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02/11/98
11:04
202 347 9881
BLOOMBERG/CONUS
002
cciPruce + discard
TOBACCO
Check cut The Thent Curr quote
GABILITY
on The recend-to-last page.
Koop, Kessler Oppose Legal Protection for Tobacco (Update2)
(Adds Scruggs comments in second section, closes shares.)
Washington, Feb. 10 (Bloomberg) -- Former Surgeon General C.
Everett Koop and Former Food and Drug Administration Commissioner
David Kessler are urging Congress and public health groups to
take a strong stand against providing legal protection to the
tobacco industry as part of any U.S. anti-smoking legislation.
"We oppose granting the tobacco industry immunity against
liability for past, present or future misdeeds, Koop and
Kessler wrote in a letter obtained by Bloomberg News. Congress
should focus its efforts on public health, not on the concessions
the tobacco industry seeks.
The letter may add to the pressure on President Bill Clinton
to bridge the gap between their position and the tobacco
industry, which insists it won't fully cooperate in efforts to
reduce teenage smoking unless cigarette makers are given some
protection from lawsuits.
Clinton so far has resisted calls. from Republican leaders in
Congress that he submit his own legislation spelling out how he
would rework last year's $368.5 billion national tobacco
settlement.
Instead, Clinton has offered broad guidelines about what
must be in legislation, which he's counting on to provide as much
as $65 billion in the fiscal year starting Oct. 1 to pay for
expanded child care programs, healthyresearch and other programs.
We've made our position on this very clear, said Clinton
domestic policy adviser Elena Kagan. ``If we get legislation that
gives us what we want then limited. liability is not a deal-
breaker.
We'd prefer comprehensive legislation without
liability limits. She declined to comment specifically on the
Koop-Kessler letter, saying she hadn' seen it yet.
Tobacco Stocks Fall
Earlier today, the Clinton administration praised a Senate
Democratic tobacco bill that meets the president's anti-smoking
goals without granting the legal protections sought by the
industry. Vice President Al Gore will be present tomorrow when
the bill is officially unveiled by Sen: Kent Conrad of North
Dakota, the chairman of the Democratic tobacco task force.
Taken together, today's developments increase the likelihood
the industry will abandon the national settlement, said David
Adelman, a tobacco analyst at Morgan Stanley, Dean Witter,
Discover & Co. You have (the Conrad) bill out there, some
degree of administration endorsement (for that bill), Koop and
Kessler solidifying the health community, this all further
signals that things are not going smoothly for the industry, he
said.
Richard Scruggs, the lead negotiator for the states on the
June 20 accord, was less concerned There are three stages to
legislation in Washington: posturing positioning and alchemy.
We're in the late posturing stage he said.
Tobacco stocks were among the worst performing in the
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"ocrText": "02/11/98\n11:04\n202 347 9881\nBLOOMBERG/CONUS\n002\ncciPruce + discard\nTOBACCO\nCheck cut The Thent Curr quote\nGABILITY\non The recend-to-last page.\nKoop, Kessler Oppose Legal Protection for Tobacco (Update2)\n(Adds Scruggs comments in second section, closes shares.)\nWashington, Feb. 10 (Bloomberg) -- Former Surgeon General C.\nEverett Koop and Former Food and Drug Administration Commissioner\nDavid Kessler are urging Congress and public health groups to\ntake a strong stand against providing legal protection to the\ntobacco industry as part of any U.S. anti-smoking legislation.\n\"We oppose granting the tobacco industry immunity against\nliability for past, present or future misdeeds, Koop and\nKessler wrote in a letter obtained by Bloomberg News. Congress\nshould focus its efforts on public health, not on the concessions\nthe tobacco industry seeks.\nThe letter may add to the pressure on President Bill Clinton\nto bridge the gap between their position and the tobacco\nindustry, which insists it won't fully cooperate in efforts to\nreduce teenage smoking unless cigarette makers are given some\nprotection from lawsuits.\nClinton so far has resisted calls. from Republican leaders in\nCongress that he submit his own legislation spelling out how he\nwould rework last year's $368.5 billion national tobacco\nsettlement.\nInstead, Clinton has offered broad guidelines about what\nmust be in legislation, which he's counting on to provide as much\nas $65 billion in the fiscal year starting Oct. 1 to pay for\nexpanded child care programs, healthyresearch and other programs.\nWe've made our position on this very clear, said Clinton\ndomestic policy adviser Elena Kagan. ``If we get legislation that\ngives us what we want then limited. liability is not a deal-\nbreaker.\nWe'd prefer comprehensive legislation without\nliability limits. She declined to comment specifically on the\nKoop-Kessler letter, saying she hadn' seen it yet.\nTobacco Stocks Fall\nEarlier today, the Clinton administration praised a Senate\nDemocratic tobacco bill that meets the president's anti-smoking\ngoals without granting the legal protections sought by the\nindustry. Vice President Al Gore will be present tomorrow when\nthe bill is officially unveiled by Sen: Kent Conrad of North\nDakota, the chairman of the Democratic tobacco task force.\nTaken together, today's developments increase the likelihood\nthe industry will abandon the national settlement, said David\nAdelman, a tobacco analyst at Morgan Stanley, Dean Witter,\nDiscover & Co. You have (the Conrad) bill out there, some\ndegree of administration endorsement (for that bill), Koop and\nKessler solidifying the health community, this all further\nsignals that things are not going smoothly for the industry, he\nsaid.\nRichard Scruggs, the lead negotiator for the states on the\nJune 20 accord, was less concerned There are three stages to\nlegislation in Washington: posturing positioning and alchemy.\nWe're in the late posturing stage he said.\nTobacco stocks were among the worst performing in the"
}