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Withdrawal/Redaction Sheet
Clinton Library
DOCUMENT NO.
AND TYPE
SUBJECTffiTLE
DATE
RESTRICTION.
001. Memo
Minutes ofmeeting (1 page)
1117/96
P1/b(1)
002. Memo
Minutes of meeting (1 page)
1/17/96
P1/b(1)
003. Memo
Minutes of meeting (1 page)
1117/96
P1/b(l)
004. Memo
Minutes of meeting (handwritten) (1 page)
1/17/96
P1/b(l)
005. Memo
Minutes of meeting (handwritten) (1 page)
1117/96
P1/b(l)
006. Memo
Minutes of meeting (handwritten) (1 page)
1/17/96
P1/b(1)
007. Memo
Minutes of meeting (handwritten) (1 page)
1117/96
P1/b(1)
008. Notes
Hard to read handwritten notes. Will be reviewed upon researcher's
request (7 pages)
nd
RR
009. report
American Embassy Jakarta- FY 1996 Strategic Commercial Plan (6
pages)
nd
P4/b(4), P5
010. Itinerary
Travel Voucher (partial) (1 page)
2/96
P6/b(6)
01 I. Itineral!':
Travel Voucher (partial) (1 page)
1/10/96
P6/b(6)
012. Itinerary
Travel Voucher (partial) (1 page)
1/10/96
P6/b(6)
COLLECTION:
Clinton Presidential Records
Domestic Policy Council
Ira Magaziner (Electronic Commerce)
OA/Box Number: I 0380
FOLDER TITLE:
[International Internet Trade]
Rhonda Wilson
rw9
RESTRICTION CODES
Presidential Records Act- [44 U.S.C. 2204(a)l
Freedom of Information Act- [5 U.S.C. 552(b))
Pl National Security Classified Information [(a)(l) of the PRA]
P2 Relating to the appointment to Federal office [(a)(2) of the PRA]
P3 Release would violate a Federal statute [(a)(3) of the PRA)
P4 Release would disclose trade secrets or confidential commercial or
financial information [(a)(4) of the PRA]
PS Release would disclose confidential advice between the President
and his advisors, or between such advisors [a)(S) of the PRAI
P6 Release would constitute a clearly unwarranted invasion of
personal privacy [(a)(6) of the PRA]
b(l) National security classified information j(b)(l) of the FOIAI
b(2) Release would disclose internal personnel rules and practices of
an agency j(b)(2) of the FOIA)
b(3) Release would violate a Federal statute [(b)(3) of the FOIAI
b(4) Release would disclose trade secrets or confidential or financial
information [(b)(4) of the FOIA)
b(6) Release would constitute a clearly unwarranted invasion of
personal privacy [(b)(6) of the FOIA]
b(7) Release would disclose information compiled for law enforcement
purposes [(b)(7) of the FOIA]
b(8) Release would disclose information concerning the regulation of
financial institutions [(b)(8) of the FOIA)
b(9) Release would disclose geological or geophysical information
concerning wells [(b)(9) of the FOIA]
C. Closed in accordance with restrictions contained in donor's deed
of gift.
PRM. Personal record misfile defined in accordance with 44 U.S.C.
2201(3).
RR. Document will be reviewed upon request.
�Withdrawal/Redaction Sheet
Clinton Library
DOCUMENT NO.
AND TYPE
SUBJECTffiTLE
DATE
RESTRICTION
013. Itinerary
Travel Voucher (partial) (1 page)
1/10/96
P6/b(6)
014. Itinerary
Travel Voucher (partial) (1 page)
1113/96
P6/b(6)
015. Itinerary'
Travel Voucher (partial) (1 page)
1/13/96
P6/b(6)
016. Itinerary
Travel Voucher (partial) (1 page)
nd
P6/b(6)
0 17. Itinerary
Travel Voucher (partial) (1 page)
nd
P6/b(6)
018. Itinerary
Travel Voucher (partial) (1 page)
3/5/96
P6/b(6)
019. ltineraryi
Travel Voucher (partial) ( 1 page)
217!96
P6/b(6)
020. Itinerary
Travel Voucher (partial) (1 page)
2/7/96
P6/b(6)
021. Itinerary;
Travel Voucher (partial) (1 page)
nd
P6/b(6)
022. itinerary
Travel Voucher (partial) (1 page)
nd
P6/b(6)
023. Memo
From Han to Greenblatt. Re: Subpoena (1 page)
2/28/96
P5
024. memo
From: Han, To: Greenblatt Re: Subpoena- Reply (1 page)
2/29/96
P5
COLLECTION:
Clinton Presidential Records
Domestic Policy Council
Ira Magaziner (Electronic Commerce)
ONBox Number: 10380
FOLDER TITLE:
[International Internet Trade]
Rhonda Wilson
rw9
RESTRICTION CODES
Presidential Records Act- 144 U.S.C. 2204(a)J
Freedom of Information Act- IS U.S.C. 552(b)l
Pl National Security Classified Information l(a)(l) of the PRA)
P2 Relating to the appointment to Federal office l(a)(2) of the PRA)
P3 Release would violate a Federal statute l(a)(3) of the PRA)
P4 Release would disclose trade secrets or confidential commercial or
financial information l(a)(4) of the PRA)
PS Release would disclose confidential advice between the President
and his advisors, or between such advisors la)(S) of the PRAI
P6 Release would constitute a clearly unwarranted invasion of
personal privacy !(a)(6) of the PRAJ
b(l) National security classified information l(b)(l) of the FOIA)
b(2) Release would disclose internal personnel rules and practices of
an agency l(b)(2) of the FOIA)
b(3) Release would violate a Federal statute ((b)(3) of the FOIAI
b(4) Release would disclose trade secrets or confidential or financial
information l(b)(4) of the FOIA)
b(6) Release would constitute a clearly unwarranted invasion of
personal privacy l(b)(6) of the FOIA)
b(7) Release would disclose information compiled for law enforcement
purposes l(b)(7) of the FOIA)
b(8) Release would disclose information concerning the regulation of
financial institutions l(b)(8) of the FOIA)
b(9) Release would disclose geological or geophysical information
concerning wells [(b)(9) of the FOIA)
C. Closed in accordance with restrictions contained in donor's deed
ofgift. .
PRM. Personal record misfile defined in accordance with 44 U.S.C.
2201(3).
RR. Document will be reviewed upon request.
�Withdrawal/Redaction Sheet
Clinton Library
DOCUMENT NO.
AND TYPE
DATE
SUBJECT!I'ITLE
RESTRICTION
001. Memo
Minutes of meeting ( 1 page)
1117/96
P1/b(1)
002. Memo
Minutes of meeting (1 page)
1/17/96
P1/b(1)
003. Memo
Minutes of meeting ( 1 page)
1117/96
Pllb(1)
004. Memo
Minutes of meeting (handwritten) (1 page)
1/17/96
P1/b(1)
005. Memo
Minutes of meeting (handwritten) (1 page)
1117/96
P1/b(l)
006. Memo
Minutes of meeting (handwritten) (1 page)
1/17/96
P1/b(l)
007. Memo
Minutes of meeting (handwritten) (1 page)
1117/96
P1/b(1)
008. Notes
Hard to read handwritten notes. Will be reviewed upon researcher's
request (7 pages)
nd
RR
009. report
American Embassy Jakarta- FY 1996 Strategic Commercial Plan (6
pages)
nd
P4/b(4), P5
-- 010. Itinerary
Travel Voucher (partial) (1 page)
2/96
P6/b(6)
...-- 011. Itinerary
Travel Voucher (partial) (1 page)
1/10/96
P6/b(6)
_..-012. Itinerary
Travel Voucher (partial) (1 page)
1/10/96
P6/b(6)
COLLECTION:
Clinton Presidential Records
Domestic Policy Council
Ira Magaziner (Electronic Commerce)
OA/Box Number: 10380
FOLDER TITLE:
[International Internet Trade]
Rhonda Wilson
rw9
RESTRICTION CODES
Presidential Records Act- [44 U.S.C. 2204(a)]
Freedom of Information Act- [5 U.S.C. 552(b)]
PI National Security Classified Information [(a)(l) of the PRA]
P2 Relating to the appointment to Federal office [(a)(2) of the PRA]
P3 Release would violate a Federal statute [(a)(3) of the PRA]
P4 Release would disclose trade secrets or confidential commercial or
financial information [(a)(4) of the PRA]
PS Release would disclose confidential advise between the President
and his advisors, or between such advisors [a)(5) of the PRA]
P6 Release would constitute a clearly unwarranted invasion of
personal privacy [(a)(6) of the PRA]
b(l) National security classified information [(b)(l) of the FOIA]
b(2) Release would disclose internal personnel rules and practices of
an agency [(b)(2) of the FOIA]
b(3) Release would violate a Federal statute [(b)(3) of the FOIA]
b(4) Release would disclose trade secrets or confidential or financial
information [(b)(4) of the FOIA]
b(6) Release would constitute a clearly unwarranted invasion of
personal privacy [(b)(6) of the FOIA]
b(7) Release would disclose information compiled for law enforcement
purposes [(b)(7) of the FOIA]
b(S) Release would disclose information concerning the regulation of
financial institutions [(b)(8) of the FOIA]
b(9) Release would disclose geological or geophysical information
concerning wells [(b)(9) of the FOIA]
C. Closed in accordance with restrictions contained in donor's deed
of gift.
PRM. Personal record misfile defined in accordance with 44 U.S.C.
2201(3).
RR. Document will be reviewed upon request.
�Withdrawal/Redaction .Sheet
Clinton Library
DOCUMENT NO.
AND TYPE
SUBJECTffiTLE
DATE
RESTRICTION
..d113. Itinerary
Travel Voucher (partial) (1 page)
1110/96
P6/b(6)
~14.
Itinerary
Travel Voucher (partial) (1 page)
1/13/96
P6/b(6)
. _.,015. Itinerary
Travel Voucher (partial) (1 page)
1113/96
P6/b(6)
_)}16. Itinerary
Travel Voucher (partial) (1 page)
nd
P6/b(6)
.)117. Itinerary
Travel Voucher (partial) (1 page)
nd
P6/b(6)
)rfs. Itinerary
Travel Voucher (partial) (1 page)
3/5/96
P6/b(6)
__)}19. Itinerary
Travel Voucher (partial) (1 page)
2/7/96
P6/b(6)
_)}20. Itinerary
Travel Voucher (partial) (1 page)
217/96
P6/b(6)
_))2'1. Itinerary
Travel Voucher (partial) (1 page)
nd
P6/b(6)
/()2.2. itinerary
Travel Voucher (partial) (1 page)
nd
-'023. Memo
From Han to Greenblatt. Re: Subpoena (1 page)
2/28/96
P5
,,024. memo
From: Han, To: Greenblatt Re: Subpoena - Reply (1 page)
2/29/96
P5
@
S(b P'fhb
COLLECTION:
Clinton Presidential Records
Domestic Policy Council
Ira Magaziner (Electronic Commerce)
ONBox Number: 10380
FOLDER TITLE:
[International Internet Trade]
Rhonda Wilson
rw9
RESTRICTION CODES
Presidential Records Act- [44 U.S.C. 2204(a)]
Freedom of Information Act- [5 U.S.C. 552(b)]
Pl
P2
P3
P4
b(l) National security classified information [(b)(l) of the FOIA]
b(2) Release would disclose internal personnel rules and practices of
an agency [(b)(2) of the FOIA]
b(3) Release would violate a Federal statute [(b)(3) of the FOIA]
b(4) Release would disclose trade secrets or confidential or financial
information [(b)(4) of the FOIA]
b(6) Release would constitute a clearly unwarranted invasion of
personal privacy [(b)(6) of the FOIA]
b(7) Release would disclose information compiled for law enforcement
purposes [(b)(7) of the FOIA]
b(S) Release would disclose information concerning the regulation of
financial institutions [(b)(S) of the FOIA]
b(9) Release would disclose geological or geophysical information
concerning wells [(b)(9) of the FOIA]
National Security Classified Information [(a)(l) of the PRA]
Relating to the appointment to Federal office [(a)(2) of the PRA]
Release would violate a Federal statute [(a)(3) of the PRA]
Release would disclose trade secrets or confidential commercial or
financial information [(a)(4) of the PRA]
PS Release would disclose confidential advise between the President
and his advisors, or between such advisors [a)(S) of the PRA]
P6 Release would constitute a clearly unwarranted invasion of
·
personal privacy [(a)(6) of the PRA]
C. Closed in accordance with restrictions contained in donor's deed
of gift.
PRM. Personal record misfile defined in accordance with 44 U.S.C.
2201(3).
RR. Document will be reviewed upon request.
�From:
PETER HAN (PETER HAN)
To:
JONATHAN GREENBLATT, CAROLA MCGIFFERT, HAL:FOREST, SARA KEMP
Date:
Wednesday, February 28, 1996 10:18 am
Subject:
Subpoena
Reply requested by Thursday, February 29, 1996
Jonathan G,Carola M,Don F, Sara K
I am working on a grand jury subpoena where it asks for Melinda Yee's
travelling partners for all of her trips while she was in ITA. Many are for
advance trips either for the Secretary, Jeff Garten and for Rothkopf. Did you
accompany her on the advance trips-if so, which ones and names of others ... I
will run down her trips.
1-7/94
to China
2-8/94
to China
3-11/94
to Jakarta
4-3/95
to Haiti
5-2/94
to Singapore, Jakarta, Beijing, HK, Tokyo
6-4/95
to China
7-5/95
LA & SF, CA (BEM related)
8-5/95
Chicago (BEM related)
9-5/94
SF (BEM related)
10-6/95
Chicago, _LA, SF (BEM related for Sect. visit)
11-6/95
Denver
for Hemispheric Conf.
12-6/95.
SF, NY (BEM related)
Thanks for your cooperation.
I REALLY need this info. IMMEDIATELY for noon
status report ...
�From:
Jonathan Greenblatt
(JONATHAN GREENBLATT)
To:
PETER HAN
Date:
Thursday, February 29, 1996 9:24 am
Subject:
Subpoena - Reply
**
Proprietary
**
Just saw your note for the first time this AM.
Melinda and I both worked on
2-8/94
3-l.l/94
4-3/95
11-6/95
\
Here are the trips that
to China
(I do not recall working directly with her on this trip)
to Jakarta
to Haiti
Denver for Hemispheric Conf.
�WITHDRAWAL SHEET
Clinton Library
Collection: Domestic Policy Council
Magaziner, Ira - Electronic Commerce
OA/Box:
OA 10380/Box 7
File Folder: [Notes January 1997]
~otes
4'Notes
'3)'Notes
i) Notes
~Notes
i)' Notes
v1) Notes
Hard to read Handwritten notes.
Request, 3p
Hard to read Handwritten notes.
Request, lOp
Hard to read Handwritten notes.
Request, 7p
Hard to read Handwritten notes.
Request, 2p
Hard to read Handwritten notes.
Request, 3p
Hard to read Handwritten notes.
Request, 5p
Hard to read Handwritten notes.
Request, 3p
Archivist:
Date:
mpw
4/14/2004
Will be reviewed upon Researcher's
1121/97
Will be reviewed upon Researcher's
Will be reviewed upon Researcher's
1122/
[1997]
1128/
[1997]
1128/
[1997]
1/29/97
Will be reviewed upon Researcher's
1/30/97
Will be reviewed upon Researcher's
1130/97
Will be reviewed upon Researcher's
Will be reviewed upon Researcher's
CLINTON LIBRARY PHOTOCOPY
RESTRICTIONS
81 National security classified information [(b) (I) of the FOIA].
82 Release could disclose internal personnel rules and practices of an
agency [(b)(2) of the FOIA].
83 Release would violate a Federal statute [(b)(3) of the FOIA].
P3 Release would violate a Federal statute [(a)(3) of the PRA].
84 Release would disclose trade secrets or confidential commercial financial information
P4 Release would disclose trade secrets or confidential commercial
[(b)(4) of the FOIA].
or financial information [(a)(4) of the PRA].
86 Release would constitute a clearly unwarranted invasion of
PS Release would disclose confidential advice between the President and
personal privacy [(b)(6) of the FOIA].
his advisors, or between such advisors [(a)(5) of the PRA].
87 Release would disclose information compiled for law enforceP6 Release would constitute a clearly unwarranted invasion of personal
ment purposes [(b)(7) of the FOIA].
privacy [(a)(6) of the PRA].
PRM Personal records misfile defined in accordance with 44 USC 2201 (3). 88 Release would disclose information concerning the regulation of
financial institutions [(b)(9) of the FOIA].
.
89 would disclose geological or geophysical information
concerning wells [(b )(9) of the FOIA].
PI National security classified information [(a)(!) of the PRA].
P2 Relating to appointment to Federal office [(a)(2) of the PRA].
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�WITHDRAWAL SHEET
Clinton Library
CLINTON LIBRARY PHOTOCOP
Collection: Domestic Policy Council
Magaziner, Ira - Electronic Commerce
OA/Box:
OA 10380/Box 7
File Folder: [Notes]
J{, Notes
~Notes
Archivist:
Date:
mpw
4/14/2004
Hard to read Handwritten notes. Will be reviewed upon Researcher's
Request, 6p
Hard to read Handwritten notes. Will be reviewed upon Researcher's
Request, 2p
Pl National security classified information [(a)(l) of the PRA].
P2 Relating to appointment to Federal office [(a)(2) of the PRA].
2/25/
nd
RESTRICTIONS
Bl National security classified information [(b) (1) of the FOIA].
B2 Release could disclose internal personnel rules and practices of an
agency [(b)(2) of the FOIA].
P3 Release would violate a Federal statute [(a)(3) of the PRA].
B3 Release would violate a Federal statute [(b )(3) of the FOIA ].
P4 Release would disclose trade secrets or confidential commercial
B4 Release would disclose trade secrets or confidential commercial financial information
or financial information [(a)(4) of the PRA].
[(b)(4)ofthe FOIA].
PS Release would disclose confidential advice between the President and
B6 Release would constitute a clearly unwarranted invasion of
personal privacy [(b)(6) of the FOIA].
his advisors, or between such advisors [(a)(5) of the PRA].
P6 Release would constitute a clearly unwarranted invasion of personal
B7 Release would disclose information compiled for law enforceprivacy [(a)(6) of the PRA].
ment purposes [(b )(7) of the FOIA].
PRM Personal records misfile defined in accordance with 44 USC 2201 (3). B8 Release would disclose information concerning the regulation of
financial institutions [(b)(9) of the FOIA].
B9 would disclose geological or geophysical information
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�WITHDRAWAL SHEET
Clinton Library
Collection: Domestic Policy Council
Magaziner, Ira - Electronic Commerce
OA 10380/Box 7
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OA/Box:
File Folder: [Notes]
vrf.·Notes
'Notes
3) Notes
4) Notes
Hard to read Handwritten notes.
Request, 3p
Hard to read Handwritten notes.
Request, 6p
Hard to read Handwritten notes.
Request, 5p
Hard to read Handwritten notes.
Request, 4p
Archivist:
Date:
mpw
4/14/2004
Will be reviewed upon Researcher's
nd
Will be reviewed upon Researcher's
2/12
Will be reviewed upon Researcher's
2/13/97
Will pe reviewed upon Researcher's
2/13/97
CLINTON LIBRARY PHOTOCOPY
RESTRICTIONS
Bl National security classified information [(b) (1) of the FOIA].
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[(b)(4) of the FOIA].
or financial information [(a)(4) of the PRA].
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PS Release would disclose confidential advice between the President and
personal privacy [(b)(6) of the FOIA].
his advisors, or between such advisors [(a)(S) of the PRA].
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ment purposes [(b )(7) of the FOIA ].
privacy [(a)(6) of the PRA].
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�WITHDRAWAL SHEET
Clinton Library
CLINTON LIBRARY PHOTOCOPY
Collection: Domestic Policy Council
Magaziner, Ira - Electronic Commerce
OA 10380/Box 7
OA/Box:
File Folder: [}\ Framework for [International] Electronic Commerce Drafts] [2]
~Notes
Hard to read Handwritten notes. Will be reviewed upon Researcher's
Request, 6p
Archivist:
mpw
Date: 4/15/2004
nd
RESTRICTIONS
Bl National security classified information [(b) (1) of the FOIA].
B2 Release could disclose internal personnel rules and practices of an
agency [(b)(2) of the FOIA].
B3 Release would violate a Federal statute [(b)(3) of the FOIA].
P3 Release would violate a Federal statute [(a)(3) of the PRA].
B4 Release would disclose trade secrets or confidential commercial financial information
P4 Release would disclose trade secrets or confidential commercial
[(b)(4) of the FOIA].
or financial information [(a)(4) of the PRA].
B6 Release would constitute a clearly unwarranted invasion of
PS Release would disclose confidential advice between the President and
personal privacy [(b)(6) of the FOIA].
his advisors, or between such advisors [(a)(5) of the PRA].
B7 Release would disclose information compiled for law enforceP6 Release..would constitute a clearly unwarranted invasion of personal
ment purposes [(b)(7) of the FOIA].
privacy [(a)(6) of the PRA].
PRM Personal records misfile defined in accordance with 44 USC 2201 (3). BS Release would disclose information concerning the regulation of
financial institutions [(b )(9) of the FOIA].
B9 would disclose geological or geophysical information
Pl National security classified information [(a)( I) of the PRA].
P2 Relating to appointment to Federal office [(a)(2) of the PRA].
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�WITHDRAWAL SHEET
CLINTON LIBRARY PHOTOCOP
Clinton Library
Archivist: rfw
Collection: Domestic Policy Council, Ira Magaziner
OA 10381/Box 8
OA/Box:
[A Framework for International Electronic Commerce - Drafts] [5]
File Folder:
·
Date: 8/23/04
1. Report
A Framework for Global Electronic Commerce, Draft #8. Hard to read
handwritten notes. Will be reviewed upon researcher's request, 1p (partial)
11122/96
2. Report
A Framework for Global Electronic Commerce, Draft #8. Hard to read
ha;1dwritten notes. Will be reviewed upon researcher's request,' 1p (partial)
11122/96
3. Report
A Framework for Global Electronic Commerce, Draft #8. Hard to read
handwritten notes. Will be reviewed upon researcher's request, 1p (partial)
11122/96
4. Report
A Framework for Global Electronic Commerce, Draft #8. Hard to read
handwritten notes. Will be reviewed upon researcher's request, 1p (partial)
11122/96
5. Report
A Framework for Global Electronic Commerce, Draft #8. Hard to read
handwritten notes. Will be reviewed upon researcher's request, 1p (partial)
J 1/22/96
RESTRICTIONS
Bl National security classified information [(b) (I) of the FOIA].
B2 Release could disclose internal personnel rules and practices of an
. P2 Relating to appointment to Federal office [(a)(2) of the PRA].
agency [(b)(2) of the FOIA].
B3 Release would violate a Federal statute [(b)(3) of the FOIA].
P3 Release would violate a Federal statute [(a)(3) of the PRA]. ·
B4 Release would disclose trade secrets or confidential commercial financial information
P4 Release would disclose trade secrets or confidential commercial
[(b)(4) of the FOIA].
or financial information [(a)(4) of the PRA].
B6 Release would.constitute a clearly unwarranted invasion of
PS Release would disclose confidential advice between the President and ·
personal privacy [(b)(6) ofthe FOIA].
his advisors, or between such advisors [(a)(S) of the PRA].
B7 Release would disclose information compiled for law enforceP6 Release would constitute a clearly unwarranted invasion of personal
ment purposes [(b)(7) of the FOIA].
privacy [(a)(6) of the PRA].
B8 Release would disclose information concerning the regulation of
financial institutions [(b)(9) of the FOlA].
PRM Personal records misfile defined in accordance with 44 USC 2201 (3). B9 Release would disclose geological or geophysical information
concerning wells [(b)(9) of the FOlA].
PI National security classified information [(a)(l) cifthe PRA].
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DRAFT #8 -- November 22, 1996
:: •
government-owned telephone companies. These services also are often priced
at excessive rates, inflating the cost of data services to customers;
Interconnection: On-line service providers must be able to interconnect with
the networks of incumbent telecommunication companies so that information
can pass searnlessly between all users of the network. Monopoly telephone
companies often price inter-connection well above cost, refuse to interconnect
because of alleged concerns about "network compatibility" or "absence of
need." As well, service providers are often mandated to interconnect to
monopolistic or dominant telecommunications companies, and are not free to
build their own infrastructure.
Internet voice and multimedia: Officials of some nations claim that "real time"
services provided over the Internet are "like services" to traditionally regulated
voice telephony and broadcasting, and therefore should be subject to the same
regulatory restrictions that apply to those traditional services. In some
countries, these providers must be licensed, as a way to control both the
carriage and content offered. Such an approach could hinder the development
of new technologies and new services.
In addition, countries have different levels of telecommunications infrastructure
development, which may hinder the international provision and use of some Internet-based
services.
To address these issues, the Office of the United States Trade Representative IS
pursuing WTO negotiations to ensure global competition in provision of basic
telecommunication services and to address the many underlying issues affecting Internet
service providers.
The United States also will ensure that no actions taken by the WTO's Group on Basic
Telecommunications (GBT) will adversely affect the provision of Internet services. The
existing structure of telecommunications regulation reflects a history of monopoly and
government control which does not exist in the open, competitive Internet market. Applying
regulations designed for basic telecommunications to the Internet could stifle the deployment
of new technologies and services.
Other venues, including bilateral exchanges with individual foreign governments,
regional fora such as APEC and CITEL, and multilateral fora such as the OECD and the
International Telecommunications Union (ITU), also will be used for international discussions
of telecommunications-related Internet issues. These issues include Internet governance,
terms and conditions governing the exchange of traffic, and reliability. US Government
17
\
CLINTON LIBRARY PHOTOCOPY
�~~~~~.db~
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JA . ,
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~ JRAFT #8 --November 22, 1996
\_ ~y \r~ \rW'
i~fluence
positions at these tganizations that might
Internet pricing, service delivery options
or technical standards will reflect the principles established in this paper and US Government
representatives should survey the work of their study groups to ensure that this is the case.
8.
CONTENT
The U.S. government has long supported the broadest possible free flow of
information across international boarders. "Content" is defined broadly to include most
material now accessible and transmitted through the Internet, including World Wide Web
pages, news and other information services, virtual shopping malls, software, and
ntertainment features, such as audio and video products.
The United States will pursue negotiations to ensure that measures, policies, and
regulations that limit the ability of content providers to transmit their products through the
Internet are promulgated only when necessary and implemented in a manner that minimizes
trade distortions. This approach is consistent with our ongoing position in trade negotiations
in the WTO. There are five priority areas of concern:
•
Foreign content quotas -A number of countries (e.g., Australia, Canada, the
EU/France, Mexico) currently require that a specific proportion of traditional
terrestrial broadcast transmission time be devoted to "domestically produced"
content. Problems relating to use of the Internet could arise if changes were
proposed to the definition of "broadcasting" that would extend these current
regulations to "new services," which would include the Internet. Countries also
might decide to regulate Internet content and establish restrictions under
administrative authority, rather than under broadcast regulatory structures.
•
Regulation of advertising - Some countries regulate television advertising in a
manner that would stringently restrict the language, amount, frequency, and
duration of teleshopping and advertising spots. While recognizing legitimate
cultural concerns, these reasons should not be invoked as anti-competitive
inhibitors to trade on the Internet;
•
Regulation of content (i.e. pornography, violence, business information) Many
countries including the United States, are cop.sidering or have adopted laws to
restrict access to certain types of content through the Internet. For example,
the EU recently ordered a study on mechanisms to control access by children
to, and provision of criminal penalties for, transmitting offensive material over
the Internet. China restricts transmission of business information through the
18
CLINTON LIBRARY PHOTOCOPY
�~ w\~ ~
·'-
~~"'l.zo
~~~ e·Yh~ ~I~~
DRAFT #8 -- November 22, 1996 ~ ·
Internet. Because of cultural and political di ences, countries emphasize
their individual concerns about what content on
prohibited. These multiple interests may result i
US providers
attempting to enter certain national markets;
•
Regulation to prevent fraud: Recently, there have been a number of cases
where fraudulent information on companies and their stocks, and phony
investment scheines have been broadcast on the Internet. The appropriate
federal agencies (i.e. FTC, Seclirities and Exchange Commission) are
determining whether new regulations are needed to prevent fraud through
the Internet;
•
~
Differences in defining "seditious" material: Companies wishing to do
business over the Internet, and to provide access to the Internet (including U.S.
on-line service providers with foreign affiliates or joint ventures), are concerned
about being subject to liability based on the different policies of every country
through which they transmit their information. This is especially a problem
with information considered as "seditious propaganda," but extends to social
differences as well. Compuserve, for example, recently removed several
Internet newsgroups from its services worldwide in response to complaints
from prosecutors in Germany.
To address these concerns, the United States will:
•
Develop an informal dialogue with key trading partners on common Internet
public policy issues such as advertising, hate speech, pornography, fraud,
violence, and sedition to ensure that differences in national regulation,
especially those undertaken to foster cultural identity, do not serve as disguised
trade barriers;
•
Use such a dialogue as a springboard for informal ~iscussions on how to
implement the Gil principle of promoting diversity of content, including
cultural and linguistic diversity, through the Internet;
Promote the use of industry (e.g. program content providers, on-line providers,
advertisers) self-regulation and rating systems, andtechnical solutions to
empower parents and other users to resolve contentious access issues (e.g.
children's access, pornography, and violence);
•
\:\\~. (\ ~~~\)~ &\~·~
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19
ClJ~TON LIBRARY PHOTOCOPY
�DRAFT #8 -- November 22, 1996
•
Discuss foreign content quotas in the broader context of economic and social
implications of the Gil rather than as an isolated US market access (or trade)
issue, which can be counterproductive;
Federal agencies such as the U.S. Trade Representative, the Commerce Department
(NTIA) and others have already engaged in such efforts to promote such positions, through
both bilateral and multilateral channels, including through the Information Society and
Development Conference, the Latin American Telecommunications Summits, and the Summit
of the Americas process, as well as APEC Telecommunications Ministerials. All agencies
participating in such fora will focus on pragmatic solutions based upon the principles in this
::;( ~~,/ ~
paper to issues related to content control.
(
<j)J.M>>. lJO
.
TECHNICAL STANDARDS/
.
1(1j1}S \.S
/41,J~ l ~
1"\/
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OIL
Standards and other mechanisms for interoperability are critical to the long term
success of the Internet as a commercial medium. Standards are important because they can
allow products and services from multiple vendors to work together, or interoperate. They
· also encourage competition and reduce uncertainty in the global marketplace.
.~d..
4wV?Sk'OVl;9 i'rrmature standardization, however, can "lock in" users to outdated technology.)
I~.P-1~ (lPJ~
(
Standards also can be used as a non-tariff barrier to trade, in essence to "lock out" nonindigenous businesses from a particular national market.
To ensure the growth of global electronic commerce over the Internet, standards will
be needed in areas such as:
•
Electronic payments;
•
Security (confidentiality, authentication, data integrity, access control, nonrepudiation);
•
Security services infrastructure (e.g. public key certificate authorities);
•
Electronic copyright management systems;
•
Electronic catalogues;
•
Video and data-conferencing;
20
CLINTON LIBRARY PHOTOCOPY
.
~·
�DRAFT #8 -- November 22, 1996
•
High-speed network technologies (e.g. Asynchronous Transfer Mode, SONET);
•
Digital object and data interchange
There will not be one standard for every product or service associated with the Gil .and technical standards will not necessarily be mandated. In some cases, multiple standards
will compete for marketplace acceptance. In other cases, different standards will be used in ·~
different circumstances. For example, a "micro-payments" system needs to have low
transaction costs and does not need to be as secure as an electronic payment system used to
transfer millions of dollars.
I~
iJP
stand~
The United States believes that the marketplace should determine technical
not governments. Technology is moving too rapidly for governments to try to establish VLfds,/
technical standards governing the Internet. To attempt to do so would only risk inhibiting
technological innovation.
Indeed, one of the reasons the Internet has grown so rapidly has been the prevalence
of voluntary standards developed and promoted by industry, not by governments, and an
expeditious process of development and acceptance. These standards flourished because of a
non-bureaucratic system of development managed by technical practitioners who require
demonstrated deployment of systems incorporating a given standard prior to formal
acceptance. However, only a handful of countries allow their private sector to develop their
own standards; most rely on government-mandated solutions, causing these nations to fall
behind on the technological cutting edge.
Under the leadership of the National Institute of Standards and Technology (NIST)
and other technical agencies, the United States has encouraged the development of voluntary
standards through consortia, testbeds and R&D activities. The US government also has
adopted a set of principles to promote domestic and international voluntary standards.
Numerous private sectorbodies have contributed to the process of developing
-~
volunta·~·
standards which promote interoperability. Organizations such as the Electronic
I
1:)
Ma~·l ciation, the Institute of Electrical and Electronics Engineers, the Internet
. 1,. A~
En ·
in Task Force, American National Standards Institute (ANSI) and its accredited
v., ... J
~~ II.~~c ical ~~mmit;res, the Information Infrastructure Standar.ds panel, and the Cross Industry ~
4J~V\-w~~ ·~ong others, are performing important work in this area.
~
.
'- tJ
~
the United States will continue the current approach and urge other governments Jo
do the same. While no formal government sponsored negotiations are called for at this time,
the United States should use various fora (i.e., G-7, OECD, the International Standards
~ \S C'~
.
21
CLINTON LIBRARY PHOTOCOPY
1~
~
�WITHDRAWAL SHEET
Clinton Library .
~tlN~ON ttBRARY PHOTOCOPY
Collection: Domestic Policy Council,
Archivist: rfw
fylagaziner, Ira
OA 10353/Box 8
OA/Box:
File Folder: [A Framework for International Electronic Commerce -:- Drafts [6]
Date: 9/22/04
· ·, .··:;;:;~.\·:.: ,.· . ·:::,gm~y 9~\lJ/ifiT~E:
·.i . .
1. Memo
To Keun Ho Bae from Ken Clark re: draft paper, 4p
10/9/96
PS
2. Memo
To Susan G. Esserman from John T. Masterson, Jr., re: draft report, 3p
10111/96
PS
3. Fax
To Jonathan Greenblatt from Jana Gagner re: Magaziner report, 2p ·
10/30/96
PS
RESTRICTIONS
Bl National security classified information [(b) (I) of the FOlA].
82 Release could disclose internal personnel ruli:s and practices of an
agency [(b)(2) of the FOlA].
B3 Release would violate a Federal statute [(b)(3) of the FOlA].
P3 Release would violate a Federal statute [(a)(3) pfthe PRA].
B4 Release would disclose trade secrets or confidential commercial financial information
P4 Release would disclose trade secrets or confidential commercial
[(b)(4) ofthe FOlA].
or financial information [(a)(4) of the PRA].
86 Release would constitute a clearly unwarranted invasion of
1'5 Release would disclose confidential advice between the President and
personal privacy [(b)(6) of the FOlA].
his advisors, or between such advisors [(a)(5) of the PRA).
B7 Release would disclose information compiled for law enforceP6 Release would constitute a clearly unwarranted invasion of personal
ment purposes [(b)(7) of the FOlA].
· privac~ [(a)(6) of the PRA).
B8 Release would disclose information concerning the regulation of
financial institutions [(b)(9) of the FOIA].
PRM Personal records misfile defined in accordance with 44 USC 2201 (3). B9 Release would disclose geological or geophysical information
PI National security classified information [(a)(l) ofthe PRA].
P2 Relating to appointment to Federal office [(a)(2) of the PRA].
f"f"',nf"Prninn HIPIIc rfh\fO\ nfthP J:;()f Al
.
�•
.v '
ED STATES DEPARTME
Office of the General Counsel
Wa!>hington, D.C. ::!0230
,w
~
'~~
October 9, 1996
- _
Keun flo Bae
TO:
.
~
....
FROM:
Ken Clark
OAGC/L&R
SUBJECT:
Draft Paper: "A
Frc~.mework
for Internationa.l Electronic Commerce."
Mike Levitt. aske.d me to coordinate our office's comments on the draft paper. We did not
foctJS on intellectual property issues, a.'i you will dmthtless be hearing from PTO regarding
them.
We think the best--developed parts of the paper are those dealing with tax· and le~aJ issues,
where the paper recommends a more or less "business.as usual" approach coupled with some
international standardization such as~· model code like our Uniform Commercial Code. We
also lind no significant problems with the sections on electronic payment mechanisms and •
. encryptjon/seclirity.
We lind the paper weak in discussing the following areas: (1) how the increasingly crowded
Inten1et will ohta.in expanded capacity and who will pay for it [This is n<'Jt even mentioned!;
(2) whether some economic regulation may he necessary to ensure access to the expanded
Gil on fair terms; (3) ·how to approach other regulatory issues such as censorship,
competition between "real-time" services and long-distance phone service, broadcast-type
content regulation, and the like. These issues all involve defining the appropriate role of
government witJ1 respect to specific tough questions involving the Gil, as opposed to
generalizing about whether government or "market forces" should priniarily regulat~, or
"lead," activity on and affecting the Internet.
In describing even the "ideal., government·role, the paper seems to assume too readily that
appmr1chcs we consider appropriate for the United States (such as voluntary privacy codes
and ensuring nearly cost-free, universal access to the GU) arc appropriate international
models when relevant conditions (such as the existence of competing Internet acc~o-:ss
providers) differ from country to country.
Here are some specit!c comments, in the order they arise:
The paper fails to inention what is perhaps the biggest unresolved problem
with the Interl1et: where will the money come from to pay for its needed expansion,
o
CLINTON LIBRARY PHOTOCOPY .
�and after the money is spent, w.ill users have ~o pay fees to reimburse for this heavy
investment, and if so, will payments for access to this unique resource have to be
regulated?
'The Gil" and "The Internet" are spoken of consistently in the drctft paper in terms of £he
present "matrix of interconnected computer networks using the Intemet Protocol (IP)." The
capadty of this current network is spoken of as if it were unlimited; whereas it is already
becoming overcrowded and less than i.de-.al for fast bulk trc~.nsmissi(ms. The current Internet
certainly cannot welcome all potential users on its present gratis and "open anus•• basis.
The original backbone of the Internet wa.'5 financed by the U.S. Government and was
available gratis. Where the money for needed new capacity will come from and how this
will affect the internet user needs to be addressed. (A privately-fmanced international
highway with no competitors would have to be regulated, and the paper now speaks as if
reb'lilation can be avoided as a matter of policy. This is not necessarily so, unless -- among
other issues -- the t1nancing problem is addressed.)
1
Near the top of page 2, the list of potential areas of regulation of the Internet
o
should not· include •• non-tariff barriers to market entry."
This is not parallel with the other items on. the list.. That is. the differences between
countries' regulations can CONSTITUTE non-tariff barriers, but they arc not an ''area of
regulation."
~
/
.
·
o
On page 6, the following sentence needs some work to avoid sounding like
advocacy of intmsive governmental tactlcs:
In the near term, case-by-case .su~rvision of the entities experimenting
electronic payments is preferred.
in
o
On page 6, the following sentence uses the tenn "government guidance" with
euphemistic irony:
''From a longer temi perspective, however, some govcnunent guidance may he
needed on issues that the markclplace alone may not he well equipped to address.
The following sentence at the bottom of page 6 could be read as sugge&ting
o
manipulation' of the public's knowledge of plans and policies:
.
~timing
of sucb government action and pronouncements in this area will be
particularly sensitive.
.
.
2
CLiNTON LIBRARY PHOTOCOPY
�·.
o
On page 10, the "PTO Version" and the "State version" of certain language
are set out foe comparison. While PTO would know the underlying subs~ance of this
"issue'' (Wdo not.), it might be noted that the State Department l~nguage seems to
rc.'S~rve/6ur right to seek U.S.-biased international rules, whereas PTO's language
s~.djrected towa~ ill.temational mlcs that allow the U.S.·{and perhaps other
. ~eountnes) to handle mternal problems as we see necessary.
.
o
· On page 13, a paragraph begins: "To ensure that disparate privacy policies
around the world provide adequate privacy protection .and do not impede the flow of
personal data on the Internet, the United States should adopt a two-tiered privacy
. A~tcgy." This sentence is difficult to understand: What are privacy p0lici.es
~pposed to do if NOT to "impede the flow of personal data" in appropriate cases?
o
The following sentence in the same paragrctph also raises problems:
At the same time, the United States should also engage its key trading partners
in a discussion t.o build .support for a market baf)ed approach to privacy, ·
along the lines of the framework e.~tahlished by the prival'.y principles.
Fir~t,
the phrase, "a market based approach to privacy" could be criticized as an oxymorcnj,
as market forces are arguably the cause of the most d~turhing new incursions into the
average citizen's privacy. ·Second, we should offer our principles for consideration
· inLemationally but probably not immediately propose them for international adoption.
Among other i.ssues, th~re could be much debate as to whether firms will voluntarily limit
the amount of data they collect on individuals, as the privacy principles imply. We would
suggest substituting the following language for the underscored pa11 oflhe above-quoted
·"-1..\~enten~c: "aimed at developing consensus on ar1 appr~ach tu ~nsuring adequate privacy
/ "-..j3rotcctH.)OS on the Gil.''
.
·
·
.
·
/
o
Thefollowing sentence on page 14, wit.hout_some qualification, could mise
eyebrows:
Since ... , the Administration consistently h3.s wo.Iked to liberalize export
controls for commercial encryption products.
PJease revise to say something like: " ... the Administration has worked Lo liberalize
export controls <.m commercial encryption produ~1s to the maximum extent possibl~
consistent with legitimate law enforcement and national security needs."
3
CLINTON LIBRARY PHOTOCOPY
�'
.
'
~·
/
~
On page 16, the bullet on "Internet voice and multimedia" seems to confound
t o issues: (1) whether real-time voice, and ''chat'' functions unfaix:ly compete with
se vices provided by phone companies; and (2) whether these services or imagetransmission are ''like" those to which broadcasting-type (i.e., content) regulation
traditionally applies. Each i.s.~ue is complex and deserves more th~n a bullet. (For
example, hefore opposing regulatlon in the ease of i.ssue #1 , Lhe paper needs to deal
with the investment-for-expansion issue noted earlier in these comments.)
-
o t f h e next-to-last paragraph .on page 16 adopts a strident rhetoric and -- for
rea ns already mentioned in connection with financing of the Internet and .
"
)11 sidization of same services -- substantively oversimplifies the issue of whether
·
\_/~cess to imemet services should "(always) remain outside the scope of basic
.
telecommunications regulations." We think a more bala~ced discussion here would be
. helpful -- or drop the paiagraph.
cc: Mike Levitt
Barry Bird
Pete Dalmut
Beth Van Ha:nswyk
Eugenie Barton
4
CLINTON LIBRARY PHOTOCOPY
�,
.
UNITED STATES DEPARTMENT OF COMMERCE
Office of the General Counsel·
OFAC'..E OF THE CHIEF IXIUNSEL FOR INTEHNA IIUNAL L;UMM!:.:Htl:
WoGhington. D.C. 20230 .
October 11, 1996
MEMORANDUM FOR:
Susan G. Esserman
V
. · ' , , Roberts Lewis("\\~
Chief Counsel forInt~.
Commerce
John T. Masterson,
l~
FROM:
Deputy Chief Counsel'~· I~temational
Commerce
SUBJECT:
Draft Report on "A Framework for International
Electronic Commerce"
Attached are copiesofthe above-captioned draft report and attachments. "With our comments .
noted thereon. We would particularly note the patent proposals on p. 11 of the draft report, which
are· phrased in a way that may well create seri.ous political controversy.
·
The report calls for the establishment of"intemational standards for determining the validity of a
patent claim" and for the holding of trilateral and World intelleetual Property Organization
(WJPO) conferences on this topic. From my discussions with staff of the Office of Legislation and
International Affairs at the U.S. Patent and Trademark Office, it is my understanding that this
proposal is meant to establish standards on how literature on the Internet can be used to establish
prior art for novelty (35 U.S.C. Sec. 102) and non-obviousness (35 U.S. C. Sec. 103) purposes.
However, as phrased, the proposals might be read as implying that the U.S. is contemplating
moving from a first to in~ent to a first to file patent system and reentering some form ofWIPO
patenfharmonization negotiations. As you know, Secretary Brown discontinued U.S.
Government participation in the patent harmonization talks because of the controversy generated
within the patent bar and the small inventors community. In addition, any possible move (or even
the remotest hint of a move) from a first to invent to a first to file basis for awarding patents is
very controversial, especially with small inventors.and their Congressional supporters.
I recommend that this provision be rewritten by PTO to make it absolutely clear that the U.S.Is
offering only narrow Internet-related prior art proposals, and is not considering changing to first
to file or reentering the wrPO Patent Harmonization negotiations as an active participant.
!
CLINTON LIBRARY PHOTOCOPY
�10/0(/08.
•.
-
--
WRITE ROUSE
10:43
11.1011/022
ORAFT #5 ··October 3, 1996.
4.
INfEIJ&CTUAL PROPERTY r Q,O!ECIION
Coil1IIll::~c on tho Intomet often will involve the: sale and liceosing of intellectual
er~vitonment
sell~s
propeny. Ta promote on cff'eeu"e
fllr con'UUCrcc.
must !mow that their
inl:ellc::cloal property vrill not be pirated and buyers mu$t know that they are obtall1lng
Kuthc:ntic products and not !'irate coptes.
For this rt"~'lon, lntemaliunal agrccrnen~ that e$tablish' clear and effective copyright;
pa.tcnt and. trademark protectiOll arc necessary to prote.cT. ·against piracy and 'fraud. ·While
·technical means ofprul.c:~.;tion, 5'\lCh as encryption. can help combat pir~cy, on rulcquate and
effective legal fram¢WOrk abo is nec:essai)' to rteter piracy ~nd fraud and to provide etlective
legal ~course when these oriines c!o oCCl•r.
•.
Copyrights
There are several treaties that cstabli9h international nniiilS for the protection of
copyrights.
notably the Bcnu; Convention for tht= Protection of Literary and Artistic
Works. These treaties link. nearly all mnjor trading nrttions 8Dd provide them with a means: ot·
protecting. under their awn iaWll. oa.eh other1!: copyrighted works and :~ound recordings.
Althnueh these c.rtatics do csto.blish certain minimum levels of protection. they need tn be
updated 10. 21CCOtmt for ehonges in tecbnnlogy, such li:i the tcc;;hniclll challenges I"resented by
mo~
the
on..
·
· .With the leadership of the United SL!1tcs, the members of the World lntellecl
· PJO~~ ~~ariization. (WIPO) are wodcing to cstnblish. three new inu:matlomu agic
a · siglcf·protacol to. the Berne Convc;ntiott, a. new agreement for the prulection. of und f\
..~r,rding producers and pc:rfcmners, and a. new agree.ment forth~. ro:tion_of certain
.
'""' .~aat:abases.
·
··
. ·
·
lhe Uuit<:d Stat<> government should seek tO· collCiud< these
through WIPO in wo.ys which:
eos\lre c:opyr1eht protection for computer prosrams
inr.=oac:~
ft~ literarY work!i~
.I
~
CLiNTON LIBRARY PHOTOCOPY
�'·''
,_o/04/98
Ill OlJ/022
WHITE BOUSE
'5'2024565557
-·-·-
.
. (~
\r-9)~·
~
·J.. · ORA.FT #5 _.;. October 3, 1996
·-l
IO~"b.Ca;J(~f"~- ~ ~rl)
~
Require member countries to provik'e adequate end effective protection t6r
subject matter importent to the developnu:nt and success of the Glt.
•
·.
Establish international standards .for dctemllnin& the validity nf .a patent c\aim.
~~i~~~:: The U;ted Sta::ll pursue thesemeet for trilateral c:onfcrenecs each year EuropCan•.~il~
objectives in rwo fora. Officials of the
Japanese and United StateS Patent Offices
foster
•
~
·&J.C~~
to
cooreration on patent-related issues. The United States will reooromend at die_ next mee\Ulg .
that a special committee be established to make recommendations on Gil-related patent issuesc;.,.
~~~-:1
~~
witliin the next year.
. One bundn:d countries and international intergovernmental organizationS participate as _____
members of WlPO's pennanent c:ommitll:e on industtial propertY infotmation (PCIPl). The
nited States will attempt to establish a working group of this organization 10 address Gil·
~~,;:~......4::r'!ZN.
~IJ!!::1.Hwl.A">related
...
patent issues ns well.
.
Trademark
~~~~i:;)Unilar Because trademark rljlhts are national in scope, cooflicts !llliY arise where different .or
tlu: >llllle
traderoarlcs are oVo'lled by different parties in different countries. or when
;;j
untries apPlY different standards for detennini!ll! infringement. Conflicts also may arise
~~~~'?:.here tet!DS arc in general use in one countrY, but testri<ted as either trudemru:ks or
. ~ geagraphical indication!~ in· snnther country.
With regard to access to the GU. eonf\i<I.S have arisen ond may con\Ulue to arise
_ where trudernark owners are aware that lhiid parties have registered Internet domain
thot arc. identical to their trademarks- M. Jntomet domain name, which identifies an eddxl:ss
an the Internet. is not, per se, inteUecrual property (i.e., a ttadematk). However, en Internet
domain mune may be used as a tradelnark. in which case it would be entitled to protection"'
=•• ·
a trademark under r:J<isting laws.
·
·
The United States will lead tlu: effort to establish on international forum for adclrcs.<ing
t1u: Internet domain name issues related to trademark proteCtion. The ;ssucs adcb:essed in
such a fotilm would include, but would not be limited to, copllicts that may arise where:
•
The same or similar trademarks are owned by different panies in different
countries.
CLlNTON LIBRARY PHOTOCOPY
11
�OCT-30-1996
11:52
NTIA CHIEF COUNSEL
P.02
.
