THANK YOU FOR THE OPPORTUNITY TO REVIEW AND COMMENT ON H.R. 4836

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP86B00338R000200280017-4
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 11
• Document Creation Date: December 21, 2016
• Document Release Date: September 11, 2008
• Sequence Number: 17
• Content Type: LETTER

THE SECRETARY OF DEFCNSL
Approved For Release 2008/09/11: CIA-RDP86B00338R000200280017-4
WASHIN, )N. THE DISTRICT OF COLUMBIA
Honorable James H. Scheuer
Chairman, Subcommittee on Natural
Resources, Agriculture Research
and Environment
Committee on Science and Technology
House of Representatives
Washington, D. C. 20515
Dear Mr. Chairman:
Thank you for the opportunity to review and comment on
H.R. 4836, "Land Remote-Sensing Commercialization Act of
1984."
H.R. 4836 will achieve the purposes it is intended to
satisfy, and with minor exceptions I concur with this legisla-
tion as it is written. Suggested changes are enclosed.
Again, I appreciate the opportunity to comment on this
important and pertinent matter.
Sincerely,
Enclosure
Approved For Release 2008/09/11: CIA-RDP86B00338R000200280017-4
 Approved For Release 2008/09/11: CIA-RDP86B00338R000200280017-4
Comments on H.R. 4836
Sec 606.
1. Page 30, Sec 604.
Para (a), line 6: Add the following sentence: Reimbursements
for such assistance under the provisions of this Act shall be
credited to the appropriations against which charges have been
made for providing such assistance.
Rationale: The intention is to ensure that the agency which
provides the assistance is credited with the amount of the
reimbursement for such assistance.
Para (a), line 4: Add the following sentence: The Secretary
,
nationalnecessary
to meetconditions
securityo
of Defense shall deeoperator n'those
impose on any system
concerns of the United States.
Para (b)(1), line 10: Add the following sentence: The
Secretary of State shall determine those conditions necessary
to impose on any system operator to meet international
obligations of the United States.
Para (c)(1), line 15: Delete entire paragraph.
Rationale: . To explicitly state that the Secretal of Defense
and Secretary of State are responsible
conditions concerning national security and international
obligations, respectively.
Pages 31 and 32, Sec 606, para (c) (2)
Page 31, line 22: Between the words "Secretary" and
"determine" insert "in consultation SithethesSecretary"of
as
Defense or the Secretary of State,
Page 31, lines 23 and 24: Replace the phrase "...investments
will be lost to..." with "that past development costs,
including the cost of capital, will not be recovered by."
Page-32, lines 1 and 2: After the word "such" change the
sentence to read "costs, excluding anticipated profits."
Rationale: To eliminate any ambiguity concerning the use of
the word "investment" and to eliminate any suggestion that
reimbursement could include an amount for anticipated profits
since anticipated market revenues are too speculative for
reasonable determination.
Approved For Release 2008/09/11: CIA-RDP86B00338R000200280017-4
 Approved For Release 2008/09/11 : CIA-RDP86B00338R000200280017-4
Washington. D. C. 20520
Dear Mr. Chairman:
This letter is in response to your request for Department
of State comments on HR 4836 "To establish a system to promote
the use of land remote-sensing satellite data, and for other
purposes." The Bill would guide the United States Government
in promoting full, prompt, and proper involvement of the
private sector in civil land remote-sensing from space.-
The Department of State recommends that this Bill be
enacted only if the following modifications to Section 606 are
made:
-- -- Section 606 (A) add the following sentence at the
close: "The Secretary of Defense shall determine those
conditions necessary to impose on any system operator to meet
the national security concerns of the United States;"
-- -- Section 606 (B) (1) add the following sentence at
the close: "The Secretary of State shall determine those
conditions necessary to impose on any system operator to meet
the international obligations and foreign policy concerns of
the United States;"
-- -- Section 606 (C) (1) delete;
-- -- Section 606 (C) (2) change to read as follows:
"Should the Secretary determine during the lifetime of any
agreement made between the Government and private operator(s)
arising from this act that a modification of the agreement is
required to meet conditions newly imposed by national security
and/or foreign policy the Secretary shall obtain the
The Honorable
James Scheuer, Chairman,
Subcommittee on Natural Resources,
Agricultural Research and Environment,
House of Representatives.
Approved For Release 2008/09/11: CIA-RDP86B00338R000200280017-4
 Approved For Release 2008/09/11: CIA-RDP86B00338R000200280017-4
concurrence of the Secretaries of Defense and/or State in
determining whether, and to what extent, a reimbursement to a
private operator for losses incurred is warranted."
