The U.S. satellite manufacturer is responsible for the physical security of U.S. satellites that are exported to the PRC, and for guarding against the unauthorized or illegal transfer of U.S. technology during technical discussions that occur in the PRC. The U.S. Government oversees this function by assigning a representative of the Defense Technology Security Administration (DTSA), now known as the Technology Security Directorate of the Defense Threat Reduction Agency, to the launch site in the PRC.

This Defense Department “monitor” is responsible for ensuring that the satellite manufacturer properly implements a Technology Transfer Control Plan that is intended to provide and maintain protection against the unauthorized transfer of U.S. technology. Defense Department monitors also are required to attend all meetings of a technical nature that may occur between the satellite manufacturer’s employees and representatives of the PRC launch provider leading up to and during the launch.

In the course of their duties, Defense Department monitors are required to report regularly to the U.S. Air Force’s Space Command and Technology Security Directorate Headquarters on their activities at the launch site, including any security infractions they have detected. According to the Director of the Defense Technology Security Administration and Defense Department monitor reports, these infractions represent instances that require the monitor’s attention, but do not necessarily constitute violations of the export license that should be reported to the State Department. The guidance that is provided to Defense Department monitors provides that, should they encounter a security infraction at a launch site, they should first try to work out the problem with the satellite manufacturer’s personnel, including its security guard force. If this effort does not result in resolution of the problem to the satisfaction of the monitor, then the monitor is to call Headquarters and advise a supervisor. The supervisor may then call the company to insist that it remedy the security problem.

Defense Department monitors have reported many minor to severe security infractions at launch sites in the PRC. While the Select Committee’s limited review has found no witness to confirm that a transfer to the PRC of controlled U.S. technology has occurred as a result of ineffective launch site security, given the difficulty of proving that an improper transfer has occurred, it cannot be inferred that no such transfer has taken place. Moreover, the security infractions that have been documented demonstrate the potential for technology transfers to occur. Testimony by the Department of Defense on the potential for a technology transfer to occur as a result of access to a satellite in the PRC provides a perspective for considering these security infractions.

The Defense Department concluded that visual or photographic access to a satellite would allow confirmation of the existence of various attributes of a satellite already in the public domain.

With additional, longer-term unguarded access, the Defense Department estimated that a foreign intelligence collector could gain physical access to the satellite and obtain technical information of value regarding the satellite.

U.S. satellite manufacturers hire a security force to provide physical security for a satellite while it is awaiting launch in the PRC. In recent years, only one security guard company has bid on and received contracts to provide this service in the PRC.

The conduct, professionalism, and abilities of that company’s personnel have been sharply criticized both by Defense Department monitors and the satellite companies.

Because of the potential that technology transfers associated with the launch of a U.S. satellite in the PRC can occur, it is critical that the Defense Department monitors, the physical security guards, and the satellite manufacturers provide effective protection of U.S. technology associated with launches in the PRC. The Strom Thurmond National Defense Authorization Act for FY 1999 has addressed several of the criticisms received both from inside and outside the Defense Department regarding its monitoring program. However, the Clinton administration has not yet issued regulations to implement the Act.

Protecting Sensitive Information at PRC Launch Sites

The United States relies on a variety of means to protect controlled military-related technology during PRC launches of U.S. satellites. These include bilateral agreements between the United States and the PRC, export licenses for satellites and related technology, the presence of private security guards at PRC launch sites, and monitoring of launch-related activities and communications by U.S. Defense Department representatives.