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wh_press_secy.statement (fwd)
Forwarded message:
From postmaster Fri Feb 4 17:51:05 1994
Date: Fri, 4 Feb 1994 17:47:44 -0500
From: Dan Brown <brown>
Message-Id: <[email protected]>
To: eff-board, eff-staff
Subject: wh_press_secy.statement
THE WHITE HOUSE CONTACT: 202 156-7035
OFFlCE OF THE PRESS SECRETARY
EMBARGOED UNTIL 3 PM (EST) FRIDAY, February 4, 1994
STATEMENT OF THE PRESS SECRETARY
Last April, the Administration announced a comprehensive
interagency review of encryption technology, to be overseen by the
National Security Council. Today, the Administration is taking a
number of steps to implement the recommendations resulting from
that review.
Advanced encryption technology offers individuals and businesses
an inexpensive and easy way to encode data and telephone
conversations. Unfortunately, the same encryption technology that
can help Americans protect business secrets and personal privacy
can also be used by terrorists, drug dealers, and other criminals.
In the past, Federal policies on encryption have reflected primarily
the needs of law enforcement and national security. The Clinton
Administration has sought to balance these needs with the needs of
businesses and individuals for security and privacy. That is why,
today the National Institute of Standards ant Technology (NIST) is
committing to ensure a royalty-free, public-domain Digital Signature
Standard. Over many years, NIST has been developing digital
signature technology that would provide a way to verify the author
and sender of an electronic message. Such technology will be critical
for a wide range of business applications for the National
Information Infrastructure. A digital signature standard will enable
individuals to transact business electronically rather than having to
exchange signed paper contracts. The Administration has determined
that such technology should not be subject to private royalty
payments, and it will be taking steps to ensure that royalties are not
required for use of a digital signature. Had digital signatures been in
widespread use, the recent security problems with the Intemet
would have been avoided.
Last April, the Administration released the Key Escrow chip (also
known as the "Clipper Chip") that would provide Americans with
secure telecommunications without compromising the ability of law
enforcement agencies to carry out legally authorized wiretaps. Today,
the Department of Commerce and the Department of Justice are
taking steps to enable the use of such technology both in the U.S. and
overseas. At the same time, the Administration is announcing its
intent to work with industry to develop other key escrow products
that might better meet the needs of individuals and industry,
particularly the American computer and telecommunications
industry. Specific steps being announced today include:
- Approval by the Commerce Secretary of the Escrowed Encryption
Standard (EES) as a voluntary Federal Informahon Processing
Standard, which will enable govemment gencies to purchase the
Key Escrow chip for use with telephones nd modems. The
department's National Institute of Standards and Technology
(NIST) will publish the standard.
- Publication by the Department of Justice of procedurs for the
release of escrowed keys and the announcement of NIST and the
Automated Services Division of the Treasury Department as the
escrow agents that will store the keys needed for decryption of
communications using the Key Escrow chip. Nothing in these
procedures will diminish tne existing legal and procedural
requirements that protect Americans from unauthorized wiretaps.
- New procedures to allow export of products containing the Key
Escrow chip to most countries.
In addition, the Department of State will streamline export licensing
procedures for encryption products that can be exported under
current export regulations in order to help American companies sell
their products overseas. In the past, it could take weeks for a
company to obtain an export license for encryption products, and
each shipment might require a separate license. The new procedures
announced today will substantially reduce administrative delays and
paperwork for encryption exports.
To implement the Administration's encryption policy, an interagency
Working Group on Encryption and Telecommunications has been
established. It will be chaired by the White House Office of Science
and Technology Policy and the National Security Council and will
include representatives of the Departments of Commerce, Justice,
State, and Treasury as well as the FBI, the National Security Agency,
the Office of Management and Budget, and the National Economic
Council. This group will work with industry and public-interest
groups to develop new encryption technologies and to review and
refine Administration policies regarding encryption, as needed.
The Administration is expanding its efforts to work with industry to
improve on the Key Escrow chip, to develop key-escrow software,
and to examine alternatives to the Key Escrow chip. NIST will lead
these efforts and will request additional staff and resources for this
purpose.
We understand that many in industry would like to see all
encryption products exportable. However, if encryption technology is
made freely available worldwide, it would no doubt be usod
extensively by terrorists, drug dealers, and other criminals to harm
Americans both in the U.S. and abroad. For this reason, the
Administration will continue to restrict export of the most
sophisticated encryption devices, both to preserve our own foreign
intelligence gathering capability and because of the concerns of our
allies who fear that strong encryption technology would inhibit their
law enforcement capabilities.
At the same time, the Administration understands the benefits that
encryption and related technologies can provide to users of
computers and telecommunications networks. Indeed, many of the
applications of the evolving National Information Infrastructure will
require some form of encryption. That is why the Administration
plans to work more closely with the private sector to develop new
forms of encryption that can protect privacy and corporate secrets
without undermining the ability of law-enforcement agencies to
conduct legally authorized wiretaps. That is also why the
Administration is committed to make available free of charge a
Digital Signature Standard.
The Administration believes that the steps being announced today
will help provide Americans with the telecommunications security
they need without compromising the capability of law enforcement
agencies and national intelligence agencies. Today, any American can
purchase and use any type of encryption product. The
Administration does not intend to change that policy. Nor do we have
any intention of restrictiog domestic encryption or mandating the use
of a particular technology.