Carlton's remarks, coming after several days in which White House aides signaled their intention to increase penalties on tobacco companies, were the clearest sign yet that the industry will vigorously fight any effort to toughen the agreement. But White House aides said yesterday the threat is hollow. Strict penalties for failing to meet reductions in smoking are absolutely essential. Other aides and congressional officials said that the industry's reaction was expected and that there wasn't much sympathy in the White House or in Congress. Critics say they've heard these cries of poverty before and discount them as a normal bargaining practice.
Intimidation is one of their commonly used threats.
The industry thinks it can negotiate with the attorneys general and then tell Congress and the president to take it or leave it. That's totally unacceptable. The upswing in both the tenor and sharpness of the comments comes as the White House nears completion of its review of the settlement. It's expected to announce its recommendations in early September. The agreement was reached June 20 between tobacco companies, attorneys general from 39 states and lawyers involved in 17 class action suits.