ZC ZC 1 COATESVILLE PA AUGUST 23
PMS PRESIDENT JIMMY CARTER

THE WHITE HOUSE

WASHINGTON, D.C.

BT

DEAR MR. PRESIDENT:

THE AMERICAN STEEL INDUSTRY IS SUFFERING ONE OF THE WORST
BUSINESS SLUMPS IN RECENT HISTORY. STEELWORKERS BY THE
TENS OF THOUSANDS ARE EXPERIENCING THE HARDSHIP AND LOSS OF
SELF-ESTEEM OF UNEMPLOYMENT. YET, A PROJECT THAT COULD MEAN
INCREASED PRODUCTION FOR THE AMERICAN STEEL INDUSTRY AND JOES
FOR ITS EMPLOYEES IS BEING HANDED TO A JAPANESE FIRM WITH U.S.
GOVERNMENT BLESSINGS AND SUPPORTED WITH THE DOLLARS OF HARD
WORKING AMERICAN CITIZENS.

THE NATION'S FIRST COMMERCIAL-COAL GASIFICATION PLANT WILL BE
BUILT IN BEULAH, N.D. FOR AMERICAN NATURAL RESOURCES CORP. WI TH
DEPARTMENT OF ENERGY SUPPORT THROUGH GOVERNMENT GUARANTEED LOANS ·
IT WILL BE THE FIRST COAL GASIFICATION PROJECT TO BE CONSTRUCTED
UN DER YOUR SYNTHETIC FUELS ACT. HOWEVER, THERE IS LITTLE REJOI
CING FOR AMERICAN STEELWORKERS IN REGARD TO THIS PROJECT. THE
DESIGNER, AMERICAN LURGI, HAS ACCEPTED A JAPANESE FIRM'S BID FOR
BOTH THE STEEL AND FABRICATION OF THE 14 GASIFICATION VESSELS
NEEDED. AN AMERICAN FABRICATION COMPANY, CHICAGO BRIDGE & IRON,
ALSO BID FOR THE JOB BUT COULD NOT COMPETE WITH THE JAPANESE
FIRM, HITACHI LTD.

THE

THE LOSS OF THE BEULAH OPPORTUNITY FOR THE AMERICAN STEEL
INDUSTRY AMOUNTS TO OVER 2,000 TONS OF HEAVY PLATE STEEL, BUT THE
SIGNIFICANCE OF THE SITUATION GOES FAR BEYOND STEEL TONNAGE.
AMERICAN STEELWORKER IS A PROUD AND PRODUCTIVE MEMBER OF SOCIETY.
HISTORY HAS SHOWN TIME AND TIME AGAIN THAT AMERICAN STEELWORKERS
MEET OPPORTUNITIES AND CHALLENGES WITH FERVOR AND ENTHUSIASM.
HOWEVER, SUCH A CHANCE TO PARTICIPATE IN OUR NATION'S FIRST STEP
TOWARD ENERGY INDEPENDENCE HAS BEEN SNATCHED AWAY BY A FOREIGN
STEEL PRODUCER. THE CHALLENGE WAS LOST WITHOUT A FAIR BATTLE.
AS PRESIDENT OF LOCAL UNION 2295 OF THE UNITED STEELWORKERS OF
AMERICA, I HOPE, THROUGH YOUR OFFICE, THIS IRONIC SITUATION CAN
BE RECTIFIED TỔ THE SATISFACTION OF THE AMERICAN STEELWORKER AND
THAT AMERICA'S ENERGY NEEDS FOR THE FUTURE WILL BE BUILT ON A
FOUNDATION OF AMERICAN STEEL AND BY AMERICAN WORKERS.

SINCERELY,

CHARLE W. WITTE JR. PRESIDENT LOCAL UNION 2295 OF THE
UNITED STEELWORKERS OF AMERICA

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ZC ZC 31 COATESVILLE, PA. 3/27/38

PMS PRESIDENT JIMMY CARTER

THE WHITE HOUSE

WASHINGTON, D.C.
BT :

DEAR MR. PRESIDENT:

I AM WIRING YOU TODAY ABOUT STEELWORKERS JOBS THAT
WILL BE EXPORTED TO JAPAN WITH THE BLESSING AND ENCOURAGEMENT
OF THE U.S. DEPARTMENT OF ENERGY UNLESS YOU ACT TO PREVENT
IT.

I HAVE LEARNED THAT AN AMERICAN COMPANY, CHICAGO BRIDGE AND IRON, WHICH BID ON THE FABRICATION OF 14 GASIFIERS FOR THE BEULAH COAL GASIFICATION PLANT, LOCATED IN NORTH DAKOTA, WAS UNDERBID BY HITACHI, LTD., OF JAPAN. THIS PLANT WILL BE BUILT FOR AMERICAN NATURAL RESOURCES CORP. WITH DEPARTMENT OF ENERGY SUPPORT THROUGH GOVERNMENT GUARANTEED LOANS. IT IS THE FIRST. COMMERCIAL COAT GASIFICATION PROJECT TO BE BUILT UNDER YOUR SYNTHETIC FUELS ACT.

