Controversial Encryption Rules Delayed

The Clinton administration plans to delay by at least one month new rules that will ease the export of computer data-scrambling technology overseas. The plan is to allow Americaís high-tech industry to sell even the most powerful encryption technology overseas with almost no restrictions.A representative for the department's Bureau of Export Administration confirmed an earlier report by saying the government now aimed to issue the rules by January 14, 2000.The delay affords the government more time to consider criticism from high-tech companies and Internet advocacy groups, and some members of Congress over a draft circulated last month of its proposed rules, which were denounced as still too restrictive. That draft fell short of the promises announced in September.The White House decided in September to largely reverse its long-standing opposition to liberalizing the rules that companies must follow to export software products with scramble digital messages.It was an enormous concession to the high-tech industry over the objections of law enforcement and national security officials, because it will help those companies in overseas competition - and help consumers worldwide guarantee the privacy of their e-mail and online credit-card purchases.Once used only by spies and the military, encryption now protects credit card numbers sent over the Internet, cell phone calls and even movies recorded on DVD discs.