In recent studies (Spencer and Christy, 1990; and Spenceret al., 1990) it is suggested that observations at 53.74 GHz made by the Microwave Sounding Unit (MSU), flown on NOAA operational weather satellites, can yield a precise estimate of global mean temperature and its change as a function of time. Hansen and Wilson (1993) question their interpretation of temporal changes on the grounds that the microwave observations could be influenced by the opacity of the variable constituents in the atmosphere. This issue has broad interest because of the importance of detection of global climatic change. In order to help resolve this issue, in this study we utilize a radiative transfer model to simulate: (a) the observations of MSU Channel 1 (Ch. 1) at 50.3 GHz, in the weakly absorbing region of the 60 GHz molecular oxygen absorption band; and (b) the observations of MSU Channel 2 (Ch. 2) at 53.74 GHz, in the moderately strong absorption region of the same band. This radiative transfer model includes extinction due to clouds and rain in addition to absorption due to molecular oxygen and water vapor. The model simulations show that, over the oceans, extinction due to rain and clouds in Ch. 1 causes an increase in brightness temperature, while in Ch. 2 it causes a decrease. Over the land, however, both Ch. 1 and Ch. 2 show a decrease in brightness temperature due to rain and cloud extinction. These theoretical results are consistent with simultaneous observations in Ch. 1 and Ch. 2 made by MSU. Based on theory and observations we infer that a substantial number of the MSU observations at 53.74 GHz used by Spenceret al. contain rain and cloud contamination. As a result, their MSU derived global mean temperatures and long term trend is questionable.