We believe the above changes are required for the
following reasons. The addition of language to Sections 606
(A) and (B) (1) setting forth the roles of the Secretaries of
Defense and State respectively will clarify their authority and
positions within the decision-making process. Section 606 (C)
(1) should be deleted because, if enacted, it would withdraw
from the Secretaries of State and Defense their fundamental
authority to make basic policy regarding national security and
international relations. Sections 606 (A) and (B) (1) and -(2),
with the additions suggested above, clearly and fully ddt`fortftr
the authorities of the Secretaries of Defense and State in the
promotion of land remote sensing satellite and data use, as
well as their proper and appropriate relationship in this
.matter to the Secretary of Commerce. Should it be determined
that Section 606 (C) (1) must be retained, we would accept a
the Secretary of Defense and the Secretary of
State, is authorited to determine reasonable and appropriate
action on any system operator as described in Section 401 when
national security concerns or international obligations are not
met'.
Section 606 (C) (2) must be revised because, if enacted as
is, it would required that if the Secretary of Commerce so
determined, the Departments of Defense and State would be
compelled to reimburse a private operator for any burdens
imposed by the Government in fulfillment of its
constitutionally-mandated responsibilities to enure the
national security and to make foreign policy. Section 606 (C)
(2), as written, also suggests that in an indirect fashion, a
private entity operating the nation's land remote-sensing
system could have a kind of veto over both the national
security and foreign policy of this country. It also seems to
grant the Secretary of Commerce authorities and
responsibilities historically exercised by the Departments of
State and Defense.
The Office of Management and Budget advises that from the
standpoint of the Administration's program there is no
objection to the submission of this report.
Sincerely,
W. Tapley Bennett, Jr.
Assistant Secretary
Legislative and Intergovernmental Affairs
Approved For Release 2008/09/11: CIA-RDP86B00338R000200280017-4
 Approved For Release 2008/09/11: CIA-RDP86B00338R000200280017-4
-Drafted: OES/SAT: LI,Rose
Cleared: OES: BYeagep~
L/OES: JYanagy
OE S/SAT : OEskirj;p
Approved : OES - Charles Horner,ting
Approved For Release 2008/09/11: CIA-RDP86B00338R000200280017-4
 N Approved For Release 2008/09/11: CIA-RDP86B00338R000200280017-4
1 It
DRAFT REPORT ON H.R. 4836
National Aeronautics and
Space Administration
Washington, D.C.
20546
Reply to Attn of: C:l M: tsc: C12638f
Honorable James H. Scheuer
Chairman
Subcommittee on Natural Resources,
Agriculture Research and Environment
Committee on Science and Technology
House of Representatives
Washington, DC 20515
Dear Mr. Chairman:
This is in further reply to your request for the caments of the National
Aeronautics and Space Administration on the bill H.R. 4836, the "Land
Remote-Sensing Camercialization Act of 1984."
H.R. 4836 would set forth the framework whereby a contractor would be
chosen by the Secretary of Commerce to sell data fiat the existing Land
Remote-Sensing Satellite System and provide the Secretary of Commerce with
the authority to license operators of civilian land remote sensing
satellites.
NASA supports the general purpose of H.R. 4836; however, we have concerns
with several of the bill's key provisions. Accordingly, we do not support
the enactment of the bill as presently drafted. Our specific concerns are
set forth below.
In general, we note that although the bill specifies "land" remote sensing
in the title and purpose sections, this focus is confused by including
Approved For Release 2008/09/11: CIA-RDP86B00338R000200280017-4
 Approved For Release 2008/09/11: CIA-RDP86B00338R000200280017-4
"ocean" data throughout the bill. In title V, "Research and Development",
the confusion is compounded by including atmospheric research and
applications in the subject matter. There is no generally recognized ILLEGIB
operational capability in ocean remote sensing; including oceans in this
bill specifies the conditions for commercialization of ocean remote
sensing long before the parameters of any such system have been worked
out, thus needlessly inhibiting innovation in the creation of such a
national capability. In our opinion, the subject matter of H.R. 4836
should be limited to dealing only with "land" remote sensing.
Another major difficulty with the bill is that it is fundamentally at odds
with certain of the commercialization actions currently underway in the
Department of Caimeroe. The Request for Proposals (RFP) issued by the
Department of Commerce on January 3, 1984, specifically rules out
proposals for operation of the present Landsat system divorced from future
operation of a commercially supplied system, while the bill directs the
Secretary of Commerce to do exactly what the RFP disallows. Passage of
the bill in this form could force the whole RFP process to be reopened,
with consequent major delay in reaching agreement on commercialization
between the Department of Commerce and a private sector entity. A
frequently repeated goal of the bill is to ensure data continuity,
something that is already marginal in technical feasibility, if it is
possible at all. The extra delay occasioned by reopening the RFP process
could make continuity totally impossible.
We have the following comments on specific sections of the bill.
Approved For Release 2008/09/11: CIA-RDP86B00338R000200280017-4
 Approved For Release 2008/09/11: CIA-RDP86B00338R000200280017-4
Section 302(b)(7) provides that the Secretary of Ccmrerce may provide that
a contractor utilize, on a space available basis, civilian government
satellites as platforms for a civilian remote sensing satellite system
only if the contractor reimburses the government for all related costs
incurred including "a reasonable and proportionate share of fixed,
spacecraft, data transmission, and launch costs." In essence, this
provision would authorize the Secretary of Cayce to interfere in joint
endeavor agreements between a contractor and NASA and would in effect
override NASA's authority under 42 U.S.C. 2473(c)(6) which permits NASA to
enter into cooperative arrangements with private entities without
reimbursement.
