[I've called the Globe to complain about their swallowing the government's story, hook, line, and sinker; I suggest others do likewise...] US reveals computer chip for scrambling telephones By John Mintz Washington Post WASHINGTON -- The White House yesterday announced its new plan to prevent criminals, terrorists, and industrial spies from decoding communications over telephones, fax machines, and computers while ensuring the government's ability to eavesdrop. The plan features a $1200 government-developed computer chip embedded in a scrambling device the size of a small notebook, which the government hopes will be adopted as the universal means of encryption. The Clinton administration said the technology will balance the interests of civil libertarians, corporations, and individuals on the one hand against law enforcement and intelligence agencies on the other. The official White House announcement yesterday was the endorsement of the Clipper Chip, developed by NSA, as the government standard for encryption devices. Industry and US officials said that means the Clipper Chip also will become widely accepted in corporate America, because companies and individuals desiring to do business with federal agencies that encode their information would have to use the government's standard. The success of the government's initiative depends on the willingness of companies to accept encryption that the government can crack. AT&T announced yesterday it would use the new chip in all its secure nongovernment telephones. The NSA has licensed two California firms to manufacture and market the Clipper Chip, officials said. The price is expected to drop to about $25 each, they said.