ABSTRACT OF AGENCY COMMENTS

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP84B00049R001700060010-2
• Release Decision: RIFPUB
• Original Classification: K
• Document Page Count: 6
• Document Creation Date: December 20, 2016
• Document Release Date: October 4, 2007
• Sequence Number: 10
• Publication Date: November 30, 1981
• Content Type: MISC

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ABSTRACT OF AGENCY COMMENTS 11/30/81
Interior "A vigorous civil satellite land remote sensing vrocrram is essential
to Federal agency interests, to the energy and mineral industry and
to the nation as a whole."--is of "vital importance to the economic
and national security of the nation. Whether these data are used to
predict Soviet requirements for American Wheat, or to chart reefs in
shipping lanes around the world, or to assist energy and mineral
companies in the worldwide exploration, benefits flow to the nation
as a whole..."
"The U.S. should proceed with the design and development of a
follow-on cost-effective system at the earliest possible time"...
"to have such a system operational by the 1986-1937 time period
following Landsat D and D'."..."A private sector transfer ...would be
welcome at the appropriate time" (but) "key policy cuestions must be
addressed before the program is hastily transferred in the course of
the budget process."
The current Government (budget) policy has "all its eggs in the basket
of private sector ownership and operation of the satellite system
for continuation of 'the program." "Enough evidence exists to cast
doubt on the success of the immediate transfer...to the private
sector. If there is no significant private sector program.and no
government program following Landsat D/D', there "will be an absence
of U.S. presence in civil satellite remote sensing after 1986/1987"?
with "grave implications for our nation and U.S. industry involved
in the development. of domestic and foreign sources of energy and
strategic minerals,. in addition to worldwide agricultural inven-
tories and their relationship to foreign trade and the U.S. balance
of payments."
NOAA - ..."it is of utmost importance to continue the land remote sensing
space technology" because of:
o "...large potential public benefits associated with the use of
Landsat data...in the management of renewable-and non-renewable
...resources on public lands"
o Increasing dependence "on information derived from Landsat data"
in predicting agricultural productivity in critical areas of the
world.. .to establish and implement a. number of national and
international policies."
CEA - "Clearly, Landsat provides substantial benefits to U.S.'citizens.
The data provided may not be available from any other source.
However, that alone does not justify its existence or its operation
by the Federal Government... Given the relatively small price that
the current users are willing to pay, (the program's) ability to
pass a cost-benefit test becomes highly suspect."-
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Suggests auction of Landsat assets. "The Federal Government
should be willing to accept the fact that there may be no firm
that is willing to (bid on Landsat as a future system)." "No
bids at the present time does not mean that there will never be a
private sector Landsat. Competition among firms will cause these
services to be provided when ...it is profitable. If that is not
the-'case at the present time, it may be in the future."
Agriculture - "The Department of Agriculture favors eventual transfer of the
civil land system to private industry. However., we disagree with
what we consider a hasty and ill-advised decision to implement
the transfer before the serious concerns of Federal departments
and agencies have been adequately addressed." "USDA strongly
supports the continuation and strengthening of the U.S. land
remote sensing satellite systems," "...USDA can support a policy
of eventual transfer ...(h)owever, the decision to effect a hasty
transfer to the private sector seems to be a result of focusing
on the budget without consideration of.. important economic, poli-
tical and international implications."
"USDA recommends the creation of a temporary, Federally-owned
corporation or similar entity for civil land observing satellite
systems" that would "Have a finite life of sufficient duration to
permit an orderly transition from Federal to civil sector
operation." "Such a corporation... would maintain continuity and
momentum toward an eventual fully operational satellite system
while protecting the national interest and providing time to
carefully address the various problems and concerns of both the
domestic and international communities." -
"...we should not expect the current data purchasers to-carry the
cost of the system" --"use of the satellite data is often for the
common good of the whole nation" -- a government agency may be a
data purchaser, but is not the ultimate user." -- "it is diffi-
cult to bill individual users of the satellite data, and it is
appropriate and desirable for the government to support a sub-
stantial portion of the activity out of general revenues.
Interior strongly advocate such support."
government."
materials. The real users are the policy makers in the
There "should be a reexamination of the (OMB) premises that are'.
currently used to assess the overall value of the Landsat
program..." "which are based on the extent to which Federal agen-
cies are able to programmatically defend their specific expen-
ditures for" data. This approach-"does not focus on the'actual
user groups that, benefit from the Landsat progrm or the actual
value to those user groups of the information derived from
Landsat products." "CIA is a "user" agency only in the literal
sense of actually purchasing and working with the Landsat
Defense - "The use of Federal data purchasing costs. .'.does not reflect the
worth of the data to the actual users---those responsible for
national policy and effective U.S. resource allocation."
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NOAA - "Data budgets (by Federal users) are not an accurate reflection
of the Federal interest..." "Land remote sensing technology
offers demonstrated potential for contributing to the growth of
the. gross national product, reducing the nation's dependence on
foreign sources of critical minerals, and providing positive
impacts on the balance of payments. These national benefits are
not measurable. in terms of the data budgets of a few Federal user
agencies."
