DATE: Friday, November 14, 1997             TAG: 9711140612

SECTION: FRONT                   PAGE: A8   EDITION: FINAL 

SOURCE: ASSOCIATED PRESS 

DATELINE: WASHINGTON                        LENGTH:   66 lines

LONGTIME ALLY DEMANDS THAT TOBACCO COMPANIES HAND OVER PAPERS VIRGINIA LAWMAKER SAYS MINNESOTA COURT HAS RIGHT TO REVIEW WITHHELD INFORMATION.

A Virginia lawmaker, one of the tobacco industry's staunchest allies in Congress, demanded Thursday that tobacco companies turn over hundreds of documents that a court officer says show the industry misled the public about the dangers of cigarettes.

Rep. Thomas Bliley, a Republican, is chairman of the House Commerce Committee. He ordered that the companies produce 834 documents being withheld from a Minnesota court that is set to hear the state's lawsuit to recover the cost of treating sick smokers.

Bliley threatened to subpoena the documents if the industry does not hand them over voluntarily by Dec. 4.

``This cannot stand,'' said Bliley, whose Richmond district includes a Philip Morris plant. ``If the tobacco industry engaged in criminal or fraudulent activities, then Congress had a right - a duty - to know before legislation is enacted granting the industry any form of immunity against lawsuits.''

A court-appointed officer in Minnesota has reviewed the questionable documents and concluded that the industry made misleading statements and worked to influence scientific research. A judge is expected to rule soon as to whether he will order their release.

Bliley made his comments at the House's first hearing on a proposed settlement of claims by states against tobacco companies. The proposal calls for the industry to comply with new restrictions and pay $368 billion over 25 years. In return, the industry would get immunity from future lawsuits.

Bliley's comments were notable, given his longtime support for the tobacco industry. After the GOP took control of the House in 1994 and Bliley became chairman of the Commerce Committee, one of his first acts was to cancel an investigation of the tobacco industry.

He has argued that federal regulation of cigarette sales to minors would not work. And since 1986, he has received more than $130,000 in campaign contributions from the industry, making him a top beneficiary of tobacco money.

Tobacco industry spokesman Scott Williams said Thursday that the companies had not yet received Bliley's request for the documents and could not comment. Williams also had no comment on Bliley's remarks.

Michael Moore, the Mississippi attorney general who led the negotiations with the industry, said, ``Congressman Bliley was sending a message to the tobacco industry. I think he sent it very loud and clear.''

Separately Thursday, House Speaker Newt Gingrich said Congress should take a long look at the proposed tobacco deal and not assume that the proposal already negotiated is the starting point.

``We need to take a deep breath, step all the way back,'' he said. ``It may happen, it may not happen. I'm just very cautious about it.''

Meanwhile, Minnesota's lawsuit is set for trial Jan. 20.

Tobacco companies have refused to turn over hundreds of documents in that case, claiming they are protected by attorney-client privilege. But in September, a court-appointed special master, Mark Gehan, reviewed the documents and rejected that argument.

Gehan concluded that tobacco companies and their research organizations made repeated misstatements ``denying or diminishing the health effects of smoking,'' according to court papers filed by a cigarette maker challenging Gehan's conclusion. KEYWORDS: TOBACCO

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