for class A stock, but no such exchange shall be effected which would result in a violation of subsection (d) of this section. If, upon petition by any such carrier, the Commission finds that the corporation has unreasonably denied its approval or attached unreasonable terms and conditions thereto, the Commission may after notice and hearing compel such exchange upon such terms and conditions as the Commission finds reasonable.

(h) Upon application to the Federal Communications Commission by any communications common carrier and upon a finding by the Commission after notice and hearing that the public interest and the purposes of this Act will be advanced thereby, the Commission may compel any communications common carrier which owns class A or class B shares in the corporation to sell to the applicant a number of shares of either or both classes determined by the Commission to be a reasonable number in the light of estimated proportionate use of the corporation's facilities and other factors consonant with the purposes of this Act at a price determined by the Commission to be fair and reasonable. This power shall not be exercised so as to result in a violation of the provisions of subsection (d) of this section.

PURPOSES AND POWERS OF THE CORPORATION

SEC. 305. (a) In order to achieve the objectives and to carry out the purposes of this Act, the corporation is organized to

(1) plan, initiate, construct, own, manage, and operate itself or in conjunction with foreign governments or business entities a commercial communications satellite system.

(2) furnish, for hire, channels of communication to United States communications common carriers and to other authorized entities, foreign and domestic.

(b) Included in the activities authorized to the corporation for accomplishment of the purposes indicated in subsection (a) of this section, are, among others not specifically named

(1) conduct or contract for research and development related to its mission;

(2) acquire the physical facilities and hardware necessary to its operations, including communications satellites, earth stations, and associated ground equipment, whether by construction, purchase, or gift;

(3) purchase satellite launching and related services from the United States Government;

(4) contract with authorized users, including the United States Government, for the services of the communications satellite system;

(5) develop plans for the number and location of earth stations, and for the technical specifications of all elements of the communications satellite system.

(c) The corporation, and not communications common carriers licensed by the Federal Communications Commission, shall own and manage satellite terminal stations located in the United States, its possessions or territories. Both the corporation and communications common carriers may own and manage satellite terminal stations not located in the United States, its possessions, or territories.

(d) To carry out the foregoing purposes, the corporation shall have the usual powers conferred upon a stock corporation by the District of Columbia Business Corporation Act.

TITLE IV-MISCELLANEOUS

APPLICABILITY OF COMMUNICATIONS ACT OF 1934

SEC. 401. The corporation shall be deemed to be a common carrier within the meaning of section 3 (h) of the Communications Act of 1934, as amended, and as such shall be fully subject to the provisions of title II and title III of said Act.

CONDUCT OF FOREIGN NEGOTIATIONS

SEC. 402. The corporation shall not enter into negotiations with any international agency, foreign government, or entity without a prior notification to the Department of State, which will conduct or supervise such negotiations. All agreements and arrangements with any such agency, government, or entity shall be subject to the approval of the Department of State.

SANCTIONS

SEC. 403. (a) If the corporation created pursuant to this Act shall engage in or adhere to any action, practices, or policies inconsistent with the policy and purposes declared in section 102 of this Act, or if the corporation or any other person shall violate any provision of this Act, or shall obstruct or interfere with any activities authorized by this Act, or shall refuse, fail, or neglect to discharge his duties and responsibilities under this Act, or shall threaten any such violation, obstruction, interference, refusal, failure, or neglect, the district court of the United States for any district in which such corporation or other person resides or may be found shall have jurisdiction, upon petition of the Attorney General of the United States, to grant such equitable relief as may be necessary or appropriate to prevent or terminate such conduct or threat.

(b) Nothing contained in this section shall be construed as relieving any person of any punishment, liability, or sanction which may be imposed otherwise than under this Act.

EXHIBIT 6

[S. 2890, 87th Cong., 2d sess.]

A BILL To establish a Communications Satellite Authority to provide for the development of a global communication system, and for other purposes

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That this Act may be cited as the "Communications Satellite Authority Act".

DECLARATION OF POLICY AND PURPOSE

SEC. 2. The Congress hereby declares that in order to promote international cooperation and to foster international understanding and peace, it is the policy of the United States to expand and improve international communications by providing leadership in the establishment of a global communication system at the earliest practicable time and to insure that the benefits of such a system are secured for the betterment of all mankind and all states irrespective of their economic and scientific development. In order to achieve these goals, the Congress hereby provides for ownership of the United States portion of the communications satellite system and invites all nations to participate in the system.

SEC. 3. As used in this Act

DEFINITIONS

(1) The terms "private communications carrier", "common carrier", and "carrier" mean any person engaged as a common carrier for hire, in interstate or foreign communication by wire or radio or in interstate or foreign radio transmission of energy, including persons engaged in radio and television broadcasting. (2) The terms "communications satellite system", "satellite system", and "system" include satellites, ground stations, associated ground control and tracking facilities, and other related facilities comprising a system for global communication by satellite, except that any reference to foreign ownership of a "communications satellite system", "satellite system", or "system" refers only to the satellite portion of the system.

