CONFIDENTIAL

DRAFT

6 June 1989

International Telecommunications Satellite Organisation

(INTELSAT)

Background

The two basic agreements, which entered into

force on 12 February 1973 are :

(1) Agreement Relating to

the

International

Telecommunications

Satellite

Organisation

2.

"INTELSAT" (the "Agreement").

(2) Operating Agreement Relating to the International

Telecommunications

Satellite

"INTELSAT" (the "Operating Agreement").

Organisation

The Agreement established the International

Telecommunications Satellite Organisation

development,

construction,

(INTELSAT)

(Agreement, Article II(a)). Its main purpose is to

continue and carry forward on a definitive basis the

design,

establishment,

operation and maintenance of the space segment of the

global commercial telecommunications satellite system, as

originally established under the provisions of the Interim

Agreement and the Special Agreement of 1964 (Agreement,

Article II(a)). INTELSAT's primary objective is further

defined as "the provision, on a commercial basis, of the

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