NTIA/OIA Comments on Oclober3, 1996 draft of the Magaziner paper
7
rr;)
i
fojj~\
I -
rvt_g_il__~
1. Page 3, Section 5: The heading for this section currently reads "The Internet should
be a truly international medium". In view of the already international scope and nature
of the Internet, the title should be amended. What follows is one suggestion for a
·possible new heading, "Electronic Commerce over the Internet should be facilitated on
an international basis."
d~
2. Page 12, final para. unde;the trademark section: The following paragraph shou
. be added: "Other agencies may play a role, pending the identification of such a n ed 9\r;t
by industry, in working with other governments and/or international institutions on
(.O\Miil v"international aspects of domain name registration." This will serve as a marker in the ' · ..J
event the USG is approached by industryto assist in addressing international asp cts, bel
other than trademark issues, of international Internet domain name registration.
1
3. R ge 16, ~econd full paragraph: ~hi~ paragraph should ~e amend.ed to reflect the .
i\
U
's on·gotng and current efforts wtthm the WTO to negotiate a bas1c telecom
trW
greement. The text should read as fo
address these issues, the Office of the o\-lvy..n...u\,
United States Trade Representativ is purs~ing
0 negotiations to ensureat~. l-a nJle_Q--c'Ompetitiordrrme rr?VI on o astc e~umcattons servtces, which recognize the
{'-~(}. ·
'' h.
..
critical importance onransparent, non-discriminatory, and effective interconnection
regulaljons."
·
.p0rsv~'' ·
w.·
4.
16, third full paragraph: Although this paragraph appears intended to separate
I rnet iSJUes from the ongoing wro basic telecom negotiations, it nonetheless
plies tlat there will be "\NTO market access negotiations for Internet service
provi ers". Such a statement could be interpreted as USG support for VVTO
ne tiations on Internet related issues, which would be both premature and
nappropriate. As such, the phrase "WTO market access negotiations for" should be
delete 1f0m the first sentence in this paragraph.
·
ge1~,
final paragraph: After the words "Other venues, such as ... '' add "bilateral
--------....changes with individual foreign governments and".
~~~·
,-D~
~.
6. Page 16, footnote: This ootnote should be put in brackets, pending confirma.tio. n
from the U.S. mission to the OECD regarding the status of this working group. The
USG has some outstanding concerns regarding the composition of the group and its
,-;xpected output ~the ~orking group has not been open to all interested parties, nor
~to government representatives of OECD members; as such,.its status as an "experts11
(t"'S"'! · group providing guidance to OECD member governments is currently in qu~stion).
/;·
,
~h
' rv
7. Page 17, second paragraph: This paragraph suggests that the USG is planning t o / rJ}
undertake trade negotiations on Internet content issues as the primary/sole approach o /"<!. cc
\ / \ addressing and resolving differences in national regulations regarding content. Unles
~ the USG has already initiated such negotiations under the WTO, the paragraph shoul
be modified to indicate that WTO negotiations are a possible option that could be
CLINTON LIBRARY PHOTOCOPY
�OCT-30-1996
11:53
NTIR CHIEF COUNSEL
P.03
pursued. Changing the opening paragraph in this fashion would be more consistent
with the final paragraphs in this section, which more appropriately suggest a variety of
approaches the U.S. can and should pursue with foreign governments on the content
·
issues.
--
;;:U'.
8 .. Page 18, final paragraph under the Content section: Consistent with the commen(
above, this sentence should be modified to indicate that the USG may undertake
negotiations. It may ultimately be determined that such negotiations would NOT be \
· .
appropriate, and that efforts to promote self-regulation models would be the primary "------,.....
focus of USG efforts.
·
wrp
drafted by: S.Settle, NTIAIOIA
10/28/96
CLINTON LIBRARY PHOTOCOPY
�WITH~RAW~L SHEET CLINTONLIBRARYPHOTOCOPY
Clmton Library
Collection: Domestic Policy Council, Ira Magaziner
Archivist: rfw
OA/Box:
OA 10381/Box 9
File Folder: [A Framework for International Electronic Commerce - Drafts] [7]
Date: 8/23/04
1. Report
A Framework for Global Electronic Commerce, Draft#~. Hard to read
handwritten notes. Will be reviewed upon researcher's request, 5p (partial)
11127/96
2. Report
A Framework for Global Electronic Commerce, Draft #8. Hard to read
handwritten notes. Will be reviewed upon researcher's request, 5p (partial)
11127/96
RESTRICTIONS
PI National security classified information [(a)(J) of the PRA].
P2 Relating to appointment to Federal office [(a)(2) of the PRA].
81 National security classified information [(b) (I) of the FOIA].
82 Release could disclose internal personnel rules and practices of an
agency [(b)(2) of the FOIA].
P3 Release would violate a Federal statute [(a)(3) of the PRA].
83 Release would violate a Federal statute [(b)(3) of the FO!A].
P4 Release would disclose trade secrets or confidential commercial
84 Release would disclose trade secrets or confidential commercial financial information
[(b)(4) of the FOIA].
or financial information [(a)(4) of the PRA].
PS Release would disclose confidential advice between the President and
86 Release would constitute a clearly unwarranted invasion of
his advisors, or between such advisors [(a)(S) of the PRA].
personal privacy [(b)(6) of the FOIA].
· P6 Release would constitute a clearly unwarranted invasion of personal
87 Release would disclose information compiled for law enforcement purposes [(b)(7) of the FOIA].
privacy [(a)(6) of the PRA].
88 Release would disclose information concerning theregulation of
financial institutions [(b)(9) of the FOIA].
PRM Personal records misfile defined in accordance with 44 USC 2201 (3). 89 Release would disclose geological or geophysical information
�•' .... ~ ...
World trade involving computer software, entertainment products (motion ·pictures,
videos, games, sound recordings), infonrtation services (databases, on:..line newspapers),
-technical information, _product licenses, and professional services (businesses and technical
consulting, accounting, arcliitectura:l design, legal advice, travel services, etc.) ·has been
growing rapidly over the past decade, now accounting for well over $40 billion of U.S.
exports alone. 1
The Global Information Infrastructure (Gil), has the potential to revolutionize
commerce in these and other areas by accelerating the growth of trade and thereby enriching
the lives of consumers and citizens around the world? Specifically, the Internet, intranets,.
and other computer networks can lower transaction costs dramatically, and facilitate new
types of commercial transactions and new arrangemen~ of buyers and sellers that woul~
make commerce easier.
Commerce on the Internet could total several billions of dollars by the tum of the
century. Such commercial activity already has begun, with sales estimated at $200 million in
1995. 3 Many btl'sinesses and consumers, however, are still wary of conducting extensive
-J
Survey of Private Services Transactions, Bureau Of Economic Analysis, US Department of Commerce,
November, 1996. The estimate covers 1995 and does not include transactions between affiliated companies
which could add as much as $47 billion in additional exports.
The Gil represents the worldwide infrastructure that supports the transmission and delivery of electronic
content, including the goods and services involved in electronic commerce. The Internet is a global matrix of
interconnected computer networks using the Internet Protocol (IP) to communicate with each other. For ·
simplicity, the term "Internet" is used throughout this paper to encompass all such data networks, even though
some electronic commerce activities may take place on proprietary networks that are not technically part of the
Internet. The term "on-line service provider" is used to refer to both companies that provide access to the
Internet and other on-line services; and companies that create content that is delivered over those networks.
3
Internet Commerce, American Electronics Association/American University, September 1996.
�DRAFT #9 --November 27, 1996
regulations to "new services,". which would include the Internet. Countries also
might decide to regulate Internet content and establish .restrictions under
administrative authority, rather than under broadcast regulatory structures. ·
•
Regulation of advertising - Some countries regulate television advertising in a
manner that would stringently restrict the language, amount, frequency, and
duration of teleshopping and advertising spots. While recognizing legitimate .
cultural concerns, these reasons should not be invoked as. anti-competitive.. . .
u1 . 1
inhibitors lo trade on the Internet;
. /-~ \uM~~C\A,
~'\.S ~o~'U-U ·
. · ~
'<I
~>1 z:\_\\~vt~ .
.·
~R~e6
gu""l"-"a±'ti~o...._n_,o....
f_,c~o~n'""'te""'nllt ( .e. pornography, violence, business information Man.y ~
countries including the
· ed States, are considering or have adopte aws to
.·
restrict access to certain types of content through the· Internet. For example,
.
the EU recently. ordered a study on mechanisms to control.access by children
to, and provisio~ of cri~imil penalt~es_for, trans~ittin~ offensi_ve material over rr.. rf ?~
the Internet. Chma restricts transm1ss10n of busmess informatiOn through the u" '- ·
Internet. Because of cultural and political differences, countries emphasize
their individual concerns about what content on the Internet should be
prohjbited. These multiple interests may result in barriers for US providers
~\)r·{\(J
.
attempting to enter certain national markets;
e{.· ' \
•
•
•
Regulation to prevent fraud: Recently, there have been a number of cases
where fraudulent information on companie~ and their stocks, and phony
investment schemes have been broadcast ·on the Internet. The appropriate
federal agencies (i.e. FTC, Securities and Exchange Commission) are
determining whether new regulation,s are needed to prevent fraud through
the Internet;
Differences in defining "seditious" material: Companies wishing to do
business over the Internet, and to provide access to the Internet (including U.S.
on-line service providers with foreign affiliates C!r joint ventures), are concerned
about being subject to liability based on the different policies of every country
through which they transmit their information. This is especially a problem
with information considered as "seditious propaganda," but extends to social
differences as well. Compuserve, for example, recently removed several
Internet newsgroups from its services worldwide in response to complaints
from prosecutors in Germany.
PWl-~
~k
~\~u-s
Jb --~\?
/
.
((:,~~~
CLiNTON LiBRARY PHOTOCOPY
19
�WITHDRAWAL SHEET
Clinton Library
.Collection: Domestic Polity Council
.
.
Magaziner, Ira -.Electronic Commerce
OA 10381/Box 9
OA/Box:
File Folder: [Notes]
..r) Notes
~Notes
,/
3) Notes
,
~
-
4) Notes
/5)
'
Notes
V(j')
Notes
4) Notes
v8)' Notes
v-9')
Notes
LfO)
Notes
Hard to read Handwritten notes.
Request, 7p
,Hard to read Handwritten notes.
Request, 6p
Hard to read Handwritten notes.
Request, 1p
Hard to read Handwritten notes.
Request, 6p
Hard to read Handwritten notes.
Request, 2p
Hard to read Handwritten notes.
Request, 2p
Hard to read Handwritten notes.
Request, 2p
Hard to read Handwritten notes:
Request, 5p
Hard to read Handwritten notes.
Request, 2p
Hard to read Handwritten notes.
Request, 5p
Archivist:
Date:
mpw
4/15/2004
Will be reviewed upon Researcher's
12/9/96.
Will be reviewed upon Researcher's
12/10/96
Will be reviewed upon Researcher's
nd
\Vill be reviewed upon Researcher's
. 12/111
[1996]
nd
Will be reviewed upon Researcher's
Will be reviewed upon Researcher's
Will be reviewed upon Researcher's
Will be reviewed upon Researcher's
Will be reviewed upon Researcher's
Will be reviewed upon Researcher's
12/16/
[1996]
12/16/96
12/17/
[1996]
12/17/
[1996]
118/
[1997]
CLINTON LIBRARY PHOTOCOPY
RESTRICTIONS
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[(b)(4) of the FOIA].
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P2 Relating to appointment to Federal office [(a)(2) of the PRA].
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�,--------
Withdrawal/Redaction Sheet
Clinton Library
. DOCUMENT NO .
.. AND TYPE
001. cable
DATE
SUBJECT!fiTLE
01110/97
From ArnEmbassy London re: VAT (4 pages)
RESTRICTION
P5
CLINTON LIBRARY PHOTOCOPY
. COLLECTION:
Domestic Policy Council
Ira Magaziner (Electronic Commerce)
OA/Box Number: I 0383
. FOLDER TITLE:
[Cable on Application of VAT- Value Added Tax]
Rhonda Wilson
rw99
RESTRICTION CODES
·Presidential Records Act- [44 U.S.C. 2204(a)]
Freedom of Information Act - [5 U.S.C. 552(b)]
Pl National Security Classified Information [(a)(l) of the PRA]
P2 Relating to the appointment to Federal office [(a)(2) of the PRA]
,P3 Release would violate a Federal statute [(a)(3) of the PRA]
,P4 Release would disclose trade secrets or confidential commercial or
financial information [(a)(4) of the PRA]
; PS Release would disclose confidential advise between the President
and his advisors, or between such advisors [a)(S) of the PRA]
P6 Release would constitute a clearly unwarranted invasion of
' personal privacy [(a)(6) of the PRA]
b(l) National security classified information [(b)(l) of the FOIA]
b(2) Release would disclose internal personnel rules and practices of
an agency [(b)(2) of the FOIA]
b(3) Release would violate a Federal statute [(b)(3) of the FOIA]
b(4) Release would disclose trade secrets or confidential or financial
information [(b)(4) of the FOIA]
b(6) Release would constitute a clearly unwarranted. invasion of
personal privacy [(b)(6) of the FOIA] ·
b(7) Release would disclose information compiled for law enforcement
purposes [(b)(7) of the FOIA]
b(8) Release would disclose information concerning the regulation of
financial institutions [(b)(8) of the FOIA]
b(9) Release would disclose geological or geophysical information
concerning wells [(b )(9) of the FOIA]
C. Closed in accordance with restrictions contained in donor's deed
of gift.
· PRM. Personal record misfile defmed in accordance with 44 U.S.C.
2201(3).
RR. Document will be reviewed upon request.
�i
'01/10/9i
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16:12
STATE DEPT -ICIP ~~~WHITE HOUSE
'5"202 64i i40i
[4J 001/004
I
U~tecl States Department of State
I
W~lli11gton, /J. C.
20.'i20
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aanuary 10, 1997
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Page 1 of .4
UNCLASSIFIED
MEMORANDUM
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F.hpo.e.
64~-1708
64 -6591
TO: EUR/ERA: Paul Aceto
EUR/UBI: Eri~ Kittner
EB/TPP/:[PC:
Dianne Markowitz
EB/TPP/BiA/DCT: Laura Lane
DOC/NTIA/OIA: Suzanne Settle·
DOC/ITA/OT: Myles Denny-Brown
641 -2777
64~-1979
4812-1854
48~-0398
DOC/ITA/Services:JenniEer Tallaric~ 482-5820
DOC/PTO: Carmen Guzman Lowrey
Michael Keplinger
Keith Kupfersclunid
FCC: Tom Wasilewski
rrc: Marie Wold
DOJ: Dave Turetsky
703-~~05-9300
FR-OM:EB/CIP - Timothy C.
647-9959
64 7-.34 63
647-5936
647-6540
482-1865
482-5834
482-4775
703-305-8885
1
4~8-1475
418-2824
205-3161
3~7-2032
514-0306
514-6381
874-5374
2~5-3450
Car.l W-illner
Treasury/OCC: Emily Marwell
Treasury: Richard Zechter
USTR: Don Abelson
USTR: Bill Corbett
USTR: Jim McGlinchey
USTR: Carol Ba1assa
WH/NEC: Tom Kalil
WH/OSTP:Mike Nelson
WH/OVP: Greg Simon
WH: Ira Magaziner/
· · Jonathan Greenblatt·
DISA: Marth~ Clark
r:;..x:
5114-5813
8~4-5200
622-1246
622-1254
3~5-6864
395-3891·
395-3891
395-9674
395-3911
3~5-9586
3~5-5656
1
39~ 5-958.0
4 6-2801
4 6-6039
456-2223
456-6023
4~6-6222
456-6231
4 6-5593
456-5557
703-6 7-6147
703-607-4090
Finton...Jf.~ 6J7-5385
647-0158
·.- (E mail: fi.ntontc@6820~poa.us~sta~e.gov)
I
SUBJECT: Cable on Application of VAT
I
I
For your inform"tion, attached is a usJf:ul cable from Embassy r,ondon
~hi.ch came in today, providing more in~onnation to supplement the
tinRncial Times ~rticle on applying
value-added tax to services
provided by fondgn telecom companies. -I
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th4
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cc:EB/CIP:Ed Malloy/Andrew Weinschenk/~ike McCabe
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CLINTON LIBRARY PHOTOCOPY .
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�'01/10/9i
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16:12
STATE DEPT - CIP
-+-+-+
WHITE HOUSE
[4J 002/004
UNCLASSIFIED
P~inted
By: Timothy
c.
Finton
ACTION CIP-00
CIAE.:.oo CTHE-00 INL-01
INFO LOG-00 INI.B-01 AID-00 CEA-01 EB-00
EUR-01 E-00
ANHR~Ol SRPP.;.OO
OASY-00 DOOE-00
CMHC-01 TEDE-00 INR-00 ITC-01
FRB-00 H-01
FCC-01
OPIC-01 CI0-00 sp::.oa
LAB-01 ADS;..OQ NSAE-00 OMS-01 DRL-09 G-OO
/021W
STR-00 IJSIE-00
SS0-00 S.S-00
101853Z /38
------------------8E4899
R 101847Z JAN 97
FM AHEMBASSY LONDON
TO SECSTATE WASHDC 0774
INFO USDOC WASHDC
WHITEHOUSE WASHDC
ALL EUROPEAN UNION POST COLLECTIVE
DEPT OF TREASURY WASHDC
UNCLAS E F T 0 SECTION 01 OF oi .UlNDON 000360
STATE
USDOC
USDOC
STATE
PARIS
fOR EB/CIP, EUR/UBI AND EUR/ERA
FOR 3133/USFCS/OIO/NEGRETTI
FOR NTIA/SSETTLE
ALSO PASS TO FCC
ALSO FOR USOECD
E.O. 12.959: N/A
TAGS: ECPS, EFIN, EUN, UK
SUBJECT: VAT ON FOREIGN TELECOMS PROVIDERS: UK GOVERNMENT
VIEWS AND INITIAL REACTlDN Of U.S. FIRHS
LONDON 01 OF. 02 360
1. SBU -- CONTAINS BUSINESS VIEI-IS GIVEN IN CONFIDENCE.
P~EASE PROTECT· APPROPRIATELY.
2. (SBU) SUMMARY: "ON JANUARY 8, THE fiNANCIAL TIMES PUBLISHED
AN ARTICLE INDICATING THAT SOME IIERETOfORE UNTAXED TELECOMS
SERVICES PROVIDED FROM OUTSIDE TilE EU WERE TO BE HADE SUBJECT
. TO A HEFTY 17 TO 25 PERCENT VALUE-ADDED TAX. EMBASSY HAS
LEARNED THAT THE UK WAS AMONG THE MEMBER STATES PUSHING FOR
CLOSURE Of WHAT IS VIEWED AS A TI\X LOOPHO.LE, BUT HMG PLANS TO
BE fLEXIBLE IN ITS EVENTUAL IHPLI~HENTATION. BASICALLY, THE EU
HAS COME TO THE CONCLUSION THAT 14HEN AN EU RESIDENT OR COMPANY
GETS 11 USE AND ENJOYMENT" OF A TELECOM SERVlCE, ·IT SHOULD PAY
THE RELEVANT VALUE-ADDED TAX, REGARDLESS Of WHERE THE SELLER
Of THE SERVICE IS LOCATED• IN A QUICK, INfORMAL SURVEY OF
U.S.-BASED FIRMS, ECONOFF GOT A VARIETY OF RESPONSES TO THE
PROPOSED VAT REFORH, THOUGH VIRTuALLY ALL SEEMED ULTIMATELY
PREPARED TO ACCEPT THE MEASURE. HOWEVER, THEY HAD SOME CONCERNS ABOUT HOW IT ~OULD BE l~TERPRETED AND IMPLEMENTED IN
THE VARIOUS· MEMBER STATES. ENO SUMMARY.
THE PROPOSAL
3. (U} HHG CONTACTS INDICATE THEY EXPECT THE EUROPEAN
COMMISSIDr~ TO APPROVE DRAFT LEGISLATION WHICH WILL CLOSE A
LOOPHOLE WHICH HAS ALLOWED TELECOMS SERVICE PROVIDERS OUTSIDE
THE EU TO FOREGO PAYING THE SAME VALUE-ADDEO TAX (VAT} AS
THEIR EU-BASED COMPETITORS. THIS WILL EFFECT CALL-BACK
SERVICES, CHARGE CARD SYSTEMS WHICH BYPASS LOCAL TELECOMS
OPERATORS, ONLINE GROUPS AND POSSIBLY OTHERS. THE LOOPHOLE
HAS NOT BEEN UNIFORMLY USED BY SERVICE-PROVIDERS BASED OUTSIDE.
THE EU, NOR HAVE UK FIRMS--PARTICULARLY IN THE fiNANCIAL
~ERVICES SECTOR-BEEN PRECLUDED rROH EXPLOITING IT. HHG REPS
SAY THE UK PRESSED THE EU TO CLOSE THE LOOPHOLE BOTH TO
PRESERVE VAT REVENUES (800 MILLlON BPS, OR USD 1.4 BILLION,
PER ANNUM) AND TO SHORE UP A LEVEL PLAYING FIELD SO THAT
DOMESTIC SERVICE PROVIDERS WOUL[l NOT BE AT A DISADVANTAGE.
UNCLASSIFIED
1
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FLINTON LIBRARY PHOTOCOPY
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16:13 - . "a'202 64i i 40i
STATE DEPT - CIP
-+-+-+
WHITE HOUSE
141003/004
UNCLA~SIFIEO
Printed By: Timothy C. Finton
WHY THE PROBLEM'?
4. (Ul THE LOOPHOLE STEMS FROH HIE EUROPEAN COMMUNITY• S 1977
"SIXTH VAT DIRECTIVE" WHICH DICTATED THAT THE RATE OF VAT
CHARGED ON TELECOMS SERVICES WOULIJ BE DETERMINED BY HIE PLACE
OF SUPPLY (READ: ADDRESS OF SUPPLIER). AT THE TIME. NO ONE
FORESAW THE ORAMATlC GROWTH IN THt: VOLUME AND VARIETY OF
TELECOMMUNICATIONS SERVICES OR THI~ PROBLEMS WHICH WOULO ARISE
F'ROH THE EXISTENCE OF OHFERENT TAX PRINCIPLES ELSEWHERE IN
1'HE WORLD. SOME FINANCIAL. INSTITUTIONS ANO TELECOMS SERVICE
PROVIDERS I-lAVE REPORTEDLY TAKEN AI)VANTAGE Of THIS LOOPHOLE.
·IN SOME CASES, THE l7.5 PERCENT TAX SAVINGS WAS A BONUS ON TOP
OF1 LOWER OVERALL COSTS CHARGED BY SERVICE PROVIDERS IN LOWER~
WAGE COUNTRIES. r'N OTHER CASES, NON..:Eu FIRHS WITH OPERATIONS
IN BRITAIN SIMPLY ARRANGED FOR SERVICES TO BE PROVIDED BY
THEIR OVERSEAS PARENT FIRM. HOWEVER; SOME FINANCIAL SERVICES
COMPANIES ~lAVE ALLEGEOL Y SET UP PAPER "TF.LEC:DHS SERVICES"
SUBSIOlA~IES OUTSIDE THE EU SPECIFICALLY TO AVOID HIE VAT
CHARGES ON THEIR SUBSTANTIAL DATA TRANSFERS, ETC.
TIHING
5. (U) ALTHOUGH THE UK WAS fiRST TO RAISE ntE ISSUE OF THE
LOOPHOLE IN THE EU, HMG CONTACTS SAY, IT WILL NOT BE
IHPLEHENTING CHANGES IN ADVANCE OF THE EU CHANGES TO Il'S VAT
RULES, AS FRANCE AND GERMANY HAVE. (COMMENT: HHG AND PRIVATE
SECTOR SOURCES ECHO THE JAN 8 FIN~NCIAL TIHES REPORT THAT
FRANCE, AND INDEED GERMANY, INSTITUTED CHANGES TO NATIONAL VAT
RULES AS OF JANUARY 1, 1997. END COMMENT) HMG EXPECTS TO
MAKE THE FIRST SET Of CHANGES IN ITS LEGISLATION IN THE APRIL•
MAY 1997 TIMEFRAME, FOLLOWING FHIAL ADOPTION OF VAT CHANGES IN
BRUSSELS. TO ACT EARLIER, THEY INSIST, WOULD OPEN IIMG UP TO
LAWSUITS, BECAUSE EU LEGISLATION ''HAS PRIORITY" OVER NATIONAL
LEGISLATION WHEN IT COMES TO VAT. HMG WILL REQUIRE PAYMENT OF
VAT ON ALL TELECOM SERVICES TO PEJ~SONS ANO COMPANIES WHOSE
PRINCIPLE ADDRESS IS IN THE UK. UK SERVICE PROVIDERS WILL.
LIKELY CONTINUE TO BE REQUIRED, !'OR AN INTERIM PERIOD, TO
COLLECT VAT ON SERVICES THEY PROVIDE TO CUSTOMERS OUTSIDE THE
EU. HMG' S POSITION IS THAT, IN THE LONGER TERM ( PERH~PS IN
1998), THIS SHOULD BE RATIONALIZED SO THAT SUCH SERVICES WOULD
ONLY BE TAXED AT·THE RATE SET BY THE NON-EU CUSTOMER'S
GOVERNMENT. ANOTHER 11 SECOND-ROUil0 11 110DIFICATION WHICH HMG
SUPPORTS IS THE E>TABLISHMENT OF A SINGLE POINT OF VAT
REGISTRY FOR THE EU, FOR NON-EU ~iERVICE PROVIDERS. .
H1PLEMENTATION
6. ( U) FIRST, UK OPERATIONS Of f'i)REIGN-OWNED BUSINESS WILL NOT
LONDON 02 Of 02 -360
BUSINESSES WILL SIMPLY DEDUCT THESE CHARGES FRO~ THE VAT THEY
ARE OTHERWISE.PAYING.
7. (U) FOR THOSE COMPANIES SERVING NON-BUSINESS CUSTOMERS,
6~~A~~ ~:~o R~~~~~Ri~I~~~aE: E~~i~~~ ~6~h~~Q~~:~E~~~~~A~H~~G
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WOULD BE FLEXIBLE DURING THE TRANSITION AND NOT INSIST THAT
I
ALL OF ITS VAT ACCOUNTING REQUIREMENTS BE HET OQROVIDEO THAT THE A~~PROPRI
T REVENUES ARE NONETHELESS
REMITTED. OUR CONTACT ADMITTED THAT THERE MAY BE A POLICING
I
PROBLEM WITH SOME SMALLER OPERATORS AND, IN FACT, THE UK WILL
BE RAISING THIS VERY PROBLEM IN THE OECO. NEVERTHELESS,
HE SAID THAT THESE COMPANIES GENERALLY WILL BE VISIBLE IN THE
EU, FOR ADVERTISING OR OTHER PURPOSES, AND HE FELT EU
GOVERNMENTS WOULD LARGELY SUCCEED IN OBTAINING COMPLIANCE.
CLINTON LIBRARY PHOTOCOPY
UNCLASSIF'IED
2
�' Ol/10/9i
16: lJ
"5'202 64i i40i
STATE DEPT - CIP
·~~~
WHITE HOUSE
141004/004
UNCLA!;SIFIEO
Printed By: Timothy C. Finton
BUSINESS VIEWS
8. (SBU) IN RESPONSE TO ECONOFF INQUIRIES, SOME TELECOMS
OPERI\TORS STATED THEY FELT UNAFFEI:TED, BECAUSE THEY WERE
ALREADY PAYING THE TAX. IN SOME I~ICHE MARKETS, SUCH AS
UNIVERSITIES, SOME HAD NOTICED THAT COMPANIES CIRCUMVENTING
THE TAX ~ERE ~EATING THEH ON THE aASIS OF' PRICE, AND WERE
SOMEWHAT RELIEVED THAT THE LOOPHOLE WAS BEING CLOSF.D SO THEY
WOULDN'T HAVE.TO CONTEMPLATE 11 VAT MITIGATION" THEMSELVES.
ANOTHER FIRM, WHICH OFfERS VAT-fREE BILLING ON ITS
INTERNATIONAL SERVICES PROFESSED NOT TO BE TOO CONCERNED BY
THE IMMINENT VAT INCREASE, BUT INDICATED THAT Il" MAY CONSIDER
PRICE REDUCTIONS IN DIFFERENT AREAS TO MITIGATE THE CHANGE'S
IMPACT ON OVERALL :CI~ARGES TO CUSTOMERS.
9. (SBU) OTHERS HAD CONCERNS ABOUT THE INCONSISTENCIES AND
BURDENS WHICH SEEM LIKELY TO ARISE Willi IHPLEMENTATION-.PARTICULARLY fOR U.S. -BASED SERVICES, SUCI-1 AS CALLING CARDS
AND CALL-BACK. ONE COMPANY COMPLAINED, roR INSTANCE, THAT
WHILE GERMANY HAS HADE THE ASSUMPTION IN ITS NEW RULES THAT
THE FINAL EU TEXT WILL TREAT EU AND NON-EU SUPPLIERS HIE SAME,
THERE ARE INDICATIONS THAT THE EU TEXT MAY ONLY AP-PLY THE
CUSTOMER-LOCATION CRITERIA TO NON-EU FIRMS. IN ADDITION TO
THE POTENTIALLY DISCRIMINATORY IMPACT Of THE LATTER AF'PROI\CH,
THE POTENTIAL DISCREPANCY WILL ADD TO THE ACCOUNTING PROBLEMS-AND CONrUSION--GENERATED BY THE VAT CI~ANGES. ONE LARGE fiRM
PREDICTED THAT W.HILE MAJOR COHPANIES WOULD UNDOUBTEDLY COMPLY
WITH THE NEW EU RULES, SHALL RESELLERS IN THE U.S. WOULD BE
11 0UT Of REACH" OF EU AUTHORITIES AND t1IGIH AVOID THE TAXREMITTANCE OBI.IGAHONS TO .GAIN A CONSIDERABLE COST ADVANTAGE. _
ERNST AND YOUNG IS REPORTEDLY LEAOING A GROUP OF
REPRESENTATIVES Of SOME UK-BASED FIRMS TO BRUSSELS TI~E WEEK OF'
JANUARY l3 TO MEET WITH DG-XXlii REGARDING THEIR CONCERNS.
{COMPUSERVE AND AMERICA ONLINE D(l NOT HAVE UK OFFICES, AND SO
WERE NOT AVAILABLE fOR COMMENT, EIUT THEIR SERVICES TO Ui</EU
CUSTOMERS WOULD BE SUBJECT TO VA'I UNDER THE PROPOSED
LEGISLATION. l
lO. (SBUl COMMENT: THIS MEASUI!E APPEARS TO BE AIMED MORE AT·
PRESERVING RATHER THAN AUGHENTINii TAX REVENUES. NEVERTHELESS,
IT RAISES THE BROADER QUESTION OF HOW TO HANDLE TAXATION AND
DUTY-COLLECTION IN THE BURGEONINii TELECOMS-BASED SERVICES
SECTOR. IN THIS CASE, THERE IS SOM~ POTENTIAL FOR
INCONSISTENT APPLICATION Of THE VAT (I.E. CliARGES LEVIED ON
BOTH NON-EU SERVICE PROVIDERS ANil NON-EU CUSTOMERS OF EU
TELECOM SERVICES}, AT LEAST IN THE NEAR TERt1. ASIDE rROM
THAT, U.S. fiRMS IN THE UK WITH WHICH WE HAVE SPOKEN SEEM TO
INDICATE THAT THEY WILL SEAR THE ADDED BURDENS AS PART OF THE
COST OF DOING BUSINESS IN THE EU. WHAT WE HAVE NOT BEEN ABLE
TO OETERI11NE IS HOW U.S. FIRMS WIHCH HAVE NO REPRESENTATION IN
THE UK AND OFFER SERVICES DIRECTLY FROM. THE U.S., SUCH AS
COMPUSERVE AND AMERICA ONLINE, WlL.L REAC'r TO THE PROPOSED EU
TAX CHANGES. END COMMENT.
\
CROWE
CLINTON LIBRARY PHOTOCOPY
UNCLASSIFIED
3
�WITHDRAWAL SHEET
Clinton Library
Collection: Domestic Policy Council
Magaziner, Ira- Electronic Commerce
OA 10383/Box 12 .
OA/Box:
File Folder: [Notes - January 1997]
1) Notes
2) Notes3) Notes
Archivist:
Date:
Hard to read Handwritten notes. Will be reviewed upon Researcher's
Request, 3p
Hard to read Handwritten notes. Will be reviewed upon Researcher's
Request, 2p
Hard to read Handwritten notes. Will be reviewed upon Researcher's
Request, 1p
mpw
4/15/2004
1114/97
1114/97
nd
CLINTON LIBRARY PHOTOCOPY
RESTRICTIONS
Bl National security classified information [(b) (l) of the FOIA].
B2 Release could disclose internal personnel rules and practices of an
P2 Relating to appointment to Federal office [(a)(2) of the PRA].
agency [(b)(2) of the FOIA].
B3 Release would violate a Federal statute [(b)(3) of the FOIA].
P3 Release would violate a Federal statute [(a)(3) of the PRA].
B4 Release would disclose trade secrets or confidential commercial financial information
P4 Release would disclose trade secrets or confidential commercial
[(b)(4) of the FOIA].
or financial information [(a)(4) of the PRA].
B6 Release would constitute a clearly unwarranted invasion of
PS Release would disclose confidential advice between the President and
personal privacy [(b)(6) of the FOIA].
his advisors, or between such advisors [(a)(5) of the PRA].
B7 Release would disclose information compiled for law enforceP6 Release would constitute a clearly unwarranted invasion of personal
ment purposes [(b)(7) of the FOIA].
. privacy [(a)(6) of the PRA].
PRM Personal records misfile defined in accordance with 44 USC 2201 (3). BS Release would disclose information concerning the regulation of
financial institutions [(b)(9) of the FOIA].
B9 would disclose geological or geophysical information
Pl National security classified information [(a)( I) of the PRA].
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(
�Withdrawal/Redaction Sheet
Clinton Library
DOCUMENT NO.
AND TYPE
DATE
SUBJECTfi'ITLE
RESTRICTION
001. memo
U.S. Policy on reforming Economic Sanctions- C (11 pages)
nd
Pl/b(1)
002. cable
From AmEmbassy Paris re: OECD Ad Hoc Meeting of Experts on
Cryptography Policy, June 26-27, 1996 (4 pages)
07110/96
P5
CLINTON LIBRARY PHOTOCOPY
COLLECTION:
Domestic Policy Council
Ira Magaziner (Electronic Commerce)
ONBox Nuniber: 10383
;FOLDER TITLE:
[Internet Issues] [2]
Rhonda Wilson
rwlOO
RESTRICTION CODES
Presidential Records Act- [44 U.S.C. 2204(a)]
Freedom of Information Act- [5 U.S.C. 552(b)]
PI National Security Classified Information [(a)(l) of the PRA]
P2 Relating to the appointment to Federal office [(a)(2) of the PRA]
P3 Release would violate a Federal statute [(a)(3) of the PRA]
P4 Release would disclose trade secrets or confidential commercial or
financial information [(a)(4) of the PRA]
PS Release would disclose confidential advise between the President
and his advisors, or between such advisors [a)(S) of the PRA]
P6 Release would constitute a clearly unwarranted invasion of
p'ersonal privacy [(a)(6) of the PRA]
b(l) National security classified information [(b)(l) of the FOIA]
b(2) Release would disclose internal personnel rules and practices of
an agency [(b)(2) of the FOIA]
b(3) Release would violate a Federal statute [(b)(3) of the FOIA]
b(4) Release would disclose trade secrets or confidential or financial
information [(b)(4) of the FOIA]
b(6) Release would constitute a clearly unwarranted invasion of
personal privacy [(b)(6) of the FOIA]
b(7) Release would disclose information compiled for law enforcement
purposes [(b)(7) of the FOIA]
b(S) Release would disclose information concerning the regulation of
financial institutions [(b)(S) of the FOIA]
b(9) Release would disclose geological or geophysical information
concerning wells [(b)(9) of the FOIA]
C. Closed in accordance with restrictions contained in donor's deed
of gift.
PRM. Personal record misfile defined in accordance with 44 U.S.C.
. 2201(3).
RR. Document will be reviewed upon request.
�UNCLASSIFIED
Printed By: Tara Feret Erath
x724~0
1\r:noN EUj:l-01
INFO
LOG-00
OODE-00
FRB-00
L-01
SP-00
/Ol9W
CEA-01
CIAE-00 CIP-00 CTME-00
ITCE-00 SRPP-00 EB-00
EXME-00 E-00
H-01
TEDE-00 INR-00
I0-00
ITC-01
ADS-00 I'IMP-00 NSAE-00 OES-01 OHB-01
SS0-00 srr~-oo TRSE-00 ·USIE-00 DRL..09 AID-DO
-------4CE3BA
R 101401Z JUL 96
FM AMEMBASSY PARIS
TO SECSTATE WASHOC 6839
WHITE HOUSE
· DEPARTMENT Of' JUSTICE
USDDC WASHDC
OASY-00
FCC-0 I
LAB-01
OPIC-01
G-OO
101403Z /38
. UNCLAS SECTION 01 OF 03 PAIHS 15184
F'ROM USOECD
STATE.PASS OMS/MCCONNELL
WHITE HOUSE FOR DSTPINELSON AND NSC/APPE~
JUSTICE FOR CHARNEY
CIP/BEAIRD/MAERKLE AND EUR/ERA
USDOC fOR NTIA/SHAW AND NIST/ROBACK
. USODC FOR 4122/IEP/OHA/MORGAN .
, USDDC FOR 3133iUSFCS/DIO/NEGRETTI
SENSITIVE BUT UNCLASSIFIED .
UNCLASSIFIED
UNCLASSIFIED
PARIS
01 OF 03
15184
PAGE 02
PARIS 15184 01 OF 03 101403Z
12958: N/A
TAGS; ETRD, ECPS, KSCA, OECD
SUBJECT: DECO AD HOC MEETING Of EXPERTS ON CRYPTOGRAPHY
POLICY, JUNE 26-27, 1996. DELEGATION REPORT
.
E.D.
SUMM~RY
1. THE OECO AD HOC GROUP OF EXPERTS ON CRYPTOGRAPHY
POLICY HELD ITS SECOND MEETING ON JUN£ 26-27, 1996 •.
SEVERAL CRITICAL ISSUES MUST BE RESOLVED TO MEET THE
1 SPRING 1997 DEADLINE SET FOR THE DEVELOPMENT OF
_CRYPTOGRAPHY PRINCIPLES. CANADA IS PRESSING FOR THE J
INCLUSION OF A "PRIVACY PRINCIPLE," OPPOSED BY THE US
AND fRANCE IN PART BECAUSE IT IMPLIES THAT THE ONL~
CRITICAL FUNCTION FOR CRYPTOGRAPHY IS PROTECTING '
PRIVACY: IN THE US VIEW, PR01'ECTING COMPUTER SECURITY
ANn COMMERCE ARE EQUALLY IMPORTANT. IN ADDITION, FRANCE
11/\S IABLED A PROPOSAL REQUIRING ALL KEYS TO BE ESCROWED
IN TH£ COUNTRY WHERE THE CRYPTOGRAPHY PRODUCT IS USED.
I HE OECD 1 5 BUSINESS .INDUSTRY ADVISORY CD11HITTEE. (BIAC)
STRONGLY OPPOSES THIS PRINCIPLE AS TOO BURDENSOME. THE
US TABLED LANGUAGE ON TIMELY INTERNATIONAL LAW
ENFORCEMENT ASSISTANCE A~D ARE AWAITING FRENCH
REACTION. THE DECO SECRETARIAT WitL DISTRIBUTE A
REVISED SET OF' PRINCIPLES IN ADVANCE OF THE NEXT
MEETING, SEPTEMBER 26-27. IN ADDITION, THE US IS
CONSIDERING A USOECD PROPOSAL TO EXPAND NON-MEMBER
UNCLASSIFIED
'
1
CLINTON LIBRARY PHOTOCOPY
�,. .,./
'
P~inted
. UNCLASSIF'IED
~72420
By; Tara Feret Erath
•·rJUNTRY OUTREACH VIA AN OECD EHEF WORKSHOP (SEE PARA 9
ACTION REQUEST). END SUMMARY.
-------~-----------------------RECENT DEVElOPMENTS IN CRYPTOGRAPHY POLICY
2. THE MEETING BEGAN-WITH A NUMBER OF PROCEDURAL
HATTERS, INCLUDING THE SELECTION_OF PEiER FORD TO SERVE
AS CHAIRMAN BECAUSE LATE-BREAKING EVENTS IN AUSTRALIA
PREVENTED NORMAN RAEBURN FROM ATTENDING. THEREAFTER,
SIX DELEGATIONS DISCUSSED RECENT_ DEVELOPMENTS WITHIN
THEIR RESPECTIVE COUNTRIES. OF PARTICULAR NOTE, DENMARK·
NOTED THAT IT HAD DELIBERATELY DECIDED NOT .TO USE A kEY·
ESCROW SYSTEM IN IMPLEMENTING ITS NATtONAL CITIZEN'S
CARD. WHILE FRANCE INDICATED THAT ITS NEW LAW (REQUIRING
kEY ESCROW) HAD BEEN PASSED. THE US DISCUSSED THE
ADMINISTRATION'S DRAfT WHITE PAPER ON ENCRYPTION.
CRYPTOGRAPHY PRINCIPLES DISCUSSION
3. HOST OF THE TWO DAY SESSION WAS DEVOTED TO THE TEXT
Of-THE CRYPTOGRAPHY. PRINCIPLES. ALTHOUGH THE .
SECRETARIAT IS NOW PREPARING A NEW D~FT FOR DELEGATION
REVIEW, ELEVEN SPECIFIC PRlNCIPLES WERE DISCUSSED. THE
MOST IMPORTANT PRINCIPLES CALL FOR (1) PROMOTING TRUST
IN THE GLOBAL INFORMATION INFRASTRUCTURE BY ENCOURAGING
THE USE OF STRONG CRYPTOGRAPHY, (2) AlLOWING USERS TO
CHOOSE ENCRYPTION PRODUCTS, (3) RELYING ON THE MARKET TO
PARIS 02 OF 03 15184
PAGE 02
PARIS 15184 OZ OF 03 101403Z
. E.O. 12958; N/A
TAGS: ETRO, ECPS, I<SCA. OECil
SUBJECT; DECO AD HOC MEETING OF EXPERTS ON CRYPTOGRAPHY
POLICY, JUNE 26-27, 1996. DElEGATION REPORT
.
DETERMINE WHAT ENCRYPTION SOLUTIONS WILL BE DEVELOPED,
(4) ALLOWING THE MARKETPLACE TO DEVELOP STANDARDS FOR
CRYPTOGRAPHIC METHODS. (5) DEvELOPING RULES REGARDING
CIVIL LIABILITY, AND (6) ENSURING LAW ENFORCEMENT ACCESS
TO EITHER 'PLAINTEXT OR DECRYPTION KEYS.
4. OF COURSE, THE USER CHOICE AND MARKET DRIVEN
PRINCIPLES MAY RESULT IN CRYPTOGRAPHIC SOLUTIONS WHICH
. DO NOT ENSURE LAW ENFORCEHENr ACCESS TO PlAINTEXT.
THUS, THESE PRINCIPLES HAY APPEAR TO CONfLICT. TO
RESOLVE THIS ISSUE, THE UK SUGGESTED A HARMONIZATION
PRINCIPLE. AS CURRENTLY WR:cTTEN, THIS PRINCIPLE
RECOGNIZES THAT THERE IS A NATURAL TENSION BETWEEN THE
USER CHOICE, MARKET DRIVEN, AND LAW ENfORCEMENT ACCESS
PRINCIPLES, AND PROVIDES THAT THE GOVERNMENT ACCESS
PRINCIPLE SHOULD BE IMPLEMENTED IN A HANNER WHICH DOES
NOT UNDULY RESTRICT THE-OTHER PRINCIPLES. ALTHOUGH THE
r,rrmAN DELEGATION COMPLAINED THAT THIS PLACED THE LAW
1
llfORCEMENT ACCESS PRINCIPLE AHEAD OF USER CHOICE AND
F11\f~~:ET DRIVEN, THE CONSENSUS APPEARED TO BE THAT THE
I'IHNCIPLf SHOULD STAND AS WRITTEN. THIS IS, OF COURSE,
CRITICAL TO US LAW ENFORCEMENT INTERESTS.
5. AT THE END OF THE TWD1 DAY SESSION, IT WAS AGREED
THAT THE SECRETARIAT WOULD PRI)DUCE A NEW DRAFT OF THE
PRINCIPLES BY JULY 14, INFORMAL COMMENTS WOULD BE
PROVIDED BY DELEGATES BY JUlY 31, A REVISED DOCUMENT
WOULD BE REDISTRIBUTED BY SEPTEMBER 5 FOR MEMBER ~TION
UNCLASSIFIED
2
CLINTON LlBRARYPHOTOCOP
y
�UNCLASSIFIED
P•-int.ed By:
IWVJF)/,
,~IJ-27.
AND
Tara F'eret Erath x72420
THE NEXT MEETING WOULD
CRITICAL ISSUES
~EHAIN
BE HELD ON SEPTEMBER
UNilESOLVED
6.
NOTWITHSTANDING THE PROGRESS MADE, THERE A~·E STILL
SOME CRITICAL ISSUES UNRESOLVED. WITH REGARD TO THE
PRINCIPLES, CANADA IS ATtEMPTING TO INSERT A "PRIVACY
PRINCIPLE" WHICH COVERS NOT ONLY THE CONFIDENTIALITY OF
DATA, BUT ALSO MORE TRADITIONAL INFORMATION PRIVACY .
ISSUES. THIS PRINCIPLE WOULD RELATE NOT ONLY TO THE US~
OF CRYPTOGRAPHY TO PROTECT THE CONFIDENTIALITY OF DATA, :
BUT ALSO TO HOW CRYPTOGRAPHY MAY BE USED TO PROTECT
TRANSACTIONS SO THAT INFORMATION. CANNOT_ .BE COLLECTED AND
USED F'OR MARKETING AND OTHER PURPOSES. THIS TYPE OF ..
PRIVACY--WHICH INVOLVES THE RIGHT OF INDIVIDUALS TO
. -DECIDE WHAT INFORMATION ABOUT. THEMSELVES WILL BE
DISCLOSED TO AND USED BY OTHERS--RAISES PRIVACY ISSUES
FAR BROADER THAN THOSE RAISED BY CRYPTOGRAPHY. THE US
AND FRANCE ARGUED STRONGLY AGAINST SUCH A PRINCIPLE .
BECAUSE IT APPEARED TO BE AN ATTEMPT TO ADD TO THE
OECD' S 1980 PJUVACY GUIDELINES. MOREOVER, ITS ADDITION
WOULD INCORRECTLY SUGGEST THAT THE ONLY CRITICAL
FUNCTION OF CRYPTOGRAPHY IS PROTECTING PRIVACY;
PROTECTING COMPUTER SECURITY AND COMMERCE IS EQUALLY
IMPORTANT.
·
.
7. ANOTHER UNRESOLVED AREA OF CONTENTION IS A fRENCH
SPONSOR_ED PRINCIPLE WHICH WOULD REQUIRE ALL KEYS TO BE
ESCROWED IN THE COUNTRY WH~RE THE CRYPTOGRAPHY PRODUCT
IS USED. NOTE: IN SOME CASES, THE US ALLOWS KEYS TO
BE STORED OUTSIDE THE US. BIAC STRONGLY OPPOSED THIS
PRINCIPLE, CLAIMING IT WOULD PLACE AN UNACCEPTABLE
BURDEN ON BUSINESS. THE US ADDED THAT SINCE THERE IS NO
REQUIREMENT THAT INDIVIDUALS AND ORGANIZATIONS STORE
THEIR DATA IN THE COUNTRY WHERE THEY RESIDE, REQUIRING
THE STORING OF KEYS LOCALLY HIGHT NOT RESOLVE THE
BROADER CONCERN THIS PRINCIPLE WAS DESIGNED TO ADDRESS:
PROMPT LAW ENfORCEMENT ACCESS TO DATA. IN AN ATTEMPT TO
. RESOLVE THIS ISSUE, THE US OFFERED-LANGUAGE PROMOTING
TIMELY INTERNATIONAL LAW ENFORCEMENT ASSISTANCE, BUT
THERE WAS NO IMMEDIATE FREN~H FEEDBACK ON THE PROPOSAL.
PARIS 03 OF 03
15184
PAGE 02
PARIS 15184 03 OF 03 101404Z
E.O. 12958: N/A
TAGS: ETRO, ECPS, kSCA, OECD
SUBJECT: OECD AD HOC MEETING OF EXPERTS ON CRYPTOGRAPHY
POLICY, JUNE 26-27, 1996. DELEGATION REPORT
8. . -LAST, THERE HAS ALSO BEEN LITTLE EX PLANA TORY TEXT
WRITTEN, ALTHOUGH ALL DELEGATES AGREED THAT CRYPTOGRAPHY
ISSUES ARE TOO COMPLEX TO BE RESOLVED BY TERSE
GUIDELINES WITHOUT EXPLANATION. THEREFORE, MUCH WORK
1~1- MAT NS TO BE DONE, ESPECIALLY IF THE OECO HOPES TO
! t1MI'I.ETE THIS PROJECT BY FEBRUARY 1997 AS PLANNED.
f.!OSSIBLE OUTREACH TO
NONMEHBI~RS?
9.
