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Pending possible resolution of this matter along the lines outlined herein, we have no choice but to pursue our present course of action in promoting the joint application for a southeastern station with our co-applicants and in opposing exclusive single-entity stations.

Copies of this letter are being sent to all organizations named herein together with those business and labor leaders concerned with overseas telecommunications named in the report and recommendations to Senate and House Commerce Committees of April 1966 by the Intragovernmental Committee on International Telecommunications (see attachment). All interested organizations are respectfully requested to communicate their views to the Commission concerning the suggestions in this letter. Very truly yours,

E. A. GALLAGHER. Attachment.

ATTACHMENT

Mr. Joseph A. Beirne, president, Communications Workers of America, 1923

K Street NW., Washington, D.C. Mr. Harold S. Geneen, president, International Telephone & Telegraph Corp.,

320 Park Avenue, New York, N.Y. Mr. Douglas S. Guild, president, Hawaiian Telephone Co., Post Office Box 2200.

Honolulu, Hawaii. Mr. Elmer L. Hageman, president, Commercial Telegraphers Union, 1025 Du

pont Circle Building, Washington, D.C. Mr. Howard R. Hawkins, president, RCA Communications, Inc., 66 Broad

Street, New York, N.Y. Mr. Frederick R. Kappel, chairman, American Telephone & Telegraph Co., 195

Broadway, New York, N.Y. Mr. James McCormack, chairman, Communications Satellite Corp., 1900 L

Street NW., Washington, D.C. Mr. Russell W. McFall, president, the Western Union Telegraph Co., 60 Hudson

Street, New York, N.Y. Mr. James R. McNitt, president, ITT World Communications Inc., 67 Broad

Street, New York, N.Y. Mr. Peter A. Nenzel, president, United States Independent Telephone Associa

tion, 425 13th Street NW., Washington, D.C. Gen. David Sarnoff, chairman, Radio Corp. of America, 30 Rockefeller Plaza,

New York, N.Y. Mr. Joseph P. Selly, president, American Communications Association, 18 John

Street, New York, N.Y.

EXHIBIT B

RECOMMENDATION BY WESTERN UNION INTERNATIONAL FOR A SATELLITE

INDUSTRY LIAISON COMMITTEE

SATELLITE INDUSTRY LIAISON COMMITTEE

Western Union International, Inc. (WUI) has recommended to the Federal Communications Commission that an industry committee be established under the aegis of the Commission for the purpose of creating an effective liaison between the American international carriers and the Communications Satellite Corp. (Comsat). Such a committee would, in WUI's opinion, facilitate greater cooperation in satellite matters by all communications entities, promote optimum utilization of satellite channels and redound to the benefit of the public. Without this committee, the international carriers are unable to stay abreast of satellite developments, are not in a position to intelligently negotiate with their overseas correspondents who are usually better informed regarding satellite programs, and are unable to plan effectively for future satellite and cable coordination.

WUI first proposed the establishment of an industry liaison committee on January 4, 1965, in its “Comments" filed with the Commission in its satellite earth station proceeding. WUI has consistently called for the creation of such a committee in nearly every pleading filed with the Commission relating to satellite matters—the last occasion being in WUI's letter of June 1, 1966, to the Commission.

There are attached hereto copies of correspondence between the Commission and the members of the industry regarding WUI's proposal for the establishment under the aegis of the Commission of an industry committee to coordinate the use of, and the planning for, satellite communications channels.

All of the carriers agreed with WUI's objective of obtaining an effective liaison-except Comsat which found no merit in WUI's suggestion.

FEDERAL COMMUNICATIONS COMMISSION,

Washington, D.C., March 9, 1966. [Addressee.]

GENTLEMEN : Western Union International (WU'I) has informally renewed suggestions proposed in certain filings made by it with the Commission that consideration be given to the establishment of an industry committee under the aegis of the Commission for the purpose of creating effective liaison between the Communications Satellite Corp. and the other U.S. international carriers.

WUI has indicated that in its opinion such a committee would permit the other U.S. international carriers to be currently informed on satellite communications developments, to negotiate more intelligently with their overseas correspondents and to plan effectively for future satellite and cable coordination.

The Commission believes it could more adequately evaluate the WUI proposal if it had the views of Comsat and the other international carriers as to whether in their opinion establishment of such an industry committee is the best method for accomplishing the desired results.

Accordingly, we would appreciate receiving any comments you may wish to make in regard to the above proposal. Very truly yours,

BEN F. WAPLE, Secretary.

ITT WORLD COMMUNICATIONS, INC.,

March 22, 1966. Mr. Ben F. WAPLE, Secretary, Federal Communications Commission, Washington, D.C.

DEAR MR. WAPLE: This is in reply to your letter of March 9, 1966 (your reference 9120), concerning the suggestion of Western Union International that consideration be given to the establishment of an industry committee under the aegis of the Commission for the purpose of creating effective liaison between Comsat and the U.S. international carriers.

