6 NOVEMBER 1984 MEETING WITH AMBASSADOR DIANA DOUGAN COORDINATOR FOR INTERNATIONAL COMMUNICATION AND INFORMATION POLICY DEPARTMENT OF STATE

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP89B00423R000200120010-0
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 12
• Document Creation Date: December 22, 2016
• Document Release Date: July 21, 2011
• Sequence Number: 10
• Publication Date: December 4, 1984
• Content Type: MEMO

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0 4 DEC 1984
MEMORANDUM FOR: Director of Central Intelligence
VIA: Deputy Director of Central Intelligence
Deputy Director for Intelligence
SUBJECT: 6 November 1984 Meeting with AmbassadoY~ Diana Dougan
Coordinator for International Communication and
Information Policy
Department of State
1. Ambassador Dougan is responsible for a broad range of
international.telecommunications issues including the question of
whether private companies such as Orion could enter the international
communications satellite business. She also works on negotiations
about the future use of the high frequency radio spectrum and the
geostationary orbit. She travels extensively, discussing
communications issues, most recently to Japan to discuss Intelsat
among other subjects. I have attached highlighted cables dealing with
the Orion issue (Tab A) and Ambassador Dougan's talks in Japan
2. In July 1984, Ambassador Dougan sought your support for
State's position concerning the proposal of the Orion Satellite
Company to provide transatlantic service. CIA had no Agency equities
in the issue and did not take an active role in the interagency
discussions preceding the President's Orion decision. On 28 November
the President authorized Orion and other private firms to negotiate
with Intelsat to provide specific transatlantic services.
3? OGI works extensively with Ambassador Dougan. We meet with
her periodically and are in touch with her staff almost every c~av
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SECRET
While we are not able to respond to all of Ambassador Dougan's
requests for support, we have devoted th m 'ty of our analysts'
time to supporting her office.
Attachments:
As Stated
2
SECRET
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OGI/ISID/I0~ (4 Dec 84)
Distribution:
Original and 1 - addressee
1 - DDA
1 - DDCI
1 - DDI
1 - NIO, Hal Ford
1 - D/OGI
1 - C/ISID
1 - C/IO
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C O N F I DENT I A
MSGNO 124 (STXX) ~11/28/84* *08:17:01.8.9*
zczC 13:15:o3z (sT)
CONFIDENTIAL
CRES/IG, D/FBIS-2, DSD/DEB, NCECF, NCPM, OC/ED-2, OC/FILE,
OSWR/CIG, QA/STATE, SSD/SMB, SSD/STAB, SWO, (18/W)
TAB A
PAGE 0001
STATE
ACTION: NONE INFO: NMON, ODPN-N, ODPS-S, ODPW-W, OGI/EC/CM,
OGI/GD/ERA, OOE/EI/PS, OSWR/ITC, PAGE-E ( ), RF, FILE, COMMO/RB, CRJ'F.
-----------------------------------------------------------5--9-------- 25X1
84 5809028 SCO NC 80 028
TOR: 2809232 NOV 84
-----------------------------------------------------------------------
00 RUEAIIB
ZNY CCCCC ZOC STATE ZZH
00 RUEHC
DE RUEHC 40510 3330906 -
ZNY CCCCC ZZH
0 2803532 NOV 84
FM SECSTATE WASHDC
TO AMEMBASSY TOKYO IMMEDIATE 0000 IMMEDIATE
BT
EZ 1
C O N F I D E N T I A L
LIMITED OFFICIAL USE STATE 350510 --
EZ2:
TOKYO FOR AMBASSADOR DOUGAN
CORRECTEDCOPY (TEXT-PARA3, LINE 28)
ORIGINALLY PROCESSED AS CDS445807200
E.O. 12356: N/A
TAGS: ECPS, INTELSAT
SUBJECT: INTELSAT PRESS RELEASE AND DRAFT QS AND AS
PLEASE DELIVER TO AMBASSADOR DOUGAN AS SOON AS POSSIBLE.
