The Ad Hoc Taxpayer Coalition for Computer Privacy

November 8, 1995 

The Honorable Newt Gingrich
Speaker of the House of Representatives
H-232 The Capitol
Washington, DC 20515-6502


Dear Mr. Speaker: 

We are writing to express serious concerns about the Administration's efforts to continue to restrict the of computer users at
home and abroad to protect their private information over electronic networks through the se of encryption technology. The
Administration seems determined to ensure government surveillance of all electronic information and communications. It began
with President Clinton's "Clipper Chip," but has not stopped. 

Consumers aren't happy with these proposals, and neither is the business community nor civil libertarians. In fact, it's hard to
find anyone supportive outside the Administration except for the that would benefit from the Administration's "proposed
relaxation" of the nation's export policy. 

The Administration refuses to let American computer hardware and software companies sell products with good encryption
worldwide unless the U.S. Government is guaranteed access to a key that unlocks that information. The Administration is
trying to leverage these companies' need to export -- they derive more than half their earnings from sales abroad -- and desire to
develop a single product worldwide, to force them to include a feature in products they sell in the U.S. and abroad that will
allow government access. Administration officials also have said that if American companies do not 'voluntarily" include such a
feature, then they will seek legislation making such a feature mandatory. 

The Administration's approach is the wrong policy for today's marketplace. 

It's anti-consumer. Computer users will not entrust their sensitive information to computer networks unless its security and
privacy are assured. Without good privacy protection, there simply will not be a Global Information Infrastructure -- and
America won't be in the lead. 

It's anti-marketplace. There is no consumer demand for encryption products that give the government easy access. The
Administration has come forward with a typical big-government approach -- a government designed solution for a government
problem. This completely overlooks the realities of a free-market. 

It is anti-American business. The Administration's current policies are seriously harming the continued competitiveness of
one of our fastest growing and most successful industries -- the computer hardware and software industry. Computer users are
demanding good encryption but American companies are not allowed to supply it. Yet there are hundreds of foreign encryption
products manufactured and encryption programs are widely available on the Internet. 

Finally, it is anti-progress. Wishing that there was no encryption available will not make it so. The technology is widely
understood and available -- you can't put this genie back in the bottle. Government policies should not encumber the American
computing industry as it leads the world technology revolution. 

We strongly urge you to oppose attempts to limit the ability of Americans to use whatever encryption they wish and to support
the immediate relaxation of harmful export controls on American products and programs with encryption features. 

The Ad Hoc Taxpayer Coalition for Computer Privacy 

Americans for Tax Reform
Association of Concerned Taxpayers
Competitive Enterprise Institute
Citizens for a Sound Economy
The Business Leadership Council
The Small Business Survival Committee
Citizens Against A National Sales Tax/VAT

Virginia Postrel, Editor, Reason Magazine
Sheldon Richman, Senior Editor, The Cato Institute
Tanya Metaksa, Executive Director, Institute for Legislative Action, National Rifle Association
Kelly Anne Fitzpatrick, The Polling Company
Donna Matias, Institute for Justice


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