[Intl-tobacco] U.K. Tobacco Executives Acknowledge Smoking, Cancer Connection (fwd)

[Robert Weissman]

U.K. Tobacco Executives Acknowledge Smoking, Cancer Connection
Source: Bloomberg News, Thursday, 1/13/00

London, Jan. 13 (Bloomberg) -- British American Tobacco Plc and other
tobacco executives acknowledged there is a link between smoking and
disease during testimony before the U.K.'s House of Commons Health Select
Committee.

Executives from BAT, the world's second-largest cigarette maker, Imperial
Tobacco Plc, Gallaher Plc, Philip Morris Co. and R.J. Reynolds Tobacco
Holdings Corp. presented evidence to the committee as part of a British
government's inquiry into the health risks of smoking, which began last
year.

``British American Tobacco believes and has for decades recognized that
along with the pleasures of smoking come real risks of serious diseases
such as lung cancer,'' BAT Chairman Martin Broughton said in a statement.

Gallaher said on its Web site it ``has proceeded on the assumption that
cigarette smokers are more likely to contract lung cancer and other
diseases.'' The company makes Benson & Hedges cigarettes in Britain.

Executive were questioned today about addiction, the risks of passive
smoking and other issues. Tobacco companies face less pressure from the
U.K. government than in the U.S., where the Justice Department is suing
them to recoup the cost of treating sick smokers.

The inquiry isn't likely to have much impact on the companies' British
business, analysts said.

``The implications are relatively modest,'' said Nick Bunker, an analyst
at HSBC. ``The real thrust of government policy is through the fiscal
system and taxes, and these committees don't normally have influence over
tax matters.''

In the U.S., Philip Morris shares rose 5/16 to 24 9/16. RJR rose 5/16 to
19 7/8. Philip Morris, the world's largest tobacco company, started a
marketing campaign in October aimed at improving its image that includes
an acknowledgment that there is scientific evidence smoking can cause
cancer.

Industry executives will appear before the committee a second time Jan.
27.

BAT shares rose 11.25 pence, or 3.6 percent, to 323.25p ($5.33). Shares in
Imperial, maker of Embassy and John Player cigarettes, rose 13.5p, or 2.4
percent, to 566.5p. Gallaher shares fell 2.25p, or 0.8 percent, to 283p.