LETTER TO GILBERT D. RYE FROM NORMAN TERRELL
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Document Number (FOIA) /ESDN (CREST):
CIA-RDP92B00181R001701610004-1
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K
Document Page Count:
37
Document Creation Date:
December 23, 2016
Document Release Date:
February 27, 2012
Sequence Number:
4
Case Number:
Publication Date:
September 15, 1983
Content Type:
LETTER
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..a sem umwa s
National Aeronautics and
Space Administration
Washington, D.C.
20546
ecly to Attn of: F
Colonel Gilbert D. Rye
Director for Space Programs
National Security Council
Old Executive Office Building
Room 300
Washington,. D.C. 20506
Dear Colonel Rye:
September 15,' 1983
As Co-Chairmen of the SIG (Space) Working Group on the
Commercialization of ELVs, we are pleased to transmit the
enclosed report of the Working Group.
In accordance with the directives in NSDD-94, the
Working Group addressed the following issues in its report:
(a) Streamlining procedures used in the interim
to implement existing licensing authority;
(b) Developing and coordinating the requirements
and process for the licensing, supervision,
and./or regulations applicable to routine commer-
cial launch operations from commercial ranges; and
(c) Recommending the appropriate Lead Agency within
?
the U.S. Government to be responsible for
commercial launch activities.
?????..
The Working Group was unable to reach a consensus on
the Lead Agency's responsibilities regarding obtaining
information from other agencies and recommending changes
to U.S. policies as-they relate to ELV commercialization.
These differences are presented and discussed in the report.
Enclosure
Sincerely,
f_ry-??????""N?
Norman Terrell
Co-Chairman
Charles Horner
Co-Chairman
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REPORT
ON
US GOVERNMENT
ORGANIZATION AND PROCESS
FOR HANDLING
US COMMERCIAL
SPACE LAUNCH OPERATIONS
15
SEPTEMBER 1983
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I.
Introduction
TABLE OF CONTENTS
II. - U.S. Government Supervision and Regulation of
COmmercial Launch Activities
- Recartnendations
TV. - Streamlining InterimProcures for Obtaining
GovernamtPwithorization for Privately Operated
ELV's
Appendix A -
Appendix B -
Appendix C -
_??????..
SIG (Spar* Working Group Composition
Current U.S. Government Approval Process for
Commercial Launch Operations
Department of Cturnerce and Department of
Transportation Expanded Rationales Regarding
their Suitability as Lead Agency
2.
Page
1
2
4
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ELV COMMERCIALIZATION
EXECUTIVE SUMMARY
US Government supervision and regulation of commercial launch
operations fall into two basic categories: (1) mission approval and
(2) launch operations. For mission approval, the existing ITAR and
FCC approval process, enhanced by suggestions in this report, should
continue to be utilized. No process has yet been established for
launch operations from a commercial range. The Lead Agency should
chair an interagency group of affected Federal agencies and those
that possess appropriate technical and operational expertise in space
launches, to develop the minimum necessary procedures ot regulations
for licensing and supervising launch operations. Whereas DOD or NASA
are responsible for controlling operations on the National Ranges,
DOT/FAA should be responsible for administering commercial launch
range safety regulations, once developed. Until these new procedures
are established, the process now being utilized is adequate for
controlling the current low level of commercial launch operation -
activity. For national ranges, no additional requirements or
criteria beyond existing DOD and NASA requirements or range standards
should be imposed.
Some of the Working Group members, including the candidates for
the Lead Agency role, prefer that an Executive Order be issued to
designate the Lead Agency and its responsibilities, rather than an
NSDD, because some of the agencies which will be involved in the
approval process are not members of the NSC and do not normally
operate with NSDD's. In addition, Executive Orders would get wider
circulation within the private sector.
The Lead Agency's primary responsibility should be to oversee
and facilitate the implementation of the President's policy on com-
mercialization of ELVs. The Working Group agrees that the Lead
Agency should perform the following functions:
-- act as a focal point within the USG for private sector
contacts;
handle, coordinate and expedite requests for
commercial ELV launches;
ensure consistent application of ELV licensing
requirements for the private sector;
serve as a single collection point for documentation;
establish reasonable processing deadlines;
resolve any problems with senior management of
relevant agencies;
refer appropriate matters to the SIG (Space) for review;
promote and encourage commercial space launches in the
same manner that other private US commercial
enterprises are promoted by US agencies;
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streamline procedures for approval of licenses;
ensure fair and equitable treatment for all private
sector applicants; and
-- perform a strategic planning function regarding long-
term effects of Government activities related to ELV
commercialization.
The Working Group disagrees on
-- (1) the role the Lead Agency should play in reviewing
and suggesting changes in US Government policy, and
-- (2) whether it should be able to obtain internal agency
information on matters which it believes could
affect the commercialization of ELVs.
The majority (State, Commerce, DOD, DOT, DCI, ACDA, JCS, FAA,
OSTP) recommends that the Lead Agency should have the ability to
obtain information from involved agencies on agency actions which
may affect the commercialization of ELVs. They believe that all
involved agencies should provide the Lead Agency this information
to the fullest extent possible. The Lead Agency should have the
responsibility to identify Government policies which might have an
adverse impact on ELV commercialization.
NASA recommends that the Lead Agency should be responsible
for explaining to the private sector decisions which have been
taken by US Government agencies relating to ELV commercialization
?which may affect ELV commercialization. For their part, all
involved agencies should provide the Lead Agency with relevant,
publicly available information for this purpose.
Two agencies emerged from the Working Group review as
candidates to be Lead Agency -- the Department of Commerce and
the Department of Transportation. The Working Group believes
that either agency would be suitable as Lead Agency.
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I. INTRODUCTION
On May 16, 1983 the President issued a policy ?on
Commercialization of Expendable Launch Vehicles (NSDD-94)
that carries forward from the President's National Space
Policy (NSDD-42) which "encourages US private sector investment
and involvement in civil space activities." NSDD-94 specifically
encourages the US private sector development of commercial launch
operations and further states that the US Government fully endorses
and will facilitate the commercialization of US Expendable Launch
Vehicles (ELVa). It also established an interim SIG (Space)
Working Group on Commercial Launch Operations to prepare a
report that would: (a) streamline the procedures used in the
interim to implement existing licensing authority; (b) develop
and coordinate the requirements and processes for the licensing,
supervision, and/or regulations applicable to routine commercial
launch operations from commercial ranges; and (c) recommend
the appropriate lead agency within the U.S. Government to be
responsible for commercial launch activities. Working Group
members are listed in Appendix A.
