165. Report of a Policy Review Committee Meeting1

PRC on China Science and Technology

Yesterday’s PRC on China surveyed our entire S&T relationship, but decisions were necessary only on the communications satellite. There was unanimous interagency agreement to slightly upgrade the quality of the satellite we are prepared to offer Peking.2 Agreement was also reached to tie in our willingness to provide and launch the satellite with Chinese agreement to purchase ground stations from us rather than would-be Western European or Japanese competitors. Decisions were also reached to continue to minimize the technology to be transferred in the sale.

The total package of two satellites, launching, and ground stations is on the order of half a billion dollars and would be extremely important to U.S. industry.3 The meeting also touched on the evolving S&T exchange program involving ICA, NSF, Energy, and Agriculture, all of which are moving according to the plan you have previously approved.

  1. Source: Carter Library, National Security Affairs, Staff Material, Far East, Oksenberg Subject File, Box 45, Meetings: 12/6–12/78. Secret. Inderfurth sent this report to Oksenberg and Huberman under a December 13 covering memorandum that stated, “Attached is the report which Zbig gave the President yesterday on the above meeting. Please note the President’s ‘OK’ and follow up.” The Summary of Conclusions of the December 12 PRC meeting is Document 164.
  2. Carter made a checkmark in the margin next to this paragraph.
  3. Carter wrote what appears to be “ok” in the margin next to this paragraph.