TEXT

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.
                    
                         /s/William J. Clinton


THE WHITE HOUSE, 
November 15. 1996.