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Exposure of mice to 10, 20, or 40 ppm cadmium in their drinking water throughout pregnancy resulted in various degrees of fetal growth retardation. The newborn mice, as well as being smaller than normal, were severely anemic. Parenterally administered iron completely prevented the cadmium-induced fetal growth retardation and anemia. The significance of a possible relationship of small-for-date babies with cigarette smoking and cadmium intake was discussed.