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Re: Magaziner hints at easing of Crypto Export Regulations

daemon@ATHENA.MIT.EDU (Matt Blaze)
Wed Sep 16 16:56:53 1998

To: Russell Nelson <nelson@crynwr.com>
cc: cryptography@c2.net
In-reply-to: Your message of "16 Sep 1998 15:14:53 -0000."
             <19980916151453.29308.qmail@desk.crynwr.com> 
Date: Wed, 16 Sep 1998 15:29:05 -0400
From: Matt Blaze <mab@crypto.com>


>Jim Gillogly writes:
> > >... Ira Magaziner ...said a further loosening of export restriction
> > > could come within the next few weeks, allowing for freer export of
> > > 128-bit software. 
> > 
> > ... or some such incremental change.
>
>But Jim, compromise typically involves "you give a little, I'll give a
>little."  What have we given up?  I don't see anybody saying "Okay,
>we'll accept weak cryptography."  All the movement is on the
>government's part.  This is good.
>

To a first approximation, we don't *have* anything to give up (on the export
issue, at least).  You can't export strong crypto without breaking it
by installing uneconomical, insecure key escrow.  Period.

To a second approximation, even though we have nothing tangible to give up,
we've given up  quite a bit of valuable, if less tangible, power:
	- The existance of a key escrow "industry" gives token public
	  legitimacy to the notion that the government's key escrow
	  program is feasible or at least a viable policy avenue to
	  explore, even though most technically sophisticated
	  observers understand that this is nonsense.
	- By accepting the "cutouts" in the export law granted to financial
	  institutions and other critical multinational encryption users,
	  powerful allys who would naturally gravitate to our side of the
	  issue have been effectively silenced.
	- Even by entering into the debate over export and key escrow,
	  we've lost valuable energy that could have been put into deploying
	  crypto widely domestically.  Even though there are no domestic
	  crypto restrictions, there are virtually no mainstream domestic
	  crypto products on the market today actually protecting real
	  data.  (The percentage of encrypted Internet backbone traffic,
	  perhaps the most likely place we'd expect to see encryption,
	  given SSL products like netscape, is still virtually zero).
	  Every day we (the industry) engages in the export debate in order
	  to be able to ship one strong international product tomorrow
	  instead of producting a strong domestic version today is a day
	  that people in the US are denied the use of strong crypto.
	  In large part *because* of the crypto debate, almost no one is
	  is investing serious effort into domistic crypto, despite the
	  lack of *any* laws restricting it's use or sale.

I'd say we've "compromised" quite a bit.

-matt

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