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  **         **      **       ***               POLICY POST
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  **         **      **       ***               November 9, 1995
  **         **      **       ***               Number 29
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  CENTER FOR DEMOCRACY AND TECHNOLOGY
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  A briefing on public policy issues affecting civil liberties online
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CDT POLICY POST Number 29                      November 9, 1995

CONTENTS: (1) Public Interest/Industry Coalition Says Administration 
Crypto
              Policy Flawed -- Pledges to Develop Alternative
          (2) Text of CDT-led coalition letter to Vice President Gore
          (3) How To Subscribe To The CDT Policy Post Distribution List
          (4) About CDT, Contacting Us

This document may be re-distributed freely provided it remains in its
entirety. Excerpts may be re-posted by permission (editor@cdt.org)
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(1) Public Interest/Industry Coalition Says Administration Crypto Policy 
    Flawed -- Pledges to Develop Alternative

A broad coalition of nearly forty public-interest organizations, trade 
associations, and representatives from the telecommunications and 
computer hardware and software industries sent the attached letter to 
Vice President Albert Gore on Wednesday, objecting to the 
Administration's recently announced cryptography policy. 

While the letter praised the administration for its efforts to develop a 
national cryptography policy, the signatories, which include groups such 
as EFF and companies such as America Online, Apple, AT&T, MCI, Lotus, 
Microsoft, and Tandem Computer (organized by CDT), expressed concern 
that the Administration's proposal is weighed heavily in favor of law 
enforcement and national security while neglecting the privacy and 
security needs of individuals and the marketplace. 

The letter states:

 "A secure, private, and trusted Global Information Infrastructure 
  (GII) is essential to promote economic growth and meet the needs of 
  the Information Age society.  Competitive businesses need cryptography 
  to protect proprietary information as it flows across increasingly 
  vulnerable global networks. Individuals require privacy protection in 
  order to build the confidence necessary to use the GII for personal 
and 
  financial transactions... The undersigned groups recognize that 
  the Administration's recently articulated cryptography initiative was 
a 
  serious attempt to meet some of these challenges, but the proposed 
  initiative is no substitute for a comprehensive national cryptography 
  policy.  To the extent that the current policy becomes a substitute 
for 
  a more comprehensive policy, the initiative actually risks hindering 
  the development of a secure and trusted GII."

The coalition pledged to work together to formulate recommendations for 
an alternative cryptography policy based on the following principals:

* ROBUST SECURITY:  access to levels of encryption sufficient to address 
  domestic and international security threats, especially as advances in 
  computing power make currently deployed cryptography systems less 
  secure.

* INTERNATIONAL INTEROPERABILITY:  the ability to securely interact 
  worldwide.

* VOLUNTARY USE: freedom for users to choose encryption solutions, 
  developed in the marketplace, that meet their particular needs.

* ACCEPTANCE BY THE MARKETPLACE: commercial viability and ability to 
  meet the expressed needs of cryptography users.

* CONSTITUTIONAL PRIVACY PROTECTIONS: safeguards to ensure basic Fourth 
  Amendment privacy protection and regulation of searches, seizures, and 
  interceptions.

* RESPECT FOR THE LEGITIMATE NEEDS OF LAW ENFORCEMENT and national 
  security, while recognizing the reality that determined criminals will 
  have access to virtually unbreakable encryption.

A second group, composed of conservative/libertarian organizations 
including Americans for Tax Reform and Citizens for A Sound Economy, 
issued a similar letter on Wednesday to House Speaker Newt Gingrich. The 
text of that letter, as well as additional information on the 
cryptography policy debate, can be found on CDT's Cryptography Issues 
Page:

        URL:http://www.cdt.org/crypto.html

The letters come as the National Institute of Standards & Technology 
(NIST) this week announced revisions to the Administration's proposed 
export criteria announced last September (See CDT Policy Post No. 24). 
The revised proposal is substantively similar to the previous version, 
and maintains controversial provisions including: 

* LIMITS ON KEY LENGTH: The revised proposal would continue to only 
  allow the export of cryptography systems with 64 bit key lengths, but 
  only if the keys are escrowed by an agent approved by the U.S. 
  Government and if the systems meet the other export criteria. 

* RESTRICTED INTEROPERABILITY: While the revised proposal does clarify 
  the interoperability provision,  it would continue to prohibit 
  exportable products from operating with any other cryptographic 
  products that do not meet the NIST criteria.

* NO PRIVACY SAFEGUARDS: The proposal contains no mention of the   
  procedures for law enforcement access to escrowed keys, the standards 
  for certifying escrow agents, or the obligations on escrow agents to 
  protect privacy.

CDT believes that the NIST proposals fall far short of the promise for a 
more sensible and comprehensive cryptography policy outlined last July 
in Vice President Gore's letter to Rep. Maria Cantwell.  The current 
proposal fails to provide adequate security, protect the privacy of 
individuals, and meet the needs of the global marketplace. CDT believes 
that a more comprehensive approach to cryptography policy is necessary 
to address both the immediate need for strong cryptographic applications 
and the long-term development of a secure and trusted Global Information 
Infrastructure. CDT will work with the signatories of the letter to over 
the next six months to develop an alternative to the Administration's 
proposal.

