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From Hatch's testimony





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                          For the Record

                          Thursday, July 10, 1997; Page A18
                          The Washington Post

                          From testimony by Sen. Orrin Hatch (R-Utah)
                          yesterday before the Senate Judiciary
                          Committee:

                          Although encryption has historically been a
                          technology reserved for national security and
                          military applications, the explosive growth of
                          both electronic communications and stored data
                          has enhanced the need to develop means to
                          protect business, governmental and individual
                          communications and information from improper
                          access and use. A direct deterrent to economic
                          espionage, consumer or commercial theft or
                          fraud, or improper eavesdropping of private
                          information or communications is the encryption
                          of such information. By employing mathematical
                          algorithms [that] convert electronic
                          information into meaningless text, encryption
                          prevents anyone other than a keyholder -- who
                          has the algorithm necessary to unscramble or
                          decrypt this information -- from gaining access
                          to the information. The importance of
                          meaningful legislation in this area cannot be
                          understated. Consider for instance that
                          consumer confidence in a secure network is
                          deemed essential to the development of such
                          things as on-line commerce, which is projected
                          to grow from last year's $500 million to as
                          much as $12 billion by the year 2000.

                          The difficulty in evaluating a meaningful
                          encryption policy is that, while its employment
                          does protect the privacy of legitimate business
                          and personal interests, it can also be used . .
                          . by criminals to hide their communications and
                          operations. . . .

                          Today, Americans . . . enjoy the ability to
                          use, and industry is free to market, commercial
                          encryption of any strength domestically without
                          restriction. The focus of congressional debate
                          is the export and dissemination of U.S.
                          encryption products abroad and the development
                          of key recovery features that allow law
                          enforcement access to encrypted communications
                          under appropriate circumstances.

                            � Copyright 1997 The Washington Post Company

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