A group of moderate Democrats has sent a letter to President Clinton urging him to reconsider the current federal policy on data security technology and to craft a policy akin to a bipartisan encryption bill moving through Congress.
"We are deeply concerned that current policy restricting exports of cryptography technology poses a real threat to US dominance in what will be a US$200 billion market by the year 2000," said Thursday's letter from the coalition, self-described as fiscally conservative and socially liberal.
"As you know, Congress is considering legislation to overturn present cryptography policy," the letter said. "Accordingly, this is an opportune time for your administration to craft cryptography policy that would free the US software industry to compete in the world market."
Several Republican members joined Democrats in signing the letter.
Formed by Representatives Jim Moran of Virginia and Cal Dooley of California in March, the New Democrat Coalition, consisting of 32 mostly junior House Democrats, aims to jump into the high-tech fray by crafting policy initiatives this session, a Moran aide said.
Indeed, some members - such as Anna Eshoo, who represents Silicon Valley - have already taken the lead on certain high-tech issues.
Republican Representative Bob Goodlatte of Virginia, who introduced the Security and Freedom through Encryption bill, also signed the letter. The bill, which has 85 co-sponsors including most of the New Democrats, would relax the administration's current policy of mandatory key escrow for exported encryption products and lift restrictions on the strength of encryption that can be exported.
The letter is significant in part because it comes from a group that would appear to be natural Clinton allies.
"[The administration] has moved closer and closer to our position," Goodlatte said in an interview Thursday. "We believe they are loosening up their export controls already."
The encryption at the center of the current debate is used to protect a variety of communications, such as email or personal bank or credit-card numbers, on the Internet and other networks. Messages are scrambled so that only those with a key can access the data.
