FOR IMMEDIATE RELEASE
CONTACT: 202-456-7035
FRIDAY, November 15, 1996

WASHINGTON -- Vice President Gore today (11/15) announced that President Clinton has taken two significant actions to implement the encryption export liberalization plan announced in October.

First, President Clinton has signed an executive order directing the transfer of jurisdiction for the export control of commercial encryption products from the State Department to the Commerce Department. Second, President Clinton has designated Ambassador David L. Aaron as Special Envoy for Cryptography.

"We are moving forward to implement the encryption export liberalization plan that I announced in October," said Vice President Gore. "These two actions will help to promote the growth of international electronic commerce and robust secure global communications in a manner that protects the public safety and our national security."

On October 1, 1996, Vice President Gore announced an Administration plan to make it easier for Americans to use stronger encryption products -- whether at home or abroad -- to protect their privacy, intellectual property and other valuable information. The plan comprises a comprehensive set of actions to promote the development of key recovery products and an encryption key management infrastructure. Specifically, it allows the export of 56-bit key length encryption products under a general license contingent upon industry commitments to build and market future products that support key recovery. It also called for transferring jurisdiction for controlling the export of commercial encryption technology from the State Department to the Commerce Department.

Key recovery presumes that a trusted party (such as a bank or, in some cases, a party internal to the user's organization) could recover a confidentiality key to the encrypted data for the user or for law enforcement officials acting under proper court authority.

The Executive Order, "Administration of Export Control on Encryption Products," and a Presidential Memorandum on Encryption Export Policy, signed by President Clinton today, directs the transfer of jurisdiction for the export control of commercial encryption products from the State Department to the Commerce Department. The transfer becomes effective upon promulgation of regulations by the Commerce Department, expected before the end of the year.

This action subjects licensing application decisions to strict time lines for governmental response, while providing for interagency consultation on those decisions. Under the executive order, concerned agencies will have the opportunity to participate in Commerce Department licensing decisions. No agency will have a veto over decisions to export encryption products. The computer and communications industries have called for the jurisdiction transfer, and it was recommended in the recent report of the National Research Council.

Vice President Gore also announced today that President Clinton has designated Ambassador David L. Aaron as Special Envoy for Cryptography, with the responsibility to promote the growth of international electronic commerce and robust, secure global communications in a manner that protects the public safety and national security.

Ambassador Aaron will carry out his responsibilities as Special Envoy while retaining his position as the United States Permanent Representative to the Organization for Economic Cooperation and Development (OECD) in Paris. As Special Envoy, Ambassador Aaron will promote international cooperation, coordinate U.S. contacts with foreign governments on encryption matters and provide a focal point for identifying and resolving bilateral and multilateral encryption issues.

Ambassador Aaron has served in both government and the private sector. He has been a member of the boards of several major private sector organizations, and served as Deputy National Security Adviser to President Jimmy Carter. He has been the Permanent Representative at the OECD since 1993.

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