The salient characteristic of propaganda is not that it is (entirely) false. It is that it serves a specific interest and agenda rather than being a good-faith, best-effort attempt to convey truth.
It's a fundamental conflict in communications dating at least to Plato and the philosophers vs. the sophists.
Propaganda is most effective when it wraps its intended payload in an attractive, largely truthful message, and acts to nudge its intended targets in a direction they're inclined to go already.
False facts will get caught out. All you can do with an interpretation is argue about it.
It was specifically paid for and used to cast widespread doubt on smoking leading to lung cancer. It tried to convince people that "the science isn't settled" when the evidence was overwhelming.
It's an incredibly disingenuous and cynical piece of work that posits truth does not really exist b/c all "experts" are just lying to you with an agenda. Therefore, you can't ever really know the truth, therefore keep smoking.