COMMUNICATIONS SATELLITE AUTHORITY ESTABLISHED

SEC. 4. (a) There is hereby created a corporation, to be known as the Communications Satellite Authority (hereinafter referred to as the "corporation"), whose purpose and object shall be to develop, construct, launch, operate, manage, and promote the use of a communications satellite system, and to foster research and development in the field of space telecommunications.

(b) In order to assure a structure of control which will assure maximum possible competition and development of an economical system, the benefits of which will be reflected in oversea communication rates, the corporation shall be organized and operated as a communications common carriers' carrier. It shall acquire, own, and operate, as an agent of the United States Government, the United States portion of the communications satellites, and the ground stations and associated ground control and tracking facilities situated in the United States, territories, or dependencies thereof.

(c) The corporation shall lease communication channels on a nondiscriminatory and equitable basis to all United States carriers authorized by the Federal Communications Commission to provide communications services via satellites, and shall provide facilities for governmental needs, as a part of the commercial system or separately when required to meet unique Government needs which cannot in the national interest be met by the commercial system.

(d) The corporation, under the foreign policy guidance of the President, and pursuant to agreements made by the President with the advice and consent of the Senate, shall provide opportunities for foreign participation in the use of communications satellites, through ownership or otherwise upon an equitable and nondiscriminatory basis.

(e) The corporation under the foreign policy guidance of the President, and pursuant to agreements made by the President with the advice and consent of the Senate, shall provide technical assistance to the less developed states in the development of their comunication facilities so that they may make effective use of communications satellites and become an effective part of a global communication system.

BOARD OF DIRECTORS OF THE CORPORATION

SEC. 5. (a) The board of directors of the corporation (hereinafter referred to as the "board") shall be composed of nine members.

(b) Four directors shall be designated by the President, and shall include an Assistant Secretary of State, the Administrator of the National Aeronautics and Space Administration, a Commissioner of the Federal Communications Commission, and an additional member designated from officers of other departments and agencies of the United States. Directors so designated shall be known as "governmental directors".

(c) Five directors shall also be appointed by the President, by and with the advice and consent of the Senate, solely on the basis of established records of distinguished achievement, from citizens of the United States in private life who are eminent in science, engineering, technology, education, administration, or public affairs. Directors so appointed shall be known as "private directors". The President shall appoint a chairman of the board from the private directors of the board. The chairman shall serve for a term of two years and may be reappointed for one or more adidtional terms as chairman.

(d) The private directors first designated or appointed under this Act shall be designated or appointed for terms expiring two, four, six, seven, and eight years after the effective date of this Act, respectively. Each private member of the board thereafter designated or appointed (other than a member designated or appointed for the unexpired portion of the term of an individual who is one of the initial members of the board) shall have a term of office expiring eight years from the date of the expiration of the term for which his predecessor was appointed.

(e) An private members appointed to fill a vacancy in the board occurring prior to the expiration of the term for which his predecessor was appointed shall be appointed for the remainder of such term.

(f) Each governmental director of the board may designate another officer of his department or agency to serve on the board as his alternate in his unavoidable absence. Each alternate member so designated shall be designated to serve as such by and with the advice and consent of the Senate, unless at the time of his designation he holds an office under the United States Government to which he was appointed by and with the advice and consent of the Senate.

(g) Vacancies in the board shall not impair the powers of the board to execute its functions. Five members shall constitute a quorum for the transaction of the business of the board.

(h) Each private director shall receive compensation at the rate of $22,500 per annum, which compensation shall be paid by the corporation from funds of the corporation. Each governmental director while serving as such shall receive the compensation provided by law for the office held by him in the department or agency of the United States from which he was selected. If the compensation so received by any governmental director does not equal the compensation received by private directors, that governmental director shall be paid from funds of the corporation an additional amount which, when combined with the compensation so received, will equal the compensation received by private directors. Nothing contained in this section shall be construed to reduce

the compensation provided by law for any governmental director in his capacity as an officer of a department or agency of the United States.

(i) Members of the board while engaged in the performance of duties of the board shall receive from funds of the corporation necessary travel expenses and a per diem allowance in lieu of subsistence computed in accordance with the provisions of section 5 of the Administrative Expenses Act of 1946 (5 U.S.C. 73b-2).

(j) Members of the board who are private directors shall during their continuance in office devote their full time to the work of the corporation.

(k) No director may have any financial interest in any communication carrier corporation engaged in the business of "wire communications" or "radio communications" as defined in the Communications Act of 1934, as amended.

(1) A director may be removed from the board by the President upon a determination by the President, after notice and an opportunity for hearing, that such director has been guilty of malfeasance or nonfeasance in the performance of his duties as a director.

(m) Each member of the board, before entering upon the duties of his office, shall subscribe to an oath or affirmation to support the Constitution of the United States and to faithfully and impartially perform the duties imposed upon him by this Act.