Section 403(a) authorizes the Secretary of Camerce to license consortia
of private sector parties and government agencies to operate civil remote
sensing space systems. The effect of this paragraph again would be to
authorize the Secretary of Co mnerce to interfere in the legitimate
activities of government agencies to enter into cooperative or other
arrangements with private sector parties. This authority of the Secretary
of Commerce is further strengthened through section 406(b) wherein Federal
agencies are "authorized and encouraged to conduct joint ventures in
remote sensing space systems by forming consortia with private firms
(which consortia will not compete with other United States private sector
activities) in accordance with the provisions of section 402 and 403 of
this Act." Thus, Federal agencies could not conduct a joint venture in a
ILLEGIB
Approved For Release 2008/09/11: CIA-RDP86B00338R000200280017-4
 Approved For Release 2008/09/11: CIA-RDP86B00338R000200280017-4 4
non-operational remote sensing system with a private firm unless the
Secretary of Commerce licensed the activity. Such an intrusion in the
activities of an agency such as NASA, whose main purpose is research and
development, would be unacceptable, in our opinion.
Section 502 is redundant as to its direction to NASA to conduct programs
in remote sensing research and development since that is already a part of
NASA's mandate. The section's instructions to the National Oceanic and
Atmospheric Administration (NOAH) to conduct remote sensing research and
development and experimental remote sensing programs is an intrusion into
NASA's authority which can only result in a duplication and/or overlapping
of activities. Subparagraph (d) joins the programs of NASA and NOAA in
research and development which we believe is unacceptable. NASA has many
years of experience in research and development of remote sensing
programs. NASA's experience is in the operation of satellites that have
been basically developed by NASA. We do not understand why the bill would
attempt to establish another separate program of research and development
in NOAA and insist that NASA tailor its program to NASA's program. Such
duplicative efforts could result in an unfortunate waste of the taxpayers
Section 601 - NASA endorses the requirement that the system operator of a
Landsat and/or follow-on Landsat land remote sensing system make data
available to all users on a nondiscriminatory basis. This approach would
continue the practices initiated and pursued in NASA's experimental
Landsat program, as well as other NASA experimental remote sensing
missions. This approach is also consistent with the announced policy of
the French government to make SPOT (the French earth observation satellite
system) data available on a nondiscriminatory basis.. Nondiscriminatory
data access has been instrumental in preserving U.S. freedom of action in
Approved For Release 2008/09/11: CIA-RDP86B00338R000200280017-4
ILLEGIB
 Approved For Release 2008/09/11: CIA-RDP86B00338R000200280017-4
the conduct of remote . sing from space and in foster. , NASA's ability
to engage in global research and to enjoy uncontested access to data of
all areas of the world. ?
Although the bill contemplates sale of remote sensing data on a
nondiscriminatory basis, it does not appear to prohibit a satellite
operator from obtaining a license for a civil remote sensing satellite and
retaining the data for its use only, rather than selling the data. While
this does not cause a problem for NASA, we are not certain that this is
what the bill intends.
Section 602 - The archive of remotely sensed data provided in this section
should be required to be useful for research and development purposes. To
that end, we believe it is in the public interest that there be a
mechanism for interested parties to agree on the scope of the collection
maintained in the archive. Further, we believe there should be a
requirement that the archivist ensure a continuing capability to access
old data in the collection, whether or not such old data is in a format in
regular, current use.
Section 604(a), in essence would override NASA's authority in 42 U.S.C.
2473(c)(6) to provide services on a cooperative basis to a system operator
without reimbursement for launch services. NASA presently has the
authority to provide launch services on a reimbursable or nonreimbursable
basis depending on which NASA considers to be in the best interest of the
government. NASA has not abused this authority. Rather it is through the
use of this authority in a judicious manner that NASA has been able to
further the technical ca petence and ability of the United States in the
area of space research and development.
ILLEGIB
Approved For Release 2008/09/11: CIA-RDP86B00338R000200280017-4
 Approved For Release 2008/09/11: CIA-RDP86B00338R000200280017-4
Section 606(b)(2) - We assume that the authority given the secretary of
State to provide land remote sensing data, technology and training to
developing nations is in addition to NASA's authority presently to provide
such aid.
We recognize that section 607 is intended to ensure that existing
provisions of law, such as NASA authorities, are not to be replaced by the
requirements of this Act. However, in view of sane of the requirements of
this Act noted above, it is not possible to give effect to those
requirements as additions to rather than in place of authorities that NASA
has at this time.
Due to the concerns noted above, NASA does not agree with the bill as it
is presently written. The Office of Management and Budget advises that
there is no objection to the submission of this report to the Congress.
Sincerely,
Approved For Release 2008/09/11: CIA-RDP86B00338R000200280017-4