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Washington - August 20, 1999 - Recent changes to U.S. satellite export controls have had sweeping effects on the launch services industry. The new export controls, plus the others actively considered, are causing delays and uncertainties for launch service providers, including Arianespace. This has occurred despite the absence of any observed or suspected risk to U.S. foreign policy and national security from the export of satellites for launch by Arianespace. The resulting delays and uncertainties have been costly to Arianespace, to U.S. satellite providers and to customers of satellite services. In the following position paper, Arianespace demonstrates that it is a reliable partner with the United States. In light of the facts, and consistent with the intent of Congress, it is Arianespace's position that the new special export controls should not be applied in connection with launch services provided by Arianespace. For the past year, considerable attention has been directed at the issue of export controls for U.S. satellites and related items. Although transfers of technical data to China have been the focus of concern, the recent changes to satellite export controls have had sweeping effects. Last year, Congress passed new, more stringent, export controls as part of the Strom Thurmond National Defense Authorization Act of 1999 (NDAA). The NDAA not only transferred the legal authority to regulate the export of commercial satellites from the Commerce Department to the State Department, but also added new, special export controls, such as mandatory monitoring and mandatory notifications of meetings. In light of the special relationship that the United States enjoys with NATO and other allied countries, Congress wisely provided in the NDAA an exemption from the new, special export controls for NATO and major non-NATO allies. Unfortunately, the regulations issued to implement the NDAA indicate that these new, additional export controls may be imposed on the export of satellites and related items to NATO and major allied countries, notwithstanding the statutory exemption. As a result, there have been serious delays and uncertainties in the regulatory process and severe consequences for the U.S. satellite manufacturers, their customers, and the satellite launch industry, including the potential loss of contracts. Arianespace is a European consortium that provides satellite launch services to customers worldwide from a base located in French Guiana. During the period, 1994-1998, the company launched forty-five percent of all U.S.-manufactured commercial geostationary satellites. Arianespace also launched eight classified payloads for the British, French and Italian Governments. Thus, the launch services provided by the company have been indispensable to U.S. and European access to space, for the benefit of the economies and the security of NATO countries. Until the recent retransfer to the State Department of export control jurisdiction over satellites, no significant difficulties have been noted with respect to exports of U.S. satellites for launch by Arianespace. However, since that retransfer, new export controls have been applied and others have been actively considered, thereby causing delays and uncertainties. This has occurred, despite the absence of any observed or suspected risk to U.S. foreign policy and national security from the export of satellites for launch by Arianespace. This paper demonstrates that Arianespace is a reliable partner with the United States. Arianespace sets a high standard for compliance with export control laws. Under the current and the previous export control regimes, technical data transfers to Arianespace are subject to Technical Assistance Agreements required by the State Department. None of the data transferred to Arianespace is related to detailed design, development and manufacturing of satellites, and therefore, should not be subject to the new, special export controls. There is a very high degree of security at the launch facility utilized by Arianespace. The launch base is located on the territory of France. Security for the base, the launcher, the satellites and the technologies involved in launch operations are under the direct responsibility of the French Government. The entire base is classified by the French Government at the same level as for the French nuclear strategic forces, which is the highest classification for French military facilities. The launch base is protected by the French Foreign Legion, French Gendarmerie, and French Space Agency security personnel. Access to satellites and related equipment is strictly controlled, not only by guards, but also by elaborate electronic observation and access devices. There is no history of any breach of security at the base. Therefore, additional on-site monitoring as envisaged by special export controls is unwarranted. Arianespace uses a stringently controlled launch failure investigation process. Only launch vehicle technology is involved. The launch vehicle technology is European, not U.S., and is strictly controlled by the French Government. No U.S. (or other) satellite technology is involved. No U.S. nationals or entities participate in the investigations. Due to the location and security of the launch base and to the procedures applied to launch failures, debris recovery does not present a security issue. Thus, it is not appropriate to apply special export controls to these investigations. Commercial satellite launches must be insured. Technical data must be provided to non-U.S. insurance companies to enable them to determine risk, value, and premiums. This presents an export control issue. Europe provides most of the available insurance coverage for commercial launches worldwide. The most stringent controls are inappropriate for nationals and entities of NATO and major non-NATO allies of the United States. Arianespace urges the Administration to follow the intent of the NDAA exemption, which clearly provides that the special export controls shall not apply to NATO and major non-NATO allies and their nationals.
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