USA maintains strict export controls on encryption software



<http://www.wired.com/news/news/email/explode-infobeat/politics/story/16623.h
tml?wnpg=1>

		Wired News
                     Crypto Setback in Vienna
                     Reuters 

                     4:50 p.m.  3.Dec.98.PST
                     WASHINGTON - Clinton administration
                     officials said Thursday they have
                     persuaded other leading countries to
                     apply the same strict export controls on
                     computer data-scrambling products as
                     they apply to weapons. 

                     At a meeting on Thursday in Vienna, the
                     33 nations that have signed the
                     Wassenaar Arrangement limiting arms
                     exports -- including Japan, Germany, and
                     Britain -- agreed to impose controls on
                     the most powerful data-scrambling
                     technologies, including for the first time
                     mass-market software, US special envoy
                     for cryptography David Aaron told
                     Reuters. 

                     The United States, which restricts
                     exports of a wide range of
                     data-scrambling, or encryption, products
                     and software has long sought without
                     success to persuade other countries to
                     impose similar restrictions. 

                     "We think this is very important in terms
                     of bringing a level playing field for our
                     exporters," Aaron said. 

                     Leading US high-technology companies,
                     including Microsoft and Intel, have
                     complained that the lack of restrictions in
                     other countries hamper their ability to
                     compete abroad. The industry has sought
                     to have US restrictions relaxed or
                     repealed, but has not asked for tighter
                     controls in other countries. 

                     Privacy advocates have also staunchly
                     opposed US export controls on
                     encryption, arguing that data-scrambling
                     technologies provided a crucial means of
                     protecting privacy in the digital age. 

                     "It's ironic, but the US government is
                     leading the charge internationally to
                     restrict personal privacy and individual
                     liberty around the world," said Alan
                     Davidson, staff counsel at the Center for
                     Democracy and Technology, a
                     Washington-based advocacy group. 

                     Members of the Global Internet Liberty
                     Campaign <http://www.gilc.org> issued a statement in
                     September to the 33 participating states
                     of the Wassenaar Arrangement calling for
                     the removal of encryption export
                     restrictions from future revisions. 

			"It is true that crypto used to be an
                     esoteric field really only of interest to
                     military and spy agencies," said David
                     Jones, director of the Electronic Frontier
                     Canada, in an interview last month. "[But]
                     all of that is changing now as people
                     correspond over great distances through
                     the Internet and their personal
                     communications are traveling through God
                     knows what computers." 

                     Special envoy Aaron said the Wassenaar
                     countries agreed to continue export
                     controls on powerful encryption products
                     in general but decided to end an
                     exemption for widely available software
                     containing such capabilities. 

                     "They plugged a loophole," Aaron said. 

                     The new policy also reduced reporting
                     and paperwork requirements and
                     specifically excluded from export controls
                     products that used encryption to protect
                     intellectual property -- such as movies or
                     recordings sent over the Internet -- from
                     illegal copying, Aaron said. 

                     Encryption uses mathematical formulas to
                     scramble information and render it
                     unreadable without a password or
                     software "key.." One important measure of
                     the strength of the encryption is the
                     length of the software key, measured in
                     bits, the ones and zeros that make up
                     the smallest unit of computer data. 

                     With the increasing speed and falling
                     prices of computers, data encrypted with
                     a key 40 bits long that was considered
                     highly secure several years ago can now
                     be cracked in a few hours. Cutting-edge
                     electronic commerce and communications
                     programs typically use 128-bit or longer
                     keys. 

                     Under Thursday's agreement, Wassenaar
                     countries would restrict exports of
                     general encryption products using more
                     than 56-bit keys and mass-market
                     products with keys more than 64 bits
                     long, Aaron said. 

                     Copyright© 1998 Reuters Limited.




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