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<A HREF="http://cryptome.org/crypto97-ne.htm">Cryptology: Law Enforcement &
National Security
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Just a taste. Total file is 191KB.

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11 July 1999. Thanks to Nick Ellsmore and Brian Gladman.

This document available in original Zip-compressed .DOC format:
http://cryptome.org/crypto97-ne.zip (zipped 75K; unzipped .DOC 243K;
hardcopy 108 pages).



------------------------------------------------------------------------

[4 July 1999]


Cryptology:

Law Enforcement &
National Security

vs.

Privacy, Security
& The Future of Commerce.





Nick Ellsmore
[EMAIL PROTECTED]






"It is dangerous to be right when the
government is wrong."
-Voltaire.







------------------------------------------------------------------------

Contents
PageAcknowledgments
4
Foreword
5
Introduction - Some words to remember...
8
Part I - A Historical PerspectiveCryptology
10
Arms Control: COCOM and the Wassenaar Arrangement
19
Part II - The Current SituationThe Requirement for Cryptography
28
Export Controls in Australian Domestic Law
29
The Walsh Report
42
Global Surveillance
46
The OECD Proposal
50
Part III - The Application of the LawAmerican and Australian
Constitutional Guarantees
53
The United States of America
55
Philip Zimmermann and PGP
55
Karn v Department of State, Karn v Department of Commerce
57
Bernstein v Department of State
59
Australia
61
Part IV - The IssuesThe Push for Law Reform
64
Human & Civil Rights
65
Proposed Amendments to Australian Domestic Legislation
68
Self Incrimination and the Right to Silence
74
Departmental Responsibility for Cryptographic Export Controls
75
The need for 'balance'
76
Transparency of Government
78
The 'export' of software over the Internet
79
Key Escrow
87
Defence or Offence?
89
Our Choice
90
Conclusions & Recommendations
91
Opinions
95
Appendix A: BibliographyAustralian WWW Sources
96
International WWW Sources
98
Australian Other Sources
103
International Other Sources
104
Notes



------------------------------------------------------------------------

Acknowledgments


Thanks to Greg Taylor at Electronic Frontiers Australia (EFA), Dan
Tebbutt, Brian Gladman at the Global Internet Liberty Campaign (GILC),
Martyn Evans MP, Senator Richard Alston, Aldo Borgu, Stephen Anderssen
at the Defence Signals Directorate (DSD), contributors who have
requested anonymity, and the School of Business Law and Taxation at the
University of New South Wales (UNSW), Sydney, Australia.

Special thanks to Bruce Gordon at the School of Business Law and
Taxation at UNSW for overseeing the construction of this paper and
providing guidance in relation to legal issues.




------------------------------------------------------------------------


Foreword


By Dr Brian Gladman, Crypto Policy Co-ordinator, Cyber-Rights and
Cyber-Liberties (UK).

A few centuries ago trade began to develop on a world scale because the
human race finally mastered the high seas. But there were no laws
governing proper conduct and piracy became commonplace. Stealing other
people's goods became widespread and, worse still, many major European
powers secretly supported pirates to plunder the ships and the trading
routes of other Nations. So State sponsored piracy became commonplace.

In time, however, the European powers slowly began to realise that this
practice was damaging their own interests by allowing the long term
benefits of world trade to be subverted for the short term national
gains secured through piracy. These nations hence moved to abandon
piracy and agreed to respect the right to own, transport and trade goods
on the high seas. The rule of law became established for the benefit of
all.

Cyberspace is now emerging as a new global trading environment and one
where, sadly, the behaviour of Nations mirrors that seen previously. As
yet there are no laws governing conduct in cyberspace and as a result
State sponsored piracy has again become the norm. The Nations that
dominate cyberspace show no respect for the information assets of
others, which are stolen without a second thought. Moreover, actions are
also taken to ensure that the 'weak' in cyberspace remain weak by
denying them any means of protection.

But Electronic Commerce on a global scale cannot truly thrive in a
cyberspace where information piracy and disrespect for the information
assets owned by others are acceptable forms of behaviour. Commerce in
cyberspace can only emerge when the major powers abandon sponsored
'information piracy' and agree to respect the rights of all cyberspace
users to own and protect their information assets.

