From comp.society Mon Apr 19 15:23:29 1993
Path: utcsri!utnut!cs.utexas.edu!usc!howland.reston.ans.net!paladin.american.edu!auvm!socicom
Message-ID: <9304170307.AB01517@csb1.nlm.nih.gov>
Date:         Fri, 16 Apr 1993 16:20:19 EST
From: David Sobel <dsobel@washofc.cpsr.org>
Organization: CPSR Civil Liberties and Computing Project
Subject:      White House Crypto Statemen
Approved: socicom@auvm.american.edu 04/17/93 20:40:15
Sender: socicom@auvm.american.edu
Newsgroups: comp.society
Lines: 271

                         THE WHITE HOUSE

                  Office of the Press Secretary

____________________________________________________

For Immediate Release                           April 16, 1993


                STATEMENT BY THE PRESS SECRETARY


The President today announced a new initiative that will bring
the Federal Government together with industry in a voluntary
program to improve the security and privacy of telephone
communications while meeting the legitimate needs of law
enforcement.

The initiative will involve the creation of new products to
accelerate the development and use of advanced and secure
telecommunications networks and wireless communications links.

For too long there has been little or no dialogue between our
private sector and the law enforcement community to resolve the
tension between economic vitality and the real challenges of
protecting Americans.  Rather than use technology to accommodate
the sometimes competing interests of economic growth, privacy and
law enforcement, previous policies have pitted government against
industry and the rights of privacy against law enforcement.

Sophisticated encryption technology has been used for years to
protect electronic funds transfer.  It is now being used to
protect electronic mail and computer files.  While encryption
technology can help Americans protect business secrets and the
unauthorized release of personal information, it also can be used
by terrorists, drug dealers, and other criminals.

A state-of-the-art microcircuit called the "Clipper Chip" has
been developed by government engineers.  The chip represents a
new approach to encryption technology.  It can be used in new,
relatively inexpensive encryption devices that can be attached to
an ordinary telephone.  It scrambles telephone communications
using an encryption algorithm that is more powerful than many in
commercial use today.

This new technology will help companies protect proprietary
information, protect the privacy of personal phone conversations
and prevent unauthorized release of data transmitted
electronically.  At the same time this technology preserves the
ability of federal, state and local law enforcement agencies to
intercept lawfully the phone conversations of criminals.

A "key-escrow" system will be established to ensure that the
"Clipper Chip" is used to protect the privacy of law-abiding
Americans.  Each device containing the chip will have two unique


                                2


"keys," numbers that will be needed by authorized government
agencies to decode messages encoded by the device.  When the
device is manufactured, the two keys will be deposited separately
in two "key-escrow" data bases that will be established by the
Attorney General.  Access to these keys will be limited to
government officials with legal authorization to conduct a
wiretap.

The "Clipper Chip" technology provides law enforcement with no
new authorities to access the content of the private
conversations of Americans.

To demonstrate the effectiveness of this new technology, the
Attorney General will soon purchase several thousand of the new
devices.  In addition, respected experts from outside the
government will be offered access to the confidential details of
the algorithm to assess its capabilities and publicly report
their findings.

The chip is an important step in addressing the problem of
encryption's dual-edge sword:  encryption helps to protect the
privacy of individuals and industry, but it also can shield
criminals and terrorists.  We need the "Clipper Chip" and other
approaches that can both provide law-abiding citizens with access
to the encryption they need and prevent criminals from using it
to hide their illegal activities.  In order to assess technology
trends and explore new approaches (like the key-escrow system),
the President has directed government agencies to develop a
comprehensive policy on encryption that accommodates:

     --   the privacy of our citizens, including the need to
          employ voice or data encryption for business purposes;

     --   the ability of authorized officials to access telephone
          calls and data, under proper court or other legal
          order, when necessary to protect our citizens;

     --   the effective and timely use of the most modern
          technology to build the National Information
          Infrastructure needed to promote economic growth and
          the competitiveness of American industry in the global
          marketplace; and

     --   the need of U.S. companies to manufacture and export
          high technology products.

The President has directed early and frequent consultations with
affected industries, the Congress and groups that advocate the
privacy rights of individuals as policy options are developed.



                                3

The Administration is committed to working with the private
sector to spur the development of a National Information
Infrastructure which will use new telecommunications and computer
technologies to give Americans unprecedented access to
information.  This infrastructure of high-speed networks
("information superhighways") will transmit video, images, HDTV
programming, and huge data files as easily as today's telephone
system transmits voice.

Since encryption technology will play an increasingly important
role in that infrastructure, the Federal Government must act
quickly to develop consistent, comprehensive policies regarding
its use.  The Administration is committed to policies that
protect all Americans' right to privacy while also protecting
them from those who break the law.

Further information is provided in an accompanying fact sheet.
The provisions of the President's directive to acquire the new
encryption technology are also available.

For additional details, call Mat Heyman, National Institute of
Standards and Technology, (301) 975-2758.

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

QUESTIONS AND ANSWERS ABOUT THE CLINTON ADMINISTRATION'S
TELECOMMUNICATIONS INITIATIVE

Q:   Does this approach expand the authority of government
     agencies to listen in on phone conversations?

A:   No.  "Clipper Chip" technology provides law enforcement with
     no new authorities to access the content of the private
     conversations of Americans.

Q:   Suppose a law enforcement agency is conducting a wiretap on
     a drug smuggling ring and intercepts a conversation
     encrypted using the device.  What would they have to do to
     decipher the message?

A:   They would have to obtain legal authorization, normally a
     court order, to do the wiretap in the first place.  They
     would then present documentation of this authorization to
     the two entities responsible for safeguarding the keys and
     obtain the keys for the device being used by the drug
     smugglers.  The key is split into two parts, which are
     stored separately in order to ensure the security of the key
     escrow system.

Q:   Who will run the key-escrow data banks?

A:   The two key-escrow data banks will be run by two independent
     entities.  At this point, the Department of Justice and the
     Administration have yet to determine which agencies will
     oversee the key-escrow data banks.

Q:   How strong is the security in the device?  How can I be sure
     how strong the security is?

A:   This system is more secure than many other voice encryption
     systems readily available today.  While the algorithm will
     remain classified to protect the security of the key escrow
     system, we are willing to invite an independent panel of
     cryptography experts to evaluate the algorithm to assure all
     potential users that there are no unrecognized
     vulnerabilities.

Q:   Whose decision was it to propose this product?

A:   The National Security Council, the Justice Department, the
     Commerce Department, and other key agencies were involved in
     this decision.  This approach has been endorsed by the
     President, the Vice President, and appropriate Cabinet
     officials.

Q:   Who was consulted?  The Congress?  Industry?

A:   We have on-going discussions with Congress and industry on
     encryption issues, and expect those discussions to intensify
     as we carry out our review of encryption policy.  We have
     briefed members of Congress and industry leaders on the
     decisions related to this initiative.

Q:   Will the government provide the hardware to manufacturers?

A:   The government designed and developed the key access
     encryption microcircuits, but it is not providing the
     microcircuits to product manufacturers.  Product
     manufacturers can acquire the microcircuits from the chip
     manufacturer that produces them.

Q:   Who provides the "Clipper Chip"?

A:   Mykotronx programs it at their facility in Torrance,
     California, and will sell the chip to encryption device
     manufacturers.  The programming function could be licensed
     to other vendors in the future.

Q:   How do I buy one of these encryption devices?

A:   We expect several manufacturers to consider incorporating
     the "Clipper Chip" into their devices.

Q:   If the Administration were unable to find a technological
     solution like the one proposed, would the Administration be
     willing to use legal remedies to restrict access to more
     powerful encryption devices?

A:   This is a fundamental policy question which will be
     considered during the broad policy review.  The key escrow
     mechanism will provide Americans with an encryption product
     that is more secure, more convenient, and less expensive
     than others readily available today, but it is just one
     piece of what must be the comprehensive approach to
     encryption technology, which the Administration is
     developing.

     The Administration is not saying, "since encryption
     threatens the public safety and effective law enforcement,
     we will prohibit it outright" (as some countries have
     effectively done); nor is the U.S. saying that "every
     American, as a matter of right, is entitled to an
     unbreakable commercial encryption product."  There is a
     false "tension" created in the assessment that this issue is
     an "either-or" proposition.  Rather, both concerns can be,
     and in fact are, harmoniously balanced through a reasoned,
     balanced approach such as is proposed with the "Clipper
     Chip" and similar encryption techniques.

Q:   What does this decision indicate about how the Clinton
     Administration's policy toward encryption will differ from
     that of the Bush Administration?

A:   It indicates that we understand the importance of encryption
     technology in telecommunications and computing and are
     committed to working with industry and public-interest
     groups to find innovative ways to protect Americans'
     privacy, help businesses to compete, and ensure that law
     enforcement agencies have the tools they need to fight crime
     and terrorism.

Q:   Will the devices be exportable?  Will other devices that use
     the government hardware?

A:   Voice encryption devices are subject to export control
     requirements.  Case-by-case review for each export is
     required to ensure appropriate use of these devices.  The
     same is true for other encryption devices.  One of the
     attractions of this technology is the protection it can give
     to U.S. companies operating at home and abroad.  With this
     in mind, we expect export licenses will be granted on a
     case-by-case basis for U.S. companies seeking to use these
     devices to secure their own communications abroad.  We plan
     to review the possibility of permitting wider exportability
     of these products.

--------------end-------------------------

From comp.society Mon Apr 19 15:23:47 1993
Path: utcsri!utnut!cs.utexas.edu!zaphod.mps.ohio-state.edu!howland.reston.ans.net!paladin.american.edu!auvm!socicom
Organization: The American University - University Computing Center
Date: Sat, 17 Apr 1993 20:45:37 EDT
From: <SOCICOM@auvm.american.edu>
Message-ID: <93107.204537SOCICOM@auvm.american.edu>
Newsgroups: comp.society
Subject:    Cryptography, Government, and Freedom
Approved: socicom@auvm.american.edu 04/17/93 20:49:16
Sender: socicom@auvm.american.edu
Lines: 74

[Moderator's note: the following offers one position in the ongoing
debate concerning individual liberty, privacy, and governmental interests
in the information age.]
--------------------------- Original message ---------------------------
~Date:         Fri, 16 Apr 1993 16:23:44 EST
~Reply-To: David Sobel <dsobel@washofc.cpsr.org>
~Sender: Computer Professionals for Social Responsibility
              <CPSR%GWUVM.BITNET@VTVM2.CC.VT.EDU>
~From: David Sobel <dsobel@washofc.cpsr.org>
Organization: CPSR Civil Liberties and Computing Project

  CPSR Crypto Statement
-----------------------------------------------
April 16, 1993
Washington, DC

               COMPUTER PROFESSIONALS CALL FOR PUBLIC
           DEBATE ON NEW GOVERNMENT ENCRYPTION INITIATIVE

        Computer Professionals for Social Responsibility (CPSR)
today called for the public disclosure of technical data
underlying the government's newly-announced "Public Encryption
Management" initiative.  The new cryptography scheme was
announced today by the White House and the National Institute
for Standards and Technology (NIST), which will implement the
technical specifications of the plan.  A NIST spokesman
acknowledged that the National Security Agency (NSA), the super-
secret military intelligence agency, had actually developed the
encryption technology around which the new initiative is built.

        According to NIST, the technical specifications and the
Presidential directive establishing the plan are classified.  To
open the initiative to public review and debate, CPSR today
filed a series of Freedom of Information Act (FOIA) requests
with key agencies, including NSA, NIST, the National Security
Council and the FBI for information relating to the encryption
plan.  The CPSR requests are in keeping with the spirit of the
Computer Security Act, which Congress passed in 1987 in order to
open the development of non-military computer security standards
to public scrutiny and to limit NSA's role in the creation of
such standards.

        CPSR previously has questioned the role of NSA in
developing the so-called "digital signature standard" (DSS), a
communications authentication technology that NIST proposed for
government-wide use in 1991.  After CPSR sued NIST in a FOIA
lawsuit last year, the civilian agency disclosed for the first
time that NSA had, in fact, developed that security standard.
NSA is due to file papers in federal court next week justifying
the classification of records concerning its creation of the
DSS.

        David Sobel, CPSR Legal Counsel, called the
administration's apparent commitment to the privacy of
electronic communications, as reflected in today's official
statement,  "a step in the right direction."  But he questioned
the propriety of NSA's role in the process and the apparent
secrecy that has thus far shielded the development process from
public scrutiny.  "At a time when we are moving towards the
development of a new information infrastructure, it is vital
that standards designed to protect personal privacy be
established openly and with full public participation.  It is
not appropriate for NSA -- an agency with a long tradition of
secrecy and opposition to effective civilian cryptography -- to
play a leading role in the development process."

        CPSR is a national public-interest alliance of computer
industry professionals dedicated to examining the impact of
technology on society.   CPSR has 21 chapters in the U.S. and
maintains offices in Palo Alto, California, Cambridge,
Massachusetts and Washington, DC.  For additional information on
CPSR, call (415) 322-3778 or e-mail <cpsr@csli.stanford.edu>.

======================================

From sci.crypt Wed Apr 21 12:51:49 1993
Path: utcsri!utnut!cs.utexas.edu!zaphod.mps.ohio-state.edu!howland.reston.ans.net!bogus.sura.net!darwin.sura.net!haven.umd.edu!uunet!think.com!enterpoop.mit.edu!senator-bedfellow.mit.edu!news.mit.edu!marc
From: marc@mit.edu (Marc Horowitz N1NZU)
Newsgroups: sci.crypt
Subject: The source of that announcement
Date: 18 Apr 1993 01:19:38 GMT
Organization: Massachusetts Institute of Technology
Lines: 38
Distribution: world
Message-ID: <MARC.93Apr17211937@oliver.mit.edu>
NNTP-Posting-Host: oliver.mit.edu

The message from the NIST about the clipper chip comes from the
following address:

	clipper@csrc.ncsl.nist.gov (Clipper Chip Announcement)

Just who is that, I asked myself, or rather, I asked the computer.

    % telnet csrc.ncsl.nist.gov 25
    Trying...
    Connected to csrc.ncsl.nist.gov.
    Escape character is '^]'.
    220 first.org sendmail 4.1/NIST ready at Sat, 17 Apr 93 20:42:56 EDT
    expn clipper
    250-<csspab@mail-gw.ncsl.nist.gov>
    250-<denning@cs.georgetown.edu>
    250-<hoffman@seas.gwu.edu>
    250-<mkapor@eff.org>
    250-<rotenberg@cpsr.org>
    250-<rivest@mit.edu>
    250-<mhellman@stanford.edu>
    250-<alanrp@aol.com>
    250-<dparker@sri.com>
    250-<jim@rsa.com>
    250-<branstad@tis.com>
    250 <mgrsplus@csmes.ncsl.nist.gov>
    quit
    221 first.org closing connection
    Connection closed.

Well, isn't that interesting.  Dorothy Denning, Mitch Kapor, Marc
Rotenberg, Ron Rivest, Jim Bidzos, and others.  The Government, RSA,
TIS, CPSR, and the EFF are all represented.  I don't suppose anybody
within any of these organizations would care to comment?  Or is this
just the White House's idea of a cruel joke on these peoples' inboxes?

		Marc
--
Marc Horowitz N1NZU <marc@mit.edu>				617-253-7788

From sci.crypt Wed Apr 21 12:52:27 1993
Path: utcsri!utnut!cs.utexas.edu!uunet!enterpoop.mit.edu!senator-bedfellow.mit.edu!athena.mit.edu!wesommer
From: wesommer@mit.edu (Bill Sommerfeld)
Newsgroups: sci.crypt
Subject: Re: The source of that announcement
Date: 18 Apr 1993 03:15:36 GMT
Organization: Massachusetts Institute of Technology
Lines: 112
Distribution: world
Message-ID: <WESOMMER.93Apr17231535@bill-the-cat.mit.edu>
References: <MARC.93Apr17211937@oliver.mit.edu>
NNTP-Posting-Host: bill-the-cat.mit.edu
In-reply-to: marc@mit.edu's message of 18 Apr 1993 01:19:38 GMT

       % telnet csrc.ncsl.nist.gov 25
       Trying...
       Connected to csrc.ncsl.nist.gov.
       Escape character is '^]'.
       220 first.org sendmail 4.1/NIST ready at Sat, 17 Apr 93 20:42:56 EDT
       expn clipper
       250-<csspab@mail-gw.ncsl.nist.gov>
       250-<denning@cs.georgetown.edu>
       250-<hoffman@seas.gwu.edu>
       250-<mkapor@eff.org>
       250-<rotenberg@cpsr.org>
       250-<rivest@mit.edu>
       250-<mhellman@stanford.edu>
       250-<alanrp@aol.com>
       250-<dparker@sri.com>
       250-<jim@rsa.com>
       250-<branstad@tis.com>
       250 <mgrsplus@csmes.ncsl.nist.gov>
       quit
       221 first.org closing connection
       Connection closed.

Note also:

% telnet csmes.ncsl.nist.gov 25
Trying 129.6.54.2...
Connected to csmes.ncsl.nist.gov.
Escape character is '^]'.
220 csmes.ncsl.nist.gov sendmail 4.1/NIST(rbj/dougm) ready at Sat, 17 Apr 93 23:08:58 EDT
expn mgrsplus
250-<mcnulty@ecf.ncsl.nist.gov>
250-Irene Gilbert <igilbert>
250-Dennis Branstad <branstad>
250-Robert Rosenthal <rmr>
250-Gene Troy <troy>
250-<smid@st1.ncsl.nist.gov>
250-Dennis Steinauer <dds>
250 <katzke@st1.ncsl.nist.gov>

telnet mail-gw.ncsl.nist.gov 25
Trying 129.6.48.199...
Connected to mail-gw.ncsl.nist.gov.
Escape character is '^]'.
220 mail-gw.ncsl.nist.gov sendmail 4.1/rbj/jck-3 ready at Sat, 17 Apr 93 23:06:50 EDT
expn csspab
250-<burrows@ecf>
250-<mcnulty@ecf>
250-Bill Colvin <colvin>
250-<Gangemi@dockmaster.ncsc.mil>
250-John Kuyers <kuyers>
250-<slambert@cgin.cto.citicorp.com>
250-<lipner@mitre.org>
250-<gallagher@dockmaster.ncsc.mil>
250-<cindy_rand@postmaster.dot.gov>
250-<walker@tis.com>
250-<willis@rand.org>
250-Eddie Zeitler <zeitler>
250-Cris Castro <castro>
250 <whitehurst@vnet.ibm.com>

% telnet st1.ncsl.nist.gov 25
Trying 129.6.54.91...
Connected to st1.ncsl.nist.gov.
Escape character is '^]'.
220 st1.ncsl.nist.gov SEndMaIl 4.1/NBS-rbj.11 rEadY At Sat, 17 Apr 93 23:13:43 EDT
expn smid
250 Miles Smid <smid>
expn katzke
250 Stuart Katzke <katzke>
quit
221 st1.ncsl.nist.gov closing connection
Connection closed by foreign host.

% telnet ecf.ncsl.nist.gov 25
Trying 129.6.48.2...
Connected to ecf.ncsl.nist.gov.
Escape character is '^]'.
220 ECF.NCSL.NIST.GOV TGV/MultiNet SMTP service ready.
expn burrows
250 Burrows, James <burrows>
expn mcnulty
250 McNulty, Lynn <mcnulty>
quit
221 ECF.NCSL.NIST.GOV TGV/MultiNet SMTP service complete.

% whois -h rs.internic.net first.org
National Institute of Standards and Technology (FIRST-DOM)
   225/A216
   	 NIST
   	 GAITHERSBURG, MD 20899

   Domain Name: FIRST.ORG

   Administrative Contact:
      Wack, John P.  (JPW18)  WACK@ENH.NIST.GOV
      (301) 975-3411 (FTS) 879-3411
   Technical Contact, Zone Contact:
      Hunt, Craig W.  (CWH3)  Hunt@ENH.NIST.GOV
      (301) 975-3827 (FTS) 879-3827

   Record last updated on 17-Dec-91.

   Domain servers in listed order:

   DOVE.NIST.GOV		129.6.16.2
   AMES.ARC.NASA.GOV		128.102.18.3


The InterNIC Registration Services Host ONLY contains Internet Information
(Networks, ASN's, Domains, and POC's).
Please use the whois server at nic.ddn.mil for MILNET Information.
--

From sci.crypt Wed Apr 21 12:55:47 1993
Newsgroups: sci.crypt,alt.privacy.clipper
Path: utcsri!utnut!cs.utexas.edu!wupost!uwm.edu!linac!att!att!allegra!ulysses!ulysses!smb
From: smb@research.att.com (Steven Bellovin)
Subject: Clipper chip -- technical details
Message-ID: <1993Apr18.200737.14815@ulysses.att.com>
Date: Sun, 18 Apr 1993 20:07:37 GMT
Organization: AT&T Bell Laboratories
Lines: 121

I received the following two notes from Martin Hellman with details
on how Clipper will work.  They are posted with his permission.  The
implications of some details are fascinating.

-------
~Date: Sat, 17 Apr 93 23:05:23 PDT
~From: "Martin Hellman" <hellman@isl.stanford.edu>
To: (a long list of recipients)
~Subject: Clipper Chip


Most of you have seen the announcement in Friday's NY Times,
etc. about NIST (National Institute of Standards & Technology)
announcing the "Clipper Chip" crypto device. Several messges
on the net have asked for more technical details, and some have
been laboring under understandable misunderstandings given
the lack of details in the news  articles. So here to help out
is your friendly NSA link: me. I was somewhat surprised Friday
to get a call from the Agency which supplied many of the missing
details. I was told the info was public, so here it is (the cc of this
to Dennis Branstad at NIST is mostly as a double check on my
facts since I assume he is aware of all this; please let me know
if I have anything wrong):

The Clipper Chip will have a secret crypto algorithm embedded in 
Silicon. Each chip will have two secret, 80-bit keys. One will be the 
same for all chips (ie a system-wide key) and the other will be unit 
specific. I don't know what NIST and NSA will call them, but I will 
call them the system key SK and unit key UK in this message. 
The IC will be designed to be extremely difficult to reverse so 
that the system key can be kept secret. (Aside: It is clear that 
they also want to keep the algorithm secret and, in my opinion, 
it may be as much for that as this stated purpose.) The unit key 
will be generated as the XOR of two 80-bit random numbers K1 
and K2 (UK=K1+K2) which will be kept by the two escrow 
authorities. Who these escrow authorities will be is still to be 
decided by the Attorney General, but it was stressed to me that 
they will NOT be NSA or law enforcement agencies, that they 
must be parties acceptable to the users of the system as unbiased. 
When a law enforcement agency gets a court order, they will 
present it to these two escrow authorities and receive K1 and 
K2, thereby allowing access to the unit key UK.

In addition to the system key, each user will get to choose his 
or her own key and change it as often as desired. Call this key 
plain old K. When a message is to be sent it will first be 
encrypted under K, then K will be encrypted under the unit key UK, 
and the serial number of the unit added to produce a three part 
message which will then be encrypted under the system key SK 
producing

     E{ E[M; K], E[K; UK], serial number;  SK}

When a court order obtains K1 and K2, and thence K, the law 
enforcement agency will use SK to decrypt all information 
flowing on the suspected link [Aside: It is my guess that 
they may do this constantly on all links, with or without a 
court order, since it is almost impossible to tell which links 
over which a message will flow.] This gives the agency access to 

     E[M; K], E[K; UK], serial number

in the above message. They then check the serial number 
of the unit and see if it is on the "watch list" for which they 
have a court order. If so, they will decrypt E[K; UK] to obtain K, 
and then decrypt E[M; K] to obtain M.

I am still in the process of assessing this scheme, so please do 
not take the above as any kind of endorsement of the proposed 
scheme. All I am trying to do is help all of us assess the scheme 
more knowledgably. But I will say that the need for just one court 
order worries me. I would feel more comfortable (though not 
necessarily comfortable!) if two separate court orders were 
needed, one per escrow authority. While no explanation is
needed, the following story adds some color: In researching
some ideas that Silvio Micali and I have been kicking around,
I spoke with Gerald Gunther, the constitutional law expert
here at Stanford and he related the following story: When
Edward Levi became Pres. Ford's attorney general (right
after Watergate), he was visited by an FBI agent asking
for "the wiretap authorizations." When Levy asked for
the details so he could review the cases as required by
law, the agent told him that his predecessors just turned
over 40-50 blank, signed forms every time. Levi did not
comply and changed the system, but the lesson is clear: 
No single person or authority should have the power to
authorize wiretaps (or worse yet, divulging of personal
keys). Sometimes he or she will be an Edward Levi
and sometimes a John Mitchell.

Martin Hellman

----

~Date: Sun, 18 Apr 93 11:41:42 PDT
~From: "Martin Hellman" <hellman@isl.stanford.edu>
To: smb@research.att.com
~Subject: Re: Clipper Chip

It is fine to post my previous message to sci.crypt 
if you also post this message with it in which:

1. I ask recipients to be sparse in their requesting further info 
from me or asking for comments on specific questions. By
this posting I apologize for any messages I am unable to
respond to. (I already spend too much time answering too much
e-mail and am particularly overloaded this week with other
responsibilities.) 

2. I note a probably correction sent to me by Dorothy Denning.
She met with the person from NSA that
I talked with by phone, so her understanding is likely to
better than mine on this point: Where I said the transmitted
info is  E{ E[M; K], E[K; UK], serial number;  SK}
she says the message is not double encrypted. The system
key (or family key as she was told it is called) only encrypts
the serial number or the serial number and the encrypted
unit key. This is not a major difference, but I thought it
should be mentioned and thank her for bringing it to
my attention. It makes more sense since it cuts down
on encryption computation overhead.

From sci.crypt Wed Apr 21 13:03:01 1993
Xref: utcsri sci.crypt:15271 alt.privacy.clipper:3
Newsgroups: sci.crypt,alt.privacy.clipper
Path: utcsri!utnut!cs.utexas.edu!wupost!uwm.edu!linac!att!att!allegra!ulysses!ulysses!smb
From: smb@research.att.com (Steven Bellovin)
Subject: More technical details
Message-ID: <1993Apr19.134346.2620@ulysses.att.com>
Date: Mon, 19 Apr 1993 13:43:46 GMT
Organization: AT&T Bell Laboratories
Lines: 116

Here are some corrections and additions to Hellman's note, courtesy of
Dorothy Denning.  Again, this is reposted with permission.

Two requests -- first, note the roles of S1 and S2.  It appears to me
and others that anyone who knows those values can construct the unit
key.  And the nature of the generation process for K1 and K2 is such
that neither can be produced alone.  Thus, the scheme cannot be
implemented such that one repository generates the first half-key, and
another generates the second.  *That* is ominous.

Second -- these postings are not revealed scripture, nor are they
carefully-crafted spook postings.  Don't attempt to draw out hidden
meanings (as opposed to, say, the official announcements of Clipper).
Leave Denning out of this; given Hellman's record of opposition to DES,
which goes back before some folks on this newsgroup knew how to read, I
don't think you can impugn his integrity.

Oh yeah -- the folks who invented Clipper aren't stupid.  If you think
something doesn't make sense, it's almost certainly because you don't
understand their goals.

		--Steve Bellovin

-----

~Date: Sun, 18 Apr 93 07:56:39 EDT
~From: denning@cs.georgetown.edu (Dorothy Denning)
~Subject: Re:  Clipper Chip
To: (a long list of folks)

I was also briefed by the NSA and FBI, so let me add a few comments to
Marty's message:

        The Clipper Chip will have a secret crypto algorithm embedded in 

The algorithm operates on 64-bit blocks (like DES) and the chip supports
all 4 DES modes of operation.  The algorithm uses 32 rounds of scrambling
compared with 16 in DES.

	In addition to the system key, each user will get to choose his 
	or her own key and change it as often as desired. Call this key 
	plain old K. When a message is to be sent it will first be 

K is the session key shared by the sender and receiver.  Any method
(e.g., public key) can be used to establish the session key.  In the
AT&T telephone security devices, which will have the new chip, the key
is negotiated using a public-key protocol.
 
	encrypted under K, then K will be encrypted under the unit key UK, 
	and the serial number of the unit added to produce a three part 
	message which will then be encrypted under the system key SK 
	producing

	     E{ E[M; K], E[K; UK], serial number;  SK}

My understanding is that E[M; K] is not encrypted under SK (called the
"family key") and that the decrypt key corresponding to SK is held by
law enforcement.  Does anyone have first hand knowledge on this?  I
will also check it out, but this is 7am Sunday so I did not want to wait.

        The unit key 
	will be generated as the XOR of two 80-bit random numbers K1 
	and K2 (UK=K1+K2) which will be kept by the two escrow 

The unit key, also called the "chip key," is generated from the
serial number N as follows.  Let N1, N2, and N3 be 64 bit blocks
derived from N, and let S1 and S2 be two 80-bit seeds used as keys.
Compute the 64-bit block 

        R1 = E[D[E[N1; S1]; S2]; S1] 

(Note that this is like using the DES in triple encryption mode with
two keys.)  Similarly compute blocks R2 and R3 starting with N2 and N3.
(I'm unlear about whether the keys S1 and S2 change.  The fact that
they're called seeds suggests they might.)  Then R1, R2, and R3 are
concatenated together giving 192 bits.  The first 80 bits  form K1 and
the next 80 bits form K2.  The remaining bits are discarded.

	authorities. Who these escrow authorities will be is still to be 
	decided by the Attorney General, but it was stressed to me that 
	they will NOT be NSA or law enforcement agencies, that they 
	must be parties acceptable to the users of the system as unbiased. 

Marty is right on this and the FBI has asked me for suggestions.
Please pass them to me along with your reasons.  In addition to Marty's
criteria, I would add that the agencies must have an established record
of being able to safeguard highly sensitive information.  Some suggestions
I've received so far include SRI, Rand, Mitre, the national labs (Sandia,
LANL, Los Alamos), Treasury, GAO.

	When a court order obtains K1 and K2, and thence K, the law 
	enforcement agency will use SK to decrypt all information 
	flowing on the suspected link [Aside: It is my guess that 
	they may do this constantly on all links, with or without a 
	court order, since it is almost impossible to tell which links 
	over which a message will flow.] 

My understanding is that there will be only one decode box and that it
will be operated by the FBI.  The service provider will isolate the
communications stream and pass it to the FBI where it will pass through
the decode box, which will have been keyed with K.

	for "the wiretap authorizations." When Levy asked for
	the details so he could review the cases as required by
	law, the agent told him that his predecessors just turned
	over 40-50 blank, signed forms every time. Levi did not
        comply and changed the system, but the lesson is clear: 
        No single person or authority should have the power to
        authorize wiretaps

No single person does, at least for FBI taps.  After completing a mound
of paperwork, an agent must get the approval of several people on a chain
that includes FBI legal counsel before the request is even taken to the
Attorney General for final approval.

Dorothy Denning

From sci.crypt Wed Apr 21 13:12:48 1993
Xref: utcsri sci.crypt:15287 alt.privacy.clipper:5
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From: caronni@nessie.cs.id.ethz.ch (Germano Caronni)
Subject: Re: More technical details
Message-ID: <1993Apr19.162936.7517@bernina.ethz.ch>
Sender: news@bernina.ethz.ch (USENET News System)
Organization: Swiss Federal Institute of Technology (ETH), Zurich, CH
References: <1993Apr19.134346.2620@ulysses.att.com>
Date: Mon, 19 Apr 1993 16:29:36 GMT
Lines: 107

In article <1993Apr19.134346.2620@ulysses.att.com> smb@research.att.com (Steven Bellovin) writes:
>Here are some corrections and additions to Hellman's note, courtesy of
>Dorothy Denning.  Again, this is reposted with permission.
>
>Two requests -- first, note the roles of S1 and S2.  It appears to me
>and others that anyone who knows those values can construct the unit
>key.  And the nature of the generation process for K1 and K2 is such
>that neither can be produced alone.  Thus, the scheme cannot be
>implemented such that one repository generates the first half-key, and
>another generates the second.  *That* is ominous.
>
>Second -- these postings are not revealed scripture, nor are they
>carefully-crafted spook postings.  Don't attempt to draw out hidden
>meanings (as opposed to, say, the official announcements of Clipper).
>Leave Denning out of this; given Hellman's record of opposition to DES,
>which goes back before some folks on this newsgroup knew how to read, I
>don't think you can impugn his integrity.
>
>Oh yeah -- the folks who invented Clipper aren't stupid.  If you think
>something doesn't make sense, it's almost certainly because you don't
>understand their goals.
>

This is an addition (posted with permission) to some tech. details of
cliper. They enligthen ??? the use of S1 and S2 for keygeneration.
-------------------------------------------
~Date: Mon, 19 Apr 93 08:51:57 EDT
~From: denning@cs.cosc.georgetown.edu (Dorothy Denning)
~Subject: Re:  Clipper Chip

I just had another conversation with NSA to clarify some of the features
of Clipper.  Please feel free to distribute this and my other messages
on Clipper.

The name of the encryption algorithm is "Skipjack."

Martin Hellman had written

                and the serial number of the unit added to produce a three part
                message which will then be encrypted under the system key SK
                producing

                     E{ E[M; K], E[K; UK], serial number;  SK}

To which I responded:

        My understanding is that E[M; K] is not encrypted under SK (called the
        "family key") and that the decrypt key corresponding to SK is held by
        law enforcement.  Does anyone have first hand knowledge on this?

I was correct in that E[M; K] is not encrypted under SK.  However, Skipjack
being a single-key system, there is, of course, not a separate decrypt key
for the family key SK.

        The unit key, also called the "chip key," is generated from the
        serial number N as follows.  Let N1, N2, and N3 be 64 bit blocks
        derived from N, and let S1 and S2 be two 80-bit seeds used as keys.
        Compute the 64-bit block

                R1 = E[D[E[N1; S1]; S2]; S1]

        (Note that this is like using the DES in triple encryption mode with
        two keys.)  Similarly compute blocks R2 and R3 starting with N2 and N3.
        (I'm unlear about whether the keys S1 and S2 change.  The fact that
        they're called seeds suggests they might.)  Then R1, R2, and R3 are
        concatenated together giving 192 bits.  The first 80 bits  form K1 and
        the next 80 bits form K2.  The remaining bits are discarded.

The seeds S1 and S2 do not change.   The whole process is performed on
a laptop computer, and S1 and S2 are supplied by two independent people
so that no one person knows both.  The same S1 and S2 are used during
an entire "programming session" to generate keys for a stream of serial
numbers.  Everything is discarded at the end (the computer could be
thrown out if desired).

The serial number is 30 bits and the values N1, N2, and N3 are formed
by padding the serial number with fixed 34-bit blocks (separate padding
for each value).

The resulting keys K1 and K2 are output onto separate floppy disks, paired
up with their serial number.  Each pair is stored in a separate file.  The
floppy disks are taken away by two separate people on behalf of the two
escrow agencies.

Dorothy Denning
denning@cs.georgetown.edu

--------------------------------------------------------
I am sure more technical detail will be known when time goes by.
Please remark, that in posting this, I do not automatically agree
with it's contents and implications. So don't swamp my mailbox :-)

I just think this is an valuable addition to the less than technical
discussion that is rising here. And, no, I don't mind if you call
S1 and S2 'backdoor', as I could imagine the key-generation process
working without these seeds and the dependency of K1,K2 from the
Serial-Number.


Friendly greetings,

	Germano Caronni
-- 
Instruments register only through things they're designed to register.
Space still contains infinite unknowns.
                                                              PGP-Key-ID:341027
Germano Caronni caronni@nessie.cs.id.ethz.ch   FD560CCF586F3DA747EA3C94DD01720F

From sci.crypt Wed Apr 21 13:17:08 1993
Path: utcsri!utnut!cs.utexas.edu!zaphod.mps.ohio-state.edu!darwin.sura.net!guvax.acc.georgetown.edu!denning
From: denning@guvax.acc.georgetown.edu
Newsgroups: sci.crypt
Subject: THE CLIPPER CHIP: A TECHNICAL SUMMARY
Message-ID: <1993Apr19.182327.3420@guvax.acc.georgetown.edu>
Date: 19 Apr 93 18:23:27 -0400
Distribution: world
Organization: Georgetown University
Lines: 139

The following document summarizes the Clipper Chip, how it is used,
how programming of the chip is coupled to key generation and the
escrow process, and how law enforcement decrypts communications.
Since there has been some speculation on this news group about my
own involvement in this project, I'd like to add that I was not in
any way involved.  I found out about it when the FBI briefed me on
Thursday evening, April 15.  Since then I have spent considerable
time talking with the NSA and FBI to learn more about this, and I
attended the NIST briefing at the Department of Commerce on April 16.  
The document below is the result of that effort. 

Dorothy Denning
---------------

                     THE CLIPPER CHIP: A TECHNICAL SUMMARY

                               Dorothy Denning

                                April 19, 1993


INTRODUCTION

On April 16, the President announced a new initiative that will bring
together the Federal Government and industry in a voluntary program
to provide secure communications while meeting the legitimate needs of
law enforcement.  At the heart of the plan is a new tamper-proof encryption
chip called the "Clipper Chip" together with a split-key approach to
escrowing keys.  Two escrow agencies are used, and the key parts from
both are needed to reconstruct a key.


CHIP STRUCTURE

The Clipper Chip contains a classified 64-bit block encryption
algorithm called "Skipjack."  The algorithm uses 80 bit keys (compared
with 56 for the DES) and has 32 rounds of scrambling (compared with 16
for the DES).  It supports all 4 DES modes of operation.  Throughput is
16 Mbits a second.

Each chip includes the following components:

   the Skipjack encryption algorithm
   F, an 80-bit family key that is common to all chips
   N, a 30-bit serial number
   U, an 80-bit secret key that unlocks all messages encrypted with the chip


ENCRYPTING WITH THE CHIP

To see how the chip is used, imagine that it is embedded in the AT&T
telephone security device (as it will be).  Suppose I call someone and
we both have such a device.  After pushing a button to start a secure
conversation, my security device will negotiate a session key K with
the device at the other end (in general, any method of key exchange can
be used).  The key K and message stream M (i.e., digitized voice) are then
fed into the Clipper Chip to produce two values:

   E[M; K], the encrypted message stream, and 
   E[E[K; U] + N; F], a law enforcement block.  

The law enforcement block thus contains the session key K encrypted
under the unit key U concatenated with the serial number N, all
encrypted under the family key F.


CHIP PROGRAMMING AND ESCROW

All Clipper Chips are programmed inside a SCIF (secure computer
information facility), which is essentially a vault.  The SCIF contains
a laptop computer and equipment to program the chips.  About 300 chips
are programmed during a single session.  The SCIF is located at
Mikotronx.

At the beginning of a session, a trusted agent from each of the two key
escrow agencies enters the vault.  Agent 1 enters an 80-bit value S1
into the laptop and agent 2 enters an 80-bit value S2. These values
serve as seeds to generate keys for a sequence of serial numbers.

To generate the unit key for a serial number N, the 30-bit value N is
first padded with a fixed 34-bit block to produce a 64-bit block N1.
S1 and S2 are then used as keys to triple-encrypt N1, producing a
64-bit block R1:

        R1 = E[D[E[N1; S1]; S2]; S1] .

Similarly, N is padded with two other 34-bit blocks to produce N2 and
N3, and two additional 64-bit blocks R2 and R3 are computed:  

        R2 = E[D[E[N2; S1]; S2]; S1] 
        R3 = E[D[E[N3; S1]; S2]; S1] .

R1, R2, and R3 are then concatenated together, giving 192 bits. The
first 80 bits are assigned to U1 and the second 80 bits to U2.  The
rest are discarded.  The unit key U is the XOR of U1 and U2.  U1 and U2
are the key parts that are separately escrowed with the two escrow
agencies.

As a sequence of values for U1, U2, and U are generated, they are
written onto three separate floppy disks.  The first disk contains a
file for each serial number that contains the corresponding key part
U1.  The second disk is similar but contains the U2 values.  The third
disk contains the unit keys U.  Agent 1 takes the first disk and agent
2 takes the second disk.  The third disk is used to program the chips.
After the chips are programmed, all information is discarded from the
vault and the agents leave.  The laptop may be destroyed for additional
assurance that no information is left behind.
 
The protocol may be changed slightly so that four people are in the
room instead of two.  The first two would provide the seeds S1 and S2,
and the second two (the escrow agents) would take the disks back to
the escrow agencies.

The escrow agencies have as yet to be determined, but they will not
be the NSA, CIA, FBI, or any other law enforcement agency.  One or
both may be independent from the government.


LAW ENFORCEMENT USE

When law enforcement has been authorized to tap an encrypted line, they
will first take the warrant to the service provider in order to get
access to the communications line.  Let us assume that the tap is in
place and that they have determined that the line is encrypted with
Clipper.  They will first decrypt the law enforcement block with the
family key F.  This gives them E[K; U] + N.  They will then take a
warrant identifying the chip serial number N to each of the key escrow
agents and get back U1 and U2.  U1 and U2 are XORed together to produce
the unit key U, and E[K; U] is decrypted to get the session key K.
Finally the message stream is decrypted.  All this will be accomplished
through a special black box decoder operated by the FBI.


ACKNOWLEDGMENT AND DISTRIBUTION NOTICE.  All information is based on
information provided by NSA, NIST, and the FBI.  Permission to
distribute this document is granted.


    

From sci.crypt Wed Apr 21 13:20:47 1993
Path: utcsri!utnut!cs.utexas.edu!uunet!pipex!demon!gtoal.com!gtoal
Newsgroups: sci.crypt
From: gtoal@gtoal.com (Graham Toal)
Subject: Re: Facinating facts: 30 bit serial number, possibly fixed S1 and S2
Date: Mon, 19 Apr 1993 15:25:20 +0000
Message-ID: <9304191525.AA14273@pizzabox.demon.co.uk>
Sender: usenet@demon.co.uk
Lines: 20

	From: pmetzger@snark.shearson.com (Perry E. Metzger)

	denning@guvax.acc.georgetown.edu (Vidkun Abraham Lauritz Quisling) writes:

	   Each chip includes the following components:

	      the Skipjack encryption algorithm
	      F, an 80-bit family key that is common to all chips
	      N, a 30-bit serial number
	      U, an 80-bit secret key that unlocks all messages encrypted with the chip

	Hmmm. A thirty bit serial number. And, we are told, the unit key U is
	derived deterministically from this serial number. That means that
	there are only one billion possible unit keys.

Oh hell, it's *much* worse than that.  You think they'll ever make
more than a million of them?  Serial numbers aren't handed out at random
you know, they start at 1 and work up...  Call it a 20 bit space maybe.

G

From sci.crypt Wed Apr 21 13:22:13 1993
Newsgroups: sci.crypt
Path: utcsri!utnut!cs.utexas.edu!sdd.hp.com!usc!howland.reston.ans.net!bogus.sura.net!udel!news.intercon.com!psinntp!shearson.com!newshost!pmetzger
From: pmetzger@snark.shearson.com (Perry E. Metzger)
Subject: Facinating facts: 30 bit serial number, possibly fixed S1 and S2
In-Reply-To: denning@guvax.acc.georgetown.edu's message of 19 Apr 93 18:23:27 -0400
Message-ID: <PMETZGER.93Apr20065402@snark.shearson.com>
Sender: news@shearson.com (News)
Reply-To: pmetzger@lehman.com
Organization: Lehman Brothers
References: <1993Apr19.182327.3420@guvax.acc.georgetown.edu>
Date: Tue, 20 Apr 1993 11:54:02 GMT
Lines: 102


denning@guvax.acc.georgetown.edu (Vidkun Abraham Lauritz Quisling) writes:

   Each chip includes the following components:

      the Skipjack encryption algorithm
      F, an 80-bit family key that is common to all chips
      N, a 30-bit serial number
      U, an 80-bit secret key that unlocks all messages encrypted with the chip

Hmmm. A thirty bit serial number. And, we are told, the unit key U is
derived deterministically from this serial number. That means that
there are only one billion possible unit keys.

   To generate the unit key for a serial number N, the 30-bit value N is
   first padded with a fixed 34-bit block to produce a 64-bit block N1.
   S1 and S2 are then used as keys to triple-encrypt N1, producing a
   64-bit block R1:

	   R1 = E[D[E[N1; S1]; S2]; S1] .

   Similarly, N is padded with two other 34-bit blocks to produce N2 and
   N3, and two additional 64-bit blocks R2 and R3 are computed:  

	   R2 = E[D[E[N2; S1]; S2]; S1] 
	   R3 = E[D[E[N3; S1]; S2]; S1] .

   R1, R2, and R3 are then concatenated together, giving 192 bits. The
   first 80 bits are assigned to U1 and the second 80 bits to U2.  The
   rest are discarded.  The unit key U is the XOR of U1 and U2.  U1 and U2
   are the key parts that are separately escrowed with the two escrow
   agencies.

Hmmm. We must assume that generating the unit key U from the serial
number N rather than generating it from a randomly selected U1 and U2
is an intentional way of assuring a "fail safe" for the government --
U is completedly determined given S1, S2 and N. If S1 and S2 do not
change they constitute effective "master keys" (along with F), the
theft of which (or the possession of which by various authorities)
completely obviates the security of the system. However, more
interestingly, we know, for a fact that if S1 and S2 are fixed no
matter what the keyspace for U is no more than 2^30. Why not pick U1
and U2 at random? Why this interesting restriction of they key space
if it NOT to provide an additional back door?

I find it disturbing that at the very best my security is dependant on
approximately 30 bytes worth of information that could be written on
the back of a napkin.

Even if S1 and S2 change periodically, the rationale behind this
restriction in the size of the keyspace seems strange if one is
assuming that the goal is security -- and makes perfect sense if the
goal is an illusion of security.

If S1 and S2 do not change, even if they remain secret I wonder if
they can somehow be back-derived given enough unit key/serial number
pairs. We are assured that this cannot happen -- but no one
understands how Skipjack works outside of government officials and,
soon, foreign intelligence services that gain the information via
espionage. Presumably we will eventually have the information as well
-- reverse engineering gets more and more advanced every year -- but
by the time we know it may be too late.

   As a sequence of values for U1, U2, and U are generated, they are
   written onto three separate floppy disks.  The first disk contains a
   file for each serial number that contains the corresponding key part
   U1.  The second disk is similar but contains the U2 values.  The third
   disk contains the unit keys U.  Agent 1 takes the first disk and agent
   2 takes the second disk.  The third disk is used to program the chips.
   After the chips are programmed, all information is discarded from the
   vault and the agents leave.  The laptop may be destroyed for additional
   assurance that no information is left behind.

None of this makes me feel the least bit secure. The silly notion of
"destroying the laptop" appears to be yet another bizarre distraction.
We all know that you can't read data from DRAM that has been turned
off for more than a few moments. On the other hand, what we don't know
is why there is a need to generate the unit keys from S1 and S2 in the
first place other than to weaken the system. We don't know if the
agents in question would resist a million in cash a piece for their
information -- its probably worth hundreds of million, so you can make
the bribe arbitrarily hard to resist. And to tell you the truth, doing
this in a "vault" rather than in Joe Random Tempest-shielded Room
with a laptop computer seems like melodrama designed to make
high-school dropouts from Peoria impressed -- but it does very little
for most of the rest of us.

   The protocol may be changed slightly so that four people are in the
   room instead of two.  The first two would provide the seeds S1 and S2,
   and the second two (the escrow agents) would take the disks back to
   the escrow agencies.

What would this provide? Lets say the escrow agencies are the ACLU and
the NRA and their agents personally take back the disks and are always
honest. Who cares? The NSA must be laughing out loud, because they
have the algorithm to regenerate U given N and likely don't need to
steal they keys as they effectively already have them.

--
Perry Metzger		pmetzger@shearson.com
--
Laissez faire, laissez passer. Le monde va de lui meme.

From alt.security.pgp Wed Apr 21 17:48:48 1993
Path: utcsri!utnut!torn!howland.reston.ans.net!bogus.sura.net!darwin.sura.net!haven.umd.edu!uunet!pipex!uknet!acorn!eoe!ahaley
From: ahaley@eoe.co.uk (Andrew Haley)
Newsgroups: alt.security.pgp
Subject: Re: PGP, the end is near?
Message-ID: <1674@eouk5.eoe.co.uk>
Date: 21 Apr 93 16:36:42 GMT
References: <bontchev.735296403@fbihh>
Organization: EO Europe Limited, Cambridge, UK
Lines: 97
X-Newsreader: TIN [version 1.1 PL8]

Vesselin Bontchev (bontchev@fbihh.informatik.uni-hamburg.de) wrote:
: uri@watson.ibm.com (Uri Blumenthal) writes:

: > Well, it's certainly well known HOW the S-boxes were designed.
: > It was in the open from the beginning. What's still hidden is 
: > WHY they were designed this way...

: Well, maybe that's a quirk in my English, but I meant that it is known
: why probably they have been designed this way (to withstand
: differential cryptanalysis), but it is not known how they have been
: designed (i.e., what criteria exactly have been used).

In the interests of accurate information, I repeat the following,
which has been transmitted on the net several times before.  This is
about the best information you will get about the design of the DES:

: From: kempf@rhrk.uni-kl.de (Markus Kempf [Physik])
: Newsgroups: sci.crypt
: Subject: DES designed to withstand differential cryptanalysis
: Summary: It was known in 1974
: Keywords: DES, cryptanalysis
: Message-ID: <1992Mar23.171311.4134@rhrk.uni-kl.de>
: Date: 23 Mar 92 17:13:11 GMT
: Organization: University of Kaiserslautern, Germany
: Lines: 69
: 
: The following statement appeared in an IBM Internal newsgroup (CRYPTAN FORUM)
: and is reproduced here with the approval of the author.
: -----------------------------------------------------------------------------
: 
: Subject: DES and differential cryptanalysis
: 
: We have kept quiet about the following for 18 years,
: and decided it's time to break the silence.
: 
: We (IBM crypto group) knew about differential cryptanalysis in 1974.
: This is why DES stood up to this line of attack; we designed the
: S-boxes and the permutation in such a way as to defeat it.
: 
: (The following assumes some knowledge of DES and the Biham-Shamir
: attack. "delta" is the difference between two intermediate messages.)
: 
: The fact that a 1-bit input delta leads to at least a 2-bit output
: delta (and that an input delta of 001100 also leads to at least a
: 2-bit output delta) helps to insure that any pattern is going to
: involve a large number of S-boxes over the course of 16 rounds.  The
: fact that an input delta of 11xx00 (xx are "don't care") must lead to
: a nonzero output delta, insures that any input delta for the entire
: round which can lead to an output delta of 0 for the whole round, must
: involve at least three S-boxes.  Couple this with the demand that any
: nonzero input delta to a single S-box gives rise to a particular
: output delta with probability at most 1/4, and with somewhat reduced
: probabilities for the deltas that can give rise to 3-box attacks such
: as '19600000', and you have a defense against differential
: cryptanalysis.
: 
: During the summer of 1974 we kept coming up with different classes
: of patterns that might be used against the DES (whose design was
: still fluid at that point), and part of my job (I was working here
: that summer) was in designing criteria for the S-boxes and the
: permutation that would insure that no such pattern could have too
: large a probability of success.
: 
: By contrast, the designers of FEAL obviously did not know about
: this class of attacks.  It is a pity that the FEAL fell prey to
: these attacks, because it apparently acted as a catalyst for the
: rediscovery of the attacks by the outside world.
: 
: I don't recall (and the documentation that survives from that era
: doesn't help) whether at that time we knew the trick of sending a
: block of messages to get past the first round.  We certainly knew
: it later, and were applying it (privately) to FEAL and a couple of
: others.
: 
: My contention is that, even though (2^47) < (2^56), still
: (2^47 chosen plaintext) is *more* than (2^56 on my own machine),
: and (2^47 chosen plaintext) is not a practical threat.
: I say this not to belittle the Biham-Shamir work (which was very well
: executed) but to assert that what we have created (DES) is still viable.
: 
: We kept quiet about this for all these years because we knew that
: differential cryptanalysis was such a potent form of cryptanalysis,
: and we wished to avoid its discovery and use (either for designing
: or for attacking) on the outside.  Now the techniques are known,
: and we felt it is time to tell our side of the story.
: 
: Don Coppersmith
: -----------------------------------------------------------------------------
: 
: 
: -- 
: _______________________________________________________________________________
: | Markus Kempf, Department of Physics/SAGA e.V., University of Kaiserslautern |
: | Germany, kempf@rhrk.uni-kl.de                                               |
: |-----------------------------------------------------------------------------|
: 
: 

From comp.risks Wed Apr 21 20:46:33 1993
Date: Mon, 19 Apr 93 9:21:53 EDT [RISKS-14.51]
From: Clipper Chip Announcement <clipper@first.org>
Organization: FIRST, The Forum of Incident Response & Security Teams
Subject: Slide presented at White House briefing on Clipper Chip

Note:     The following material was handed out a press briefing on the
          Clipper Chip on 4/16.

                              Chip Operation

                         Microchip
User's Message      +----------------------+
------------------> |                      |      1.  Message encrypted
                    | Encryption Algorithm |          with user's key
                    |                      |
                    | Serial #             |      2.  User's key encrypted
                    |                      |-->       with chip unique key
                    | Chip Unique Key      |
User's Encryption   |                      |      3.  Serial # encrypted
Key                 | Chip Family Key      |          with chip family key
------------------> |                      |
                    |                      |
                    +----------------------+


              For Law Enforcement to Read a Suspect's Message

1.  Need to obtain court authorized warrant to tap the suspect's telephone.

2.  Record encrypted message

3.  Use chip family key to decrypt chip serial number

4.  Take this serial number *and* court order to custodians 
    of disks A and B

5.  Add the A and B components for that serial number = the chip
    unique key for the suspect user

6.  Use this key to decrypt the user's message key for 
    this recorded message

7.  Finally, use this message key to decrypt the recorded message.

From sci.crypt Wed Apr 21 20:50:15 1993
Path: utcsri!utnut!cs.utexas.edu!swrinde!gatech!howland.reston.ans.net!bogus.sura.net!darwin.sura.net!guvax.acc.georgetown.edu!denning
From: denning@guvax.acc.georgetown.edu
Newsgroups: sci.crypt
Subject: REVISED TECHNICAL SUMMARY OF CLIPPER CHIP
Message-ID: <1993Apr21.192615.3465@guvax.acc.georgetown.edu>
Date: 21 Apr 93 19:26:15 -0400
Distribution: world
Organization: Georgetown University
Lines: 167

Here is a revised version of my summary which corrects some errors
and provides some additional information and explanation.


                     THE CLIPPER CHIP: A TECHNICAL SUMMARY

                               Dorothy Denning

                           Revised, April 21, 1993


INTRODUCTION

On April 16, the President announced a new initiative that will bring
together the Federal Government and industry in a voluntary program
to provide secure communications while meeting the legitimate needs of
law enforcement.  At the heart of the plan is a new tamper-proof encryption
chip called the "Clipper Chip" together with a split-key approach to
escrowing keys.  Two escrow agencies are used, and the key parts from
both are needed to reconstruct a key.


CHIP CONTENTS

The Clipper Chip contains a classified single-key 64-bit block
encryption algorithm called "Skipjack."  The algorithm uses 80 bit keys
(compared with 56 for the DES) and has 32 rounds of scrambling
(compared with 16 for the DES).  It supports all 4 DES modes of
operation.  The algorithm takes 32 clock ticks, and in Electronic
Codebook (ECB) mode runs at 12 Mbits per second.

Each chip includes the following components:

   the Skipjack encryption algorithm
   F, an 80-bit family key that is common to all chips
   N, a 30-bit serial number (this length is subject to change)
   U, an 80-bit secret key that unlocks all messages encrypted with the chip

The chips are programmed by Mykotronx, Inc., which calls them the
"MYK-78."  The silicon is supplied by VLSI Technology Inc.  They are
implemented in 1 micron technology and will initially sell for about
$30 each in quantities of 10,000 or more.  The price should drop as the
technology is shrunk to .8 micron.


ENCRYPTING WITH THE CHIP

To see how the chip is used, imagine that it is embedded in the AT&T
telephone security device (as it will be).  Suppose I call someone and
we both have such a device.  After pushing a button to start a secure
conversation, my security device will negotiate an 80-bit session key K
with the device at the other end.  This key negotiation takes place
without the Clipper Chip.  In general, any method of key exchange can
be used such as the Diffie-Hellman public-key distribution method.

Once the session key K is established, the Clipper Chip is used to
encrypt the conversation or message stream M (digitized voice).  The
telephone security device feeds K and M into the chip to produce two
values:

   E[M; K], the encrypted message stream, and 
   E[E[K; U] + N; F], a law enforcement field , 

which are transmitted over the telephone line.  The law enforcement
field thus contains the session key K encrypted under the unit key U
concatenated with the serial number N, all encrypted under the family
key F.  The law enforcement field is decrypted by law enforcement after
an authorized wiretap has been installed.

