-Caveat Lector-

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Crypto Cabal: Make Code Not Guns
by Declan McCullagh
12:00 p.m.  8.Apr.99.PDT
WASHINGTON -- If you haven't heard of the Wassenaar Arrangement, don't
worry. Nobody else has either.
But this heretofore obscure international treaty will have more impact
on your life than you may think. The agreement restricts software that
can shield your identity and personal information from prying eyes on
the Internet.

It also doesn't make a whole lot of sense, some panelists said Thursday
at the Computers, Freedom, and Privacy conference in Washington.

Bruce Schneier, president of Counterpane Systems, said that the United
States backed Wassenaar to keep domestic encryption software out of the
hands of foreigners. But overseas security software is now just as good
as work done by US programmers, he said.

"The quality of work done all over the world is very high," Schneier
said.

The export restrictions are intended to stop the overseas spread of
strong encryption because US intelligence agencies worry that the
software will allow terrorists and hostile nations to communicate in
secret.

Schneier noted that many of the contestants in a competition to become
the US government's next encryption security standard come from
overseas.

Late last year, the Clinton administration announced that it had
successfully persuaded 33 nations that signed the Wassenaar Arrangement
to follow its lead in restricting encryption exports. In the United
States, President Clinton has declared a "national emergency" that
allows him to restrict shipments. Congress is considering legislation to
override it.

But the Wassenaar rule gives countries wiggle room, and some have taken
advantage of it. A representative of the French government said that his
country chose the wrong path when enacting Draconian restrictions on the
use of encryption software a decade ago.

Now the French recognize the "need to broadly liberalize" export and
domestic restrictions, said Bruno Jactel, a representative from the
French embassy in Washington.

An online activist from Australia held up a copy of Applied Cryptography
, written by Schneier. His country's laws prevent him from letting
anyone else read the book, said Michael Baker of Electronic Frontiers
Australia.

Calling it a "brief trip into a logic-free zone," he said he had to keep
a record of his activities while traveling abroad. "If I break these
conditions, I might get put in jail or fined or something when I get
back to Australia," Baker said.

Everyone else was missing the point, a representative from the US
government complained.

"The issue will be framed by the larger debate over the utility of
export controls," said Jim Lewis from the Commerce Department's Bureau
of Export Administration. "Wassenaar is very effective in doing what it
was intended to do."

He said that conservative groups have agitated for even stricter export
controls, especially in the wake of the scandal over China receiving US
missile technology.

Lewis said that the Clinton administration has no "plans to have
domestic restrictions" -- even though the FBI and the Department of
Justice backed a 1997 bill that, if passed by Congress, would have
banned the manufacture, sale, and distribution of encryption products
without backdoor surveillance capabilities.

Lewis indicated that the White House would further relax rules
restricting overseas shipments of encryption products -- but not right
away. "For the moment, we still have encryption on the list," he said.


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