The Working Group concluded that there should be a
two-stage process for the approval of both missions and launch
operations for a commercial launch activity (defined for purposes
of this report as "private sector launches from either a national
or commercial range"). In addition, it was recognized that US
Government requirement sand procedures for constructing and
operating a commercial launch range for routine space launches
need to be developed. The Working Group further reviewed the
licensing procedures and recommended ways for streamlining these
procedures.
The Working Group believes that the Lead Agency, prior to
adopting the above procedures formally, should afford US
industry and other interested private parties full opportunity
to make inputs to and comments on the requirements and
procedures. The Congress should also be afforded an opportunity
to comment on them.
Finally, the Working Group developed and discussed lead
agency responsibilities and considered potential candidates
for a USG Lead Agency. Consensus was not reached on these
two specific issues.
All of the above items are discussed below.
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US GOVERNMENT SUPERVISION AND REGULATION OF COMMERCIAL
LAUNCH ACTIVITIES
The processes applicable to US Government supervision and
regulation of commercial launch operations fall into two basic
categories: (1) mission approval, and (2) launch operations.
A mission approval is currently obtained by securing an Inter-
national Traffic in Arms ("ITAR") license from the Department of
State. The Department of State considers the national,security,
foreign policy, and technology transfer aspects of the requested
mission, coordinating on a case-by-case basis with the Department
of Defense, the Director of Central Intelligence, the Arms
Control and Disarmament Agency, the National Aeronautics and
Space Administration and, in some instances, the Department of
Commerce. Once designated, the Lead Agency would also be involved
to monitor the process. Approval should be granted to any
mission unless it is inconsistent with United States interests
or violates USG international obligations or laws.
The "commercial launch operations" process has yet to be
established and will involve ensuring compliance with regulations
and procedures and the physical conducting of the actual launch
operations. For US national ranges, regulations and procedures
already exist and are implemented under the authority of DOD
or NASA.* No changes should be required to these operational
procedures to conduct commercial ELV operations from the National
Ranges.
An interagency group is needed to develop US Government
?procedures and regulations for the establishment of new commercial
launch ranges. This process is, in essence, a one-time effort.
Once these procedures and regulations are prepared and documented,
this task ends and implementation is passed to the appropriate
US Government agency responsible for overseeing launch operations.
The aspects of commercial launch operations in this category
relate to public safety (ground/range/flight and the environment)
and payload verification.
*The US national ranges are:
Eastern Space and Missile Center (Patrick Air
Force Base and Cape Canaveral Air Force Station);
Western Space and Missile Center (Edwards and
Vandenberg Air Force Bases);
White Sands Missile Range;
Kennedy Space Center;
Wallops Island Space Flight Center;
Pacific Missile Center
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4.411111m.
The development of procedures and regulations for the US
commercial launch ranges involves three groups of Federal
agencies: -- (1) The Department of Transportation (principally
the Federal Aviation Administration and the Materials Trans-
portation Bureau), the Federal Communications Commission, the
Occupational Safety and Health Administration, and the
Environmental Protection Agency whose existing laws and
regulations must be complied with by alyprospective range
operator; -- (2) The National Aeronautics and Space Administration
and the Department of Defense, who provide technical advice;
-- (3) The Department of State, Department of Commerce/ the
Director of Central Intelligence, the Department'of Defense
and the Arms Control and Disarmament Agency, who would review
and approve on any national security, foreign policy, or related
issues. Once the regulations and requirements are defined,
proposed commercial ranges could be approved for routine commercial
ELV operations.
Commercial range operators should be cognizant of these
regulations and requirements as they apply to commercial ELV
operations and be prepared to demonstrate compliance to the
appropriate agency.
For commercial ranges, the US Government agency charged
with conducting or monitoring commercial range operations should
be responsible for ensuring compliance with all applicable
regulations and facilitating requests for waivers or exemptions
from other appropriate agencies.
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RECOMMENDATIONS
A. Commercial ELV Mission Approval
The Working Group recommends that the existing ITAR
and FCC approval process, enhanced by the streamlining
suggestions in Section IV of this report continue to be
utilized for the "mission approval" process. The mission
approval process could specify launch site parameters such
as locations, timing arid launch azimuth where these have
security or policy relevance. The Lead Agency should :be
involved in a monitoring capacity.
B. Commercial ELV Operations
1. Commercial ELV Operations from National Ranges
The President's policy on Commercialization of ELVs
set forth in NSDD-94 encourages the use of the National Ranges
for US commercial launch operations as the most effective means
for the USG to ensure safe operations and compliance with US
treaty obligations. There are existing procedures, standards
and structure--developed and evolved over many years of experience
with USG launch operations--governing all ground, range, and flight
safety on the National Ranges. Air Force Regulations and corresponding
NASA requirements governing use of launch facilities are considered
sufficient to ensure compliance with international commitments,
protect public safety, as well as operations personnel, and
the USG investment in facilities, equipment, and other property
---on the National Ranges. DOD, or NASA, is responsible for controlling
operations on the various National Ranges and ensuring compliance
with range safety regulations by both USG and commercial ELV
operators. No additional requirements or criteria beyond existing
DOD and NASA requirements or range standards should be imposed
at the National Ranges unless need for such additional requirements
is clearly established. All user, including commercial operators,
have the option to request waivers to these range standards. DOD
and NASA, upon request, shall provide the Lead Agency with available
information regarding terms and conditions for use of facilities,
services, and equipment.
2. ELV Operations from Commercial Launch Ranges
The primary concerns related to commercial launch ranges
involve operational safety, foreign policy and national security.
At present, there is only an interim process governing operations
from a non-National Range. The Working Group believes,that until
new procedures are established for the operation of commercial
ranges, the process now being utilized is adequate for controlling
the current low level of commercial launch operation activity.
(See Appendix B.) Section IV discusses suggested streamlining
actions. The Lead Agency will be the focal point for managing
the process until procedures and regulations are established
for commercial ranges.