IN A SEPARATE MEETING WITH USDECD AMBASSADOR AARON,
US PRIVATE SECTOR REPRESENTATIVES DISCUSSED THE
POSSIBLE EXTENSION OF THE: GROUP'S WORK BEYOND OECD
MEMBER COUNTRIES. THE PRIVATE SECTOR IDENTIFIED SEVERAL
THE
UNCLASSIFIED
3
CLINTON LIBRARYPHOTOCOPY
�UNCLASSIFIED
rrinted By: Tara feret Erath
~72420
'.!IUNTRIES INCLUDING CHINA AND INDIA WHICH WOULD BENEFIT
I"I~OM A BETTER UNDERSTANDING Of THE DECO'S WORk IN THIS
AREA. ONE POSSIBILITY DISCUSSED WAS THE OECD'S EMERGING
MARKET ECONOMIES
FORU~
(EMEF} WORKSHOP. EMEF WORKSHOPS
ARE USUALLY HELD IN PARIS (UNLESS A COUNTRY AGREES TO
SPONSOR THE CONFERENCE AND THEREFORE, UNDERWRITE THE
COSTS) AND CAN COVER ANY TOPIC AND INCLUDE ANY COUNTRY. AMBASSADOR AARON DISCUSSED THIS PROPOSAL WITH THE USG
OFFICIALS; INITIAL REACTION WAS POSITIVE LEAVING OPEN
THE QUESTIDNS.OF TIMING AND POSSIBLE PARTICIPANTS.
ACTION REQUEST: HISSION WILL ~PLORE THE POSSIBILITY OF
SCHEDULING A CONFERENCE WITH THE DECO SECRETARIAT IF
WASHINGTON IS INTERESTED; PLANNING FOR A WORKSHOP IN TijE
SPRING 1997 SHOULD BEGIN .IN SEPTEMBER 1996~ (DELEGATION
REPORT .PREPARED BY SCHARNEV/DOJ).
WEINGARTEN
. CLINTON LIBRARY PHOTOCOPY
. UNCLASSIFIED
4
�WITHDRAWAL SHEET
Clinton Library
Collection: Domestic Policy Council
Magaziner, Ira - Electronic Commerce
OA 10383/Box 12
OA/Box:
File Folder: [Notes - November 5]
Archivist:
Date:
mpw
4/15/2004
/
1) .Notes
Hard to read Handwritten notes. Will be reviewed upon Researcher's
Request, 3p
1115
CLINTON LIBRARY PHOTOCOPY
RESTRICTIONS
Bl National security classified information [(b) (I) of the FOIA].
B2 Release could disclose internal personnel rules and practices of an
P2 Relating to appointment to Federal office [(a)(2) of the PRA].
agency [(b)(2) of the FOIA].
B3 Release would violate a Federal statute [(b)(3) of the FOIA].
P3 Release would violate a Federal statute [(a)(3) of. the PRA].
B4 Release would disclose trade secrets or confidential commercial financial information
P4 Release would disclose trade secrets or confidential commercial
[(b)(4) of the FOIA].
or financial information [(a)(4) of the PRAj:
B6 Release would constitute a clearly unwarranted invasion of
PS Release would disclose confidential advice between the President and.
personal privacy [(b)(6) of the FOIA].
his advisors, or between such advisors [(a)(5) of the PRA].
B7 Release would disclose information compiled for law enforceP6 Release would constitute a clearly unwarranted invasion of personal
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Clinton Library
Collection: Domestic Policy Council
Magaziner, Ira - Electronic Commerce
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OA 10383/Box 13
File Folder: [Notes - 1996]
1) Notes
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mpw
4/15/2004
10/17/96
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�WITHDRAWAL SHEET
Clinton Library
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�·WITHDRAWAL SHEET
Clinton Libra·ry
Collection: Domestic Policy Council,
Magaziner, Ira
OA 10383/Box 15
Archivist: rfw
OA/Box:
File Folder: Dept. Notes
Date: 10/8/04
1. Notes
Handwritten meeting notes, 6p
2. Notes
Handwritten meeting
3. Memo
From Lael Brainard to group re meeting on Trade Barriers Assessment, 1p
(partial)
4. Notes
Handwritten meeting note@ S /
5. Notes
Handwritten meeting notes,QP)
6. Notes
no~e@
n.d.
S(b
b
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P5
10/3/95
P3/B3
n.d.
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P5
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n.d.
P5
7. Notes
Handwritten meeting notes, 8p /
n.d.
P5
8. Notes
Handwritten meeting notes@ S / b C..
n.d.
P5
9. Notes
Handwritten meeting notes~ S ( b '(
n.d.
P5
10. Notes
Handwritten meeting notes, 1p (partial)
n.d.
P3/B3
11. Notes
Handwritten meeting notes, 1p /
. n.d.
P5
12. Report
Re: China
9/27/95
Pl/Bl (S)
13. Letter
From Takakazu Kuriyama to Ronald H. Brown, 1p
8/16/94
Pl/Bl
14. Letter
From Ronald H. Brown to Takakazu K~riyama, 1p
8/16/04
Pl/Bl
CLINTON LIBRARY PHOTOCOPY
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�WITHDRAWAL SHEI;T
Clinton Library
Collection:· Domestic Policy Council,
Magaziner, Ira
OA 13114/Box 16
OA/Box:
File Folder: Domain Names [2]
Archivist:
rfvv
Date: 10/18/04
1. Memo
From Kelly to Weinberg re: What we want from NSI, 3p
116/98
PS
2. Memo
Draft re: What we want from NSI,tp Zf.
1/13/97
PS
3. Cable
Incoming cable, 3p
3/23/97
P1/B1
CLINTON LIBRARY PHOTOCOPY
.RESTRICTIONS
. Bl National security classified infonnation [(b) (1) of the FOIA].
B2 Release could disclose internal personnel rules and practice~ of an
agency [(b)(2) of the FOIA].
B3 Release would violate a Federal statute [(b)(3) of the FOIA].
P3 Release would violate a Federal statute [(a)(3) of the PRA].
B4 Release would disclose trade secrets or confidential commercial financial infonnation
P4 Release would disclose trade secrets or confidential commercial
[(b)(4) of the FOIA]:
or financial infonnation [(a)(4) of the PRA].
B6 Release would constitute a clearly unwarranted invasion of
PS Release would disclose confidential advice between the President and
personal privacy [(b)(6) of the FOIA).
his advisors, or between such advisors [(a)(5) of the PRA].
B7 Release would disclose information compiled for law enforceP6 Release would constitute a clearly unwarranted invasion of personal
·
ment purposes [(b )(7) of the FOIA].
privacy [(a)(6) of the PRA].
B8 Release wou.ld disclose information concerning the regulation of
financial institutions [(b)(9) of the FOIA].
PRM Personal records misfile defined in accordance with 44 USC 2201 (3). B9 Release would disclose geological or geophysical infonnation
concerning wells [(b)(9) of the FOIA].
PI National security classified infonnation [(a)(l) of the PRA].
P2 Relating to appointment to Federal office [(a)(2) of the PRA].
�'
,,
:--
From:
To:
Date:
Subject:
Christopher Kelly <Christopher.Kelly®justice.usdoj.gov>
Receipt Notification Requested <JWEINBER®fcc.gov>
1/6/98 5:52pm·
.
What we want from NSI --some thoughts from Antitrust Div ..
Attached is a. WordPerfect document incorporating Jon
Weinberg's draft list and adding some thoughts from over
here.
As I mentioned earlier, we provide these with serious
underlying concern about our ability to get.a satisfactory deal
if negotiations are undertaken solely with NSI, instead of
through an open transition solicitation.
There is also some
thought over here that.the list should also in~orporate a very
~irm deadline as to when shared registration will be ·in place
rather than leaving that to subsequent negotiation after we've
already cast our lot with NSI.
Otherwise, we could see this
stretch out indefinitely while NSI reaps whatever mo~opoly
rents we've inadvertently left on .the table.
CC:
Receipt Notification Requested <Deborah,Cqnnor®int ...
CLINTON LIBRARY PHOTOCOPY
�What we want from NSI -- revised version
A.
Development of shared-registry system
l.NSI must provide an operating environment and software, or supply all necessary architecture,
specs· and code sufficient to allow a third party to write software, supporting a shared-registry
system with the following characteristics: ·
a.
It can support multiple registrars (up to several hundred).
b.
It provides security and authentication for requests: from registrars.
c.
SLD owners can change registrars seamlessly, without changing ·their domain
names.
- d.
The system affords competing registrars access to ~ervices and functionality on an
equal basis ("equal access"), including the_following characteristics:[Shouldn 't _
equal access principles apply whoever's running the registry,· and whether or not
the registry's also acting as a registrar?J
1.
n.
B.
The order in which the registry deals with requests from registrars is
neutral aS to the identity of the registrars; [Round-robin or any other
specific order might be better determined by the advisory body.} and
Any other characteristics specified by an independent technical advisory
body, to be funded by the registry, to be essential to equal access.
· Operation of the System
1.
The prices the registry charges registrars for registry services are subject to approval by
_JNTIA? FCC? Certainly not the Antitrust Division, but somebody needs to be the
arbiter.}, must be justifiable on the basis of demonstrated costs, -and not so high as to
unduly [if they're justifiable, they should be okay even if they discourage the faintharted
from entry} discourage registrar entry. [This requirement should apply whether or not
the registry has moved into the registrar business.}
2.
If the registry wishes to act both as registry and registrar, it must do so through separate
subsidiaries. Appropriate accounting and confidentiality safeguards shall be used to ensure that the registry subsidiary's business is not utilized in any manner to benefit the
registrar subsidiary to the detriment of any other registrar.' [We need to make clear that
it's not just a formal accounting separation but an absolute Chinese Wall, lest the
registry tip its registrar affiliate off to potential new customers on the basis ofrequests it
gets from other registrars.)
.
.
The aforementioned independent technical advisory body shall certify periodically
3.
CLINTON LIBRARY PHOTOCOPY
�whether, based on its specifications, the registry is in fact providing equal aGcess.
4.
The registry must provide ready access to searchable databases containing domain riame
and contact information, ·either directly or through nonexclusive bulk access to directory
service providers. [Shouldn't access be general? It's not just current owners of
trademarb who have an interest in knowing who 's registrrred.)
C.
Intellectual property
. 1.
.
.
'
NSI must acknowledge USG's intellectual-property rights in the software and databases
created under the auspices of this agreement and the Cooperative Agreement. [This needs
· some input from our colleagues in the Civil Division so that we can define a little more
precisely. What's critical is acknowledgement of the USG 's right to copy, use, modify,
distribute, and authorize the further copying, use, etc. of this material.]
2. ·
NSI will license, on reasonable and nondiscriminatory terms' and conditions,-to any other
registry any software it develops for the purpose of supporting a shared-registry system.
D.
General
1.
· NSI must commence work on this project as of 1/15/98 (say); further timetables and
deadlines should be determinedjointly by USG (including NSF), NSI and the technical
advisory body.
CLINTON LIBRARY PHOTOCOPY
�DRAFT
What we want from NSI -- l/13/97 version
A.
1.
Until such time ast the IANAO concludes that the public interest will be served by TLDs
in direct competition with each other, the registry shall be 'operated on a not-for-profit,
· equal access shared-registry basis.
·
2.
.· NSI must provide an operating environment and software, or supply all necessary
architecture, specs and code sufficient to allow a third party to write software, supporting
a shared-registry system with the.following characteristics:
a.
It can support multiple registrars (up to several hundred).
b.
It provides security and authentication for requests from registrars.
c. .
SLD owners can change registrars seamlessly, without changing their domain
names.
d.
The system affords competing registrars access to services and functionality on an
equal basis ("equal access"), including the following characteristics:
1.
The order in which the registry deals with requests from registrars is
neutral as to the identity. of the registrars;.' and
u.
Any other characteristics specified by an independent technical advisory
body, to be funded by the registry, to be es~ential to equal access.
B.
Operation of the System
1.
The registry shall be subject to governance by the IANAO, which has the power to .. derecognize" the registry, i.e., unhook it from the root server in the event that the registry
does not conform to IANAO policies.
·
2.
J The prices the registry charges registrars for registry services are subject to approval by
(regulator), must be justifiable on the basis of demonstrated costs, and not so high as to
unduly discourage registrar entry. Conduct not subject to approval by (regulator)_shall
enjoy no immunity from application ofthe antitrust laws-,
a.
· IfNSI is to serve as the registry, any contracts pursuant to which it will provide
registration services and which are in either facially or effectively exclusive, must ·
be opened at some point during the first x months of competitive registration to
.
:
CLINTON LIBRARY PHOTOCOPY
�DRAFT
allow customers to obtain registration services from other registrars.
·b.
3.
3.
· NSI may not agree with any other party that the other party will not serve as a
registrar.
If the registry wishes to act both as registry and registrar for the same TLD, it must do so
through separate subsidiaries. Appropriate accounting and confidentiality safeguards
shall be used to ensure that the registry subsidiary's business is not utilized in any
manner to benefit the registrar subsidiary to the detriment of any other registrar. None of
the registrar subsidiary's conduct shall be immune from .the application of the antitrust
laws.
The aforementioned independent technical advisory bod~ shall certify periodically
. whether, based on its specifications, the registry is in fact providing equal access.
4.
The registry must provide ready access to searchable databases containing domain name
and contact information, either directly or thr~ugh nonexclusive bulk access to directory
service providers.
C.
Intellectual property
1.
NSI must acknowledge USG's right to use, copy, and disseminate for further use and
copying, the software and databases created under the auspices of this agreement and the
Cooperative Agreement.
·
,;•
2.
NSI will1icense, on reasonable and nondiscriminatory terms and conditions, to any other
registry any software it develops for the purpose of supporting a shared-registry system.
D.
General
l.
NSI must commence work on this project as of 1115/98 (say); further timetables and
deadlines should be determined jointly by USG (including N~F), NSI and the technical
advisory body.
.CLINTON LIBRARY PHOTOCOPY
�WITHDRAWAL SHEET
Clinton Library
Collection: Domestic Policy Council
Magaziner, Ira- Electronic Commerce
OA!Box:·
OA 13114/Box 16
Archivist:
mpw
File Folder: Domain Names [5]
~emo
2) Notes
3) Letter
4) Memo
5)Memo
6)Memo
Date:
5/27/2004
·To: Magaziner, From: Kelly, RE: Competition in Internet Domain Name
Registration Services, 6p
Hard to read Handwritten notes. Will be reviewed upon Researcher's
Request, 4p
12/18/97
To: Magaziner, From: Bordogna, RE: Internet Domain Name Transfer,
10/31197
P5
10/31197
P5
6/17/97
P6/B6
6/17/97
P6/B6
2p
To: Burr, Kahil, From: Rudolph, RE: Legal Concerns ofthe:National
Science Foundation, 3p
From: Sonya Patterson, RE: Domain Names Breakfast Meeting
p~cipants, 1p (partial)
·To: USSS, Workers and Visitor Services System, RE: Domain Names
Breakfast Meeting participants, 1p (partial)
P5
nd
CLINTON LIBRARY PHOTOCOPY
. ·~ -
RESTRICTIONS
Bl National security Classified information [(b) (1) of the FOIA].
B2 Release could disclose Internal personnel rules and practices of an
agency [(b)(2) of the FOIA].
P3 Release would violate a Federal statute [(a)(3) of the PRA].
B3 Release would violate a Federal statute [(b)(3) of the FOIA].
.
P4 Release would disclose trade secrets or confidential commercial
B4 Release would disclose trade secrets or confidential commercial financial information
or financial information [(a)(4) of the PRA].
[(b)(4) ofthe FOIA].
B6 Release would constitute a clearly unwarranted invasion of
PS Release would disclose confidential advice between the President and
his advisors, or between .such advisors [(a)(5) of the PRA].
personal privacy [(b)(6) of the FOIA:].
P6 Release would constitute a clearly unwarranted invasion of personal·
B7 Release would disclose' information compiled for law enforce.
·.
privacy [(a)(6) of the PRA].
ment purposes [(b)(7) of the FOIA].
PRM Personal records misfile defined in .accordance with 44 USC 2201 (3). BS Release would disclose information concerning the regulation of
financial institutions [(b )(9) of the FOIA].
B9 would disclose geological or geophysical information
· concerning wells [(b )(9) of the FOIA].
. Pl National security classified information [(a)(l) of the PRA].
P2 Relating to appointment toFederal office [(a)(2) of the PRA].
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CLINTON LlBRARY PHOTBEGI!¥------H------------ --------------
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�NAllONAL SCIENCE FOUNDATION
4201 WILSON BOULEVARD
ARLINGTON, VIRGINIA 22230
October 31, 1\197
OFFICEOFTI-<E
O~PIJTYDIRS::roll
PRIVILEGED AND
SB~IR:REPFFI:'
h
DETERMINED TO BEAN ADMIJ\1STRATIVE:
:\IIARKI!\G Per E.O. 12958 ali amended, Sec. 3.3 (c)
Mr.IraC.Magaziner
Senior Advisor to the President
for Policy DtWelopmeni
Old Executive Office Building, Rm. 216
1600 Pennsylvania Avenue, N. W.
Washington, DC 20500
lnit1Bli:~Date:03t-;:ntl'l
Dear Ira,
I am writing to convey the National Science Foundation's policy and Legal concerns about
certain aspects of the transition plan being developed for the withdrawal of the federal
govenunent from its role in the admini~ation of the name and number addressing
systems of the Internet. NSF has participated exteru;ively in the discussions leading up to
the present ~~et of working documents, and we appreciate the continuing opportunity to
provide the views of the Foundation on specif1c issues the interagency Working Group
has considered. Our previous meetings to discll5s these matters directly with you have
also been very much appreciated.
I would like to state at the outset that the Working Group's efforts on this transition plan
are to be applauded. The group has wrestled with many difficult issues, and brought lhem
to a comprehensible scale. It is precisely because the work is good, and the project is
important, t.lta! these concems·should be raised now, rather than after de.ciqons are made
that commit the governrrumt to particular directions or strategies.
In this project, the implementation plan-- mid the legal undt:rpirmings for that plan-- are
as important for the success of the transition as the ultimate soundness of the substantive
policies set forth in the Working Group's current paper. My understanding is that the
most recent version of the transition plan contemplates a Cooperative Agreement between
the government and one or more private entities. As proposed, the solicitlltion for the
Cooperative Agreement would be jointly issued by NSF and NTIA. We believe that the
transition plan could be in jeopardy if the vehicle selected for imPlementation is ilJ.
considered, or if the legality of the vehicle is invalidated or even called seriously into
question by Virtue ofNSF's direct involvement in this solicitation.
CLINTON LIBRARY PHOTOCOPY
�...
As you know, NSF has stated both publicly and in internal discussions its intent to "get
· · out of' the administration of the domain name registration system of the Internet at the
end of the current Cooperative Agreement with Network Solutions, Inc. ("NS.I"), because
further activities in connection with this function are inconsistent with NSF's mission and
outside its institutional competence. In addition, NSF ha.S several legal concerns that
argue strongly against NSF's involvement beyond the existing term of the current
Cooperative Agreement withNSI.
I have asked NSF's General Counsel to convey those concerns directly to the Working
Group, thus affording everyone an opportunity to discuss these matters in as informed a
manner as possible. I want to let you know that the attached memorandum on these legal
issues has been deiivered to the Working Group for its consideration.
NSF will gladly continue its participation in the interagency Working Group discussions
. and provide assistance on the issues that the Working Group wil(be considering during
the upcoming months. We remain concerned, however, that the Adininistration's efforts
not be jeopardized by unnecessarily involving NSF in a transition plan outside its mission
and beyond its authority.
Sincerely,
Gt:ogna
Acting Deputy Director
Enclosure
CLINTON LIBRARY PHOTOCOPY
�Ill:. I ER\fi'ED TO IJEAJIO AD\111\JS rlf.An\ E
\1-\.RKI'\C. Per £.0. 129~ as Am~nd~'ll. Sec. 3.3 (c)
JnJtia!s:~llarc:o31-;;l]{Qoft.i
PRIVILEGED AND S8Nf'mfHf'PLlrb
MEMORANDUM TO:
FROM:
J. Beckworth Burr, Esq.
BrianKahin,Esq.
Co-Chairs, Interagency Working Group
fl.'V'l
\. / "--"'
Lawrence Rudolpf'v-p4
General Counsel, N~F
SUBJECT:
Legal Concerns of the National Science Foundation
DATE:
October 31,1997
The National Science FouiJdation (NSF) has several legal concerns about certain aspects
of the transition plan being developed for the withdrawal of the fedetal government from
its role in the administration of the name and number addressing systems of the Internet.
In order to provide you with an opportwlity to discuss those concerns, I request that you
share this memorandum with the other members of the Working Group. Please realize,
however, that these documents must remain privileged and confidential in view of
ongoing litigation against the government.
The premise of cUJTent draft documents by the interagency Working Group is that the
proposed policies will be implemented by a cooperative agreement, or some other
vehicle, between NSF and NTlA on the government side, and one or more entities on the
private sector side. That ammgement depends on NSFs and NTIA's authority to enter
into a cooperative agreement of the type contemplated by the draft solicitation.
NSFs legal concerns are as follows:
(I) NSFs authority over the administration of the domain name and numbering systems
of the Internet has been cballenged by lawsuits filed in two federal district cowts. Either
coi.Ut could rule at any time during the next six to twelve months that NSF does not have
the legal authoritytoexeJ'Cise the control it presently asserts over the domain name
registration system of the Internet. Pending complaints could also be amended, as was
recently done in the PO Media case, to challenge NSFs authority kl engage in the
proposed transition activities.
CLINTON LIBRARY PHOTOCOPY
�..
,,
On the question ofNSFs authority, the most relevant provisions in NSFs organic
legislation, the National Science Foundation Act of 1950, as amended, 42 U.S.C. § 1861
et ~.,are 42 U.S.C. § 1862(aX4) and 42 U.S.C. §1862(gX"subsection (g)"). Section
. 1862(aX4) provides that the Foundation is authorized and directed "to foster and support
the development and wie of computer and other scientific and engineering methods and
technologies, primarily for research and engineering in the sciences and engineering."
Subsection (g) provides that "in carrying out [Section 1862(aX4)] the Foundation is
authorized to foster and support access by the research and education communities to
computer networks which may be used substantially for purposes in addition to research
and education in the sciences and engineering, if the additional uses will tend to increase
the overall capabilities of the networks to support such research and education."
Subsection (g) was added in 1992 in response to concerns expressed by NSF and others
that NSF was not authorized under eXisting law to adopt an "Acceptable Use Policy" for
the NSFNet, a predecessor to the present Internet, that would allow commercial users to
send non-research or -education traffic over the NSFNet "backbone." The proponents of
subsection. (g) believed that if commercial users were allowed ·to send non-research or~ ·
education traffic over the NSFNet backbone,.that would advance the interests ofthe
scientific and educational users ofNSFNet, because it would reduce the unit costs of
traffic on the "backbone" and would provide a more stable and robust environment' for
research ··into networking. That was against the backdrop of Congress' view that NSF.
could support the Network only if and to the extent it was 'Used for scientific research and
· education. Subsection (g) did not repeal the "primary purpose" language of Section
3(aX4); it only provided a limited amount of flexibility to allow commercial activity on
the NSF:-supported network, "if the additional uses will tend to increase the overall
. capabiliti~s ofthe networks to support such research and education activities."
I
NSF allocates its resources consistent with its statutory authority. In the context of
rapidly changing technology, particularly in the area of computer networking where
technology advances are often "cutting edge," NSF supports facilities directly. As the
technology becomes commercially viable, however, NSF must discontinue its support of
the facilities, and redirect its assistance to not-for-profit scientific research and
educational institutions to enable them to obtain those services from the commercial
sector. At this point in the evolution of computer networking, the Internet is a mature
environment. Although NSF continues to support research and educational users' access
to the Internet, we discontinued our financial support of the Internet as a network some
time ago. The NSFNet "backbone" was discontinued in 1993, and the registration
activities associated with the Internet became self-supporting tltrough charges to the
commercial registrants in 1995.
Accordingly, it would be difficult to argue in court thatthe Working Group's.
contemplated involvement ofNSF with the commercial uses of the present generation
Internet will "tend to increase the overall capability of the network to support" ~ientific
research and ed'!lcation activities.
CLINTON LIBRARY PHOTOCOPY
�.• ~
(2) The degree of control contemplated in the policy document and the draft
solicitation is, in many respects, even more detailed and regulatory in nature than that
which is at issue in the pending court cases. Even ifNSFs authority under the existing
cooperative agreement with NSI were to be sustained in the current litigation, we would
have serious misgivings regarding NSFs authority to enter into any new cooperative
agreement that asserted the Working Group's proposed degree of eontrol over the
administration of the Internet name and numbering system. Accordingly, I would be
obliged to seek an appropriate legal opinion from the Office of Legal Counsel of the U.S.
Department of Justice on this issue of authority before advising NSF to enter into any
such cooperative agreement.
My concerns about NSFs authority are by no means intended to suggest that the federal
government is without means to implement thls transition. There are a number of ·
agencies in the Executive Branch that may have the authority to do so, starting with the
NTIA itself.
. With respect to the "policy-creation" aspects of the transition plan, the NTIA serves as the
President's principal advisor on telecommunications policy, trade and technology issues.
· See 47 U.S.C. § 902; ITS ''Blue Book, at l. It develops and promulgates
· telecommunications and information policy. It promotes the transfer and
commercialization of Federal telecommunications technology and coordinates Federal
. telecommunica_tions activities. It further has the authority to conduct studies and make
recommendations concerning the impact of the convergence of cOmputer and
communications technoJogy. 47 U.S.C. § 902(b)(2)(M).
With respect to the "operations, aspects of the transition plan, the Federal Technology
Trarisfer Act (F1TA), 15 U.S.C. § 3706, authorizes the Secretary of Commerce to make
. grants and enter into cooperative agreements to serve the pwposes of the FITA, which
include stimulating the transfer of federally funded, owned or originated technology to the
private sector. 15 U.S.C. §§ 3702, 3710(a)~ The Secretary's authority presumably could
be administratively delegated to the Assistant Secretary of Commerce for
Communications and Information.
The FITA also authorizes federal laboratories to enter into cooperative research and
development agreements (CRADAs) with private industry, universities or pub!ic or
private foundations to implement the technology transfer goals of the FITA. 15 U.S.C. §
37l0a. Through a CRADA, a federal laboratory and a non-federal partner may exchange
personnel, services, facilities, equipment, intellectual property or other resources to carry
out specified research or development gOals. 1 Because of its flexibility~ the federal ·
government has frequently used the CRADA vehicle to transfer federal computer and
telecommuniCations technology to the private computer industry?
·.
·
1
Although the FTTA prohibits federal laboratories from providing .ftmds directly to non-federal parties, an
· agency may provide funds to CRADA partner through a grant, cooperative agreement or contract
a
'
CLINTON LIBRARY PHOTOCOPY
�Withdrawal/Redaction Sheet
Clinton Library
DOCUMENT NO.
AND TYPE
001. letter
DATE
SUBJECT!fiTLE
From Lawrence Rudolph to Kathy Smith re: Cooperative Agreement
(2 pages)
·COLLECTION:
05/12/98
RESTRICTION
P5
CLINTON LIBRARY PHOTOCOPY
Domestic Policy Council
Ira Magaziner (Electronic Commerce)·
OA/Box Number: 13115
·FOLDER TITLE:
Digital Signatures
Rhonda Wilson
rw105
RESTRICTION CODES
Presidential Records Act- [44 U.S.C. 2204(a)]
Freedom of Information Act- [5 U.S.C. 552(b)]
·Pl National Security Classified Information [{a)(l) of the PRA]
P2 Relating to the appointment to Federal office [(a)(2) of the PRA]
·P3 Release would violate a Federal statute [(a)(3) of the PRA]
.P4 Release would disclose trade secrets or confidential commercial or
financial information [(a)(4) of the PRA]
.PS Release would disclose confidential advise between the President
and his advisors, or between such advisors [a)(S) of the PRA]
P6 Release would constitute a clearly unwarranted invasion of
personal privacy [(a)(6) of the PRA]
b(l) National security classified information [(b)(l) of the FOIA]
b(2) Release would disclose internal personnel rules and practices of
an agency [(b)(2) of the FOIA]
b(3) Release would violate a Federal statute [(b)(3) of the FOIA]
b(4) Release would disclose trade secrets or confidential or financial
information [(b)(4) of the FOIA]
b(6) Release would constitute a clearly unwarranted invasion of
personal privacy [(b)(6) of the FOIA]
b(7) Release would disclose information compiled for law enforcement
. purposes [(b)(7) of the FOIA]
·
b(8) Release wouM disclose information concerning the regulation of
financial institutions [(b)(S) of the FOIA]
b(9) Release would disclose geological or geophysical information
concerning wells [(b)(9) ofthe FOIA]
C. Closed in accordance with restrictions contained in donor's deed
. of gift.
PRM. Personal record misfile defined in accordance with 44 U.S.C.
2201(3).
RR. Document will be reviewed upon request.
�NATIONAL SCIENCE FOUNDATION
4201 WILSON BOULEVARD
ARLINGTON, VIRGINIA 22230
May 12, 1998
OFFICE OF THE
GENERAL COUNSEL
Ms. Kathy Smith
Office of the ChiefCounsel
U.S. Department of Commerce/NTIA
Room_4725, HCH Building
Washington, DC 20230
Dear Ms. Smith:
Thank you for your willingness to exchange draft documents regarding the roles.ofthe
National Science Foundation (NSF) and the Department of Commerce/NTIA during the
flexibility period of the Cooperative Agreement{CA) between NSF and Netwbrk Solutions.
We all recognize how important this issue is to our respective agencies, and I appreciate your
participation and help on this and other related matters.
But I must be candid with you regarding the differences between our draft agreements. On
March 16, 1998, NSF sent to the DepartmentofCommerce/NTIA a draft Memorandum of
Understanding for the transfer of the CA. In response, Commerce sent to NSF a revised draft
on April 24th. NSF's document proposes to transfer to Commerce the full authority to
administer the CA. Under the revised Commerce version, NSF would transfer only the
authority to negotiate .the "termination" of the CA.
These are two very different agreements. The substantive issue regarding the scope of the
functions io be transferred needs to be resolved in order for any agreement to be completed.
As anticipated by the "Green Paper," negotiations between Commerce and Network
Solutions are expected to take up the entire set of conditions tinder which Network Solutions
will operate after theCA expires. We believe those negotiations can best be done if
Commerce holds the authority to negotiate any element of the CA that may be involved in
promoting competition in the domain name space.
The premise of Commerce's draft is that the authority to negotiate a new agreement with
Network Solutions should be exercised separately from the operational authority over the
CA. NSF submits that such an arrangement, while theoretically possible, is dysfunctional as ·
a practical matter, ana is inherently inconsistent with the Green Paper and the unambiguous
pronouncements of the National Science Board regarding NSF's role in the Internet.
To the extent that the existing CA provides a source of authority and influence in
negotiations between Commerce and Network Solutions, we believe it would help
Commerce in those negotiations if it also were the governmental entity responsible for the
Telephone (703) 306-1060
FAX (703)
306~6-1~JglNTON
LIBRARY PHOTOCOPY
�.·
..
.
. .
.
..
Cooperative Agreement. That will send the strongest possible message to Network Solutions
that any delay on their part will not preserve the status quo. In view of the instruction from
the National SCience Board that NSF will have no role in]ilternet management after
September 30, 1998, there will be potentially harmful mixed message if NSF retains
operational responsibilities while the negotiations are taking place.
a
I believe that transferring the Cooperative Agreement would not be a burden for Commerce.
In most respects, Network Solutions conducts the activities described in the CA with little or
no advance consultation with NSF. The remaining matters facing Commerce as theCA.
administrator, therefore, are likely to involve either the subject matter ofthe negotiations or
policy issues surrounding implementation of the final rule. For example, one pending policy
issue is the question of whether the government should defend NSF's trademark, InterNIC,
which is now being used, with some confusion to the public, as "INTERNIC.com" by a forprofit entity based in Australia.
.
.
In order to help resolve the issue of Commerce accepting both the responsibility to .
implement the final rule and the authority under the CA, we have revised our original draft to
take into account some of the provisions that Commerce included in its document. And we
have· also agreed that NSF will be responsible for any additional litigation arising out of
actions taken by NSF or Network Solutions prior to the transfer of the CA. Accordingly, I
propose that Commerce and NSF execute the attached version of the Memorandum Of
Agreement, which transfers to Commerce the full authority with regard to all aspects of the
CA. (This draft; which reflects the recent passage of the Act making emergency
supplemental appropriations), generally incorporates the terminology of the Commerce draft
in those instances in which it differs from the original NSF version.)
NSF understands the need for prompt resolution of this matter, and we are prepared to meet
with you to reach closure. Our position has been discussed at the highest levels ofNSF, and
· is also being conveyed directly to Mr. Magaziner by Dr. Joseph Bordogna, Acting Deputy
Director, NSF.·
Again, I hope we can reach agreement on this issue, and I thank you in advance for your help
in this matter.
Sincerely,
~.,._u_ f~~l
Lawrence Rudolph
General Counsel
cc:
Ms. Beckwith Burr, NTIA
CLINTON LIBRARY PHOTOCOPY.
�Withdrawal/Redaction Sheet·
Clinton Library
DATE
DOCUMENT NO.
AND TYPE
SUBJECTffiTLE
· 001. letter
From_ Lawrence Rudolph to Kathy Smith re: Cooperative Agreement
(2 pages)
.'·
05112/98
RESTRICTION
P5
CUNTON LiBRARY PHOTOCOPY
. COLLECTION:
Domestic Policy Council
Ira Magaziner (Electronic Commerce)
OA/Box Number: 13115
FOLDER TITLE:
Domain Names [3]
Rhonda Wilson
rw106
RESTRICTION CODES
Presidential Records Act. [44 U.S.C. 2204(a)]
Freedom of Information Act- [5 U.S.C. 552(b)]
PI National Security Classified Information [(a)(l) of the PRA]
P2 Relating to the appointment to Federal office [(a)(2) of the PRA]
P3 Release would violate a Federal statute [(a)(3) of the PRA]
·
P4 Release would disclose trade secrets or confidential commercial or
financial information [(a)(4) of the PRA]
PS Release would disclose confidential advise between the President
and his advisors, or between such advisors [a)(S) of the PRA]
P6 Release would constitute a clearly unwarranted invasion of
personal privacy [(a)(6) of the PRA]
·
b(l) National security classified information [(b)(l) of the FOIA]
b(2) Release would disclose internal personnel rules and practices of
an agency [(b)(2) of the FOIA]
b(3) Release would violate a Federal statute [(b)(3) of the FOIA]
b(4) Release woulddisclose trade secrets or confidential or financial
information [(b)(4) of the FOIA]
b(6) Release would constitute a clearly unwarranted invasion of
personal privacy [(b)(6) of the FOIA]'
b(7) Release would disclose information compiled for law enforcement
purposes [(b)(7) of the FOIA]
b(8) Release would disclose information concerning the regulation of
financial institutions [(b)(S) of the FOIA]
b(9) Release would disclose geological or geophysical information
concerning wells [(b)(9) of the FOIA]
C. Closed in accordance with restrictions contained in donor.'s deed
of gift.
PRM. Personal record misfile defmed in accordance with 44 U.S.C.
2201(3).
RR. Document will be reviewed upon request.
�MAY-13-1ggg . 16: 10
703 306 010g
NSF-DIRECTORS OFFICE
P.03/07
NATIONAL SCIENCE FOUNDATION .
4201 WILSON BOULEVARD
ARLINGTON, VIRGINIA 22230
May 12, 1998
OFFlCE OF THE.
OENERALCOUNSEL
Ms. Kathy Smith
Office of the Chief Counsel
U.S. Dep~ent of Commerce/NTIA
Room 472.5, HCH Building
Washington, DC 2023 0
CLINTON LIBRARY PHOTOCOPY
Dear Ms. Smith:
Thank you for your willingness to exchange draft documents regarding the roles of the
National Science Foundation (NSF) and the Department ofComrnerce/NTIA during the
flexibility period of the Cooperative Agreement (CA) between NSF and Network Solutions.
We all recogriize how important this issue is to our respective agencies, and I appreciate your
participation and help on this a:nd other related matters: ·
But I must be candid with you regarding the differences between our draft agreements. On
March 16, 1998, NSF sent to the Department of Conimerce/NTIA a draft Memorandum of
Understanding for the transfer of the CA. In response, Commerce sent to NSF a revised draft
on April 24m. NSF's document proposes to transfer to Commerce the full authority to
administer the CA. Under the revised Commerce version, NSF would transfer only the
authority to negotiate the "termination" of the CA.
These are two very different agreements. The substantive issue regarding the scope of the
functions to be transferred needs to be resolved in order for any agreement to be completed:
As anticipated by the "Green Paper," negotiations between Commerce and Network
Solutions are expected to take up the entire set of conditions under which Network Solutions
will operate after theCA expires. We believe those negotiations can best be done if·
Commerce holds the authority to negotiate any element of the CA that may be involved in
promoting competition in the domain name space.
The premise ofConunerce's draft is that the authority to negotiate a new agreement with·
Network Solutions should be exercised separately from the operational authonty over the
CA. NSF submits that such an arrangement, while theoretically possible, is dysfunctional as
a practical matter, and is inherently inconsistent with the Green Paper and the unambiguous
pronouncements of the National Science Board regarding NSF's role in the Internet.
· To the extent that the existing CA provides a source of authority and in~uence in
negotiations between Commerc~ and Network Solutions, we believe it would help
Commerce in those negotiations if it also were the governmental entity responsible for the
Telephone {703) 306·1060
FAX (703) 306-0149
�MRY-13-1998
15=10
703 305 0109
NSF-DIRECTORS OFFICE
P.04/07
Cooperative Agreement. That will send the strongest possible message to Network Solutions
that any delay on their part will not preserve the status quo. In view of the instruction from
the National Science Board that NSF will have no role in Internet management after
Septembe.[' 30, 1998, there will be a potentially harmful mixed message if NSF retains
operational responsibilities while the negotiations are taking place.
I believe that transferring the Cooperative Agreement would not be a burden for Commerce;
In most respects, Network Solutions conducts the activities described in the CA with little or
no advance consultation with NSF. The remaining matters facing Commerce as theCA
administrator, therefore, are likely to involve either the subject matter of the negotiations or
policy issues surrounding implementation of the fmal rule. For example, one pending policy
issue is the question of whether the govenunent should defend NSF's trademark, InterNIC,
which is now being used, with some confusion to the public, as ''INTERNIC.com" by a forprofit entity based in Australia.
In order to help resolve the issue of Commerce accepting bo'th the responsibility to
· implement the fmall1Jle and the authority under the CA, we have revised our original draft to
take into account some ofthe provisions that Commert,e included in its document. And we
ha~~ also agreed that NSF will be responsible forany additional litigation arising out of
actions taken by NSF or Network Solutions prior to the transfer of the CA. Accordingly, I
propose that Co.rnnferce and NSF execute the attached version of the Memorandum Of·
Agreeme-nt, which transfers to Conunerce the full authority with regard to all aspects of the
CA. (This draft, which reflects the recent passage ofthe Act making emergency
supplemental appropriations), generally incorporates the· terminology of the Commerce draft
in those instances in which it differs from the original NSF version.)NSF understahds the need for prompt resolution of this matter, and we are prepared to meet
with you to reach closure. Our position has been discussed at the highest levels of NSF, and
is also being conveyed directly to Mr. Magaziner by Dr. Joseph Bordogna, Acting Deputy
Director, NSF.
Again, I hope we can reach agreement on this issue, and I thank you in advance for your help
in this matter. ·
·
Sincerely,
.~~ W..q,;l
Lawrence Rudolph
General Counsel
cc:
Ms. Beckwith Burr, NTIA
CLINTON LIBRARY PHOTOCOPY
�.WITHDRAWAL SHEET
Clinton Library
Collection: Domestic Policy Council
Magaziner, Ira -:- Electronic Commerce
OA 13115/Box 19.
OA/Box:
File Folder: Duty Free
1) Memo
Archivist:
.Date:
From:· Abelson, To: Magaziner, RE: Draft Response to Ikawa Letter of
4/6/98, lp (partial)
mpw
5/6/2004
4/9/98
P5
CLINTON LIBRARY "PHOTOCOPY
RESTRICTIONS
Bl National security classified information [(b) (1) of the FOIA].
B2 Release could disclose internal personnel rules and practices of an
P2 Relating to appointment to Federal" office [(a)(2) of the PRA].
agency [(b)(2) of the FOIA].
B3 Release would violate a Federal statute [(b)(3) of the FOIA].
P3 Release would violate a Federal statute [(a)(3) of the PRA]. ·
B4 Release would disclose trade secrets or confidential commercial financial information
P4 Release would disclose trade secrets or confidential commercial
[(b)(4) oftheFOIA].
or financial information [(a)(4) of the PRA].
.B6 Release would constitute a clearly unwarranted invasion of
PS Release would disclose confidential advice between the President and
personal privacy [(b )(6) of the FOIA].
his advisors, or between such advisors [(a)(S) of the PRA].
B7 Release would disclose information compiled for law enforceP6 Release would constitute a clearly unwarranted invasion of personal
ment purposes [(b )(7) of the FOIA].
privacy [(a)(6) of the PRA].
PRM Personal records misfile defined in accordance with 44 USC 2201 (3). BS Release would disclose information concerning the regulation of
financial institutions [(b)(9) of the FOIA].
B9 would disclose geological or geophysical information
Pl National security classified information [(a)(l) of the PRA].
�. '12=.00 APR 09, 1998
ID: EOP/USTR WASH DC
TEL. NO:
C202J
.~~~-~~11
EXECUTIVE OFFICE OF THE PRESIDENT
OFFICE OF THE UNITED STATES TRADE REPRESENTATIVE
600 17th Street NW
Washington, DC 20506
. tel (202) 395-3417 .
fax (202) 395-3911
FAX
T R A N
T T
M
A L
To: Ira Magaziner
From:
DON ABELSON FAX: 202 395 3891 PH: 202 395
Date: ·.Thursdny, Apr 9, 1998
Pages:
J
11:59 a.m.
(including cover page)
:t1ESSAGE
Ira: here's a draft response to Ikawa's letter slamming the
U.S. duty free cyberspace initiative. Ikawa clearly wants
to stop the G8 Ministers from endorsing the proposal; G8
endorsement could.be important in building momentum in May
towards· a WTO decision. Ikawa is voicing the same
opposition you heard from MOF iri Tokyo; I belive we should
respond: BOTH thru this letter and thru Summers to
Sakihabara.
CLINTON LIBRARY PHOTOCOPY
�I
I {
'
'
I
'
',
"
:'
'•'
•
'
,'
I
I
'
··?'::;,., .~~d 1
"
Withdrawal/Redaction Sheet
Clinton Library
SUBJECTtriTLE
DATE
RESTRICTION
001. cable
From USEU Brussels re: Electronic Commerce: US Industry Reps on
the Bangeinann Charter (5 pages)
·
06/05/98
P5
· 002. cable
From USEUBrussels re: Electronic Commerce: US Industry Reps on
the Bangemann Charter (5 pages)
06/05/98
P5
003. cable
From USEU Brussels re: Electronic Cominerce: Charter Roundtable
Gives (6 pages)
07/06/98
P5
. DOCuMENT NO.
AND TYPE
CLINTON LIBRARY PHOTOCOPY
COLLECTION:
Domestic Policy Council
Ira Magaziner (Electronic Commerce)
OA/Box Number:
13116
FOLDER TITLE:
Bangemann Charter
Rhonda Wilson
rwl07
RESTRICTION CODES
PresidentialRecords Act: [44 U.S.C. 2204(a)]
Freedom of Information Act- [5 U.S.C. 552(b)]
Pl National Security Classified Information [(a)(l) of the PRA]
P2 Relating to the appointment to Federal office [(a)(2) of the PRA]
P3 Release would violate a Federal statute [(a)(3) of the PRA]
P4 Release would disclose trade secrets or confidential commercial or
financial information [(a)(4) of the PRA]
PS Release would disclose confidential advise between the President
and his advisors, or between such advisors [a)(S) of the PRA]
P6 Release would constitute a clearly unwarranted invasion of
personal privacy [(a)(6) of the PRA]
b(l) National security classified information [(b)(l) of the FOIA]
b(2) Release would disclose internal personnel rules and practices of
an agency [(b)(2) of the FOIA]
b(3) Release would violate a Federal statute [(b)(3) of the FOIA]
b(4) Release would disclose trade secrets or confidential or financial
information [(b)(4) of the FOIA]
b(6) Release would constitute a clearly unwarranted invasion of
personal privacy [(b)(6) of the FOIA]
b(7)Release would disclose information compiled for law enforcement
purposes [(b)(7) of the FOIA]
b(S) Release would disclose information concerning the regulation of
financial institutions [(b)(S) of the FOIA]
b(9) Release would disclose geological or geophysical information
concerning wells [(b)(9) of the FOIA]
C. Closed in accordance with restrictions contained in donor's deed
of gift.
PRM. Personal record misfile defmed in accordance with 44 U.S.C.
2201(3).
RR. Document will be reviewed upon request.
�.·.;.
...
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INFO RUCPDOC/USDOC WASHDC IMMEDIATE
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WHITE
PAS$ USTR FOR ABELSON
FOR EB/CIP, EB/TPP/O'BRIEN AND EUR/ERA
FOR NTIA - BURR
FOR ITA - WELLBERY
HOUSE FOR MAGAZINER
E.O. 12958: N/A
TAGS: EINT, ECPS, EUN
SUBjECT:
ELECTRONIC COMMERCE: US INDUSTRY REPS ON THE
BANGEMANN CHARTER
REF: A) BRUSSELS 2961; B) WEINSCHENK-HELMER. FAX OF 6/1/98
1.
(U) THIS MESSAGE IS SENSITIVE BUT UNCLASSIFIED.
2.
(SBU) SUMMARY: US INDUSTRY REPRESENTATIVES IN
BRUSSELS SAY THEIR FIRMS RELUCTANTLY ARE AGREEING TO
PARTICIPATE IN THE COMMISSION'S JUNE 29 ROUNDTABLE ON
COMMISSIONER BANGEMANN'S PROPOSED INTERNATIONAL
COMMUNICATIONS CHARTER. THEY CONTINUE ·To HAVE MAJOR
CONCERNS ABOUT THE ORGANIZATION AND THE OBJECTIVES OF THE
CHARTER INITIATIVE, BUT.DO NOT BELIEVE IT WILL BE
POSSIBLE TO STOP IT. RATHER THAN BE PRESENTED WITH A
FAIT ACCOMPLI, THEY INTEND TO WORK FROM WITHIN TO DILUTE
.::_., ~:_ m~~:~.-':$.~f,LET'I1ER~}ON:_ ~ .·,_·-~,.THE
.:~._··-=~.:.s _,~~:~:g~~~~:~ir¥~_g~~~~-·-:i~.~~~t~t;_:_.ti~.:_.·_':~,_·~.-· · ·.·.-.'.-.-~.·-.: : ._f~td; :d~ ~_·j:.'_·.~-:·._"'·.:_~· ~_;·.':,_~·-.,;~'·
8
.
e_-•
•
. i·
..
. .•.
1
· :!:'/·' BANGEMANN
:CHARTER ·· • BUT 'WORRY: ABOUTrt>'A'
REPEA'!'\'OF:krH~;iN1yi:::f{Ji~~99.t:.q::BoNN MINISTERIAL . CONFERENfE!' .
. ···. ·.····, , . . .
.....
BE TIME .TO. CONSIDER:, THIS .TYPE OF APPROACH .. · END.··SUMMARX;:,:!c:~:,:(.·
·, ..; c;;~C'· ;}P if;fic'·t~~lf&f.~1~~3~~~";f;:; ·. UNCLASSJFi~IJ'''?l£~, .
-
-
. ..
i;_•.:_:.·_:_:_:_· · .•,.:_,: _·.·_._·,·_._:· · ·:_..·,··_:.•:.·.·.·.·.··,··.·'·.•·.··.'.·,'·.·.··.,. ·,:·_.· . · .:.·...·.·.·._,·_,·.·.·.·.....· ·.·:·,_. ·:.··.·.,·,.·,·,.. .·;::··;.·,·.·:·.··.'..·;
,:
.. ·
·
·
·,:_:.,·
.._';:,:_:_",••...•.
•·._ _
_;_
:
.;__
.
-.. ··. :·0:·:;•,> ,;\',,.,~:F;:~i ,',,: ,_;-,;.~.;.
~·::~t., .~~li~.f!i{~ffi9C,1Y
�'· ...
UNCLASSIFIED
IMMEDIATE
WHITE HOUSE SITUATION ROOM
PAGE 02 OF 05
3.
(SBU) BRUSSELS-BASED REPRESENTATIVE FOR 8 US FIRMS -WORLD LEADERS. IN THE COMMUNICATIONS, INFORMATION AND
MEDIA SECTORS, AND LOCAL LEADERS IN THE EU COMMITTEE OF
THE AMERICAN CHAMBER OF COMMERCE -- CALLED ON EST OFFICER
AND SENIOR TRADE ADVISER JUNE 5 TO DISCUSS COMMISSIONER
BANGEMANN'S PROPOSED INTERNATIONAL COMMUNICATIONS
CHARTER.
6 OF THE 8 FIRMS PRESENT HAD RECEIVED
INVITATIONS TO THE JUNE 29 INDUSTRY ROUNDTABLE ON THE
CHARTER (REF A) . ALL HAVE RELUCTANTLY DECIDED TO SEND
REPRESENTATIVES, ALTHOUGH ~N MOST CASES IT WILL BE THE
SENIOR MANAGER FOR EUROPE, AND IN NO CASE WILL IT BE THE
CEO OF THE FIRM, AS REQUES~ED BY THE COMMISSION. THE
INDUS~RY REPS SPECIFICALLY REQukSTED TO MEET AT THE US
MISSION IN ORDER TO BE, ABLE TO CONCEAL ·THE EXISTENCE OF
THE DISCUSSION FROM THE COMMISSION.
THE CONTENTS OF THIS
MESSAGE SHOULD THEREFORE BE CONSIDERED SENSITIVE.
CLINTON LIBRARY PHOTOCOPY
US INDUSTRY'S POSITION
4.
(SBU) INDUSTRY REPRESENTATIVES HAVE MAJOR CONCERNS
ABOUT THE ORGANIZATION AND OBJECTIVES OF THE CHARTER.
