Thank once again for your patience in letting me present these views, both in person and in this letter. Very truly yours, HOWARD J. AIBEL, Antitrust and Government Regulatory Counsel. Mr. BEN F. WAPLE, ITT WORLD COMMUNICATIONS INC., Secretary, Federal Communications Commission, DEAR MR. WAPLE: We refer to your letter of September 28 regarding the letter to General Starbird of September 9, over my signature, in which you ask for "full amplification” regarding certain "representations” made in the September 9 letter. Discussions and correspondence with the overseas correspondents of this company are continuous, as is true, we are sure, with respect to our competitors. Such recent discussions and correspondence in the past few months which have reference to the matters referred to in our letter of September 9 and yours of September 28 were and continue to be of an exploratory and preliminary nature, not as yet, in our opinion, requiring a report pursuant to Section 43.52. As a result of discussions which have been had with our overseas correspondents, we are confident that we are in a position to establish the arrangements referred to in my September 9 letter. However, those discussions were general in nature and cannot properly be called "negotiations" within the meaning of Section 43.52. Nonetheless, and in view of your inquiry, we are pleased to summarize the bases for the statements you refer to in our letter of September 9. In early June of this year, Mr. Hennings and I engaged in discussions in Sydney, Australia with executives of the OTC looking toward a subsequent agreement for interconnection of the ITT World Communications Pacific cable system complex with that of SEACOM (and COMPAC). These discussions were continued in New York in mid-July. Communications via satellite was a topic of general discussion in these meetings. The present and future facility requirements of NASA (including those for the Apollo program) were discussed freely to the extent both of us had information. The OTC expressed its willingness and desire, as a connecting carrier and partner, to meet us (ITT) with any and all requirements we have or may have in the future with respect to NASA needs, as they may be awarded to ITT in the competitive U.S. market. In mid-August of this year, Mr. Hennings and I engaged in discusions in London separately with the BPO and C&W regarding matters of mutual concern and interest. Important among these were possible plans in connection with the South Atlantic cable systems including links between the Virgin Islands, Antiqua and Ascension. In addition the plans for the establishment of an earth station at Ascension were discussed. Requirements by NASA for communication facilities, in this area, as we then understood them, played a part in these discussions. These discussions are continuing but have not yet reached the point for more formal reporting to the Commission. During a trip which I made to Europe in August, I engaged in correspondence either directly or through representatives, with officials in Spain particularly concerning the then indicated requirement by NASA for its Apollo program for facilities connecting with the Canary Islands via an earth station at that point. Assurance was received of cooperation by the Spanish operating entity in the event that ITT was successful in receiving an award from NASA to meet its requirements. Thus, we believe that we are indeed in a "firm position to establish arrangements with foreign entities which are planning to operate ground stations," as I stated in my letter of September 9 to General Starbird; however, we have not engaged in negotiations looking toward the establishment of such arrangements and will only do so when we have the details of NASA's specific communications needs. When such negotiations are undertaken, we shall advise the Commission in accord with Section 43.52. We trust that the foregoing amplification will satisfactorily reply to your letter of September 28. Very truly yours, B. B. TOWER. NATIONAL COMMUNICATIONS SYSTEM, ITT WORLD COMMUNICATIONS, INC., DEAR MR. TOWER: Thank you for your letter of September 9th which offered the services of ITT World Communications to provide communications for National Aeronautics and Space Administration's Apollo Program. NASA requested that the Manager, NCS, initiate discussions with the Communications Satellite Corporation (COMSAT) on its behalf, to determine that corporation's capability and cost of meeting NASA's requirements for certain communications in support of the Apollo Program. Since the space segment of the system was the key element in meeting the NASA requirement, and since COMSAT is the only commercial carrier currently authorized to provide the satellites necessary for the space segment, it was felt that the interest of the Government would be best served by seeking direct arrangements with that Corporation for the system in accordance with NASA's request. It is assumed of course that the capabilities of ITT, and other companies, will be considered in respect to the provision of related services. Proposals relating to these should be made to the COMSAT Corporation or NASA as appropriate. Sincerely, ALFRED D. STARBIRD, Lieutenant General, USA, Manager. OCTOBER 13, 1965. Mr. EDMOND C. BUCKLEY, Director, Office of Tracking and Data Acquisition, National Aeronautics and Space Administration, Washington, D.C.: In my letter to you dated August 6, 1965, we outlined to you a plan encompassing communications by submarine cables and by communications satellites in support of NASA requirements for the Apollo program. Part of this plan was the establishment of a satellite earth station in Puerto Rico. This plan was referred to by Mr. Tower in his letter to General Starbird of September 9. In view of your accelerated schedule