It seems inevitable that things will move in this direction: eventually
'information piracy' will be outlawed but, if past experience is any
indicator it will be the 'biggest bully on the block' - the US now, the
UK in days gone by - that will be the last to take this step (and,
paradoxically, the biggest beneficiary).

So, although export controls on cryptography appear 'on the surface' to
be a significant cause of delay in the emergence of the global
electronic market, they are, in reality, only a symptom of a deeper
malaise. The fundamental need is for the rule of law to be established
in cyberspace, including a universal respect for the right to own and
trade 'information assets', mirroring the respect now shown for these
rights in the physical world.

Without such changes, cyberspace - on which the emergence of the global
electronic market depends - will never become the dominant trading
environment of the 21st century.







------------------------------------------------------------------------



Introduction - Some words to remember...



Before reading this paper, it is important to have a general
understanding of some of the most important concepts in cryptology. The
following is an explanation of the terminology which should be
understood before reading the body of the paper:

There are two ways to conceal a message. The first, steganography,
involves concealing the existence of the message. This could be
implemented by the use of invisible ink, or by concealing a secret
message in apparently normal text - the message can be made up of every
ninth letter. The second concealment method is cryptography, which
doesn't conceal the existence of the message, but rather transforms it
into unintelligible text which is meaningless to outsiders. Strong
cryptography refers to cryptography of 64-bit strength or more, and weak
cryptography refers to cryptography of a weaker than 64-bit strength.

A code is a set of all the words that will be used in any given message
and the words (or numbers) with which to replace them. For example, It's
Raining on Wednesday may be code for a given fighter plane to start a
bomb run. There is no systematic method for generating or breaking a
code - the only way to break a code is to guess correctly or get a copy
of the list of codes.

A cipher uses a given system for scrambling information. This may take
one of two forms: transposition or substitution. A transposition cipher
keeps the same letters as the original message but changes their order.
For example, PIC LTO CIA SPE is a very simple transposition of "special
topic" - reverse the order of the groups of letters to get to the
plaintext. A substitution cipher actually changes the letters in the
message. The most famous substitution cipher is the Caesar cipher, which
is explained in the section on history.

While a code operates on entire words or even sentences, ciphers often
operate at a smaller level - for example, operating on individual
letters. If you communicate using a code, you can only say something if
a codeword exists to say it. Using a cipher, you can say anything.

The information to be scrambled is the plaintext. The scrambled
information is either ciphertext or codetext, depending on the method.
The final message sent is a cryptogram. If a message is not enciphered
at all, it is cleartext.

While cryptography is the encoding of information, cryptanalysis
 (sometimes also called codebreaking) is the study of breaking codes and
ciphers.

Together, cryptography and cryptanalysis make up cryptology.



------------------------------------------------------------------------


Part I: A Historical Perspective


"It must be that as soon as a culture has reached a certain level,
probably measured largely by its literacy, cryptography appears
spontaneously - as its parents, language and writing, probably also did.
The multiple human needs and desires that demand privacy among two or
more people in the midst of social life must inevitably lead to
cryptology wherever men thrive and wherever they write. Cultural
diffusion seems a less likely explanation for its occurrence in so many
areas, many of them distant and isolated."

- David Kahn, The Codebreakers

Cryptology


Cryptology has played a very important part in the history of
civilisation as we know it today. From the first uses in Ancient Egypt
to the beheading of Mary Queen of Scots and the Enigma codes of WW II,
the making and breaking of ciphers and codes has been very influential.

The following is a brief history of cryptology - how we got to where we
are today. The source of most of this information is David Kahn's 1967
book The Codebreakers, which to date is the most comprehensive and
readable book on the underrated history of pre-computer codes and
ciphers.

* * *

The first known use of cryptography is circa 1900 BC, in Egypt. An
Egyptian scribe uses unusual hieroglyphic symbols in place of the more
ordinary and common ones. This deliberate transformation of the writing
 is the oldest text known to do so.(1)This use is better described as
protocryptography(2), as there was no intention to keep the information
secret.