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The Working Group recommends that Lead Agency chair
an interagency group of affected Federal agencies and those
that possess appropriate technical and operational expertise
in space launches to develop the minimum necessary procedures
or regulations for licensing and supervising commercial ELV
launch range operations from US commercial ranges. The Lead
Agency and its interagency group should utilize the National
Range regulations as the starting point for establishing civil
licensing procedures and safety regulations for routine launch
operations from commercial launch sites. Regulations should
not be promulgated without the prior coordination of the agencies
represented on the interagency group dealing with-commercial
range operations. In addition, a provision for waivers or
exemptions should be established by each appropriate agency. The
interagency group, adhering to the mandate of NSDD-94, should seek
to minimize the regulatory burden consistent with operational
safety. The Working Group believes that, since ELVs are unmanned
and travel from and over mostly unpopulated areas, controlling the
flight trajectory and requiring command destruct or other abort '
mechanism should make it unnecessary to apply aviation certifica-
tion standards to the vehicle. However, the Working Group
recognizes that the DOT will review this issue.
The Working Group recommends that the DOT/FAA be responsible
for administering these commercial launch range safety regulations
once developed.
C. Lead Agency Responsibilities
The Working Group reached a corsansus on most aspects of
the Lead Agency's responsibilities. The Working Group diverged
--on two issues
-- (1) the role of the Lead Agency in reviewing and
suggesting changes in US Government policy and;
-- (2) the Lead Agency's ability to obtain internal
agency information for intragovernmental purposes
on matters which it believes could affect the
commercialization of ELV's.
The Lead Agency's primary mission should be to oversee
and facilitate the implementation of the President's policy
on Commercialization of ELVs, which clearly encourages private
sector involvement in maintaining a US ELV capability. This
agency should also act as a focal point within the USG for
private sector contacts and should handle, coordinate,
and expedite requests for commercial ELV launches.
The Working Group feels that the Lead Agency responsibilities
must transcend those of a coordinating role over regulation/
licensing of ELV launches to include an expanded and important
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role in encouraging/facilitating ELV commercialization in the
US. The "coordinator/ehcourager" set of responsibilities are
essential to successfully implement the President's policy
which is to encourage and facilitate the US private sector
development of US Commercial ELV's.
The Lead Agency, in consultation and with participation
of other affected agencies, should ensure that applicants
are subject to consistent procedural requirements for
licensing of private sector missions/payloads, including boosters
and serve as a single collection point for the documentation
necessary to satisfy the various required government aipprovals
for both payloads and launch operations.
In carrying out its oversight role, the Lead Agency should
be responsible for establishing reasonable processing deadlines
(in coordination with affected agencies) for private sector
requests and monitoring the compliance of involved agencies.
The Lead Agency shall have the ability to obtain information
from involved agencies on agency actions which may affect the
commercialization of ELVs and all involved agencies shall provide
the Lead Agency this information to the fullest extent possible.
The Lead Agency shall have the responsibility to identify
Government policies which might have an adverse impact on ELV
commercialization.*
The Lead Agency should resolve any problems with senior
management of the respective agencies. The Lead Agency shall
refer matters within the purview of the SIG (Space), which
could affect ELV commercialization, to the SIG (Space) forum
--for review, If it believes such action is necessary. The Lead
Agency should be responsible for continuing efforts to promote
and encourage commercial space launches in the same manner that
other private US commercial enterprises are promoted by US
agencies, to streamline the procedures for government approval .
of licences,and to ensure fair and equitable treatment for all
private sector applicants. Finally, the Lead Agency should
perform a strategic planning function to look at long-term
effects of government activities related to ELV commercialization.
The powers granted to the Lead Agency as overseer and facilitator
of the overall ELV commercialization process, from the time a
license application is submitted through the actual launch, shall
*In NASA's view, this paragraph should read, "The Lead Agency
will be responsible for explaining to the private sector decisions
which have been taken by US Government agencies relating to ELV
commercialization which may affect ELV commercialization. For
their part, all involved agencies will provide the Lead Agency
with relevant, publicly available information for this purpose."
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not diminish or abrogate the statutory or operational authority
presently exercised by any USG agency. DOD (and in some
instances NASA)remain responsible for the approval and control
of ground and flight operations on the National Ranges and the
DOT/FAA should exercise similar authority over commercial
ranges.
Discussion of Issues
With regard to the above-cited difference in view on
the Lead Agency's responsibilities, the majority (State, Commerce,
DOD, DOT, DCI, ACDA, JCS, FAA and OSTP) believes that the Lead
Agency must actively seek to ensure that commercial ELV operations
are not unreasonably inhibited by Government policies and
regulations, e.g. existing environmental and safety protections,
or conditions relating to the provision of Government facilities
and services. The Lead Agency must also recommend changes in
these policies as appropriate.
In order to implement these responsibilities, the Lead Agency
must have some reasonable access to essential internal informa-
tion on agency decisions that could affect ELV commercialization.
The Lead Agency should, of course, be sensitive to appropriate
controls on classified or sensitive bidding information.
The majority believes the NASA description would only permit
the Lead Agency to "explain" to the public sector sections of
existing policy. The NASA description omits any provision for
the Lead Agency to examine Executive Branch policies and
provisions to ensure their consistency with the US commitment to
ELV commercialization. Further, the NASA description would
confine the Lead Agency's access to only publicly available
information on decisions affecting ELV commercialization.
With the exception of NASA, the Working Group does not feel
that legislation is required for the Lead Agency to perform its
functions of encouraging and facilitating ELV commercialization,
nor is legislation required for the Lead Agency to obtain sensitive
proprietary or confidential data for use within the Government.
Such data is intended for use by the Lead Agency in reviewing/coor-
dinating overall Government activities related to ELV commercializa-
tion within the context of the established interagency mechanism
and would not in any way violate the charter of any other agency.
In addition, it has been stated in the report that the Lead
Agency will try to resolve issues with senior agency management or
refer issues to an appropriate forum such as SIG (Space) for
resolution.
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As regards the Lead Agency's ability to obtain internal
agency information: NASA has concerns that any empowerment
of the Lead Agency so as.to "have the ability" to obtain
information from other agencies could impinge on those other
agencies' already existing statutory authorities. As such,
this role of the Lead Agency may require new legislation to be
adopted -- a time-consuming process which would probably not
serve the Administration's interests in encouraging and
facilitating ELV commercialization. Furthermore, NASA follows
a policy of strict confidentiality regarding such matters as its
bids for INTELSAT and other launches. This is done to ensure
the integrity of NASA's bids in the face of growing-competition
in the space transportation field. Similarly, private sector.
bids for NASA's ELV spare parts and residuals are treated with the
same degree of confidentiality and are, by regulation, available
only to the SEB. In view of the above policy and practical
considerations, specific information on these matters does not
fall within the scope of the information which should be provided
to other agencies.
