Monday, Jul. 23, 1984

The Newest Star Wars Battle

U.S. Trade Representative William Brock last week took a small step for a Government official but a giant one in the matter of commercial disputes. After nearly two months of deliberation, Brock agreed to investigate the first formal charge of unfair competition in space. "This," said one staff member, "is not a frivolous complaint."

Transpace Carriers, a two-year-old Maryland firm that plans to use NASA rockets to put satellites aloft, accused Arianespace, its European rival, of using government subsidies to submit low-cost bids for American contracts. Transpace wants the French firm to charge the same price for U.S. launches as it does for European ones. Among the jobs Arianespace has won is a $125 million award to launch five General Telephone & Electric orbiters.

Though Brock's office has a year to investigate the complaint, it is likely to rule much sooner. Transpace needs to win three new contracts quickly in order to retain its access to NASA's Delta launch missile. Without the use of the powerful Delta, Transpace would be grounded.