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FILED BY 407.13 strike MR. HOPKINS APR 2 1952 Steel March 27, 1952 MEMORANDUM FOR THE PRESIDENT Following our conversation in Key West, I have done the following: 1. Talked with representatives of the steel companies and urged them to begin bargaining - with a realistic offere- on the basis of the WSB recommendations. I indicated that under certain conditions I would redommend some price increase - much lower than industry desires - to accompany wage increases. 2. Talked with Governor Arnall and Mr. Putnam concerning steel prices. 3. Reviewed the current situation with Mr. Feinsinger. On the basis of these conversations I must inform you: 1. The steel companies will probably bargain on the basis of the WSB recommendations but will probably not accept the entire WSB package at any price. The companies are insistent upon receiving some payment for the wage increases they are asked to give. 2. Mr. Arnall takes strong personal and official exception to the government granting steel companies any price increase which could not be justified under present formulas. Further, it is his view that no increase - except the Capehart - can be justified. He takes this position even at the risk of taking a'strike and in the face of my report to him of your attitude on a strike. x 342 x 107-B