U.S. Postal Service: Postal and Telecommunications Sector Representation
in International Organizations (Briefing Report, 10/29/98,
GAO/GGD-99-6BR).

Pursuant to a congressional request, GAO provided information on U.S.
representation in two international organizations: (1) the Universal
Postal Union (UPU); and (2) the International Telecommunications Union
(ITU).

GAO noted that: (1) differences in the roles of government agencies in
U.S. international policy development for the postal and
telecommunications sectors were related to the agencies' roles and
responsibilities as defined under the law; (2) some agencies had
specific, legally defined postal or telecommunications responsibilities,
while others had legally defined responsibilities that were not sector
specific; (3) other involved government agencies did not have issue or
sector-specific responsibilities; (4) in addition, the roles of
private-sector participants in policy development differed between the
two sectors; (5) in the telecommunications sector, in which
private-sector participants are regulated by the Federal Communications
Commission, participation in the U.S. international policy development
was more formal; (6) in the postal sector, private-delivery companies
are not regulated, and private-sector participation was more informal;
(7) differences in legal requirements also contributed to differences in
the formalization of the processes used to develop U.S. policies for
international postal and telecommunications issues; (8) under the
Federal Advisory Committee Act, the advisory committee was required to
meet certain statutory requirements and documentation; (9) the process
for developing U.S. policy for international postal issues was more
informal, and generally involved holding ad hoc briefings with
interested parties; (10) in the telecommunications sector, private
service providers have been included as part of the U.S. delegations to
both the supreme and permanent bodies, but this was not the case in the
postal sector; (11) delegations to both the UPU and ITU supreme bodies
generally included a head of delegation, deputy head(s), and members,
but they differed in composition; (12) both international organizations
have grappled with adapting their organizations' structures to the
evolving competitive postal and telecommunications environments, which
have seen rapid changes in the roles of public and private-service
providers; (13) in the postal sector, the distinction between public-
and private-service providers is becoming more blurred as several
foreign postal administrations have recently acquired or developed
partnerships with private delivery companies; and (14) the UPU is
reviewing its organizational structure and is to consider proposals at
the next UPU Congress that include a consultative status for
international nongovernmental organizations.

--------------------------- Indexing Terms -----------------------------

 REPORTNUM:  GGD-99-6BR
     TITLE:  U.S. Postal Service: Postal and Telecommunications Sector 
             Representation in International Organizations
      DATE:  10/29/98
   SUBJECT:  International agreements
             International organizations
             Postal law
             Mail transportation operations
             Competition
             Telecommunication industry

             
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Cover
================================================================ COVER


Briefing Report to the Chairman
Subcommittee on the Postal Service
Committee on Government Reform and Oversight, House of
Representatives

October 1998

U.S.  POSTAL SERVICE - POSTAL AND
TELECOMMUNICATIONS SECTOR
REPRESENTATION IN INTERNATIONAL
ORGANIZATIONS

GAO/GGD-99-6BR

Postal/Telecom Representation in UPU and ITU

(240315)


Abbreviations
=============================================================== ABBREV

  ACCA - Air Courier Conference of America
  ATIS - Alliance for Telecommunications Industry Solutions
  CA - Council of Administration (UPU)
  FACA - Federal Advisory Committee Act
  FCC - Federal Communications Commission
  GSA - General Services Administration
  ITAC - International Telecommunications Advisory Committee
  ITU - International Telecommunications Union
  NTIA - National Telecommunications Information Administration
     (Commerce)
  OMB - Office of Management and Budget
  POC - Postal Operations Council (UPU)
  TIA - Telecommunications Industry Association
  TSAG - Telecommunication Standardization Advisory Group
  U.N.  - United Nations
  UPU - Universal Postal Union
  USPS - U.S.  Postal Service
  USTR - U.S.  Trade Representative
  WTO - World Trade Organization

Letter
=============================================================== LETTER


B-281192

October 29, 1998

The Honorable John H.  McHugh
Chairman, Subcommittee on the Postal Service
Committee on Government Reform and Oversight
House of Representatives

Dear Mr.  Chairman: 

This briefing report reflects and updates information provided in our
July 1998 briefing on U.S.  representation in two international
organizations:  (1) the Universal Postal Union (UPU) and (2) the
International Telecommunications Union (ITU).  The UPU regulates
international postal services, and the ITU coordinates global
telecommunications networks and services among governments and the
private sector.  As agreed with the Subcommittee, the objective of
this review was to compare the roles and responsibilities of
government and private-sector stakeholders in U.S.  policy
development and representation in international organizations for the
postal and telecommunications sectors.  Specifically, we compared
representation of the United States in the UPU and in the ITU. 


   BACKGROUND
------------------------------------------------------------ Letter :1

The House Subcommittee on the Postal Service is concerned about
allegations from private delivery companies that the U.S.  Postal
Service (USPS) gains unfair competitive advantages through its role
as the U.S.  representative in the UPU.  As we previously reported in
1996, the Air Courier Conference of America (ACCA), an association
that represents private delivery companies, alleged that the USPS
unfairly benefited from its role as a national postal administration,
its exclusive access to foreign postal administrations through the
UPU, and its role as the U.S.  negotiator of UPU agreements and
related multilateral agreements.\1

ACCA suggested that because the actions of the UPU lead to laws
affecting the international delivery market in general, some party
other than the USPS should serve as the leader of U.S.  delegations
to the UPU.  The private delivery companies would also like to be
part of the U.S.  delegation to the UPU and have a more public
process for developing U.S.  policies or positions that will be taken
at the UPU, particularly on issues related to international postal
rates and restrictions on the international delivery market. 

USPS disagreed with ACCA's allegations and defended its
responsibility as the U.S.  representative in the UPU on the basis of
its statutory authority, 39 U.S.C.  407(a), which states "the Postal
Service, with the consent of the President, may negotiate and
conclude postal treaties and conventions." Pursuant to that
authority, USPS represents the United States in the UPU and enters
into UPU agreements subject to ratification by the President.  USPS
also contended that it would be inappropriate to have private
delivery companies, who have no obligations under the UPU agreements,
participate directly in an intergovernmental body whose basic purpose
is to help postal administrations fulfill national statutory delivery
service obligations on an international basis. 

The UPU, headquartered in Berne, Switzerland, is a specialized agency
of the United Nations (U.N.) that governs international postal
service.  The UPU Constitution is the basic act of the UPU containing
the fundamental rules of the Union.  A UPU international agreement,
the Universal Postal Convention, supplemented by its Detailed
Regulations, sets the common rules for international postal service,
including the exchange of letter post mail, that are binding on
member countries.  Other UPU agreements and regulations apply to
parcel post and financial services, such as postal money orders.  The
main bodies of the UPU include the supreme body, called the UPU
Congress, and three permanent bodies:  the Council of Administration
(CA), the Postal Operations Council (POC), and the International
Bureau.  The UPU Congress is composed of delegates representing all
189 member countries and is to be convened every 5 years.  The UPU
Congress is to reevaluate and revise the UPU Constitution,
Convention, and agreements.  Amendments to UPU's Constitution can
only be made at a UPU Congress and are subject to ratification by
each member country.  The next UPU Congress is to be held in August
1999 in Beijing, China. 

The ITU, headquartered in Geneva, Switzerland, is also a specialized
agency of the U.N.  within which governments and the private sector
coordinate global telecommunications networks and services.  The ITU
Constitution and Convention, a treaty document, is the basic act of
the ITU containing the fundamental rules of the Union.  The main
bodies of the ITU include (1) the supreme body, called the
Plenipotentiary Conference; (2) the Council; (3) the General
Secretariat; and (4) three sectors:  the Radiocommunication,
Telecommunication Standardization, and the Telecommunication
Development Sectors.  The Plenipotentiary Conference, which is to be
convened every 4 years, is to make top-level policy and leadership
decisions.  The Plenipotentiary Conference is composed of delegations
representing all 188 member countries.  The ITU Plenipotentiary
Conference adopts and modifies the ITU Constitution and Convention as
well as strategic and financial plans.  The ITU Constitution and
Convention must be ratified, accepted, or approved by each member
country.  The most recent ITU Plenipotentiary was held in October
1998 in Minneapolis. 

