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EEXECUTIVE ORDER ON EXPORT CONTROLS





                           THE WHITE HOUSE
  
                    Office of the Press Secretary
  
  _______________________________________________________________
  
  For Immediate Release                         November 15, 1996
  
  
                           EXECUTIVE ORDER
  
                            - - - - - - -
  
       ADMINISTRATION OF EXPORT CONTROLS ON ENCRYPTION PRODUCTS
  
  
       By the authority vested in me as President by the 
  Constitution and the laws of the United States of America, 
  including but not limited to the International Emergency 
  Economic Powers Act (50 U.S.C. 1701 et seq.), and 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 on August 14, 1996, 
  I, WILLIAM J. CLINTON, President of the United States of 
  America, have decided that the provisions set forth below shall 
  apply to administration of the export control system maintained 
  by the Export Administration Regulations, 15 CFR Part 730 
  et seq. ("the EAR").  Accordingly, it is hereby ordered as 
  follows:
  
       Section 1.  Treatment of Encryption Products.  In order 
  to provide for appropriate controls on the export and foreign 
  dissemination of encryption products, export controls of 
  encryption products that are or would be, on this date, 
  designated as defense articles in Category XIII of the 
  United States Munitions List and regulated by the United States 
  Department of State pursuant to the Arms Export Control Act, 
  22 U.S.C. 2778 et seq. ("the AECA"), but that subsequently are 
  placed on the Commerce Control List in the EAR, shall be subject 
  to the following conditions:  (a)  I have determined that the 
  export of encryption products described in this section could 
  harm national security and foreign policy interests even where 
  comparable products are or appear to be available from sources 
  outside the United States, and that facts and questions 
  concerning the foreign availability of such encryption products 
  cannot be made subject to public disclosure or judicial review 
  without revealing or implicating classified information that 
  could harm United States national security and foreign policy 
  interests.  Accordingly, sections 4(c) and 6(h)(2)-(4) of 
  the Export Administration Act of 1979 ("the EAA"), 50 U.S.C. 
  App. 2403(c) and 2405(h)(2)-(4), as amended and as continued 
  in effect by Executive Order 12924 of August 19, 1994, and 
  by notices of August 15, 1995, and August 14, 1996, all 
  other analogous provisions of the EAA relating to foreign 
  availability, and the regulations in the EAR relating to such 
  EAA provisions, shall not be applicable with respect to export 
  controls on such encryption products.  Notwithstanding this, 
  the Secretary of Commerce ("Secretary") may, in his discretion, 
  consider the foreign availability of comparable encryption 
  products in determining whether to issue a license in a 
  particular case or to remove controls on particular products, 
  but is not required to issue licenses in particular cases or 
  to remove controls on particular products based on such 
  consideration;
  
       (b)  Executive Order 12981, as amended by Executive 
  Order 13020 of October 12, 1996, is further amended as follows:
  
       (1)  A new section 6 is added to read as follows:  
  "Sec. 6.  Encryption Products.  In conducting the license 
  review described in section 1 above, with respect to export 
  controls of encryption products that are or would be, on 
  November 15, 1996, designated as defense articles in Category 
  XIII of the United States Munitions List and regulated by the 
  United States Department of State pursuant to the Arms Export 
  Control Act, 22 U.S.C. 2778 et seq., but that subsequently are 
  placed on the Commerce Control List in the Export Administration 
  Regulations, the Departments of State, Defense, Energy, and 
  Justice and the Arms Control and Disarmament Agency shall have 
  the opportunity to review any export license application 
  submitted to the Department of Commerce.  The Department of 
  Justice shall, with respect to such encryption products, be a 
  voting member of the Export Administration Review Board 
  described in section 5(a)(1) of this order and of the Advisory 
  Committee on Export Policy described in section 5(a)(2) of this 
  order.  The Department of Justice shall be a full member of the 
  Operating Committee of the ACEP described in section 5(a)(3) of 
  this order, and of any other committees and consultation groups 
  reviewing export controls with respect to such encryption 
  products."
  
       (2)  Sections 6 and 7 of Executive Order 12981 of 
  December 5, 1995, are renumbered as new sections 7 and 8, 
  respectively.
  
       (c)  Because the export of encryption software, like the 
  export of other encryption products described in this section, 
  must be controlled because of such software's functional 
  capacity, rather than because of any possible informational 
  value of such software, such software shall not be considered 
  or treated as "technology," as that term is defined in 
  section 16 of the EAA (50 U.S.C. App. 2415) and in the EAR 
  (61 Fed. Reg. 12714, March 25, 1996);
  
       (d)  With respect to encryption products described in this 
  section, the Secretary shall take such actions, including the 
  promulgation of rules, regulations, and amendments thereto, as 
  may be necessary to control the export of assistance (including 
  training) to foreign persons in the same manner and to the same 
  extent as the export of such assistance is controlled under the 
  AECA, as amended by section 151 of Public Law 104-164;
  
       (e)  Appropriate controls on the export and foreign 
  dissemination of encryption products described in this section 
  may include, but are not limited to, measures that promote the 
  use of strong encryption products and the development of a key 
  recovery management infrastructure; and
  
       (f)  Regulation of encryption products described in this 
  section shall be subject to such further conditions as the 
  President may direct.
  
       Sec. 2.  Effective Date.  The provisions described in 
  section 1 shall take effect as soon as any encryption products 
  described in section 1 are placed on the Commerce Control List 
  in the EAR.
  
       Sec. 3.  Judicial Review.  This order is intended only to 
  improve the internal management of the executive branch and to 
  ensure the implementation of appropriate controls on the export 
  and foreign dissemination of encryption products.  It is not 
  intended to, and does not, create any rights to administrative 
  or judicial review, or any other right or benefit or trust 
  responsibility, substantive or procedural, enforceable 
  by a party against the United States, its agencies or 
  instrumentalities, its officers or employees, or any other 
  person.
  
  
  
       	    	      	   	WILLIAM J. CLINTON
  
  THE WHITE HOUSE,
      November 15, 1996.
  
  
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