FOR IMMEDIATE RELEASE                                         ENR
MONDAY, MARCH 10, 1997                             (202) 514-2008
                                               TDD (202) 514-1888


      UNITED STATES FINALIZES $11 MILLION AGREEMENT SPURRING
            CLEANUP OF OLD SOUTH CHICAGO STEEL WORKS 

             Cleanup Result of Innovative Cooperation
              Between State and Federal Governments

     
WASHINGTON, D.C. -- Continuing its efforts to clean up
contamination in south Chicago, the United States today announced
an administrative agreement with Chicago-based Navistar
International Transportation Corporation that is leading to the
clean up and revitalization of Chicago's old Wisconsin Steel Works
site.

     Under the agreement, Navistar will pay the Commerce
Department's Economic Development Administration (EDA) nearly $11
million, including $5 million to cover the cost of testing and
cleanup work the agency performed at the site, and $5.95 million to
settle claims on the foreclosure and ownership of the site.  In
addition, Navistar will assume full ownership and responsibility
for the site. 

     As a prerequisite for today's agreement, Navistar had to
negotiate a settlement with the State of Illinois to fully
investigate and clean up the hazardous chemical contamination
discovered at the Wisconsin Steel site.  Navistar negotiated a
cleanup agreement with the Illinois Attorney General's office,
which was filed in State court on December 30, 1996, satisfying the
federal government's prerequisite.

     "Navistar deserves credit for stepping up to the plate and
taking responsibility for cleaning up the Wisconsin Steel site,"
said Lois Schiffer, Assistant Attorney General in charge of the
Justice Department's Environment and Natural Resources Division. 
"This agreement, coupled with the wonderful cleanup settlement the
State of Illinois negotiated with Navistar, should make the site
suitable for future commercial use."    

     "EDA is pleased to have joined with Navistar in a settlement
that will result in the cleanup of the site, and put the property
back into productive use," said Assistant Secretary for Economic
Development Phillip A. Singerman.  "EDA is proud to be a leader in
the cleanup of Brownfield properties such as the Wisconsin Steel
site, and is pleased that the redevelopment of the site will spur
economic development in Chicago's south side."

     Illinois Attorney General Jim Ryan said, "I am very pleased
that Navistar will conduct an investigation of the contamination
and will clean up and return this property to productive use."

     Since the late 19th Century, the Wisconsin Steel mill site was
owned and operated by Navistar, formerly known as International
Harvester.  The site was sold to the WSC Corporation in 1977.  In
1979, EDA agreed to guarantee 90 percent of $100 million in loans
to WSC to upgrade the steel works, with Navistar backing the
remaining 10 percent.  In 1980, WSC went bankrupt and defaulted on
the loans that had been made through that date, prompting EDA and
Navistar to honor their guarantees and pay the loans.  In 1981, EDA
and Navistar purchased the site at a sale conducted by the
bankruptcy court.  

     The mission of the Economic Development Administration of the
U.S. Department of Commerce is to generate new jobs, help retain
existing jobs, and stimulate industrial and economically-distressed
areas of the United States.  EDA assistance is available to rural
and urban areas of the country experiencing high unemployment, low-
income levels, or sudden and severe economic distress.

     EDA will publish the settlement agreement in the Federal
Register for a 30 day public comment period.
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97-105