1. PER AMBASSADOR DOUGAN~S REQUEST, THE FOLLOWING ARE THE
PRESS RELEASE AND DRAFT QS AND AS ON INTELSAT;
2. DRAFT WHITE HOUSE PRESS OFFICE RELEASE
PRESIDENT-READ-AN-TODAY-MADE~THE-DETERMINATION THAT
-SEPARATE-INTERNATIONAL: COMMUNICATIONS SATELLITE'SYSTEMS
AR~REQUIRED-IN- THE---NATIONAL-INTEREST.--THIS "DECISION
PERMITS THE OPERATION OF SUCH S`YS'TEMS, UNDER CERTAIN
CONDITIONS, OUTSIDE OF THE INTERNATIONAL - ~ ~ ~- " --"
ELECOMMUNICATIONS SATELLITE ORGANIZATI!ON_(INTELSAT)~
AND CLEARS_THE WAY FOR CONSIDERATION BY_THE FEDERAL
COMMUNICATIONS COMMISSION (FCC) OF"FIVE"PENDING
PPLICATIONS. -- --- -------^-^-~
IN MAKING THE DETERMINATION, THE PRESIDENT DIRE_CT_ED THE
SECRETARIES OF STATE AND COMMERCE TO ESTABLISH^CRITERIA
TO INSURE THAT FCC DECISIONS ON SEPARATE SYSTEMS-ARE,
CONSONANT WITH U.S_. INTERNATIONAL TREATY OBLIGATIONS AND
TELECOMMUNICATIONS AND FOREIGN POLICY OBJECTIVES.
YN A JOINT LETTER TO THE CHAIRMAN OF THE FEDERAL
C O N F I DENT I A
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COMMUNICATIONS COMMISSION, SECRETARY OF STATE GEORGE P.
SHULTZ AND SECRETARY OF COMMERCE MALCOLM BALDRIGE ARE
NOTIFYING THE FCC THAT ANY{NEW SYSTEMS AUTHORIZED UNDER
THIS DETERMINATION 1) MUST BE-"RESTRICTED--TO-PROVIDING-' .
M~~~~~
SERVICES~THROUGH~THE SALE OR _LONG-TERM~LEASE OF
TRANSPONDERS OR SPACE SEGMENT CAPACITY FOR
COMMUNICATIONS NO_T INTERCONNECTEIS~WITII-PUBLIC-SWITCHED
MESSAGE NETWOR_KS_(EXCE_PT FOR EMERGENCY~RESTORATION
....~_.
SERVICE); AND 2) THAT ONE~OR MORE FOREIGN AUTHORITIES
MUST AUTHORIZE USE OF THE SYSTEM AND-ENTER-INTO
CONSULTATION PROCEDURES-WITH THE UNITED STATES~UNDER THE
~ERMS OF THE INTELSAT AGREEMENT TO~ENSURE-fiECHNICAL
COMPATIBILITY AND_ TO __A_VOID SIGNIFICANT ECONOM_ IC"HARM-'TO-'
E GLOBAL SYSTEM_ OF INTELSAT, ` ~~~`
OF THE FIVE APPLICATIONS FOR INTERNATIONAL SERVICE
PENDING BEFORE THE FCC, FOUR PROPOSE TRANS-ATLANTIC
SERVICES IN SOUTH AMERICAN COUNTRIES
THE U.S. AND SOUTH AMERICA, AND SERVICE BETWEEN SOUTH
AMERICA AND SPAIN.
THE U.S. GOVERNMENT BELIEVES THAT SEPARATE SYSTEMS CAN
CONTRIBUTE TO THE CONTINUED GROWTH OF THE INTERNATIONAL
TELECOMMUNICATIONS MARKET AND STIMULATE HIGHER OVERALL
LEVELS OF COMMUNICATIONS TRAFFIC BY DEVELOPING
INNOVATIVE AND CUSTOMIZED SERVICES FOR THE BUSINESS
COMMUNITY:
SATELLITE COMMUNICATION SYSTEMS OUTSIDE OF INTELSAT WERE
PROVIDED FOR IN THE ORIGINAL INTELSAT AGREEMENT AND
SEVERAL OF THEM ARE ALREADY IN EXISTENCE. THE
INTERNATIONAL MARITIME SATELLITE ORGANIZATION
(INMARSAT), ARABSAT, AND EUTELSAT PROVIDE SERVICE ON A
REGIONAL OR GLOBAL BASIS, AND DOMESTIC SATELLITES,
INCLUDING SEVERAL AMERICAN SATELLITES AND THE INDONESIAN
PALAPA SATELLITE, PROVIDE SATELLITE COMMUNICATIONS
SERVICES BETWEEN NEIGHBORING COUNTRIES.
3. ~QS AND AS AS FOLLOWS:
Q. ISN'T THE UNITED STATES UNDERMINING THE INTELSAT
GLOBAL SYSTEM BY AUTHORIZING COMPETITION"~ON THE'MOSTy-?-
LUCRATIVE AND HIGHLY-USED ROUTES ACROSS THE ATLANTIC?
A. T~iE PRE_SIDENT'S DECISION DOES NOT STATE THAT ANY
INDIVIDUAL APPLICATION FOR PRIVATE IN_TER_NATIONAL--"-?'
