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7 June 1999. Add "official German translation." Thanks
also to TR and MJ.
Original German government statement:
http://www.bmwi.de/presse/1999/0602prm1.html
Date: Mon, 7 Jun 1999 07:56:03 -0400
From: Dietrich Cerny <100022.723@compuserve.com>
Subject: Germany Frees Crypto
To: ukcrypto <ukcrypto@maillist.ox.ac.uk>
Hi,
The following text is the official translation of the "Eckpunkte der
deutschen Cryptopolitik" and their justification.
Regards
Dietrich Cerny
__________
Bonn, June 2, 1999
Key Elements of Germany's Encryption Policy
Introduction
Up to the early Nineties, programs and chips for the secure encryption of
messages were a relatively insignificant niche segment of the computer industry.
However, this niche segment has since gained substantial importance for the
economic and social development of the information society as a whole. After
all, "information" as a production factor is increasingly becoming a coveted
raw material. More effective protection of this raw material can decide on
the success or failure of businesses and thus on employment opportunities
in the information age. Today, this protection can only be effectively guaranteed
by using powerful cryptographic procedures. In any event, the efficiency
of this technology is today greater then ever before.
The encryption controversy in Germany
The encryption controversy revolves around the question as to whether and
to what extent the use of cryptographic procedures should be restricted by
law. This question has been the subject of controversial debate in
many democratic industrial nations in recent years. In Germany, too, there
has been an intensive discussion involving the Federal Ministries with their
differing standpoints, the economy and numerous groups in society.
In October 1997, the Federal Cabinet adopted the "Progress Report of the
Federal Government - Info 2000: Germany's Way to an Information Society",
which contained a passage on encryption policy:
"It was agreed within the Federal Government to forgo the introduction in
this legislative term of a statutory regulation concerning the putting into
circulation and utilisation of encryption products and procedures, meaning
that the unrestricted freedom of the user as regards the selection and use
of encryption systems will remain unchanged. The Federal Government will
continue to closely monitor further developments in the field of cryptography,
particularly in the context of European and international cooperation, and
will initiate further measures for the implementation of its goals,
if necessary".
However, the Federal Government has not yet adopted a binding and unequivocal
standpoint.
Cryptography and business interests
The markets for encryption products are today displaying high growth rates,
primarily because of the dynamic development of digital business transactions.
In addition to the traditional protection of confidentiality, important fields
of application for cryptographic systems today include, for example, copyright
protection, digital signatures and digital money. Beyond this, cryptography
is a cross-sectional technology which is indispensable for the system
architecture and development of complex electronic commerce applications.
Consequently, far larger markets are indirectly affected, e.g. those of
telecommunication, on-line banking or telemedicine.
Security standards of a kind that were mainly still the reserve of major
companies and government agencies a few years ago, because of the high costs,
have now also become affordable for medium-sized enterprises and private
households. Nevertheless, encryption products are currently still not used
to the necessary extent in Germany. This is often due to a lack of the necessary
IT security-consciousness, even though unauthorised spying, manipulation
or destruction of data can cause substantial economic damage.
German manufacturers of encryption products have good prospects for keeping
pace in the international competition for new markets, provided that the
framework conditions necessary in this context are guaranteed. In view of
the strategic importance of this sector, many leading industrial nations
are making a major effort to strengthen its economic and technical efficiency
in their own country.
Cryptography and security interests
The use of cryptographic procedures is extremely important for efficient
technical crime prevention. This applies both to guaranteeing the authenticity
and integrity of data traffic and to protecting confidentiality.
On the other hand, this protection of confidentiality can favour criminals.
For example, it can be expected that the growing user-friendliness of encryption
products will result in their increasing spread in criminal circles. This
can pose problems for the criminal prosecution authorities. Surveillance
measures lawfully ordered by a judge must remain effective, even if the target
person protects the information in question by means of a cryptographic
procedure.