It is our view that such a committee would serve a most useful purpose in keeping all of those U.S. carriers concerned with the establishment and use of the international satellite communications system up to date with respect to current developments and arrangements which affect their operations. There have been many meetings between an individual carrier or several carriers and Comsat with respect to specific problems. However, such meetings have been sporadic and for the most part related to detailed problems rather than a general exchange of ideas and information which would be useful in advancing our national interests in the communications satellite field. Frequently the carriers learn of a development, arrangement, or negotiation which affects their use of the satellite system and their relationships abroad only through their foreign correspondents or publicity after the fact, having had no opportunity to express their point of view before a technique was adopted or an apparent U.S. position was expressed.

In view of the highly competitive situation among the carriers in this country and the availability of satellites and cables as alternative media, we agree with WUI that a vehicle should be established which would permit the public carriers who must work directly with the foreign correspondents to be fully aware of Comsat's activities in the development of the satellite system and, obviously, it is equally important for Comsat to be aware of the carriers' plans for its use. In addition, we believe it would be of value to the Commission in fulfilling its responsibilities under the Satellite Act and the Communications Act to have the views of such a committee with respect to the problems which arise, particularly during the early development stages of the system. Very truly yours,

JOHN A. HARTMAN, Jr.

AMERICAN TELEPHONE & TELEGRAPH Co..

March 29, 1966. Mr. Ben F. WAPLE, Secretary, Federal Communications Commission,

unicat Washington, D.C.

DEAR MR. WAPLE: This is in reply to your letter of March 9, 1966, requesting our comments on the proposal of Western Union International that consideration be given to the establishment of an industry committee under the aegis of the Commission for the purpose of creating effective liaison between the Communications Satellite Corp. and the U.S. international carriers.

We find it difficult to comment on WUI's suggestion without knowing more about the aims and functions of the industry committee. If its purpose, as your letter indicates, is to keep the U.S. international carriers currently informed on satellite developments, then it would seem that this could be accomplished by periodic briefings by Comsat of representatives of the members of the industry and that no industry committee would be needed. If, however, it is contemplated that the proposed committee would take joint action with respect to Comsat or otherwise, then obviously much more would need to be known before we can assist the Commission in evaluating the proposal.

A closer rapport between Comsat and the international carriers is a worthwhile objective, and we would be glad to participate in any program which seems likely to achieve it without limiting the independence of the participants. We also venture to suggest that the early delineation of Comsat's role as that of a common carrier's common carrier could considerably assist the bringing about of a closer working relationship between the international carriers and Comsat. Very truly yours,

H. M. BOTKIN.

COMMUNICATIONS SATELLITE CORP.,

March 29, 1966. Mr. BEN F. WAPLE, Secretary, Federal Communications Commission, Washington, D.O.

DEAR MR. WAPLE: Your letter of March 8, 1966, has asked for the comments of this Corporation on the informal sugestion of Western Union International (WUI) that there be established an "industry committee under the aegis of the Commission for the purpose of creating effective liaison between the Communications Satellite Corporation and the other U.S. international carriers." The suggestion made by WUI indicates only vaguely the nature and function of the proposed committee. However, under whatever assumptions may be made as to the scope of WUI's suggestion, we believe that it is neither necessary nor appropriate to establish such a committee.

Comsat is in the business of selling the use of satellite channels and services for communication purposes, and it is in its interest to promote such use. It is fully aware of the necessity for keeping its potential customers informed of developments in the field of satellite communications. To this end, it has an active marketing staff which is in constant communication with representatives of the U.S. international carriers. Furthermore, Comsat's management, as well as top-level personnel in the technical and operating departments, confer frequently with their counterparts in other companies. We recently held a meeting, to which all U.S. international carriers were invited, at which Comsat made a presentation as to plans for the development of the global satellite system. We anticipate that from time to time, as circumstances indicate the need therefore, further similar presentations will be made. Furthermore, as WUI and the other U.S. international carriers are aware, Comsat will gladly continde to confer with WUI or any other carrier in order to provide it with relevant information which it desires in the development of its own program.

The proposal formally to establish a committee under the aegis of the Commission carries with it the implication that the committee would have powers to make recommendations or take action with respect to Comsat activities. The intrusion of such a committee in Comsat operations is not justified either in law or in fact.

Effective liaison can best be accomplished in the context of the ordinary day-to-day contacts between Comsat and its potential customers rather than through the formalistic machinery of an industry committee. Accordingly, for the reasons indicated above, we fined no merit in WUI's suggestion. Yours very truly,

JOSEPH V. CHARYK.

RCA COMMUNICATIONS, INC.,

April 6, 1966. Mr. BEN F. WAPLE, Secretary, Federal Communications Commission, Washington, D.C.

DEAR SIR: This is in reply to your letter of March 9, 1966 (reply reference 9120) requesting comments on the proposal of Western Union International, Inc., for the establishment of an industry committee under the aegis of the Commission for the purpose of creating effective liaison between Communications Satellite Corporation and the U.S. international carriers.

Current and complete information with respect to satellite communications developments and Comsat's plans is, of course, essential to enable the international carriers to plan effectively and to satisfy additional requirements for communications services. Comsat's program and plans must be integrated with those of the international carriers if we are to promote the maximum development and use of satellite communications.

