Indications of Accord in Talks on Tobacco

CHICAGO — Mississippi Atty. Gen. Mike Moore said Wednesday that negotiators in tobacco settlement talks had reached agreement on a laundry list of public health objectives but that no final pact is expected soon.

“There’s no deal imminent,” Moore told reporters before a conference at a Chicago hotel with public health groups to discuss progress at the months-long negotiations with cigarette manufacturers.

Moore said later that he would know within eight to 10 days of the talks whether progress could be made on a host of remaining issues--including the industry’s legal liability in future lawsuits and its acceptance on limiting the amount of nicotine in cigarettes and acceding to U.S. government control of tobacco products.

“Frankly, we’ll know [by then] whether we can deliver that [resolution] to the U.S. Congress for passage. I’m willing to fight till my last breath for the kids in this country, for the public health in this country,” Moore told reporters during a break in the one-day meeting.

If there was no progress, Moore said, he will prepare the first state case scheduled for trial against the tobacco industry seeking billions of dollars in compensation for treating smoking-related illnesses. The trial is scheduled to start July 7.

So far, negotiations between industry representatives and 30 state attorneys general have produced agreement on several health issues related to smoking, Moore said.

Among those are an end to tobacco advertising except in adult-only magazines and behind the counter, development of industry-funded anti-smoking campaigns and smoking-cessation programs, and pledges to reduce teenage smoking.

Meanwhile, the Federal Trade Commission on Wednesday agreed to revisit its position on R.J. Reynolds’ “Joe Camel” ad campaign, a move welcomed by participants in the Chicago talks. But Moore said the negotiations, if successful, would go well beyond that in banning practically all forms of such advertising.

The closed meeting with dozens of public health advocates was described by several observers as contentious, illustrating the strength of feeling about the issue of smoking and the past behavior of the tobacco industry. Participants also questioned whether the industry, and subsequently Congress, could be trusted to adhere to a deal.

“I think the skepticism and the diversity of opinion is healthy and will benefit the process in the long run,” said Matthew Myers of the National Center for Tobacco-Free Kids.

Others were not so sanguine about the negotiations but welcomed the prospect of state after state bringing multibillion-dollar suits against the industry.

“The health community must be united against a bailout for the tobacco industry,” a statement by the American Lung Assn. said.

Among those opposed to the current tenor of negotiations is Minnesota Atty. Gen. Hubert Humphrey III, whose case against the industry is due for trial early next year.

Representatives from Humphrey’s office criticized any hasty deal to give limited legal immunity to the industry--including monetary caps on damage awards. They said reams of documents implicating tobacco executives in what they knew about their deadly product would ultimately embarrass the industry into capitulating.

“Truthfully, we didn’t come here today to get anyone to sign on to anything,” Moore said. “I came here for two purposes: one, to let people know what’s going on in the negotiations . . . and secondly, I want to get some ideas from these groups. Some of these people are actually out there trying to get kids to stop smoking.”

Meanwhile, Florida’s pension board voted to sell the state’s $824 million in tobacco shares, making it the largest public fund to decide to divest its holdings in tobacco companies.

The State Board of Administration’s directors voted 2 to 1 to force the eventual sale of the tobacco shares held by the $65-billion pension fund, the nation’s fifth-largest.

Florida’s move may embolden other states considering selling their tobacco stakes, including those that have been warned against it by investment managers because they’re required to base investment moves on potential returns for beneficiaries--not political or moral considerations.

“This is going to cause other funds to get a second opinion,” said Doug Cogan of the Investor Responsibility Research Center, a nonprofit research group.

Still, Florida’s sell-off may not happen for a while. The state’s investment director said he may delay divestment because states--including Florida--and private attorneys are negotiating a settlement with cigarette makers that could boost tobacco shares by as much as 50%.

“If the settlement is as imminent as everybody says it is, it may behoove us to hold on to” the tobacco shares, said Tom Herndon, executive director of the Florida State Board of Administration.

In another development Wednesday, a U.S. District Court judge dismissed a suit filed under the Racketeering Influenced and Corrupt Organizations Act by three New Jersey residents against tobacco companies and an industry group.

Named in the suit were BAT Industries’ Brown & Williamson Tobacco Co., Philip Morris Cos., RJR Nabisco Holdings Corp.’s R.J. Reynolds Tobacco Co., Loews Corp.’s Lorillard unit and the Council for Tobacco Research USA Inc.

The suit, filed one year ago by attorney Steven Kramer of New York, claimed financial loss to the plaintiffs, who were victims of cancer and other diseases caused by tobacco use, according to the suit. One of the plaintiffs is now deceased.

Judge Joseph Greenaway ruled that RICO did not apply to personal injury cases. Kramer said he will appeal the decision.

* MORE TROUBLE

The FTC says R.J. Reynolds’ Joe Camel ads unfairly target children. A1