The Electronic Privacy Papers

The Electronic Privacy Papers Documents on the Battle for Privacy in the Age of Surveillance

Bruce Schneier David Banisar

WILEY COMPUTER PUBLISHING

JOHN WILEY & SONS, INC. New York • Chichester

. Weinheim

• Brisbane

• Singapore

• Toronto

Contents Foreword -Hon. John Anderson Preface

PART I

PRIVACY AND THE INFORMATION SNOOPERHIGHWAY

Chapter 1 Roadblocks on the Information Superhighway

3

The Information Snooperhighway

3

The Future of Privacy

3

PART II

WIRETAPPING

7

Chapter 2 Overview of Wiretapping

9

2.1 Report on Applications for Orders Authorizing or Approving the Interception of Wire, Oral, or Electronic Communications (Wiretap Report) —Statistics Division, Administrative Office of the U.S. Courts - May 1995

10

2.2 Can Wiretaps Remain Cost Effective? —Robin Hanson - December 1994, Communications of the ACM

19

2.3 Public Attitudes Toward Wiretapping, U.S. Department of Justice —Sourcebook of Criminal Justice Statistics, 1992, Table 2.52 - 1993

26

vi

Contents 2.4

Olmstead v. US, Dissent —Justice Louis Brandeis & Justice Holmes-June 4,1928

30

PART III LOBBYING FOR SURVEILLANCE: THE DIGITAL TELEPHONY PROPOSAL 39

Chapter 3 Government Pronouncements: The Digital Telephony Proposal

41

3.1 H. Rept. 103-827, Conference Report on H.R. 4922 (excerpts) —House Judiciary Committee - October 4,1994

43

3.2

78

Communications Assistance for Law Enforcement Act of 1994 —Public Law 103-414 - October 25,1994

3.3 Law Enforcement Requirements for the Surveillance of Electronic Communications —Federal Bureau of Investigation -June 1994 3.4

99

Speech before the American Law Institute (FBI Director Louis J. Freeh) —FBIDirectorWilliam Freeh-May 19,1994

Chapter 4

Behind the Curtain: Operation Root Canal

124

135

4.1 An Overview: Pre-WiretappingTelephones: Operation Root Canal —David Banisar - July 1996

138

4.2 Legislative Strategy for Digital Telephony —Brent Scowcroft -January 17,1992

160

4.3 Memorandum for the President —Brent Scowcroft - December 29,1991

163

4.4 Technological, Competitiveness, and Policy Concerns —National Telecommunications and Information Agency, U.S. Department of Commerce - February 6,1992

165

4.5 Teletype "DigitalTelephony"—Request for Briefing by the Special Agents in Charge —FBI DirectorWilliam Sessions - March 23,1992

166

4.6 Digital Telephony Industry Meeting Information Memorandum —FBIDirectorWilliam Sessions -April 10,1992

170

4.7 Justice Revised Proposed Draft on Justice Draft Bill Digital Telephony —Lonnie P.Taylor, General Services Administration - May 7,1992

172

Contents

vii

4.8 Department of Justice Responses to GSA Comments on Digital Telephony Legislation —U.S. Department ofJustice

175

4.9 Benefits and Costs of Legislation to Ensure the Government's Continued Capability to Investigate Crime with the Implementation of New Telecommunications Technologies —Federal Bureau of Investigation - 1992

179

4.10 Digital Telephony—Cost-Benefit Analysis —Betsy Anderson and Todd Buchholz, The White House - May 22,1992

202

4.11 Digital Telephony —David Mclntosh and James Gattuso, Office of the Vice President - May 22,1994

205

4.12 Department of Justice's Cost Analysis, Digital Telephony, D-867 —Ron Levy, Treasury - May 26,1992

207

4.13 Digital Telephony Information Memorandum (7/17/92) —FBI DirectorWilliam Sessions - May 26,1992

208

4.14 Airtel, Digital Telephony Legislative Initiative —FBI DirectorWilliam Sessions - July 17,1992

211

4.15 Survey of Problems Encountered in Conducting Authorized Electronic Surveillance as Reported by FBI Field Offices —FBI - June 30,1994