In the Old Testament of the Bible, written circa 500-600 BC, a simple
substitution cipher known as ATBASH appears in Jeremiah 25:26 and 51:41.
In this cipher, the last letter of the Hebrew alphabet replaces the
first, and vice versa. In two instances, "Babylon" is replaced with
"Sheshach."(3)Once again, however, there is no intention to keep the
enciphered words secret, and the use of cryptography is civil in nature.


The first military use of encryption occurred around 475 BC, and it was
the Spartans who used a device called the "skytale" to implement a
transposition cipher for rendering communications between Spartan
leaders and their subordinates unreadable to interceptors. The skytale
was a staff around which parchment or leather was wrapped, and the
message was then written down the length of the staff. When the leather
or parchment was unwound from the staff, the letters were unintelligible
until wrapped around a staff of the same thickness by the receiver of
the message.(4),(5) The skytale is therefore an early example of a
transposition cipher. It should be noted, however, that the historical
accuracy of the skytale's use as a cryptographic device has been
questioned by an article in Cryptologia in late 1998.(6)

The first military use of a substitution cipher occurred during Caesar's
reign, around 50-60 BC, and was named after him. The Caesar cipher is
the simplest of substitution ciphers, and involves replacing each
plaintext character with the letter three ahead in the alphabet. The
number three was Caesar's choice - any number can be used.

The two alphabets were written one above the other:
A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
D E F G H I J K L M N O P Q R S T U V W X Y Z A B C





The plaintext characters (top row) were replaced with the characters on
the bottom row. Hence SPECIAL TOPIC would become VSHFLDO WRSLF. Another
example of a Caesar cipher is the classic computer HAL in 2001: A Space
Odyssey. A single letter shift right turns H-A-L into I-B-M.

Looking at such a cipher today, it is hard to believe that it kept
anything concealed from anyone - all it takes is about 25 English
characters for an able cryptanalyst to reconstruct the plaintext through
the use of frequency tables(7) - but in Caesar's day, when few people
could read at all, it was good enough.(8)

Despite the ease with which a Caesar cipher can be decrypted, it lives
on today in the ROT13 encryption program. The ROT13 program uses a
Caesar cipher which replaces each letter with the letter 13 ahead (ie
"A" with "N" etc.). A rotation of 13 characters is special because with
26 letters in the alphabet, running the encryption program over the
ciphertext returns to the plaintext (as "N" becomes "A" etc.). This
program is not, however, intended to be used for security!(9) Bruce
Schneier, the author of Applied Cryptography, talks of two kinds of
encryption - one keeps your kid sister from reading your work, the other
stops the NSA. ROT13 is most definitely the former.

Written somewhere between 0 and 400AD, the Kama Sutra of Vatsayana lists
cryptography as the 44th and 45th of 64 arts men and women should know
and practice.(10) The 44th is "the art of understanding writing in
cipher, and the writing of words in a peculiar way," and the 45th is
"the art of speaking by changing the forms of words."

At roughly the same time all around the world, cryptography in its most
basic forms was springing up. This was the time when the level of
sophistication and competency with language that Kahn referred to as
leading to the spontaneous appearance of cryptography had been reached.
(11)

During the Dark Ages in Europe, writing itself almost disappeared.(12)
 For this reason, between 500AD and 1400AD, Western cryptography
stagnated.(13)When cryptography appeared again, it was at the most basic
level. Messages were being sent with words written backwards, or
vertically. Dots were substituted for vowels, and foreign alphabets were
used.(14)

Towards the end of this period, some famous names turned their hands to
cryptography. Francis Bacon, (c. 1214-1294) the English philosopher
listed five methods of secret writing in his Epistle on the Secret Works
of Art and the Nullity of Magic.(15) About 1390, Geoffrey Chaucer also
contributed to the history of cryptography by using a substitution
cipher of invented symbols in his book The Equatorie of the Planetis.
(16)

As cryptography began to lean more towards the concealment of
information - due to increased military and government use - it began to
be considered a black art. The gaining of knowledge from unintelligible
text was considered akin to reading entrails or tealeaves.(17)

Through all these hundreds of years when cryptography had been
progressing, its partner cryptanalysis had not yet been developed.
Cryptology, as the combination of cryptography and cryptanalysis, was
born among the Arabs.

