Evening star., 1949-08-18
Tito BoIstered Against Soviet
By Sale of American Steel Mill
(Continued From First Page.

ny O0Ie OF AHeI
Continued From First Page)
materials might be used for war
purposes.
officials familiar with the facts
gave this account of the behind
the-scene argument within the
administration high command
that led at last to the favorable
decision for Yugoslavia:
Secretary of State Acheson
strongly supported the Yugoslav
plea on the ground that the plant
is vitally needed to prevent Yugo-
slavias recovery program from
collapsing and possibly causing
Marshal Tito's downfall.
Mr.. Acheson argued that the
plant, a blooming and slabbing
mill. would not increase Yugo-
slavia's steel-making capacity to
any great extent but would aid
it in refining and processing steel
ingots turned out by the blast
furnaces Yugoslavia already has.
A blooming and slabbing mill
takes the first step in processing
steel ingots into finished shapes.
Steel ingots are huge long rec
tangular shaped chunks Of the
basic steel made in open hearth
furnaces from scrap metal and
pig iron.
In the blooming and slabbing
mill, ingots are rolled and squeezed
into long fiattened shapes known
as blooms and slabs. Those shapes
are further processed into sheets,
bars, rails and the like, according
to the use desired of the finished
steel product.
Mr.. Acheson acknowledged that
there was always a chance that
Tito might become reconciled with
Moscow and thus make the plant
available to Russia. He insisted
this was a calculated risk the
administration had to take as
part Of its worldwide campaign
to stop Soviet expansion.
Secretary of Defense johnson.
on the basis of figures furnished
by his department, contended the
steel mill would greatly increase
Yugoslavia's war strength and
thus was bad risk to American
security.
Mr.. johnson argued that if
Yugoslavia wanted finished steel
it could buy it from American
companies which soon would have
a surplus. A blooming mill, he
continued, could eventually be
used to make better steel for
Yugoslav guns and tanks as we'll
as rails and structural steel
the purposes for which the Yugo-
slav government requested it.
Mr.. Johnson and Mr.. Acheson
agreed to review their figures and
their argument along with other
key Government agencies, includ-
ing the National Securities Re-
sources Board and the Atomic
Energy Commission.
After several weeks Of additional
talks, Mr.. johnson dropped his
objections with the proviso that
the decision be reviewed one year
later just before shipment in the
light of conditions existing in the
world at that time.
Mr.. Acheson agreed. Export IL
censes issued by the Commerce
Department are subject to amend
ment or suspension any time prior
to shipment, anyhow.
The plant is to be built by the
Continental Foundry and Machin-
cry Co., in Pittsburgh. Delivery
is scheduled one year after the
company begins work on the or
der. In Pittsburgh, William B.
Todd, an official Of the company,
said work on the mill already has
started.
Government officials refused to
disclose the payment provision
but indicated the Yugoslav gov
ernment is paying cash in dollars
or making a substantial down
payment.
These officials said Russia and
her satellite countries can be ex-
pected to unleash new denuncia-
tions of Marshal Tito and his
government once they learn OF
the event. The argument will be
that this proves Yugoslayia is nov
tied to the Western nations per-
manently.