214

4.16 Letter to Peter Cassidy on NSA Role in Digital Telephony Proposal —Louise A. Baer, National Security Agency - November 30,1994

219

Chapter 5 Digital Telephony: The Public Response

221

5.1 Keep Snoops Off-Line —Editorial - USA Today - March 7,1994

223

5.2 A Closer Look on Wiretapping —Editorial - The NewYork Times -June 12,1994

225

5.3 Statement of AT&T Corporation Before the House Committee on Civil and Constitutional Rights and Senate Subcommittee on Technology and the Law —AT&TCorporation -August 11,1994

227

5.4 Testimony before the Subcommittee on Telecommunications and Finance Committee, U.S. House of Representatives —Roy Neel, U.S. Telephone Association - September 13,1994

233

viii

Contents 5.5 Letter to Congressman Jack Brooks —American Civil Liberties Union - September 22,1994

248

5.6 Letter to Senator Malcolm Wallop —Marc Rotenberg and David Sobel, Electronic Privacy Information Center - October 6,1994

252

PART IV

CRYPTOGRAPHY

255

Chapter 6 Cryptography: The Cure for the Common Bug 6.1

Cryptography Primer —Bruce Schneier - 1995

6.2 Who Owns Cryptography? —Carl M. Ellison - September 7,1994

257 258 264

6.3 E-Mail Security 275 —Bruce Schneier - Dr. Dobb's Information Highway Sourcebook - Winter 1994 6.4 A Cypherpunk's Manifesto —Eric Hughes - March 9,1993

PART V

THE BATTLE FOR CONTROL OF CRYPTOGRAPHY

Chapter 7 The Field of Battle: An Overview

285

289

291

Overview

291

Who Will Watch the Watchers?

292

The Early Days

293

The Data Encryption Standard

293

Classification and Secrecy: Executive Orders, Directives, and Policies

298

Congress Steps In: The Computer Security Act of 1987

301

The Digital Signal Standard

304

The Clipper Chip and Key Escrow

307

Clipper with a Happy Face: Commercial Key Escrow

319

Export Controls

325

Contents

ix

Conclusion

332

Notes

332

Chapter 8 Early Skirmishes

339

8.1 Executive Order —President Harry S. Truman - October 24,1952

341

8.2 The NSA Perspective on Telecommunications Protection in the Nongovernmental Sector —Admiral Bobby Inman - 1979

347

8.3 National Security Decision Directive (NSDD) 145 —National Security Council - September 17,1984

356

8.4 National Policy on Protection of Sensitive, but Unclassified Information in Federal Government Telecommunications and Automated Information Systems, National Telecommunications and Information Systems Security Policy (NTISSP 2) —Admiral John Poindexter - October 29,1986

367

8.5 House Committee on Science, Space and Technology Report on the Computer Security Act of 1987 (H.R. 145) —U.S. Congress -June 11,1987 (excerpts)

371

8.6 Memorandum (NSDD-145 and the Computer Security Act) —Dr. Clinton Brooks -April 28,1992

400

8.7 Memorandum of Understanding between the Director of the National Institute of Standards and Technology and the Director of the National Security Agency Concerning the Implementation of Public Law 100-235 —Raymond G. Kammer (NIST) and W. O. Studeman (NSA) - March 23,1989

401

8.8 S-266, Omnibus Crime Bill of 1991, § 2201, Cooperation of Telecommunications Providers with Law Enforcement —U.S. Congress - 1991

405

8.9

406

Congressional Record 137 Cong. Rec. SI 159-03 (Floor Statement on S-266) —Senator Joseph Biden - 1991

Chapter 9 The Clipper Chip Proposal 9.1 Statement by the Press Secretary —The White House -April 16,1993

407 409

x

Contents 9.2 Questions and Answers About the Clinton Administration's Telecommunications Initiative —TheWhite House -April 16,1993