The role of cryptology in history is generally not well understood, and
is easily understated. It is not widely known that the beheading of
Mary, Queen of Scots, was a direct result of the cryptanalysis and
decipherment of secret messages sent between Mary and her conspirators
in France. The messages were intercepted and read by Thomas Phelippes,
Queen Elizabeth's cryptographer.(18),(19)

The title "father of western cryptology" is given to Leon Battista
Alberti, an artist-scholar, who in the late fifteenth century became the
first cryptologist to use a polyalphabetic substitution cipher(20) - a
cipher that uses more than one alphabet for substitutions, and hence
defeats the common methods of decrypting substitution ciphers, such as
the Caesar cipher.

In Alberti's polyalphabetic cipher, the alphabet used for encipherment
is changed every few words. Alberti also took the step of using a code
and a cipher, and enciphering the code words.(21) This depth of
encryption made Alberti's cipher unbreakable during the Renaissance. In
fact, this class of cipher was not broken until the 1800s.(22)However,
they were not often used as they took much time and effort, and a single
error in decryption rendered the rest of the message unrecoverable. This
was the danger with polyalphabetic encipherment. Alberti's encryption
was not entirely academic, however - it was used by the Union army
during the American Civil War.(23)

In 1518, Johannes Trithemius took Alberti's cipher one step further and
changed the alphabet used for encryption after every letter.(24) The
first systems of cryptography using "keys" appeared around 1553. This
key system, although infinitely more complex, remains the basis of
encryption today.

The greatest single leap in the creation of military ciphers was the
invention of the telegraph, and later that of the radio.(25) "During the
eighteenth and nineteenth centuries, cryptology became an almost
universal practice, and non-secret codes came into existence for the use
of merchants, bankers and businessmen as the use of Morse telegraphy
became vital to expanding business as well as diplomatic operations."
(26)

During the nineteenth century, those governments that had previously
used codes made the transition to ciphers. Once there was the capability
of virtually instantaneous communication, foreign armies were employing
machines to try to cope with the flood of encrypted messages.(27)
 "During the period 1914-1918 German messages totalling over one hundred
million words had been intercepted by the Allies."(28)

With each new technology invented, a means of encrypting data sent using
that technology was invented. This first telephone scrambler was
invented by James H. Rogers in 1881. This was only five years after Bell
invented the telephone itself.(29)

Mechanical encryption devices started appearing around the early 1920s,
which were designed to automate encryption. Many of these machines were
based on "rotors," a system where a mechanical wheel, or multiple
wheels, were used to perform the required substitution.(30) Each rotor
was an arbitrary permutation of the alphabet, and replaced one letter
with another. The trick to these machines was having multiple rotors,
and having the rotors shift between letters.(31) The best known rotor
device is the Enigma, the machine used by the Germans during WW II. The
Enigma had five rotors, a plugboard for entering the message, and a
reflecting rotor that caused each rotor to operate on each letter twice.
(32) As complicated as this system was, it was broken during WW II,
first by a team of Polish cryptographers, then by the British as the
Germans modified the machine as the war progressed.(33)

In The Codebreakers, Kahn makes the observation that "[m]odern western
cryptology emerged directly from the flowering of modern diplomacy."(34)
 This is agreed to by Bielewicz, in Secret Language: "It was the world
of diplomacy and warfare of the early European states that developed the
modern science."(35)It is this history of military and diplomatic
cryptography that has current intelligence and law enforcement agencies
feeling threatened by strong cryptography in the hands of the masses,
and more specifically the potential for strong cryptography to fall into
the hands of criminals. This fear is present in a 1994 Report into
telecommunications interception in Australia - The Barrett Report -
which concluded that "[w]hile Australian agencies all report that
encryption has not been a problem to date, it is likely to become one in
the future."(36)

A good response to this perceived threat is found in the 1998 book
Privacy on the Line, in which Diffie and Landau make the timely
observation that:
"[t]he availability of wiretaps - legal or otherwise - for more than a
lifetime has given us generations of police who cannot imagine a world
without them."(37)

