THE WHITE HOUSE


                    Office of the Press Secretary


  _______________________________________________________________
  For Immediate Release                         November 15, 1996



                           EXECUTIVE ORDER


                            - - - - - - -


     ADMINISTRATION OF EXPORT CONTROLS ON ENCRYPTION PRODUCTS



       By the authority vested in me as President by the
  Constitution and the laws of the United States of America,
  including but not limited to the International Emergency
  Economic Powers Act (50 U.S.C. 1701 et seq.), and in order to
  take additional steps with respect to the national emergency
  described and declared in Executive Order 12924 of August 19,
  1994, and continued on August 15, 1995, and on August 14, 1996,
  I, WILLIAM J. CLINTON, President of the United States of
  America, have decided that the provisions set forth below shall
  apply to administration of the export control system maintained
  by the Export Administration Regulations, 15 CFR Part 730
  et seq. ("the EAR").  Accordingly, it is hereby ordered as
  follows:


       Section 1.  Treatment of Encryption Products.  In order
  to provide for appropriate controls on the export and foreign
  dissemination of encryption products, export controls of
  encryption products that are or would be, on this date,
  designated as defense articles in Category XIII of the
  United States Munitions List and regulated by the United States
  Department of State pursuant to the Arms Export Control Act,
  22 U.S.C. 2778 et seq. ("the AECA"), but that subsequently are
  placed on the Commerce Control List in the EAR, shall be subject
  to the following conditions:  (a)  I have determined that the
  export of encryption products described in this section could
  harm national security and foreign policy interests even where
  comparable products are or appear to be available from sources
  outside the United States, and that facts and questions
  concerning the foreign availability of such encryption products
  cannot be made subject to public disclosure or judicial review
  without revealing or implicating classified information that
  could harm United States national security and foreign policy
  interests.  Accordingly, sections 4(c) and 6(h)(2)-(4) of
  the Export Administration Act of 1979 ("the EAA"), 50 U.S.C.
  App. 2403(c) and 2405(h)(2)-(4), as amended and as continued
  in effect by Executive Order 12924 of August 19, 1994, and
  by notices of August 15, 1995, and August 14, 1996, all
  other analogous provisions of the EAA relating to foreign
  availability, and the regulations in the EAR relating to such
  EAA provisions, shall not be applicable with respect to export
  controls on such encryption products.  Notwithstanding this,
  the Secretary of Commerce ("Secretary") may, in his discretion,
  consider the foreign availability of comparable encryption
  products in determining whether to issue a license in a
  particular case or to remove controls on particular products,
  but is not required to issue licenses in particular cases or
  to remove controls on particular products based on such
  consideration;


       (b)  Executive Order 12981, as amended by Executive
  Order 13020 of October 12, 1996, is further amended as follows:


       (1)  A new section 6 is added to read as follows:
  "Sec. 6.  Encryption Products.  In conducting the license
  review described in section 1 above, with respect to export
  controls of encryption products that are or would be, on
  November 15, 1996, designated as defense articles in Category




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  XIII of the United States Munitions List and regulated by the
  United States Department of State pursuant to the Arms Export
  Control Act, 22 U.S.C. 2778 et seq., but that subsequently are
  placed on the Commerce Control List in the Export Administration
  Regulations, the Departments of State, Defense, Energy, and
  Justice and the Arms Control and Disarmament Agency shall have
  the opportunity to review any export license application
  submitted to the Department of Commerce.  The Department of
  Justice shall, with respect to such encryption products, be a
  voting member of the Export Administration Review Board
  described in section 5(a)(1) of this order and of the Advisory
  Committee on Export Policy described in section 5(a)(2) of this
  order.  The Department of Justice shall be a full member of the
  Operating Committee of the ACEP described in section 5(a)(3) of
  this order, and of any other committees and consultation groups
  reviewing export controls with respect to such encryption
  products."


       (2)  Sections 6 and 7 of Executive Order 12981 of
  December 5, 1995, are renumbered as new sections 7 and 8,
  respectively.


       (c)  Because the export of encryption software, like the
  export of other encryption products described in this section,
  must be controlled because of such software's functional
  capacity, rather than because of any possible informational
  value of such software, such software shall not be considered
  or treated as "technology," as that term is defined in
  section 16 of the EAA (50 U.S.C. App. 2415) and in the EAR
  (61 Fed. Reg. 12714, March 25, 1996);


       (d)  With respect to encryption products described in this
  section, the Secretary shall take such actions, including the
  promulgation of rules, regulations, and amendments thereto, as
  may be necessary to control the export of assistance (including
  training) to foreign persons in the same manner and to the same
  extent as the export of such assistance is controlled under the
  AECA, as amended by section 151 of Public Law 104-164;


       (e)  Appropriate controls on the export and foreign
  dissemination of encryption products described in this section
  may include, but are not limited to, measures that promote the
  use of strong encryption products and the development of a key
  recovery management infrastructure; and


       (f)  Regulation of encryption products described in this
  section shall be subject to such further conditions as the
  President may direct.


       Sec. 2.  Effective Date.  The provisions described in
  section 1 shall take effect as soon as any encryption products
  described in section 1 are placed on the Commerce Control List
  in the EAR.


       Sec. 3.  Judicial Review.  This order is intended only to
  improve the internal management of the executive branch and to
  ensure the implementation of appropriate controls on the export
  and foreign dissemination of encryption products.  It is not
  intended to, and does not, create any rights to administrative
  or judicial review, or any other right or benefit or trust
  responsibility, substantive or procedural, enforceable
  by a party against the United States, its agencies or
  instrumentalities, its officers or employees, or any other
  person.




                        WILLIAM J. CLINTON


  THE WHITE HOUSE,
      November 15, 1996.



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