for Apollo circuits which will call for a satellite system by 1966 we are prepared to proceed forthwith to establish the Puerto Rico station to meet this schedule, first with portable equipment presently available and later with a permanent installation. The Puerto Rico station could handle the circuits from Ascension, Canary Islands, and the Atlantic and Indian Ocean tracking ships. From Puerto Rico to the mainland the circuits could be routed through available cable systems, such as the Air Force established cable between Cape Kennedy and Puerto Rico, the capacity of which is presently being enlarged. ITT proposes to establish the Puerto Rican earth station at no cost to the Government. ITT will quote to the Government channel lease costs as soon as charges for space segment utilization are made available by the International Satellite Consortium and by Comsat. An indication on your part of interest in this proposal would no doubt make these changes available to us at the earliest possible date. This proposal is subject to the FCC granting a construction permit for the Puerto Rico station and to the Commission approval of the channel lease rates. I would appreciate an opportunity to discuss this proposal with you at your convenience at the earliest possible date. G. S. MAUKSCH, Director, Advanced Planning, ITT World Communications, Inc. NATIONAL AERONAUTICS AND SPACE ADMINISTRATION, Washington, D.C., October 20, 1965. Mr. G. S. MAUKSCH, Director, Advanced Planning, 1.T. & T. World Communications, Inc., New York, N.Y. DEAR MR. MAUKSCH: I have received your message of October 13, 1965, relating to your proposal to provide a communications satellite terminal at Puerto Rico to communicate with Ascension Island and the Canary Islands through a communications satellite. As General Starbird stated in his recent reply to Mr. Towers' letter of September 9, 1965, to which you refer in your message, “*** the space segment of the communications satellite system is the significant element in meeting the NASA Apollo requirements. Since the Communications Satellite Corporation is the only commercial carrier currently authorized to provide the satellites necessary for the space segment, it was concluded that the Government's interest would best be served by seeking direct arrangements with the Corporation for a system which would be capable of fulfilling NASA's requirements. "Moreover, one of NASA's desires is in having communications from foreign stations reach the continental United States by the most direct means possible. The use of a satellite terminal in Puerto Rico would require additional cable links from that station to the United States." Accordingly, NASA has, at the request of the Executive Agent, National Communications System, entered into negotiations with the Communications Satellite Corporation to provide communications services from the United States to various foreign locations and to the Apollo tracking ships. The Corporation has, in turn, been discussing the foreign stations with their foreign partners in the International Satellite Consortium. Because of the extremely short time schedule for establishing this service, it is essential that these negotiations be carried out with the Corporation immediately. I thank you for your interest in this matter. EDMOND C. BUCKLEY, Director, Tracking and Data Acquisition. Mr. HOLIFIELD. Tomorrow we will have the FCC before the committee. The meeting stands adjourned. (Whereupon, at 12: 20 p.m., the committee adjourned, to reconvene at 10 a.m., on Wednesday, September 14, 1966.) GOVERNMENT USE OF SATELLITE COMMUNICATIONS WEDNESDAY, SEPTEMBER 14, 1966 HOUSE OF REPRESENTATIVES, SUBCOMMITTEE ON MILITARY OPERATIONS OF THE COMMITTEE ON GOVERNMENT OPERATIONS, Washington, D.C. The subcommittee met, pursuant to recess, at 10 a.m., in room 2247, Rayburn Office Building, Hon. Chet Holifield (chairman of the subcommittee) presiding. Present: Representative Chet Holifield. Also present: Herbert Roback, staff administrator; Douglas G. Dahlin, counsel; Paul Ridgely, investigator; Joseph Luman, defense analyst; and J. P. Carlson, minority staff: Mr. HOLIFIELD. The committee will be in order. We will continue our hearings on communications satellite problems. Our first witness today is Mr. Bernard Strassburg, Chief of the Common Carrier Bureau, Federal Communications Commission. Mr. Strassburg, you may proceed. STATEMENT OF BERNARD STRASSBURG, CHIEF, COMMON CARRIER BUREAU, FEDERAL COMMUNICATIONS COMMISSION; ACCOMPANIED BY ASHER H. ENDE, DEPUTY CHIEF, COMMON CARRIER BUREAU; AND HENRY GELLER, GENERAL COUNSEL, FEDERAL COMMUNICATIONS COMMISSION Mr. STRASSBURG. Thank you, Mr. Chairman. I am very pleased to be here. I would like to introduce the gentlemen who are here with me to assist the committee. On my left here is Mr. Henry Geller, who is the Commission's General Counsel, and Mr. Asher H. Ende, who is my Deputy in the Common Carrier Bureau. We are glad to have the opportunity to appear before this committee and to discuss the manner in which the Commission has been discharging certain responsibilities entrusted to it by the Congress with respect to the regulation of the communications common carrier industry. In preparing this statement we have endeavored to focus primarily on those matters which appear to be of concern to this committee in these hearings. Such matters embrace the relationships of the Communications Satellite Corp. to the other common carriers in the industry; certain policies formulated and followed by the Commission in its regulation to those relationships; and the effect of such policies upon the procurement by the U.S. Government of communications satellite services. In particular your committee has expressed interest in the Commission's so-called "authorized user" decision and the recently |