As cryptography crossed the line from art to science, mathematicians
started investing their time in creating stronger ciphers. The invention
of the computer aided their work no end, and it is now true that the
personal computer can encipher information to the point where without
the key, the information is unrecoverable within the lifetime of the
storage medium. This rapid development of cryptographic power has left
legislators and governments in its wake, especially given that until
recently there was very little demand for non-government cryptographic
capabilities.(38)

Ciphers as used by computers have two main components: an algorithm and
a "key". There are two types of key systems: asymmetric and symmetric.
In asymmetric (also known as 'public key') encryption, one key is public
but the other key is kept secret. A message is encrypted using the
public key and can only be decrypted by using the private key.(39) The
keys, while being a pair, are created such that it is impossible in
practice to determine the private key from the public key.

In symmetric (also known as 'secret key') encryption, the same key is
used to encrypt as to decrypt. The practical weakness of symmetric
cryptography is the security needed when transferring the key. To ensure
the security of the key, public key encryption is often used for the
communication of the secret key to be used for symmetric encryption,
which is preferable for both security and speed. In both asymmetric and
symmetric encryption, the bigger the range of possible keys, the longer
it will take to break the cipher. Even with the international defence
community's most powerful computer technology, it is possible for any
person to encrypt data so that it is not currently possible to decrypt
the data without the secret key.


* * *

Arms Control: COCOM & The Wassenaar Arrangement


The power of an encryption system is expressed by the length (in bits)
of the key. The most common encryption used today - the Data Encryption
Standard (DES) - uses a 56-bit algorithm. This means that there are 256
 different permutations - in other words, there are
72,057,594,037,927,936 possible keys. While this is a lot of keys, a
code-cracking contest was won recently by a group of computer experts
who cracked a 56-bit key in 22hrs and 15mins.(40) While this may seem a
long time, it is without a large investment of money or specialised
equipment - both things many national Departments of Defence have at
their disposal. Even in the civilian domain, with a machine costing
between US$1 million and US$1.5 million, the 56-bit DES system can be
cracked in an average of 3.5 hours.(41)

However, the difficulty of cracking a symmetric cipher rises
exponentially. For an n-bit key, there are 2n possible keys to cycle
through in a brute force attack. Hence each bit added to the key length
doubles the amount of time required to try every possible key. William
Crowell, Deputy Director of the US National Security Agency (NSA) stated
in a 1997 US House of Representatives' Committee on International
Relations hearing that with current technology, a 64-bit algorithm would
take 7,000 years to crack, and a 128-bit algorithm would take 8.6
trillion times the age of the universe.(42) While being a typical
national security exaggeration, it is true that 128-bit encryption is
for all intents and purposes currently "uncrackable," and is becoming
more widespread by the day.(43) It has been estimated by senior
cryptographers that to protect a message for 20 years will take a
minimum of 90-bit encryption.(44)

>From this comes the conflict between law enforcement and national
security on the one side, and personal privacy, confidentiality, and
human rights on the other. As the Australian Information Industry
Association stated in its Draft Policy on Encryption:
"[e]ssentially the argument is whether to put the demands of
crime-fighting before those of protecting the privacy of businesses and
individuals."(45)

The conclusion of Gerard Walsh's Review of Policy Relating to Encryption
Technologies ("The Walsh Report") - performed on invitation from the
Attorney-General's Department with the task of offering a view on
whether legislative or other actions are required to cater for national
security and law enforcement interests while being conscious of privacy
issues(46) - identifies the conflict thus:
"[S]trong cryptography, imminently available to the mass market, will
offer significant enhancement of data security and personal and
corporate privacy, but also provide a powerful shield behind which
criminals and others may operate."(47)

The control of encryption is presently achieved through the Wassenaar
Arrangement on Export Controls for Conventional Arms and Dual-Use Goods
and Technologies (The Wassenaar Arrangement), a multilateral agreement
intended to restrict the proliferation of products with potential
military applications. Encryption is explicitly included in the section
regarding "dual-use goods and technologies" - products which have a
genuine use in the civilian realm, whilst remaining potentially
dangerous if used in war.(48),(49)

