Much of the sensitive information which the government holds and transmits over telephone lines is personal and requires strong protection. Tax records and census data are two such examples. We sought nothing less than excellent protection for the government's records. Next, as the Committee is most aware, we now find ourselves in a post-Cold War era in which economic competitiveness has become an increasingly vital component of national security. This can be seen in the efforts that foreign intelligence services are taking to assist foreign firms to compete in the global marketplace.
American firms require strong protection against such threats - both at home and abroad.
In addition, the increasingly digitalized nature of the global communications network is expected to significantly hamper the ability of law enforcement to carry out lawfully authorized wiretapping. Their problem has two dimensions. First, the design and complexity of the nation's telecommunications networks makes locating the single conversation which can be lawfully tapped very difficult. Second, the proliferation of encryption is expected to make law enforcement's tasks more difficult. If a telephone conversation is encrypted, resources must be expended for decryption, where feasible.