Computer underground Digest    Sun Aug 23, 1992   Volume 4 : Issue 38

       Editors: Jim Thomas and Gordon Meyer (TK0JUT2@NIU.BITNET)
       Copy Editor: Etaion Shrdlu, III
       Archivist: Brendan Kehoe
       Shadow-Archivist: Dan Carosone

CONTENTS, #4.38 (Aug 23, 1992)
File 1--Retraction & apology to Ripco
File 2--THE GARBAGE DUMP BBS Purges Adult Gifs
File 3--Canada busts Pirate
File 4--Lotus NYT As against Borland
File 5--Secret Service -- the TV show
File 6--"The Hacker Files" Comic Book
File 7--ZEN AND THE ART OF THE INTERNET (Review 1)
File 8--ZEN AND THE ART OF THE INTERNET (Review 2)
File 9--CPSR Letter on Crypto Policy

Cu-Digest is a weekly electronic journal/newsletter. Subscriptions are
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----------------------------------------------------------------------
Date: Fri, 21 Aug 1992 11:41:44 -0600
From: Evan.Hendricks@EFF.ORG(hendricks@washofc.cpsr.org)
Subject: File 1--Retraction & apology to Ripco

((MODERATORS' NOTE: CuD #4.37 reported an inadvertent, but
unfortunate, phrasing of a reference to Ripco BBS, in an article in
Privacy Times. We contacted the editor, Evan Hendricks, who shared our
concern. He indicated that, if CuD's version of events were correct,
he would rectify the mistake. His response is below may be one reason
why Privacy Times is judged by many as as a first-rate and reputable
resource. His response should also be an example of integrity for
other journalists.))

The following retraction was printed in the Aug. 21, 1992 issue of
Privacy Times

 ++++++++++++++++++++++++++++

RETRACTION

In the previous issue, Privacy Times reported incorrectly that a
manual for breaking into TRW's credit bureau database was published on
the Ripco bulletin board.  In fact, Ripco officials refused to publish
it.  Our mistake was made worse by the fact that Ripco had been the
previous victim of unwarranted government persecution after
controversial matters were published on the board, sources said.

Privacy Times apologizes for this mistake. We regret any misconceptions
that this may have caused.

------------------------------

Date: Thu, 20 Aug 92 15:46:13 MDT
From: bbx!yenta!weenie@UNMVAX.CS.UNM.EDU(Dean Kerl)
Subject: File 2--THE GARBAGE DUMP BBS Purges Adult Gifs

                     FOR RELEASE AUGUST 17, 1992

             GARBAGE DUMP BBS PURGES ADULT GRAPHIC FILES

DataSafe, owners and operators of The Garbage Dump Bulletin Board
Service (BBS) in Albuquerque, NM and Denver, CO announce the immediate
removal of all adult graphic files from its online service. This
action was taken to free up system and personnel resources which will
be used to enhance and expand current services such as DOS, Windows
and OS/2 shareware downloadable files. Shareware files will be
promoted as a primary product along with interactive chat, message
areas and online multiplayer games.

Simon Clement, VP of Marketing said, "These graphic files have never
been an integral part of our business and this action will allow us to
market to a much wider audience. We feel that this new market strategy
will position us to serve more customers with better and more valuable
services. We would like to encourage our customers to continue using
our expanding services. Any customer who is dissatisfied with our
market emphasis will be given a full refund, on request, for any time
remaining on their account."

The Garbage Dump BBS will continue to offer and promote uncensored
Chat, E-mail, and Message Areas. This uncensored format allows for
open discussion of a wide range of controversial topics including
politics, consumer issues, freedom of speech, alternative lifestyles
and current events.

The Garbage Dump BBS can be reached via modem in Albuquerque, NM at
(505)-294-5675 and in Denver, CO at (303)-457-1111. If you have any
questions about our new policy or would like further information about
our services, please contact Dean Kerl at (505)-294-4980 Voice.

------------------------------

Date: 20 Aug 92 21:41:18 EDT
From: Gordon Meyer <72307.1502@COMPUSERVE.COM>
Subject: File 3--Canada busts Pirate

 Centre d'ordinateurs Microbec, a chain of four computer stores, has
 been handed the largest software-copyright fine in the province's
 history.  The company was fined C$63,000 for selling computers loaded
 with illegal copies of the MS-DOS operating system.

