15 December 1999
Source:
http://www.usia.gov/cgi-bin/washfile/display.pl?p=/products/washfile/latest&f=99121401.clt&t=/products/washfile/newsitem.shtml
US Department of State
International Information Programs
Washington File
_________________________________
14 December 1999
(Reinsch cites need for further consultations) (395)
The Clinton administration has postponed the release of new
regulations for the export of U.S. encryption software until January
14.
The administration had planned to issue the new regulations on the
data-scrambling software exports on December 15, but chose to delay
the release to "permit further consultations with affected parties,"
said Under Secretary of Commerce William Reinsch in a statement issued
late December 13. Reinsch heads Commerce's Bureau of Export
Administration, which overseas U.S. export controls.
A draft of the proposed regulations was released November 19, as a
follow-up to a September announcement that U.S. encryption export
policy would be updated to meet the needs of the U.S. industry to be
globally competitive, while providing for national security
protections.
"Given the significant changes since the November 19 draft, we believe
there would be real benefit to another round of review and
consultations," Reinsch said.
The proposed changes, especially in the area of source code and
encryption development toolkits, have gone further than promised in
September, Reinsch added, "and that is another reason for this
review."
Following is the text of Reinsch announcement:
(begin text)
Bureau of Export Administration
U. S. Department of Commerce
Washington, D.C.
December 13, 1999
Statement of Commerce Under Secretary William A. Reinsch On Delay of
Encryption Regulation
The Administration decided today to delay the release of its pending
regulation on encryption exports no later than January 14, 2000 to
permit further consultation with affected parties. The consultations
we have had with various companies, industry groups and privacy
organizations have been very valuable in helping determine how to
match the pending regulations to industry practices in a manner
consistent with our September 16 announcement.
Given the significant changes since the November 19 draft, we believe
there would be real benefit to another round of review and
consultations before we issue the regulation. In responding to
specific business cases brought to us by industry, especially in the
area of source code and encryption development toolkits, we have gone
further in the regulation than we promised in September, and that is
another reason for this review.
We expect to circulate another draft for comment shortly.
(end text)
(Distributed by the Office of International Information Programs, U.S.
Department of State.)
From: rodger@att.net
To: cryptography@c2.net
Subject: White House floats yet another crypto policy
Date: Wed, 15 Dec 1999 03:04:06 +0000
From: http://www.usatoday.com/life/cyber/tech/ctg899.htm
By Will Rodger, USATODAY.com
Clinton Administration officials said Tuesday they intend to further relax export controls over Internet privacy technologies.
The action comes in the wake of protests lodged by industry and congressional critics alike since the White House released its last proposal Nov. 19.
Critics complained then that the White House had back-tracked on a Sept. 16 announcement that seemed to promise liberalization across the board.
Commerce Undersecretary William Reinsch said Tuesday that his department is preparing new drafts that should address the disputed items. "These are drafts that we intend to share with industry. We’ll be getting those to them shortly."
Large Internet companies including Cylink Corp., America Online and RSA Inc. have long pushed for further export liberalization in order to increase sales abroad. Liberalization, they argue, will not just increase US sales, but add greater security to an Internet which is increasingly subject to attacks by hackers and thieves.
But the FBI and National Security Agency have long encouraged the restrictions because they fear that criminals, spies and terrorists use encryption to thwart their eavesdropping efforts. Those arguments have been seriously undermined by the rapid growth of overseas encryption makers, many of which can produce products equal to the best the US has to offer.
The new proposal would:
--Relax regulations that previously restricted sales to telecom companies with government investors.
-- Treat online and telephone sales of encryption software the same as products sold through brick-and-mortar stores.
-- Let developers of encryption development tools sell their wares abroad without going through an often-cumbersome licensing process.......