I received a fax of a letter from Representative Markey (Subcommittee on 
Telecommunications and Finance) to Ron Brown (Secretary of Commerce).  Since 
encryption and the Clipper chip are raised in this letter, I felt it would be
of interest.  I understand that on 29 April, Mr. Markey will be holding a
hearing on the questions raised in this letter.  There may also be a follow-on
hearing dedicated to the clipper chip, but that's not definite.

I've typed in the letter, which follows.  Any errors in transcription are 
mine...

---
Glenn Tenney
tenney@netcom.com            Amateur radio: AA6ER
Voice: (415) 574-3420        Fax: (415) 574-0546

------------------ letter of interest follows ----------------

April 19, 1993

The Honorable Ronald H. Brown
Secretary
Department of Commerce
14th and Pennsylvania Ave., NW
Washington, DC 20236

Dear Secretary Brown:

   As you know, I have long been interested in the privacy 
and security of telecommunications transmissions and data in 
a networked environment.  Recent reports concerning the 
Administration's endorsement of an electronic encryption 
standard, based upon "clipper chip" technology, have raised a 
number of related issues.  The international competitiveness 
of U.S. high tech manufacturers and the software industry is 
a key factor that the government should consider when 
addressing issues of encryption and data security.  As the 
nation moves forward in developing the national 
communications and information infrastructure, security of 
telecommunications transmissions and network data will be an 
increasingly important factor for protecting the privacy of 
users.

   The "hacker" community can compromise the integrity of 
telecommunications transmissions and databases linked by the 
network.  The people and businesses that use the nation's 
telecommunications network and the personal computers linked 
through it increasingly are demanding that information be 
protected against unauthorized access, alteration, and theft.

   I am concerned that the Administration's plan may mean 
that to remain competitive internationally, U.S. companies 
would be compelled to develop two products -- one for U.S. 
government customers, and another for private, commercial 
users who may want a higher encryption standard.  This may 
inadvertently increase costs to those U.S. companies hoping 
to serve both markets.  To assist the Subcommittee's analysis 
of this issue, please respond to the following questions:

1. Has the encryption algorithm or standard endorsed by the 
Administration been tested by any entity other than NSA, NIST 
or the vendor?  If so, please identify such entities and the 
nature of testing performed.  If not, please describe any 
plans to have the algorithm tested by outside experts and how 
such experts will be chosen.

2. Under the Administration's plan, what entities will be the 
holders of the "keys" to decrypt scrambled data?  What 
procedures or criteria will the Administration utilize to 
designate such key holders?

3. Does the encryption algorithm endorsed by the 
Administration contain a "trap door" or "back door," which 
could allow an agency or entity of the Federal government to 
crack the code?

4. It is clear that over time, changes in technologies used 
for communications will require new techniques and additional 
equipment.  How will encryption devices adapt to the rapid 
advancement of telecommunications technology?

5. What additional costs would the proposed encryption place 
on the Federal government?  What is the estimated cost to 
consumers and businesses which opt for the federal standard 
in their equipment?

6. What is the Commerce Department's assessment of the 
competitive impact of the Administration's endorsement of the 
"clipper chip" technology on U.S. exports of computer and 
telecommunications hardware and software products?

   I would appreciate your response by no later than close-
of-business, Wednesday, April 28, 1993.  If you have any 
questions, please have your staff contact Colin Crowell or 
Karen Colannino of the Subcommittee staff at (202) 226-2424.

Sincerely,

Edward J. Markey
Chairman

###