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

73. Policy Paper¹

Washington, August 25, 1965.

POLICY CONCERNING U.S. ASSISTANCE IN THE DEVELOPMENT OF FOREIGN COMMUNICATIONS SATELLITE CAPABILITIES

General:

It is the policy of the United States to support the development of a single global commercial communications satellite system to provide common carrier and public service communications. The intent of the United States to exploit space technology for the service of all mankind, and to promote its use in support of peace, understanding and world order has been stated clearly in legislation and in Administration speeches and official releases. The U.S. Government is committed to use global commercial communications facilities for general governmental communications purposes wherever commercial circuits of the type and quality needed to meet government requirements can be made available on a timely basis and in accordance with applicable tariff or, in the absence of Federal Communications Commission jurisdiction, at reasonable cost. Separate satellite communications facilities including surface terminals may be established and maintained by the U.S. Government to meet those unique and vital national security needs which cannot be met by commercial facilities. The capacity of these separate facilities shall at all times be limited to that essential to meet such unique needs. These policies underlie the spirit and the letter of the Communications Satellite Act of 1962, its legislative history and the position of the United States in the negotiations leading to the signing of agreements establishing interim arrangements for a global commercial communications satellite system.

Provisions for the establishment of the global commercial communications satellite system and a U.S. national defense communications satellite system consistent with these policies have now advanced to the point where it is desirable to amplify and interpret these policies in order to guide United States relations with other countries in the development of communications satellite capabilities, and particularly with respect to providing technology and assistance therefor.

Discussion:

Most major countries of the World other than the United States provide international public communications services through governmental agencies or chartered chosen instrument corporations partially or wholly owned by the government. Assistance to any of these foreign governments in the development of communications satellite systems can potentially develop competitors seeking to divert traffic from the single global system being developed by the international consortium established as a result of U.S. actions initiated by the Communications Satellite Act of 1962 and now joined by forty-six nations.

The communications satellite activities of U.S. Government agencies, including the Department of Defense and the National Aeronautics and Space Administration, have an important bearing on the U.S. support of the objectives of the Communications Satellite Act of 1962. These activities may contribute to the dissemination of scientific and technical knowledge of the subject to foreign countries which might be used to the detriment of U.S. policy in this field.

A policy to guide government agencies in the dissemination of satellite technology and in the provision of assistance which is consistent with the overall policies enunciated above is necessary. Such policy should be sufficiently comprehensive to give due regard to the specific requirements of national security.

For purposes of this policy statement it is intended that restrictions upon transfer of technology and provision of assistance refer to detailed engineering drawings, production techniques and equipment, and manufacturing or fabrication processes pertaining to complete communications satellites or a significant portion thereof, and to provision of launching services or launch vehicles for communications satellites. It is not intended that this policy statement apply to surface terminals and stations or limit dissemination of information concerning systems concepts, description of spacecraft and normal scientific and technical publications of a professional character. Furthermore, it is not intended that this statement shall limit the dissemination of information required to be disclosed under the provisions of the Special Agreement of August 20, 1964, pertaining to the establishment of a global commercial communications satellite system.

Specific principles to guide United States arrangements for assistance to other countries in the development of communications satellite capabilities are:

1. The United States should conform fully with the 1964 Agreements Establishing Interim Arrangements for a Global Commercial Communications Satellite System.

2. The United States should refrain from providing assistance to other countries which would significantly promote, stimulate or encourage proliferation of communications satellite systems.

3. The United States should not consider requests for launch services or other assistance in the development of communications satellites for commercial purposes except for use in connection with the single global system established under the 1964 Agreements.

4. The United States should recognize the vital national security needs of other allied nations which can be met by satellite communications and which cannot be met by the commercial system. For example, the United Kingdom has indicated its need for highly reliable satellite communications from England to Australia and to other Far East terminals.

