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. 02/09/98 MON 09:40 FAX 019 detracting from the achievement of the five critical objectives of this legislation, we should think creatively about how to make it possible for such injured parties to recover compensation, without incurring enormous legal fees or engaging in years of litigation. 5) The settlement agreement as currently formulated is unacceptable in several respects. For example, the industry payments that it contemplates will not raise the price of cigarettes enough to reach the targeted reductions in youth smoking, and the settlement does not confirm the FDA's full regulatory authority over tobacco products. The Administration will not agree to any legislation that does not correct these deficiencies. 6) Any final settlement should create powerful incentives for tobacco manufacturers to fully and publicly disclose all appropriate documents. For example, Congress should consider limiting any changes to the civil liability system to information that was fully disclosed by the tobacco industry to the Congress and the public. 7) Any changes to the civil justice system must be constitutionally sound. With these principles in mind, let me now turn to the provisions of the proposed settlement. 3. A Description of the Civil Liability Provisions and Some Questions Raised The proposed settlement leaves open many questions. No definite terms establish who or what will be paid or for how long. The settlement is more of a template for 18

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    "ocrText": ".\n02/09/98 MON 09:40 FAX\n019\ndetracting from the achievement of the five critical objectives of this\nlegislation, we should think creatively about how to make it possible for such\ninjured parties to recover compensation, without incurring enormous legal\nfees or engaging in years of litigation.\n5)\nThe settlement agreement as currently formulated is unacceptable in several\nrespects. For example, the industry payments that it contemplates will not\nraise the price of cigarettes enough to reach the targeted reductions in youth\nsmoking, and the settlement does not confirm the FDA's full regulatory\nauthority over tobacco products. The Administration will not agree to any\nlegislation that does not correct these deficiencies.\n6)\nAny final settlement should create powerful incentives for tobacco\nmanufacturers to fully and publicly disclose all appropriate documents. For\nexample, Congress should consider limiting any changes to the civil liability\nsystem to information that was fully disclosed by the tobacco industry to the\nCongress and the public.\n7)\nAny changes to the civil justice system must be constitutionally sound.\nWith these principles in mind, let me now turn to the provisions of the proposed\nsettlement.\n3.\nA Description of the Civil Liability Provisions and Some Questions\nRaised\nThe proposed settlement leaves open many questions. No definite terms establish\nwho or what will be paid or for how long. The settlement is more of a template for\n18"
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