414

9.3 Announcement of Clipper Adoption, Statement of the Press Secretary —TheWhite House - February 4,1994

417

9.4 Fact Sheet: Public Encryption Management —TheWhite House - February 4,1994

420

9.5 Working Group on Data Security —The White House - February 4,1994

423

9.6

425

Questions and Answers about the Clinton Administration's Encryption Policy —The White House - February 4,1994

9.7 Attorney General Makes Key Escrow Encryption Announcements —U.S. Department ofJustice - February 4,1994

428

9.8 Authorization Procedures for Release of Encryption Key Components in Conjunction with Intercepts Pursuant to Title III —U.S. Department of Justice - February 4,1994

430

9.9 Approval of Federal Information Processing Standards Publication 185, Escrowed Encryption Standard (EES) —U.S. Department of Commerce and National Institute of Standards and Technology - February 9,1994 (excerpts)

433

9.10

Clipper Chip Technology —National Institute of Standards and Technology -April 1993

454

9.11

Capstone Chip Technology —National Institute of Standards and Technology -April 1993

456

9.12 Testimony Before the House Science, Space and Technology Committee's Technology, Environment, and Aviation Subcommittee —Dr. Clinton Brooks, Assistant-Director, NSA - May 3,1994

457

Chapter 10 Unclassified: The Story behind Clipper

463

10.1 Presidential Decision Directive 5, Public Encryption Management —William J. Clinton, The White House -April 15,1993

466

10.2 Presidential Review Directive 27, Advanced Telecommunications and Encryption —William J. Clinton -April 16,1993

468

Contents

xi

10.3

TWG Issue Number 1 —National Institute of Standards and Technology May 5,1989

472

10.4

Memorandum for the Record re: First Meeting of the NIST/NSA Technical Working Group (TWG) —Lynn McNulty - May 8,1989

475

10.5 NIST Public Key Issues Outline —National Security Agency - May 1989

477

10.6

Status Report on TWG Issue Number 1 —Lynn McNulty, NIST, and Anonymous, NSA - May 19,1989

479

10.7

Technical Support to NIST —National Security Agency - October 19,1990

481

10.8 Memorandum for the Record, NSA-NIST Technical Working Group (TWG) Meeting 11 April 1991 —National Security Agency -April 24,1991

482

10.9

Letter to Attorney General Barr —Vice-Admiral J.M. McConnell, NSA - October 28,1992

484

10.10

Memorandum for Leon Fuerth re: Encryption —George J. Tenet, NSC -January 26,1993

485

10.11

Memorandum for Leon Fuerth re: Encryption —George J. Tenet, NSC - February 9,1993

486

10.12

Memorandum for Leon Fuerth and William Wise re: Help —George J. Tenet, NSC - March 5,1993

487

10.13 Memorandum re: Meeting on Encryption Policy —Vice President Albert Gore, Jr. - March 30,1993

488

10.14

491

Memorandum re: Package #20321 20322 —George J. Tenet, NSC -April 12,1993.

Chapter 11 Clipping the Clipper: Public Response to Desktop Surveillance

493

11.1

Sink the Clipper Chip —William Safire - The NewYork Times - February 14,1994

495

11.2

Key Escrow: Its Impact and Alternatives,Testimony Before the Senate Judiciary Subcommittee on Technology and Law —Dr. Whitfield Diffie, Sun Microsystems - May 3,1994

497

xii

Contents 11.3 Statement of the Computer and Business Equipment Manufacturers Association (CBEMA) —Computer and Business Equipment Manufacturers Association (CBEMA) - May 27,1993

506

11.4 Statement on Encryption Technology and Policy Before the Subcommittee on Telecommunications and Finance, U.S. House of Representatives —Marc Rotenberg, CPSR -June 9,1993

520

11.5 Statement Before NIST Computer System Security and Privacy Advisory Board Hearing —American Civil Liberties Union -May 28,1993

530

11.6 Proposed FIPS for Escrowed Encryption Standard (CPSR Comments to NIST) —CPSR Washington Office - September 27,1993

534

11.7 Letter to President Clinton on Clipper —Computer Professionals for Social Responsibility, Washington Office - December 8,1993

