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Tobacco firm denies Iraq breach
LONDON, England -- A British tobacco company has denied breaching United Nations sanctions by selling cigarettes to Iraq. German customs authorities on Tuesday opened an investigation into alleged trading violations at Imperial Tobacco's subsidiary Reemtsma. But the parent company, based in Bristol, western England, said on Wednesday no employees had been arrested in connection with the investigation. The inquiry centers on allegations of foreign trading violations, including breach of U.N. sanctions against Iraq, at the German company before the 5.8 billion euro (£3.9 billion) takeover by Imperial Tobacco in May last year. Since August 1990, when Iraqi forces invaded Kuwait, there have been blanket economic sanctions against Baghdad, except for food and medical supplies. But as Iraq borders five other countries, goods flow in from most of them -- everything from cigarettes and cars to computers and big-screen TVs. Imperial Tobacco issued a statement saying it was co-operating fully with the authorities. It said: "Imperial Tobacco would like to confirm that it does not sell cigarettes to Iraq, either directly or indirectly. "The company is aware that officers of Germany's customs authorities are investigating alleged foreign trading and related violations by Reemtsma, prior to ownership by Imperial Tobacco Group PLC. "Imperial Tobacco will co-operate fully with the authorities in their investigation."
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