The ITU is organized into three sectors:  Radiocommunication,
Telecommunication Development, and Telecommunication Standardization. 
This report focuses on one of the three sectors--the
Telecommunication Standardization sector--to provide a more in-depth
example of how these sectors operate.  This sector was chosen for
comparison to the postal sector because of similar issues, such as
standardization and settlement charges among operators. 

Congress is considering proposed legislation that would change the
leadership of the U.S.  delegation to the UPU from the USPS to the
Secretary of State and would require the Secretary and USPS to
consult with other government agencies, users, and private providers
of international postal and delivery services as appropriate.  The
Secretary of State has similar representation and consultation
responsibilities as required by law in the international
telecommunications sector.  Some of the similarities in the
structures and management of the international organizations for the
postal and telecommunications sectors have invited comparisons
between the U.S.  policy development and representation in the UPU
and ITU.  However, there are also some key differences that are
important to note when making comparisons between these sectors in
the United States.  For example, the telecommunications sector does
not have a public operator or service provider, while the postal
sector does.  Also, the telecommunications sector has an independent
regulator, the Federal Communications Commission (FCC), while the
postal sector does not.  The USPS is an independent establishment of
the federal executive branch.  The providers of telecommunications
services in the United States are private companies, while the
providers of letter and parcel delivery services may include both the
USPS and private companies.  Although both the postal and
telecommunications sectors have statutory obligations to provide
universal service to the American public, these obligations are
fulfilled by private companies in the telecommunications sector and
exclusively by the USPS in the postal sector. 


--------------------
\1 See our report, U.S.  Postal Service:  Unresolved Issues in the
International Mail Market (GAO/GGD-96-51, Mar.  11, 1996). 


   RESULTS IN BRIEF
------------------------------------------------------------ Letter :2

Differences in the roles of government agencies in U.S. 
international policy development for the postal and
telecommunications sectors were related to the agencies' roles and
responsibilities as defined under the law.  Some agencies had
specific, legally defined postal or telecommunications
responsibilities, while others had legally defined responsibilities
that were not sector specific.  For example, USPS had postal-specific
responsibilities, while the Departments of State and Commerce as well
as FCC had telecommunications-specific responsibilities.  However,
other involved government agencies did not have issue or
sector-specific responsibilities.  For example, the Department of
Justice has participated in policy development on issues involving
its responsibilities for enforcing federal antitrust laws and
protecting competition.  In addition, the roles of private-sector
participants in policy development differed between the two sectors. 
In the telecommunications sector, in which private-sector
participants are regulated by the FCC, participation in U.S. 
international policy development was more formal.  In the postal
sector, private-delivery companies are not regulated, and
private-sector participation was more informal. 

Differences in legal requirements also contributed to differences in
the formalization of the processes used to develop U.S.  policies for
international postal and telecommunications issues.  In the
telecommunications sector, the process for involving government and
private-sector stakeholders in U.S.  international policy formulation
included regularly scheduled meetings formalized in an advisory
committee structure headed by the Department of State and chartered
in accordance with the Federal Advisory Committee Act (FACA), title 5
U.S.C., appendix 2.  Under the act, the advisory committee was
required to meet certain statutory requirements, such as public
notification of meetings in the Federal Register, and required
documentation, such as detailed minutes of meetings as well as annual
status reports to Congress.  In the postal sector, the USPS was not
subject to FACA or specific legal requirements for consulting with
government and private-sector stakeholders in U.S.  international
policy formulation.  The process for developing U.S.  policy for
international postal issues was more informal, with limited public
notice or documentation of meetings, and generally involved holding
ad hoc briefings with interested parties. 

In comparing U.S.  representation to the UPU and ITU, we noted some
major differences in the composition of U.S.  delegations.  In the
telecommunications sector, private service providers have been
included as part of the U.S.  delegations to both the supreme and
permanent bodies, but this was not the case in the postal sector. 
Delegations to both the UPU and ITU supreme bodies generally included
a head of delegation, deputy head(s), and members, but they differed
in composition:  The U.S.  delegation to the UPU Congress was led by
and predominantly made up of USPS officials and staff and a few
Department of State officials.  In comparison, the delegation to the
ITU Plenipotentiary Conference was led by the Department of State and
included a broad range of government and private stakeholders.  Also,
private-sector service providers could participate in most ITU
permanent bodies either as part of the U.S.  delegation or on their
own behalf.  In contrast, private-sector providers were excluded from
participation in UPU permanent bodies because UPU rules required
representatives to be competent in postal matters or be qualified
officials of the member countries' postal administrations. 

Both international organizations have grappled with adapting their
organizations' structures to the evolving competitive postal and
telecommunications environments, which have seen rapid changes in the
roles of public and private service providers.  In the postal sector,
the distinction between public- and private-service providers is
becoming more blurred as several foreign postal administrations have
recently acquired or developed partnerships with private delivery
companies.  Thus, as in the telecommunications sector, postal
delivery services are increasingly being provided by private as well
as public service providers.  The UPU is reviewing its organizational
structure and is to consider proposals at the next UPU Congress that
include a "consultative status" for international nongovernmental
organizations.  Similarly, the ITU is struggling with issues related
to how private-sector service providers should participate at ITU
plenipotentiaries.  For example, one issue that has been discussed in
recent meetings held by the Department of State is the potential that
conflicts may develop when multinational telecommunications
corporations have delegates on more than one country's delegation. 


   SCOPE AND METHODOLOGY
------------------------------------------------------------ Letter :3

To determine the roles and responsibilities of U.S.  stakeholders in
U.S.  international postal and telecommunications policy development
and representation to the UPU and ITU organizations, we reviewed
relevant U.S.  laws, executive orders, regulations, agency documents,
correspondence, and the UPU and ITU constitutions, conventions, rules
of procedures, and agreements.  We interviewed officials at USPS; the
Departments of State, Commerce, and Justice; the FCC; the USTR; and
OMB about their level of involvement in developing U.S.  postal and
telecommunications policy.  We also interviewed key UPU officials to
gain a better understanding of the operations and participation in
the UPU.  Further, we attended preparatory meetings for the upcoming
UPU and ITU meetings.  Additional details are included in briefing
section I, Scope and Methodology.  We conducted our review from June
through September 1998 in accordance with generally accepted
government auditing standards. 


   AGENCY COMMENTS AND OUR
   EVALUATION
------------------------------------------------------------ Letter :4

On September 29, 1998, we provided a draft of this report to the
Postmaster General and the Secretary of State for comment.  We
received written comments from the Postmaster General dated October
16, 1998.  These comments are summarized below and included as
appendix III.  On October 14, 1998, the Department of State's GAO
Liaison Officer informed us that the Department had no comments. 

USPS generally agreed that the report provides a comprehensive
summary of the structure and responsibilities of the UPU and ITU and
discusses how pertinent U.S.  policies are currently formulated. 
USPS said that while there are some similarities between the UPU and
ITU, the differences in the two organizations are significant and
must be taken into account in addressing the question of U.S. 
involvement in the UPU.  USPS noted that the differences reflected
the way in which the international postal and telecommunications
sectors are governed and the way universal service obligations are
met, that is, by government-sector providers in the postal sector and
private companies in the telecommunications sector.  USPS further
stated that the UPU does not fully parallel the ITU, and the ITU does
not provide an appropriate model for U.S.  representation in the UPU. 

As we noted in the report, there are differences and similarities in
the postal and telecommunications sectors and their international
organizations, but we did not address whether the ITU is an
appropriate model for U.S.  representation in the UPU.  By
identifying the processes used to develop U.S.  international policy
in each sector, we provided information on alternative processes,
such as the FACA process, that are used by other government agencies
to obtain input from stakeholders.  The FACA process is not unique to
the telecommunications sector.  Likewise, information on U.S. 
representation in other international organizations may provide
alternatives for consideration of the appropriate role and
participation of stakeholders. 


