belief that this will contribute to more rational decision-
Toronto
making in the public policy process .

Ottaw a As you know, Laura has prepared a comprehensive, flexible plan that will allow
G us to move forward on a project-by-project basis, and to respond quickly to important
Montreal issues as they arise. Of course, all of this is dependent on having adequate funding
available each year. Thanks to two generous grants from a major Canadian
Foundation, we have been able to proceed with five of the proposed studies on Global
Warming, The Cost of Regulation, Environmental Indicators, Earth Day press release,
and distribution of Facts Not Fear to Ontario high schools . As well, the Institute will
release two publications this summer : History of Tobacco Regulation and Safe
Enough : Managing Risk and Regulation, a composite of the papers emanating from a
conference we held last spring .
HEAD OFFICE:
4th Floor, 1770 Bunard Street
As you are aware, we face many social and economic challenges today, perhaps
Vancouver, British Columbia
none so daunting as the need to encourage adoption of rational policy that is based on
Canada V6J 3G 7
Phone : (604) 688-0221
sound science and economics . Agitators for a "zero-risk" society have becom e
Fax : (604) 688-8539 increasingly successful in advancing their cause, often basing their case on exaggerated
Web site : junk science scares . Whether the target be the issue of environmental quality, second
www . frascrinstitute . ca hand smoke, pesticides, or genetically modified foods, few people, including
E-mail :
journalists, have the knowledge necessary to conduct rational assessments of such
info at@fraserinstitutc .ca
complex matters, or even to recognise arguments that are unreasonable . The result is,
TORONTO OFFICE : sadly, public pressure for the implementation of poor policies . The impact of
Phone : (416) 363-6575
government regulations, which have increased dramatically in cost and regulation since
Fax : (416) 601-732 2
1975, is one of the most important but often overlooked obstacles to Canada's
OTTAWA OFFICE : economic growth and competitiveness .
Phone : (613) 565-046 8
Fax : (613) 565-3020 Although the area of risk regulation has interested the Institute for some time,
CALGARY OFFICE ;
lacking adequate resources until now, we have only been able to progress slowly. W e
Phone : (403) 216-7175 feel strongly that the time has now come to jump in full-throttle and to develop a top -
Fax : (403) 234-9010 With strategic alliances in 53 countries .

325101394
 notch Centre that will become a constant and important participant in the growing
public debate on risk and regulation . Since Canada, unlike the U .S . and the U .K., does
HRUR not presently have a Centre dedicated towards research into regulatory decision
INSTITUTE making, the Institute's Centre will be at the vanguard spearheading ground-breaking
research in all areas of risk and risk management . Our new Centre will be of the
highest calibre and will involve senior analysts and experts, both from the Institute's
staff and from outside . The Centre will provide the factual information in a variety of
forms (publications, news releases, media interviews, editorial writing, talking tours,
internet updates, conferences) that will seriously counter the risk activists and their
Offering market solutions
misleading and misguided propaganda . Most importantly, the Centre will become an
to public policy problems
important resource for journalists from around the world, as all of our work will be
since 1974 .
posted on our web site.

As you know, the Fraser Institute is uniquely positioned to mount a project of

this magnitude . Over the past 25 years the Institute has been a major player as one of
Canada's leading economic research organisations, the country's largest independent
think tank, and one of the pre-eminent public policy research organisations in the
world . We benefit from strategic alliances with institutes in 53 countries and exchange
information with close to 120 similar organisations around the world in our quest for
successful and sound examples to guide policy in Canada .

You will agree I am sure, that the enclosed proposal for our Centre sets forth an
impressive and far-reaching program of which we will all be proud . With your support
we are confident that we can do the job . As you read through the proposal pleas e
consider the impact that your support will have in making a profound difference to the
public debate on risk issues .

It will interest you to know that we have met with a number of your colleagues
in the industry to discuss this proposal and all are on side and have implied that they
will support the Centre with comparable contributions . The companies they represent
are Imperial Tobacco Company Ltd ., JTI Macdonald Corp ., and Rothman's Benson &
Hedges Inc . We have begun discussions as well with Philip Morris International Inc .,
and Brown & Williamson Tobacco in the U .S . Others we will approach for support are
in the food, biotechnology, and chemical industries . And, in addition to the previously
mentioned Canadian Foundation, we will be submitting a request to another Canadian
Foundation which we expect will be looked upon quite favourably .

As I explained at the outset, we are hopeful that British American Tobacco . will
elect to support the new Centre with a contribution of $50,000 this year, and a similar
commitment for each of the next two years . I look forward to hearing from you, and of
course, if you have any further questions on the Centre please do not hesitate to call me
directly at (604) 714-4545 . Or, in my absence, please feel free to call Laura Jones at
(604) 688-0221 ext. 547, or Sherry Stein, Director of Development at (604) 714-4590 .

ichael Walker
Executive Directo r

With strategic Enclosures:

alliances
in 53 countries .

325101395
BATCO US DOJ v Philip Mortis