As regards the role of the Lead Agency in identifying
Government policies which might have an adverse impact on ELV
commercialization: Under the NASA approach, all of the
involved agencies, as well as the Lead Agency, would have the
option to identify and propose changes in policy as they see fit.
NASA believes that charging the Lead Agency to recommend changes
in USG policy is based on what appears to be an unwarranted
assumption that current policies are inappropriate or inadequate.
NASA further believes that explicitly assigning the Lead Agency
this task could have the effect of generating change for change's
sake. Further, NASA is of the opinion that any questions regarding
Shuttle pricing or the cost of ELV residuals which may arise in
the course of. implementing ELV commercialization policy should be
considered in the framework of the SIG (Space) which is the body
specifically designated by the President to address space policy
issues.
NASA also subscribes to the view that the Lead Agency has
the responsibility to implement the President's policy of
encouraging and facilitating ELV commercialization. However,
some of the responsibilities set forth for the Lead Agency by
the majority are, by statute, already NASA's responsibilities
under the National Aeronautics and Space Act of 1958, as
amended. NASA believes that the Lead Agency's role and
responsibilities should be expressed differently.
D. Implementation of Lead Agency Responsibilities
Some of the members of the Working Group, including the two
agencies which are candidates for the Lead Agency role, would
prefer an Executive Order to an NSDD because some of the agencies
involved in the approval process are not members of the NSC and
do not normally operate with NSDD's. Therefore, an Executive
Order would create less confusion in the government-wide imple-
mentation of commercialization policy. In addition, an Executive
Order would get wider distribution within the private sector.
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E. Management Scheme
The Lead Agency should identify or establish an appropriately
visible organizational entity, at the Departmental level, to ensure
proper management attention to the task of facilitating the
implementation of this Presidential policy. It is recommended
that a single point of contact in each affected agency be appointed
to coordinate all activities within that agency. These individuals
will, in effect, operate as a support team for the Lead Agency to
assist it in carrying out it's responsibilities. The Lead Agency
must, of necessity, defer to other agencies with respect to their
specific areas of responsibility such as foreign policy, national
security, public safety, etc.
F. ?Lead Agency Designation
In considering potential candidates for the Lead Agency the
Working Group agreed on two fundamental criteria. First, since the
task for the Lead Agency involves dealing with a potential new
private sector industry and encouraging commercial ELV activities,
a civilian agency is desirable. Second, in order not to place a
regulatory agency in the position of overseeing and facilitating
its own activities, it was considered more appropriate to place
the Lead Agency responsibility at the Departmental level where
regulatory responsibilities do not exist. Agencies' regulatory
authorities, strengths/weaknesses, and their operational
activities were assessed in the review process. After the Working
Group reviewed all potential agencies, two agencies, the
Department of Commerce and the Department of Transportation
emerged as candidates. The Working Group believes that either
?agency would be suitable as Lead Agency.
Each agency has developed the following rationales in support
of its respective candidacy. (More detailed rationales are
contained in Appendix C.)
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THE DEPARTMENT OF COMMERCE AS LEAD AGENCY
The Department of Commerce, by virtue of its mission to promote
domestic and international commerce, its long-standing relationship
with the business community, and because it has no regulatory
responsibility for space-related programs, is well suited to serve
as the Lead Agency for the commercialization of Expendable Launch
Vehicles (ELVs). Specifically:
o The Secretary of Commerce is the principal contact in the
Executive Branch with the business community, DOC brings
business views to bear on a broad range of policy
questions with particular emphasis on economic, trade,
technology, and industrial issues.
o Secretary Baldrigi serves as Chairman of the Cabinet
Council on Commerce and Trade which deals with the
principal issues affecting the business community including
those involving implementation of the Administration's
policy to foster development of a strong private sector.
o DOC has a successful track record in facilitating resolu-
tion of industry-specific problems. Examples include
lead responsibility in the Administration for responding
to auto and steel industry problems including resolution
of tax, environmental, and other regulatory issues.
o Commerce has expertise in 'assisting the growth of new
firms and industries. It licenses export trading companies,
and, through its Office of Industrial Technology Partnerships,
works with emerging high tech industries to expand their
capital resources.
o Commerce, as Lead Agency, would have only a limited
regulatory role in the approval of commercial launches.
Consequently, it would be easier for DOC to serve as
a facilitator for expediting the regulatory process.
In cases where agencies have both regulatory and
"promotional" missions, the regulatory responsibilities
tend to dominate. Of all the agencies being considered
for the lead role, DOC would be the least likely to
fall victim to an overregulation mentality.
In sum, DOC is known as an agency with mandate to foster
industrial activity and as an agency with a sensitivity to business
needs. Therefore, selection of DOC would send a signal to the
private sector that the US government intends to minimize regulatory
burdens, and actually to encourage commercialization of ELVs,
rather than simply to allow it.
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U.S DEPARTMENT OF. TRANSPORTATION AS LEAD AGENCY
With the Secretary of Transportation charged by law to promote
the development and improvement of transportation provided by
private enterprise and to stimulate technological advances in
transportation, DOT is a uniquely attractive candidate for the
role of Lead Agency for the commercialization of ELV's. At
the very least, the ELV industry will share most of the character-
istics of transportation industries, e.g., high technology,
large capital investment, etc. DOT's strength is that it is
capable not only of promoting, facilitating and encouraging,
but also identifying the range of barriers that will confront
the future space launch industry and developing a National agenda
aimed at eliminating those barriers.
DOT affords two critical advantages in serving as Lead Agency
for ELV commercialization. DOT has extensive experience in
promoting and assisting development of large scale, highly tech-
nological industries. This includes fostering aviation growth
and development; assisting the Nation's railroads in evolving
into profitable entities, and aiding the States in the develop-
ment of the interstate highway system, and localities in developing
sophisticated subway systems.
Also, the Department has unparalleled "hands-on" experience in
finding ways to reduce the regulatory requirements applicable
to specific transportation industries. In this regard, DOT
has been successful in:
o Increasing aviation competition and growth through
airline deregulation and planning for the sunset of
the Civil Aeronautics Board;
o Promoting a stronger truck and rail industry through
deregulaton and major changes to the role of the Inter-
state Commerce Commission; and,
o Saving billions of dollars to the transportation industry
by streamlining and eliminating parts of the Department's
own regulatory processes.