COMM_UNICATION_SATELLITE SYSTEMS WILL B_E'APPROVE__D. IT
DOES SAY THAT SUCH SYSTEMS ARE IN THE NATIONAL -'~
INTEREST. THIS MEETS A DOMESTIC REQUIREMENT OF THE
COMMUNICATIONS SATELLITE ACT OF 1962. THE APPLICATIONS
MUST ALSO BE AUTHORIZED BY THE FCC AND MEET THE
CONDITIONS SET FORTH IN THE LETTER OF SECRETARIES
BALDRIGE AND SHULTZ TO FCC CHAIRMAN FOWLER, NAMELY
CONSULTATION UNDER [NTELSAT PROCEDURES AND A FOREIGN
PARTNER WILLING TO AUTHORIZE THE OTHER END OF THE
SERVICE AND JOIN THE U.S. IN THE CONSULTATION PROCESS.
FURTHER, PRIVATE SYSTEMS WILL NOT BE ALLOWED TO COMPETE
WITH INTELSAT'S PRINCIPAL BUSINESS, PROVIDING
C O N F I DENT I A
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INTERNATIONAL INTERCONNECTION FOR PUBLIC SWITCHED
NETWORKS. THE EXECUTIVE BRANCH WAS NOT ONLY AWARE OF
THE OBLIGATION TO CONSULT WITH INTELSAT, BUT ALSO
COMMITTED TO THE POLICY OF AVOIDING SIGNIFICANT ECONOMIC
HARM TO THE GLOBAL SYSTEM OF INTELSAT, WE WILL NOT
PREJUDGE THE INTELSAT CONSULTATION PROCESS? BUT THE
UNITED STATES WOULD NOT INITIATE CONSULTATION ON ANY
SYSTEM IF IT BELIEVED IT WOULD CAUSE SIGNIFICANT
ECONOMIC HARM TO THE INTELSAT GLOBAL SYSTEM.
Q. WON'T THESE SATELLITE_SYSTEMS SIPHON OFF INTELSAT,
PROFITS ON -THE_TRANS-ATLANTIC_ROUTES~_THEREBY."_FORC,~NG._.
IIJTELSAT_TO LOWER RATES FOR TRANS-ATLANTIC TRAFFI,Q, IN
ORDER TO COMPETE WITH T_HE NEW_SYSTEMS?
A. ERE SH_OULD_BE NO EFFECT ON INTELSAT RATES FOR
SERVICIC HROiJGH ~PUBLICYSWITCHED"-NETWORKS:~I~IANY"OF~TFfE~
SERVICE~F'~01~OSED-BY~THE~-PRIVATE SYSTEMS -- SALE OR
LEASE OF TRANSPONDERS TO PRIVATE USERS, DEDICATED TV
TRANSMISSIONS, OR OTHER INNOVATIVE SERVICES -- ARE NOT
NOW AVAILABLE FROM INTELSAT, SOME LARGE USERS MAY
SWITCH FROM INTELSAT TO THEIR PRIVATELY-OWNED OR LEASED
TRANSPONDERS FOR THEIR OWN COMMUNICATION NEEDS, BUT THE
VAST BULK OF THE BUSINESS WILL BE NEW. EXPERIENCE ALSO
TELLS US THAT THE AVAILABILITY OF ALTERNATIVE SYSTEMS
LEADS TO INCREASED COMMUNICATION OF ALL KINDS.
Q. FtON'T""THIS NEW COMPETITION FORCE INTELSAT TO RAISE -
ITS_ R_ATES_ON SERVICE TO UNDER-DEVELOPED COUNTRIES; RATES
WHICH ARE"NOW BEING~SUBSIDIZED BY PROFITS FROM THE
TRANS-ATLANTIC TRAFFIC?
A. SINCE WE DO NOT EXPECT ANY SIGNIFICANT DECREASE IN
INTELSAT'S TRANS-ATLANTIC TRAFFIC, THERE SHOULD BE NO
EFFECT-ON ANY -CROSS SUBSIDIES TO THEIR MARKETS:~`-'WHILE "-~--?-?-
CROSS-SUBSIDIES HAVE BEEN WIDELY DISCUSSED; WE HAVE NO
EMPIRICAL EVIDENCE THAT THIS IS AN IMPORTANT FACTOR IN
SETTING RATES. INTELSAT TARIFFS ARE, OF COURSE, UNIFORM
AND AFFECT ALL USERS ALIKE.
Q. IF THERE IS A MARKET FOR NEW SERVICES, WHY ISN'T
INTELSAT PROVIDING THEM? ISN'T IT TRUE THAT THEY HAVE
EXCESS SATELLITE TRANSPONDER CAPACITY?
