ACCESSION NUMBER:00000
FILE ID:96072503.ECO
DATE:07/25/96
TITLE:25-07-96  TEXT: ADMINISTRATION STATEMENT ON COMMERCIAL ENCRYPTION

TEXT:
(International agreement sought for security, safety)  (730)

Washington -- The Clinton administration has proposed a framework for
an international agreement that would give law-enforcement officials
around the world some access to encrypted information in telephone
transmissions, electronic mail and Internet communications.

A July 12 press release from the U.S. Department of Commerce gives the
essence of the proposal, which would entail use of private-sector
third parties who would hold spare keys to encryption tools and would
surrender them to law-enforcement officials having proper authority.

While developing this proposal, the administration would consider
relaxing U.S. export controls on encryption technology.

Following is the text of the administration statement:

(begin text)

Administration Statement on Commercial Encryption Policy The Clinton
administration is proposing a framework that will encourage the use of
strong encryption in commerce and private communications while
protecting the public safety and national security. It would be
developed by industry and will be available for both domestic and
international use. The framework will permit U.S. industry to take
advantage of advances in technology pioneered in this country and to
compete effectively in the rapidly changing international marketplace
of communications, computer networks, and software. Retaining U.S.
industry's leadership in the global information technology market is
of longstanding importance to the Clinton administration. The
framework will ensure that everyone who communicates or stores
information electronically can protect his or her privacy from prying
eyes and ears as well as against theft of, or tampering with, their
data. The framework is voluntary; any American will remain free to use
any encryption system domestically. The framework is based on a global
key management infrastructure that supports digital signatures and
confidentiality. Trusted private-sector parties will verify digital
signatures and also will hold spare keys to confidential data. Those
keys could be obtained only by persons or entities that have lost the
key to their own encrypted data, or by law enforcement officials
acting under proper authority. It represents a flexible approach to
expanding the use of strong encryption in the private sector. This
framework will encourage commerce both here and abroad. It is similar
to the approach other countries are taking and will permit nations to
establish an internationally inter-operable key management
infrastructure with rules for access appropriate to each country's
needs and consistent with law enforcement agreements. Administration
officials are currently working with other nations to develop the
framework for that infrastructure. In the expectation of industry
action to develop this framework internationally and recognizing that
this development will take time, the administration intends to take
action in the near term to facilitate the transition to the key
management infrastructure. The measures the administration is
considering include:
1. Liberalizing export controls for certain commercial encryption
products. 2. Developing, in cooperation with industry, performance
standards for key recovery systems and products that will be eligible
for general export licenses and technical standards for products the
government will purchase. 3. Launching several key recovery pilot
projects in cooperation with industry and involving international
participation. 4. Transferring export control jurisdiction over
encryption products for commercial use from the Department of State to
the Department of Commerce. Administration officials continue to
discuss the details of these actions with experts from the
communications equipment, computer hardware and software industries,
civil liberties groups and other members of the public to ensure that
the final proposal balances industry actions towards the proposed
framework, short-term liberalization initiatives, and public safety
concerns. The administration does not support the bills pending in
Congress that would decontrol the export of commercial encryption
products because of their serious negative impact on national security
and law enforcement. Immediate export decontrol by the U.S. could also
adversely affect the security interests of our trading partners and
lead them to control imports of U.S. commercial encryption products. A
Cabinet committee continues to address the details of this proposal.
The committee intends to send detailed recommendations to the
president by early September, including any recommendations for
legislation and executive orders. The committee comprises the
secretaries of State, Defense, Commerce and Treasury; the attorney
general; the directors of Central Intelligence and the Federal Bureau
of Investigation; and senior representatives from the Office of the
Vice President, the Office of Management and Budget, and the National
Economic Council.

(end text)
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