Document J3BkYE38pb1zK8gNG5D4qxqqX

October 11, 197U Johna-Manvl1le and AIA Any decision by John-manvllle to pull out of AI a/na would be clear signal to the world that J-t has either fJ'-clded to get out of the asbeatos buslneaa or, at the very least, it has written off the future of this business J ... .j( in its press releases and public announcements, there will be way to prevent outsiders from so viewing the situation. The raining of asbestos and its conversion into finished products is still an Important business to J-M. ,,-M currently derives a significant profit from these businesses. J-M'a decision to lessen its dependence upon asbestos as its primary source of profit was a wlaa one, but that docs not justify a decision thst will likely lead to the end of the entire industry. J-M has a considerable amount of technology and expertise in the asbestos business, which will become unmarketable if the industry dies. J-M should ontinue to lessen its dependance upon asbeatos as a profit source. However, pulling out of AIA will lay the foundation for the convenient demise of the industry as a whole even though there are a number of products thst are extremely useful and represent virtually no hasard in commerce. Although the industry is currently facing conaiderable liability as a result of past exposures to asbestos, any decision to withdraw from AIA and get out of the asbestos business will not aid in any way in absolving J-M and its Officers and Directors from any potential liability. If there ia any liability, it is based on past exposures and wrongs alleged to have occurred in the^paat. Such liability is not likely to be based on current and future uses of asbestos and exposures therefrom. Also, J-M`s withdrawal from the industry will falsely imply that the company believes that asbeatos cannot be used safely. To some, it will likely imply an additional Indication of guilt. Some of the poeslble adverse consequences of J-M*a withdrawal from AIA arai 1. Efforts in the regulatory sector will be diluted and divergent. A strong, unified response by the asbeatos industry is essential since OSHA will be holding hearings on the proposed .aendinti to the asbestos standard within the next one to two years. The support of AIA members of J-M'a position ia important, aa is their support of J-M1a afforts to establish a work practices standard for the construction industry. . In addition, as a result of the recent NCI/NIEHS report entitled, "Estimates of the Fraction of Cancer Incidence in the United States Attributable to Occupational Factors," it ia concaivabla 4 -2 October 2), 1*71 that with J-N'a withdrawal (row AIA, OSHA will perceive a weakening in induatry'a position and will taka a strong, tough stanca with regard to asbastoa in an affort to ranova soaa of tha criticisa ganaratad by tha raport. 2. Within tha nast faw aon*h. ** `.r 'th-'y '.'-it racounandatlon will ba aada to lowar tha British occupational standard for axposura to asbastoa. This will furthar sarva to support OSHA's afforts to lowar tha U.S. standard. A strong and unifiad rasponsa by tha U.S. asbaatos industry is essantial, both hara and abroad. 3. J-M's withdrawal froai AIA will likaly hava an adverse imp-ct on ralatlonahips with asbaatos custonars. Tha impact on tha Buropaan market oould ba aqually graat, and possibly could hava an advarsa affact on J-H's Intarnational in araas othar than asbastoa bacausa of tba raaction of coapanies such as Turnar a Hawaii, Capa, Btarnit, Saint Cobain. 4. Dafansa of usaful and *locked-in* asbaatos products-- including thosa for which thara is no suitabla substituta for asbastoa--will ba difficult bacausa of tba nagativa iaprassion J-M'a withdrawal will laava with usars and tha asdic. Products such as A/C plpa, A/C shaat, friction materials, packings and gaskats, brake lining aatarials and so on will bacoaa suspact as to thair safety, to an even greater dagrea than at present. 5. Inasmuch as J-M'a withdrawal froa AIA will signal tha daaU.se of tha asbestos Industry, thosa coapanies which hava bean researching tha possibility of substitutes for asbestos, or who have bean considering tha possibility of withdrawing froa tha asbestos industry, will accelerate such afforts. Furtharaore, thosa coapanies which hava resisted such efforts in tha past will likely )oin in tha aggressive search for substitutes or withdraw froa tha industry. 6. Bysn if J-H wars to gat out of tha asbestos business entirely7 it is still in tha fiber business. Thara are certain groups that hava bean arguing for soaa tiaa that all fibers are as dangerous as asbestos. Ths shift to aanaada ninaral fibers ay Intensify tha afforts of these groups. In addition, J-H's position with ragard to asbestos has beneficially assisted U.S. Industry in general, particularly tha chemical industry, in its afforts to bring scientific objectivity to tha developaant of standards and the regulation of toxic and carcinogenic aatarials in tba workplace. Should J-H*a withdrawal from AIA lead to tha destruction of tha asbestos industry as a whole, tha iapact on othar industries nay ba alarming.