DUTIES OF THE BOARD

SEC. 6. (a) The board shall

(1) formulate all policies and programs for the development, construction, launching, operation, management, and promotion of the United States portion of the satellite communication system;

(2) foster research and development in the field of space telecommunications; and

(3) formulate policies and programs which will assist newly developing countries, and provide an effective global system as soon as practicable. (b) The board shall

(1) meet upon the call of the chairman, but not less than once in each month; and

(2) direct the exercise of all the powers of the corporation.

EXECUTIVE SECRETARY

SEC. 7. (a) The board, without regard to the civil service laws, shall appoint an executive secretary from civilian life, who shall receive compensation at the rate of $20,500 per annum. Under the supervision and direction of the board, the executive secretary shall be responsible for the execution of all programs and policies formulated by the board, and shall have administrative control over all personnel and activities of the corporation unless otherwise specified in this Act.

(b) The board, without regard to the civil service laws, shall appoint such other officers, employees, attorneys, and agents of the corporation as may be necessary for the performance of its duties; shall fix their compensation and define their duties; shall require bonds of such of them as the board may designate; and shall prescribe rules and regulations to fix responsibility and to promote efficiency in the operations of the corporation.

(c) The board, without regard to the civil service laws, shall appoint a treasurer and such assistant treasurers as it may deem necessary, each of whom shall give such bonds for the safekeeping of the securities and moneys of the corporation as the board may require.

(d) Any appointee of the board may be removed in the discretion of the board. No officer or employee of the corporation shall receive compensation at any rate in excess of that of members of the board.

(e) In the appointment of officials and the selection of employees for said corporation, and in the promotion of any such employee or official, no political test or qualification shall be permitted or given consideration. All such appointments and promotions shall be based exclusively upon merit and efficiency. Any member of the board who is determined by the President, after notice and opportunity for hearing, to be guilty of a violation of this subsection shall be removed from office. Any appointee of the board who is determined by the board after notice and opportunity for hearing, to be guilty of a violation of this subsection shall be removed by the board from his office or employment in the corporation.

COOPERATION OF NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

SEC. 8. (a) The corporation is hereby authorized

(1) to cooperate with the National Aeronautics and Space Administration for the purpose of obtaining launch vehicles for the satellite system which will facilitate an economical and efficient development of an operational system, launching the satellites and associated services, and consulting with the National Aeronautics and Space Administration on the technical specifications for satellites and ground stations and the location of such stations; and

(2) to consult with the National Aeronautics and Space Administration for the purpose of coordinating all research and development programs carried out by the Corporation with research and development programs carried out by private aerospace corporations, private communications carriers, other corporations, and governmental departments and agencies under the supervision of the National Aeronautics and Space Administration in order to guarantee rapid and continuous scientific technological progress in a global communication system.

(b) The National Aeronautics and Space Administration is authorized and directed to furnish to the corporation such facilities, services, supplies, and information as the corporation may require for the performance of its duties. Any expenses so incurred by the National Aeronautics and Space Administration on behalf of the corporation shall be reimbursed by the corporation from its funds. Any sums so received by the Administration shall be credited to the current appropriations of the Administration, and shall be available to the Administration for obligation and expenditure within the fiscal year in which such sums are received.

COOPERATION OF FEDERAL COMMUNICATIONS COMMISSION

SEC. 9. (a) The Federal Communications Commission is authorized and directed to

(1) render to the corporation such assistance as may be required to insure that the communications satellite system established by the corporation will be technically compatible with and operationally interconnected with existing terrestrial communication facilities; and

(2) establish such rules and regulations as may be required to regulate all overseas communication rates established by private communication carriers for the use of facilities of the communications satellite system, and to insure that all such rates are reasonable and related to the cost of leasing channels from the corporation.

(b) Under such rules and regulations as it shall prescribe, the Federal Communications Commission shall determine the eligibility of United States communications carriers to use the communications channels provided by the corporation, and shall insure equitable and nondiscriminatory access to the system by present and future authorized private communications carriers.

ASSISTANCE FROM OTHER GOVERNMENT AGENCIES

SEC. 10. (a) The board is hereby authorized to obtain from any department, agency, or instrumentality of the United States with the consent of the head thereof, such facilities, services, supplies, advice, and information as the corporation may determine to be required to enable it to carry out its duties. So far as practicable, the corporation shall utilize the facilities and services of such departments, agencies, and instrumentalities.

(b) Under the direction of the President, each such department, agency, and instrumentality shall furnish to the corporation, upon a reimbursable basis, such facilities, services, supplies, advice, and information as the corporation may require for the performance of its obligations.

(c) Any invention or discovery made by any officer or employee of the corporation in consequence of the performance of his duties, or by any officer or employee of the Government of the United States in the rendition of service for the corporation, and title to any patent which may be granted thereon, shall be the sole and exclusive property of the corporation. The corporation is authorized to grant under any such patent such licenses as may be authorized by the board. The board may authorize the payment to any such inventor such sums from the income received by the corporation from the sale of licenses under the patent granted for his invention as it deems proper.