The ciphertext E[M; K] is decrypted by the receiver's device using the
session key:

   D[E[M; K]; K] = M .


CHIP PROGRAMMING AND ESCROW

All Clipper Chips are programmed inside a SCIF (Secure Compartmented
Information Facility), which is essentially a vault.  The SCIF contains
a laptop computer and equipment to program the chips.  About 300 chips
are programmed during a single session.  The SCIF is located at
Mykotronx.

At the beginning of a session, a trusted agent from each of the two key
escrow agencies enters the vault.  Agent 1 enters a secret, random
80-bit value S1 into the laptop and agent 2 enters a secret, random
80-bit value S2. These random values serve as seeds to generate unit
keys for a sequence of serial numbers.  Thus, the unit keys are a
function of 160 secret, random bits, where each agent knows only 80.
  
To generate the unit key for a serial number N, the 30-bit value N is
first padded with a fixed 34-bit block to produce a 64-bit block N1.
S1 and S2 are then used as keys to triple-encrypt N1, producing a
64-bit block R1:

        R1 = E[D[E[N1; S1]; S2]; S1] .

Similarly, N is padded with two other 34-bit blocks to produce N2 and
N3, and two additional 64-bit blocks R2 and R3 are computed:  

        R2 = E[D[E[N2; S1]; S2]; S1] 
        R3 = E[D[E[N3; S1]; S2]; S1] .

R1, R2, and R3 are then concatenated together, giving 192 bits. The
first 80 bits are assigned to U1 and the second 80 bits to U2.  The
rest are discarded.  The unit key U is the XOR of U1 and U2.  U1 and U2
are the key parts that are separately escrowed with the two escrow
agencies.

As a sequence of values for U1, U2, and U are generated, they are
written onto three separate floppy disks.  The first disk contains a
file for each serial number that contains the corresponding key part
U1.  The second disk is similar but contains the U2 values.  The third
disk contains the unit keys U.  Agent 1 takes the first disk and agent
2 takes the second disk.  Thus each agent walks away knowing
an 80-bit seed and the 80-bit key parts.  However, the agent does not
know the other 80 bits used to generate the keys or the other 80-bit
key parts.  

The third disk is used to program the chips.  After the chips are
programmed, all information is discarded from the vault and the agents
leave.  The laptop may be destroyed for additional assurance that no
information is left behind.
 
The protocol may be changed slightly so that four people are in the
room instead of two.  The first two would provide the seeds S1 and S2,
and the second two (the escrow agents) would take the disks back to
the escrow agencies. 

The escrow agencies have as yet to be determined, but they will not
be the NSA, CIA, FBI, or any other law enforcement agency.  One or
both may be independent from the government.


LAW ENFORCEMENT USE

When law enforcement has been authorized to tap an encrypted line, they
will first take the warrant to the service provider in order to get
access to the communications line.  Let us assume that the tap is in
place and that they have determined that the line is encrypted with the
Clipper Chip.  The law enforcement field is first decrypted with the
family key F, giving E[K; U] + N.  Documentation certifying that a tap
has been authorized for the party associated with serial number N is
then sent (e.g., via secure FAX) to each of the key escrow agents, who
return (e.g., also via secure FAX) U1 and U2.  U1 and U2 are XORed
together to produce the unit key U, and E[K; U] is decrypted to get the
session key K.  Finally the message stream is decrypted.  All this will
be accomplished through a special black box decoder.


CAPSTONE: THE NEXT GENERATION

A successor to the Clipper Chip, called "Capstone" by the government
and "MYK-80" by Mykotronx, has already been developed.  It will include
the Skipjack algorithm, the Digital Signature Standard (DSS), the
Secure Hash Algorithm (SHA), a method of key exchange, a fast
exponentiator, and a randomizer.  A prototoype will be available for
testing on April 22, and the chips are expected to be ready for
delivery in June or July.


ACKNOWLEDGMENT AND DISTRIBUTION NOTICE.  This article is based on
information provided by NSA, NIST, FBI, and Mykotronx.  Permission to
distribute this document is granted.


    

From comp.risks Wed Apr 21 21:11:26 1993
Date: Tue, 20 Apr 1993 14:23:39 -0400
From: Peter Wayner <pcw@access.digex.com>
Subject: Clipped Wings-- The Economic Impediment to the Clipper Chip...

If all of the privacy concerns about the Clipper chip magically disappeared,
the chip will still encounter widespread economic resistance.  Why? Because
almost everything can be done cheaper in software and the secrecy surrounding
the algorithm effectively prohibits software implementations.

Why would a computer designer add a high-speed encryption chip to the machine?
Even if the chips cost about $25 in large quantities, they could still add
about $100 to the final cost after everyone takes their markups.  The computer
designer must ask whether people are willing to spend extra to buy a box when
the clone manufacturer in the garage down the street isn't going to be putting
one in.

Adding encryption in software is a different proposition.  There is a one-time
cost of engineering and a small extra cost for increased support.  Once the
code is written, the manufacturing costs do not increase.  Also, software can
retrofit machines for no extra cost and add widespread compatibility after the
update is finished.  This is why Novell, Apple and Microsoft choose to add
encryption software in their latest rev of the system software.

It is not even clear that the standard has much of a chance in the phone
system.  DSP chips and digital designs are becoming more and more part of
cellular standards.  Why pay extra for another chip if it can be done in the
DSP? Weight and power consumption are important considerations for these
applications.

I'm sure that the algorithm designers and NSA committee considered the RISKS
of exposing the algorithm.  Scrutiny weakens the code because it makes it
easier for people to attack the system.  It is obvious that the committee
tried to consider some of the economic RISKS involved in promulgating a "Big
Brother" standard.  That is why they arranged for the chips to be presented as
a fait accompli as part of AT&T's latest phones.  But they face an uphill
battle against the forces of economics.

--Peter Wayner

From sci.crypt Thu Apr 22 07:33:02 1993
Newsgroups: sci.crypt
Path: utcsri!utnut!torn!howland.reston.ans.net!europa.eng.gtefsd.com!news.ans.net!cmcl2!panix!habs
From: habs@panix.com (Harry Shapiro)
Subject: Re: The [secret] source of that announcement
Message-ID: <C5uxGv.Dv7@panix.com>
Organization: PANIX Public Access Unix, NYC
References: <MARC.93Apr17211937@oliver.mit.edu> <1r1om5$c5m@slab.mtholyoke.edu>
Date: Wed, 21 Apr 1993 23:34:07 GMT
Lines: 65

In <1r1om5$c5m@slab.mtholyoke.edu> jbotz@mtholyoke.edu (Jurgen Botz)
writes:

>Even more interesting: the SMTP server at csrc.ncsl.nist.gov no longer
>recognizes the 'expn' and 'vrfy' commands...

>   telnet csrc.ncsl.nist.gov smtp
>   Trying 129.6.54.11...
>   Connected to csrc.ncsl.nist.gov.
>   Escape character is '^]'.
>   220 first.org sendmail 4.1/NIST ready at Tue, 20 Apr 93 17:01:34 EDT
>   expn clipper
>   500 Command unrecognized

>Seems like sombody didn't like your snooping around, Marc.

Then it is a good thing we already have this:

The csspub mailing list: csspab@mail-gw.ncsl.nist.gov, and address on
the clipper mailing list, seems to contain basically the members of
the NIST security board.

In addition to the names already posted, their true names are as
follows:

burrows@ecf = James Burrows a director of NIST's National Computer
Systems Laboratory

mcnulty@ecf = F. Lynn McNulty an associate director for computer
security at the National Institute of Standards and Technology's
Computer Systems Laboratory

Gangemi@dockmaster.ncsc.mil = Gaetano Gangemi is director of the
secure systems program at Wang Laboratories Inc. He wrote: Computer
Security Basics by Deborah Russell and G. T.  Gangemi, Sr. -1991,
O'Reilly and Associates

slambert@cgin.cto.citicorp.com = Sandra Lambert is vice-president of
information security at Citibank, N.A.

lipner@mitre.org = Lipner is Mitre Corp.'s director of information
systems.

gallagher@dockmaster.ncsc.mil = Patrick Gallagher, director of the
National Security Agency's National Computer Security Center and a
security board member

walker@tis.com = Stephen Walker a computer security expert and
president of Trusted Information Systems, Inc. in Glenwood, Md

willis@rand.org = Willis H.  Ware a the Rand Corp.  executive who
chairs the security board.

whitehurst@vnet.ibm.com = William Whitehurst is a security board
member and director of IBM Corp.'s data security programs.

-- 
Harry Shapiro  				      habs@panix.com
List Administrator of the Extropy Institute Mailing List
Private Communication for the Extropian Community since 1991

-- 
Harry Shapiro  				      habs@panix.com
List Administrator of the Extropy Institute Mailing List
Private Communication for the Extropian Community since 1991

From sci.crypt Fri Apr 23 11:06:24 1993
Xref: utcsri alt.privacy.clipper:120 sci.crypt:15651
Newsgroups: alt.privacy.clipper,sci.crypt
Path: utcsri!utnut!torn!howland.reston.ans.net!usc!cs.utexas.edu!swrinde!sgiblab!sgigate!sgi!wdl1!phobos!koontzd
From: koontzd@phobos.lrmsc.loral.com (David Koontz )
Subject: Is key escrow enough?
Message-ID: <1993Apr22.231517.18659@wdl.loral.com>
Sender: news@wdl.loral.com
Organization: Loral Rolm Computer Systems  
References: <1993Apr22.043233.8855@uc.msc.edu> <Apr22.185314.14420@yuma.ACNS.ColoState.EDU> <strnlghtC5wL17.6wB@netcom.com>
Distribution: world 
Date: Thu, 22 Apr 1993 23:15:17 GMT
Lines: 48

>From: denning@guvax.acc.georgetown.edu
>                           Revised, April 21, 1993

>The chips are programmed by Mykotronx, Inc., which calls them the
>"MYK-78."  The silicon is supplied by VLSI Technology Inc.

>All Clipper Chips are programmed inside a SCIF (Secure Compartmented
>Information Facility), which is essentially a vault.  The SCIF contains
>a laptop computer and equipment to program the chips.  About 300 chips
>are programmed during a single session.  The SCIF is located at
>Mykotronx.

>ACKNOWLEDGMENT AND DISTRIBUTION NOTICE.  This article is based on
>information provided by NSA, NIST, FBI, and Mykotronx.  Permission to
>distribute this document is granted.

So, who is Mykotronx, Inc.?  It would be nice to know that they are
not a front company used by an intelligence or other agency of the 
U.S. government.

While we are at it, the chip design(s) should be examined and verified
against silicon to insure no trap doors or hidden protocols exist in silicon,
regardless of the security level of the encryption algorithm.  There is
no proof that the chip won't squeel and role over for someone with the
proper knowledge to interrogate it via the communications link.

The design examination should be done to the gate level.  Also, how does one
verify that what you are looking at is reflected in tapeout, or masks?

The silicon should be examined as well, the design in hand (a clean room
publicly defined clipper chip) can be merged with another design later, or
changed between completion and mask out.  There is little proof that what
you are told is in the chip is all that is in the chip.

Put the (verified) masks in escrow, and use them for chip production,
use a third escrow party for programming the chips. 

The government is asking for a lot of blind trust:  the encryption algorithm, 
operating protocols, the agency having physical control of the devices, the 
silicon implementation.  If the  government is so trustworthy, why escrow
anything?








From sci.crypt Fri Apr 23 11:12:44 1993
Newsgroups: sci.crypt
Path: utcsri!utnut!torn!howland.reston.ans.net!usc!elroy.jpl.nasa.gov!ames!haven.umd.edu!uunet!well!well.sf.ca.us!artmel
From: artmel@well.sf.ca.us (Arthur Melnick)
Subject: New Encryption Algorithm
Message-ID: <artmel.735538777@well.sf.ca.us>
Summary: The history of NEA
Keywords: NEA
Sender: news@well.sf.ca.us
Nntp-Posting-Host: well.sf.ca.us
Organization: The Whole Earth 'Lectronic Link, Sausalito, CA
Date: Fri, 23 Apr 1993 04:19:37 GMT
Lines: 76


     Ever since Craig Rowland posted his piece "New Encryption"
to sci.crypt there has been some discussion of our company,
Secured Communications Technologies, Inc, and on encryption
algorithm, NEA.
     I spoke to Craig at length on 4/21/93 and we covered a lot
of ground.  Some of the information in the posting requires some
clarification, and I would like to answer some of the questions
raised on sci.crypt.
     SCT is a small company based in Silver Spring Maryland.  Our
two main products at this time are a PC based secure
communications program called SECOM and a general purpose
encryption chip which uses the NEA algorithm developed for SECOM.
     SECOM provides an encrypted secure communication link
between two PC's connected over dial up telephone lines.  It
supports simultaneous bi-directional file transfer and keyboard
to screen "chat".  It has its own proprietary communications
protocol which is tightly integrated to the encryption.  All
though it is a packetized link, the data stream appears to be
continuous because the packet boundaries are hidden.
     When SECOM was initially developed, it was implemented to
use DES encryption.  A business decision was made to seek export
approval for the product because it was perceived that the
overseas market was a large one and provided a good marketing
opportunity.
     We soon found out that we would NEVER be granted general
export approval for anything using DES.  All though the reason
for this was never explicitly stated, it seems to have something
to do with secret government to government agreements which are
still in effect.
     In any event, the decision was made to develop a new and
different algorithm which would take the place of DES.  This was
the reason NEA (New Encryption Algorithm) was born.
     At this time NEA is being held as a trade secret.  The
preliminary work of patenting it has begun, and the plan is to
make it public once the patent process is complete.  All though
one can make certain legal arguments for keeping it an ongoing
secret, I think in the case of an encryption algorithm it is
necessary to let people "shoot at it" over an extended period of
time to prove its worth.
     In order to get export approval for SECOM/NEA, it was
necessary to go through NSA and to reveal to them the details of
the program and algorithm.  This was done only AFTER we had a
finished product to submit.
     Let me state unequivocally that there is NO "back door" to
the program or the algorithm.  Secured Communications
Technologies is a closely held private company and
NSA/FBI/CIA/NIST/WHATEVER has NO financial interest in any way
whatsoever with the company or any of the people involved.
     From a practical business standpoint, we are interested in
selling chips and software (hopefully in large quantities) and a
back door to the encryption, if found out, could destroy our
credibility and our business.
     With the encryption algorithm approved for export, we set
out to talk to a number of potential customers for encryption
products and systems.  We were able to identify several common
threads of functionality requirements.  This led to the design of
a chip with the encryption algorithm "cast in silicon" and
certain other capabilities added so that the chip could fulfill
the broad range of requirements that we identified.
     We are strongly opposed to the clipper/capstone chips.  In a
press release today, our president, Dr. Stephen Bryen stated:

          "It seems as if the government has an unlimited source
     of funds to use to push its new bugged chips on the American
     Public.  But do we not understand how the National Security
     Agency, which is not supposed to be involved in domestic
     spying, can fund the development of a commercial chip
     intended to accommodate U.S. government domestic spying
     activities."

     If they had asked me to put a "back door" in NEA I would
have told them to g__ f____ed.
     Can NSA break NEA?  Or for that matter can they break DES,
RSA, IDEA, Diffy-Hellman, PGP, RC2, RC4, or whatever?  I don't
know and probably never will.

From sci.crypt Sat Apr 24 10:55:22 1993
Xref: utcsri alt.privacy.clipper:152 sci.crypt:15729
Newsgroups: alt.privacy.clipper,sci.crypt
Path: utcsri!utnut!cs.utexas.edu!swrinde!network.ucsd.edu!qualcom.qualcomm.com!qualcom!rdippold
From: rdippold@qualcomm.com (Ron "Asbestos" Dippold)
Subject: Clipper Not Good Enough for Government?
Message-ID: <rdippold.735595213@qualcom>
Originator: rdippold@qualcom.qualcomm.com
Sender: news@qualcomm.com
Nntp-Posting-Host: qualcom.qualcomm.com
Organization: Qualcomm, Inc., San Diego, CA
Date: Fri, 23 Apr 1993 20:00:13 GMT
Lines: 18

There's been some discussion very recently as to whether the
government once again might exempt themselves from something they use
to screw us over...  Well, from comp.dcom.telecom:

~From: lesreeves@attmail.com
~Subject: Odds 'n Ends in the News

* The Clipper Chip device introduced yesterday by AT&T may not be
suitable for government use, says House Telecom Subcommittee Chairman
Markey.  In a letter to Commerce Secretary Brown, Markey asked whether
the use of the technology could lead to "inadvertently increased costs
to those U.S. companies hoping to serve both" the government and
private markets.  Markey has ordered Brown to answer several questions
about security and cost concerns by April 28.  (Communications Daily,
4/20/93)
-- 
Show me a guy who's afraid to look bad, and I'll show you a guy you can beat
every time. -- Renee Auberjonois

From sci.crypt Mon Apr 26 10:34:13 1993
Xref: utcsri alt.privacy.clipper:204 sci.crypt:15861
Newsgroups: alt.privacy.clipper,sci.crypt
Path: utcsri!utnut!torn!howland.reston.ans.net!usc!elroy.jpl.nasa.gov!decwrl!netcomsv!netcom.com!tenney
From: tenney@netcom.com (Glenn S. Tenney)
Subject: Hearing on 29 April 1993
Message-ID: <tenneyC62HqH.6s1@netcom.com>
Organization: Netcom - Online Communication Services (408 241-9760 guest)
Date: Mon, 26 Apr 1993 01:35:05 GMT
Lines: 105

I received a fax of a letter from Representative Markey (Subcommittee on 
Telecommunications and Finance) to Ron Brown (Secretary of Commerce).  Since 
encryption and the Clipper chip are raised in this letter, I felt it would be
of interest.  I understand that on 29 April, Mr. Markey will be holding a
hearing on the questions raised in this letter.  There may also be a follow-on
hearing dedicated to the clipper chip, but that's not definite.

I've typed in the letter, which follows.  Any errors in transcription are 
mine...

---
Glenn Tenney
tenney@netcom.com            Amateur radio: AA6ER
Voice: (415) 574-3420        Fax: (415) 574-0546

------------------ letter of interest follows ----------------

April 19, 1993

The Honorable Ronald H. Brown
Secretary
Department of Commerce
14th and Pennsylvania Ave., NW
Washington, DC 20236

Dear Secretary Brown:

   As you know, I have long been interested in the privacy 
and security of telecommunications transmissions and data in 
a networked environment.  Recent reports concerning the 
Administration's endorsement of an electronic encryption 
standard, based upon "clipper chip" technology, have raised a 
number of related issues.  The international competitiveness 
of U.S. high tech manufacturers and the software industry is 
a key factor that the government should consider when 
addressing issues of encryption and data security.  As the 
nation moves forward in developing the national 
communications and information infrastructure, security of 
telecommunications transmissions and network data will be an 
increasingly important factor for protecting the privacy of 
users.

   The "hacker" community can compromise the integrity of 
telecommunications transmissions and databases linked by the 
network.  The people and businesses that use the nation's 
telecommunications network and the personal computers linked 
through it increasingly are demanding that information be 
protected against unauthorized access, alteration, and theft.

   I am concerned that the Administration's plan may mean 
that to remain competitive internationally, U.S. companies 
would be compelled to develop two products -- one for U.S. 
government customers, and another for private, commercial 
users who may want a higher encryption standard.  This may 
inadvertently increase costs to those U.S. companies hoping 
to serve both markets.  To assist the Subcommittee's analysis 
of this issue, please respond to the following questions:

1. Has the encryption algorithm or standard endorsed by the 
Administration been tested by any entity other than NSA, NIST 
or the vendor?  If so, please identify such entities and the 
nature of testing performed.  If not, please describe any 
plans to have the algorithm tested by outside experts and how 
such experts will be chosen.

2. Under the Administration's plan, what entities will be the 
holders of the "keys" to decrypt scrambled data?  What 
procedures or criteria will the Administration utilize to 
designate such key holders?

3. Does the encryption algorithm endorsed by the 
Administration contain a "trap door" or "back door," which 
could allow an agency or entity of the Federal government to 
crack the code?

4. It is clear that over time, changes in technologies used 
for communications will require new techniques and additional 
equipment.  How will encryption devices adapt to the rapid 
advancement of telecommunications technology?

5. What additional costs would the proposed encryption place 
on the Federal government?  What is the estimated cost to 
consumers and businesses which opt for the federal standard 
in their equipment?

6. What is the Commerce Department's assessment of the 
competitive impact of the Administration's endorsement of the 
"clipper chip" technology on U.S. exports of computer and 
telecommunications hardware and software products?

   I would appreciate your response by no later than close-
of-business, Wednesday, April 28, 1993.  If you have any 
questions, please have your staff contact Colin Crowell or 
Karen Colannino of the Subcommittee staff at (202) 226-2424.

Sincerely,

Edward J. Markey
Chairman

###
-- 
Glenn Tenney
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From alt.fan.rush-limbaugh Mon Apr 26 10:38:43 1993
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From: jrs@netcom.com (John Switzer)
Subject: Summary Fri 4/23/93
Message-ID: <jrsC62AFv.194@netcom.com>
Summary: Unofficial Summary for Friday, April 23, 1993
Keywords: Unofficial Summary Rush Limbaugh
Organization: Netcom Online Communications Services (408-241-9760 login: guest)
Distribution: world,usa,alt,na
Date: Sun, 25 Apr 1993 22:57:30 GMT
Lines: 901

Unofficial Summary of the Rush Limbaugh Show

for Friday, April 23, 1993

by John Switzer

This unofficial summary is copyright (c) 1993 by John Switzer.
All Rights Reserved. These summaries are distributed on
CompuServe and the Internet, and archived on CompuServe and
Internet (cathouse.aiss.uiuc.edu). Distribution to other
electronic forums and bulletin boards is highly encouraged.
Spelling and other corrections gratefully received.

Please read the standard disclaimer which was included with the
first summary for this month. In particular, please note that
this summary is not approved or sanctioned by Rush Limbaugh or
the EIB network, nor do I have any connection with them other as
a daily listener.

******************************************************************

April 23, 1993

LIMBAUGH WATCH

April 23, 1993 - It's now day 94 of "America Held Hostage" (aka
the "Raw Deal") and 172 days after Bill Clinton's election, but
Rush is still on the air with 594 radio affiliates (with over 15
million listeners weekly) and 207 TV affiliates (with a 4.0
rating). His first book has been on the NY Times hardback
non-fiction best-seller list for 32 consecutive weeks, with 2.5
million copies sold, and his newsletter has over 250,000
subscribers. However "The Way Things Ought To Be" has fallen to
the number eight spot on the LA Times best-seller list. Confused
Limbaugh Watchers anxiously await future indications of whether
there is any place for Rush Limbaugh in Clinton's America.

MORNING UPDATE

Yesterday was Earth Day, and someone who watched all the TV shows
about it would have had to come away with the feeling that the
planet is doomed. Nickelodeon ran "Plan It for the Planet," which
portrayed Earth as a goner unless drastic action is taken now;
HBO ran "Earth and the American Dream" which claims that white
guys are destroying the planet while Native Americans are the
only ones who are doing anything good; and CBS is running a
two-parter titled "The Fire Next Time."

"The Fire Next Time" is set in the not too distant future, and
shows America as a nation beset with dying forests, dried-up
rivers, and shrinking beaches. An epidemic of skin cancer is
being caused by ozone depletion, and all of these evils are
portrayed as the result of white men coming to America to pursue
the American dream.

"This is really poisonous stuff," Rush notes. He adds that Steven
Scheider, an atmospheric scientists, was a consultant to "The
Fire Next Time." Scheider was quoted in 1989, however, as saying:

"To get some broadbased support to capture the public's
imagination, we have to offer up scary scenarios, make
simplified, dramatic statements, and make little mention of any
doubts we have. Each of us has to decide what the right balance
is between being effective and being honest."

This guy who urges lying to the public and creating needless
scares and panics is, by the way, a source in Algore's book
"Earth in the Balance," a book Rush terms a "magnificent work of
fiction." Rush begs his audience not to get depressed, though,
because he is still around to bring truth to this matter. "All
you need to remember," he concludes, "is that the environment is
getting better. But never, ever, ever trust a draft dodger."

FIRST HOUR

Items

o	Rush is proud to have a new title: "Doctor of Democracy."
Doctor of Phoneology <<not to be confused with "Phonology">> Bo
Snerdley, however, is just as proud of his title.

o	Rush would like to once again give his audience "one big
attaboy" since not only is EIB the most listened-to radio show in
Los Angeles, but also in San Francisco, where EIB has a 12 share
in its second hour. EIB has similar successes in Philadelphia,
Chicago, Detroit, New York City, San Diego, and many other
cities. He thanks all of his listeners for making this possible.

Update Mario Cuomo (Screamin' Jay Hawkins, "I Put a Spell on
You")

This update is related to the speech made last week by Senator
Daniel Patrick Moynihan who blamed the current regime of New York
City for the cultural problems the city faces. Governor Cuomo,
who is a friend of Moynihan, has now joined forces with David
Dinkins in attacking Moynihan for criticizing New York. Cuomo
says that the "cultural breakdowns" which Moynihan referred to
"could easily describe government in Washington. Wasn't it family
values which went wacky on the Potomac?" Cuomo then said the city
of Washington, DC was a worse place to live in than NYC.

Thus, Cuomo is not only blaming a Democratic Senator for his
state's problems, but is also criticizing another
Democratically-run city. Rush admits he loves seeing two
Democrats debate which of their cities is the worse.

Update Gay Community (Klaus Naomi, "You Don't Know Me")

The gay community's massive march in Washington, DC will be
happening this weekend, and Rush has a list of the events which
have been scheduled. Among the 300 events scheduled are:

o	An S&M leather party

o	The Lebutant Ball at the National Press Club put on by NOW

o	A romantic midnight cruise on the Potomac on the cruise ship "Dandy"

o	A mass wedding demonstration for couples' rights at the IRS building

o	"Hands Around the Capitol Building" protest for more AIDS funding

o	The Dyke March in Dupont Circle

o	A drag show on the Mall

Rush adds that he's also heard the gays may paint the Washington
Monument pink, but this is unconfirmed.

*BREAK*

Rush says many Americans are having their eyes opened about the
truth about Bill Clinton. The news media, however, has been
bombarding the public with news about the "heartless" Republican
filibuster of Clinton's "jobs bill," but Rush still supports what
the Republicans did. He promises to continue airing the truth
about this, but says people should be heartened by how many
high-ranking Democrats are starting to be very troubled by
Clinton's inability to get things done.

Rush had thought Bill Clinton was a policy wonk, but he was
wrong. Clinton's administration is aimlessly wandering through
the jungle of legislation because Clinton is a "politics wonk,"
not a policy wonk. Clinton knows how to play the political game
and how to campaign, but not how to govern and get things done.

The Clinton administration is more concerned about having the
"right" sort of diversity among its members than it is about
getting its policies through. The "gridlock" which is happening
on Congress can't be laid on the shoulders of the Republicans
because many of the moderate Democrats, who once believed Clinton
was a "new Democrat," are now upset that Clinton has turned out
to be the same old liberal that the Democratic Leadership Council
was founded to defeat.

Rush recalls the political cartoon that showed a working class
man holding a cigarette and beer wearing a T-shirt emblazoned
with a giant target. The Clinton administration has targeted poor
guys like this because those in that administration are convinced
this man is a sinner and deserves to be taxed more. The latest
excuse is that smokers and drinkers by virtue of their activities
put a greater strain on the health care system, and thus should
pay more.

Rush, however, can think of a lot of behaviors, which are now
being called "rights," which raise health care costs far more
than drinking or smoking. Clinton, though, wants to raise taxes
only on beer and cigarettes, and he's got a lot of support from
people who think that this is just a fair and equitable thing to
do.

The real world, though, has some surprises in store for these
people. Anheuser-Busch is threatening to close their brewery in
St. Louis if Clinton does indeed raise taxes on beer. The company
says that the added taxes would force it to close one of its
breweries, so why not its biggest one? In the real world when
government makes it tougher for businesses to do business,
companies will respond to cut their losses.

Rush also recalls that the federal deficit will be smaller than
expected because of economic growth. Clinton, though, used the
excuse of a higher deficit last year as the justification for
higher taxes. Since the deficit is going to be lower, though,
shouldn't Clinton follow this same linear logic and cut taxes?

The Democrats are in a panic mode about things, and Rush plays a
quote from Senator Robert Byrd (D-WV), who said the following
Wednesday when the Senate killed Clinton's "jobs bill":

"So while the champaign corks are popping on the other side of
the aisle tonight, billions [sic] of Americans will open a can of
beans and a box of soda crackers, and wonder where they're going
to find a job."

Rush is surprised to learn that there are "billions" of
Americans, but suggests that these Americans can find a job in
the same place they always have - in companies. They certainly
won't find any jobs on the floor of the Senate. However, if
Senator Byrd is so worried that Americans will be eating a lot
more beans now, then he should do what Congress always does in
this sort of situation - tax beans.

*BREAK*

Rush replays the quote from Senator Byrd and notes it's the same
old scare tactics that the Democrats love to use. At least,
though, it's better for Americans to open a can of beans than one
of pork. Rush has to laugh at the spectacle of panic-filled
Democrats, who were the ones who won last November. First,
Clinton claims Republicans are holding children hostage, then
Senator Mitchell warns that cities will burn if Clinton's bill
isn't passed, and now Byrd talks about billions of Americans
eating beans.

"Where has civility and responsibility gone?" asks Rush, who
notes that if these were Republicans making these statements,
they'd be front page news and lead items on the TV news. EIB,
though, has to scour the cutting room floor to find these amazing
things.

Phone	Phil from Kalamazoo, MI

Phil watched "Earth and the American Dream" last night, and he
was disappointed because 1) it was really boring and 2) had a lot
of actors he really liked doing narrations. They also showed
pictures of starving Ethiopians and the damage caused at
Chernobyl, as if these were the fault of Americans.

Rush says that the militant environmental socialists would indeed
claim that these tragedies happened because of an unequal
distribution of the world's wealth. The real problem, though, is
not the distribution of wealth, but the unequal distribution of
capitalism. Capitalism has made the US the most successful nation
on the Earth and the nation which feeds the world.

Rush's TV show last night was devoted to Earth Day and the idiocy
which is going along with it. Rush urges those in his audience
who have "The Way Things Ought to Be" (still on sale) to reread
the chapter on the environment, and they'll learn how the
militant environmentalist movement is the new home for world
socialism.

On his show, Rush played numerous clips of celebrities blaming
America for the world's problems, with Lindsay Wagner even
theorizing that maybe the American dream should be redefined.
America, though, does more for the environment than anyone else,
and it's because of capitalism. Capitalism is why America has
more trees now than 70 or 170 years ago. Capitalism and its
profit motive give people a reason for taking care of trees and
replanting them.

Rush doesn't suggest that there aren't problems or messes to be
cleaned up, but the environment can't be helped by attacking
prosperity and promoting disincentives against the American
lifestyle. Some activists would love to see people return to the
era of mud huts and straw floors, but this is absurd.

The environmentalists don't let facts get in their way. When the
Space Shuttle's measurements of the ozone layer discovered that
ozone depletion was "shockingly low," everyone was convinced that
those measurements couldn't be right. The truth, though, is that
if there are reduced levels of ozone in the stratosphere, the
blame can be placed only on the eruptions of Mount Pinatubo.

Man's CFCs and spray cans can't be responsible for fluctuating
ozone levels, which are natural changes that have been occurring
for decades. Volcanoes have been around for eons, and Mount
Pinatubo's eruption was a "puny" one by some standards, but it
still was able to reduce the world's temperatures a degree or so
and cause a minor depletion of the ozone. The Earth, though, is
remarkably rejuvenative and has recovered from Pinatubo, just as
it has recovered from the thousands upon thousands of eruptions
which have occurred for eons.

The environmentalists want people to believe that America is
ignoring the "warning signs" and is destroying the planet. This
is not true, and in fact an AP story on this has the following
paragraph buried within it:

"It is theorized that the unusually low readings might have been
caused in some part by the huge 1991 eruption of a Philippine
volcano."

Rush points out that Mount Pinatubo destroyed two US military
bases, yet its effects are basically ignored by people who think
mankind is far more powerful than the forces of nature. Phil says
that what bothers him is that these actors are attacking what has
made them successful and rich, and he has to wonder if they
possibly think they will be the elite when a socialist system is
established.

Rush says that this is the myth believed by all of the
intellectuals and artists who support Communism. Vladimir Posner,
though, can testify as to what happens under socialism - he had
to leave the Soviet Union because his freedom of speech was taken
away from him. This is also why so many Soviet artists defected,
because they wanted the freedoms that socialism denied them.

Rush is convinced that actors in general have a burning need to
be taken seriously for who they really are and not just the roles
they play. This desire, coupled with the guilt many of them feel
for being rich and successful, pushes them into activist causes.

These actors think they are actually doing something worthwhile,
and because the media wants to stay on these celebrities' good
sides, the press never challenges them or their opinions. They
thus become "experts" and sometimes even testify before Senate
committees; Jessica Lange once played a farmer's wife, and so
testified before Congress on the plight of women farmers. Rush
wonders if Willie Nelson will be the next to testify, perhaps on
US tax policy.

*BREAK*

Phone	Mary from Laredo, TX

Mary asks why nobody asks President Clinton what kind of jobs his
"jobs bill" will create - are they long-term, short-term, minimum
wage, or what? Rush says this is a good question, but the press
is not really concerned about this because Clinton's bill is just
politics as usual to them. Clinton's stimulus bill will create
jobs, but they are make-work, low-paying jobs which will
nevertheless cost $90,000 each.

The press, however, has seen all this before; it knows that the
Democratic party typically spends big money like this to help out
its mayors and other politicians. What's at stake here, though,
is not if jobs will be created, because they will, but rather
where jobs should be created in the first place - in the private
sector or by government.

President Clinton has shown himself to be no different than those
liberal Democrats who think that government should create jobs so
that they can by votes and be reelected. Mary understands this,
but is worried that the word isn't getting out about the true
nature of these jobs. Rush says that Mary shouldn't be too
concerned about this because the Senate just got back from a
two-week recess during which they heard no complaints about the
Senate filibuster; no constituents were complaining about the
stall of the "jobs bill." Also, Clinton's approval rating is
dropping.

People should therefore remain confident and not worry so much
about what the press is reporting. Sometimes the press can con
the people into believing the Democratic side of things, but
right now the people seem to already know what the realities are.

*BREAK*

Rush says that many EIB affiliates will undoubtedly preempt his
show because they'll be carrying Clinton's press conference next
hour, but Rush is not going to worry about this. He'll still do
his best stuff because "I'm not going to allow this President to
adversely affect this show. I'm not going to sit here and do a
mediocre job while waiting for him to finish."

New York listeners, who already have suffered under many
preemptions because of the baseball season, won't have to worry
about being preempted because WABC is not going to carry the
President's press conference. Operations Director John Minelli
has promised not to air Clinton's press conference because, after
all, "what possibly new could we learn?"

*BREAK*

SECOND HOUR

Rush is thinking of actually holding a two-week "summer camp"
version of the Limbaugh Institute. It could do a course on the
Federalist Papers perhaps and be someplace Rush would like to
spend two weeks. He promises to consider this possibility some
more.

Update Sexual Harassment (Frankie Vallie, "My Eyes Adored You")

Rush sings along with the update theme, making up new words as he
goes. He impresses himself with his improvisational lyric-writing
capabilities and orders his staff to write down his new words as
he sings them. <<I'd do it, but some things are beyond even my
capabilities>> There are two items to this update:

o	Fitness guru Richard Simmons has been sued for sexual
harassment by a former employee of the QVC network, Laurie
Pastor. Pastor claims when Simmons was at the network offices in
1991 to sell his workout clothing and equipment he made "lewd,
lecherous, lascivious, and wanton remarks" to her. She thus wants
at least $150,000 in damages. Rush wonders how much Simmons paid
Pastor to make this complaint.

o	The University of Virginia faculty has endorsed a ban on sex
between teachers and students they teach or supervise.
Originally, the ban would have prohibited sex between teachers
and any students, but the teachers complained that this would be
"an unconstitutional limit on love." The ACLU joined the
teachers, saying that banning all sex between consenting adults
is a violation of the constitutional right to privacy.

Rush wonders when love entered the sexual harassment scene, but
is glad there will be no "unconstitutional limit on love."

********

Rush replays Senator Byrd's comment about "billions of Americans"
because he wants to stress how Democratic party leaders are
starting to have doubts about the Clinton administration's
ability to get anything done. Rush thinks that there is a lot of
good news in this, and notes that whenever he sees the press
report about the "jobs bill" or "stimulus package" these words
are always in quotes. Thus, doubts have been raised as to the
true intent of Clinton's bill.

The NY Post has some more good news about how Clinton may retreat
from his $21 billion business investment tax credit. Dee Dee
Myers said that "we are looking at it. We are not ruling it in.
We are not ruling it out." The Washington Post says that the
Republicans' "mauling" of Clinton's bill has "angered, alarmed,
and frustrated" some of Clinton's most loyal supporters in
Congress, and has slowed his momentum and reduced his support.

NY Newsday has the headline "Little Pain in Loss of Stimulus
Plan," and the accompanying story reports that the stimulus bill
would not have done much good for the US economy. However, the
story warns that a rejection of Clinton's deficit reduction bill
would "come back to haunt the economy."

Earl Caldwell in the NY Daily News writes that the Clinton
"dream" is now over because of what happened in Waco. Janet Reno
and President Clinton both "seemed to rush to accept
responsibility" for what happened in Waco, with Reno saying "the
buck stops with me." (Rush thinks that a clip of Reno saying this
would make for a winning GOP political ad in 1994.)

Caldwell then says that Reno and Clinton didn't go far enough -
"they don't have to claim responsibility, they are responsible.
What they need to tell is another story." Caldwell thinks that
the Clinton administration has to explain why it acted with "such
a callous disregard for human life." Rush thus is encouraged by
all this because these are all Democrats talking and criticizing
Clinton.

*BREAK*

Rush will be interviewing Charles Barkley this afternoon; the
interview will appear in the June issue of the Limbaugh Letter.
Rush thinks people will be surprised at what this man has to say.
Rush saw last night's game, and was impressed by how seven points
were scored in the last few seconds. The winning basket was
lobbed in by Barkley during the last half second, and this was
Barkley's first game back after being injured on the team bus.

Phone	Mary from Piscataway, NJ

Mary would like Rush to call her son in Indianapolis to wish him
a happy birthday and to tell him that his present will be a
subscription to the Limbaugh Letter. Rush asks if the
subscription is one year or two; Mary replies it was for only one
year, and Rush points out that she could have saved $11 by
getting the two-year subscription. EIB doesn't advertise this
fact, but "when you call the 800 number, the eager-beaver
salespeople are supposed to force - uh, offer, the option of a
two year subscription to you."

Rush says he'll call Mary's son, and Mary starts to give out his
number on the air. Rush shouts her down, and tells his staff to
get the number and call the guy.

Phone	Denise from Lowell, MI

Denise has a poem which she thinks expresses the viewpoint of
millions of thinking women across America:

Intellectual Fantasies

"My sin is never-ending,
My shame is so profound.
Too much time with you I'm spending
While to another I'm bound."

"I curse my own dependence,
My addiction will not cease.
Every day I have to tune in, noon to three, to find release."

"You're the master of the airwaves,
Commentator nonpareil.
Rush, I need you, need you, need you,
'Cause I think as well as feel."

"So I try, I cannot stop it,
Somehow, someway I'll be resigned.
While I'm married to another, I'll be lusting for your mind."

Rush thinks this is very sweet, but "sadly so true." While he was
signing books during last night's TV show, a woman told him she
had an erotic dream about him last night. Rush asked for details
and she replied "we had dinner together." Denise says Rush is the
"sex symbol of the thinking women of America," and Rush thanks
her for calling in with her thoughts and poetry.

*BREAK*

Phone	Jeannette from Chattanooga, TN

Jeannette asks Rush about Thomas Sowell's latest book, "Inside
American Education." Sowell writes that the American public
school system should be junked and a new system built up. She
wants to know if this is possible. Rush says that this would be a
major reform program which would require a great deal of parental
involvement at the grass roots level.

This, though, is already happening, and Rush thinks Sowell may
have tapped into a new movement in America - in New York, for
example, parents are actually daring to say they want to be on
the local school boards. Rush suspects that things like this will
happen more and more as liberal curriculums such as those
introduced in NYC show up across the country.

Rush is honored to know Sowell, who is an incredibly intelligent
and insightful man. Jeannette says that she thinks of him the
same way, but it appears that his book is being boycotted by the
establishment. Rush says this is very true - political cleansing
is indeed alive and well in America, and another example of it is
David Brock's book on Anita Hill.

David Brock has written the ultimate investigation into Anita
Hill's allegations against Clarence Thomas. Portions of it have
appeared in the American Spectator, and Brock was originally
scheduled to appear on all the usual talk shows that are part of
the book-selling circuit. These TV shows, though, basically
cancelled Brock's appearances by saying that they would need a
member from the "opposing camp" to appear with him.

This is totally bogus, and Rush cannot remember one previous
example of when an author needed someone who disagreed with him
to appear on the talk show circuit with him. This is a classic
example of how liberals, who claim to be the most tolerant,
really are the most intolerant of all.

Jeannette adds that an administrator of a large Christian school
in Illinois has challenged the Chicago public schools; the
administrator has said he'll educate 200 students from the
Chicago schools for free for one year. If these 200 kids' test
scores are higher than those of the public school students, he'll
accept those students again for a reduced fee of $2500 a year.
The Chicago public schools, though, have ignored his offer.

Rush is not surprised since the public school system is a gravy
train for many, given that it gets a lot of federal dollars.
However, competition is exactly what the public school system
needs, but the monolithic teachers' unions will oppose it; these
teachers' groups even oppose national standards or tests because
these sorts of things can point out how poorly some teachers are
doing.

Rush says that Sowell's book is a shocking one in that it gives
an incredible number of examples of how public schools waste
money and children's time. Sowell has been a bit discouraged
lately, though, with his teaching career because of the many
things he is forced to do as a teacher. This is why he prefers to
now spend his time speaking and writing.

Sowell also told Rush that he considers himself lucky to have
been born in 1930, since this allowed him to grow up and mature
before the monolithic civil rights coalitions took over the black
community and put impediments in the way of blacks seeking to
better themselves. Sowell has promised to have dinner with Rush
when he visits New York in June, and Rush is looking forward to
it because Sowell's intelligence makes learning from him
incredibly easy.

*BREAK*

Phone	Mona from Lewisville, TX

Mona and here family were watching Rush's TV show recently when
they saw the bit about the school that wants to "help" pay off
the deficit by getting a quarter from every school kid in the
country. Mona's two daughters, 14 and 16, though, said that if
someone came up to them and asked for this money, they'd write up
IOUs stating they'd fork over the dough when President Clinton is
willing to cut the deficit by the same amount.

Rush says that this is smart thinking, and is glad to learn that
Mona's daughters are fans of his show. Mona says that they both
are good students and creative, and asks Rush to say "hi" to both
of them. Rush says "hi" to Jenny and Erica, and praises them for
having great brains, great parents, and a great family. "Keep it
up," he urges.

Rush learns that the President's press conference has just ended,
and he tells those listeners who were preempted that "you missed
a great hour." <<Ahem, that's what this summary is for>> He
promises to repeat just a few of the great bits he did, but Bo
Snerdley doesn't think that Rush should "reward" these listeners
for missing his show. Rush tells Bo to lighten up, since these
poor listeners weren't missing the show by choice; they were
"being held hostage by the President."

*BREAK*

Phone	Gale from Vinton, CA

Gale says that her husband's aunt has lived with the Eskimos for
20 years, and thus has learned a lot about Native Americans,
their lifestyles and folklore. Gale's father-in-law just died,
and his estate included large shells which West Coast Indians
used for money. The aunt told Gale that these large shells,
called dentalia <<singular: dentalium>>, were now extinct because
the Indians over-harvested them. The small ones are still
available, but the large ones are long gone.

Rush thinks it's not possible that the Indians would have
despoiled nature since they are "one with nature." After all, HBO
thinks that everything they did was perfect. Gale is not
convinced of this and notes that this extinction of the shell
species happened long before the white man "corrupted" the
Indians.

Gale also wonders what happens when a bald eagle eats a Spotted
Owl, and Rush tells her that this is only "nature working its
magic and we're not allowed to question it." Rush thanks Gale for
giving a great example of why it's folly to believe that the
white man discovered a pristine paradise when he arrived at the
Americas. Humans are humans, and have destroyed the environment
long before white Europeans showed up.

*BREAK*

THIRD HOUR

The number of first-time claims for unemployment benefits
increased 26,000 last week, and this is being seen as a sign of
slack economic and job growth. Rush says that this news could be
interpreted in a number of ways. When unemployment was dropping
last year after the election, both President-elect Clinton and
Vice President-elect Algore were claiming that the reason for the
unemployment drop and for economic growth was that their election
had given the American people "hope."

Well, if this is true, then doesn't it stand to reason that the
increasing unemployment and slow economic growth might be due to
a lack of confidence in the Clinton administration? Rush recalls
that back in the post-election days, Americans still thought they
were going to get a middle class tax cut. Today, though, the news
each day contains yet another new tax that the Clintons are
thinking about implementing.

Thus, it stands to reason that the ineptness of the Clinton
administration, not to mention their taxaholic fever, has
dampened any hope that might have existed in American businessmen
and women. If there is an economic slowdown, it's because of what
those in Washington say they want to do and what they are trying
to do. Perhaps they won't succeed in their efforts, but their
attempts can certainly make people pessimistic.

Rush recalls that Labor Secretary Robert B. Reich said last fall
that the jobs that were being created were only part-time,
temporary jobs. This, of course, was to be expected at the end of
a recession because businesses are not willing to hire new
workers until they are convinced that an expected economic growth
cycle will not peter out. Now, though, businesses are beginning
to think that the growth cycle is indeed petering out.

There was a recovery going last fall, but the Clinton
administration seems to have doomed that with their talk and
actions about the economy.

Update Feminist (The Forester Sisters, "Men" with "in your face"
slogan)

Rush first notes that a recent issue of Newsweek actually used
the term "feminazi" in one of its stories, and he bets it's only
a matter of time before it gets into the dictionaries. Continuing
on with the update, Rush says that a feminist magazine is
sponsoring the "Bring Your Daughter to Work for a Day" movement.
Jim Dreier of NY Newsday has added in his column today that this
program is being run in tandem with the "Leave Your Worthless Son
in School That Very Same Day Day" program.

The feminist program is based on the idea that environmental
biases are keeping women out of business, so to fight those
biases, parents are encouraged to bring their daughters with them
to work so that they can see how businesses work. Rush, though,
thinks that this misguided effort is a waste of time because as
Dreier points out not too many boys go to work with dad to find
out what is going on. Thus, the feminists are implying that men
can more naturally assimilate the business environment, while
women have to be given special attention in order to achieve
this.

"It's cockeyed," Rush states, pointing out that this is another
example of how the feminist leadership has nothing to do with the
mainstream American women who may think they are feminists. The
feminist leadership is trying to alter basic human nature, and
although people can be screwed up, it's not possible to change
what human beings are.

*BREAK*

Phone	Russell from Nashville, TN

Russell saw in today's edition of the Nashville Banner that Rush
has sold out his speech at this weekend's NRA convention twice
over. Rush hasn't heard this, so Russell says that 3,000 tickets
at $125 each were sold for the ballroom in which Rush will be
appearing. However, there was such demand for tickets that the
NRA hired two remote ballrooms, each holding 2,000 people, at
which they'll show Rush's speech via closed-circuit TV; thus, a
total of 4,000 more tickets were sold at $40 each. NRA President
Wayne LaPierre told the newspaper that the NRA could have sold
20,000 tickets if they had enough space.

Rush is impressed by these figures and admits he didn't know the
original ballroom tickets were going for $125 each. Russell
confesses he won't be seeing Rush speak because he's got season
tickets for one of Nashville's two minor league teams. Russell
adds that his 12-year-old daughter loves Rush's TV show, and
suggested that Rush use Fleetwood Mac's song "Little Lies" as an
update theme for whenever Clinton breaks one of his promises.

Rush says that many people have suggested this, but the problem
is that EIB would end up doing nothing but playing this song.
Rush thanks Russell and his daughter, though, for the thought.

Phone	Bob from Brooklyn, NY

Rush catches Bob in the midst of eating, and Bob explains he was
eating a "celebratory grape" because they are okay to eat now.
<<Cesar Chavez died earlier today>> Bob says that Rush probably
didn't want to waste any tape by recording Clinton's press
conference so Bob has called to relay some highlights of what
Clinton said. Rush says EIB can afford to tape the President's
speeches, since EIB, after all, could record over it later. That
would be the environmentally safe thing to do, Bob adds, since
EIB would not have to "chop down another mylar tree."

Bob agrees with Rush a lot and loves listening to him, although
his lover thinks Rush tends to "puff himself up a bit." Bob also
admits that he is impressed by EIB's dedication to its listeners,
given that EIB pays for keeping so many 800 lines open for three
hours a day. Returning to the subject of Clinton, Bob says that
Clinton lambasted the Republicans for supporting reforms last
year but not this one. Rush holds Bob over the break so that he
can continue with this point.

*BREAK*

Phone	Bob from Brooklyn, NY (continued)

Rush says he has heard about some of the things which Clinton
said in his press conference, and some people think that Clinton
appeared depressed and defensive. Bob says he started out strong,
with his "Huck Finn" conman's smile, but it went downhill from
there. Rush says that he thinks both the press and many Democrats
are disappointed with Clinton's performance up to now.

As to the Republicans' support for economic reform, Rush notes
that the Democrats bottled up every growth bill they could in
1992 so that they could keep the recession going and get Clinton
elected. Bob says that Clinton did mention that the country was
in its second year of economic recovery, as well as that
America's 7% unemployment rate was a symptom of what was a
"worldwide problem."

Rush wonders how Clinton can think the economy has been in
recovery for two years, when only last fall he was saying that it
was the worst economy in 50 years. "We all know they lied," Bob
says; Clinton also said "things take time" and he pointed to how
it took him 10 years to change things in Arkansas. "Does that
sound like an effective leader to you?" Bob asks. Rush loves that
and notes that Arkansas did improve in some respects, but the
improvement was along the lines of going from number 50 in the
country to number 49.

Bob adds that a friend has a dog who just gave birth; only one
puppy survived, which made Bob think that if there's ever only
one nipple left on the national sow, Senator Kennedy is going to
get it, and "it's going to be pouring Scotch." Rush thanks Bob
for calling with so many great insights.

Rush adds that he can see the day coming when he will have to be
offering helpful hints and suggestions to the President. "Suppose
we get into a real emergency?" Rush asks, adding he doesn't want
to go down with the ship because his solutions were rejected at
the polls. This doesn't mean Rush will be joining the Clinton
administration as an advisor, but he has been referring to
himself today as the "Doctor of Democracy"; "it may be," he
supposes, "that house calls are going to be required."

Phone	Mark from Akron, OH

Mark gives "dittos from the former rubber capital," but explains
that this is in reference to how Akron gave birth to all the
rubber companies: Goodrich, Goodyear, Firestone, etc. Rush issues
a sigh of relief at this explanation. Mark says he is an
Anheuser-Busch distributor who is still feeling the effects of
the 1991 tax increases which doubled the federal beer tax. That
increase not only had a negative impact on sales, but also on
jobs. Mark is not optimistic about the future and thinks that his
industry has a tough road ahead of it.

Mark is also tired of being classified as a drug dealer or menace
to society. Three generations of his family have been in this
business, yet he's being punished by higher government taxes
because of what business he's in. It doesn't help him to know
that his personal taxes are also going up, which means that he's
being penalized for being successful.

Mark applauds Rush for telling the truth about this, and for
encouraging him to deal with both his state and federal
legislators. He also says hello to some friends in Kansas City,
and when Rush learns that these friends live near Van Brunt
Avenue he remarks "I've broken down there many times." He adds
that it was in Kansas City where he bought an expensive
"disgronificator" for his car.

*BREAK*

Phone	John from Baldwin, WI

John mentions that President Clinton in his speech praised
himself and his performance so far, and he even took credit for
the "lowest interest rates in 20 years." Rush is not surprised
that Clinton would try to take credit for this, although he's
done nothing to achieve this feat.

John adds that Ross Perot <<"When Johnny Comes Marching Home"
starts playing>> was on the Today show this morning, and he
actually said that Bill Clinton's plan was "wrong for the
country." Rush sarcastically remarks "how bold of Mr. Perot," but
John was impressed since Perot has always danced around this
topic before. Bryant Gumble, though, was insisting that Clinton's
plan could work if the President was only given a chance.

Rush says Gumble is a neophyte who still thinks the 80s were the
worst period of American history. John agrees and says that Perot
actually challenged Gumble on this and used Clinton's own numbers
to prove his point. John was so impressed by what Perot was
saying he even admitted, "gee he's starting to make some sense."

Rush comments that Perot started off slowly with his criticism of
Clinton, which gave him the appearance of being open-minded and
hopeful. Now, though, Perot can come forward and say that things
just aren't working out, which puts him in a good position to
continue his political aspirations. Rush, of course, has been
saying that Clinton's plan wouldn't work from day one, but then
Rush is seeking not votes but only the truth.

Phone	Jerry from Manhattan, NY

Jerry read today's column by Evans and Novak and found an
interesting sentence: "The President, Mrs. Hillary Clinton, in a
closed-door Senators-only briefing, stated that she is looking at
the VAT and it's under consideration all the way up to 22%."
Jerry thinks that he'd be better off in Russia than paying a VAT
of 22%.

Rush notes that Bill Clinton has already denied he's considering
a VAT, but Hillary's bringing it up in closed-door meetings. The
health care task force, though, has been very secretive in
everything it's done, so people are getting more and more
suspicious about it. Rush doesn't think the VAT tax will ever
fly, though, because there's no health care crisis and the system
is not so broken that a 22% tax is necessary to fix it.

In fact America doesn't have any real crises going on, and to
find a real crisis one has to go to Bosnia. The Democrats,
though, have to manufacture one crisis after another in order to
get the public to support their plans. Rush adds he had an
interesting conversation about Hillary Clinton but he can't go
into it now. He tells his staff to remind him about this on
Monday, and warns them that if they fail in this, "heads are
going to roll!"

*BREAK*

Phone	Dave from Storrs, CT

Dave gives massive dittos, but wonders why Rush's gloatometer is
not kicking in since Rush is talking so much about his ratings.
Dave thinks Rush is going a little overboard about this, but Rush
disagrees. However, he's glad Dave asked about this because this
question is a "toughie." Rush knows that he's singing his own
praises by talking about the ratings successes he's having, but
he also wants to convey to his audience that he knows they are
the real reason for his success. He thus wants to thank these
people for what he has today.

Also, nobody gave Rush half a chance when he started out over
four years ago, and some "experts" are still claiming that Rush's
show is just a fad. Plus, the people in Rush's audience are as
much maligned as he is by the critics, so Rush wants to publicly
recognize what has happened in his career, and to thank the
people who are willing to admit they listen to him. "Plus, when
you're number one," Rush adds, "you have to say it if nobody else
will."

-- 
John Switzer             | "To Protect and Control" -- motto of the 
                         | Eerie Indiana police department.
Compuserve: 74076,1250   |
Internet: jrs@netcom.com |

From comp.risks Tue Apr 27 19:03:56 1993
Date: 22 Apr 1993 22:03:55 -0600 (CST)
From: Daren Stebner <STEBNERD@wl.aecl.ca>
Subject: Clipper Chip Commentary (not suitable for the cynicism impaired)

Short Synopsis:

"We're from the government.  We're here to help...."

Long Synopsis:

   "No, no, no.  Don't use those regular old encryption devices; if everyone
uses them, then criminals will use them, too.  And if criminals use them, Big
Brother won't be able to protect you from all those nasty deals they make over
the phone.  It just makes the work of protecting you poor lost sheep that much
harder.
   "Here, Big Brother will make things all better, but in order for it to
work, you need to use this handy dandy NEW encryption algorithm that HE
designed.  He even put it on a chip to make it easy for you to use it in all
of your communication devices.  He even gave it a cute name -- the 'Clipper
Chip'.  See?!  Now, since Big Brother will know how to decode the messages,
He'll be able to listen in on the conversations of all of those yucky bad guys
so He can put them in jail and make things all better.
   "Could we listen in on your conversations too?  Well, yes, but we would
never dream of infringing on innocent peoples' rights to privacy.  That would
be a crime and Big Brother doesn't commit crimes.  He loves you all and would
never do anything to hurt you.  Most of all, he just wants to protect you from
those terrible, terrible, drug dealers.  That's all he would ever use the
Clipper Chip for.  Isn't that swell of Him?"

