[Intl-tobacco] Japan Tobacco says not in talks with EU on possible settlement

[Robert Weissman]

Japan Tobacco says not in talks with EU on possible settlement
AFX
 April 5, 2004

 London (AFX) - Japan Tobacco Inc said it is not in discussions with the
 European Commission over a possible settlement of the EU's smuggling claims
 against the Japanese tobacco giant. "We're talking to EU... but it's not
 about settlement," Ryosuke Tsuji, general manager of the Tokyo-based Japan
 Tobacco, told AFX News in a phone interview.

 Discussions with the European regulators centred on ways in which they could
 jointly curb smuggling, he added. "We are cooperating with the authorities'
 effort to prevent smuggling and other forms of illegal tobacco trade," Tsuji
 said.

 Japan Tobacco, along with Altria's Philip Morris and RJ Reynolds, have been
 sued by the EU in the US over accusations they colluded with smugglers. The
 EU today confirmed it is in talks with Philip Morris over the
settlement of
 the dispute.

 The settlement, the EU said, could involve a "large payment" from the US
 tobacco manufacturer. However, the EU declined to comment on press reports
 the payment could reach 1 bln usd.

 Japan Tobacco refused to comment on whether it will be open to the
 possibility of pursuing the same deal with the EU. "We don't know the
 nature of that deal," Tsuji said.