PM SMOKES POT PENALTY

Part Of Anti-Drug Strategy, Says Chretien

OTTAWA -- Prime Minister Jean Chretien is set to soften the country's
marijuana laws.

"We will soon introduce legislation to decriminalize possession of small
amounts of marijuana so that young people do not have unnecessary criminal
records for the rest of their lives," he said.

Chretien made the announcement to the 1,000-plus crowd of Grit supporters
who paid $500 a plate to dine with the PM in Ottawa.

"At the same time we will have a drug strategy to discourage young people
from using drugs, and which will target drug traffickers."

Chretien says the national strategy is aimed at keeping teens off drugs.

In a speech delivered at the Maple Leaf fundraising dinner, Chretien said in
the coming weeks his government will follow through with its "activist"
agenda which includes a new marijuana law.

Details about the national strategy, and the new legislation, are expected
in the coming weeks.

The PM also said before the Commons recesses for the summer controversial
new rules banning all corporate donations to political parties, and putting
a $1,000 limit on other donations, will be brought in.

The new bill will also increase the amount of taxpayer dollars used to fund
political parties.

"I know that political party finance reform is controversial, but we are not
afraid to take on controversial issues," Chretien said.

"It is the right thing to do."

There have been rumblings within the business community about how the
Liberals can expect to bring in the new political finance rules and still
get corporate support.

Meanwhile, before Chretien delivered his speech, the Liberal Party paid
tribute to his career with a video of highlights.

Last night's fundraiser was one of the more successful Grit events.

Last year, the party had to cancel four Liberal fundraisers featuring
Chretien, and party officials were concerned the PM had lost his drawing
power since announcing his intention to retire in February 2004.