We believe that Comsat has a unique responsibility to make such information available to the international carriers because of its special role in the development, establishment, and operation of the communications satellite system. It would also be to Comsat's advantage to provide such information to the international carriers and thereby encourage them to make the maximum use of its services and the new technology.

In the past there have been times when liaison was effective between Comsat and the international carriers. During negotiation of the consortium agreements in 1964, Comsat regularly briefed the international carriers on the progress of the negotiations, and opportunity was afforded for the exchange of views. This was helpful and contributed to the total effort. Recently, Comsat briefed the industry generally on certain plans with respect to the establishment of a global system.

It has been our experience, however, that others have had more complete and current information at times than we have had with respect to Comsat's program and plans for satellite communications.

Presently there are three international carriers which have representatives who are members of the Board of Directors of Comsat. To the extent that they receive knowledge of Comsat's plans and program that is not equally furnished by Comsat to the other international carriers they are of course in a preferred position and have competitive advantages. These advantages are likely to become more severe as Comsat proceeds with its program and implementation of its plans on a global scale.

An industry liaison committee could be helpful in neutralizing such advantages, but it would not itself meet this problem. Instead, it will be necessary for Comsat to make available to all international carriers the same information now given to certain international carriers and operating agencies with respect to its program and plans for satellite communications. Cooperation in this manner would avoid a question of discrimination and promote satellite communications in the national interest.

Though the establishment of such a committee could result in better liaison between Comsat and the internacional carriers, the effectiveness of the committee would depend on its nature and functions. Comsat's full cooperation also would be required.

While such a committee would not adequately meet the problems as indicated above, we desire the opportunity to participate in any liaison committee under the aegis of the Commission. We assume that establishing a committee of this nature would not inhibit or displace individual liaison between Comsat and the international carriers wherever necessary and desirable. Very truly yours,

LEONARD W. TUFT.

HAWAIIAN TELEPHONE Co.,

April 13, 1966. Mr. BEN F. WAPLE, Secretary, Federal Communications Commission, Washington, D.C.

DEAR Sir: This is in reply to your letter of March 9, 1966 (reply reference 9120) requesting comments on the proposal of Western Union International, Inc., for the establishment of an industry committee under the aegis of the Commission for the purpose of creating effective liaison between Communications Satellite Corporation and the U.S. international carriers.

We agree that there should be a closer rapport between Comsat and the international carriers but we believe this can be accomplished without the creation of a formal committee. If Comsat will follow a policy of briefing the international carriers on satellite communications developments and plans prior to taking a final position and submitting concrete proposals to the FCC, WUI's objective. with which we concur, should be attained. Very truly yours,

D. S. GUILD.

WESTERN UNION INTERNATIONAL, INC.,

June 1, 1966.

Secretary

, Federal communications Commission

Washington, D.C.

DEAR MR. WAPLE: On March 9, 1966, the Commission addressed letters to interested parties inviting them to comment upon the suggestion by Western Union International, Inc., for the establishment of an industry committee under the aegis of the Commission for the purpose of creating effective liaison between the Communications Satellite Corporation and the U.S. international public service carriers. WUI has obtained copies of responses to the Commission's letter from ITT World Communications, Inc., dated March 22, 1966, from American Telephone & Telegraph Co. dated March 29, 1966, from Comsat dated March 29, 1966, from RCA Communications, Inc., dated April 6, 1966 and from Hawaiian Telephone Co. dated April 13, 1966.

All of the foregoing respondents agreed with WUI's objective of obtaining an effective liaison between Comsat and the public service carriers. Both AT. & T. and Hawaiian desire a "closer rapport" between Comsat and the international carriers. RCA agreed that the suggested industry committee could result in “better liaison;" and ITT stated that such a committee would serve "a most use ful purpose.” However, only Comsat professed to "find no merit" in WUI's sug. gestion. Comsat indicated its belief that an industry liaison committee was unnecessary and pointed to a meeting held by Comsat to which the international public service carriers were invited. This meeting, which was held on March 4, 1966, was an outgrowth of WUI's suggestion according to our information. WUI appreciates being invited to this meeting but fails to comprehend how this isolated occasion demonstrates effective liaison.

Effective industry discussions in depth are inhibited unless conducted pursuant to regulatory sanction. Creation of an industry liaison committee under the aegis of the Commission would not only facilitate a meaningful exchange of information and a thorough exploration of industry problems, but also would enable the Commission to stay abreast of industry developments in order to discharge its responsibilities under both the Communications Act of 1934 and the Satellite Act of 1962.

WUI first proposed the establishment of an industry liaison committee on January 4, 1965 in "Comments” filed with the Commission in its satellite earth station proceeding. WUI has consistently called for the creation of such a committee in nearly every pleading filed with the Commission relating to satellite matters.

Such a committee would facilitate greater cooperation in satellite matters by all communications entities, promote optimum utilization of satellite channels and redound to the benefit of the public. Without this committee, the international public service carriers are unable to stay abreast of satellite developments are not in a position to intelligently negotiate with their overseas correspondents who are much better informed regarding satellite programs, and are unable to plan effectively for future satellite and cable coordination.

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