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30 April 1998

    Thanks to DN
    Date: Thu, 30 Apr 1998 05:12:26 -0400
    Subject: AP: House Intelligence Committee Bill

    Panel Reviews Espionage Protection
    Filed at 2:42 a.m. EDT
    By The Associated Press

    WASHINGTON (AP) -- The House Intelligence Committee wants to modernize
    eavesdropping programs, revitalize clandestine human intelligence and boost
    covert action capabilities.

    ``We see the need for concerted focus on signals intelligence, human
    intelligence, all-source analysis and our covert action capabilities,'' said
    Rep. Porter Goss, R-Fla., the committee chairman.

    The committee in a closed meeting Wednesday approved and sent to the full
    House the annual intelligence authorization bill, a classified measure that
    sets policy and spending priorities for the CIA and a host of other U.S.
    agencies that gather intelligence.

    The committee was particularly concerned about the explosion in
    telecommunications and computer technology and the new tools that allow
    adversaries to foil U.S. interception of communications and signals. This
    highly secretive area of intelligence involves efforts to tap into
    high-level government communications, encoded documents and technical
    emissions such as the telemetry signals put off by missiles and other weaponry.

    The legislation shifts some funding out of expensive satellite intelligence
    programs and into this growing technical area, according to an official
    familiar with it. In addition to code-breaking technology, the bill, which
    is classified, seeks to increase investment in the type of computer
    equipment that can sort through vast quantities of encoded messages and
    focus in on the important ones that U.S. intelligence wants to intercept and
    interpret.

    Additional money is also earmarked for human intelligence, which is largely
    the purview of the CIA's overseas stations in which agency employees manage
    a variety of human sources, some working for foreign governments, others
    perhaps placed in defense industry or other commercial posts.

    The CIA has been focusing its efforts on cracking into terrorist
    organizations, drug cartels and groups involved in weapons proliferation.
    But the committee found that this area of intelligence, run by the CIA's
    Directorate of Operations, has been withering in recent years.

    ``The funds to conduct espionage have been cut back tremendously,'' said the
    official familiar with the bill, who spoke only on condition of anonymity.
    ``We're in the business of trying to rebuild an espionage system.''

    The Directorate of Operations also manages CIA-run covert operations, which
    encompass a wide variety of political, diplomatic and even military programs
    done under cover and directed at foreign countries. These can include covert
    support for political opposition groups in places such as Iraq and arms for
    rebel forces fighting governments hostile to the United States. Some of the
    funds shifted by the committee from technical programs deemed lower priority
    go into the account supporting covert action.

    The bill also provides additional money for intelligence analysis,
    addressing a persistent problem at the CIA where intelligence collectors
    bring in a flood of information only to have it sit on shelves waiting for
    analysts to examine it.

    Rep. Norm Dicks, D-Wash., the committee's ranking Democrat, said the bill
    ``marginally exceeds the president's budget request'' but, overall, closely
    follows administration priorities.

    Some of the increases included by the committee go into areas that have been
    identified by CIA Director George Tenet as top agency priorities.

    The CIA had no official comment on the bill. But an intelligence official
    who spoke on condition of anonymity said the areas identified by the
    committee in its bill ``are vitally important and high on the director of
    central intelligence's agenda.''

    The total amount of spending for intelligence contained in the bill remains
    classified, but it is believed to be slightly above this year's spending
    level of $26.7 billion.

    The bill is expected to be considered on the House floor next week.

    Date: Wed, 29 Apr 1998 13:05:15 -0400
    To: cryptography@c2.net
    From: "Arnold G. Reinhold" <reinhold@world.std.com>
    Subject: Director of Central Intelligence on Trust

    The April 27 issue of Aviation Week reprints exerpts of an address by U.S.
    Director of Central Intelligence George J. Tenet  titled "Cyber War Threat
    Is Real and Growing" (<http://www.aviationweek.com/aviation/avi_edit.htm>
    should work until the next issue comes out.)[http://jya.com/cia-threat.htm]

    Tenet says the need now is for trust systems rather than security systems:

    "Much of the public discussion and rhetoric is about encryption-with little
    attention focused on what is needed to make its use trustworthy. The
    technology to bring good information security to networks is fairly well
    developed and understood. It is based on the use of public key encryption
    and digital signatures. The means to provide trust is less well understood
    and is called key management infrastructure.