THEY ACKNOWLEDGE THE COMMISSION'S CLAIM THAT THE CHARTER
PROCESS WILL BE INDUSTRY LED, BUT OBSERVE THAT THE
COMMISSION'S CONCEPT OF INDUSTRY LEADERSHIP IS FOR THE
PRIVATE SECTOR TO PROPOSE REGULATORY SOLUTIONS WHICH
GOVERNMENTS WILL DEVELOP AND IMPLEMENT.
IT DOES NOT RELY
ON MARKET-BASED SOLUTIONS, WHICH US INDUSTRY SEES AS THE
BEST APPROACH TO MOST E-COMMERC~ ISSUES. NEVERTHELESS,
IT IS THE JUDGMENT OF BRUSSELS-BASED US INDUSTRY
REPRESENTATIVES THAT IT WILL NOT BE POSSIBLE TO STOP THE
COMMISSION FROM GOING FORWARD WITH THE CHARTER IN SOME
FORM OR ANOTHER.
THE COMMISSION, AND COMMISSIONER
BANGEMANN PERSONALLY, -HAVE INVESTED TOO MUCH IN THE
CHARTER ·TO LET IT DIE. THEREFORE, RATHER THAN BE
PRESENTED WITH A FAIT ACCOMPLI, US FIRMS INTEND TO WORK
FROM WITHIN. TO DILUTE 'T~E CONTENTS OF THE CHARTER AND
DIRECT IT INTO MORE ACCEPTABLE CHANNELS.
u's
5 ;-::: (SBU) THE RPRESENTATIVES ,OF THE
FIRMS
·THE .ROUNDTABLE SAY. THEIR COMPANIES~HAVE BEEN.
;-(VERY :AWKWARD POSITION; . THEY ~POIN'I':§bUT ···THAT,···
, ~ ONLY'BE ABOUT 10 US REPRESENTATIVES 'AT THE .
~_:,:oPI'OSED _· TO 50. EUROPEAN ·PARTICIPANTS AND 2 0 ·. FROM .THE·····
: ,:~:;,OF):THE ,WORLD.;,.: IN ADDITION, . THE COMMISSION. AND.:.:.•:>vJ.~u:.:::··.co
: ~~I:: MEMBER '/GOVERNMENTS WILL,, BE REPRESENTED/ BUT NO ·•._ mn,':'n:·:,ll\'''
. roo
. :'~ GOVERNMENTS. .. THE US FIRMS ·ANTICIPATE THAT THE .COMMI
/ WILL BILL THEM AS SPEAKING ·FOR ALL OF US INDUSTRY
. ':';SOMETHING WHICH THEY CLEARLY ACKNOWLEDGE THEY. HAVE NO
;: AUTHORITY TO DO. . ALSO, THEY ARE HESITANT TO SAY ·
CLEARLY NEGATIVE ABOUT THE CHARfli~ 'F~·S.SEAR OF ·POSS
'
'
··:
···::
..
·
·_· · U
L
IFIED
.
�UNCLASSIFIED
IMMEDIATE
WHITE HOUSE SITUATION ROOM
PAGE 03 OF 05
REPRISAL BY COMMISSIONER BANGEMANN AND HIS STAFF.
THEY
HOPE TO BE ABLE TO EXTRICATE THEMSELVES FROM THE
SPOTLIGHT BY BILLING THEMSELVES AS SPEAKING FOR INDUSTRY
ASSOCIATI.ONS, · AS OPPOSED TO INDIVIDUAL FIRMS, WHERE
POSSIBLE, AND EVENTUALLY STEPPING BACK FROM THE PROCESS
AND LETTING ASSOC:J:ATIONS TAKE THE PUBLILEAD.
UNCLAS SECTION 02 OF 03 BRUSSELS.003459
SENSITIVE
STATE
.STATE
USDOC
USDOC
WHITE
PASS USTR FOR ABELSON
FOR EB/CIP, EB/TPP/O'BRIEN AND EUR/ERA
FOR NTIA - BURR
FOR ITA - WELLBERY
.-CLINTON
HOUSE FOR MAGAZINER
LIBRARY PHOTOCOPY
. E.O. 12958: N/A
'• . TAGS: ' EINT ECPS EUN
SUBJECT:
ELECTRONIC COMMERCE: US INDUSTRY REPS ON THE
BANGEMANN CHARTER
I
I
.REF: A) BRUSSELS 2961; B) WEINSCHENK-HELMER FAX OF 6/1/98
6. (SBU)
ALL EIGHT REPRESENTATIVES COMPLAINED THAT THE
COMMISSION HAS IN THE PAST TAKEN CAUTIOUSLY~WORDED .
INDUSTRY STATEMENTS AND MISREPRESENTED THEM AS SUPPORT
FOR THE CHARTER.
THEY EXPECT THA.T THE COMMISSION WILL
PUT ITS OWN SPIN ON ANYTHING INDUSTRY SAYS, SO THEY PLAN
TO TRY TO PUBLISH A FEW INDUSTRY ASSOCIATION STATEMENTS
IN ADVANCE OF THE MEETING TO G,ET THEIR POSITION OUT
CLEARLY.
THEY WILL ALSO LOOK FOR OPPORTUNITIES IN THE
MONTHS AHEAD TO RAISE THE CHARTER IN PRIVATE SECTOR
CONFERENCES AND OTHER FORA WHERE THEY CAN HAVE MORE
INFLUENCE OVER. THE PROCEEDINGS.
7. (SBU) US INDUSTRY REPRESENTATIVES ARE CURRENTLY
ENGAGED IN DISCUSSIONS WITH EUROPEAN INDUSTRY
REPRESENTATIVES TO SEE IF THEY CAN REACH A CONSENSUS
JOINT POSITION PAPER IN ADVANCE OF THE JUNE.29
THE NEGOTIATIONS ARE NOT. PROCEEDING
..
VIEW OF US · INDUSTRYt;REPS /';. EUROPEAN·.· T't<TT-..TTr•tnn
· ~g~~E~o o~H!sc~~~~·~~~~ ~~~t2i~T~~;~AME ·::·(!f:{'.mt:J't;<;.;.,,:
PROSPECTS OF THE .
. .GROUPS . .u.~..:..L.I."~ ·..r:-:u..•.~..~.~..:.
AGREE ON A :·JOINT
.
( SBU) US
~~d~;4i!f~!W.Ji\.~.~. ;~.+~R~~;E;l;~P]'i-~~.~S?;,;~ . ~.f;i~\i?\~1(~~~;;:\V.'J\:~.;;{;;;:!,;:~;,;:,\;§:}V;l;\
·.h
.
8
THE COMMISSION ENVISAGES THE.END .. PRODUCT OF:'THE··
ROUNDTABLE AS BEING·':AN ACTION .AGENDA WHICH . . . .,....,.,,.,.Trn
PRIORITY ISSUES .·.TO·';BE;YRESOLVED,:;:.'·ASSIGNS<THESE '1IS
SPECIFIC INTERNATIO!-J]\L)t:SODIES ~ ;AN.Q Ei)'I.,ABLI~HES;_ ··.
"T·•
·
.
·~··
,-,,:····... •.
uN(.;LA:sSIFIED .:
�...
fMMEDIATE
UNCLASSIFIED
WHITE HOUSE SITUATION ROOM
PAGE 04 OF 05
TIMETABLE FOR THEIR RESOLUTION. US INDUSTRY REPS SEE
· THIS AS A PROGRAM FOR MORE REGULATION, SOMETHING WHICH
THEY HOPE TO AVOID.
IN THEIR ·DISCUSSIONS WITH EUROPEAN
. INDUSTRY, AND SUBSEQUENTLY IN THE ROUNDTABLE ITSELF, THEY
HOPE TO BE ABLE TO REDUCE THE LIST OF ISSUES TO NO MORE
THAN THREE OR FOUR, AND TO DILUTE THE LANGUAGE TO WEAKEN
ANYMANDATE FOR GOVERNMENT ACTION. THEY ANTICIPATE THAT
THE COMMISSION WILL TRY TO DIRECT AS MUCH WORK AS
POSSIBLE TOWARD THE WTO., WHERE IT HAS THE FIRMEST GRIP ON
EU POLICY, AND AWAY FROM FORA LIKE THE OECD, WHERE IT IS
ONLY AN OBSERVER.
RECOMMENDATION TO THE USG
(SBU) US INDUSTRY REPS WELCOMED THE RESPONSES OF
SECRETARY DALEY AND UNDER SECRETARY EIZENSTAT TO
COMMISSIONER BANGEMANN'S LETTER ON THE CHARTER (REF B).
THEY ASKE IF IT WOULD BE POSSIBLE TO GET A PUBLIC USG
STATEMENT ALONG 'J;'HESE LINES.
IN THE ABSENCE OF SUCH A
CLEAR PUBLIC STATEMENT, THEY WORRIED THAT THE COMMISSION
WOULD BE FREE TO MISREPRESENT THE US GOVERNMENT POSITION,
IN THE WAY THAT IT HAS MISREPRESENTED THE US INDUSTRY
POSITION IN THE PAST.
.9.
10.
(SBU) WHILE AGREEING WifH THE US GOVERNMENT POSITION
THAT THE CHARTER.IS UNNECESSARY, AND THAT EXISTING
.
INTERNATIONAL COORDINATION IS ADEQUATELY ADDRESSING THE
PROBLEMS OF ELECTRONIC COMMERCE, THEY NEVERTHELESS ARE
CONVINCED THAT THE CHARTER IS INEVITABLE. THEY WORRY
ABQUT A REPEAT OF THE JULY i997 BONN MINISTERIAL
CONFERENCE, WHERE USG OFFICIALS INSISTED THAT THEY WOULD
NOT PARTICIPATE, BUT THEN AGREED TO COME AT THE LAST
MINUTE AND WERE IN A POOR.POSITION TO INFLUENCE THE
OUTCOME. THEY SUGGESTED THAT IT MIGHT BE MORE ADVISABLE
FOR THE USG TO TAKE A MORE ACTIVE APPROACH TO THE
.CHARTER, AGRENG TO PARTICIPATE NOW, WHILE IT IS STILL
BEING DEVELOPED, AND EXTRACTING APPROPRIATE CONCESS[ONS
FOR THIS AGREEMENT.
. .
. COMMENT .
11.
( SBU) COMMENT:. :~::T~E .
.::PARTICIPANTS IN
. THis MEETING, . LIKE THE'~\oF:F
.·. · 1MissioN, sPEND
.
~'COMMISSION.
LIKE
THEIR DAYS WORKING THE·:.
US, THEIR VIEW OF THE
Y IS INFLUENCED BY.
THEIR FOCUS ON THE EU~·>{;f.
•BE SURPRISING IF
THEY REACHED A SOMEWHAT>OIFFEB;£N'T.C9NCLUSION AS TO THE .
s;
COSTS AND BENEFITS O~•''~~·~~?~~lit~l8l-A~Sf~mffSION' S
�IMMEDIATE
UNCLASSIFIED
WHITE HOUSE SITUATION ROOM
PAGE 05 OF 05
··INITIATIVE THAN THEIR WASHINGTON COUNTERPARTS.
uNCLAS -.SECTION 03 OF 03_ BRUSSELS 003459
HOWEVER,
SENSITIVE
STATE PASS USTR FOR ABELSON
STATE FOR,EB/CIP, EB/TPP/O'BRIEN AND EUR/ERA
USDOC FOR NTIA - -BURR
USDQC.FOR ITA~ WELLBERY
WHITE HOUSE FOR MAGAZINER
E.O. 12958: N/A
TAGS: EINT, ECPS, EUN
· SUBJECT: ELECTRONIC COMMERCE: US INDUSTRY REPS ON THE
BANGEMANN CHARTER
REF: A) BRUSSELS 2961; B) WEINSCHENK-HELMER FAX OF 6/1/98
THEIR DAILY CONTACT WITH COMMISSION OFFICIALS MAKES THEM
EMINENTLY QUALIFIED TO JUDGE THE MOTIVES AND INTENTIONS
OF COMMISSIONER BANGEMANN AND HIS STAFF.
12. (SBU)
LIKE OUR INDUSTRY CONTACTS, WE DO NOT BELIEVE
THAT THE .COMMISSION WILL TAKE THIS INITIATIVE OUT OF PLAY
SIMPLY BECAUSE THE US SAYS IT IS UNNECESSARY. BANGEMANN
AND HIS ST~FF WILL PROCEED, AS THEY DID WITH THE BONN
MINISTERIAL, AND SEEK TO BUILD IRRESISTIBLE PRESSURE ON
THE US TO PARTICIPATE.
IF THE US IS NOT PREPARED TO
ACTIVELY AND VOCALLY OPPOSE THE CHARTER, THEN IT MAY BE
TIME TO CONSIDER ACTIVELY COOPERATING, IN EXCHANGE FOR
SIGNIFICANT CONCESSIONS ON ITS CONTENT AND ORGANIZATION.
END COMMENT.
(DRAFTED:~CON:CHELMER)
· KURSCH.
<ASECT>SECTION: 01
<ASSN>3459
<ATOR>980605115608
<ASECT>SECTION: 02
<ASSN>-3459
<ATOR>980605115625
. -. <ASECT>SECTION:. 03
SSN>3459
OF 03
M3322001
OF 03
M~~22003
OF 03'
UNCLASSIFIED
�'
'
IMMEDIATE·
UNCLASSIFIED
WHITE HOUSE.SITUATION ROOM
PAGE 01 OF 05
PRT: MAGAZINER
SIT: NSC
·-----------------------~--------------------------------------~---------------------
<PREC> IMIXIEDIATE <CLAS> UNCLASSIFIED
<DT-G> _05154 7Z JUN 98 .
FM USEU BRUSSELS
TO RUEHC/SECSTATE WASHDC IMMEDIATE
INFO RUCPDOC/USDOC WASHDC IMMEDIATE
RHEHAAA/WHITE HOUSE WASHDC IMMEDIATE
RUEHXQ/ALL EUROPEAN UNION POST COLLECTIVE
- UNCLAS BRUSSELS 003459
SENSITIVE
STATE
STATE
USDOC
USDOC
WHITE
PASS USTR FOR ABELSON
FOR EB/CIP, EB/TPP/O'BRIEN AND EUR/ERA
FOR NTIA - BURR
FOR ITA - WELLBERY
HOUSE FOR MAGAZINER
CLIN-TON LIBRARY PHOTOCOPY
E.O. 12958: N/A
TAGS: EINT, ECPS, EUN
SUBJECT:
ELECTRONIC COMMERCE: US INDUSTRY REPS ON THE
BANGEMANN CHARTER
B.EF: A)
1.
/RUSSEJ:,S 2961; B) WEINSCHENK-HELMER FAX OF 6/1/98
(U) SENSITIVE BUT UNCLASSIFIED PROTECT ACCORDINGLY.
I
2.
.
(SBU) SUMMARY: US INDUSTRY REPRESENTATIVES IN
BRUSSELS SAY THEIR FIRMS RELUCTANTLY ARE AGREEING TO
PARTICIPATE IN THE COMMISSION'S JUNE 29 ROUNDTABLE ON
COMIXIISSIONER BANGEMANN'S PROPOSED INTERNATIONAL
COMIXIUNICATIONS CHARTER.
THEY CONTINUE TO HAVE MAJOR
CONCERNS ABOUT THE ORGANIZATION AND THE OBJECTIVES OF THE
CHARTER INITIATIVE, BUT DO NOT BELIEVE IT WILL BE
POSSIBLE TO STOP IT. RATHER THAN BE PRESENTED WITH A .·
FAIT ACCOMPLI, THEY INTEND TO WORK FROM WITHIN TO. DILUTE
ITS CONTENTS AND OTHERWISE SHIFT THE INITIATIVE INTO MORE
ACCEPTABLE. CHANNELS ~:\i.,~ US · INDUSTRY REPS WELCOMED,
·:RESPONSES )OF:,/SENTO~:{(WASHINGTON .OFF'ICIALS iTO.··
..
•.~~ i)3AN(;~:':.·S 7L~~T~I{,;~t\Q~:;i1TI,IE -·C~TERj:b.BUT.··
.
.. ...,,....,rTm_ ._., .,.
•;:··REPEATc.OF ;THE ·•JULY>:~:~997,wBONN _MINI
. .··
WHERE 'usG ·.· OFFICIALS);AGREED TO .. PARTICIPATE , AT , ·
0
:;·i:~~~~~~~~i~i§ti~i~~~~g~T~iJi~~:ITO . .•. _·-.. :;.:,;-; ,_.,'g;;;,.i,;;~;,g~~;f;~
·__ ···~~~E~~J~~~~ ·,·~~~~~·~t~~~~ B~~P~~~~C~~~~~!pn·,
,,....r,,_-o-c:·.c:.--.,.
. CONCESSIONS 'FOR);THI$)fAGREEMENT . POST, ' .- .
BE TIME -.TO ;,:CONSIDERA)'\TIUS, TYPE OF
...·.. , ('··i·',p,;t::;,:fl;J.;:~~iJi;'·~~~!fJ~l~f~;~;:~ .. . . ;.,PJi;·:J:;:,· -~-.·:,·, :.::.:·,c?:'>iV,~:,.;;;;:•;;n~;;;\;:,;;~~,\G%t
;
'-.··'.:·,·• .
,"'!.•
.:•,..
i
.,"
' . ' · .•
�.
.
'
IMMEDIATE
UNCLASSIFIED
WHITE HOUSE SITUATION ROOM
.. PAGE 02 OF 05
3.
(SBU) .BRUSSELS-BASED REPRESENTATIVE FOR 8 US FIRMS
WORLD LEADERS IN THE COMMUNICATIONS, INFORMATION AND
MEDIA SECTORS, AND L;CAL LEADERS IN THE EU COMMITTEE OF
THE AMERICAN CHAMBER OF'COMMERCE -- CALLED ON EST OFFICER
AND SENIOR TRADE ADVISER JUNE 5 TO DISCUSS COMMISSIONER
BANGEMANN'S PROPOSED INTERNATIONAL COMMUNICATIONS
···· CHARTER.
6 OF THE 8 FIRMS PRESENT HAD RECEIVED
INVITATIONS TO THE JUNE 29 INDUSTRY ROUNDTABLE ON THE
CHARTER (REF A) . ALL HAVE RELUCTANTLY DECIDED TO SEND
REPRESENTATIVES, ALTHOUGH IN MOST CASES IT WILL BE THE
SENIOR MANAGER FOR EUROPE, AND IN NO CASE WILL IT BE THE
CEO OF THE FIRM, AS REQUEST~D BY THE COMMISSION.
THE
INDUSTRY REPS SPECIFICALLY REQUESTED TO MEET AT THE US
MISSION IN. ORDER TO BE ABLE TO CONCEAL THE EXISTENCE OF
THE DISCUSSION FROM. THE COMMISSION.
THE CONTENTS OF THIS
MESSAGE SHOULD THEREFORE BE CONSIDERED SENSITIVE'
.
.
HOTOCOPY.
CLINTON LIBRARY P
.
.
US INDUSTRY'S .POSITION
4.
(SBU) INDUSTRY REPRESENTATIVES HAVE MAJOR CONCERNS
ABOUT THE ORGANIZATION AND OBJECTIVES OF THE CHARTER.
THEY ACKNOWLEDGE THE COMMISSION'S CLAIM THAT THE CHARTER
PROCESS WILL BE INDUSTRY LED, BUT OBSERVE THAT THE
COMMISSION'S CONCEPT OF INDUSTRY LEADERSHIP IS FOR THE
PRIVATE SECTOR TO PROPOSE REGULATORY SOLUTIONS WHICH
GOVERNMENTS WILL DEVELOP AND IMPLEMENT.
IT DOES NOT RELY
ON MARKET-BASED SOLUTIONS, WHICH US INDUSTRY SEES AS THE
BEST APPROACH TO MOST E~COMMERCE ISSUES.
NEVERTHELESS,
IT IS THE JUDGMENT OF BRUSSELS-BASED US INDUSTRY
. REPRESENTATIVES THAT IT WILL NOT BE POSSIBLE TO STOP THE
COMMISSION FROM GOING FORWARD WITH THE CHARTER IN SOME
FORM OR ANOTHER.
THE COMMISSION, AND COMMISSIONER
'
BANGEMANN PERSONALLY, HAVE INVESTED TOO MUCH IN THE
CHARTER TO LET IT DIE. THEREFORE, RATHER THAN BE
PRESENTED WITH A FAIT ACCOMPLI, US FIRMS INTEND TO WORK
FROM WITHIN TO DILUTE THE CONTENTS OF THE CHARTER AND
· DIRECT IT INTO. MORE ACCEPTABLE . CHANNELS . ·
:ltii~ii~:~:ii~:E;i~Tc~:-;t,~A·C~~·;~~~~~
' ~~j';ONLYi'•BE ':ABOUT, 10 · US REPRES
i>~~;;{'~\~h:;:7··=t.~(·~~g;;;~
. :1~~~:0PPOSED TO. 50 EUROPEAN. PART
r;,fij~~QJ:';;~t;l;£I~}g~ORLD >?'.>'IN . 1U)DIT:[ON '·' ·
,:.~~i~MEMBER(;GOVERNMENTS . WILt;·':,BE"·
: '~\:~lk;ovERNMENTS.
THE US . FIRMS ANTICIPATE THAT .THE COMMI .
\i~?if'WILI.i'i'.'BILL THEM AS·. SPEAKING FOR:'~ALL~i:oF.:;;:US/INDUSTRY/•: ·. <'::: .
·\!3~JSOMETHING WHICH THEY CLEARLY' ACKNOWLEDGE .THEY HAVE NO. : ..
,~~~~~~~T~ ~~~· T~~~Krl~~fft~?ss,~\~,~~<·';',. .,.
. ..: ::. ·i:·i,i·.::' ..
�·-
UNCLASS.IFIED
IMMEDIATE
WHITE HOUSE SITUATION ROOM
PAGE 03 OF 05
REPRISAL BY COMMISSIONER BANGEMANN AND HIS STAFF. THEY
HOPE TO BE ABLE TO EXTRICATE THEMSELVES FROM THE
SPOTLIGHT BY BILLING THEMSELVES AS SPEAKING FOR INDUSTRY
ASSOCIATIONS, AS OPPOSED TO INDIVIDUAL FIRMS~ WHERE
POSSIBLE, AND EVENTUALLY STEPPING BACK FROM THE PROCESS
AND LETTING ASSOCIATIONS TAKE THE PUBLIC LEAD.
,REF: A) BRUSSELS 2961; B) WEINSCHENK-HELMER FAX OF 6/1/98
6. (SBU) ALL EIGHT REPRESENTATIVES COMPLAINED THAT THE
COMMISSION HAS IN THE PAST TAKEN CAUTIOUSLY-WORDED
INDUSTRY STATEMENTS AND MISREPRESENTED THEM AS SUPPORT ·
FOR THE CHARTER. THEY EXPECT THAT THE COMMISSION WILL
PUT ITS OWN SPIN ON ANYTHING INDUSTRY SAYS, SO THEY PLAN
TO TRY TO PUBLISH.A FEW INDUSTRY ASSOCIATION STATEMENTS
IN ADVANCE OF THE MEETING TO GET THEIR POSITION OUT
CLEARLY. THEY WILL ALSO LOOK FOR OPPORTUNITIES IN THE
MONTHS AHEAD T.O RAISE THE CHARThR IN PRIVATE SECTOR
CONFERENCES AND .OTHER FORA WHERE THEY CAN HAVE MORE
INFLUENCE OVER THE PROCEEDINGS.
7. (SBU) .US INDUSTRY REPRESENTATIVES ARE CURRENTLY
ENGAGED IN DISCUSSIONS WITS EUROPEAN INDUSTRY .
REPRESENTATIVES TO SEE IF THEY CAN REACH A CONSENSUS ON A
JOINT POSITION PAPER IN ADVANCE OF THE JUNE 29 MEETING.
THE NEGOTIATIONS ARE NOT PROCEEDING SMOOTHLY. IN THE
.
.
.
VIEW OF US INDUSTRY REPS, EUROPEAN INDUSTRY HAS SIGNED.ON
FULLY TO THE COMMISSION'S INITIATIVE AND CANNOT BE
COUNTED ON AS A RELIABLE ALLY IN THIS GAME. THE
PROSPECTS OF THE TWO INDUSTRIAL GROUPS BEING ABLE TO
AGREE ON A JOINT STATEMENT ARE UNCERTAIN.
8~
(SBU) US INDUSTRY REPS SAY THEY HAVE BEEN TOLD THAT
THE COMMISSION-ENVISAGES THE END PRODUCT OF THE
·ROUNDTABLE AS BEING AN'ACTION AGENDA WHICH IDENTIFIES
·PRIORITY ISSUES TO BE RESOLVED, ASSIGNS THESE ISSUES TO
SPECIFIC INTERNATIONAL BODIES, AND ESTABLISHES A
TIMETABLE OR THEIR .RESOLUTION. . US INDUSTRY. REPS SEE
THIS AS .. A/PROGRAM;FORMORE REGULATION, SOMETHING WHICH
.· THEY.,HOPE~:·'ro¥AVOID'•ti!~AW~LIN·.THEIR .. DISCUSSIONS.:WITR:::'EUROPEAN ·· •:...
>·•i
..:~{!¥
;, ~~~~~~~i;~i~g~~~~,;I~4a,g~~~~~~~~~~~8~~y>·..
THAN:'THREEii~bR},';;~pc)fu{~!:j,:'.lllilY:TO DILUTE .THE LANGUAGE:,To ·.~AKEN :
9
' : ~·_:L~.··.·.A.I.·.· .·.T.s.·:~.•~.·~_~:_:g:_ ~·_.:·.:_~~.·_"·. .: ;i,G_I_•.:-_ .·.~:~.· ..~_·:.:~_\T,a·;·.~i~~g~~:_~kT~2~ :~···..F_~,~·~ .r.~.~.J.F_\_~{~· ~f.~·: .~i:.i'.·i~;. . . .
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'•!: ./' .: _•.· ,; _·.;· .·•. :_:.• :_.
'' ·
·.· .
<;}y;f ~
<.i~ ._•:_~.-t .·,;:-~~ ·' ~.1·_:;-~·. : ·
.
~·~ z~;~~f!~·;;~l'~J\W;•".jfj:;¢LINTON L!.~RA~f,~rHo~?C
POSSIBLK:::.TOWARD}j;,THE',::WTO,:. WHERE IT. HAS 'THE'FIRMEST'GRIP ON
·. EU POLICY~;\z.~·.AN])';~(AWA).r'}{FROM FORA LIKE THE OECD}');\:.;WHERE/TT -IS.··.·
..
,~~
2
.. ..
'i' .
.
�... IMMEDIATE
UNCLASSIFIED
WHITE HOUSE SITUATION ROOM
CLINTON LIBRARY PHOTOCOPY
PAGE 04 OF 05
RECOMMENDATION TO THE USG
9.
(SBU) US INDUSTRY REPS WELCOMED THE RESPONSES OF
SECRETARY DALEY AND UNDER-SECRETARY EIZENSTAT TO
COMMISSI,ONER BANGEMANN'S LETTER ON THE CHARTER (REF B).
THEY ASKED IF IT WOULD BE POSSIBLE TO GET A PUBLIC USG
STATEMENT ALONG THESE LINES.
IN THE ABSENCE OF SUCH A
CLEAR PUBLIC STATEMENT, THEY WORRIED-THAT THE COMMISSION
WOULD BE FREE T() MISREPRESENT THE US GOVERNMENT POSITION,
IN THE WAY THAT IT HAS MISREPRESENTED THE US INDUSTRY
POSITION IN THE PAST.
10.
(SBU) WHILE AGREEING WITH THE US GOVERNMENT POSITION
THAT THE CHARTER IS UNNECESSARY, AND THAT EXISTING
INTERNATIONAL-COORDINATION IS ADEQUATELY ADDRESSING THE
PROBLEMS OF ELECTRONIC COMMERCE, THEY NEVERTHELESS ARE
CONVINCED THAT THE CHARTER IS INEVITABLE. THEY WORRY
ABOUT A REPEAT OF THE JULY . 1997 BONN MINISTERIAL
.
CONFERENCE, WHERE USG OFFICIALS INSISTED THAT THEY WOULD
NOT PARTICIPATE, BUT THEN AGREED TO COME AT THE LAST
MINUTE AND WERE IN A POOR POSITION TO INFLUENCE THE
OUTCOME.
THEY SUGGESTED THAT IT MIGHT BE MORE ADVISABLE
FOR THE USG TO TAKE A MORE ACTIVE APPROACH TO THE
CHARTER, AGREEING TO PARTICIPATE NOW, WHILE IT IS STILL
BEING DEVELOPED, AND EXTRACTING APPROPRIATE CONCESSIONS
FOR THIS AGREEMENT.
'
COMMENT
'•
-------
11.
(SBU) CO:MMENT: THE PRIVATE SECTOR PARTICIPANTS IN
THIS MEETING, LIKE THE OFFICERS OF THIS MISSION, SPEND
THEIR DAYS WORKING THE CORRIDORS OF THE COMMISSION. LIKE
US, THEIR VIEW OF THE WORLD INEVITABLY IS INFLUENCED BY
THEIR FOCUS ON THE EU. . IT WOULD NO.T BE SURPRISING IF
THEY REACHED A_SOMEWHAT DIFFERENT_CONCLUSION AS TO THE
COSTS AND BENEFITS OF ACCOMMODATING THE COMMISSION'S
INITIATIVE THAN THEIR WASHINGTON-COUNTERPARTS.
HOWEVER,
~1,,~,;,;·~~.l ~~;~;SELS .29~t.';~l%?.A~~.~~-HELMER FAX
· ;;·:;THEIR DAILY CONTACT WI'I'H COMMISSION OFFICIALS MAKES
);?:':EMINENTLY. QUALIFIED· TQ'·TJUDGE,~;THE MOTIVES AND INTENTIONS
''f.~~.:.~_-pF/~CC?.:t:fMISSIONER 'BANGEMa.N':'~\_._HIS'>STAFF. . ·.·· ·. · . ····· · ''
·,;·-·",.,
•·•,,., . . . . ·.!-'.,
••
''
-"I
,I
12 >:'(SBU)
I
•
•\
•
·,··.,;
LIKE OUR .INDUSTRY CONTACTS, WE DO NOT
Y THAT .. THE C_O:MMISSION WILL TAKE THIS INITIATIVE OUT OF
., SIMPLY· BECAUSE THE US SAYS IT. IS UNNECESSARY. BANGEMANN ·•
·it·.~D .HIS STAFF WILL PRO~EED, A1JNH~lEssfFTEoHE BONN .
�'
.
......
UNCLASSIFIED
IMMEDIATE
WHITE HOUSE SITUATION ROOM
PAGE 05 OF 05
MINISTERIAL, AND SEEK'TO BUILD IRRESISTIBLE PRESSURE ON
·.THE US TO PARTICIPATE.
IF THE US IS NOT PREPARED TO
ACTIVELY AND VOCALLY.OPPOSE THE CHARTER, THEN IT MAY BE
TIME 'J70 CONSIDER ACTIVELY COOPERATING, IN EXCHANGE FOR .
SIGNIFICANT CONCESSIONS ON ITS CONTENT AND ORGANIZATION.
END COMMENT.
(DRAFTED:ECON:CHELMER)
KURSCH
<ASECT>SECTION: 01 OF 01
<ASSN>3459
<MSGID> M3322251
. ,.:~
.
.
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UNCLASSIFIED
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ACTION EB-00
INFO
LOG-00
DODE-00
TEDE-00
OPIC-Ol
SAS-00
AMAD-Ol
EAP- 01
I~~-00
I0-00
SS0-00 · STR-00
AID-00
I'I1CE- 00
ARA-Ol
EXME-00
ITC-01
TRSE-00
i~onw
CIAE-00
EUR-Ol
ADS-00
DRL-04
: i------------------500491
R 06113SZ·JUL 98
FM USEU BRUSSELS
TO SECSTATE WASHDC
INFO USDOC WASHDC
WHITE HOUSE WASHDC
ALL EUROPEAN UNION POST COLLECTIVE
AMEMBASSY TOKYO
.AMEMBASSY OTTAWA
CIP-00
E-00
NSAE-00
G- 00
CTME-00
UTED-00
OMB-Ol
NFAT-00
061157Z /38
UNCLAS SECTION 01 OF OS BRUSSELS 004174
SENSITIVE
STATE
STATE
USDOC
USDOC
WHITE
PARIS
PASS USTR FOR ABELSON
FOR EB/CIP, _EB/TPP/O'BRIEN AND BUR/ERA
FOR NTIA ~ BURR
.
FOR ITA - WELLBERY
HOUSE FOR MAGAZINER
ALSO FOR OECD
E.O. 12958: N/A
TAGS: EINT, ECPS_, :ETRD, EUN
SUBJECT: ELECTRONIC COMMERCE: CHARTER ROUNDTABLE GIVES
I i
'
UNCLASSIFIED
BRUSSELS
0> OF
~jl
41 7<
BIRTH T.O THE .GLO,t BUSINESS DIALOGUE
j:
•,
.
1.
(U) THIS MESSAGE IS SENSITIVE BUT UNCLASSIFIED.
,
I L
... · ·
PLEASE DO NOT DISTRIBUTE IT OVER THE INTERNET OR IN OTHER
PUBLICLY-ACCESSIBLE CHANNELS.
2.
( SBtl) SUMMARY!
69 FIRMS AND OTHER PRIVATE ENTITIES
PARTICIPATED IN
JUNE 29 ROUNDTABLE HELD TO DISCUSS
COMMISSIONER BAJN'Gl~~.NN' S ·PROPOSAL FOR AN INTERNATIONAL
. COMMUNICATIONS
ON THE SURFACE, THE PRIVATE
SECTOR wAS IN
_BUT ACCORDING TO SOME US FIRMS
WHICH PARTI"'T·'~"~''C'"
THE EVENT IT WAS REALLY THE
COMMISSION
THE SHOW, WORKING THROUGH A GROUP OF
wHICH MANAGliD THE . EVENT AT.
. OS FIRMS COMPLAIN THAT BERTELSMANN
.
SERvED AS
AN IRON.
wHO
:;;,: NE~THEr;E:SS
.
.. ' .
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OPERATIONS ARE MORE REPRESENTATIVE, OPEN AND TRANSPARENT
THAN THE GROUP WHICH RAN THE ROUNDTABLE .
(SBU) COMMISSION STAFF ARE PREDICTABLY PLEASED BY THE
·3.
OUTCOME OF THE CONFERENCE, SEEING IT AS AN ENDORSEMENT OF
BANGEMANN' S CALL J::OR AN INTERNATIONAL COORDINATING
MECHANISM FOR ISSUES RELATED TO THE INTERNET AND ECOMMERCE. THEY OBSERVE THAT IF THE GBD EVOLVES"AS
ANTICIPATED INTO·~ ORGANIZATION ALONG THE LINES OF THE
TRANSATLANTIC-BUs:riNESS DIALOGUE (TABD); IT WILL NEED SOME
. SORT OF GOVERNMENTAL COUNTERPART ANALOGOUS TO THE NEW
TRANSATLANTIC AGE~DA (NTA). BANGEMANN'S STAFF REPORT
THAT THE COMMISSIONER PLANS TO WRITE TO-SECRETARY DALEY
AND UNDER SECRETARY EIZENSTAT SOON TO PROVIDE HIS
PERSPECTIVES ON THE ROUNDTABLE. END SUMMARY.
I
----------------1,--------·-
A PRIVATE SECTORI~OUNDTABLE
·---------------~l,---------
4.
(SBU) THE COMMISSION'S JUNE 29 ROUNDTABLE ON THE
PROPOSED GLOBAL CHARTER FOR THE INTERNET ATTRACTED 69.
1
PARTICIPANTS, BUT FEW OF THE CEO'S THAT THE·COMMISSION
WAS. SEEKING. 10 US FIRMS SENT REPRESENTATIVES, IN. MOST
CASES THE.IR HEADS OF EUROPEAN OPERATIONS. EUROPEAN FIRMS
DOM_INATED THE ROUNDTABLE, BOTH IN NUMBERS AND IN
POSITIONS OF CONTROL. BERTELSMANN BOARD MEMBER (AND
REPUTED FUTURE CEO) THOMAS MIDDELHOFF SERVED AS CHAIR AT
THE INVITATION OF COMMISSIONER BANGEMANN. IN ADDITION,
BERTELSMANN REPS CHAIRED PRE-EVENT ORGANIZATIONAL
. ACTIVITIES AND THE DRAFTING SESSION wHICH PRODUCED-THE
PUBLIC STATEMENT'OF THE CONCLUSIONS OF THE MEETING.
EUROPEAN FIRMS, MOST OFTEN GERMAN FIRMS; REPORTEDLY WERE
ALMOST ALWAYS THEiFIRST TO SPEAK ON THE ISSUES DISCUSSED,
ONCE THE ASSIGNEDfLEAD SPEAKER HAD HIS SAY (THEREWERE NO
FEMALE LEAD SPEAKERS) . MOREOVER, BECAUSE OF THEIR
NUMBERS, EUROPEAN !FIRMS HAD A MAJORITY OF THE SPEAKING
TIME. :INTERESTINGLY, BERTELSMANN WAS THE ONLY FIRM WITH
·
•I I
TWO REPRESENTATiiiS AT THE MEETING.
'
s.
(SBUl OFFICI~s WE~ PRESENT FROM THE COMMissioN AND
THE THREE EU "TROIKA" GOVERNMENTS (AUSTRIA, GERMAN'{ AND
THE UK). A MITI!bFFICIAL ATTENDED UNDER COVER OF
REPRESENTING A TRADE ASSOCIATION. COMMISSIONER BANGEMANN
PRESENTED. OPEN:mq IREMARKS IN THE MORNING AND THE
·
. AFTERNOON, AND COMMISSIONER SIR LEON BRITTAN SPOKE ON ECOMMERCE AND THE tro~ BUT NO OTHER OFFICIALS SPOKE. OEcD
DEPUTY SECRETARY GENERAL JOANNA SHELTON WAS PRESENT, BUT
DID NOT SPEAK. ·i
I'
.
6,
(SBU) THE DAYIWAS DIVIDED INTO TWO PARTS: A MORNING
SESSION ON SUBSTANTIVE ISSUES AND AN AFTERNOON-SESSION ON
J I
BRUSSELS 02 OF OS 4174
. ·.BIRTH TO 'tHE GLOB¥ BUSiNESS DIALOGUE
.
'·· .:... ·.
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~ II
i I
7.
(SBU) ACCORDING TO THE US PARTICIPANTS,. THERE WAS
GENERAL AGREEMENT)AMONG THE FIRMS PRESENT ON MOST OF THE
SEVEN SUBSTANTIVE·ISSUES, WITH THE EXCEPTION OF IPR'AND
LIABILITY. HERE THERE WERE PREDICTABLE DIFFERENCES
BETWEEN CONTENT PROVIDERS AND SERVICE PROVIDERS. US
FIRMS REPORT THAT THEY SOUGHT IN THE PRE-ROUNDTABLE
ORGANIZATIONAL MEETINGS TO KEEP LIABILITY OFF THE AGENDA,
BELIEVING THAT .THIS ISSUE IS NOTYET RIPE FOR FORMAL
INTERNATIONAL DISCUSSION, BUT WERE OVERRIDDEN BY
BERTELSMANN REPS. US PARTICIPANTS BELIEVE THAT
BERTELSMANN STAFF· KEPTLIABILITY.ON THE AGENDA AT THE
BEHEST OF COMMISSIONER BANGEMANN:
B.
(SBUl THE AFTERNOON SESSION, WITH AN AL_L-EUROPEAN
CAST OF LEAD SPEAKERS, DISCUSSED THE CREATION OF A GLOBAL
BUSINESS DIALOGUE· (GBD) . THE GBD WOULD BE MODELED ON THE
TRANSATLANTIC BUSINESS DIALOGUE (TABD), BUT WITH WIDER
GEOGRAPHICAL. REP.RESENTATION; AND A SUBSTANTIVE SCOPE
LIMITED TO ELECTRONIC COMMERCE AND ISSUES AFFECTING ITS
DEVELOPMENT. CHAIRMAN MIDDELHOFF PROPOSED THE CREATION
OF A STEERING COMMITTEE FOR THE GBD WHICH HE WOULD
PERSONALLY ORGANIZE, DRAWING PERHAPS ON THE FIRMS WHICH
SERVED AS -LEAD SPEAKERS AT THE ROUNDTABLE. us
PARTICIPANTS SAY THEY STRONGLY RESISTED MIDDELHOFF'S
EFFORTS.TO "PACK 1THE COMMITTEE" AND THAT, IN THE END, ITS
COMPOSITION WAS LEFT OPEN. IN THE DAYS SINCE THE
ROUNDTABLE, SOMEJt{s FIRMS SAY THE PROPOSED COMPOSITION OF
THE STEERING CO~~tTTEE ~S_EVOL~ED TO INCLUDE A BROADER,
MORE GLOBALLY RE~~ESENTED'GROUP, ALTHOUGH ANOTHER. RUMOR
HAS IT THAT BERTELSMANN ALREADY HAS SCHEDULED A FIRST
·
1 I
·
ORGANIZATIONAL MEETING LIMITED TO ITS PREFERRED GROUP ..
I
·
(COMMENT: THE MANAGEMENT OF THIS INITIATIVE REMAINS LESS
THAN TRANSPARENT} I EVEN TO THE US FIRMS- MOST CLOSELY
INVOLVED.)
•
'
•
1
9.
(SBU) THE s·TEERING COMMITTEE IS SUPPOSED TO PRODUCE A
PROPOSED PLAN FOR'THE.GBD BY SEPTEMBER, IN TIME FOR IT TO
BE INTRODUCED AT THE OCTOBER OECD CONFERENCE ON
ELECTRONIC COMMERCE IN'OTTAWA. THE FIRST FULL MEETING OF
· THE GBD IS PLANN$D TO TAKE_J'LACE DURING THE FIRST HALF OF
1999. AUSTRIA HAS OFFERED TO HOST THIS EVENT IN VIENNA,
BUT :OTHER SITES ARE POSSIBLE. us. FIRMS WHICH
.
'!
.
.
.
PARTICIPATED IN THE ROUNDTABLE SAY THEY FOtJGHT, BUT LOST,
A BATTLE TO KEEP 'THE POS.SIBILITY OF A GBD MEETING AN OPEN
ISSUE, OR AT LEAST TO AVOID A FIXED DEADLINE FOR HOLDING
SUCH A MEETUiG. ; THEY FEEL THEY ARE NOW COMMITTED TO SOME
SORT OF GLOBAL PRIVATE SECTOR CONFERENCE DURING THE FIRST
HALF OF NEXT. YEAR (NOTE: DURING THE. GERMAN PRESIDENCY OF
. THE EU COUNCIL. i END NOTE. )
'I
.
;I
10.
(SBU) A PUBLIC STATEMENT OF THE CONCLUSIONS OF THE
ROUNDTABLE WAS PRODUCED IN A CONCURRENT DRAFTING SESSION.
THE STATEMENT Emk>RSES IMPROVED COORDINATION BETWEEN
·
INDUSTRY, CONSUMERS, GOVERNMENTS, AND INTERNATIONAL
ORGANIZATIONS TO\AnDRESS CRITICAL ISSUES FOR THE GLOBAL
. ONLINE ECONOMY. i IT STATES THAT THIS COORDINATION SHOULD
TAKE'PLACE AT A'GLOBAL LEVEL, ·AND PROPOSES TO SET UP A ·
BUSINESS STEERING IC\)MMITTEE AND A GLOBAL! BUSINESS .. ...
DIALOGUE. T 0 E. N_s¥r* THAT. I.NITI.ATIVES.J:N THI.S AREA R,EMAIN ......
..
BUSINESS-LED AND <?LOBAL. THE BUSINESS. .
.
COMMITTEE .
WILL _ANNOUNCE IN *EJ?TEMBER THE. •··· ..·.. ··
. .·. . . .. . . .· ·' ··
·.i:>"''-'">L'<u>< FOR. THE ~ 1 ~ST
.
. ..·
.
.. .
.
.
. : ·: .
'·''~''''''''··
: TO OCCUR IN
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~~- (SBU} AS INDICATED ABOVE, US PARTICIPANTS WERE
UNHAPPY WiTH niE 'WAY THAT BERTELSMANN AND OTHER GERMAN
BRUSSELS
03 OF OS
4174
BIRTH TO THE GLOBAL BUSINESS DIALOGUE
FIRMS BANDED TOGETHER TO ORCHESTRATE THE CONFERENCE. AS
ONE us PARTICIPANT PUT IT, "BANGEMANN'S OLD BOYS NETWORK
I'
.
HAD BEEN GIVEN THEIR ORDERS." BERTELSMANN BOARD MEMBER
MIDDELHOFF WAS CRITICIZED FOR HIS IRON-FISTED APPROACH TO.
CHAIRMANSHIP OF THE EVENT, THE MOST EGREGIOUS EXAMPLE
BEING HIS ATTEMPT TO PACK THE STEERING COMMITTEE. A FEW
US FIRMS, NOTABLY BERTELSMANN COMMERCIAL- PARTNER AMERICA
ONLINE (AOL), WERE ALSO CRITICIZED FOR SUPPORTING THE
EUROPEAN EFFORT TO STEER THE ROUNDTABLE.
(SBU) US FIRMS WERE ALSO uNHAPPY WITH THE
COMMISSION. SEVERAL SOURCES SAID THAT THEY HAD SPOKEN TO
BANGEMANN STAFF ABOUT A JOINT LINE TO TAKE WITH THE PRESS
AND HAD BEEN TOLD THAT THERE SHOULD BE NO PUBLIC COMMENT
AS'THIS .WAS A "PRIVATE" EVENT. HOWEVER, THE COMMHiSION
HAD A PRESS STATEMENT OUT THAT SAME DAY~ US FIRMS ALSO
REPORT THAT WHEN THEY COMPLAINED TO COMMISSION OFFICIALS
ABOUT THE WAY BERTELSMANN WAS RUNNING THINGS, THEY WERE
TOLD TO TALK DIRECTLY TO BERTELSMANN AS THIS WAS AN
INDUSTRY-LED CONFERENCE AND THE COMMISSION DID NOT WANT
TO INTERFEREc
12.
B..
(SBU) DESPIT~ THESE COMPLAINTS, US FIRMS WHICH
PARTICIPATED IN THE ROUNDTABLE BELIEVE THEY MANAGED TO
NEGOTIATE AN ACC~~TABLE PACKAGE IN THE STATEMENT OF THE
CONCLUSIONS OF THE CONFERENCE. THEY PLAN TO CONTINUE TO
PARTICIPATE IN ~T THEY SEE AS AN UNSTOPPABLE, IF
.
UNNECESSARY, EXE~CISE. THEY SAY THEY INTEND TO WORK HARD
~~E~~~~!a~:~TH~rlj~~~;~~~:~:~:~~i~~Iz~~~~~!N:E
JEU
A LETTER FROM TH
COMMITTEE OF THE AMERICAN CHAMBER OF
COMMERCE TO MIDD !)HOFF, WITH COPIES TO BANGEMANN,
SECRETARY DALEY ~ AN APPROPRIATE JAPANESE· GOVERNMENT
OFFICIAL, INSISTING THAT BOTH THE STEERING COMMITTEE AND
THE GBD AS A WHOtE MUST BECOME MORE OPEN AND DEMOCRATIC
IF THEY ARE TO HAVE ANY PUBLIC CREDIBILITY AND .
ACCEPTANCE.
THE.
COMMISSI~N D~CLARES
A SUCCESS
14.
(SBU) COMMISSIO~ STAFF ARE PREDICTABLY. PLEASED BY
THE OUTCOME OF THE CONFERENCE, WHICH THEY SEE AS
ENDORSEMENT OF BANGEMANN' S CALL FOR AN INTERNATIONAL
COORDINATING MECHANISM FOR ISSUES RELATED TO THE INTERNET
AND E-COMMERCE. 1TIMOTHY FENOULHET, ADVISER TO DG XIII
(TELECOMS &: INFO SOCIETY) DIRECTOR GENERAL ROBERT VERRUE
AND ONE OF THE COMMISSION OFFICIALS MOST CLOSELY INVOLVED
IN ORGANIZING THE [ROUNDTABLE, TOLD EST OFFICER THE·.
•
COMMISSION WAS PllEASED TO SEE THE
SECTOR "TAKING.
1
UP COMMISSIONER,
GEMANN'S:
.""'""'T.noo
8
.i
~~~~i~~~;f~~~t ~=:_ ;~~HI0s ~6\4,
GET THE -.GBD
ORGANIZE ITSELF. ·
··· <s~6;~- ~-i~o l ~E:{.~Jl';·j-
nus STAGE AS
•'···-.·-·•·-•·-·-~•~ COMMISSION W
INTERNATIONAL ORI
.·.·.·.·
:-''·
[4] 009/018
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j
I
ORGANIZATIONS ITS PERCEPTIONS OF THE ROUNDTABLE AND THE
GBD, iAND TRY TO CONVINCE THEM TO LEND' THEIR SUPPORT. HE
EMPHASIZED THE CONTINUING INTEREST OF THE COMMISSION IN
GAINING US GOVERNMENT SUPPORT, AND S~D THAT COMMISSIONER
BANGEMANN PLANS TO WRITE TO SECRETARY DALEY AND UNDER.
SECRETARY EIZENSTAT SOON TO PROVIDE HIS PERSPECTIVES ON
THE ~OUNDTABLE. .HE ALSO INDICATED THAT THE COMI'IISSION
WILL,HOST A JULY 22 BRIEFING SESSION IN BRUSSELS FOR
TRADE AND CONSUMER ASSOCIATIONS TO INFORM THEM ABOUT THE
GBD.:
.
1 {SBU)
PRESSED ABOUT THE COMMISSION'S COMMITMENT TO
INDUSTRY SELF-REGULATION, FENOULHET RESPONDED THAT A
GOVE~ENT ROLE IS.ESSENTIAL TO THE RESOLUTION OF SOME
ISSU~S.