Prior to the Wassenaar Arrangement, a similar function was performed by
the Coordinating Committee for Multilateral Export Controls (COCOM),
which was established in 1949 to control strategic goods and technology.
Unusually, COCOM did not ever have a treaty or executive agreement,
instead it was based on informal agreement and a rule of unanimity. The
secretariat was located in Paris and member countries had permanent
delegates.(50) Australia was not a member of COCOM until April 11, 1989
following changes in Australia's export controls bringing them in line
with those operated by the Committee.(51)

In the early 1990s, as part of the fallout of the Cold War, it was
decided that COCOM's East-West focus was no long appropriate. In June
1992, COCOM members invited the former Soviet republics to participate
in a COCOM Cooperation Forum on Export Controls. At the Forum's first
meeting, in Paris in November 1992, representatives from all Eastern
European democracies, the Baltic states, and all but three of the former
Soviet republics attended.(52) It was this forum that laid the path for
the removal of COCOM itself. A new agreement was needed to "deal with
risks to regional and international security and stability."(53)

On the 16th November 1993, a High Level Meeting (HLM) of the COCOM
member states agreed to terminate COCOM and establish a new arrangement.
This was confirmed at a further HLM in Wassenaar, Netherlands on 29-30
March 1994. COCOM ceased to exist the next day, 31 March 1994.

On 30 March 1994, The White House issued a press release stating that:
"The members of COCOM have agreed to end the Cold War regime effective
tomorrow. The end of the Cold War and the disintegration of the Soviet
Union and the Warsaw Pact led us and our allies to the view that COCOM's
strategic rationale was no longer tenable."(54)

Agreement to establish the "Wassenaar Arrangement" was reached at the
HLM on 19 December 1995.(55) The inaugural Plenary meeting of the
Wassenaar Arrangement was held 2-3 April 1996 in Vienna, Austria, which
is now where the office of the Wassenaar Arrangement Secretariat is
located. Unlike COCOM, the member countries do not have permanent
delegates, rather they send delegates to the meetings as they arise.
Australian delegates to Wassenaar meetings have included representatives
from the Department of Foreign Affairs and Trade and the Defence Signals
Directorate. This meeting resumed on 11-12 July 1996, and final
consensus on the "Initial Elements", the basic document of the Wassenaar
Arrangement was reached. The new control lists came into effect 1
November 1996.(56)

Whereas the COCOM regime consisted of 17 member states, The Wassenaar
Arrangement expanded this to have 33 cofounding countries. The 33
cofounders were made up of the original 17 COCOM states (predominantly
the member states of NATO): Australia, Belgium, Canada, Denmark, France,
Germany, Greece, Italy, Japan, Netherlands, Norway, Portugal, Spain,
Turkey, United Kingdom and United States; the six COCOM "cooperating
countries": Austria, Finland, Ireland, New Zealand, Sweden and
Switzerland; and new members Russian Federation, Czech Republic,
Hungary, Poland, Slovak Republic, Argentina, Republic of Korea, Romania,
Bulgaria and Ukraine.

In an explanatory document regarding the Wassenaar Agreement, the
Secretariat stated that:
"[t]he Wassenaar Arrangement was designed to promote transparency,
exchange of views and information and greater responsibility in
transfers of conventional arms and dual-use goods and technologies, thus
preventing destabilising accumulations."(57)

The Wassenaar Arrangement is implemented through the use of "control
lists," which are lists negotiated at the Wassenaar Arrangement
meetings, and contain sensitive goods and technologies which the parties
to the Arrangement wish to control. These lists are intended to be
incorporated into the domestic law of the signatories to the
Arrangement. In Australia, these lists are incorporated into the Defence
and Strategic Goods List which is referred to in the Customs Act.

Whether the Wassenaar Arrangement fosters transparency is very
questionable, and as Dr Brian Gladman, Crypto Policy Co-ordinator for
Cyber-Rights and Cyber-Liberties (UK) stated, via email, of the
situation in the United Kingdom, "[The Wassenaar Arrangement] is an
'arrangement' and not a 'treaty' and this means that the UK government
can agree to it without having to take its case through Parliament. Thus
UK citizens cannot challenge it."

