    [Public Papers of the Presidents of the United States: William J. Clinton (1996, Book II)]
    [November 15, 1996]
    [Pages 2123-2124]
    [From the U.S. Government Publishing Office www.gpo.gov]

    Letter to Congressional Leaders on Encryption Products Export Controls
    November 15, 1996

    Dear Mr. Speaker:  (Dear Mr. President:)
        In order to take additional steps with respect to the national
    emergency described and declared in Executive Order 12924 of August 19,
    1994, and continued on August 15, 1995, and August 14, 1996,
    necessitated by the expiration of the Export Administration Act (EAA) on
    August 20, 1994, I hereby report to the Congress that pursuant to
    section 204(b) of the International Emergency Economic Powers Act, 50
    U.S.C. 1703(b) (the ``Act''), I have today exercised the authority
    granted by the Act to issue an Executive order (a copy of which is
    attached) to revise the provisions that apply to the administration of
    the export control system maintained by Department of Commerce in the
    Export Administration Regulations, 15 CFR Part 730 et seq.
        The new Executive order relates to my decision to transfer certain
    encryption products from the United States Munitions List administered
    by the Department of State to the Commerce Control List administered by
    the Department of Commerce. When I made that decision I also decided to
    amend Executive Order 12981 of December 5, 1995, which sets forth
    procedures for the interagency review and disposition of dual-use export
    license applications, to include the Department of Justice among the
    agencies that have the opportunity to review such applications with
    respect to encryption products transferred to Department of Commerce
    control.
        Also, in issuing the new order, I provided for appropriate controls
    on the export and foreign dissemination of encryption products
    transferred to the Department of Commerce. Among other provisions, I
    determined that the export of encryption products transferred to
    Department of Commerce control could harm national security and foreign
    policy interests of the United States even where comparable products are
    or appear to be available from foreign sources. Accordingly, the new
    order makes clear that any EAA provision dealing with issuance of
    licenses or removal of controls based on foreign availability
    considerations shall not apply with respect to export controls on such
    encryption products.

    [[Page 2124]]

    Notwithstanding this, the Secretary of Commerce retains the discretion
    to consider the foreign availability of comparable encryption products
    in any particular case.
            Sincerely,

                                                          William J. Clinton

    Note: Identical letters were sent to Newt Gingrich, Speaker of the House
    of Representatives, and Albert Gore, Jr., President of the Senate. The
    Executive order is listed in Appendix D at the end of this volume.