---------------------------------------------------------- Letter :4.1

We will send copies of this report to the Ranking Minority Member of
your Subcommittee, the Chairman and Ranking Minority Member of the
House Committee on Government Reform and Oversight, the Chairman and
Ranking Minority Member of the Senate Committee on Governmental
Affairs, other interested congressional members, the Secretary of
State, and the Postmaster General.  We will also make copies
available to others on request.  The major contributors to this
report are listed in appendix IV.  If you have any questions about
this report, please call me on (202) 512-8387. 

Sincerely yours,

Bernard L.  Ungar
Director, Government Business
 Operations Issues


BRIEFING SECTION I BACKGROUND
============================================================== Letter 



   (See figure in printed
   edition.)


   REPORT OBJECTIVE
------------------------------------------------------------ Letter :5



      REPORT OBJECTIVE
---------------------------------------------------------- Letter :5.1

The objective of this review was to compare the roles and
responsibilities of government and private-sector stakeholders in
U.S.  policy development and representation in international
organizations for the postal and telecommunications sectors. 
Specifically, we compared representation of the United States in the
Universal Postal Union (UPU) and in the International
Telecommunications Union (ITU). 




   (See figure in printed
   edition.)


   USPS' ROLE AS UPU
   REPRESENTATIVE
------------------------------------------------------------ Letter :6



      USPS' ROLE AS UPU
      REPRESENTATIVE
---------------------------------------------------------- Letter :6.1

Private competitors alleged that USPS unfairly benefited by its
position as lead U.S.  delegate to the UPU because the actions of the
UPU lead to laws affecting the international delivery market in
general.  They requested that some other party serve as the leader of
the U.S.  delegation to the UPU.  These concerns were expressed
principally through the Air Courier Conference of America (ACCA), an
industry group made up of private delivery companies, such as United
Parcel Service and FedEx. 

ACCA also stated that it desired more participation in UPU meetings. 
In the past, ACCA requested that the President appoint a
representative of ACCA as a member of the U.S.  delegation to the
1994 UPU Congress.  However, this request was not granted. 

USPS responded that since the activities of the UPU were binding only
upon the postal administrations of members countries, it would be
inappropriate to have private delivery companies participate directly
in an intergovernmental body whose basic purpose was to help postal
administrations fulfill national statutory universal service
obligations on an international basis.  Furthermore, the USPS noted
that the UPU does not establish obligations or procedures for private
delivery companies, nor does it, in any other aspect, regulate such
companies. 



   (See figure in printed
   edition.)


   COMPARISON WITH THE
   INTERNATIONAL
   TELECOMMUNICATIONS SECTOR
------------------------------------------------------------ Letter :7



      COMPARISON WITH THE
      INTERNATIONAL
      TELECOMMUNICATIONS SECTOR
---------------------------------------------------------- Letter :7.1

There are many similarities between the structure and management of
the UPU and the ITU.  The UPU and ITU are organized and managed as
treaty organizations with supreme bodies that meet periodically in
plenipotentiary conferences to make changes to their constitutions
and conventions.  The UPU and ITU use permanent bodies to carry on
the work of their organizations in the interval between
plenipotentiary meetings.  These permanent bodies address policy
issues, coordinate work, and facilitate the implementation of the
provisions of their Constitutions, Conventions, and administrative
regulations.  They also perform policy and technical studies through
advisory groups, committees, subcommittees, study groups, and working
parties. 

Although the international postal and telecommunications sectors have
some similarities in the structure and management of their respective
international organizations, there are some important differences
between the two sectors in the United States.  For example, the
telecommunications sector does not have a public operator or service
provider, while the postal sector does.  Also, the telecommunications
sector has an independent regulator, the Federal Communications
Commission (FCC), while the postal sector does not.  USPS is an
independent establishment of the federal executive branch.  Both
sectors have a statutory obligation to provide universal service to
the American public, but this obligation is fulfilled by private
companies in the telecommunications sector and exclusively by USPS in
the postal sector. 



   (See figure in printed
   edition.)


   INTERNATIONAL ORGANIZATION FOR
   THE POSTAL SECTOR:  THE UPU
------------------------------------------------------------ Letter :8

   Source:  UPU information and CA
   and POC Practical Guide.

   (See figure in printed
   edition.)

Headquartered in Berne, Switzerland, the modern UPU is an
intergovernmental organization and a specialized agency of the United
Nations (U.N.) with 189 member countries.\2 The UPU's primary mission
is to provide a forum for the development of postal services based on
common standards and procedures agreed upon by national postal
administrations throughout the world.  The acts of the UPU apply only
to member national postal administrations and must be ratified by
each member country.  UPU regulations govern only mandatory services,
that is, those required to be provided by its members, but not those
services considered to be optional.\3 The main bodies of the UPU
include the supreme body, called the UPU Congress, and three
permanent bodies:  the Council of Administration (CA), the Postal
Operations Council (POC), and the International Bureau. 

The UPU Congress is to meet every 5 years.  The UPU Congress' main
function is legislative, that is, updating the UPU acts and
agreements; other functions include developing a long-term strategic
plan, electing the member countries for the CA and the POC, and
setting the UPU budget.  The CA, comprising 41 member countries,
meets annually in October in Berne and primarily manages affairs of
the UPU between Congresses.  It may approve proposals from the POC
for adopting regulations or new procedures until a decision is made
by the next Congress.  The CA also studies issues of interest to the
Congress that include, among others, regulatory, administrative,
legislative, and legal issues.  The POC, comprising 40 member
countries, meets annually and is the technical and operational body
of the UPU.  Dealing mainly with the operational, economic, and
financial aspects of international postal services, the POC
recommends to member countries standards for technological,
operational, or other processes that require uniform practices.  The
POC also promulgates Detailed Regulations for the UPU Convention and
the Agreements and promotes the introduction of new postal products. 
The United States is a member of both the CA and the POC. 

Finally, the International Bureau, located in Berne, provides
secretariat and support facilities for the UPU's bodies.  It also
manages an account settlement process among postal administrations
related to the exchange of postal items.  In addition, it is
responsible for ensuring the representation of the UPU in its
external relations with international organizations. 




   (See figure in printed
   edition.)


--------------------
\2 The UPU, established by agreement in 1874, is the second oldest
treaty organization in the world.  The UPU became a specialized U.N. 
agency by agreement on July 1, 1948.  According to current UPU
provisions, any U.N.  member may join the UPU; sovereign countries
that do not belong to the U.N.  may join if their request to the UPU
is approved by at least two-thirds of the UPU membership. 

\3 Mandatory services include the transfer, exchange, and
interadministration charges and payment mechanisms for letter
products--including, among others, letters, post cards, and printed
papers.  Optional services include, for example, expedited mail,
parcel post, and postal money orders. 


   INTERNATIONAL ORGANIZATION FOR
   THE TELECOMMUNICATIONS SECTOR: 
   THE ITU
------------------------------------------------------------ Letter :9

   Source:  ITU information.

   (See figure in printed
   edition.)

The ITU, originally called the International Telegraph Union, is
headquartered in Geneva, Switzerland.  It is a specialized agency of
the U.N.  with 188 members.\4 Through the ITU, governments and the
private sector coordinate global telecommunications networks and
services.  The main bodies of the ITU include (1) the supreme body,
the ITU Plenipotentiary Conference; (2) the Council; (3) the General
Secretariat; and (4) three sectors:  the Radiocommunication,
Telecommunication Standardization, and Telecommunication Development
Sectors.  In this report, we focus primarily on the Telecommunication
Standardization Sector. 

Plenipotentiary Conferences, to be held every 4 years, comprise
delegations representing all members of the ITU.  They adopt the
policies of the organization and decide on the organization and
activities of the ITU in the International Telecommunications
Constitution and Convention treaty, which is ratified, accepted, or
approved by each member country.  The ITU Council comprises 46
members of the union elected by the Plenipotentiary Conference.  The
Council is to consider, in the interval between Plenipotentiary
Conferences, broad telecommunication policy issues as well as Union
administrative issues to ensure the union's policies and strategies
are effective in the changing telecommunications environment.  In
addition, the Council is responsible for ensuring the efficient
coordination of the work of the Union and effective financial control
over the General Secretariat and the three sectors.  The General
Secretariat provides administrative support and information services
for the ITU's bodies and coordinates with other international
organizations. 