 The fine is not the worst of it for Microbec. When the Royal Canadian
 Mounted Police raided the company last October, they seized about 140
 computers carrying the illegal software as evidence. Since the
 company was convicted, the seized hardware will not be returned, said
 Allan Reynolds, manager of the Canadian Alliance Against Software
 Theft (CAAST), a Toronto-based group of major software vendors set up
 to fight software piracy. Reynolds said the value of the seized
 computers is "more than double the fine amount in terms of revenue
 value." (Reprinted from ST Report 8.33 with permission)

------------------------------

Date: Thu, 20 Aug 92 11:49:51 PDT
From: name_withheld@by.request
Subject: File 4--Lotus NYT As against Borland

In case you missed it, there was a full page ad by Lotus in the August
20 issue of the New York Times (Business section, p. 3) about their
lawsuit against Borland.  With a banner headline saying "There's
nothing innovative about copying, parts of it read:

     On Friday, July 31, 1992, a U.S. District Court ruled that
     Borland's Quattro(r) and Quattro Pro(r) spreadsheets infringe the
     copyrights of Lotus(r) 1-2-3.

     In its ruling, the court concluded tht "...the Quattro programs
     derive from illicit copying," holding that "Lotus has sued" and
     "Borland is liable."

Lotus goes for the jugular in the ad. In a large-print subhead, it
announces: "_Lotus innovated. Borland copied," and another says: "Who
should you trust?" The ad concludes:

     But perhaps most importantly, Borland lost what matters most to
     customers: credibility. For instance, Borland told the Court they
     needed to copy our menus to achieve macro compatibility with
     1-2-3. Now they tell their customers that the 1-2-3 menus aren't
     critical to compatibility.

     So ask yourself: To what extent can you trust a company that
     values what is expedient over what is legal? And to what extent
     can you rely on the product it wants you to buy?

     Here's our advice: Choose the product, and the company, you can
     trust. Choose Lotus. After all, we're the best in the business at
     building innovative spreadsheets. Always hae been, always will
     be.

     Case closed.
                                    Lotus


------------------------------

Date: 17 Aug 1992 12:24:24 -0400 (EDT)
From: Stephen Tihor 212 998 3052 <TIHOR@ACFcluster.NYU.EDU>
Subject: File 5--Secret Service -- the TV show

Last night NBC broadcast an episode of "Secret Service" in NY at least
that featured a straightforwards nut who wants to kill the President
plot and then a rather confusing account of their high technology
defense of a fuzzy city power system against sabotage by a fired
employee.

I hope someone taped it and caught the exact wording of the disclaimer
at the end because it was hard to follow the logic and determine what
was the original incident and what was Hollywoodisms.

The piece was prefaced with a brief discussion some of the risks of
power outages.

The expert quickly diagnosed the problem as a VIRUS.  Persistent
references to virus in the context of a electric power control system
seemed odd. Since they appeared to be running pre-existing VIRUS
checking software on the system one might suspect the "main frame" was
an IBM PC or Apple Macintosh running standard software rather than a
real time control system or perhaps something larger and safer.
Interesting references were made to viruses lurking WITHIN modems.
Then they identified the source of the attacking codes as the local
font storage in what appeared to be a old DECwriter dot matrix
printer.

With some external clues the agents attempt to confront the criminal
in house, which is wired with many falling metal screen, sounds
effects, and gas but which lacks reinforced walls.  The culprit is
classic middle aged computer geek who appears uncaring about possible
loss of life although the agents do not mention to him the risk of a
life sentence of death penalty of others die as a result of his
sabotage.  He refuses to help them disarm the problem.

The expert has announced that this is a logic bomb and eventually
realizes that since the bug code is not in the copy of the system on
disk as long as they shutdown without writing memory to disk they can
reboot bug free.  So a brief deliberate blackout is used to save the
city.

I am obvious very curious about the TRUE FACTs of this can if the show
plans to show such other SS triumphs in the war on electronic crime as
almost destroying Steve Jackson Games.

