SAFE bill negotiations continue (Wired)

   Fight Continues for Crypto Bill
   by Rebecca Vesely 
   3:25pm  19.Sep.97.PDT Backers of a much-amended House bill intended to
   scrap much of the federal government's restrictive rules on encryption
   today were in the midst of talks they hope will salvage some part of
   the original legislation.
   
   House staffers said that negotiations on the Security and Freedom
   through Encryption Act, sponsored by Representative Bob Goodlatte
   (R-Virginia), included a quid pro quo: tougher criminal and
   law-enforcement provisions would be inserted in exchange for softening
   amendments that would greatly limit the use of strong encryption in
   the United States.
   
   In addition to more severe penalties for illegal use of encryption,
   the FBI would get more funding for buying new computers and software
   and hiring security specialists to aid in crypto enforcement.
   
   "We're offering them the biggest, baddest computers," said Connie
   Correll, spokeswoman for Representative Rick White (R-Washington), who
   is leading negotiations. "But the terms are constantly changing. The
   negotiations are very fluid."
   
   As introduced, the Goodlatte bill would have ended the government's
   limits on exporting software containing strong encryption -
   data-scrambling features that guard privacy in transactions and
   communications. The bill's other principal thrust was to prohibit
   creation of a domestic key recovery system - a regime that would use a
   software feature to give law enforcement and national security
   agencies rapid access to encrypted data. The bill has enjoyed
   enthusiastic support from the software industry, eager to maintain its
   competitive advantage in the world marketplace, and from civil
   liberties and privacy advocates who see the legislation as a barrier
   to government snooping in the networked world.
   
   On the other side, the FBI and the National Security Agency have
   attacked the Goodlatte bill. They want domestic key recovery to track
   down digital criminals and export restrictions to limit the
   availability of crypto.
   
   However, the heavy-duty opposition did nothing to slow the bill down
   until last week, when it went to the Intelligence and National
   Security committees for mark-up. What emerged from those sessions was
   a bill that, if passed, would do just the reverse of what Goodlatte
   set out to accomplish. Among the changes: A national key recovery
   system would be mandated; starting in January 2000, the FBI would get
   access, through a court order, to encrypted communications; the
   president and secretary of defense would get to make the call on
   exporting crypto software products; and heavy prison terms and fines
   would be imposed on violators.
   
   The negotiations center on amendments that await the bill in the
   Commerce Committee next week. Washington Republican Rick White, along
   with Mike Oxley (R-Ohio) and Billy Tauzin (R-Louisiana), has been
   meeting with privacy groups, industry lobbyists, and law enforcement,
   and at least a half-dozen staffers are reportedly working
   'round-the-clock to forge a deal.
   
   Oxley, a former FBI agent, has been pushing a provision to ban
   encryption that could not be immediately decrypted by law enforcement.
   It's unclear, however, whether he actually has the votes to get such
   tough language passed.
   
   One possible outcome would be stalemate for this year. But White, for
   one, says that waiting until next year is not an option.
   
   "We have zero credibility on the Internet if we can't solve this
   issue," White said.

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