DECISION MEMORANDUM: TRANSFER OF CIVIL SPACE REMOTE SENSING SYSTEMS TO THE PRIVATE SECTOR

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP85M00158R000800110032-9
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 6
• Document Creation Date: December 22, 2016
• Document Release Date: September 2, 2009
• Sequence Number: 32
• Publication Date: February 4, 1983
• Content Type: MEMO

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THE WHITE HOUSE c\
DATE: 2-4-83
CABINET AFFAIRS STAFFING MEMO ANDUM
NUMBER: 0 7 7 7 7 3 CA
DUEBY: cog 2-8-83
SUBJECT: Decision Memorandum: Transfer of Civil Space R_mote Sensing
Systams to i-hp Pri vaf-P Sar-tnr
ACTION
FYI
ACTION FYI
ALL CABINET MEMBERS
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Baker ^ ^
Vice President
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Deaver ^ ^
State
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Clark ^ ^
Treasury
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Darman (For WH Staf ng) [B' ^
Defense
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Harper ^ ^
Attorney General
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Interior
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Jenkins ^ ^
Agriculture
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ommer
Labor
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HHS
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HUD
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Transportation
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Energy
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Education
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Counsellor
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OMB
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USTR
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CCEA/Porter ^ ^
CCFA/Boggs ^ ^
CCHR/Carleson ^ ^
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OSTP
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CCLP/Uhlmann ^ ^
NASA
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CCMA/Bledsoe ^ ^
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CCNRE/B
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REMARKS: Please review and provide any comments by COB 2/8/83
RETURN TO: ^ Craig L. Fuller
Assistant to the President
for Cabinet Affairs
456-2823
t~/Becky Norton Dunlop
Director, Office of
Cabinet Affairs
456-2800
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THE WHITE HOUSE
January 25, 1983
FROM: THE CABINET COUNCIL ON COMMERCE AND TRADE
SUBJECT: Transfer of the Civil Space Remote Sensing Systems
to the Private Sector
Should the Administration transfer to the private sector the
civil operational land and weather satellite systems?
Background
The current U.S. program in operational civil space remote
sensing consists of a single land satellite and four operational
weather satellites in orbit. A number of private entities have
expressed interest in assuming responsibility for portions of the
civil space remote sensing system. Some firms are interested in
the land satellite systems; another is interested in both the
land and weather satellite systems.
Foreign governments have recognized the value of this technology.
Civil space remote sensing systems are being advanced by France,
Japan, the European Space Agency, India, Canada, the Federal
Republic of Germany, and the Soviet Union. To date., only France
has actually invested in a land remote sensing system (SPOT);
others have invested only in weather systems.
There is agreement among all parties that a self-supporting,
successful private venture or ventures can evolve in land, and
weather. The Government provides a steady market for weather
data. The value of land satellite data to the U.S. Government
has not been rigorously established. Federal user agencies have
been happy to use data now provided at subsidized costs, but, if
required to pay the full cost of land satellite data, they
indicate an intention to consider other means to meet their
needs.
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Other than Federal users, the land satellite data market has not
grown as rapidly as it could have because of the inherent
limitations on the Government in developing domestic and
international markets. However, the market for land remote
sensing data is growing and the long-term outlook appears
promising, provided an aggressive private sector is given the
opportunity to develop and expand the market base for this
product.
The U.S. Government is currently spending more than $14 billion
per year on the civil and national defense space programs, of
which nominally $150-$200 million is devoted to civil space
remote sensing. The Administration's current budget includes
funding for the long term operation and replacement of the civil
weather satellite. For land remote sensing, the current policy
is to continue with the two land satellites which were purchased
prior to this Administration and are expected to last until 1988.
Thus, the budget has only operating costs and does not include
additional Federal funding to procure additional land satellites.
The budget assumes that any future land remote sensing systems
would have to be owned/operated by a private entity.
The United States has created this high-technology field, but
it could lose its leadership position in land remote sensing
unless action is taken to preserve it. Transfer to a private
entity without any government assurances would be preferable and
will be actively sought. However, implementing a commercial
satellite system may involve some form of government-assured
market for a brief time, e.g., a guaranteed minimum purchase
agreement, until the private entity is firmly established. The
level of need for such support, if any, will be considered
carefully in the evaluation of proposals actually submitted.
Federal interests will require a continuing oversight to any
private entity involved in civil space remote sensing, as
outlined in the Outer Space Treaty. Such oversight, carried out
with interagency coordination and contractual provisions between
the Government and the data supplier, will assure that national
defense, intelligence, and foreign relations concerns are
satisfied.
The Cabinet Council on Commerce and Trade has extensively
reviewed the issue and has identified two principal options for
your consideration:
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Option 1: Transfer to the private sector, by competitive
means,the current operational civil weather and land satellites.
Separate bids would be accepted for the land or weather
satellites, or a firm could elect to submit a single bid for all.
The Department of Commerce will oversee the transfer of the civil
operational weather and land, satellites to the U.S. private
sector as soon as possible. The transfer will be guided by the
following principles:
(1) National security and foreign policy concerns would be
appropriately addressed in preparing legislation,
requesting proposals, and/or overseeing the private
entity or entities.
(2) The selection of the private entity would occur under
competitive conditions. Private firms would have the
option of bidding separately for the land or weather
satellite system or preparing a joint submission for
both. The financial and program justifications would
be presented in such a manner that separate submissions
can be appropriately compared to joint submissions.
(3) The Department of Commerce would establish an
inter-agency coordinating body as soon as possible.
Advantages
o Stimulates technology development by the private sector
in response to new market demands and expands the role of
private industry.
o Demonstrates commitment to the private sector role in
space.
o Reduces the size and scope of Government activities.
Disadvantage
o May require increasing Federal funding to prior
commitment levels until the private entity is firmly
established.
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Option 2: Continue the current budget policy of bringing the
operational land remote sensing systems in the Government to a
close nominally by 1988 (or sooner if private industry is willing
to take it over) and retain the civil weather satellites under
Government control.
Advantage
o Option is within current budget.
Disadvantages
o Only minimally reduces the size and scope of Government.
o Would result in the relinquishment of land remote sensing
to foreign competitors by U.S..
Option 1
Transfer to the private sector, via competitive
means the current operational civil weather and
land satellites. Separate bids would be
permitted for the land or weather satellites,
or a firm could elect to submit a single bid
for all.
Option 1 unanimously supported by the Cabinet
Council on Commerce and Trade
Option 2 Continue the current budget policy of bringing
the operational land remote sensing systems in
the Government to a close nominally by 1988 or
sooner if private industry is willing to take
it over, and retain the civil weather
satellites under Government control.
Bald rige
Chairman Pro Temp o re
Cabinet Council on Commerce and Trade
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