------------------------------

Date: Fri, 21 Aug 92 09:18:22 MDT
From: gambit@unijak.label.com(queen's gambit)
Subject: File 6--"The Hacker Files" Comic Book

_The Hacker Files_, if you've missed them, is the name of a new DC
comic book. At $1.95 each, I plunked down my six bucks and took the
first three of the 24 page monthly back to my digs and zap through
them between hacks.  Reading took a lot less time than I thought.  I
should have watched a double showing of Ishtar instead.

The premise of the story, which is continued in serial form from one
issue to the next, is that a virus has invaded Arpanet and threatens
the Pentagon's computer system and could trigger a nuclear set-to. No
matter that the collapse of Russia stretches the credibility of the
Dr. Strangelove plot.  The hacker-not-cracker hero is Jack Marshall, a
scruffy looking peacenik who dresses in a t-shirt with a prominent
peace sign, jeans, and an army shirt-as-jacket. He's been dismissed
from his last company, Digitronix, under mysterious circumstances and
was black-balled from the industry.  Digitronix, coincidentally,
installed the Pentagon's computers, and Jack Marshall, coincidentally,
wrote the operating system for it before his dismissal. Not
coincidentally, there's friction between Marshall and the Digitronix
crowd when he pops on the scene.  Not coincidentally, this friction
may or may not have something to do with the plot in coming issues.
 Marshall, handle of "Hacker," calls a few of his younger hacker
friends (Sue Denim and Dr. Zen) to help track down the virus planter.
Was it some curious kids? Was it Digitronix? Was it some nasty foreign
government? Do we really care?

I'm not sure who _The Hacker Files- is aimed at. It presents a rather
sympathetic view of hackers, so it's probably aimed at a younger,
techno-sophisticated audience. The unfolding of the plot is too slow
and twisted to hold the attention of the MTV generation, and pre-teens
would probably find the story line incomprehensible. The dialogue in
the book is R-rated, with "bullshits" and "goddamns" liberally
sprinkled in.  The graphics include unnecessary snapshot scenes of
houses and neighborhoods that probably are intended for a touch of
realism, but do nothing but take up space. At 12 cents a page, the
space could be better used.  The ads every few pages are distracting.
Simulated computer screens showing what the characters see on the
screen abound, but they don't add anything except maybe some vicarious
thrill for kids. The story line needs a stronger set of ideas
describing hackers and their activities and some coherent purpose in
using a hacker as hero or villain.  The characters, except for the
youngest hackers, aren't either exciting or sympathetic, and like
Gertrude Stein said about Oakland, after three issues there just ain't
no there there.

As I see it, the "to be continued" format is just a device to entice
readers to get the next issue, but it's is as lame and drawn out as
the first three, the promised "conclusion" in the fourth issue will be
the last.

------------------------------

Date: 20 Aug 1992 09:46:11 U
From: "Anne" <harwell@SMTPGATE.TECHRSCS.PANAM.EDU>
Subject: File 7--ZEN AND THE ART OF THE INTERNET (Review 1)

((MODERATORS' NOTE: The following two posts review ZEN AND THE ART OF
THE INTERNET: A BEGINNER'S GUIDE, by Brendan P. Kehoe.  Englewood
Cliffs (N.J.): Prentice-Hall. 122 pp. $22 (paper).))

Brendan Kehoe's _Zen and the Art of the Internet: A Beginner's Guide_
is an eminently usable handbook of information and tips for navigating
the Internet.  Despite its title, beginners aren't the only ones who
can benefit from it. The novice will enjoy it as a guided tour of the
net; more experienced netters will find it a valuable resource as an
all-in-one-place source for tips and tricks.

Although some of his examples do betray an excessive fondness for
Unix, Kehoe stays for the most part platform-neutral, so anyone can
benefit from this book.  All the basics are covered: email, FTP,
Usenet and Telnet; plus some of everybody's favorite fun things, such
as Finger, Ping, Talk and WHOIS.

