| Cryptome DVDs. Donate $25 for two DVDs of the Cryptome collection of 47,000 files from June 1996 to January 2009 (~6.9 GB). Click Paypal or mail check/MO made out to John Young, 251 West 89th Street, New York, NY 10024. The collection includes all files of cryptome.org, cryptome.info, jya.com, cartome.org, eyeball-series.org and iraq-kill-maim.org, and 23,100 (updated) pages of counter-intelligence dossiers declassified by the US Army Information and Security Command, dating from 1945 to 1985.The DVDs will be sent anywhere worldwide without extra cost.

22 July 1999

###

###

###

    Thanks to DM.

    Source:

    http://www.house.gov/hasc/billsandreports/106thcongress/hr850amendment.PDF
    Chairman Spence statement; HASC press

    release.

    [Header:] F:\SLS\AS\3H850.SUB   H.L.C.

    [Footer:] July 20, 1999 (9:58 a.m.)

    AMENDMENT IN THE NATURE OF A SUBSTITUTE

      TO H.R. 850

      OFFERED BY MR. WELDON OF PENNSYLVANIA,

      MR. SISISKY, AND MR. ANDREWS

    Strike all after the enacting clause and insert the following:
    SECTION 1. SHORT TITLE. 1
    This Act may be cited as the ‘‘Protection of National Security

    and Public Safety Act’’.
    SEC. 2. EXPORTS OF ENCRYPTION.
    (a) AUTHORITY TO CONTROL EXPORTS.—The President shall control the export

    of all dual-use encryption products.
    (b) AUTHORITY TO DENY EXPORT FOR NATIONAL SECURITY REASONS.—Notwithstanding

    any provision of this Act, the President may deny the export of any encryption

    product on the basis that its export is contrary to the national security

    interests of the United States.
    (c) DECISIONS NOT SUBJECT TO JUDICIAL REVIEW.—Any decision made by the

    President or his designee with respect to the export of encryption products

    under this Act shall not be subject to judicial review.
    SEC. 3. LICENSE EXCEPTION FOR CERTAIN ENCRYPTION PRODUCTS.
    Encryption products with encryption strength equal to or less than the level

    identified in section 5 shall be eligible for export under a license exception

    if—
    (1) such encryption product is submitted for a 1-time technical review;
      (2) such encryption product does not require licensing under otherwise applicable

      regulations;
      (3) such encryption product is not intended for a country, end user, or end

      use that is by regulation ineligible to receive such product, and the encryption

      product is otherwise qualified for export; and
      (4) the exporter, at the time of submission of the product for technical

      review, provides the names and addresses of its distribution chain partners.
    SEC. 4. ONE-TIME PRODUCT REVIEW.
    The President shall specify the information that must be submitted for the

    1-time review referred to in section 3.
    SEC. 5. ELIGIBILITY LEVELS.
    (a) INITIAL ELIGIBILITY LEVEL.—Not later than 180 days after the date

    of the enactment of this Act, the President shall notify the Congress of

    the maximum level of encryption strength that may be exported from the United

    States under license exception pursuant to section 3 without harm to the

    national security interests of the United States. Such level shall not become

    effective until 30 days after such notification.
    (b) PERIODIC REVIEW OF ELIGIBILITY LEVEL.—The President shall, at the

    end of each successive 180-day period after the notice provided to the Congress

    under sub-section (a), notify the Congress of the maximum level of encryption

    strength, which may not be lower than that in effect under this section during

    that 180-day period, that may be exported from the United States under a

    license exception pursuant to section 3 without harm to the national security

    interests of the United States. Such level shall not become effective until

    30 days after such notification.
    SEC. 6. ENCRYPTION LICENSES REQUIRED.
    (a) UNITED STATES PRODUCTS EXCEEDING CERTAIN BIT LENGTH.—An export license

    is required for the export of any encryption product designed or manufactured

    within the United States with an encryption strength exceeding the maximum

    level eligible for a license exception under section 3.
    (b) REQUIREMENTS FOR EXPORT LICENSE APPLICATION.—To apply for an export

    license, the applicant shall submit—
    (1) the product for technical review;
      (2) a certification identifying—
    (A) the intended end use of the product; and
        (B) the expected end user of the product;
      (3) in instances where the export is to a distribution chain partner—
    (A) proof that the distribution chain partner has contractually agreed to

