In article <C5L15A.GF6@dove.nist.gov> clipper@csrc.ncsl.nist.gov (Clipper Chip Announcement) writes:   Here is an article I found today in comp.security.misc. I'll send my reply in a separate post to comp.off.eff.org so thayt you guys can get original text. Have fun! ;(  Oleg     Relay-Version: VMS News - V6.1B5 17/9/92 VAX/VMS V5.5-2; site nic.csu.net    Path: nic.csu.net!csus.edu!netcom.com!netcomsv!decwrl!uunet!dove!csrc.ncsl.nist.gov!clipper    Newsgroups: comp.security.misc    From: clipper@csrc.ncsl.nist.gov (Clipper Chip Announcement)    Date: Fri, 16 Apr 1993 15:17:33 GMT    Sender: news@dove.nist.gov    Distribution: na    Organization: National Institute of Standards & Technology    Lines: 280     Note:  This file will also be available via anonymous file    transfer from csrc.ncsl.nist.gov in directory /pub/nistnews and    via the NIST Computer Security BBS at 301-948-5717. 	---------------------------------------------------  			    THE WHITE HOUSE  		     Office of the Press Secretary     _________________________________________________________________     For Immediate Release                           April 16, 1993   		   STATEMENT BY THE PRESS SECRETARY      The President today announced a new initiative that will bring    the Federal Government together with industry in a voluntary    program to improve the security and privacy of telephone    communications while meeting the legitimate needs of law    enforcement.     The initiative will involve the creation of new products to    accelerate the development and use of advanced and secure    telecommunications networks and wireless communications links.     For too long there has been little or no dialogue between our    private sector and the law enforcement community to resolve the    tension between economic vitality and the real challenges of    protecting Americans.  Rather than use technology to accommodate    the sometimes competing interests of economic growth, privacy and    law enforcement, previous policies have pitted government against    industry and the rights of privacy against law enforcement.     Sophisticated encryption technology has been used for years to    protect electronic funds transfer.  It is now being used to    protect electronic mail and computer files.  While encryption    technology can help Americans protect business secrets and the    unauthorized release of personal information, it also can be used    by terrorists, drug dealers, and other criminals.     A state-of-the-art microcircuit called the "Clipper Chip" has    been developed by government engineers.  The chip represents a    new approach to encryption technology.  It can be used in new,    relatively inexpensive encryption devices that can be attached to    an ordinary telephone.  It scrambles telephone communications    using an encryption algorithm that is more powerful than many in    commercial use today.     This new technology will help companies protect proprietary    information, protect the privacy of personal phone conversations    and prevent unauthorized release of data transmitted    electronically.  At the same time this technology preserves the    ability of federal, state and local law enforcement agencies to    intercept lawfully the phone conversations of criminals.      A "key-escrow" system will be established to ensure that the    "Clipper Chip" is used to protect the privacy of law-abiding    Americans.  Each device containing the chip will have two unique   				   2      "keys," numbers that will be needed by authorized government    agencies to decode messages encoded by the device.  When the    device is manufactured, the two keys will be deposited separately    in two "key-escrow" data bases that will be established by the    Attorney General.  Access to these keys will be limited to    government officials with legal authorization to conduct a    wiretap.     The "Clipper Chip" technology provides law enforcement with no    new authorities to access the content of the private    conversations of Americans.     To demonstrate the effectiveness of this new technology, the    Attorney General will soon purchase several thousand of the new    devices.  In addition, respected experts from outside the    government will be offered access to the confidential details of    the algorithm to assess its capabilities and publicly report    their findings.     The chip is an important step in addressing the problem of    encryption's dual-edge sword:  encryption helps to protect the    privacy of individuals and industry, but it also can shield    criminals and terrorists.  We need the "Clipper Chip" and other    approaches that can both provide law-abiding citizens with access    to the encryption they need and prevent criminals from using it    to hide their illegal activities.  In order to assess technology    trends and explore new approaches (like the key-escrow system),    the President has directed government agencies to develop a    comprehensive policy on encryption that accommodates:  	--   the privacy of our citizens, including the need to 	     employ voice or data encryption for business purposes;  	--   the ability of authorized officials to access telephone 	     calls and data, under proper court or other legal 	     order, when necessary to protect our citizens;  	--   the effective and timely use of the most modern 	     technology to build the National Information 	     Infrastructure needed to promote economic growth and 	     the competitiveness of American industry in the global 	     marketplace; and   	--   the need of U.S. companies to manufacture and export 	     high technology products.     The President has directed early and frequent consultations with    affected industries, the Congress and groups that advocate the    privacy rights of individuals as policy options are developed.    				   3     The Administration is committed to working with the private    sector to spur the development of a National Information    Infrastructure which will use new telecommunications and computer    technologies to give Americans unprecedented access to    information.  