BAT's Chilean Unit Challenges Attempt To Sue In US Court (fwd)

[Robert Weissman <rob@essential.org>]

Wall Street Journal - Aug 10, 1999

BAT's Chilean Unit Challenges Attempt To Sue In US Court

By Dow Jones Newswires

SANTIAGO -- The Compania Chilena de Tabacos SA unit of Britain's
B.A.T. Industries PLC (BAS) said Tuesday that any attempt by Chilean
legislators to sue cigarette makers in the U.S. would represent a
surrender of national sovereignty and expose the country to
counterclaims by foreign companies.

"Nations that accept the initiation of this type of suit in another
country recognize the jurisdiction of foreign courts over events
which occurred in their own territory and thereby surrender their
jurisdictional sovereignty," the company said in a letter published
by the Santiago Stock Exchange.

Chiletabacos, as the company is commonly known, was responding to
statements made by two legislators who want the government to sue
tobacco companies in the U.S. for medical costs incurred in treating
Chileans for illnesses related to smoking cigarettes.

Chiletabacos said the attempt to sue foreign tobacco companies
outside of Chile was related to the hefty fees that can be earned by
U.S. lawyers involved in such legal actions.

The company said that those advocating the filing of lawsuits in the
U.S. are mistaken in contending that such efforts would carry no
costs for Chile. "That isn't correct," Chiletabacos said. "One of the
principal risks and costs is the filing of counterclaims on the part
of the U.S. companies against the plaintiff government."

The issue of judicial extraterritoriality is a sensitive one for many
Chileans. Britain is currently holding former dictator Augusto
Pinochet pending an extradition request by Spain for alleged human
rights abuses. The Chilean government has vigorously contested
Pinochet's detention, contending that a foreign country has no right
to judge a local national for wrongdoings allegedly committed in
Chile.

The lawyer representing the congressmen was not available for
immediate comment on the letter published by Chiletabacos.