Two McCain Q&As for you to look at ASAP

from: Cynthia A. Rice
to: Alan B., Barry, Charles, Christopher C., Cynthia A. Rice, Donald H., Edward M., Elena Kagan, Jerold R. Mande, Joseph J., Joshua, Kathleen, Lisa M., Mary C., Peter Jacoby, Philip R., Randolph M., Richard P. Emery, Ronald M., Rosalyn J. Rettman, Sarah A. Bianchi, Sherman G., Thomas L., Toby
cc: Alice E. Shuffield, Bruce N. Reed, James C. Murr, Mary L., Thomas L.
      Elena -- here, is the missing Q&A that you wanted to see

XVIII.     APPLICABILITY TO NEW ENTRANTS IN TOBACCO INDUSTRY

1.      Under the agreement, and the implementing legislation, what is
the assurance that new entrants into the tobacco industry will comply with
the statute and any related consent agreements not to challenge the
legality of the agreement implementation legislation?

        The proposed settlement and legislation do not deal expressly with
new entrants into the tobacco industry.  It appears that new entrants
would be treated similar to non-participating manufacturers under Title VI
and thus would be subject to advertising and access restrictions,
regulatory oversight, and the payment provisions, but would not receive
the benefit of any limitations on liability. There are no provisions in
the legislation that would prevent new entrants from challenging the
constitutionality of the legislation.

And here is our revised proposed international q&a (which reflects only
previously stated positions)

XIII.      EXEMPTION OF EXPORTS

        1.       Does the Administration support this exemption?     If so, why?
If not, why not?

         The Administration strongly believes that comprehensive tobacco
legislation should strengthen international efforts to control tobacco.
The President indicated his support for this effort in his statement of
September 17, 1997. This month the Administration also issued guidance to
American posts abroad encouraging them to assist and promote
tobacco-control efforts in host countries. Legislation that does not
affirmatively address international concerns is not consistent with
Administration policy. The Administration looKs forward to working with
the Committee on this issue.

        2.      What ramifications does this provision have in the area of
foreign relations?


       See response to XIII.1. above.



        3.      What changes in legislative language, if any, does the
Administration recommend regarding this provision? ,Please provide
specifics.

       See response to XIII.1. above.
     ".
."

      RECORD ,TYPE: PRESIDENTIAL     (NOTES MAIL)

      CREATOR: Ronald E. Jones ( CN=Ronald E. Jones/OU=OMB/O=EOP [ OMB 1

      CREATION DATE/TIME:25-FEB-1998 11:26:28.00

      SUBJECT:   Treasury (Larry Summers)    testimony for today

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      TO: Alan B. Rhinesmith ( CN=Alan B. Rhinesmith/OU=OMB/O=EOP@EOP [ OMB 1 )
"


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    TO: Elena Kagan ( CN;Elena Kagan/OU;OPD/O;EOP@EOP [ OPD 1 )
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    CC: James c. Murr ( CN;James C. Murr/OU;OMB/O;EOP@EOP [ OMB 1 )
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    We are advised that Summers' testimony has already been sent to the Hill.
    We would nevertheless appreciate hearing from you ASAP if. you see any
    major inconsistencies between the testimony and the President's Budget.
    We will bring any major inconsistencies to the Director's attention as
    soon as possible.
    
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