The British government quietly announced yesterday that it will legislate to restrict crypto. The details are in the attached Reuters and PA newswires. Fuller details will no doubt be available at a one day workshop that the Ministry of Defence is organising at the IEE in Savoy Place on the 27th June. The speakers will include directors of both CESG (GCHQ's front operation) and DRA, as well as a policeman and the data protection registrar. The IEE's phone number is 0171 240 1871. RTf 06/10 1355 UK to license information encryption services LONDON, June 10 (Reuter) - The British government unveiled proposals on Monday aimed at meeting the demand for encryption services to safeguard the confidentiality of electronic information transmitted on public telecommunications networks. Technology minister Ian Taylor published a paper proposing a licensing system for so-called "Trusted Third parties," or TTPs, to provide encryption services. "The TTPs would offer digital signature, data integrity and retrieval, key management and other services for which there is a commercial demand," Taylor said in a written parliamentary answer. Taylor said encryption services would facilitate the development of electronic commerce, thus helping to maintain Britain's competitiveness. The licensing policy would aim to protect consumers as well as to preserve the ability of intelligence and law enforcement agencies to fight serious crime and terrorism, Taylor said. This would be done by establishing procedures for disclosure to them of the encryption keys, under safeguards similar to those which already exist under the Interception of Communications Act, he added. Taylor said officials in his department had already held preliminary discussions with industry groups on the concepts set out in Monday's paper. Following consultation by the Department of Trade and Industry on detailed proposals, the government intends to bring forward legislation, Taylor added. PA 06/10 1808 MOVE TO STRENGTHEN INFORMATION SECURITY By Parliamentary Staff, PA News The Government tonight announced plans to strenthen the security of information sent electronically over public telecommunications networks. Technology Minister Ian Taylor, in a Commons written reply, disclosed proposals to licence trusted third parties to provide encryption services -- the process of transforming text into an unintelligible form that can only subsequently be recovered by someone possessing the corresponding decryption key. These services cover the digital signature, an electronic equivalent of a hand-written signature, of electronic documents and the protection of the accuracy and privacy of contents. Mr Taylor said: "There is a growing demand for encryption services to safeguard the integrity and confidentiality of electronic information transmitted on public telecommunications networks. "The Government therefore proposes to make arrangements for licensing trusted third parties who would provide such services." These would include digital signature, data integrity and retrieval and key management services. "The licensing policy will aim to protect consumers as well as to preserve the ability of the intelligence and law enforcement agencies to fight serious crime and terrorism by establishing procedures for disclosure to them of the encryption keys, under safeguards similar to those which already exist for warranted interception under the Interception of Communications Act." Mr Taylor, who disclosed publication of a paper, said it was intended to bring forward proposals for legislation after consultation on detailed policy proposals. The Trade and Industry Department said increased use of IT systems by British business and commerce was a major factor in their improved competitive position, but had brought increased security risks -- especially concerning integrity and confidentiality of information passed electronically between trading bodies. Prime candidates to be trusted third parties could include banks, network operators and trade associations.