EXHIBIT
18
May 12,
2000
The Board of
Directors
National Steel
Corporation
Note 4 of
the Notes to the consolidated financial statements of National Steel
Corporation included in its Form 10-Q for the quarter ended March 31, 2000
describes a change in the method of accounting for non-capital construction
and major repair and maintenance costs from expensing these costs throughout
the year to expensing them in the interim period in which they are incurred.
There are no authoritative criteria for determining a “preferable”
method of accounting for non-capital construction and major repair and
maintenance costs for interim reporting based on the particular
circumstances; however, we conclude that such change in the method of
accounting is to an acceptable alternative method which, based on your
business judgment to make this change and for the stated reason, is
preferable in your circumstances. We have not conducted an audit in
accordance with auditing standards generally accepted in the United States
of any financial statements of the Company as of any date or for any period
subsequent to December 31, 1999, and therefore we do not express any opinion
on any financial statements of National Steel Corporation subsequent to that
date.