One of the more interesting sections is Chapter 4, which is given over
entirely to explaining Usenet. Besides describing what Usenet is ("a
set of machines that exchange articles"), it also tells what Usenet is
not ("an organization," "the Internet," "fair"). Here the author
really seems to swing into his own; he's obviously very comfortable in
the world of newsgroups and this is some of his best writing. Although
the entire book is readable and easy to comprehend, it's fun in the
Usenet chapter. Perhaps echoing the anarchy of Usenet itself, Kehoe's
prose takes on a slightly more freewheeling bent, and his advice,
never heavy-handed, becomes more lively.

_Zen_ is also crammed with factoids that are great to know, but
sometimes hard to remember, such as directions for telnetting into the
Naval Observatory Automated Data Service and listings of email
gateways to. For the beginner, these are great guideposts for learning
what's what; the veteran will appreciate having a ready reference to
favorite services.

Like most people, I had to learn net behavior the hard way, but maybe
future generations will be spared this trauma by reading the section
on netiquette.  Although having a more aware crop of newbies entering
the net may not be as amusing to the old timers, it has the potential
for freeing up substantial chunks of bandwidth that were previously
occupied by flames sent to the clueless ones.

One feature of the book that could still stand some improvement is the
appearance of the printed text itself. According to Kehoe, it was
output on a 300 dpi laser. In the mid-1980's that was a great "taking
control of our own property" kind of statement, but now it's easy to
get much higher-quality text out of  felt that a book of this quality
deserved more attractive typefaces and higher-res output, such as what
could have easily been obtained from a Linotronic imagesetter.

However, this is a minor qualm and no reason for missing _Zen and the
Art of the Internet_. It's a book to keep handy by the computer,
whether you are a hardened veteran or a net.virgin. Although clearly
slanted towards the novice, there's lots here for everyone. I wish I'd
had it by my side when I first got on the net; it would have saved
asking a million clueless FAQs.

Anne Harwell
harwell@panam.edu

------------------------------

Date: Wed, 20 Aug 92 18:01:31 CDT
From: Jim Thomas <tk0jut2@mvs.cso.niu.edu)
Subject: File 8--ZEN AND THE ART OF THE INTERNET (Review 2)

_Zen and the Art of the Internet: A Beginner's Guide_ (ZAI) is a
deceptively subtle title. As Anne Harwell observes in her review in
the previous post, Kehoe has taken the most common problems and needs
of new internet riders and organized them in nine chapters, five
appendixes, a helpful glossary and a (all to brief) bibliography. Ms.
Harwell is an experienced cyber-surfer, administrator, and postmaster,
and not readily pleased. That she finds the book helpful is a
compelling endorsement.

Kehoe's title is more than a cute wordplay on the similarly titled
"Zen and the Art of Motorcycle Maintenance." It evokes an imagery and
analogue between the art of Zen, a belief that we fulfill ourselves
and understand the universe through self-mastery and mediation, and
the passion and mastery required to function in the Internet. The
Internet (or "net") is a system of interlinked computer systems
connected into a packet switching (data block transfer) network. It
enables users in different locations to communicate with each other by
connecting to a host computer, such as a university mainframe or
public access system, by addressing their "mail" with a unique address
to a recipient on the other end. Uses of the Internet include sending
and receiving electronic mail, ftp file transfers, telnet services
allowing access to remote systems, and inter-relay chat (IRC). The
increase in computer access at universities and the proliferation
especially of Unix-based public access systems such as The Well or
Mindvox have dramatically increased public access to The Net.
Internet's popularity and accessability make Kehoe's volume both
timely and important both for new users and even for experienced
net-travellers.

ZAI offers not only the basics for roaming around Internet, but
provides a helpful reference source of tips and addresses for others.
Beginning with network basics, Kehoe describes the concept of
networking and summarizes how connections are made.  A condensed
chapter on electronic mail addresses explains how they are
logically constructed, how to read domain and account names, and
tricks for correcting bounced mail.  He emphasizes to readers that
Usenet *is not* the same as internet (the former is a process for
exchanging posts for a mass audience, the latter is the computer
networking systems that carry the posts).  His explanation of Usenet
hierarchies, gateways, and "netiquette" should be invaluable to
newcomers.