HE CITED INTELLECTUAL PROPERTY, TAXES AND
TARIFFS AS EXAMPLES. HE INSISTED, HOWEVER, THAT THE
COMM*SSION TRULYJSUPPORTS THE PRINCIPLE OF NO MORE
REGULATION THAN IS ABSOLUTELY NECESSARY TO PROVIDE
CERTAINTY AND SEaURITY IN THE ONLINE ENVIRONMENT. HE
.
! '
.
MAINTAINED THAT THIS WAS ONE OF THE DRIVING FORCES. BEHIND
16.
BRUSSELS
04 OF 05
4174
B-IRTH TO THE GLOBAL BUSINESS DIALOGUE
BANGEMANN'S INITIATIVE. IN THE ABSENCE OF INTERNATIONAL
COORDINATION, NATIONAL GOVERNMENTS WILL TAKE INDEPENDENT
APPROACHES WHICH COULD LEAD TO DUPLICATE OR EVEN
CONFLICTING REGULATION. HE CONCLUDED THAT IF THE PRIVATE
SECTOR COMES FORWARD WITH SOLUTIONS, WHICH CAN BE
EFFECTIVELY IMPLEMENTED AND ENFORCED ON AN INTERNATIONAL
BASIS~ THEN THE COMMISSION WILL SUPPORT THEM. HE EVEN
EXTENDED THIS TO THE REALM OF PRIVACY, SUGGESTING THAT
"IF THE PRIVATE SECTOR CAN DEVELOP EFFECTIVE SELFREGULATORY CODES, 1THEN THIS WILL HAVE TO BE TAKEN INTO .
ACCOUNT."
17. _I (SBU) FENOU~~ET'S TAKE-ON THE DISCUSSION OF
StJBSTANTIVE ISSUESI WAS THE SAME AS THAT OF THE US
•
·I
•
BUSINESS PARTICI~l)NTS. _ THERE WAS BROAD CONSENSUS ON ALL
SEVEN 'ISSUES, EXaEPT FOR IPR AND LIABILITY, WHERE THERE
WERE: THE EXPECTEq ISEcTORAL DIFFERENCES. HE SAID THAT HE
PERCEIVED NO DIFFERENCE BETWEEN GEOGRAPHIC REGIONS IN
.
THEIR APPROACHES ITO THESE ISSUES. HOWEVER, . . . .
. REPRESENTATIVES FROM DEVELOPING COUNTRIES DID RAISE A FEW
~~~~:~:~~~~!F~u:~~~R~~:A:~~=~~~~~~~A'i'HE.
DEvELOPING WORLD ~NTO THE GBD PROCESS WILL BE A DIFFICULT
CHALLENGE. THE: ;9MMISSION WANTS THE GBD TO BE BROADLY
REPRESENTATIVE,
DOES NOT WANT TO SEE IT BECOME A '
"UNITED. NATIONS ; 1 PE" BODY.
w
1.8. ' (SBU) ASKED :ABOUT THE DIFFERENCE BETWEEN THE
PROPOSED GBD CONFERENCE DURING THE FIRST HALF OF 1999 AND
CO~ISSIONER BAl:<JGlatG.NN' S PROPOSAL FOR A MINISTERIAL
.
·CONFERENCE IN
DURING THIS SAME PERIOD, FENOULHET ..
HAD BEEN MUCH CONFUSION ABOuT TiUS.
cm-tMissr· oN'ER BANGEMANN
··.HAD.
.
~ii~sii;~±;;i
HAD
..
:.
.'
.;.
:·
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REASON WHY IT HAS 'TO BE IN AUSTRIA.
19. ,(SBU) BANGEMANN CABINET OFFICIAL PAUL VERHOEF TOLD
EST OFFICER THAT COMMISSIONER BANGEMANN WAS VERY PLEASED
.WITH;THE OUTCOME cJF THE CONFERENCE. HE.SAID THE
COMM~SSIONER FEE~SI THE GBD COULD BE THE PERFECT MECHANISM
TO ADDRESS THE IN1 1ERNATIONAL COORDINATION PROBLEM HE
T
IDENTIFIED WHEN HE PROPOSED THE CHARTER, BUT IT IS UP TO
INDUSTRY TO DELIVER. VERHOEF ADDED, HOWEVER, THAT EVEN
1
WITH;AN EFFECTIVE 1bLOBAL BUSINESS DIALOGUE, THE
1
. COMMISSION STILL S EES A NEED FOR SOME SORT OF
INTERNATIONAL GOV:ERNMENT FORUM WHICH CAN INTERACT WITH
THE GBD. HE OBSERVED THAT THE TRANSATLANTIC BUSINESS
DIALOGUE (TABD) HAS ITS COUNTERPART IN THE NEW .
TRANSATLANTIC AGENDA (NTA) . SOMETHING ANALOGOUS TO THE
NTA WILL NEED TO BE DEVELOPED TO GIVE GOVERNMENTS AN
INTERFACE WITH ~HE GBD.
20. •(SBU) VERHOEF SAID COMMISSIONER BANGEMANN RECOGNIZES
THAT 1THE GBD PROCESS WILL ULTIMATELY FAIL WITHOUT THE
SUPPORT OF THE US GOVERNMENT. HE ALSO NOTED BANGEMANN'S
INTENTION TO WRITE TO SECRETARY DALEY AND UNDER SECRETARY
EIZENSTAT. ·IN ADDITION, HE SUGGESTED THAT THEY MIGHT
WANT;TO MEET ON THE MARGINS OF THE OTTAWA CONFERENCE,
WHICH ALL THREE CURRENTLY ARE EXPECTED TO ATTEND, BY
WHICH TIME THE GBD: STEERING COMMITTEE WILL HAVE ANNOUNCED
ITS PLANS, AND THE, CHARACTER. AND CONTENTS OF THE GBD
PROC~SS WILL 'BE CLEAR.
____ i __________ _
AN UGLY DUCKLING
21. i (SBU) COMMENf'i: THE COI'IMISSION' S CHARTER INITIATIVE
HAS HATCHED THE GLOBAL BUSINESS DIALOGUE. TIME WILL TELL
WHETHER THIS UGLYf'buCKLING WILL BECOME A SWAN, BUT WE CAN
BE SURE THAT CO~ ~SIONER BANG~MANN WILL CONTINUE .TO TAKE
A CLOSE INTERESTi N ~TS CARE AND FEEDING.
(DRAFTED BY
.,
BRUSSELS
·.· I
OS OF
orl
..
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I I
BIRTH TO THE GLOBAL BUSINESS DIALOGUE
! !
. ECON: CHELMER) ·
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Withdrawal/Redaction Sheet
Clinton Library
DATE
RESTRICTION
DOCUMENT NO.
AND TYPE
SUBJECTffiTLE
· 001. cable
From AmEmbassy Singapore re:Bilat Meeting with Hong Kong (2
pages)
06/08/98
P5
002. cab!~
From AmEmbassy Singapore re: Bilat Meeting with Chinese Taipei
(2 pages)
06/09/98
P5
003. cablt<
From AmEmbassy Singapore re: Bilat Meeting with China (3 pages)
06/09/98
P5
From AmEmbassy Singapore re: Bilat Meeting with Thailand (2
pages)
06/09/98
P5
From AmEmbassy Singapore re: Bilat Meeting with Japan (2 pages)
06/09/98
P5
From AmEmbassy Brussels re: Electronic Commerce: Magaziner and
PM Dehaene (7 pagesY
·
06/09/98
P5
I
I
004.
cab!~
I
i
005. cabfe
I
· . 006. cable
'.
COLLECTION:
Domestic Policy Council
Ira Magaziner (Electronic Commerce)
OA/Box Number: 13116
CLINTON LIBRARY PHOTOCOPY
FOLDER: TITLE:
Belgiurp
Rhonda Wilson
rw108
1
RESTRICTION CODES
Presidential Records Act- [44 U.S.C. 2204(a)]
Pl National:Security Classified Information [(a)(l) of the PRA]
P2 Relating:to the.appointment to Federal office [(a)(2) of the PRA]
·
P3 Release '.fOUid violate a Federal statute [(a)(3) of the P,RAJ
. P4 Release would disclose trade secrets or confidential commercial or
financial:information [(a)(4) of the PRA]
PS Release would disclose confidential advise between the President
and his advisors, or between such advisors [a)(S) of the PRA]
P6 Release ~ould constitute a clearly unwarranted invasion of
personal privacy [(a)(6) of the PRA]
. C. Closed in accordance with restrictions contained in donor's deed
of gift.
PRM. Pers~nal record misnle defined in accordance with 44 U.S.C.
2201(3).
RR. Docu~ent will be reviewed upon request.
Freedom of Information Act - [5 U.S.C. 552(b)]
'b(l) National security classified information [(b)(l) of the FOIA]
b(2) Release would disclose internal personnel rules and practices of
an agency [(b)(2) of the FOIA]
b(3) Release would violate a Federal statute [(b)(3) of the FOIA]
b(4) Release would disclose trade secrets or confidential or financial
information [(b)(4) of the FOIA]
b(6) Release would constitute a clearly unwarranted invasion of
personal privacy [(b)(6) of the FOIA]
·b(7) Release would disclose inform.ation compiled for law enforcement
purposes [(b)(7) of the FOIA]
b(S) Release would disclose information concerning the regulation of
financial institutions [(b)(8) of the FOIA]
b(9) Release would disclose geological or geophysical information
concerning wells [(b)(9) of the FOIA]
�06/10/98
09:56
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EB/CIP RM2533A
l4J 002/021
UNCLASSIFIED
-Printed By: Jeffery E. Zinsmeister
ACTIO,N EAP-01
CIAE-00. CIP-00
ACDE-00 AID-00
UTED-00
EXIM-01 E-00
EB-00
ADS-00
ITC-01
TEDE-00 INR-00
IM~lC-01
ss~oo
SS0-00
SP-00
OPIC-01 CI0-00
/01SW
SAS-00
TRSE-00 USIE-00 G-OO
------------------46BSFE OB183.2Z /45
P OS062SZ JUN 98
FM AMEMBASSY SINGAPORE
TO SECSTATE WASHDC PRIORITY 1944
INFO lUSDOC WASHDC PRIORITY
APEC COLLECTIVE PRIORITY
USMISSION GENEVA PRIORITY
FCC WASHDC PRIORITY
INFO : LOG-00
DODE-00
H:01
OMB-01
SVC-00
ACDA-OB
SRPP-00
CTME-00
FRB- 00NSAE-00
STR-00
UNCLAS SINGAPORE 002505
SENSITIVE
I
GENEJA PASS USTR
FCC foR KENNARD, FITZGERALD, AND WU
USDOC FOR NTIA/STEINOUR
STATE ALSO FOR EAP/CIP. AND EAP/CM
STAT~ PASS USTR FOR CORBETT
E.O. :12958: .N/A·
. TAGS ; ECPS, ETRD, APE CO" USTR, HK
SUBJECT: B~LAT MEETING WITH HONG K9NG AT APEC TELMIN 3
SENSITIVE BUT. UNCLASSIFIED - PLEASE PROTECT ACCORDINGLY
1. SUMMARY: IN THE U.S.-HONG KONG BILAT MEETING AT APEC TELMIN 3,
THE-U.S. DELEGATION URGED HONG KONG TO TAKE A LEADING ROLE ON
. ACCOUNTING RATE REFORM AND TO USE THE LIBERALIZATION PROCESS TO
LEAD THE HONG KONG TELECOMS MARKET TOWARDS OPEN COMPETITION.
HONG,1 KONG DELEGATES AGREED ON THE NEED FOR RAPID PROGRESS ON
ACCOUNTING RATE REFORM OVER THE NEXT FIVE MONTHS AND WILL PROPOSE
PLANS FOR A TRANSITION TO THE NEW REGIME AT THE JUNE 8 MEETING OF
THE INTERNATIONAL TELECOMMUNICATIONS UNION (ITU) FOCUS GROUP ON
SETTLEMENT RATE REFORM.- -END SUMMARY.
2. DURING A JUNE 4 BILATERAL MEETING AT THE THIRD APEC
TELECOMMUNICATIONS MINISTERIAL IN SINGAPORE, DIRECTOR GENERAL OF
TELECOMMUNICATIONS ANTHONY WONG SAID HE AGREED WITH AMBAS.SADOR
VONYA MCCANN ABOUT THE NEED TO MAKE THE MOST OF THE NEXT FIVE
MONTHS IN THE ITU FOCUS GROUP ON SETTLEMENT RATE REFORM.
LIKEWISE, MR. WONG AGREED WITH AMBASSADOR MCCANN THAT THE FOCUS
GROUP SHOULD AVOID DEVELOPING COST METHODOLOGY AND FOCUS ON
DEVELOPING A TRANSITIONAL MECHANISM. HE SAID-HE WAs PREPARING A.
PAPER FOR THE JUNE 8_ MEETING, IN WHICH HE WOULD FOCUS ON.THE
TRANSITION FROM THE CURRENT REGIME TO A MARKET-BASED MECHANISM OF
. ACCOUNTING RATES.-
.' o:
3. MR. WONG SAID HIS PREFERENCE WAS FOR A PROXY COST-BASED
TERM,INATION RATE AUGMENTED BY A TRANSITIONAL UNIVERSAL SERVICE
CHAR~E. ·THE LATTER \'JOULD·HAVE AN ELEMENT OF;.
'WHICH'.EACH
COuNTRY WOULD DETERMINE FOR ITSELF <:
NO HIGHER THAN THE CURRENT .'RATES , ·...
PLOWED BACK INTO TELECOMMUNICATIONS
. AMBASSADOR MCCANN NOTED THAT THE' U; "'-··O':·.Ll'J._Ll'. ::f<
!~:;Ji;;\;'2/~~~:-;, =~v~~~~ ~~~~ -~~:R:;;,·~:-;··~-~~~~~¥?~~~~~~:~~!iti~~
:i
·J.
PY
�06/10/98.
09:57
'5'202 647 0158
EB/CIP RM2533A
UNCLASSIFIED
Printed By: Jeffery E. Zinsmeister
ACCEPT THIS PRINCIPLE. CONCLUDING THE DISCUSSION OF ACCOUNTING
RATE REFORM, ANBASSADOR MCCANN ASKED MR. WONG TO.STAY IN CLOSE
CONTACT WITH THE U.S. AND MAINTAIN A HIGH LEVEL OF COOPERATION.
4. ON THE ISSUE OF LIBERALIZATION, HONG KONG SECRETARY FOR
INFORMATION TECHNOLOGY AND BROADCASTING K.C. KWONG SAID HONG KONG
IS STILL WORKING ON ITS TRANSITION TO OPEN COMPETITION AND NOTED
THAT THE MORATORIUM ON NEW FIXED-LINE LICENSES WILL END THIS
MONTH. KWONG SAID THAT JUST AS FOREIGN TELCOS ARE LOOKING TO GET
INTO HONG KONG, HONG KONG TELCOS ARE LOOKING, TO GET INTO FOREIGN
MARKETS.AND MENTIONED THAT ONE HONG KONG TELCO WAS CURRENTLY
HAVING DIFFICULTY ENTERING THE U.S. MARKET. F:CC OFFIC.IALS
EXPLAINED THAT THE HONG KONG TELCO IN QUESTION HAD ESSENTIALLY
ASKED THE FCC TO CREATE A NEW CATEGORY OF SERVICE. WHILE NOTING
.THE .UNUSUAL NATURE OF THE REQUEST, FCC OFFICIALS PROMISED TO
RESPOND TO THE APPLICATION ASAP AND SAID THAT CHAIRMAN KENNARD
WAS AWARE OF THE ISSUE .
. . 5. ·EMPHASIZING THE POINT THAT MANY U.S. TELCOS WOULD LIKE TO
COMPETE IN HONG KONG, ~~BASSADOR MCCANN URGED SECRETARY KWONG TO
LET THE MARKET DECIDE HOW MANY TELCOS .THE MARKET WILL BEAR.
SECRETARY KWONG SAID THAT IT WAS RELATIVELY EASY FOR FOREIGN
FIRMS TO ENTER THE HONG KONG MARKET. MOREOVER, HE SAID THAT
COMMENTS ABOUT HONG KONG'S TELECOMS POLICIES FROM FOREIGN FIRMS
WERE TREATED SERIOUSLY.
6. HONG KONG'S DELEGATION WAS LED BY SECRETARY.FOR.INFORNATION
TECHNOLOGY AND BROADCASTING K. C. KWONG AND INCLUDED· DIRECTOR ·
GENERAL FOR TELECOMMUNICATIONS ANTHONY S.K. WONG.
7. USDEL WAS LEO BY ANBASSADOR VONYA MCCANN AND INCLUDED
COMMERCE ASSISTANT SECRETARY LARRY IRVING, FCC OFFICIALS ARI
FITZGERALD AND IRENE WU, USTR OFFICIAL BILL CORBETT, AND ECONOFF.
(NOTETAKER) .
8.
THIS CABLE.WAS CLEARED BY THE MEMBERS OF THE U.S. DELEGATION.
SKODON
NOTE:PARAGRAPH MARKINGS MISSING .. CORRECTION TO FOLLOW.
141003/021
�. 06/10/98
-~
09.:57
EB/CIP RM2533A
'0'202 647 0158
·J
UNCLASSIFIED
Printed By: Jeffery E. Zinsmeister
ACTION·CIP-00
INFO· LOG-00
.CIAE- 0 0
EAP-01
H-01
.. L- 01
PRS-00
USIE-00
AJT-03
DOTE-DO
UTED-00
ITC- 01
OPI<::-01
.NSAE~OD
STR-00
ss-oo
SP-00
· /D27W
SAS-00
G-00
D901S8Z /38
------------~-----460495
ACDA-08
CTME-00
EB-00
IM-01
ADS-00
CI0-00
DRL-04
ACDE-00
DINT-DO
EXME-00
TEDE-00
AGRE-00
DODE-00
EUR-01
INR-00
OJC-02
SS0-00
NFAT- 00
AID-00
ITCE-00
E-00
I0-00
OMB-01
CEA-01
SRPP-00
FRB-00
LAB-01
PA-00
TRSE~DD
0901542 JUN 98
FM AMEMBASSY SINGAPORE
TO SECSTATE WASHDC PRIORITY 1967
INFO USDOC WASHDC PRIORITY
APEC COLLECTIVE PRIORITY
AMEMBASSY PARIS PRIORITY
WHITE HOUSE WASHDC PRIORITY
USMISSION G.ENEVA PRIORITY
FCC WASHDC PRIORITY
p
UNCLAS SINGAPORE 002530
SENSITIVE
· WHITE HOUSE FOR IRA MAGAZINER
USDOC FOR NTIA/STEINOUR
FCC FOR KENNARD, FITZGERALD. AND WU
GENEVA PASS USTR
PARIS FOR OECD
STATE ~SO FOR EB/CIP AND EAP/RSP/TC
STATE PASS USTR FOR CORBETT
E.O. 12958: N/A
TAGS: ECPS, ETRD, APECO, USTR, TW
SUBJECT: BILAT MEETING WITH CHINESE TAIPEI AT APEC TELMIN 3
. SENSITIVE BUT UNCLASSIFIED - PLEASE PROTECT ACCORDINGLY
1. SUMMARY: DURING THE U.S.-CHINESE TAIPEI BILAT MEETING AT APEC
TELMIN 3, TAIPEI REVIEWED ITS EFFORTS TO PROMOTE £-COMMERCE AND
EXPRESSED ITS INTEREST IN FINDING SOLUTIONS TO THE PROBLEMS OF
ACCOUNTING RATE REFORM AND INTERNET BANDWIDTH FINANCING. THE
MINISTER EVEN SUGGESTED THAT SOME SORT.OF ACCOUNTING RATE REGIME
BE APPLIED TO INTERNET BANDWIDTH, TO WHICH THE U.S. DELEGATION
POLITEI.Y DEMURRED. MEANWHILE, THE U: S. URGED TAIPEI TO CONSIDER
. USE OF THE APEC TELECOM MRA FOR BUREAU OF COMMODITIES INSPECTION
QUARANTINE (BCIQ) CERTIFICATIONS OF ELECTRICAL PRODUCTS TO AVOID
PROCEDURES WHICH U.S. FIRMS HAVE CALLED COSTLY AND REDUNDANT.
END. SUMMARY.
2.
DURING A JUNE 2 BILATERAL MEETING AT THE THIRD APEC
T?LECOMMUNICATIONS MINISTERIAL IN SINGAPORE; ,TAIPEI MINISTER OF
COMMUNICATIONS: (MO'I'Cl.: LIN
CHENG GAVE AN
OF. TAIPEI Is'
·TO :
. •' '
; .oDEMONSTRATING
. ,
.· ,;oUT THAT.:i
·sPECI
l4l 004/021
'
�06110/98
09:58
'5'202 647 0158
EB/CIP RM2533A
UNCLASSIFIED
Printed By: Jeffery E. Zinsmeister
3. IN LIGHT OF THE GROWTH OF THE INTERNET AND E-COMMERCE, THE
MINISTER SAID, TAIPEI IS INCREASINGLY CONCERNED ABOUT INTERNET
.BANDWIDTH FINANCING. HE SUGGESTED THAT THERE BE A MULTILATERAL
FRAMEWORK FOR ADDRESSING THIS ISSUE AND SUGGES.TED THAT A REGIME
LIKE THE CURRENT ACCOVNTING-RATE SYSTEM MIGHT BE NEEDED.
AMBASSADOR VONYA MCCANN .COUNTERED THIS PROPOSAL ARGUING THAT THE
INTERNET WAS STILL TOO NEW AND CHANGING TOO FAST TO BE SADDLED
WITH SUCH A HEAVY-HANDED SOLUTION. SHE EMPHASIZED THE IMPORTANCE
OF FINDING A MARKET-BASED SOLUTION TO ANY PROBLEMS AND STATED
THAT OPEN TELECOHS MARKETS THAT ENTICE INFRASTRUCTURE INVESTMENT
WOULD BE THE BEST SOLUTION TO THE BANDWIDTH FINANCING PROBLEM.
4. AMBASSADOR MCCANN RAISED THE ISSUE OF BCIQ RULES REQUIRING
THE CERTIFICATION OF ELECTRICAL EQUIPMENT, INCLUDING PRODUCTS
ALREADY AVAILABLE IN. TAIWAN. ·SHE EXPRESSED U.S. INDUSTRY CONCERN
THAT THESE CERTIFICATIONS ARE BOTH COSTLY AND REDUNDANT. WHILE
BCIQ IS NOT UNDER HIS AUTHORITY, THE MINISTER RESPONDED BY SAYING
THAT THE IMPLEMENTATION OF THESE RULES (AVAILABLE AT
~~-MOEA.BCIQ.GOV.TW) HAD ALREADY BEEN DELAYED SIX MONTHS BEFORE
BEING IMPLEMENTED IN JANUARY 1998. THE MINISTER SAID THAT HE HAD
t~E ·REQUESTS TO BCIQ FOR COOPERATION ON THE IMPLEMENTATION OF
REGULATIONS ON FREQUENCY AND RADIATION AND FOR THE TRANSFER OF
AUTHORITY FOR FAXES, MODEMS, AND TELEVISIONS TO MOTC. HE SAID HE
HOPED THAT ALL TELECOMS PRODUCTS WOULD EVENTUALLY FALL UNDER THE
AUTHORITY OF MOTC.
S.
USTR CORBETT SUBSEQUENTLY FOLLOWED UP ON THIS TOPIC WITH MOTC
CHAIRMAN FOR INTERNATIONAL AFFAIRS CHEN WEN-HSIEN. MR. CHEN·
AGREED TO LOOK INTO ~rlETHER BCIQ COULD JOIN IN THE APEC TELECOM
EQUIPMENT MRA, THEREBY ALLOWING TESTING AND, AS NECESSARY
CERTIFICATION OF EQUIPM~NT IN THE U.S. PRIOR TO EXPORT.
6. THE CHINESE TAIPEI DELEGATION WAS LED BY MOTC MINISTER LIN
FONG-CHENG AND INCLUDED MOTC CHAIRMAN FOR INTERNATIONAL AFFAIRS
CHEN WEN-HSIEN, MOTC DIRECTOR GENERAL OF TELECOMMUNICATIONS TENG
TIEN-LAI, AND MINISTRY OF FOREIGN AFFAIRS DEPUTY DIRECTOR GENERAL.
FOR ECONOMIC AND TRADE AFFAIRS LIN YI-MIN.
7 . USDEL. WAS LED BY AMBASSADOR VONYA MCCANN AND INCLUDED
COMMERCE ASSISTANT SECRETARY LARRY IRVING, FCC OFFICIALS ARI
FITZGERALD AND IRENE WU, USTR OFFICIAL BILL CORBETT, AND ECONOFF
(NOTETAKER) .
8.
THIS CABLE WAS CLEARED BY THE MEMBERS OF THE U.S. DELEGATION.
SKODON
141005/021
�06/10/98
09:58
'5'202 647 0158
EB/CIP RM2533A
@006/021
UNCLASSIFIED
Printed By: Jeffery E. Zinsmeister
ACTION CIP-00
CEA-01
AIT-03
ACDA-08 ACDE-00 AGRE-00 AID-00
CTME-00 DINT-00 DODE-00 ITCE-00 DOTE-00 SRPP-00
FBIE-00 UTED-00
E-00
EXME-00 EUR-01
EB-00
ITC-01
I0-00
TEDE-00 INR-00
IM-01
H-01
OPIC-01
OMB-01
NSAE-00 OIC-02
ADS-00
L-01
. STR-00
SS-00
SS0-00
SP~OO
CI0-00
PRS-00
NFAT-00
MR-00
G-OO
DRL-04
SA-01
USIE-00
/028W
SAS~OO
------------------46D4FA 090203Z /38
P 090159Z JUN 98
Ft-1 AMEMBASSY SINGAPORE
.TO SECSTATE'WASHDC PRIORITY 1968
INFO USDOC WASHDC PRIORITY
APEC COLLECTIVE PRIORITY
WHITE HOUSE WASHDC PRIORITY
US~IISSION GENEVA PRIORITY
FCC WASHDC PRIORITY
INFO
LOG-00
CIAE-00
EAP-01
FRB-00
LAB-01
PA-00
TRSE-00
UNCLAS SECTION 01 OF 02 SINGAPORE 002531
SENSITIVE
WHITE HOUSE FOR IRA MAGAZINER
USDOC FOR NTIA/STEINOUR
GENEVA PASS USTR
FCC FOR KENNARD, FITZGERALD, AND WU
STATE ALSO FOR EB/CIP AND EAP/CM
STATE PASS USTR FOR CORBETT
E.O. 1295B: N/A
TAGS: ECPS, ETRD, APECO, USTR, CH
SUBJECT: BILAT MEETING WITH CHINA AT APEC TELMIN 3
SINGAPORE
0~
OF 02
2531
SENSITIVE BUT UNCLASSIFIED - PLEASE PROTECT ACCORDINGLY
1. SUMMARY: IN THE. U.S.-CHINA BILAT MEETING AT APEC TELMIN 3, THE
CHINESE MINISTER GAVE AN OVERVIEW OF THE NEWLY-CREATED MINISTRY
OF- THE INF.ORMATION INDUSTRY (MI I) , EMPHASIZING THE SEPARATION OF
THE OPERATIONAL AND REGULATORY ROLES AND NOTING THAT ENTERPRISES
WO~D BE EXPECTED TO MANAGE THEIR OWN AFFAIRS.
THE U.S.
DELEGATION URGED. THAT CHINA ADOPT THE WTO REFERENCE PAPER AS A
BLUEPRINT FOR ITS REGULATORY REFORM. CITING HIGH-LEVEL U.S.
GOVERNMENT INTEREST IN THIS ISSUE, THE U.S, DELEGATION ASKED THE
MINISTER TO MOVE AS QUICKLY AS POSSIBLE TO GRANT LICENSES FOR
Cot-1A MOBILE PHONE TECHNOLOGY. FINALLY, BOTH DELEGATIONS ASKED
FOR SUPPORT FOR CANDIDACIES TO THE ITU COUNCIL. END·SUMMARY.
2. DURING A JUNE 4 BILATERAL MEETING AT THE THIRD APEC
TELECOMMUNICATIONS MINISTERIAL IN SINGAPORE, CHINESE MINISTER FOR
... ,, INFORMATION INDUSTRIES WU JICHUAN GAVE .AN OVE~V:IEW,;.OF. HIS NEWLY:.
·•:'t(;::,'i':i;'·CREATED MINISTRY'S: RESPONSIBILITIES ;·;:;:.:HE .SAID/l'HAT ',THE. Mil WAS .''· '.c '
:'i,:{:Y~,i;,:\• >'·DES IGN'EDi:To SEPARATE·.· THE. RESPON~~~t~:il_;:~ES,\9F,_,:§J?;:RA,TI.ONAL, -~.::it(;t:h!'. : _.:
.j:>·:
REGuLATORY ROLES THE GOVERNMENT'rPLAYED~:IN.THE'INFORMATION :;·;;-(;·(';:··:;~''·':\- ·• · • ·
.2: '~' .;,,, , ~- INDUSTRY:;'' MI I' S ROLE WILL ·BE '·,TO\).: FORMuLA~·E';-~PLANS );.,,•STRATEGY ;--!i ,,:<.:. ), .:, :·· : •
<,1,;!:/:':'i'/ LAWS, 'AND REGULATIONS FOR THE ''INFORMATION :.,INDUS'I'RX.~::I~i:ADDITION TO ;; .·. · ·
'MANAGING THE COUNTRY'S INFORMATION •RESOURCES;);(S~C)~:!iJi¢:~THE MINISTER. .·
~~~r~,~~-~f=~~~i~ii?}?~.~~~.,~~t~~i~~J!¥z~
. ~;,;ci>.;;,~;~'
j
ff!~,,~~~~
'I
.· •.-:·.: ••
-·-:,1'.,>
;~
·r:'
.
CLINTON LIB~.~~ PI~?[OCQ~Y
�06/10/98
09:59
'0'202 647 0158
EB/CIP RM2533A
I4J 007/021
UNCLASSIFIED
Printed By: Jeffery E. Zinsmeister
IN THE INFORMATION SECTOR, SO THEY WILL HAVE TO MANAGE
THEMSELVES. HOWEVER, MII WILL ASSIST THEM IN RESTRUCTURING AND,
FOK'EXAMPLE, .WILL ENCOURAGE CONSOLIDATION OF THE PAGING. INDUSTRY,
WHICH HAS OVER 2000 FIRMS, TO MAKE MORE EFFICIENT USE OF RADIO
SPECTRm1.
3. MINISTER WU SAID THAT CHINA'S INFORMATION INDUSTRY IS FACED
WITH THE TWIN CHALLENGES OF COPING WITH RAPID ECONOMIC GROWTH AND
REDUCING STRUCTURAL INEFFICIENCIES. HE SAID THAT THE SEPARATION
OF THE OPERATIONS AND REGULATION ASPECTS OF THE INFORMATION
·INDUSTRY WILL LEAD TO GREATER COMPETITION. HOWEVER, HE ADVOCATED
AN ORDERLY INTRODUCTION OF COMPETITION AND SAID THAT Mil MUST
ENSURE THAT NETWORKS MEET UNIFORH STANDARDS AND ARE.
INTEROPERABLE.
4. NOW SEPARATED FROM THE TELECOMS SECTOR, THE CHINESE POSTAL
SYSTEM IS UNDER MII. CITING THE SUCCESSFUL REFORM OF THE U.S.
POSTAL SERVICE AS A MODEL, MINISTER WU SAID THAT CHINA WANTS TO
BRING ITS POSTAL SYSTEM INTO PROFITABILITY WITHIN THE NEXT FEW
YEARS. UNTIL SUCH TIME, HE SAID, THE STATE WOULD CONTINUE TO
REGULATE THE POSTAL SYSTEM.
5. ALTHOUGH HE COULD NOT YET GIVE A FULL PICTURE OF Mil'S
OVERALL STRUCTURE, MINISTER WU A~ID HE WOULD STREAMLINE HIS
MINISTRY BY CUTTING PERSONNEL TO ABOUT 400 .. . THE TWO MINISTRIES
AND_ VARIOUS OTHER AGENCIES WHICH WERE FOLDED INTO MII NOW EMPLOY
ABOUT 80.0 WORi~ERS. THE MINISTER SAID SOME RESPONSIBILITIES SUCH
AS MONITORING STATIONS AND INSTITUTIONS TO DEVELOP STANDARDS AND
WOULD BE HIVED OFF FROM THE MINISTRY AND SET UP . AS SEPARATE
.
.
ENTITIES, WHOSE STAFF MEMBERS WILL NOT.BE CIVIL SERVANTS.
6. AFTER h. BRIEF PRESENTATION ON THE BENEFITS OF OPEN
COMPETITION, AMBASSADOR VONYA MCCANN ASKED MINISTER WU TO
· . CONSIDER USE OF THE WTO REFERENCE PAPER AS THE BLUEPRINT FOR
.Mil'S REORGANIZATION. COMMERCE ASSISTANT SECRETARY IRVING
AFFIRMED THE VALUE OF THE REFERENCE PAPER PRINCIPLES.
6. AMBASSADOR MCCANN AND ASST. SECRETARY IRVING RAISED THE ISSUE
OF THE LICENSING OF COMA MOBILE PHONE TECHNOLOGY IN CHINA, URGING'
THE CHINESE TO AL.LOW THE SYSTEM TO BE INTRODUCED TO THE MARKET.
MINISTER WU SAID THAT THE BOOMHZ SYSTEM PROVIDED A NECESSARY
SOLUTION TO SOME OF CHINA'S SPECTRUM PROBLEMS. MOREOVER, HE SAID
THAT CHINA LOOKED FORWARD TO THE THIRD GENERATION OF COMA
TECHNOLOGY AND NOTED THAT THE STANDARDIZATION OF BROADBAND COMA
BY THE ITU WOULD BE AN IMPORTANT STEP.
7 . . URGING U.S. CONSIDERATION, MINISTER WU RAISED THE LANDING
ISSUE OF THE U.S.-CHINA CABLE NETWORK, WHICH WILL SOON BE UNDER
CONSTRUCTION. HE ALSO ASKED FOR FURTHER DISCUSSION OF THE U.S.CHINA ACCOUNTING RATE. IN CONCLUSION, THE CHINESE MINISTER ASKED
FOR.U.S. SUPPORT OF ITS CANDIDATE FOR DIRECTOR AT THE ITU
PLENIPOTENTIARY IN OCTOBER. IN TURN, THE U.S. ASKED FOR CHINA'S
SINGAPORE
02 OF 02
2531
SUPPORT IN ITS BID TO RETURN TO THE ITU COUNCIL AND, NOTING PRIOR
CLOSE COOPERATION ON THE ISSUE OF COST RECOVERY, HOPED THAT CHINA
TOO WOULD RETURN TO THE COUNCIL. ,
···.,
·.•
8 ~·~<THE CHINESE DELEGATION WAS LED BY MINISTER FOR INFORMATION
. INDUSTRIES WU JICHUAN AND INt':LUDED
'..
··.
�06/10/98
"
10:00
'0'202 647 0158
EB/CIP RM2533A
UNCLASSIFIED
Printed By: Jeffery E. Zinsmeister
9.
THIS CABLE WAS CLEARED BY THE MEMBERS .OF THE U.S. DELEGATION.
SKODON
�06/10/98
10:00
'0'202 64i 0158
EB/CIP RM2533A
UNCLASSIFIED
Printed By: Jeffery E. Zinsmeister
ACTION CIP-00
AIT-03
ACDA-08 ACDE-00 AGRE-00 AID- 00
CTME-00 DINT-00 DODE-00 lTCE-00 DOTE-00
UTED-00
E-00
EXME-00 EUR-01
EB-00
JUSE-00
ITC-01
I0-00
TEDE-00 INR-00
·o~1B-01
NSAE-00 NSCE-00 OIC-02
ADS-00
SS-00
SS0-00
SP-00
CI0-00
PRS-00
NFAT-00 SAS-00
G-OO
USIE-00 DRL-04
------------------460485 090158Z /38
P 0901542 JUN 98
FM AMEMBASSY. SINGAPORE
TO SECSTATE WASHDC PRIORITY 1966
INFO USDOC WASHDC PRIORITY
APEC COLLECTIVE PRIORITY
USMISSION GENEVA PRIORITY
FCC:WASHDC PRIORITY
INFO
LOG-00
CIAE-00
EAP-01
H-01
L-01
PA-00
TRSE-00
CEA-01
SRPP-00
FRB-00
LAB-01
.OPIC-01
STR-00
/026W
UNCLAS SINGAPORE 002529
SENSITIVE
USDOC FOR NTIA/STEINOuR
STATE ALSO FOR EB/CIP AND EAP/BCLTV
STATE PASS USTR FOR CORBETT
GENEVA PASS USTR
FCC FOR KENNARD, FITZGERALD, AND WU
E.O. 12958: N/A
TAGS: ECPS, ETRD,· APECO, USTR, TH
SUBJECT: BILAT MEETING. WITH THAILAND AT APEC TELMIN 3
SENSITIVE BUT UNCLASSIFIED - PLEASE PROTECT ACCORDINGLY
1. SUMMARY: IN THE U.S.-THAILAND BILAT MEETING AT APEC TELMIN 3,
THE THAI DELEGATION SAID IT.WAS WORKING TOWARD THE LIBERALIZATION
OF THE THAI TELECOMS MARKET AND HOPED TO PRIVATIZE THE TWO STATEOWNED C~IERS BY 1999, ALLOWING GREATER COMPETITION IN 2006.
END SUMMARY.
2. DURING A JUNE 4 BILATERAL MEETING AT THE THIRD APEC
TELECOMMUNICATIONS MINISTERIAL CONFERENCE IN SINGAPORE, MINISTER
SUTHEP REVIEWED THAILAND'S TELECOM MASTERPLAN, WHICH MANDATED THE
ESTABLISHMENT OF A NATIONAL COMMUNICATIONS COMMISSION AND
PRIVATIZATION OF THE TWO STATE-O~~ED TELECOM CARRIERS. THE
MONOPOLIES OF THESE STATE ENTERPRISES WILL ALSO BE ABOLISHED.
3. THE MINISTER NOTED THAT IMPLEMENTATION OF THE PLAN WAS
COMPLICATED BY ARTICLE 40 OF THE NEW CONSTITUTION, WHICH MANDATES
AN INDEPENDENT BODY TO ALLOCATE NATIONAL RESOURCES - INCLUDING
RADIO SPECTRUM IN THE TELECOM AREA. HE SAID THE MINISTRY WAS
TRYING TO PERSUADE THE GOVERNMENT THAT THERE NEED NOT BE ONLY ONE
INDEPENDENT BODY FOR RESOURCE ALLOCATION. THERE COULD BE A
SEPARATE ONE FOR:TELECOM, FOR EXAMPLE. THE MINISTER EXPECTED
INTERPRETATION OF .THE.CONSTITUTION TO BE SETTLED
.'
:~NT:~~i~j;~'~-~;f~)!!!,f~f.i~g((~~i~n ;0;_.,~ ;~;··,BY.,
ZE
OCTO.BEIR.,;:L
. THE MARKET WILI>"BE:{OPEN.T6'coMPETITION:IN 2006;''··nm·
ALSO WELCOMED PARTICIPATION OF U.S. COMPANIES TO JOIN
STATE ENTERPRISES AS STRATEGIC PARTNERS. HE NOTED HE
BEEN
SINGAPORE TELECOM
1
9!
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5.
THE MINISTER NOTED THAT THE MAIN CHALLENGE IN THE
.PRIVATIZATION PROCESS WAS TO WIN THE SUPPORT OF THE CURRENT
EMPLOYEES.
HE SAID THAT HE WOULD VISIT EVERY PROVINCE, BEGINNING
JUNE 5, TO SPEAK TO EMPLOYEES TO EXPLAIN THE NEED FCR
PRIVATIZATION.
6.
THE THAI DELEGATION REQUESTED FUTURE CCOPERATIO~ WITH THE FCC
AS THEY UNDERGO DISCUSSIONS TO ESTABLISH THE NATIONAL
COMMUNICATIONS COMMISSION. THE FCC WELCOMED FURTHER DIALOGUE
WITH THE MINISTRY.
7.
THE THAI DELEGATION WAS LED BY MINISTER OF T~~SPORT ~~D
COMMUNICATIONS (MOTC) SUTHEP THAUGSUBAN AND INCLUDED MOTC
PERM&~ENT SECRETARY MANIDOL CHANTRbNGKURN, POST AND TELEGRAPH
DEPARTMENT DIRECTOR-GENERAL SETHAPORN CUSRIPITUCH, MOTC ADVISOR
FOR AIR TRANSPORT SAR;IN SKULRATANA, ADVISOR TO THE MINISTER LIKIT
HONGLADAROM, AND AN INTERPRETER.
8 . USDEL WAS LED BY AMBASSADOR VO!-<YA 1\!CCANN AND INCLUDED
COMMERCE ASSISTANT SECRETARY LARRY IRVING; STATE OFFICER tHKE
MCCABE, FCC OFFICIALS ARI FITZGERALD AND IRENE ~~. k~D USTR
OFFICIAL BILL CORBETT.
9.
THIS CABLE WAS CLEARED BY THE MEMBERS OF THE U.S. DELEGATION.
SKODON
\
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ACTION STR-00
AIT-03
.ACDA-08 ACDE-00 AGRE-00 AID-00
LOG-00
CTME-00 DINT-00 DODE-00 ITCE-00
CIAE-00 CIP-00
E-00
EXME-00 EUR-01
EB-00
SRPP-00 EAP-01
I0-00
TEDE-00 INR-00
IM-01
H-01
FRB-00
OMB-01
NSAE-00 OIC-02
ADS-00
L-01
LAB-01
SS-00
SS0-00
SP-00
CI0-00
PRS-00
PA-00
/027W
NFAT- 00 SAS-00
G-OO
·USIE·OO DRL-04
------------------46D291 090123Z /38
P 090119Z JUN 98
FM AMEMBASSY SINGAPORE
TO SECSTATE WASHDC PRIORITY 1963
INFO USDOC WASHDC PRIORITY
APEC COLLECTIVE PRIORITY
AMEMBASSY PARIS PRIORITY
WHITE HOUSE WASHDC PRIORITY
USMISSION GENEVA PRIORITY
FCC WASHDC PRIORITY
INFO
CEA-01
DOTE-00
UTED-00
ITC-01
OPIC-01
TRSE-00
UNCLAS SECTION 01 OF 02 SINGAPORE 002527
SENSITIVE
WHITE HOUSE FOR IRA MAGAZINER
USDOC FOR NTIA/STEINOUR
FCC. FOR KENNARD, FITZGERALD, AND WU
GENEVA"PASS USTR
PARIS PASS OECD
STATE PASS USTR FOR CORBETT
E.O. 12958: N/A
TAGS: ECPS, ETRD, APECO, USTR, JA
SUBJECT: BILAT MEETING WITH JAPAN MPT AT APEC TELMIN 3
~INGAPORE
01 OF 02
2527
SENSITIVE BUT UNCLASSIFIED • PLEASE.PROTECT ACCORDINGLY
1. SUMMARY: THE U.S.-JAPAN B.ILAT MEETING AT APEC TELMIN 3- WAS
HIGHLIGHTED BY AGREEMENT ON SUPPORT FOR THE MUTUAL RECOGNITION
ARRANGEMENT (MRA) AND BY DIFFERENCES ON. THE ISSUES OF ACCOUNTING
·RATE REFORM AND INTERNET BANDWIDTH FINANCING. JAPAN CALLED. ON
THE FEDERAL COMMUNICATIONS COMMISSION (FCC) TO WITHDRAW ITS
BENCHMARK RULE AND REQUESTED FURTHER TALKS ON THE INTERNET
BANDWIDTH FINANCING ISSUE. THE U.S. REITERATED ITS PREFERENCE
FOR A MULTILATERAL-SOLUTION TO ACCOUNTING RATE REFORM BUT NOTED
THAT THE BENCHMARK RULE HAD PROVIDED A MUCH NEEDED IMPETUS TO
NEGOTIATIONS IN THE INTERNATIONAL TELECOMMUNICATIONS UNION (ITU) .
BOTH COUNTRIES REITERATED THEIR SUPPORT OF THE MRA. END SUMMARY.
2. DURING A JUNE 2 BILATERAL ·MEETING AT THE THIRD APEC
TELECOMMUNICATIONS.MINISTERIAL IN SINGAPORE, JAPANESE STATE
SECRETARY. FOR.THE MINISTRY OF POST AND.TELECOMMUNICATIONS GEN
MRA
)
�10:01
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DEPARTMENT'S RECENT REPORT ON THE EMERGING DIGITAL ECONOMY,
HIGHLIGHTING THE FACT THAT HIGH-TECH INFORMATION-BASED INDUSTRIES
HAVE BECOME THE ENGINE THAT DRIVES THE U.S. ECONOMY.
4. 'RAISING THE ISSUE OF ACCOUNTING RATE REFORM, AMBASSADOR VONYA
MCCANN SAID SHE LOOKED FORWARD TO JAPANESE ACTION AND LEADER.SHIP
IN THE ITU FOCUS GROUP. SHE SAID IT WAS IMPORTANT FOR THE FOCUS
GROUP TO COME UP WITH TRANSITIONAL MECHANISMS WHICH WILL LEAD TO
A COST-BASED SYSTEM OF INTERCONNECTION. SHE URGED THAT THE FOCUS
GRO~P NOT GET BOGGED DOWN· BY COST METHODOLOGY, WHICH WAS BEING
HANDLED BY A SEPARATE GROUP; I.E. ITU TELECOMMUNICATIONS STUDY
GROUP 3.
5. AFTER'MR. NAKATANI EXPRESSED HIS HOPE THAT THE FCC WOULD
WITHDRAW ITS BENCHMARK RULE, ASST. SECRETARY IRVING REITERATED
THE U.S. PREFERENCE FOR A MULTILATERAL SOLUTION TO THE QUESTION
OF ACCOUNTING RATE REFORM. HOWEVER, HE POINTED OUT THAT THE
BENCHMARK RULING HAD GIVEN A STRONG IMPETUS TO. EFFORTS IN THE ITU
TO RESOLVE THE PROBLEM. FCC OFFICIALS NOTED THAT THE FCC WOULD
CONSIDER MODIFICATION OF THE BENCHMARK RULES IF A MULTILATERAL
SOLUTION WERE ACHIEVED. HOWEVER, MR. NAKATANI SAID HE REMAINED
UNCONVINCED BY U :·s. ARGUMENTS AND URGED THE U.S. TO RESPECT THE
ITU PROCESS.
6.' MR. NAKATANI ALSO. SAID HE LOO.KED FORWARD TO A DISCUSSION WITH
THE U.S. ON.THE INTERNET BANDWIDTH FINANCING PROBLEM, WHICH HE
ATTRIBUTED TO AMERICA'S DOMINATION OF THE INTERNET. ASST.
SECRETARY IRVING POINTED OUT.THAT THE INTERNET BACKBONE IS
EVIDENCE Of ..T}!E EFFECTIVENESS OF PRIVATE SECTOR INITIATIVE, NOT
GOVERNMENT REGULATION. HE SAID THAT ANY COUNTRY.CAN MAKE ITS
PRESENCE FELT ON. THE INTERNET BY DEREGULATING ITS TELECOMS
MARKETS AND ENTICING INVESTMENT IN INFRASTRUCTURE. HE ARGUED
THAT ENCUMBERING THE DYNAMISM OF THE INTERNET WITH AN ARCHAIC,
INEFFICIENT REGULATORY (I.E. ACCOUNTING RATE) SYSTEM WOULD HAMPER
THE GROWTH OF E-COMMERCE AND NOT LEAD TO A MARKET-BASED SOLUTION
OF INTERNET BANDWIDTH FINANCING.
7. THE U.S. DELEGATION NOTED THE RECENT AGREEMENT REACHED
BETWEEN THE U.S. AND JAPAN AT THE G-8 MEETING IN BIRMINGHAM,
. U.K., ON A SCHEDULE TO IMPLEMENT A LONG-RUN, INCREMENTAL COST
MODEL FOR INTERCONNECTION IN JAPAN. THE FCC'S ARI FITZGERALD
INDICATED SUPPORT FOR MPT'S EFFORTS TO LOWER INTERCONNECTION
RATES AND LOOKED FORWARD TO CONTINUED DIALOGUE. VISIBLY NERVOUS,
MEMBERS OF THE JAPANESE DELEGATION CALMED WHEN IT BECAME CLEAR
THAT FURTHER NEGOTIATION OF THE AGREEMENT ON INTERCONNECTION
PRICES WOULD NOT BE HELD AT THIS MEETING.
8. ·usDEL WAS LED BY AMBASSADOR VONYA MCCANN AND INCLUDED
COMMERCE ASSISTANT SECRETARY LARRY IRVING, FCC OFFICIALS ARI
FITZGERALD AND IRENE WU, USTR OFFICIAL BILL CORBETT;· 'AND ECONOFF
SINGAPORE
02 OF 02
2527
(NOTETAKER) .
10. THIS CABLE WAS CLEARED BY THE MEMBERS,OF THE U.S .
. DELEGATION.
SKOOON
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Princed By: Jeffery E. Zinsmeister
ACTION CIP-00
INFO
LOG-00
CIAE-00
SRPP-00
FRB-00
LOC-01
PRS-00
USIE-00
AGRE-00 AID-00
DODE-·OO ITCE-00
UTED-00
E-00
ITC-01
INR-00
OPIC-01
ONB-01
STR-00
SS-00
/025W
SAS-00
091726Z /38
-~----------------~725BA
ACDA-08
CTME-00
EB-00
H-01
L-01
CI0-00
DRL"04
ACDE-00
INL-01
EXME-00
IM-01
ADS-00
SP- 00
G-OO
INLB-01
DINT-DO
EUR-01
TEDE- DO
NSAE- 00
SS0-00
NFAT-00
CEA-01
DOTE-DO
FCC-01
LAB~01
PA-00
TRSE-00
0 091717Z JUN 98
FM AMEMBASSY BRUSSELS
TO SECSTATE WASHDC HlNEDIATE 8663
INFO WHITE HOUSE WASHDC
USDOC WASHDC
ALL EUROPEAN UNION POST COLLECTIVE
UNCLAS SECTION 01 OF OS BRUSSELS 003524
SENSITIVE
WHITE HOUSE FOR MAGAZINER
STATE FOR EB/CIP, EB/TPP/BTA/DCT AND EUR/ERA
STATE PASS USTR FOR DON ABELSON
.
