INTELSAT AND EUTELSAT SEEK PERMISSION TO WORK WITH CHINESE
Intelsat and Eutelsat asked U.S. govt. to allow launch of satellites aboard Chinese Long March rockets early next year. However, both companies are preparing alternative plans in expectation that U.S. will deny permission. Both satellites were built by European companies but have American-supplied components. Meanwhile, industry sources and Bush Administration officials are offering different takes on issue. Satellite industry plans to monitor situation closely because of concerns about satellite component market because of tighter export controls. This marks first time U.S. has faced issue of dealing with U.S. components aboard non-U.S. satellite since export licensing was moved to State Dept. from Commerce Dept. 2 years ago.
Intelsat set July deadline for approval from U.S. or it will consider “other options,” spokesman said. “The procedure we are subjected to starts a State Dept. recommendation to the President. If the President agrees the export, he submits it to Congress for review.” Senior Dir.-Govt. Affairs Tony Trujillo told us: “We're committed to working with our partners to secure the licenses, if possible. If we don’t get them, we have to find an alternative launch vehicle.”
State Dept. confirmed it was considering 2 “retransfers” but no timetable had been set for when final decision might be made. European companies have said repeatedly that tough regulatory regime in U.S. will force them to stop using American components. However, political environment that has some lawmakers pushing for tougher export controls against China hasn’t helped issue, industry source said.
“This isn’t exactly the best time to be asking the U.S. government to approve a Chinese launch contract,” industry lawyer said: “China still has that U.S. spy plane, so nobody is inclined to do them any favors.” State Dept. spokesman said Thurs. he expected agency to recommend to President Bush that he approve export requests. However, approval would be conditioned on certification that satellites didn’t constitute missile technology and assurances spacecraft wold be monitored closely once it reached China, govt. official said.
Both satellites are almost completed and are in hands of prime contractors waiting to be shipped. Astrium SAS of France is manufacturer for Intelsat APR-3 satellite that already has received clearance from State Dept. for components to be shipped to China. Alenia Spazio of Rome also has received authorizations from State Dept. to export U.S. components in Eutelsat Atlantic Bird-1 satellite. However, both builders are awaiting waivers from Bush before sending satellites to China. Presidential waivers for Chinese launches of U.S. satellites have been necessary since 1989 when U.S. govt. imposed embargo following Chinese govt.’s violent suppression of protesters in Tiananmen Sq. in Beijing.