From: Magus Mixmaster Anonymous Remailer Service <mix@magusnet.com>
Date: Mon, 15 Sep 1997 09:38:02 +0800
To: cypherpunks@toad.com
Subject: What really happend in DC
Message-ID: <199709150133.SAA08718@mail.magusnet.com>
MIME-Version: 1.0
Content-Type: text/plain



Several people have asked me for the real story of what went on in Washington. Here it is.

Some carpetbaggers (EFF, CDT, etc.) went to DC without having the first clue how the game is being played. Oblivious to the fact that Congress will not, can not, pass a pro-crypto bill, they found a few Congress people that either believed in the issue or at least thought they could milk it for publicity. Some bills were proposed and sent on their way.

Meanwhile, the real players were laughing their butt off. Their project was right on track. Using a time honored mixture of incentivising and FUD, GAK was pushed upon industry.

The real players know that banking will require strong crypto, so banking and financial transaction information are exempt from the export prohibition. This conveniently opens the most lucrative market segment of the worldwide crypto business to US companies, thereby reducing, if not eliminating, the business case for fighting export restrictions. If not eliminating because on the other end of the crypto spectrum, the export regs and GAK are irrelevant for all practical purposes. It simply doesn't matter for most people if their love letters are protected by 40 bits or by 128 bits. Nor will it matter if the crypto used has GAK or not. Unless they are into some _really_ kinky stuff.

The market segment between is too small to make it economical for large businesses (the only one's with clout and the only ones about who's campaign contributions one should worry) to fight over this issue with a very determined government.

With industry removed as an opponent (ignore for the moment the voices still originating from some industry spokespeople. They and their jobs will go away as their managers come to realize that said voices have a negative rate of return), only civil liberty groups are left. And as I mentioned earlier, those don't have any clue about the nature of the game at the national security (as in the very survival of governemt) level. The Four Horsemen can just ride right over them.

With the bull worn and tired, all that is left to do is the coupe de grace. Since Congress has become aware that crypto is an issue and since many lawmakers know by now that there would be some law, the bills already in Congress were simply rewritten. No point in wasting time by introducing a new bill.

Some may ask what the effect of all this will be. Simple:

o The "reliable parties" that need strong crypto will have strong crypto.
o Those that don't really need strong crypto won't have it.
o The government has new and better surveillance and control capabilities.
o The Cypherpunks attack on the State has been rebuffed, since the widespread use of strong crypto it requires won't occur. (Just to help those that will counter by saying that they'll still have a copy of PGP save some time: this is utterly irrelevant. The individual, or even a group of individuals can never be a danger to the State. Annoying perhaps, but not a danger to its existance. In fact, the occasional Cypherpunks with his copy of PGP provides a net benefit to the State. Just as the occasional terrorist or nutcase with a rifle does).