Within the permanent Telecommunication Standardization Sector are the
World Telecommunication Standardization Conference, the World
International Telecommunications Conference, and the
Telecommunications Standardization Advisory Group (TSAG).  World
Telecommunication Standardization Conferences are held every 4 years. 
These conferences approve, modify, or reject draft standards, called
recommendations because of their voluntary character.  They also
decide which study groups should be maintained, established, or
abolished as well as what issues should be studied.  The Director of
the Telecommunication Standardization Bureau (provides the staff and
administration for the sector) is elected at the Plenipotentiary
Conference.  TSAG is to review priorities and strategies of sector
activities as well as the implementation of the work program, provide
guidelines for study group work, and recommend measures to foster
cooperation and coordination with other organizations.  The United
States is a member of the ITU Council and TSAG. 




   (See figure in printed
   edition.)


--------------------
\4 The ITU, the oldest international treaty organization, was set up
on May 17, 1865, with 20 participating countries.  Under an agreement
with the U.N., the ITU became a specialized agency of the U.N.  on
Oct..  15, 1947. 


   SCOPE AND METHODOLOGY
----------------------------------------------------------- Letter :10



      SCOPE AND METHODOLOGY
--------------------------------------------------------- Letter :10.1

To determine the roles and responsibilities of U.S.  stakeholders in
U.S.  international postal and telecommunication policy development
and representation to the UPU and ITU, we reviewed relevant U.S. 
laws, executive orders, regulations, and agency documents as well as
the UPU and ITU constitutions, conventions, rules of procedure, and
agreements.  We interviewed responsible USPS officials in the
International Business Unit and Office of General Counsel.  We
interviewed responsible Department of State officials in the Bureau
of Economic and Business Affairs and the Bureau of International
Organization Affairs as well as officials at the Department of
Commerce, USTR, OMB, and FCC. 

To determine the level of participation by government and
private-sector stakeholders in U.S.  international policy development
and representation in the postal sector, we reviewed letters and
other correspondence between the Service and other federal agencies
that have been involved in consultations on international postal
matters, as well as other key postal stakeholders, and agendas and
attendance lists from USPS briefings on international postal policy
issues.  We interviewed officials at the Departments of State and
Commerce, USTR, and OMB about their level of involvement in
developing U.S.  postal positions as well as key UPU officials to
gain a better understanding of UPU's operations and participation in
the UPU.  Further, we attended the spring 1998 meetings of the UPU's
CA working parties and POC and talked to delegates from other
countries about their UPU representation.  We also attended a USPS
briefing in Washington, D.C., for government and private-sector
stakeholders concerning preparation for the 1999 Beijing UPU
Congress. 

For the telecommunications sector, to determine the level of
participation by government and private-sector stakeholders in U.S. 
policy development and representation, we interviewed officials from
the Departments of State and Commerce and FCC.  We also attended U.S. 
preparatory meetings at the Department of State in Washington, D.C.,
for the ITU Plenipotentiary Conference that was held in Minneapolis
in October 1998.  Further, we reviewed meeting agendas and lists of
delegates, observers, and attendees at official and preparatory ITU
meetings.  We conducted our review from June through September 1998
in accordance with generally accepted government auditing standards. 


Briefing Section II U.S.  POLICY
DEVELOPMENT:  INTERNATIONAL POSTAL
AND TELECOMMUNICATIONS ISSUES
============================================================== Letter 



   (See figure in printed
   edition.)


   U.S.  POLICY DEVELOPMENT: 
   COMPARISON OF ROLES BETWEEN THE
   TWO SECTORS
----------------------------------------------------------- Letter :11



      U.S.  POLICY DEVELOPMENT: 
      COMPARISON OF ROLES BETWEEN
      THE TWO SECTORS
--------------------------------------------------------- Letter :11.1

Differences in the roles of government and private-sector
participation in U.S.  international policy development for the
postal and telecommunications sectors related to the differences in
the agencies' roles and responsibilities as defined under the law. 
Some agencies had specific legally defined postal or
telecommunications responsibilities, while others had general legally
defined responsibilities that were not sector specific.  For example,
USPS had postal-specific responsibilities, and FCC had
telecommunications-specific responsibilities.  However, the
Department of Justice had antitrust responsibilities, and the USTR
had trade-related responsibilities, which were not issue or sector
specific.  Thus, agencies' level of participation in U.S. 
international policy development for postal or telecommunications
issues differed, depending upon their legally defined roles. 
Private-sector participation in policy development also differed.  In
the telecommunications sector, private-sector participants were more
formally and directly involved in U.S.  international policy
development, while in the postal sector, private-sector participation
was more informal and ad hoc. 

Policy development in both sectors generally involved a lead agency,
other government stakeholders, and private-sector stakeholders.  In
the postal sector, USPS has been the lead government agency,
supported by the Department of State.  Other government stakeholders
that have sometimes participated in policy development meetings
included the Departments of Commerce and Justice, OMB, and the U.S. 
Trade Representative (USTR).  Private-sector stakeholders have also
been informally involved in international U.S.  postal policy
development.  These generally included (1) competitors, such as ACCA;
(2) customers and mailer associations, including the Association of
American Publishers and the Direct Marketing Association; and (3)
suppliers, such as the Air Transport Association. 

In international telecommunications, the Department of State has been
the lead agency in the coordination of U.S.  international
telecommunications policy development.  The other government
stakeholders included the Department of State advisory committees,
U.S.  International Telecommunications Advisory Committee (ITAC) and
its study groups, FCC, National Telecommunications Information
Administration (NTIA) in the Department of Commerce, and USTR. 
Private-sector participants in U.S.  policy development in the
international telecommunications sector are involved in both a formal
advisory role and as direct participants; they have included major
industry associations, such as the American Telecommunications
Information Solutions, and individual companies, such as AT&T. 



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   edition.)


   U.S.  POLICY DEVELOPMENT:  KEY
   LEGAL ROLES OF AGENCIES
   INVOLVED IN THE POSTAL SECTOR
----------------------------------------------------------- Letter :12

   Source:  U.S.  Code.

   (See figure in printed
   edition.)



      U.S.  POLICY DEVELOPMENT: 
      KEY LEGAL ROLES OF AGENCIES
      INVOLVED IN THE POSTAL
      SECTOR
--------------------------------------------------------- Letter :12.1

In the postal sector, USPS is the primary agency for the development
of postal policy.  USPS, an independent establishment of the
executive branch, is responsible under the law for providing
universal postal services to all communities.  Under 39 U.S.C.  407,
USPS is the lead agency responsible for negotiating and concluding
postal treaties or conventions with other countries.  USPS is
currently the only U.S.  operator providing postal services under the
standards and obligations of UPU Convention.  The Department of State
is the principal adviser to the President on U.S.  foreign policy
matters, and it coordinates with USPS to ensure that all postal
treaties or conventions are in line with U.S.  foreign policy.\5

The Department of State also provides guidance and support for U.S. 
participation in international organizations and is responsible for
accrediting U.S.  delegations to international organizations. 

No other government agencies have legally defined postal-specific
responsibilities.  However, depending upon the U.S.  positions being
developed, other key agencies have participated in developing
policies for international postal issues related to their general
areas of legal responsibility.  For example, Commerce, Justice, and
OMB have participated in discussions related to proposed U.S. 
positions on rates for the exchange of international mail before the
1994 Seoul UPU Congress and in recent discussions for the 1999 UPU
Congress.  The Department of Commerce has responsibility for issues
related to U.S.  service industries' competitiveness in foreign
commerce.  For the postal sector, the Department of Commerce has
recently been involved in issues of concern to the direct marketing
industry.  Due to the Department of Justice's responsibility for
matters pertaining to antitrust enforcement or protection of
competition, Justice officials have also participated in meetings
related to competition issues.  Finally, USTR, as the principal
adviser to the President on trade issues, has been involved primarily
in trade-related issues with other countries and in the World Trade
Organization (WTO). 




