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To: Jerry Salem who wrote (723)9/16/1999 2:55:00 PM
From: Jerry Salem  Read Replies (1) | Respond to of 1285
 
Encryption Technology Limits Eased

By Kevin Galvin
Associated Press Writer
Thursday, September 16, 1999; 9:50 a.m. EDT

WASHINGTON (AP) -- The Clinton administration is relaxing exports
on computer encryption technology in a decision seen as a victory for the
high-technology industry.

Administration officials, particularly Attorney General Janet Reno and FBI
Director Louis Freeh, have warned that easing controls on data- and
voice-scrambling technology would hamper efforts to track down
terrorists and other criminals.

But the high-tech industry has long argued that U.S. rules were binding
their hands in a competitive market.

Reno was joining National Security Council and Pentagon officials, as well
as Commerce Secretary William Daley, in announcing the decision at the
White House late this afternoon. A White House official said restrictions
on the sale of encryption technology would be removed.

The official, speaking on condition of anonymity, said national security
concerns would be addressed in the new, simplified rules allowing
computer-makers to export encryption software and hardware products.

''This is a great leap forward,'' Dan Scheinman, senior vice president of
legal and government affairs at Cisco Systems Inc., a big maker of
networking gear in San Jose, Calif., told The Wall Street Journal, which
first reported the decision today.

''Based on our current understanding, the industry can now compete on
equal footing with our foreign competitors,'' he said.

The high-tech officials have complained that current Commerce
Department rules are complicated and inconsistent. U.S. companies can
sell encryption products to foreign banks and financial institutions, but not
to telecommunications companies.

But even under the eased restrictions, companies will be required to
submit detailed lists of their buyers, and they will be barred from selling in
Iran, Iraq, Libya, Syria, Sudan, North Korea and Cuba.

© Copyright 1999 The Associated Press