ZAI's overview of ftp and telnet are especially helpful. One of the
most common "frequent asked questions" (FAQs) received by CuD is, "how
can I ftp back issues?" Kehoe explains, step-by-step, how one uses ftp
and telnet. He also provides the addresses of a number of useful sites
for accessing help files, security documents, and other information of
use both to novices and professionals. His summary of "things you'll
hear about" is a list of people, common terms, or sites that, if read
and remembered, will allow a novice to appear to be a seasoned user
almost immediately.

Readers should not be deceived by Kehoe's easy-going and often
humorous style.  Beneath the captivating prose is a serious purpose:
Kehoe successfully brings to life a primer in netology, and he
collapses considerable information into a short space. When finished
with the book, one will be able to distinguish between Z files and Gif
files, roam around archie with confidence, and log on to anonymous
ftp.

In the third edition, it would be helpful if some topics were
expanded. Additional addresses could be included of those sites that
have established longevity, Electronic digests such as Telecom Digest
and Cu-Digest might be mentioned, and a chapter on Bitnet, a
widely-used system among academics, might be included. It would also
be helpful to include a separate chapter on IRC, a growing interactive
communication procedure. If the publisher doesn't balk at the
expansion, a longer glossary and an expanded bibliography would also
be helpful (or at least explicit pointers to them).

These suggestions aside, ZAI, although a bit pricey at $22, is still a
good value, and the average reader will take away far more than from
books twice the size (or cost). It would make a nifty classroom aid
and should be required reading for anybody before being turned loose
on the nets. In fact, it should be required reading for us all.

------------------------------

Date: Mon, 17 Aug 1992 14:48:18 EDT
From: David Sobel <dsobel@WASHOFC.CPSR.ORG>
Subject: File 9--CPSR Letter on Crypto Policy

                     CPSR Letter on Crypto Policy

The following is the text of a letter Computer Professionals for
Social Responsibility (CPSR) recently sent to Rep. Jack Brooks,
chairman of the House Judiciary Committee.  The letter raises several
issues concerning computer security and cryptography policy.  For
additional information on CPSR's activities in this area, contact
banisar@washofc.cpsr.org.   For information concerning CPSR generally
(including membership information), contact cpsr@csli.stanford.edu.

====================================================

August 11, 1992

Representative Jack Brooks
Chairman
House Judiciary Committee
2138 Rayburn House Office Bldg.
Washington, DC 20515-6216

Dear Mr. Chairman:

     Earlier this year, you held hearings before the Subcommittee on
Economic and Commercial Law on the threat of foreign economic
espionage to U.S. corporations.  Among the issues raised during the
hearings were the future of computer security authority and the
efforts of government agencies to restrict the use of new
technologies, such as cryptography.

     As a national organization of computer professionals interested
in the policies surrounding civil liberties and privacy, including
computer security and cryptography, CPSR supports your efforts to
encourage public dialogue of these matters.  Particularly as the
United States becomes more dependent on advanced network technologies,
such as cellular communications, the long-term impact of proposed
restrictions on privacy-enhancing techniques should be carefully
explored in a public forum.

     When we had the opportunity to testify before the Subcommittee on
Legislation and National Security in May 1989 on the enforcement of
the Computer Security Act of 1987, we raised a number of these issues.
We write to you now to provide new information about the role of the
National Security Agency in the development of the Digital Signature
Standard and the recent National Security Directive on computer
security authority.  The information that we have gathered suggests
that further hearings are necessary to assess the activities of the
National Security Agency since passage of the Computer Security Act of
1987.

The National Security Agency
and the Digital Signature Standard

     Through the Freedom of Information Act, CPSR has recently learned
that the NSA was the driving force behind the selection and
development of the Digital Signature Standard (DSS).  We believe that
the NSA's actions contravene the Computer Security Act of 1987.  We
have also determined that the National Institute of Standards and
Technology (NIST) attempted to shield the NSA's role in the
development of the DSS from public scrutiny.

     The Digital Signature Standard will be used for the
authentication of computer messages that travel across the public
computer network.  Its development was closely watched in the computer
science community.  Questions about the factors leading to the
selection of the standard were raised by a Federal Register notice, 56
Fed. Reg. 42, (Aug 30, 1991), in which NIST indicated that it had
considered the impact of the proposed standard on "national security
and law enforcement," though there was no apparent reason why these
factors might be considered in the development of a technical standard
for communications security.