.
USDOC FOR NTIA - BURR AND ITA ~ WELLBERY
E:o. i295B: N/A
TAGS: ECPS, ETRD, KIPR, EUN, BE
SUBJECT:. ELECTRONIC COMMERCE: ~~GAZINER AND PM DEHAENE
REF:
(A)
BRUSSELS
BRUSSELS 3325
01 OF OS
(B) BRUSSELS 00926
3524
THIS MESSAGE IS SENSITIVE BUT UNCLASSIFIED. FOR USG USE ONLY;
NOT FOR INTERNET DISTRIBUTION.
1. SUMMARY: (SBU) IN THEIR MAY 26 MEETING IN BRUSSELS,
BELGIAN PRIME MINISTER JEAN-LUC DEHAENE AGREED WITH
PRESIDENTIAL ADVISOR IRA MAGAZINER THAT DEVELOPMENT OF
ELECTRONIC COMMERCE IS CRUCIAL TO SPUR ECONOMIC GROWTH AND
JOB CREATION. GOVERNMENT "SHOULD NOT INTERFERE TOO MUCH" IN
DEHAENE'S VIEW, BUT MUST NONETHELESS CREATE THE LEGAL
· FRAMEWORK TO SOLVE PROBLEMS, LIBERALIZE TELECOMMUNICATIONS TO
CREATE AN OPEN-ENVIRONMENT, AND DEVELOP RULES AND STANDARDS
"IN A'EUROPEAN CONTEXT" TO ENSURE PRIVACY AND SAFETY ON THE
INTERNET. MAGAZINER NOTED THAT WE SHARE THE SAME GOALS,
ESPECIALLY WITH RESPECT TO PROTECTING PRIVACY, BUT SOMETIMES
DIFFER ON THE BEST MEANS TO ACHIEVE THEM. IT IS A "FALSE
PROMISE" FOR GOVERNMENT TO SUGGEST IT CAN PROTECT PRIVACY
WITH 10,000 NEW WEBSITES A WEEK COMING ON LINE; INDUSTRY-LED
CODES OF CONDUCT AND WEBSITE SEALS OF APPROVAL BACKED UP BY
FRAUD LAWS WILL BE MORE EFFECTIVE. SIMILARLY, MARKETS SHOULD
-DEVELOP VEHICLES TO PROVIDE VARYING DEGREES OF ELECTRONIC
AUTHENTICATION FROM WHICH CUSTOMERS CAN CHOOSE; GOVERNMENT
LICENSING OF SPECIFIC MEANS WILL-BE RAPIDLY OUTSTRIPPED.BY
NEW TECHNOLOGIES. DEHAENE ACKNOWLEDGED THAT PERHAPS "YOU . DON'T NEED RESTRICTIONS AT FIRST, YOU NEED A CERTAIN
:'> . '·::·::.;.·,.TAKE 'RISKS,
-~i;;,t;;};.:j;(f:~A!?PROPRIATE
AND ACCIDENTS AT A LATER STAGE" WILL ~E~_,·:_"l;'~
REGULATION. 2- HE AGREED WITH MAGAZINER~S -',~:.:>';:,)~
'';C·i:'\':'j•;\YASSESSMENT THAT BELGIUM'S HIGH CABLE PENETRATION,; RAPID',,
- , INSTALLATION OF. WIDE BANDWIDTH, AND SOPHISTICATED BANKING.,
SYSTEM SHOULD MAKE IT A LEADER IN DEVELOPING
k\: , _.HOWEVER,· HE ADDED, -THERE IS A LACK OF TECHl~OI~OG
,:·?:\I~ THE P~LI~·:SECTOR,: WHICH INCREASINGLY
,: :,
UNCLASSIFIED
1
141015/021
�Oti/ 10/YI)
·o·~o~
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141016/021
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TALENT TO THE·PRIVATE SECTOR. THE BUREAUCRACY'S CONSERVATISM
HAD CAUSED BELGIUM TO MISS THE FIRST WAVE OF THE INFORMATION
REVOLUTION; CHANGING THAT MINDSET REMAINS A FORMIDABLE TASK.
END SUMMARY
2.
(SBU)
~~ILE IN BRUSSELS MAY 26 TO DELIVER THE KEYNOTE
ADDRESS AT BELGIUM'S ANNUAL TELECOMMUNICATIONS TRADE FAIR,
ADVISOR. TO THE PRESIDENT FOR POLICY DEVELOPMENT IRA MAGAZINER
~lET TO DISCUSS ELECTRONIC COMMERCE WITH BELGIAN PRIME
MINISTER JEAN-LUC DEHAENE, TELECOMMUNICATIONS AND ECONOMIC
AFFAIRS MINISTER ELIO DI RUPO (SEPTEL), BELGIAN BUSINESS
LEADERS AND PRESS, AND EU COMMISSIONER MARTIN BANGEMANN (REF
A).
3. (SBU) IN HIS WIDELY REPORTED KEYNOTE ADDRESS (TEXT SEPTEL)
AND IN HIS MEETINGS WITH BELGIAN OFFICIALS AND BUSINESS
LEADERS, MAGAZINER HIGHLIGHTED THE FACT THAT RAPID ECONOMIC
GROWTH AND JOB CREATION. IN THE US.IS BEING DRIVEN BY NEW
INFORMATION TECHNOLOGY INDUSTRIES AND ELECTRONIC COMMERCE.
HE UNDERSCORED THAT THEY WILL BE ENGINES OF GROWTH FOR THE
WORLD ECONOMY, AS WELL, IF THE RIGHT CONDITIONS. k~E PUT IN
PLACE GLOBALLY. IN THE US ALONE IN THE PAST THREE YEARS, OVER
A THIRD OF REAL ECONOMIC GROWTH HAS BEEN DRIVEN BY THE
INFORMATION TECHNOLOGY INDUSTRY, PRIMARILY THE· BUILD-OUT OF
THE INTERNET.
OVER SEVEN MILLION NEW JOBS HAVE BEEN CREATED
IN THIS SECTOR; THESE JOBS PAY ON AVERAGE TWO THIRDS MORE
THAN THE AVERAGE WAGE. U.S. INFLATION HAS DROPPED, DRIVEN BY
THE DECLINE IN COMPUTER PRICES .. USERS OF THE INTERNET HAVE
JUMPED FROM 4 MILLION TO 100 MILLION IN THREE AND A HALF
YEARS, AND COULD REACH 1 BILLION IN SEVEN YEARS. THE AMOUNT·
OF TRAFFIC ON THE INTERNET DOUBLES EVERY 100 DAYS. COMMERCE
ON THE INTENET AMOUNTED TO $6 BILLION IN 1997, AND COULD
REACH $300 BILLION BY THE YEAR 2002.
4.
(SBU) · MAGAZINER EXPLAINED TO HIS BELGIAN INTERLOCUTORS
THAT IN ORDER TO ESTABLISH A FRAMEWORK"TO SPUR SIMILAR
DEVELOPMENT OF E-COMMERCE GLOBALLY, THE US HAS BEEN SEEKING
.INTERNATIONAL AGREEMENTS ON A VARIETY OF E-COMMERCE RELATED
ISSUES. THE EXTRAORDINARY BOOM IN USE OF THE. INTERNET AND
ELECTRONIC COMMERCE WHICH THE US HAS EXPERIENCED IS DUE TO
THE FACT THAT WE HAVE LET THE MARKET DRIVE DEVELOPMENT AND
NOT SOUGHT TO OVERTAX OR OVER-REGULATE, WHICH WOULD STRANGLE
THE ECONOMIC GROWTH WHICH HAS RESULTED HAS HAD
DEVELOPMENT·.
GREAT BENEFITS, INCREASING TAX REVENUES AND HELPING.REDUCE
THE BUDGET DEFICIT.
-------------------------------------------~------.--DEHAENE: GOV '.T SHOULD NOT INTERFERE TOO MUCH, BUT ...
--------------------------------------------------·--BRUSSELS
02 OF OS
3524
PAGE 02
BRUSSE 03524 02 OF 05 091726Z
E.O. 12958: N/A
TAGS: ECPS, ETRni KIPR, EUN, BE
SUBJECT:
ELECTRONIC COMMERCE: MAGAZINER AND PM DEHAENE
REF:
(A)
BRUSSELS 3325
(B) BRUSSELS 00926
5.
(SBU)
DEHAENE, ACCOMPANIED BY THE CEO OF THE LEADING
BELGIAN INDUSTRY ASSOCIATION THAT SPONSORED THE TELECOMS
AT WHICH MAGAZINER SPOKE (PHILIPPE DE,'BUCK;YAN ,OVERSTRAETEN)
..... • AND CABINET COUNSELoR HENDRIK,·LARMUSEASu;~f!fcn.o.::MAGAZINER: AND.
·· ·THE AMBASsADoR . HE AGREED THE ;oiWEt.oPMENi[aF-\E coMM:ERC:E".r~ · ·
cRuciAL. MOREOVER, As PoiNTED o&r
Eu:·:caMf.!IssroNER ~·~Jl\ii';
BANGEMAN IN HIS WHITE PAPER, "PUBLIC )I.UTHORITIES SHOULD.:NOT>j~;.i:i ...o./:J.:>;;·'·
. . . INTERFERE TOO MUCH .. " · THE PRIMARY TASK ~.FOR GOVERNMENT ;;:.:);:i:~·;i';·;,,y!t,;·l~"i'
·· };·.•/';:>DEHAENE. SUGGES.TED,_ . .IS TO .~I:R~TE. ~THB~;LEGAL R,A"!E\'JORK.-.TO''SOL
si
•
.... p
••
•
•
. - , "'·
.,
..
•
• :,
"
·:·x;~{i.·>('(:l\~;~f
(t\t;~f~;'
·:·\>·.·
l~~~~~~~;;r«drocqPY
·f·.,
.'.>'"i'
·';.-!.'0:·
·.·~:~·~_:·:,\ :1.~::·...::
,., .. :.:-;-.· :~:·~
····? ,. ~;. .,' :; ..:, ;~ ;' .
;,."·;·: ·-- . :;;:_ ·.:.~
.~ '•'
·,·,.. ·.
�06/10/98.
10:04
'0'202 647 0158
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UNCLASSIFIED
Printed By: Jeffery E. Zinsmeister
PROBLEMS LINKED TO DEVELOPMENT OF E COMMERCE AND TO
LIBERALIZE THE WHOLE TELECOMS SECTOR TO CREATE AN OPEN
ENVIRONMENT."
6.
(SBU)
A SECOND IMPORTANT TASK FOR GOVERNMENT IS TO
"DEVELOP STANDARDS AND RULES SO THE INTERNET CAN WORK IN A
SAFE '1AY FOR EVERYONE." EUROPE NEEDS TO-DEVELOP RULES AND
STANDARDS IN A EUROPEAN CONTEXT, BUT US-EU DISCUSSIONS ALSO
ARE KEY "SO WE HAVE A SIMILAR FRAMEWORK, J?ERMITTING ACTIVITY
TO GO EASILY FROM ONE CONTINENT TO ANOTHER." A CHALLENGE FOR
PUBLIC AUTHORITIES IS HOW BEST TO USE THE INTERNET AND E
COMMERCE TO FACILITATE PUBLIC BUSINESS.
FOR EXAMPLE, ONE WAY
TO LIGHTEN THE ADMINISTRATIVE BURDEN ON BUSINESS WOULD BE TO
FACILITATE ELECTRONIC PAYMENTS BETWEEN THE PRIVATE AND PUBLIC
SECTORS, 1SUCH AS THOSE FOR TAXES OR SOCIAL SECURITY. THIS
WOULD REQUIRE A CHANGE IN PUBLIC SECTOR THINKING, DEHAENE
SAID; BELGIUM IS TRYING TO GO IN THAT DIRECTION AND "HOPES
FOR EUROPEAN ACTION IN THAT AREA" AS WELL.
7.
(SBU)
DEHAENE ASKED MAGAZINER IN WHICH SECTORS OF THE
ECONOMY THE US HAD SEEN THE MOST GROWTH AND POTEN!IAL_FOR ECOMMERCE, AND WHAT ARE THE MAJOR PRIORITIES FOR THE US AND EU
TO ADDRESS TO ESTABLISH A LEGAL FRAMEWORK FOR "PRIVATE SAFETY
AND ACCOUNTABILITY" IN ELECTRONIC TRANSACTIONS.
8.
(SBU)
MAGAZINER.REPLIED THAT WE HAVE SEEN SIGNIFICANT
PRODUCTIVITY GAINS AND GROWTH IN VIRTUALLY EVERY SECTOR;
RETAIL, BANKING AND MANUFACTURING, ~lONG OTHERS. OVER 15
MILLION PEOPLE NOW BANK ON LINE. TWENTY PERCENT OF THE
BOOKS, FIVE PERCENT OF THE CARS AND FIVE PERCENT OF THE
CLOTHES SOLD IN THE US ARE SOLD ON THE INTERNET. COMPANIES
ARE INCREASINGLY CONDUCTING THEIR INVENTORY, LOGISTICS,
CUSTOMER RELATIONS AND OTHER FUNCTIONS ON LINE.
BUSINESS TO BUSINESS ELECTRONIC TRANSACTIONS ARE EXPECTED TO
AMOUNT TO $300 BILLION IN A FEW YEARS.
------~---------------------------------.--------------------
KEY US-EU PRIORITIES:
PRIVACY, CONTENT, TAX, AUTHENTICATION
.
.
------------------------------------------------------------
9.
(SBU)
THE KEY PRIORITIES FOR THE US-AND EU TO ADDRESS
INCLUDE PRIVACY, CONTENT, TAXATION AND AUTHENTICATION;
MAGAZINER TOLD DEHAENE. AREAS OF GREATEST DIFFERENCE BETWEEN
THE US AND THE EU ARE PRIVACY AND AUTHENTICATION. IN
GENERAL; THE US THINKS IT A MISTAKE FOR GOVERNMENTS TO TAKE
TOO HEAVY A ROLE IN REGULATING THE INTERNET .. THE INTERNET
CANNOT BE CENSORED OR CONTROLLED; GOVERNMENT INTERVENTION IS
NOT LIKELY TO BE EFFECTIVE. WITH RESPECT.TO ELECTRONIC
AUTHENTICATION, THE US BELIEVES WE SHOULD PERMIT THE MARKET .
TO DEVELOP THE MEANS, AND LET .. THE BUYER AND THE SELLER CHOOSE
THE ONE MOST APPROPRIATE TO THEIR TRANSACTION. LICENSING OF
PARTICULAR TEHNOLOGIES WOULD BE TOO BUREAUCRATIC AND
INFLEXIBLE, AND WOULD SOON BE OUTSTRIPPED BY TECHNOLOGICAL
DEVELOPMENTS. WE SHOULD AGREE ON MUTUAL REOGNITION OF EACH
OTHER'S SYSTEMS, HOWEVER.
PRIVACY
·, ~: ~.:i;,,;~~~i'~. -~~~.';~i·;~~~i;t:i~:;/ ~~.'-·S
1
INSISTENCE
ROLE .±N:•. ~~OTEC::t:~N(; .· P~iVACY ;IN ITS PRIVACY
·.. ,DUE ,TO :ao (;INTO :J;;FFEq';;;;IN. OCTOBER· 1998. END COIMMI~NT
· ADDREssE:D wiLt,. :BR:E:AKi.•ooWN 'oATA Fi..ows RF.''I'Wl~F.N
EU; ON TAX, THE usi's WORKING _ON THE
;·7.
141017/021
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UNCLASSIFIED
Printed By: Jeffery E. Zinsmeister
AND AUTHENTICATION OF DIGITAL SIGNATURES REFLECT "THE CLASSIC
DIFFERENCE IN HOW PEOPLE REACT ON EACH SI~E OF THE
ATLANTIC ... RULES TO PROTECT PRIVATE LIFE HAVE ALWAYS BEEN
EVEN IN DISCUSSIONS IN OUR
VERY DEVELOPED IN EUROPE.
BRUSSELS
03 OF OS
352~
BRUSS£ 03524 OJ OF OS 091726Z
PAGE 02
12958: N/A
TAGS: ECPS, ETRD, KIPR, EUN, BE
SUBJECT: ELECTRONIC COMM.ERCE: MAGAZINER AND PM DEHAENE
E .0.
REF:
(A)
BRUSSELS 3325
(B) BRUSSELS 00926
GOVERNMENT, I SIDE WITH THOSE WHO SAY THAT PRIVACY SHOULD BE
PROTECTED. RULES CAN ONLY.GO SO FAR, BEFORE .YOU LOSE
EFFICIENCY OF THE SYSTEM, BUT YOU NEED LIMITS. HOW CAN WE
LEAVE IT TO THE PRIVATE SECTOR?"
12.
(SBU) MAGAZINER REPLIED THAT THE US AND EUROPE AGREE
ON THE GOAL
INDEED, THE US, AS MUCH AS EUROPE, BELIEVES
IN THE PROTECTION OF PRIVACY. HOWEVER, WE DISAGREE ON THE.
BEST WAY TO ACHIEVE IT. IT IS CLEAR THAT RULES ARE NEEDED;
THE QUESTION IS, WHO SHOULD ENFORCE THEM? THE US BELIEVES
THE OECD PRIVACY PRINCIPLES SHOULD GOVERN -- THE CONSUMER HAS
THE RIGHT TO DENY USE OF HIS PERSONAL DATA AND TO CHECK IT
FOR ACCURACY. BUT WITH 10,0000 NEW WEBSITES COMING ON LINE
EVERY WEEK, NO GOVERNMENT AGENCY CAN POLICE THEM.
ESTABLISHMENT OF A PRIVACY BOARD OR PASSAGE OF .LEGISLATION- IS
A FALSE PROMiSE.-- GOVERNMENT SAYING IT WILL PROTECT PRIVACY
WHEN IN FACT IT CANNOT.
13.
(SBU)
A BETTER APPROACH IS DEVELOPMENT OF CODES OF
CONDUCT AND SEALS OF APPROVAL WHICH WEBSITES THAT RESPECT THE
CODE MAY DISPLAY. CONSUMERS CAN APPEAL TO THE ORGANIZATION,
ISSUING THE SEAL IF THEY FEEL THE SITE DISPLAYING IT IS NOT
RESPECTING THE TERMS OF THE CODE OF CONDUCT'. . SITES
FRAUDULENTLY DISPLAYING THE SEALS CAN BE PROSECUTED BY THE
MAGAZINER CONCLUDED THAT IN
. FEDERAL TRADE COMMISSION.
REALITY, NO ONE YET KNOWS WHICH APPROACH WILL BE MOST
EFFECTIVE; EACH SIDE SHOULD TRY ITS APPROACH, SEE WHICH WORKS
BEST, AND THEN ADAPT. IN THE MEANTIME, WE NEED TO FIND A WAY
TO AVOID STOPPING DATA FLOWS BETWEEN THE US AND EUROPE.
AUTHENTICATION
14. (SBU) ON DIGITAL SIGNATURES, DEHAENE SAID THAT HIS FIRST
REACTION WAS THAT IT WOULD BE RISKY TO "MULTIPLY THE NUMBER
OF CERTIFICATIONS AND SIGNATURES" THAT CAN BE ACCEPTED FOR
PAYMENTS AND OTHER COMMERCIAL TRANSACTIONS. IT WOULD BE "BEST
TO HAVE ONE SYSTEM THAT EVERYONE KNOWS AND CAN RELY ON, LIKE
CHECKS. " MAGAZINER POINTED .OUT THAT IN FACT, THE
AUTHENTICATION SYSTEM WOULD WORK MORE LIKE CREDIT CARDS.
BANKS, INSURANCE COMPANIES AND ACCOUNTING FIRMS ARE CREATING
SERVICES AND INSTRUME~TS TO OFFER VARIOUS LEVELS OF
AUTHENTICATION, DEPENDING ON THE DEGREE OF SECURITY DESIRED
BETWEEN A BUYER AND A SELLER - .WHICH IN TURN DEPENDS ON THE
. RELATIONSHIP BETWEEN THE BuYER AND THE SELLER: /;,AFTER A ·
. .·.:·.PERIOD oF EXPERIMEN'rATION/;;THE MARJ<E_T ,WJLL sHAKE: otiT AND .. i
•:'.<·: ;~'!',THREE OR·' FOUR MAJOR .SYSTEMS,,WILL.'REMAIN.···AND'<COMPETE i -- NOT •.:_·.·.·.· ..
'J;·\.(:~.:ii\BECAUSE THE GOVERNMENT':·L:i:CENSEIH·THEM,
::BECAUSE'.THE. MARKET . ·,.·· ..·.
. . ~·.:>!\/·cHoSE TH.EM·~· i THIS I~f-MoRE::tE:'FFIC.iENT.<~iHAli:'·!.m·\:GoVERNMENT .. ~·:.::.\~~< :· ·:.:·: ·
.. SELECTING AND LICENSING SPECIFIC TECHNOLOGIES;: :;:.·! ,,, ;;':'{'
>stJT
_______ ~ ·~· ~--~ ~ ___ -·~ ·~ __ -~;d~·J~:5~:~.s~·l'j~·~~;:·~~-: ~·~·;::~5t'~-·; ~~·- ~ ____ _
·TAX:.
.;.•:·
..
·,·.:·:·.
··,·.. ·
141018/021
�06/10/98
EB/CIP RM2533A .
'a'202 647 0158
10:05
@ 019/021
UNCLASSIFIED
Printed By: Jeffery E. Zinsmeister
-------------------------------~--------------------------
15.
(SBU) . DEHAENE SAID THE ISSUE OF TAx AND E COMMERCE IS
KEY FOR GOVERNMENTS. THE VALUE ADDED TAX IS VERY IMPORTANT;
THE PROBLEM IS HOW TO DECIDE WHERE THE TAX IS LEVIED.
MAGAZINER AGREED THAT THERE ARE A SIGNIFICANT NUMBER OF
IMPORTANT ISSUES TO BE ADDRESSED WITH RESPECT TO TAX AND THE
INTERNET .. INTERNATIONAL AGREEMENT IS NEEDED, OR THE
POTENTIAL FOR TAX AVOIDANCE WILL REMAIN HIGH.
WE HAVE
ADVOCATED INTERNATIONAL DISCUSSION ON TAX IN THE OECD IN .
PREPARATION FOR THE OCTOBER 1998 OTTAWA CONFERENCE ON E
COMMERCE. WE EXPECT THAT LEGISLATION WILL BE PASSED IN THE US
SOON WHICH WILL DECLARE A MORATORIUM ON NEW TAXES ON E
.COMMERCE AND ESTABLISH A COMMISSION TO STUDY A NEW APPROACH.
16.
(SBU)
BECAUSE IT IS VIRTUALLY IMPOSSIBLE TO KNOW THE
LOCATION OF THE SELLER ON THE INTERNET, THE US THINKS THAT
. TAX WILL NEED TO BE COLLECTED BASED ON THE RESIDENCE OF THE
BUYER. A CONSUMER'S SMART CARD OR SOFTWARE CAN_ BE PROGRAMMED
TO AUTOMATICALLY COLLECT TAX BASED ON HIS RESIDENCE. THE
TAX AUTHORITIES CAN HIRE A BANK OR CREDIT CARD COMPANY AS AN
ESCROW AGENT TO RECEIVE THE TAX. THE ADVANTAGE OF THIS
APPROACH TO THE BUYER IS ITS AUTOMATICITY; TO THE SELLER, THE
FACT THAT HE NEED NO LONGER COLLECT OR FORWARD TAXES; AND TO
THE GOVERNMENT, THE FACT THAT IT WILL RECEIVE TAX PAYMENTS
MORE RAPIDLY AND WITH A HIGHER DEGREE OF COMPLIANCE, THE
ONLY DOWNSIDE TO THIS APPROACH IS THAT OF DISTRIBUTION OF
BRUSSELS
04 OF OS
3524
PAGE 02
BRUSSE 03524 04 OF 05 091726Z
E.O. 12958: N/A
TAGS: ECPS, ETRD, KIPR, EUN, BE
SUBJECT: ELECTRONIC COMMERCE: MAGAZINER AND PM DEHAENE
REF:
(A)
(B) BRUSSELS 00926
BRUSSELS 3325
TAXES: POPULAR TOURIST DESTINATIONS WOULD LOSE TAX REVENUES,
WHICH_WOULD INSTEAD GO TO A CONSUMER'S PLACE OF RESIDENCE . .
THE OECD NEEDS TO DISCUSS HOW TO DEAL -WITH THIS. DEHAENE
NOTED_THAT THERE WOULD BE PROBLEMS WITH PROTECTING PRIVACY
WITH THIS APPROACH AS PERSONAL DATA WOULD GO TO A THIRD
PARTY. MAGAZINER SAID THAT THIS CAN BE AVOIDED AS CONSUMERS
COULD USE "CASH CARDS" WHICH IDENTIFY THEM ONLY BY RESIDENCE.
17. (SBU) NOTING THAT MORE AND MORE TRANSACTIONS WILL BE
CONDUCTED ELECTRONICALLY AS TIME GOES ON, MAGAZINER
EMPHASIZED THAT WE NEED AN INTERNATIONAL AGREEMENT ON A
UNIFORM APPROAH SOON. OTHERWISE THE POTENTIAL FOR TAX
AVOIDANCE IS GREAT. WE HAVE SUGGESTED THAT THE OECD TRY TO
DEVISE SOLUTIONS BETWEEN NOW AND 2000.
-------------------------------------------------------
BELGIUM HAS TECHNOLOGICAL BASIS TO L&AD IN E COMMERCE
-------·--------------~------------------------------
18. (SBUJ MAGAZINER TOLD PM DEHAENE THAT BELGIUM HAS KEY
PIECES OF INFRASTRUCTURE IN PLACE WHICH SHOULD ALLOW IT TO
LEAD IN DEVELOPING E COMMERCE. BELGIUM AND SINGAPORE WILL BE
THE FIRST IN THE WORLD TO HAVE BROADLY AVAILABLE THE WIDE
BANDWIDTH NEEDED FOR E ·.COMMERCE.· ·. IN ADDITION, ... BELGIUM ·. , · . ··
.. :_:
:~EI~~~~~~-:j;~;~~~~,~!~:~E~i::E~~~~~~;&~i~~~~~:;:_{~. :£;-•·:·id·:_ . ::.-_.···-·-··-·
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._._·_,·;;;bS';OEVE __
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:r--_·.-_-:·-i·.·.; __
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.·_·.TOWARDS REGULATION,;;tBtrr;JUST ;AS BELGIUM SUCCEEDED IN THE'<<;.: ; ,.
BY
· · _,. : · ·:
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::~_-._._'_.·_;_;_
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�06/10/98
EB!CIP RM2533A
'0'202 647 0158
10:06
UNCLASSIFIED
Printed By: Jeffery E. Zinsmeister
BE A LEADER NOW IN E COMMERCE BY ESTABLISHING AN OPEN
ENVIRONMENT.
19. (SBU) DEHAENE REPLIED THAT HE IS AWARE THAT BELGIUM HAS
IMPORTANT ADVANTAGES IN ITS HIGHLY DEVELOPED CABLE ACCESS,
'HIGH TELEPHONE PENETRATION AND SOPHISTICATED FINANCIAL L
SYSTEM. THE LIBERALIZATION OF THE TELECOMS SECTOR IS ALSO
IMPORTANT AND HAS CREATED A DYNAMIC THAT "SHOULD NOT llE
UNDERESTIMATED." IMPLYING THAT THE EU'S APPROACH MAY BE TOO
INTERVENTIONIST, HE SAID HIS "B~GGEST CONCERN" FOR BELGIUM IS
THAT THE LEGAL FRAMEWORK GOVERNING E COMMERCE "WILL BE MORE
AND MORE A EUROPEAN ONE. " THIS WILL HAVE A DIRECT IMPACT ON
BELGIUM'S ABILITY TO DEVELOPE COMMERCE. ANOTHER PROBLEM IS
"RIGIDITIES IN THE PUBLIC SECTOR" WHICH RESULTED IN BELGIUM
·MISSING THE FIRST WAVE OF ADAPTING TO ·INFORMATION TECHNOLOGY.
"TWO YEARS. AGO, I USED TO TELL PEOPLE THAT IF THEY ENTERED AN
OFFICE AND IT WAS FULL OF PC'S, IT WAS IN THE PRIVATE SECTOR;
IF IT WAS FULL OF TYPEWRITERS, IT WAS IN THE PUBLIC SECTOR,"
DEHAENE JOKED.
20 .. (SBU) THE SITUATION IS BETTER NOW, HE CONTINUED, BUT THE
DIFFERENCES ARE STILL ENORMOUS. TECHNOLOGICAL KNOWHOW IN THE
PUBLIC sECTOR IS LACKING THROUGH EUROPE. THE PRIVATE SECTOR
IS INCREASINGLY ATTRACTING THE BEST TALENT. CONSEQUENTLY, IT
IS DIFFICULT TO CONVERT CONSERVATIVE THINKING IN THE PUBLIC
SECTOR. ON TELECOMS LIBERALIZATION, FOR EXAMPLE, ALTHOUGH
COMPETITIVE FORCES ARE WORKING AND THINGS ARE CHANGING
RAPIDLY, BELGIUM REMAINS ''HANDICAPPED" BECAUSE. "MONOPOLIES
ADAPT SLOWLY." MOREfWER; THERE ·IS A NEED TO "INTRODUCE
ANOTHER MENTALITY TO PUBLIC ADMINISTRATION ,. TO REGULATE
ONLY ESSENTIAL THINGS, AND NOT TO SUPPORT THE INTERESTS OF
YOUR MONOPOLY."
DEHAENE SAID_THAT REGULATION OF E COMMERCE WILL
21.
{SBU)
DEVELOP MUCH AS REGULATION OF INDUSTRY DID: ."YOU DON'T NEED
RESTRICTIONS AT FIRST, BUT ACCIDENTS WILL AT A LATER STAGE
LEAD TO MORE REGULATION. BUT YOU NEED A CERTAIN ~IME TO TAKE
RISKS. " MAGAZINER AGREED, AND ADDED THAT IF THE MARKET IS
PERMITTED TO DEVELOP, WHEN IT BECOMES NECESSARY FOR
GOVERNMENTS TO ACT, THEY CAN DO SO "PRECISELY."
COMMENT
{SBU)
MAGAZINER'S MESSAGE WAS COVERED WIDELY AND
POSITIVELY IN THE BELGIAN MEDIA AND APPLAUDED BY THE PRIVATE
SECTOR, WHICH HAS BEEN WELL-AHEAD OF THE BELGIAN GOVERNMENT
IN RECOGNIZING THE POTENTIAL OF ELECTRONIC C~ERCE AND THE
22.
BRUSSELS
OS OF OS
3S24
BRUSSE 03524 OS OF OS 091726Z
PAGE 02
TAGS: ECPS, ETRD, KIPR, EUN, BE
SUBJECT: ELECTRONIC COMMERCE: MAGAZINER AND PM DEHAENE
REF:
{A)
BRUSSELS 3325
{B) BRUSSELS 00926
DOWNSIDE OF EXCESSIVE GOVERNMENT INVOLVEMENT AND REGULATION.
DEHAENE' S COMMENTS SUGGEST THAT THIS POINT REGISTERED FULLY,
<{·~'.:.
·:;:(·i''1 :?ji,!~~M~~I~S~ =~
/'fj1:.... n:> BUREAUCRACY. OUR
~~E:o:~~~~~N-r:~~-~,~~~~~S~:~~~~~ IN
BEST HOPE OF :~.~I~I}l¢3}i~~fGIAN SUPPORT FOR THE
'i:\ki:':d~•"US APPROACH LIES IN CONTINUING;~TOi:WORK·):CLOSELY WITH THE
.;:};;{ti:·'r': PRIVATE sECTOR, . AND· EsPP:c±Al;i:~)~b:N'~'aEtP±NG ,'THE 'PRIVATE sECTOR
;;.1;.':'::::: MAKE THE CASE FOR MINIMAL INTERVENTiON WITH SENIOR BELGIAN
;,:,,,,,,,.:·:~;-: POLICYMAKERS, AS THE
. ~~~-:·.·~H:··;: . :.
-~ ~~>·:,
, ...
··.:': . . .
... ·. .
EFFECTIVELY .
-
@ 020/021
�Ut:i/lU/~Hi
t4! 0.2110.21
lU:U/
. UNCLASSIFIED
Printed By: J~ffery
E:
Zinsmeister
23.
(U)
MR. MAGAZINER DID NOT HAVE AN OPPORTUNITY TO CLEAR
THIS CABLE.
BLINKEN
UNCLASSIFIED.
7
�Withdrawal/Redaction Sheet
Clinton Library
DOCUMENT NO.
AND TYPE
001. cable'
DATE
SUBJECTffiTLE
From AmEmbassy Brasilia re: Botafogo Expresses Interest in
Discussing Joint E-Commerce Statement (2 pages)
07110/98
RESTRICTION
PS
COLLECTION:
CLINTON LIBRARY PHOTOCOPY
Domestic Policy Council
Ira Magaziner (Electronic Commerce)
OA/Box Number: 13116
FOLDER TITLE:
Brazil-Joint Statement
Rhonda Wilson
rwl09
RESTRICTION CODES
Presidential Records Act- [44 U.S.C. 2204(a))
Freedom of Information Act- [5 U.S.C. 552(b)]
Pl National Security Classified Information [(a)(l) of the PRA]
P2 Relating to the appointment to Federal office [(a)(2) of the PRA]
P3 Release would vio1ate a Federal statute [(a)(3) of the PRA]
P4 -Release would disclose trade secrets or confidential commercial or
financial information [(a)(4) of the PRA]
PS Release would disclose confidential advise between the President
and his advisors, or between such advisors [a)(S) of the PRA]
P6 Release would constitute a clearly unwarranted invasion of
personal privacy [(a)(6) of the PRA]
b(l) National security classified information [(b)(l) of the FOIA]
b(2) Release would disclose internal personnfl rules and practices of
an agency [(b)(2) of the FOIA]
b(3) Release would violate a Federal statute [(b)(3) of the FOIA]
b(4) Release would disclose trade secrets or confidential or finanCial
information [(b)(4) of the FOIA]
b(6) Release would constitute a clearly unwarranted invasion of
personal privacy [(b)(6) of the FOIA]
b(7) Release would disclose information compiled for law enforcement
purposes [(b)(7) of the FOIA]
b(S) Release would disclose information concerning the regulation of
financial institutions [(b)(8) of the FOIA]
b(9) Release would disclose geological or geophysical information
concerning wells [(b )(9) of the FO lA]
C. Closed in accordance with restrictions contained in donor's deed
of gift.
PRM. Personal record misfile defined in accordiuice with 44 U.S.C.
2201(3).
RR. Document will be reviewed upon request.
�EB/CIP RM2533A
'&202 647 0158
16:28
. 07/14/98
UNCLASSIFIED
Printed By: Jeffery E. Zinsmeister
ACTION CIP-00'
CEA-01
ARA-01
ACDA- 08 ACDE-00· AID-00
EXME-00
ITCE-00 SRPP-00 EB-00
DODE-00
TEDE-00
H-01
FRB-00
UTED-00 FCC-01
NSAE-00 NSCE-00 OMB-01
ADS-00
L-01
TRSE-00 USIE-00
STR-00
SS-00
SS0-00
/021W
SAS-00
NFAT-00
------------------520576 101404Z /38
P 10125BZ JUL 99
FM AMEMBASSY BRAS~LIA
TO SECSTATE WASHDC'PRIORITY 2233
.USDOC WASHDC ~RIORITY
.AMEMBASSY BUENOS AIRES
AMEMBASSY MONTEVIDEO
AMEMBASSY ASUNCION
AMCONSUL·RECIFE
AMCONSUL RIO DE JANEIRO
AMCONSUL SAO PAULO
INFO
LOG-00
CTME-00
E-00
ITC-01
SP-00
G-OO
CIAE-00
OIG0-01
INR-00
OPIC-01
DRL-04
UNCLAS BRASILIA 002610
DEPARTMENT FOR EB/CIP (JDEASY)
USTR PASS TO PALLGEIER/DABELSON
USDOC FOR ITAi RVARGO, JANDERSON
E.O. 12958: N/A
TAGS: ECPS, ETRD, BR
SUBJECT: BOTAFOGO EXPRESSES INTEREST IN DISCUSSING JOINT
E-COMMERCE STATEMENT
1.
(U) SENSITIVE BUT UNCLASSIFIED.
ACCORDINGLY.
PLEASE TREAT
2. (SBU) AMBASSADOR RAISED THE SUBJECT OF A POSSIBLE
. U.S . -BRAZIL JOINT i STATEMENT ON GLOBAL ELECTRONIC
:I I
·
:
COMMERCE WITH MINiyTE~ OF INDUSTRY AND TRADE BOTAFOGO
DURING A FAREWELL p.LL ON JULY 8. BOTAFOGO HAS BEEN AT
THE FOREFRONT OF:GOB' EFFORTS ON ELECTRONIC COMMERCE,
AND, AS REPORTED EARLIER, HAS'SET UP A NEW WORKING GROUP
IN THE MINISTRY OFIINDUSTRY AND TRADE TO FOLLOW
.
.
DEVELoPMENTS IN ELEcTRONIC COMMERCE AND THE DEVELOPMENT
OF A DIGITAL ECONOMY IN BRAZIL.
I
·,,: :. >.
3.
(SBU) BOTAFOGO.TOLD AMBASSADOR, ALBEIT CAUTIOUSLY,
THAT HE WAS INTERESTED IN BEGINNING SOME FORM OF
.
DISCUSSION ON AN E-COMMERCE AGENDA THAT COULD DEVELOP
INTO A POSSIBLE JOINT STATEMENT. HE AGREED THAT BRAZIL
WAS PRESENTLY FURTHER ALONG IN ITS AWARENESS AND
UNDERSTANDING OF E~COMMERCE THAN IT WAS LAST OCTOBER,
PRIOR TO PRESIDENT CLINTON'S VISIT, WHEN USG OFFICIALS
RAISED THE SUBJECT:FORTHE·FIRST TIME WITH HIM. HE SAID
THAT HE THOUGHT THAT THE UNITED STATES HAD "MADE A
MISTAKE" BY PRESENTiNG BRAZIL WITH WHAT LOOKED LIKE A .
FINAL TEXT, ALTHOU~H. HE. ALSO ADMITTED THAT THE GOB DIO
<
NOT KNOW ENOOGH ABOUT THE SUBJECT AT THE TIME. ,
:, :,.·: .::, ··.:;:~.··; :·.· .··. ., ·~··< C;o_i: SAID. HE THOUGHT -THAT THE ,.U.S. ...
/::•i;(O.:•' 4. '(SBU) . . •BOTAFOG()i>!· • ·;:;;)M'':;::\ <i:'.e:·:~::;:,J:?:.•:• ·<)···. . .. ·T~T.,..,.;;,c;,.,.··•:,;'>';•.:,;•.·;::,
1
r.~J;rt~t{.t.t:'. ~~~Ro~~T~:':=.·.~ I.~-~..)~.~·.·.J.~~~~~~~*Ngp~:f~L,
~E~~~~.
·: .'·,;.:·<.v:r.:•::'
.
ARGENTINA- BRAZIL;· ~(~TEMENT ['X} AMBASSADOR· TOLD HIM·
if~~~~~Bit~E.
·i~~~~~' ,,; ;, u.~ t~itiF' tf;~lt~:·'.~.• ·:.~-·.' · ·.' _:.~ ;_~1~;;: .
•
:i_\_,.·! . . .;··.·;·:
.. l.l.;.·· .
· ,.
......
·<.·.·· '·
,·,,-··. ·.:·:,._;:\;~;~;·:·~\?;
'.·::·'·:··.,
'.··.··
-
',•·
'
'.
. . .:_)_..
••
-ic:DoJt-iMimc:......................
141002/016
�07/14/98
..
16:28
,-.
'0'202 647 0158
EB/CIP Rhl2533A
UNCLASSIFIED
Printed By: Jeffery E. Zinsmeister
SEEN THE FRENCH BACKGROUND PAPER. AMBASSADOR ALSO
SUGGESTED THAT THEfiSSUE COULD BE DISCUSSED AT A WORKING
LEVEL BEFORE HIS NEXT VISIT TO THE U;S. HE SAID HE
WOULD DIRECT HIS SECRETARY FOR INDUSTRIAL TECHNOLOGY
AMBASSADOR OSCAR LORENZO FERNANDEZ TO PURSUE THE ISSUE.
LEVITSKY
''
i.
141003/016
�Withdrawal/Redaction Sheet
Clinton Library
DOCUMENT NO.
AND TYPE
DATE
SUBJECTffi1LE
RESTRICTION
001. cable
From USEU Brussels re: The EU Data Protection Directive (6 pages)
07/06/98
P5
002. cable
From AmEmbassy Singapo~y re: Bilat Meeting with Australia (2
pages)
06/08/98
P5
003. cable
From AmEmbassy Singapore re: BilatMeeting with Singapore (3
pages)
06/08/98
P5
COLLECTION:
Domestic Policy Council
Ira Magaziner (Electronic Commerce)
OA/Box Number: 13116
FOLDER TITLE:
General·Cables
Rhonda Wilson
rw110
RESTRICTION CODES
Presidential Records Act- [44 U.S.C. 2204(a)]
Freedom of Information Act- [5 U.S.C. 552(b)]
Pl National Security Classified Information [(a)(l) of the PRA]
P2 Relating to the appointment to Federal office [(a)(2) of the PRA]
P3 Release would violate a Federal statute [(a)(3) of the PRA]
P4 Release would disclose trade secrets or confidential commercial or
financial information [(a)(4) of the PRA]
P5 Release would disclose confidential advise between the President
and his advisors, or between such advisors [a)(5) of the PRA]
P6 Release would constitute a clearly unwarranted invasion of
personal privacy [(a)(6) of the PRA]
b(l) National security classified information [(b)(l) of the FOIA]
b(2) Release would disclose internal personnel rules and practices of
an agency [(b)(2) of the FOIA]
b(3) Release would violate a Federal statute [(b)(3) of the FOIA]
b(4) Release would disclose trade secrets or confidential or fmancial
information [(b)(4) of the FOIA]
b(6) Release would constitute a clearly unw.arranted invasion of
personal privacy [(b )(6) of the FOIA]
·
b(7) Release would disclose information compiled for law enforcement
pill-poses [(b)(7) of the FOIA]
b(S) Release would disclose information concerning the regulation of
financial institutions [(b)(S) of the·FOIA]
b(9) Release would disclose geological or geophysical information
concerning wells [(b)(9) of .the FOIAJ. LIBRARY
·
_
GL1 I UN
N
.
PHOTOCOPY
C. Closed in accordance with restrictions contained in donor's deed
of gift.
PRM. Personal record misfile defmed in accordance with 44 U.S.C.
2201(3).
. ·RR. Document will be reviewed upon request.
�_07 /08/98
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ACTION EB-00
INFO
LOG-00
FCC-01
.NSAE-00
CIAE-00
IMMC-01
STR-00
CIP~OO
· COME-00. SRPP-00 EUR-01
INR-00
LAB-01
L-01
DRL-04
SAS-00
/009W
--~----------~----511B84
062356Z /22
TEDE-00
USIE-00
R 061411Z JUL 98
.FM USEU BRUSSELS
TO SECSTATE WASHDC
INFO USDOC WASHDC
ALL EUROPEAN UNION POST COLLECTIVE
UNCLAS SECTION 01 OF 04 BRUSSELS 004184
SENSITIVE
STATE
STATE
USDOC
USDOC
PARIS
PASS USTR FOR ABELSON
FOR EB/CIP;, EB/TPP/0' BRIEN AND EUR/ERA
FOR NTIA -: BURR
FOR ITA - WELLBERY
ALSO FOR OECD
E.O. 12958: N/A
TAGS: EINT, ECPS, EUN
SUBJECT: THE EU DATA PROTECTION DIRECTIVE:
BRUSSELS
01 OF 04
BE PREPARED
4184
1.
(~) THIS MESSAGE IS SENSITIVE BUT UNCLASSIFIED.
PLEASE DO NOT DISTRIBUTE IT OVER THE INTERNET OR IN OTHER
PUBLICLY ACCESSIBLE CHANNELS.
2.
(SBU) SUMMARY·AND INTRODUCTION: THE EU.DATA
PROTECTION DIRECTIVE WILL ENTER INTO FORCE ON OCTOBER 25,
1998 . . THIS LAW WILL ALMOST CERTAINLY HAVE A MAJOR IMPACT
ON TRANSATLANTIC DATA FLOWS AND THEREFORE TRANSATLANTIC
TRADE. • UNDER THEj DATA PROTECTION DIRECTIVE, EU MEMBER
STATES ANP THE C9~ISSION ARE REQUIRED TO REVIEW FOREIGN
TRANSFERS OF PERSONAL DATA CONCERNING EU CITIZENS TO
ENSuRE THAT THE RECIPIENTS (E.G., us FIRMS) WILL PROVIDE
"ADEQUATE" PROTECTION FOR THIS DATA. IF IT IS DEEMED
THAT AN ADEQUATE 1 LEVEL OF PROTECTION IS NOT PRESENT, THE
RECIPIENT WILL BE' CuT OFF FROM ALL EU DATA FLOWS. SINCE
THE US APPROACH TO DATA PRIVACY, BASED ON INDUSTRY SELFREGULATION, DIFFERS CONSIDERABLY FROM THE EU APPROACH,
WHICH RELIES ON GOVERNMENT REGULATION AND OVERSIGHT, THE
POTENTIAL FOR P~O~LEMS IS HIGH.
.
,II .
..
3.
(SBU) USG OFlfiCIALS HAVE BEEN ENGAGED IN AN INTENSIVE
DIALOGUE WITH EUI~OMMISSION OFFICIALS, NOTABLY IN
DISCUSSIONS BETWEEN COMMERCE U/S DAVID AARON AND DG XV
DIRECTOR GENERAL iJOHN MOGG; TO INFORM THEM ABOUT- PRIVACY
PROTECTION IN THE'US, GAIN A BETTER UNDERSTANDING OF THE .
•• DIRECTIVE, FIND WAYS TO MESH OUR DIFFERING APPROAcHES AND.
AVERT A MAJOR DISRUPTION. • NEvERTHELESS' BECAUSE OF THE .
WAY THAT CASES ARE PROCESSED UNDER THE DATA PROTECTION .•.
. , . : ,DIRECTIVE; soME
· ARE LIKELY TO. cicct:JR EvEN IN
. INITIATORs OF ACTION 1'111T1n~~f·''·'•·
UTED-00
ADS-00
14] 005/020
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I'
4.
(SBU) POSTS INj SOME EU MEMBER STATES HAVE ALREADY
ESTABLISHED A WORkJ:NG RELATIONSHIP WITH·HOST COUNTRY DATA
PROTECTION AUTHORITIES AS A'RESULT OF CASES WHERE us
.
'I
FIRMS HAVE RUN AF.OUL OF EXISTING DATA PRIVACY LAWS.
POSTS WHICH HAVE NOT MAY WANT TO BEGIN TO DEVELOP
RELATIONSHIPS WITH THEIR LOCAL DATA REGISTRARS AND
MINISTRIES OF JUSTICE TO PREPARE FOR POSSIBLE REQUESTS
FOR ASSISTANCE WHEN THE EU DIRECTIVE ENTERS INTO FORCE.
TO ASSIST IN THIS EFFORT, FOLLOWING IS A BRIEF PRIMER ON
THE DATA PROTECTION DIRECTIVE. USEU STANDS.READY TO
ASSIST POSTS WITH ADDITIONAL INFORMATION, AND TO
INTERCEDE WITH EU COMMISSION OFFICIALS ON BEHALF OF US
DATA RECIPIENTS AFFECTED BY THE DIRECTIVE. END SUMMARY
.AND INTRODUCTION.
SWEEPING EU PRIVACY LEGISLATION
------------~------------------
5.
(SBU) THE EU DATA PROTECTION DIRECTIVE WAS APPROVED
ON OCTOBER 24, 1995. IT SET A THREE-YEAR DEADLINE FOR
MEMBER STATES TO TRANSPOSE ITS REQUIREMENTS INTO NATIONAL
.LAW. · EU COMMISSION OFFICIALS HAVE INDICATED THAT
'
.TRANSPOSITION IS PROCEEDING SATISFACTORILY AND THAT THE
LAW WILL ENTER INTO FORCE AS SCHEDULED ON OCTOBER 25,
1998. THE DIRECTIVE IS BASED UPON THE CONCEPT THAT THE
RIGHT TO PRIVACY IS A FUNDAMENTAL HUMAN RIGHT,
RECOGNIZED, FOR EXAMPLE, IN THE EUROPEAN CONVENTION FOR
THE PROTECTION OF iHUMAN RIGHTS AND FUNDAMENTAL FREEDOMS,
AND IN EUROPEAN COMMUNITY LAW. EXTENDING THIS LOGIC,
SOME COMMISSION OFFICIALS, ALTHOUGH NOT THE COMMISSION · AS
I I
A WHOLE, HAVE EX~~ESSED THE VIEW THAT QUESTIONS SUCH AS
THE PUBLIC AND PRIVATE COSTS OF IMPLEMENTING THE
DIRECTIVE ARE IRRELEVANT' SINCE FUNDAMENTAL HUMAN RIGHTS
ARE AT STAKE .
6.
(SBU). THE DIRECTIVE .APPLIES TO ALL PROCESSING OF
PERSONAL DATA BY ANY ENTITY WHOSE ACTIVITIES ARE GOVERNED
BY COMMUNITY LAW, INCLUDING, FOR EXAMPLE, US FIRMS
ENGAGED IN COMMERCIAL TRANSACTIONS WrTH EU CITIZENS.