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(2) Text of CDT-led Coalition Letter to Vice President Gore


November 8, 1995

The Honorable Albert Gore, Jr.
Office of the Vice President
Old Executive Office Building, Room 276
Washington, D.C. 20501

Dear Mr. Vice President:

A secure, private, and trusted Global Information Infrastructure (GII) 
is essential to promote economic growth and meet the needs of the 
Information Age society.  Competitive businesses need cryptography to 
protect proprietary information as it flows across increasingly 
vulnerable global networks. Individuals require privacy protection in 
order to build the confidence necessary to use the GII for personal and 
financial transactions.  Promoting the development of the GII and 
meeting the needs of the Information Age will require strong, flexible, 
widely-available cryptography.  The undersigned groups recognize that 
the Administration's recently articulated cryptography initiative was a 
serious attempt to meet some of these challenges, but the proposed 
initiative is no substitute for a comprehensive national cryptography 
policy.  To the extent that the current policy becomes a substitute for 
a more comprehensive policy, the initiative actually risks hindering the 
development of a secure and trusted GII.

A number of the undersigned organizations have already written to 
express concern about the latest Administration cryptography initiative. 
As some of us have noted, the Administration's proposed export criteria 
will not allow users to choose the encryption systems that best suit 
their security requirements.  Government ceilings on key lengths will 
not provide an adequate level of security for many applications, 
particularly as advances in computing render current cryptography 
systems less secure.   Competitive international users are steadily 
adopting stronger foreign encryption in their products and will be 
unlikely to embrace U.S. restrictions.  As they stand, current export 
restrictions place U.S. hardware manufacturers, software developers, and 
computer users at a competitive disadvantage, seriously hinder 
international interoperability, and threaten the strategically important 
U.S. communications and computer hardware and software industries. 
Moreover, the Administration policy does not spell out any of the 
privacy safeguards essential to protect individual liberties and to 
build the necessary public trust in the GII. 

The current policy directive also does not address the need for 
immediate liberalization of current export restrictions. Such 
liberalization is vital to enable U.S. companies to export state-of-the-
art software products during the potentially lengthy process of 
developing and adopting a comprehensive national cryptography policy. 
Without relief, industry and individuals alike are faced with an 
unworkable limit on the level of security available and remain hamstrung 
by restrictions that will not be viable in the domestic and 
international marketplace. 

Many members of the undersigned groups have been working actively with 
the Administration on a variety of particular applications, products, 
and programs promoting information security.  All of us are united, 
however, by the concern that the current network and information 
services environment is not as secure as it should be, and that the 
current policy direction will delay the secure, private, and trusted 
environment that is sought.

Despite the difficulties of balancing the competing interests involved, 
the undersigned companies, trade associations, and privacy organizations 
are commencing a process of collective fact-finding and policy 
deliberation, aimed at building consensus around a more comprehensive 
cryptography policy framework that meets the following criteria:  

* ROBUST SECURITY:  access to levels of encryption sufficient to address
  domestic and international security threats, especially as advances in 
  computing power make currently deployed cryptography systems less 
  secure.

* INTERNATIONAL INTEROPERABILITY:  the ability to securely interact 
  worldwide.

* VOLUNTARY USE: freedom for users to choose encryption solutions, 
  developed in the marketplace, that meet their particular needs.

* ACCEPTANCE BY THE MARKETPLACE: commercial viability and ability to 
  meet the expressed needs of cryptography users.

* CONSTITUTIONAL PRIVACY PROTECTIONS: safeguards to ensure basic Fourth 
  Amendment privacy protection and regulation of searches, seizures, and 
  interceptions.

* RESPECT FOR THE LEGITIMATE NEEDS OF LAW ENFORCEMENT and national 
  security, while recognizing the reality that determined criminals will  
  have access to virtually unbreakable encryption.

In six months, we plan to present our initial report to the 
Administration, the Congress, and the public in the hopes that it will 
form the basis for a more comprehensive, long-term approach to 
cryptography on the GII. We look forward to working with the 
Administration on this matter.

Sincerely,

American Electronics Association
America Online, Inc.
Apple Computer, Inc.
AT&T
Business Software Alliance 
Center for Democracy & Technology 
Center for National Security Studies
Commercial Internet eXchange Association 
CompuServe, Inc.
Computer & Communications Industry Association
Computing Technology Industry Association
Crest Industries, Inc.
Dun & Bradstreet
Eastman Kodak Company
Electronic Frontier Foundation
Electronic Messaging Association 
EliaShim Microcomputers, Inc.
Formation, Inc.
Institute for Electrical and Electronic Engineers - United States 
Activities
Information Industry Association 
Information Technology Industry Council 
Information Technology Association of America
Lotus Development Corporation
MCI
Microsoft Corporation
Novell, Inc.
OKIDATA Corporation
Oracle Corporation
Securities Industry Association
Software Industry Council
Software Publishers Association
Software Security, Inc.
Summa Four, Inc.
Sybase, Inc.
Tandem Computers, Inc.
Telecommunications Industry Association
ViON Corporation

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(4) ABOUT THE CENTER FOR DEMOCRACY AND TECHNOLOGY/CONTACTING US

The Center for Democracy and Technology is a non-profit public interest
organization based in Washington, DC. The Center's mission is to develop 
and advocate public policies that advance constitutional civil liberties 
and democratic values in new computer and communications technologies.

Contacting us:

General information:  info@cdt.org
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FTP                   URL:ftp://ftp.cdt.org/pub/cdt/

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End Policy Post No. 29                                        11/9/95
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