[Weekly Compilation of Presidential Documents Volume 32, Number 46 (Monday, November 18, 1996)]
[Page 2401]
[Online from the Government Publishing Office, www.gpo.gov]

<R04>
Letter to Congressional Leaders on Encryption Export Policy

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. 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.