After looking into this more deeply I realize I have to start all 
over.  I do not have enough disk on OMVS to copy to OMVS and then gzip, 
and I have no spare disk to add.  So that is out.  Even the stdout still 
requires disk be available. 
SO to start all over IS there a way to.... 
1) On zOS MVS convert a file to ascii and/then
2) Zip, compress whatever, it into something which gzip can unzip in unix? 
 
I am willing to look at any OEM software if that is what it takes. 

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