To date, the abuse of encryption technologies in Germany has not caused any
serious problems in the process of criminal prosecution. However, this fact
cannot be used to make a forecast for the future. Consequently, there is
a need to actively assess the impact of this technology in relation to the
interests of the criminal prosecution and security authorities in Germany
in an attempt to identify undesirable developments in such good time that
they can be effectively counteracted - on the basis of alternative strategies,
if necessary.
Based on the national debate to date and on international developments, the
Federal Government herewith adopts the following key elements for its encryption
policy:
1. The Federal Government has no intention
of restricting the free availability of encryption products in Germany. It
regards the use of secure encryption as a decisive prerequisite for data
protection for the public, for the development of electronic business
transactions and for the protection of company secrets. The Federal Government
will thus actively support the spread of secure encryption in Germany. This
particularly includes the promotion of security-consciousness among the public,
in the economy and in the administration.
2. It is the aim of the Federal Government
to strengthen the confidence of users in the security of encryption. It will
therefore take steps to establish a framework of confidence for secure
encryption, specifically by improving the verifiability of the security functions
of encryption products and recommending the use of tested products.
3. For reasons relating to the security of
the state, the economy and society, the Federal Government considers it
indispensable that German manufacturers be capable of developing and
manufacturing secure and powerful encryption products. It will take steps
to improve the international competitiveness of this sector.
4. The spread of powerful encryption procedures
must not undermine the statutory telecommunications surveillance authority
of the criminal prosecution and security authorities. The responsible Federal
Ministries will therefore continue to monitor developments closely and report
on this subject after two years. Independently of this, the Federal Government
will support the improvement of the technical competencies of the criminal
prosecution and security authorities within the framework of its capabilities.
5. The Federal Government attaches great importance
to international cooperation in the field of encryption policy. It advocates
open standards and interoperable systems developed in the market and will
support the strengthening of multilateral and bilateral cooperation.
3 June 1999. Thanks to Peter Haefner for
translation.
Federal Ministry of the Interior
Federal Ministry of Economic Affairs and Technology
Bonn, June 2, 1999
Cornerstones of German Encryption Policy
The Federal Cabinet in its session of June 2 agreed on the German position
on the use of cryptographical methods in e-commerce in the form of
“Cornerstones of German Encryption Policy”.
The government followed the necessity to take position in this nationally
and internationally vital question important for business and e-commerce.
Security problems are on the rise with growing traffic on the net. Experts
are estimating the losses caused by espionage, manipulation, or damaging
of data by billions. Data security is becoming a serious issue with global
competition and because of that is affecting jobs in respective businesses.
Improved protection of German users on the net by means of better encryption
methods is the main concern of this decision. It states clearly that
cryptographic methods and products are furthermore permitted to be developed,
produced, and used without any restrictions. The yet low awareness towards
this issue shall be raised by this decision. The initiative “Security
On The Net” by ministries of economic affairs and interior is meant
to serve the same purpose
<http://www.sicherheit-im-internet.de>
Another main aim of the German federal government is to strengthen productivity
and international competitiveness of the German suppliers in encryption business
which are likely to intensify their efforts with regards to a growing demand.
The further opening of the European single market is serving the same purpose:
Germany together with its European partners abolished supervision of encryption
mass products exported within the EU by revising the EU-dual-use-decree.
Simplification of export supervision procedure are under examination by the
Bundesausfuhramt (federal export agency?)
With the use of cryptography on the raise improper use can’t be ruled
out. Therefore the involved ministries will be watching further development
thoroughly and deliver a report after 2 years. Efforts to improve the technical
equipment of law enforcement agencies are underway.
With this well-balanced position the federal government met the requirements
for Germany being a secure and productive site in the information age.
Cornerstones of German Crypto Policy
Introduction
Hard- and software for message encoding remained until the beginning of the
nineties a negligible niche market. However this niche market is now of
considerable importance to the economic and social development in the information
age. The input ”information” is developing more and more into a
much demanded raw material. Effectively protecting this asset could can be
crucial to corporate success and thus determine on prospective employment.
