certificates of indebtedness of the corporation as a communications common carrier may own shall be eligible for inclusion in the rate base of the carrier to the extent allowed by the Commission. The voting stock of the corporation shall not be eligible for inclusion in the rate base of the carrier.

(d) Not more than an aggregate of 20 per centum of the shares of stock of the corporation authorized by subsection (a) of this section which are held by holders other than authorized carriers may be held by persons of the classes described in paragraphs (1), (2), (3), (4), and (5) of section 310 (a) of the Communications Act of 1934, as amended (47 U.S.C. 310).

(e) The requirement of section 45 (b) of the District of Columbia Business Corporation Act (D.C. Code, sec. 29-920 (b)) as to the percentage of stock which a stockholder must hold in order to have the rights of inspection and copying set forth in that subsection shall not be applicable in the case of holders of the stock of the corporation, and they may exercise such rights without regard to the percentage of stock they hold.

(f) Upon application to the Commission by any authorized carrier and after notice and hearing, the Commission may compel any other authorized carrier which owns shares of stock in the corporation to transfer to the applicant, for a fair and reasonable consideration, a number of such shares as the Commission determines will advance the public interest and the purposes of this Act. In its determination with respect to ownership of shares of stock in the corporation, the Commission, whenever consistent with the public interest, shall promote the widest possible distribution of stock among the authorized carriers.

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 authorized 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; and

(3) own and operate satellite terminal stations when licensed by the Commission under section 201 (c) (7).

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

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

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

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

(5) to develop plans for the technical specifications of all elements of the communications satellite system.

(c) 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 that Act. The provision of satellite terminal station facilities by one communication common carrier to one or more other communications common carriers shall be deemed to be a common carrier activity fully subject to the Communications Act. Whenever the application of the provisions of this Act shall be inconsistent with the application of the provisions of the Communications Act, the provisions of this Act shall govern,

NOTICE OF FOREIGN BUSINESS NEGOTIATIONS

SEC. 402. Whenever the corporation shall enter into business negotiations with respect to facilities, operations, or services authorized by this Act with any international or foreign entity, it shall notify the Department of State of the negotiations, and the Department of State shall advise the corporation of relevant foreign policy considerations. Throughout such negotiations the corporation shall keep the Department of State informed with respect to such considerations. The corporation may request the Department of State to assist in the negotiations, and that Department shall render such assistance as may be appropriate.

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, except as otherwise prohibited by law, 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.

(c) It shall be the duty of the corporation and all communications common carriers to comply, insofar as applicable, with all provisions of this Act and all rules and regulations promulgated thereunder.

REPORTS TO THE CONGRESS

SEC. 404. (a) The President shall transmit to the Congress in January of each year a report which shall include a comprehensive description of the activities and accomplishments during the preceding calendar year under the national program referred to in section 201(a)(1), together with an evaluation of such activities and accomplishments in terms of the attainment of the objectives of this Act and any recommendations for additional legislative or other action which the President may consider necessary or desirable for the attainment of such objectives.

(b) The corporation shall transmit to the President and the Congress, annually and at such other times as it deems desirable, a comprehensive and detailed report of its operations, activities, and accomplishments under this Act.

(c) The Commission shall transmit to the Congress, annually and at such other times as it deems desirable, (i) a report of its activities and actions on anticompetitive practices as they apply to the communications satellite programs; (ii) an evaluation of such activities. and actions taken by it within the scope of its authority with a view to recommending such additional legislation which the Commission may consider necessary in the public interest; and (iii) an evaluation of the capital structure of the corporation so as to assure the Congress that such structure is consistent with the most efficient and economical operation of the corporation.

Approved August 31, 1962, 9: 51 a.m.

Statement by President Kennedy Upon Signing the Communications-Satellite Act, August 31, 1962 1

I am today signing H.R. 11040, the Communications Satellite Act of

1962.

By enacting this legislation, Congress has taken a step of historic importance. It promises significant benefits to our own people and to the whole world. Its purpose is to establish a commercial communications system utilizing space satellites which will serve our needs and those of other countries and contribute to world peace and understanding. This objective is to be accomplished through the joint efforts of private individuals and concerns, and agencies of the Federal Government.

