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The Nation

August 11, 1987

The federal government has decided not to shoulder liability for damage that might result from commercial rocket launches at its facilities and is requiring U.S. rocket companies to pay millions of dollars in insurance costs that their government--subsidized foreign competitors do not have to bear. The terms were laid out in a model agreement approved recently by the Air Force. Last week, Martin Marietta Corp. became the first company to sign an Air Force contract based on the model.

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