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J. PHIL CARLTON, ESQUIRE § P.O. Box 67 CARLTON PINETOPS, NORTH CAROLINA 27864 email: [email protected] LAW FIRM www.sclfg.com UNITED FEDERAL BANK BUILDING 108 N. 3RD STREET PINETOPS, NORTH CAROLINA 27864 (919) 827-5141 FACSIMILE (919)827-5487 February 5, 1998 VIA HAND-DELIVERY Mr. Bruce N. Reed Assistant to the President for Domestic Policy Executive Office of the President The White House 2ⁿᵈ Floor, West Wing 1600 Pennsylvania Avenue, N.W. Washington, D.C. 20500 Dear Mr. Reed: As you know, I represent Philip Morris Companies Inc., R.J. Reynolds Tobacco Company, Brown & Williamson Tobacco Corporation and Lorillard Tobacco Company. In response to a request made to Andy Schindler, CEO of R.J. Reynolds Tobacco Company, the cigarette companies named above are sending to interested members of Congress the enclosed example of one way in which the legitimate and important concerns of growers may be addressed in the context of legislation implementing the terms of the June 20 Proposed Resolution. The attached example will, I believe, offset any adverse economic impact to both quota owners and tobacco growers that may result from implementation of the Proposed Resolution. The companies emphasize that this is not a specific industry proposal - it is simply one sensible way to resolve these issues. The industry remains committed to working with growers, members of Congress and the Administration to identify grower concerns and to discuss how those concerns should be accommodated. As always, we would be happy to meet with you to discuss this or any other issue. With kindest regards. Sincerely, Phil Cartton J. Phil Carlton Enclosure