WASHINGTON (AP) -- A preliminary report ordered by President Clinton and due out next month will state that the federal government should have more control over the tobacco industry, according to a co-chairman of the commission that drafted the document.

One of the recommendations is that the Food and Drug Administration regulate the manufacturing, sale and marketing of cigarettes. Another is that all domestic tobacco be inspected by the U.S. Department of Agriculture. Only tobacco sold at auction is currently inspected, graded and priced according to a federal system. "We've agreed on about 16 or 18 principles that we feel are in the best interest of the health and tobacco community," said Rod Kuegel, co-chair of the commission assigned to find ways to give tobacco farmers an economic boost while protecting the public from the hazards of smoking. Clinton ordered the creation of the commission in September. Increasing imports of cheaper foreign tobacco and declining cigarette sales have led to cuts in the amount of leaf U.S. growers can sell under a federal quota system designed to stabilize prices. Kuegel, president of the Burley Tobacco Growers Cooperative, said the commission's preliminary report will be released in two weeks Tobacco that farmers sell directly to companies is not subject to federal inspection or pricing -- something Kuegel said could eventually undermine the federal price-support program. Health advocates have their own reasons for wanting inspections. Federal inspectors can ensure farmers are not improperly using pesticides or other chemicals, said Scott Ballin, a consultant to the Campaign for Tobacco-Free-Kids. As for FDA regulation, Ballin and Kuegel say it would lead to important labeling requirements. Both want to require manufacturers to state on cigarette packs how much of the tobacco blend comes from overseas and how much is grown domestically. Kuegel acknowledged that some farmers have opposed FDA regulation. But he added that they would benefit from labeling, because consumers prefer U.S. leaf. "I think as the finest producers of tobacco in the world, and the safest tobacco, we need to let the consumer know that," he said. The U.S. Supreme Court ruled in March that current law does not allow the FDA to regulate tobacco. Some congressional lawmakers subsequently introduced legislation to give the FDA that authority, but those measures were not enacted. Philip Morris Inc., the nation's largest cigarette manufacturer, has indicated it would support some FDA regulation. "We are supportive of tough but reasonable regulation of cigarettes by the FDA," Brendan McCormick, a spokesman for Philip Morris, said Tuesday. He added that a host of thorny issues would have to be addressed, including how to set safer cigarette standards and how to measure and reduce youth smoking. The commission did not tackle the question of whether the government should buy tobacco farmers out of the quota program. Kuegel and Ballin said this would be addressed in a final report, due to be released in the spring. "I think that everyone agrees that should be an option. The question is how do you get there?" Ballin asked. Kuegel added that he hoped President-elect Bush would think about these issues. The commission recently sent the Bush transition team a letter requesting a meeting, but has not yet received a response, Kuegel said.

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