[Note from Matthew Gaylor:  This will appear in the May 2000 Issue of 
The American Spectator and is being sent with permission of Jim 
Bovard.  You can sample some of Jim Bovard's other writings at 
http://www.jamesbovard.com/ . Jim's a busy writer and his work has 
appeared in everything from the Wall Street Journal to Playboy. He 
has had numerous books published including The Farm Fiasco, Fair 
Trade Fraud, Lost Rights, & his recent Freedom in Chains.]

May 2000 American Spectator

THE RISE OF THE SURVEILLANCE STATE

by James Bovard

High-tech whets all the wrong government appetites.

While high-tech breakthroughs make business more productive and life 
more pleasant, progress also has a dark side. Technology designed for 
benign purposes can be used for ill ones too. The Clinton 
administration has led the way, acting as if every new computer and 
telephone should have a welcome mat for federal wiretappers. A 1998 
American Civil Liberties Union report noted, "The Administration is 
using scare tactics to acquire vast new powers to spy on all 
Americans."

On April 16, 1993, the White House revealed that the National 
Security Agency had secretly developed a new microchip known as the 
Clipper Chip. The press release called it "a new initiative that will 
bring the Federal Government together with industry in a voluntary 
program to improve the security and privacy of telephone 
communications while meeting the legitimate needs of law 
enforcement." This was practically the last time that the word 
"voluntary" was mentioned.

The Clipper Chip's developers presumed it should be a crime for 
anyone to use technology--such as encryption--that frustrates 
government agents. Encryption software allows individuals to send 
messages between computers that cannot be read by third parties. It 
is vital to prevent fraud or abuse of financial transactions and is 
widely used both here and abroad. Encryption has a long 
history--Thomas Jefferson used secret codes in his correspondence to 
avoid detection by the British.

"The Clipper Chip proposal would have required every encryption user 
(that is, every individual or business using a digital telephone 
system, fax machine, the Internet, etc.) to hand over their 
decryption keys to the government, giving it access to both stored 
data and real-time communications," the ACLU noted. Marc Rotenberg, 
director of the Electronic Privacy Information Center, observed: "You 
don't want to buy a set of car keys from a guy who specializes in 
stealing cars." When the federal National Institute of Standards and 
Technology formally published the proposal for the new surveillance 
chip, fewer than one percent of the comments received from the public 
supported the Clipper Chip plan.

Although it eventually abandoned its effort to impose the Clipper 
Chip, the administration did not give up on trying to tap the 
nation's telephones. In 1994 it railroaded through Congress a law to 
dumb down phone technology in order to facilitate government 
wiretapping. On October 16, 1995, the telecommunications industry was 
stunned when a Federal Register notice appeared announcing that the 
FBI was demanding that phone companies provide the capability for 
simultaneous wiretaps of one out of every hundred phone calls in 
urban areas. The FBI notice represented "a 1,000-fold increase over 
previous levels of surveillance." FBI Director Louis Freeh denied 
that any expansion of wiretapping was planned.

The 1994 Communications Assistance for Law Enforcement law led to 
five years of clashes between the FBI and the communications industry 
over the new standards. The Federal Communications Commission was the 
bill's designated arbiter; in August 1999, the FCC caved and gave the 
FBI almost everything it wanted. The FCC ordered that all new 
cellular telephones become de facto homing devices for law 
enforcement by including components which enable law enforcement to 
determine the precise location from which a person is calling. As 
Electronic Design magazine noted, "Unlike the location feature being 
created for 911 emergency services, this capability will apply to all 
calls and users won't be able to turn it off." Attorney General Janet 
Reno hailed the decision: "The continuing technological changes in 
the nation's telecommunications systems present increasing challenges 
to law enforcement. This ruling will enable law enforcement to keep 
pace with these changes." The New York Times noted, "Law-enforcement 
officials have asserted that since the location of wired telephones 
is already public information, there is no intrusion of privacy in 
determining the location of wireless phones." This is like saying 
that since police can determine a person's home addresses by checking 
the phone book, it is no violation of privacy to let police follow 
the person around every place he goes once he leaves his house.

In addition to telephones, the security of computer software and the 
Internet have also been targeted. The administration spent three 
years hounding Phil Zimmerman, the inventor of Pretty Good Privacy, 
software designed to protect computer data and messages from 
surveillance. Someone placed PGP on an Internet site, thus making it 
available free to anyone in the world who chose to download it. For 
this the feds threatened Zimmerman with a five-year prison sentence 
and a million-dollar fine for exporting "munitions." Noted Zimmerman 
in a 1999 interview: "In a number of countries with oppressive 
regimes, PGP is the only weapon that humanitarian aid workers have to 
prevent hostile dictatorships from monitoring their communications."

Last August the Justice Department submitted the Cyberspace 
Electronic Security Act to Congress. The bill would make it easier 
for government to intrude on private communications by allowing law 
enforcement to obtain search warrants "to secretly enter suspects' 
homes or offices and disable security on personal computers as a 
prelude to a wiretap or further search." Average Americans would face 
to "black bag jobs" previously restricted to espionage or national 
security cases. Janet Reno justified the new powers thus: "When 
criminals like drug dealers and terrorists use encryption to conceal 
their communications, law enforcement must be able to respond in a 
manner that will not thwart an investigation or tip off a suspect." 
But such searches pose special dangers because of the opportunities 
for government agents to tamper with evidence while manipulating 
software on a target's computer.

