Evening star., 1948-08-02
u. ). Steel Industry
May Receive Scrap
From Germany Soon
By Robert S. Allen
North Americon Newspaper AlIionee

NORM emefCOn newspaper RIiohce
The American steel industry may
soon start receiving large quantities
of desperately needed scrap from
Germany.
Representative Macy. Republican,
of New York, chairman of a special
committee investigating the serious
scrap shortage, today expressed the
belief that a solution had finally
been found for the obstacles that
have long blocked procurement Of
high-grade steel scrap from German
war ruins.
An estimated 100000 tons of
this scrap is available in the Amer
ican occupation zone. Despite the
urgent need of this country's steel
industry for the scrap, a protracted
DISPUTE between the Commerce and
State Departments and Gen. Luclus
Clay, American commander In Ger
many, has held up its procurement
Meanwhile. the British steel IN
dustry has imported hundreds OF
thousands of tons of this scrap as
war booty" Much of it has come
from the Ruhr.
SAWYER Pushes Plans.
Under a plan now being pusheo
bv Secretary of Commerce sawyer
the United States would obtain l.
0oo 600 tons of German steel scrap
in the next y months at $50 Ton,
The metal would be transported
In ships carrying supplies OF 1000
to Germany.
As an incentive" bonus. German
xcran dealers will receive 2O per
cent of their payment in american
dollars. The remainder Will be IN
accupation marks. The dollars can
be used to buy equipment, 1000
and such commodities as cigarettes
soap and coffee.
The s2O-a-ton price is still mat
ter of hot dispute between auVioi
tiles and the British.
The latter are offering German
dealers $50 ton, with a 20 per cent
"jncentive" bonus. Presumably, the
British will get the dollars for TINS
bonus from ECA funds they receive
During his investigation, MI Macy
disclosed that the ch!et reason lol
the failure of American SteelmaKers
tn obtain German scrap was the
reluctance of responsible Govern
ment agencies to help its lmporta-
ton. Both the State Department
and Gen. Clay have taken the attl-
tude that the scrap was necessary
to aid the Germans to rebuild their
war-shattered industries.
Nacv's Three-POint Reply.
Mr.. Macy hotly assailed this policy
on three grounds: % That the
scrap was desperately needed IN
the United States to meet defense
needs. I2p That in the event OF war
the German scrap, if not removed
would fall into the hands OF the
Russians, and C3) That the British
and other European powers are get
ting large quantities OF the scrap
free of cost as war loot
Secretary Sawyer agrees with MI,
Macy on these points. Since taxing
office several months ago, Mr.. saw
ver has backed Mr.. Macy against
Cen. Clay and the State Depart
ment. Mr.. Sawyer takes the posi-
tion that the requirements OF the
american steel industry have hrS'
priority and that the Government
snould do everything in its power
to obtain German scrap. !
To speed up the procurement OF
this scrap, Mr.. Sawyer has sent a
eroup of Commerce experts to Ger
MANY. Their mission is to arrange
the purchase and shipment OF at
least / 100000 tons of scrap during
the next II months.
During the hearings conducted pN
Mr., Macy, steelmakers teStlfled that
If large quantities of German scrap
could be obtained it would material
" aid in overcoming the steel short
age that is hampering many United
States industries. They declared
that elimination of the scrap bot
tleneck would go long way toward
wiping out the gray market IN
steel
The steelmakers stated that scrap
IS a major ingredient in steel pro-
duction. and that from one 10 three
tons of scrap are necessary to make
three tons of high-grade steel.