        abide by all laws and regulations of the United States concerning the export

        and reexport of encryption products designed or manufactured within the United

        States; and
        (B) the name and address of the distribution chain partner; and
      (4) any other information required by the President.
    (c) POST-EXPORT REPORTING.—
    (1) UNAUTHORIZED USE.—Any exporter of encryption products that are designed

      or manufactured within the United States shall submit a report to the Secretary

      at any time the exporter has reason to believe that any such product exported

      pursuant to this section is being diverted to a use or user not approved

      at the time of export.
      (2) DISTRIBUTION CHAIN PARTNERS.—All exporters of encryption products

      that are designed and manufactured within the United States, and all distribution

      chain partners of such exporters, shall submit to the Secretary a report

      which shall specify—
    (A) the particular product sold;
        (B) the name and address of the end user of the product; and
        (C) the intended use of the product sold.
    SEC. 7. WAIVER AUTHORITY.
    (a) IN GENERAL.—The President may by Executive order waive the applicability

    of any provision of section 3 to a person or entity if the President determines

    that the waiver is necessary to protect the national security interests of

    the United States. The President shall, not later than 15 days after making

    such determination, submit a report to the committees referred to in subsection

    (c) that includes the factual basis upon which such determination was made.

    The report may be in classified format.
    (b) WAIVERS FOR CERTAIN CLASSES OF END USERS.—The President may by Executive

    order waive the licensing requirements of section 6 for specific classes

    of end users identified as being eligible for receipt of encryption commodities

    and software under license exception in section 740.17 of title 15, Code

    of Federal Regulations, as in effect on July 17, 1999. The President shall,

    not later than 15 days after issuing such a waiver, submit a report to the

    committees referred to in subsection (c) that includes the factual basis

    upon which such waiver was made. The report may be in classified format.
    (c) COMMITTEES.—The committees referred to in subsections (a) and (b)

    are the Committee on International Relations, the Committee on Armed Services,

    and the Permanent Select Committee on Intelligence of the House of

    Representatives, and the Committee on Foreign Relations, the Committee on

    Armed Services, and the Select Committee on Intelligence of the Senate.
    SEC. 8. ENCRYPTION INDUSTRY AND INFORMATION SECURITY BOARD.
    (a) ENCRYPTION INDUSTRY AND INFORMATION SECURITY BOARD ESTABLISHED.—There

    is hereby established an Encryption Industry and Information Security Board.

    The Board shall undertake an advisory role for the President on the matter

    of foreign availability of encryption products.
    (b) MEMBERSHIP.—
    (1) The Board shall be composed of 12 members, as follows:
    (A) The Secretary, or the Secretary’s designee.
        (B) The Attorney General, or his or her designee.
        (C) The Secretary of Defense, or his or her designee.
        (D) The Director of Central Intelligence, or his or her designee.
        (E) The Director of the Federal Bureau of Investigation, or his or her designee.
        (F) The Special Assistant to the President for National Security Affairs,

        or his or her designee, who shall chair the Board.
        (G) Six representatives from the private sector who have expertise in the

        development, operation, marketing, law, or public policy relating to information

        security or technology. Members under this sub-paragraph shall each serve

        for 5-year terms.
      (2) The six private sector representatives described in paragraph (1)(G)

      shall be appointed as follows:
    (A) Two by the Speaker of the House of Representatives.
        (B) One by the Minority Leader of the House of Representatives.
        (C) Two by the Majority Leader of the Senate.
        (D) One by the Minority Leader of the Senate.
    (c) MEETINGS.—The Board shall meet at such times and in such places

    as the Secretary may prescribe, but not less frequently than every four months.
    (d) FINDINGS AND RECOMMENDATIONS.—The chair of the Board shall convey

    the findings and recommendations of the Board to the President and to the

    Congress within 30 days after each meeting of the Board. The recommendations

    of the Board are not binding upon the President.
    (e) LIMITATION.—The Board shall have no authority to review any export

    determination made pursuant to this Act.
    (f) TERMINATION.—This section shall cease to be effective 10 years after

    the date of the enactment of this Act.
    SEC. 9. MARKET SHARE SURVEY.
    The Secretary shall, at least once every 6 months, conduct a market share

    survey of foreign markets for encryption products. The Secretary shall publish

    the results of the survey in the Federal Register. The publication shall

    include an assessment of the market share of each foreign encryption product

    in each market surveyed and a description of the general characteristics

    of each encryption product.
    SEC. 10. DEFINITIONS.
    In this Act:
    (1) ENCRYPTION.—The term ‘‘encryption’’ means the

      transformation or scrambling of data, for the purpose of protecting such

      data, from plaintext to an unreadable or incomprehensible format, regardless

      of the techniques used for such transformation or scrambling and regardless

      of the medium in which such data occur or can be found.
      (2) EXPORT AND EXPORTER.—The term ‘‘export’’ includes

      reexport, the term ‘‘exporter’’ includes

      ‘‘reexporter’’.
      (3) SECRETARY.—The term ‘‘Secretary’’ means the

      Secretary of Commerce.

