I think people are missing the point... even if we assume the absolute worst case, that the private key is broken and becomes publicly available, international Notes users are no worse off than before.
This sentiment is why this is such a clever move on the part of the government. There are a number of problems with the Lotus plan. First of all, 40 bits isn't secure. That's what international users have, not 64 bits, and it's just not good enough. International Notes customers know it, we know it, Lotus knows it, and the government knows it. Second of all, any restriction on algorithms and key lengths is unacceptable. People and businesses have the right to protect their privacy. American software companies have to be able to deliver privacy if they want to remain competitive in the global market. It's essential that the government acknowledge these facts. Finally, this agreement sets a very dangerous precdent. The government is holding keys and compelling people to "trust" them. This is real, live gak. You're right -- in a sense no one's any worse off than they would be with 40 bit keys. But in another sense, there's a slippery slope problem here. Gak is absolutely unacceptable in any way, shape, or form. It's completely beyond the scope of what the government ought to be doing. If we sit by idly while they set up the comparatively toothless gak, it will make things that much easier for them when more ambitious gaks come down the pike. We need to do whatever we can to convince international customers that Notes isn't secure. And we need to make Lotus understand why this deal isn't in anyone's interest.