In October 1999, members of the international Internet Engineering 
Task Force revealed that the FBI was pressuring them to create a 
"surveillance-friendly" architecture for Internet communications. The 
Bureau wanted the Task Force to build "trapdoors" into e-mail 
communications programs to allow law enforcement easy access to 
supposedly confidential messages. Several high-tech experts publicly 
warned: "We believe that such a development would harm network 
security, result in more illegal activities, diminish users' privacy, 
stifle innovation, and impose significant costs on developers of 
communications." The ACLU's Barry Steinhardt said, "What law 
enforcement is asking...is the equivalent of requiring the home 
building industry to place a 'secret' door in all new homes to which 
only it would have the key." Although the task force managed to 
rebuff the pressure, the fact the FBI even attempted to have software 
engineers sacrifice e-mail reliability for the sake of government 
intrusions is a warning as to how audacious the feds have become.

Last fall news broke about the existence of Echelon, a spy satellite 
system run by the National Security Agency along with the United 
Kingdom, Australia, New Zealand, and Canada. Echelon reportedly scans 
millions of phone calls, e-mail messages, and faxes each hour, 
searching for key words. The European Union and the governments of 
Italy and Russia loudly protested Echelon's intrusions into their 
sovereign domains. European Parliament Speaker Nicole Fontaine 
harumphed: ''We have every reason to be shocked at the fact that this 
form of espionage, which has been going on for a number of years, has 
not prompted any official protest.'' One Portuguese paper complained 
that Echelon is "like a technological nightmare extracted from the 
crazy conspiracy theories of 'The X-Files.'''

Rep. Bob Barr, a former CIA employee and the most vigilant 
congressman regarding federal high-tech intrusions, attached a rider 
to an appropriations bill last year that required the NSA and the CIA 
to report to Congress on the standards Echelon used to tap Americans' 
communications. In a February letter, the NSA assured members of 
Congress that "the NSA's activities are conducted in accordance with 
the highest constitutional, legal and ethical standards, and in 
compliance with statutes and regulations designed to protect the 
privacy rights of U.S. persons.'' Even as it professed it would never 
act unconstitutionally, the NSA sought to block further House 
inquiries into Echelon's operations.

A February report by the European Union alleged that Echelon has been 
used for economic espionage. Former CIA Director James Woolsey told a 
German newspaper in early March that Echelon collects "economic 
intelligence." One example Woolsey gave was espionage aimed at 
discovering when foreign companies are paying bribes to obtain 
contracts that might otherwise go to American companies. Woolsey 
elaborated on his views in a condescending March 17 Wall Street 
Journal op-ed, justifying Echelon spying on foreign companies because 
some foreigners do not obey the U.S. Foreign Corrupt Practices Act. 
To add insult to injury, Woolsey noted there's no reason for U.S. 
companies to steal backward Europe's secrets.

Some of the most egregious examples of governmental invasion of 
privacy relate to two of the most intimate areas in life--your money 
and your body. In September 1999, Marvin Goodfriend, a senior vice 
president at the Federal Reserve Bank of Richmond, proposed that 
government use new technology to penalize citizens who do not spend 
their cash as fast as government wanted. "The magnetic strip [in new 
U.S. currency] could visibly record when a bill was last withdrawn 
from the banking system. A carry tax could be deducted from each bill 
upon deposit according to how long the bill was in circulation." 
Wired News noted that a federal "carry tax" would "discourage 
'hoarding' currency, deter black market and criminal activities, and 
boost economic stability during deflationary periods when interest 
rates hover near zero." Rep. Ron Paul, a member of the House Banking 
Committee, denounced the proposal: "The whole idea is preposterous. 
The notion that we're going to tax somebody because they decide to be 
frugal and hold a couple of dollars is economic planning at its 
worst."

Lastly, the Customs Service recently began deploying BodySearch 
equipment that allows Customs inspectors to see through the clothes 
of designated lucky travelers. The ACLU's Gregory Nojeim warned that 
the new body scanners could show "underneath clothing and with 
clarity, breasts or a penis, and the relative dimensions of each. The 
system has a joystick-driven zoom option that allows the operator to 
enlarge portions of the image." Customs spokesman Dennis Murphy 
explained: "What [BodySearch] does is alleviate the need for us to 
touch people, because people don't like to be touched, and we don't 
blame them, because our inspectors also feel uncomfortable touching 
people." The BodySearch system has a feature that can potentially 
violate travelers more than a pat-down from a Customs agent: the 
capacity to save images of what it views. Travelers can now look 
forward to a new kind of trip souvenir: a picture of their privates 
on file at a federal agency.

TAGLINE: Bovard is the author of "Feeling Your Pain": The Explosion 
and Abuse of Government Power under Clinton-Gore (St. Martin's Press, 
August 2000).


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