JUSTICE DEPT. EXAMINES TOBACCO AD ALLEGATIONS

WASHINGTON (Reuters) - Senate Majority Leader Trent Lott Monday
predicted the Justice Department will find no basis for allegations by
an anti-smoking group that some Republicans killed tobacco legislation
in exchange for promises of improper campaign support from the
cigarette industry.

``I assume they'll (Justice) take a look at it. That's their
responsibility. And they will see that there's nothing to it,'' Lott
told a news conference.

The Justice Department, replying to a letter from Senate Democratic
Leader Tom Daschle of South Dakota, said it was ''presently
examining'' allegations initially lodged against the tobacco companies
by the National Center for Tobacco-Free Kids and would determine
``whether any further investigation is warranted.''

The anti-smoking group filed a complaint in June with the Federal
Election Commission, which has primary responsibility for campaign law
violations. Daschle had requested in July that the Justice Department
also look into the matter.

The anti-smoking group based its allegations on news accounts of a
closed-door Senate Republican meeting. It said the industry had
promised to run advertisements supporting Republicans who voted
against the tobacco bill. Corporations can take out ``issue ads''
about a pending piece of legislation, but they are not supposed to
make contributions in connection with federal elections.

The Senate killed the bill, sponsored primarily by Arizona Republican
John McCain, in June. Democrats had largely backed the McCain bill,
and Republicans were deeply divided; ultimately Republicans killed it
on a technicality.

Lott said the tobacco companies had indicated they would make their
case ``against a massive tax increase and government bureaucracy, and
they were going to do that anyway.'' He said there was no ``specific
commitment or promise'' that would have been an illegal campaign
contribution.

Checked-by: Patrick Henry