Foreign Relations of the United States, 1964–1968, Volume XXXIV, Energy Diplomacy and Global Issues

103. Telegram From the Department of State to the Embassy in the United Kingdom¹

Washington, August 13, 1968, 1714Z.

219721. Subject: Soviet International Satellite Communications System Proposal.

1. As reported London 11433 (NOTAL)² Soviets have put forward in London and apparently in selected other capitals proposal for new international satellite communications organization to be called Intersputnik.³ According UN Outer Space Secretariat official, text of Soviet draft agreement has been transmitted to UNSYG under cover of joint letter from USSR and seven other Communist countries (Bulgaria, Hungary, Cuba, Mongolia, Poland, Romania and Czechoslovakia). It is presently being translated and will be circulated August 13 as UN document. Distribution may be timed to coincide August 14 opening of UN Space Conference in Vienna.⁴

Approach was not made to US but on August 9 Soviet official gave Embassy Moscow copy of draft agreement when Emb officer pressed for views on INTELSAT (Moscow 5021 NOTAL⁵). Canadian and Italian Embassies have informed Dept approaches made to their Governments and Emb Paris reports French Government has copy Soviet proposal; no others yet confirmed. Canadians provided additional information in conversation August 6, including very incomplete summary in English of Soviet draft agreement. Full text draft agreement given to UK and Canada in Russian, being translated and not yet available.

2. On basis information available, proposed organization appears similar to INTELSAT in most respects, but with major difference that power would lie in one-nation-one vote council rather than in committee operating with weighted voting. Intended relationship to INTELSAT and whether it is contemplated that latter would continue to exist not stated.

3. Action addresses requested communicate following US views to host governments:

A We have not seen text of draft proposed agreement. Therefore, following views, based on impression we now have, are tentative pending more complete information.

B Most likely among possibilities of what Soviets intend appears to be global satellite communication system in place of INTELSAT. If this is intent, we see two major problems. First, there is in INTELSAT a going, world satellite communications organization which meets the purposes of the Soviet proposal. INTELSAT is operating successfully with very wide coverage, membership including countries of all sizes. (Sixty-two member nations of INTELSAT handle more than 95 percent of world’s international telecommunications traffic. INTELSAT now has operating satellite coverage of major parts of world and will by middle of 1969 have satellites capable of handling all major areas. Eighteen earth stations that are part of system now in operation in fourteen countries and about thirty in various stages of construction or planning. Forty to fifty earth stations expected to be operative by 1970. Total investment in satellites and earth stations by that time will be around $350 to $400 million—see CA–7411, April 19, 1968.⁶) We have made clear Soviet participation would be welcome; President Johnson reiterated invitation to Soviets to join in August 1967 message on communications policy and in June 1968 Glassboro speech.⁷ We do not think progress of INTELSAT or negotiation of INTELSAT definitive arrangements should be held up in favor of new organization. Second problem is voting formula for important decisions. If it is, as it appears, one member-one vote, the formula is unacceptable to US since it does not take account of extreme differences in contributions to and use of the system.

C We welcome Soviet interest in establishment of global telecommunications organization, though we note that there is such an organization in existence. US for its part would be prepared to consider with INTELSAT partners whether there is some way INTELSAT structure could be made more attractive to USSR. We believe that, in view of apparent similarity of Soviet proposal to INTELSAT, this could be productive if Soviets are serious. We are not, however, prepared to hold up progress of INTELSAT or drop concept of weighted voting on important questions. We note that US proposal for INTELSAT definitive arrangements introduced in October 1967 contained provision for assembly of members which would deal with certain broad policy matters (but would not decide many important, including commercial, questions) and which would act on the basis of a majority vote (counting one-nation-one vote) and a two-thirds vote by investment shares. Precise description of assembly, including voting arrangements, obviously subject to further discussion, subject however to basic US views described above.

4. Dept responding similarly to Canadian approach here and informing British Embassy of substance of above.

5. Would appreciate reactions action addressee host governments soonest; any replies prior August 27 should be repeated Vienna for US Del, Outer Space Conference.

Rusk

1. Source: National Archives and Records Administration, RG 59, Records of the Department of State, Central Files, 1967–69, TEL 6. Confidential. Drafted by Miller (E) and Loy (E) and cleared by Dubs (EUR), Nesbitt (SCI), James Van R. Springer (L), Solomon (E), Abraham Katz (EUR), Joseph P. Lorenz (IO), Clark (DTM), Carroll Brown (S/S), Ende (FCC), Kemp (DOD), Radius (NASA), Johnson (NASC), and Eugene Rostow. Also sent to Belgrade, Bern, Bonn, Bucharest, Canberra, Copenhagen, Moscow, Ottawa, Paris also for CEDTO, Stockholm, Tokyo, Vienna, USUN, Mission at Geneva, USEC Mission at Brussels, and Mission to NATO.
2. Dated August 2. (Ibid., POL 17 USSR-UK)
3. The Intersputnik proposal was published as UN doc. A/AC.105/46 on August 9, 1968.
4. The UN Conference on the Exploration and Peaceful Uses of Outer Space was held in Vienna August 14–27 under the chairmanship of Austrian Foreign Minister Kurt Waldheim. The conference had two objectives: 1) to examine the practical benefits to be derived from space research and exploration and the extent to which non-space powers, especially in the developing world, could benefit, and 2) to examine opportunities available to non-space powers for international cooperation in space. More information on the conference is in the Yearbook of the United Nations 1968, vol. 22, pp. 57–69.
5. See Document 102.
6. Not printed. (National Archives and Records Administration, RG 59, Records of the Department of State, Central Files, 1967–69, TEL 6)
7. See footnote 2, Document 97, and Document 102.