A. INTELSAT'S PRIMARY MISSION IS TO PROVIDE A BASIC
GLOBAL TELECOMMUNICATIONS SATELLITE SYSTEM. IT IS
JUSTIFIED IN RISKING ITS CAPITAL IN THE PURSUIT OF THAT
MISSION AND HAS EXCEEDED ALL ORIGINAL ESTIMATES OF
TECHNICAL AND FINANCIAL SUCCESS IN DOING S0. IT IS NOT
SO CLEAR THAT INTELSAT SHOULD RISK THE CAPITAL IT
DERIVES FROM BOTH DEVELOPED AND DEVELOPING COUNTRY
SHAREHOLDERS, ITS SIGNATORIES, TO INTRODUCE HIGH CAPITAL
COST SERVICES TO AN UNCERTAIN MARKET OF A LIMITED NUMBER
OF CUSTOMERS IN A FEW DEVELOPED COUNTRIES. SOME OF
THESE SERVICES ARE NOT IN FACT PROSPERING IN THE U.S.
AND IT MAY TAKE YEARS TO BUILD INTERNATIONAL MARKETS..
IF THE PRIVATE SECTOR IS WILLING TO TAKE THIS RISK AND
IS SUCCESSFUL IN DEVELOPING NEW MARKETS, THERE IS NO
C O N F I DENT I A
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REASON WHY INTELSAT MAY NOT SEEK TO SHARE IN THEM TO THE
EXTENT ALLOWED IN THE INTELSAT AGREEMENT. IF, IN FACT,
THERE IS NO MARKET FOR PRIVATE SYSTEMS, THEY OBVIOUSLY
WOULD BE UNSUCCESSFUL, BUT THAT IS THE RISK OF THE
PRIVATE INVESTORS.
Q. WHAT KINDS OF SERVICES ARE THESE NEW SATELLITE
SYSTEMS GOING TO PROVIDE THAT ARE NOT ALREADY BEING
PROVIDED?
A. THERE ARE NOW FIVE APPLICATIONS BEFORE THE FCC WHICH
DESCRIBE IN DETAIL THE PROPOSED SERVICES AND HOW THEY
DIFFER FROM, AND DO NOT COMPETE WITH, INTELSAT
OFFERINGS. THESE APPLICATIONS ARE ON THE PUBLIC RECORD
AND YOU MAY WANT TO LOOK AT THEM. BASICALLY, THEY
PROPOSE SALE OR LEASE OF TRANSPONDERS. FOR PRIVATE LINE
SERVICES AND LARGE SCALE TV TRANSMISSIONS.
Q. WHAT EVIDENCE IS THERE THAT THERE IS A MARKET FOR
NEW SERVICES?
A. YOU WOULD NOT HAVE PROPOSALS FOR COSTLY SYSTEMS
UNLESS THE APPLICANTS WERE CONVINCED THAT A MARKET
EXISTS OR COULD BE DEVELOPED FOR THEIR SERVICES. THE
EXECUTIVE BRANCH CONSIDERED WHETHER U.S. NATIONAL
INTEREST WOULD BE SERVED BY PERMITTING PRIVATE
ENTREPRENEURS TO OFFER NEW INNOVATIVE SERVICES TO
AMERICAN INTERNATIONAL TELECOMMUNICATIONS USERS UNDER
CONDITIONS THAT WOULD PROTECT INTELSAT FROM SIGNIFICANT-
ECONOMIC HARM TO ITS GLOBAL SYSTEM.
Q. WHAT DOES IT MEAN WHEN IT SAYS IN THE GUIDELINES TO
THE FCC THAT THE NEW SATELLITE SYSTEMS WILL. NOT BE
CONNECTED TO THE PUBLIC-SWITCHED MESSAGE NETWORKS?
A. OWNERS OR RENTERS OF THE TRANSPONDERS WOULD NOT BE
ALLOWED TO CONNECT THEIR SYSTEM WITH THE PUBLIC
TELEPHONE SYSTEM IN THE U.S. EXCEPT FOR EMERGENCY
RESTORATION SERVICES.
Q. WHICH COUNTRIES HAVE INDICATED A WILLINGNESS TO JOIN
THE U.S. IN REQUESTING INTELSAT AGREEMENT TO COMPETITIVE
SYSTEMS?
A. THE U.S. GOVERNMENT HAS NOT QUERIED OTHER
GOVERNMENTS ON THEIR WILLINGNESS TO JOIN THE U.S. IN
ARTICLE XIV(D) NON-BINDING CONSULTATIONS FOR
NON-INTELSAT SYSTEMS. IT IS THE RESPONSIBILTY OF THE
APPLICANTS TO OBTAIN APPROVAL OF THEIR SYSTEMS IN OTHER
COUNTRIES.
