Tobacco lawyer says industry can't pay more in deal

WASHINGTON (Reuter) A tobacco lawyer Monday strongly reiterated the
industry's support for the proposed tobacco settlement and said the
companies cannot afford to pay more than the $368.5 billion contemplated
in the plan. President Clinton has called for major changes in the plan,
negotiated last June by the industry and the state attorneys general
suing it. Clinton has invited the bipartisan congressional leadership to
start discussing how to proceed at a White House meeting on Wednesday,
according to White House domestic policy chief Bruce Reed. The president
wants a tougher policy to combat youth smoking, including a $1.50
increase in the price of a pack of cigarettes over 10 years.

Critics of the tobacco pact say it will lead to a price rise of 60 cents
a pack. At a Washington round table discussion sponsored by the
Bloomberg financial news service, industry lawyer J. Phil Carlton
maintained that critics of the settlement proposal have underestimated
its impact on cigarette prices. He predicted prices would rise by about
$1.20 in the first five years, and reach the level advocated by Clinton
soon after that. ``President Clinton will get what he wanted,'' said
Carlton, a Raleigh, N.C., attorney who has been representing the
companies in their collective push for a settlement. Asked if the
industry could pay more, he said simply, ``No'' and added, ``They have
milked this cow dry as far as money is concerned.''

Carlton also said that, contrary to statements by some proponents of a
stronger deal, the industry has not agreed to more concessions,
particularly with regard to greater Food and Drug Administration power
over nicotine. Congress has made clear it will not take up tobacco
legislation this year, although there have been several recent
congressional votes on smokingrelated issues that have shown growing
strength of the antitobacco forces.

Although some influential Republican committee chairmen have expressed
support for tobacco legislation, the top leadership in the House and
Senate have been fairly noncommittal to date. Senate Majority Leader
Trent Lott, whose brotherinlaw was involved in settlement negotiations
on the antitobacco side, has recused himself and will not attend
Wednesday's White House meeting, his spokeswoman said. Reed, Clinton's
top White House aide on tobacco, said the White House is focusing on
Congress, not bargaining with the industry. ``We are taking our case to
Congress.

We are not negotiating with the tobacco companies,'' Reed said. Sharing
the stage in a rare joint public appearance, both Carlton and Reed said
the prospects for congressional action in 1998 ``are quite good.'' Two
states, Florida and Louisiana, have settled their lawsuits against the
industry. Jury selection for Texas's case is expected to start next
month.

REUTER