From: editor@cdt.org (Bob Palacios)
Date: Sat, 13 Jul 1996 14:42:58 +0800
To: cypherpunks@toad.com
Subject: CDT Policy Post 2.27 - No New News on Crypto: Gore Restates Support for Key Escrow
Message-ID: <v02140b1bae0c80b15a2e@[204.157.127.16]>
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   The Center for Democracy and Technology  /____/     Volume 2, Number 27
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      A briefing on public policy issues affecting civil liberties online
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 CDT POLICY POST Volume 2, Number 27                        July 12, 1996

 CONTENTS: (1) No New News on Encryption - VP Gore Reiterates Support for
               Key Escrow
           (2) How to Subscribe/Unsubscribe
           (3) About CDT, contacting us

  ** This document may be redistributed freely with this banner intact **
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(1) NO NEW NEWS ON ENCRYPTION - VP GORE REITERATES SUPPORT FOR KEY ESCROW

Despite the growing pressure from Congress, privacy advocates, the computer
industry, and the public for the reform of US encryption policy, the
Administration continues to embrace its Clipper III key-escrow encryption
proposal.  In a written statement issued Friday (7/12), the Vice President
announced that the Administration will continue to push for the adoption of
a massive public key infrastructure to enable law enforcement access to
encryption communications and continue to rely on cold war-era export
controls.

[The full text of the announcement is available on CDT's Encryption
 Policy Issues Page: http://www.cdt.org/crypto/]

CDT is disappointed that the Administration's latest statement offered no
new solutions to what is becoming a critical policy issue for the future of
the Internet and the development of a secure and trusted global information
infrastructure.

Friday's announcement comes amid growing concern from bi-partisan members
of Congress, computer industry leaders, privacy advocates, and the public.
Recent calls for changes in current US encryption policy include:

* Bipartisan legislation in both the House and Senate designed to relax
  US encryption export controls and encourage the widespread
  availability of strong, easy to use encryption technologies.

* The Security and Freedom through Encryption (SAFE) Forum, held on July
  1st, where members of Congress, computer industry leaders, privacy
  advocates and the public discussed the need to reform US encryption
  policy.

* The recent report by the National Research Council which criticizes
  current policy as failing to address the needs of an information age
  society.

These developments represent a growing consensus among members of Congress,
the computer industry, and privacy advocates that current US encryption
policy is harming the competitiveness of US industry and endangering the
privacy of computer users. Our understanding of this consensus does not
match the conclusion the Vice President reaches that: "A consensus is
emerging around the vision of a global cryptography system that permits the
use of any encryption method the user chooses, with a stored key to unlock
when necessary". CDT sees no evidence of broad support for a key escrow
approach.

While the Administration seems to acknowledge the importance of encryption
for privacy and electronic commerce, neither the current policy nor its
predecessors have met the needs which virtually all involved in this debate
now see. Since 1992, the Administration has continued to offer solutions
which fail to recognize the privacy needs of individual computer users and
the realities of the global economy.  While law enforcement and national
security considerations are important factors which must be addressed, the
Administration's current proposal, along with Clipper I and Clipper II,
continues to put law enforcement and national security concerns above the
privacy and security needs of the American public.

SUMMARY OF VICE PRESIDENT GORE'S STATEMENT

While putting forward an initiative ostensibly designed to make encryption
more available to computer users, the Administration would do so at a high
price: Individuals would be required to place their most private personal
encryption keys in the hands of third parties.

Today's statement is essentially a re-statement of the Clipper III proposal
released in May.  Among other things, the Vice President:

*  Called for the liberalization of export controls provided computer
   users participate in a "global key management infrastructure"
   designed to make personal encryption keys accessible to law
   enforcement.

*  Reiterated the Administration's opposition to the bipartisan
   encryption legislation introduced this Spring in the House and
   Senate, which would ease export controls.

*  Announced that a Cabinet Committee will send detailed
   recommendations regarding implementation of this proposal to the
   President by early September.

*  Indicated that the Administration "is considering" interim measures
   until a key escrow system is in place, including:

   -  Liberalizing export controls for certain industries,

   -  Developing performance standards for key recovery systems that
      will be eligible for export.

   -  Launching key recovery pilot projects.

   -  Moving jurisdiction over encryption export licenses from
      the State Department to the Commerce Department (The Burns/Leahy
      Pro-CODE bill contains a similar provision).

The full text of the Vice President's Statement, along with the Clipper III
proposal, the text of the Pro-CODE bill and other legislation, and
detailed background information on the encryption policy debate, is
available on CDT's encryption policy resource page:

   http://www.cdt.org/crypto/

CDT believes that a far more sensible approach to encryption is offered by
the bipartisan legislation introduced this Spring to ease export controls,
including:  S. 1726, the Pro-Code Act introduced by Senators Burns (R-MT),
Leahy (D-VT), Pressler (R-SD), Lott (R-MS), Wyden (D-OR), Simpson (R-WY),
Murray (D-WA), and others; S.1567, authored by Sen. Leahy with many of the
same co-sponsors; and H.R. 3011, introduced by in the House of
Representatives by Reps. Bob Goodlatte (R-VA), Anna Eshoo (D-CA), Tom
Campbell (R-CA) Zoe Lofgren (D-CA), and a bi-partisan group of over 20
others.

NEXT STEPS

CDT will continue to work with Senators Burns, Leahy, Pressler, Wyden and
Reps, Eshoo, Goodlatte, and others to encourage the widespread availability
of strong encryption by pushing for passage of legislation to relax export
controls on encryption.  The full Senate Commerce Committee, chaired by
Senator Larry Pressler (R-SD), is expected to hold hearings on the Pro-CODE
bill during the week of July 22. CDT is working to cybercast that hearing
live on the Internet. Please continue to visit CDT's encryption policy
issues page for the latest information on this issue.

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(2) SUBSCRIPTION INFORMATION

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(3) ABOUT THE CENTER FOR DEMOCRACY AND TECHNOLOGY/CONTACTING US

The Center for Democracy and Technology is a non-profit public interest
organization based in Washington, DC. The Center's mission is to develop
and advocate public policies that advance democratic values and
constitutional civil liberties in new computer and communications
technologies.

Contacting us:

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End Policy Post 2.27                                            7/12/96
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