I AM DEEPLY CONCERNED ABOUT THIS PROJECT BECAUSE THERE
ARE 2.000 TONS OF HEAVY GAUGE PRESSURE VESSEL STEEL IN THE
GASIFIERS THAT COULD PROVIDE WORK FOR STEELWORKERS AT LUKENS
STEEL COMPANY IN COATESVILLE, PA., IF CB AND I FABRICATED THE
PRESSURE VESSELS. WE WILL NOT EVEN GET A CHANCE AT THE
WORK IF THE VESSELS ARE BUILT IN JAPAN.

MR. PRESIDENT, THERE ARE OVER 200 MEMBERS OF MY LOCAL ́ WHO ARE LAID OFF BECAUSE THERE ISN'T ENOUGH BUSINESS COMING TO LUKENS. WE CAN USE THE WORK THIS PROJECT CAN GENERATE AND WOULD APPRECIATE THE OPPORTUNITY TO PARTICIPATE IN FUTURE PROJECTS UNDER YOUR SYNFUELS PROGRAM AND SUPPORTED BY QUR TAX DOLLARS.

IT IS MY HOPE THAT YOU WILL USE YOUR OFFICE TO SEE THAT THESE 14 GASIFIERS ARE BUILT IN AMERICA WITH AMERICAN LABOR AND AMERICAN STEEL. I ALSO ASK THAT YOU USE YOUR INFLUENCE TO SEE THAT ADEQUATE "BUY AMERICAN" PROVISIONS ARE ADDED TO THE SYNTHETIC FUELS LEGISLATION TO KEEP FUTURE JOBS IN AMERICA.

BENJAMIN J. PILOTTI

PRESIDENT UNITED STEEL WORKERS OF AMERICA, AFL-CIO
LOCAL UNION 1165

The Board of Commissioners was very distressed to hear that the Nation's first commercial coal gasification plant, which is being built in Beulah, North Dakota, with loans guaranteed by the Department of Energy, will be constructed using Japanese steel.

We are concerned about this issue from a local industry standpoint and a national policy perspective. From the local standpoint, Chicago Bridge & Iron was the lowest American bidder, and they lost the bid to the Japanese competitor. Lukens Steel Company, one of Chester County's largest employers, and the potential domestic provider of the steel plates for the project, recently was forced to lay off several employees due to the economic slump currently being experienced by the entire domestic steel producing industry. This diversion of business to foreign manufacturers and producers only adds to the problems of the domestic steel industry and its workers.

From the national policy perspective, we are concerned that this, the first project funded by the Windfall Profits Tax, a tax which came about because of America's dependence on imports, will be used to further increase our dependence on imports. The State of Pennsylvania requires that all projects using State funds use American produced steel. We would

suggest that you adopt this policy on a national basis, and in the meantime, urge you to direct the Department of Energy to reconsider the acceptance of the Japanese bid.

We are most urgently concerned about the very first project initiated under the
Synthetic Fuels Act to be financed with proceeds from the windfall profits tax.
This project, as you know, is located at Buelah, North Dakota and is designed
to be a coal gasification plant.

Our concern is that the private consortium which is developing this plant using federal funds apparently intends to purchase over 2,000 tons of Japanese fabricated steel to construct the necessary pressurized vessels. At a time when every American is concerned about jobs and the overall health and well-being of our economy, it seems unthinkable to us that the fabricated steel used in this project would come from offshore rather than from domestic sources.

It is our understanding that you will be receiving communications on this subject from labor union officials, rank and file union members and management officials. It is a concem which cuts across all political considerations and, in our opinion, necessitates your swift response and action. American steel produced by American workers must be used, not only in this but in similar future projects.

It is our further understanding that the Japanese interests submitted a bid same 20% below the nearest domestic supplier; however, an analysis of the merits of this situation would indicate that this lower bid was achieved through a drastic reduction to an unrealistic figure of the transportation costs of shipping this offshore steel. This raises some questions regarding dumping in the American marketplace. But, most importantly, the issue of costs is transcended by the need to create jobs and preserve jobs by bolstering the well-being of our vital domestic steel industry. We strongly urge you to examine this situation along with appropriate officials in your Administration. We believe your conclusion will be that a more equitable "Buy America" criteria should be used at Buelah.

Sincerely,

Richard S. Schweiker, U.S.S.

John Heinz, U.S.S.

Robert S. Walker, M.C.

Richard T. Schulze, M. C.