This infrastructure of high-speed networks    ("information superhighways") will transmit video, images, HDTV    programming, and huge data files as easily as today's telephone    system transmits voice.     Since encryption technology will play an increasingly important    role in that infrastructure, the Federal Government must act    quickly to develop consistent, comprehensive policies regarding    its use.  The Administration is committed to policies that    protect all Americans' right to privacy while also protecting    them from those who break the law.     Further information is provided in an accompanying fact sheet.     The provisions of the President's directive to acquire the new    encryption technology are also available.       For additional details, call Mat Heyman, National Institute of    Standards and Technology, (301) 975-2758.     ---------------------------------      QUESTIONS AND ANSWERS ABOUT THE CLINTON ADMINISTRATION'S    TELECOMMUNICATIONS INITIATIVE        Q:   Does this approach expand the authority of government 	agencies to listen in on phone conversations?     A:   No.  "Clipper Chip" technology provides law enforcement with 	no new authorities to access the content of the private 	conversations of Americans.     Q:   Suppose a law enforcement agency is conducting a wiretap on 	a drug smuggling ring and intercepts a conversation 	encrypted using the device.  What would they have to do to 	decipher the message?     A:   They would have to obtain legal authorization, normally a 	court order, to do the wiretap in the first place.  They 	would then present documentation of this authorization to 	the two entities responsible for safeguarding the keys and 	obtain the keys for the device being used by the drug 	smugglers.  The key is split into two parts, which are 	stored separately in order to ensure the security of the key 	escrow system.     Q:   Who will run the key-escrow data banks?     A:   The two key-escrow data banks will be run by two independent 	entities.  At this point, the Department of Justice and the 	Administration have yet to determine which agencies will 	oversee the key-escrow data banks.     Q:   How strong is the security in the device?  How can I be sure 	how strong the security is?       A:   This system is more secure than many other voice encryption 	systems readily available today.  While the algorithm will 	remain classified to protect the security of the key escrow 	system, we are willing to invite an independent panel of 	cryptography experts to evaluate the algorithm to assure all 	potential users that there are no unrecognized 	vulnerabilities.     Q:   Whose decision was it to propose this product?     A:   The National Security Council, the Justice Department, the 	Commerce Department, and other key agencies were involved in 	this decision.  This approach has been endorsed by the 	President, the Vice President, and appropriate Cabinet 	officials.     Q:   Who was consulted?  The Congress?  Industry?     A:   We have on-going discussions with Congress and industry on 	encryption issues, and expect those discussions to intensify 	as we carry out our review of encryption policy.  We have 	briefed members of Congress and industry leaders on the 	decisions related to this initiative.     Q:   Will the government provide the hardware to manufacturers?     A:   The government designed and developed the key access 	encryption microcircuits, but it is not providing the 	microcircuits to product manufacturers.  Product 	manufacturers can acquire the microcircuits from the chip 	manufacturer that produces them.     Q:   Who provides the "Clipper Chip"?     A:   Mykotronx programs it at their facility in Torrance, 	California, and will sell the chip to encryption device 	manufacturers.  The programming function could be licensed 	to other vendors in the future.     Q:   How do I buy one of these encryption devices?      A:   We expect several manufacturers to consider incorporating 	the "Clipper Chip" into their devices.     Q:   If the Administration were unable to find a technological 	solution like the one proposed, would the Administration be 	willing to use legal remedies to restrict access to more 	powerful encryption devices?     A:   This is a fundamental policy question which will be 	considered during the broad policy review.  The key escrow 	mechanism will provide Americans with an encryption product 	that is more secure, more convenient, and less expensive 	than others readily available today, but it is just one 	piece of what must be the comprehensive approach to 	encryption technology, which the Administration is 	developing.  	The Administration is not saying, "since encryption 	threatens the public safety and effective law enforcement, 	we will prohibit it outright" (as some countries have 	effectively done); nor is the U.S. saying that "every 	American, as a matter of right, is entitled to an 	unbreakable commercial encryption product."  There is a 	false "tension" created in the assessment that this issue is 	an "either-or" proposition.  Rather, both concerns can be, 	and in fact are, harmoniously balanced through a reasoned, 	balanced approach such as is proposed with the "Clipper 	Chip" and similar encryption techniques.     Q:   What does this decision indicate about how the Clinton 	Administration's policy toward encryption will differ from 	that of the Bush Administration?       A:   It indicates that we understand the importance of encryption 	technology in telecommunications and computing and are 	committed to working with industry and public-interest 	groups to find innovative ways to protect Americans' 	privacy, help businesses to compete, and ensure that law 	enforcement agencies have the tools they need to fight crime 	and terrorism.     Q:   Will the devices be exportable?  Will other devices that use 	the government hardware?