CLINTON SAYS HE WILL OFFER TOBACCO PROPOSALS

WASHINGTON (Reuters) - President Clinton said Monday that he would press
his drive to curtail youth smoking by offering tobacco proposals to
Congress that aides said would renew a call for higher cigarette taxes and
fees.

``My first priority is to protect our children from the dangers of tobacco
- -- from the illegal dangers of tobacco,'' Clinton said during an exchange
with reporters.

``I will propose a plan that I believe is best designed to do that that
will build on the settlement agreement that was reached earlier,'' Clinton
said.

``I will work with members of Congress in both parties in good faith to
try to pass comprehensive tobacco legislation that I think will achieve
that goal,'' he said.

Last June the major tobacco companies and some 40 states suing them agreed
to a plan that would have the industry pay $368.5 billion over 25 years and
make health concessions, in exchange for settling lawsuits and winning
immunity from certain types of future legal cases.

Clinton will include his tobacco plan in the budget proposal he submits to
Congress in February. Officials said, however, that he will not submit
formal legislation.

After a review by a special White House task force, Clinton in September
rejected aspects of the proposed settlement as inadequate and called for
tougher measures to combat smoking, especially among teenagers.

Clinton listed his goals for a national tobacco policy and called for the
price of a pack of cigarettes to rise by $1.50 through unspecified taxes,
fees or penalties.

White House Press Secretary Mike McCurry said Clinton continues to back a
$1.50 increase on a pack a cigarettes. ``The president has proposed that as
part of the way of structuring the settlement that the parties have
reached. That has been his view and has not changed to my knowledge.''

Some Republicans in Congress have faulted Clinton for a lack of leadership,
and said it would be extremely difficult to enact complex tobacco
legislation without more White House input. Senior White House officials
said that although Clinton said he would submit a ``plan'' to Congress, he
will not present his own formal legislation.

``He will present detailed proposals but not legislation,'' one senior
White House official said. ``We want to work with the Congress. This will
create a give and take situation.''

Three major bills have already been introduced in the Senate, one modeled
closely on the state-industry agreement and two others that would require
greater concessions from the industry.

Clinton declined comment on a Wall Street Journal report that he would
propose higher cigarette taxes and other revenue increases that would raise
nearly $10 billion in 1999 when he submits his budget proposal that fiscal
year next month.
^REUTERS@