"PERSONAL DATA" MEANS ANY INFORMATION RELATING TO AN
IDENTIFIED OR IDENTIFIABLE NATURAL PERSON. AN
IDENTIFIABLE PERSON IS ONE WHO CAN BE IDENTIFIED,
DIRECTLY OR INDIRECTLY, FROM,THE DATA BEING PROCESSED
(E.G., THROUGH SOME SORT OF IDENTIFICATION NUMBER). THE
DIRECTIVE ONLY COVERS AUTOMATED DATA PROCESSING, OR DATA
PROCESSED THROUGH!A·FILING SYSTEM STRUCTURED ACCORDING TO
SPECIFIC CRITERIA! RELATING TO INDIVIDUALS, so AS TO
BRUSSELS
02. OF· 04
4184
PERMIT EASY ACCErf TO PERSONAL DATA.
7.
(SBU) THE DIRECTIVE DEFfNES THE PERSON OR BODY WHICH
DETERMINES THE PURPOSES AND THE MEANS OF PROCESSING THE
DATA AS THE "DATA: CONTROLLER." A DATA CONTROLLER IS
. : WITH THE NATIONAl. LAW OF THE MEMBER.
' l SHE IS ESTABLISHED. WHEN THE nATA
ESTABLISHED IN THE EU
.G ..., .
~S'l'~LISHED,, .
..EU ·
14]006/020
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8.
(SBU) IN TRANSPOSING THE DIRECTIVE INTO NATIONAL LAW,
MEMBER STATES ARE REQUIRED TO DEFINE THE CIRCUMSTANCES
UNDER WHICH THE PROCESSING OF PERSONAL DATA ARE· UNLA\~FtJL.
THE. BASIC REQUIREMENTS OF THE DIRECTIVE ARE THAT THE DATA
PROCESSED MUST BE:
ADEQUATE, RELEVANT AND NOT EXCESSIVE IN RELATION TO
THE .PURPOSE FOR WHICH THEY ARE PROCESSED;
ACCURATE ANb! ;iCURRENT;
USED ONLY FOR LEGITIMATE PURPOSES THAT ARE DETERMINED
AT THE TIME OF THE COLLECTION OF THE DATA; AND
KEPT IN IDENTIFIABLE FORM NO LONGER THAN NECESSARY TO
ACHIEVE THE P~POSES FOR WHICH ~HEY WERE COLLECTED.
FURTHER PROCESSING OF DATA FOR HISTORICAL, STATISTICAL OR
SCIENTIFIC PURPOSES IS ALLOWED PROVIDED MEMBER STATES
ESTABLISH SUITABLE SAFEGUARDS.
9.
(SBU) PERSONAL DATA MAY BE PROCESSED WITH THE
UNAMBIGUOUS CONSENT OF THE SUBJECT FOR THE PERFORMANCE OF
A BINDING CONTRACT ON THE SUBJEP, AS REQUIRED BY LAW TO
PROTECT A VITAL INTEREST OF THE SUBJECT, FOR THE
PERFORMANCE OF A TASK CARRIED OUT IN THE PUBLIC INTEREST
OR BY PUBLIC AUTHORITIES, OR WHENEVER THE CONTRQLLER OR A
THIRD PARTY HAS A LEGITIMATE INTEREST IN DOING SO AND
THIS INTEREST IS NOT OVERRIDDEN BY THE INTEREST OF
PROTECTING THE FUNDAMENTAL·~IGHTS OF THE SUBJECT.
'
'
(SBU) PROCESSORS OF DATA MUST INFORM PERSONS FROM
WHOM THEY INTEND TO COLLECT DATA OF THE PURPOSE FOR THE
PRO<:;ESSING, .OF THE SUBJECT'S RIGHT OF ACCESS TO AND
OPPORTUNITY TO CORRECT DATA CONCERNING HIM OR HERSELF,
AND OF THE NAME AND ADDRESS OF THE DATA CONTROLLER.
MEMBER STATES MAYiDETERMINE THE CIRCUMSTANCES IN WHICH
PERSONAL DATA MAf:BE USED OR DISCLOSED TO A THIRD PARTY
IN THE CONTEXT OF:LEGITIMATE ORDINARY BUSINESS
ACTIVITIES.
10:
ii .
~ .'
.
.· .
11.
(SBU) THE Df~ECTIVE REQUIRES EACH MEMBER STATE TO
ESTABLISH AN.INDffENDENT PUBLIC AUTHORITY, OFTEN CALLED
THE DATA REGISTRAR, TO SUPERVISE THE PROTECTION OF
PERSONAL DATA. HcH AuTHORITY MUST HAVE THE POWER TO
INVESTIGATE DATA:PROCESSING ACTIVITIES; TO INTERVENE TO
BLOCK PROPOSED PROCESSING, TO ORDER THE ERASURE OF DATA,
AND TO BLOCK PROPOSED TRANSFERS OF DATA TO THIRD PARTIES.
THE DIRECTIVE REQUIRES DATA CONTROLLERS TO NOTIFY THE
APPLICABLE NATIONAL AUTHORITY BEFORE BEGINNING DATA
PROCESSING. NATIONAL AUTHORITIES ARE REQUIRED TO
INVESTIGATE ANY DATA PROCESSING WHICH "POSES SPECIFIC
RISKS TO THE .RIGHTS AND FREEDOMS OF INDIVIDUALS." FOR
CERTAIN ROUTINE PROCESSING wHICH DOES NoT POSE A
SIGNIFICANT THREAT TO INDIVIDUAL RIGHTS, THE DIRECTIVE
. PERMITS MEMBER STATES TO SIMPLIFY OR ELIMINATE THE.
.
.NOTIFICATION REQUIREMENT. EACH AUTHORITY IS REQUIRED'TO
MAINTAIN. AND MAKE [AVAILABLE TO THE PUBLIC A "REGISTER OF
'. NOTIFIED PROCESSING OPERATIONS. "
I.
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WITH EXTRATERRITORIAL REACH
13.
(SBU) ARTICLE 25 OF THE DIRECTIVE REQUIRES MEMBER
STATES TO GIVE NATIONAL DATA PROTECTION AUTHORITIES THE
. POWER TO BLOCK THE TRANSFER OF PERSONAL DATA TO FOREIGN
PARTIES (E.G., COUNTRIES, FIRMS OR oTHER ENTITIES) WHICH
DO NOT PROVIDE. AN "ADEQUATE LEVEL OF PROTECTION" FOR THIS
ECONOMIC SECTORS WHICH COULD EXPERIENCE IMMEDIATE.
DATA.
PROBLEMS FROM THIS PROVISION INCLUDE AIRLINE AND OTHER
TRAVEL RESERVATION SYSTEMS, PHARMACEUTICAL FIRMS WITH
LARGE PATIENT DATABASES, AND FINANCIAL AND CREDIT CARD
FIRMS. ANY MULTINATIONAL FIRM WITH AN AUTOMATED
PERSONNEL DATA BASE WOULD HAVE TO MANAGE THE DATA IN A
MANNER WHICH CONFORMS. TO THE REQUIREMENTS.OF EU LAW.
EVEN A TRAVELING! SALESMAN WITH A LAPTOP COMPUTER WOULD BE
COVERED IF HE ENTERS INFORMATION FROM HIS SALES CALLS.
COMPLIANCE COSTS FOR THE PRIVATE SECTOR WILL NOT BE
NEGLIGIBLE.
14.
(SBU) COMMISSION OFFICIALS HAVE CONFIRMED THAT AN
ADEQUATE. PRO.TECTION SYSTEM DOES NOT HAVE TO MIRROR THAT
CREATED BY THE DATA PROTECTION DIRECTIVE, ALTHOUGH IT
MUST PROVIDE THE SAME TYPES OF PROTECTIONS (E.G.,
ADEQUACY, ACCURACY, LEGITIMACY), GIVE THE SAME RIGHTS OF
ACCESS AND REDRESS, AND HAVE MECHANISMS TO ENSURE
COMPLIANCE. THEY HAVE ACKNOWLEDGED THAT THE TYPE OF
INDUSTRY-LED, SELF-REGULATING SYSTEMS CURRENTLY BEING
. CREATED IN THE UNITED STATES MAY MEET THEIR TEST OF
ADEQUACY, BUT HAVE INSISTED THAT THEY WANT TO SEE "SELFREGULATION WITH TEETH" (I.E., CREDIBLE MEASURES TO
ADDRESS NON-COMPLIANCE) .
.15.
{SBU) ARTICLE 26 OF THE DIRECTIVE ESTABLISHES A
LIMITED. NUMBER OF EXCEPTIO.NS WHICH CAN PERMIT TRANSFERS
WHICH MIGHT.OTHERWISE BE BLOCKED UNDER ARTICLE 25. TRESE
INCLUDE CIRCuMSTANCES WHERE THE DATA SUBJECT HAS
CONSENTED UNAMBI:GtrOUSLY TO .THE TRANSFER {OPT-IN CONSENT),
OR WHERE THE TRANSFER IS NECESSARY TO THE PERFORMANCE OF
A CONTRACT CONcLUDED IN THE INTEREST OF. THE DATA SUBJECT
BETWEEN THE DATA. CONTROLLER AND A THIRD PARTY. ALSO,
ARTICLE 26 ALLOWS A MEMBER STATE T.O AUTHORIZE TRANSFERS
. OF PERSONAL DAT~ TO FOREIGN PARTIES WHICH ARE DEEMED TO
LACK ADEQUATE PROTECTION IF THE CONTROLLER PROVIDES
. ADEQUATE SAFEGtJAhl>s. SUCH SAFEGUARDS MAY IN PARTICiJLAR
. t l
..
.
INCLUDE CONTRAC;I1~UAL ARRANGEMENTS . CONTRACTUAL SOLUTIONS
1
MAY EVENTUALLY P IoVE TO BE A KEY ELEMENT IN THE
.
.
.
INTEGRATION OF THE US AND THE EU APPROACHES TO DATA
~RIVACY .
. -~ !
.
.
16.
{SBU) USG OFFICIALS HAVE BEEN ENGAGED IN AN
INTENSIVE DIALOGUE WITH EU COMMISSION OFFICIALS, NOTABLY
IN DISCUSSIONS BETWEEN COMMERCE U/S DAVID AARON AND DG XV
DIRECTOR GENERAL JOHN MOOG. IN THESE MEETINGS, THE US · .
. . HAS SOUGHT TO . INFORM THE EU ABOUT THE DEVELOPMENT OF
·.
IN THE US, TO GAIN A BETTER
THE EU DATA PROTECTION riTio'C"r...,.TVf:'
.WAYS, TO MESH OuR ...
,·l:'IUii/A~;%
TO
lf!:JUUIS/U~U
�07/08/98
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i!
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'!
- !)
KEY ROLE OF MEMBER STATES
17.
{SBU) .THE STARTING POINT FOR ACTION UNDER THE
DIRECTIVE OCCURS ·WHEN A COMPLAINT IS BROUGHT TO ONE OF
THE .15 NATIONAL DTA REGISTRARS. IN SOME MEMBER STATES,
THE MIISTRY OF JUSTICE MAY ALSO HAVE A ROLE IN THE
PROCESS. THE COMPLAINT COULD BE. BROUGHT BY AN
INDIVIDUAL, OR BY AN ORGANIZATION (E.G., A PRIVACY
ACTIVIST GROUP) ON BEHALF OF AN INDIVIDUAL OR GROUP OF
INDIVIDUALS. COMMISSION OFFICIALS HAVE INDICATED THAT,
SHOuLD A MEMBER STATE DATA REGISTRAR DECIDE TO BLOCK DATA
TRANSFERS TO A FOREIGN PARTY, THAT BLOCKAGE WILL REMAIN
IN FORCE FOR ..TRANSFERS FROM THAT MEMBER sTATE ONLY (NOT
OTHER EU MEMBER STATES) UNTIL IT IS REVIEWED BY THE
COMMISSION. THE COMMISSION'S REVIEW WILL DETERMINE
WHETHER THE DATA REGISTRAR'S DECISION IS VALID, IN WHICH
BRUSSELS
04 OF 04
4184
CASE IT WILL BE APPLIED IN ALL MEMBER STATES, OR INVALID,
. IN WHICH CASE THE IMPEDIMENT TO DATA TRANSFERS WILL BE
LIFTED. WHILE COMMISSION OFFICIALS HAVE INDICATED THAT
THEY: WILL TRY TO/<;OMPLETE THEIR REVIEW WORK
EXPEDITIOUSLY, ~~~N A RECIPIENT WHICH IS CLEARED OF
·WRoNGDOING BY TH~ !COMMISSION WOULD STILL EXPERIENCE SOME
DISRUPTION IN DATA FLOWS FROM A~ LEAST ONE MEMBER STATE.
{SBU) WITH is DIFFERENT NATIONAL AUTHORITIES
POTENTIALLY REVIE:WING MILLIONS OF DATA TRANSh<:TIONS IN
. THE LIGHT OF 15 DIFFERENT. SETS OF. NATIONAL LAWS AND
TRADITIONS RELATING TO PERSONAL PRIVACY, IT SEEMS LIKELY
THAT US PARTIES WILL BE THE TARGET OF A NUMBER OF
. COMPLAINTS, AT LEAST uNTIL EU-WIDE PRECEDENTS ARE
ESTABLISHED AND ALL THE PARTICIPANTS IN THE PROCESS.HAVE
A CLEARER PICTURE 'OF HOW THE LAW WILL OPERATE. CURRENT
DISCUSSIONS WITH "i'HE COMMISSION SUGGEST THAT THE CHANCES
ARE LOW THAT THE,Us COULD OBTAIN A BLANKET CLEARANCE FROM
ACTION UNDER THE'DIRECTIVE .. AT THE SAME TIME, COMMISSION
OFFICIALS HAVE INDICATED THAT THEY WANT TO MINIMIZE
DISRUPTION TO TRANSATLANTIC COMMERCE AND THAT THE CHANCES
OF A TOTAL BLOCK ;ClN DATA TRANSFERS TO THE US ARE· ALSO.
LOW. THE LIKELIEST SCENARIO, IN PARTICULAR GIVEN THE
ENORMOUS ENFORCEMENT BURDEN CREATED BY THE DIRECTIVE, IS
.THAT MEMBER STAtEiAUTHORITIES AND TH.E.COMMISSION WILL
TAKE TARGETED ACTION AGAINST A FEW INDIVIDUAL FIRMS,
HOPING THAT THIS;WILL PERSUADE OTHERS TO ADOPT MORE
RIGOROUS PROTECTI9N POLICIES.
18.
(SBU) -ANOTHER POINT WHERE THE MEMBER STATES WILL
HAVE A KEY ROLE IS IN THE SO CALLED "ARTICLE 3~
COMMITTEE. 11
31 OF THE DIRECTIVE CREATES A
COMMITTEE
MEMBER STATE REPRESENTATIVES AND
THE COMMISSION IS REQUIRED TO
,:.,t,,.., 1111 ,,.,..,.,,..,. DRAFTS. OF .MEASuRES TO BE rAI<EN
THE COMMITTEE WILL;DELivER AN
ACI:ORDHlG_ ,TO . .
19.
,.,.... ,_,,.,,_,.,,,_,_.
@ 009/020
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BE PREPARED
20.
(SBU) COMMENT: .USEU IS AWARE THAT POSTS IN SOME EU
MEMBER STATES ALREADY ARE ENGAGED IN ACTIVE DISCUSSIONS
WITH HOST COUNTRY PRIVACY AUTHORITIES AS A RESULT OF
CASES WHERE·US FIRMS HAVE RUN AFOUL OF EXISTING NATIONAL
PRIVACY LAWS. ON THE OTHER.HAND, POSTS WHICH'DO NOT YET
HAVE A GOOD WORKING RELATIONSHIP WITH THEIR NATIONAL DATA
REGISTRAR MAY WANT TO ESTABLISH CONTAcTS TO PREPARE FOR
POSSIBLE REQUEST's FOR ASSISTANCE FROM US FIRMS AND OTHER
DATA RECIPIENTS WHICH ENCOUNTER PROBLEMS WITH THE DATA
PROTECTION DIRECTIVE. MINISTRY OF JUSTICE CONTACTS MAY
ALSO BE USEFUL IN SOME CASES. USEU STANDS READY TO
ASSIST ANY POST WITH ADDITIONAL INFORMATION ON THE EU
DATA PROTECTION~IRECTIVE, AND TO INTERCEDE WITH EU
COMMISSION OFFICffu.S ON BEHALF OF US DATA.RECIPIENTS
WHICH ENCOUNTER PROBLEMS WITH THIS NEW, SWEEPING PRIVACY
1
LAW. END COMMENT •
(DRAFTED:ECON:CHELMER)
WEAVER
I
!
:!
i
i
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,,
UNCLASSIFIED
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ACTION CIP-00
AIT-03
ACDA-08 ACDE-00 AGRE-00 AID-00
LOG-00
DOTE-DO
CIAE-00 CTME-00 DINT- 00 DODE-00 ITCE-00
UTED-00
E~OO
EXME-00 EUR-01
.EB-00
EAP-01
:::TC-01
I0-00
TEDE-00 INR-00
Hl-01
H-01
O?IC-01
o~:B- 01
NSAE-00 OIC-02
ADS-00
L-01
SS-00
STR-00
SS0-00
SP-00
CI0-00
PRS-00
/0271'1
NFAT-00 SAS-00
G-00
USIE-00 DRL-04
-----•~-----------466DSi 080613Z /38
P OB0610Z JUN 98
FM AMEMBASSY SINGAPORE
TO SECSTATE WASHDC PRIORITY '1942
INFO APEC COLLECTIVE PRIORITY
WHITE HOUSE WASHDC PRIORITY
USMISSION GENEVA PRIORITY
USEU BRUSSELS PRIORITY
USDOC WASHDC PRIORITY
FCC WASHDC PRIORITY
INFO
CEA-01
SRPP-00
FRB-00
LAB-01
PA-00
TRSE-00
UNCLAS SECTION 01 OF 02 SINGAPORE 002504
SENSITIVE
WHITE HOUSE FOR IRA MAGAZINER
USDOC FOR NTIA/STEINOUR
FCC FOR KENNARD, FITZGERALD, AND WU
STATE ALSO FOR EB/CIP AND EAP/ANP
STATE PASS USTR FOR CORBETT
GENEVA PASS USTR
E.O. 12958: N/A
TAGS: ECPS, ETRD, APECO, USTR, AU
SUBJECT: BILAT MEETING WITH AUSTRALIA AT APEC TELMIN .3
SINGAPORE
01 OF 02·
2504
SENSITIVE BUT UNCLASSIFIED - PLEASE PROTECT ACCORDINGLY
1. SUMMARY: DURING THE U.S.-AUSTRALIA BILAT MEETING AT APEC
TELMIN 3, THE U.S. BRIEFED AUSTRALIA ON INTERNET ISSUES INCLUDING
DOMAIN'NAME SYSTEM REFORM, PRIVACY, AND TAXATION. NOTABLY,
AUSTRALIAN DELEGATES SAID THAT THEY HAD ALREADY SEEN A DOV.'NTURN
IN STORE SALES OF COMPACT DISCS AND WORRIED ABOUT THE FISCAL
IMPACT OF THE GROWTH OF (UNTAXED) ELECTRONIC TRANSACTIONS. END
SUMMARY.
2. DURING A JUNE 2 BILATERAL MEETING AT THE THIRD APEC
TELEcOMMUNICATIONS MINISTERIAL IN SINGAPORE, COMMUNICATIONS
MINISTER RICHARD ALSTON SHOWED INTEREST IN U.S. VIEWS ON PRIVACY
AND TAXATION ON.THE INTERNET AS WELL AS DOMAIN NAME SYSTEM
REFORM. THE MINISTER ASKED WHETHER THE U.S. PLANNED ANY NEW
JOINT STATEMENTS ON CYBERSPACE. AMBASSADOR VONYA MCCANN
. EXPRESSED• GENERAL INTEREST IN SIGNING MORE JOINT. STATEMENTS ON E-
,<: •''·· .
·.i,:
"'•',•
~g:~~A~ s\,7';:;.,0~Ef'!~+~~i<$%~~,~~ BE. ,:~~~·-1~{~~~C.~~f~~:i.~~·,:WITH
3 .. • .COMMERCE ASSISTANT>SECRETARY -IRVING iNFORMEb'iTHi~USTfuiAN
DELEGii.TES OF. THE.·UPCOMING :.ISSUANCE cir··THE 'FEDERAL TRADE i~);;.l _:
ON THE INTERNET, NOTING
SECTOR HAS,SHOWN AN
HOPED
°
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THE NEED FOR BETTER PROTECTION OF CONSUMERS' PRIVACY.
4. MINISTER ALSTON ASKED ABOUT TH.E U.S. APPROACH TO PROTECTING
PRIVACY AND WONDERED WHETHER THE EU WOULD ACCEPT AN INDUSTRY CODE
OF CONDUCT.
NOTING THAT THE EU .RECENTLY BEGAN MITIGATING ITS
COMMENTS; IRVING SAID THAT HE WAS.OPTIMISTIC ABOUT STRIKING
COMPROMISE WITH THE EU AND THOUGHT THERE WOULD BE NO STOPPAGE IN
DATA FLOWS.
MOREOVER, HE. BELIEVED.THERE WERE INITIAL SIGNS OF
COOPERATION IN PRIVATE SECTOR. THE PRIVACY ISSUE, HE SAID,
STRIKES ACROSS E-COM!4ERCE TO INCLUDE ALL SORTS OF DATA .
TRANS!4ISSIONS CARRYING PERSONAL INFORMATION.
5. THE MINISTER ASKED HOW THE U.S. P~~ED TO IMPLEMENT A CODE
OF CONDUCT THAT WOULD KEEP BUSINESSES FROM FALLING THROUGH
CRACKS, NOTING THAT BIG FIRMS WOULD COME ON BOARD BUT THERE WOULD
ALWAYS BE FLY-BY-NIGHTS WHO FLOUT THE RULES. AMBASSADOR MCCANN
SAID THERE WAS NO NEED FOR LEGISLATION BECAUSE MARKET FORCES
WOULD FORCE MOST BUSINESSES TO COMPLY·. ASST. SECRETARY IRVING
EXPRESSED HOPE THAT THE THREAT OF LEGISLATION, RATHER THAN ACTUAL
LEGISLATION, WOULD BE EFFECTIVE IN MOTIVATING THE PRIVATE SECTOR
TO ADDRESS THE ISSUE.
6.
ON THE ISSUE OF DOMAIN NAME SYSTEM REFORM, ASST. SECRETARY
IRVING SAID THAT THE REFORM PACKAGE IS NEAR COMPLETION. HE NOTED
THAT MUCH OF THE FEEDBACK RECEIVED ON DOMAIN NAME SYSTEM REFORM,
INCLUDING THAT FROM AUSTRALIA, HAD BEEN INCORPORATED INTO THE
FINAL.PRODUCT.
7.
IN THE AREA OF TAXATION, THE MINISTER SAID THAT AUSTRALIA HAD
ALREADY SEEN A DOWNTURN IN THE SALE OF CD'S, WHICH APPEARED TO BE
LINKED TO THE'RISE OF ELECTRONIC COMMERCE. HE EXPRESSED CONCERN
ABOUT THE IMPLICATIONS OFA LOSS OF TAX REVENUE DUE TO ON-LINE
SAL};)S. AMBASSADOR MCCANN SAID THAT THE TREASURY DEPARTMENT WAS
W.ORKING ON ISSUES OF TAXATION AND NOTED THAT THE U, S. STATES AND
MUNICIPALITIES ARE ALSO VERY CONCE~ED ABOUT THE POTENTIAL LOSS .
IN SALES TAX REVENUE.
8. ON A WORRYING NOTE, MINISTER ALSTON EXPRESSED CURIOSITY ABOUT
CONTENT AND THE EFFECTIVENESS AND COST OF FILTERING SYSTEMS. THE
MINISTER SAID HE WOULD BE SEEKING MORE INFORMATION ON THIS TOPIC,
IN PART BECAUSE OF HIS -IMPRESSION THAT PROXIES DID LITTLE TO SLOW
INTERNET SERVICE IN SINGAPORE.
9. THE AUSTRALIAN DELEGATION WAS LED BY MINISTER FOR
COMMUNICATIONS, THE INFORMATION ECONOMY, AND THE ARTS RICHARD
ALSTON AND INCLUDED DEPARTMENT OF COMMUNICATIONS AND THE ARTS
(DOCA) SECRETARY NEVILLE STEPHENS AND DOCA TELECOMMUNICATIONS
INDUSTRY DIVISION FIRST ASSISTANT SECRETARY .FAY HOLTHUYZEN.
10..
USDEL WAS LED BY AMBASSADOR VONYA MCCANN AND INCLUDED·
SINGAPORE
02 OF 02
2504
COMMERCE ASSISTANT SECRETARY LARRY IRVING, FCC OFFICIALS ARI
FITZGERALD AND IRENE WU, USTR OFFICIAL.BILL CORBETT, AND ECONOFF
(NOTETAKER) ..
11.
THIS CABLE WAS CLEARED BY THE MEMBERS OF THE U.S.
DELEGATION.
. :<··-~·- ·,
PHOTOCOP:Y ;.
·' ·. _:·:::·.-i···:':· ..
CLit')ITON'·' . ·, .. :·''
LIBRARY·
:
,. :·
�06/08/98
16:26
'0'202 647 0158
EB/CIP RM2533A
UNCLASSIFIED
Printed By: Edward M. Malloy
:ACTION CIP-00.
ACDA-08 ACDE-00 AGRE-00 AID-00
COR-01
CIAE-00 CTME-00 DINT-DO DODE-00
CEA-01
EXME-00 EUR-01
EB-00
SRPP-00 EAP-01
TEDE-00 INR-00
IM-01
H-01
FRB-00
NSAE-00 NSCE-00
ADS-00
LAB-01
L-01
PRs.:.oo
CI0-00
SP-00
OPIC-01 PA-00
G-00
TRSE-00 USIE-00 DRL-04
STR-00
/029W.
------------------4672AS 0807192 /38
p 0805552 JUN 98
.FM AMEMBASSY SINGAPORE
TO SECSTATE WASHDC PRIORITY 1940
INFO. APEC COLLECTIVE PRIORITY
USMISSION GENEVA PRIORITY
USDOC WASHDC PRIORITY
FCC WASHDC PRIORITY
INFO
LOG-00
AMAD-01
DOTE-DO
UTED-00
ITC-01
OMB-01
SS-00
SAS-00
AIT-03
ITCE-00
E-00
I0-00
OIC-02
SS0-00
NFAT-.00
UNCLAS SECTION 01 OF 02 SINGAPORE 002503
SENSITIVE
C 0 R R E C T E D ~ 0 P Y - {TEXT IN PARA i)
USDOC FOR NTIA/STEINOUR
VSDOC FOR 4430/MAC/OA/KBOYD
FCC FOR KENNARD, FITZGERALD, AND WU
GENEVA PASS USTR
STATE ALSO FOR EB/CIP AND EAP/PIMBS
STATE PASS USTR FOR CORBETT
E.O. 12958: N/A
TAGS: ECPS,- ETRD, BEXP, APECO, USTR, SN
SUBJECT: BILAT MEETING WITH SINGAPORE AT APEC TELMIN 3
SINGAPORE
01 OF 02
2503
SENSITIVE BUT UNCLASSIFIED - PLEASE PROTECT ACCORDINGLY
1. SUMMARY: DURING A 45-MINUTE BILATERAL MEETING WITH THE
SINGAPORE COMMUNICATIONS MINISTER MAH BOW TAN, USDEL EXPRESSED
CONCERN'ABOUT SINGAPORE'S "SLOW" PROGRESS IN OPENING ITS TELECOMS
MARKET AND URGED SINGAPORE TO REPLACE ITS "MANAGED COMPETITION''
MODEL OF TELECOMS REGULATION WITH AN "OPEN MARKET" MODEL.
SINGAPORE COMMUNICATIONS MINISTER MAH DID NOT WAVER ON THE ISSUE
o"F COMPETITION AND URGED THE U.S. TO WORK TOWARDS A MULTILATERAL
SOLUTION ON INTERNET BANDWIDTH FINANCING. END SUMMARY.
2.
DURING A JUNE 2'BILATERAL MEETING AT THE THIRD APEC
s
URGED SINGAPOR TO APPLY AN "OP~"
PHILOSOPHY IN LIBERALIZING ITS TELECOMS SECT~REBY ALLOWING
l'!ORE COM"}ETITORS INTO THE MARKET. ADDITIONALLY, AMBASSADOR
'MCCANN DELIVERED A COPY OF A LETTER FROM U.S. TRADE
.
·.
REPRESENTATIVE CHARLENE BARSHEFSKY TO SINGAPORE DEPUTY PRIME
>::};MINISTER LEE HSIEN LOONG, WHICH REINFORCED THE. USDEL' S MESSAGE~: '::· i,
~.~:=: ·:. .;_f·~~~~;;:.::~;\ :; •.:~;·\t.·~·>· ~ ·.;>··· ··:, '~.,;·.~~~~,·~~:.~,.:/:::_. .~.}·: ·:~i:. >: ;i. :~.::~!·~.:·;· .:. ,,.: ·~ ...... ·:· ·' .
.
·~:. . .·:<~ :}~~;.~1:·~\~:;l,t/~.~-?:~'::.·~j,;·~ . :.: . :;:··.~:. ·~·::.~:~:-M)A~·~.:~ ·.:
·:o;••> <:f·>'j ..... SINGAPORE ·COMMUNI CATIONS MINISTER MAH BOW. TA1J TOLD :).MsAsSADOR
'''-:·'MCCANN THAT SINGAPORE DID NOT BELIEVE THAT A "FREE-FOR-ALL" WOULD
(·,;:' :)::BE .IN THE BEST. INTEREST OF EITHER SINGAPORE'S .CONSUMER OR
)if~~.l~:\p)_~~;o.~:~o~~~L~~~~~E~E~~~~g ·A·. -~~R:oi~~Ei:~z~~N~~~~~~M~··
.
;
~
;;
·,,··
·,
•'·
. I
UNCLASSIFIED
1
'.',,. ..
l4l 016/027
�06/08/98
16:27
'0'202 647 0158
EB/CIP RM2533A
@ 01i 1027
UNCLASSIFIED
Printed By: Edward M.
~1alloy
MARKET, INCLUDING THE LICENSING IN APRIL OF ONE ADDITIONAL MOBILE
PROVIDER AND ONE ADDITIONAL BASIC TELECOMS PROVIDER. WITH THE
GOAL OF ENHANCING SINGAPORE'S TELECOMS INFRASTRUCTURE, MAH
EMPHASIZED THAT SINGAPORE HAD FOCUSED ON ATTRACTING FACILITIESBASED OPERAWRS !'ATHRR THAN RESE;Li:ERS iN THE l"lUsT RECENT 1END€R
FOR NEW-BASIC LICENSES.
4. REGARDING THE RECENT TENDER FOR BASIC TELECOMS LICENSES (IN
WHICH A CONSORTIA I~~OLVING THE U.S. FIRM WORLDCOM FAILED TO.
OBTAIN A LICENSE) , MAH SAID THE GOVERNMENT HAD ALWAYS SAID IT
WOULD ISSUE "UP TO T\--10" BASIC TELECOMS LICENSES. EACH. BIDDER WAS
ASKED TO SUBMIT BIDS BASED ON TWO SCENARIOS: 1) A MARKET WITH TWO
FIXED-LINE COMPETITORS AND 2) A MARKET WITH THREE FIXED-LINE
COMPETITORS. MAH SAID THE GOVERNMENT HAD.HOPED TO ISSUE TWO
LICENSES. HOWEVER, WHEN THE EVALUATION COMMITTEE .REVIEWED THE
BIDS, IT FOUND THAT SOME BIDDERS PLANNED TO INVEST CONSIDERABLY
LESS IN INFRASTRUCTURE IN THE SECOND SCENARIO THAN IN THE FIRST.
BASED ON THESE. PROPOSALS, THE EVALUATION COMMITTEE CQNCLUPED~HAT
THE MARKET WOULD NOT BEAR TW~W COMPETITORS AT THE LEUBL 0*>
I~li:TR,P!;;TQ:OIIi: UP'ESTMENT EXPECTJill.
THEREFORE, THE COMMITTEE
RECO~WENDED T~~T ONLY ONE OPERATOR BE GIVEN A LICENSE.
5. AMBASSADOR MCCANN TOLD THE MINISTER THAT U.S. TELECOMS FIRMS,
ESPECIALLY WORLDCOM, WERE EAGER TO GET INTO THE .siNGAPORE MARKET.
SHE ARGUED THAT THESE FIRMS RISKED THEIR 0~~ CAPITAL AND SHOULD
BE ALLOWED TO COMPETE. THE MINISTER TOLD AMBASSADOR MCCANN THAT
HE HAD A PHILOSOPHICAL DIFFERENCE ON THIS POINT: HE SAID HE SAW
NO BENEFIT TO CONSUMERS OR PROVIDERS OF TELECOMS SERVICES IN
OPENING THE SINGAPORE MARKET RAPIDLY AND COMPLETELY BECAUSE IT
WOULD RESULT IN LOWER INFRASTRUCTURE INVESTMENTS AND LEAD TO
HIGHER TARIFFS AS BIG COMPETITORS KNOCK SMALLER FIRMS OUT OF
CONTENTION. HOWEVER, ADMITTING THAT DUOPOLY WAS A DANGEROUS
SITU.ATION, THE MINISTER REITERATED .-THE GOVERNMENT'S COMMITMENT _TO
ALLOW MORE FIRMS TO ENTER THE MARKET BY 2002. MINISTER MAH SAID
THAT SINGAPORE HAD NOT RENEGED ON ITS WTd COMMITMENTS AND WOULD
NOT RETREAT FROM THESE COMMITMENTS. THE QUESTION, HE SAID, IS
NOT THE END POINT BUT THE STAGING.
6. FINAL_LY, CONCERNING THE POSSIBILITY OF U.S. FIRMS (LIKE
WORLDCOM) ENTERING THE SINGAPORE MARKET SOONER THAN 2002,.THE
MINISTER SAID THAT SINGAPORE WOULD WELCOME CREAIIVE PROPOSALS FOB
SERVICES THAT FALL OU'!'S"IDE THE SCOPE OF THE BASIC LICENSES.. HE
Neft:V 1HA1' IHE BASIC TELECOMS LICENSES WERE LIMITED IN SC~ AND
LEFT ROOM FOR OTHER SERVICE PROVIDERS TO OFFER SPECIALIZED
TELECOMS SERVICES .
. 7. AS THE MEETING DREW TO A CLOSE, MINISTER MAH RAISED THE
_ISSUES OF INTERNET BANDWIDTH FINANCING AND HUMAN RESOURCE
DEVELOPMENT. HE SOUGHT SUPPORT FOR A SINGAPORE PROPOSAL TO THE
APEc' TELECOMMUNICATIONS WORKING GROUP FOR A STUDY OF INTERNET
FINANCING ISSUES AND HANDED THE U.S. DELEGATION A WRITTEN
PROPOSAL FOR CONSIDERATION. HE ALSO NOTED THE NEED TO MAKE
SINGAPORE
02 OF 02
2503
BETTER USE OF THE RESOURCES CURRENTLY ALLOCATED TO THE
DEVELOPMENT OF HUMAN RESOURCES. IN THE TELECOMS SECTOR.
8. THE SINGAPORE DELEGATION WAS LED BY COMMUNICATIONS MINISTER
MAH BOW TAN AND INCLUDED TELECOMMUNICATIONS AUTHORITY OF
SINGAPORE (TAS) ASSISTANT DIRECTOR FOR INTERNATIONAL AFFAIRS
VALERIE D'COSTA, TAS DIRECTOR FOR POLICY NG CHER KENG, AND
MINISTRY OF COMMUNICATIONS ASSISTANT_ DIRECTOR FOR .LAND TR.AN:>J,~CIRT
,.,;.·:·
COLIN LIM.
..'.··
9. THE USDEL WAS LED-BY AMBASSADOR VONYA MCCANN AND INCLUDED
COMMERCE ASSISTANT SECRETARY LARRY IRVING, FCC OFFICIALS
FITZGERALD AND IRENE WU, AND USTR OFFICIAL BILL
UNCLASSIFIED
2
. ·.·'
�06/08/98
·1;
16:28
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@ 018/027
EB/CIP RM2533A
,_,.
UNCLASSIFIED
Printed By: Edward M. Malloy
WAS ACCOMPANIED BY CHARGE D'AFFAIRES AND ECONOFF FROM THE
EMBASSY.
9.
THIS CABLE WAS CLEARED BY THE ~1EMBERS OF THE U.S. DELEGATION ..
SKODON
.··::
.
~
...
,. ··~··
PHOTOCQpy······
�Withdrawal/Redaction Sheet.
Clinton Library
DOCUMENT NO.
AND TYPE
DATE
SUBJECTffiTLE
RESTRICTION
001. cable
From AmEmbassy Paris re: E-Commerce: French Views on Proposed
International Convention on Electronic Transactions (2 pages)
06117/98
P5
002. cable
From AmEmbassy Madrid re: Spain: First Bilateral
Telecommunications Dialogue, May (partial cable) (4 pages)
06119/98
, P5
COLLECTION:
Domestic Policy Council
Ira Magaziner (Electronic Commerce)
ONBox Number: 13116
FOLDER TITLE:
Cables
Rhonda Wilson
rw112
RESTRICTION CODES
Presidential Records Act- [44 U.S.C. 2204(a)]
:p1
P2
P3
P4
National Security Classified Information [(a)(l) of the PRA]
Relating to the appointment to Federal office [(a)(2) of the PRA]
Release would violate a Federal statute [(a)(3) of the PRA]
Release would disclose trade secrets or confidential commercial or
financial information [(a)(4) of the PRA]
PS Release would disclose confidential advise between the President
and his advisors, or between such advisors [a)(S) of the PRA]
P6 Release would constitute a clearly unwarranted invasion of
personal privacy [(a)(6) of the PRA]
C. Closed in accordance with_ restrictions contained in donor's deed
of gift.
PRM. Personal record misfile defined in accordance with 44 U.S.C.
2201(3).
, RR. Document wiD be reviewed upon request.
Freedom of Information Act- [5 U.S.C. 552(b)]
b(l) National security classified information [(b)(l) of the FOIA]
b(2) Release would disclose internal personnel rules and practices of
an agency [(bJ(2) of the FOIA]
b(3) Release would violate a Federal statute [(b)(3) of the FOIA] ·
b(4) Release would disclose trade secrets or confidential or financial
information [(b)(4) of the FOIA]
b(6) Release would constitute a clearly unwarranted invasion of
personal privacy [(b)(6) of the FOIA]
b(7) Release would disclose information compiled for law enforcement
purposes [(b)(7) of the FOIA]
b(8) Release would disclose information concerning the regulation of
financial institutions [(b)(8) of the FOIA]
· - b(9) Release would disclose geological or geophysical information
concerning wells [(b)(9) of the FOIA]
CLINTON LIBRARY PHOTOCOPY
�a
UNCLASSIFIED
PRIOHlTY
WHITE HOUSE SITUATION ROOM
,)·
'
PAGE 01 OF 02
PRT: MAGAZINER
SIT: NSC
.
.
.
·-----------------------------------------------------------------------------------. <PREC> PRIORITY
<CLAS> UNCLASSIFIED ·<DTG> 171618Z JUN 98
. FM AMEMBASSY PARIS
TORUEHC/SECSTATE WASHDC·PRIORITY 6842
INFO RUEHXQ/ALL EUROPEAN UNION POST COLLECTIVE
RUEHKO/AMEMBASSY TOKYO 7182
RUEHGP/AMEMBASSY SINGAPORE 4266
RUCPDOC/USDOC WASHDC
RHEHAAA/WHITE HOUSE WASHDC
UNCLAS PARIS 013620
STATE
STATE
. USDOC
USDOC
WHITE
PASS USTR FOR.ABELSON
FOR EB/CIP, EB/TPP AND EUR/ERA
FOR NTIA - BECKY BURR
FOR 1000/ITA/UNDERSECRETARY AARON AND ANDY PINS
HOUSE FOR MAGAZINER
SENSITIVE BUT UNCLASSzFIED; PLEASE DO NOT POST TO THE INTERNET
E.O. 12958: N/A
TAGS: ECPS, EINT, ETRD, EUN, FR
SUBJECT: E-COMMERCE: FRENCH VIEWS ON PROPOSED.INTERNATIONAL ·
CONVENTION ON ELECTRONIC TRANSACTIONS
REF: A)
STATE 93859
B)
PARIS 10507 (NOTAL)
1.
(U) WE DELIVERED REF A TALKING POINTS AND DRAFT CONVENTION
UPONSCEIPT TOE-COMMERCE POLICY MAKERS IN THE PRIME MINISTER'S
OFFICE, THE FINANCE MINISTRY, AND THE FOREIGN MINISTRY . . AS NOTED
REF B, WE HAD ALREADY PASSED A NON-PAPER CONTAINING THE GIST OF THE
U.S. PROPOSAL TO ENCRYPTION CZAR MICHEL FERRIER, STATE SECRETARY
FOR INDUSTRY CHRISTIAN PIERRET, AND E-COMMERCE CZAR FRANCIS LORENTZ
DURING THE VISIT TO PARIS OF COMMERCE U/S AARON IN LATE APRIL.
REACTION TO THE U.S. NON-PAPER WAS GENERALLY FAVORABLE DURING U/S.
AARON Is VISIT. '
, 2.
(U) THE GOF SUPPORTS DISCUSSION OF DIGITAL SIGNATURE's IN.!t.\~.-~>•>••'·
:,,; UNCITRAL, BUT HAS :NoT,·,YET :FINALIZED ITS POSITION FOR THE LATE •:·JUNE:<X• .•· ·. ·
;.)~':'MEETING OF :EXPERTS·.,:rN.NEW tyoRK;>;/ACCORDING TO FOREIGN MINISTRY·::{ti;'
., <.,~<:::.·
:~t;i·~·~~~TACTS ~· • \';:r.·•. :.• .: •. i· ·. ··•·· ·.r·;.:/_·:.::;'::t0.';",'_:',n;:~,;:1:~f~?:·~~r~~;l}#';:9\':_::·:,':•·
..•.
·,·.
· ~· <~t':');
·).,:.:,~.,.;.·.;_.,.
·.'
~{;;;j··~~·.:.·. (U) . " GOF ADMINISTRATIVE .LAW ,·JUDGE ISABELLE FALQUE- PIERROTI ' .• • y::::. _\:~\:.;
: fi@PROVIDED 'A ·• SUBSTANTIVE •REACTI()N.'TO. THE U.S. PROPOSAL ON JUNE\4 ;f~:-·l:•. ,.. ,}•:'' ~ ;}j.;•;.·
\<!FALQUE-PIERROTIN IS THE ·GOF'S''LEGAL EXPERT ON INTERNET ISSUES AND/·.>:· •' :"{:,·i·;LEADS. GOF NEGOTIATIONS WITH·: TI:I;E ·EU COMMISSION ON THE UPCOMING . <:_ :;)'i;· .
:<)DIGITAL SIGNATURES·.DIRECTIVE;;!;;•;,SHE··.,IS DRAFTING A REPORT ON 'LEGAL·;~"/:
i:1ft:,ISSUES RELATED TO -ELECTRON:tC.)COMMERCE, INCLUDING DIGITAL •.. -\·(,';):,,~.,r•··<.· ·.;: ·
'~~~-SIGNATURES •:/' WHICH ··.THE.· ADMINISTRATIVE LAW COURT ( CONSEIL D ETAT '
·:{':<
I
· 11~(;~:,':::
<,;, .. ,·.····.·
..
·. ·<>W·;,·:f'':t;-:!(:+;;iUNCLASSIFIED
1
.cuNro~~~~~k~ip ~9f6:boPY ·.
�.
----------------------------------~--------------------.
PRIORITY
UNCLASSIFIED
WHITE HOUSE SITUATION ROOM
PAGE 02 OF 02
·WILL SUBMIT TO THE JOSPIN GOVERNMENT IN JULY. THE REPORT WILL BE
MADE PUBLIC IN THE FALL AND FORM THE BASIS FOR GOF LEGISLATIVE
AND/OR REGULATORY INITIAT1:VES.
4.
(SBU) FALQUE-PIERROTIN MADE THE FOLLOWING POINTS:
AUTHENTICATION OF ELECTRONIC TRANSACTIONS IS PART OF A BROADER
PROBLEM OF CONSUMER PROTECTION ON-LINE.
(SHE ASKED FOR OUR OFFLINE VIEWS ON A POSSIBLE FRENCH PROPOSAL FOR AN INTERNATIONAL
AGREEMENT ONE-COMMERCE CONSUMER PROTECTION.)
-- ANY INTERNATIONAL CONVENTION ON ELECTRONIC TRANSACTIONS SHOULD
BE DESIGNED TO BE INTEROPERABLE WITH BOTH THE U.S. CONTRACTS-BASED
APPROACH AND THE EUROPEAN REGULATIONS-BASED APPROACH .
. -- THE INTERNATIONAL COMMUNITY SHOULD PURSUE AUTHENTICATION
SOLUTION$WHICH ARE TECHNOLOGY-NEUTRAL. THE DEFINITION OF VALID
AUTHENTICATION METHODS SHOULD BE BASED SOLELY ON FUNCTIONAL
CRITERIA, I.E. IDENTIFICATION OF THE SENDER, INTEGRITY OF THE
MESSAGE, AND NON-REPUDIATION.
ELECTRONIC CONTRACTS "SIGNED" BY
· VALID DIGITAL SIGNATURES SHOULD BE HAVE THE SAME LEGAL VALIDITY AS
HAND-SIGNED PAPER DOCUMENTS.
-- PARTIES TO ELECTRONIC CONTRACTS SHOULD BE FREE TO CHOOSE THEIR
OWN AUTHENTICATION METHODS; SUCH AGREEMENT AND/OR APPROVAL BY
CERTIFICATE AUTHORITIES SHOULD CONVEY THE ASSUMPTION OF LEGAL
VALIDITY; DISPUTES BETWEEN THE PARTIES CAN BE CONSIDERED ON A CASEBY-CASE BASIS BY APPROPRIATE JUDICIAL AUTHORITIES.
STATES SHOULD
NEGOTIATE MUTUAL RECOGNITION OF CERTIFICATE AUTHORITIES.
5.
(SBU) _FALQUE-PIERROTIN SAID-THE CURRENT DRAFT EU DIRECTIVE ON
DIGITAL SIGNATURES WAS "TOO RIGID" FOR FRANCE. SHE NOTED THAT .FEW
EU MEMBER STATES WERE FOLLOWING THE ISSUE CLOSELY; SHE EXPECTED
FRANCE WOULD PREVAIL IN ITS EFFORTS TO HAVE THE EU ENDORSE A MORE
FLEXIBLE APPROACH.
SHE WAS CRITICAL OF THE GERMAN APPROACH TO
DIGITAL SIGNATURES .
.
,
PARMLY
<"SECT>SECTION: 01 OF 01
<"SSN>3620
.
· <MSGID>.M3339091
.__ ._; __,,··
..·· ..: .. -··
UNCLASSIFIED
�.06/22/98
EB/CIP RM2533A
'5'202 647 0158
08:27
• 'l.
UNCLASSIFIED
Printed By: Jetfery E. Zinsmeister
ACTION IMMA-02
A-00
ACDA-08 ACDE-00 AGRE-00 AID-00
C0t·1E- DO CTI-.IE-00 DINT~ 00 DODE-00 DOTE-00
UTED-00 FRB-00
EXIM-01 E-00
EUR-01
LAB-01
ITC-01
TEDE-00 INR-00
IM-01
OPIC-01 PA-00
NSAE-00 NSCE-00 OMB-01
TRSE-00 USIE-00
STR-00
SS-00
SS0-00
/021W
------------------4BS65E 200223Z /69
R 191036Z JUN·9B
FM AMEMBASSY MADRID
TO SECSTATE WASHDC OBSS
INFO USDOC WASHDC
FCC WASHDC
DOJ WASHDC
ALL EUROPEAN UNION POST COLLECTIVE
INFO
LOG-00
CIAE-00
EB-00
IMMC-01
ADS-00
SP-00
SAS-00
CEA-01
SRPP-00
H-01
L-01
PRS-00
G-00
UNCLAS SECTION 01 OF OB MADRID 006278.
SENSITIVE
EB/CIP FOR AMB. MCCANN AND E.MALLOY
FCC FOR INTERNATIONAL BUREAU/HAAN, KEENEY AND MCBRIDE
US~R
US DOC
US DOC
US DOC
US DOC
FOR ABELSON, CORBETT AND DEMARCELLUS
FOR
FOR
FOR
FOR
'4220/IEP/OWE/SED/ACORRO
3133/USFCS/OIO/NNEGRETTI
6320/TD/TAI/OT/MOTTUR AND DENNY-BROWN
NTIA/BURR
USDOJ FOR C.WILLNER
E.O. 12958.: N/A
TAGS: ECPS, ETRD, ECON, .EUN, INT, SP
SUBJECT: SPAIN: FIRST BILATERAL TgLECOMMUNICATIONS DIALOGUE, MAY
11-13, 1998
REFS:
MADRID
A) MADRID 4649
C) MADRID 4103
01 OF OB
B) MADRID 4553
D). MADRID 2790
6278.
ENTIRE CABLE SENSITIVE BUT UNCLASSIFIED.
USE ONLY.
PLEASE TREAT ACCORD~NGLY.
