SPANISH RESPONSE TO GALILEO DEMARCHE

UNCLAS MADRID 000020 SIPDIS SIPDIS DEPARTMENT FOR OES/SAT (MAUREEN WALKER) AND EUR/WE E.O. 12958: N/A TAGS: TSPA SENV KTIA SPCE SP SUBJECT: SPANISH RESPONSE TO GALILEO DEMARCHE REF: 06 SECSTATE 196107 ¶1. ESTHOFF made reftel points January 5 to MFA Deputy Director General for International Economic Relations Juan Luis Munoz de Laborde, asking about the status of Spanish ratification of U.S.-EU GPS Galileo Cooperation Agreement and whether Spain plans to mandate that GOS entities utilize Galileo for future spaced-based positioning, navigation and timing (PNT) needs. Munoz de Laborde offered the following information: -- Spain ratified the U.S.-EU GPS Galileo Cooperation Agreement on May 8, 2006. -- Spain does not plan to subsidize the operation of Galileo, as the EU agreement that launched Galileo called for the system to be run as a private consortium. -- Per EU agreement, Spain and other EU states have and will continue to subsidize the construction and launching of the satellites that will put Galileo in place. These monies are passed via the European Space Agency. -- Spain does not plan to mandate that GOS entities use Galileo for future PNT needs. Spanish government agencies will be free to contract with GPS, GLONASS, or other competitors in the PNT market. ¶2. The Spanish press reports that Spain has committed to pay 10 percent of the expected 3.6 billion euro cost to develop and launch the 30 Galileo satellites that will be put in orbit by 2011. This would make Spain the EU's fifth largest supplier of such funds. The press reports that Spain has provided 105 million euro to date and that the balance of Madrid's 360 million euro contribution will be provided prior to 2011. LLORENS