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   edition.)


--------------------
\5 Section 407 (a) of title 39 of the U.  S.  Code is cited as legal
authority and justification for the Postal Service's role as the lead
agency in the development and representation of U.S.  policy. 
Section 407(a) states:  "The Postal Service, with the consent of the
President, may negotiate and conclude postal treaties or conventions
.  .  .  " In addition, section 407(b) of title 39 mandates a role
for the Department of State stating that "The Postal Service shall
transmit a copy of each postal convention concluded with other
governments to the Secretary of State, who shall furnish a copy of
the same to the Public Printer for publication."


   U.S.  POLICY DEVELOPMENT:  KEY
   LEGAL ROLES OF AGENCIES
   INVOLVED IN THE INTERNATIONAL
   TELECOMMUNICATIONS SECTOR
----------------------------------------------------------- Letter :13

   Source:  U.S.  Code.

   (See figure in printed
   edition.)



      U.S.  POLICY DEVELOPMENT: 
      KEY LEGAL ROLES OF AGENCIES
      INVOLVED IN THE
      INTERNATIONAL
      TELECOMMUNICATIONS SECTOR
--------------------------------------------------------- Letter :13.1

The Department of State, by law, is the principal adviser to the
President on U.S.  foreign policy matters and is the lead agency
responsible for formulating, coordinating, and overseeing U.S. 
international telecommunications foreign policy.  State also has a
legal requirement to coordinate with other agencies as appropriate,
principally FCC, NTIA, and USTR.  Further, State is required to
coordinate with representatives of the private sector to ensure that
their concerns are considered. 

Key agencies with legal authority for involvement in policy
development in the international telecommunications sector have
regularly included the Department of Commerce, the Department of
Commerce's NTIA, and FCC.  The Department of Commerce develops
policies regarding the U.S.  service industry's competitiveness in
foreign commerce in consultation with other agencies.  NTIA is the
principal adviser to the President on telecommunications, both
international and domestic.  FCC regulates and develops policies
concerning interstate and international communication and administers
the implementation of international telecommunications policies and
obligations. 

Other agencies, including Justice, OMB, and USTR, have also
participated in issues related to their legally defined
responsibilities.  For example, recently the Department of Justice
was involved in reviewing the merger of WorldCom and MCI.  In
addition, USTR was involved in the negotiation of the WTO Agreement
on Basic Telecommunications Services, which went into effect on
February 5, 1998.  Finally, OMB's focus is generally more
domestically oriented as the President's principal adviser on
procurement and management of federal telecommunications systems.  It
is also responsible, along with the General Services Administration
(GSA), for developing and establishing policies for the procurement
and management of such systems. 




   (See figure in printed
   edition.)


   COMPARISON OF PARTICIPATION IN
   AND PROCESSES USED FOR U.S. 
   POLICY DEVELOPMENT
----------------------------------------------------------- Letter :14



      COMPARISON OF PARTICIPATION
      IN AND PROCESSES USED FOR
      U.S.  POLICY DEVELOPMENT
--------------------------------------------------------- Letter :14.1

Differences in legal requirements also contributed to differences in
the formalization of the processes used to develop U.S.  policies for
international postal and telecommunications issues in areas such as
committee structure, meeting notifications, and documentation.  One
of the key areas of differences was that the Department of State was
legally required to obtain input from the private sector on
international telecommunications policy issues, while USPS was not
subject to such legal requirements. 

In the international telecommunications sector, government and
private-sector stakeholders had more direct involvement in U.S. 
policy formulation through a structured and documented advisory
committee process headed by the Department of State and subject to
the requirements of the Federal Advisory Committee Act (FACA).\6 FACA
requirements include Federal Register notice of committee meetings,
detailed minutes of meetings, public access and participation at
meetings, and annual reports to GSA, which then reports to Congress
on the activities, status, and any changes in the advisory
committees. 

In the postal sector, USPS was not subject to FACA.  The process for
involving government and private-sector stakeholders in international
policy formulation was more informal, involving ad hoc briefings with
limited public notice or documentation of meetings.  These briefings
started about 18 months before the UPU Congress convened, as
stakeholders began to show an interest in UPU issues.  USPS
identified agencies and private-sector stakeholders it considered
appropriate to be invited, such as private delivery service companies
and users of delivery services.  Participants were provided with
copies of documents for discussion, including U.S.  proposals, and
were asked to provide their input on issues of interest to them.  No
formal minutes were kept of meeting proceedings. 



   (See figure in printed
   edition.)


--------------------
\6 FACA was enacted to ensure that (1) valid needs exist for
establishing and continuing advisory committees, (2) the committees
are properly managed and their proceedings are as open as possible to
the public, and (3) Congress is kept informed of the committees'
activities.  See our reports, Federal Advisory Committee Act: 
General Services Administration's Oversight of Advisory Committees
(GAO/GGD-98-124, June 15, 1998) and Federal Advisory Committee Act: 
View of Committee Members and Agencies on Federal Advisory Committee
Issues (GAO/GGD-98-147, July 9, 1998). 


   U.S.  POLICY DEVELOPMENT: 
   PROCESS IN THE POSTAL SECTOR
----------------------------------------------------------- Letter :15



      U.S.  POLICY DEVELOPMENT: 
      PROCESS IN THE POSTAL SECTOR
--------------------------------------------------------- Letter :15.1

In the postal sector, the process for involving government and
private-sector stakeholders in policy formulation was more informal
than that required by FACA.  It involved ad hoc briefings with
limited documentation.  In preparation for the development of U.S. 
positions to be presented at the 1994 UPU Congress, USPS provided
five briefings before the Congress.  A USPS official explained that
the briefings were scheduled to present information on UPU issues
based on the interests of the government and private-sector
stakeholders.  USPS provided agendas and proposals to invited
participants.  The official said that participants were encouraged to
provide input on the various issues under discussion.  Our review of
records and discussions with participants indicated that sometimes
proposals that were to be discussed at the briefings were circulated
prior to the meetings.  Generally, minutes of meetings were not
prepared.  Although participants were provided copies of
documentation related to such briefings, this information was not
publicly available.  USPS also gave one briefing following the UPU
Congress to inform stakeholders of the actions taken at the UPU
Congress. 

According to USPS officials, USPS as lead agency for developing U.S. 
positions on international postal issues, coordinated its
international activities with the Department of State--the
President's representative for foreign affairs.  Although other
agencies were regularly invited to the briefings leading up to the
1994 UPU Congress, agency officials said their attendance varied,
depending upon whether the issues being discussed related to their
responsibilities.  The Department of State sent a representative to
these briefings on a regular basis.  The Departments of Commerce and
Justice, OMB, and USTR occasionally sent representatives. 

Private-sector stakeholders have also been involved in U.S.  postal
policy development.  Some of the private-sector participants that
have regularly attended the briefings related to the 1994 UPU
Congress have included competitor and mailer associations, such as
ACCA, the American Business Press, and the Association of American
Publishers.  Some of the individual company customers and suppliers
that have been involved in the 1994 UPU Congress briefings included
Time-Warner, Tritech Services, and Pitney Bowes. 




   (See figure in printed
   edition.)


   U.S.  POLICY DEVELOPMENT: 
   PROCESS IN THE
   TELECOMMUNICATIONS SECTOR
----------------------------------------------------------- Letter :16

In the international telecommunications sector, the Department of
State was required to coordinate with other federal agencies and
private-sector advisory groups.  The process for involving government
and private-sector stakeholders in U.S.  policy formulation involved
a formalized advisory committee structure headed by the Department of
State, with regularly scheduled meetings that required public
notification in the Federal Register.  Required documentation
included detailed minutes of the proceedings as well as annual status
reports to Congress through a formal reporting process. 

