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Technology Stocks : Loral Space & Communications -- Ignore unavailable to you. Want to Upgrade?

To: Alan Sherman who wrote (6233)	5/29/1999 8:37:00 PM
From: Valueman	Read Replies (1) \| Respond to of 10852

Beware the pillaging hordes from the great white north!!! Mr. Cox, save us please!!! The Toronto Star May 29, 1999, Saturday CANADA MULLS SHIFTING SPACE CONTRACT TO EUROPEANS U.S. ban on flow of information, technology blamed Peter Calamai SCIENCE REPORTER CAPE CANAVERAL, Fla. - Canada is considering switching a key contract for a $305-million radar satellite to European companies because of a U.S. government crackdown on the flow of high-tech information and equipment across the border. The crackdown means that the U.S. parent company building the satellite's shell and support systems has been unable for the past three month to discuss technical details with its Canadian subsidiary, responsible for the satellite's complex innards. Senior officials of the Canadian Space Agency fear the existing freeze on cross-border flows of high-tech information could worsen with recent revelations that American nuclear secrets have been stolen by Chinese agents. The Radarsat-2 satellite sees everywhere, even at night and through clouds. Its images are critical for monitoring Arctic ice conditions, tracking floods, spotting mineral deposits and forecasting crop yields. The satellite is also expected to be a major export-earner, since its orbit can provide images of the entire globe. The crackdown on high-tech information exchange began in March, in response to concern in Congress and the White House that sensitive American technology was being too easily exported. At that time, the U.S. State Department took over responsibility from the Commerce department for issuing permits that allow U.S. companies to do high- tech business outside the country. The permits, called technical assistance agreements, must be issued for each separate program and specify in detail what can be legally discussed, even between subsidiaries and their American parent company. Chief contractor for Radarsat-2 is Macdonald Dettwiler of Richmond, B.C., which beat out Spar Aerospace, contractor for the first Radarsat. Macdonald Dettwiler is a subsidiary of Orbital Science Corporation, a U.S. satellite builder based near Washington, D.C. Orbital Science is supposed to be building what is called the satellite ''bus'' - the outer shell, supporting framework, electrical systems and positioning controls, which accounts for about one-fifth of the total $305- million price-tag for Radarsat-2. Orbital Science applied months ago for a technical assistance agreement covering Radarsat-2, but that permit is caught in the general freeze as the U. S. State Department tries to work out guidelines, said Mac Evans, president of the Canadian Space Agency. 'It's becoming very difficult to talk with U.S. firms' ''It's becoming very, very difficult to talk with U.S, firms,'' he said. At recent meetings, European and Canadian firms complained they were losing hundreds of millions of dollars because they could no longer import subsystems from U.S. suppliers. Evans said the space agency has had preliminary discussions with European consortia about taking over the U.S. portion of the Radarsat-2 contract if the U.S. freeze doesn't thaw within a few months. Otherwise, the project would miss its 2001 launch target. Radarsat-2 was already the subject of Canada-U.S. tension after NASA refused in January to launch it due to intelligence concerns that its images will be too revealing. NASA launched Radarsat-1 in 1995 in return for free access to its images. Paying a private company for a launch add between $80 million and $100 million to the cost of Radarsat-2. Sources said privately the real reason for the U.S.'s initial refusal to launch Radarsat-2 was fear of commercial competition.