Daren Stebner  stebnerd@wl.aecl.ca

From comp.risks Tue Apr 27 19:04:37 1993
Date:         Fri, 23 Apr 93 00:29:38 EDT
From: Tony Harminc <TONY@VM1.MCGILL.CA>
Subject:      Clipper Chip

Thoughts on the Clipper Chip:

1) One of the selling points of the Clipper chip is that US companies will be
able to use it to effect secure communication between their home offices and
branches in foreign countries.  In particular, it is implied that it is the
governments of those foreign countries that will be thwarted in their attempts
to listen in to the corporate secrets of America.

Now why would any "friendly" foreign government (e.g. Canada, France,
New Zealand) imaginably permit Clipper to be used on its territory
unless it too has access to the keys for "law enforcement purposes" ?

So if XYZ Corp. wants to talk in private with its French subsidiary XYZ
France, SA., the French government will want access to the escrow agents so
that it too can present a court order (according to French law, of course) and
be given XYZ's key, if it suspects wrongdoing on the part of XYZ France.  But
this clearly won't do.  The US escrow agents will presumably be subject to US
law and might be able to refuse a French court order on some US constitutional
grounds.  So the French will have to have their own pair of agents, and -
since there is no advance control of which chips will end up in France - these
French agents will have to have the complete list of all keys.  Now multiply
this by a dozen or so friendly countries, with an equal number of different
legal systems and constitutions...

2) Presumably the reason for keeping the algorithms secret is to prevent
competitive manufacture of chips (or software) that can communicate with
Clippers from being produced.  (Such competitors might somehow forget to send
their key lists to the escrow agents.)

I know almost nothing of the technology, but it seems far fetched to me that a
chip can be manufactured that *absolutely, positively* cannot be reverse
engineered, or at least satisfies something analogous to being computationally
infeasible to reverse engineer.

There was no mention of quantum effects, but I know of no other way to even
begin to make something that can't be examined with appropriate probes.  I
hope some hardware experts will say something on this topic.  Or is it that
the hardware design can be reverse engineered, but the algorithms themselves
are one-way encrypted ?

3) It is not clear to me how tapping of bidirectional communications
works.  If the police have a court order to tap the phone of suspected
criminal X, and they find that he is holding a Clipper-encrypted
conversation with previously unknown person Y, will they be able to
decrypt only what X says if they have only X's key from escrow ?
Or will they automatically apply for Y's key too, on the grounds
that he is an associate of X ?

Ordinary analogue phones (and networks) echo a small amount of the received
signal to the sender, but an encrypting phone will have digitized and
encrypted the signal before it gets echoed (even if there is a modem and
analogue circuit in the loop).

Tony Harminc, Apios Systems Toronto,  tony@vm1.mcgill.ca 

From comp.risks Tue Apr 27 19:07:46 1993
Date: Sat, 24 Apr 93 14:39:12 EDT 
From: denning@cs.cosc.georgetown.edu (Dorothy Denning) 
Subject: Re: Responses to Clipper Chip Discussion in RISKS-14.53

Don Alvarez wrote

  Now, I have enough faith in the NSA's skills to trust that you can't pass the
  message to the user without also passing the escrow field, but I'd like to
  see that in writing.

That is certainly the intent.

  First, who knows F? If the cop on the street knows F then it quickly
  becomes so widely known that everyone knows it and you might as well send
  the serial number in the clear.  Ergo only the escrow agents know F.

F is embedded in every Clipper Chip, but like other chip keys, unknown to the
people who use them.  Only law enforcement will have a decoder box that allows
the law enforcement field to be decrypted. Initially, there will be just one
box, and it will be operated by the FBI.

	Second, what information does law enforcement get from the
	escrow agents?  Ideally, law enforcement only gets K, the
	session key governing the conversation for which they have a
	court order.  Unfortunately, in order for law enforcement to
	get *only* K (and not U), the escrow agents must get together
	and secretly combine U1 and U2 so that they can unwrap K and
	give it to law enforcement.  But then the escrow agents would
	also know K, and they would be able to decrypt messages
	themselves.  That's just a very short step away from the
	omniscient big-brother which the multiple-escrower scheme was
	designed to prevent.  The escrow agents must not allowed to
	exchange keys with each other.  Ergo, law enforcement must
	assemble U itself in order to find out K.  This means that law
	enforcement now knows the key to unlock every session key ever
	used on this phone.

It is imperative that law enforcement get U.  If they are tapping a line,
there may be dozens of calls on that line per day.  It would be totally
impractical to have to go to the escrow agents to get the session key for each
call.  It would be impossible to do real-time decryption under that
constraint.

	Things are starting to look bad, but what about F?  We never
	really figured out what F was for, we just said that only the
	escrow agents know F.  Well, now we know what F is for.  Even
	if law enforcement knows U, they still can't read messages
	without court orders, because they can't obtain E[K;U] without
	knowing F, and only escrow knows F.

For the same reason as above, it is imperative that law enforcement be able to
decode the law enforcement field in order to obtain E[K; U] and then decrypt
this to get K.  It is completely impractical to go the escrow agents for each
conversation.
 
Steve Holzworth wrote:
 
	I don't claim to be up on crypto, but it seems to me that once
	the "authorized tap" has been performed once, the agency in
	question now has a copy of the desired keys. They can use these
	keys at ANY time in the future to decrypt communications
	between these two parties (without having to go through the

After a tap has been completed, government attorneys are required to notify
the subjects of the electronic surveillance.  At that point, the subjects are
certainly free to purchase a new device with a new chip, or perhaps the
vendors could simply replace the chip.

  I have one outstanding question that I haven't seen asked yet.  Is there a
  time component in the encryption key? Since wiretaps are presumably
  authorized for certain time periods with both start and end dates, it should
  not be possible to decrypt an illegally monitored message.
 
I am unaware of any time component.  Current wiretap laws protect against
this.  Evidence collected after the warrant has expired can be thrown out in
court.  In addition, it is illegal for the service provider to implement an
intercept after a warrant has expired.  With the new technologies, law
enforcers will be incapable of executing a tap without the assistance of the
service provider.

Lars-Henrik Eriksson has written

  If the algorithm was made public, any weaknesses would be discovered
  in time. If it is classified, weaknesses may never be known, or known
  only to the parties who have access to the classified information.

The NSA has a long record of success with crypto, far better than any
individual or organization in the public community.  In addition, there are
plans to bring in expert cryptographers to assess the algorithm.

Dave Weingart wrote:

	It appears ... that two encryption devices, when they initiate
	a session, must exchange keys in order to decrypt each others
	messages.  Great, but here's my question...what's to stop
	someone at machine B (who's talking to machine A) from
	"recording" the key from machine A when the session is
	started?  Since it appears that the key is constant for each
	chip, machine B can now _always_ decrypt machine A's messages.

The unit keys that are embedded in the chips are not exchanged.  Instead,
machines A and B negotiate a session key K that is used only for that
particular conversation.

Jim Sims wrote:

        Seems a whole lot easier to just catch the key K during the
        negotiation between the boxes....

It is possible for both ends to negotiate a session key K without transmitting
any secret information at all, including K.  One way of doing this is with a
public-key distribution method. The Diffie-Hellman method works as follows.
Machine A picks a secret value xa, and machine B picks xb.  A sends the public
value ya = g^xa mod p to B and B sends yb = g^xb mod p to A, where p is a huge
prime and g is a global constant.  Then A computes the session key K = yb^xa
mod p = g^xbxa mod p, and B computes K = ya^xb mod p = g^xaxb mod p.  Both K's
are the same.  An eavesdropper sees ya and yb, but since xa and xb are not
known, cannot compute K.  For more information about key exchange, see for
example my book "Cryptography and Data Security" or some other crypto text.

Dorothy Denning denning@cs.georgetown.edu

   [There were enough additional messages for several more issues,
   some raising points already covered by the above message.  I have
   somewhat arbitrarily selected a representative few for the rest of 
   this issue, trying to avoid duplication where possible.  There may
   be another issue or two yet to come out of the existing backlog.  
   PLEASE pardon some of the duplication.  It is virtually impossible
   for me to selectively choose a few nonoverlapping paragraphs from each
   message.  For those of you who wonder whether RISKS has been taken over
   by this discussion, there has been essentially no other topic of concern
   for the past week, although something may be brewing in the recent 
   near-fatal aircraft autopilot failure attributed to software.  PGN]

From comp.risks Tue Apr 27 19:10:30 1993
Date: Mon, 26 Apr 93 23:25:44 PDT
From: jim@RSA.COM (Jim Bidzos)
Subject: Clipper questions

Much has been said about Clipper and Capstone (the term Clipper will be used
to describe both) recently.  Essentially, Clipper is a government-sponsored
tamper-resistant chip that employs a classified algorithm and a key escrow
facility that allows law enforcement, with the cooperation of two other
parties, to decipher Clipper-encrypted traffic.  The stated purpose of the
program is to offer telecommunications privacy to individuals, businesses, and
government, while protecting the ability of law enforcement to conduct
court-authorized wiretapping.

The announcement said, among other things, that there is currently no plan to
attempt to legislate Clipper as the only legal means to protect
telecommunications.  Many have speculated that Clipper, since it is only
effective in achieving its stated objectives if everyone uses it, will be
followed by legislative attempts to make it the only legal telecommunications
protection allowed. This remains to be seen.

The proposal, taken at face value, still raises a number of serious questions.

What is the smallest number of people who are in a position to compromise the
security of the system? This would include people employed at a number of
places such as Mikotronyx, VSLI, NSA, FBI, and at the trustee facilities.  Is
there an available study on the cost and security risks of the escrow process?

How were the vendors participating in the program chosen? Was the process
open?

A significant percentage of US companies are or have been the subject of an
investigation by the FBI, IRS, SEC, EPA, FTC, and other government agencies.
Since records are routinely subpoenaed, shouldn't these companies now assume
that all their communications are likely compromised if they find themselves
the subject of an investigation by a government agency?  If not, why not?

What companies or individuals in industry were consulted (as stated in the
announcement) on this program prior to its announcement? (This question seeks
to identify those who may have been involved at the policy level; certainly
ATT, Mikotronyx and VLSI are part of industry, and surely they were involved
in some way.)

Is there a study available that estimates the cost to the US government of the
Clipper program?

There are a number of companies that employ non-escrowed cryptography in their
products today.  These products range from secure voice, data, and fax to
secure email, electronic forms, and software distribution, to name but a few.
With over a million such products in use today, what does the Clipper program
envision for the future of these products and the many corporations and
individuals that have invested in and use them?  Will the investment made by
the vendors in encryption-enhanced products be protected? If so, how?

Since Clipper, as currently defined, cannot be implemented in software, what
options are available to those who can benefit from cryptography in software?
Was a study of the impact on these vendors or of the potential cost to the
software industry conducted?  (Much of the use of cryptography by software
companies, particularly those in the entertainment industry, is for the
protection of their intellectual property. Using hardware is not economically
feasible for most of them.)
 
Banking and finance (as well as general commerce) are truly global today. Most
European financial institutions use technology described in standards such as
ISO 9796.  Many innovative new financial products and services will employ the
reversible cryptography described in these standards.  Clipper does not comply
with these standards. Will US financial institutions be able to export
Clipper?  If so, will their overseas customers find Clipper acceptable?  Was a
study of the potential impact of Clipper on US competitiveness conducted? If
so, is it available? If not, why not?

I realize they are probably still trying to assess the impact of Clipper, but
it would be interesting to hear from some major US financial institutions on
this issue.

Did the administration ask these questions (and get acceptable answers) before
supporting this program? If so, can they share the answers with us? If not,
can we seek answers before the program is launched?

From sci.crypt Wed Apr 28 07:38:02 1993
Xref: utcsri sci.crypt:15902 misc.legal:58419 comp.org.eff.talk:17350
Path: utcsri!utnut!cs.utexas.edu!uwm.edu!lll-winken.llnl.gov!ddsw1!not-for-mail
From: karl@genesis.MCS.COM (Karl Denninger)
Newsgroups: sci.crypt,misc.legal,comp.org.eff.talk
Subject: Government intentions regarding encryptoion
Date: 26 Apr 1993 17:19:58 -0500
Organization: MCSNet, Chicago, IL
Lines: 16
Distribution: inet
Message-ID: <1rhn6e$j0d@genesis.MCS.COM>
NNTP-Posting-Host: localhost.mcs.com

There is an article in Communications Week (April 12's issue) which
states definitively that not only is the justice department trying to revive
the "wiretapping bill", but they are ALSO trying to find a way to force key
registration.  CLIPPER is an obvious thrust in exactly this direction.
Dorothy Dennings is quoted in this missive.

Communications Week, April 12th, page 8.  Read it and get peeved folks.
Then ACT NOW or lose your fundamental right to privacy.

Clinton has shown us that his only interest in this has to do with abortion,
and not the right of all citizens to be secure in their papers and effects.

--
Karl Denninger (karl@genesis.MCS.COM) 	| You can never please everyone except
Data Line: [+1 312 248-0900]		| by bankrupting yourself.
         	   LIVE Internet in Chicago; an MCSNET first!

From sci.crypt Wed Apr 28 07:40:51 1993
Xref: utcsri alt.privacy:6066 alt.security.pgp:2787 bit.listserv.xtropy-l:186 sci.crypt:15976
Newsgroups: alt.privacy,alt.security.pgp,bit.listserv.xtropy-l,demon.security,sci.crypt,uk.org.community
From: whitaker@eternity.demon.co.uk (Russell Earl Whitaker)
Path: utcsri!utnut!torn!nott!bnrgate!bnr.co.uk!uknet!nessie!demon!eternity.demon.co.uk!whitaker
Subject: From Crossbows to Cryptography
Distribution: world
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-----BEGIN PGP SIGNED MESSAGE-----

Please note that the following speech was made by Chuck Hammill
in 1987.  Address all letters to his address, given at the end
of this document.
     -- Russell

  FROM CROSSBOWS TO CRYPTOGRAPHY:  THWARTING THE STATE VIA
                     TECHNOLOGY

  Given at the Future of Freedom Conference, November 1987


     You   know,   technology--and   particularly   computer
technology--has often gotten a bad rap in  Libertarian  cir-
cles.  We tend to think of Orwell's 1984, or Terry Gilliam's
Brazil,  or  the  proximity  detectors keeping East Berlin's
slave/citizens on their own side of the border, or  the  so-
phisticated  bugging  devices  Nixon used to harass those on
his "enemies list."  Or, we recognize that for the price  of
a  ticket  on  the Concorde we can fly at twice the speed of
sound, but only if we first walk thru a magnetometer run  by
a  government  policeman, and permit him to paw thru our be-
longings if it beeps.

     But I think that mind-set is a mistake.   Before  there
were cattle prods, governments tortured their prisoners with
clubs  and  rubber  hoses.    Before  there  were lasers for
eavesdropping, governments used binoculars and  lip-readers.
Though  government certainly uses technology to oppress, the
evil lies not in the tools but in the wielder of the tools.

     In fact, technology represents one of the most  promis-
ing  avenues  available  for  re-capturing our freedoms from
those who have stolen them.  By its very nature,  it  favors
the  bright  (who can put it to use) over the dull (who can-
not).  It favors the adaptable (who are  quick  to  see  the
merit  of  the  new  (over  the sluggish (who cling to time-
tested ways).  And what two better words are  there  to  de-
scribe government bureaucracy than "dull" and "sluggish"?

     One  of  the  clearest,  classic triumphs of technology
over tyranny I see is  the  invention  of  the  man-portable
crossbow.   With it, an untrained peasant could now reliably
and lethally engage a target out to  fifty  meters--even  if
that  target  were  a mounted, chain-mailed knight.  (Unlike
the longbow, which, admittedly was more powerful, and  could
get  off  more shots per unit time, the crossbow required no
formal training to utilize.   Whereas the  longbow  required
elaborate  visual,  tactile  and kinesthetic coordination to
achieve any degree of accuracy, the wielder  of  a  crossbow
could simply put the weapon to his shoulder, sight along the
arrow  itself, and be reasonably assured of hitting his tar-
get.)

     Moreover, since just about  the  only  mounted  knights
likely  to  visit  your  average peasant would be government
soldiers and tax collectors, the utility of the  device  was
plain:    With it, the common rabble could defend themselves
not only against one another, but against their governmental
masters.   It was the  medieval  equivalent  of  the  armor-
piercing  bullet,  and, consequently, kings and priests (the
medieval equivalent of a  Bureau  of  Alcohol,  Tobacco  and
Crossbows)  threatened  death  and  excommunication, respec-
tively, for its unlawful possession.

     Looking at later developments, we  see  how  technology
like  the  firearm--particularly the repeating rifle and the
handgun, later followed by the Gatling gun and more advanced
machine guns--radically altered the balance of interpersonal
and inter-group power.  Not without reason was the Colt  .45
called "the equalizer."  A frail dance-hall hostess with one
in  her  possession  was  now  fully able to protect herself
against the brawniest roughneck in any saloon.    Advertise-
ments  for  the period also reflect the merchandising of the
repeating cartridge  rifle  by  declaring  that  "a  man  on
horseback,  armed with one of these rifles, simply cannot be
captured."  And, as long as his captors  were  relying  upon
flintlocks  or  single-shot rifles, the quote is doubtless a
true one.

     Updating now to  the  present,  the  public-key  cipher
(with  a  personal  computer to run it) represents an equiv-
alent quantum leap--in a defensive weapon.    Not  only  can
such  a technique be used to protect sensitive data in one's
own possession, but it can also permit two strangers to  ex-
change   information   over   an   insecure   communications
channel--a  wiretapped   phone   line,   for   example,   or
skywriting, for that matter)--without ever having previously
met  to  exchange cipher keys.   With a thousand-dollar com-
puter, you can create a cipher that  a  multi-megabuck  CRAY
X-MP  can't  crack in a year.  Within a few years, it should
be economically feasible to similarly encrypt voice communi-
cations; soon after that, full-color digitized video images.
Technology will not only have made wiretapping obsolete,  it
will  have  totally demolished government's control over in-
formation transfer.

     I'd like to take just a moment to sketch the  mathemat-
ics  which makes this principle possible.  This algorithm is
called the RSA algorithm, after Rivest, Shamir, and  Adleman
who  jointly created it.  Its security derives from the fact
that, if a very large number is  the  product  of  two  very
large  primes,  then it is extremely difficult to obtain the
two prime factors from analysis  of  their  product.    "Ex-
tremely"  in  the  sense that if primes  p  and  q  have 100
digits apiece, then their 200-digit product cannot  in  gen-
eral be factored in less than 100 years by the most powerful
computer now in existence.

     The  "public" part of the key consists of (1) the prod-
uct  pq  of the two large primes p and q, and (2)  one  fac-
tor,  call it  x  , of the product  xy  where  xy = {(p-1) *
(q-1) + 1}.  The "private" part of the key consists  of  the
other factor  y.

     Each  block of the text to be encrypted is first turned
into an integer--either by using ASCII,  or  even  a  simple
A=01,  B=02,  C=03, ... , Z=26 representation.  This integer
is then raised to the power  x (modulo pq) and the resulting
integer is then sent as the encrypted message.  The receiver
decrypts by taking this integer to the  (secret)  power    y
(modulo  pq).  It can be shown that this process will always
yield the original number started with.

     What makes this a groundbreaking development,  and  why
it  is  called  "public-key"  cryptography,"  is  that I can
openly publish the product  pq and the number   x   ,  while
keeping  secret  the number  y  --so that anyone can send me
an encrypted message, namely
                       x
                     a    (mod pq)  ,
but only I can recover the original message  a  , by  taking
what  they  send, raising it to the power  y  and taking the
result (mod pq).  The risky step (meeting to exchange cipher
keys) has been eliminated.  So people who may not even trust
each other enough to want to meet, may  still  reliably  ex-
change  encrypted  messages--each  party having selected and
disseminated his own  pq  and his  x  ,   while  maintaining
the secrecy of his own  y.

     Another benefit of this scheme is the notion of a "dig-
ital signature," to enable one to authenticate the source of
a given message.  Normally, if I want to send you a message,
I raise my plaintext  a  to your x and take the result  (mod
your pq)  and send that.

    However,  if in my message, I take the plaintext  a and
raise it to my (secret) power  y  , take the result  (mod my
pq), then raise that result to your x   (mod  your  pq)  and
send this, then even after you have normally "decrypted" the
message,  it  will still look like garbage.  However, if you
then raise it to my public power x   , and take  the  result
(mod  my public pq  ), so you will not only recover the ori-
ginal plaintext message, but you will know that no one but I
could have sent it to you (since no one else knows my secret
y).

     And these are the very concerns by the way that are to-
day tormenting the Soviet Union about the whole question  of
personal  computers.    On the one hand, they recognize that
American schoolchildren are right now growing up  with  com-
puters  as commonplace as sliderules used to be--more so, in
fact, because there are things computers can do  which  will
interest  (and instruct) 3- and 4-year-olds.  And it is pre-
cisely these students who one generation hence will be going
head-to-head against their Soviet  counterparts.    For  the
Soviets  to  hold  back might be a suicidal as continuing to
teach swordsmanship  while  your  adversaries  are  learning
ballistics.    On  the  other hand, whatever else a personal
computer may be, it is also an exquisitely efficient copying
machine--a floppy disk will hold upwards of 50,000 words  of
text,  and  can  be  copied in a couple of minutes.  If this
weren't threatening enough, the computer that  performs  the
copy  can also encrypt the data in a fashion that is all but
unbreakable.  Remember that in Soviet society  publicly  ac-
cessible  Xerox  machines are unknown.   (The relatively few
copying machines in existence  are  controlled  more  inten-
sively than machine guns are in the United States.)

     Now  the  "conservative" position is that we should not
sell these computers to the Soviets, because they could  use
them  in weapons systems.  The "liberal" position is that we
should sell them, in  the  interests  of  mutual  trade  and
cooperation--and  anyway,  if  we don't make the sale, there
will certainly be some other nation willing to.

     For my part, I'm ready to suggest that the  Libertarian
position should be to give them to the Soviets for free, and
if  necessary, make them take them . . . and if that doesn't
work load up an SR-71  Blackbird  and  air  drop  them  over
Moscow in the middle of the night.  Paid for by private sub-
scription, of course, not taxation . . . I confess that this
is not a position that has gained much support among members
of  the conventional left-right political spectrum, but, af-
ter all, in the words of one of Illuminatus's characters, we
are political non-Euclideans:   The shortest distance  to  a
particular  goal may not look anything like what most people
would consider a "straight line."    Taking  a  long  enough
world-view,  it is arguable that breaking the Soviet govern-
ment monopoly on information transfer could better  lead  to
the enfeeblement and, indeed, to the ultimate dissolution of
the Soviet empire than would the production of another dozen
missiles aimed at Moscow.

     But  there's  the rub:  A "long enough" world view does
suggest that the evil, the oppressive, the coercive and  the
simply  stupid  will "get what they deserve," but what's not
immediately clear is how the rest of  us  can  escape  being
killed, enslaved, or pauperized in the process.

    When  the  liberals and other collectivists began to at-
tack freedom, they possessed a reasonably  stable,  healthy,
functioning economy, and almost unlimited time to proceed to
hamstring   and   dismantle  it.    A  policy  of  political
gradualism was at least  conceivable.    But  now,  we  have
patchwork  crazy-quilt  economy held together by baling wire
and spit.  The state not only taxes us to  "feed  the  poor"
while also inducing farmers to slaughter milk cows and drive
up food prices--it then simultaneously turns around and sub-
sidizes research into agricultural chemicals designed to in-
crease  yields of milk from the cows left alive.  Or witness
the fact that a decline in the price of oil is considered as
potentially frightening as a comparable increase a few years
ago.  When the price went up,  we  were  told,  the  economy
risked  collapse for for want of energy.  The price increase
was called the "moral equivalent of war" and the Feds  swung
into  action.    For the first time in American history, the
speed at which you drive your car to work in the morning be-
came an issue of Federal concern.   Now, when the  price  of
oil  drops, again we risk problems, this time because Ameri-
can oil companies and Third World  basket-case  nations  who
sell  oil  may  not  be  able to ever pay their debts to our
grossly over-extended banks.  The suggested panacea is  that
government  should now re-raise the oil prices that OPEC has
lowered, via a new oil tax.  Since the government is seeking
to raise oil prices to about the same extent  as  OPEC  did,
what  can we call this except the "moral equivalent of civil
war--the government against its own people?"

     And, classically, in international trade, can you imag-
ine any entity in the world except  a  government  going  to
court  claiming  that  a  vendor  was  selling  it goods too
cheaply and demanding not only that that naughty  vendor  be
compelled by the court to raise its prices, but also that it
be punished for the act of lowering them in the first place?

     So  while the statists could afford to take a couple of
hundred years to trash our  economy  and  our  liberties--we
certainly  cannot  count  on  having an equivalent period of
stability in which to reclaim them.   I contend  that  there
exists  almost  a  "black  hole"  effect in the evolution of
nation-states just as in the evolution of stars.  Once free-
dom contracts beyond a certain  minimum  extent,  the  state
warps  the fabric of the political continuum about itself to
the degree that subsequent re-emergence of  freedom  becomes
all but impossible.  A good illustration of this can be seen
in the area of so-called "welfare" payments.  When those who
sup  at the public trough outnumber (and thus outvote) those
whose taxes must replenish the trough,  then  what  possible
choice has a democracy but to perpetuate and expand the tak-
ing  from  the few for the unearned benefit of the many?  Go
down to the nearest "welfare" office, find just  two  people
on  the dole . . . and recognize that between them they form
a voting bloc that can forever outvote you on  the  question
of who owns your life--and the fruits of your life's labor.

     So essentially those who love liberty need an "edge" of
some  sort  if  we're ultimately going to prevail.  We obvi-
ously  can't  use  the  altruists'  "other-directedness"  of
"work,  slave, suffer, sacrifice, so that next generation of
a billion random strangers can  live  in  a  better  world."
Recognize  that, however immoral such an appeal might be, it
is nonetheless an extremely powerful one in today's culture.
If you can convince  people  to  work  energetically  for  a
"cause," caring only enough for their personal welfare so as
to  remain  alive  enough  and  healthy  enough  to continue
working--then you have a truly massive reservoir  of  energy
to draw from.  Equally clearly, this is just the sort of ap-
peal which tautologically cannot be utilized for egoistic or
libertarian goals.  If I were to stand up before you tonight
and say something like, "Listen, follow me as I enunciate my
noble "cause," contribute your money to support the "cause,"
give  up  your  free  time  to  work for the "cause," strive
selflessly to bring it about, and then (after you  and  your
children are dead) maybe your children's children will actu-
ally  live under egoism"--you'd all think I'd gone mad.  And
of course you'd be right.  Because the point I'm  trying  to
make is that libertarianism and/or egoism will be spread if,
when, and as, individual libertarians and/or egoists find it
profitable and/or enjoyable to do so.    And  probably  only
then.

     While I certainly do not disparage the concept of poli-
tical  action, I don't believe that it is the only, nor even
necessarily the most cost-effective path  toward  increasing
freedom  in  our time.  Consider that, for a fraction of the
investment in time, money and effort I might expend in  try-
ing  to  convince  the  state to abolish wiretapping and all
forms of censorship--I can teach every libertarian who's in-
terested  how  to   use   cryptography   to   abolish   them
unilaterally.

     There  is  a  maxim--a proverb--generally attributed to
the Eskimoes, which very likely most Libertarians  have  al-
ready  heard.    And while you likely would not quarrel with
the saying, you might well feel that you've heard  it  often
enough already, and that it has nothing further to teach us,
and moreover, that maybe you're even tired of hearing it.  I
shall therefore repeat it now:

     If you give a man a fish, the saying runs, you feed him
for a day.  But if you teach a man how to fish, you feed him
for a lifetime.

     Your exposure to the quote was probably in some sort of
a  "workfare"  vs.  "welfare"  context;  namely, that if you
genuinely wish to help someone in need, you should teach him
how to earn his sustenance, not simply how to  beg  for  it.
And of course this is true, if only because the next time he
is hungry, there might not be anybody around willing or even
able to give him a fish, whereas with the information on how
to fish, he is completely self sufficient.

     But  I  submit  that this exhausts only the first order
content of the quote, and if there were nothing  further  to
glean  from  it,  I would have wasted your time by citing it
again.  After all, it seems to have almost a crypto-altruist
slant, as though to imply that we should structure  our  ac-
tivities  so  as  to  maximize  the  benefits to such hungry
beggars as we may encounter.

     But consider:

     Suppose this Eskimo doesn't know how to  fish,  but  he
does  know  how  to hunt walruses.   You, on the other hand,
have often gone hungry while traveling thru  walrus  country
because  you  had  no idea how to catch the damn things, and
they ate most of the fish you could catch.  And now  suppose
the  two  of  you  decide to exchange information, bartering
fishing knowledge for hunting knowledge.   Well,  the  first
thing  to  observe  is  that  a  transaction  of  this  type
categorically and unambiguously refutes the Marxist  premise
that  every  trade  must  have a "winner" and a "loser;" the
idea that if one person gains, it must necessarily be at the
"expense" of another person who loses.  Clearly, under  this
scenario, such is not the case.  Each party has gained some-
thing  he  did  not have before, and neither has been dimin-
ished in any way.  When it comes to exchange of  information
(rather  than material objects) life is no longer a zero-sum
game.  This is an extremely powerful notion.   The  "law  of
diminishing   returns,"   the  "first  and  second  laws  of
thermodynamics"--all those "laws" which constrain our possi-
bilities in other contexts--no longer bind us!   Now  that's
anarchy!

     Or  consider  another possibility:  Suppose this hungry
Eskimo never learned  to  fish  because  the  ruler  of  his
nation-state    had  decreed fishing illegal.   Because fish
contain dangerous tiny bones, and sometimes sharp spines, he
tells us, the state has decreed that their  consumption--and
even  their  possession--are  too  hazardous to the people's
health to be permitted . . . even by knowledgeable,  willing
adults.   Perhaps it is because citizens' bodies are thought
to be government property, and therefore it is the  function
of the state to punish those who improperly care for govern-
ment  property.    Or perhaps it is because the state gener-
ously extends to competent adults the "benefits" it provides
to children and to the mentally ill:  namely,  a  full-time,
all-pervasive supervisory conservatorship--so that they need
not  trouble  themselves  with making choices about behavior
thought physically risky or morally "naughty."  But, in  any
case,  you  stare stupefied, while your Eskimo informant re-
lates how this law is taken so seriously that  a  friend  of
his was recently imprisoned for years for the crime of "pos-
session of nine ounces of trout with intent to distribute."

     Now  you  may  conclude  that  a society so grotesquely
oppressive as to enforce a law of this  type  is  simply  an
affront to the dignity of all human beings.  You may go far-
ther  and  decide to commit some portion of your discretion-
ary, recreational time specifically to the task of thwarting
this tyrant's goal.  (Your rationale may be "altruistic"  in
the   sense   of  wanting  to  liberate  the  oppressed,  or
"egoistic" in the sense of  proving  you  can  outsmart  the
oppressor--or  very likely some combination of these or per-
haps even other motives.)

     But, since you have zero desire to become a  martyr  to
your "cause," you're not about to mount a military campaign,
or  even try to run a boatload of fish through the blockade.
However, it is here that technology--and in  particular  in-
formation technology--can multiply your efficacy literally a
hundredfold.    I say "literally," because for a fraction of
the effort (and virtually none of  the  risk)  attendant  to
smuggling in a hundred fish, you can quite readily produce a
hundred  Xerox copies of fishing instructions.  (If the tar-
geted government, like present-day America, at least permits
open  discussion  of  topics  whose  implementation  is  re-
stricted,  then that should suffice.  But, if the government
attempts to suppress the flow of information as  well,  then
you will have to take a little more effort and perhaps write
your  fishing manual on a floppy disk encrypted according to
your mythical Eskimo's public-key parameters.  But as far as
increasing real-world access to fish you have  made  genuine
nonzero  headway--which  may  continue to snowball as others
re-disseminate the information you have provided.   And  you
have not had to waste any of your time trying to convert id-
eological  adversaries, or even trying to win over the unde-
cided.  Recall Harry Browne's dictum  from  "Freedom  in  an
Unfree World" that the success of any endeavor is in general
inversely proportional to the number of people whose persua-
sion is necessary to its fulfilment.

     If  you  look  at  history, you cannot deny that it has
been dramatically shaped by men with names like  Washington,
Lincoln,  .  .  .  Nixon  .  . . Marcos . . . Duvalier . . .
Khadaffi . . .  and their ilk.  But it has also been  shaped
by  people with names like Edison, Curie, Marconi, Tesla and
Wozniak.  And this latter shaping has been at least as  per-
vasive, and not nearly so bloody.

     And  that's  where  I'm  trying  to  take The LiberTech
Project.  Rather than beseeching the state to please not en-
slave, plunder or constrain us, I propose a libertarian net-
work spreading  the  technologies  by  which  we  may  seize
freedom for ourselves.

     But here we must be a bit careful.  While it is not (at
present)  illegal  to  encrypt  information  when government
wants to spy on you, there is no guarantee of what  the  fu-
ture  may hold.  There have been bills introduced, for exam-
ple, which would have made it a crime  to  wear  body  armor
when government wants to shoot you.  That is, if you were to
commit certain crimes while wearing a Kevlar vest, then that
fact  would  constitute a separate federal crime of its own.
This law to my knowledge has not passed . . . yet . . .  but
it does indicate how government thinks.

     Other  technological  applications,  however, do indeed
pose legal risks.  We recognize, for  example,  that  anyone
who  helped a pre-Civil War slave escape on the "underground
railroad" was making a clearly illegal use of technology--as
the sovereign government of the United States of America  at
that time found the buying and selling of human beings quite
as  acceptable  as  the buying and selling of cattle.  Simi-
larly, during Prohibition, anyone who used  his  bathtub  to
ferment  yeast and sugar into the illegal psychoactive drug,
alcohol--the controlled substance, wine--was using  technol-
ogy  in a way that could get him shot dead by federal agents
for his "crime"--unfortunately not to be  restored  to  life
when  Congress  reversed itself and re-permitted use of this
drug.

     So . . . to quote a former President,  un-indicted  co-
conspirator  and pardoned felon . . . "Let me make one thing
perfectly clear:"  The LiberTech Project does not  advocate,
participate  in, or conspire in the violation of any law--no
matter how oppressive,  unconstitutional  or  simply  stupid
such  law may be.  It does engage in description (for educa-
tional and informational  purposes  only)  of  technological
processes,  and some of these processes (like flying a plane
or manufacturing a firearm) may well require appropriate li-
censing to perform legally.    Fortunately,  no  license  is
needed  for  the  distribution or receipt of information it-
self.

     So, the next time you look at the political  scene  and
despair,  thinking,  "Well,  if 51% of the nation and 51% of
this State, and 51% of this city have  to  turn  Libertarian
before  I'll  be  free,  then  somebody might as well cut my
goddamn throat now, and put me out of my  misery"--recognize
that  such  is not the case.  There exist ways to make your-
self free.

     If you wish to explore such techniques via the Project,
you are welcome to give me your name and address--or a  fake
name  and  mail  drop, for that matter--and you'll go on the
mailing list for my erratically-published newsletter.    Any
friends  or acquaintances whom you think would be interested
are welcome as well.  I'm not even asking for stamped  self-
addressed envelopes, since my printer can handle mailing la-
bels and actual postage costs are down in the noise compared
with  the  other  efforts  in getting an issue out.   If you
should have an idea to share, or even a  useful  product  to
plug,  I'll be glad to have you write it up for publication.
Even if you want to be the proverbial "free rider" and  just
benefit  from  what others contribute--you're still welcome:
Everything will be public domain; feel free to  copy  it  or
give it away (or sell it, for that matter, 'cause if you can
get  money  for  it while I'm taking full-page ads trying to
give it away, you're certainly entitled to  your  capitalist
profit . . .)  Anyway, every application of these principles
should make the world just a little freer, and I'm certainly
willing to underwrite that, at least for the forseeable  fu-
ture.

     I  will leave you with one final thought:  If you don't
learn how to beat your plowshares into  swords  before  they
outlaw  swords,  then you sure as HELL ought to learn before
they outlaw plowshares too.

                                       --Chuck Hammill

                                 THE LIBERTECH PROJECT
                                 3194 Queensbury Drive
                               Los Angeles, California
                                                 90064
                                          310-836-4157

                                    hammill@netcom.com

[The above LiberTech address was updated December 1992, with the
 permission of Chuck Hammill, by Russell Whitaker]

Those interested in the issues raised in this piece should participate
in at least these newsgroups:

                alt.privacy
                alt.security.pgp
                comp.org.eff.talk
                sci.crypt

A copy of the RSA-based public key encryption program, PGP 2.1 (Pretty
Good Privacy), can be obtained at various ftp sites around the world.
One such site is gate.demon.co.uk, where an MS-DOS version can be had by
anonymous ftp as pgp22.zip in /pub/pgp.

Versions for other operating systems, including UNIX variants
and Macintosh, are also available.  Source code is also
available.

Here's the blurb for PGP, by the way:

- ----------------------  Quote ----------------------------------------
PGP (Pretty Good Privacy) ver 2.2 - RSA public-key encryption freeware
for MSDOS, protects E-mail.  Lets you communicate securely with people
you've never met, with no secure channels needed for prior exchange of
keys.  Well featured and fast!  Excellent user documentation.

PGP has sophisticated key management, an RSA/conventional hybrid
encryption scheme, message digests for digital signatures, data
compression before encryption, and good ergonomic design.  Source
code is free.

Filenames:  pgp22.zip (executable and manuals), pgp22src.zip (sources)
Keywords:   PGP, Pretty Good Privacy, RSA, public key, encryption,
            privacy, authentication, signatures, email
- ---------------------- End Quote -------------------------------------

Russell Earl Whitaker                   whitaker@eternity.demon.co.uk
Communications Editor                                 AMiX: RWhitaker
EXTROPY: The Journal of Transhumanist Thought
Board member, Extropy Institute (ExI)


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Version: 2.2

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From sci.crypt Fri Apr 30 09:29:10 1993
Xref: utcsri sci.crypt:16070 comp.org.eff.talk:17440 alt.privacy:6088
Newsgroups: sci.crypt,comp.org.eff.talk,alt.privacy
Path: utcsri!utnut!cs.utexas.edu!usc!sol.ctr.columbia.edu!eff!mnemonic
From: mnemonic@eff.org (Mike Godwin)
Subject: Re: Dorothy Denning opposes Clipper, Capstone wiretap chips
Message-ID: <1993Apr29.210619.6412@eff.org>
Originator: mnemonic@eff.org
Sender: usenet@eff.org (NNTP News Poster)
Nntp-Posting-Host: eff.org
Organization: Electronic Frontier Foundation
References: <C614BJ.BK6@agora.rain.com> <1993Apr29.102103.12354@clarinet.com>
Date: Thu, 29 Apr 1993 21:06:19 GMT
Lines: 72

In article <1993Apr29.102103.12354@clarinet.com> brad@clarinet.com (Brad Templeton) writes:

>Quite simply she says that the security should not DEPEND on the
>secrecy of the algorithm.  A secret algorithm can still be secure,
>after all, we just don't know it.  Only our level of trust is
>affected, not the security of the system.

Here's Dorothy's own response, as sent to Phil Karn:

>From denning@cs.cosc.georgetown.edu Wed Apr 28 14:28:30 1993
~Date: Wed, 28 Apr 93 17:23:52 EDT
~From: denning@cs.cosc.georgetown.edu (Dorothy Denning)
~Subject: Re:  Apparently conflicting statements?
To: karn@unix.ka9q.ampr.org
Cc: denning@guvax.acc.georgetown.edu
Errors-To: Postmaster@cs.cosc.georgetown.edu


Phil,


        But in your own textbook you wrote:


>From Dorothy Denning, CRYPTOGRAPHY AND DATA SECURITY, Addison-Wesley
        1982,1983, page 8:


        "Cryptosystems must satisfy three general requirements:


        [...]


        "3. The security of the system should depend only on the secrecy
of the keys and not on the secrecy of algorithms E [enciphering] or D
        [deciphering]."


        Are you renouncing this principle?


        Phil


Two points:


1. Principle (3) does not say that you should make your algorithm public.
   If the key has 80 bits of uncertainty and the algorithm itself
   represents maybe thousands of bits of uncertainty, aren't you
   better off with that additional secrecy?  The STU-III's use a
   classified algorithm.  I haven't heard of anyone breaking it.


2.  Principle (3) assumes that the problem domain is message secrecy and
    authenticity.  The Clipper Chip is designed to do more than that,
    namely provide law enforcement access.  This introduces new areas
    of potential vulnerability and changes the problem domain
    somewhat.  Hence the requirements may be somewhat different.  I did
    not consider the law enforcement issues when I wrote my book.


Dorothy
P.S.  You may share this response if you want.


-- 
Mike Godwin,    |    Ariel Rose Godwin
mnemonic@eff.org|    Born 4-15-93 at 4:34 pm in Cambridge 
(617) 576-4510  |    7 pounds, 1.5 ounces, 19.75 inches long 
EFF, Cambridge  |    A new citizen of the Electronic Frontier 

From sci.crypt Mon May  3 12:05:17 1993
Xref: utcsri sci.crypt:16204 alt.privacy.clipper:289
Path: utcsri!utnut!cs.utexas.edu!usc!rand.org!jim
From: jim@rand.org (Jim Gillogly)
Newsgroups: sci.crypt,alt.privacy.clipper
Subject: NIST 4/30 Clipper info
Message-ID: <16748@rand.org>
Date: 1 May 93 21:10:58 GMT
Sender: news@rand.org
Organization: Banzai Institute
Lines: 106
Nntp-Posting-Host: mycroft.rand.org

Several people have asked to have the new NIST releases mailed to them.
I just posted the pointer before (csrc.ncsl.nist.gov:/pub/nistnews) because
I expected NIST to post them, as they had with previous stuff.  However,
better timely surfeit than possible dearth... I guess.

The Secure Hash Algorithm signature for the following file is:

	d1b27619 83abedf3 1d3449bc 92316eac 04c21162

---------------------------clip.txt--------------------------------

                     CLIPPER CHIP TECHNOLOGY


CLIPPER is an NSA developed, hardware oriented, cryptographic
device that implements a symmetric encryption/decryption
algorithm and a law enforcement satisfying key escrow system. 
While the escrow management system design is not completely
designed, the cryptographic algorithm (SKIPJACK) is completely
specified (and classified SECRET).

The cryptographic algorithm (called CA in this paper) has the
following characteristics:

     1.   Symmetric, 80-bit key encryption/decryption algorithm;
     2.   Similar in function to DES (i.e., basically a 64-bit
          code book transformation that can be used in the same
          four modes of operation as specified for DES in FIPS
          81);
     3.   32 rounds of processing per single encrypt/decrypt
          operation;
     4.   Design started by NSA in 1985; evaluation completed in
          1990.

The CLIPPER CHIP is just one implementation of the CA.  The
CLIPPER CHIP designed for the AT&T commercial secure voice
products has the following characteristics:

     1.   Functions specified by NSA; logic designed by
          MYKOTRONX; chip fabricated by VLSI, Inc.:  manufactured
          chip programmed (made unique) by MYKOTRONX to security
          equipment manufacturers willing to follow proper
          security procedures for handling and storage of the
          programmed chip; equipment sold to customers;

     2.   Resistant to reverse engineering against a very
          sophisticated, well funded adversary;

     3.   15-20 MB/S encryption/decryption constant throughout
          once cryptographic synchronization is established with
          distant CLIPPER Chip;

     4.   The chip programming equipment writes (one time) the
          following information into a special memory (called
          VROM or VIA-Link) on the chip:

          a.   (unique) serial number
          b.   (unique) unit key
          c.   family key
          d.   specialized control software

     5.   Upon generation (or entry) of a session key in the
          chip, the chip performs the following actions:


          a.   Encrypts the 80-bit session key under the unit key
               producing an 80-bit intermediate result;

          b.   Concatenates the 80-bit result with the 25-bit
               serial number and a 23-bit authentication pattern
               (total of 128 bits);

          c.   Enciphers this 128 bits with family key to produce
               a 128-bit cipher block chain called the Law
               Enforcement Field (LEF);

          d.   Transmits the LEF at least once to the intended
               receiving CLIPPER chip;

          e.   The two communicating CLIPPER chips use this field
               together with a random IV to establish
               Cryptographic Synchronization.

     6.   Once synchronized, the CLIPPER chips use the session
          key to encrypt/decrypt data in both directions;

     7.   The chips can be programmed to not enter secure mode if
          the LEF field has been tampered with (e.g., modified,
          superencrypted, replaced);

     8.   CLIPPER chips will be available from a second source in
          the future;

     9.   CLIPPER chips will be modified and upgraded in the
          future;

     10.  CLIPPER chips presently cost $16.00 (unprogrammed) and
          $26.00 (programmed).



4/30/93
---------------------------clip.txt--------------------------------
-- 
	Jim Gillogly
	Hevensday, 10 Thrimidge S.R. 1993, 21:11

From sci.crypt Mon May  3 12:05:56 1993
Xref: utcsri sci.crypt:16205 alt.privacy.clipper:290
Path: utcsri!utnut!cs.utexas.edu!usc!rand.org!jim
From: jim@rand.org (Jim Gillogly)
Newsgroups: sci.crypt,alt.privacy.clipper
Subject: NIST 4/30 Capstone info
Message-ID: <16749@rand.org>
Date: 1 May 93 21:13:31 GMT
Sender: news@rand.org
Organization: Banzai Institute
Lines: 102
Nntp-Posting-Host: mycroft.rand.org

The Secure Hash Algorithm signature for the following file is:

	e5587fc0 0d518af9 e713f346 3a26416d de9d657e

---------------------------cap.txt--------------------------------

                    CAPSTONE CHIP TECHNOLOGY


CAPSTONE is an NSA developed, hardware oriented, cryptographic
device that implements the same cryptographic algorithm as the
CLIPPER chip.  In addition, the CAPSTONE chip includes the
following functions:

     1.   The Digital Signature Algorithm (DSA) proposed by NIST
          as a Federal Information Processing Standard (FIPS);

     2.   The Secure Hashing Algorithm (SHA) recently approved as
          FIPS 180;

     3.   A Key Exchange Algorithm based on a public key
          exchange;

     4.   A general purpose exponentiation algorithm;

     5.   A general purpose, random number generator which uses a
          pure noise source.

The Key exchange Algorithm is programmable on the chip and uses
functions 1-2 and 4-5 above.

Prototypes of the CAPSTONE chip are due the last week in April. 
The chips are expected to sell for $85.00 each (programmed).

The first CAPSTONE chips are to be installed in PCMCIA electronic
boards and used for the PMSP program for the security of the
Defense Messaging System.

The CAPSTONE chip is big, complex and powerful.  Over 850
megabytes are required by the automated design system to define
the functions of the chip.  VLSI Technology is fabricating the
chip, and MYKOTRONX is designing and testing the chip.
                                

1.   What are the power requirements of the CAPSTONE chip?  Will
     they fit the power requirements of battery-operated, hand
     held devices?

     The CAPSTONE chip requires a 5 volt DC voltage source. 
     Power ratings are currently estimated at 3.5 milliamps per
     MHz, i.e. at 10 Mhz and 5 volt DC, power consumed is 175
     milliwatts.  These estimates will be refined as data are
     taken into the actual chips.  In comparison, the CLIPPER
     chip consumes approximately 150 milliwatts at 5 volts DC and
     10 MHz.  As you can see, both chips fall within the power
     requirements of hand held, battery-operated devices.

2.   Will the CAPSTONE chip incorporate the key escrow features
     of the CLIPPER chip?

     Yes, it will.

3.   When will CAPSTONE be announced and available?

     Prototypes of the CAPSTONE chip are due the end of this
     month.  We ask that you contact the manufacturer, Mykotronx
     Inc., for further information concerning the timetable for
     availability of CAPSTONE.

4.   Is the Department of Defense working now to incorporate
     CAPSTONE in the Pre-message Security Protocol?

     Yes

5.   Will CAPSTONE meet the design requirements of a PCMCIA card
     that combines voice and/or data communications with
     encryption capabilities?

     Yes

6.   Will CAPSTONE use the Digital Signature Standard?  What kind
     of key management scheme will be employed in the CAPSTONE
     chip?  Will CAPSTONE allow the use of RSA public-key
     encryption in conjunction with, or as an alternative to, the
     DSS?  If RSA is implemented on the CAPSTONE chip, will the
     key escrow feature function?

     CAPSTONE implements the Digital Signature Algorithm (DSA),
     proposed by NIST as a Federal Information Processing
     Standard (FIPS), to perform the digital signature functions. 
     Key management is handled by an algorithm based on a public-
     key exchange technique.  The CAPSTONE chip does not
     implement RSA.


4/30/93


---------------------------cap.txt--------------------------------
-- 
	Jim Gillogly
	Hevensday, 10 Thrimidge S.R. 1993, 21:13

From sci.crypt Mon May  3 12:06:45 1993
Xref: utcsri sci.crypt:16206 alt.privacy.clipper:291
Path: utcsri!utnut!cs.utexas.edu!usc!rand.org!jim
From: jim@rand.org (Jim Gillogly)
Newsgroups: sci.crypt,alt.privacy.clipper
Subject: NIST transcript: Raymond Kammer's 4/29 testimony to Markey Committee
Message-ID: <16750@rand.org>
Date: 1 May 93 21:16:54 GMT
Sender: news@rand.org
Organization: Banzai Institute
Lines: 421
Nntp-Posting-Host: mycroft.rand.org

The Secure Hash Algorithm signature for the following file is:

	49d65f54 5a98333f 66bde2a0 fd26f464 9e54b53d

---------------------------testim.txt--------------------------------




                            STATEMENT OF 

                          RAYMOND G. KAMMER

   ACTING DIRECTOR, NATIONAL INSTITUTE OF STANDARDS AND TECHNOLOGY

                             BEFORE THE

           SUBCOMMITTEE ON TELECOMMUNICATIONS AND FINANCE

                  COMMITTEE ON ENERGY AND COMMERCE

                           APRIL 29, 1993


Mr. Chairman and Members of the Subcommittee:


Good morning.  Thank you for inviting me to testify.  I am Raymond G.
Kammer, Acting Director of the National Institute of Standards and
Technology of the U.S. Department of Commerce.  Under the Computer
Security Act of 1987, NIST is responsible for the development of
standards for protecting unclassified government computer systems,
except those commonly known as Warner Amendment systems (as defined
in Title 10 USC 2315).  

NIST has a long-established program of developing computer security
guidelines and standards for federal agencies.  Many of these are
also used, on a voluntary basis, by the private sector. We have
published guidance on computer security training and awareness,
identification and authentication, open systems security, incident
response, cryptographic standards, trusted systems, and many other
facets of computer security.   

Today, however, I plan to address the following topics which I
believe are most directly germane to your invitation:

     *    The need for good information security technology to
          protect computer and telecommunications systems and
          networks;

     *    NIST's activities in telecommunications switch security;

     *    the planned recertification of the Data Encryption
          Standard;

     *    NIST's proposed Digital Signature Standard;


     *    the recent White House announcement of a new encryption
          technology, called the Clipper Chip; and

     *    the President's directive to review advanced
          telecommunications and encryption technology.


Need for Computer Security

Strong security technology is required in modern communications
systems and networks to protect sensitive and valuable information. 
Government agencies and private corporations depend upon the
integrity and availability of their communications system in order to
do business.  Computer viruses, network worms, hackers, and other
threats against our systems emphasize the importance of
telecommunications security.

Additionally, I have grown convinced, through strong anecdotal
evidence, most of it shared on a proprietary basis, of the growing
threat to American business from "economic espionage."  Much has been
reported in the press of the activities of foreign intelligence
services targeting American firms, and sharing their findings with
competing foreign firms.  I am convinced that American firms need
strong security, and in particular, strong cryptography, to protect
against such threats.  

More importantly, the Administration is committed to working with the
private sector to spur the development of a National Information
Infrastructure which will use new telecommunications and computer
technologies to give Americans unprecedented access to information. 
This infrastructure of high-speed networks ("information
superhighways") will transmit video, images, HDTV programming, and
huge data files as easily as today's telephone system transmits
voice.  Appropriate security techniques may at times be integrated
into such systems.  


Telecommunications Security

Federal telephone and computer networks depend upon reliable and
secure telecommunications capabilities, both of long-distance
carriers and local private-branch exchanges (PBXs).  To examine
security issues of telecommunications networks, including issues of
PBX security and telecommunications switch security, NIST is
currently setting up a Telecommunications Security Analysis Center. 
This Center will expand on initial research we have conducted on the
vulnerability of telecommunications switches.

Telecommunications switches are an integral part of the security of
the public switched network.  Security problems in switches can
result in serious problems such as toll fraud, unauthorized and
illegal eavesdropping, or the disabling of switches, which would
result in bringing down part of the public switched network.

NIST has been monitoring the growth of switch-related abuse and has
been analyzing switches to be able to address the types of crimes
that could be perpetrated in the future.  This work includes studying
the growing ease of perpetrating these crimes.  
There are several areas of concern:

     *    Toll fraud.  Current research indicates that the problem is
          well over $1 billion per year.  While not all toll-fraud is
          accomplished technically, telecommunications switches are
          vulnerable to hackers who can gain unauthorized access to
          the use of long-distance services.  This is a particular
          vulnerability to the owners of PBXs, who can lose
          considerable sums if their systems are inadequately
          protected.  Good system configuration control is one good
          security measure we are examining.  

     *    Network Availability.  There have been no cases of
          intruders purposefully bringing down parts of the public
          switched network.  The President's National Security
          Telecommunications Advisory Committee (NSTAC) concluded
          that "Until there is confidence that strong comprehensive
          computer security programs are in place, the industry
          should assume that a motivated and resourceful adversary in
          one concerted manipulation of the network software could
          degrade at least portions of the PSN."

     *    Unauthorized Eavesdropping.  If unauthorized access is
          gained to telecommunications switches, which is really just
          a computer that switches phone calls, a hacker can gain
          access to the contents of phone conversations and other
          information transmitted through a switch.  This
          unauthorized eavesdropping can be either "real-time," as
          the conversations occur, or the intruders can arrange to
          have the conversations and data electronically transmitted
          to another telecommunications switch or computer for later
          analysis.

The purpose of the Telecommunications Security Analysis Center will
be to:

     *    Develop tools and techniques to analyze very complex
          systems such as switches;

     *    Provide informal security guidance and advice to federal
          agencies on procurement of telecommunications switches; 

     *    Perform security analyses of commercial switches in both
          laboratory and real world environments; and

     *    Develop standards and guidance for use in securing switches
          and in building more secure switches, while providing for
          the legitimate needs of law enforcement, under proper court
          order, to protect the American public.

As we pursue this research, we will be pleased to provide additional
information on our findings to the Committee.  


The Data Encryption Standard

The current government standard for the encryption of data is known
as the Data Encryption Standard (DES), which was first approved as a
Federal Information Processing Standard in 1977.  DES is widely used
within both the government and the private sector for the protection
of sensitive information, including financial information, medical
information, and Privacy Act data.  DES represents a proven twenty
year old technology with DES products available in the marketplace
for the last 15 years.  

Last year, NIST formally solicited comments on the recertification of
DES.  After reviewing those comments, and the other technical inputs
that I have received, I plan to recommend to the Secretary of
Commerce that he recertify DES for another five years.  I also plan
to suggest to the Secretary that when we announce the recertification
we state our intention to consider alternatives to it over the next
five years.  By putting that announcement on the table, we hope to
give people an opportunity to comment on orderly technological
transitions.  In the meantime, we need to consider the large
installed base of systems that rely upon this proven standard.  


NIST's Proposed Digital Signature Standard

The majority of the cryptographic-based security requirements in
computer and network systems involve the need for strong
identification and authentication.  One method which we believe holds
a capacity for significant improvements in security and also cost-
savings by automating paper processes is the use of digital
signatures.  

A digital signature is a computer-based method of "sealing" an
electronic message in such a way that its contents cannot be changed
or forged without detection and that the identity of the originator
of the communication can be verified.  The digital signature for a
message is simply a code, or large number, that is unique for each
message and each message originator (within a very high, known
probability).  A digital signature is computed for a message by
computing a representation of the message (called a "hash" code) and
a cryptographic process that uses a key associated with the message
originator.  Any party with access to the public key, message, and
signature can verify the signature.  If the signature verifies
correctly, the receiver (or any other party) has confidence that the
message was signed by the owner of the public key and the message has
not been altered after it was signed.  

In 1991, NIST proposed a draft Digital Signature Standard (DSS).  We
received about 130 public comments.  We have been reviewing these
comments and revising the standard as appropriate to respond to those
comments.  Additionally, we have examined and are currently dealing
with two claims of patent infringement, which we believe will be
successfully resolved in the not-too-distant future.  Once this
occurs, the Secretary of Commerce needs to decide to approve the DSS
as a Federal Information Processing Standard.  It will then
complement the Secure Hash Standard which was recently approved by
the Secretary of Commerce as Federal Information Processing Standard
180.  

