THE VICE PRESIDENT
WASHINGTON

July 20, 1994

The Honorable Maria Cantwell House of Representatives Washington, DC
20515

"Dear Maria,

	"I write today to express my sincere appreciation of 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 ensure that over time American companies are able to include
information security features in their program in order to maintain
their international competitiveness.  We can achieve this by entering
into a 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
security needs as well.

	"Key escrow encryption offers a very effective way to
accomplish our mutual goals.  That is why the Administration adopted
the key escrow encryption standard 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
communication and not for computer networks and video networks.  For
that reason, we are working with industry to investigate other
technologies for these 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 scheme would be implementable in software, firmware or
hardware, or any combination thereof, would not rely on 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 academics to achieve
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 schemes 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 establish layered escrowing services for their own
products.  Having a number of escrow agents would give individuals and
businesses more choice 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 and privacy needs with law enforcement and
national security.  This is not an easy task, 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 problems."

Sincerely
  /s/ Al Gore