    http://www.house.gov/hasc/openingstatementsandpressreleases/106thcongress/99-07-21spence.pdf

    PRESS RELEASE
    House Armed Services Committee
    2120 Rayburn House Office Building • Washington, DC 20515 Committee

    Webpage Address

    HTTP://www.house.gov/hasc
    Floyd D. Spence, Chairman
    FOR IMMEDIATE RELEASE
    July 21, 1999
    CONTACT: Maureen Cragin; Ryan Vaart

    (202) 225-2539
    STATEMENT OF CHAIRMAN FLOYD D. SPENCE

    MARK UP OF HR 850
    Today the committee meets to mark up H.R. 850, the Security and Freedom Through

    Encryption (SAFE) Act. This bill was referred to 5 committees, including

    the Armed Services Committee. With the Intelligence and International Relations

    committees having acted last week, our committee is the last to act before

    our referral period expires on Friday.
    For many members of the committee, today’s proceedings and debate will

    sound familiar. The policy and process issues we confront on this legislation

    today are nearly identical to those we faced two years ago in the 105th Congress,

    on a very similar bill.
    Like then, we mark up this bill today after four other committees have acted,

    all which have taken varying positions in support of or opposition to the

    introduced bill.
    Like then, we mark up this bill after having heard compelling testimony from

    the most senior law enforcement and national security officials of the United

    States that this legislation would seriously damage national security and

    place public safety at risk.
    Like then, we are being asked once again to render judgment on the difficult

    question of how best to balance the commercial interests of industry against

    the national security challenges facing the United States in a dangerous

    world.
    And like then, this committee will stand as one of the last hurdles that

    proponents of this legislation must clear before bringing legislation to

    the House floor that could dramatically alter how our nation conducts its

    law enforcement and national security functions.
    This legislation has two principal components. The first would effectively

    ban the government from mandating the use of a certain type of encryption

    technology, even though the Department of Defense and others have testified

    that such technology is essential to the safe and secure operation of their

    agencies.
    The second part would effectively outlaw the use of export controls by the

    government necessary to regulate the flow of the most sophisticated encryption

    technology around the world. Think about it for a moment. This bill proposes

    to have Congress prevent any President from acting on the sound and expert

    advice of the intelligence, defense and law enforcement communities to keep

    certain encryption products out of the hands of drug traffickers, terrorists,

    and potential adversaries of the United States.
    After the revelations contained in the Cox and Rumsfeld reports, it frankly

    amazes me, that we are (1) even having this debate and (2), that those of

    us arguing on behalf of law enforcement and national security are the underdogs.
    For these reasons, I have been working with Mr. Skelton, Mr. Weldon, Mr.

    Sisisky, Mr. Andrews, Mr. Abercrombie and others to find an alternative approach

    to H.R. 850. Our objective was to arrive at a mechanism that recognizes the

    fast pace of change in technology and the global marketplace, but errs on

    the side of ensuring that any President maintains sufficient authority to

    protect law enforcement and national security interests.
    I believe that the substitute amendment that will be considered in a few

    minutes does just that. It will make sure that the federal government is

    not arbitrarily handicapped in its ability to protect public safety and national

    security. But it also recognizes the need for flexibility in this fast changing

    technological sector by giving the President the tools necessary to strike

    a balanced national policy.
    I commend our colleagues for their interest and leadership in bringing forward

    their amendment and for their commitment to ensuring that we maintain a balanced

    but prudent security-based policy on encryption.
    I strongly support the Weldon-Sisisky-Andrews amendment and urge all of our

    colleagues to support it.
    Let me now recognize the committee’s Ranking Democrat, Mr. Skelton,

    for any opening remarks he may wish to make.