     In August 1991, CPSR filed a FOIA request with the National
Institute of Standards and Technology seeking all documentation
relating to the development of the DSS.  NIST denied our request in
its entirety.  The agency did not indicate that they had responsive
documents from the National Security Agency in their files, as they
were required to do under their own regulations.  15 C.F.R. Sec.
4.6(a)(4) (1992).  In October 1991, we filed a similar request for
documents concerning the development of the DSS with the Department of
Defense.  The Department replied that they were forwarding the request
to the NSA, from whom we never received even an acknowledgement of our
request.

     In April 1992, CPSR filed suit against NIST to force disclosure
of the documents.  CPSR v. NIST, et al., Civil Action No. 92-0972-RCL
(D.D.C.).  As

a result of that lawsuit, NIST released 140 out of a total of 142
pages.  Among those documents is a memo from Roy Saltman to Lynn
McNulty which suggests that there were better algorithms available
than the one NIST eventually recommended for adoption. If that is so,
why did NIST recommend a standard that its own expert believed was
inferior?

     Further, NIST was required under Section 2 of the Computer
Security Act to develop standards and guidelines to "assure the
cost-effective security and privacy of sensitive information in
federal systems." However, the algorithm selected by NIST as the DSS
was purposely designed to minimize privacy protection: its use is
limited to message authentication.  Other algorithms that were
considered by NIST included both the ability to authenticate messages
and the capability to incorporate privacy-enhancing features.  Was
NSA's interest in communication surveillance one of the factors that
lead to the NIST decision to select an algorithm that was useful for
authentication, but not for communications privacy?

     Most significantly, NIST also disclosed that 1,138 pages on the
DSS that were created by the NSA were in their files and were being
sent back to the NSA for processing.  Note that only 142 pages of
material were identified as originating with NIST.  In addition, it
appears that the patent for the DSS is filed in the name of an NSA
contractor.

     The events surrounding the development of the Digital Signature
Standard warrant further Congressional investigation.  When Congress
passed the Computer Security Act, it sought to return authority for
technical standard-setting to the civilian sector.  It explicitly
rejected the proposition that NSA should have authority for developing
technical guidelines:

     Since work on technical standards represents virtually
     all of the research effort being done today, NSA would
     take over virtually the entire computer standards job
     from the [National Institute of Standards and
     Technology].  By putting the NSA in charge of developing
     technical security guidelines (software, hardware,
     communications), [NIST] would be left with the
     responsibility for only administrative and physical
     security measures -- which have generally been done
     years ago.  [NIST], in effect, would on the surface be
     given the responsibility for the computer standards
     program with little to say about the most important part
     of the program -- the technical guidelines developed by
     NSA.

Government Operation Committee Report at 25-26, reprinted in 1988 U.S.
Code Cong. and Admin. News at 3177-78.  See also Science Committee
Report at 27, reprinted in 1988 U.S.C.A.N. 3142.

     Despite the clear mandate of the Computer Security Act, NSA does,
indeed, appear to have assumed the lead role in the development of the
DSS.  In a letter to MacWeek magazine last fall, NSA's Chief of
Information Policy acknowledged that the Agency "evaluated and
provided candidate algorithms including the one ultimately selected by
NIST."  Letter from Michael S. Conn to Mitch Ratcliffe, Oct. 31, 1991.
By its own admission, NSA not only urged the adoption of the DSS -- it
actually "provided" the standard to NIST.

     The development of the DSS is the first real test of the
effectiveness of the Computer Security Act.  If, as appears to be the
case, NSA was able to develop the standard without regard to
recommendations of NIST, then the intent of the Act has clearly been
undermined.

     Congress' intent that the standard-setting process be open to
public scrutiny has also been frustrated.  Given the role of NSA in
developing the DSS, and NIST's refusal to open the process to
meaningful public scrutiny, the public's ability to monitor the
effectiveness of the Computer Security Act has been called into
question.

