The American tobacco industry reached deal with Texas

The American tobacco industry has agreed to pay fourteen-billion dollars to the state of Texas to settle lawsuits brought by its government.

The sum is by far the biggest of three out-of-court settlements the industry has reached with American states demanding compensation for the cost of treating smoking-related illnesses.

Previous deals were reached last year with Florida and Mississipi.

Last June, some of the biggest tobacco companies agreed to pay about three-hundred-and-seventy billion dollars to forty American states over a twenty-five year period in return for the dropping of court claims against them.

The deal requires the approval of the Congress and the White House -- but both have criticised it.

On Thursday, President Clinton called for stricter anti-smoking legislation after revelations that a major American company targetted teenagers to increase its sales.

From the newsroom of the BBC World Service