This protection today can be effectively ensured only by use of strong encryption
tools.
Controversy on encryption in Germany
The controversy on encryption is about whether or not and to which extent
cryptography should be restricted by law. This point has been discussed recently
in many democratic industrial countries in a controversial way. An intensive
argument took place in Germany too, with several ministries, industry, and
numerous social groups participating.
In October 1997 the federal cabinet passed the ”Federal report: Info
2000: Germany's way into the information age”, containing a passage
on cryptography:
”The Federal Government agrees on waiving to regulate by law the trade
and use of cryptographic products and methods. Thus the unrestricted freedom
of users with choosing and use of encryption systems remains not affected.
The Federal Government will watch further development in the field of
cryptography thoroughly particularly within a European and international
context. Further measures to reach its goals will be taken if necessary.
”
So far the Federal Government has not taken stand definitely and unequivocally.
Cryptography and economic interests
Due to the dynamic development of digital business dealings the markets for
encryption products note high growth rates. Besides the traditional protection
of confidence by now encryption systems are mainly used e.g. for digital
copyright protection, digital signatures, and digital cash. Beyond this
cryptography is a cross-section-technology indispensable for architecture
and development of complex e-commerce applications. Indirectly much bigger
markets are concerned like e.g. telecommunication, online-banking, or
tele-medicine.
It’s true that present-day security standards, few years ago affordable
only to large-scale enterprises and administration, are now within means
of medium-sized and small enterprises as well as private households. But
still in Germany cryptography is not used in the required degree. The necessary
security awareness is lacking frequently even though considerable losses
can be caused by espionage, manipulation, or destruction of data. German
crypto manufacturers would have a good chance of keeping up with international
competition, if appropriate conditions are ensured. In view of the strategic
meaning of the cryptographic sector many important industrial states spare
no effort in order to strengthen their economical and technical capacities.
Cryptography and security interests
Cryptographic methods are of outstanding importance for efficient technical
crime protection. That applies to ensuring of authenticity and integrity
in data traffic as well as protection of confidence.
On the other hand protection of confidence is in favor of perpetrators: With
cryptographic applications becoming more user-friendly spreading into criminal
circles has to be expected. This could cause serious problems for law
enforcement. Lawful surveillance ordered by a court has to remain effective
even if the target guards concerned information with a cryptographic system.
Up to now abuse of encryption constitutes no serious problem for law enforcement.
However there can’t be derived a forecast from this. It is necessary
to actively examine possible consequences with regard to the specific needs
of law enforcement and national security to early identify any undesirable
development and take effective action against them based on alternative
strategies.
With the recent national discussion as well as the international development
as foundations the Federal Government agrees on the following cornerstones
of encryption policy:
1. The Federal Government is not intended to restrict the general availability
of cryptographic products in Germany. It recognizes the crucial importance
of secure encryption for data protection, development of electronic business
dealings, and protection of corporate secrets. Therefore the Federal Government
will actively support spreading of secure encryption in Germany. This is
meant to particularly promote awareness on security issues among business,
administration, and private people.
2. The Federal Government aims at strengthening users to trust in cryptographic
security. It will take measures to establish a trust framework for secure
cryptography, particularly by improving the ability to check cryptographic
products on security and recommending of qualified products.
3. The Federal Government considers the capability of German manufacturers
to develop and manufacture secure and powerful cryptographic products as
crucial to security of nation, business, and society. It will take actions
to improve the international competitiveness in this field.
4. The legal authority of law enforcement and security agencies to keep
telecommunication under surveillance shall not be eroded by dissemination
of strong methods for encryption. Therefore the competent ministries will
be watching further development thoroughly and report after 2 years. Irrespective
of that the Federal Government will support improving technical competence
of law enforcement within the bounds of its possibilities.
5. The Federal Government sets a great store by international cooperation
in the field of encryption. It stands up for market-developed open standards
as well as interoperable systems and will speak up for strengthening of multi-
and bilateral cooperation.