Merike,
And so I reply to myself but got curious and wanted evidence. I found first references of AH/ESP and NULL in 1996 June IPsec archives. http://www.sandelman.ottawa.on.ca/ipsec/1996/06/msg00030.html

And while some interesting tidbits, the joggle for my memory banks was that there was a bunch of discussion on where AH would be used with ESP and whether ESP only would also be relevant. And while I couldn't find exact reference to the March 1998 interop testing in North Carolina that showed issues with AH not traversing NATs I am fairly certain that was the case and why in practice people starting using ESP-Null. (it wasn't in the notes for the follow-up IETF IPsec meeting).

Someone else from that time may also be able to chime in.

The very first IPsec designs called for use of AH plus ESP to offer authentication, integrity and confidentiality. That dual protocol use was a significant burden, so ESP was extended to offer all three services, and AH remained as an auth/integ but no confid alternative, for various reasons. (One reason, as you noted, was export controls on encryption.) Later we revised ESP to incorporate NULL encryption for the reasons I cited earlier; I forgot about the NAT problem.

Steve
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