The satellite corporation authorized by the Act will establish and operate the United States portion of the new communications sys

1 White House Press release, Aug. 31, 1962.

In a few days I will send to the Senate for confirmation a list of the incorporators of this enterprise.

The statute provides many safeguards to protect the public interest. No single company or group will have the power to dominate the corporation. The general public, the communications industry, and the Federal Government all will have a voice. All will contribute their resources, and all may reasonably hope to benefit. In this way, the vigor of our competitive free enterprise system will be effectively used in a challenging new activity on the frontier of space.

The benefits which a satellite system should make possible within a few years will stem largely from a vastly increased capacity to exchange information cheaply and reliably with all parts of the world by telephone, telegraph, radio and television. The ultimate result will be to encourage and facilitate world trade, education, entertainment, and many kinds of professional, political, and personal discourse which are essential to healthy human relationships and international understanding.

Better and less expensive communications, like better and less expensive transportation, are vital elements in the march of civilization. This legislation will, by advancing the peaceful and productive use of space, help to accelerate that march, and I extend appreciation to the Members of Congress who worked so hard to secure passage of a very effective piece of legislation.

Address by the Deputy Secretary of Defense (Gilpatric) at a Meeting of Midwestern Industry and University Representatives, September 5, 19621

[Extract]

Speaking of sophisticated weapons, there has been as you all know, a good deal of public discussion recently about our military space program. If I may interrupt for a few moments my main theme, I should like to say something to you about this program.

On December 20, 1961, the United States sponsored the unanimous adoption of UN General Assembly Resolution 1721.2 This Resolution, which recognized the common interest of mankind in furthering the peaceful uses of outer space and which expressed the belief that space should be used only for the betterment of mankind, established the principle that outer space and celestial bodies are free for exploration and use by all states in conformity with international law and the charter of the UN and are not subject to national appropriation. We see no reason to change our position about this Resolution. The United States believes that it is highly desirable for its own security and for the security of the world that the arms race should not be extended into outer space, and we are seeking in every feasible way to achieve that purpose. Today there is no doubt that either the United States or the Soviet Union could place thermonuclear weapons

1 Department of Defense news release 1426-62, Sept. 5, 1962, pp. 3-4;

Ante, p. 225.

in orbit, but such an action is just not a rational military strategy for either side for the foreseeable future.

We have no program to place any weapons of mass destruction into orbit. An arms race in space will not contribute to our security. I can think of no greater stimulus for a Soviet thermonuclear arms effort in space than a United States commitment to such a program. This we will not do.

At the same time that we are pursuing cooperative scientific efforts in space through the United Nations and otherwise, we will of course take such steps as are necessary to defend ourselves and our allies, if the Soviet Union forces us to do so. This is in accordance with the inalienable right of self-defense confirmed in the United Nations charter. We now have an active and extensive military space program, addressed to two objectives:

First, as part of our overall Defense effort, we have continuing programs to ensure that the United States will be able to cope with any military challenge in outer space. Our programs in this area are under constant review, and this review indicates that our present rate of effort is entirely adequate.

Second, as a part of our national space program, we in the Defense Department, along with NASA, are actively exploring the potentialities of outer space as a useful part of our expanding universe. We are developing through activities in space and observations from space our ability to improve our capabilities in fields such as communications, navigation, meteorology, mapping and geodesy. Many branches of industry are contributing to this endeavor by improving propulsion, electronic, photographic, communications and other components of systems for space research and utilization. These programs have great significance not only for our military forces but for the economic and scientific advance of the United States and of the whole world. The progress that they represent, like all scientific advances, is neutral in its political and moral content. We all recognize that the atom can provide energy for peace or for war. A navigational satellite in outer space can guide a submarine as well as a merchant ship.

We are conducting our national missile and space program with the maximum openness consistent with national security. We register with the United Nations each space launching. I only wish the Soviets would be as open about all their military activities as we are about

ours.

News Release by the National Aeronautics and Space Administration on Joint United States - Italian Space Experiments, September 6, 1962 1

The Vice President of the United States Lyndon Johnson and the Foreign Minister of Italy Attilio Piccioni signed and exchanged notes on September 5 confirming the recently signed Memorandum of Understanding for a joint US-Italian cooperative program for the peaceful exploration of space.

1 National Aeronautics and Space Administration news release 62-192, Sept. 6, 1962.