Finally, three of the Department's organizations are going to
be directly involved in the operational aspects of the launch
ranges, i.e., the Federal Aviation Administration, U.S. Coast
Guard and the Materials Transportation Bureau. In this respect,
the Department is in a unique position to effect directly the
policies and procedures necessary within these organizations
to facilitate and promote commercialization of space activities
and to oversee this in conjunction with the efforts of other
Federal agencies involved in the process.
11
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IV. STREAMLINING INTERIM PROCEDURES FOR OBTAINING
GOVERNMENT AUTHORIZATION FOR PRIVATELY OPERATED ELVs
A private launch operator must now obtain three licenses
or approvals prior to launching: (1) a license from the State
Department Office of Munitions Control for the launch, (2) one
from the Federal Communications Commission ("FCC") for radio
frequencies, and (3) a waiver of exemption from the Federal
Aviation Administration ("FAA") for use of air space.
The Working Group suggests the following near-terfa
streamlining actions:
A. The Lead Agency should be established as the US
Government point of contact for the approval of a specific
commercial space mission and launch.
B. A Lead Agency Support Team comprised of single
points of atact from State, DOD, NASA, DOT and FCC (as a
consultant) should be established to act on license applications
and expedite action within each respective agency.
C. The Lead Agency should provide a prospective launch
operator with a single package of documentation which the
Government expects to process for approval.
D. The Lead Agency Support Team should respond to questions
and assist license applicants in obtaining and preparing
applications and supporting documentation. Agency representatives
should have the ability to obtain quick answers, especially to
--technical questions.
E. The Lead Agency and its Support Team should look for
innovative ideas for expediting the process.
F. Each agency that grants or concurs in an application
shall undertake to expedite application through its respective
systems. The Lead Agency will undertake to respond to the
applicant within 30 days of receipt of a complete application
for a license. Agencies involved in the issuing of licencses
shall provide the responsible US Government Lead Agency with
input so that it can effectively provide an approval,
disapproval or interim report to the applicant within 30 days.
The Lead Agency should continue to provide status reports
every 30 days until final approval or disapproval is made.
12
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APPENDIX A
SIG (SPACE) WORKING GROUP
ON
COMMERCIAL LAUNCH OPERATIONS
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SIG (SPACE) WORKING GROUP ON
ELV COAMERCIALIZATION
Mr. Charles Horner
Mr. Norman Terrell
Department of State
National Aeronautics and
Space Administratlon
Departmnt of State
Arms Control and
Disarnexterrt Agency ?
National. Aeronautics and
Space Administration
Office of Science and
Technology Policy
Director of Central
Intelligence
Department of Defense
Joint Chiefs of Staff
Department of Commerce
Department of
Transportation
Federal Aviation
Administration
Federal Communications
Canission
Col. George Ojalehto
M. Joy Yanagida
Mt. Jim Chamberlin
Mr. John Ward
Ms. Anne Taylor
Mr. John Pk:Carthy
Maj. Thomas Maulthby
Lt. Col. James Harshbarger
Ms. Lucy Falcone
Mt. Jeffrey Shane
Mt. Carl Rappaport
Mt. Norman Bowles
M. Shannon Roberts
Mt. J. E. Murdock, III
Mr. Bert Randall
Ms. Irene Bade
Co-Chairman
Co-Chairman
Pk% A. Rutkaaski (Advisory Capacity)
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APPENDIX
CURRENT US GOVERNMENT APPROVAL
PROCESS FOR
COMMERCIAL LAUNCH OPERATIONS
,??????
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AD HOC PROCESS ESTABLISHED FOR CONTROLLING LOW-LEVEL OF
ACTIVITY IN COMMERCIAL LAUNCH OPERATIONS
The principal features of the ad hoc process
established to handle commercial launch operations are
summarized as follows.
1. Launch Vehicles
Under the existing process a commercial ELV operator
is currently required to obtain three primary approvals for
a launch: (a) an Arms Export Control license from the
State Department; (b) an experimental radio license from
the FCC; and (c) an exemption or clearance from the FAA
for use of controlled airspace.
a. Arms Export Control License. The Arms Export Control
Act and its implementing regulations on the International Traffic
in Arms (ITAR) presently furnish the primary mechanism for
controlling launches and any attendant transfer of technology.
The State Department administers these procedures.
Under the Act, the State Department designates defense
articles, services, and technical data that constitute the
Munitions List. No item on the Munitions List may be exported
or imported unless the State Department issues a license that
--authorizes its export. Violaters are subject to criminal
sanctions. Rockets, launch vehicles, payloads, specifically
designated associated equipment, and related technical data
are all on the Munitions List. The State Department deems
launches to be "exports" since that term means "the sending
or taking out of the United States in any manner, any article,
equipment or technical data on the Munitions List". The
State Department has authority to deny, revoke, suspend or
amend licenses if it believes such action would not further
world peace, foreign policy, or national security; or because
it believes the applicant has violated the Act or the
International Traffic in Arms Regulations (ITAR). License
decisions may be appealed to a Hearing Commissioner of the
State Department and to an Appeals Board of the Commerce
Department. The ITAR provides a mechanism for considering
the range of concerns that indirectly affect foreign policy,
including vehicle hazards that could have foreign policy
consequences, the State Department consults NASA, the FAA,
and DOD on vehicle safety. To facilitate this process,
license applicants may be required to provide "all pertinent
documentary information regarding the proposed transaction."
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Similarly, in order to assure some compensation to foreign
governments, the State Department may secure compensation
commitments in the form of insurance and/or indemnification.
b. Federal Communications Commission (FCC) licenses.
Under the Communications Act of 1934, as amended, and its
implementing regulations, the FCC allocates and issues
licenses for the radio frequencies necessary for commercial
space launch operators to monitor telemetry, track, and
destroy errant vehicles.
The FCC has not designated frequencies for commercial
space operations. Commercial ELV operators may obtain an
experimental radio license which permits the licensee to
share assigned frequencies.
c. Federal Aviation Administration (FAA) clearance.
