03 December 1998
(U.S. applauds Wassenaar move to improve controls) (422) Washington -- The U.S. government praised a decision reached December 3 by the members of the Wassenaar Arrangement to modernize and improve multilateral encryption export controls. The international agreement, reached at a meeting in Vienna of the 33 Wassenaar members, "goes a long way toward leveling the playing field for exporters and promoting electronic commerce," said Ambassador David Aaron, the President's Special Envoy for Cryptology. "It provides countries with a stronger regulatory framework to protect national security and public safety," said Aaron, who is also under secretary of commerce for international trade. Following is a Commerce Department press release on the agreement and the U.S. reaction: (begin text) Press Statement U.S. Applauds Agreement on Encryption in International Export Control Regime Vienna, Austria -- The United States welcomed the decision taken Thursday in Vienna by the 33 members of the Wassenaar Arrangement to modernize and improve multilateral encryption export controls. Ambassador David Aaron, the President's Special Envoy for Cryptology, said that "the international agreement reached here goes a long way toward leveling the playing field for exporters and promoting electronic commerce. It provides countries with a stronger regulatory framework to protect national security and public safety." The agreement caps a two year effort by the United States, to update international encryption export controls and to balance commercial and privacy interests with national security and public safety concerns. Thursday's agreement simplifies and streamlines controls on many encryption items and eliminates multilateral reporting requirements. Specific improvements to multilateral encryption controls include removing controls on all encryption products at or below 56 bit and certain consumer entertainment TV systems, such as DVD products, and on cordless telephone systems designed for home or office use. Wassenaar members also agreed to extend controls to mass-market encryption exports above 64 bits, thus closing a significant loophole in multilateral encryption controls. This gives Wassenaar member governments the legal authority to license many mass market encryption software exports which were previously not covered by multilateral controls and enables governments to review the dissemination of the strongest encryption products that otherwise might fall into the hands of rogue end users. The new controls also extend liberalized treatment to mass-market hardware below 64 bits. Until today, only mass-market software products enjoyed this liberalized treatment. "The decisions taken here in Vienna reinforce the Administration's efforts to promote a balanced encryption policy," Aaron confirmed. (end text)