The Department of State established the International
Telecommunications Advisory Committee (ITAC), which was chartered in
accordance with FACA.  FACA and its implementing regulations
generally require that (1) agendas and meeting information, such as
time, date, place, and purpose, be published in the Federal Register;
(2) detailed minutes of each advisory committee meeting be kept;\7
(3) an annual report be sent to GSA, which then is to report to
Congress on the activities, status, and any changes in the advisory
committees; and (4) the membership of the advisory committee be fully
balanced in terms of the points of view represented.  ITAC advised
the Department of State on matters concerning U.S.  participation in
ITU conferences and advisory group meetings; it was also the steering
committee for U.S.  study groups. 

Private-sector organizations that participated in policy development
through the advisory committee and study groups included major
industry associations, such as the Alliance for Telecommunications
Industry Solutions (ATIS) and the Telecommunications Industry
Association (TIA).  ATIS represents private carriers and is chartered
to develop and recommend national standards.  ATIS is a source of
technical support to study groups and working parties.  TIA
represents U.S.  equipment manufacturers and suppliers of
communication and information technology products.  TIA contributes
to voluntary industry standards and sponsors international trade
shows and missions to promote industry products.  Individual
companies, such as AT&T and Rockwell, also participated in these
committees and study groups. 

Briefing Section III

--------------------
\7 Detailed minutes are to include, among other things, the time,
date, and place of the meeting; a list of attendees, names of members
of the public who presented oral and written statements, an estimate
of the number of other members of the public present, an accurate
description of matters discussed and resolutions, if any; and copies
of documents received. 


U.S.  POLICY REPRESENTATION IN
INTERNATIONAL POSTAL AND
TELECOMMUNICATIONS ORGANIZATIONS
============================================================== Letter 



   (See figure in printed
   edition.)


   U.S.  INTERNATIONAL
   REPRESENTATION:  COMPARISON OF
   U.S.  DELEGATIONS TO THE UPU
   AND ITU
----------------------------------------------------------- Letter :17

   Source:  USPS and Department of
   State documents.

   (See figure in printed
   edition.)



      COMPARISON OF SECTOR
      REPRESENTATION IN THE
      SUPREME BODIES
--------------------------------------------------------- Letter :17.1

The U.S.  delegations to the UPU and ITU supreme bodies are
accredited by the Department of State.  Delegates to international
organizations must have credentials from their governments and were
generally selected by their respective governments for their
technical expertise.  The credentials can grant the delegate (1) full
powers--the right to speak, vote, and sign the organization's acts or
(2) only partial powers--the right to speak and/or vote.  Both the
UPU and ITU have requirements for observer status to the supreme
bodies.  Observers may also participate, under separate status from
membership in country delegations, in international organizations
under limited circumstances that may not include the right to speak
or vote. 

For comparison of the U.S.  representation to the UPU and ITU, we
reviewed the U.S.  delegations to the meetings of the supreme bodies
in 1994.  These delegations generally included a head of delegation,
deputy head(s), and members.  However, significant differences
existed in the composition of the U.S.  delegations to the supreme
and permanent bodies of the UPU and ITU, a reflection of the
different legally defined roles of the government agencies and
private-service providers involved in each sector.\8 Some agencies
had specific legally defined postal or telecommunications
responsibilities, while others had general legally defined
responsibilities that were not sector specific.  The U.S.  delegation
to the UPU Congress was led by and predominantly made up of USPS
officials and staff and a few Department of State officials; it did
not include private-sector companies.\9 In comparison, the U.S. 
delegation to the ITU Plenipotentiary was led by the Department of
State and included a broad range of government and private
stakeholders, mainly from the Department of State, NTIA, FCC, and
private-sector companies. 

Both international organizations have grappled with adapting their
organizations' structures to the evolving competitive postal and
telecommunications environments, which have seen rapid changes in the
roles of public and private service providers.  In the postal sector,
the distinction between public and private-service providers is
becoming more blurred as several foreign postal administrations have
recently acquired or developed partnerships with private delivery
companies.  Thus, as in the telecommunications sector, postal
delivery services are increasingly being provided by private as well
as public service providers. 




   (See figure in printed
   edition.)


--------------------
\8 See br.  section II for a discussion of the agencies' legally
defined roles. 

\9 A private-sector organization requested that it be included in the
U.S.  delegation to the 1994 UPU Congress, but the request was denied
by USPS. 


   POSTAL SECTOR REPRESENTATION IN
   THE UPU SUPREME BODY
----------------------------------------------------------- Letter :18

   Source:  UPU documents.

   (See figure in printed
   edition.)



      POSTAL SECTOR REPRESENTATION
      IN THE UPU SUPREME BODY
--------------------------------------------------------- Letter :18.1

The U.S.  delegations to the UPU Congresses typically consisted of a
head of delegation, a deputy head, delegates and accompanying
officials.  The composition of the U.S.  delegation was identified by
USPS and accredited by the Department of State.  The head of the U.S. 
delegation has been a USPS official, usually the Postmaster General. 
Members of the delegation have typically included other postal
officials as well as officials from the Department of State.  USPS
headed the delegation to the 1994 UPU Congress.  Twenty seven of the
32-member delegation to the UPU Congress in 1994 were from USPS; the
remaining 5 members of the delegation were from the Department of
State.  No private-sector representatives were included in the U.S. 
delegations to the UPU Congress.  ACCA had asked to be included, but
its request was denied by USPS.  ( See app.  II for a listing of the
U.S.  delegation to the 1994 Seoul UPU Congress.)

Observers to the UPU delegation may be allowed, under certain
circumstances, to take part in the debates without the right to vote. 
Observers may include representatives of the U.N.  organizations,
intergovernmental organizations, and Restricted Unions.\10 For
example, at the 1994 UPU Congress in Seoul there were observers from
the U.N.  International Civil Aviation Organization, the Conference
of European Post and Telecommunication, and the Postal Union of the
Americas, Spain and Portugal.  Nongovernmental international
organizations may also request admission to the UPU Congress as
nonvoting observers. 

Proposals are being developed for consideration at the next UPU
Congress that would include a "consultative status" for international
nongovernmental organizations.  The proposed consultative status
would allow nongovernmental international organizations to be present
and deliver opinions, but not vote, in most of the UPU meetings
without a formal invitation.  It is also proposed that organizations
having consultative status would contribute to the costs of the UPU. 




   (See figure in printed
   edition.)


--------------------
\10 A restricted union is a group of member countries that are formed
for the purpose of further advancing cooperation among postal
administrations and to improve postal services.  There are presently
14 restricted unions covering most of the world's regions. 


   INTERNATIONAL
   TELECOMMUNICATIONS SECTOR
   REPRESENTATION IN THE ITU
   SUPREME BODY
----------------------------------------------------------- Letter :19

   Source:  ITU and Department of
   State documents.

   (See figure in printed
   edition.)



      INTERNATIONAL
      TELECOMMUNICATIONS SECTOR
      REPRESENTATION IN THE ITU
      SUPREME BODY
--------------------------------------------------------- Letter :19.1

The U.S.  delegation to the 1994 ITU Plenipotentiary Conference was
drawn from the government and private sectors.  The Department of
State led the delegation to the ITU Plenipotentiary Conferences and
designated an appointee from the private sector to head the
delegation and gave him temporary special government employee status
with ambassador rank.  Five deputy heads of delegation were
appointed--one from the Department of State, one from FCC, one from
NTIA, and two from the private sector.  The Department of State
attempts to limit the number of delegates from the government to 10. 
In 1994, there were 6 delegates and 4 advisers, in addition to the
head of delegation and the 3 deputies from the government sector, for
a total of 14 in the delegation from the government sector. 

U.S.  delegates were also chosen from the private sector.  In 1994
there were 17 private-sector delegates and 6 advisers, in addition to
the 2 deputies and the chair of delegation, for a total of 26 in the
delegation from the private sector.  According to Department of State
officials, generally delegates were selected and assigned to attend
certain committee meetings based on their knowledge and expertise. 
(See app.  II for listing of U.S.  delegation to the 1994 ITU
Plenipotentiary Congress.)