Under the Federal Aviation Act of 1958, the FAA regulates the
navigable airspace and has promulgated operational rules
applicable to unmanned rockets. These rules require 24-48
hours notice of the rocket operation to the appropriate Air
Traffic Control facility and prohibit rocket operations that
create a collision hazard. In addition, unless specifically
permitted by FAA exemption, certain other rocket operations
are prohibited, including those (a) in controlled airspace,
(b) under specified conditions of limited visibility, and
(c) within 1500 feet of any person or property not associated
with the operations.
2. Payloads
Payloads (including orbiting payloads) on the Munitions
List are also subject to ITAR licensing procedures.
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APPENDIX C
DEPARTMENT OF COMMERCE
AND
DEPARTMENT OF TRANSPORTATION
EXPANDED RATIONALES REGARDING
THEIR SUITABILITY AS
LEAD AGENCY
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THE DEPARTMENT OF COMMERCE AS LEAD AGENCY
The Department of Commerce, by virtue of its mission to promote
domestic and international commerce, its long-standing
relationship with the business community, and because it has no
regulatory responsibility for space-related programs, is well
suited to serve as the lead agency for the commercialization
of Expendable Launch Vehicles (ELVs).
DOC has the following advantages in helping to ensure that
the private sector has full opportunity to exploit the policies
set forth in NSDD-94:
o The Secretary of Commerce is the principal contact in
the Executive Branch with the business community. DOC
is charged with promoting business activity and
representing business interests. It is a funnel and
facilitator for business views on a broad range of
policy questions with particular emphasis on economic,
trade, technology, and industrial issues.
o Secretary Baldrige serves as Chairman of the Cabinet
Council on Commerce and Trade. This Cabinet Council
deals with the principal issues affecting the business
community including those involving implementation of
the Administration's policy to foster development of
a strong private sector.
o DOC has a successful track record in facilitating
resolution of industry-specific problems. Examples
include appointment of a Deputy Assistant Secretary
for Automotive Industry Affairs as a part of the
Administration's response to auto industry problems;
and DOC's role as the lead in the Tripartite Steel
Committee and its successor in resolving tax,
environmental, and other regulatory issues of concern
to the steel industry.
o Commerce has expertise in assisting the growth of new
firms and industries. It has responsibility for
licensing export trading companies, newly authorized
by the Export Trading Act; and, through its Office of
Industrial Technology Partnerships, it works with
emerging high tech industries to expand their capital
resources by using R&D Limited Partnerships.
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o Commerce, as lead agency, would have only a limited
regulatory role in the approval of commercial launches.
Consequently, it would be easier for DOC to serve as
a facilitator for expediting the regulatory process.
In cases where agencies have both regulatory and
"promotional" missions, the regulatory responsibilities
tend to dominate. Of all the agencies being considered
for the lead role, DOC would be the least likely to
fall victim to an overregulation mentality. Furthermore,
DOC is identified by the business community as the key
agency in helping to develop the Vice President's
agenda on deregulation.
In sum, DOC is known as an agency with a mandate to foster
industrial activity and as an agency with a sensitivity to
business needs. Therefore, selection of DOC would send a
signal to the private sector that the US Government intends
to minimize regulatory burdens, and actually to encourage
commercialization of ELVs, rather than simply to allow it.
Commerce has a number of resources that will be brought to
bear to ensure that the policies set forth in NSDD-94 are
implemented:
o An office for commercialization of ELVs will be
established that will report to the Assistant
Secretary for Productivity, Technology, and
Innovation (PTI). The technical expertise of PTI
will be available to the new office as will the
considerable analytic and policy capabilities of
other offices reporting to the Under Secretary for
Economic Affairs (e.g., the Bureau of Industrial
Economics, which is the Government's principal agency
for analyzing specific industries).
o The National Oceanic and Atmospheric Administration's
(NOAA) expertise with remote sensing satellites will
afford a technical backup for the new office.
o The International Trade Administration, through its
Foreign Commercial Service and through a proposed
office to encourage aerospace sales abroad, will be
available to promote exports and to help offset the
effects of foreign government-supported aerospace
programs.
o The Office of Business Liaison, which reports directly
to the Secretary, will assist the new office in efforts
to encourage private sector participation.
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The Department of Commerce is prepared to serve as the lead
agency in commercialization of ELVs. Resources in a number
of agencies can be deployed to assist in implementing the
President's directive. However, it is DOC's view that,
regardless of which agency is selected as the lead, it must
be provided with the necessary authority, through an
Executive Order outlining the lead and support agency roles,
in order to fully implement the policies of NSDD-94. With
such authority, DOC would welcome the opportunity to encourage
and especially to facilitate private sector developmept of
the new ELV industry.
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THE DEPARTMENT OF TRANSPORTATION AS LEAD AGENCY
The President's goal, as expressed in NSDD-94, is to
encourage and facilitate an expanding role for the private
sector in the development and use of ELV's. Greater private
sector involvement will carry with it an important change
in the character of space activities -- from an emphases on
basic R&D and strategic uses to a more routinely available
commercial service. As such, ELV operations will be Much
like a new, emerging mode of transportation, requiring from
government agencies promotion and oversight similar to that
established for the more triditianii-modis.- Given its extensive
experience and expertise in encouraging and facilitating all
other elements of the transportation industry, both through
direct promotion and through successful efforts to minimize
the regulatory burden imposed on the country's transportation
sector, DOT is a uniquely attractive candidate for designation
as lead agency for the commercialization of ELV's.
DISCUSSION
DOT would enjoy two critical advantages in serving as lead
agency for ELV commercialization: first, its long experience
in promoting the development of large-scale, highly technical
industries in the context of complex interagency approval
processes; and, second, DOT's "hands-on" experience in finding
ways to reduce the regulatory requirements applicable to specific
----transportation industries. DOT's credibility to industry as
a result of its long history of success on both fronts is readily
discernible in the close and cordial working relationships that
the Department enjoys with all of the sectors that come
within its purview.
Promotion. It is clear that the kind of promotion implied
by the NSDD-94's references to "encouragement and facilitation"
is precisely the kind of promotion in which DOT has a proven
track record: the stimulation and facilitation of private sector
initiatives in a highly technical industry subject to a complex
multi-agency regulatory oversight.
A wide variety of such promotional responsibilities can
be found in DOT's enabling legislation. The Department was
established by Congress, among other reasons, to "make easier
the development and improvement of coordinated transportation
to be provided by private enterprise to the greatest extent
feasible" and to "stimulate technological advances in
transportation." 49 U.S.C. 101(b). The Secretary of
Transportation is also specifically charged by Congress to
promote the revitalization of the U.S. rail system so that it
"will remain viable in the private sector of the economy...."
