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U.S. Department of State

Daily Press Briefing

U.S. DEPARTMENT OF STATE
DAILY PRESS BRIEFING
DPB #107
WEDNESDAY, AUGUST 18, 1999 12:40 P.M.
(ON THE RECORD UNLESS OTHERWISE NOTED)

...............

MR. RUBIN: Yes, we had something on it yesterday. Another question for which the guidance was not in my book. But fortunately, our able staff has provided it in time to not make me look like a complete idiot.

QUESTION: (Inaudible.)

MR. RUBIN: I said complete idiot; I gave you lots of room to work with.

Our decision to maintain the suspension of Loral's technical assistance agreement to launch China Sat VIII was based on the specific facts and circumstances associated with this case.

The outcome of this matter does not have broader implications for launching American-manufactured satellites from China. It is not a test of the aerospace industry's ability to do business in China. In fact, in the short time since Congress transferred communication satellite back to the US munitions list to be licensed by the State Department, State has approved, we here at the State Department have approved Motorola's iridium satellite launch from China this past June and more recently have approved the presentation of proposals by US satellite manufacturers to build the Apstar 3 satellite, which is being planned to provide domestic telecommunications services to China.

In other words, we have specific concerns that generated the initial suspension of this technical agreement. Those concerns have not been alleviated so the suspension continues.

I would add that the past behavior of the exporting company in general is highly relevant, since a critical factor involving all exports of munitions list items is the reliability of the exporting company and the specific circumstances presented in the license application.

We suspended Loral's launch technical assistance agreement in December '98 and the suspension that is now going to be continued would involve the - because the agreement would involve the export of MTCR control technical data for which a certification from the President is now required.

QUESTION: How much does the disclosure on Loral's conduct in China bear on this decision?

MR. RUBIN: I wouldn't be in a position to get into a specific discussion of what factors went into this decision to continue the suspension. My understanding is there was a desire to get an answer to the question of whether the suspension would be lifted in order to proceed with certain long lead time contracting. Based on this time frame, we looked at it and we concluded there wasn't a basis for lifting the suspension.

QUESTION: But didn't you say that the conduct of the exporter did --

MR. RUBIN: In general, that does play a role, as I said, But she was asking me not only to make that general point but then to be specific about that conduct, which is what I'm not in a position to do if I'm to remain the longest-serving spokesman in the Clinton administration.

(The briefing concluded at 1:30 P.M.)

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[end of document]