    ... Efforts to provide key management infrastructure services for
    products with encryption are uncoordinated, immature and lagging the
    introduction of electronic commerce services. "

    He goes on to call for a renewed partnership with industry:

    "The need for cooperation between government and industry in building
    trustworthy key management infrastructure is paramount to meeting our
    common interests of networks that meet our business needs without
    introducing vulnerabilities in those systems. ... If we are going to
    lead the world in information technology, we must recreate the trust
    between government and industry that allowed us to lead for over 40
    years. We still have the power to lead by our example and the time to
    do what is right."

    The U.S. government's role in retarding the commercial development of
    trust and encryption systems by way of export controls is not mentioned.

    Arnold Reinhold

    Date: Wed, 29 Apr 1998 15:48:10 +0100
    From: Ian Brown <I.Brown@cs.ucl.ac.uk>
    To: ukcrypto@maillist.ox.ac.uk
    Subject: Times story

    Good feature in the Interface section of today's Times... A few
    excerpts: [ http://jya.com/uk-code.htm ]

    > The chances of governmental success are slim. Some would say they have
    > already failed because uncontrolled high-level cryptography is easily
    > available from the public domain. There is some evidence to show that
    > restricting the export of cryptographic software has slowed its commercial
    > use, but as the people who are using these packages are not talking about
    > it, it would be virtually impossible to make an informed comment. The
    > Government can control the legitimate and law-abiding companies who wish to
    > use cryptography to protect their assets and their customers' privacy, but
    > it will be impossible to control the criminals, who will simply do as they
    > please.

    > Governments worldwide are concerned that terrorist groups could use
    > encryption to defeat the efforts of law enforcement agencies. Certain
    > terrorist groups are, indeed, becoming increasingly proficient in the use
    > of computer technology; but it is hardly likely that an active terrorist
    > group would place its cryptographic keys in the hands of a government
    > escrow service.

    > Restrictions on the export of cryptographic software are also working
    > from a false premise. Given time, freely available information and a
    > reasonably skilled programmer, any terrorist organisation could develop its
    > own implementation of commonly used cryptographic algorithms without the
    > need to conform to government regulations.

    From: "Yaman Akdeniz" <lawya@lucs-01.novell.leeds.ac.uk>
    To: ukcrypto@maillist.ox.ac.uk
    Date: Thu, 30 Apr 1998 11:33:52 GMT0BST
    Subject: Guardian Online, Duncan Campbell Reports

    Guardian Online, 30 April, 1998

    "This week, the Government rushed out its long-awaited guidelines for
    privacy online. Duncan Campbell reports"

    The full article is in the Guardian's web site.
    [ http://jya.com/dc-code.htm ]

    Here are some interesting bits of Campbell's article. I have not
    posted the full article here fore copyright reasons.

    Yaman

    But plans to allow search warrants to be extended to the total
    contents of everyone's computer files and e-mail, however private,
    have raised worries.

    ..................

    "This would be a monumental advance on government rights to invade
    privacy," said leading civil rights lawyer Geoffrey Robertson QC.
    "It's like invading the mind." A "judicial warrant," he added, "can
    come from a lay justice or a circuit judge whom the police select.
    It's a classic case of Neanderthal thinking _ no safeguard at all."

    ...................

    Government critics say that this is a betrayal of pre-election
    undertakings that New Labour would not accept the US requirement "to
    be able to swoop down on any encrypted message at will and unscramble
    it". As Zimmermann put it, after reviewing the government statement:
    "In principle it's voluntary; but, de facto, it's compulsory.  This is
    exactly what so many of us in the US have worked very hard to stop."

    .......

    Critics such as Robertson remain unconvinced of the need for new laws.
    "Do they really think that major criminals go home and log their
    crimes on the Internet in a computer diary?"

    [Duncan Campbell is a freelance writer and broadcaster, and is not the
    Guardian correspondent of the same name] 30 April 1998

    ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
    Yaman Akdeniz <lawya@leeds.ac.uk>
    Cyber-Rights & Cyber-Liberties (UK) at:

    http://www.leeds.ac.uk/law/pgs/yaman/yaman.htm

    Read CR&CL (UK) Report, 'Who Watches the Watchmen'

    http://www.leeds.ac.uk/law/pgs/yaman/watchmen.htm
    ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~