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49 U.S.C. 801(a). In carrying out the Department's aviation
responsibilities, the Secretary must consider the "promotion,
encouragement, and development of civil aeronautics."
49 U.S.C. 1303(b). The Secretary's responsibility for the
promotion of the merchant marine is exercised through the
Maritime Adminstration. 46 U.S.C. 1101. In promoting
research and development in the field of high-speed ground
transportation, the Secretary is required to "provide for
financial participation by private industry to the.maximun
extent practicable." 49 U.S.C. 1632. In promoting the
construction and rehabilitation of the nation's highway
system, the Secretary is required to "encourage the substantial
minimization of paperwork and interagency decision procedures
and the best use of available manpower and funds so as to
prevent needless duplication and unnecessary delays at all
levels of government.." 23 U.S.C. 101(c).
Regulatory Facilitation. Many of DOT's component agencies
also have specific regulatory responsibilities. With respect
to ELV's, the FAA, the Coast Guard, and the Materials
Transportation Bureau are each likely to have a regulatory role.
The fact that these functions are carried out in agencies
directly responsible to the Secretary of Transportation,
enhances DOT's ability to carry out effectively the mandate
of NSDD-94.
First, to the extent that opportunities for expedited
treatment of launch applications are present within a particular
agency, that agency is more likely to exploit those opportunities
if encouraged by its parent organization than if the suggestion
?comes from aft outside source. A number of factors undoubtly
contribute to this result: the greater familiarity of the parent
with the subordinate agency's overall program; the typically
greater flexibility of the subordinate agency in dealing with
its parent organization; the ability of the parent to support
and defend the subordinate agency's reduction of regulatory
procedures in response to possible criticism from complaining
interests (e.g., safety, environment).
Second, the organization of DOT's different responsibilities
has been proven effective in improving the management of a variety
of functions that have both promotional and regulatory aspects.
For example, the agency charged with promoting the development
of the U.S. merchant marine -- the Maritime Administration
was transferred from the Department of Commerce to DOT in 1981
despite the fact that DOT was (and is) also parent agency to
the government's principal regulator of ocean shipping operations,
the US Coast Guard. It is clear that DOT's comprehensive
authority and visibility throughout the transportation sector
has clearly enhanced MarAd's effectiveness, while enabling the
Department to oversee the Coast Guard's regulatory process more
knowledgably and credibly.
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In short, with its depth of experience and broad-base
of industry contacts, the Department is uniquely positioned
to identify and eliminate potential barriers to private
sector space launch development and to promote and facilitate
the growth of the private sector space industry. In addition,
with its extensive background in creating a healthier and less
regulated transportation environment, the Department has the
proven capability to streamline and expedite the Federal
Government's launch range approval and licensing processes.
Departmental Focal Point
In large measure, the lead agency's role is a national
policy and planning function involving regulatory review,
economic analysis, issue resolution, intergovernmental and
private sector interaction, as well as the national and
international promotion of the commercialization of space
launch activities. If selected as lead agency, DOT would
assign the lead agency responsibility to the Office of the
Secretary (OST), traditionally the focal point within DOT
for all transportation policy actions of national and
international importance. the philosophy of the Department
is to foster the development of the transportation industry
by minimizing the "heavy hand" of government. In this regard,
DOT has been successful in:
o Increasing aviation competition and growth
through airline deregulation and the planning
for the sunset of the Civil Aeronautics Board;
o Promoting a stronger truck and rail industry
through deregulation and major changes to the
role of the Interstate Commerce Commission;
o Saving billions of dollars to the transportation
industry by streamlining and eliminating parts of
the Department's own regulatory processes;
o Assisting Conrail, which emerged from the
restructured Penn Central Railroad, in evolving
into a profitable entity; and,
o Promoting United States interests through
international aviation agreements.
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A High-Visibility Office
Assigned to perform this function in OST would be special
office reporting directly to the Secretary or an Assistant
Secretary. At a minimum, this office would be responsible for
developing a strategy to promote a U.S. commercial ELV industry,
commercial space launch promotion and facilitation,. economic
and regulatory analysis, and domestic commercialization issues
identification and resolution. This office would alms be the
single point of commercial launch range license application
and notification of final approval, serving as the Federal
Government's contact point for the private sector with regard
to private industry requirements and development problems.
While most of the lead agency responsiblity is policy-
oriented, the processing of the licensing application would be
largely operational. These activities, such as distribution,
coordination, and day-to-day tracking would be handled through
the FAA. In addition, FAA would handle its normal review and
approval processes as those processes relate to FAA's
responsibility for management of the airspace and aviation safety.
As the Working Group proposes, FAA would be primarily responsible
for Federal oversight of the safety of commercial launch ranges
once they are approved, constructed and fully operational.
This latter role would be similar to that performed by the
Department of Defense for national launch ranges.
Resources
The Secretary would appoint the Director of the new office,
which would have a staff to handle the lead agency function.
Considerable Departmental resources are available to the
office, including the Transportation Systems Center in
Cambridge, Massachusetts. This facility, which has considerable
expertise in socio-economics, industry analysis, technology
assessment, and strategic planning, has interaction with the
private sector's R&D community and other Federal agencies.
In addition, the new office would draw on the capabilities of
several other DOT research or test facilities, including FAA's
Aviation Technical Center and the Federal Highway Administration
Research Center. Also available to the office, through OST,
the US Coast Guard, FAA, Federal Highway Administration, and
the Research and Special Programs Administration, are some of
the leading Federal Government experts in heavy construction,
aeronautical engineering, hazardous materials, communications,
land management, eminent domain, and the legislative and
regulatory requirements (international, Federal, State, and
local) affecting the future space industry. The office would
be able to draw upon the Department's advanced technological
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knowledge and capabilities resulting from FAA's development
of the National Airspace Systems Plan, a $10 billion
modernization of the airspace communications, radar,
navigation aids and computer operation systems.
Finally, the Secretary would appoint an advisory
committee consisting of representatives from the private
sector and key Federal agencies to provide advice with regard
to current practices and the future of the commercial ELV
industry.
