A Clinton "Dirty Book"

In late 1994 the U.S. State Department denied Phil Karn his request to export a PC disk. Mr. Karn already had sold the book, APPLIED CRYPTOGRAPHY written by Bruce Schneier, without restriction. Mr. Karn also included a disk of text source code (in human readable format) that was also printed in the book.

The book and the disk were freely sold, with no checks, in retail American bookstores. According to the Clinton administration, Karn's disk was a threat to national security. Newly released documents from the State Department, written in November 1994, shows the White House National Security Council (NSC) directly approved the decision to deny Karn's request while allowing the export of military encryption to China.

The document, a letter written by Wendy Sherman, State Department Assistant Secretary of Legislative Affairs, to then Congresswoman Maria Cantwell (D WA) was provided to Bill Clements of the NSC for White House approval. In addition, the document includes a fax on Karn's export problem titled "TO: Pres. Clinton". Ordie Kittrie, the State Department Attorney for Political-Military Affairs, wrote "Attached is draft response to Rep. Cantwell ie Karn encryption disk... Please provide me with any comments by noon Friday, November 18."

"The decision that controls should continue was based on several consideration," wrote Ms. Sherman. "The administration will continue to restrict export of sophisticated encryption devices, both to preserve our own foreign intelligence gathering capability and because of the concerns of our allies who fear that strong encryption technology would inhibit their law enforcement capabilities. One result of the interagency review of Mr. Karn's disk was a determination that the source code on it is of such a strategic level as to warrant continued State Department licensing."

Of course, any criminal or terrorist could simply purchase the book and key the code in. A slightly richer criminal could even use an Optical Scanner (OCR) and convert the pages directly into readable source code in less time. Even a secret Commerce briefing document from a 1996 meeting with Janet Reno openly admits the futile nature of trying to restrict PC diskette or software export. "Lost in the debate," states the secret 1996 Commerce Department document. "But not irrelevant, is the fact that it is virtually impossible to enforce export control's against them when they can be exported by phone and modem or/in someone's pocket."

At first the Clinton encryption policy seems absurd or simply driven by bureaucratic red tape. Alas, nothing is further from the truth. The policy was used as a means to extort donations for the DNC or by Clinton insiders bent on making big bucks.

The Chinese Army was not interested in PC programs or diskettes their agents could buy openly in a retail bookstore. The PLA under the Clinton administration has been in the business of acquiring commercial applications of "Defense" technology. For example, in November 1994 Motorola employee and former Clinton White House NSC member Richard Barth began his successful request to sell encrypted radios and cellular phones to the Chinese Police.

Motorola's Barth wrote to Theodore McNamara Assistant Secretary of State on November 23, 1994. "This is to request that your office initiate action to obtain a waiver from requirement for individual export license notifications to Congress for wireless mobile communications systems containing encryption for China. Such a waiver was issued by the President in September of this year for civilian satellite systems and encrypted products for use by American firms operating in China."

According to Barth, a high-tech trade war had erupted between the U.S. and Britain. "European firms," wrote Barth. "Including Nokia, Ericsson, Alcatel and Siemens, have for a number of months been able to market and sell GSM cellular systems with A5-2 encryption in China as a result of a decision taken by the UK intelligence agency, GCHQ."

By July 1995, the CEO of Motorola, Gary Tooker, wrote a personal note to Ron Brown, expressing his gratitude for Clinton's signature approving encryption exports. "I am writing to thank you," wrote Tooker to Brown. "And some key members of the Commerce Department for your assistance in obtaining the Presidential waiver for encryption export sales to China."

The Motorola saga of Barth is not the only example of Bill Clinton's two-faced policy on high-tech exports. In fact, President Clinton personally authorized the transfer of an encrypted air traffic control system to the Chinese Air Force. It is this particular export which illustrates the difference between military encryption and civilian, such as Karn's disk of PC programs.

The Chinese Air Force runs the civilian air control in their country. The U.S. built air traffic system is not only run by PLAAF officers but it is also plugged directly into their air defense. According to the recent GAO testimony on Clinton waivers "Waivers were also granted to permit the export of encryption equipment controlled on the Munitions List. One case involved a $4.3-million communications export to China's Air Force."