We anticipate that the DSS will find many uses within government
computer systems and networks.  For example, DSS could be employed in
electronic funds transfer systems.  Suppose an electronic funds
transfer message is generated to request that $100.00 be transferred
from one account to another. If the message was passed over an
unprotected network, it may be possible for an adversary to alter the
message and request a transfer of $1000.00.  Without additional
information, it would be difficult, if not impossible, for the
receiver to know the message had been altered.  However if the DSS
was used to sign the message before it was sent, the receiver would
know the message had been altered because it would not verify
correctly.  The transfer request could then be denied.

DSS could be employed in a variety of business applications requiring
a replacement of handwritten signatures.  One example is Electronic
Data Interchange (EDI).  EDI is the computer-to-computer interchange
of messages representing business documents.  In the federal
government, this technology is being used to procure goods and
services.  Digital signatures could be used to replace handwritten
signatures in these EDI transactions.  For instance, contracts
between the government and its vendors could be negotiated
electronically.  A government procurement official could post an
electronically signed message requesting bids for office supplies. 
Vendors wishing to respond to the request may first verify the
message before they respond.  This assures that the contents of the
message have not been altered and that the request was signed by a
legitimate procurement official.  After verifying the bid request,
the vendor could generate and sign an electronic bid.  Upon receiving
the bid, the procurement official could verify that the vendor's bid
was not altered after it was signed.  If the bid is accepted, the
electronic message could be passed to a contracting office to
negotiate the final terms of the contract.  The final contract could
be digitally signed by both the contracting office and the vendor. 
If a dispute arose at some later time, the contents of contract and
the associated signatures could be verified by a third party. 

DSS is also likely to find widespread applications in the health care
field.  It might be used to sign digital images, for example, to
assure that they remain safe against unauthorized modifications.

DSS could also be useful in the distribution of software.  A digital
signature could be applied to software after it has been validated
and approved for distribution.  Before installing the software on a
computer, the signature could be verified to be sure no unauthorized
changes (such as the addition of a virus) have been made.  The
digital signature could be verified periodically to ensure the
integrity of the software.  

In database applications, the integrity of information stored in the
database is often essential.  DSS could be employed in a variety of
database applications to provide integrity.  For example, information
could be signed when it was entered into the database.  To maintain
integrity, the system could also require that all updates or
modifications to the information be signed.  Before signed
information was viewed by a user, the signature could be verified. 
If the signature verified correctly, the user would know the
information was not altered by an unauthorized party.  The system
could also include signatures in the audit information to provide a
record of users who modified the information.    

The DSS can also be used in conjunction with more secure
identification and authentication systems, for the protection of
access to both computer and telecommunication systems. 


A New Encryption Technology:  The Clipper Chip

Approximately two weeks ago, the White House announced our intention,
based on a new encryption technology, the Clipper Chip, to initiate a
voluntary program to improve the security and privacy of telephone
communications while meeting the legitimate needs of law enforcement. 

This initiative will involve the creation of new products to
accelerate the development and use of advanced and secure
telecommunications networks and wireless communications links - the
security of the very systems you are examining here today.

Sophisticated encryption technology, including the DES, has been used
for years to protect electronic funds transfer.  It is now being used
to protect electronic mail and computer files.  While encryption
technology can help Americans protect business secrets and the
unauthorized release of personal information, it also can be used by
terrorists, drug dealers, and other criminals.


A state-of-the-art microcircuit, the "Clipper Chip," has been
developed by government engineers.  The chip represents a new
approach to encryption technology.  It can be used in new, relatively
inexpensive encryption devices that can be attached to an ordinary
telephone.  It scrambles telephone communications using an encryption
algorithm that is more powerful than many in commercial use today. 
The Clipper algorithm with an 80 bit long cryptographic key is
approximately 16 million times stronger than DES.  It would take a
CRAY YMP over 200 years to solve one DES key.  It would take the same
machine over a billion years to solve one Clipper Chip key.

This new technology offers opportunities for companies to protect
proprietary information, protect the privacy of personal phone
conversations and prevent unauthorized release of data transmitted
electronically.  At the same time this technology preserves the
ability of federal, state and local law enforcement agencies to
intercept lawfully the phone conversations of criminals.   

Protection of confidentiality of information is of critical concern
to the nation.  So too is the ability of law enforcement to provide
safe streets and neighborhoods.  Americans demand the very best in
law enforcement - at the federal, state and local level.  Citizens
insist upon a quick response to terrorist threats, organized crime,
and drug dealers, while preserving our Constitutional rights.  Past
experience clearly shows that one critical technology successfully
used to prosecute organized crime is the use of court-authorized
wiretaps.  Unquestionably, these lawful electronic intercepts have
saved lives and been critical to bringing criminals to justice.  The
"Clipper Chip" is also a powerful tool which will be used by law
enforcement to protect its own sensitive communications from illicit
criminal monitoring.

A "key-escrow" system is envisioned that would ensure that the
"Clipper Chip" is used to protect the privacy of law-abiding
Americans.  Each device containing the chip will have two unique
"keys," numbers that will be needed by authorized government agencies
to decode messages encoded by the device.  When the device is
manufactured, the two keys would be deposited separately in two "key-
escrow" data bases established by the Attorney General.  Access to
these keys would be limited to government officials with legal
authorization to conduct a wiretap.  

The President has asked the Attorney General to make arrangements
with appropriate entities who would hold the keys for the key-escrow
microcircuits installed in communications equipment.  I understand
that the Attorney General is currently studying these procedures and
options for who will serve as the key escrow holders.  

Since the announcement from the White House, I have stressed that the
"Clipper Chip" technology provides law enforcement with no new
authorities to access the content of the private conversations of
Americans.  Also, some have claimed that there is a hidden trapdoor
in the chip or the algorithm.  I cannot state it more simply: no
trapdoor exists.  

The chip is an important step in addressing the problem of
encryption's dual-edge sword:  encryption helps to protect the
privacy of individuals and industry, but it also can shield criminals
and terrorists.  We need the "Clipper Chip" and other approaches that
can both provide law-abiding citizens with access to the encryption
they need and prevent criminals from using it to hide their illegal
activities.  


Presidential Directive for Advanced Telecommunications and Encryption
Review

In order to assess technology trends and explore new approaches and
technologies (like the key-escrow system), the President has directed
government agencies to develop a comprehensive policy on encryption
and advanced telecommunications technology that accommodates:

     *    the privacy of our citizens, including the need to employ
          voice or data encryption for business purposes;

     *    the ability of authorized officials to access telephone
          calls and data, under proper court or other legal order,
          when necessary to protect our citizens;

     *    the effective and timely use of the most modern technology
          to build the National Information Infrastructure needed to
          promote economic growth and the competitiveness of American
          industry in the global marketplace; and 

     *    the need of U.S. companies to manufacture and export high
          technology products.

The President has directed early and frequent consultations with
affected industries, the Congress and groups that advocate the
privacy rights of individuals as policy options are developed.

I anticipate being a member of the governmental review panel which
will study this issue.

I will again stress what we have stated previously.  Encryption
technology will play an increasingly important role in future network
infrastructures and the Federal Government must act quickly to
develop consistent, comprehensive policies regarding its use.  The
Administration is committed to policies that protect all Americans'
right to privacy while also protecting them from those who break the
law.

Thank you Mr. Chairman, I would be pleased to answer any questions.  
---------------------------testim.txt--------------------------------
-- 
	Jim Gillogly
	Hevensday, 10 Thrimidge S.R. 1993, 21:16

From comp.risks Mon May 17 20:50:16 1993
Date: Wed, 12 May 93 10:20:42 EDT
From: denning@cs.cosc.georgetown.edu (Dorothy Denning)
Subject: Re: New NIST/NSA Revelations

David Sobel, CPSR Legal Council, wrote in RISKS DIGEST 14.59:

	The proposed DSS was widely criticized within the computer
	industry for its perceived weak security and inferiority to an
	existing authentication technology known as the RSA algorithm.
	Many observers have speculated that the RSA technique was
	disfavored by NSA because it was, in fact, more secure than the
	NSA-proposed algorithm and because the RSA technique could also
	be used to encrypt data very securely.

This is terribly misleading. NIST issued the DSS proposal along with a public
call for comments as part of their normal practice with proposed standards.
The community responded, and NIST promptly addressed the security concerns.
Among other things, the DSS now accommodates longer keys (up to 1024 bits).
As a result of the revisions, the DSS is now considered to be just as strong
as RSA.

Dorothy Denning

From comp.risks Mon May 17 20:50:39 1993
Date: Thu, 13 May 1993 at 14h15
From: whitfield.diffie@eng.sun.com
Subject: Testimony to Boucher's House Science Subcommittee, 11 May 1993

	The Impact of a Secret Cryptographic Standard
	  on Encryption, Privacy, Law Enforcement
			and Technology

			Whitfield Diffie
			Sun Microsystems
			  11 May 1993

    I'd like to begin by expressing my thanks to Congressman Boucher, the
other members of the committee, and the committee staff for giving us the
opportunity to appear before the committee and express our views.

    On Friday, the 16th of April, a sweeping new proposal for both the
promotion and control of cryptography was made public on the front page of the
New York Times and in press releases from the White House and other
organizations.

    This proposal was to adopt a new cryptographic system as a federal
standard, but at the same time to keep the system's functioning secret.  The
standard would call for the use of a tamper resistant chip, called Clipper,
and embody a `back door' that will allow the government to decrypt the traffic
for law enforcement and national security purposes.

    So far, available information about the chip is minimal and to some extent
contradictory, but the essence appears to be this: When a Clipper chip
prepares to encrypt a message, it generates a short preliminary signal rather
candidly entitled the Law Enforcement Exploitation Field.  Before another
Clipper chip will decrypt the message, this signal must be fed into it.  The
Law Enforcement Exploitation Field or LEEF is tied to the key in use and the
two must match for decryption to be successful.  The LEEF in turn, when
decrypted by a government held key that is unique to the chip, will reveal the
key used to encrypt the message.

    The effect is very much like that of the little keyhole in the back of the
combination locks used on the lockers of school children.  The children open
the locks with the combinations, which is supposed to keep the other children
out, but the teachers can always look in the lockers by using the key.

    In the month that has elapsed since the announcement, we have studied the
Clipper chip proposal as carefully as the available information permits.  We
conclude that such a proposal is at best premature and at worst will have a
damaging effect on both business security and civil rights without making any
improvement in law enforcement.

    To give you some idea of the importance of the issues this raises, I'd
like to suggest that you think about what are the most essential security
mechanisms in your daily life and work.  I believe you will realize that the
most important things any of you ever do by way of security have nothing to do
with guards, fences, badges, or safes.  Far and away the most important
element of your security is that you recognize your family, your friends, and
your colleagues.  Probably second to that is that you sign your signature,
which provides the people to whom you give letters, checks, or documents, with
a way of proving to third parties that you have said or promised something.
Finally you engage in private conversations, saying things to your loved ones,
your friends, or your staff that you do not wish to be overheard by anyone
else.

    These three mechanisms lean heavily on the physical: face to face contact
between people or the exchange of written messages.  At this moment in
history, however, we are transferring our medium of social interaction from
the physical to the electronic at a pace limited only by the development of
our technology.  Many of us spend half the day on the telephone talking to
people we may visit in person at most a few times a year and the other half
exchanging electronic mail with people we never meet in person.

    Communication security has traditionally been seen as an arcane security
technology of real concern only to the military and perhaps the banks and oil
companies.  Viewed in light of the observations above, however, it is revealed
as nothing less than the transplantation of fundamental social mechanisms from
the world of face to face meetings and pen and ink communication into a world
of electronic mail, video conferences, electronic funds transfers, electronic
data interchange, and, in the not too distant future, digital money and
electronic voting.

    No right of private conversation was enumerated in the constitution.  I
don't suppose it occurred to anyone at the time that it could be prevented.
Now, however, we are on the verge of a world in which electronic communication
is both so good and so inexpensive that intimate business and personal
relationships will flourish between parties who can at most occasionally
afford the luxury of traveling to visit each other.  If we do not accept the
right of these people to protect the privacy of their communication, we take a
long step in the direction of a world in which privacy will belong only to the
rich.

    The import of this is clear: The decisions we make about communication
security today will determine the kind of society we live in tomorrow.


    The objective of the administration's proposal can be simply
stated:

	They want to provide a high level of security to their
	friends, while being sure that the equipment cannot be
	used to prevent them from spying on their enemies.

Within a command society like the military, a mechanism of this sort that
allows soldiers' communications to be protected from the enemy, but not
necessarily from the Inspector General, is an entirely natural objective.  Its
imposition on a free society, however, is quite another matter.

    Let us begin by examining the monitoring requirement and ask both whether
it is essential to future law enforcement and what measures would be required
to make it work as planned.

    Eavesdropping, as its name reminds us, is not a new phenomenon.  But in
spite of the fact that police and spies have been doing it for a long time, it
has acquired a whole new dimension since the invention of the telegraph.
Prior to electronic communication, it was a hit or miss affair.  Postal
services as we know them today are a fairly new phenomenon and messages were
carried by a variety of couriers, travelers, and merchants.  Sensitive
messages in particular, did not necessarily go by standardized channels.  Paul
Revere, who is generally remembered for only one short ride, was the American
Revolution's courier, traveling routinely from Boston to Philadelphia with his
saddle bags full of political broadsides.


    Even when a letter was intercepted, opened, and read, there was no
guarantee, despite some people's great skill with flaps and seals, that the
victim would not notice the intrusion.

    The development of the telephone, telegraph, and radio have given the
spies a systematic way of intercepting messages.  The telephone provides a
means of communication so effective and convenient that even people who are
aware of the danger routinely put aside their caution and use it to convey
sensitive information.  Digital switching has helped eavesdroppers immensely
in automating their activities and made it possible for them to do their
listening a long way from the target with negligible chance of detection.

    Police work was not born with the invention of wiretapping and at present
the significance of wiretaps as an investigative tool is quite limited.  Even
if their phone calls were perfectly secure, criminals would still be
vulnerable to bugs in their offices, body wires on agents, betrayal by
co-conspirators who saw a brighter future in cooperating with the police, and
ordinary forensic inquiry.

    Moreover, cryptography, even without intentional back doors, will no more
guarantee that a criminal's communications are secure than the Enigma
guaranteed that German communications were secure in World War II.
Traditionally, the richest source of success in communications intelligence is
the ubiquity of busts: failures to use the equipment correctly.

    Even if the best cryptographic equipment we know how to build is available
to them, criminal communications will only be secure to the degree that the
criminals energetically pursue that goal.  The question thus becomes, ``If
criminals energetically pursue secure communications, will a government
standard with a built in inspection port, stop them.

    It goes without saying that unless unapproved cryptography is outlawed,
and probably even if it is, users bent on not having their communications read
by the state will implement their own encryption.  If this requires them to
forgo a broad variety of approved products, it will be an expensive route
taken only by the dedicated, but this sacrifice does not appear to be
necessary.

    The law enforcement function of the Clipper system, as it has been
described, is not difficult to bypass.  Users who have faith in the secret
Skipjack algorithm and merely want to protect themselves from compromise via
the Law Enforcement Exploitation Field, need only encrypt that one item at the
start of transmission.  In many systems, this would require very small changes
to supporting programs already present.  This makes it likely that if Clipper
chips become as freely available as has been suggested, many products will
employ them in ways that defeat a major objective of the plan.

    What then is the alternative?  In order to guarantee that the government
can always read Clipper traffic when it feels the need, the construction of
equipment will have to be carefully controlled to prevent non-conforming
implementations.  A major incentive that has been cited for industry to
implement products using the new standard is that these will be required for
communication with the government.  If this strategy is successful, it is a
club that few manufacturers will be able to resist.  The program therefore
threatens to bring communications manufacturers under an all encompassing
regulatory regime.

    It is noteworthy that such a regime already exists to govern the
manufacture of equipment designed to protect `unclassified but sensitive'
government information, the application for which Clipper is to be mandated.
The program, called the Type II Commercial COMSEC Endorsement Program,
requires facility clearances, memoranda of agreement with NSA, and access to
secret `Functional Security Requirements Specifications.'  Under this program
member companies submit designs to NSA and refine them in an iterative process
before they are approved for manufacture.

    The rationale for this onerous procedure has always been, and with much
justification, that even though these manufacturers build equipment around
approved tamper resistant modules analogous to the Clipper chip, the equipment
must be carefully vetted to assure that it provides adequate security.  One
requirement that would likely be imposed on conforming Clipper applications is
that they offer no alternative or additional encryption mechanisms.

    Beyond the damaging effects that such regulation would have on innovation
in the communications and computer industries, we must also consider the fact
that the public cryptographic community has been the principal source of
innovation in cryptography.  Despite NSA's undocumented claim to have
discovered public key cryptography, evidence suggests that, although they may
have been aware of the mathematics, they entirely failed to understand the
significance.  The fact that public key is now widely used in government as
well as commercial cryptographic equipment is a consequence of the public
community being there to show the way.

    Farsightedness continues to characterize public research in cryptography,
with steady progress toward acceptable schemes for digital money, electronic
voting, distributed contract negotiation, and other elements of the computer
mediated infrastructure of the future.

    Even in the absence of a draconian regulatory framework, the effect of a
secret standard, available only in a tamper resistant chip, will be a profound
increase in the prices of many computing devices.  Cryptography is often
embodied in microcode, mingled on chips with other functions, or implemented
in dedicated, but standard, microprocessors at a tiny fraction of the tens of
dollars per chip that Clipper is predicted to cost.

    What will be the effect of giving one or a small number of companies a
monopoly on tamper resistant parts?  Will there come a time, as occurred with
DES, when NSA wants the standard changed even though industry still finds it
adequate for many applications?  If that occurs will industry have any
recourse but to do what it is told?  And who will pay for the conversion?

    One of the little noticed aspects of this proposal is the arrival of
tamper resistant chips in the commercial arena.  Is this tamper resistant part
merely the precursor to many?  Will the open competition to improve
semiconductor computing that has characterized the past twenty-years give way
to an era of trade secrecy?  Is it perhaps tamper resistance technology rather
than cryptography that should be regulated?


    Recent years have seen a succession of technological developments that
diminish the privacy available to the individual.  Cameras watch us in the
stores, x-ray machines search us at the airport, magnetometers look to see
that we are not stealing from the merchants, and databases record our actions
and transactions.  Among the gems of this invasion is the British Rafter
technology that enables observers to determine what station a radio or TV is
receiving.  Except for the continuing but ineffectual controversy surrounding
databases, these technologies flourish without so much as talk of regulation.


    Cryptography is perhaps alone in its promise to give us more privacy
rather than less, but here we are told that we should forgo this technical
benefit and accept a solution in which the government will retain the power to
intercept our ever more valuable and intimate communications and will allow
that power to be limited only by policy.


    In discussion of the FBI's Digital Telephony Proposal --- which would have
required communication providers, at great expense to themselves, to build
eavesdropping into their switches --- it was continually emphasized that
wiretaps were an exceptional investigative measure only authorized when other
measures had failed.  Absent was any sense that were the country to make the
proposed quarter billion dollar inventment in intercept equipment, courts
could hardly fail to accept the police argument that a wiretap would save the
people thousands of dollars over other options.  As Don Cotter, at one time
director of Sandia National Laboratories, said in respect to military
strategy: ``Hardware makes policy.''

    Law, technology, and economics are three central elements of society that
must all be kept in harmony if freedom is to be secure.  An essential element
of that freedom is the right to privacy, a right that cannot be expected to
stand against unremitting technological attack.  Where technology has the
capacity to support individual rights, we must enlist that support rather than
rejecting it on the grounds that rights can be abused by criminals.  If we put
the desires of the police ahead of the rights of the citizens often enough, we
will shortly find that we are living in police state.  We must instead assure
that the rights recognized by law are supported rather than undermined by
technology.


    At NSA they believe in something they call `security in depth.'  Their
most valuable secret may lie encrypted on a tamper resistant chip, inside a
safe, within a locked office, in a guarded building, surrounded by barbed
wire, on a military base.  I submit to you that the most valuable secret in
the world is the secret of democracy; that technology and policy should go
hand in hand in guarding that secret; that it must be protected by security in
depth.


			Recommendations

    There is a crying need for improved security in American communication and
computing equipment and the Administration is largely correct when it blames
the problem on a lack of standards.  One essential standard that is missing is
a more secure conventional algorithm to replace DES, an area of cryptography
in which NSA's expertise is probably second to none.

    I urge the committee to take what is good in the
Administration's proposal and reject what is bad. \begdis

      o The Skipjack algorithm and every other aspect of this proposal
	should be made public, not only to expose them to public
	scrutiny but to guarantee that once made available as
	standards they will not be prematurely withdrawn.
	Configuration control techniques pioneered by the public
	community can be used to verify that some pieces of equipment
	conform to government standards stricter than the commercial
	where that is appropriate.

      o I likewise urge the committee to recognize that the right
	to private conversation must not be sacrificed as we move
	into a telecommunicated world and reject the Law Enforcement
	Exploitation Function and the draconian regulation that would
	necessarily come with it.

      o I further urge the committee to press the Administration
	to accept the need for a sound international security
	technology appropriate to the increasingly international
	character of the world's economy.

From sci.crypt Sat Oct  2 21:40:49 1993
Xref: utcsri sci.crypt:20003 alt.privacy.clipper:1579 comp.org.eff.talk:20765
Path: utcsri!utnut!torn!howland.reston.ans.net!vixen.cso.uiuc.edu!sdd.hp.com!spool.mu.edu!nigel.msen.com!yale.edu!cmcl2!panix!not-for-mail
From: clays@panix.com (Clay Shirky)
Newsgroups: sci.crypt,alt.privacy.clipper,comp.org.eff.talk
Subject: SEA's Clipper Comment
Date: 1 Oct 1993 21:39:54 -0400
Organization: PANIX Public Access Internet and Unix, NYC
Lines: 157
Distribution: inet
Message-ID: <28im5a$7tn@panix.com>
NNTP-Posting-Host: panix.com

 
To:						September 28, 1993
 
Director, Computer Systems Laboratory
ATTN: Proposed FIPS for Escrowed Encryption Standard
Technology Building, Room B-154
National Institute of Standards and Technology
Gaithersburg, MD 20899
 
~From:
 
The Society for Electronic Access
P.O. Box 3131
Church Street Station
New York, New York 10008-3131
Voice telephone: (212) 592-3801
Internet e-mail: sea@sea.org
 
 
The Society for Electronic Access's response to the call for Public
Comment contained in:
 
FEDERAL REGISTER
VOL. 58, No. 145
DEPARTMENT OF COMMERCE (DOC)
National Institute of Standards and Technology (NIST)
 
Docket No. 930659-3159
RIN 0693-AB19
 
A Proposed Federal Information Processing Standard
for an Escrowed Encryption Standard (EES)  58 FR 40791
 
 
The Society for Electronic Access would like to register its concern
with the proposed implementation of the Clipper Chip/Skipjack
Algorithm key escrow scheme. These related protocols will be referred
to as a group as "Clipper" in the body of this letter. While we do not
object to classification of Federal Information Processing Standards
(FIPS) for encrypting information vital to national security, we
believe that a system for transfering sensitive but unclassified
information used by civilian Government offices, corporations and
private citizens should be open to public review.
 
NIST, by calling for public comment, would seem to be inviting just
such a review. However, NIST will not let the public examine either
the Clipper Chip or the Skipjack algorithm, has not commissioned
studies concerning either the cost or impact of the Clipper plan, and
will not let the public examine studies undertaken by the NSA on the
issue of escrow agency security. Furthermore, since an escrow scheme
requires a trusted third party while in the proposed scheme NIST
itself is one of the key holders, we feel that NIST will not be able
to review public comment as a disinterested party. Under these
circumstances we feel a call for public comment is hampered.
 
Our concerns with Clipper fall into four broad categories: it is
unecessary; the present Administration has promoted its "voluntary"
use by the public without abjuring the possibility of outlawing
competing systems; the key escrow scheme is not a true escrow; and
attempts to gather information necessary for a public assessment of
Clipper have met obstacles raised by the Government. These concerns
are enumerated below.
 
1) Clipper is unnecessary.
 
Clipper is not a response to any public need. In a reply to questions
about Clipper from RSA, NIST states that "[the decisions made about
Clipper] offer a balance among the various needs of corporations and
citizens for improved security and privacy and of the law enforcement
community for continued legal access to the communications of
criminals."
 
Corporations and citizens can already obtain "improved security and
privacy" from a wide variety of sources, as there are several
commercially available encryption standards currently on the market.
Since the public already has what NIST says it needs, it follows that
the only reason for Clipper to exist is the addition of the Law
Enforcement Access Field (LEAF), which allows the government to
decrypt all messages encrypted by Clipper. Furthermore, the phrase
"legal access to the communications of criminals" is particularly
chilling, as it demonstrates a lack of sensitivity to the rule of law.
Neither the FBI nor any other agency entrusted with surveillance
activities can determine in advance of a trial whether a citizen is a
criminal or not. We believe NIST's attitude belies a misunderstanding
of the rights of American citizens.
 
2) The Administration has promoted its "voluntary" use by the public
without abjuring the possibility of outlawing competing systems.
 
NIST has consistently maintained that outside Federal use, adoption of
Clipper by citizens and individuals will be strictly voluntary. When
pressed on this point by RSA, NIST responded "There are no current
plans to legislate the use of Clipper. Clipper will be a government
standard, which can be - and likely will be - used voluntarily by the
private sector. The option for legislation may be examined during the
policy review ordered by the President." We are concerned that asking
for public approval of Clipper as one of several encryption
possibilities open to the public while the possibility of outlawing
all other options still exists will prevent legitimate assessment of
Clipper's ultimate impact.
 
Furthermore, many organizations from small companies to multi-national
corporations have invested in alternative encryption schemes like RSA,
Diffie-Hellman and IDEA, many of them based solely on software and
therefore incompatible with Clipper even as a retro-fit. To outlaw
these schemes would cause them an enormous fiscal burden, as well as
mandating a US-only standard incompatible with the protocols chosen by
many international standard-setting organizations, thereby reducing
the competitiveness of US companies doing business in the
international arena.
 
We feel that unless the present administration publicly abjures the
possibility of banning alternate methods of encryption, no true
analysis of Clipper is possible.
 
3) The escrow scheme does not use true escrow agencies.
 
This scheme has been publicly promoted as an escrow scheme, but the
core of any functioning escrow scheme is the prescence of a trusted
third party (or in this case two trusted third parties.) We are
concerned with the idea that  Governmental agencies will hold these
positions, as they are not truly third parties. In addition, we are
particularly concerned that the same agency is responsible for
reviewing Public Comment on the proposed encyrption scheme and
occupying the position of one of the two key holders. We are not
convinced that NIST can fulfill both roles without conflict of
interest.
 
4) Attempts to gain information necessary for public review of Clipper
have met obstacles raised by the Government.
 
The National Security Agency has asked for an increased period of time
to respond to FOIA requests for information about Clipper, from 10
business days to one year. Ten business days falls within the Public
Comment period. One year does not. We feel that if NSA requires this
period of time to comply with requests for information that the period
for public analysis and comment should also be extended for an equal
period of time.
 
Based on these concerns, the Society for Electronic Access feels that
NIST should not implement the Clipper plan without comissioning
studies on the cost and impact of implementing Clipper, without
providing real assurances that Clipper is not a prelude to outlawing
other encryption schemes, without an implementation of an escrow
scheme in which NIST does not both review and participate in the proposal,
and without NSA complying with FOIA requests outstanding from before
September 28, 1993.
 
Respectfully submitted,
 
 
 
 
Clay Shirky
Board Member,
Society for Electronic Access


From comp.org.eff.news Sun Feb  6 16:55:26 1994
Xref: utcsri alt.activism:61179 alt.politics.datahighway:1350 alt.privacy:10877 alt.privacy.clipper:2114 alt.security.pgp:8523 alt.wired:3792 comp.org.eff.news:215 comp.org.eff.talk:25802 talk.politics.crypto:2481
Path: utcsri!utnut!torn!howland.reston.ans.net!cs.utexas.edu!not-for-mail
From: mech@eff.org (Stanton McCandlish)
Newsgroups: alt.activism,alt.politics.datahighway,alt.privacy,alt.privacy.clipper,alt.security.pgp,alt.wired,comp.org.eff.news,comp.org.eff.talk,talk.politics.crypto
Subject: Alert--Admin. names escrow agents, no compromise on Clipper - 7 files
Date: 4 Feb 1994 18:21:05 -0600
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EFF Press Release            04/04/94             * DISTRIBUTE WIDELY *

At two briefings, Feb. 4, 1994, the Clinton Administration and various
agencies gave statements before a Congressional committee, and later
representatives of civil liberties organizations, industry spokespersons
and privacy advocates.  The Electronic Frontier Foundation's position,
based on what we have seen and heard from the Administration today, is
that the White House is set on a course that pursues Cold War national
security and law enforcement interests to the detriment of individual
privacy and civil liberties.

The news is grim.  The Administration is:

 * not backing down on Clipper
 * not backing down on key escrow
 * not backing down on selection of escrow agents
 * already adamant on escrowed key access procedures
 * not willing to elminate ITAR restrictions
 * hiding behind exaggerated threats of "drug dealers" and "terrorists"

The material released to the industry and advocacy version of the briefing
have been placed online at ftp.eff.org (long before their online
availability from goverment access sites, one might add).  See below for
specific details.

No information regarding the Congressional committee version of the briefing
has been announced.  EFF Director Jerry Berman, who attended the private
sector meeting, reported the following:

"The White House and other officials briefed industry on its Clipper chip
and encryption review. While the review is not yet complete, they have
reached several policy conclusions.  First, Clipper will be proposed as
a new Federal Information Processing Standard (FIPS) next Wednesday. [Feb.
9]  It will be "vountary" for government agencies and the private sector
to use. They are actively asking other vendors to jump in to make the
market a Clipper market. Export licensing processes will be speeded up but
export restrictions will not be lifted in the interests of national
security. The reason was stated bluntly at the briefing : to frustrate
competition with clipper by other powerful encryption schemes by making
them  difficult to market, and to "prevent" strong encryption from leaving
the country thus supposedly making the job of law enforcement and
intelligence more difficult.  Again in the interest of national security. Of
course, Clipper will be exportable but they would not comment on how other
governments will view this.  Treasury and NIST will be the escrow agents
and Justice asserted that there was no necessity for legislation to
implement the escrow procedures.

"I asked if there would be a report to explain the rationale for choosing
these results - we have no explanation of the Administration's thinking, or
any brief in support of the results. They replied that there would be no
report because they have been unable to write one, due to the complexity of
the issue.

"One Administation spokesperson said this was the Bosnia of
Telecommunications. I asked, if this was so, how, in the absense of some
policy explanation, could we know if our policy here will be as successful
as our policy in Bosnia?"

The announcements, authorization procedures for release of escrowed keys,
and q-and-a documents from the private sector briefing are online at EFF.

They are:

"Statement of the [White House] Press Secretary" [White House]
file://ftp.eff.org/pub/EFF/Policy/Crypto/wh_press_secy.statement

"Statement of the Vice President" [very short - WH]
file://ftp.eff.org/pub/EFF/Policy/Crypto/gore_crypto.statement

"Attorney General Makes Key Escrow Encryption Announcements" [Dept. of Just.]
file://ftp.eff.org/pub/EFF/Policy/Crypto/reno_key_escrow.statement

"Authorization Procedures for Release pf Emcryption Key Components in
Conjunction with Intercepts Pursuant to Title III/State Statutes/FISA"
[3 docs. in one file - DoJ]
file://ftp.eff.org/pub/EFF/Policy/Crypto/doj_escrow_intercept.rules

"Working Group on Data Security" [WH]
file://ftp.eff.org/pub/EFF/Policy/Crypto/interagency_workgroup.announce

"Statement of Dr. Martha Harris Dep. Asst. Secy. of State for Polit.-Mil.
Affairs: Encryption - Export Control Reform" [Dept. of State]
file://ftp.eff.org/pub/EFF/Policy/Crypto/harris_export.statement

"Questions and Answers about the Clinton Administration's Encryption 
Policy" [WH]
file://ftp.eff.org/pub/EFF/Policy/Crypto/wh_crypto.q-a

These files are available via anonymous ftp, or via WWW at:
http://www.eff.org/ in the "EFF ftp site" menu off the front page.

Gopher access:
gopher://gopher.eff.org/
Look in "EFF Files"/"Papers and Testimony"/"Crypto"

All 7 of these documents will be posted widely on the net immediately
following this notice. 


Contacts:

Digital Privacy: Jerry Berman, Exec. Director <jberman@eff.org>
                 Daniel J. Weitzner, Sr. Staff Counsel <djw@eff.org>
Archives: Stanton McCandlish, Online Activist <mech@eff.org>
General EFF Information: info@eff.org
 
-- 
Stanton McCandlish * mech@eff.org * Electronic Frontier Found. OnlineActivist
F O R   M O R E   I N F O,    E - M A I L    T O:     I N F O @ E F F . O R G 
O  P  E  N    P  L  A  T  F  O  R  M     O  N  L  I  N  E    R  I  G  H  T  S
V  I   R   T   U   A   L   C  U   L   T   U   R   E      C  R   Y   P   T   O


-- 
Stanton McCandlish * mech@eff.org * Electronic Frontier Found. OnlineActivist
F O R   M O R E   I N F O,    E - M A I L    T O:     I N F O @ E F F . O R G 
O  P  E  N    P  L  A  T  F  O  R  M     O  N  L  I  N  E    R  I  G  H  T  S
V  I   R   T   U   A   L   C  U   L   T   U   R   E      C  R   Y   P   T   O

From sci.crypt Sun Feb  6 18:13:28 1994
Xref: utcsri sci.crypt:23266 talk.politics.crypto:2447 comp.org.eff.talk:25681 alt.privacy.clipper:2084
Newsgroups: sci.crypt,talk.politics.crypto,comp.org.eff.talk,alt.privacy.clipper
Path: utcsri!utnut!cs.utexas.edu!sdd.hp.com!col.hp.com!csn!att-in!att-out!cbnewsj!merckx!mab
From: mab@research.att.com (Matt Blaze)
Subject: Notes on key escrow meeting with NSA
Organization: AT&T
Date: Wed, 2 Feb 1994 21:02:55 GMT
Message-ID: <mab.760222975@merckx>
Originator: mab@merckx
Sender: news@cbnewsj.cb.att.com (NetNews Administrator)
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Lines: 162

A group from NSA and FBI met the other day with a group of us at Bell
Labs to discuss the key escrow proposal.  They were surprisingly
forthcoming and open to discussion and debate, and were willing to at
least listen to hard questions.  They didn't object when asked if we
could summarize what we learned to the net.  Incidentally, the people
at the meeting seemed to base a large part of their understanding of
public opinion on Usenet postings.  Postings to sci.crypt and
talk.politics.crypto seem to actually have an influence on our
government.

A number of things came out at the meeting that we didn't previously
know or that clarified previously released information.  What follows
is a rough summary; needless to say, nothing here should be taken as
gospel, or representing the official positions of anybody.  Also,
nothing here should be taken as an endorsement of key escrow, clipper,
or anything else by the authors; we're just reporting.  These notes
are based on the collective memory of Steve Bellovin, Matt Blaze, Jack
Lacy, and Mike Reiter; there may be errors or misunderstandings.
Please forgive the rough style.  Note also the use of "~ ~" for
'approximate quotes' (a marvelous Whit Diffie-ism).

NSA's stated goals and motives for all this:
	* DES is at the end of its useful life
	* Sensitive, unclassified government data needs protection
	* This should be made available to US Citizens
	* US business data abroad especially needs protection
	* The new technology should not preclude law enforcement access

They indicated that the thinking was not that criminals would use key
escrowed crypto, but that they should not field a system that
criminals could easily use against them.  The existence of key escrow
would deter them from using crypto in the first place.  The FBI
representative said that they expect to catch "~only the stupid
criminals~" through the escrow system.

Another stated reason for key escrow is that they do not think that
even government-spec crypto devices can be kept physically secure.
They do expect enough to be diverted to the black market that they feel
they need a response.  NSA's emphasis was on the foreign black market...

There seems to be a desire to manipulate the market, by having the
fixed cost of key escrow cryptography amortized over the government
market.  Any private sector devices would have to sell a much larger
number of units to compete on price.  (This was somewhere between an
implication and an explicit statement on their part.)

When asked about cryptography in software, "~...if you want US
government cryptography, you must do it with hardware~".

Clipper chips should be available (to product vendors) in June.  You
can't just buy loose chips - they have to be installed in approved
products.  Your application interface has to be approved by NIST for
you to get your hands on the chips.

An interesting point came up about the reverse-engineering resistance
of the chips: they are designed to resist reverse engineering the data
in the chip without destroying the chip.  It is not clear (from the
information presented at the meeting) whether the chips are equally
resistant to destructive reverse-engineering to learn the skipjack
algorithm.   They said the algorithm was patented, but they may have
been joking.  ("~And if that doesn't scare you enough, we'll turn the
patent over to PKP.~")

The resistance to reverse engineering is not considered absolute by
NSA.  They do feel that "~it would require the resources of a national
laboratory, and anyone with that much money can design their own
cryptosystem that's just as strong.~"

They repeated several times that there are "~no plans to regulate the
use of alternate encryption within the US by US citizens.~"  They also
indicated they "~weren't naive~" and didn't think that they could if
they wanted to.

There were 919 authorized wiretaps, and 10,000 pen register monitors,
in 1992.  They do not have any figures yet on how often cryptography
was used to frustrate wiretaps.

They do not yet have a production version of the "decoder" box used by
law enforcement.  Initially, the family key will be split (by the same
XOR method) and handled by two different people in the athorized
agencies.  There is presently only one family key.  The specifications
of the escrow exploitation mechanism are not yet final, either; they
are considering the possibility of having the central site strip off
the outer layers of encryption, and only sending the session key back
to the decoder box.

The escrow authorities will NOT require presentation of a court order
prior to releasing the keys.  Instead, the agency will fill out a form
certifying that they have a legal authorization.  This is also backed
up with a separate confirmation from the prosecutor's office.  The
escrow agencies will supply any key requested and will not themselves
verify that the keys requested are associated with the particular court
order.

The NSA did not answer a question as to whether the national security
community would obtain keys from the same escrow mechanism for their
(legally authorized) intelligence gathering or whether some other
mechanism would exist for them to get the keys.

The masks for the Clipper/Capstone chip are unclassified (but are
protected by trade secret) and the chips can be produced in an
unclassified foundry.  Part of the programming in the secure vault
includes "~installing part of the Skipjack algorithm.~" Later
discussion indicated that the part of the algorithm installed in the
secure vault are the "S-tables", suggesting that perhaps unprogrammed
Clipper chips can be programmed to implement other 80-bit key, 32 round
ciphers.

The Capstone chip includes an ARM-6 RISC processor that can be used for
other things when no cryptographic functions are performed.  In
particular, it can be used by vendors as their own on-board processor.
The I/O to the processor is shut off when a crypto operation is in
progress.

They passed around a Tessera PCMCIA (type 1) card.  These cards
contain a Capstone chip and can be used by general purpose PC
applications.  The cards themselves might not be export controlled.
(Unfortunately, they took the sample card back with them...)  The card
will digitally sign a challenge from the host, so you can't substitute
a bogus card.  The cards have non-volatile onboard storage for users'
secret keys and for the public keys of a certifying authority.

They are building a library/API for Tessera, called Catapult, that
will provide an interface suitable for many different applications.
They have prototype email and ftp applications that already uses it.
They intend to eventually give away source code for this library.
They responded favorably to the suggestion that they put it up for
anonymous ftp.

Applications (which can use the library and which the NSA approves for
government use) will be responsible for managing the LEAF field.  Note
that they intend to apply key escrowed Skipjack to other applications,
including mail and file encryption.  The LEAF would be included in
such places as the mail header or the file attributes.  This implies
that it is possible to omit sending the LEAF -- but the decrypt chip
won't work right if it doesn't get one.

When asked, they indicated that it might be possible wire up a pair of
Clipper/Capstone chips to not transmit the LEAF field, but that the
way to do this is "~not obvious from the interface we give you~" and
"~you'd have to be careful not to make mistakes~".  They gave a lot of
attention to obvious ways to get around the LEAF.

The unit key is generated via Skipjack itself, from random seeds
provided by the two escrow agencies (approximately monthly, though
that isn't certain yet).  They say they prefer a software generation
process because its correct behavior is auditable.

Capstone (but not Clipper) could be configured to allow independent
loading of the two key halves, in separate facilities.  "~It's your
money [meaning American taxpayers].~"

The LEAF field contains 80 bits for the traffic key, encrypted via the
unit key in "~a unique mode <grin>~", 32 bits for the unit id, and a 16
bit checksum of some sort.  (We didn't waste our breath asking what the
checksum algorithm was.)  This is all encrypted under the family key
using "~another mode <grin>~".

They expressed a great deal of willingness to make any sort of
reasonable changes that vendors needed for their products.  They are
trying *very* hard to get Skipjack and key escrow into lots of
products.

From sci.crypt Sun Feb  6 18:22:10 1994
Xref: utcsri sci.crypt:23306 talk.politics.crypto:2458 comp.org.eff.talk:25723 alt.privacy.clipper:2092
Path: utcsri!utnut!cs.utexas.edu!howland.reston.ans.net!torn!falcon.ccs.uwo.ca!cogsci.uwo.ca!mckeever
From: mckeever@cogsci.uwo.ca (Paul McKeever)
Newsgroups: sci.crypt,talk.politics.crypto,comp.org.eff.talk,alt.privacy.clipper
Subject: Re: Notes on key escrow meeting with NSA
Date: 3 Feb 1994 16:31:09 GMT
Organization: University of Western Ontario, London, Ont. Canada
Lines: 85
Distribution: inet
Message-ID: <2ir8sd$riu@falcon.ccs.uwo.ca>
References: <mab.760222975@merckx> <CKMvGt.G06@world.std.com>
NNTP-Posting-Host: cogsci.uwo.ca
Cc: 

Re: the NSA working "very hard" to get Clipper/Capstone into as many
products as possible: YOU'RE MISSING THE POINT OF THEIR EXERCISE.

Wide distribution is not as stupid as it seems: it's not meant ONLY
to catch "stupid criminals".  RATHER: it is the psychology that is
being paid for.

Specifically, Joe Lotech is going to push the "private" button on
his telephone whenever he's using, say, his cellular phone (in fact,
privacy mode will probably be the default, and Joe Lotech will
know it).  Essentially, the omnipresence of government-designed
encryption will create a false sense of security among the masses.
"Hey!  I don't have to worry about snoopy people listening in on
my cellular phone calls anymore...Cool!".

When Joe Lotech is confronted by a little lab dweeb named Johnny
Nofool, Johnny will say to Joe: "Hey, you know, that privacy mode
doesn't prevent the police from listening in on your conversation"
Joe Lotech will reply "Ah!  You're paranoid man!  Besides, I'm
sure that the cops don't give a **** if I tell my girl that I
want to have sex with her tonight!  Get real!  Relax!  When
was the last time the cops arrested YOU for talking on the phone?!
You're paranoid man."  Johnny Nofool replies: "No really, listen.
There are all kinds of reasons that you should not rely on the
privacy imparted to your phone conversations via the government's
chip.  For example, what about industrial espionage...it's not
overly hard for a government key to get into the wrong hands
you know!  Or what if you are a member of some political party
that the government is trying to eliminate...hi-tech McCarthyism
can recur you know."  Joe Lotech: "Look man.  I'm a Republican.
And I don't communicate any ideas that big business would like
to steal: I work at GM for *****'s sake!  Geez...I think you
need to get laid, or take a vacation, or something man!  AND
BESIDES, this privacy gizmo came with the phone, it's cheap, 
it does the job for me, and parts are available if it breaks
down...I think this gizmo will do me just fine.  See ya."

This conversation (or something like it) WILL occur.  You watch.

Government will make a lot of hoopla in the papers about how
cellular phones and faxes etc. are listened to all of the time.
Donohue will have testimonials of nimrods whose marriage broke
up when their wife overheard them talking to a mistress by listening
in with her scanner, etc., etc..  Then, you'll see Clinton or
Gore strutting out on the news within weeks thereafter to announce
how they are bringin the USA into the 21st century with "super
chips" or some such nonsense that will both protect American
privacy, and allow government to "crack down on crime" (part of
the crime bill? an amendment?).  Clipper will proliferate, and
will me as common as pushbuttons on telephones etc..  THE PEOPLE
WILL BE HAPPY AND SATISFIED.

In their satisfied state, the people will, in fact APPLAUD, a
move to crack down on evil criminals who are using "military"
encryption to undermine American peace, and spread terrorism.
It will be a CAKEWALK to pass the FBI's proposed Digital Telephony
Act.  Government-proof encryption will be illegal, and the penalties
for possession or use will be steep.  Other countries will follow
suit (Canada first).  The dream of perfect privacy and truly-free
communication will be dead.

These talks may be good, but I doubt much progress will come of them
(I'm referring to these talks with the NSA and FBI).  These agencies
have GENUINE concerns about criminality and national security.  I
think the real solution is going to have to come from private industry.
The private sector must make people aware of the difference between
government-proof and government-prone encryption.  But it must also
help the NSA and FBI to overcome the very real problems associated
with wide-spread, legal, government-proof encryption.  Everyone
needs to get thinking on an alternative to government-prone encryption, 
and to start educating the public before they think Clipper and Capstone
are good enough, and to start thinking of ways to prevent strong
encryption from being used for criminal purposes (perhaps the latter
is not possible?).


Just my two cents.



-- 
Paul
====
My opinions are my own and are not intended to represent the 
opinions of people or organizations that disagree with me.

From sci.crypt Sun Feb  6 18:23:49 1994
Xref: utcsri sci.crypt:23313 talk.politics.crypto:2459 comp.org.eff.talk:25729 alt.privacy.clipper:2093
Path: utcsri!utnut!cs.utexas.edu!howland.reston.ans.net!europa.eng.gtefsd.com!news.umbc.edu!eff!eff!not-for-mail
From: mech@eff.org (Stanton McCandlish)
Newsgroups: sci.crypt,talk.politics.crypto,comp.org.eff.talk,alt.privacy.clipper
Subject: Re: Notes on key escrow meeting with NSA
Date: 3 Feb 1994 21:46:29 -0500
Organization: Electronic Frontier Foundation
Lines: 167
Sender: mech@eff.org
Message-ID: <2iscu5$ert@eff.org>
References: <mab.760222975@merckx> <D> <jaboweryCKntxw.BqH@netcom.com> <strnlghtCKnvt2.ME7@netcom.com>
NNTP-Posting-Host: eff.org

In article <strnlghtCKnvt2.ME7@netcom.com>,
David Sternlight <david@sternlight.com> wrote:
>In article <jaboweryCKntxw.BqH@netcom.com>,
>Jim Bowery <jabowery@netcom.com> wrote:
>>
>>Who knows, maybe a few more humbling experiences like this and they'll 
>>all of a sudden remember who they are supposed to be serving and why
>>servants aren't always given full access to all aspects of their
>>masters' estates.
>
>These remarks come with ill grace. 

How so?  2 simple facts underlie his statements:

1) public servants, such as law enforcement, serve the public (us).
2) there have been many abuses of citizens (us) by such public servants.

He makes a single assertation:

3) the reason for #2 above is that public servants tend to forget who they
serve, and take advantage of their position.

I don't think that's an unreasonable presumption.

>From the start there was nothing in the
>Clipper press release saying they were going to prohibit alternate
>encryption. That was a fear raised here. 

Au contraire!

From the original White House press release [** emphasis, like this, 
added **, and interpolated notes in brackets]:

>Q:	If the Administration were unable to find a technological solution
>like the one proposed, ** would the Administration be willing to use legal
>remedies to restrict powerful encryption devices? **
>	
>A:	** This is a fundamental policy question which will be considered **
>during the broad policy review. The key escrow mechanism will provide
>Americans with an encryption product that is more secure, more convenient,
>and less expensive than others readily available today,
 [implying it is meant to replace the "others"]
> ** but it is just one piece of what must be the comprehensive approach to
> encryption technology, which the Administration is developing. **
 [more directly states that the Administration considers a "comprehensive
 approach" to crypto to be only one "which the Administration is developing.]
>	
>	The Administration is not saying, "since encryption threatens the
>public safety and effective law enforcement, we will prohibit it outright"
 [note that the negation here negates only the main clause of the quoted 
 passage, not the secondary clause.  In effect this says that the Admin. is
 not going to ban all cryptography {of course not; they are producing it
 themselves], but that it DOES consider crypto to threaten "public safety and
 ...law enforcement."]
>(as some countries have effectively done); 
 [The implication here is also clear: 'Other countries, by definition
 inferior, have banned crypto. The US govt is the most massive and powerful
 in the world, and if it wants to, it can and will ban crypto successfully.']
>** nor is the U.S. saying that "every American, as a matter of right, is
> entitled to an unbreakable commercial encryption product." **
[...]

Note the last like.  That's a key statement.

Note the turn of phase "...nor is the U.S. saying...", implying not that
a decidedly disfavoured President and his advisors are saying something, 
but that _the United States of America_, as a single united unit, is
saying something.  This is of course absurd, as is most everything in the
press release, but most people are unlikely to notice this sort of thing,
and it will effectively work a lot of psychological voodoo.


In response to later questions they
>confirmed that they had no plans to do so (within a month of the first
>discussion here) and that statement was also quoted here. 

Au contraire!

From a NIST response to a letter from PKP/RSADSI's Jim Bidzos
[Emphasis/comments as before]:

>NIST:    ** There are no current plans to legislate the use of Clipper.**
 [Sounds good.  Yet see last sentence in next section.]
>         Clipper will be a government standard, which can be - and
>         likely will be - used voluntarily by the private sector. The
>         ** option for legislation may be examined during the policy
>         review ordered by the President. **

and

>NIST:    Again, the Clipper Chip is a government standard which can
>         be used voluntarily by those in the private sector.  We also
>         point out that the President's directive on "Public
>         Encryption Management" stated: "In making this decision, I
>         do not intend to prevent the private sector from developing,
>         or the government from approving, other microcircuits or
>         algorithms that are equally effective in assuring ** both **
>         privacy ** and ** a secure key-escrow system."

Despite the double-talk and -think in the language of this and other such
documents, including the original press release, the message is clear:
There are no _current_ plans to make Clipper mandatory, but their may be
in the future (this was confirmed later in a response to questions about
Clipper, where in it was stated that banning non-Clipper crypto was an
issue that would be considered.  I cannot provide quotes from that one, as
I don't have it handy.  When I find it I will be happy to do so.) 
Furthermore, the Administration may approve encryption schemes with _both_
effective crypto _and_ key-escrow (a contradiction in terms), but very
clearly implies that it will not approve (as if it has any right to
approve or disapprove) encryption without key-escrow. 

I can give other examples, but I am hungry and tired and have 200 emails
to read, so I will leave further research as an exercise for the reader. 

>Those with
>anti-government water to carry then tried to pick apart their statement in
>that instance. Now we have yet another confirmation.

The almost-off-the-record statement of low-rank govt. representatives does
not qualify as a "confirmation" of anything.  Even the President's own
press releases on the matter don't confirm, they simply attempt to skirt
the issue with weasel words.  

>Now there's nothing wrong with being careful, or questioning the government
>closely in this matter, 

That much is true.

>and we are all indebted to those who are vigilant in
>the protection of our civil rights. 

<nod>

>But to make this the occasion of a
>sarcastic diatribe does not forward the action.

If you mean that this man's Usenet posts won't win any "wars" for us, this
is true, but I don't think it was intended to do so.  Looked like
expression of an opinion to me.  I also, personally, don't detect any
sarcasm, only irony, based on the what looks to be the reality of the
situation.

To sum up, until the Administration produces a VERY clear statement that:

1) Clipper absolutely positively will not ever be mandatory in any way for
anyone (other than, I suppose, people passing around "sensitive but not
classified" material as part of their govt. employee duties, as originally
suggested), and
 
2) Clipper is not intended to displace private sector, commercial
encryption products, and

3) that other forms of encryption, _even those with no key escrow of any
kind_, will absolutely positively never ever be prohibited, then

the only safe assumption that can be made is that 1, 2 and 3 are false,
and that we have to fight to make them true.  Any other course of action
is careless, apathetic, naive and dangerous.  Period.  The govt's feelings
won't be hurt, and they sky won't fall down, if 1, 2 and 3 actually ARE
true, and we just don't know it.  We're all in deep kim chee however if
they are false.  Better to "over react" and do no harm, than not react
fast enough, and lose a good measure of our privacy.
-- 
Stanton McCandlish * mech@eff.org * Electronic Frontier Found. OnlineActivist
F O R   M O R E   I N F O,    E - M A I L    T O:     I N F O @ E F F . O R G 
O  P  E  N    P  L  A  T  F  O  R  M     O  N  L  I  N  E    R  I  G  H  T  S
V  I   R   T   U   A   L   C  U   L   T   U   R   E      C  R   Y   P   T   O

From comp.risks Wed Feb  9 21:18:16 1994
Date: Wed, 09 Feb 1994 17:23:28 -0500 (EST)
From: denning@cs.cosc.georgetown.edu (Dorothy Denning)
Subject: Re: Campaign and Petition Against Clipper

CPSR has announced a petition campaign to oppose the Clipper initiative.  I
would like to caution people about signing the petition.  The issues are
extremely complex and difficult.  The Clipper initiative is the result of
considerable deliberation by many intelligent people who appreciate and
understand the concerns that have been expressed and who worked hard to
accommodate the conflicting interests.  The decisions that have been made were
not made lightly.

I would like to respond to some of the statements that CPSR has made
about Clipper in their campaign and petition letters:
 
     The Clipper proposal, developed in secret by the National Security
     Agency, is a technical standard that will make it easier for
     government agents to wiretap the emerging data highway.

The standard (FIPS 185) is not a standard for the Internet or any other high
speed computer network.  It is for the telephone system.  Quoting from FIPS
185: "Data for purposes of this standard includes voice, facsimile and
computer information communicated in a telephone system.  A telephone system
for purposes of this standard is limited to a system which is circuit switched
and operating at data rates of standard commercial modems over analog voice
circuits or which uses basic-rate ISDN or a similar grade wireless service."

The standard will not make it any easier to tap phones, let alone
computer networks.  All it will do is make it technically possible to
decrypt communications that are encrypted with the standard, assuming
the communications are not superencrypted with something else.  Law
enforcers still need to get a court order just to intercept the
communications in the first place, and advances in technology have made
interception itself more difficult.  The standard will make it much
harder for anyone to conduct illegal taps, including the government.

The purpose of the standard is to provide a very strong encryption algorithm -
something much stronger than DES - and to do so in a way that does not thwart
law enforcement and national security objectives.  Keys are escrowed so that
if someone uses this technology, they cannot use it against national
interests.

     Industry groups, professional associations and civil liberties
     organizations have expressed almost unanimous opposition to the
     plan since it was first proposed in April 1993.

     "The public does not like Clipper and will not accept it ..."

     The private sector and the public have expressed nearly unanimous
     opposition to Clipper.  

As near as I know, neither CPSR nor any other group has conducted any
systematic poll of industry, professional societies, or the public.  While
many people have voiced opposition, there are many more organizations and
people who have been silent on this issue.  The ACM is in the process of
conducting a study on encryption.  CPSR is a member of the study group, as am
I.  Steve Kent is chair.  Our goal is a report that will articulate the
issues, not a public statement either for or against.  The International
Association for Cryptologic Research has not to my knowledge made any official
statement about Clipper.

     The Administration ignored the overwhelming opposition of the
     general public. When the Commerce Department solicited public
     comments on the proposal last fall, hundreds of people opposed the
     plan while only a few expressed support.

Hundreds of people is hardly overwhelming in a population of 250 million,
especially when most of the letters were the same and came in through the net
following a sample letter that was sent out.
	
     The technical standard is subject to misuse and compromise. It
     would provide government agents with copies of the keys that
     protect electronic communications. "It is a nightmare for computer
     security."

I have been one of the reviewers of the standard.  We have completed our
review of the encryption algorithm, SKIPJACK, and concluded it was very
strong.  While we have not completed our review of the key escrow system, from
what I have seen so far, I anticipate that it will provide an extremely high
level of security for the escrowed keys.

     The underlying technology was developed in secret by the NSA, an
     intelligence agency responsible for electronic eavesdropping, not
     privacy protection. Congressional investigations in the 1970s
     disclosed widespread NSA abuses, including the illegal
     interception of millions of cables sent by American citizens.

