11 November 1997 Source: http://www.access.gpo.gov/su_docs/aces/aaces002.html ------------------------------------------------------------------------- [Congressional Record: November 10, 1997 (Senate)] [Page S12480] From the Congressional Record Online via GPO Access [wais.access.gpo.gov] [DOCID:cr10no97-111] ENCRYPTION EXPORTS NEED LIBERALIZATION Mr. DORGAN. Mr. President, in the final days of this session, the Congress is emersed in a debate over our Nation's trade policy. In my judgement, we have not focused enough attention on our policies that are hindering our ability to compete internationally and policies that are increasing our trade deficits. One issue that relates the ability of U.S. companies to compete internationally is the existing policy of the administration with respect to controls on the exportation of encryption technology. Currently, U.S. firms are the world leaders in encryption but other nations are gaining fast. Perhaps the greatest single factor in the erosion of U.S. dominance in encryption technology is the administration's export controls. As some of my colleagues know, there are several bills introduced in Congress to address encryption. The Senate Commerce Committee has even reported legislation in this area and I and the Senator from Montana, Senator Burns have been pushing alternative legislation that would require more realistic export controls on encryption. However, the administration does not need Congress to pass a law to change their policy in this area and I would like to encourage the administration to review their current policy and apply more realistic export controls on encryption technology. My understanding is that many other nations have multilaterally agreed to decontrol the export of computer software with encryption capabilities. Yet, the United States continues to impose unilateral controls. Thus, we have handicapped ourselves in the global market. Commercial products from companies in Germany, Japan, and England are securing more of the international market share because those nation's impose fewer restrictions on their encryption exports than we do. Mr. President, our Olympic team could not win if they had to compete with ankle weights. The same is true for American computer hardware and software companies. They face real competition in the international market place and their ability to provide strong information security features is costing them sales of computer systems and software packages. Lost sales will mean lost jobs. In my judgement we need to update American export control policy and catch up with modern realities of technology and the international market place. Unfortunately, rather than make real progress on this issue, the administration has raised all sort of new issues, such as attempting to impose more controls on domestic encryption. I hope that the administration will take a second look at their export controls and start making progress on developing a policy that will allow U.S. companies to compete. Short of that, I hope we will make some progress in the Senate in moving legislation sponsored by Senator Burns, the Pro-CODE bill, which will require a relocation of export controls, but done in a manner that is sensitive to national security and law enforcement concerns. ____________________