Q. CAN INTELSAT BLOCK THESE NEW SYSTEMS?
A. INTELSAT CONSULTATIONS UNDER ARTICLE XIV(D) ARE
NON-BINDING: MEMBERS ARE NOT LEGALLY REQUIRED TO ACCEPT
INTELSAT RECOMMENDATIONS ON NEW SYSTEMS. THE U.S. WILL,
OF COURSE, CONSULT IN GOOD FAITH WITH INTELSAT TO ENSURE
TECHNICAL COMPATIBILITY AND TO AVOID SIGNIFICANT
ECONOMIC HARM TO THE GLOBAL SYSTEM OF INTELSAT, THE
CONSULTATION REQUIRED UNDER THE INTELSAT AGREEMENT WILL
BE ON INDIVIDUAL SYSTEMS ON A CASE-BY-CASE BASIS.
Q. WHO DETERMINES WHAT CONSTITUTES "SIGNIFICANT
C O N F I DENT I A
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ECONOMIC HARM?"
A. THE COUNTRIES WHICH REQUEST ARTICLE XIV(D)
CONSULTATIONS PROVIDE ALL RELEVANT INFORMATION TO
INTELSAT REGARDING THE ISSUE OF SIGNIFICANT ECONOMIC

HARM TO THE GLOBAL SYSTEM OF INTELSAT, THE INTELSAT
ASSEMBLY OF PARTIES MAKES RECOMMENDATIONS AFTER

CONSIDERING THE PROPOSAL AND THE ADVICE OF THE INTELSAT

BOARD OF GOVERNORS. IN THE ASSEMBLY, EACH COUNTRY HAS
ONE VOTE.
Q. HASN'T THE INTELSAT SECRETARIAT PROPOSED NEW

CRITERIA ON ECONOMIC HARM THAT WOULD EFFECTIVELY BAR
ALMOST ALL NEW SYSTEMS?
A. SINCE ARTICLE XIV(D) CONSULTATION IS NON-BINDING,
INTELSAT RECOMMENDATIONS CANNOT BAR NEW SYSTEMS.
THE

INTELSAT SECRETARIAT HAS PROPOSED NEW CRITERIA ON
ECONOMIC HARM WHICH ARE UNACCEPTABLE TO THE U.S.
Q. WHAT DOES THE U.S. INTEND TO DO ABOUT THOSE PROPOSED
CRITERIA?
A. THE U.S. WILL OPPOSE THEIR ADOPTION. IT SHOULD BE
NOTED THAT OUR DISAGREEMENTS GO BEYOND THE ECONOMIC HARM

CRITERIA. THE INTELSAT DOCUMENTS, TAKEN TOGETHER, RAISE

FUNDAMENTAL QUESTIONS OF SOVEREIGNTY IN INTERNATIONAL
COMMUNICATIONS.
Q. CAN THEY BE ADOPTED BY INTELSAT OVER THE OBJECTIONS
OF THE UNITED STATES?
A. WE ARE CONFIDENT THAT OTHER MEMBERS SHARE U.S.
CONCERNS OVER THE IMPLICATIONS OF THE PROPOSED CRITERIA

AND THAT THEY WILL NOT BE ADOPTED IN THEIR PRESENT FORM.
Q. IF THEY WERE ADOPTED WHAT WOULD THE U.S. DO ABOUT
ITS MEMBERSHIP IN INTELSAT?
A. THE SUPPORT OF THE U.S. WAS FUNDAMENTAL IN THE

ESTABLISHMENT OF INTELSAT. WE, AS MUCH AS ANYONE,

ACKNOWLEDGE THE CONTRIBUTION THAT INTELSAT HAS MADE TO

WORLD-WIDE COMMUNICATIONS AND THEREFORE TO WORLD PEACE.
WE ARE HOPEFUL THAT THE NEW CRITERIA WILL NOT BE ADOPTED
IN THEIR PRESENT FORM. IF THEY ARE, AND IF THEIR
OPERATION ADVERSELY AFFECTS THE INTERESTS OF THE U.S.,
THEN, OF COURSE, THE U.S. WOULD HAVE TO CONSIDER THE
IMPLICATIONS.
Q. WHAT ARE THE FIVE COMPANIES THAT HAVE APPLIED FOR
PERMISSION TO ESTABLISH SATELLITE SERVICES IN
COMPETITION WITH INTELSAT?