Certain organizations are permitted to attend the ITU Plenipotentiary
Conference and participate as observers.  These observers do not vote
and are allowed to speak if called upon by the Chair of the
Conference.  The ITU is struggling with issues related to how
private-sector service providers should participate.  For example,
one issue that has been discussed in recent meetings held by the
Department of State is the potential that conflicts may develop when
multinational telecommunications corporations have delegates on more
than one country's delegation. 




   (See figure in printed
   edition.)


   U.S.  INTERNATIONAL
   REPRESENTATION:  COMPARISON OF
   U.S.  DELEGATIONS TO THE UPU
   AND ITU PERMANENT BODIES
----------------------------------------------------------- Letter :20

   Source:  USPS, UPU, ITU, and
   Department of State documents.

   (See figure in printed
   edition.)



      U.S.  INTERNATIONAL
      REPRESENTATION:  COMPARISON
      OF U.S.  DELEGATIONS TO THE
      UPU AND ITU PERMANENT BODIES
--------------------------------------------------------- Letter :20.1

The permanent bodies can be classified, in general, as those bodies
that address policy and administrative issues and those bodies that
address technical issues.  The UPU Council of Administrations (CA)
and the ITU Council focus primarily on administrative policy.  The
UPU Postal Operation Council (POC) and its committees and working
parties and the ITU Telecommunications Sector Advisory Group (TSAG)
and its study groups and working parties address primarily technical
issues. 

U.S.  delegations to the UPU CA have been made up predominantly of
USPS officials and staff.  A Department of State official has been
included in the U.S.  delegation to the UPU CA.  One CA committee
involves private-sector representatives primarily from associations
representing private competitors and was established to address
issues of interest to private competitors.  In comparison, the
delegation to the ITU Council includes no private-sector participants
and has been composed of officials from the Department of State,
NTIA, and FCC. 

The U.S.  delegations to the UPU POC meetings have been made up
exclusively of USPS officials.  In contrast, the delegations to the
ITU study groups and working parties have been composed of a broad
range of government and private stakeholders.  In addition,
private-service providers could participate in ITU permanent bodies
as sector members on their own behalf, rather than as U.S. 
delegates.  U.S.  participation in the ITU study groups and working
parties is primarily by the private sector. 




   (See figure in printed
   edition.)


   POSTAL SECTOR REPRESENTATION IN
   THE UPU PERMANENT BODIES
----------------------------------------------------------- Letter :21

   Source:  USPS and UPU
   documents.

   (See figure in printed
   edition.)



      POSTAL SECTOR REPRESENTATION
      IN THE UPU PERMANENT BODIES
--------------------------------------------------------- Letter :21.1

As previously stated, the UPU permanent bodies consist of the CA,
with 41 members, and the POC, with 40 members.  Individual committees
are supported by various study groups that assist in developing
proposals to be presented to the next UPU Congress. 

CA meetings were attended by members from postal administrations
and/or regulatory agencies.  The UPU General Regulations required
that each member of the CA appoint a representative competent in
postal matters.  Both USPS and Department of State officials attend
CA meetings on behalf of the United States. 

Participants in the POC committee meetings were members of the postal
administrations.  The UPU General Regulations required that each
member of the POC be appointed by the postal administration of his or
her country and that the representative be a qualified official of
the postal administration. 

Private-sector participants, including ACCA, were generally limited
to the Private Operators Contact Committee, which is a CA committee. 




   (See figure in printed
   edition.)


   TELECOMMUNICATIONS SECTOR
   REPRESENTATION IN THE ITU
   PERMANENT BODIES
----------------------------------------------------------- Letter :22

   Source:  ITU and Department of
   State documents.

   (See figure in printed
   edition.)



      INTERNATIONAL
      TELECOMMUNICATIONS SECTOR
      REPRESENTATION IN THE ITU
      PERMANENT BODIES
--------------------------------------------------------- Letter :22.1

The Telecommunication Standardization Sector is the part of the ITU
permanent body that hosts the World Telecommunications
Standardization Conference, which has an advisory body--TSAG--and
study groups.  World Telecommunications Standardization Conferences,
TSAG, and the study groups are open to representatives of
administrations, organizations authorized to participate in the work
of the union, and representatives of other study groups.  Generally,
the U.S.  delegations to the permanent bodies included
representatives from FCC, NTIA, and the Department of State. 
Private-sector stakeholders attended permanent body meetings as
delegates of the member country or separately as sector member
representatives.  As sector representatives, they could voice
positions that may be different from the official U.S.  positions. 
The ITU Council, which focuses primarily on administrative policy,
was attended exclusively by representatives from the major government
agencies. 

World Telecommunication Standardization Conferences are generally
held every 4 years.  These Conferences may approve, modify, or reject
standards (called Recommendations because of their voluntary
character), although this approval may also be attained at the study
group level.  They also approve the program of work for the study
groups and review progress on the implementation of the work program,
provide guidelines for the work of the study groups, and recommend
measures to foster cooperation and coordination.  The U.S. 
delegation to the conferences generally included officials from NTIA
and FCC as well as individuals from private-sector companies. 

Likewise, U.S.  delegations to the advisory committees and study
groups generally have included public and private-sector
stakeholders.  They were assigned as delegates to group meetings,
depending on their roles, responsibilities, and expertise.  For
example, in recent meetings of the TSAG and Study Group 3, Tariff and
Accounting Principles, government delegates included officials from
the Department of State, NTIA, and FCC; and private-sector delegates
included representatives from AT&T, MCI, and Ameritech.  State and
FCC representatives, along with GTE, Comsat, and Bellcore
representatives, among others, were delegates to Study Group 2,
Network and Service Operations.  In addition, AT&T and several other
companies sent additional representatives as sector members
participating on their own behalf. 


COMPARISON OF LEGAL ROLES AND
RESPONSIBILITIES OF U.S.  AGENCIES
INVOLVED IN THE UPU AND ITU
=========================================================== Appendix I

Agency/Legal authority  Roles and responsibilities
----------------------  --------------------------------------------------------
USPS
--------------------------------------------------------------------------------
39 U.S.C. 407(a) and     Negotiates and concludes postal treaties or
(b)                     conventions with the consent of the President
                         Transmits copies of each postal convention concluded
                        to the Secretary of State for publication
                         Establishes the rates of postage or other charges on
                        mail matter between the United States and other
                        countries


Department of State
--------------------------------------------------------------------------------
22 U.S.C. 2656           Serves as President's principal adviser on U.S.
                        foreign policy and is responsible for formulating
                        and executing U.S. foreign policy

1 Foreign Affairs        Accredits U.S. delegations to international
Manual 331.1            organizations and conferences

22 U.S.C. 2707           Formulates, coordinates and oversees foreign policy
                        related to international
                        telecommunications and information policy issues
                        including:
                         Exercises primary authority for determining U.S.
                        positions and conducting negotiations with
                        foreign governments and international bodies
                        with respect to telecommunications policy
                         Coordinates with FCC, Department of Commerce, USTR,
                        and other agencies in developing international
                        telecommunications policy
                         Supervises and coordinates senior interagency policy
                        groups on international telecommunications and
                        information policy, chairing meetings as appropriate
                         Acts as liaison with representatives of the private
                        sector to ensure that matters of concern
                        are considered by the Department of State or
                        other executive branch agencies
                         Assists in arranging meetings of public sector
                        advisory groups that are to advise the
                        Department of State and other executive branch
                        agencies of international communications
                        and information policy issues


Department of Commerce
--------------------------------------------------------------------------------
19 U.S.C. 2114b          Establishes a Service Industry Development Plan in
                        which it (among other things) develops, in
                        consultation with other federal agencies as
                        appropriate, policies regarding services
                        (including telecommunications) that are designed
                        to increase the competitiveness of U.S.
                        service industries in foreign commerce
                         Prepares a biannual report to Congress and President
                        analyzing information pertaining to
                        competitiveness collected under the Plan

19 U.S.C. 2114c          Provides staff support and other assistance for
                        negotiations on service-related issues by the
                        USTR and the domestic implementation of service-
                        related agreements