NSA is also responsible for the development of cryptographic codes to protect
the nation's most sensitive classified information.  They have an excellent
track record in conducting this mission.  I do not believe that our
requirements for protecting private information are greater than those for
protecting classified information.  I do not know the facts of the 1970s
incident that is referred to here, but it sounds like it occurred before
passage of the 1978 Foreign Intelligence Surveillance Act.  This act requires
intelligence agencies to get a court order in order to intercept
communications of American citizens.  I am not aware of any recent evidence
that the NSA is engaging in illegal intercepts of Americans.

     Computer security experts question the integrity of the
     technology.  Clipper was developed in secret and its
     specifications are classified.

The 5 of us who reviewed the algorithm unanimously agreed that it was very
strong.  We will publish a final report when we complete or full evaluation.
Nothing can be concluded from a statement questioning the technology by
someone who has not seen it regardless of whether that person is an expert in
security.

     NSA overstepped its legal authority in developing the standard.  A
     1987 law explicitly limits the intelligence agency's power to set
     standards for the nation's communications network.

The 1987 Computer Security Act states that NIST "shall draw on the technical
advice and assistance (including work products) of the National Security
Agency."

     There is no evidence to support law enforcement's claims that new
     technologies are hampering criminal investigations. CPSR recently
     forced the release of FBI documents that show no such problems.

CPSR obtained some documents from a few FBI field offices.  Those offices
reported no problems.  CPSR did not get reports from all field offices and did
not get reports from local law enforcement agencies.  I can tell you that it
is a fact that new communications technologies, including encryption, have
hampered criminal investigations.  I personally commend law enforcement for
trying to get out in front of this problem.

     If the plan goes forward, commercial firms that hope to develop
     new products will face extensive government obstacles.
     Cryptographers who wish to develop new privacy enhancing
     technologies will be discouraged. 

The standard is voluntary -- even for the government.

     Mr. Rotenberg said "We want the public to understand the full
     implications of this plan.  Today it is only a few experts and
     industry groups that understand the proposal. 

I support this objective.  Unfortunately, it is not possible for most of us to
be fully informed of the national security implications of uncontrolled
encryption.  For very legitimate reasons, these cannot be fully discussed and
debated in a public forum.  It is even difficult to talk about the full
implications of encryption on law enforcement.  This is why it is important
that the President and Vice-President be fully informed on all the issues, and
for the decisions to be made at that level.  The Feb. 4 decision was made
following an inter-agency policy review, headed by the National Security
Council, that examined these issues using considerable input from industry,
CPSR, EFF, and individuals as well as from law enforcement and intelligence
agencies.  In the absence of understanding the national security issues, I
believe we need to exercise some caution in believing that we can understand
the full implications of encryption on society.

As part of the Feb. 4 announcement, the Administration announced the
establishment of an Interagency Working Group on Encryption and
Telecommunications, chaired by the White House Office of Science and
Technology Policy and National Security Council, with representatives from
Commerce, Justice, State, Treasury, FBI, NSA, OMB, and the National Economic
Council.  The group is to work with industry and public interest groups to
develop new encryption technologies and to review and refine encryption
policy.  The NRC's Computer Science and Telecommunications Board will also be
conducting a study of encryption policy.

These comments may be distributed.

Dorothy Denning, Georgetown University

From comp.risks Sat Feb 12 16:14:32 1994
Date: Thu, 10 Feb 94 06:11:05 PST
From: Fredrick B. Cohen <fc@Jupiter.SAIC.Com>
Subject: Re: Denning's thoughts on the Clipper Chip

>The standard (FIPS 185) is not a standard for the Internet or any other high
>speed computer network. ...

The language sounds to me like it covers ISDN which is rapidly becoming the
standard for non-local networking, all switched circuits, which will soon
include most cable systems, and standard commercial modems carry the vast
majority of all current computer communications.  What do you think the
superhighway is going to be made of?  We have AT+T trying for the twisted pair
as the standard, and the cable companies going for a cable version, and some
chasing optical, but it is all circuit switched at one point or another.

> ...  The standard will make it much
>harder for anyone to conduct illegal taps, including the government.

For someone who lived through Watergate and Irangate and all the other
gates, I am amazed that you can still take this position.  It only means
that the class of people who will be able to get the information will be
restricted to the richer and more powerful.  Anyone familiar with the
telephone system today knows that to tap a line requires only that the FBI
tell the telephone company the phone number.  The rest happens in a matter
of seconds.  With clipper, it will be the same way.

> ...  Keys are escrowed so that if someone uses this technology, they cannot
> use it against national interests.

How much do these escrow agents get paid, and how well are their families
protected?  How many guards watch them continuously? Who are we kidding?
US Nuclear codes were leaked to the Soviets at the height of the cold war.
Do you really think that we will protect these escrow agents any better?

>As near as I know, neither CPSR nor any other group has conducted any
>systematic poll ...

I know for a fact that most of the major telecommunications providers are
worried that Clipper will be made the standard.  The reason is that they need
better protection and they have to be able to do more things more flexibly
than Clipper allows.  They also don't want to have to pay the company who
makes clipper a fortune to use a technology they don't want to use.

>Hundreds of people is hardly overwhelming in a population of 250 million ...

Do you claim to believe that the great silent majority is in favor of Clipper?
Actually, hundreds of people who opposed it against only a few who supported
it would tend to indicate that 245 Million oppose it and 5 million are in
favor.  Not that this was a statistically valid sample.  After all, the people
who oppose it are probably more knowledgeable than the general public.

>... concluded it was very strong.  ...

In the light of 5,000 years of cryptographic history where experts claimed
that systems were very strong only to find them broken soon after, I find it
hard to trust the hand picked committee of 5 so-called experts who are given
money and time to pass judgement on a technology that is so weak that they are
afraid to expose it to the light of day.  If it is so strong, why not let the
rest of the world review it? The German experts said the same thing about
Enigma, and lots of US experts said the same thing about <name withheld> for
national security reasons.  The infoscape is littered with failed
cryptosystems and failed experts wo trusted them.

>...  I do not believe that our requirements for protecting private 
>information are greater than those for protecting classified information.  
>...  I am not aware of any recent evidence that the NSA is engaging in 
>illegal intercepts of Americans.

It is hard to believe that such a well known expert is that naive.  It is the
blind belief in government that allows it to get away with so much.  We need
more questioning, not less.  We need affirmative facts that show they are
not doing this before we will believe it.  Just because they haven't been
caught, doesn't mean they are innocent.

>The 5 of us who reviewed the algorithm unanimously agreed that it was very
>strong.  We will publish a final report when we complete or full evaluation.
>Nothing can be concluded from a statement questioning the technology by
>someone who has not seen it regardless of whether that person is an expert in
>security.

I disagree strongly with this assertion.  The mere fact that 5 experts agree
that a technology is strong gives me no confidence whatsoever.  If it is so
strong, what's the big secret? If it's so strong, why does it have to be
protected by a special hardware mechanism? If it is so strong, why not tell
all of us so we can start to develop similar systems of our own? How can you
claim it is so strong when you are afraid to even tell us how it works?
History has shown that secret systems such as these are not strong.  The
evidence I use to condemn is 5,000 years of history.  Your evidence is 5
people in a room saying it's strong.  Which should we give more weight to?

>...  I can tell you that it
>is a fact that new communications technologies, including encryption, have
>hampered criminal investigations.  ...

If technology hampers criminal investigations, why not eliminate cars except
for police.  Then we could catch a lot more criminals.  This is a stupid
argument.  Let's get better police and better tools for them to use, and not
try to weaken the very fabric of our information society instead.

>     Mr. Rotenberg said "We want the public to understand the full
>     implications of this plan.  Today it is only a few experts and
>     industry groups that understand the proposal. 
>
>I support this objective.  Unfortunately, it is not possible for most of us to
>be fully informed of the national security implications of uncontrolled
>encryption.  For very legitimate reasons, these cannot be fully discussed and
>debated in a public forum.  It is even difficult to talk about the full
>implications of encryption on law enforcement.

This is the argument of dictators, not democracies.  If it cannot be opened
to public scrutiny, it does not belong here.  The implications of controlled
encryption are the ones you are afraid of airing.  But I am not.  Controlled
encryption is just another way for those with power to tighten their grip.
What is so frightening to you about encryption that you can't even discuss
it? Is it that people will have privacy from their own government? Is it that
we will be able to assure integrity in communications?  Giving power to the
public is not something to be feared.  It is something to be sought out and
encouraged.

>This is why it is important
>that the President and Vice-President be fully informed on all the issues, and
>for the decisions to be made at that level.  ...
>In the absence of understanding the national security issues, I
>believe we need to exercise some caution in believing that we can understand
>the full implications of encryption on society.

Why is it that you think you understand more about the implications of
cryptography on national security than the rest of us? This elitist crap has
got to end.  It is bad for our country to have elitists who believe they know
more than the rest of us dictating how we will live our lives.  It is bad for
our country that the esteemed members of this forum do not have access to your
rational in order to openly discuss your points of view.  It is bad for our
country that professors at universities tell their students and the public not
to think about the issues, but to trust that the professors know best.  If you
want to serve the national interest, get the debate out in the open!

> ...

In one recent NRC study, the committee rightly pointed out that we need more
open research in this field.  Perhaps Professor Denning would like to follow
the recommendations of that report and open up to us.

	Fred Cohen - independent researcher

From comp.risks Sat Feb 12 16:16:54 1994
Date: Wed, 9 Feb 94 22:16:51 EST
From: ugtalbot@king.mcs.drexel.edu (George T. "14K F/D" Talbot)
Subject: Re: Campaign and Petition Against Clipper

I would like to comment upon a few points raised by Dr. Denning:

>The decisions that have been made were not made lightly.

While I appreciate the sentiments expressed by Dr. Denning here, I'm
sure that those who oppose the Clipper initiative are also intelligent and
have also worked very hard to make their concerns known.  I have studied this
issue actively and I assure you that I did not sign the petition "lightly".

>The standard (FIPS 185) is not a standard for the Internet or any other high
>speed computer network.

While the Clipper initiative only covers the phone system, the entire proposal
(Clipper and Capstone and the key escrow system) will touch the high-speed
networks and should be taken as a whole.

>...assuming
>the communications are not superencrypted with something else.  Law
>enforcers still need to get a court order just to intercept the
>communications in the first place...

There are two points to address here.  First, it is currently very difficult
to produce and export cryptographic software of any significant strength due
to export controls.  A private entity which has the resources to produce a
strong cryptographic solution will have to invest a great deal to produce such
software.  The current export controls would make it impossible for such an
entity to compete on the world market, thus limiting profit, possibly to the
point of non-profitability.  This makes superencryption pretty unlikely, and
this is one of the purposes of the current export controls on encryption.
Also at issue is whether the government will outlaw non-Clipper/Capstone/Key
Escrow encryption entirely.

Second, law enforcement needs to get a court order to intercept phone
communications.  I know of no such need to get a court order to intercept
communications on a high speed network w.r.t. Capstone.  The current
administration proposal does not require a court order to get the escrowed
keys themselves.

>     The Administration ignored the overwhelming opposition of the
>     general public. When the Commerce Department solicited public
>     comments on the proposal last fall, hundreds of people opposed the
>     plan while only a few expressed support.
>
>Hundreds of people is hardly overwhelming in a population of 250 million,
>especially when most of the letters were the same and came in through the net
>following a sample letter that was sent out.

Currently the community which is informed on this issue is rather small.  It
is unclear whether that population of 250 million would support the initiative
if they were fully informed.  Assuming the people which responded to the
Commerce Department solicitation is representative of the public at large,
it is clear that this is not a popular initiative outside of government/
law enforcement/national security circles.

>I have been one of the reviewers of the standard.  We have completed our
>review of the encryption algorithm, SKIPJACK, and concluded it was very
>strong.  While we have not completed our review of the key escrow system, from
>what I have seen so far, I anticipate that it will provide an extremely high
>level of security for the escrowed keys.

I'm sure that the committee which reviewed the algorithm made as accurate
an assessment of the algorithm they could in the limited time they were given.
What the NSA refuses to answer on this point is whether it, or the rest of the
national security community will use the escrow system.  If the [national
security] community does not sign up [for the key escrow system], then the
escrow system will be effectively compromised.

>...I am not aware of any recent evidence
>that the NSA is engaging in illegal intercepts of Americans...

From what I understand, the Act was passed in response to the incident in the
1970s.  Just because one doesn't have evidence doesn't mean that abuses don't
exist, and one can't make basic policy decisions based upon that.  When
considering important policy like this, one has to actively consider the risks
of abuse.

>...

From what current reports show, NSA pushed the proposal through NIST, and it
was NSA, not NIST, which was the true author and sponsor of the initiative.
They were operating on a "gray area" where because they were the only source
for the standard considered, they effectively set the standard without
explicitly violating the law.

>...  I can tell you that it
>is a fact that new communications technologies, including encryption, have
>hampered criminal investigations.  I personally commend law enforcement for
>trying to get out in front of this problem.

Dr. Denning, would you, as a service to RISKS readers, disclose your evidence
of how encryption has hampered criminal investigations?  And how often?  And
what kind of investigations were hampered?

>...  In the absence of understanding the national security issues, I
>believe we need to exercise some caution in believing that we can understand
>the full implications of encryption on society.

I disagree and Dr. Denning contradicts herself.  If the decision is made at
those levels, the public will not be informed.  This policy is too important
to relegate to a back room.

George T. Talbot

From comp.risks Sat Feb 12 16:18:01 1994
Date: Thu, 10 Feb 94 13:48:28 -0800
From: geoff@FICUS.CS.UCLA.EDU (Geoff Kuenning)
Subject: Re: Campaign and Petition Against Clipper

In RISKS-15.48, Dorothy Denning combines some good points with some very
paternalistic and unsupportable claims.  I will primarily address the latter.

>... The Clipper initiative is the result of
>considerable deliberation by many intelligent people who appreciate and
>understand the concerns that have been expressed and who worked hard to
>accommodate the conflicting interests.  The decisions that have been made were
>not made lightly.

In other words, despite the fact that many intelligent and well-informed
people *oppose* Clipper, "we know best, so stop complaining."  The fact that
the decision was made by well-intentioned people does not make it correct.

>The standard (FIPS 185) is not a standard for the Internet or any other high
>speed computer network.  It is for the telephone system.

In the first place, many people access the Internet via various forms of
telephone lines.  If they are encrypted, it will be easier to tap them if they
use Clipper.  In the second place, the Administration has been quite up-front
about its desire to force key-escrow encryption into nearly every encryption
application.  So while Ms. Denning is technically correct in her narrow
reading of the document, CPSR is equally correct in raising an alarm about the
larger issue of high-speed networks.

>As near as I know, neither CPSR nor any other group has conducted any
>systematic poll ...

Ah, the old "silent majority" argument.  I thought that went out when Nixon
resigned.

The truth is that, among the tiny fraction of the public which has expressed
an opinion, there *has* been overwhelming public opposition.  Very few people
have written the Government to say, "my, what a wonderful idea!"

Organizations like TV networks have a multiplier rule they apply to letters,
where they figure that every letter received represents N people who felt the
same way, but didn't take the time to write.  To suggest that only one's
opposition took the time to write, and that everyone else is in agreement, is
at best disingenuous and at worst intellectually dishonest.

> The ACM is in the process of
>conducting a study on encryption.  CPSR is a member of the study group, as am
>I.  Steve Kent is chair.  Our goal is a report that will articulate the
>issues, not a public statement either for or against.

In other words, having attempted to discredit what little data we *do* have,
Ms. Denning is stating that there are no plans to conduct a scientific study
of public opinion.  Perhaps the ACM or the CPSR should fund Roper or Gallup to
investigate a few questions, approved by both Ms. Denning and a CPSR
representative as being unbiased?

> The International Association for Cryptologic Research has not to my
> knowledge made any official statement about Clipper.

I don't see what relevance this has to anything.  One organization of
cryptologists has remained silent.  So what?

> Hundreds of people is hardly overwhelming in a population of 250 million,
> especially when most of the letters were the same and came in through the net
> following a sample letter that was sent out.

The first part of this statement is patently false; the same argument
could be applied to any Harris poll.  The second part, about "form
letter" distortions in public issues, is relevant and important.  All
the more reason to do a more scientific survey.

> ...  I do not know the facts of the 1970s
> incident that is referred to here, but it sounds like it occurred before
> passage of the 1978 Foreign Intelligence Surveillance Act.  This act requires
> intelligence agencies to get a court order in order to intercept
> communications of American citizens.

The 1978 act was passed in response to the abuses of the early 70's.  It
should not have been necessary, since the NSA was prohibited from domestic
spying even before that, but the NSA figured that since the cables involved
were international communications, it was OK to eavesdrop on them.  This is a
rather classic case illustrating the way the NSA used the loosest possible
interpretation of restrictions, rather than actively trying to respect the
privacy of law-abiding citizens.

> I am not aware of any recent evidence
> that the NSA is engaging in illegal intercepts of Americans.

Once burned, twice cautious.  Ms. Denning, think of the egg you'll have on
your face if the NSA gets caught misbehaving a few years from now.
Personally, I don't see why I should trust any person or agency that is so
secretive.

> The 1987 Computer Security Act states that NIST "shall draw on the technical
> advice and assistance (including work products) of the National Security
> Agency."

The question is of who was in control.  There is a world of difference between
drawing on "advice and assistance," and stepping out of the picture to let
someone else do the job.  I believe that the latter is what CPSR is worried
about.

> ... I can tell you that it
> is a fact that new communications technologies, including encryption, have
> hampered criminal investigations.

Without data or references, how are we to believe this?  CPSR carried out, at
great difficulty, some preliminary research.  There is no indication that they
selected that data, and I hope that Ms. Denning is not suggesting this.
Again, we have an attempt to invoke the "silent majority" argument to claim
that the sampled data is invalid.  Only this time Ms. Denning doesn't even
offer anything to back up her counterclaim.

In the first place, let's have some facts here.  What criminal
investigations have been hampered by new technologies?  How many?

In the second place, a pervasive thread in Ms. Denning's thinking seems to be
that there is no room for a tradeoff between law enforcement and freedom.  Let
me point out that crime would drop tremendously if the police were allowed to
search anyone's home at random, without warning, and to confiscate anything
they chose.  But I don't think I'd want to live in such a society.  Similarly,
I'm perfectly willing to let a few criminal investigations be "hampered" or
even fail, if it means I can use strong encryption without fear of
eavesdropping or prosecution.

> The standard is voluntary -- even for the government.

That's not what I remember.  I seem to recall that the original announcement
said that the standard would be applicable to all government agencies.  Is
there a citation to support the claim that it's voluntary within the
government?

As to outside the government, yes, it's voluntary.  For now.  But there are
already major pressures being applied to make sure that this "voluntary"
standard is the only practical choice.  For example, Clipper will be much
easier to export than RSA, Idea, or even the venerable Enigma.  Government
dollars are being used to make sure that the Clipper chip is available and
cheap, undercutting the possibility of fair free-market competition.  And
hints have been dropped that any future encryption made available to the
public will also require a key escrow scheme.

	Geoff Kuenning	geoff@ficus.cs.ucla.edu	geoff@ITcorp.com

A huge vote of thanks to all the police, fire, medical, water, power, and gas
workers who have worked 12-hour shifts to help us out after the quake.

From comp.risks Sat Feb 12 16:21:22 1994
Date: Thu, 10 Feb 1994 08:28:46 -0500 (EST)
From: "Lance J. Hoffman" <hoffman@seas.gwu.edu>
Subject: Clipper standard came close to being not only for phones

Dorothy Denning wrote in RISKS Forum:

> The [Clipper] standard (FIPS 185) is not a standard for the Internet or any 
> other high speed computer network.  It is for the telephone system.  Quoting
> from FIPS 185: "Data for purposes of this standard includes voice, facsimile 

It apparently came close to covering everything.  I have heard from several
people at NIST describing the general unhappiness there about the EES.  One
wrote to me:

> Three weeks ago, Ray Kammer {the deputy director} and Mike Rubin {the 
> general counsel} here told people to rewrite the FIPS 185 {the EES}, which 
> was in draft form, so that the standard applied to all electronic 
> communications, including those not covered under the then current language.
> They refused, even walked out of the meeting, saying that it just could not
> be done.  Ray Kammer backed down, and the FIPS went out w/o the 
> all-inclusive language.

{remarks in curly brackets added by L Hoffman for explanation}

In any case, that point may be somewhat moot because Capstone applies to data! 

From comp.risks Sat Feb 12 16:23:05 1994
Date: 10 Feb 1994 17:55:25 -0600
From: mech@eff.org (Stanton McCandlish)
Subject: FLASH: Vice President Gore Questions Current Key Escrow Policy!

National Information Infrastructure Advisory Committee met today in Washington
at the Old Executive Office Building.  In comments made after a question and
answer period, Vice President Al Gore said that key escrow policy announced
last Friday (4 Feb 1994) had serious flaws and that he hope the issue of who
holds the keys and under what terms would be given more serious, careful
consideration.

Gore made it clear that some amount of control of cryptography technology was
necessary for national security.  However, the key escrow policies announced
by the Departments of Justice, Commerce & State, and the NSA, were "low level
decisions" that got out before thorough analysis.  In a conversation with
Mitchell Kapor, Esther Dyson, and Mike Nelson (of the White House Staff), Gore
said that he would prefer that the keys be held by some part of the Judiciary
branch, or perhaps even by trusted, private escrow agents.  He made it clear
that he believed that the escrow agents named in last Friday's announcement
(National Institute of Standards & Technology and the Treasure Department)
were no appropriate key holders.  Mike Nelson also indicated that there was
real interest in a software-based escrow system instead of the hardware-based
SKIPJACK standard

Those of us who heard Gore were quite surprised.  His remarks suggest that the
key escrow policies to date do not have full support of the White House.

Still, Gore was quite firm in asserting that some control of encryption
technology is essential to national security.  "Encryption and codebreaking
have determined the outcome of world wars.  He stated (incorrectly) that
most our industrialized allies place must stricter controls in encryption
that the US does.  In fact, almost all COCOM countries allow the export of
DES-based products, though some do not allow DES to be imported.

The whole question of encryption was raised when Mitchell Kapor told the
Vice President that over half of the Advisory Council members had serious
reservations about the current Clipper/Skipjack policies.  Gore and Kapor
agreed that the Advisory Council should be used to have a serious dialogue
about encryption policy.  Given Gore's departure from the current Clipper
proposals, there might actually be something to talk about.

==========
NOTE: This DOES NOT mean that Clipper is going away.  Part of stopping Clipper
is to lift export controls on encryption and enable US companies to start
producing products that enable all of us to protect our privacy with strong
encryption.

I urge you to write to Rep. Cantwell today at cantwell@eff.org. In the Subject
header of your message, type "I support HR 3627." In the body of your message,
express your reasons for supporting the bill. EFF will deliver printouts of
all letters to Rep. Cantwell. With a strong showing of support from the Net
community, Rep. Cantwell can tell her colleagues on Capitol Hill that
encryption is not only an industry concern, but also a grassroots issue.
*Again: remember to put "I support HR 3627" in your Subject header.*

  [For more info on the Cantwell bill, see Stanton's contribution 
  in RISKS-15.47.  I have deleted a lengthy repetition here.  There is as 
  yet no response from Stanton on Jon Leech's question in RISKS-15.50 on 
  the address cantwell@eff.org.  It is presumably NOT Cantwell's.  PGN]

Daniel J. Weitzner, Senior Staff Counsel <djw@eff.org>  202-347-5400 (v) 
Stanton McCandlish <mech@eff.org>  Electronic Frontier Foundation
1001 G St, NW  Suite 950 East Washington, DC 20001      202-393-5509 (f)

From comp.risks Sat Feb 12 16:24:16 1994
Date: Thu, 10 Feb 1994 19:33:44 -0500
From: Carl Ellison <cme@sw.stratus.com>
Subject: Re: Denning's Clipper defense (RISKS-15.48)

Prof. Denning has issued a defense of the Clipper proposal (which she
advocated in a CACM article long before the initiative was announced).  Her
specifics are easy enough to refute and I'm sure others will do so.  However,
she closes with an idea so radical that it shocked me.

Her idea that we citizens need a security clearance in order to enter the
debate over whether or not we should give up a right we've had for all time
(to make, use, disseminate, ..., our own strong cryptography, interfering with
the government's ability to spy on us) is so radically off base that the
technical debate pales by comparison.

My grade-school social studies teacher is doubtless spinning in her grave.  On
this point, I would like to hear from newly freed members of the Eastern
block.

 - Carl Ellison

From comp.risks Sat Feb 12 16:24:52 1994
Date: Thu, 10 Feb 1994 22:45:12 CST
From: roy@sendai.cybrspc.mn.org (Roy M. Silvernail)
Subject: Re: Notes on key escrow meeting with NSA (Blaze, RISKS-15.48)

> The LEAF field contains 80 bits for the traffic key, encrypted via the unit
> key in "~a unique mode <grin>~", 32 bits for the unit id, and a 16 bit
> checksum of some sort.  (We didn't waste our breath asking what the checksum
> algorithm was.)  This is all encrypted under the family key using "~another
> mode <grin>~".

One of my concerns from the beginning of the Clipper/Capstone proposal was
that the LEAF would not be protected to the same extent as the primary
traffic.  This paragraph confirms that the LEAF is encrypted at least
differently.

The RISK here is that the session keys may be vulnerable to a less rigorous
cryptographic attack than the traffic itself.  So it may not be necessary to
even go through the dance with the escrow agencies to compromise a
Clipper/Capstone chip.  Of course, the Skipjack algorithm would still be
required for decrypting the traffic, but it would still appear that this is a
vulnerability.  I wish this point had come out earlier.

Roy M. Silvernail    roy@sendai.cybrspc.mn.org

From comp.risks Sat Feb 12 16:26:04 1994
Date: Fri, 11 Feb 94 12:03:08 -0500
From: padgett@tccslr.dnet.mmc.com (A. Padgett Peterson)
Subject: Coincidences

"Once is happenstance, twice is coincidence, three times is enemy action"
_You Only Live Twice_ by Ian Fleming

On February 3rd, the CERT issued a warning concerning password breaking
sniffers that had compromised thousands of passwords on the Internet.
This was picked up by thousands of newspapers.

One line read "The best long term solution...is to reduce the transmission
of reusable passwords in clear-text over the network."

I am told that this problem had been known by experts for quite some time
before the alert.

On February 4th, the administration reaffirmed the Clipper/Capstone initiative.

Now I am waiting for the announcement of a "Capstone Ethernet Card" that will
protect "Information Superhighway" users from such sniffers. Number three ?

Padgett

From comp.risks Sat Feb 12 16:27:46 1994
Date: Fri, 11 Feb 1994 14:09:16 -0500 (EST)
From: denning@cs.cosc.georgetown.edu (Dorothy Denning)
Subject: Re: Campaign and Petition Against Clipper (RISKS-15.48 and 15.50)

The following comments are in response to responses posted in RISKS-15.50
on my earlier comments in RISKS-15.48:  

>From Marc Rotenberg:
> 
> The NSA is responsible for foreign signal interception.  It has no legal
> authority to conduct wire surveillance.  What are the NSA's "national
> security" interests in domestic wire surveillance?

I do not believe that NSA has any particular interest in domestic wire
surveillance.  I expect their concern is that if a product with a very
strong algorithm such as SKIPJACK were to be manufactured without keys
being escrowed, then such products would be very attractive on the
foreign black market (presumably, such products would not be
exportable) where they could interfere with foreign intelligence.

> The FBI made certain claims that cryptography was impeding criminal
> investigation conducted by wiretap.  CPSR investigated the FBI's claims by
> filing a Freedom of Information Act suit to obtain the relevant documents.
> The documents provided to us by the Department of Justice revealed that none
> of the FBI field officers had encountered any obstacles.  The Department of
> Justice has just informed us that they provided to us all relevant documents
> concerning the Clipper proposal.

In testimony before the Computer Systems Security and Privacy Advisory
Board (CSSPAB) at NIST, James Kallstrom of the FBI said that encryption
was stymying the effort in more than three but less than ten of ongoing
cases.  The FBI does not give details of ongoing investigations, so this
information would not be available through FOIA.

> There is one reported case where cryptography made it difficult for law
> enforcement to obtain evidence. That case concerned reading the contents of a
> file on a hard disk after it was seized.
> 
> If this is the problem that the Clipper proposal is intended to solve, then
> the key escrow scheme must be extended to every single encrypted file -- not
> just encrypted communications -- everywhere in the world.

I've heard of 3 cases now where encrypted files could not be decrypted, 
but law enforcers seem to be much more concerned about communications
than stored files.  Clipper does not address file encryption.

> An FBI legislative proposal now under consideration at the White House would
> mandate a Clipper-like scheme. That proposal is backed by fines up to $10,000
> per day and jail time.

Everything I've seen has said Clipper is voluntary.  Quoting from the standard:
"This standard does not mandate the use of escrowed encryption devices by
Federal government agencies, the private sector or other levels of government."
Dept. of Commerce, NIST, Docket No. 930659-4017, RIN 063-AB19, Approval
of FIPS 185, Escrowed Encryption Standard (EES).

> >  I support this objective.  Unfortunately, it is not 
> >  possible for most of us to be fully informed of the 
> >  national security implications of uncontrolled 
> >  encryption.  For very legitimate reasons, these cannot 
> >  be fully discussed and debated in a public forum.  
> 
> This assertion has never been supported by evidence.  It has been used simply
> to stifle criticism.

Certain information relating to foreign intelligence operations is
classified.  Are you saying that decisions should not be based on
classified information or that foreign intelligence information should
not be classified? 

> CPSR did not participate in the inter-agency policy review. Our position from
> the very beginning is that these decisions must be made openly.

As part of the inter-agency review, the CSSPAB was asked to sponsor hearings
on the proposal.  These were held in June.  The testimony that was presented
was given to the government.  Marc gave a presentation at those hearings, as
did David Banisar of CPSR.  Several people in the government who have been
participating in the inter-agency review were present at the hearings.  There
have been several other forums as well, including one sponsored by CPSR last
June.  Again, several people participating in the inter-agency review were
present.

> >  In the absence of understanding 
> >  the national security issues, I believe we need to 
> >  exercise some caution in believing that we can 
> >  understand the full implications of encryption on society.
> 
> This premise, if accepted, would mean that people in the United States would
> have no right to express political views when the government claimed "national
> security." Certainly, there are matters of national security that must be

I did not mean to suggest that people should not express their views.  Being
cautious is different from being silent.

>From George Talbot:
> 
> Second, law enforcement needs to get a court order to intercept phone
> communications.  I know of no such need to get a court order to intercept
> communications on a high speed network w.r.t. Capstone.  The current
> administration proposal does not require a court order to get the escrowed
> keys themselves.

You need a court order to intercept any electronic communications, including
those on high speed nets.  You need a court order to get keys.  Although the
court order is not given to the escrow agents (to protect the identity of
those under investigation), certification that one was obtained must be
presented to the escrow agents.  In addition, this certification must be
confirmed by an attorney associated with the U.S. Attorney's office (for a
Title III federal wiretap) or an attorney associated with the DOJ Office of
Intelligence Policy and Review (for a FISA wiretap).  For a local wiretap, the
certification must be submitted by the principal prosecuting attorney of the
state or political subdivision thereof.

Fred Cohen wrote:
> 
> >Hundreds of people is hardly overwhelming in a population of 250 million ...
> 
> Do you claim to believe that the great silent majority is in favor of Clipper?

No I do not.  I was merely attempting to point out what I believed was RISKy
logic.
> 
> In the light of 5,000 years of cryptographic history where experts claimed
> that systems were very strong only to find them broken soon after, I find it
> hard to trust the hand picked committee of 5 so-called experts who are given
> money and time to pass judgement on a technology that is so weak that they are
> afraid to expose it to the light of day.  If it is so strong, why not let the
> rest of the world review it? The German experts said the same thing about

We were not paid.  The main reason for not making the algorithm public
is that one could build inter-operable products that bypassed key
escrow, but that took advantage of the very strong algorithm.
> 
> Why is it that you think you understand more about the implications of
> cryptography on national security than the rest of us? This elitist crap has
> got to end.  It is bad for our country to have elitists who believe they know
> more than the rest of us dictating how we will live our lives.  It is bad for
> our country that the esteemed members of this forum do not have access to your
> rational in order to openly discuss your points of view.  It is bad for our
> country that professors at universities tell their students and the public not
> to think about the issues, but to trust that the professors know best.  If you
> want to serve the national interest, get the debate out in the open!
> 
I did not mean to suggest that I understood the national security issues.
I do not.  Nor did I mean to suggest that people should not think or
talk about the issues.

Dorothy Denning

From alt.privacy Sat Feb 12 17:13:26 1994
Xref: utcsri alt.activism:61180 alt.politics.datahighway:1352 alt.privacy:10878 alt.privacy.clipper:2115 alt.security.pgp:8524 alt.wired:3793 comp.org.eff.talk:25804 talk.politics.crypto:2482
Path: utcsri!utnut!torn!spool.mu.edu!howland.reston.ans.net!cs.utexas.edu!not-for-mail
From: mech@eff.org (Stanton McCandlish)
Newsgroups: alt.activism,alt.politics.datahighway,alt.privacy,alt.privacy.clipper,alt.security.pgp,alt.wired,comp.org.eff.talk,talk.politics.crypto
Subject: CRYPTO: DoJ's new rules for access to Clipper keys
Date: 4 Feb 1994 18:29:41 -0600
Organization: UTexas Mail-to-News Gateway
Lines: 375
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________ begin file ____

[Note: this file contains all 3 of the "AUTHORIZATION PROCEDURES..."
documents].


U.S. Department of Justice
Washington, D.C. 20530

February 4, 1994



AUTHORIZATION PROCEDURES FOR RELEASE OF ENCRYPTION KEY COMPONENTS    
     IN CONJUNCTION WITH INTERCEPTS PURSUANT TO TITLE III

The following are the procedures for the release of escrowed key 
components in conjunction with lawfully authorized interception of 
communications encrypted with a key-escrow encryption method. 
These procedures cover all electronic surveillance conducted 
pursuant to Title III of the Omnibus crime Control and Safe 
Streets Act of 1968, as amended (Title III), Title 18, United 
States Code, Section 2510 et seq.

	1) In each case there shall be a legal authorization for the 
interception of wire and/or electronic communications.

	2) All electronic surveillance court orders under Title III 
shall contain provisions authorizing after-the-fact minimization, 
pursuant to 18 U.S.C. 2518(5), permitting the interception and 
retention of coded communications, including encrypted 
communications.

	3) In the event that federal law enforcement agents discover 
during the course of any lawfully authorized interception that 
communications encrypted with a key escrow encryption method are 
being utilized, they may obtain a certification from the 
investigative agency conducting the investigation, or the Attorney 
General of the United States or designee thereof. Such 
certification shall

		(a) identify the law enforcement agency or other 
authority conducting the interception and the person providing the 
certification; 

		(b) certify that necessary legal authorization has been 
obtained to conduct electronic surveillance regarding these 
communications; 

		(c) specify the termination date of the period for which 
interception has been authorized; 

		(d) identify by docket number or other suitable method 
of specification the source of the authorization;

		(e) certify that communications covered by that 
authorization are being encrypted with a key-escrow encryption 
method;

		(f) specify the identifier (ID) number of the key escrow 
encryption chip providing such encryption; and

		(g) specify the serial (ID) number of the key-escrow 
decryption device that will be used by the law enforcement agency 
or other authority for decryption of the intercepted 
communications.

	4) The agency conducting the interception shall submit this 
certification to each of the designated key component escrow 
agents. If the certification has been provided by an investigative 
agency, as soon thereafter as practicable, an attorney associated 
with the United States Attorney's Office supervising the 
investigation shall provide each of the key component escrow 
agents with written confirmation of the certification.

	5) Upon receiving the certification from the requesting 
investigative agency, each key component escrow agent shall 
release the necessary key component to the requesting agency. The 
key components shall be provided in a manner that assures they 
cannot be used other than in conjunction with the lawfully 
authorized electronic surveillance for which they were requested.

	6) Each of the key component escrow agents shall retain a 
copy of the certification of the requesting agency, as well as the 
subsequent confirmation of the United States Attorney's Office. In 
addition, the requesting agency shall retain a copy of the 
certification and provide copies to the following for retention in 
accordance with normal record keeping requirements:

		(a) the United States Attorney's Office supervising the 
investigation, and
		
		(b) the Department of Justice, Office of Enforcement 
Operations.

	7) Upon, or prior to, completion of the electronic 
surveillance phase of the investigation, the ability of the 
requesting agency to decrypt intercepted communications shall 
terminate, and the requesting agency may not retain the key 
components.

	8) The Department of Justice shall, in each such case,

		(a) ascertain the existence of authorizations for 
electronic surveillance in cases for which escrowed key components 
have been released;

		(b) ascertain that key components for a particular key 
escrow encryption chip are being used only by an investigative 
agency authorized to conduct electronic surveillance of 
communications encrypted with that chip; and 

		(c) ascertain that, no later than the completion of the 
electronic surveillance phase of the investigation, the ability of 
the requesting agency to decrypt intercepted communications is 
terminated.

	9) In reporting to the Administrative Office of the United 
States Courts pursuant to 18 U.S.C. Section 2519(2), the Assistant 
Attorney General for the Criminal Division shall, with respect to 
any order for authorized electronic surveillance for which 
escrowed encryption components were released and used for 
decryption, specifically note that fact.

These procedures do not create, and are not intended to create, 
any substantive rights for individuals intercepted through 
electronic surveillance, and noncompliance with these procedures 
shall not provide the basis for any motion to suppress or other 
objection to the introduction of electronic surveillance evidence 
lawfully acquired.

*************************************************************



U.S. Department of Justice
Washington, D.C. 20530

February 4, 1994



AUTHORIZATION PROCEDURES FOR RELEASE OF ENCRYPTION KEY COMPONENTS
    IN CONJUNCTION WITH INTERCEPTS PURSUANT TO STATE STATUTES

Key component escrow agents may only release escrowed key 
components to law enforcement or prosecutorial authorities for use 
in conjunction with lawfully authorized interception of 
communications encrypted with a key-escrow encryption method. 
These procedures apply to the release of key components to State 
and local law enforcement or prosecutorial authorities for use in 
conjunction with interceptions conducted pursuant to relevant 
State statutes authorizing electronic surveillance, and Title III 
of the Omnibus crime Control and Safe Streets Act of 1968, as 
amended, Title 18, United States Code, Section 2510 et seq.

	1) The state or local law enforcement or prosecutorial 
authority must be conducting an interception of wire and/or 
electronic communications pursuant to lawful authorization.

	2) Requests for release of escrowed key components must be 
submitted to the key component escrow agents by the principal 
prosecuting attorney of the State, or of a political subdivision 
thereof, responsible for the lawfully authorized electronic 
surveillance.

	3) The principal prosecuting attorney of such State or 
political subdivision of such State shall submit with the request 
for escrowed key components a certification that shall

		(a) identify the law enforcement agency or other 
authority conducting the interception and the prosecuting attorney 
responsible therefor; 

		(b) certify that necessary legal authorization for 
interception has been obtained to conduct electronic surveillance 
regarding these communications; 

		(c) specify the termination date of the period for which 
interception has been authorize;

		(d) identify by docket number or other suitable method 
of specification the source of the authorization;

		(e) certify that communications covered by that 
authorization are being encrypted with a key-escrow encryption 
method;

		(f) specify the identifier (ID) number of the key escrow 
chip providing such encryption; and 

		(g) specify the serial (ID) number of the key-escrow 
decryption device that will be used by the law enforcement agency 
or other authority for decryption of the intercepted 
communications.

	4) Such certification must be submitted by the principal 
prosecuting attorney of that State or political subdivision to 
each of the designated key component escrow agents.

	5) Upon receiving the certification from the principal 
prosecuting attorney of the State or political subdivision, each 
key component escrow agent shall release the necessary key 
component to the intercepting State or local law enforcement 
agency or other authority. The key components shall be provided in 
a manner that assures they cannot be used other than in 
conjunction with the lawfully authorized electronic surveillance 
for which they were requested.

	6) Each of the key component escrow agents shall retain a 
copy of the certification of the principal prosecuting attorney of 
the State or political subdivision. In addition, such prosecuting 
attorney shall provide a copy of the certification to the 
Department of Justice, for retention in accordance with normal 
record keeping requirements.

	7) Upon, or prior to, completion of the electronic 
surveillance phase of the investigation, the ability of the 
intercepting law enforcement agency or other authority to decrypt 
intercepted communications shall terminate, and the intercepting 
law enforcement agency or other authority may not retain the key 
components.

	8) The Department of Justice may, in each such case, make 
inquiry to

		(a) ascertain the existence of authorizations for 
electronic surveillance in cases for which escrowed key components 
have been released;

		(b) ascertain that key components for a particular key 
escrow encryption chip are being used only by an investigative 
agency authorized to conduct electronic surveillance of 
communications encrypted with that chip; and

		(c) ascertain that, no later than the completion of the 
electronic surveillance phase of the investigation, the ability of 
the requesting agency to decrypt intercepted communications is 
terminated.

	9) In reporting to the Administrative Office of the United 
States Courts pursuant to 18 U.S.C. Section 2519(2), the principal 
prosecuting attorney of a State or of a political subdivision of a 
State may, with respect to any order for authorized electronic 
surveillance for which escrowed encryption components were 
released and used for decryption, desire to note that fact.

These procedures do not create, and are not intended to create, 
any substantive rights for individuals intercepted through 
electronic surveillance, and noncompliance with these procedures 
shall not provide the basis for any motion to suppress or other 
objection to the introduction of electronic surveillance evidence 
lawfully acquired.

*************************************************************



U.S. Department of Justice
Washington D.C. 20530

February 4, 1994



AUTHORIZATION PROCEDURES FOR RELEASE OF ENCRYPTION KEY COMPONENTS
         IN CONJUNCTION WITH INTERCEPTS PURSUANT TO FISA

The following are the procedures for the release of escrowed key 
components in conjunction with lawfully authorized interception of 
communications encrypted with a key-escrow encryption method. 
These procedures cover all electronic surveillance conducted 
pursuant to the Foreign Intelligence Surveillance Act (FISA), Pub. 
L. 95-511, which appears at Title 50, U.S. Code, Section 1801 et 
seq.

	1 ) In each case there shall be a legal authorization for the 
interception of wire and/or electronic communications.

	2) In the event that federal authorities discover during the 
course of any lawfully authorized interception that communications 
encrypted with a key-escrow encryption method are being utilized, 
they may obtain a certification from an agency authorized to 
participate in the conduct of the interception, or from the 
Attorney General of the United States or designee thereof. Such 
certification shall

		(a) identify the agency participating in the conduct of 
the interception and the person providing the certification;

		to conduct electronic surveillance regarding these 
communications;

		(c) specify the termination date of the period for which 
interception has been authorized;

		(d) identify by docket number or other suitable method 
of specification the source of the authorization;

		(e) certify that communications covered by that 
authorization are being encrypted with a key-escrow encryption 
method;

		(f) specify the identifier (ID) number of the key escrow 
encryption chip providing such encryption; and

		(g) specify the serial (ID) number of the key-escrow 
decryption device that will be used by the agency participating in 
the conduct of the interception for decryption of the intercepted 
communications.

	4) This certification shall be submitted to each of the 
designated key component escrow agents. If the certification has 
been provided by an agency authorized to participate in the 
conduct of the interception, a copy shall be provided to the 
Department of Justice, Office of Intelligence Policy and Review. 
As soon as possible, an attorney associated with that office shall 
provide each of the key component escrow agents with written 
confirmation of the certification.

	5) Upon receiving the certification, each key component 
escrow agent shall release the necessary key component to the 
agency participating in the conduct of the interception. The key 
components shall be provided in a manner that assures they cannot 
be used other than in conjunction with the lawfully authorized 
electronic surveillance for which they were requested.

	6) Each of the key component escrow agents shall retain a 
copy of the certification, as well as the subsequent written 
confirmation of the Department of Justice, Office of Intelligence 
Policy and Review.

	7) Upon, or prior to, completion of the electronic 
surveillance phase of the investigation, the ability of the agency 
participating in the conduct of the interception to decrypt 
intercepted communications shall terminate, and such agency may 
not retain the key components.

	8)   The Department of Justice shall, in each such case,

		(a) ascertain the existence of authorizations for 
electronic surveillance in cases for which escrowed key components 
have been released;

		(b) ascertain that key components for a particular key 
escrow encryption chip are being used only by an agency authorized 
to participate in the conduct of the interception of 
communications encrypted with that chip; and 

		(c) ascertain that, no later than the completion of the 
electronic surveillance phase of the investigation, the ability of 
the agency participating in the conduct of the interception to 
decrypt intercepted communications is terminated.

	9) Reports to the House Permanent Select Committee on 
Intelligence and the Senate Select Committee on Intelligence, 
pursuant to Section 108 of FISA, shall, with respect to any order 
for authorized electronic surveillance for which escrowed 
encryption components were released and used for decryption, 
specifically note that fact.

These procedures do not create, and are not intended to create, 
any substantive rights for individuals intercepted through 
electronic surveillance, and noncompliance with these procedures 
shall not provide the basis for any motion to suppress or other 
objection to the introduction of electronic surveillance evidence 
lawfully acquired.

________ end file ______

-- 
Stanton McCandlish * mech@eff.org * Electronic Frontier Found. OnlineActivist
F O R   M O R E   I N F O,    E - M A I L    T O:     I N F O @ E F F . O R G 
O  P  E  N    P  L  A  T  F  O  R  M     O  N  L  I  N  E    R  I  G  H  T  S
V  I   R   T   U   A   L   C  U   L   T   U   R   E      C  R   Y   P   T   O

From alt.privacy Sat Feb 12 17:14:10 1994
Xref: utcsri alt.activism:61184 alt.politics.datahighway:1354 alt.privacy:10881 alt.privacy.clipper:2117 alt.security.pgp:8526 alt.wired:3795 comp.org.eff.talk:25808 talk.politics.crypto:2485
Path: utcsri!utnut!torn!howland.reston.ans.net!cs.utexas.edu!not-for-mail
From: mech@eff.org (Stanton McCandlish)
Newsgroups: alt.activism,alt.politics.datahighway,alt.privacy,alt.privacy.clipper,alt.security.pgp,alt.wired,comp.org.eff.talk,talk.politics.crypto
Subject: CRYPTO: DoS's Harris on Crypto Export Control Reform
Date: 4 Feb 1994 18:44:11 -0600
Organization: UTexas Mail-to-News Gateway
Lines: 97
Sender: daemon@cs.utexas.edu
Distribution: inet
Message-ID: <199402050044.TAA03248@eff.org>
NNTP-Posting-Host: cs.utexas.edu

_____ begin file _____

United States Department of State
Washington, D.C. 20520

EMBARGOED FOR RELEASE, 3:00 PM EST, FEB. 4, 1994



Statement of
Dr. Martha Harris
Deputy Assistant Secretary of State
for Political-Military Affairs
February 4, 1994


Encryption -- Export Control Reform


The Secretary of State is announcing today measures arising from 
the Administration's decision to reform export control procedures 
applicable to products incorporating encryption technology. These 
reforms are part of the Administration's effort to eliminate 
unnecessary controls and ensure efficient implementation. The 
reforms will simplify encryption product export licensing and 
speed the review of encryption product exports, thus helping U.S. 
manufacturers to compete more effectively in the global market. 
While there will be no changes in the types of equipment 
controlled by the Munitions List, we are announcing measures to 
expedite licensing.

Last year the President announced an initiative to encourage U.S. 
manufacturers and users of encryption to take advantage of a 
government technology (the key-escrow chip) that provides 
excellent security while ensuring that the Government has a means 
to decode the encryption when lawfully authorized, such as when 
executing a court-authorized warrant in connection with a criminal 
investigation. At the time he announced this initiative, the 
President directed a comprehensive review of U.S. policy regarding 
domestic use and export of encryption technology. The reforms we 
are announcing today result from that review.

The President has determined that vital U.S. national security and 
law enforcement interests compel maintaining appropriate control 
of encryption. Still, there is much that can be done to reform 
existing controls to ensure that they are efficiently implemented 
and to maintain U.S. leadership in the world market for encryption 
technology. Accordingly, the President has asked the Secretary of 
State to take immediate action to implement a number of procedural 
reforms. The reforms are:

* License Reform: Under new licensing arrangements, encryption 
manufacturers will be able to ship their products from the United 
States directly to customers within approved regions without 
obtaining individual licenses for each end user. This will improve 
the ability of our manufacturers to provide expedited delivery of 
products, and to reduce shipping and tracking costs. It should 
also reduce the number of individual license requests, especially 
for small businesses that cannot afford international 
distributors.

* Rapid review of export license applications: A significant 
number of encryption export license applications can be reviewed 
more quickly. For such exports, we have set a license turnaround 
goal of two working days.

* Personal use exemption: We will no longer require that U.S. 
citizens obtain an export license prior to taking encryption 
products out of the U.S. temporarily for their own personal use. 
In the past, this requirement caused delays and inconvenience for 
business travellers.

* Allow exports of key-escrow encryption: After initial review, 
key-escrow encryption products may now be exported to most end 
users. Additionally, key-escrow products will qualify for special 
licensing arrangements.

These reforms should have the effect of minimizing the impact of 
export controls on U.S. industry. The Department of State will 
take all appropriate actions to ensure that these reforms are 
implemented as quickly as possible. The Secretary of State asks 
that encryption product manufacturers evaluate the impact of these 
reforms over the next year and provide feedback both on how the 
reforms have worked out and on recommendations for additional 
procedural reforms.

The contact point for further information on these reforms is Rose 
Biancaniello, Office of Defense Trade Controls, Bureau of 
Political-Military Affairs, Department of State, (703) 875-6644.

_____ end file ____

-- 
Stanton McCandlish * mech@eff.org * Electronic Frontier Found. OnlineActivist
F O R   M O R E   I N F O,    E - M A I L    T O:     I N F O @ E F F . O R G 
O  P  E  N    P  L  A  T  F  O  R  M     O  N  L  I  N  E    R  I  G  H  T  S
V  I   R   T   U   A   L   C  U   L   T   U   R   E      C  R   Y   P   T   O

From alt.privacy Sat Feb 12 17:19:45 1994
Path: utcsri!utnut!cs.utexas.edu!howland.reston.ans.net!vixen.cso.uiuc.edu!moe.ksu.ksu.edu!abc.ksu.ksu.edu!news
From: kkruse@abc.ksu.ksu.edu (Korey J. Kruse)
Newsgroups: alt.privacy
Subject: NEWS STORY: Clipper chip OK'd by gov't
Date: 11 Feb 1994 17:53:13 -0600
Organization: Kansas State University
Lines: 82
Message-ID: <2jh5p9INN6id@abc.ksu.ksu.edu>
NNTP-Posting-Host: abc.ksu.ksu.edu
Summary: The gov't plans on making the clipper chip the standard in encryption
Keywords: clipper chip privacy crypto


Here's an article that I am reprinting for general information purposes.
It appeared in the LA Times paper on Sat, Feb 5, 1994

-----------BEGIN fbi.nsa.win.fight.txt------------------snip snip snip--

HEADLINE: FBI, NSA Win Fight for High-Tech Eavesdropping Communications: White House ruling gives agencies continued access
Publication Date: Saturday February 5, 1994
BYLINE: JOHN MINTZ JOHN SCHWARTZ

The Clinton Administration on Friday rejected the arguments of the
computer industry and civil libertarians and sided with national security
agencies that sought to guarantee their ability to intercept and decode
messages sent over computer and telephone lines.

   The White House had agreed to review initiatives begun during the
George Bush Administration--and pursued under President Clinton--that
favored the FBI and the National Security Agency in their efforts to
ensure that the agencies can continue to read and listen to
communications despite rapidly evolving encryption technologies.

   The Commerce Department announced Friday that a nine-month review of
the issue--which has set off impassioned disputes between high-technology
industries and the government--had resulted in a decision to make no
major policy changes.

   That means the Administration will continue longstanding restrictions
on exports of powerful encryption devices that the NSA cannot crack, and
continue to encourage use of NSA-developed encryption gear, called the
"Clipper Chip," by all U.S. firms. The Clipper Chip makes it relatively
easy for the government to eavesdrop on encrypted communications.

   Administration officials said that the "keys" to unlock messages would
be held by the National Institute of Standards and Technology and the
Treasury Department. Police agencies obtaining court authority to wiretap
will go to those agencies to acquire the two-part key.

   Taken together, the actions are seen by computer and software
companies as a government attempt to keep powerful encryption technology
out of both foreign and domestic markets.

   Further, government officials said, the Administration is expected in
a few weeks to endorse an FBI proposal that U.S. telecommunications firms
be required to guarantee that law enforcement agencies will have the
ability to tap phone and computer lines regardless of where the
technology goes.

   At the core of these high-tech disputes lies a fundamental conflict
between Americans' cherished privacy rights and the government's
investigative needs.

   Consumers have long known that most of their business transactions are
recorded in corporate and government databases that are already shuttled
around the country on communications lines.

   The prospect of an information superhighway that puts even more
transactions on-line--from medical records to pay-per-view movie
selections--raises the ante.

   "We can't just trust legal protections," said Jerry Berman, chairman
of a coalition of business executives and civil libertarians fighting the
Administration plan.

   However, James K. Kallstrom, the FBI's technology chief, said that
without wiretapping capabilities, "you're building a sanctuary for
criminality to go unfettered."

   U.S. high-tech executives say the Administration's position will prove
to be in vain because terrorists and criminals can already buy powerful
encryption technologies worldwide.

   The Business Software Alliance, which represents firms such as
Microsoft Corp., Novell Inc. and Apple Computer Inc., on Friday expressed
"deep disappointment and regret" about the Administration's stance.

-----------END   fbi.nsa.win.fight.txt------------------snip snip snip--

-- 
"Law never made men a whit more just; and, by     | Korey Jerome Kruse
 means of their respect for it, even the well     | kkruse@ksuvm.ksu.edu
 deposed are daily made the agents of injustice"  | kkruse@ksuvm.bitnet
    --Henry David Thoreau "Civil Disobedience"    | kkruse@ksu.ksu.edu

From sci.crypt Sun Feb 13 14:37:03 1994
Xref: utcsri alt.activism:61676 alt.politics.datahighway:1535 alt.privacy.clipper:2359 alt.security.pgp:8763 comp.org.eff.talk:26562 sci.crypt:23593
Newsgroups: alt.activism,alt.politics.datahighway,alt.privacy.clipper,alt.security.pgp,comp.org.eff.talk,sci.crypt
Path: utcsri!utnut!cs.utexas.edu!usc!howland.reston.ans.net!europa.eng.gtefsd.com!library.ucla.edu!csulb.edu!csus.edu!netcom.com!gillw.slip.netcom.com!gillw
From: Gill Winograd <gillw@acm.org>
Subject: Re: EFF Wants You (to add your voice to the crypto fight!)
Message-ID: <netnewsCL50AJ.6zF@netcom.com>
X-Xxmessage-Id: <A982B619CE02A255@gillw.slip.netcom.com>
X-Xxdate: Sat, 12 Feb 94 00:36:41 GMT
Sender: netnews@netcom.com (USENET Administration)
Organization: USA
X-Useragent: Version 1.1.3
References: <map=1994Feb08153615@gaak.bbn.com> <2jgr0h$nri@tornews.torolab.ibm.com>
Date: Sun, 13 Feb 1994 00:35:06 GMT
Lines: 30

In article <2jgr0h$nri@tornews.torolab.ibm.com> Ian R. Ameline,
ameline@provence.torolab.ibm.com writes:

Quoting Dorothy Demming:

>>     Mr. Rotenberg said "We want the public to understand the full
>>     implications of this plan.  Today it is only a few experts and
>>     industry groups that understand the proposal. 
>>
>>I support this objective.  Unfortunately, it is not possible for most
of us 
>> to be fully informed of the national security implications of
uncontrolled
>>encryption.  For very legitimate reasons, these cannot be fully
discussed 
>>and debated in a public forum.  It is even difficult to talk about the
full
>>implications of encryption on law enforcement.

It is clear why the NSA chose Ms. Demming to rubberstamp their proposal.
If only persons approved by NSA can discuss the issues, and only they can
have a "worthwhile and informed" opinion, why bother? Just let NSA set
policy directly without the sham.
  


Gill Winograd               | "L!accent du pays o! l!on est n! demeure 
gillw@acm.org               | dans l!esprit et dans le coeur, comme
Los Angeles, California     | dans le langage."
                            |      - La Rochefoucauld

From comp.risks Sat Feb 19 18:58:06 1994
Date: Tue, 15 Feb 1994 01:13:48 -0800
From: "D. J. Bernstein" <djb@silverton.berkeley.edu>
Subject: Who says the Clipper issue is complicated?