A. ORION SATELLITE CORPORATION (3/83)
- INTERNATIONAL SATELLITE, INCORPORATED (8/83)
- RCA AMERICOM (3/84)
- CYGNUS SATELLITE CORPORATION (3/84)
- PAN AMERICAN SATELLITE CORPORATION (5/84)
Q. WHY HAS IT TAKEN THE PRESIDENT SO LONG TO REACH A
ELISION ON THE NEW SATELLITE SERVICES? DIDN'T THE
DEPARTMENTS OF STATE AND COMMERCE SEND RECOMMENDATIONS
TO THE WHITE HOUSE ON THE QUESTION SEVERAL MONTHS AGO?
A. THIS WAS A DIFFICULT DECISION THAT HAD TO
C O N F I DENT I A
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ACCOMMODATE POLICY OBJECTIVES OF PRESERVING THE
VIABILITY OF INTELSAT AND ENCOURAGING INNOVATIVE NEW
INTERNATIONAL COMMUNICATIONS SERVICES WHICH THE PRIVATE
SECTOR APPEARS WILLING TO PROVIDE. DIFFERENCES OF
OPINION ON THE DETAILS OF SUCH A DECISION ARE NATURAL
AND IT TOOK TIME TO ACHIEVE A UNANIMITY OF VIEWS. IN
COMPARISON WITH OTHER IMPORTANT DECISIONS IN THE
TELECOMMUNICATIONS SECTOR TAKEN BY CONGRESS, THE
REGULATORY AGENCY, AND THE COURTS, IT DID NOT TAKE UNDUE
TIME.
Q. WERE THERE DIFFERENCES BETWEEN THE DEPARTMENT OF
STATE AND THE DEPARTMENT OF COMMERCE ON WHAT `fHE
PRESIDENTIAL DETERMINATION OUGHT TO BE?
A. WE BELIEVE THE PRESIDENTIAL DETERMINATION, AS MADE,
MEETS THE NEEDS OF THE U.S. NATIONAL INTEREST. ANY
DIFFERENCES AMONG AGENCIES RECOMMENDING THE PRESIDENTIAL
ACTION HAVE BEEN RESOLVED.
Q. WHAT HAPPENS TO THE PROPOSALS BEFORE THE FCC NOW
THAT THE PRESIDENT HAS MADE HIS DETERMINATION?
A. THE. FCC MUST REACH ITS OWN DECISION AS TO WHETHER
ANY OR ALL OF THE PROPOSALS MEET FCC CRITERIA FOR
APPROVAL. IF THE COMMISSION DETERMINES ITS CRITERIA OF
PUBLIC INTEREST, CONVENIENCE, AND NECESSITY HAVE BEEN
MET, IT WILL GRANT CONDITIONAL AUTHORIZATION AND REFER
THE MATTER TO THE DEPARTMENT OF STATE. AFTER THE U.S.
HAS PRESENTED THE PROPOSAL TO INTELSAT FOR ARTICLE
XIV(D) CONSULTATION, VARIOUS ORGANS OF INTELSAT WILL
CONSIDER IT AND FORWARD THEIR RECOMMENDATIONS TO THE
INTELSAT ASSEMBLY. THE FCC WOULD GIVE FINAL
AUTHORIZATION ONLY AFTER THE INTELSAT CONSULTATION
PROCESS HAS BEEN CONCLUDED.
Q. IT IS WELL KNOWN THAT A NUMBER OF COUNTRIES HAVE
COMPLAINED TO THE U.S. ABOUT THIS NEW POLICY. WHICH
COUNTRIES HAVE DONE SO?
A. A NUMBER OF COUNTRIES HAVE SENT DIPLOMATIC NOTES AND
LETTERS EXPRESSING CONCERN THAT THE U.S. WOULD PERMIT
NON-INTELSAT SYSTEMS. WE HOPE AND EXPECT THAT OTHER
INTELSAT MEMBERS WILL CONSIDER CAREFULLY THE U.S.
GOVERNMENT POSITION AND THE RATIONALE UNDERLYING IT NOW
THAT THE DECISION HAS BEEN MADE.
Q. WHAT WERE THEIR OBJECTIONS?
A. THEY EXPRESSED CONCERN ABOUT THE EFFECTS OF
COMPETITION ON THE VIABILITY OF THE GLOBAL SYSTEM OF
INTELSAT,
Q. ARE THERE ANY OTHER COMMUNICATION SATELLITE SYSTEMS
COMPETING WITH INTELSAT?
A. THERE ARE A NUMBER OF REGIONAL SYSTEMS THAT~HAVE
BEEN IMPLEMENTED, OR PLANNED, INCLUDING EUTELSAT,
ARABSAT, AND THE INDONESIAN PALAPA SYSTEM. INTERSPUTNIK
IS A RUSSIAN SYSTEM DESIGNED TO COMPETE WITH INTELSAT
GLOBALLY. SOME DOMESTIC SYSTEMS, INCLUDING OUR OWN,
PROVIDE A LIMITED SERVICE TO NEIGHBORING COUNTRIES.
