The New York Times, June 10, 1996, p. A10. The New Encryption Universe [Editorial] The development of inexpensive computer programs and hardware that scramble telephone calls and computer messages to prevent eavesdropping is rapidly transforming the world of cryptography. Once largely the domain of governments and their intelligence services, encryption technology is now commonly used by corporations, banks, securities firms and individual computer operators. It is time to revise Government encryption policy to fit this new universe. A panel of the National Research Council makes a convincing case for doing just that after a careful review of encryption issues. The panel calls on the Government to abandon its effort to limit the development and availability of advanced encryption technology. The Clinton Administration has fought to preserve the Government's ability to access commercial and individual communications for law enforcement purposes by encouraging adoption of a single encryption standard that Government agencies could track and decipher if needed. The Research Council panel leans the other way, urging the commercial development of powerful encryption software even though it would make wiretapping more difficult. It also recommends that Washington ease restrictions on exports of encryption technology. The Government has long framed the debate over commercial encryption around its need to fight crime through wiretapping. The panel recognizes the usefulness of court-authorized wiretaps. But the panel suggests that a more important issue is the ability of the private sector to transfer confidential financial and other data over telecommunications pathways without interception. The Clinton Administration wants the private sector to adopt a type of encryption technology, known as key escrow, that would give the Government the ability to unscramble private phone or computer messages with court authorization and thereby preserve its wiretap capability. But the policy has so far failed several practical tests. The private sector has not voluntarily adopted a Government-controlled technology. In addition, encryption programs are already available that allow almost anyone with a computer and modem to work around Government-controlled technology. One sophisticated system would allow two strangers -- people who had swapped no private passwords -- to read each other's encoded messages. It seems likely that the Administration approach will not succeed. If so, the danger is that Washington might move to outlaw encryption technology it has not approved, a step that would grossly violate American civil liberties. The best way for the Government to protect its ability to eavesdrop on domestic and foreign criminals is to stay technically ahead of them. The panel recommends vigorous Government research programs to that end. The Research Council group would permit American computer companies to export more powerful encryption software than currently permitted. Foreigners already have access to encryption systems that are more powerful than those American companies are allowed to sell. The export restrictions do nothing to keep encryption software out of the hands of criminals and hostile governments, but needlessly drive American exports out of foreign markets. The panel's conclusions are especially credible because its membership was not tilted against the Government. The 16-member panel was led by Kenneth Dam, a former Deputy Secretary of State, and included Benjamin Civiletti, a former Attorney General, and Ann Caracristi, a former deputy director of the National Security Agency. The Clinton Administration should take notice. It needs a new encryption policy. --