GOVERNMENT: THE EUROPEAN UNION MOVES TO END THE INDUSTRY'S EVENT
SPONSORSHIPS BY 2006.

BRUSSELS, Belgium The European Union outlawed all tobacco advertising
Thursday and gave cigarette makers until Oct. 1, 2006, to end sponsorship
of major sports and cultural events.

The deal was clinched at an EU health ministers meeting after Britain,
dropped its longstanding opposition to the measure.

Starting in October 1998, governments will have three years to ban all
advertising, except at stores that sell cigarettes.

Advertising in those EU nations that still allow cigarette ads in
newspapers and magazines will be exempted from the ban until October 2003,
said EU spokeswoman Barbera Nolan.

Tobacco companies won another reprieve of sorts, getting until the 2006
deadline to phase out advertising at major sports and cultural events, such
as Formula One car racing, tennis tournaments, operas and art festivals.

The EU Executive Commission has been trying since 1989 to get governments
to crack down on tobacco ads and sponsorships.

However, it was also a victory for Britain, which sought an exemption of
seven years or more for Formula One racing.

Until last month, British Prime Minister Tony Blari's government had sought
a permanent exemption for Formula One racing, citing the 50,000 jobs the
sport provides in Britain.

It softened its position after the revelation that the sport had donated
$1.7 million to the Labor Party created a public outcry.

Formula One organizers said before the EU meeting that a tobacco ban would
force them to drop many, if not all, its 10 races in Europe and move them
to Asia. Formula One racing collects some $200 million annually from the
tobacco industry.

Sources said Germany and Austria voted against the ban, and Denmark and
Spain abstained. That left 11 countries voting in favor.

The EU measure seeks to apply restrictions equally across the EU and
discourage smoking among the 40 percent of the union's 370 million people
who still light up.

Tobacco advertising already is banned in Finland, France, Italy, Portugal
and Sweden. Belgium will ban it starting in 1999.