Memorandum on Annual Determination on Steel Industry Modernization

Memorandum for the United States Trade Representative

In accordance with Title VIII, Section 806 of the Trade and Tariff Act of 1984, you are hereby authorized and directed to report my determination to the Committee on Ways and Means of the House of Representatives and the Committee on Finance of the Senate, together with the attached report and the report of the United States International Trade Commission (USITC), on the efforts undertaken by the domestic steel industry to modernize and maintain its international competitiveness. The Act requires the major companies of the steel industry to commit substantially all of their net cash flow to investment in modern plant and equipment, and research and development; to maintain their international competitiveness in quality and cost, improve productivity, and control production costs; and to commit one percent or more of their net cash flow to worker retraining programs (which may be waived for unusual economic circumstances).

The attached report, together with the report prepared by the USITC at my direction and under the authority contained in Section 332(g) of the Tariff Act of 1930, enumerates the actions taken by the domestic industry consistent with an affirmative determination under Section 806. Based upon these reports and upon further examination of all available data, I hereby make an affirmative determination for the second annual period, and waive the application of Section 806(b)(1)(B) with respect to a major company which neither has nor reasonably anticipates significant unemployment.

This memorandum shall be published in the Federal Register.

RONALD REAGAN

THE WHITE HOUSE,

Washington, September 30, 1986.