538

11.8 Experts Letter to President Clinton on Clipper —Various Authors -January 24,1994

541

11.9 Position Statement on Encryption Policy

543

—The Institute of Electrical and Electronics Engineers United States Activities Board-January 1994

11.10 USACM Position on the Escrowed Encryption Standard

548

—Association for Computing, U.S. Public Policy Committee - 1994

PART VI PUTTING THE GENIE BACK IN THE BOTTLE: EXPORT CONTROLS ON CRYPTOGRAPHY 551

Chapter 12 Atom Bombs, Fighter Planes, Machine Guns, and Cryptography: Export Controls

553

12.1 Electronic Speech—for Domestic Use Only —Bruce Schneier - Network World - January 15,1995

555

12.2 My Life as an International Arms Courier —Matt Blaze, AT&T - January 1995

557

12.3 Testimony Before the Committee on the Judiciary, Subcommittee on Technology and the Law, United States Senate —Stephen Walker, TIS - May 3,1994 (excerpts)

562

Contents

xiii

12.4 Report on Foreign Legal and Regulatory Controls on Imports and Use of Data Encryption Systems —DCI Counterintelligence Center - February 3,1993

589

12.5 CIA Memorandum: Selected Foreign Trends in Telecommunications Technology —Central Intelligence Agency - 1993 (excerpt)

596

12.6 Identification and Analysis of Foreign Laws and Regulations Pertaining to the Use of Commercial Encryption Products for Voice and Data Communications —National Institute of Standards and Technology -January, 1994

608

12.7 Advanced Telecommunications and Encryption (Memoranda, PRD/NSC 27) —Office of the Assistant Secretary of Defense -April 20,1993

622

12.8 A Study of the International Market for Computer Software with Encryption —Commerce Department & NSA -July 1995

629

Chapter 13 Untying the Gordian Knot: Efforts to Relax Export Controls

635

13.1 Letter to President Clinton on Export Controls —U.S. Congress, House of Representatives Committee on Foreign Affairs - September 30,1993

637

13.2 S. 1726 Promotion of Commerce On-Line in the Digital Era (Pro-CODE) Act —Senator Conrad Burns - March 5,1996

640

13.3 Testimony before the Senate Committee on Commerce, Science and Transportation on S. 1726 —Jim Barksdale, Netscape Communications -June 12,1996

648

13.4 Report on H.R. 3627 Omnibus Export Administration Act of 1994 —House Intelligence Committee -June 16,1994 (excerpts)

662

PART VII BIG BROTHER AS THE KEEPER OF THE KEYS: WILL THE GOVERNMENT TAKE OVER CRYPTO? 671

Chapter 14 Banning Cryptography

673

14.1 Options to Address Encryption Effects on Law Enforcement [censored] —National Security Agency - Undated (1993)

674

14.2 Jacking in from the Narco-Terrorist Encryption Port —Brock Meeks - Cyberwire Dispatch - May 1995

676

xiv

Contents 14.3 S. 974 Anti-Electronic Racketeering Act of 1995 —Senator Charles Grassley

681

14.4 Floor Statement on the Anti-Electronic Racketeering Act of 1995 —Senator Charles Grassley

686

14.5 EPIC Analysis of Encryption Provisions of S. 974

688

—David Sobel, Electronic Privacy Information Center-July

Chapter 15

19,1995

Software Key Escrow

691

15.1 Letter to Rep. Maria Cantwell —Vice President Al Gore -July 20,1994

692

15.2 Commercial Key Escrow —Steven Walker et al., Trusted Information Systems -January 3,1995

694

15.3 Administration Statement on Commercial Encryption Policy —White House -July 12,1996

709

15.4 Comments on Draft Export Criteria for Key Escrow Encryption

717

—David Sobel, Electronic Privacy Information Center - December 5,1995

Epilog

723 —Bruce Schneier

Bibliography of Books and Articles on Wiretapping and Cryptography

729

Index

735