Not only are Chinese fighters and missiles more effective thanks to Bill Clinton but China has also exported a modified version of the U.S. system to Iraq. The Chinese version, called "Tiger Song", includes U.S. and French made parts. The Tiger Song system allows Iraq to track and target U.S. fighters using a high speed, secure, fiber optic command network.

All radars in Iraq, civilian and military, are now linked together into Tiger Song. Iraqi missiles and military radars are also now playing a giant shell game with U.S. air forces, using pre-built camouflaged sites wired with hidden fiber optic cables, scattered all over the country.

Another military example of Clinton crypto export controls is the sales of Hughes, Motorola, and Loral satellites to the Chinese military. The satellites were sold complete with on-board secure telemetry systems hardened to absorb the intense radiation of space - something that can be directly applied to nuclear weapons. The satellites exported to China in question were so classified that whole sections of Federal law, the U.S. Munitions List, were deleted or waived by Bill Clinton.

The claims made by Bernard Schwartz and Loral that they did not knowingly export military technology to China contradicts the official briefing documents given to Ron Brown in 1994. [Ron Brown, former U.S. Secretary of Commerce, died when the plane in which he was travelling mysteriously crashed when coming in to land at Dubrovnik, Croatia.] One Loral document obtained from the files of Ron Brown, labeled "for Secy. Brown", has a page titled "Commercial Applications Of DoD Technology". This document lists "Intelsat", "Cellular - Globalstar" and "Direct Broadcast Satellite" technology along with a variety of other products developed from "DoD" projects. Thus, Loral knowingly exported systems they developed for the U.S. military to China.

Did Mr. Clinton consult with U.S. allies prior to allowing top DNC donors export rights to military gear? According to Motorola, the staunchest U.S. ally, Great Britain, was an economic adversary. Clearly, the strategic concerns of South Korea, Japan and the Philippines were never considered. Under Bill Clinton our allies from the Cold War were competitors in a economic war for money.

Furthermore, in September 1998 FBI Director Freeh testified before the Senate Committee on Terrorism. As predicted, Freeh pushed the "Bin Ladden" terrorism button while requesting a ban on domestic PC encryption programs. The use of encryption by so called terrorist organizations is balanced by the use of the same technology by law abiding citizens to protect themselves from criminals. The fact that Bin Ladden is armed with encryption comes as no surprise since he was, after all, trained by the CIA to fight the Soviets in Afghanistan. Once a freedom fighter and now a terrorist.

One similar historic example to Bin Ladden is "VULA". In the 1980s the South African National Congress (ANC) used encryption in a project called "VULA" to defeat the apartheid government. Vula included illegal exports from europe, Soviet training and home built software. Vula was successful and the ANC ultimately won their long war. Once a terrorist now a freedom fighter.

These facts are not unknown to the Clinton administration. In November 1993 TOP Secret document prepared for President Clinton openly admitted the futility of any government-imposed ban. According to "IMPACTS OF TELECOMMUNICATIONS AND ENCRYPTION TECHNOLOGY ON LAW ENFORCEMENT AND INTELLIGENCE COLLECTION: ASSESSMENT, OPTIONS, AND RECOMMENDATIONS" a ban would "either (1) discourage criminals from using encryption because they realized that most products did not provide protection from wiretaps, or (2) encourage criminals to acquire strong encryption technology, whether commercial or home made."

Obviously, the administration will not start banning books so the "home made" option will always apply. The FBI Director seems to have forgotten common sense along with the law. He certainly has remained silent while the Chinese Army purchased military encryption systems from his boss. Freeh, however, has also remained adamant that crack-pot export restrictions on printed text must remain.

Mr. Freeh also overlooked one final historical example of a so called revolutionary type group using encryption and the FBI Director can thank his job for it. In April 1775 Paul Revere read a coded light signal from a Church tower and rode into history. The King's men did not intercept nor decode that message. The battle of Concord took place and the first shots of our own revolution were fired.

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