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This option would seek to discourage the development of KEASAT weapons by banning testing against orbiting objects.
It is difficult to imagine any circumstances in which the use of a KEASAT could reduce the creation of outer-space debris, but other forms of "damage or destruction of outer space objects" might.
Aggressive use of KEASATs, or weapons developed as BMD but having ASAT capability, requires high confidence in their ability to achieve a prompt knockout; otherwise a preemptive or surprise attack plan may go awry, with potentially disastrous consequences for the attacker.