Senators agree with Freeh's suggested crypto restrictions (CNET)

   Senators back encryption limits
   By Reuters
   September 4, 1997, 9:45 a.m. PT
   
   WASHINGTON--Several senators, supported by FBI chief Louis Freeh, said
   yesterday they would favor imposing domestic limits on computer
   encoding technology, shocking opponents of current limits on its
   export.
   
   Encryption programs have become an increasingly important means of
   securing electronic commerce and communications. But the scrambling
   capability can also be used by criminals to hide their dealings,
   according to law enforcement agencies.
   
   Sen. Dianne Feinstein (D-California) said she would favor requiring
   manufacturers of encryption products to include features allowing the
   government to decode any message by recovering the software keys.
   
   "Nothing other than some kind of mandatory key recovery really does
   the job," Feinstein declared at a hearing of the Senate Judiciary
   Committee's technology, terrorism, and government information
   subcommittee. "The public safety issue is a paramount one."
   
   Sen. Jon Kyl (R-Arizona), chairman of the terrorism subcommittee,
   added he was "in complete agreement."
   
   Freeh told the subcommittee he would also favor mandatory key recovery
   but added that such a policy was probably unattainable given the
   strong opposition from other lawmakers and interest groups.
   
   "Mandatory key recovery, to the extent that it was implemented, would
   be the best law enforcement solution," Freeh said.
   
   As a lesser step, Freeh suggested legislation requiring manufacturers
   to include key recovery features without immediately requiring users
   to turn on the features.
   
   No opponents of the current limits on export of encryption technology
   spoke at the hearing. Afterwards, some said they were shocked by the
   discussion.
   
   "It was really shocking to hear how casually senators and the FBI
   director talked about imposing domestic controls," said Alan Davidson,
   staff counsel at the Center for Democracy and Technology. "They've
   crossed a new line in this debate."
   
   "It appears that Feinstein wants a Constitution-free zone for the
   Internet," said David Banisar, staff counsel at the Electronic Privacy
   Information Center, another civil rights group that focuses on the
   Internet.
   
   Software companies also oppose mandatory key recovery schemes, arguing
   they are unworkable, expensive, and not required by customers and that
   they hurt the ability to compete with foreign companies not restrained
   by U.S. limits.
   
   The Senate is considering a bill sponsored by John McCain (R-Arizona)
   and Bob Kerrey (D-Nebraska) that would slightly relax export controls
   while providing strong incentives to promote the use of key recovery
   within the United States. The bill was approved by the Commerce
   Committee in June but growing opposition, including from Majority
   Leader Trent Lott (R-Mississippi), may derail the proposal.
   
   Story Copyright © 1997 Reuters Limited. All rights reserved.
   
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