5. The United States aim is to encourage selected allied nations to use the U.S. national defense communications satellite system rather than to develop independent systems and to accommodate allied needs within the U.S. system (with additional costs normally to be borne by the participants). Recognized needs should be restricted to those, similar to ours, which are vital to the national security of the selected allied nations and which cannot be met by commercial facilities. To accommodate the needs within the U.S. national defense system it may prove necessary to include one or more satellites, synchronous or otherwise, whether of the same or different design. In this case, such satellite(s) should be designed to be electronically interoperable with the satellites of the basic U.S. national defense communications satellite system in order to permit mutual usage.

6. Agreements for direct assistance to allies which may significantly promote their communications satellite capability should require satisfactory assurance that the assistance furnished will be used only within the framework of agreements and arrangements to which the United States is a participant and will not be transmitted or transferred to a third nation without prior U.S. authorization. No agreement should be concluded with any nation until information has been made known to other allied nations concerning the U.S. willingness to cooperate in meeting other nations’ national security needs which are similar to ours.

7. U.S. firms are required to comply with the Munitions Control licensing procedure prior to communicating satellite or related technology, transferring equipment or components as embraced by the United States Munitions List, including booster technology and launch services, to foreign nations or firms.

8. U.S. firms are also required to comply with the Department of Commerce’s export licensing requirements prior to communicating or transferring to foreign nations or firms certain other relevant technology, equipment or components, not covered by the U.S. Munitions List.

9. All transactions approved under paragraphs 7 and 8 involving technology and assistance pertaining to complete communications satellites or a significant portion thereof, and to provision of launching services or launch vehicles for communications satellites should be conditioned upon express (written) assurances to this government by the foreign nations(s). The assurances should be that technology and assistance obtained will be used only within the framework of the existing international consortium agreements for a single global system or the framework of such special agreements as are referred to in paragraph 6 above and will not be transmitted or transferred to a third nation without prior U.S. authorization.

10. The principles and policy set forth in this document should be reviewed and updated as communications satellite system developments progress and definitive requirements are determined and after the global commercial communications satellite system has been established and is in substantial use.

Policy:

Therefore, in keeping with the above, it is the United States policy to:

1. Promote the prompt establishment and successful operation of a single global common carrier and public service communications satellite system in cooperation with other nations as part of an improved global communications network which will provide expanded telecommunications services and which will contribute to world peace and understanding.

2. Avoid measures which would adversely affect either the continued expansion of participation in the existing international agreement for a single global commercial communications satellite system or acceptability of the basic premises of the present agreements on a permanent basis.

3. Make use of commercial communications facilities for general governmental purposes wherever commercial circuits of the type and quality needed to meet government requirements can be made available on a timely basis and in accordance with applicable tariff or, in the absence of Federal Communications Commission jurisdiction, at reasonable cost. Establish and maintain separate satellite communications facilities including ground terminals with capacity limited to that necessary to meet those unique and vital national security needs which cannot be met by commercial facilities. The capacity of these separate facilities shall at all times be limited to that essential to meet such unique needs.

4. Encourage selected allied nations to use the U.S. national defense communications satellite system rather than to develop independent systems and accommodate their needs within the U.S. system (with additional costs normally to be borne by the participants). Recognized needs should be restricted to those, similar to ours, which are vital to the national security of the selected allied nations and which cannot be met by commercial facilities.

5. Withhold provision of assistance to any foreign nation in the field of communications satellites which could significantly promote, stimulate or encourage proliferation of communications satellite systems.

6. Provide technology and assistance in the field of communications satellites to foreign nations: (a) only if such nations are to participate in the U.S. national defense communications satellite system and then only to the extent required for that participation to be effective; or (b) only for use in connection with the single global commercial communications satellite system in accordance with the provisions of the Interim Agreement and Special Agreement of August 20, 1964; and only if there exist appropriate assurances that such technology or assistance will not be transmitted or transferred to a third nation without prior U.S. authorization.

The policies expressed above will be kept under review by the Special Assistant to the President for Telecommunications/Director of Telecommunications Management and the agencies and departments concerned.

1. Source: Johnson Library, National Security File, Charles E. Johnson Files, COMSAT—US Communication Policy NSAM No. 338, #1 [1 of 2], Box 13. Confidential. There is no drafting information on the source text.