Timeframe
The Department's. first-task would be to assess the full
range of actions the lead agency would have to address in order'
to implement NSDD-94 successfully. This review would include
discussions with the Working Group members, their respective
organizations, and private sector leaders in this area. Based
on this review, the organization procedure and future specific
direction of this office would be determined. This office
could be operational within three months.
Summary
In sum, the Department of Transportation has the mission,
capability and the interest to assume the responsibilities of
the lead agency, and welcomes this opportunity to assist in
-"-the Federal effort to commercialize the nation's space industry.
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HANDLE VIA
SECRET TALENT-KEYHOLE
(S) NATIONAL RECONNAISSANCE OFFICE
WASHINGTON, D.C.
THE NRO STAFF
MEMORANDUM FOR IC STAFF
SUBJECT: ELV Commercialization Report to the NSC
September 6, 1983
CONTROL SYSTEM
Per your telephone request of September 6, 1983, we have reviewed the draft
commercialization report. The report satisfactorily addresses the subject of
potential lead agencies and the adequacy of current provisions/regulations for
national ranges and licensing procedures for launch. It does, however, have
several major deficiencies. The report does not provide:
a. A list of major issues resolved.
b. A list of major issues that remain unresolved.
c. Draft implementor (EO or NSDD).
d. Agency positions on any of the above.
It is also presented as a coordinated working group report ready for IG(Space)
coordination. This is clearly not the status reported by the DCI or DOD repre-
sentatives.
It is totally inappropriate to forward a "report" with unresolved issues and
lacking a draft implementing instrument. This leaves to the NSC and NASA the
right to draft an NSDD, which by normal process will not leave the Executive
Office of the President. If we have issues of concern, we should not agree
that the document is ready for forwarding.
JIMMEY R. ORRELL
Lt Col, USF
Deputy for National Security
Council Affairs
HANDLE VIA
TALENT-KEYHOLE SECRET
CONTROL
Derived From IPM
DECL: OADR
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CONTROL NO TCS-51741-83
COPY 1 OF 2 COPIES
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Office of General Counsel
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STAT
MEMORANDUM MEMORANDUM FOR:
FROM:
SUBJECT:
DCl/ICS 83-4499
6 September 1983
Planning & Policy staff, ICS
Review of Report from SIG(Space) Working Group
on ELV Commercialization
The attached 31 August Report from the SIG(Space) ELV Working Group has
been circulated to member agencies for comment prior to a 7 September final
review meeting. Your informal initial review comments would be appreciated by
noon on the 7th. More importantly, the product of the 7 September meeting
will be sent by the Working Group to the NSC Staff for further distribution to
the IG (Space) members for their comment. Anticipating minimal change to the
attached version, this will give you some additional time to review the
document and prepare comments for RADM Burkhalter, the DCI's SIG(Space)
representative. As soon as the NSC makes distribution of the final version of
the report, it will be sent to you for comment.
Attachment:
a/s
UNCLASSIFIED
STAT
STAT
STAT
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UNCLASSIFIED
SUBJECT: Review of Report from SIG(Space) Working Group
on ELV Commercialization
Distribution: (DCl/ICS 83-4499)
Orig - Addressee w/att
1 - PPS Subject w/attn
1 - PPS Chrono w/o at
1 - ICS Registry w/o att
DCl/ICS)
STAT
(6 September 83) STAT
UNCLASSIFIED
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United States Department of State
Washington, D.C. 20520
BUREAU OF OCEANS AND INTERNATIONAL
ENVIRONMENTAL AND SCIENTIFIC AFFAIRS
CONFIDENTIAL
June 15, 1983
MEMORANDUM
TO: NSC - Gilbert Rye
FROM: State/OES/S - Charles Horne ?
SUBJECT: Commercialization of Expendable Launch Vehicles
As you know, COMSAT votes the U.S. share in the global
telecommunications satellite organization (INTELSAT).- In so
doing, COMSAT is required to take guidance from the State
Department on matters affecting national interest and foreign
policy. One thing up for consideration at the current
INTELSAT meeting in Washington is the procurement of launch
vehicles for the first five INTELSAT VI generation of space-
craft to be launched in 1986 and 1987. The following table
(expressed in millions of dollars) summarizes the baseline
bids INTELSAT has before it:
No. of Launchers
2
5
STS
139.6
362.3
Space Tran Ariane
233.4-238.2 189.6
534.8-546.7 518.7
If we take the bid of the private company as a kind
of benchmark, it is apparent that INTELSAT will benefit
from huge subsidies provided by either the French or
ourselves. It is only superficially serendipitous that
NASA can underbid the French, for the real result of that
capability is plain: U.S. taxpayers will, in effect, be
making a gift of tens of millions of dollars to an inter-
CONFIDENTIAL
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CONFIDENTIAL
2 -
national telecommunications monopoly. Of course, from
the INTELSAT/COMSAT point of view -- COMSAT, after all,
owns about 25 percent of the INTELSAT monopoly -- the
organization would be foolish not to take advantage of the
cheapest, technically-qualified launches available. But,
for the Federal government as a whole, the question is how
to reconcile support for a NASA bid on the one hand and the
governing Federal policy (NSDD 94) of encouraging private
industry on the other.
In the short run, this is not much of a problem. The
Director-General of INTELSAT has proposed acceptance of the
NASA offer for the first two launches, and deferral until
a September meeting of which launch services to procure for
the remaining three. It also appears that U.S. insistence
that INTELSAT commit to five U.S. launchers at this meeting
would not draw enough support and could be counterproductive
to our efforts to elect an American at this meeting as the
next Director-General. Consequently, the Department's
guidance authorizes COMSAT to support the Director-General's
recommendation to procure two shuttles now, leaving open
until September a decision on the other three. Nonetheless,
if these price differentials persist, it is plain that one
promising area for private sector participation in the
launching business will have been effectively foreclosed.
Therefore, as our implementation of NSDD 94 moves
forward, the various inter-agency bodies may want to
recognize the various aspects and implications of this
situation in greater detail.
CC:
NASA - Norman Terrell
OMB - Frederick Khedouri
White House - Craig Fuller
DOD - H. Reynolds
JCS - LTC. J. Harshbarger
DCI -
Commerce - A. Calio
OSTP - V. Reis
CONFIDENTIAL
OES/S:CHorner:bif
6/15/83;632-2432
Declassified in Part- Sanitized Copy Approved for Release 2014/04/16: CIA-RDP92B00181R001701610004-1