FWD: US liberalized crypto output somewhat

Donald E. Eastlake 3rd (dee3@torque.pothole.com)
Wed, 16 Sep 1998 14:59:20 -0400

(Here the the recently announced liberalization of crypto export. It
goes substantially further than I thought it would, permitting
streamlined export of unlimited strength crypto without key recocovery
to many countries for a variety of industries. -dee3)

Message-Id: <199809161626.MAA11202@dewdrop2.mindspring.com>
Date: Wed, 16 Sep 1998 12:20:00 -0400
From: John Young <jya@pipeline.com>
Subject: US Crypto Update Fact Sheet



Office of the Press Secretary

For Immediate Release
September 16, 1998


Administration Updates Encryption Policy

Exports of 56-bit DES and equivalent products (hardware and software)
will be streamlined (under license exception). Requirements for key
recovery plans are eliminated.

Exports of unlimited strength encryption products (with or without key
recovery) will be streamlined (under license exception) to certain
industries. The sectors are:

Subsidiaries of U.S. Firms, worldwide (except seven terrorist nations).

Insurance companies to the same 45 countries recently approved for
exports to banks and financial institution exports.

Health and medical organizations (including civilian government health
agencies) in the same 45 countries. Does not include
biochemical/pharmaceutical manufacturers.

On-line merchants for client-server applications, in the same 45
countries, with the purpose of securing electronic transactions between
merchants and their customers. Does not include manufacturers and
distributors of items controlled on the U.S. munitions list.

Key Recovery products will continue to be exportable under license
exception worldwide (except seven terrorist nations). Review of
foreign key recovery agents is eliminated.

Exports of "recoverable" products will be approved to most commercial
firms, and their wholly-owned subsidiaries, in a broad range of
countries under encryption licensing arrangements. This group of
countries covers most major commercial markets including Western
Europe, Japan, and Australia. The policy does not include service
providers and manufacturers and distributors of items controlled on
the U.S. munitions list.

Exports to end users or destinations outside this policy are possible
on a case-by-case basis.

Prior to export, products are subject to a one-time product technical

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