C O N F I DENT I A
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INMARSAT PROVIDES A GLOBAL MARITIME SERVICE, AND HAS
ALSO PROVIDED SOME LIMITED MOBILE TERRESTRIAL SERVICES.
Q. ARE THERE ANY INTERNATIONAL SYSTEMS PLANNED BY OTHER
COUNTRIES THAT YOU ARE AWARE OF?
A. THERE ARE EXISTING NATIONAL SYSTEMS THAT COULD BE
EASILY EXPANDED TO PROVIDE INTERNATIONAL SERVICES,
INCLUDING TRANS-ATLANTIC .SERVICES. HOWEVER, WE HAVE NO
FIRM KNOWLEDGE AT THIS TIME THAT INTERNATIONAL SERVICES
ARE BEING PLANNED.
Q. ISN'T THE U.S. SIMPLY TRYING TO IMPOSE ITS OWN
IDEOLOGICAL PREFERENCE FOR THE PRIVATE SECTOR ON OTHER
GOVERNMENTS BY EXTENDING ITS DEREGULATORY STANCE TO THE
INTERNATIONAL ARENA?
A. N0. THE U.S., FOR THE FIRST TIME, WAS REQUIRED TO
CONSIDER DOMESTIC PRIVATE SECTOR PROPOSALS TO PROVIDE
INTERNATIONAL COMMUNICATION SATELLITE SERVICES. IT WAS
DETERMINED THAT IT WOULD BE IN OUR NATIONAL INTEREST TO
HAVE SUCH SYSTEMS UNDER CERTAIN CONDITIONS. THIS WAS A
DOMESTIC DECISION AND PLACES NO OBLIGATIONS ON FOREIGN
GOVERNMENTS TO AGREE TO PERMIT THESE SYSTEMS TO SERVICE
THEIR COUNTRIES. THE TECHNOLOGICAL ENVIRONMENT THAT LED
TO THE U.S. DECISION DOES APPLY TO OTHER COUNTRIES,
HOWEVER, AND WE BELIEVE THIS MAY LEAD OTHER COUNTRIES TO
THE SAME CONCLUSIONS WE REACHED.
Q. ISN'T THE U.S. DECISION TO AUTHORIZE SEPARATE -
SATELLITE SYSTEMS LIKELY TO LEAD TO CHAOS IN THE
INTERNATIONAL TELECOMMUNICATIONS MARKET?
A. N0. INTELSAT'S BASE IS PRESERVED. IN OUR VIEW, THE
DECISION COULD LEAD TO COMPETITION IN PROVIDING NEW
SERVICES WHICH OUR EXPERIENCE TELLS US WILL BENEFIT
CONSUMERS AND HASTEN TECHNOLOGICAL ADVANCEMENT.
Q. WHAT IMPACT WILL THE TWO PRIVATE PROPOSALS TO
INSTALL TRANS-ATLANTIC FIBER OPTIC CABLES HAVE ON
INTELSAT AND ON THE PRIVATE SATELLITE SYSTEMS?
A. FIBER OPTIC CABLES WILL BE STRONG COMPETITORS TO
SATELLITES, BUT JUST AS THE SATELLITES DID NOT MAKE LAND
AND CABLE SYSTEMS OBSOLETE, WE DO NOT THINK FIBER OPTICS
WILL MEAN THE END OF COMMUNICATION SATELLITES. WE
EXPECT THE MARKET TO GROW AS TECHNOLOGY INCREASES
CAPACITY AND PERMITS NEW SERVICES. SATELLITES WILL
RETAIN CERTAIN ADVANTAGES, AND, AS THE COST AND SIZE OF
GROUND STATIONS DECLINE, SATELLITES WILL DIRECTLY
SERVICE MANY NEW CUSTOMERS.
Q. WILL THE FCC APPROVE THOSE SYSTEMS?
A. ONLY IF THEY MEET FCC CRITERIA.
SHULTZ
C O N F I DENT I A
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UNCLASSIFIED
TAB B
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MSGNO 23 (FBXX) *11/28/84* *12:17:04.1.0*
ZCZC 17:14:512 (FB)
UNCLASSIFIED
RTTUZYUW RUHJFBA8237 3331624 MTMS-UUAA--RUEBHAA.
