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ZC ZC OT COATESVILLE PA AJ GUST 23
PMS PRES I DEVT JIMMY CARTER
THE WHITE OJJ E
DEAR MR. PRES I DEVT:
THE AMERICAN STEEL IN DUS TRY IS SJFT EBING ONE OF THE WORST
BUSINESS SLUMP3 IN RES EVT I STORY. STEELWORKERS BY THE
TEV5 OF THOUSANDS ARE EXPERI EVCING THE HARDSHIP AND LOSS OF
S ELF - ESTEEI OF UNE:1P LOY:1 ENT. YET, A PROJECT THAT COULD LEAV
I.VC AEAJ ED PRODUCTION FOR THE AMERICAN STEEL IN DUS TRY AND JO35
FOR ITS. EMPLOYEES IS BEING HANDED TO A JAPAVES E FIRM WITH U...
GOVERNMENT SLESSINGS AND SUPPORTED WITH TLE DOLLARS OF HARD
WORKING AMERICAN CITIZENS.
THE NATION'S FIRST COMMERCIAL.COAL GASIFICATI ON PLUWT WILL BE
BUILT IN BEULAH, N.D. FOR AMERICAN NATURAL RESOURCES CORP. WITH
DEPARTMENT OF ENERGY SUPPORT THROUGH GOVERNMENT GUARANTEED LOAVS.
IT WILL BE THE FIRST COAL GASI: ICATI ON PROJECT TO BE CONSTRUCTED
UN DER YOUR SYNTHETIC JELS ACT. HOWEV ER, THERE I3 LITTLE REJOI -
CING FOR AMERICAN STEELWORKERS IV REGARD TO THIS PROJECT. T:LE
DESI GVER. AMERICAV LURGI, LAS ACCEPTED A JAPAN ES E FIR'S BID FOR
BOTH THE STEEL AND FABRICATI ON OF THE 14 GASIFICATION VESSELS
NEEDED. AN ATERI CAN FABRICATION COMPANY, CHICAGO BRI DGE & I RON,
ALSO BID FOR THE JOB BUT COULD NOT COMPETE WITH THE JAPAVES E
FIAM, HITACHT. LTD...
THE. LOSS OF THE BEULAH OPPORTUNI TY FOR THE AMERICAN STEEL
INDUSTRY'AMOUNTS TO OV ER 2.032 TONS OF "HEAVY PLATE STEEL, BUT THE..
SI GVIFICANCE OF THE SITUATI ON GOES : FAR BEYOND STEEL TONNAGE. THE
AM ERICAN STEELWORKER 13 A PROUD AND PRODUCTIVE MEMBER OF SOCI ETY.
HISTORY HAS SHOWN TIME AND TIME AGAIN THAT. AMERI CAV STEELWORKERS
MEET OPPORTUNI TI ES AND CHALLENGES WITH FERVOR AND EN THUS I ASiM.
HOWEV ER SUC: A CHANCE TO PARTICIPATE IN OUR NATI ON'S FIRST STEP
TOWARD ENERGY. INDEP EN DENCE HAS BEEN SNATCHED AWAY BY A FOREI. GV
STEEL PRODUC ER. THE CHALLENGE WAS LOST. WI THOUT A FAIR BATTLE.
AS PRES I DENT OF LOCAL UNION 2295 OF THE UNITED STEELWORKERS OF AMERICA.. I HOPE, THROUGH YOUR OFF ICE, THIS I RONIC SITUATI ON CAN BE RECTIFIED TO: THE SATISFACTION OF THE AMERICAN STEEL WORKER AND THAT AMERICA'S ENERGY NEEDS FOR THE FUTJRE WILL BE BUILT ON A FOUNDATION OF AMERICAN STEEL AND BY AMERIC AV WORKERS :
CHARLE W. WITTE JR. PRES I DENT LOCAL UNION 2295 OF Tia
ZS ZS 01 COATESVILLE, PA. 3/27/30
PMS PRESIDENT JIMMY CARTER
THE WHITE HOUSE
DEAR MR. PRES I DENT:
I AM WI RING 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
I HAVE LEARNED THAT AN: AMERICAN COMPANY, CHICAGO BRI DGE AND I RON, WHICH BID ON THE FABRICATI ON OF 14 GAS IF I ERS FOR THE BEULAH COAL. GASIFICATION PLANT, LOCATED IN NORTH DAKOTA, WAS UNDERBI D BY HITACHI, LTD., OF JAP AV. THIS PLANT WILL BE BUILT FOR AMERICAN NATURAL RESOURCES CORP. WITH DEPARTMENT OF ZVERGY SUPPORT THROUGH GOVERNMENT GUARANTEED LOANS. IT IS THE FIRST COMMERCIAL COAT GASIFICATION PROJECT TO BE BUILT IN DER YOUR SYNTHETIC FUELS AC T.
I AM DEEP LY CONCERNED ABOUT THIS PROJECT BEC AUS E THERE
ARE 2,000 TONS OF HEAVY GAUGE PRESSURE VESS EL STEEL I:V. THE
GASIFIERS THAT COULD PROVIDE WORK FOR STEELWORKERS AT LUKEVS
STEEL COMPANY IN COATESVILLE, PAY. IF SB AND I FABRICATED THE
PRESSURE VESS ELS. WE WILL NOT. EV EN GET A CHANCE AT THE
WORK IF THE VES S ELS ARE BUILT IN JAP AV.
MR. PRES I DENT. THERE ARE OVER 200 MEMBERS OF MY LOCAL WHO ARE LAID OFF BECAUSE THERE ISN'T ENOU GH BUSINESS COMING TO LUKENS. WE CAN USE THE WORK THIS PROJECT CAN GENERATE AVD WOULD APPRECIATE THE OPPORTUNI TY TO PARTICIPATE IN FUTURE PROJECTS UNDER YOUR SYNFUELS PRO GRAM AND SUPPORTED BY QUR TAX DOLLARS.
IT IS MY HOPE THAT YOU WILL USE YOUR OFFICE TO SEE THAT TH ES E
14 GAS IF I ERS ARE BUILT IN AMERICA WI TH 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 LEGISLATI ON TO KEEP FUTURE JOBS IN AMERICA.
BENJAMIN J. PILOTTI
PRESIDENT UNITED STEEL WORKERS OF AMERICA, AF L-C10
LOCAL UNI ON 1165
: 835491 LİKENS COAT
CC: HOV. CHARLES W. DUNC AV, JR
HON. JOHN H. HEINZ I11.
HON. RICHARD S. SCHWEIKER
HON. ROBERT S. WALKER
HON RICHARD T. SCHULZE
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 concemed 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 canem 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 concemed about jobs and the overall health and well-being of our econany, it
seems unthinkable to us that the fabricated steel used in this project would come
from offshore rather than from damestic sources.
It is our understanding that you will be receiving communications on this subject
from labor unian officials, rank and file union members and management officials.
It is a onem which arts 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 some
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 reductia
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 exanine this situation along with appropriate officials
in your Aaninistration. We believe your conclusion will be that a more equitable
"Buy America" criteria should be used at Buelah.