47 U.S.C. 902            Serves as the President's principal adviser on
(NTIA)                  telecommunications policies pertaining to the
                        Nation's economic and technological advancement
                        and to the regulation of the
                        telecommunications industry
                         Develops plans, policies, and programs relating to
                        international telecommunications issues,
                        conferences, and negotiations in coordination
                        with Department of State and other agencies
                         Coordinates economic, technical, and operational
                        preparation for U.S. participation in
                        international telecommunications conferences and
                        negotiations
                         Advises and supports Department of State in developing
                        international telecommunication
                        policies
                         Establishes, as permitted, interagency committees and
                        working groups composed of
                        representatives of interested agencies
                         Conducts studies and evaluations on telecommunications
                        research and development and use
                        of federal telecommunications systems
                         Advises OMB on development of policies on procurement
                        and management of federal
                        telecommunications systems


Federal Communications Commission
--------------------------------------------------------------------------------
47 U.S.C. 151            Regulates and develops policies concerning interstate
                        and international telecommunication
                         Administers the implementation of international
                        telecommunication policies and obligations
                         Participates in international conferences and provides
                        advice and technical assistance to U.S.
                         trade officials in negotiation/implementation
                        of telecommunications trade agreements
                         Conducts economic, legal, technical, statistical/
                        other appropriate studies in support of
                        international telecommunications policies and
                        programs
                         Encourages competition in all communications markets
                        and protects the public interest
                         Promotes competition in the public interest
                         Coordinates with Department of State in advisory
                        groups in preparation of negotiations


Department of Justice
--------------------------------------------------------------------------------
15 U.S.C. 1-7            Reviews antitrust issues and mergers and enforces
                        federal antitrust laws
                         Reviews competition issues


U.S. Trade Representative
--------------------------------------------------------------------------------
19 U.S.C. 2114c          Negotiates service-related issues (including
                        telecommunications service) with staff support
                        provided by Commerce together with other
                        appropriate agencies as requested by USTR

19 U.S.C. 2171           Lead responsibility for developing and coordinating
                        implementation of U.S. international trade
                        policy
                         Lead responsibility for conduct of, and shall be the
                        chief representative of the U.S. for,
                        international trade negotiations, including all
                        negotiations on any matter considered under the
                        auspices of the WTO in which the U.S.
                        participates
                         Issues and coordinates policy guidance to departments
                        and agencies on basic issues of policy
                        and interpretation arising in the exercise of
                        international trade functions
                         Acts as principal trade advisor, negotiator, and
                        spokesperson for the President on trade issues
                         Receives staff/other assistance from Commerce and
                        other agencies for negotiation and
                        implementation
                         Responsible for complaints regarding unfair trade
                        practices


Office of Management and
Budget
--------------------------------------------------------------------------------
31 U.S.C. 1111           Coordinates and manages the executive branch

40 U.S.C. 25             Leads in domestic telecommunications procurement along
                        with the GSA
--------------------------------------------------------------------------------
Sources:  U.S.  Code and the Foreign Affairs Manual of the Department
of State. 


U.S.  REPRESENTATION AT UPU AND
ITU 1994 SUPREME BODIES
========================================================== Appendix II



                                    Table II.1
                     
                       U.S. Delegation to 1994 UPU Congress

U.S. Delegation                                                           Agency
------------------------------------------------------------  ------------------
Delegation heads
--------------------------------------------------------------------------------
Postmaster General/CEO                                                      USPS
 Senior Director, International Postal Affairs                              USPS

Assistant head
--------------------------------------------------------------------------------
Deputy Postmaster General                                                   USPS
 Chief Operating Officer/Executive V.P.                                     USPS

Delegates
--------------------------------------------------------------------------------
U.S. Ambassador to Korea                                                   State
 Deputy Chief of Mission                                                   State
 Senior Adviser to Postmaster General                                       USPS
 Chief Postal Inspector                                                     USPS
 Vice President, Controller                                                 USPS
 Vice President, Operations Redesign                                        USPS
 Program Manager, UPU Affairs                                               USPS
 Program Manager, Terminal Dues                                             USPS
 Program Manager, Tech. Cooperation                                         USPS
 Manager, International & Military Mail Operations                          USPS
 Manager, Strategic & International Finance                                 USPS
 Group Manager, External Liaison                                            USPS
 Manager, Administration Office of PMG                                      USPS
 Group Manager, International Product Development                           USPS
 Attorney                                                                   USPS
 Program Manager, Classification                                            USPS
 U.S. Postal Inspector, External Liaison Group                              USPS
 U.S. Postal Inspector, External Liaison Group                              USPS
 International Postal Affairs Specialist                                    USPS
 International Postal Affairs Specialist                                    USPS
 International Relations Specialist                                         USPS
 Deputy Director, Industrial and Communications Programs                   State
 Financial Management Officer                                              State
 Second Secretary                                                          State

Advisers
--------------------------------------------------------------------------------
Manager, Stamp Services                                                     USPS
 Marketing Specialist                                                       USPS
 Office Manager                                                             USPS
 Staff Assistant                                                            USPS
--------------------------------------------------------------------------------
Sources:  USPS and UPU documents. 



                                    Table II.2
                     
                           U.S. Delegation to 1994 ITU
                            Plenipotentiary Conference

U.S. Delegation                          Agency or company
---------------------------------------  ---------------------------------------
Delegation head

Ambassador                               Special Government Employee at State


Deputy head
--------------------------------------------------------------------------------
Senior Deputy U.S. Coordinator           State
Senior Attorney Adviser                  FCC
Director, Int'l Regulation and           NTIA
Technology Division                      Computer Sciences
Senior Engineer                          Bell South
Executive Director, International
Relations


Private-sector delegates
--------------------------------------------------------------------------------
Program Director                         SEA Incorporated
Director, International Government       Iridium
Affairs                                  AT&T
Director, Federal Government Affairs     COMSAT
Director, Industry and Government        Southwestern Bell
Planning
Assistant VP, Government and             Fisher, Wayland, Cooper and Leader
International                            Stanford Telecom
Relations                                IBM
Senior Partner                           MCI International
Electrical Engineer                      Motorola
Director, Telecommunications and
Standards                                American Mobile Satellite Corp.
Senior Staff Specialist                  Hill and Knowlton
V.P. and Director, Global                Motorola
Telecommunications                       ICA
Relations                                American Radio Relay League
V.P. and Regulatory Counsel              Nynex
Senior V.P.                              Computer Science Corporation
Deputy to Chief Executive Office
Manager, International Public Policy
Manager, Technical Relations
Director, International Standards
Associate Program Manager


Government agency delegates
--------------------------------------------------------------------------------
Telecommunications Manager               U.S. Information Agency
Attorney Adviser                         State
Director, Telecom Policy, Mexico and     State
Micronesia                               State
Multilateral Affairs Officer             FCC
Senior Legal Adviser                     NTIA
Associate Administrator


Private-sector advisers
--------------------------------------------------------------------------------
Director, Technical Standards            AT&T
V.P., International Services             AT&T
Manager, Global Telecom                  Motorola
International Telecom Partner            Reid & Priest
President                                CompassRose International
Executive Staff Member                   MCI International


Government agency advisers
--------------------------------------------------------------------------------
Senior Counsel                           NTIA
Adviser for ITU Affairs                  State
Deputy Director, Space & Nuclear         Defense Department
Chairman for the Radio Consultive        State
Committee
National Committee
--------------------------------------------------------------------------------
Source:  ITU documents. 




(See figure in printed edition.)Appendix III
COMMENTS FROM USPS
========================================================== Appendix II


MAJOR CONTRIBUTORS TO THIS
BRIEFING REPORT
========================================================== Appendix IV

GENERAL GOVERNMENT DIVISION,
WASHINGTON, D.C. 

Teresa L.  Anderson, Assistant Director
Thomas M.  Sharkey, Senior Economist
Bradley Dubbs, Evaluator
Hazel Bailey, Evaluator (Communications Analyst)

OFFICE OF THE GENERAL COUNSEL,
WASHINGTON, D.C. 

Jill Poses Sayre, Senior Attorney


*** End of document. ***