Posted at 8:01 p.m. PDT Monday, July 21, 1997

Tobacco companies giving heavily to GOP

Associated Press

WASHINGTON (AP) The Republican Party received $100,000 donations last
month from tobacco giants Philip Morris and R.J. Reynolds, which are
lobbying for Congress to accept a huge settlement against cigarettemakers.

A report to the Federal Election Commission shows that each company gave
$100,000 in ``softmoney'' donations in June. Brown & Williamson Tobacco
Corp. gave $15,000.

The report also showed the Republican National Committee returned a $750
donation from a Paraguayan man, Miguel Larreinegabe, because of questions
about whether he was a U.S. citizen. Foreigners may not donated to U.S.
campaigns.

The tobacco donations came just days before the industry reached a historic
settlement that, if it becomes law, would protect cigarettemakers from future
damage claims in exchange for $368 billion for antismoking campaigns and
compensation to the states for medical bills for smokingrelated illnesses.

The deal is subject to approval by Congress and the president. The
contributions to a Republican National Committee panel that collects
money for state elections are part of a strategy by tobacco companies to give
generously to Republicans who can be counted on to support the deal, said one
analyst.

``Their current strategy is to give almost all party money to Republicans and
gird their support among individual Democrats in tobacco states to at least
hold the present deal together, or strengthen it,'' said Larry Sabato, a political
science professor at the
University of Virginia.

As of June 30, Philip Morris and R.J. Reynolds together had given $575,000 in
soft money to the RNC this year, the FEC report showed. Such donations may
be used for partybuilding but not for individual candidates. Nevertheless, the
parties have found ways to use the money for TV ads that help candidates get
elected. President Clinton and some lawmakers have called for a ban on the
contributions.

Phillip Morris and R.J. Reynolds donated a total of $1.13 million to the
committee in all of 1996.

The RNC garnered $1.3 million in soft money last month. Other big donors
included M & M Holdings Inc., a Tennessee property development firm that
gave $75,000, and telecommunications giant TCI Inc., which gave $40,000.

Regular contributions to the RNC totaled $2.2 million in June and $17 million
for the first six months ending June 30. The RNC had $1 million in cash on
hand at the end of June and was $3 million in debt.

Sixmonth figures for the Democratic National Committee will be available
around the end of July.