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30 April 1998

Thanks to DN
Date: Thu, 30 Apr 1998 05:12:26 -0400
Subject: AP: House Intelligence Committee Bill

Panel Reviews Espionage Protection
Filed at 2:42 a.m. EDT
By The Associated Press

WASHINGTON (AP) -- The House Intelligence Committee wants to modernize
eavesdropping programs, revitalize clandestine human intelligence and boost
covert action capabilities. 

``We see the need for concerted focus on signals intelligence, human
intelligence, all-source analysis and our covert action capabilities,'' said
Rep. Porter Goss, R-Fla., the committee chairman. 

The committee in a closed meeting Wednesday approved and sent to the full
House the annual intelligence authorization bill, a classified measure that
sets policy and spending priorities for the CIA and a host of other U.S.
agencies that gather intelligence. 

The committee was particularly concerned about the explosion in
telecommunications and computer technology and the new tools that allow
adversaries to foil U.S. interception of communications and signals. This
highly secretive area of intelligence involves efforts to tap into
high-level government communications, encoded documents and technical
emissions such as the telemetry signals put off by missiles and other weaponry. 

The legislation shifts some funding out of expensive satellite intelligence
programs and into this growing technical area, according to an official
familiar with it. In addition to code-breaking technology, the bill, which
is classified, seeks to increase investment in the type of computer
equipment that can sort through vast quantities of encoded messages and
focus in on the important ones that U.S. intelligence wants to intercept and

Additional money is also earmarked for human intelligence, which is largely
the purview of the CIA's overseas stations in which agency employees manage
a variety of human sources, some working for foreign governments, others
perhaps placed in defense industry or other commercial posts. 

The CIA has been focusing its efforts on cracking into terrorist
organizations, drug cartels and groups involved in weapons proliferation.
But the committee found that this area of intelligence, run by the CIA's
Directorate of Operations, has been withering in recent years. 

``The funds to conduct espionage have been cut back tremendously,'' said the
official familiar with the bill, who spoke only on condition of anonymity.
``We're in the business of trying to rebuild an espionage system.'' 

The Directorate of Operations also manages CIA-run covert operations, which
encompass a wide variety of political, diplomatic and even military programs
done under cover and directed at foreign countries. These can include covert
support for political opposition groups in places such as Iraq and arms for
rebel forces fighting governments hostile to the United States. Some of the
funds shifted by the committee from technical programs deemed lower priority
go into the account supporting covert action. 

The bill also provides additional money for intelligence analysis,
addressing a persistent problem at the CIA where intelligence collectors
bring in a flood of information only to have it sit on shelves waiting for
analysts to examine it. 

Rep. Norm Dicks, D-Wash., the committee's ranking Democrat, said the bill
``marginally exceeds the president's budget request'' but, overall, closely
follows administration priorities. 

Some of the increases included by the committee go into areas that have been
identified by CIA Director George Tenet as top agency priorities. 

The CIA had no official comment on the bill. But an intelligence official
who spoke on condition of anonymity said the areas identified by the
committee in its bill ``are vitally important and high on the director of
central intelligence's agenda.'' 

The total amount of spending for intelligence contained in the bill remains
classified, but it is believed to be slightly above this year's spending
level of $26.7 billion. 

The bill is expected to be considered on the House floor next week.

Date: Wed, 29 Apr 1998 13:05:15 -0400 To: From: "Arnold G. Reinhold" <> Subject: Director of Central Intelligence on Trust The April 27 issue of Aviation Week reprints exerpts of an address by U.S. Director of Central Intelligence George J. Tenet  titled "Cyber War Threat Is Real and Growing" (<> should work until the next issue comes out.)[] Tenet says the need now is for trust systems rather than security systems: "Much of the public discussion and rhetoric is about encryption-with little attention focused on what is needed to make its use trustworthy. The technology to bring good information security to networks is fairly well developed and understood. It is based on the use of public key encryption and digital signatures. The means to provide trust is less well understood and is called key management infrastructure. ... Efforts to provide key management infrastructure services for products with encryption are uncoordinated, immature and lagging the introduction of electronic commerce services. " He goes on to call for a renewed partnership with industry: "The need for cooperation between government and industry in building trustworthy key management infrastructure is paramount to meeting our common interests of networks that meet our business needs without introducing vulnerabilities in those systems. ... If we are going to lead the world in information technology, we must recreate the trust between government and industry that allowed us to lead for over 40 years. We still have the power to lead by our example and the time to do what is right." The U.S. government's role in retarding the commercial development of trust and encryption systems by way of export controls is not mentioned. Arnold Reinhold
Date: Wed, 29 Apr 1998 15:48:10 +0100 From: Ian Brown <> To: Subject: Times story Good feature in the Interface section of today's Times... A few excerpts: [ ] > The chances of governmental success are slim. Some would say they have > already failed because uncontrolled high-level cryptography is easily > available from the public domain. There is some evidence to show that > restricting the export of cryptographic software has slowed its commercial > use, but as the people who are using these packages are not talking about > it, it would be virtually impossible to make an informed comment. The > Government can control the legitimate and law-abiding companies who wish to > use cryptography to protect their assets and their customers' privacy, but > it will be impossible to control the criminals, who will simply do as they > please. > Governments worldwide are concerned that terrorist groups could use > encryption to defeat the efforts of law enforcement agencies. Certain > terrorist groups are, indeed, becoming increasingly proficient in the use > of computer technology; but it is hardly likely that an active terrorist > group would place its cryptographic keys in the hands of a government > escrow service. > Restrictions on the export of cryptographic software are also working > from a false premise. Given time, freely available information and a > reasonably skilled programmer, any terrorist organisation could develop its > own implementation of commonly used cryptographic algorithms without the > need to conform to government regulations.
From: "Yaman Akdeniz" <> To: Date: Thu, 30 Apr 1998 11:33:52 GMT0BST Subject: Guardian Online, Duncan Campbell Reports Guardian Online, 30 April, 1998 "This week, the Government rushed out its long-awaited guidelines for privacy online. Duncan Campbell reports" The full article is in the Guardian's web site. [ ] Here are some interesting bits of Campbell's article. I have not posted the full article here fore copyright reasons. Yaman But plans to allow search warrants to be extended to the total contents of everyone's computer files and e-mail, however private, have raised worries. .................. "This would be a monumental advance on government rights to invade privacy," said leading civil rights lawyer Geoffrey Robertson QC. "It's like invading the mind." A "judicial warrant," he added, "can come from a lay justice or a circuit judge whom the police select. It's a classic case of Neanderthal thinking _ no safeguard at all." ................... Government critics say that this is a betrayal of pre-election undertakings that New Labour would not accept the US requirement "to be able to swoop down on any encrypted message at will and unscramble it". As Zimmermann put it, after reviewing the government statement: "In principle it's voluntary; but, de facto, it's compulsory.  This is exactly what so many of us in the US have worked very hard to stop." ....... Critics such as Robertson remain unconvinced of the need for new laws. "Do they really think that major criminals go home and log their crimes on the Internet in a computer diary?" [Duncan Campbell is a freelance writer and broadcaster, and is not the Guardian correspondent of the same name] 30 April 1998 ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Yaman Akdeniz <> Cyber-Rights & Cyber-Liberties (UK) at: Read CR&CL (UK) Report, 'Who Watches the Watchmen' ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~