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The Communications Satellite Act of 19621 authorizes the creation of the Communications Satellite Corporation (Comsat) and vests it with responsibility for developing a program for global satellite communications. Comsat is a private business organized for profit2 and is financed entirely by commercial loans and the sale of capital stock.3 The corporation receives no federal grants and cannot invoke the authority of the United States in support of its actions. The decision to use a wholly private corporation as the instrument for satellite system development was in keeping with the tradition of relying on the private sector for telecommunications facilities.5 The overall aim of the 1962 Act, however, was not solely to promote commercial opportunities. The Act also declares that the satellite system shall be responsive "to public needs and . . . contribute to world peace and understanding."' Accordingly, the Act involves the Federal Communications Commission (FCC) and the executive branch in the public supervision of Comsat. 7

Private Diplomacy and Public Business: Public Supervision of the Communications Satellite Corporation