News

USIS Washington 
File

03 December 1998

PRESS RELEASE: U.S. PRAISES ENCRYPTION CONTROLS DECISION

(U.S. applauds Wassenaar move to improve controls) (422)



Washington -- The U.S. government praised a decision reached December
3 by the members of the Wassenaar Arrangement to modernize and improve
multilateral encryption export controls.


The international agreement, reached at a meeting in Vienna of the 33
Wassenaar members, "goes a long way toward leveling the playing field
for exporters and promoting electronic commerce," said Ambassador
David Aaron, the President's Special Envoy for Cryptology. "It
provides countries with a stronger regulatory framework to protect
national security and public safety," said Aaron, who is also under
secretary of commerce for international trade.


Following is a Commerce Department press release on the agreement and
the U.S. reaction:


(begin text)



Press Statement



U.S. Applauds Agreement on Encryption in International Export Control
Regime


Vienna, Austria -- The United States welcomed the decision taken
Thursday in Vienna by the 33 members of the Wassenaar Arrangement to
modernize and improve multilateral encryption export controls.
Ambassador David Aaron, the President's Special Envoy for Cryptology,
said that "the international agreement reached here goes a long way
toward leveling the playing field for exporters and promoting
electronic commerce. It provides countries with a stronger regulatory
framework to protect national security and public safety."


The agreement caps a two year effort by the United States, to update
international encryption export controls and to balance commercial and
privacy interests with national security and public safety concerns.
Thursday's agreement simplifies and streamlines controls on many
encryption items and eliminates multilateral reporting requirements.
Specific improvements to multilateral encryption controls include
removing controls on all encryption products at or below 56 bit and
certain consumer entertainment TV systems, such as DVD products, and
on cordless telephone systems designed for home or office use.


Wassenaar members also agreed to extend controls to mass-market
encryption exports above 64 bits, thus closing a significant loophole
in multilateral encryption controls. This gives Wassenaar member
governments the legal authority to license many mass market encryption
software exports which were previously not covered by multilateral
controls and enables governments to review the dissemination of the
strongest encryption products that otherwise might fall into the hands
of rogue end users. The new controls also extend liberalized treatment
to mass-market hardware below 64 bits. Until today, only mass-market
software products enjoyed this liberalized treatment.


"The decisions taken here in Vienna reinforce the Administration's
efforts to promote a balanced encryption policy," Aaron confirmed.


(end text)