     On a related point, we should note that the National Security
Agency also exercised its influence in the development of an important
standard for the digital cellular standards committee.  NSA's
influence was clear in two areas.  First, the NSA ensured that the
privacy features of the proposed standard would be kept secret.  This
effectively prevents public review of the standard and is contrary to
principles of scientific research.

The NSA was also responsible for promoting the development of a
standard that is less robust than other standards that might have been
selected.  This is particularly problematic as our country becomes
increasingly dependent on cellular telephone services for routine
business and personal communication.

     Considering the recent experience with the DSS and the digital
cellular

standard, we can anticipate that future NSA involvement in the
technical standards field will produce two results: (1) diminished
privacy protection for users of new communications technologies, and
(2) restrictions on public access to information about the selection
of technical standards.  The first result will have severe
consequences for the security of our advanced communications
infrastructure.  The second result will restrict our ability to
recognize this problem.

     However, these problems were anticipated when Congress first
considered the possible impact of President Reagan's National Security
Decision Directive on computer security authority, and chose to
develop legislation to promote privacy and security and to reverse
efforts to limit public accountability.

National Security Directive 42

      Congressional enactment of the Computer Security Act was a
response to President Reagan's issuance of National Security Decision
Directive ("NSDD") 145 in September 1984.  It was intended to reverse
an executive policy that enlarged classification authority and
permitted the intelligence community broad say over the development of
technical security standards for unclassified government and
non-government computer systems and networks.  As noted in the
committee report, the original NSDD 145 gave the intelligence
community new authority to set technical standards in the private
sector:

     [u]nder this directive, the Department of Defense (DOD)
     was given broad new powers to issue policies and
     standards for the safeguarding of not only classified
     information, but also other information in the civilian
     agencies and private sector which DOD believed should be
     protected.  The National Security Agency (NSA), whose
     primary mission is one of monitoring foreign
     communications, was given the responsibility of
     managing this program on a day-to-day basis.

H. Rep. No. 153 (Part 2), 100th Cong., 1st Sess. 6 (1987).  The
legislation was specifically intended to override the Presidential
directive and to "greatly restrict these types of activities by the
military intelligence agencies ... while at the same time providing a
statutory mandate for a strong security program headed up by [NIST], a
civilian agency."  Id. at 7.

     President Bush issued National Security Directive ("NSD") 42 on
July 5, 1990.  On July 10, 1990, Assistant Secretary of Defense Duane
P. Andrews testified before the House Subcommittee on Transportation,
Aviation, and Materials on the contents of the revised NSD.  The
Assistant Secretary stated that the "the new policy is fully compliant
with the Computer Security Act of 1987 (and the Warner Amendment) and
clearly delineates the responsibilities within the Federal Government
for national security systems."

     On August 27, 1990, CPSR wrote to the Directorate for Freedom of
Information of the Department of Defense and requested a copy of the
revised NSD, which had been described by an administration official at
the July hearing but had not actually been disclosed to the public.
CPSR subsequently sent a request to the National Security Council
seeking the same document.  When both agencies failed to reply in a
timely fashion, CPSR filed suit seeking disclosure of the Directive.
CPSR v. NSC, et al., Civil Action No. 91-0013-TPJ (D.D.C.).

     The Directive, which purports to rescind NSDD 145, was recently
disclosed as a result of this litigation CPSR initiated against the
National Security Council.

     The text of the Directive raises several questions concerning the
Administration's compliance with the Computer Security Act:

     1. The new NSD 42 grants NSA broad authority over "national security
systems."  This phrase is not defined in the Computer Security Act and
raises questions given the expansive interpretation of "national security"
historically employed by the military and intelligence agencies and the
broad scope that such a term might have when applied to computer
systems within the federal government.

     If national security now includes international economic activity, as
several witnesses at your hearings suggested, does NSD 42 now grant NSA
computer security authority in the economic realm?  Such a result would
clearly contravene congressional intent and eviscerate the distinction
between civilian and "national security" computer systems.