``I would like to caution people about signing the petition,'' Dorothy
Denning said. ``The issues are extremely complex and difficult.''%1

Clipper (by which I mean EES/Skipjack/Clipper/Capstone collectively)
does raise some mildly tricky issues, which I'll discuss later. But 
those are _side_ issues. The basic argument%2 against Clipper is simple
and deserves emphasis.

Clipper is bad because it is unfair competition in the crypto market.

Who has paid for the design and implementation of Clipper over the past
decade?%3 The taxpayers. Who has paid for ramping up Clipper production
at Mykotronx? The taxpayers. Who pays for the lawyers and accountants
keeping Clipper on course, and the NSA-FBI team which visits Bell Labs
and other locations to promote Clipper? The taxpayers. Who will pay for
the key escrow ``service,'' probably an agency with dozens of people,
including armed guards? The taxpayers.

I resent being forced to pay for Clipper's development and adoption.

Is this Clipper subsidy the only way that the government is interfering
in the market? Not at all. Consider, for example, export controls. A
private company, even if it doesn't see a foreign market for its
encryption products, has to register as an arms dealer and take
precautions to avoid selling crypto to non-citizens. These restrictions
have been dramatically reduced for Clipper.%4

Are these points a matter of dispute? Is this just my view? No. The
government knows full well that Clipper is unfair competition.

In fact, unfair competition is the goal of Clipper policy. According to
Jerry Berman, ``the reason [for various Clipper-related actions] was
stated bluntly at the [4 Feb 94 White House] briefing: to frustrate
competition with Clipper by other powerful encryption schemes by making
them difficult to market, and to "prevent" strong encryption from
leaving the country...''%5

Now, here's the problem: The government talks about Clipper's market
interference as a _good_ thing.

Of course, I see it as a bad thing. America's need for data protection
would be fully served by a healthy encryption industry; let's eliminate
crypto export controls! If you agree with me---if you want a free crypto
market---then you should oppose Clipper. There's nothing complicated
about this.

Let me close by briefly addressing a few side issues, mostly reasons
that Clipper is risky when compared to other crypto available today.

1. There is a RISK that the Skipjack algorithm is, intentionally or
unintentionally, weak. Suppose that in 1986 an NSA cryptanalyst noticed 
a subtle but wide hole in Skipjack, which was relatively new at the 
time. Why would it be in NSA's interest to divulge this information?
Denning points out that we don't _know_ of any holes, but that's
axiomatic---Clipper would be dead otherwise. One cannot deny the _risk_,
exacerbated by secrecy, of a hole.

2. There is a RISK that Clipper will be easier to break than the basic
Skipjack algorithm. Given two encryption algorithms one can (carefully)
compose them to produce a ``double encryption'' which is strong even if
one of the algorithms is weak. Clipper also has two encryption steps,
but for a different reason---one encryption is transparent to the user,
the other transparent to the FBI. If either of these different%6 steps
is weak then Clipper is weak. ``Half encryption,'' I'd say.

3. There is a RISK that key escrow security will be compromised, either
by bribes from the outside or by corruption from the top. It is highly
dangerous to keep so many keys under the control of such a small group 
of people.

4. There is a RISK that, if Clipper fails to dominate the market, the
government will simply outlaw all non-escrowed encryption. ``This is a
fundamental policy question which will be considered during the broad
policy review.''%7 Alternatively the government could outlaw Clipper
superencryption while requiring Clipper in government procurements, new
phones, and so on. Denning points out that Clipper is voluntary right
now, but the mere fact that the government brought up the possibility
of a Clipper law means that there's a risk.

Footnotes:

%1  To sign the CPSR Clipper petition, send a message to the address
clipper.petition@cpsr.org with "I oppose Clipper" in the subject header.
%2  This argument was mentioned briefly by Geoff Kuenning, RISKS-15.50,
among a cast of thousands.
%3  See Matt Blaze's message in RISKS-15.48. ``They said ... that
Skipjack began development "~about 10 years ago.~"''
%4  See ftp.eff.org:pub/EFF/Policy/Crypto/harris_export.statement:
``After initial review, key-escrow encryption products may now be
exported to most end users. Additionally, key-escrow products will
qualify for special licensing arrangements.''
%5  See ftp.eff.org:pub/EFF/Policy/Crypto/wh_crypto.eff.
%6  See Roy M. Silvernail's message in RISKS-15.52.
%7  See the initial White House Clipper press release, 930416.

---Dan

From comp.society.cu-digest Sat Feb 19 21:10:55 1994
Date: Fri, 11 Feb 1994 14:21:35 -0600
From: CuD Moderators <cudigest@mindvox.phantom.com>
Subject: File 5--Rep. Cantwell's Remarks on HR 3627 (From EFF ftp archives)

Following are Representative Maria Cantwell's remarks to the House of
Representatives when she introduced H.R. 3627, Legislation to Amend the
Export Administration Act of 1979.  Her synopsis of the bill appears at the
end.  These remarks appeared in the Congressional Record on November 24,
1993, at Volume 139, Page 3110.

Please write to Rep. Cantwell today at cantwell@eff.org letting her know
you support her bill. In the Subject header of your message, type "I
support HR 3627." In the body of your message, express your reasons for
supporting the bill. EFF will deliver printouts of all letters to Rep.
Cantwell. With a strong showing of support from the Net community, Rep.
Cantwell can tell her colleagues on Capitol Hill that encryption is not
only an industry concern, but also a grassroots issue. *Again: remember to
put "I support HR 3627" in your Subject header.*

The text of the Cantwell bill can be found with the any of the following
URLs (Universal Resource Locaters):

ftp://ftp.eff.org/pub/EFF/Policy/Legislation/cantwell.bill
http://www.eff.org/ftp/EFF/Policy/Legislation/cantwell.bill
gopher://gopher.eff.org/00/EFF/legislation/cantwell.bill

As of Feb. 9, 1994, co-sponsors of this bill were: Wyden (OR), Orton (UT),
Manzulo (IL), Edwards (CA).  Contact shabbir@panix.com to find out if the
list is growing.

**********************************************************************

        Mr. Speaker, I am today introducing legislation to amend the Export
Administration Act of 1979 to liberalize export controls on software with
encryption capabilities.

        A vital American industry is directly threatened by unilateral U.S.
Government export controls which prevent our companies from meeting
worldwide user demand for software that includes encryption capabilities to
protect computer data against unauthorized disclosure, theft, or
alteration.

        The legislation I am introducing today is needed to ensure that
American companies do not lose critical international markets to foreign
competitors that operate without significant export restrictions. Without
this legislation, American software companies, some of America's star
economic performers, have estimated they stand to lose between $6 and $9
billion in revenue each year. American hardware companies are already
losing hundreds of millions of dollars in lost computer system sales
because increasingly sales are dependent on the ability of a U.S. firm to
offer encryption as a feature of an integrated customer solution involving
hardware, software, and services.

        The United States' export control system is broken. It was designed
as a tool of the cold-war, to help fight against enemies that no longer
exist. The myriad of Federal agencies responsible for controlling the flow
of exports from our country must have a new charter, recognizing today's
realities.

        Next year, the House Foreign Affairs Subcommittee of Economic
Policy, Trade and the Environment, of which I am a member, will be marking
up legislation to overhaul the Export Administration Act. It is my hope
that the legislation I introduce today will be included in the final Export
Administration Act rewrite.

        This legislation takes some important steps to resolve a serious
problem facing some of our most dynamic industries. It would give the
Secretary of Commerce exclusive authority over dual use information
security programs and products, eliminates the requirement for export
licenses for generally available software with encryption capabilities, and
requires the Secretary to grant such validated licenses for exports of
other software with encryption capabilities to any country to which we
already approve exports for foreign financial institutions.

        The importance of this legislation cannot be overstated. America's
computer software and hardware companies, including such well-known
companies as Apple, DEC, Hewlett-Packard, IBM, Lotus, Microsoft, Novell,
and WordPerfect, have been among the country's most internationally
competitive firms earning more than one-half of their revenues from
exports.

        The success of American software and hardware companies overseas is
particularly dramatic and the importance of foreign markets is growing.
Currently, American software companies hold a 75 percent worldwide market
share and many derive over 50 percent of their revenues from foreign sales.
American computer hardware manufacturers earn more than 60 percent of their
revenues from exports.

        As my colleagues are well-aware, we are participants in a new
information age that is quickly transforming local and national
marketplaces and creating new international marketplaces where none
previously existed. President Clinton and Vice President Gore have both
spent considerable time explaining their vision of the National Information
Infrastructure that is essential to our continued economic growth.

        Part of that infrastructure is already in place. International
business transactions that just a few years ago took days or weeks or
months to complete can now be accomplished in minutes.

        Driving this marketplace transformation is the personal computer.
And, at the heart of every personal computer is computer software. Even the
most computer illiterate of us recognize that during the past decade,
computer prices have dropped dramatically while computer capabilities have
increased exponentially. That combination has made it possible to exchange
information and conduct business at a scale that was considered science
fiction only a few years ago.

        Indeed, we all now rely on computer networks to conduct business
and exchange information. Whether it be the electronic mail or "e-mail"
system that we all now use in our congressional offices or the automated
teller system relied on to conduct our personal financial affairs, we rely
on computer networks of information.

        In the future, individuals will use information technologies to
conduct virtually any of the routine transactions that they do today in
person, over the telephone, and through paper files. From personal
computers at home, in schools, and in public libraries, they will access
books, magazine articles, videos, and multimedia resources on any topic
they want. People will use computer networks to locate and access
information about virtually any subject imaginable, such as background on
the candidates in local political races, information on job opportunities
in distant cities, the weather in the city or country they will be visiting
on their vacation, and the highlights of specific sports events.

        Consumers will use their computers and smart televisions to shop
and pay for everything from clothing and household goods to airline
tickets, insurance, and all types of on-line services. Electronic records
of the items they purchase and their credit histories will be easy to
compile and maintain.

        Individuals will access home health programs from their personal
computers for instant advice on medical questions, including mental health
problems, information about the symptoms of AIDS, and a variety of personal
concerns that they would not want other family members, or their neighbors
and employers to know about. They will renew their prescriptions and obtain
copies of their lab results electronically.

        The U.S. economy is becoming increasingly reliant on this
information network. While we may not often think about these networks,
they now affect every facet of our professional, business, and personal
lives. They are present when we make an airline reservation; when we use a
credit card to make a purchase; or when we visit a doctor who relies on a
computer network to store our medical information or to assist in making a
diagnosis. These networks contain information concerning every facet of our
lives.

        For businesses, the reliance on information security is even
greater. While businesses rely on the same commercial use networks that
individual consumers use, in addition, businesses are now transmitting
information across national and international borders with the same ease
that the information was once transmitted between floors of the same office
building.

        While all of this information exchange brings with it increased
efficiencies and lower operating costs, it has also brought with it the
need to protect the information from improper use and tampering.

Information security is quickly becoming a top priority for businesses that
rely on computer networks to conduct business. According to a recent survey
of Fortune 500 companies conducted for the Business Software Alliance, 90
percent of the participants said that information security was important to
their operations. Indeed, almost half of the Fortune 500 companies surveyed
recently stated that data encryption was important to protect their
information. One third of those companies said they look for encryption
capabilities when buying software.

        The challenge for information security can be met by America's
computer companies. American companies are deeply involved in efforts to
ensure that the information transmitted on computer networks is secure.
Numerous companies have developed and are developing software products with
encryption capabilities that can ensure that transmitted information is
received only by the intended user and that it is received in an unaltered
form. Those encryption capabilities are based on mathematical formulas or
logarithms of such a size that makes it almost impossible to corrupt data
sources or intercept information being transmitted.

        I wish I could stand here today and tell my colleagues that U.S.
export control laws were working and encryption technology was only
available to American software companies.

        However, this is not the case. Sophisticated encryption technology
has been available as a published public standard for over a decade and
many private sources, both domestic and foreign, have developed encryption
technology that they are marketing to customers today. It is an industry
where commercial competition is fierce and success will go to the swift.

        Software is being developed and manufactured with encryption
capabilities for the simple reason that software customers are demanding
it. Computer users recognize the vulnerability of our information systems
to corruption and improper use and are insisting on protection. That
protection will be purchased or obtained from American companies or from
foreign software companies. The choice is not whether the protection will
be obtained, but from which company.

        Incredible as it may seem to most of my colleagues, the Executive
Branch has seen fit to regulate exports of American computer software with
encryption capabilities -- that is, the same software that is available
across the counter at your local Egghead or Computerland software store --
as munitions and thereby substantially prohibit its export to foreign
customers. This policy, which has all the practical effect of shutting the
barn door after the horses have left in preventing access to software with
encryption capabilities, does have the actual detrimental effect of
seriously endangering sales of both generally available American software
and American computer systems.

        This is because increasingly sales are dependent on the ability of
a U.S. firm to offer encryption as a feature of an integrated customer
solution involving hardware, software and services.

        Indeed, software can be exported abroad by the simplest measures
and our intelligence gathering agencies have no hope of ever preventing it.
Unlike most munitions that are on the prohibited export list, generally
available software with encryption capabilities can be purchased without
any record by anyone from thousands of commercial retail outlets, or
ordered from hundreds of commercial mail order houses, or obtained for free
from computer bulletin boards or networks. Once obtained, it can be
exported on a single indistinguishable floppy disk in the coat pocket of
any traveler or in any business envelope mailed abroad.

        Moreover, both generally available and customized software can be
exported without anyone ever actually leaving the United States. All that
is necessary are two computers with modems, one located in the United
States and one located abroad. A simple international phone call and a few
minutes is all that it takes to export any software program.

        Once a software program with encryption capabilities is in a
foreign country, any computer can act as a duplicating machine, producing
as many perfect copies of the software as needed. The end result is that
the software is widely available to foreign users.

        All this was demonstrated at a hearing held on October 12 by
Chairman Gejdenson's Economic Policy Trade and Environment Subcommittee of
the Foreign Affairs Committee.

        Furthermore, while current Executive Branch policy regulates the
export of American manufactured software with encryption capabilities, it
is obviously powerless to prevent the development and manufacture of such
software by foreign competitors. Not surprisingly, that is exactly what is
happening. We heard testimony at the subcommittee's hearing that over 200
foreign hardware, software and combination products for text, file, and
data encryption are available from 20 foreign countries. As a result,
foreign customers, that have, in the past, spent their software dollars on
American-made software, are now being forced, by American policy, to buy
foreign software -- and in some cases, entire foreign computer systems. The
real impact of these policies is that customers and revenue are being lost
with little hope of regaining them, once lost. All precipitated by a
well-intentioned, but completely misguided and inappropriate policy.

        There were efforts, in the last Congress to correct this policy. In
response, the Bush Administration did, in fact, marginally improve its
export licensing process with regard to mass market software with limited
encryption capabilities. However, those changes are simply insufficient to
eliminate the damage being done to American software companies.

        My legislation is strongly supported by the Business Software
Alliance. The Business Software Alliance represents the leading American
software businesses, including Aldus, Apple Computer, Autodesk, Borland
International, Computer Associates, GO Corp., Lotus Development, Microsoft,
Novell, and WordPerfect. In addition, Adobe Systems, Central Point, Santa
Cruz Operation, and Symantec are members of BSA's European operation.
Together, BSA members represent 70 percent of PC software sales.

        The legislation is also supported by the Industry Coalition on
Technology Transfer, an umbrella group representing 10 industry groups
including the Aerospace Industries Association, American Electronic
Association, Electronics Industry Association, and Computer and Business
Equipment Manufacturing Association.

        All these companies are at the forefront of the software
revolution. Their software, developed for commercial markets, is available
throughout the world and is at the core of the information revolution. They
represent the finest of America's future in the international marketplace,
and the industry has repeatedly been recognized as crucial to America's
technological leadership in the 21st century.

        My legislation is straightforward. It would allow American
companies to sell the commercial software they develop in the United States
to their overseas customers including our European allies -- something that
is very difficult if not impossible under present policies.

        I urge my colleagues to support this legislation and ask unanimous
consent that the text of the bill and a section-by-section explanation be
printed at this point.

************************************************************************

Section-By-Section Analysis of Report Control Liberalization for
Information Security Programs and Products

Section 1

        Section 1 amends the Export Administration Act by adding a new
subsection that specifically addresses exports of computer hardware,
software and technology for information security including encryption. The
new subsection has three basic provisions.

        First, it gives the Secretary of Commerce exclusive authority over
the export of such programs and products except those which are
specifically designed for military use, including command, control and
intelligence applications or for deciphering encrypted information.

        Second, the government is generally prohibited from requiring a
validated export license for the export of generally available software
(e.g., mass market commercial or public domain software) or computer
hardware simply because it incorporates such software.

        Importantly, however, the Secretary will be able to continue
controls on countries of terrorists concern (like Libya, Syria, and Iran)
or other embargoed countries (like Cuba and North Korea) pursuant to the
Trading With The Enemy Act or the International Emergency Economic Powers
Act (except for instances where IEEPA is employed to extend EAA-based
controls when the EAA is not in force).

        Third, the Secretary is required to grant validated licenses for
exports of software to commercial users in any country to which exports of
such software has been approved for use by foreign financial institutions.
Importantly, the Secretary is not required to grant such export approvals
if there is substantial evidence that the software will be diverted or
modified for military or terrorists' end-use or re-exported without
requisite U.S. authorization.

Section 2

        Section 2 provides definitions necessary for the proper
implementation of the substantive provisions. For example, generally
available software is offered for sale or licensed to the public without
restriction and available through standard commercial channels of
distribution, is sold as is without further customization, and is designed
so as to be installed by the purchaser without additional assistance from
the publisher. Computer hardware and computing devices are also defined.

From comp.society.cu-digest Sat Feb 19 21:14:07 1994
Date: Sat, 12 Feb 94 18:00:11 PST
From: hkhenson@CUP.PORTAL.COM
Subject: File 6--Amateur Action BBS and Clipper

[There has been a *lot* of traffic on the Clipper debate recently
about how key escrow would work in practice.  This was written in
reply to an entire issue of comp.risks]

    If I may boil down one side of the Clipper/Capstone debate, it is
certain members of the government saying:

    "We need to implement this encryption method so as to avoid
problems we think may be coming.  Trust us!  We promise not to abuse
your privacy."  [except for the following--expandable--list of
reasons.]

    Unlike some in this debate, I do not doubt the sincerity of
Dorothy Denning or others like her.  And I would have a lot fewer
problems with Clipper/Capstone proposal if the people who will be
granting access to the keys and those with legal access to the keys
were of Dorothy's caliber.

    However, people of good will are not likely to be the ones who
apply for these keys to your privacy in the future.  I am right in the
middle of a case which has remarkable similarities to a Clipper
"request for keys."

    Full details have been posted to comp.eff.talk and misc.legal, but
in brief summery, a Postal Inspector from Tennessee is attempting (for
political reasons) to impose the obscenity standards of that region on
an adult BBS run from Milpitas (just North of San Jose).  To this end,
he obtained a warrant to take the BBS hardware.  Because of contained
email and First Amendment activities of a BBS, subpoenas, not
warrants, are required under two sections of federal law.  The laws
are Title 42, Section 2000aa, and Title 18 Section 2701, the same ones
which were applied in the well-known Steve Jackson Games case.

    Pointers to these federal laws were *posted* on the BBS.  The
postal inspector downloaded this file (most of which *I* originally
wrote), and *included* it in his affidavit for a search warrant to a
Magistrate-Judge in San Francisco, along with a remarkably weak theory
of how he could avoid application of these laws to himself.

    To obtain a warrant to take email and 2000aa materials, a number
of judicial findings should have been made.  None were.  The postal
inspector got his warrant, mailed child pornography to the BBS, served
the warrant, and "found" the child porn.  To give you an idea of the
good will (and competence) of the particular agent involved, he had
not included the child porn in the warrant, and so had to fill out
another document at the time of the search.  On this form he
specifically described the material as "sent without his knowledge"
(referring to the sysop).  Of course this statement did not prevent
this child pornography (in the sysop's house for all of half an hour)
from being the basis of one count (of 12) of a grand jury indictment
the BBS sysop faces in Tennessee.

    This warrant example applies to the Clipper situation.

    The risk under Clipper is that your private communications will be
protected by the *weakest* link in the chain--one of the thousands of
low level Magistrate-Judges among whom law enforcement agents shop for
warrants and will shop for keys.  These judges tend to be busy, or
lazy or both, and they *trust* law enforcement agents.  Even if the
law is *directly quoted* in search warrant affidavits or key requests,
and these laws *expressly forbid* granting warrants or key requests
under the conditions cited, the judge may not even read a lengthy
supporting affidavit before approving it.  He is *very* unlikely to
consider the underlying laws when granting a request.  The key escrow
agents provide no protection whatsoever since they simply fill orders
from agents with approved applications.

    Judges ignore the law with impunity, and so do law enforcement
agents because one agency will almost never investigate another.

    As a practical matter, applications for search warrants are almost
never denied.  The same situation is certain to occur for Clipper key
applications, no mater how weak the justification happens to be, or
what laws are being violated by those seeking the keys.

From comp.society.cu-digest Sat Feb 19 21:15:19 1994
Date: Wed, 16 Feb 1994 10:24:49 EST
From: Dave Banisar <banisar@WASHOFC.CPSR.ORG>
Subject: File 4--Big Brother Inside Logo

BIG BROTHER INSIDE LOGO
A parody of the Intel's Logo modified for the Clipper Chip is now available
for use for stickers, posters, brochures etc.

The Big Brother Inside graphic files are now available at the CPSR
Internet Archive - ftp/gopher cpsr.org /cpsr/privacy/crypto/clipper

big_brother_inside_sticker.ps (postscript-scale to fit your project)
big_brother_inside_logo.gif (Color GIF - good startup/background screen)
big_brother_inside_picts_info.txt (Info on the files)

The files have also been uploaded to America Online in the Mac Telecom and
Graphic Arts folders.

big_brother_inside_sticker.ps is a generic postscript file, created in
CorelDraw. The postscript image lies landscape on the page, and consists
of the intel-logo's ``swoosh'' and crayon-like lettering on the inside.

This design was originally created for the sticker project: the image was
screened onto transparent stickers 1" square for the purpose of applying
them to future clipper-chip products. (cdodhner@indirect.com was in charge
of that project; as far as I know he's still distributing them for a small
donation to cover printing & mailing costs).

The design was created by Matt Thomlinson <phantom@u.washington.edu>

From comp.society.cu-digest Tue Feb 22 22:06:06 1994
Date: 18 Feb 94 15:23:33 EST
From: Mark Lloyd <73670.57@COMPUSERVE.COM>
Subject: File 6--Clipper Questions and Answers in a Nutshell

Clipper Q and A
By W. Mark Lloyd

WHAT IS THE CLIPPER CHIP?

The Clipper chip is an encryption chip using an algorithm called
Skipjack.  The Skipjack algorithm was developed by the National
Security Agency (NSA) for the National Institute of  Standards and
Technology (NIST).  Data encrypted using the Skipjack algorithm can be
decrypted using a secret process that requires two separate keys.
These keys would be escrowed separately by NIST and the Department of
Treasury.  Under the plan, a law enforcement agency  would require a
court order to get the two keys that would have to be combined to
decrypt a transmission generated with  a Clipper chip.

HOW DOES THE SKIPJACK ALGORITHM DO THIS?

Encryption algorithms use numbers called keys that are like
combinations to a lock.  Messages are encrypted and decrypted much the
same as locks are locked and unlocked.  The key to any Clipper encoded
message is itself encrypted using a key derived from two other keys
that are stored separately.  The encrypted  key and a number that
identifies the chip that sent the message are then encrypted with
another key that is common to many other chips.  All of this is sent
along with the encrypted original message. This is done so if a law
enforcement  agency wants to decrypt a message the process can be
reversed: The outer portion of the encrypted key is decrypted to get
the number that identifies the unit  that sent the message. This is
used to obtain the two separate escrowed keys  that are then combined
to decrypt the session key  that allows the original message to be
decrypted.

	Lets look at another way. You have the session key S, the key E
derived from the two escrowed keys,  the family key F, the message M
and the chip identification number C.  Its all  put together  like
this:  (M encrypted with key S)+(((S encrypted with key E) C
)encrypted with F)

IS THE SYSTEM SECURE?

If everything goes right, according to the a panel of five
cryptography experts who have reviewed it.

WHAT ALGORITHM DOES THE ACTUAL ENCRYPTION?

That is classified information.

BUT AREN'T GOOD ENCRYPTION ALGORITHMS SECURE, EVEN WHEN EVERYONE KNOWS
WHAT THEY ARE, LIKE DES?

Yes.

THEN WHY NOT JUST PUBLISH THE ALGORITHM?

The reasons cited are that compromising the algorithm would be
detrimental to national security.  This means that secret techniques
are used in the algorithm.

SO A GOVERNMENT SECRET IS GOING TO BE IN THOUSANDS OF THESE CLIPPER
CHIPS SHIPPED ALL OVER THE WORLD?

That's the plan.

SO IF SOMEONE FIGURES OUT HOW TO GET THE ALGORITHM FROM THE CLIPPER
CHIPS, OUR NATIONAL SECURITY COULD BE COMPROMISED?

If you follow the NSA's logic, yes.

Law enforcement officials are going to be using the algorithm and the
family key many time to get unit identification numbers.  Lets say
that the algorithm is leaked.  Or one of the black boxes that will be
used to decrypt the chips is compromised and the algorithm and family
keys are generally known?  What will happens then?

The algorithm could be subject to tampering. From our explanation in
question two we would go from this:  (M encrypted with key S)+(((S
encrypted with key E) C )encrypted with F)  to this  (M encrypted with
key S)+(S encrypted with key E) C.  This would leave the chip number
open to tampering.  Also in  theory it would allow a steady attack on
the key E, that would compromise the unit.  This attack is
theoretically better than attacking a message without the law
enforment field, but even if the key S is known (by getting someone
with a chip with to send you a message with a key you have negotiated)
it would still be difficult with todays computer power.   In any case
anyone with anything to hide wouldnt use a Clipper chip for
transmissions they wanted to keep secret from law enforcement
authorities.

MOST ENCRYPTION IS DONE WITH SOFTWARE.  CAN THE SKIPJACK ALGORITHM BE
USED IN SOFTWARE ENCRYPTING SYSTEMS?

No.  The nature of the Skipjack algorithm  makes it only useful if it
is  released in a special tamper proof chip.

SO THE ALGORITHM IS ONLY USEFUL FOR APPLICATIONS THAT CAN USE HARDWARE
ENCRYPTION?

Yes.

WHAT IF I WANT TO ENCRYPT A MESSAGE WITH A REALLY SECURE ALGORITHM
BEFORE IT IS ENCRYPTED BY A CLIPPER CHIP?

That would be a simple and obvious way to get around the Clipper chip.

BUT ISN'T MOST ENCRYPTION CURRENTLY DONE USING SOFTWARE ON GENERAL
PURPOSE MICROPROCESSORS?

Yes.

IS CLIPPER GOING TO BE EASIER TO EXPORT THAN DES?

According to the Clinton administration, yes.

IS THERE A FOREIGN MARKET FOR CLIPPER ENCRYPTION DEVICES?

For there to be a market there needs to be a reason for foreign
purchasers to prefer Skipjack or Clipper technology to currently
available algorithms.  This has not been shown to be true.  There a
report in the British press that the NSA has a representative in
London that is  lobbying European governments to adopt the  Clipper
chip.

WHAT IF A FOREIGN GOVERNMENT WANTS TO SPY ON THEIR OWN CITIZENS, WILL
WE GIVE THEM THE KEYS TO DO THIS?

Good question.

What if a foreign government allows the importation of Clipper chips,
but only if they get the keys first?  Would we be responsible for
their abuse?

That question has not been answered yet.

If we only give them the key when they ask, what if we suspect the
keys they want are to spy on a political adversay. What if a foreign
government decides to make an issue of us not giving  them the keys to
a Clipper chip we sold them? How will we deal with this?

We would be in a no win situation.

WILL THE NSA GET THE KEYS TO SKIPJACK UNITS THAT ARE EXPORTED?

Government officials have said to some people that the NSA will not
get these keys. NSA has not yet said this on the record.

HAVE ORGANIZATIONS THAT REPRESENT THE COMPUTER HARDWARE AND SOFTWARE
INDUSTRIES ASKED FOR A NEW ALGORITHM TO EXPORT?

No.  Both the Software Publishing Association and the American
Electronics Association, along with other industry groups, have asked
that the DES algorithm be made available for easy export.  The DES
algorithm is already available all over the world.  DES is classified
as a munition by the US government and cannot be exported easily.

THE ANNOUNCEMENT FROM THE WHITE HOUSE ON FEBRUARY 4 SPOKE ABOUT THE
PROBLEM OF "TERRORISTS, DRUG DEALERS, AND OTHER CRIMINALS" USING
ENCRYPTION.  WILL THE CLIPPER CHIP DO ANYTHING TO PREVENT THESE PEOPLE
FROM USING NON-ESCROWED ENCRYPTION TECHNIQUES?

No. These prople will be able to encrypt with whatever algorithm they
want.

ARE THERE OTHER WAYS OF ESCROWING KEYS VOLUNTARILY, FOR GOVERNMENTAL
AND BANKING NEEDS THAT REQUIRE BOTH CONFIDENTIALITY AND
ACCOUNTABILITY?

Yes.  There is work being done now on techniques that allow much more
flexible ways of voluntarily escrowing keys.

From comp.society.privacy Tue Feb 22 22:07:45 1994
Path: utcsri!utnut!torn!spool.mu.edu!howland.reston.ans.net!news.moneng.mei.com!uwm.edu!computer-privacy-request
From: chris@quay.ie (Christopher Davey)
Newsgroups: comp.society.privacy
Subject: Re: Clipper Overseas
Date: 21 Feb 1994 02:40:47 GMT
Organization: Quay Financial Software
Lines: 33
Sender: comp-privacy@uwm.edu
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X-Computer-Privacy-Digest: Volume 4, Issue 033, Message 1 of 9
Originator: levine@blatz.cs.uwm.edu

    Christopher Zguris <0004854540@mcimail.com> writes: I haven't seen
    this discussed so I'm going to ask. What are the implications for
    Clipper's use on communications between US and foreign countries
    and companies? If company A in the US is communicating with Company
    B is some other part of the world over a Clipper-encrypted data
    link couldn't the NSA legally monitor and decode the communition if
    they chose to do so? It's a given that the NSA monitors a lot of
    data communications, and I remember reading about the monitoring of
    US communications using NSA equipment in foreign countries thereby
    by avoiding the issue of monitoring on US soil, so couldn't the
    same trick be used to monitor communications in foreign countries
    that would also include US links? If we're talking about a
    world-wide link than a monitoring link in a foreign node could give
    access to the whole thing.  How does key escrow affect potential
    international users?  Anybody care to shed some light on this
    subject?

I read a article in the "Independant on Sunday" last weekend, which that
a senior NSA official, James Hearn was in London "with the task of selling 
the 16 governments of the European Union and European  Free Trade 
Association on the virtues of a controversial electronic scrambling 
technology" - ie Clipper.

The question in my mind is, are the governments of these independant 
countries going to adopt Clipper, if they do not have the ability to
decrypt it ? No way ! And I bet they don't have to go through the escrow
agencies in the US either.  In which case, the whole thing seems wide open.

-- 
Chris Davey                       Internet: chris@quay.ie
Quay Financial Software           Phone   : +353 1 6612377 Fax: +353 1 6607592



From comp.society.privacy Tue Feb 22 22:08:03 1994
Path: utcsri!utnut!torn!spool.mu.edu!howland.reston.ans.net!vixen.cso.uiuc.edu!uwm.edu!computer-privacy-request
From: tcj@netcom.com (Todd Jonz)
Newsgroups: comp.society.privacy
Subject: Re: Clipper Overseas
Date: 21 Feb 1994 02:40:49 GMT
Organization: Sanity Cruise Enterprises, Ltd.
Lines: 27
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X-Computer-Privacy-Digest: Volume 4, Issue 033, Message 2 of 9
Originator: levine@blatz.cs.uwm.edu

    Christopher Zguris (0004854540@mcimail.com) writes: If company A in
    the US is communicating with Company B is some other part of the
    world over a Clipper-encrypted data link couldn't the NSA legally
    monitor and decode the communition if they chose to do so?

Sure, assuming that they had the private keys for both companies.  But
this would mean that the escrow mechanism for these keys wasn't worth a
damn.  That's what's so scary about the whole Clipper proposal.

Imagine if one of the conditions of securing a federally funded home
loan were that you make a copy of your front door key and entrust it to
your local police department for the duration of the loan.  Even
assuming that you trust your local police department implicitly as an
organization, if there's even one individual in its employ with access
to that key who can be compromised, you might as well just leave your
front door open.

    How does key escrow affect potential international users?

It seems to me that the biggest threat to international users would be
the potential for Clipper to become ubiquitous in the U.S.  One
objective of the Clipper proposal is to discourage the private sector
from bringing competitive systems to market.  If this tactic is
successful, it would mean that foreign companies wishing to do business
with U.S. firms would have little choice but to jump on the bandwagon.



From sci.crypt Tue Feb 22 22:09:09 1994
Xref: utcsri sci.crypt:23837 sci.electronics:78300 sci.misc:9567
Newsgroups: sci.crypt,sci.electronics,sci.misc
Path: utcsri!utnut!torn!howland.reston.ans.net!europa.eng.gtefsd.com!library.ucla.edu!csulb.edu!csus.edu!netcom.com!grady
From: grady@netcom.com (Grady Ward)
Subject: Re: TEMPEST - Electronic Eavesdropping
Message-ID: <gradyCLJ5u4.Huv@netcom.com>
Followup-To: sci.crypt,sci.electronics,sci.misc
Organization: Moby lexical databases
X-Newsreader: TIN [version 1.2 PL1]
References: <d1temp.761485822@dtek.chalmers.se> <gate.D53XHc1w165w@prins.hacktic.nl> <2k5qn0$jj5@camco.celestial.com>
Date: Sun, 20 Feb 1994 16:01:16 GMT
Lines: 33

Ray Jones (ray@camco.celestial.com) wrote:
: >In the US it is illegal to monitor cellular calls. It is even illegal to 
: >sell scanners that can receive the cellular frequencies.

: I think you are incorrect.  There have been several cases where drug dealers
: were convicted because of the information monitored from celluar calls.  No
: search warrent required either.

: The Suprem Court has ruled several time that anything put into the public
: airwaves is free for the taking (receiving).  This is why premimum TV
: programs  (HBO, etc.) satelite broadcasts are encoded.

The ECPA of 1987 (available from ftp.eff.org) criminalizes *monitoring*
of certain transmissions (other than for test purposes). Some of
these include, cellular, mobile telephones, encrypted communications,
the list goes on.

Most people believe that this part of the law was passed at the behest of
cellular companies wanting to promise the public 'privacy' without
actually needing the capital to fit cell phones with good crypto.

Yes, you could go to jail if you turn on a radio to listen to certain
radio waves coming into your bedroom. The Pro2006 scanner from Radio
Shack is easily modified to receive cellular, but will be forbidden to
import or manufacture as of (I think) this April.

73  kn6jr

-- 
Grady Ward       | compiler of Moby lexicons:        | finger grady@netcom.com
+1 707 826 7715  | Words, Hyphenator, Part-of-Speech |    for more information
(voice/24hr FAX) | Pronunciator, Thesaurus           | 15 E2 AD D3 D1 C6 F3 FC
grady@netcom.com | and Language; all royalty-free    | 58 AC F7 3D 4F 01 1E 2F

From talk.politics.crypto Thu Mar  3 19:57:55 1994
Xref: utcsri comp.org.eff.talk:27895 talk.politics.crypto:3236 alt.privacy.clipper:2743
Newsgroups: comp.org.eff.talk,talk.politics.crypto,alt.privacy.clipper
Path: utcsri!utnut!torn!howland.reston.ans.net!sol.ctr.columbia.edu!news.kei.com!world!news.bu.edu!att-in!att-out!cbnewsj!merckx!mab
From: mab@research.att.com (Matt Blaze)
Subject: Denning Clipper Editorial in Newsday, 2/22/94
Organization: AT&T Bell Laboratories
Date: Wed, 23 Feb 1994 21:58:37 GMT
Message-ID: <mab.762070755@merckx>
Originator: mab@merckx
Sender: news@cbnewsj.cb.att.com (NetNews Administrator)
Nntp-Posting-Host: merckx.l1135.att.com
Lines: 90


Forwarded to the net with permission of the author.  Note that I'm
just passing this along, and nothing here should be taken as an
endorcement of the views presented.
-matt

 ======================================================================
|           Newsday, Tuesday, February 22, 1994, Viewpoints            |
 ======================================================================


                    The Clipper Chip Will Block Crime
                                    
                          By Dorothy E. Denning


   Hidden among the discussions of the information highway is a fierce
debate, with huge implications for everyone.  It centers on a tiny
computer chip called the Clipper, which uses sophisticated coding to
scramble electronic communications transmitted through the phone
system.

   The Clinton administration has adopted the chip, which would allow
law enforcement agencies with court warrants to read the Clipper codes
and eavesdrop on terrorists and criminals.  But opponents say that, if
this happens, the privacy of law-abiding individuals will be a risk.
They want people to be able to use their own scramblers, which the
government would not be able to decode.

   If the opponents get their way, however, all communications on the
information highway would be immune from lawful interception.  In a
world threatened by international organized crime, terrorism, and rogue
governments, this would be folly.  In testimony before Congress, Donald
Delaney, senior investigator with the New York State Police, warned
that if we adopted an encoding standard that did not permit lawful
intercepts, we would have havoc in the United States.

   Moreover, the Clipper coding offers safeguards against casual
government intrusion.  It requires that one of the two components of
a key embedded in the chip be kept with the Treasury Department and the
other component with the Commerce Department's National Institute of
Standards and Technology.  Any law enforcement official wanting to
wiretap would need to obtain not only a warrant but the separate
components from the two agencies.  This, plus the superstrong code and
key system would make it virtually impossible for anyone, even corrupt
government officials, to spy illegally.

   But would terrorists use Clipper?  The Justice Department has
ordered $8 million worth of Clipper scramblers in the hope that they
will become so widespread and convenient that everyone will use them.
Opponents say that terrorists will not be so foolish as to use
encryption to which the government holds the key but will scramble
their calls with their own code systems.  But then who would have
thought that the World Trade Center bombers would have been stupid
enough to return a truck that they had rented?

   Court-authorized interception of communications has been essential
for preventing and solving many serious and often violent crimes,
including terrorism, organized crime, drugs, kidnaping, and political
corruption.  The FBI alone has had many spectacular successes that
depended on wiretaps.  In a Chicago case code-named RUKBOM, they
prevented the El Rukn street gang, which was acting on behalf of the
Libyan government, from shooting down a commercial airliner using a
stolen military weapons system.

   To protect against abuse of electronic surveillance, federal
statutes impose stringent requirements on the approval and execution
of wiretaps.  Wiretaps are used judiciously (only 846 installed
wiretaps in 1992) and are targeted at major criminals.

   Now, the thought of the FBI wiretapping my communications appeals to
me about as much as its searching my home and seizing my papers.
But the Constitution does not give us absolute privacy from
court-ordered searches and seizures, and for good reason.  Lawlessness
would prevail.

   Encoding technologies, which offer privacy, are on a collision
course with a major crime-fighting tool: wiretapping.  Now the
Clipper chip shows that strong encoding can be made available in a way
that protects private communications but does not harm society if it
gets into the wrong hands.  Clipper is a good idea, and it needs
support from people who recognize the need for both privacy and
effective law enforcement on the information highway.

 ======================================================================
| Copyright Newsday.  All rights reserved.  This article can be freely |
| distributed on the net provided this note is kept intact, but it may |
| not be sold or used for profit without permission of Newsday.        |
 ======================================================================


From comp.risks Sun Mar  6 16:21:40 1994
Date: Thu, 3 Mar 94 09:43:58 PST
From: jim@RSA.COM (Jim Bidzos)
Subject: SOME THOUGHTS ON CLIPPER, NSA, AND ONE KEY-ESCROW ALTERNATIVE

In a recent editorial, Dr. Dorothy Denning of Georgetown University argued in
support of the U.S. government's proposed Clipper Chip, a security device that
would allow law enforcement to decipher the communications of users of such
devices.

Dr. Denning attempts to argue that Clipper is necessary for law enforcement
agencies to be able to do their job.  I'm not going to argue that one; there
are plenty of people who can argue that compromising privacy for all citizens
in order 	to aid law enforcement is a bad idea more effectively than I,
particularly in the Clipper case, where the arguments from law enforcement are
dubious at best.  (The current justification is inadequate; there may be
better reasons, from a law enforcement perspective, but we haven't heard them
yet.)

Without doubt, law enforcement and intelligence are huge stakeholders in the
debate over encryption. But every individual and corporation in the U.S. must
be included as well. Are NSA's actions really in the best interests of all the
stakeholders? Are there alternatives to the current key escrow program?

If one steps back and looks at what has happened over the last few years, one
might well question the approaches, if not the motivation.  (I believe it may
even be possible to conclude that Clipper is the visible portion of a
large-scale covert operation on U.S. soil by the National Security Agency.)
Over a number of years, through their subversion of the Commerce Department
(who should be championing the causes of U.S.  industry, not the intelligence
agencies), NSA has managed to put many U.S. government resources normally
beyond their control, both legally and practically, to work on their program
of making U.S. and international communications accessible.

The first step was the MOU (Memorandum of Understanding) between NIST NSA.
This document appears to contravene the provisions of the Computer Security
Act of 1987, the intent of which was to give NIST control over
standards-making for the unclassified government and commercial sectors.  The
MOU essentially gave NSA a veto over any proposals for crypto standards by
NIST.

By using the standards making authority of the National Institute of Standards
and Technology (NIST), NSA is attempting to force the entire U.S.  government
to purchase Clipper equipment since only NIST-standard equipment may be
purchased by government agencies. This purchasing power can then be used to
force U.S. manufacturers to build Clipper products or risk losing government
business.  (GSA is currently questioning NSA's authority to control
government-wide procurement, and should continue to do so.)  This of course
not only subsidizes Clipper products, but could make Clipper a de facto
standard if the costs associated with alternatives are too high.  These costs
to industry, of ignoring Clipper, come in the form of lost government market
share, costly support for multiple versions of incompatible products, and
non-exportability of non-Clipper products.

It also appears that NSA is desperately seeking a digital signature standard
that would force users to take that signature capability wrapped up with a
Clipper chip.  If this is the case, as it appears to be, then NSA has is
trying to use what is probably the most powerful business tool of the
information age as a means to deny us its benefits unless we subsidize and
accept Clipper in the process.  This would, if true, be an unprecedented abuse
of government power to influence U.S.  industry and control individual
privacy.  (Clipper is part of a chip called Capstone, which is where their
proposed digital signature standard would be used.)

The overall cost of these policies is unknown.  We only know that NSA has
spent a considerable amount of money on the program directly.  Other costs are
not so obvious. They are:

* A burdened U.S. industry, which will have to build multiple products
  or more expensive products that support multiple techniques;

* A low-intensity "trade war" with the rest of the world over
  encryption;

* Lost sales to U.S. companies, since international buyers will surely go to
  non-U.S. suppliers for non- Clipper encryption, as may buyers in the U.S.;

* Potential abuses by government and loss of privacy for all citizens.

Does NSA truly believe they can displace other methods with Clipper?  With
over three million RSA products, the technology they feel threatened by, in
use in the U.S. today? Not likely; therefore, they have already decided that
these costs are acceptable even if they only delay the inevitable, and that
U.S. industry and U.S. taxpayers should bear these costs, whatever they are.
This policy was apparently developed by unelected people who operate without
oversight or accountability.  Does the White House really support this policy?
(Does this all sound familiar?)

It has been rumored that NSA will gain support from foreign governments for
escrow technology, especially if "local control" is provided.  Even if NSA can
convince their sister organizations around the world to support key escrow (by
offering Clipper technology with a do-your-own-escrow option), will these
other governments succeed in selling it to their industry and citizens?  Most
countries around the world have much stronger privacy laws and a longer
history of individual privacy than the U.S.

WHY AGAIN WHEN IT DIDN'T WORK THE FIRST TIME?

Many seem to have forgotten or are not aware that the Clipper program is not
new, and it's also not the first time NSA has attempted to force
communications security on U.S. industry that it could compromise.  In the
mid-80's, NSA introduced a program called the Commercial COMSEC Endorsement
Program, or CCEP. CCEP was essentially Clipper in a black box, since the
technology was not sufficiently advanced to build lower-cost chips.  Vendors
would join CCEP (with the proper security clearances) and be authorized to
incorporate classified algorithms into communications systems.  NSA had
proposed that they themselves would actually provide the keys to end-users of
such systems.  The new twist is access by key escrow.

To see how little things have changed, consider this quote: "...RSA Data
Security, Inc.  asserts that since CCEP-2 is not published and therefore
cannot be inspected by third parties, the NSA could put a 'trap door' in the
algorithm that would enable the agency to inspect information transmitted by
the private sector.  When contacted, NSA representative Cynthia Beck said that
it was the agency's policy not to comment on such matters."  That was in 1987.
("The Federal Snags in Encryption Technology," Computer and Communications
Decisions, July 1987, pp.  58-60.)

To understand NSA's thinking, and the danger of their policies, consider the
reply of a senior NSA official when he was asked by a reporter for the Wall
Street Journal if NSA, through the CCEP program, could read anyone's
communications: "Technically, if someone bought our device and we made the
keys and made a copy, sure we could listen in. But we have better things to do
with our time." (The Wall Street Journal, March 28, 1988, page 1, column 1, "A
Supersecret Agency Finds Selling Secrecy to Others Isn't Easy," by Bob Davis.)
Another NSA official, in the same Journal story, said "The American Public has
no problem with relying on us to provide the technology that prevents the
unauthorized launch of nuclear weapons. If you trust us to protect against
that, you can trust us to protect private records."  Remember that the Cold
War was still on at that time.  Maybe they're not so busy today.

Law enforcement and intelligence gathering are certainly impeded by the use of
cryptography.  There are certainly legitimate concerns that these interests
have.  But is the current approach really the way to gain support?  People
with a strong military and intelligence bias are making all the decisions.
There seem to be better ways to strike a balance.

AN ALTERNATIVE PROPOSAL

One approach would be to have NIST develop a standard with three levels.  The
first level could specify the use of public-key for key management and
signatures without any key escrow.  There could be a "Level II" compliance
that adds government key escrow to message preparation.  "Level III" could be
key escrow controlled by the user, typically a corporation.  Would this work?
The first level, meeting the standard by itself, would back up the
government's claim that key escrow is voluntary; if I want privacy and
authentication without key escrow, then I can have it, as the government has
claimed I can.  Actions speak louder than words.

Why would any vendors support Level II?  They would find a market in the
government. (I would certainly like our public servants to use key escrow,
just as I want work product paid for by my corporation to be accessible.)  So
the government can still influence the private sector by buying only products
that include Level II compliance. Also, Level II products would be
decontrolled for export. The market can decide; vendors will do what their
customers tell them to.  This satisfies the obvious desire on the part of the
government to influence what happens, as a consumer.

Level III would allow any user to insert escrow keys they control into the
process.  (Level II would not be a prerequisite to Level III.) My company may
want key escrow; I, as an individual, may want to escrow my keys with my
attorney or family members; a standard supporting these functions would be
useful.  I don't necessarily want or need the government involved.

NIST already knows how to write a FIPS that describes software and hardware
implementations, and to certify that implementations are correct.

This approach certainly isn't perfect, but if the administration really
believes what it says and means it, then I submit that this is an improvement
over a single key escrow FIPS foisted on everyone by NSA, and would stand a
much better chance of striking a workable balance between the needs of the
government and the right of individuals to privacy.  Therefore, it RISKS much
less than the current plan.

The real problem with the way NSA works is that we don't find out what they're
really doing and planning for decades, even when they're wrong.  What if they
are?

In the 60's and 70's, the CIA was out of control, and the Congress, after
extensive hearings that detailed some of the abuses of power by the CIA,
finally moved to force more accountability and oversight.  In the 80's and
90's, NSA's activities should be equally scrutinized by a concerned Congress.

From comp.society.cu-digest Tue Mar 15 22:06:40 1994
Date: Tue Mar  8 12:07:47 1994
>From jim@RSA.COM
Subject: File 2--Some Thoughts on Clipper (by Jim Bidzos)

SOME THOUGHTS ON CLIPPER, NSA, AND ONE KEY ESCROW ALTERNATIVE

In a recent editorial, Dr. Dorothy Denning of Georgtown University
argued in support of the U.S. government's proposed Clipper Chip, a
security device that would allow law enforcement to decipher the
communications of users of such devices.

Dr. Denning attempts to argue that Clipper is necessary for law
enforcement agencies to be able to do their job.  I'm not going to
argue that one; there are plenty of people who can argue that
compromising privacy for all citizens in order 	to aid law enforcement
is a bad idea more effectively than I, particularly in the Clipper
case, where the arguments from law enforcement are dubious at best.
(The current justification is inadequate; there may be better reasons,
from a law enforcement perspective, but we haven't heard them yet.)

Without doubt, law enforcement and intelligence are huge stakeholders
in the debate over encryption. But every individual and corporation in
the U.S. must be included as well. Are NSA's actions really in the
best interests of all the stakeholders? Are there alternatives to the
current key escrow program?

If one steps back and looks at what has happened over the last few
years, one might well question the government's approach with Clipper,
if not its motivation, for dealing with this problem.  (I believe it
may even be possible to conclude that Clipper is the visible portion
of a large-scale covert operation on U.S. soil by NSA, the National
Security Agency.) Over a number of years, through their subversion of
the Commerce Department (who should be championing the causes of U.S.
industry, not the intelligence agencies), NSA has managed to put many
U.S. government resources normally beyond their control, both legally
and practically, to work on their program of making U.S. and
international communications accessible.

The first step was the MOU (Memorandum of Understanding) between the
Commerce Department's National Institute of Standards and Technology
(NIST) and the Defense Department's NSA.  This document appears to
contravene the provisions of the Computer Security Act of 1987, the
intent of which was to give NIST control over crypto standards-making
for the unclassified government and commercial sectors.  The MOU
essentially gave NSA a veto over any proposals for crypto standards by
NIST.

By using the standards making authority of NIST, NSA is attempting to
force the entire U.S.  government to purchase Clipper equipment since
only NIST-standard equipment may be purchased by government agencies.
This purchasing power can then be used to force U.S. manufacturers to
build Clipper products or risk losing government business.  (GSA is
currently questioning NSA's authority to control government-wide
procurement, and should continue to do so.)  This of course not only
subsidizes Clipper products, but could make Clipper a de facto
standard if the costs associated with alternatives are too high.
These costs to industry, of ignoring Clipper, come in the form of lost
government market share, costly support for multiple versions of
incompatible products, and non-exportability of non-Clipper products.

It also appears that NSA is desperately seeking a digital signature
standard that would force users to take that signature capability
wrapped up with a Clipper chip.  If this is the case, as it appears to
be, then NSA has is trying to use what is probably the most powerful
business tool of the information age as a means to deny us its
benefits unless we subsidize and accept Clipper in the process.  This
would, if true, be an unprecedented abuse of government power to
influence U.S.  industry and control individual privacy.  (Clipper is
part of a chip called Capstone, which is where their proposed digital
signature standard would be used.)

The overall cost of these policies is unknown.  We only know that NSA
has spent a considerable amount of money on the program directly.
Other costs are not so obvious. They are:

- A burdened U.S. industry, which will have to build multiple products
or more expensive products that support multiple techniques;

- A low-intensity "trade war" with the rest of the world over
encryption;

- Lost sales to U.S. companies, since international buyers will surely
go to non-U.S. suppliers for non- Clipper encryption, as may buyers in
the U.S.;

- Potential abuses by government and loss of privacy for all citizens.

Does NSA truly believe they can displace other methods with Clipper?
With over three million licensed, documented RSA products, the
technology they feel threatened by, in use in the U.S. today? Not
likely; therefore, they have already decided that these costs are
acceptable even if they only delay the inevitable, and that U.S.
industry and U.S. taxpayers should bear these costs, whatever they
are.  This policy was apparently developed by unelected people who
operate without oversight or accountability.  Does the White House
really support this policy?

It has been reported that NSA is attempting to gain support from
foreign governments for escrow technology, especially if "local
control" is provided.  Even if NSA can convince their sister
organizations around the world to support key escrow (by offering
Clipper technology with a do-your-own-escrow option), will these other
organizations succeed in selling it to their government, industry and
citizens?  Most countries around the world have much stronger privacy
laws and a longer history of individual privacy than the U.S.

WHY AGAIN WHEN IT DIDN'T WORK THE FIRST TIME?

Many seem to have forgotten or are not aware that the Clipper program
is not new, and it's also not the first time NSA has attempted to
force communications security on U.S. industry that it could
compromise.  In the mid-80's, NSA introduced a program called the
Commercial COMSEC Endorsement Program, or CCEP. CCEP was essentially
Clipper in a black box, since the technology was not sufficiently
advanced to build lower-cost chips.  Vendors would join CCEP (with the
proper security clearances) and be authorized to incorporate
classified algorithms into communications systems.  NSA had proposed
that they themselves would actually provide the keys to end-users of
such systems.  The new twist is access by key escrow.

To see how little things have changed, consider this quote: "...RSA
Data Security, Inc.  asserts that since CCEP-2 is not published and
therefore cannot be inspected by third parties, the NSA could put a
'trap door' in the algorithm that would enable the agency to inspect
information transmitted by the private sector.  When contacted, NSA
representative Cynthia Beck said that it was the agency's policy not
to comment on such matters."  That was in 1987. ("The Federal Snags in
Encryption Technology," Computer and Communications Decisions, July
1987, pp.  58-60.)

To understand NSA's thinking, and the danger of their policies,
consider the reply of a senior NSA official when he was asked by a
reporter for the Wall Street Journal if NSA, through the CCEP program,
could read anyone's communications: "Technically, if someone bought
our device and we made the keys and made a copy, sure we could listen
in. But we have better things to do with our time." (The Wall Street
Journal, March 28, 1988, page 1, column 1, "A Supersecret Agency Finds
Selling Secrecy to Others Isn't Easy," by Bob Davis.) Another NSA
official, in the same Journal story, said "The American Public has no
problem with relying on us to provide the technology that prevents the
unauthorized launch of nuclear weapons. If you trust us to protect
against that, you can trust us to protect private records."  Remember
that the Cold War was still on at that time.

Law enforcement and intelligence gathering are certainly impeded by
the use of cryptography.  There are certainly legitimate concerns that
these interests have.  But is the current approach really the way to
gain support from industry and the public?  People with a strong
military and intelligence bias are making all the decisions. There
seem to be better ways to strike a balance.

AN ALTERNATIVE PROPOSAL

One approach would be to have NIST develop a standard with three
levels.  The first level could specify the use of public-key for key
management and signatures without any key escrow.  There could be a
"Level II" compliance that adds government key escrow to message
preparation.  "Level III" could be key escrow controlled by the user,
typically a corporation.  Would this work? The first level, meeting
the standard by itself, would back up the government's claim that key
escrow is voluntary; if I want privacy and authentication without key
escrow, then I can have it, as the government has claimed I can.
Actions speak louder than words.

Why would any vendors support Level II?  There would be several
reasons. They would find a market in the government, since the
government should purchase only Level II products. (I would certainly
like our public servants to use key escrow, just as I want work
product paid for by my corporation to be accessible. Of course, anyone
can buy Level I products for home and personal use.)  So the
government can still influence the private sector by buying only
products that include Level II compliance. Also, Level II products
would be decontrolled for export. This way the market can decide;
vendors will do what their customers tell them to.  This satisifies
the obvious desire on the part of the government to influence what
happens with their purchasing power.

Level III would allow any user to insert escrow keys they control into
the process.  (Level II would not be a prerequisite to Level III.) My
company may want key escrow; I, as an individual, may want to escrow
my keys with my attorney or family members; a standard supporting
these funtions would be useful.  I don't necessarily want or need the
government involved.

NIST already knows how to write a FIPS that describes software and
hardware implementations, and to certify that implementations are
correct.

This approach cetainly isn't perfect, but if the administration really
believes what it says and means it, then I submit that this is an
improvement over a single key escrow FIPS foisted on everyone by NSA,
and would stand a much better chance of striking a workable balance
between the needs of the government and the right of individuals to
privacy.  Therefore, it RISKS much less than the current plan.

The real problem with the way NSA works is that we don't find out what
they're really doing and planning for decades, even when they're
wrong.  What if they are?

In the 60's and 70's, the CIA was out of control, and the Congress,
after extensive hearings that detailed some of the abuses of power by
the CIA, finally moved to force more accountability and oversight.  In
the 80's and 90's, NSA's activities should be equally scrutinized by a
concerned Congress.

