U.S. tobacco firms disagree with Clinton's plan

WASHINGTON (Reuter) Cigarette makers said Wednesday they disagreed with
President Clinton's call for sweeping changes to the $368 billion tobacco
settlement but would work with Congress and the president on the plan.

``Many of the elements of the June 20th agreement were difficult for us to
accept, but we support the plan as the best possible means to end decades
of confrontation and uncertainty,'' the companies said in a statement.

The companies said they were ``gratified'' that Clinton stated his desire
to build on the plan to achieve a national resolution. ``But we disagree
with some of the proposed changes offered today and with suggestions that
the terms of the June 20th agreement undergo significant change.''

Speaking at the White House Wednesday, Clinton called for sweeping changes
in the landmark tobacco settlement, including industry penalties of up to
$1.50 per pack of cigarettes if teenage smoking fails to fall sharply over
10 years.

The industry said that while it agreed there should be a concerted effort
to reduce smoking by minors, ``We do not agree that the industry should be
held solely accountable for social behavior that neither it, nor the
government, can control.''

Since the White House has concluded its review of the proposal, tobacco
companies said that Congress should move forward in efforts to develop an
acceptable national accord.

``We believe the June 20th plan still represents the most achievable
balance, and we will work constructively with the Congress and the
president to build upon the historic accomplishment of that agreement to
enact a national tobacco plan.''