R 2808512 NOV 84
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SUBJ
JAPAN SEEKS FLEXIBILITY IN INTELSAT AGREEMENT
OW280851
TOKYO KYODO IN ENGLISH 0743 GMT 28 NOV 84
((TEXT)) TOKYO, NOV. 28 KYODO -- JAPAN TOLD THE UNITED STATES
WEDNESDAY IT DOES NOT WANT TO BE BOUND " 100 PERCENT " BY THE
INTELSAT AGREEMENT FOR SATELLITE OPERATIONS.
A JAPANESE DELEGATION TO A TWO-DAY MEETING ON INTERNATIONAL
COMMUNICATION AND INFORMATION WITH THE UNITED ~STATES~TUESDAY
AND WEDNESDAY VOICED CONCERN OVER THE PRESENT AGREEMENT OF
THE INTERNATIONAL TELECOMMUNICATIONS SATELLITE ORGANIZATION
THE`ISSUE CAME UP INwCONNECTION WITH A U.S. E_XPLA_N_ATION
OF SIX APPLICATIONS IN THE UNITED STATES FOR THE LAUNCHING~F
SATELLITE BY BYPASSING THE INTELSAT ACCORD, A FOREIGN MINISTRY
OFFICIAL SAID. _-__. ___--__ ._._ __._~
THE DEBATE BETWEEN THE JAPANESE A_ND_AN AMERICAN GROUP
HEADED BY ;DIANA DOUGANTHEN SHIFTED TO THE DEGREE~OF THE INTELSAT
AG__REEMENT'S FLEXIBILIT__Y, HE SAID AFTER THE MEETING AT THE ~~~
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MINISTRY.
" IT IS A HOT ISSUE, " A MINISTRY SOURCE SAID. " WE
ADDRESSED THE ISSUE WITH FEAR AND EXPECTATION " OF A NEW
INTERNATIONAL AGREEMENT ON SATELLITES.
"JAPAN DOES NOT WANT TO BE BOUND 100 PERCENT BY THE
INTELSAT AGREEMENT, " THE SOURCE SAID.
THE SOURCE SAID THE U.S. DELEGATION LIMITED ITS EXPLANATION
TO INTERPRETATION OF THE INTELSAT AGREEMENT WITHOUT STATING
FUTURE POLICY.
AMBASSADOR DOUGAN, COORDINATOR FOR INTERNATIONAL COMMUNICATION
AND INFORMATION POLICY, MET WITH OFFICIALS OF THE MINISTRIES OF
FOREIGN AFFAIRS, INTERNATIONAL TRADE AND INDtTSTRY, POSTS AND
TELECOMMUNICATIONS AND THE AGENCY FOR CULTURAL AFFAIRS, FOR
"AN INFORMAL EXCHANGE " OF OPINIONS.
THE ENVOY SAID THE UNITED STATES HAS ALREADY HELD SIMILAR
TALKS WITH BRITAIN, WEST GERMANY, THE NETHERLANDS, CANADA
AND MEXICO. _.
THE FOREIGN MINISTRY OFFICIAL SAID WASHINGTON APPEARS
MAINLY CONCERNED ABOUT MOVES BY DEVELOPING COUNTRIES TO
POLITICIZE ISSUES FACING THE INTERNATIONAL TELECOMMUNICATION
UNION (ITU), THE UNITED NATIONS EDUCATIONAL, SCIENTIFIC AND
CULTURAL ORGANIZATION (UNESCO) AND THE ORGANIZATION FOR ECONOMIC
COOPERATION AND DEVELOPMENT (OECD).
THE OFFICIAL SAID TOKYO HAS NO OBJECTION TO A U.S.
PROPOSAL-TO ESTABLISH A COMMON STAND ON "POLITICAL DEMANDS "
OF DEVELOPING COUNTRIES CONCERNING ITU.
THE DOUGAN DELEGATION HINTED THAT THE UNITED STATES PLANS
TO CONTINUE ITS INVOLVEMENT IN UNESCO's INTERNATIONAL. PROGRAM
FOR DEVELOPMENT OF COMMUNICATIONS (IPDC) DESPITE ITS PLANNED
WITHDRAWAL FROM UNESCO, ACCORDING TO THE JAPANESE OFFICIAL.
THE AMERICAN DELEGATES ALSO EXPRESSED SUPPORT FOR JAPAN'S
PROJECT TO STUDY RELATIONSHIP BETWEEN THE WORLD ECONOMY AND
INFORMATIZATION ((AS RECEIVED)), THE OFFICIAL ADDED.
THE TWO COUNTRIES ALSO DISCUSSED THE ITU TREATY AND WAYS
TO REVISE IT AND WHETHER IT SHOULD BE CHANGED TO A CHARTER.
(ENDALL) 280743 TSAO KY 28/16292 NOV
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