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THE WHITE HOUSE

                     Office of the Press Secretary
                         (Camp David, Maryland)
________________________________________________________________________
For Immediate Release                                      July 17, 2000

STATEMENT BY THE PRESS SECRETARY

Administration Updates

Encryption Export Policy

Today, the Administration is updating its policy for encryption exports to the European Union and other key trading partners, thus assuring continued competitiveness of U.S. industry in international markets.

Under the new policy, U.S. companies can export under license exception (i.e., without a license) any encryption product to any end user in the 15 nations of the European Union as well as Australia, Norway, Czech Republic, Hungary, Poland, Japan, New Zealand and Switzerland. Previous distinctions between government and non-government end users are removed for these countries. Further, U.S. exporters will be permitted to ship their products to these nations immediately after they have submitted a commodity classification request for their product to the Department of Commerce. Exporters no longer have to wait for a completed technical review or incur a 30-day delay to ship their encryption products to customers in these nations.

These updates track with recent regulations adopted by the European Union that ease encryption exports to the same countries. Consistent with the Administration's January 2000 commitment, U.S. companies can continue to compete effectively in these markets.

The steps announced today continue our policy to serve the full range of national interests: promote electronic commerce, support law enforcement and national security, protect privacy, and maintain U.S. industry leadership in security technologies.

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