From comp.society.cu-digest Tue Mar 15 22:07:06 1994
Date: Mon, 28 Feb 1994 13:25:25 -0500 (EST)
From: The Advocate <cudigest@mindvox.phantom.com>
Subject: File 4--Re: Newsday Clipper Story (CuD 6.19)

>            Newsday, Tuesday, February 22, 1994, Viewpoints
>                   The Clipper Chip Will Block Crime
>                         By Dorothy E. Denning

Before We go any further, let your old friend the Advocate join the
greek chorus,  of people singing their personal respect and admiration
for Dr Denning.  Her work in the Neidorf case was without par and her
commitment to issues in Cyberspace are intellectually rigorous and
passionate.  It thus doubly pains me when such an old and respected
friend seems to have gone astray.


>    Hidden among the discussions of the information highway is a fierce
> debate, with huge implications for everyone.  It centers on a tiny
> computer chip called the Clipper, which uses sophisticated coding to
> scramble electronic communications transmitted through the phone
> system.

Just like other systems already in use for military and government
or commercial transactions.

>
>    The Clinton administration has adopted the chip, which would allow
> law enforcement agencies with court warrants to read the Clipper codes
> and eavesdrop on terrorists and criminals.  But opponents say that, if

or agencies with corrupt motives to spy on virtually every transaction
telephonic or datic  that moves on the information highway.

future expansion of network systems will allow easy access to virtually
all data,  without regard,  and with intrusion, without detection.

> this happens, the privacy of law-abiding individuals will be a risk.
individuals and corporations.

> They want people to be able to use their own scramblers, which the
> government would not be able to decode.

WOuld not be able to decode?  no,  would not be able to decode without
spending some money.  Dr Denning forgets that we spend an estimated
$27 Billion dollars per year on the NSA,  an agency devoted entirely
to signals interception, decryption and analysis.  THis same agency
has been involved in the Clipper developement and has refused to make
any of it's files available and has instead crowded the field with
classified segments.

>    If the opponents get their way, however, all communications on the
> information highway would be immune from lawful interception.  In a

Hardly.  It merely means that interception would require either
more detailed de-crpyption efforts  or attack at sources of
transmission or reception.

These same complaints are repackaged complaints about miranda rights,
the exclusionary rule and every other legal reform of this century.

> world threatened by international organized crime, terrorism, and rogue
> governments, this would be folly.  In testimony before Congress, Donald

International organised crime?  you mean like the Mafia,  whom the
CIA helped set up?  and who work routinely as government agents?

Terrorism?  in this country of 250 million people less the 15 people
per year die on average from terrorist activities.  considering
50,000 americans die every year on the roads,  someone needs to get
their priorities re-aligned.

Rogue governments?  like the libyans, or Iraq and iran?  how will clipper
harm a foreign government?  not to mention these countries are all
paper tigers.  the last time we dealt with traq,  i seem to recall
we waxed their army without breaking a sweat.  i am not worried.

> Delaney, senior investigator with the New York State Police, warned
> that if we adopted an encoding standard that did not permit lawful
> intercepts, we would have havoc in the United States.

But don forgets  that his standard allows un-lawful intercepts.

lets look at this word havoc.  that means a state of chaos or confusion.
If i go to anacostia on a friday night, i would say havoc exists. if i
go into a DC school by day, i could say havoc exists.  when  LA burned
last year havoc ran rampant,  and certainly this had little to do
with the lack of a proper data encryption standard.  The operation
of the polis has little to do with the effectiveness of our secret
police.

>
>    Moreover, the Clipper coding offers safeguards against casual
> government intrusion.  It requires that one of the two components of

Not neccesarily.  Although Dr denning and a team of independent
scientists reviewed the clipper standard,  they are not specialists
in code breaking.  I do not know how immune clipper is to corruption
once partial knowledge is attained.  knowledge of header blocks,
and access to partial keys and key fragments may make closure of
the cryptic circle a simpler proposition then her analysis indicated.

> a key embedded in the chip be kept with the Treasury Department and the

The dept that brought us the Secret service and the ATF?  i don't think
so.

> other component with the Commerce Department's National Institute of
> Standards and Technology.  Any law enforcement official wanting to

who work hand in glove with the NSA?
she forgets a single compromised official may be able to subvert
the entire system as mr Ames so easily demonstrated last week.

> wiretap would need to obtain not only a warrant but the separate
> components from the two agencies.  This, plus the superstrong code and
> key system would make it virtually impossible for anyone, even corrupt
> government officials, to spy illegally.

I think this is optimism in action.

>    But would terrorists use Clipper?  The Justice Department has
would Clipper stop terrorism?  Seriously can anyone guarantee
that this technology will end terrorism?  will clipper end
drug trafficking?

> their calls with their own code systems.  But then who would have
> thought that the World Trade Center bombers would have been stupid
> enough to return a truck that they had rented?

Considering the people who bomber the world trade center were keystone
terrorists, i would hardly hold them up as examples.

I would look at people like Carlos the Jackal,  THe Red Army,
Black September, Islamic Jihad, etc...
These are highly sophisticated, well trained killers,  and far more
effective and dangerous.

>    Court-authorized interception of communications has been essential
> for preventing and solving many serious and often violent crimes,

for all the crime and violence in our society, i doubt law enforcement
is doing a good job.  what we see is another band-aid on serious social
problems.

> including terrorism, organized crime, drugs, kidnaping, and political
> corruption.  The FBI alone has had many spectacular successes that
> depended on wiretaps.  In a Chicago case code-named RUKBOM, they
> prevented the El Rukn street gang, which was acting on behalf of the
> Libyan government, from shooting down a commercial airliner using a
> stolen military weapons system.

Dr Dennings faith is touching here.  The El Rukns  were done in
in part because the government compromised their lawyer.  And also
had several agents inside the organization.  Please a better example
must be out there.

>    To protect against abuse of electronic surveillance, federal
> statutes impose stringent requirements on the approval and execution
> of wiretaps.  Wiretaps are used judiciously (only 846 installed
> wiretaps in 1992) and are targeted at major criminals.

and how many wiretaps are installed il-legally?  considering during the
gulf war the FBI was wire-tapping the homes  of arab-americans
i wonder how well they use the legal process.

also if we are talking 846 wiretaps,  and say, 200 hours of tape
from each, we are talking about 200,000 hours of conversation.
i am certain that the NSA has the facility to de-crypt this number
of calls.  And if they don't why don't they?  they must listen to
foreign conversations,  and i am sure the russians are not so
accomodating as to use clear voice signaling.

>    Now, the thought of the FBI wiretapping my communications appeals to
> me about as much as its searching my home and seizing my papers.
> But the Constitution does not give us absolute privacy from
> court-ordered searches and seizures, and for good reason.  Lawlessness
> would prevail.

But the constitution does not forbid me from keeping safes,  or
cryptic records  or speaking in navajo,  either.  Dr Denning must have
far less faith in the body politic then I do.  besides if you want
to see lawlessness,  look at the beltway on friday afternoon.

>    Encoding technologies, which offer privacy, are on a collision
> course with a major crime-fighting tool: wiretapping.  Now the

wiretapping is a minor crime fighting tool.  for all the law enforcement
personnell we have, and all the cases brought each year,  less then 1%
involve wiretapping to start with.  these same complaints  have been
made about facsimile transmission,  computer data, cell phones
and cars.  technology changes and law enforcement adapts.  this is the
first time, i have ever seen law enforcement try to cripple a technology
befoe it becomes prevalent.

ASk yourself a question Dr Denning.  Cars are used in crime, criminals
often escape from the police.  why shouldn't all cars be restricted
to 35MPH, by design so the police can always capture and pursue?
fast cars, like the ferrari  have not brought chaos to our society.
why should cryptography?

> Clipper chip shows that strong encoding can be made available in a way
> that protects private communications but does not harm society if it
> gets into the wrong hands.  Clipper is a good idea, and it needs

how will clipper prevent the wrong hands from getting strong encoding?
will only outlaws have strong crypto?

> support from people who recognize the need for both privacy and
> effective law enforcement on the information highway.

sure we need law enforcement on the info highway,  but i don't
need a trooper in the back seat to listen to me talk to
my girlfirend as we drive.  i just need a trooper to watch for
speeders and drunk drivers.

Dr Denning was part of the clipper review team,  and as such
may be psychologically and emotionally committed to the project.
I hope her earlier effort shave not clouded her ability to conduct a
dispassionate social and policy analysis.

Also  Louis Freeh  was interviewed by John Markoff in an article in
todays NYT about the return of the Digital Telephony Standard.
Freeh said "If we are to have a peaceful and orderly society,
people will have to sacrifice a little privacy".  I couldn't
believe this.  Didn't  jefferson say something on the lines of
those who sacrifice liberty for a little peace deserve neither?
or was that heinlein?

The other interesting factoid to counter all the discussion on
Terrorism,  Nuclear death threats and Drug Dealing, is that
Aldrich Ames was arrested last week in the biggest spy scandal
this century since the Rosenbergs.  Ames who was the CIA chief of
CounterIntelligence/Soviet-Eastern Division was as well trained in
tradecraft as one can be.

He never used any telephonic encryption, despite total access to
all these devices.

Sorry if the spys aren't using them,  then why do we need a
way to break them?

Your friend
The Advocate.

PS  Advocate prediction #13.  That to push the clipper chip,
supporters will claim that Child pornographers are distributing
Snuff films in unbreakable crypto-form so that they can't be
detected.

From comp.society.cu-digest Tue Mar 15 22:08:47 1994
Date: 3 Mar 1994 12:12:08 -0500
From: hovaness@PANIX.COM(Haig Hovaness)
Subject: File 5--Newsday's Encryption and Law Enforcement (Re: CuD 6.19)

With all due respect to Professor Denning, I offer the following
observations in response to the material in her recent posting.

1. Professor Denning's views are representative of a small minority in
the US academic community.  However, through her energetic campaign to
promote pro-Clipper arguments, a casual observer of the debate would
conclude that her position is representative of a substantial segment of
academic opinion.  This was especially evident in the ACM Communications
"dialogue" on Clipper, in which Professor Denning's comments occupied
almost half of the editorial space.

2. Professor Denning's efforts to advance her views are not limited to
journalistic advocacy and Usenet postings.  Her presence on the ACM
committee studying Clipper has contributed to the success of the
pro-Clipper faction in deadlocking the committee, and thus preventing
the largest computing professional society from taking an anti-Clipper
position, a position that would reflect the sentiments of the majority
of the membership.

3. Professor Denning consistently makes generous assumptions about the
proper and lawful actions of government officials - assumptions that
anyone familiar with recent American history knows to be naive.  For
example, the political manipulation of information gathered by J. Edgar
Hoover, former Director of the F.B.I. is common knowledge.

4. Professor Denning relies heavily on anecdotal evidence of crimes
"prevented" through communications intercepts without presenting accurate
data on the (very small) number of crimes in which the intercept was
essential to the success of law enforcement.  Others have posted the
figures, and they suggest that the practical value of such intercepts is
greatly overstated.

5. Professor Denning maintains that secure encryption is a difficult
technology to master and is not readily available to the general public.
In view of the existence of PGP, and the likely availability of its
voice-scrambling successor, this is a ludicrous claim.

6. Professor Denning offers no explanation for how a US national
standard restricting encryption can be viable in the context of
worldwide voice and data communications.  How can the US government
possibly assert control of information packets crossing US "cyberspace?"

7. Professor Denning omits to mention that polls reveal that the
majority of the US public are opposed to telephone wiretaps.  All
available evidence suggests that Clipper would never survive a public
referendum.

8. Professor Denning neglects to mention that the entire commercial
sector of the US computing industry is united in opposition to Clipper.
Moreover, much of the business community is also hostile to the concept
of Government interception of business communications.

9. Professor Denning's arguments are ultimately authoritarian.  She
believes that the judgement of government officials must carry greater
weight than the will of the people.  This is a profoundly
anti-democratic position.

Haig Hovaness
Pelham Manor, NY
hovaness@panix.com

From comp.society.cu-digest Tue Mar 15 22:10:11 1994
Date: Sun,  6 Mar 1994 14:13:18 -0500
From: Dave Banisar <banisar@WASHOFC.CPSR.ORG>
Subject: File 1--Time Magazine on Clipper

Time Magazine, March 14, 1994

TECHNOLOGY

WHO SHOULD KEEP THE KEYS?

The U.S. government wants the power to tap into every phone, fax and
computer transmission

BY PHILIP ELMER-DEWITT

... (general background)

... (general info on techo advances)


  Thus the stage was set for one of the most bizarre technology-policy
battles ever waged: the Clipper Chip war. Lined up on one side are the three-
letter cloak-and-dagger agencies -- the NSA, the CIA and the FBI -- and key
policymakers in the Clinton Administration (who are taking a surprisingly
hard line on the encryption issue). Opposing them is an equally unlikely
coalition of computer firms, civil libertarians, conservative columnists and
a strange breed of cryptoanarchists who call themselves the cypherpunks.

  At the center is the Clipper Chip, a semiconductor device that the NSA
developed and wants installed in every telephone, computer modem and fax
machine. The chip combines a powerful encryption algorithm with a ''back
door'' -- the cryptographic equivalent of the master key that opens
schoolchildren's padlocks when they forget their combinations. A ''secure''
phone equipped with the chip could, with proper authorization, be cracked by
the government. Law-enforcement agencies say they need this capability to
keep tabs on drug runners, terrorists and spies. Critics denounce the Clipper
-- and a bill before Congress that would require phone companies to make it
easy to tap the new digital phones -- as Big Brotherly tools that will strip
citizens of whatever privacy they still have in the computer age.


  In a Time/CNN poll of 1,000 Americans conducted last week by Yankelovich
Partners, two-thirds said it was more important to protect the privacy of
phone calls than to preserve the ability of police to conduct wiretaps. When
informed about the Clipper Chip, 80% said they opposed it.



  The battle lines were first drawn last April, when the Administration
unveiled the Clipper plan and invited public comment. For nine months
opponents railed against the scheme's many flaws: criminals wouldn't use
phones equipped with the government's chip; foreign customers wouldn't buy
communications gear for which the U.S. held the keys; the system for giving
investigators access to the back-door master codes was open to abuse; there
was no guarantee that some clever hacker wouldn't steal the keys. But in the
end the Administration ignored the advice. In early February, after computer-
industry leaders had made it clear that they wanted to adopt their own
encryption standard, the Administration announced that it was putting the NSA
plan into effect. Government agencies will phase in use of Clipper technology
for all unclassified communications. Commercial use of the chip will be
voluntary -- for now.

  It was tantamount to a declaration of war, not just to a small group of
crypto-activists but to all citizens who value their privacy, as well as to
telecommunications firms that sell their products abroad. Foreign customers
won't want equipment that U.S. spies can tap into, particularly since
powerful, uncompromised encryption is available overseas. ''Industry is
unanimous on this,'' says Jim Burger, a lobbyist for Apple Computer, one of
two dozen companies and trade groups opposing the Clipper. A petition
circulated on the Internet electronic network by Computer Professionals for
Social Responsibility gathered 45,000 signatures, and some activists are
planning to boycott companies that use the chips and thus, in effect, hand
over their encryption keys to the government. ''You can have my encryption
algorithm,'' said John Perry Barlow, co-founder of the Electronic Frontier
Foundation, ''when you pry my cold dead fingers from my private key.''

... (history of Public Key encryption).


... (history of PGP)

  Rather than outlaw PGP and other such programs, a policy that would
probably be unconstitutional, the Administration is taking a marketing
approach. By using its purchasing power to lower the cost of Clipper
technology, and by vigilantly enforcing restrictions against overseas sales
of competing encryption systems, the government is trying to make it
difficult for any alternative schemes to become widespread. If Clipper
manages to establish itself as a market standard -- if, for example, it is
built into almost every telephone, modem and fax machine sold -- people who
buy a nonstandard system might find themselves with an untappable phone but
no one to call.

  That's still a big if. Zimmermann is already working on a version of PGP
for voice communications that could compete directly with Clipper, and if it
finds a market, similar products are sure to follow. ''The crypto genie is
out of the bottle,'' says Steven Levy, who is writing a book about
encryption. If that's true, even the nsa may not have the power to put it
back.

Reported by David S. Jackson/San Francisco and Suneel Ratan/Washington

From comp.society.cu-digest Tue Mar 15 22:12:13 1994
Date: Sun, 13 Mar 1994 11:30:17 -0500
From: John Perry Barlow <barlow@EFF.ORG>
Subject: File 1--Clipping the Wings of Freedom (Reprint, by J.P. Barlow)

                Clipping the Wings of Freedom		page 1

Jackboots on the Infobahn
by John Perry Barlow
<barlow@eff.org>

[Note: I wish to reserve to Wired Magazine first paper publication of
the following piece. However, given the fairly immediate nature of
this issue, I am net-casting it now. Feel free to pass it on
electronically as you see fit, but please do not turn it into any sort
of hard copy until Wired has done so. I also encourage you to buy the
April issue of Wired in which it will appear.]


On January 11, I managed to schmooze myself aboard Air Force 2. It was
flying out of LA, where its principal passenger had just outlined his
vision of the Information Superhighway to a suited mob of television,
show biz, and cable types who fervently hoped to own it one day...if
they could ever figure out what the hell it was.

>From the standpoint of the Electronic Frontier Foundation, the speech
had been wildly encouraging. The Vice President's announced program
incorporated many of the concepts of open competition, universal
access, and deregulated common carriage which we'd been pushing for
the previous year.

But he had said nothing about future of privacy, except to cite among
the bounties of the NII its ability to "help law enforcement agencies
thwart criminals and terrorists who might use advanced
telecommunications to commit crimes."

On the plane I asked him what this had meant regarding Administration
policy on cryptography. He became non-committal as a cigar store
indian.  "We'll be making some announcements... I can't tell you
anything more." He hurried back to the front of the plane, leaving me
to troubled speculation.


Despite its fundamental role in assuring privacy, transaction
security, and reliable identity within the NII, the Clinton/Gore
Administration policies regarding cryptography have not demonstrated
an enlightenment to match the rest of their digital visions.

The Clipper Chip...which bodes to be either the goofiest waste of
federal dollars since Gerald Ford's great Swine Flu program or, if
actually deployed, a surveillance technology of profound
malignancy...seemed at first an ugly legacy of Reagan/Bush. "This is
going to be our Bay of Pigs," one White House official told me at the
time Clipper was introduced, referring to the distastrous Cuban
invasion plan Kennedy inherited from Eisenhower.

(Clipper, in case you're just tuning in, is an encryption chip which
the NSA and FBI hope will someday be in every phone and computer in
America. It scrambles your communications, making them unintelligible
to all but their intended recipient. All, that is, but the government,
which would hold the "key" to your chip. The key would separated into
two pieces, held in escrow, and joined with the appropriate "legal
authority.")

Of course, trusting the government with your privacy is trusting a
peeping tom to install your window blinds. And, since the folks I've
met in this White House seem extremely smart, conscious, and
freedom-loving...hell, a lot of them are Deadheads...I was sure that
after they felt fully moved in, they'd face down the NSA and FBI, let
Clipper die a natural death, and lower the export embargo on reliable
encryption products.

Furthermore, NIST and the National Security Council have been studying
both Clipper and export embargoes since April. Given that the volumes
of expert testimony they collected opposed them both almost
unanimously , I expected the final report to give the Administration
all the support it needed to do the right thing.

I was wrong about this. Instead, there would be no report. Apparently,
they couldn't draft one which supported, on the evidence, what they
had decided to do instead.


THE OTHER SHOE DROPS

On Friday, February 4, the other jack-boot dropped. A series of
announcements from the Administration made it clear that cryptography
would become their very own "Bosnia of telecommunications" (as one
staffer put it). It wasn't just that the old Serbs in the NSA and the
FBI were still making the calls. The alarming new reality was that the
invertebrates in the White House were only too happy to abide by them.
Anything to avoid appearing soft on drugs or terrorism.

So, rather than ditching Clipper, they declared it a Federal Data
Processing Standard, backing that up with an immediate government
order for 50,000 Clipper devices. They appointed NIST and the
Department of Treasury as the "trusted" third parties that would hold
the Clipper key pairs.  (Treasury, by the way, is also home to such
trustworthy agencies as the Secret Service and the Bureau of Alcohol,
Tobacco, and Firearms.)

They re-affirmed the export embargo on robust encryption products,
admitting for the first time that its purpose was to stifle
competition to Clipper. And they outlined a very porous set of
requirements under which the cops might get the keys to your chip.
(They would not go into the procedure by which the NSA would get them,
though they assured us it was sufficient.)

They even signaled the impending return of the dread Digital
Telephony, an FBI legislative initiative which would require
fundamentally re-engineering the information infrastructure to make
provision of wiretapping ability the paramount design priority.


INVASION OF THE BODY SNATCHERS

Actually, by the time the announcements thudded down, I wan't
surprised by them. I had spent several days the previous week in and
around the White House.

I felt like I was in another re-make of The Invasion of the Body
Snatchers.  My friends in the Administration had been transformed.
They'd been subsumed by the vast mind-field on the other side of the
security clearance membrane, where dwell the monstrous bureaucratic
organisms which feed themselves on fear. They'd adopted the
institutionally paranoid National Security Weltanschauung.

They used all the tell-tale phrases. Mike Nelson, the White House
point man on NII, told me, "If only I could tell you what I know,
you'd feel the same way I do." I told him I'd been inoculated against
that argument during Vietnam. (And it does seem to me that if you're
going to initiate a process which might end freedom in America, you
probably need an argument that isn't classified.)

Besides, how does he know what he knows? Where does he get his
information?  Why the NSA, of course. Which, given its strong interest
in the outcome, seems hardly an unimpeachable source.

However they reached it, Clinton and Gore have an astonishingly simple
bottom line, against which even the future of American liberty and
prosperity is secondary: They believe that it is their responsibility
to eliminate, by whatever means, the possibility that some terrorist
might get a nuke and use it on, say, the World Trade Center. They have
been convinced that such plots are more likely to ripen to their
hideous fruition behind a shield of encryption.

The staffers I talked to were unmoved by the argument that anyone
smart enough to steal and detonate a nuclear device is probably smart
enough to use PGP or some other uncompromised crypto standard. And
never mind that the last people who popped a hooter in the World Trade
Center were able to put it there without using any cryptography and
while under FBI surveillance.

We are dealing with religion here. Though only 10 American lives were
lost to terrorism in the last two years, the primacy of this threat
has become as much an article of faith with these guys as the Catholic
conviction that
human life begins at conception or the Mormon belief that the Lost
Tribe of Israel crossed the Atlantic in submarines.

In the spirit of openness and compromise, they invited EFF to submit
other solutions to the "problem" of the nuclear-enabled terrorist
besides key escrow devices, but they would not admit into discussion
the argument that such a threat might, in fact, be some kind of
phantasm created by the spooks to ensure their lavish budgets into the
Post-Cold War era.

As to the possibility that good old-fashioned investigative techniques
might be more valuable in preventing their show-case catastrophe (as
it was after the fact in finding the alleged perpetrators of the last
attack on the World Trade Center),they just hunkered down and said
that when wire-taps were necessary, they were damned well necessary.

When I asked about the business that American companies lose to their
inability to export good encryption products, one staffer essentially
dismissed the market, saying that total world trade in crypto goods
was still less than a billion dollars. (Well, right. Thanks more to
the diligent efforts of the  NSA than lack of sales potential.)

I suggested that a more immediate and costly real-world effect of
their policies would be reducing national security by isolating
American commerce, owing to a lack of international confidence in the
security of our data lines. I said that Bruce Sterling's fictional
data-enclaves in places like the Turks and Caicos Islands were
starting to look real world inevitable.

They had a couple of answers to this, one unsatisfying and the other
scary.  Their first answer was that the international banking
community could just go on using DES, which still seemed robust enough
to them. [DES is the old federal Data Encryption Standard, thought by
most cryptologists to be nearing the end of its credibility.]

More troubling was their willingness to counter the data-enclave
future with one in which no data channels anywhere would be secure
from examination by some government or another. They pointed to
unnamed other countries which were developing their own mandatory
standards and restrictions regarding cryptography and have said to me
on several occasions words to the effect that, "Hey, it's not like you
can't outlaw the stuff. Look at France."

Of course, they have also said repeatedly...and for now I believe
them...that they have absolutely no plans to outlaw non-Clipper crypto
in the U.S. But that doesn't mean that such plans couldn't develop in
the presence of some pending "emergency." Then there is that White
House briefing document, issued at the time Clipper was first
announced, which asserts that no U.S. citizen "as a matter of right,
is entitled to an unbreakable commercial encryption product."

Now why, if it's an ability they have no intention of contesting, do
they feel compelled to declare that it's not a right? Could it be that
they are preparing us for the laws they'll pass after some bearded
fanatic has gotten himself a surplus nuke and used something besides
Clipper to conceal his plans for it?

If they are thinking about such an eventuality, we should be doing so
as well. How will we respond? I believe there is a strong, though
currently untested, argument that outlawing unregulated crypto would
violate the First Amendment, which surely protects the manner of our
speech as clearly as it protects the content.

But of course the First Amendment is, like the rest of the
Constitution, only as good as the government's willingness of the to
uphold it. And they are, as I say, in a mood to protect our safety
over our liberty.

This is not a mind-frame against which any argument is going to be
very effective. And it appeared that they had already heard and
rejected every argument I could possibly offer.

In fact, when I drew what I thought was an original comparison between
their stand against naturally proliferating crypto and the folly of
King Canute (who placed his throne on the beach and commanded the tide
to leave him dry), my opposition looked pained and said he had heard
that one almost as often as jokes about road-kill on the Information
Superhighway.

I hate to go to war with them. War is always nastier among friends.
Furthermore, unless they've decided to let the NSA design the rest of
the National Information Infrastructure as well, we need to go on
working closely with them on the whole range of issues like access,
competition, workplace privacy, common carriage, intellectual
property, and such.  Besides, the proliferation of strong crypto will
probably happen eventually no matter what they do.

But then again, it might not. In which case we could shortly find
ourselves under a government that would have the automated ability to
log the time, origin and recipient of everycall we made, could track
our physical whereabouts continuously, could keep better account of
our financial transactions than we do, and all without a warrant. Talk
about crime prevention!

Worse, under some vaguely defined and surely mutable "legal
authority," they also would be able to listen to our calls and read
our e-mail without having to do any backyard rewiring. (And wouldn't
even need that to monitor our overseas calls.)

If there's going to be a fight, I'd far rather it be with this
government than the one we'd likely face on that hard day.

Hey, I've never been a paranoid before. It's always seemed to me that
most governments are too incompetent to keep a good plot strung
together all the way from coffee break to quitting time. But I am now
very nervous about the government of the United States of America.

Because Bill 'n' Al, whatever their other new paradigm virtues, have
allowed the very old paradigm trogs of the Guardian Class to the
define as their highest duty the defense of America against an enemy
that exists primarily in the imagination and is therefore capable of
anything.

To assure absolute safety against such an enemy, there is no limit to
the liberties we will eventually be asked to sacrifice. And, with a
Clipper chip in every phone, there will certainly be no technical
limit on their ability to enforce those sacrifices.


WHAT YOU CAN DO

GET CONGRESS TO LIFT THE CRYPTO EMBARGO

The Administration is trying to impose Clipper on us by manipulating
market forces. Purchasing massive numbers of Clipper devices, they
intend to produce an economy of scale which will make them cheap while
their export embargo renders all competition either expensive or
non-existent.

We have to use the market to fight back. While it's unlikely that
they'll back down on Clipper deployment, the Electronic Frontier
Foundation believes that with sufficient public involvement, we can
get Congress to eliminate the export embargo.

Rep. Maria Cantwell (D-WA) has a bill (H.R. 3627) before the Economic
Policy, Trade, and Environment Science Subcommittee of the House
Foreign Affairs Committee which would do exactly that. She will need a
lot of help from the public. They may not care much about your privacy
in DC, but they still care about your vote.

Please signal your support of H.R. 3627, either by writing her
directly or e-mailing her at cantwell@eff.org. Messages sent to that
address will be printed out and delivered to her office. In the
Subject header of your message, please include the words "support HR
3627." In the body of your message, express your reasons for
supporting the bill. You may also express your sentiments to Rep. Lee
Hamilton, the Foreign Relations Committee chairman, by e-mailing
hamilton@eff.org.

Furthermore, since there is nothing quite as powerful as a letter from
a constituent, you should check the following list of subcommittee and
committee members to see if your congressperson is among them. If so,
please copy them your letter to Ms. Cantwell.

Economic Policy, Trade, and Environment Science Subcommittee:
Democrats: Sam Gejdenson (Chairman), James Oberstar, Cynthia McKinney,
Maria Cantwell, Eric Fingerhut, Albert R. Wynn, Harry Johnston, Eliot
Engel, Charles Schumer. Republicans: Toby Roth (ranking), Donald
Manzullo, Doug Bereuter, Jan Meyers, Cass Ballenger, Dana Rohrabacher.

Foreign Affairs Committee:
Democrats: Lee Hamilton (Chairman), Tom Lantos, Robert Torricelli,
Howard Berman, Gary Ackerman, Eni Faleomavaega, Matthew Martinez,
Robert Borski, Donal Payne, Robert Andrews, Robert Menendez, Sherrod
Brown, Alcee Hastings, Peter Deutsch, Don Edwards, Frank McCloskey,
Thomas Sawyer, Luis Gutierrez. Republicans: Benjamin Gilman (ranking),
William Goodling, Jim Leach, Olympia Snowe, Henry Hyde, Christopher
Smith, Dan Burton, Elton Gallegly, Ileana Ros-Lehtinen, David Levy,
Lincoln Diaz-Balart, Ed Royce.


BOYCOTT CLIPPER DEVICES AND THE COMPANIES WHICH MAKE THEM.

Don't buy anything with a Clipper chip in it. Don't buy any product
from a company which manufactures devices with "Big Brother Inside."
It is likely that the government will ask you to use Clipper for
communications with the IRS or when doing business with Federal
agencies. They cannot, as yet, require you to do so. Just say no.


LEARN ABOUT ENCRYPTION AND EXPLAIN THE ISSUES TO YOUR UNWIRED FRIENDS

The administration is banking on the likelihood that this stuff too
technically obscure to agitate anyone but nerds like us. You prove
them wrong by patiently explaining what's going on to all the people
you know who have never touched a computer and glaze over at the
mention of words like "cryptography."

Maybe you glaze over yourself. Don't. It's not that hard. For some
hands-on experience, download a copy of PGP, a shareware encryption
engine which uses the robust RSA encryption algorithm. and learn to
use it.


GET YOUR COMPANY TO THINK ABOUT EMBEDDING REAL CRYPTOGRAPHY IN ITS
PRODUCTS

If you work for a company which makes software, computer hardware, or
any kind of communications device, work from within to get them to
incorporate RSA or some other strong encryption scheme into their
products. If they say that they are afraid to violate the export
embargo, ask them to consider manufacturing such products overseas and
importing them back into the United States. There appears to be no law
against that. As yet.

You might also lobby your company to join the Digital Privacy and
Security Working Group, a coalition of companies and public interest
groups that includes IBM, Apple, Sun, Microsoft (and, interestingly,
Clipper phone manufacturer AT&T) that is working to get the embargo
lifted.


JOIN EFF, CPSR, OR BOTH

Self-serving as it sounds coming from me, I think you can do a lot to
help by becoming a member of one of these organizations. In addition
to giving you access to the latest information on this subject, every
additional member strengthens our credibility with Congress.

Join the Electronic Frontier Foundation by writing membership@eff.org.
Join Computer Professionals for Social Responsibility by writing
[provide e-mail address here.]

In his LA speech, Gore called the development of the NII "a
revolution." And it is a revolutionary war we are engaged in here.
Clipper is a last ditch attempt by the United States, the last great
power from the Industrial Era, to establish imperial control over
Cyberspace. If they win, the most liberating development in the
history of humankind could become, instead, the surveillance system
which will monitor our grandchildren's morality. We can be better
ancestors than that.


John Perry Barlow is co-founder and Vice-Chairman of the Electronic
Frontier Foundation, a group which defends liberty, both in Cyberspace
and the Physical World. He has three daughters.

From comp.risks Wed Mar 30 21:51:47 1994
Date: Fri, 18 Mar 94 09:52:54 EST
From: denning@chair.cosc.georgetown.edu (Dorothy Denning)
Subject: Re: Clipper Compromised

RISKS-15.66 included a brief from "Network World," which referenced a story in
the "Security Insider Report" suggesting that Aldrich Ames could have had
access to Clipper's classified SKIPJACK algorithm or Clipper keys.  A New York
Times reporter asked me about this rumor a few weeks ago, and the whole idea
struck me as so obviously absurd that I could hardly stop laughing.
Nevertheless, I did check it out with people who would know.  They confirmed
what I thought.  The whole rumor is total nonsense.

What I don't understand is why people persist is spreading rumors and
speculation that have no basis and don't even make sense.

Dorothy Denning

From comp.risks Wed Jun  8 21:02:16 1994
Date: Fri, 3 Jun 1994 20:14:29 -0700
From: sidney@taurus.apple.com (Sidney Markowitz)
Subject: Details of flaw in Clipper

I have seen lots of discussion about the New York Times report on Matt Blaze's
discovery of a flaw in Clipper's key escrow system, with more confusion than
anything else. Here is the best article that I have seen on the net explaining
exactly what Dr. Blaze has found. There's also confusion about the
implications. My understanding is that this method might allow someone with a
Clipper chip device to have a secure communication with another person with a
Clipper device that could not be decrypted by law enforcement *and* it does
not require the cooperation of the second person.  That last part is what
makes this significant, since two people can agree to just encrypt their
messages with, say PGP, if they want to be secure from law enforcement
decryption. But if Blaze's method is practical, the widespread use of Clipper
would make it harder on law enforcement by making it easier than it is now for
someone to have secure communication with people without having to plan with
them to do so.

 -- sidney markowitz <sidney@taurus.apple.com>

[begin quote of Message-ID: <PERRY.94Jun3182655@snark.imsi.com>
 crossposted to sci.crypt, talk.politics.crypto, alt.policy.clipper]

   [Run in RISKS with permission of "Perry E. Metzger" <perry@imsi.com>.  PGN]

Many people have misconceptions about what Matt did.

Based on his paper (no, you can't have a copy since he told me not to
distribute it; I'm sure he'll release it when its ready for prime time) and
discussions with him, the trick is this.

[The Escrowed Encryption Standard is abbreviated as EES.]

The LEAF acts much as an key to tell the EES unit that it should
function. It contains three elements:

1) the 32 bit unit id of the EES unit generating the LEAF
2) the 80 bit session key, encrypted in the escrowed key for that unit.
3) a 16 bit checksum based on the unencrypted session key and the
   initialization vector (IV) for the session.

All three components are concatenated to form a 128 bit unit, which is
encrypted in the family key in order to produce the LEAF, reportedly using a
unique mode of Skipjack.

The remote unit takes in the LEAF, decrypts it with the family key, and checks
the cleartext session key and IV to see if they produce the proper 16 bit
checksum. If so, it accepts the LEAF and functions properly. Note that the
encrypted key inside the LEAF is useless to the remote EES since it doesn't
have the other EES's escrowed key. It has to rely on the cleartext session key
and IV alone to check that the checksum looks right.

Sadly for the NSA, the checksum is only 16 bits long. Given a session key and
initialization vector, I can fairly quickly generate a large number of fake
LEAFs (chosen at random) and find one that a captive EES unit will accept as
being the right LEAF for a given session key/IV. The contents of the LEAF will
be garbage, but the remote unit will not know that, and will happily go along
with using it. I needn't know the family key, or even the checksum algorithm.

The point here is, of course, that I can freely interoperate with non-rogue
EES units -- I can communicate with non-subverted units without revealing my
privates hidden beneath the LEAF. (sorry for the pun.) [*]

By the way, Matt had to figure out the components of the checksum on his own
-- the mechanism for calculating it and where it came from were not
documented.

BTW, for those who have asked, in case the preceding didn't make it clear,
can't you just reuse an old LEAF or a stolen LEAF because the session key/IV
won't correspond and the checksum won't be right -- you have to generate and
test.

Perry Metzger		perry@imsi.com

[end quoted message]

     [*] [Turning over a new LEAF is better than if you LEAF 
         well enough alone, he suggested FIGuratively.  PGN]

From comp.risks Wed Jun  8 21:05:25 1994
Date: Sat, 4 Jun 94 22:35:29 -0400
From: padgett@tccslr.dnet.mmc.com (A. Padgett Peterson)
Subject: Flaw ? in Clipper

This has already gotten out of hand on the Usenet. In simplest terms, what
Matt Blaze found is that is is possible to spoof a CLIPPER LEAF (law
enforcement access field).

IMHO this is almost meaningless since *both* ends will need to do this (AFAIR
each side sends a LEAF. If only one LEAF is spoofed, it will just be 
necessary for a legal tapper to use the other one).

Thus to be effective, both ends will need special spoofing equipment and in
that case they might as well use something other than Clipper. Even better use
something different but prefix a valid Clipper LEAF. Right. Remember Occam's
Gillette.

Dr. Blase also mentioned that it would take about 20 minutes to come up with a
valid checksum. Much easier would simply be to record a valid LEAF from
another chip and use that.

The most important element is that the SKIPJACK algorithm is in no way
affected by this and is as strong as ever, only the government's ability to
use the LEAF may be compromised.

I still expect the government to drop key escrow when the hardware is ready
and that there will still be two means available to defeat Clipper available
to the government - without using any backdoor/trapdoor and without any
weakness in SKIPJACK (see my earlier postings - one is similar to the way GSM
can be tapped now).

Personally, I feel that Clipper is a valuable mid-range low-announced- cost
device that is "good enough for government work". PGP or triple DES used in
combination with Clipper is a viable next step up.

Padgett

P.S. Anyone notice Enigma-Logic's announcement of a one-time-password-token
   emulation for the PC @ US$10/user (maybe less) ? Certainly an answer to
   sniffers.

From comp.risks Wed Jun  8 21:05:44 1994
Date: Mon, 6 Jun 1994 19:29:45 -0700
From: sidney@taurus.apple.com (Sidney Markowitz)
Subject: Blaze's Clipper paper available via ftp

Matt Blaze is the AT&T researcher who has made the news recently for
discovering a flaw in the Clipper protocol. I saw an announcement from him
that a preliminary draft of his paper "Protocol Failure in the Escrowed
Encryption Standard" is available via anonymous ftp from resarch.att.com in
the file /dist/mab/eesproto.ps in PostScript format. He cautions that there
will be a final version of the paper which will likely include additional
material on the production version of the PCMCIA card, and that this draft is
based on his examination of a prototype card.

 -- sidney markowitz <sidney@apple.com>

From comp.risks Wed Jun  8 21:07:35 1994
Date: Tue, 7 Jun 1994 03:19:55 -0700
From: Paul Carl Kocher <kocherp@leland.Stanford.EDU>
Subject: Re: Flaw in Clipper detected (Huggins, RISKS-16.11)

Although I doubt people will modify devices with hard-wired Clipper chips,
this is seems to be a very serious blow to Tessera (the government's PCMCIA
card with a Clipper chip).

Tessera has a standard programming interface that passes the programmer's
calls to the encryption card.  Any experienced assembly language programmer
could easily add "support" for Blaze's technique for bypassing the LEAF (Law
Enforcement Access Field) validation check.  This could be done transparently
and without significantly impacting performance.  It could also fix up the
side effects of the attack (e.g. the first block is bad in CBC mode, etc).
Under MSDOS this could be done with a TSR that would intercept calls to the
card directly, so it would work with all Tessera applications.  The same TSR
could also substitute pre-computed and/or brute-forced LEAFs for
interoperability with non-cheating users.

We were told that the reason for having escrowed keys and a secret algorithm
was to keep terrorists from having strong crypto.  Now the bad guys have
full-strength SkipJack, the public has a flawed "standard," and because the
algorithm is classified we can't look for other problems.  I'm also wondering
what's going on inside NSA -- DSS originally had alarmingly-small keys and has
been widely criticized, SHA was defective, and now this...

-- Paul Kocher  kocherp@leland.stanford.edu

From comp.society.cu-digest Wed Jun  8 21:09:40 1994
Date: Thu, Jun 2 1994 17:33:21 PDT
From: Brock Meeks <brock@well.sf.ca.us>
Subject: File 2--Jacking in from the SNAFU Port (Clipper Snafu update)

((Moderators' Note: The following article may not be reprinted or
reproduced without the explicit consent of the author)).

             CyberWire Dispatch // Copyright (c) 1994 //
                   Jacking in from the SNAFU Port:

Washington, DC -- Matthew Blaze never intended to make the front page
of the New York Times.  He was just doing his job:  Nose around inside
the government's most secret, most revered encryption code to see if
he could "break it." Blaze, a researcher for AT&T Bell Labs, was good
at this particular job. Maybe a bit too good.  Although he didn't
actually "break" the code, he did bend the fuck out of it.  That feat
landed him a front page story in the June 2 issue of the New York
Times.

What Blaze found -- and quietly distributed among colleagues and
federal agencies in a draft paper -- was that design bugs in Skipjack,
the computer code that underlies the Clipper Chip encryption scheme,
can be jacked around, and re-scrambled so that not even the Feds can
crack it.  This of course defeats the whole purpose of the Clipper
Chip, which is to allow ONLY the government the ability to eavesdrop
on Clipper encoded conversations, faxes, data transmissions, etc.

What Blaze's research attacks is something called the LEAF, short for
"Law Enforcement Access Field."  The LEAF contains the secret access
code needed by law enforcement agents to decode the scrambled
messages.  Blaze discovered that the LEAF uses only a 16- bit
checksum, which is a kind of self-checking mathematical equation.
When the checksum equations match up, the code is valid and
everything's golden.  The cops get to unscramble the conversations and
another kiddie porn ring is brought to justice.  (This is what the FBI
will tell you... again and again and again and... ) But you can
generate a valid 16-bit checksum in about 20 minutes, according to
those crypto-rebels that traffic the Internet's Cypherpunks mailing
list.  "A 16-bit checksum is fucking joke," one cryptographic expert
from the list told Dispatch.  "If it weren't so laughable, I'd be
insulted that all this tax payer money has gone into the R&D of
something so flawed."

But the New York Times got the story *wrong* or at least it gave only
part of the story.  "What the New York Times story didn't say was that
the findings... had nothing to do with the Government standard, which
covers voice, facsimile and low-speed data transmission," said an AT&T
spokesman.  AT&T was the first company to publicly support the Clipper
Chip.  A stance that was essentially bought and paid for by the U.S.
government with the promise it would get big government contracts to
sell Clipper equipped phones to Uncle Sam, according to documents
previously obtained by Dispatch.

The AT&T spokesman said the "frailty" that Blaze discovered doesn't
actually exist in the Clipper Chip applications.  "Our scientists,
working with National Security Agency (NSA) scientists, were
conducting research on proposed future extensions of the standard," he
said.

Those "future extensions" are the so-called Tessera chip, intended to
be embedded in a PCMCIA credit card sized device that fits into a slot
in your computer.

When the NSA trotted out its Tessera card, it invited Blaze, among
others, to review the technology, essentially becoming a beta-tester
for the NSA.  No formal contract was signed, no money changed hands.
Blaze took on the job in a volunteer role.  Using a prototype Tessera
chip installed on a PCMCIA card, he broke the damn thing.

AT&T claims the whole scenario is different from the Clipper because
the LEAF generated by Clipper "is a real time application... with
Tessera it's static," the spokesman said.  He said Tessera would be
used to encrypt stored communications or Email.  "And with Tessera,
the user has the ability to get at the LEAF," he said, "with Clipper,
you don't."

Blaze will deliver his paper, titled "Protocol Failure in the Escrowed
Encryption Standard," this fall during the Fairfax Conference.  His
findings "should be helpful" to the government "as it explores future
applications," of its new encryption technology the AT&T spokesman
said.  In our view, it's better to learn a technology's limitations
while there's time to make revisions before the Government spends
large sums to fund development programs."

This is an important, if subtle statement.  The Clipper Chip never
underwent this type of "beta-testing," a fact that's drawn the ire of
groups such as Computer Professionals for Social Responsibility (CPSR)
and the Electronic Frontier Foundation (EFF).  When the White House
began to take hits over this ugly situation, it agreed to have an
independent panel of experts review the classified code to check for
any trapdoors.

Those experts claim they found nothing fishy, but their report -- alas
--has also been classified, leading to further demands for openness
and accountability.  The White House is stalling, naturally.

But in an apparent about face, the NSA allowed an "open" beta- testing
for Tess and -- surprise -- we find out there are bugs in the design.

Okay, Pop Quiz time: Does the existence of "Blaze Bug" make you feel:
(A) More secure about the government's claim that Clipper will only be
used to catch criminals and not spy on the citizenry. (B) Less secure
about everything you've ever been told about privacy and encryption by
the Clinton Administration.  (C)  Like this entire episode is really
an extended "Stupid Pet Tricks" gag being pulled by David Letterman.

If you're still unsure about Clipper, check this quote from the AT&T
spokesman:  "It's worth noting that Clipper Chip wasn't subjected to
this type of testing."  Ah-huh... any questions?

The NSA is trying to downplay the news.  "Anyone interested in
circumventing law enforcement access would most likely choose simpler
alternatives," said Michael Smith, the agency's planning director, as
quoted by the New York Times.  "More difficult and time-consuming
efforts, like those discussed in the Blaze paper, are very unlikely to
be employed."

He's right.  Those "simpler alternatives" include everything from
private encryption methods to not using a Clipper equipped phone or
fax in the first place.  (Of course, the FBI keeps insisting that
criminals won't use any of this "simpler" knowledge because they are
"dumb.")

Despite the NSA's attempt to blow off these findings, the agency is
grinding its gears.  One NSA source told Dispatch that the Blaze paper
is "a major embarrassment for the program."  But the situation is
"containable" he said.  "There will be a fix." Dispatch asked if there
would be a similar review of the Clipper protocols to see if it could
be jacked around like Tess.  "No comment," was all he said.

Meeks out...

From comp.society.cu-digest Wed Jun  8 21:11:20 1994
Date: Thu, Jun 2 1994 17:33:21 PDT
From: Brock Meeks <brock@well.sf.ca.us>
Subject: File 3--Jacking in from the "We Knew It All Along" Port (Clipper)

((Moderators' Note: The following article may not be reprinted or
reproduced without the explicit consent of the author)).

             CyberWire Dispatch // Copyright (c) 1994 //
           Jacking in from the "We Knew It All Along" Port:

Washington, DC -- The key technology underlying the Administration's
Tessera "Crypto Card" was fatally flawed from its inception, Dispatch has
learned.  Government researchers working for the National Security Agency
have known for months about the flaw, but purposefully withheld that
information from the public, a government official acknowledged today to
Dispatch.

Cryptographic researchers at the super-secret NSA have known all along that
the program used to scramble a key part of the government's Clipper system
could be thwarted by a computer savvy user with 28 minutes of free time,
according to an NSA cryptographic expert that spoke to Dispatch under the
condition he not be identified.

"Everyone here knew that the LEAF (Law Enforcement Access Field) could be
fucked with if someone knew what they were doing," the NSA expert said.
"We knew about the flaw well before it became public knowledge.  What we
didn't know is how long it would take an outside source to discover the
flaw."

In essence, the NSA decided to play a kind of high-tech cat and mouse game
with a technology being hailed as the most secure in the world.  So secure,
the White House is asking the public to give up a degree of privacy because
there's no chance it can be abused.

"We figured [the presense of the flaw] was an acceptable risk," the NSA
expert said.  "If no one found out, we probably would have fixed it sooner
or later," he said.  "I can't imagine that we would have let that one slip
through."

But someone spoiled the end game.  A 33-year-old AT&T scientist Matthew
Blaze discovered the crack in the White House's increasingly crumbling spy
vs. citizen technology.

Acting as a kind of beta-tester, Blaze found several techniques that could
be used to successfully thwart the LEAF, the encrypted data stream needed
by law enforcement officers in order to identify what amounts to a social
security number for each Clipper or Tessera chip.

Once the LEAF is in hand, law enforcement agents then submit it to the
"key escrow agents." These escrow agents are two government authorized
agencies that keep watch over all the keys needed to descramble Clipper
or Tessera encoded conversations, faxes or data transmissions. Without the
keys from these two agencies, the law enforcement agents hear nothing but
static. Without the LEAF, the agencies won't cough up the keys.

Bottom line:  If the LEAF is fucked, so is access to the scrambled
communications.

What Blaze so eloquently discovered is that someone with a modicum of
knowledge could do was jack around with the LEAF, rendering it unusable.
What Blaze didn't realize is that he was merely acting as an NSA stooge.

But the methods discovered by Blaze, and outlined in a draft paper he'll
later present this month during a high brow security shindig known as the
Fairfax conference, are cumbersome.  "The techniques used to implement
(the work arounds) carry enough of a performance penalty, however, to limit
their usefulness in real-time voice telephony, which is perhaps the
government's richest source of wiretap-based intelligence," Blaze writes in
his paper.

Notice he says "limit" not "completely render useless."  Important
distinction.  Are there other, faster, more clever ways to circumvent the
LEAF?  "If there are, I wouldn't tell you," the NSA crypto expert said.

Shut Up and Chill Out
=====================

The National Institute of Standards and Technology (NIST), the agency
walking point for the White House on the Clipper issue, takes these
revelations all in stride.  Sort of a "shut up and chill out" attitude.

The techniques described by Blaze "are very unlikely to be used in actual
communications," a NIST spokeswoman said.  Does that mean they could never
be used?  "It's very unlikely."

NIST, when confronted with the fact that NSA researchers knew all along
that the technology was broken, was unapologetic.  "All sound cryptographic
designs and products consider tradeoffs of one sort or another when design
complexities, costs, time and risks are assessed," the NIST spokeswoman
said.  The Clipper family of encryption technologies "is no exception,"
she said.

NIST said that the Tessera card "isn't a standard yet, so the process of
testing it's integrity is ongoing."  The technology in Tess is known as
the Capstone chip, which, unlike the Clipper Chip, hasn't yet been accepted
as a standard, NIST said.

Flaws, therefore, are assumably just part of an ongoing game.

The fact that the NSA knew about this flaw when it asked people like Blaze
to test it was "just part of the ongoing testing procedure," the
spokeswoman said.  And if Blaze or some other idea hamster hadn't
discovered the flaw?  You make the call.

What about Clipper?  Are there such flaws in it?  NIST says "no" because
it has already been through "independent testing" and accepted as a
standard.  If there are flaws there, they stay put, or so it seems.

Clipper's My Baby
=================

Beyond the high risk crypto games the NSA has decided to play, there's
another disturbing circumstance that could torpedo the Clipper before it's
given its full sailing orders.  This obstacle comes in the form of a patent
dispute.

Silvio Micali, a scientist at the massachusetts Institute of Technology
says the Clipper is his baby.  He claims to hold two crucial patents that
make the Clipper tick.

"We are currently in discussions with Mr. Micali," NIST said.  "We are
aware of his patent claims and we're in the process of addressing those
concerns now," a NIST spokeswoman said.

She wouldn't go into details about as to the extent of the talks, but
obviously, the government is worried.  They haven't flatly denied Micali's
claims.

If this all sounds like a bad nightmare, you're right.  NIST ran into the
same problems with its Digital Signature Standard, the technology they've
adopted as a means to "sign" and verify the validly of electronic mail
messages.  Others jumped on the government's DSS standard, claiming they
were owed royalties because they held patents on the technology.  These
discussions are still "ongoing" despite the government's adoption of the
standard.

The same situation is now happening with Clipper.  One could make a case
that Yogi Berra is the policy wonk for the Clipper program:  "It's like
deja vu all over again," Berra once said.

So it is, Yogi... so it is.

Meeks out...

From comp.society.cu-digest Wed Jun  8 21:15:17 1994
Date: Thu, 2 June, 1994 23:54:21 EDT
From: anon <cudigest@mindvox.phantom.com>
Subject: File 1--AT&T Lab Scientist Discovers Flaw in Clipper Chip

(The government's proposed encryption technology may not be as
secure as proponents want us to think. This might be of interest
to you--anon).

          Scientist Insists U.S. Computer Chip has Big Flaw
                           By John Markoff
           Extracted from the New York Times, June 2, 1994

Technology that the Clinton administration has been promoting for use
by law enforcement officials to eavesdrop on electronically scrambled
telephone and computer conversations is flawed and can be defeated, a
computer scientist says.

Someone with sufficient computer skills can defeat the government's
technology by using it to encode messages so that not even the
government can crack them, according to AT&T Bell Laboratories
researcher Matthew Blaze.

     (The article explains the background to the fight to implement
     Clipper by the Clinton Adminstration as a means to help
     law enforcment, and notes that the technolgoy has been
     widely criticized by communications executives and others)

The industry also fears foreign customers might shun equipment if
Washington keeps a set of electronic keys.  But now Blaze. as a result
of his independent testing of Clipper, is putting forth perhaps the
most compelling criticism yet:  The technology simply doesn't work as
advertised.

Blaze spelled out his findings in a draft report that he has been
ciculat-ing quietly among computer researchers and federal agencies in
recent weeks.

"The government is fighting an uphill battle," said Martin Hellman. a
Stanford University computer scientist who has read Blaze's paper and
who is an expert in data encryption.  "People who want to work around
Clipper will be able to do it."

But the National Security Agency. the government's electronic spying
agency, said Wednesday that Clipper remained useful, despite the flaw
uncovered by Blaze.

"Anyone interested in circumventing law enforcement access would most
likely choose simpler alternatives," Michael Smith, the agency's
director of policy. said in a written statement.

"More difficult and time consuming efforts. like those discussed in
the Blaze paper, are very unlikely to be employed."


   (The article summarizes the government's defense for Clipper)

But industry executives have resisted adopting Clipper.  Because the
underlying mathematics of the  technology remain a classified
government secret, industry officials say there is no way to be
certain that it is as secure as encoding techniques already on the
market.

They also fear that Clipper's electronic back door, which is designed
for legal wiretapping of communications. could make it subject to
abuse by the government or civilian computer experts.  Privacy-rights
advocates have cited similar concerns.

Industry executives also have worried that making Clipper a fed-eral
government standard would be a first step toward prescribing the
technology for private industry or requiring that it be included in
sophisticated computing and communications devices that are to be
exported.

Blaze said that the flaw he discovered in the Clipper design would not
permit a third party to break a coded computer conversation.

But it would enable two people to have a secret conversation that law
enforcement officials could not unscramble.  And that could render
Clipper no more useful to the government than encryption technology
already on the market to which it does not hold the mathematical keys.

"Nothing I've found affects the security of the Clipper system from
the point of view of people who might want to break the system." Blaze
said. "This does quite the opposite. Somebody can use it to circumvent
the law enforcement surveillance mechanism."

     The article concludes by noting that Blaze said that several
     simple changes to the Clipper design could fix the flow, but that
     this might be difficult because the changes would require the
     government to start over in designing clipper. The governmetn has
     already started ordering telephones containing the Clipper chip
     for federal agencies.

From comp.risks Mon Jun 27 22:53:24 1994
Date: Thu, 16 Jun 1994 17:29:40 -0400 (EDT)
From: ROBACK@ENH.NIST.GOV
Subject: NIST Response to Blaze Attack on Clipper

Note: The following material was released by NIST in response to recent
articles regarding AT&T/Matt Blaze and the key escrow chip.  A second more
technical response follows.

                    -------------------------
June 2, 1994
Contact:  Anne Enright Shepherd
(301) 975-4858

The draft paper by Matt Blaze* describes several techniques aimed at
circumventing law enforcement access to key escrowed encryption products based
on government-developed technologies.

As Blaze himself points out, these techniques deal only with the
law-enforcement feature, and in no way reduce the key escrow chips' inherent
security and data privacy.

     --   "None of the methods given here permit an attacker to
          discover the contents of encrypted traffic or
          compromise the integrity of signed messages.  Nothing
          here affects the strength of the system from the point
          of view of the communicating parties...." p. 7.

Furthermore, Blaze notes that the techniques he is suggesting are
of limited use in real-world voice applications.

     --   "28 minutes obviously adds too much latency to the
          setup time for real-time applications such as secure
          telephone calls." p. 7.

     --   "The techniques used to implement them do carry enough
          of a performance penalty, however, to limit their
          usefulness in real-time voice telephony, which is
          perhaps the government's richest source of wiretap-
          based intelligence." p. 8.

Anyone interested in circumventing law enforcement access would most likely
choose simpler alternatives (e.g., use other nonescrowed devices, or super
encryption by a second device).  More difficult and time-consuming efforts,
like those discussed in the Blaze paper, merit continued government review --
but they are very unlikely to be employed in actual communications.