    Source:

    http://www.house.gov/hasc/openingstatementsandpressreleases/106thcongress/99-07-21HR850markup.pdf

    PRESS RELEASE
    House Armed Services Committee
    2120 Rayburn House Office Building • Washington, DC 20515 Committee

    Webpage Address

    HTTP://www.house.gov/hasc
    Floyd D. Spence, Chairman
    FOR IMMEDIATE RELEASE
    July 21, 1999
    CONTACT: Maureen Cragin; Ryan Vaart

    (202) 225-2539
    ARMED SERVICES COMMITTEE ADOPTS AMENDMENT TO ENCRYPTION BILL ENSURING

    THAT NATIONAL SECURITY, LAW ENFORCEMENT REMAIN PRIORITY
    Today, the House Armed Services Committee adopted an amended version of

    legislation governing the export of encryption technology.
    By a vote of 47 to 6, the committee passed a bipartisan substitute to H.R.

    850, the Security and Freedom Through Encryption Act, that ensures the President

    maintains sufficient authority to protect law enforcement and national security

    interests while, at the same time, recognizing the fast pace of change in

    technology and the global marketplace.
    “All members of Congress and particularly those of us on the Armed Services

    Committee, have a responsibility to protect the security of the American

    people and the nation’s interests,” said Committee Chairman Floyd

    Spence. “The committee’s action today is intended to ensure that

    the federal government is not arbitrarily handicapped in its ability to protect

    public safety and national security. But it also recognizes the need for

    flexibility in this fast changing technological sector by giving the President

    the tools necessary to strike a balanced national policy while also protecting

    national security.”
    Spence and a number of other committee members cited testimony by senior

    government officials at the Departments of Defense, Justice and Commerce

    before the Armed Services Committee in recent weeks warning that if H.R.

    850 was left unchanged, it would allow encryption exports that would pose

    a serious threat to U.S. military and intelligence assets and would cost

    lives on future battlefields.
    Deputy Secretary of Defense John Hamre testified that H.R. 850 would lead

    to “a tidal wave that would crush your national security and law enforcement

    agencies that are protecting this country.” With respect to the bill’s

    national security implications, Hamre also testified that the “unregulated

    release of the strongest encryption is going to do one thing: put more

    troops’ lives at risk. Period.” Barbara McNamara, Deputy Director

    of the National Security Agency (NSA), testified that H.R. 850 will harm

    national security by making our job of providing critical, actionable

    intelligence to our leaders and military commanders difficult, if not impossible,

    thus putting our Nation’s security at considerable risk.”
    Attorney General Janet Reno stated that “the immediate decontrol of

    all export controls through the SAFE Act is not in the national interest.”

    And FBI Director Louis Freeh asserted that H.R. 850 “will harm law

    enforcement, will harm public safety, will harm national security, and lives

    will be lost….”
    In recent Armed Services committee hearings, Spence also expressed concern

    that H.R. 850 would decontrol the export of encryption software and lift

    controls on the export of computers that contain encryption software, thereby

    undoing the tightened restrictions Congress mandated two years ago on the

    export of supercomputers to potentially dangerous end-users like China.
    “I continue to believe that the unrestricted export of sophisticated

    encryption products, which is exactly what H.R. 850 would allow, carries

    serious national security risks for our nation,” said Spence. “In

    the context of the recent Cox committee report and growing concerns over

    the transfer of sophisticated U.S. technologies to countries of proliferation

    concern, H.R. 850’s decontrol of encryption and some computer exports

    makes no sense to me.”
    The substitute amendment adopted by the committee was authored by Reps. Curt

    Weldon (R-PA), chairman of the committee’s Research and Development

    subcommittee, Norman Sisisky (D-VA), ranking member on committee’s

    Procurement subcommittee, and Rob Andrews (D-NJ). Provisions of the committee

    approved Weldon-Sisisky-Andrews amendment would:

    Reaffirm authority of the President to control export of encryption production

        products for national security purposes.
    Establish statutory framework for export control of high performance encryption

        products.
    Require the President to establish a performance threshold for encryption.

        Encryption products that fall below the threshold would be permitted for

        export without a license. Encryption products above the threshold would require

        an export license for export.
    Require a one-time technical review for all encryption products proposed

        for export.
    Allow the President to establish certain sectors that would be subject to

        license free treatment of encryption products above the threshold, consistent

        with current U.S. policy.
    Require the President to review the adequacy of the performance threshold

        every six months.
    Establish an advisory board to review and advise the President on the foreign

        availability of encryption products.

    HTML by JYA/Urban Deadline.