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LEVEL OF FEDERAL COMMITMENT TO LANDSAT
Interior - "The private sector owner-operator in the near-term will likely
require direct government subsidies or product purchase guaran-
tees that are 5 to 10 times the $ 15 million annual Federal
purchase projections now planned"--"The so-called laissez-faire
approach to private sector transfer (in option 1) "will not
result in serious private interest in the program in this
decade."
"The minimum level commitment (Option 1) poses the risk of not
CIA -
attracting sufficient private sector involvement to ensure con-
tinuation of the Landsat capability.." "An enhanced Federal com-
mitment affords the best opportunity for attracting sufficient
private sector .involvement" to continue and "perhaps improve it
to the point where it could meet or surpass aggressive foreign
competition."--The CIA recommends the Administration's adoption
of Option 2.
Defense "Option 1"..."is unrealistic for it would surely be an insufficient
support level to balance the significant investment costs to be
incurred... while the market is established." "DOD supports the
Option 2 approach.=.as it makes a more reasonable approach to
addressing the issue of the level of government support required
to make the Landsat transfer viable."
NOAA - 'Opposes Option 1--"The Administration's goal of commercializing
land remote sensing from space cannot be achieved"--"insufficient
to encourage the required private sector investment"--"The
currently limited data market... combined with competition from
subsidized foreign systems, poses too large a business risk with
too small a return on investment."--"Federal benefits... from the
derived information, when properly used in national and 'inter-
national policy decision?s far exceeds the agency data budgets--
with ."an economic value of hundreds of millions of dollars" in
any one year in the balance of payments, or in avoidance of
Federal (expenditures)." "NOAA strongly supports the continuation
of the U.S. leadership role in land remote sensing from
space...it believes that the enhanced Federal commitment is
likely to achieve private sector transfer, thus continuing the
public and private benefits" to the nation.
Agriculture - "USDA cannot support any of the options.. .as presently-worded..
To do this would give our implicit approval to an ill-advised
decision to prematurely transfer the land,satellite system to the
private sector." "USDA strongly supports the continuation and
strengthening of the U.S. land remote sensing satellite systems."
"USDA is convinced that it is to the economic advantage of the U.S.
to. make necessary financial commitments to maintain--and even
of data until
it
i
y
nu
upgrade--the Landsat systems to provide cont
omplished."
b
e_aec
a successful transfer of the systems can
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SIMULTANEOUS T?.ANSFER OF WEATHER SATELLITES
Interior - Takes no specific position on two options--"believes that it is pre-
mature and impractical to make any decisions concerning the transfer
of these satellites at this time"--"feel that the issues involved
are too important to be rushed through the policymaking process."
CIA - "The Administration should not consider simultaneous private sector
transfer of both civil weather and land remote sensing systems at
this time"--"there does not appear to be a clear understanding and
identification of the specific civil weather functions that are to
be transferred, or the potential adverse impacts of such transfers."
--"The sequence of activities called for under Option 2 would pro-
vide a better basis for decision making..." ensuring "that a
national policy decision.. .is made after consideration of all the
consequent factors that would affect U.S. interests."
Defense - "DOD strongly opposes linking the civil weather satellites with the
cue ion of _,rN 'SAT transfer to the private sector. We further
believe that the USG should not use the operational weather
satellite systems as the vanguard to apply -76 processes to covern-
:Ent sat- S." "1he_ssue...must be considered within
OO. _
satellite eratiOf
the logic rarad_g n that these s staras and their associated products
are public goods"--"the transfer of civil- weather satellite systems
rouses significant policy cuestions" " riv approach. ..must com letely
explore the policy and national security implications prior to ini-
tiating any (A-76) process..."--"to conduct an incomplete, and
necessarily superficial, short-term study that attempts to- surface
and explore the policy issues is not a sound approach." DOD's posi-
tion is that
o 'Simultaneous private sector transfer of Civil Meteorological
Satellite Systems and the civil LANDSAT system is opposed"
o "If civil weather satellite system transfer must be addressed,
the DOD supports Option 2 vice Option 1."
NOAA - "NOAA strongly supports option 2..." because:
o "The policy issues involved. . .have never been thoroughly
explored. A policy decision of this magnitude should be based
on adequate and coordinated analyses by the concerned Federal
agencies."
o . "weather satellite data are an integral element of the well
coordinated, highly complex and sophisticated weather fore-
casting and warning services provided by" (Federal civil and
military agencies). The impact of commercialization cn
overall U.S. weather service missions should be examined
carefully"
o "Premature initiation of an A-76 study would preclude examina-
tion of other options that might offer larger savings"
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...Option 1 would prematurely come t the Federal Government to
an inadequately defined A-76 study. The weather satellite ser-
vices in question are too important for the issues involved in
their commercialization not to be given serious analyses and
consideration." "NOAA strongly supports option 2."
Agriculture - USDA does not take a position supporting either option as pre-
sently worded. "(T)his Department opposes proposals to take
action to move the weather satellites to the private sector
before all domestic and international implications of such an
action have been carefully studied and appropriate decisions
made." Policy decisions should be made "before a decision'is
made on whether to enter into competitive bidding procedures
required by OMB A-76.... Option 2.. .implicitly assumes that a
decision to enter into competitive bidding procedures, regardless
of the-outcome of any preliminary assessments..."
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