DATE: Thursday, July 3, 1997                TAG: 9707030690

SECTION: LOCAL                   PAGE: B5   EDITION: FINAL 

SOURCE: BY ROBERT LITTLE, STAFF WRITER 

DATELINE: RICHMOND                          LENGTH:   71 lines

ALLEN APPOINTS TOBACCO SETTLEMENT TASK FORCE

The $369 billion settlement between the states and the country's tobacco giants doesn't protect the economic interests of tobacco-rich states like Virginia, Gov. George F. Allen said Wednesday.

He announced the appointment of a task force to lobby Congress on behalf of farmers, shipping companies and other Virginians on the money-making end of the tobacco business.

As lawmakers in Washington gnash over the details of the settlement, Allen's announcement made clear that he considers any threat to the tobacco companies a threat to Virginia's economy.

The tobacco companies reached the settlement with states that demanded reimbursement for the Medicaid costs of treating cancer and other smoking-related illnesses. But Allen will send his secretary of transportation and his secretary of commerce and trade to the negotiations, not the secretary of health and human resources.

``It's essential that Congress understand Virginia's relatively unique standing in terms of the economic impact this settlement could have,'' Allen said at a Capitol news conference.

``They need to understand there are human beings, families and communities that will be harmed by this.''

If other states have ignored Virginia's economic interests, anti-tobacco forces say Allen is ignoring the health problems related to smoking.

Hilton Oliver, executive director of Virginia Group to Alleviate Smoking in Public, said the settlement is about one thing: Keeping people from dying. The economic livelihood of farmers and manufacturers should not be a factor, he said.

``I have no pity for them at all,'' said Oliver. ``My answer to them is: Get an honest job.''

Anti-smoking groups like GASP oppose the proposed settlement, arguing that it doesn't punish the tobacco industry enough. It would restrict advertising and vending machine sales and require a $369 billion payout over 25 years, but would give the companies immunity from lawsuits and limit FDA regulation of nicotine.

Allen compared tobacco's importance in Southside counties like Pittsylvania, Halifax and Mecklenburg to the military's role in a region like Hampton Roads. He promised to fight for the tobacco business the way he battled base closings three years ago.

Virginia is the second-largest tobacco-producing state, with roughly 128,000 jobs directly or indirectly related to the crop. Hampton Roads exports more tobacco than any other American port.

Restrictions on tobacco exports are an unacceptable option for Virginia, Allen said, considering the damage that restrictions would do to the trucking and shipping trade.

``These are real people's jobs here,'' said Allen, who uses smokeless tobacco.

``That's outrageous,'' Oliver said in reaction. ``He's putting a price tag on the lives of 8- and 10-year-olds all around the globe who will be the victims of the tobacco companies.''

To his news conference, Allen brought Michael Wells, a 45-year-old tobacco farmer from Mecklenburg County who said the plant's profitability lets him grow cheap crops like wheat. Whether people should smoke is not for him to worry about, he said.

``I'm not into politics whatsoever,'' Wells said. ``All I'm saying is there's demand for tobacco, and overseas it's growing. Just kind of leave me alone and let me supply that demand. I pay my own bills. I'm not asking for a handout.'' ILLUSTRATION: ASSOCIATED PRESS

Tobacco farmer William Wells speaks during the news conference as

his wife, Pam, left, and 10-year-old daughter Jessica watch.

``There's demand for tobacco, and overseas it's growing,'' he said.

``Just kind of leave me alone and let me supply that demand.'' KEYWORDS: TOBACCO

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