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  ###