Analysts in the United States have estimated that existing export
controls could cost the US software industry more than $30 billion in
lost sales.(58) Despite this, the Wassenaar Arrangement Secretariat's
explanatory document also claims that "[t]he Arrangement does not impede
bona fide civil transactions."(59) Until the Wassenaar Arrangement
meeting of December 1998, the Arrangement attempted to ensure this was
so by including an exemption for mass market and public domain software
from the controls of the Arrangement. This exemption, the General
Software Note (GSN), stated that:
The Lists do not control "software" which is either:
1.   Generally available to the public by being:
     a.   Sold from stock at retail selling points
          without restriction, by means of:
          1.   Over-the-counter transactions;
          2.   Mail order transactions; or
          3.   Telephone call transactions; and
     b.   Designed for installation by the user without
          further substantial support by the supplier; or


2.   "In the public domain".(60)




Australia, despite being a signatory of the Wassenaar Arrangement, did
not allow this exemption. In the "Statements of Understanding" preceding
the Defence and Strategic Goods List, the aforementioned General
Software Note is prefaced with:
With the exception of Category 5, Part 2 (Information
Security) . . . this list does not control "software"
which is either: . . . [continued as above](61)



Along with Australia, four other countries also disallowed the GSN
waiver: The USA, New Zealand, France and Russia.(62)

At the December 1998 meeting of the Wassenaar Arrangement countries, it
was decided to allow the export of sub-64 bit mass-market encryption
products. This was essentially a concession to the reality that already
existed, which was then traded off against the strengthening of
restrictions placed on stronger encryption. Essentially, the US
Government's doctrine of "if the Government can't easily crack it, you
can't export it," has been adopted by the member countries.(63) In a
public statement issued from Vienna on 3 December 1998, it was declared
that the amendments:
"included . . . the modernisation of encryption controls to keep pace
with developing technology and electronic commerce, while also being
mindful of security interests."(64)

The General Software Note has now been exempted for Category 5, Part 2
(Information Security) of the Dual-Use List. In its place is a new note
which states:
"5.A.2 and 5.D.2 do not control items that meet all of
the following:
a.   Generally available to the public by being sold,
     without restriction, from stock at retail selling
     points by means of any of the following:
     1.  Over-the-counter transactions;
     2.  Mail order transactions;
     3.  Electronic transactions; or
     4.  Telephone call transactions;
b.   The cryptographic functionality cannot easily be
     changed by the user;
c.   Designed for installation by the user without
     further substantial support by the supplier;
d.   Does not contain a "symmetric algorithm" employing a
     key length exceeding 64 bits; and
e.   When necessary, details of the items are accessible
     and will be provided, upon request, to the
     appropriate authority in the exporter's country in
     order to ascertain compliance with conditions
     described in paragraphs a. to d. above."(65)



The similarities to the GSN are obvious, but the additions are striking
and blatant attempts to keep the encryption genie in the box. While (d)
restricts the strength of the encryption to 64 bits - a strength widely
accepted as being inadequate, (e) ensures that national security
agencies can get the code to the algorithms used for encryption to help
them figure out how to break them.

The increased restrictions on cryptography came as a surprise given the
recent outspokenness of many member states, including Canada, Ireland
and Finland who have announced pro-cryptography policies.(66) In
addition to these countries, many multinational corporations such as
IBM, Sun, Microsoft and Netscape have lobbied against restrictions
limiting the security they can include in the software sold on the
international market.(67) Not surprisingly, the push for increasing
restrictions was led by the United States, the international superpower
of communications intelligence. David Aaron, the American special envoy
on cryptography left the meeting claiming success, and claimed the new
 restrictions:
"enable[d] governments to review the dissemination of the strongest
encryption products that might fall into the hands of rogue end-users."
--[more at site]--
Aloha, He'Ping,
Om, Shalom, Salaam.
Em Hotep, Peace Be,
Omnia Bona Bonis,
All My Relations.
Adieu, Adios, Aloha.
Amen.
Roads End
Kris

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