The FBI/NSA's new escrow argument, DC crypto panel

["Declan B. McCullagh" <declan+@CMU.EDU>]

I just came back from the Online Services Industry conference held today
in Washington, DC at the Georgetown Four Seasons. It was very much a DC
thing, organized by Congressmen Jack Fields and Rick White (of the
Internet Caucus).

The fourth panel was "Law Enforcement and Encryption in Cyberspace,"
with this set of characters:

 * Edward Allen, supervisory special agent/section chief, FBI
 * Clinton Brooks, advisor to the director, NSA
 * Dorothy Denning, professor, Georgetown University
 * Bruce Heiman, attorney, Preston Gates Ellis & Rouvelas Meeds
 * Jim Lucier, director of economic research, Americans for Tax Reform
 * Marc Rotenberg, director, EPIC

I was expecting fireworks, or at least a few sparks, but the panel
fizzled. Both sides recounted the same threadbare policy positions we've
heard for years, with one exception: the Administration's new argument
against lifting crypto export controls.

Allen and Brooks claimed that "there needs to be a balanced approach,"
arguing that other nations are relying on the U.S. to maintain export
restrictions to prevent it from falling into the grasping fingers of
overseas terrorists. (And yes, they mentioned child pornographers too.)

The FBI's Allen said: "We have talked to our foreign law enforcement
counterparts who are concerned with exporting strong crypto. Crime is
increasing internationally... There is not an international free market
for crypto. To a great degree, other nations have been relying on U.S.
export controls to maintain stasis. What bothers me about efforts being
proposed legally is that we're moving forward without understanding what
we're getting into... The efforts can go to order or chaos. We're in a
period where it could go to chaos."

Denning recounted the tale of a New York state police bust that seized a
computer with PGP, but no files were encrypted: "They hadn't used it. It
was too much trouble." She said that if PGP is more "integrated," more
criminals will use it. "We need to balance interests and provide for
legitimate law enforcement access. Many businesses are supportive of
this," said Denning.

After Rotenberg and the other half of the panel rebutted, Brock Meeks
asked the first question: Isn't it possible that the government may
eventually ban non-third-party escrowed crypto, in a compromise move?

The FBI's Allen ducked, clumsily. Meeks pressed and Brooks from the NSA
allowed: "Over time, if there are advocates and society says we have to
go further then we may have to."

-Declan