The present deadlock between Western Europe and U.S.A. reflects a difference in emphasis on motivation largely traceable to the space technology gap. The problem is to establish institutional and work sharing arrangements bridging U.S. desire for early commercial space exploitation and European desire to promote its industrial space techology. The European approach is compatible with I.C.A.O. and I.A.T.A. preference for a non-operational experimental first phase Aerosat programme, and unless a compromise with U.S.A. is reached the best solution may be a European E.S.R.O. programme able to cater for the experimental mobile satellite communication system requirements of both aviation and shipping. The paper was presented at the Conference on Aeronautical and Maritime Satellite Systems held in London on 13–15 March and sponsored jointly by the Institution of Electrical Engineers with this Institute, the Institution of Electronic and Radio Engineers and the European Space Research Organization.