     More critically, the term "national security systems" is used
throughout the document to provide the Director of the National
Security Agency with broad new authority to set technical standards.
Section 7 of NSD 42 states that the Director of the NSA, as "National
Manager for National Security Telecommunications and Information
Systems Security," shall

     * * *

     c. Conduct, *approve*, or endorse research and
     development of techniques and equipment to secure
     national security systems.

     d. Review and *approve* all standards, techniques,
     systems, and equipment, related to the security of
     national security systems.

     * * *

     h. Operate a central technical center to evaluate and
     *certify* the security of national security
     telecommunications and information systems.

(Emphasis added)

     Given the recent concern about the role of the National Security
Agency in the development of the Digital Signature Standard, it is our
belief that any standard-setting authority created by NSD 42 should
require the most careful public review.

     2. NSD 42 appears to grant the NSA new authority for  information
security.  This is a new area for the agency; NSA's role has
historically been limited to communications security.  Section 4 of
the directive provides as follows:

     The National Security Council/Policy Coordinating
     Committee (PCC) for National Security Telecommuni-
     cations, chaired by the Department of Defense, under the
     authority of National Security Directives 1 and 10,
     assumed the responsibility for the National Security
     Telecommunications NSDD 97 Steering Group.  By
     authority of this directive, the PCC for National Security
     Telecommunications is renamed the PCC for National
     Security Telecommunications and Information Systems,
     and shall expand its authority to include the
     responsibilities to protect the government's national
     security telecommunications and information systems.

(Emphasis added).

     Thus, by its own terms, NSD 42 "expands" DOD's authority to
include "information systems."  What is the significance of this new
authority?  Will it result in military control of systems previously
deemed to be civilian?

     3. NSD 42 appears to consolidate NSTISSC (The National Security
Telecommunications and Information Systems Security Committee)
authority for both computer security policy and computer security
budget determinations.

     According to section 7 of the revised directive, the National
Manager for NSTISSC shall:

     j. Review and assess annually the national security
     telecommunications systems security programs and
     budgets of Executive department and agencies of the U.S.
     Government, and recommend alternatives, where
     appropriate, for the Executive Agent.

     NSTISSC has never been given budget review authority for federal
agencies.  This is a power, in the executive branch, that properly
resides in the Office of Management and Budget.  There is an
additional concern that Congress's ability to monitor the activities
of federal agencies may be significantly curtailed if this NSTISSC, an
entity created by presidential directive, is permitted to review
agency budgets in the name of national security.

     4. NSD 42 appears to weaken the oversight mechanism established
by the Computer Security Act.  Under the Act, a Computer Systems
Security and Privacy Advisory Board was established to identify
emerging issues, to inform the Secretary of Commerce, and to report
findings to the Congressional Oversight Committees.  Sec. 3, 15 U.S.C.
Sec. 278g-4(b).

     However, according to NSD 42, NSTISSC is established "to consider
technical matters and develop operating policies, procedures,
guidelines, instructions, and standards as necessary to implement
provisions of this Directive."  What is the impact of NSTISSC
authority under NSD 42 on the review authority of the Computer Systems
Security and Privacy Advisory Board created by the Computer Security
Act?

Conclusion

     Five years after passage of the Computer Security Act, questions
remain about the extent of military involvement in civilian and
private sector computer security.  The acknowledged role of the
National Security Agency in the development of the proposed Digital
Signature Standard appears to violate the congressional intent that
NIST, and not NSA, be responsible for developing security standards
for civilian agencies.  The DSS experience suggests that one of the
costs of permitting technical standard setting by the Department of
Defense is a reduction in communications privacy for the public.  The
recently released NSD 42 appears to expands DOD's security authority
in direct contravention of the intent of the Computer Security Act,
again raising questions as to the role of the military in the nation's
communications network.

     There are also questions that should be pursued regarding the
National Security Agency's compliance with the Freedom of Information
Act.  Given the NSA's increasing presence in the civilian computing
world, it is simply unacceptable that it should continue to hide its
activities behind a veil of secrecy.  As an agency of the federal
government, the NSA remains accountable to the public for its
activities.

     We commend you for opening a public discussion of these important
issues and look forward to additional hearings that might address the
questions we have raised.


                                                     Sincerely,



                                                     Marc Rotenberg,
Director
                                                     CPSR Washington Office

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End of Computer Underground Digest #4.38
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