to protect against certain risks during both pre-operational and operational phases. The international underwriting community has shown a willingness to insure the sizeable risks affiliated with today's telecommunications satellites, and this precedent could serve as a basis for the acceptance of SPS ground and space-related exposures. The major risks affiliated with the program stem from both the sizeable financial losses that could be incurred and the enormous liability exposures presented by extensive launch and space-construction activities. The possible environmental effects of both the ground and space segments also present a substantial degree of risk. The interrelation of so many participants combined with the need for a continuous flow of resources into space and to launch/rectenna sites forms a dynamic system that can be severely damaged by catastrophic loss at a number of key points. The effects of the overall SPS effort, moreover, will extend into an international realm that today does not provide for the sharing of liability exposures among what could be a consortium of many diverse countries. Even if constructed as a domestic effort, the exposure to international lawsuits are not clear at this time. Underwriters do not presently have a basis for assessing either the possible origins of claims or their severity. However, an effort to develop SPS, combined with a close liaison with the world insurance market, would undoubtedly result in insurance for many SPS exposures. A consistent educational process will both allow underwriters to identify periods of exposure, for which policies could be designed, and would allow increased market capacity for these risks to achieve required levels. International Considerations The preliminary assessment identified three important international considerations with respect to SPS. These are: (1) controls expected to be exercised by international organizations through enforcement of treaties governing operations in space and new agreements (e.g., on microwave radiation, geostationary orbit and radio frequency assignment) that may be required because of unique aspects of the SPS; (2) international organizational options to successfully manage the SPS; and (3) military implications of the SPS. A final assessment of the military implications of the SPS was undertaken to more specifically address threats and undertaken by SPS subsystem. In addition, the final assessment has drawn together previously contracted work, melded in foreign appraisals of the SPS, assessed the current international status of SPS, developed strategy guidelines based on case studies of existing international organizations, and derived this from options for an international dialogue within the context of world political/legal realities and agency concerns . An international organization is strongly indicated for SPS development and commercialization. Four prospective international organizational structure models for the SPS are: (a) a public/private corporation akin to COMSAT, which would evolve into an international corporation akin to INTELSAT; (b) an international organization in which the U.S. would retain substantial control; (c) a quasi-governmental agency like the TVA; (d) a multi-national, private consortium. Any SPS organization must be: responsive to U.S. energy needs, politically feasible, cost-effective, and conducive to international
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