All sound cryptographic designs and products consider trade-offs among design
complexity, costs, time and risks.  Voluntary key escrow technology is no
exception.  Government researchers recognized and accepted that the law
enforcement access feature could be nullified, but only if the user was
willing to invest substantial time and trouble, as the Blaze report points
out.  Clearly, the government's basic design objective for key escrow
technology was met: to provide users with very secure communications that will
still enable law enforcement agencies to benefit from lawfully authorized
wiretaps.  It is still the only such technology available today.

Today, most Americans using telephones, fax machines, and cellular phones have
minimal privacy protection.  The key escrow technology -- which is available
on a strictly voluntary basis to the private sector -- will provide the
security and privacy that Americans want and need.

*    Statements from "Protocol Failure in the Escrowed Encryption
     Standard," May 20 draft report by Matt Blaze, AT&T Bell
     Laboratories
                              -----

Note: The following provides additional technical material in response to
questions regarding a recent paper by Matt Blaze on key escrow encryption.

        --------------------------------------
                              
Technical Fact Sheet on Blaze Report and Key Escrow Encryption

     Several recent newspaper articles have brought attention to a report
prepared by Dr. Matthew Blaze, a researcher at AT&T's Bell Labs. These
articles characterize a particular finding in Blaze's report as a ~flaw~ in
the U.S. government's key escrow encryption technology. None of the findings
in Dr. Blaze's paper in any way undermines the security and privacy provided
by the escrow encryption devices.

     The finding which has received the most publicity could allow a
non-compliant or ~rogue~ application to send messages to compliant or
~non-rogue~ users which will not be accessible by law enforcement officials
through the escrowed encryption standard field called the Law Enforcement
Access Field (LEAF).

     Dr. Blaze's approach uses the openly disclosed fact that the LEAF
contains 16-bit checkword to prevent rogue users from modifying the law
enforcement access mechanism. This 16-bit checkword is part of the 128-bit
LEAF, which also includes the enciphered traffic key and the unique chip
identifier.
 
     Dr. Blaze's method is to randomly generate different 128-bit LEAFs until
he gets one that passes the checkword. It will take on average 216, or 65,536
tries.  This is not a formidable task; it could be done in less than an hour.
Dr. Blaze questions the adequacy of a 16-bit checkword and suggests using a
larger one, to ensure that the exhaustion attack would be so time consuming as
to be impractical.
 
     The chip designers recognized the strengths and limitations of a 16-bit
checkword. Following are the reasons why they chose to use a checkword of only
16 bits:

* There were four fundamental considerations that the designers considered in
choosing the LEAF parameters.

These were:

(1) ease of access by authorized law enforcement agencies, 

(2) impact on communications, 

(3) a sufficiently large identifier field which would not constrain
manufacturers, and

(4) the difficulty required to invalidate the LEAF mechanism by techniques
such as those described by Dr. Blaze.

* The purpose of the LEAF is to preserve law enforcement's ability to access
communications in real-time. The encrypted traffic key, which enables them to
do this, is 80 bits long. In addition to this 80-bit field, the LEAF must
contain the unique identification number of the key escrow encryption chip
doing the encryption.

* The size of the identifier field was the subject of considerable
deliberation.  In the earliest considerations it was only 25 bits long. The
chip designers recognized that 25 bits did not offer enough flexibility to
provide for multiple manufacturers of key escrow devices. Different chip
manufacturers would need manufacturer identifiers as well as their own chip
identifiers to ensure that identifiers are unique. Eventually, the designers
agreed that 32 bits would adequately meet this requirement.

* In many environments, error-free delivery of data is not guaranteed, and
there is considerable concern by communication engineers that requiring
error-free transmission of a fixed field (the LEAF) could make the encryption
device difficult to use. In early discussions with industry, they were opposed
to any checkword.  In the end, they agreed it would be acceptable if the size
of the LEAF was restricted to 128 bits. This left 16 bits for a checkword to
inhibit bypassing the LEAF. While recognizing the possibility of exhausting
these 16 bits, the designers concluded that 16 bits are adequate for the first
intended application. Security enhancements are being made for other
applications, such as the TESSERA card.

Note that computations are required to search for a matching checkword, which
then has to be properly substituted into the communications protocol. The
performance and cost penalties of the search operation are significant for
telephone, radio, and other such applications, thus providing adequate
protection against this technique for bypassing the LEAF.

In summary:

* Although this technique would allow one to bypass the LEAF, the security
provided by the escrow encryption devices would not be altered. Users'
information would still be protected by the full strength of the encryption
algorithm.

* Dr. Blaze was accurate in noting that these attacks are of limited
effectiveness in real-time telephony.

* When designing the key escrow chip, NSA emphasized sound security and
privacy, along with user friendliness. The attacks described by Dr. Blaze were
fully understood at the time of initial chip design. The use of 16 bits for
the checkword was an appropriate choice in view of the constraints of a
128-bit LEAF.  It provides excellent security for real-time telephone
applications with high assurance that law enforcement's interests are
protected.

* Dr. Blaze's research was done using prototype TESSERA cards.  As part of the
family of planned releases/upgrades, NSA already has incorporated additional
security safeguards into the production TESSERA cards to protect against the
kinds of attacks described by Dr. Blaze.

From comp.org.eff.news Mon Jul 25 21:26:37 1994
Xref: utcsri alt.2600:16422 alt.activism:71428 alt.activism.d:15373 alt.politics.datahighway:4663 alt.politics.org.nsa:769 alt.privacy:16436 alt.privacy.clipper:4702 alt.security.pgp:17665 alt.society.resistance:1937 alt.wired:11342 comp.org.cpsr.talk:1414 comp.org.eff.news:251 comp.org.eff.talk:36647 misc.legal:96328 sci.crypt:29823 talk.politics.crypto:6623
Path: utcsri!utnut!torn!spool.mu.edu!howland.reston.ans.net!cs.utexas.edu!not-for-mail
From: mech@eff.org (Stanton McCandlish)
Newsgroups: alt.2600,alt.activism,alt.activism.d,alt.politics.datahighway,alt.politics.org.nsa,alt.privacy,alt.privacy.clipper,alt.security.pgp,alt.society.resistance,alt.wired,comp.org.cpsr.talk,comp.org.eff.news,comp.org.eff.talk,misc.legal,sci.crypt,talk.politics.crypto
Subject: White House retreats on Clipper
Date: 21 Jul 1994 13:04:03 -0500
Organization: UTexas Mail-to-News Gateway
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Yesterday, the Clinton Administration announced that it is taking several
large, quick steps back in its efforts to push EES or Clipper
encryption technology.  Vice-President Gore stated in a letter to
Rep. Maria Cantwell, whose encryption export legislation is today being
debated on the House floor, that EES is being limited to voice
communications only.

The EES (Escrowed Encryption Standard using the Skipjack algorithm, and
including the Clipper and Capstone microchips) is a Federal Information
Processing Standard (FIPS) designed by the National Security Agency, and
approved, despite a stunningly high percentage anti-EES public comments on
the proposal) by the National Institute of Standards and Technology.  Since
the very day of the announcement of Clipper in 1993, public outcry against
the key "escrow" system has been strong, unwavering and growing rapidly.

What's changed?  The most immediate alteration in the White House's
previously hardline path is an expressed willingness to abandon the EES
for computer applications (the Capstone chip and Tessera card), and push
for its deployment only in telephone technology (Clipper).  The most
immediate effect this will have is a reduction in the threat to the
encryption software market that Skipjack/EES plans posed.  

Additionally, Gore's letter indicates that deployment for even the telephone
application of Clipper has been put off for months of studies, perhaps
partly in response to a draft bill from Sens. Patrick Leahy and Ernest
Hollings that would block appropriation for EES development until many
detailed conditions had been met.

And according to observers such as Brock Meeks (Cyberwire Dispatch) and
Mark Voorhees (Voorhees Reports/Information Law Alert), even Clipper is
headed for a fall, due to a variety of factors including failure in
attempts to get other countries to adopt the scheme, at least one state
bill banning use of EES for medical records, loss of NSA credibility after
a flaw in the "escrowed" key system was discovered by Dr. Matt Blaze of
Bell Labs, a patent infringement lawsuit threat (dealt with by buying off
the claimant), condemnation of the scheme by a former Canadian Defense
Minister, world wide opposition to Clipper and the presumptions behind it,
skeptical back-to-back House and Senate hearings on the details of the
Administration's plan, and pointed questions from lawmakers regarding
monopolism and accountability.

One of the most signigicant concessions in the letter is that upcoming
encryption standards will be "voluntary," unclassified, and exportable,
according to Gore, who also says there will be no moves to tighten export
controls.

Though Gore hints at private, rather than governmental, key "escrow," the
Administration does still maintain that key "escrow" is an important part of
its future cryptography policy.

EFF would like to extend thanks to all who've participated in our online
campaigns to sink Clipper.  This retreat on the part of the Executive
Branch is due not just to discussions with Congresspersons, or letters
from industry leaders, but in large measure to the overwhelming response from
users of computer-mediated communication - members of virtual communities
who stand a lot to gain or lose by the outcome of the interrelated
cryptography debates.  Your participation and activism has played a key
role, if not the key role, in the outcome thus far, and will be vitally
important to the end game!


Below is the public letter sent from VP Gore to Rep. Cantwell.

******

July 20, 1994

The Honorable Maria Cantwell
House of Representatives
Washington, D.C.,  20515

Dear Representative Cantwell:

        I write to express my sincere appreciation for your efforts to move
the national debate forward on the issue of information security and export
controls.  I share your strong conviction for the need to develop a
comprehensive policy regarding encryption, incorporating an export policy
that does not disadvantage American software companies in world markets
while preserving our law enforcement and national security goals.

        As you know, the Administration disagrees with you on the extent to
which existing controls are harming U.S. industry in the short run and the
extent to which their immediate relaxation would affect national security. 
For that reason we have supported a five-month Presidential study.  In
conducting this study, I want to assure you that the Administration will
use the best available resources of the federal government.  This will
include the active participation of the National Economic Council and the
Department of Commerce.  In addition, consistent with the Senate-passed
language, the first study will be completed within 150 days of passage of
the Export Administration Act reauthorization bill, with the second study
to be completed within one year after the completion of the first.  I want
to personally assure you that we will reassess our existing export controls
based on the results of these studies.  Moreover, all programs with
encryption that can be exported today will continue to be exportable.

        On the other hand, we agree that we need to take action this year
to assure that over time American companies are able to include information
security features in their programs in order to maintain their admirable
international competitiveness.  We can achieve this by entering into an new
phase of cooperation among government, industry representatives and privacy
advocates with a goal of trying to develop a key escrow encryption system
that will provide strong encryption, be acceptable to computer users
worldwide, and address our national needs as well.

        Key escrow encryption offers a very effective way to accomplish our
national goals,  That is why the Administration adopted key escrow
encryption in the "Clipper Chip" to provide very secure encryption for
telephone communications while preserving the ability for law enforcement
and national security.  But the Clipper Chip is an approved federal
standard for telephone communications and not for computer networks and
video networks.  For that reason, we are working with industry to
investigate other technologies for those applications.

        The Administration understands the concerns that industry has
regarding the Clipper Chip.  We welcome the opportunity to work with
industry to design a more versatile, less expensive system.  Such a key
escrow system would be implementable in software, firmware, hardware, or
any combination thereof, would not rely upon a classified algorithm, would
be voluntary, and would be exportable.  While there are many severe
challenges to developing such a system, we are committed to a diligent
effort with industry and academia to create such a system.  We welcome your
offer to assist us in furthering this effort.

        We also want to assure users of key escrow encryption products that
they will not be subject to unauthorized electronic surveillance.  As we
have done with the Clipper Chip, future key escrow systems must contain
safeguards to provide for key disclosure only under legal authorization and
should have audit procedures to ensure the integrity of the system.  Escrow
holders should be strictly liable for releasing keys without legal
authorization.

        We also recognize that a new key escrow encryption system must
permit the use of private-sector key escrow agents as one option.  It is
also possible that as key escrow encryption technology spreads, companies
may established layered escrowing services for their own products.  Having
a number of escrow agents would give individuals and businesses more
choices and flexibility in meeting their needs for secure communications.

        I assure you the President and I are acutely aware of the need to
balance economic an privacy needs with law enforcement and national
security.  This is not an easy task, but I think that our approach offers
the best opportunity to strike an appropriate balance.  I am looking
forward to working with you and others who share our interest in developing
a comprehensive national policy on encryption.  I am convinced that our
cooperative endeavors will open new creative solutions to this critical
problem.

Sincerely,

Al Gore

AG/gcs

******


-- 
Stanton McCandlish * mech@eff.org * Electronic Frontier Found. OnlineActivist
F O R   M O R E   I N F O,    E - M A I L    T O:     I N F O @ E F F . O R G 
O  P  E  N    P  L  A  T  F  O  R  M     O  N  L  I  N  E    R  I  G  H  T  S
V  I   R   T   U   A   L    C  U   L   T   U   R   E     C  R   Y   P   T   O

From comp.org.eff.news Mon Jul 25 21:26:37 1994
Xref: utcsri comp.org.eff.news:252 comp.org.eff.talk:36701
Path: utcsri!utnut!cs.utexas.edu!not-for-mail
From: mech@eff.org (Stanton McCandlish)
Newsgroups: comp.org.eff.news,comp.org.eff.talk
Subject: EFFector Online 07.12 - Clipper hammered, IITF RFC, OP Passes House
Date: 22 Jul 1994 18:18:37 -0500
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=========================================================================
EFFector Online Volume 07 No. 12      July 22, 1994       editors@eff.org
A Publication of the Electronic Frontier Foundation        ISSN 1062-9424

In This Issue:

EFF Analysis of Vice-President Gore's Letter on Cryptography Policy
EFF Reactions to Encryption Standards & Procedures Act (07/12/94 Draft)
NSA Letter to Sen. Hollings Re: Clipper Appropriation Draft Bill
Interoperability Demo - ISDN and Internet PPP
EFF Congratulates Rep Markey on Passage of Open Platform Bill HR3636
US ACM Calls for Clipper Withdrawal, Releases Crypto Policy Report
IITF Intellectual Property Draft Report - Request for Comments
New Faces at EFF - Robin Abner (Membership), Darby Costello (Finance)
What YOU Can Do

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


~Subject: EFF Analysis of Vice-President Gore's Letter on Cryptography Policy
----------------------------------------------------------------------------


July 22, 1994

Two days ago, Vice-President Al Gore signaled a major setback in the
Administration's Clipper program, and a willingness to engage in serious
negotiations leading to a comprehensive new policy on digital privacy and
security.  Many questions remain about the future, but one thing is
certain: Clipper is a dead end, and those of us who are concerned about
digital privacy have won a new opportunity to shape a better policy.

The Vice-President's letter to Rep. Maria Cantwell (D-WA) made it clear
that while Clipper might have a small place in the telephone security
market, it has no future in the digital world.  "...[T]he Clipper Chip is
an approved federal standard for telephone communications and not for
computer networks and video networks.  For that reason, we are working with
industry to investigate other technologies for those applications....  We
welcome the opportunity to work with industry to design a more versatile,
less expensive system.  Such a key escrow system would be implementable in
software, firmware, hardware, or any combination thereof, would not rely
upon a classified algorithm, would be voluntary, and would be exportable." 
Clipper does not meet most of these criteria, so, according to the Vice-
President, it is a dead end.

END OF THE LINE FOR CLIPPER -- LONG-RUN EFFORT TO DRIVE MARKET WILL FAIL

The premise of the Clipper program was that the government could drive the
market toward use of encryption products which incorporated
government-based key escrow agents.  A series of subtle and not so subtle
government actions would encourage private citizens to use this technology,
thus preserving law enforcement access to encrypted communications. 
Clipper was originally announced as the first element of a family of
hardware-based, government key escrow encryption devices that would meet
security needs for both voice and data communications on into the future. 
Clipper itself was purely a voice and low-speed data product, but other
members of the Skipjack family, including Tessera and Capstone, were to be
compatible with Clipper and were intended to lead the way from escrowed
encryption in voice to escrowed encryption for data.  Plans are already
announced, in fact, to use Tessera and Capstone in large government email
networks.  At the time, the hope was that government use of this technology
would push private sector users toward key escrow systems as well.

Now, the announcement that the Administration is re-thinking plans for data
encryption standards leaves Clipper a stranded technology.  No one wants to
buy, or worse yet, standardize on, technology which has no upgrade path. 
As a long-run effort to force the market toward government-escrowed
encryption standards, Clipper is a failure.

WE STILL MUST WORK FOR VOLUNTARY, OPEN, EXPORTABLE STANDARDS

The fight for privacy and security in digital media is by no means over. 
Though the Administration has backed away from Clipper, and expressed
willingness to talk about other solutions, we are pursuing serious progress
on the following issues:

        * Improved telephone encryption standards

For the reasons listed by the Vice-President, in addition to the inherent
problems of making copies of all your keys available, Clipper is a poor
choice for telephone encryption.  Industry should develop a standard for
truly secure and private telephones, make them available from multiple
manufacturers worldwide, and make them interoperate securely with audio
conferencing software on multimedia PC's.

        * Truly voluntary standards

Any cryptographic standard adopted by the government for private sector use
must be truly voluntary.  Voluntary means, to us, that there are statutory
guarantees that no citizen will be required or pressured into using the
standard for communications with the government, or with others.  No
government benefits, services, or programs should be conditioned on use of
a particular standard, especially if it involves government or private key
escrow.

        * Open standards

Standards chosen must be developed in an open, public process, free from
classified algorithms.  The worldwide independent technical community must
be able to create and evaluate draft standards, without restriction or
government interference, and without any limits on full participation by
the international cryptographic community.

        * No government escrow systems

Any civilian encryption standard which involves government getting copies
of all the keys poses grave threats to privacy and civil liberties, and is
not acceptable in a free society.

        * Liberalization of export controls

Lifting export controls on cryptography will make the benefits of strong
cryptography widely available to our own citizens. U.S. hardware, software
and consumer electronics manufacturers will build encryption into
affordable products once they are given access to a global marketplace. 
Today's widespread availability of "raw" cryptographic technology both
inside and outside the United States shows that the technology will always
be available to "bad guys".

The real question is whether our policies will allow encryption to be built
into the fabric of our national and international infrastructure, to
provide significantly increased individual privacy, improved financial
privacy, increased financial security, enhanced freedom of association,
increased individual control over identity, improved security and integrity
of documents, contracts, and licenses, reduced fraud and counterfeiting,
the creation of significant new markets for buying and selling of
intellectual property, and a lessened ability to detect and prosecute
victimless crimes.

These benefits are not free, however.  EFF does recognize that new
communications technologies pose real challenges to the work of law
enforcement.  Just as the automobile, the airplane, and even the telephone
created new opportunities for criminal activity, and new difficulties for
law enforcement, encryption technology will certainly require changes in
traditional investigative techniques.  We also recognize that encryption
will prevent many of the online crimes that will likely occur without it. 
We further believe that these technologies will create new investigative
tools for law enforcement, even as they obsolete old ones.  Entering this
new environment, private industry, law enforcement, and private citizens
must work together to balance the requirements of both liberty and
security.  

Finally, the export controls used today to attempt to control this
technology are probably not Constitutional under the First Amendment; if
the problems of uncontrolled export are too great, a means of control must
be found which does not restrict free expression.

CONGRESSIONAL LEADERSHIP TOWARD COMPREHENSIVE POLICY FRAMEWORK IS CRITICAL

The efforts of Congresswoman Maria Cantwell, Senator Patrick Leahy, and
other members of Congress, show that comprehensive policies on privacy,
security and competitiveness in digital communication technologies can only
be achieved with the active involvement of Congress.  Unilateral policy
efforts by the Executive branch, such as Clipper and misguided export
control policies, will not serve the broad interests of American citizens
and businesses.  So, we are pleased to see that the Vice-President has
pledged to work with the Congress and the private sector in shaping a
forward-looking policy.  We see the Vice-President's letter to
Congresswoman Cantwell as an important opening for dialogue on these
issues.

The principles of voluntariness and open standards announced in the Vice-
President's letter, as well as those mentioned here, must be incorporated
into legislation.  We believe that under the leadership of Senator Leahy,
Reps. Cantwell, Valentine, Brooks and others, this will be possible in the
next congress.  EFF is eager to work with the Congress, the Administration,
along with other private sector organizations to help formulate a new
policy.  EFF is also pleased to be part of the team of grass roots
activism, industry lobbying, and public interest advocacy which has yielded
real progress on these issues.

FOR MORE INFORMATION CONTACT:

Jerry Berman, Executive Director <jberman@eff.org>
Daniel J. Weitzner, Deputy Policy Director <djw@eff.org>

For the full text of the Gore/Cantwell letter, see:

ftp.eff.org, /pub/Alerts/gore_clipper_retreat_cantwell_072094.letter
gopher.eff.org, 1/Alerts, gore_clipper_retreat_cantwell_072094.letter
http://www.eff.org/pub/Alerts/gore_clipper_retreat_cantwell_072094.letter

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


~Subject: EFF Reactions to Encryption Standards & Procedures Act (Draft)
-----------------------------------------------------------------------

The staff of the House Science, Space, and Technology Committee has just
released a draft bill which would create a somewhat more public process for
establishment of Clipper-like escrowed encryption systems.  Entry of the
Congress into this policy debate is a welcome change after 18 months of
one-sided Executive Branch edicts.  However, considerable changes would be
required before the legislation would meet EFF's goals for a truly open
federal encryption policy which preserves the right of private individuals
to use any form of encryption, without restriction or penalty.  

Despite its promise of an open process, this bill is by no means a
repudiation of the Clipper program,  In fact, it enshrines in legislation
several key aspects of the Clipper policy.  However, inasmuch as the bill
seeks to establish NIST authority to develop escrow encryption systems, it
raises real questions about whether NIST or other agencies have any
authority now to spend federal funds on escrow encryption systems.


Overview of the bill:

The bill directs the Department of Commerce, through the National Institute
of Standards and Technology, to issue escrowed encryption standards.  The
standards issued would be subject to public comment and afford the
opportunity for judicial review under the terms of the Administrative
Procedures Act.  Similar procedures created for the designation of
government key escrow agents.

Several aspects of the Clinton Administration's approach to cryptography
policy are accepted by this bill:

1.      Absolute preservation of law enforcement and national security access

By this bill, any encryption standards adopted must "preserve the
functional ability of the government to interpret, in a timely manner,
electronic information that has been obtained pursuant to an electronic
surveillance permitted by law."  Sec 31(b)(2)(E).

2.      Weak privacy protection

The bill specifies that standards adopted should advance the development of
the NII, but offers only qualified support for privacy.  Standards should
are only required to go so far as to not "diminish existing privacy
rights...." Sec 31(b)(2)(D).

3.      Increased role for National Security Agency in civilian privacy and
security matters

The bill establishes a permanent role for the National Security Agency in
the creation of privacy and security standards for use by the private
sector.  Currently, under the Computer Security Act, NIST is encouraged to
consult with the NSA on matters of federal systems security and to draw
"computer system technical security guidelines developed by the National
Security Agency to the extent that the National Bureau of Standards
determines that such guidelines are consistent with the requirements for
protecting sensitive information in Federal computer systems."  This would
explicitly extend the NSA role from federal systems to systems intended for
public, civilian use.  As such, this is a major change in the Computer
Security Act.


Issues to be addressed in draft:

To create a truly open policy process, to protect privacy, and to ensure
the development of the best privacy-protecting technology possible, the
bill should be augmented with the following provisions:

1.      Voluntary standards

Any legislation on encryption standards must guarantee that no one will be
required to use such standards, nor will use of other encryption standards
be curtailed by law.  Furthermore, federal encryption policy should
guarantee that access to government programs, opportunities, or even the
ability to communicate with the government, should never be conditioned on
the use of any escrowed encryption standard.  From the first announcement
of the Clipper program, the Clinton Administration has assured the public
that escrowed encryption would remain voluntary.  This promise must be
included in legislation.

2.      Open design process

The draft bill does call for an open process for formation of encryption
standards.  Legislation should make explicit that an open process means
that no classified algorithms or technologies may be included.  Though
there was public comment on the Escrowed Encryption FIPS (the Clipper
Federal Information Processing Standard), public process in that case was
meaningless because the core technology remained behind a veil of secrecy.

3.      Remedies for negligence or abuse by escrow agents

As drafted, the proposal drastically limits the liability of federal escrow
agents for all but "willful" abuse by federal employees.  The escrow
agents must also be responsible for unauthorized release of keys because of
the actions of private individuals or because of negligent practices by
government agents.

4.      Exploration of voluntary, private sector escrow agents

Finally, if the government is going to adopt a government-based escrow
system, it should also be required to explore the possibility of private
party escrow systems based on open standards.


The full text of the draft bill is available from EFF's archives:

ftp.eff.org, /pub/EFF/Policy/Crypto/encryp_stds_procedures_94_bill.draft
gopher.eff.org, 1/EFF/Policy/Crypto/encryp_stds_procedures_94_bill.draft
http://www.eff.org/pub/EFF/Policy/Crypto/encryp_stds_procedures_94_bill.draft

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


~Subject: NSA Letter to Sen. Hollings Re: Clipper Appropriations Draft Bill
--------------------------------------------------------------------------

NATIONAL SECURITY AGENCY
CENTRAL SECURITY SERVICE
Fort George G. Meade, Maryland 20755

8 July 1994


Honorable Ernest P. Hollings
Chairman, Subcommittee on Commerce,
        Justice, State and Judiciary
Committee on Appropriations
United States Senate
Washington, DC  20510-6027

Dear Senator Hollings:

        We recently received a copy of a draft amendment that Senator Leahy
proposed to you that would condition expenditure of appropriated funds for
key escrow encryption (including the CLIPPER Chip) on satisfaction of
several requirements.  This language will have a major impact on the
Administration's overall key escrow strategy.

        We are very concerned about several aspects of the proposal.  Most
importantly, this language would cause significant delays (perhaps two
years or more) in the introduction and use of escrowed key encryption
products.  With such a delay, alternative, non-escrow cryptographic
products likely would become the norm in the United States and perhaps
abroad as well.  Widespread use of non-escrowed encryption could
irretrievably damage our ability to encourage the use of key escrow
encryption, putting at risk law enforcement effectiveness and critical
foreign intelligence activities.

        Another very significant concern is the impact of delays on major
Defense Department programs to secure its information systems that process
information regarding funds transfers, personnel data, medical files,
logistics support, and much more.  Since most of that information today is
processed, transferred, and stored on unclassified and unprotected
computing and telecommunications systems, it is extremely vulnerable.

        The threat to these systems is real.  Already, some of our systems
have been penetrated.  While we do not know who penetrated the systems, we
believe potential threats include foreign intelligence activities,
criminals, terrorists, and hackers.  In addition to potential threats from
external entities, network/computer attacks could also be initiated by
"insiders".  Network/computer protection within DoD is a fundamental
military readiness issue and the need for security products is immediate.

        The DoD is implementing a major program to help protect
unclassified but sensitive information in the Defense Messaging System
(DMS) through the use of key escrow technology.  Programming has already
begun on the first set of over 22,000 protection devices for this
application.  Key escrow products will provide privacy, authentication, and
data integrity solutions for critical information system [sic].  At the
same time, escrowing of keys will preserve a mechanism for law enforcement
organizations to access these systems when lawfully authorized, e.g., in
connection with investigations of possible fraud.  Delays in the process
could have sever, negative consequences for DMS.

        In summary, key escrow encryption technology is vital to the
Defense Department's operational readiness and its ability to conduct
day-to-day activities, and we cannot afford to delay implementation of
these critical security products.

        I recognize that you may have other questions and we are prepared
to meet with you at your convenience on this matter.  I have sent a similar
letter to Senator Domenici.

/s/  J.M. McConnell
Vice Admiral, U.S. Navy
Director, NSA

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


~Subject: Interoperability Demo - ISDN and Internet PPP
------------------------------------------------------

                    PRESS RELEASE
           ISDN PPP INTEROPERABILITY DEMO

GAITHERSBURG, MD, JUNE 24, 1994 -- Today at the NIUF, seven
ISDN equipment vendors demonstrated interoperable local and wide area
network connectivity using Point-to-Point Protocol (PPP) over ISDN.

This crucial step opens the way to grand-scale interoperability of ISDN
LAN connection equipment.  "National ISDN 1 and 2 worked on
standardized connectivity at the circuit level, but that wasn't enough.
Users need applications to launch connections, and remote LAN access
applications are standardizing around PPP.  This interoperability
demonstration puts these vendors ahead of other ISDN vendors, who
better get with it or get left out" (according to Jay Batson, Senior Analyst
with Network Strategy Service at Forrester Research).

Seven leading US, Canadian and European vendors demonstrated
interoperable ISDN remote access to LANs:

AccessWorks Communications Inc.
Cisco Systems, Inc.
DigiBoard, Inc.
Gandalf Technologies, Inc.
IBM Corp.
netCS Informationstechnik GmbH
Network Express

Vendors and end-users accessed Internet, read their e-mail, and sent files
back home as part of the demonstration.

"For the first time, telecommuters and branch office users can choose the
equipment that they prefer.  Everyone can get their equipment from
different vendors, but it all works together", said Jake Jacobson, Manager
of Advanced Communication Laboratories at JPL.

Using Basic Rate ISDN lines and LAN attachments provided by the US
National Institute for Standards and Technology (NIST), vendors
interconnected their devices and attached to local and remote LANs. As
part of the demonstration, vendors and end users accessed Internet, read
their e-mail, and sent files back home. End users and vendors alike agreed
that this will greatly promote rapid expansion of telecommuting, remote
Internet access, branch office connectivity, and other useful applications.

"The European ISDN Users Forum has also sanctioned PPP as the official
interoperability standard" said Rick Kuhlbars of netCS, Berlin, Germany

PPP is a set of protocols recommended by the Internet Engineering Task
Force (IETF) that allows LAN connection equipment to negotiate which
features and protocols will be supported by both ends of a connection.
PPP is rapidly becoming a standard for LAN connections since it allows
dissimilar products to quickly negotiate which features will be selected
for a particular connection.

Some reactions:

"Global trade requirements and business relationships compel us to
interoperate using these kinds of standards based procedures." - Stan
Kluz, Lawrence Livermore National Laboratory.

"This allows us to have students, faculty and staff select a wider array of
equipment and maintain interoperability with both Ameritech's switches
as well as the University's emerging ISDN dial in pools." - Dory Leifer,
University of Michigan.

"For the first time, users now have ISDN networking plug and play.
Vendors' network products which support these specifications assure that
they can access networks without concern as to what ISDN networking
equipment is in use on the network end." - Jeff Fritz, West Virginia
University, Chairman of the Enterprise Network Data Interconnectivity
Family (ENDIF), a working group of NIUF.

NIUF - the North American ISDN User's Forum is an association of
ISDN vendors, users, and service providers working together to promote
and improve the use of ISDN in North America.

Contacts for additional information:

Reggie Best, AccessWorks Communications Inc., (800) 248-8204,
rbest@accessworks.com.

Kevin Dickson, Cisco Systems, (415) 326-1941, kdickson@cisco.com.

Bob Downs, ENDIF liaison to IETF, Combinet, (408) 522-9020,
bdowns@combinet.com.

Jeff Fritz, ENDIF Chairman, West Virginia Univ., (304) 293-2060,
jfritz@wvnvm.wvnet.edu.

Douglas Frosst, Gandalf, Ontario, Canada, (613) 723-6500,
dfrosst@gandalf.ca.

Rick Kuhlbars, netCS, Berlin, Germany, 49.30/856 999-0,
rick@netcs.com.

Randy Sisto, Network Express, (313) 761-5005, rsisto@nei.com.

Julie Thomtez, DigiBoard, (612) 943-9020, juliet@digibd.com.

IBM, IBM ISDN Information, (919) 254-ISDN.


Respectfully Submitted,

Gerry Hopkins, ENDIF ViceChair acting for the Secretary

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


~Subject: EFF Congratulates Rep Markey on Passage of Open Platform Bill HR3636
-----------------------------------------------------------------------------

Earlier this month, the House of Representatives has passed both HR 3636
and 3626.  HR 3636, the Markey/Fields bill, is based on EFF's Open
Platform Proposal. HR 3626 passed on a vote of 423 to 5 (7 not voting). 
HR 3636 passed on a vote of 423 to 4 (8 not voting).  No amendments were
offered to either bill on the Floor.

After the votes, the bills were ordered to be combined into one bill, which
will be sent to the Senate.  The Senate is currently considering its own
similar legislation.

Electronic Frontier Foundation praises passage of House Telecommunications
Bill (HR 3636), in combination with the Antitrust Reform Act (HR 3626).

Key provisions of the bill will provide affordable access to multimedia
network services for the American public

******

        The Electronic Frontier Foundation (EFF) is pleased that the US
House of Representatives has passed major telecommunications legislation,
and commends all who have worked on the bill, especially Chairman Ed Markey
(D-MA).  Key provisions of the legislation ensure that Open Platform
service will be made widely available to all Americans, as the first step
in the development of an interactive, multimedia information
infrastructure.

        "Under the Open Platform services sections, the Federal
Communications Commission is required to issue regulations which make
switched, digital telecommunications service available and affordable for
the American public in the near term," explained Daniel J. Weitzner, Deputy
Policy Director of EFF.  Many of the multimedia services that will help
increase educational opportunity in our schools, provide access to library
resources, enable distance learning, and support telecommuting, can be
delivered over network services that are available today.  Yet,
telecommunications carriers have been slow in offering these services to
the public.  While an interactive broadband network should be our long term
policy goal, there is no reason to wait for broadband to reap the benefits
of digital technologies such as ISDN available in the network today.  

        "Guided by Congress, FCC action to cause deployment and tariffing
of Open Platform services will dramatically enhance American's access to
multimedia information sources, " said Weitzner.

        Mitchell Kapor, Chairman of the Board of the Foundation, praised
the efforts of Chairman Markey (D-MA) and said that an information
infrastructure "built based on Open Platform principles will be a vibrant
web of communications and information that enhance free speech and
democratic discourse.  Open architecture will also enable the NII to be the
site of innovation, economic growth, and job creation."

        HR 3636 recognizes that advanced telecommunications services are
becoming more important for individuals and public institutions and that
the definition of universal service should evolve over time to ensure
affordable access to such advanced services for all Americans.  The bill
provides that Open Platform service should be considered as the next step
in the evolution of universal service.  We can hope that in many
circumstances a more competitive market will provide high quality access at
low prices for many parts of the country.  A flexible definition of
universal service will help ensure that where the market fails to provide
minimum acceptable levels of service, careful tailored regulation will help
fill the void.

        For all of these reasons, the Open Platform sections have been
enthusiastically supported by a diverse coalition of public interest groups
and key players in the computer and communications industries.  "The job of
ensuring openness and access to the NII is only just beginning, but the
Open Platform services that made possible by the bill take a decisive first
step in the right direction," said Weitzner.

Contacts: 

Jerry Berman, Executive Director,  Internet:<jberman@eff.org>
Daniel J. Weitzner, Deputy Policy Director,  Internet:<djw@eff.org>
Telephone: v: 202-347-5400      f: 202-393-5509 

******

June 28, 1994

Hon. Edward Markey, Chairman
House Telecommunications & Finance Subcommittee
316 Ford House Office Building
Washington, DC  20150


Dear Chairman Markey,

        We want to congratulate you and Representative Fields on the
passage of HR 3636 and to thank you for efforts and foresight in support of
the Open Platform sections of the bill.  Built based on Open Platform
principles, the NII will be a vibrant web of communications and information
that enhance free speech and democratic discourse.  Such an open
environment will also enable the NII to be the site of innovation, economic
growth, and job creation.

        Under the Open Platform services sections, the Federal
Communications Commission is required to issue regulations which make
switched, digital telecommunications service available and affordable for
the American public in the near term.  As you know, many of the multimedia
services that will help increase educational opportunity in our schools,
provide access to library resources, enable distance learning, and support
telecommuting, can be delivered over network services that are available
today.  Yet, telecommunications carriers have been slow in offering these
services to the public.  While an interactive broadband network should be
our long term policy goal, there is no reason to wait for broadband to reap
the benefits of digital technologies such as ISDN available in the network
today.  Guided by Congress, FCC action to cause deployment and tariffing of
Open Platform services will dramatically enhance American's access to
multimedia information sources. Widely available Open Platform services
will also help jump start that multimedia information and communications
market place.

        HR 3636 recognizes that advanced telecommunications services are
becoming more important for individuals and public institutions and that
the definition of universal service should evolve over time to ensure
affordable access to such advanced services for all Americans.  The bill,
thus, provides that Open Platform service should be considered as the next
step in the evolution of universal service.  We can hope that in many
circumstances a more competitive market will provide high quality access at
low prices for many parts of the country.  Your work in creating a flexible
definition of universal service will help ensure that where the market
fails to provide minimum acceptable levels of service, careful tailored
regulation will help fill the void.

        For all of these reasons, the Open Platform sections have been
enthusiastically supported by a diverse coalition of public interest groups
and key players in the computer and communications industries.  The job of
ensuring openness and access to the NII is only just beginning, but the
Open Platform services that you have made possible take a decisive first
step in the right direction.  Again, we commend you and your colleagues for
supporting the Open Platform services sections and promise to continue to
work with you to ensure enactment of comprehensive telecommunications
legislation with strong Open Platform provisions this year.



Sincerely,

Jerry Berman
Executive Director

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


~Subject: US ACM Calls for Clipper Withdrawal, Releases Crypto Policy Report
---------------------------------------------------------------------------

~From: US ACM, DC Office <usacm_dc@acm.org>


                              U S A C M

 Association for Computing Machinery, U.S. Public Policy Committee

                          * PRESS  RELEASE *
Thursday, June 30, 1994

Contact:
Barbara Simons (408) 463-5661, simons@acm.org (e-mail)
Jim Horning  (415) 853-2216, horning@src.dec.com (e-mail)
Rob Kling (714) 856-5955, kling@ics.uci.edu (e-mail)


     COMPUTER POLICY COMMITTEE CALLS FOR WITHDRAWAL OF CLIPPER

            COMMUNICATIONS PRIVACY "TOO IMPORTANT" FOR
                     SECRET DECISION-MAKING

     WASHINGTON, DC   The public policy arm of the oldest and
largest international computing society today urged the White
House to withdraw the controversial "Clipper Chip" encryption
proposal.  Noting that the "security and privacy of electronic
communications are vital to the development of national and
international information infrastructures," the Association for
Computing Machinery's U.S. Public Policy Committee (USACM) added
its voice to the growing debate over encryption and privacy
policy.

     In a position statement released at a press conference on
Capitol Hill, the USACM said that "communications security is too
important to be left to secret processes and classified
algorithms."  The Clipper technology was developed by the National
Security Agency, which classified the cryptographic algorithm that
underlies the encryption device.  The USACM believes that Clipper
"will put U.S. manufacturers at a disadvantage in the global
market and will adversely affect technological development within
the United States."   The technology has been championed by the
Federal Bureau of Investigation and the NSA, which claim that
"non-escrowed" encryption technology threatens law enforcement and
national security.

     "As a body concerned with the development of government
technology policy, USACM is troubled by the process that gave rise
to the Clipper initiative," said Dr. Barbara Simons, a computer
scientist with IBM who chairs the USACM.  "It is vitally important
that privacy protections for our communications networks be
developed openly and with full public participation."

     The USACM position statement was issued after completion of a
comprehensive study of cryptography policy sponsored by the ACM
(see companion release).  The study, "Codes, Keys and Conflicts:
Issues in U.S Crypto Policy," was prepared by a panel of experts
representing various constituencies involved in the debate over
encryption.

     The ACM, founded in 1947, is a 85,000 member non-profit
educational and scientific society dedicated to the development
and use of information technology, and to addressing the impact of
that technology on the world's major social challenges.  USACM was
created by ACM to provide a means for presenting and discussing
technological issues to and with U.S. policymakers and the general
public.  For further information on USACM, please call (202) 298-0842.



       USACM Position on the Escrowed Encryption Standard


The ACM study "Codes, Keys and Conflicts: Issues in U.S Crypto
Policy" sets forth the complex technical and social issues
underlying the current debate over widespread use of encryption.
The importance of encryption, and the need for appropriate
policies, will increase as networked communication grows.
Security and privacy of electronic communications are vital to
the development of national and international information
infrastructures.

The Clipper Chip, or "Escrowed Encryption Standard" (EES)
Initiative, raises fundamental policy issues that must be fully
addressed and publicly debated.  After reviewing the ACM study,
which provides a balanced discussion of the issues, the U.S.
Public Policy Committee of ACM (USACM) makes the following
recommendations.

  1.  The USACM supports the development of public policies and
technical standards for communications security in open forums in
which all stakeholders -- government, industry, and the public --
participate.  Because we are moving rapidly to open networks, a
prerequisite for the success of those networks must be standards
for which there is widespread consensus, including international
acceptance.  The USACM believes that communications security is
too important to be left to secret processes and classified
algorithms.  We support the principles underlying the Computer
Security Act of 1987, in which Congress expressed its preference
for the development of open and unclassified security standards.

  2.  The USACM recommends that any encryption standard adopted by
the U.S. government not place U.S. manufacturers at a disadvantage
in the global market or adversely affect technological development
within the United States.  Few other nations are likely to adopt a
standard that includes a classified algorithm and keys escrowed
with the U.S. government.

  3.  The USACM supports changes in the process of developing
Federal Information Processing Standards (FIPS) employed by the
National Institute of Standards and Technology.  This process is
currently predicated on the use of such standards solely to
support Federal procurement.  Increasingly, the standards set
through the FIPS process directly affect non-federal organizations
and the public at large.  In the case of the EES, the vast
majority of comments solicited by NIST opposed the standard, but
were openly ignored.  The USACM recommends that the standards
process be placed under the Administrative Procedures Act so that
citizens may have the same opportunity to challenge government
actions in the area of information processing standards as they do
in other important aspects of Federal agency policy making.

  4.  The USACM urges the Administration at this point to withdraw
the Clipper Chip proposal and to begin an open and public review
of encryption policy.  The escrowed encryption initiative raises
vital issues of privacy, law enforcement, competitiveness and
scientific innovation that must be openly discussed.

  5.  The USACM reaffirms its support for privacy protection and
urges the administration to encourage the development of
technologies and institutional practices that will provide real
privacy for future users of the National Information
Infrastructure.

******

                Association for Computing Machinery

                           PRESS RELEASE

Thursday, June 30, 1994

Contact:

Joseph DeBlasi, ACM Executive Director (212) 869-7440
Dr. Stephen Kent, Panel Chair (617) 873-3988
Dr. Susan Landau, Panel Staff (413) 545-0263


    COMPUTING SOCIETY RELEASES REPORT ON ENCRYPTION POLICY

      "CLIPPER CHIP" CONTROVERSY EXPLORED BY EXPERT PANEL

     WASHINGTON, DC   A panel of experts convened by the nation's
foremost computing society today released a comprehensive report
on U.S. cryptography policy.  The report, "Codes, Keys and
Conflicts: Issues in U.S Crypto Policy," is the culmination of a
ten-month review conducted by the panel of representatives of the
computer industry and academia, government officials, and
attorneys.  The 50-page document explores the complex technical
and social issues underlying the current debate over the Clipper
Chip and the export control of information security technology.

     "With the development of the information superhighway,
cryptography has become a hotly debated policy issue," according
to Joseph DeBlasi, Executive Director of the Association for
Computing Machinery (ACM), which convened the expert panel.  "The
ACM believes that this report is a significant contribution to the
ongoing debate on the Clipper Chip and encryption policy.  It cuts
through the rhetoric and lays out the facts."

     Dr. Stephen Kent, Chief Scientist for Security Technology
with the firm of Bolt  Beranek and Newman, said that he was
pleased with the final report.  "It provides a very balanced
discussion of many of the issues that surround the debate on
crypto policy, and we hope that it will serve as a foundation for
further public debate on this topic." 

     The ACM report addresses the competing interests of the
various stakeholders  in  the  encryption debate  --  law
enforcement agencies,  the intelligence community, industry and
users of communications services.  It reviews the recent history
of U.S. cryptography policy and identifies key questions that
policymakers must resolve as they grapple with this controversial
issue.

     The ACM cryptography panel was chaired by Dr. Stephen Kent. 
Dr. Susan Landau, Research Associate Professor in Computer Science
at the University of Massachusetts, co-ordinated the work of the
panel and did most of the writing. Other panel members were Dr.
Clinton Brooks, Advisor to the Director, National Security Agency;
Scott Charney, Chief of the Computer Crime Unit, Criminal
Division, U.S. Department of Justice; Dr. Dorothy Denning,
Computer Science Chair, Georgetown University; Dr. Whitfield
Diffie, Distinguished Engineer, Sun Microsystems; Dr. Anthony
Lauck, Corporate Consulting Engineer, Digital Equipment
Corporation; Douglas Miller, Government Affairs Manager, Software
Publishers Association; Dr. Peter Neumann, Principal Scientist,
SRI International; and David Sobel, Legal Counsel, Electronic
Privacy Information Center.  Funding for the cryptography study
was provided in part by the National Science Foundation.

     The ACM, founded in 1947, is a 85,000 member non-profit
educational and scientific society dedicated to the development
and use of information technology, and to addressing the impact of
that technology on the world's major social challenges.  For
general information, contact ACM, 1515 Broadway, New York, NY 
10036. (212) 869-7440 (tel), (212) 869-0481 (fax).

     Information on accessing the report electronically will be
posted soon on Usenet.

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


~Subject: IITF Intellectual Property Draft Report - Request for Comments
-----------------------------------------------------------------------

The Information Infrastructure Task Force (IITF) working group on Intellectual
Property Rights has released their preliminary draft report for public
review and comment.  The paper, "Intellectual Property and the National
Information Infrastructure," is available from the Patent & Trademark
Office via anonymous FTP from ftp.uspto.gov in /pub/nii-ip or on the Web
at URL http://www.uspto.gov/  

Comments may be sent electronically to nii-ip@uspto.gov; the deadline for
comments is September 7, 1994.

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

~Subject: New Faces at EFF: Robin Abner (Membership), Darby Costello (Finance)
-----------------------------------------------------------------------------

Robin Abner <rabner@eff.org> - Director of Membership

Robin Abner is the Director of Membership for the Electronic Frontier
Foundation.  Robin works with EFF's Board and staff to plan membership
strategy and oversee marketing, administration and member services.  Prior
to joining EFF, Robin was Director of Membership and Marketing at
Non-Profit Management Associates, Inc. in Washington, DC, where she
developed and administered membership programs for several non-profit
organizations.  In addition, she served as Deputy Director of the Friends
of the National Library of Medicine.  Robin majored in Computer Science at
George Washington University and is currently studying Technology and
Management at the University of Maryland in College Park. Robin is a member
of the American Society of Association Executives (ASAE) and is co-chair of
ASAE's Roundtable Steering Committee.  In 1993, she was appointed to the
Membership Council of ASAE's Board and was awarded their Diversity Career
Development Scholarship. 

******

Darby Costello <gemini@eff.org> - Director of Finance & Administration

Darby Costello, EFF's new Director of Finance and Administration,
handles oversight of all financial activities/transactions, human resources
and office management.  Darby is a long-time Washingtonian, has worked in the
non-profit world  for over 10 years, and earned a BSBA in Accounting from
George Washington University.  

She is partial to cats and has two Burmese, Juan and Flor, who share their
Kalorama apartment with Darby.  She is devoted to the arts (opera in
particular) and actively involved with a newly-formed local opera company. 
Ms. Costello is a rabid, nearly indiscriminate, reader.  

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


~Subject: What YOU Can Do
------------------------

"The net poses a fundamental threat not only to the authority of the
government, but to all authority, because it permits people to organize,
think, and influence one another without any institutional supervision
whatsoever.  The government is responding to this threat with the Clipper
Chip."
  - John Seabrook, "My First Flame", _New_Yorker_ 06/06/94

Who will decide how much privacy is "enough"?

The Electronic Frontier Foundation believes that individuals should be
able to ensure the privacy of their personal communications through any
technological means they choose.  However, the government's current
restrictions on the export of encrytion software have stifled the
development and commercial availability of strong encryption in the U.S. 
Now, more than ever, EFF is working to make sure that you are the one that
makes these decisions for yourself.  Our members are making themselves heard
on the whole range of issues.  EFF collected over 5000 letters
of support for Rep. Maria Cantwell's bill to liberalize restrictions on
cryptography.  We also gathered over 1400 letters supporting Sen. Leahy's
open hearings on the proposed Clipper encryption scheme, which were held in
May 1994.  And EFF collected over 90% of the public comments that were
submitted to NIST regarding whether or not Clipper should be made a
federal standard.

You KNOW privacy is important. You have probably participated in our online
campaigns.  Have you become a member of EFF yet?  The best way to protect
your online rights is to be fully informed and to make your opinions heard.
EFF members are informed and are making a difference.  Join EFF today!

For EFF membership info, send queries to membership@eff.org, or send any
message to info@eff.org for basic EFF info, and a membership form.

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


Administrivia
=============

EFFector Online is published by:

The Electronic Frontier Foundation
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     Coordination, production and shipping by:
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Reproduction of this publication in electronic media is encouraged.  Signed
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To get the latest issue, send any message to er@eff.org, and it will be
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------------------------------


Internet Contact Addresses
--------------------------

Membership & donations: membership@eff.org
Legal services: ssteele@eff.org
Hardcopy publications: pubs@eff.org
Technical questions/problems, access to mailing lists: eff@eff.org
General EFF, legal, policy or online resources queries: ask@eff.org





End of EFFector Online v07 #12
******************************

$$

From comp.org.eff.news Mon Jul 25 21:26:37 1994
Path: utcsri!utnut!cs.utexas.edu!not-for-mail
From: mech@eff.org (Stanton McCandlish)
Newsgroups: comp.org.eff.news
Subject: EFF Analysis of Vice-President Gore's Letter on Cryptography Policy
Date: 22 Jul 1994 18:25:55 -0500
Organization: UTexas Mail-to-News Gateway
Lines: 174
Sender: nobody@cs.utexas.edu
Approved: mech@eff.org
Distribution: inet
Message-ID: <199407222325.TAA26059@eff.org>
NNTP-Posting-Host: news.cs.utexas.edu

EFF Analysis of Vice-President Gore's Letter on Cryptography Policy
-------------------------------------------------------------------


July 22, 1994

Two days ago, Vice-President Al Gore signaled a major setback in the
Administration's Clipper program, and a willingness to engage in serious
negotiations leading to a comprehensive new policy on digital privacy and
security.  Many questions remain about the future, but one thing is
certain: Clipper is a dead end, and those of us who are concerned about
digital privacy have won a new opportunity to shape a better policy.

The Vice-President's letter to Rep. Maria Cantwell (D-WA) made it clear
that while Clipper might have a small place in the telephone security
market, it has no future in the digital world.  "...[T]he Clipper Chip is
an approved federal standard for telephone communications and not for
computer networks and video networks.  For that reason, we are working with
industry to investigate other technologies for those applications....  We
welcome the opportunity to work with industry to design a more versatile,
less expensive system.  Such a key escrow system would be implementable in
software, firmware, hardware, or any combination thereof, would not rely
upon a classified algorithm, would be voluntary, and would be exportable." 
Clipper does not meet most of these criteria, so, according to the Vice-
President, it is a dead end.

END OF THE LINE FOR CLIPPER -- LONG-RUN EFFORT TO DRIVE MARKET WILL FAIL

The premise of the Clipper program was that the government could drive the
market toward use of encryption products which incorporated
government-based key escrow agents.  A series of subtle and not so subtle
government actions would encourage private citizens to use this technology,
thus preserving law enforcement access to encrypted communications. 
Clipper was originally announced as the first element of a family of
hardware-based, government key escrow encryption devices that would meet
security needs for both voice and data communications on into the future. 
Clipper itself was purely a voice and low-speed data product, but other
members of the Skipjack family, including Tessera and Capstone, were to be
compatible with Clipper and were intended to lead the way from escrowed
encryption in voice to escrowed encryption for data.  Plans are already
announced, in fact, to use Tessera and Capstone in large government email
networks.  At the time, the hope was that government use of this technology
would push private sector users toward key escrow systems as well.

Now, the announcement that the Administration is re-thinking plans for data
encryption standards leaves Clipper a stranded technology.  No one wants to
buy, or worse yet, standardize on, technology which has no upgrade path. 
As a long-run effort to force the market toward government-escrowed
encryption standards, Clipper is a failure.

WE STILL MUST WORK FOR VOLUNTARY, OPEN, EXPORTABLE STANDARDS

The fight for privacy and security in digital media is by no means over. 
Though the Administration has backed away from Clipper, and expressed
willingness to talk about other solutions, we are pursuing serious progress
on the following issues:

        * Improved telephone encryption standards

For the reasons listed by the Vice-President, in addition to the inherent
problems of making copies of all your keys available, Clipper is a poor
choice for telephone encryption.  Industry should develop a standard for
truly secure and private telephones, make them available from multiple
manufacturers worldwide, and make them interoperate securely with audio
conferencing software on multimedia PC's.

        * Truly voluntary standards

Any cryptographic standard adopted by the government for private sector use
must be truly voluntary.  Voluntary means, to us, that there are statutory
guarantees that no citizen will be required or pressured into using the
standard for communications with the government, or with others.  No
government benefits, services, or programs should be conditioned on use of
a particular standard, especially if it involves government or private key
escrow.

        * Open standards

Standards chosen must be developed in an open, public process, free from
classified algorithms.  The worldwide independent technical community must
be able to create and evaluate draft standards, without restriction or
government interference, and without any limits on full participation by
the international cryptographic community.

        * No government escrow systems

Any civilian encryption standard which involves government getting copies
of all the keys poses grave threats to privacy and civil liberties, and is
not acceptable in a free society.

        * Liberalization of export controls

Lifting export controls on cryptography will make the benefits of strong
cryptography widely available to our own citizens. U.S. hardware, software
and consumer electronics manufacturers will build encryption into
affordable products once they are given access to a global marketplace. 
Today's widespread availability of "raw" cryptographic technology both
inside and outside the United States shows that the technology will always
be available to "bad guys".

The real question is whether our policies will allow encryption to be built
into the fabric of our national and international infrastructure, to
provide significantly increased individual privacy, improved financial
privacy, increased financial security, enhanced freedom of association,
increased individual control over identity, improved security and integrity
of documents, contracts, and licenses, reduced fraud and counterfeiting,
the creation of significant new markets for buying and selling of
intellectual property, and a lessened ability to detect and prosecute
victimless crimes.

These benefits are not free, however.  EFF does recognize that new
communications technologies pose real challenges to the work of law
enforcement.  Just as the automobile, the airplane, and even the telephone
created new opportunities for criminal activity, and new difficulties for
law enforcement, encryption technology will certainly require changes in
traditional investigative techniques.  We also recognize that encryption
will prevent many of the online crimes that will likely occur without it. 
We further believe that these technologies will create new investigative
tools for law enforcement, even as they obsolete old ones.  Entering this
new environment, private industry, law enforcement, and private citizens
must work together to balance the requirements of both liberty and
security.  

Finally, the export controls used today to attempt to control this
technology are probably not Constitutional under the First Amendment; if
the problems of uncontrolled export are too great, a means of control must
be found which does not restrict free expression.

CONGRESSIONAL LEADERSHIP TOWARD COMPREHENSIVE POLICY FRAMEWORK IS CRITICAL

The efforts of Congresswoman Maria Cantwell, Senator Patrick Leahy, and
other members of Congress, show that comprehensive policies on privacy,
security and competitiveness in digital communication technologies can only
be achieved with the active involvement of Congress.  Unilateral policy
efforts by the Executive branch, such as Clipper and misguided export
control policies, will not serve the broad interests of American citizens
and businesses.  So, we are pleased to see that the Vice-President has
pledged to work with the Congress and the private sector in shaping a
forward-looking policy.  We see the Vice-President's letter to
Congresswoman Cantwell as an important opening for dialogue on these
issues.

The principles of voluntariness and open standards announced in the Vice-
President's letter, as well as those mentioned here, must be incorporated
into legislation.  We believe that under the leadership of Senator Leahy,
Reps. Cantwell, Valentine, Brooks and others, this will be possible in the
next congress.  EFF is eager to work with the Congress, the Administration,
along with other private sector organizations to help formulate a new
policy.  EFF is also pleased to be part of the team of grass roots
activism, industry lobbying, and public interest advocacy which has yielded
real progress on these issues.

FOR MORE INFORMATION CONTACT:

Jerry Berman, Executive Director <jberman@eff.org>
Daniel J. Weitzner, Deputy Policy Director <djw@eff.org>

For the full text of the Gore/Cantwell letter, see:

ftp.eff.org, /pub/Alerts/gore_clipper_retreat_cantwell_072094.letter
gopher.eff.org, 1/Alerts, gore_clipper_retreat_cantwell_072094.letter
http://www.eff.org/pub/Alerts/gore_clipper_retreat_cantwell_072094.letter














