95. Letter From the Assistant Secretary of State for Economic Affairs (Solomon) to the President’s Special Assistant for Telecommunications (O’Connell)1

Dear Mr. O’Connell:

The Secretary has asked me to reply to your letter of February 212 in which you outlined your concerns on developments in the international telecommunications field, particularly regarding the future of the commercial communications satellite systems, INTELSAT.

There are, as you note, some indications that certain members of INTELSAT are restive and seem to be pursuing a separate regional approach rather than the single global system concept that is contemplated by the 1964 INTELSAT Agreements. I believe that the international cooperative effort of INTELSAT has been an extraordinary success to date, and hope that we can build on this success, rather than dismantle the basic INTELSAT structure which was designed to achieve the goals set forth in the Communications Satellite Act of 1962 and the related policies expressed by Presidents Kennedy and Johnson. This success of INTELSAT leads me to believe that INTELSAT’s future is not perhaps so dark as might be assumed from a restive member such as France.

I understand that you and representatives from this Bureau have been working very closely together, and will continue to do so, in preparing for the proposed renegotiations of the 1964 Agreements. In this regard I would like to commend you for the efforts you are making to establish for this Government a rational and coordinated policy concerning communications by satellite.

Concerning the specific suggestions made in your letter, I agree that we should press on in convincing our partners in INTELSAT of the advantages of some form of a single global system. It may be necessary and desirable to accommodate within the single global concept establishment of domestic communications satellite services. This effort involves a process of continuous definition of this concept, and I see this as a central part of the renegotiation of the 1964 Agreements. We have already had preliminary discussions with the Canadians, the British, and the French to ascertain their thinking, and similar talks [Page 179] will be instituted with other countries as preparations for the 1969 conference proceed.

In regard to the establishment of earth stations, progress is being made in certain less developed countries. Just how much this rate of progress can be speeded up is hard to predict in light of the newness of this mode of communications and the many other pressing problems these countries have. As you know, AID offered last May to assist three African countries in the construction of earth stations, but, even with this assistance assured, actual construction has not commenced. With regard to your suggestion that we urge the Inter-American Development Bank to take an active role on loans for the establishment of earth stations in Latin America, as you know, we are now in process of carefully reviewing the history of our policy with regard to IDB lending for earth stations and the overall United States interests involved.

I have also noted your February 17 Memorandum to the President3 and wish to assure you that this Department will continue to work closely with you in seeking solutions to the many problems discussed therein.

Again, thanks for bringing to our attention the various issues confronting us in the field of satellite communications. I am sure that if we persevere we will be able to arrive at decisions which will be fully responsive to the needs of the United States in the telecommunications field and also be in the best interest of this country.

Sincerely yours,

Anthony M. Solomon 4
  1. Source: National Archives and Records Administration, RG 59, Records of the Department of State, Central Files, 1964–66, TEL 6. Confidential. Drafted by Nelson (E), Loy (E), and Pattman (L); and cleared by Silberstein (ARA), Nesbitt (SCI), Sneider (EA), and Springsteen (EUR).
  2. Document 94.
  3. Document 93.
  4. Printed from a copy that bears this typed signature.