12-24-96. Communications Daily: 

 New encryption export rules probably won't be issued until early 
 next week 

 New encryption export rules probably won't be issued until early 
 next week, just day or 2 before they go into effect on Jan. 1, 
 govt. officials said Mon. Administration is revising rules after 
 taking informal comments from industry.

 Greg Simon, chief domestic policy staffer for Vice President Gore, 
 said section of rules requiring detailed business plans from 
 encryption companies is likely to be changed, move that "has been 
 in the works for a long time." 

 Other industry observers said there's increased pressure
 for Administration to change its encryption strategy because
 export controls were ruled unconstitutional last week. Harris
 Miller, pres. of Information Technology Assn. of America
 (ITAA), wrote Dec. 22 to President Clinton asking for changes
 in draft rules Administration issued earlier this month, objecting
 also to business plan requirement. 

 Meanwhile, Organization for Economic Cooperation & Development 
 (OECD) released set of guidelines for encryption policy that 
 concluded development of encryption methods should be market-driven. 
 Group of ad hoc experts has met several times this year to create 
 international guidelines for encryption. 

 Draft -- which won't be released in full form until March -- says 
 countries may allow law enforcement officers to access encrypted 
 data (wiretapping) but recommendations don't "encourage" it, OECD 
 official said.  

 He said other principles in draft include that: 

   (1) Encryption should be trustworthy. 
   (2) User should have choice of methods. 
   (3) Standards should be developed nationally and internationally. 
   (4) Protection of privacy and password data should be assured. 
   (5) Liability should be stated clearly. 
   (6) International cooperation should be continued. 

 Draft is expected to become formal OECD guideline in spring, it 
 said. 

 Industry observers said U.S. govt. at first said it would work with 
 private industry on encryption rules acceptable to all, but then 
 tried through drafting sessions to increase emphasis on govt. 
 positions.

 [For the OECD draft, Euro crypto and commentary see:

   http://www.quintessenz.at/Netzteil/OECD/index.html
   http://www.ozemail.com.au/~firstpr/crypto/
   http://www.modeemi.cs.tut.fi/~avs/eu-crypto.html
   http://www.eff.org/~declan/global/japan/rotenberg.reply.102896

 Thanks to Robin Whittle for the URLs.]

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 12-26-96. Nikkei English News:

 OECD to back police authority to decode e-money transactions

 Paris -- The Organization for Economic Cooperation and Development 
 will not object to member nations giving their police the right to 
 decipher codes used in electronic money transactions. The 
 organization of industrial countries has mapped out an eight-point 
 guideline on standardizing coding technology, crucial to the safe 
 and widespread use of e-money. It has called on members to 
 cooperate in the process.

 The OECD also warned that e-money is open to crime risks.

 The guideline, to be announced by spring, also urges members to 
 adopt domestic laws supporting code standardization. Nevertheless, 
 heavy debate is expected over the question of decoding rights for 
 police, because of privacy issues.

 The U.S. has already decided to allow authorities to read e-money 
 codes from January, and is expected to call on Japan and other 
 countries to follow suit to help prevent international crimes.

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