Statement by Sen. John McCain (R-AZ).
Re: Administration encryption export policy announcement of Sept. 16, 1999.

Date: September 16, 1999.
Source:
Office of Sen. John McCain.

McCAIN: ADMINISTRATION TAKES SIGNIFICANT STEP IN UPDATING ENCRYPTION POLICY

WASHINGTON, D.C. -- Senator John McCain (R-AZ), Chairman of the Committee on Commerce, Science, and Transportation, today made the following statement on the Administration's plans to relax restrictions on exports of encryption software and hardware products:

"I applaud the Administration on its new proposal on the export of encryption technology that would improve our current policy.

"However, in the past, the Administration has not followed through with their promises to relax encryption export laws. Though the Administration's proposals represent a significant step forward, we must pass comprehensive legislation. I have been working with the Majority Leader to bring the PROTECT bill to the Senate floor for action. This legislation would give the force and certainty of law to mandate these proposals we all believe in."

Summary Attached


THE PROTECT ACT: A BILL TO PROMOTE ELECTRONIC COMMERCE THAT IS CONSISTENT WITH OUR NATIONAL SECURITY GOALS AND INTERESTS, S.798

Bill summary:

Directs the National Institute of Standards and Technology (NIST) to complete the establishment of an advanced encryption standard by January 1, 2002.

Allows for immediate exportation of encryption of key lengths of up to 64 bits.

Permits the exportation of non-defense encryption (above 64 bits) to responsible entities and governments of North Atlantic Treaty Organization (NATO), Association of Southeast Asian Nations (ASEAN), and Organization for Economic Cooperation and Development (OECD).

Allows for liberalization of export controls for encryption by creating an Encryption Export Advisory Board to review applications for exemption of encryption of over 64 bits and give recommendations to the Secretary of Commerce. The board would be made up of 12 members: the Under Secretary of Commerce for Export Administration, seven individuals appointed by the President (one from the National Security Agency, one from the Central Intelligence Agency, one from the Office of the President, and four representatives from the private sector who have experience in information technology), four representatives appointed by Congress (one by the Majority Leader of the Senate, one by the Minority Leader of the Senate, one by the Speaker of the House, and one by the Minority Leader of the House).

Gives the Secretary of Commerce 15 days to respond to recommendations. If he rejects a recommended exemption, his decision is subject to judicial review.

Reaffirms presidential authority to veto a recommended exemption for national security purposes, and to establish terrorist and embargo controls.

Authorizes increased funding to law enforcement and national security agencies to upgrade facilities and intelligence.

Gives the Secretary of Commerce the authority to prohibit the exportation of particular encryption products to an individual or organization in a foreign country identified by the Secretary.