Clinton rejects major aspect of tobacco deal

Industry defends its provisions

July 9, 1997
Web posted at: 9:25 p.m. EDT (0125 GMT)

WASHINGTON (CNN) -- President Clinton on Wednesday rejected a key provision of the deal struck between the tobacco industry and several states, saying the agreement proposed "totally unreasonable" restrictions on government control of nicotine.

Lawmakers also said they want changes in the deal, and public health advocates offered guidelines for a much tougher anti-tobacco policy.

The tobacco industry, however, maintained the provision would prevent the creation of a black market for high-nicotine cigarettes.

The industry and state attorneys general reached an agreement June 20 to settle anti-cigarette litigation out of court for $368.5 billion over 25 years. Under the proposal, the Food and Drug Administration would not be allowed to ban or lower nicotine levels in cigarettes if the result would be the formation of a black market in high-nicotine cigarettes.

"Would we deny the FDA the right to protect 100 percent of our children because there's a few black market cigarettes around?" Clinton said at a news conference from the NATO summit in Madrid, Spain. "It seems to me it's a totally unreasonable restriction."

He said there were still "a lot of really important, good things" in the proposed settlement, and predicted tobacco companies would not give up on the agreement because of the FDA issue.

Clinton, Congress may have more objections

However, the administration warned that Clinton -- who says he has not made up his mind on all portions of the proposed settlement -- is likely to find other objections.

"You shouldn't interpret (Clinton's remarks about the FDA provision) as the only thing the president has concerns about," said Health and Human Services Secretary Donna Shalala.

Members of Congress also indicated they would push for alterations in the deal.

"It's certainly going to have to be molded and changed so it's politically more acceptable," said Republican Sen. Orrin Hatch of Utah. "I think we can do it in a way the tobacco industry can stomach."

Tobacco industry fires back

The tobacco industry maintained that if the restrictions on the FDA's power to curb nicotine were lifted, a black market would spring up.

"The risk of creating a substantial black market in tobacco products should be a legitimate concern to all Americans for a variety of reasons," said the statement issued by Philip Morris Inc., R.J. Reynolds Tobacco Co., Brown & Williamson Tobacco Corp., the Lorillard Tobacco Co., and the United States Tobacco Co.

"The industry believes that the proposed resolution appropriately balances the various factions that should be considered in any determination to ban nicotine, and we look forward to the opportunity to make the case for keeping intact the provisions of the proposed resolution as negotiated," the statement said.

"The preservation of the rights of Americans adults to choose to use tobacco products is a central element of the proposed tobacco resolution," it added.

Health advocates want stricter provisions

Also Wednesday, a group of health care advocates led by former FDA Commissioner David Kessler and former Surgeon General C. Everett Koop presented a series of recommendations to strengthen regulation of the tobacco industry. These included:

Increased ability to regulate nicotine content or ban it outright;
Earlier deadlines for the tobacco industry to comply with provisions to lower the number of teen-aged smokers;
Fewer exemptions allowing workplace smoking;
Greater limits on tobacco exports;
Greater disclosure of tobacco industry documents.

The Associated Press contributed to this report.

Health Special: Smoking

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