INTENDED FOR USG
1. SUMMARY. DURING THE FIRST ROUND OF BILATERAL TELECOM
TALKS, HELD MAY 12-13 IN MADRID, U.S. AND SPANlSH
DELEGATIONS PROVIDED OVERVIEWS OF THEIR TELECOMMUNICATIONS
MARKETS, DISCUSSED CONVERGENCE AND INFORMATION ISSUES IECOMMERCE, DOMAIN NAME. REFORM, PRIVACY) AND COMPARED
POSITIONS ON INTERNATIONAL ISSUES (ITO, WRC, INTELSAT AND
INMARSAT}. •WE BELIEVE THIS INITIAL MEETING HAS SUCCESSFULLY
PREP~ED THE GROUNDWORK TO DEEPEN TIES BETWEEN BOTH · ,
ON TELECOMMUNICATIONS AND INFORMATION POLICY
.
.THIS STRONG START TO ENSURE
. 's $20
l4l 006/009
�.06122198
..
08:28
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EB/CIP RM2533A
14] 007/009
UNCLASSIFIED.
Printed By: Jeffery E. Zinsmeister
THIS APPROACH, THE USG HAS BEEN VIGILANT TO FACILITATE
COMPETITION IN FOUR AREAS: 1) ACCESS TO DOMINANT OPERATORS'
OPERATING AND BILLING SYSTEMS ON NON-DISCRIMINATORY TERMS;
2) PREVENTION OF ONGOING DISCRIMINATION (VIA PERFORMANCE
.
.
MADRID
04 OF 08
6278
MEASUREMENTS); 3) ESTABLISHMENT. OF FORWARD-LOOKING PRICING
FOR UNBUNDLED SERVICES; AND 4) REVIEWING HOW NEW OPERATORS
CAN BUNDLE SERVICES TO PROVIDE NEW SERVICES.
lB. SPANDEL ASKED FOR CLARIFICATION ON WHETHER A NEW
ENTRANT FIRST HAD TO CONSULT WITH THE FCC OR STATE PUC TO
CONNECT TO A LOCAL LOOP. USDEL REPLIED THE NEW ENTRANT
WOULD BE ENTITLED TO REQUEST ACCESS USING THE TERMS OF AN
EXISTING AGREEMENT OR COULD INTERCONNECT VIA (PUC-APPROVED)
STATEMENTS OF GENERAL TERMS. AND CONDITIONS, WHICH ARE
ANALOGOUS TO INTERCONNECTION REFERENCE RATES.
19. REGARDING INTERNATIONAL STRATEGIC ALLIANCES, WILLNER
SAID THE COLLAPSE AND CREATION OF .MANY OF THE RECENT
STRATEGIC· ALLIANCES. HAS NOT BEEN DRIVEN BY REGULATORY
CONSTRAINTS SO MUCH AS BY CHANGING STRATEGIES RESPONDING TO
SHIFTING MARKEd CONDITIONS. WITH RESPECT TO INTERNATIONAL
.ACQUISITIONS, USDEL ACKNOWLEDGED SPAIN (TELEFONICA)'S HUGE
PRESENCE IN LATIN AMERICA, INCLUDING ARGENTINA, CHILE, PERU
AND VENEZUELA. USDEL ALSO NOTED SOME CONTINUING PROBLEMS
GAINING ACCESS TO INTERNATIONAL CABLES (VIA CABLE LANDING
POINTS} AND BACKHAUL.
CONVERGENCE AND INFORMATION ISSUES
20. ELECTRONIC COMMERCE: NTIA'S BECKY BURR REFERRED TO THE
RECENTLY ISSUED REPORT ON THE DIGITAL ECONOMY, WHICH
ESTIMATED THAT INFORMATION TECHNOLOGY HAS GENERATED ABOUT 8\
OF U.S. GOP AND HAS ALSO HAD A SIGNIFICANT INFLATIONDAMPENING EFFECT. IN THE PAST YEAR. (NOTE: EMBASSY WILL
REITERATE REPORT'S AVAILABILITY AT WWW.ECOMMERCE.GOV, AND
PASS COPIES TO RELEVANT GOS OFFICIALS.) BURR ALSO NOTED THE
GUIDING PRINCIPLES FOR OUR APPROACH TO E-COMMERCE ISSUES,
WHICH ARE DESCRIBED IN DETAIL IN .THE 7/97. "FRAMEWORK ON
GLOBAL ELECTRONIC COMMERCE." SPANDEL AGREED WITH ALMOST ALL
OF THE USG POSITIONS DESCRIBED.AND CITED THE EU COMMON.
POSITION IN ITS INTERNATIONAL. LETTER ON E-COMMERCE. NOTING
THERE ARE A WIDE RANGE OF FORA WORKING ON E-COMMERCEISSUES,
SPANDEL SAID PERHAPS THERE SHOULD BE A MORE COHERENT,
UNIFIED APPROACH ON E-COMMERCE ISSUES TO AVOID CONTRADICTORY
POSITIONS.
21. DuTY-FREE CYBERSPACE: SPANDEL AGREED WE SHOULD
MAINTAIN NEUTRALITY AND NON-DISCRIMINATION PRINCIPLES AND
AVOID CREATING NEW DUTIES DUE TO NEW TECHNOLOGIES. IN REPLY
TO FINANCE MINISTRY COMMENTS QUES,TIONING WHETHER. WE SHOULD
CONSIDER ALL E-COMMERCE TO BE SERVICES, BURR SAID IT WAS
MORE USEFUL TO CONSIDER E-COMMERCE AS ELECTRONIC
TRANSMISSIONS (LIKE FAX OR E-MAIL MESSAGES) WHICH ARE NOT
. CURRENTLY SUBJECT TO .ANY DUTIES..
22. DOMAIN NAME REFORM: BURR DESCRIBED THE EVOLUTION OF USG
EFFORTS ·TO REFORM THE DOMAIN NAME SYSTEM, STRESSING OUR
EMPHASIS ON PASSING ITS MANAGEMENT ON.TO.A NON-GOVERNMENTAL
ENTITY, INTRODUCING COMPETITIONif:'MAINTAINING A PREDICTABLE ·• . : ,,
, - '· ,:,;,
'':KL.·~~:~::~;:"~~r~~~!~1i=!iS~t!ll~JJ't'~~¥:~~%
SOON ISSUE A REVISED PAPER>I:N'''i'HE'NEXT FEW WEEKSJ''.;BiJRR''ALSO .,, ' .
. .
PARTICIPATION ..·
·SPANISH ...-;: . .·:·.{
.
.ALTHOUGH ...
.
.
.
. .
.. MAY
BE PUBLISHED AS
·.· -.. :
�06/22/98
~202
08:29
hB/ClP 1<filk53JA
647 0158
lf!:j
.,.
UNCLASSIFIED
Printed By: Jeffery E. Zinsmeister
WORK TOGETHER TO DEVELOP THE RAISED PLAN FURTHER. SPANDEL
LOOKED FORWARD TO SEEING THE MODIFIED PROPOSAL.AND.ALSO
NOTED IT HAD EARLIER PASSED COMMENTS TO THE USG (REF A) .
PRIVACY: BURR SAID WE ALL AGREE ON THE NEED FOR FAIR
INFORMATION PRACTICES AND BELIEVE OUR GOALS AND THOSE OF THE
EU PRIVACY DIRECTIVE ARE FUNDAMENTALLY THE SAME. BURR ADDED
WE ARE CONSULTING CLOSELY WITH DG-XV IN BRUSSELS ON
.DEVELOPING EFFECTIVE SELFCREGULATION. SPANDEL AGREED WE
NEED CONTINUITY-IN DATA FLOWS AND URGED WE WORK TOGETHER TO
PROMOTE A CODE OF.CONDUCT IN THIS AREA AS IN THE CASE OF THE
INTERNET.
23.
INTERCONNECTION
MADRID
OS OF 08
6278
24.
SPANDEL EXPRESSED GREAT INTEREST IN HEARING ABOUT THE
U.S. INTERCONNECTION REGIME SINCE THE GOS IS CURRENTLY
REVISING ITS DRAFT INTERCONNECTION REGULATIONS AND IS
INTERESTED IN PROVIDING A REGIME WHICH PROMOTES BOTH
COMPETITION AND INFRASTRUCTURE DEVELOPMENT. SPANDEL ALSO
SAID THE GOS MAY SOON CONSIDER NEW LEGISLATION-REGULATING
PARTICIPATION IN THE LOCAL LOOP.
25.
FCC'S KEENEY SAID THAT, IN THE- 1980S, THE FCC FIRST
DEVELOPED ACCESS CHARGES TO SPUR COMPETITION IN LONG
DISTANCE. NEXT, AS PART OF IMPLEMENTING THE 1996 ACT, THE
FCC ·ESTABLISHED THE INTERCONNECTION REGIME TO TRY TO SPUR
LOCAL.COMPETITION. UNDER U.S. LAW, INTERCONNECTION CHARGES
ARE APPLICABLE TO THREE DIFFEREN~. TYPES OF _CARRIERS: ALL
TELECOM CARRIERS; LOCAL EXCHANGE CARRIERS; AND INCUMBENT
LOCAL EXCHANGE CARRIERS.: ALSO, THERE ARE THREE WAYS FOR A
COMPANY TO ENTER THE U.S. MARKET: FACILITIES-BASED NETWORK;
USE OF UNBUNDLED NETWORK ELEMENTS; AND RESALE. KEENEY
STRESSED rHE RESALE OPTION WAS A GOOD WAY. FOR NEW ENTRANTS
TO GET STARTED, CITING.THE EXAMPLE OF MCI. SINCE THE FCC
AND STATE PUCS CANNOT ARBITRATE EVERY INTERCONNECTION '
NEGOTIATION, IT HAS ESTABLISHED GENERAL GUIDELINES AND
REQUIRED PARTIES TO NEGOTIATE.IN GOOD FAITH. KEENEY
.
STRESSED THE ROLE OF THE REGULATOR SHOULD NOT BE TO MICROMANAGE, BUT TO MAINTAIN A PRESENCE, ESPECIALLY AT THE
OUTSET, SINCE THERE IS USUALLY UNEQUAL BARGAINING POWER
BETWEEN THE INCUMBENT AND NEW OPERATORS AT THAT TIME. THUS
FAR, U.S. CABLE COMPANIES HAVE NOT RUSHED IN TO PROVIDE
COMPETING LOCAL TELEPHONE SERVICE BECAUSE THEIR EXISTING
NETWORKS ARE NOT DESIGNED FOR TELEPHONY (THEY ARE ONE-WAY
NETWORKS) AND IT IS TOUGH TO GO UP AGAINST THE LOCAL TELECOM
PROVIDER. SPANDEL SAID SPAIN-CURRENTLY HAS AN ASYMMETRICAL
MODEL, WHICH HEAVILY REGULATES INCUMBENT TELEFONICA. AS A
RESULT, TELEFONICA HAS NO INTEREST IN BARGAINING WITH NEW
OPERATORS (NOTE: GOS HOPES THE NEW REGULATIONS WILL CHANGE
.THIS SCENARIO.)
UNIVERSAL SERVICE
--------------~--
26. USDEL EXPLAINED HOW THE 1996 TELECOM. ACT INTRODUCED THE
CONCEPT THAT HIGH QUALITY. TELEPHONY SERVICE SHOULD BE MADE
AVAILABLE _TO ALL AT REASONABLE, <AFFORDABLE RATES. ':l'HB FCC
· ; :. HAs. ADDED THAT SUCH SERVICE SHOULD. BE COMPETITIVELY NEUTRAL .
\-<\,:::; (I~ E }.','SHOULD NOT FAVOR AN¥' !PARTICtitAR TECHNOLOGY) ;,.;{INTERNET :,···
:~.{<;>A{!,~:. PROviDERS ARE :.NOT .cURRENTLY ::.CoNstnEREn .. To .-a·s ·TELEcOM ··sERVIcE:.<;··:·<./· . , .
;:;>:~~,:··E~~~;.~· :~~~~=~EF~~.~~t~~~~~~~JO,T~·I· ~.--s~-. .- t.: ·_: -_:.·,-:· ~.- F.;:i· . ,;.·_,: .,- · ~.:_- ;.· ·_.'~ i· .·,_.' ~.;(.~rt;· :
. .
.
..
A_ :f))i/;{;;:::~_)~;:/;F~:~~·· ·.:>.:.?~'·;&'(·~l,i·.t;0(>'
.. ..
f.(f,'?~_>··~;_;:;~zS~~~~~: ~~j<ED
· _.· .· ~<~>-~--~~~~?:i·::f?_;·:~.';.
._••.·.·..•..•._•. ..
;·. .·' • : .•.
I "'/''
-..
SETS UNIVERSAL SERVICE RATES
.
.<·
::'
SDEL.· ''''''~'.'· .
--
.··:·:~:. :... ,. :.
CL\1\\TQN UBR/\RY
UUI)/UU~
�06/22/98
os:zg
"a'202 t:i47
f.r
015~
UNCLASSIF.IED
Printed By: Jeffery E. Zinsmeister
REPLIED IT IS A JOINT DECISION BY STATE COMMISSIONS AND THE
FCC.
SPANDEL NOTED THEY ARE CURRENTLY WORKING ON
REGULATIONS FOR SPAIN, AND THE EU WILL REVIEW THIS ISSUE
NEXT YEAR, POSSIBLY INCLUDING INTERNET ACCESS FOR LIBRARIES,
HOSPITALS AND SCHOOLS.
AS PART OF ITS UNIVERSAL SERVICE
PROVISIONS, THE GOS MAY ESTABLISH SPECIAL RATES FOR
EDUCATION, HEALTH AND CULTURAL OBJECTIVES.
SPANDEL NOTED
THEY HAD TO BE ESPECIALLY VIGILANT IN DRAFTING EQUITABLE
RULES DUE TO CONCERNS THAT UNIVERSAL SERVICE, IF TOO
ONEROUS, COULD BE VIEWED AS A BARRIER TO ENTRY.
28. ALTHOUGH WE HAVE SOME DIFFERENT ISSUES DUE TO OUR
JURISDICTIONAL CHALLENGES, USDEL OFFERED TO PROVIDE A COPY
OF U.S. RULES. ALSO, FCC'S KEENEY INFORMED SPANDEL THE FCC
WOULD BE SPONSORING A WORKSHOP JUNE 15-17 IN WASHINGTON,
WHICH WOULD INCLUDE ISSUES SUCH AS UNIVERSAL SERVICE. CMT
REPS TENTATIVELY AGREED TO ATTEND.
TRADE COMMITMENTS
USDEL SAID THE USG ADOPTED RULES TO FACILITATE ENTRY OF
FOREIGN CARRIERS APPLYING FOR SERVICES COVERED BY THE WTO
AGREEMENT. THE NEW SYSTEM INCLUDES A PRESUMPTION OF. ENTRY,
WITH A 90-DAY DEADLI<NE (THUS FAR, NO APPLICATIONS HAVE BEEN
TURNED DOWN.)
IN THE CASE OF A TELMEX APPLICATION, THE DATE
29.
MADR1D
06 OF 08
6278
OF THE APPLICATION PRECEDED THE ·wTO AGREEMENT AND THEREFORE
CAME UNDER THE OLD, ECO TEST.
USDEL ANNOUNCED THAT THIS
PAST WEEK 214 APPLICATIONS FOR TELEFONICA WERE APPROVED AND
SHBMARINE CABLE LICENSES WOULD BE FORTHCOMING SOON.
(NOTE:
DURING A MAY 12 RECEPTION HOSTED BY CHARGE, WE WERE INFORMED
BY A U.S. TELECOM.OPERATOR THAT TELEFONICA IS RELUCTANT TO
PROVIDE ACCESS TO ITS LANDING POINT AT ESTEPONA FOR THE FLAG
SUBMARINE CABLE AND ITS SUBMARINE CABLE LICENSE APPLICATIONS
MAY THUS MERIT SUBSEQUENT REVIEW.)
30. BENCHMARKING: USDEL SAID THE ACCOUNTING RATE ISSUE IS
BECOMING ACADEMIC SINCE NEW TECHNOLOGIES ARE CAUSING
CARRIERS WHICH INSIST ON MAINTAINING HIGH ACCOUNTING RATES
TO LOSE MARKET SHARE.
USDEL STRESSED WE WOULD WELCOME A
MULTILATERAL SOLUTION TO GETTING RATES DOWN TO APPROACH
ACTUAL COSTS.
IN THE CASE OF SPAIN, SPANDEL SAID RETEVISION
DOES NOT YET HAVE ANY DIRECT ACCESS SUBSCRIBERS AND MUST
STILL GO THROUGH TELEFONICA TO PROVIDE SERVICE. ONCE IT HAS
ITS OWN INFRASTRUCTURE AND GETS DIRECT ACCESS SUBSCRIBERS,
THEN IT WILL BE INTERESTED IN NEGOTIATING LOWER SETTLEMENT
RATES. ALSO, IN REPLY TO A GOS QUERY, USDEL CONFIRMED
EXISTING OPERATORS HAVE A LIMITED TIME PERIOD TO ADJUST
THEIR BENCHMARK RATES WHILE NEW OPERATORS MUST SATISFY
.BENCHMARK CONDITIONS IMMEDIATELY. CMT REP SAID PERHAPS
SPAIN SHOULD APPLY THE PRINCIPLE OF RECIPROCITY AND APPLY
BENCHMARK RATES FOR U.S. OPERATORS ENTERING THE SPANISH
MARKET.
31. FOREIGN OWNERSHIP: FCC'S KEENEY .EXPLAINED THAT THE 25\
CAP ON FOREIGN OWNERSHIP OF A U.S. CARRIER CAN BE EXCEEDED
IF IN THE PUBLIC INTEREST.
FOR WTO MEMBERS, THE USG NOW
PRESUMES IT IS IN THE PUBLIC INTEREST.
ADMINISTRATIVE: SPANDEL NOTED SPAIN'S RESERVATION FOR
OPERATORS HAVING EQUAL STATUS WITH MEMBER STATES. THE GOS
BELIEVES THE PRIVATE SECTOR SHOULD NOT BE ACTIVE IN EVERY
CASE. SPAIN GENERALLY.AGREES WITH THE DECISIONS TAKEN AT ITU
THE PROPOSAL .TO PREVENT :MEMBERS FROM BEING ELECTED
..., .., ',. ,...
-::::- ........_·:tJ.t'~i~.~~YP > ·.
-.- ·.r·
.. ::~::.:·· .
UNCLASSIFIED
:·.·
7
lf!:JUU::I/UU::>
�I
I
.
.
:.
:,U,''
.
Withdrawal/Redaction Sheet
Clinton Library
DOCUMENT NO.
,AND TYPE
001. cable
DATE
SUBJECTffiTLE
nd
Partial cable re: Internet Issues (2 pages)
RESTRICTION
PS
COLLECTION:.
Domestic Policy Council
·Ira Magaziner (Electronic Commerce)
. OA/Box Number: 13116
FOLDER TITLE:
Content [Internet Issues]
Rhonda Wilson
rwlll
RESTRICTION CODES
Presidential Records Act- [44 U.S. C. 2204(a)]
Freedom of Information Act- [5 U.S.C. 552(b)]
Pl National Security Classified Information [(a)(l) of the PRA]
P2 Relating to the appointment to Federal office [(a)(2) of the PRA]
P3 Release would violate a Federal statute [(a)(3) of the PRA]
P4 Release would disclose trade secrets or confidential commercial or
fmancial information [(a)(4) ·or the PRA]
PS Release would disclose confidential advise between the President
and his advisors, or between such advisors [a)(S) of the PRA]
P6 Release would constitute a clearly unwarranted invasion of
personal privacy [(a)(6) of the PRA]
b(l) National security classified information [(b)(l) of the FOIA]
b(2) Release would disclose internal personnel rules and practices of
an agency [(b)(2) of the FOIA]
·
b(3) Release would violate a Federal statute [(b)(3) of the FOIA]
b(4) Release would disclose trade secrets or confidential or financial
information [(b)(4) of the FOIA]
b(6) Release would constitute a clearly unwarranted invasion of
personal privacy [(b)(6) of the FOIA]
b(7) Release would disclose information compiled for law enforcement
purposes [(b)(7) of the FOIA]
b(8) Release would disclose information concerning the regulation of
financial institutions [(b)(8) of the FOIA]
b(9) Release would disclose geological or geophysical information
concerning wells [{b)(9) of the FOIA]
C. Closed .in accordance with restrictions contained in donor's deed
of gift.
PRM. Personal record misfile defined in accordance with 44 U.S.C.
2201(3)..
RR. Document will be reviewed upon request.
QUNION LIBRARY PHOTOCOPY
�!
RQUTINE
UNCLASSIFIED WHI_TE HOUSE SITUATION ROOM
:PAGE 02 OF 03
PITFALLS, SUCH AS THE MORE PRESCRIPTIVE DIRECTION THE FRENCH
WERE ADVOCATING AT ONE POINT. HIS MAIN WORRY, HE SAID, IS.
THAT RESOURCES WILL GET DIVERTED FROM THE CONCRETE ISSUES AT
HAND (E.G. TAXATION INTELLECTUAL __ ?ROPERTY RIGHTS ETC.) ,
SENIOR ADVISOR MAGAZINER RELATED THAT HE HAD TOLD BANGEMANN
· THAT A ROADMAP APPROACH WOULD BE ACCEPTABLE, THOUGH THE
POTENTIAL IMPLICATION THAT NOTHING COULD HAPPEN WITHOUT
:GOVERNMENT AUTHORIZATION IS TROUBLING. ALTHOUGH HE SAID U.S.
, PARTICIPATION HADN'T BEEN RULED OUT, THE USG DOES NOT ATTACH A
GREAT DEAL OF IMPORTANCE TO THE CHARTER.
I
I
.
.
DG-IV WILL MAKE ANTITRUST DETERMINATION ON DNS.CORPORATION
-------~--~--------~--------------------------------------
4.
(SBU) · MACINTYRE,THANKED THE USG FOR ALL· THAT IT HAD DONE
.TO ADDRESS EU CONCERNS REGARDING THE DOMAIN NAME SYSTEM (DNS)
PROPOSAL. INTERNATIONAL POLICY CHIEF NEIL FEINSON POINTED OUT
THAT THE INTERNATIONAL NON-PROFIT CORPORATION SET UP TO
ADMINISTER THE DN3 WOULD BE SUBJECTED TO EX POST FACTO
SCRUTINY BY DG-IV (COMPETITION POLICY) OF THE EUROPEAN
. COMMISSION. FEINSON EXPLAINED THAT ONCE THE COMPANY WAS
'ESTABLISHED IT WOULD NEED TO FILE A "NOTIFICATION" WITH DG-IV.
THE COMMISSION CAN THEN EITHER GRANT APPROVAL/CONSENT OR, IF
IT DETERMINES THAT THE CORPORATION FALLS OUTSIDE THE BOUNDS OF
ARTICLE 85 OF THE TREATY OF ROME, DECLARE IT EXEMPT.
MAGAZINER RESPONDED THAT THE JUSTICE DEPARTMENT IS ALREADY
CONSULTING WITH DG-IV. HE ADDED THAT WHILE A REVIEW OF THE
CORPORATION IN TERMS OF ITS STRUCTURE IS ALTOGETHER
APPROPRIATE, THE USG WOULD HAVE A MAJOR OBJECTION IF THE DG-IV
:REVIEW BECAME POLITICIZED.
DATA PRIVACY
(SBU) MAGAZINER BRIEFED MACINTYRE-ON USG EFFORTS TO MEET
THE PRIVACY OBJECTIVES SET OUT IN THE JULY 1997 FRAMEWORK FOR GLOBAL ELECTRONIC COMMERCEv HE NOTED THAT COMPANIES
REPRESENTING OVER-80 PERCENT OF ONLINE ACTIVITY HAD JUST
ANNOUNCED AN _ ALLI~CE,.;·r:r9.;:I~Sf.'.I.'I'U':J:'E BETTER PRIVACY PROTECTI<:)NS._. •-'~ .,.; _ .,·:-.:/;.
HE EXPLAINED >THAT·1'6{cFOLLOWING;f1THR,<,JUNE, 22 -USDOC PRIVACY . ·.:<,o;« 'r,:. ·..•...~:.:·;: ·_ '·~. ,· .;;_(, ., .
.. "SUMMIT'' WITH ..THE•:Ti:I?.~IV~T~fte:ECTOR) 1 :THE USG OBJECTIVE IS -To_<~V£.H}:p::?;:}:X.· :;fy;~r:;~i!i· .
. A SYSTEM OF ONLINE 1·iPRIVAcy·.;:,~PROTECTION IN PLACE BY AUGUST-· /'THE 'icx·-_· .· '.·••;J.<·.;'::
. FTC MAY SUBSEQUENTLY .BE .,GIVEN .AUTHORITY TO ENFORCE OECD . \·,:. . . . : -...•"• ·z>
:·.PRIVACY GUIDELINE~)i~ij:,}?,o§~IBLY ::iyiT,~;r A·-__ PRESUMED EXEMPTION,F~I(~;t.-:\.'#x: ;.~t~::i':tJ.1-';;t. •;~:~~¥ilii;.i
x ONLINE PRIVACY_.ALLIANCE,(·}fEMBERS ;,.,,, IN. RESPONSE TO FEINSON -8.-'ii•:':,:y •·<'·-··•;<•·> :.,·:\:"''i'';;•., _
. INQUIRY. AS TO WHAT;:'§.ANc.f±bNS 'MIGiiT BACK UP THE PROTECTIONS ;··-,,~.• . ..'J > . ·-: .<:t~:::.
MAGAZINER STATED THAT TifJ?<;~_-SEAL'~ .. WOULD BE REVOKED, AND IN _}:'HE. ;:- . . . . ·,,:;;;;_
5.
·~~~~~S~«:~:~i~i~:~::~~k~~t::z;:~:
ANTI-
::~~~~~1~~~~¥~~~!!0
�UNCLASSIFIED
ROUTINE
WHITE HOUSE SITUATION ROOM
PAGE 03 OF 03
ELECTRONIC TRANSACTIONS
6.
(U)
MAGAZINER ASKED FOR THE UK'S LATEST THINKING ON THE
U.S. CONVENTION PROPOSAL FOR ELECTRONIC TRANSACTIONS AND
UNCLAS E F T 0 SECTION 02 OF 02 LONDON 007155
USDOC FOR NTIA/LIRVING/BBURR
USDOC FOR 6300/TTA/TD/RLAYTON
WH FOR POLICY/MAGAZINER
PARIS ALSO FOR USOECD
SENSITIVE
NOFORN
E.O. 12958: N/A
TAGS: EINT _ECPS ETRD EUN
SUBJECT: INTERNET ISSUES
I
REF:
I
I
I
UK
LONDON 6361
EXPRESSED CONCERN THAT SYSTEMS LINKED TOO CLOSELY TO A
PARTICULAR TECHNOLOGY WOULD BECOME DE FACTO MANDATORY BEFORE
WE HAVE SUFFICIENT', EXPERIENCE TO JUDGE WHAT WORKS BEST. HE
STRESSED THAT WHAT THE U.S. WANTS IS MUTUAL RECOGNITION OF
. ELECTRONIC SIGNATURE SYSTEMS. DTI SECURITY SYSTEMS CHIEF
NIGEL HICKSON SAID THAT THE UK WOULD.SUPPORT THE U.S.
CONvENTION PROPOSAL.BUT ADMITTED THAT THE EU IS LEANING
TOWARDS GIVING PRESUMPTION OF VALIDITY TO DIGITAL SIGNATURES.
MACINTYRE SAID HE IS OPEN TO REEVALUATING THAT POSITION.
LADER
<"SECT>SECTION: 01 OF 02
<"SSN>7155
. ·<"TOR>980714045939 M3375560
<"SECT>SECTION: 02 OF 02
<"SSN>7155
<MSGID> M3375560
. UNCLASSIFIED
�I
I
·
I
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.
:;.~!I.IJI'M'
Withdrawal/Redaction Sheet
Clinton Library
DOCUMENT NO.
'AND TYPE
001. cable
DATE
SUBJECTffiTLE
From AmEmbassy Manila re: E-Commerce c Philippine Position Still
Evolvi_ng (2 pages)
05/06/98
RESTRICTION
P5
_COLLECTION:
Domestic Policy Council
Ira Magaziner ·(Electronic Commerce)
ONBox Number: 13116
FOLDER TITLE: .
General Cables
Rhonda Wilson
rw113
RESTRICTION CODES
Freedom of Information Act- [5 U.S.C; 552(b)]
Presidential Records Act- [44 U.S.C. 2204(a)]
·PI National Security Classified Information [(a)(l) of the PRA]
:P2 Relating to the appointment to Federal office [(a)(2) of the PRA]
P3 Release would violate a Federal statute [(a)(3) of the PRA]
'P4 Release would disclose trade.secrets or confidential commercial or
financial information [(a)(4) of the PRA]
. PS Release would disclose confidential advise between the President
and his advisors, or between such advisors [a)(S) of the PRA] .
P6 Release would constitute a clearly unwarranted invasion of
· personal privacy [(~)(6) of the PRA]
C. Closed in accordance with restrictions contained in donor's deed
of gift.
PRM. Personal record misfile defmed in accordance with 44 U.S.C.
2201(3).
RR Document will be reviewed upon request
b(l) National security classified inforniation [(b)(l) of the FOIA]
b(2) Release would disclose internal personnel niles and practices of
an agency [(b)(2) of the FOIA]
b(3) Release would violate a Federal statute [(b)(3) of the FOIA]
b(4) Release would disclose trade secrets or confidential or financial
information [(b)(4) of the FOIA]
b(6) Release would constitute a clearly unwarranted invasion of
personal privacy [(b)(6) of the FOIA]
b(7) Release would disclose information compiled for law eruorcement
purposes [(b)(7) of the FOIA]
b(S) Release would disclose information concerning the regulation of
financial institutions [(b)(S) of the FOIA]
b(9) Release would disclose geological or geophysical information
concerning wells [(b)(9) of the FOIA]
CLU\!TON LIB11f.\RY PHOTOCOPY
·······-···-·······--···--·-····-·-·~····------------------------
�vo.U.i!
V<J!UO!l:l()
....
UNCLASSIFIED
Princed By: Andrew J. weinachenk
ACTION CIP-00
ACDA-OB
CIAE-00' CTME•OO
EXM!i!-00 E- DO
TEDE-00 INR-00
NSAE•OO NSCE-00
ss~oo
sso-co
/D25W
SAS-00
INFO 100·00
J\CDE-00
DODE-00
FBIE-00
IO-CO
OIC-02
STR-00
AGRE-00
ITCE-00
UTED-00
ITC-01
OMB-01
TRSE-00
-----~------······3A9D84
AID-DO
SIU~P-00
J."CC-01
JuSE-00
OPIC-01
USIE•OO
A.IT-03
BAP-01
FRB-00
L-01
CI0-00
DRL:o'4
CEA-01
EB-00
H·Ol
ADS•OD
SP-00
G-OO
060l54Z /38
P 0601542 MAY 98
FM AMEMBASSY'MANILA
TO SECSTATE WASHDC PRIORITY 8444
INFO USMISSION GENEVA
USDOC -WASHDC
AS~OCIATION OF SOUTHEAST ASIAN NATIONS
UNCLAS MANILA 005415
GENEVA FOR· USTR/TAGLIANI
STATE ALSO PASS USTR FOR ABELSON/RqHDE
STATE ALSO FOR ES/CIP - WEINSCHENK
USDOC FOR. 4430/IEP/EAP/OPB/I<ELLY
USDOC ALSO FOR NTIA
E.O. l:.!SlSB: N/A
TAGS: ETRD, ECPS, WTRO, RP
SUBJECT: E-COMMERCE -- PHILIPPINE POSITION STILL EVOLVING
REF: (A) "98 STATE 034869; !Cl 98 MANILA 02659
Sensit:ive But: Unclassified.
Procecc Accordingly.
l.
(1Jl THE "PHILIPPINE STAR'' REI?ORTED MAY 3 THJ\.T
SECRETARY OF TRADE AND INDUSTRY BAUTISTA HAD SAID THE
PHILIPPINES HAS "PROBLEMS" WITH THE U.S. E-COMMERCE
PROPOSAL IN THE WTO. BJI.UTISTA IS QUOTED AS SAYING "THE
U.S. IS TRYING TO RAM THIS ISSUE, BUT ~ DON'T THINK WE
CAN INK OUR COMMITMENT . . . UNTIL WE KNOW MORE ABOUT IT. "
DTI ASSISTANT SECRETARY CUSTODIO IS QUOTED ELABORATINC ON
BAUTISTA'S POINT BY SAYING THAT THE li'HILIPPINES.NEEDS TO
LOOK AT THE "FISCAL IMPACT AS WELL AS STANDARDS, FORMAT,
SECURITY MEASURES AND ITS IMPACT OF INTELLECTUAL PROPERTY
RIGHTS." BAUTISTA NOTED THAT THE U.S. PROPOSAL IS MAINLY
SUPPORTED BY DEVELOPED COUNTRIES AND DOES NOT HAVE
SUPPORT FROM DEVELOPING COUNTRU:S.
2.
!SBU) ECONCOUNS MET MAY 5 WITH DTI UNDER SECRETARY
FOR I.NTERNATIONAL TRADE JOSE JULIANO TO SEEK
CLARIFICATION OF BAUTISTA'S REI?ORTED REMARKS. JULIANO
HAS BEEN CHARGED B~ BAUTISTA WITH COORDINATING THE
PHILIPPINE A-PPROACH TO E-COMMERCE AND CHAIRS THE
GOVERNMENT-INDUSTRY E-COMMERCE COUNCIL. JULIANO INSISTED
THAT THERE IS NO OFFICIAL PHILIPPINE POSITION ON THE TJ.S.
PROPOSAL,' BUT DID NOT OFFER ANY CLARIFICATION OF HIS
SECRETARY'S REPORTED COMMENTS .. JULIANO WAS HOLDING A
CABLE FROM THE PHILIPP~E GENEVA MISSION OUTLINING THE.
U.S. PROPOSAL AND ASJ<i·NG GUIDANCE. HE SAID THAT THE ECOMMERC£ COUNCIL WILL '·ME"S'I' ON MAY. 7 TO DISCUSS THE
PHILIPPINE POSITION.
<"-··
3.
(SBU)
JULIANO CHARACTERIZ!i:5 THE U.S. PROPOSAL AS TWO
SEPAAA~E PROPOSALS AND SAID THAT THE PROPOSAL THAT THE
UNCLASSIFIED
1
(:L\1\!TON LIBR/\RY PHOTOCOPY
�U~/Ut:l/l:J~
,..
!t!J Vl.ll Ull
U~!LIJ
UNCI..ASSIFIS:D
Prin~ed By;· Andre~ J. Weinschenk
WI'O SI'UDY JURISDICTIONAL AND OTHER ISSUES. IS MORE OF A
PROBLEM FOR THE PHILI??INES THAN THE DUTY-FREE ~ROPOSAL.
JULIANO SAID. THAT THE TARIFF ~ROPOSAL IS "NOT.
NECESSARILY" A PROBLEM .. eUT THE PHILIPPINES WANI'S I'O GET
EVERYONE'S VIEWS. HE ALSO SAID THAT SOME OFFICIALS
WONDER WHAT IS "HIDDEN" IN THE U.S. PROPOSAL. E:CONCOUNS
EXPLAINED I'HE U.S. POSITION, POINTING OUT THAT SOMEONE,
SOMEWHERE HAD TO BEGIN STUDYING THE ISSUES THAT E·
.
COMMERCE.RAISES FOR BOTH THE INTERNATIONAL TRADING SYSTEM
AND FOR INDIVIDUAL COONTRIES' LEGAL SYSTEMS. THE wro
OFFERS THE BROADEST FORUM, GROUPING BOTH DEVELOPING AND
·DEVELOFED COUNTRIES. JULIANO ACKNOWLEDGED THE POINT BUT
STILL OBSERVED THAT THE l?HILI!?l?INE POSITION NEEDS TO BE
coOR.DINATED.
HUBBARD
UNCLASSIFIED
2
(;!Jl"TON LIBRI-\RY PHOTOCOPY
�I
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·
!
·
, ·•·• ...
Withdrawal/Redaction Sheet
Clinton Library
·DOCUMENT NO.
AND TYPE
001. memo
DATE
SUBJECT!fiTLE
To Ira Magaziner and Don Abelson from Drew Quinn re: EComrnerce Tariffs: GOJ Position .(4 pages)
04/21/98
RESTRICTION
P5
COLLECTION:
Domestic Policy Council
IraMagaziner (Electronic Commerce)
ONB.ox Number: 13116
FOLDER TITLE:
WTO [World Trade Organization]
Rhonda Wilson
rw114
RESTRICTION CODES
Presidential Records Act- [44 U.S.C. 2204(a)]
Freedom of Information Act- [5 U.S.C. 552(b)]
Pl National Security Classified Information [(a)(l) of the PRA]
P2 Relating to the appointment to Federal office [(a)(2) of the PRA]
P3 Release would violate a Federal statute [(a)(3) of the PRA]
P4 Release would disclose trade secrets or confidential commercial or
financial information [(a)(4) of the PRA]
PS Release. would disclose confidential advise between the President
and his advisors, or between such advisors [a)(S) of the PRA]
P6 Release would constitute a clearly unwarranted invasion of
personal privacy [(a)(6) of the PRA]
b(l) National security classified information [(b)(l) of the FOIA]
b(2) Release would disclose internal personnel rules and practices of
an agency [(b)(2) of the FOIA]
b(3) Release would violate a Federal statute [(b)(3) of the FOIA]
b( 4) Release would disclose trade secrets or confidential or financial
information [(b)(4) of the FOIA]
b(6) Release would constitute a clearly unwarranted invasion of
personal privacy [(b)(6) of th.e FOIA]
b(7) Release would disclose information compiled for law enforcement
purposes [(b)(7) of the FOIA]
b(S) Release would disclose information concerning the regulation of
. financial institutions [(b)(S) of the FOIA]
b(9) Release would disclose geological or geophysical information
concerning wens [(b)(9) ofthe~ftTON LIBRARY PHOTOCOPY -·
C. Closed in accordance with restrictions contained in donor's deed
of gift.
. PRM. Personal record misfile defined in accordance with 44 U.S.C.
2201(3).
RR. Document will be reviewed upon request.
�APR. -2 i: 98(TUE) 20:21
P. 001
···:'
April21, 1998
TO:
White House.:. Ira Magaziner
202-456-5557 .
USTR -- Don Abelson
202-395-3891
Qui~~
FROM:
Tokyo --Drew
SUBJECT:
E-corn.merce tariffs:. GOJposition ·
I went over to MITI today to discuss, inter alia, e-commerce tariff issues:
· It appears that the GOJ is gearing up to support the Canadian proposal for a standstill on
e-comnierce tariffs till2000 at the Qua:d meeting at the end of this month. I guessthe
Canadians have been reasonably active in soliciting GOJ support, and seem to have
formed an unholy alliance with MOF on the issue. I was passed i11formally the interagency GOJ position (see page two) being prepared for the Quad meeting,·in support of
the Canadian proposal.
'
It has not yet·been possible to gauge the impa~t of the Treasury interventions with MOF
on the tariff issue that occurred in Washington late last week.
· Noting that the GOJ's statement for the Quad, even with its limitations, seemed in some
respects mcir~ forthcoming than what MOF had proposed for our bilateral joint statement,
I asked (explaining I was_ speaking only for myself) ifMITI thought MOF could use some
of that language as the basis for a new section on "Tariffs 11 in our joint statement. For
example, I thought it would be useful to drop the extraneous language that just duplicates
what's elsewhere in our joint statement, and milke the standstill pr~ovision extend not just
till 20 months from now (a Canadian proposal that's irrelevant in tl1e bilateral US-J
context) but until the multilateral organizations decide how e-commerce will be handled
(with the implication that through US/J efforts we will ensure that e-commerce receives
tariff free t~eatment.) MITI said they thought MOF could sign off on an approach like
that since it embraced key concepts/language they already cleared on for the Quad paper.
My very rough idea ofhow you could structure something like tl1at --discussed aloud
with MITI but drafted after.I returned to the office-- is attached (page 4, item A).
I think that new language (at p. 4/A) is a little better than the language in the GOJ re-draft
joint statement, but it's still fairlyweak, and could be read basically as saying "we won't
impose "tariffs until we change our mind." Hardly the ringing endorsement of tariff free·
cyberspace we're after. In the interest of getting a dialogue going on this in the limited
time remaining, I do, however, seethe benefit of going back to the GOJ with a new draft
that uses at least some of the key language/concepts from their ovro. paper. For that
CL\1\\TON Lll3Rf\RY PHOTOCOPY
�>
~:PR. -2f-' 98(TUEl 20:22
P. 002
reason, I have put together a stronger version (page 4, item b).that not only indicates
support for a standstill on tariffs but outlines the position the U.S. and Japan will take in
the multilateral fora considering this issue.
Thave some ideas on how we might try to move this forward in the corning week, and
will try to call you both later to discuss this further.
Attachments:
p. 3 -- GOJ draft in support of Canadian 11 standstill 11 proposal for Quad
p. 4 -- notional DQ re·draft on language on tariffs for joint statement
p. 5 --.language on tariffs from GOJ re-draft of joint statement (3/9/98)
Cl.ll~TON LIBRI\RY PHOTOCOPY
�P. 003
AfR.-21'98!TUEI 20:22·
-·
....
. Global e1a:tronic carrrerce, via Internet and other neans, will b3
one of the rrajor prext):li;ers of the eo:mcmic growth of the ltiOrld in
the riaxt cent~. We ~lili!\TQ that the. private.
should play a
leadlnl role ln proonting electmnic c.ctrrJe~ "nd tha. t gB should
sector
refrain fran
.
i~ing
'I
undue restrictions on ele::a·onit c:amerce.
.
G.\oe
.
:
.
Regarding cust.ars dutJes, there ~a custans duties on electronic
,•
.
.
a:xtfien::e at t'he .present ·tine. ·!n .view of the i~TPJri:ance of
eleotron.ie ·eonmarca ~ .hd.~ ~ed a need to closely ~ine ·the
:rela tlon lEtll.'een the wro aueenerits and electronic camerce.
'
.
We agrea to start- ~rehens i ve
exam ina tioa
in. W'IO on the
trade-relatal asp:cts of eloctronic o:mne~, l:earing in mind that ·
electronic a::mnet"Ce relates to. various· aspects· of the Wl'q ~ ts,
and to aim to reach a coc.clusion. axpaii tio\Jsly on any ~azy
steps to re taken. In ths meantirre, wl thout preJudice to our future
decisions regarding
, wa agree to apply no n~ treaSures that
~~ld result in aPPli tion of cus~ duties on .electronic ~eel .
and to reviS~J this
dstill after- Janua!'ll 1. mn.
'
1 .
CI.I!HON LIBRI\RY PHOTOCOPY
�I
~PR . ..,21 ~ 98 (TUE) 20:22
1
P. 004
r- . '1
A) Possible re..;draft based on .GOJ text for Quad:
. There are currently no customs duties on electronic commerce. Moves are underivay to
clarify the relationship of electronic commerce to existing and future WTO agreements.
Until those issues are resolved in international fora, the United States and Japan will
apply no new measures that would result in application of customs duties on electronic
commerce.
B) Enhanced re-dra.ft based on GOJ text for Quad:
There are Clll"Fently no customs duties on electronic commerce. The United States and
Japan believe that this duty-free environment should remain, for free trade in electronic
commerce will proii).otethe growth of economic commerce, and of economic growth
worldwide.
Boi:p nations will work in multilateral fora to see this adopted formaily as international
practice. Until an international consensus is achieved, the United States and Japan will
app-ly no new measures that would result in application of customs duties on electronic
commerce.
tUl~TON LIBRARY PHOTOCOPY
�Withdrawal/Redaction Sheet
Clinton Library
DOCUMENT NO.
AND TYPE.
SUBJECTffiTLE
001. Memo
From Charles F. C. Ruff to Executive Office of the President Staff (2.
pages)
002.Memo
DATE
· From Alan H. Magazine to Ira Magaziner re: FDA Commissioner (1
page)
RESTRICTION
5/5/97
P5
05/05/97
P2, P5, b(6)
· COLLECTION:
Clinton Presidential Records
Domestic Policy Council
Ira Magaziner (Electronic Commerce)
ONBox Number: 13117
FOLDER TITLE:
Misc.- Need to Sort
Rhonda Wilson
rw3
RESTRICTION CODES
Presidential Records Act- [44 U.S.C. 2204(a)[
Freedom of Information Act- [5 U.S.C. 552(b)l
PI
P2
P3
P4
b(l) National security classified information [(b)(l) of the FOIAI
b(2) Release would disclose internal personnel rules and practices of
an agency [(b)(2) of the FOIAI
b(3) Release would violate a Federal statute [(b)(3) of the FOIAI
b(4) Release would disclose trade secrets or confidential or financial
information [(b)(4) of the FOIAI
b(6) Release would constitute a clearly unwarranted invasion of
personal privacy [(b)(6) of the FOIAI
b(7) Release would disclose information compiled for law enforcement
purposes j(b)(7) of the FOIAI
b(8) Release would disclose information concerning the regulation of
financial institutions [(b)(8) of the FOIAI
b(9) Release would disclose geological o~ geophysical information
concerning wells [(b)(9) of the FOIAI
National Security Classified Information [(a)(l) of the PRAI
Relating to the appointment to Federal office [(a)(2) of the PRAI
Release would violate a Federafstatute [(a)(3) of the PRAI
Release would disclose trade secrets or confidential commercial or
financial information [(a)(4) of the PRAI
PS Release would disclose confidential advice between the President
and his advisors, or between such advisors [a)(S) of the PRAI
P6 Release would constitute a clearly unwarranted invasion of
· personal privacy [(a)(6) of the .PRAI ·
C. Closed in accordance witli restrictions contained in donor's deed
of gift.·
PRM. fersonal record misfile defined inaccordiuice with 44 U.S.C.
2201(3).
. RR. Document will be reviewed upon request.
�.Withdrawal/Redaction Sheet
Clinton Library
·· -DOCUMENT NO .
. AND TYPE
· 001. Memo
DATE
SUBJECTffiTLE
5/5/97
:From Charles F. C. Ruff to Executive Office of the President Staff (2
·RESTRICTION
P5
pages)
002. Memo
P2,P5
From Alan H. Magazine to Ira Magaziner re: FDA Commissioner (1
page)
COLLECTION:
Domestic Policy Council
·Ira Magaziner- Electronic Commerce
OA/Box Number: 13117
FOLDER TITLE:
· Misc. - Need to Sort
Rhonda Wilson
rw3
RESTRICTION CODES
Presidential Records Act- [44 U.S.C. 2204(a)]
'Pl National Security Classified Information [(a)(l) of the PRA]
P2 Relating to the appointment to Federal office [(a)(2) of the PRA]
P3 Release would violate a Federal statute [(a)(3) of the PRA]
P4 Release would disclose trade secrets or confidential commercial or
financial information [(a)(4) of the PRA]
. PS Release would disclose confidential advise between the President
and his advisors, or between such advisors [a)(S) of the PRA]
P6.Release would constitute a clearly unwarranted invasion of
personal privacy [(a)(6) of the PRA]
C. Closed in accordance with restrictions contained in donor's deed
of gift.
PRM. Personal record misfile defined in accordance with 44 U.S.C.
2201(3).
RR. Document will be reviewed upon request.
Freedom of Information Act- [5 U.S.C. 552(b)]
b(l) National security classified information [(b)(l) of the FOIA]
b(2) Release would disclose internal personnel rules and practices of
an agency [(b)(2) of
FOIA]
·
b(3) Release would violate a F~deral statute [(b)(3) of the FOIA]
b(4) Release would disclose trade secrets or confidential or financial
information [(b)(4) of the FOIA]
b(6) Release would constitute a clearly unwarranted invasion of
personal privacy [(b)(6) of the FOIA]
.b(7) Release would disclose information compiled for law enforcement
purposes [(b)(7) of the FOIA]
b(S) Release would disclose information concerning the regulation of
financial institutions [(b)(S) of the FOIA]
b(9) Release would disclose geological or geophysical information
concerning wells [(b)(9) of the FOIA]
the
(:LilHC)N liBRARY PHOTOCOPY
�THE WHITE HOUSE
\
.
WASHINGTON
May 5, 1997
MEMORANDUM TO:
Executive Office ofthe President Staff .
FROM:
Charles
RE:
F.c.aJ ·. ··
Couns.el to~
. Document Request
We have received requests seeking documents relatirig to certain entities and individuals .
.Accordingly, please conduct a thorough and complete search of all your records -- whether
electronic, paper, or other. form -- for the following .materials.
.
1.
Any and all documents and/or communications from January 1, 1994to the present,
x:eflecting, related or referringto Webster ("Webb") Hubbell or Suzanna ("Suzy")
Hubbell.
2.
Any and all documents and/or communications from Jani.Jary J, 1994 through December
31, .1995 reflecting, related or referring to any of the following individuals or entities. (In
the case of government employees, you need not produce documents that relate only to
their official duties unless otherwise specified.)
Individuals
· Arkatov, Alan S.
Arnold, Anita
Arnold, Truman
Berman, MichaelS.
Boggs, Timothy A.
Boxer, Doug
Broad, Eli
Budetti, Peter
Conn, Carroll Wayne
Davidson, .James
Driscoll, John J. "Jack" .
. Hannaman, Gary or Hanman, Gary
Hedlund, Karen J.
Hoover, Pete
Jacoby, Leonard
Johnson, James A.
··,.··
'
<:
ClollHON LH3Rt\RY PHOTOCOPY
�•'
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If you have already p_rovid.ed the documents to the Counsel's Office, you do not need to
.do so again. If any of the entities above haye had matters before your office that would result· in ·
large volumes ofresponsive documents (e.g., the telecommunications bill) please call Shelli
Peterson at 6'-7804 for instructions on whether to provide the documents. ·
Documents include, but are not limited to, memoranda, correspondence, notes, minutes
from meetings, schedules, messages; appointment logs or calendar entries, telephone logs or
messages, photographs, and computer or database entries.
Each employee is responsible for searching all of his or her files and records to ensure a
comprehensive search. In the White House Office, the Office of Policy Development, and the
Executive Residence, each Office Head or Assistant to the President must certify that his or her .
. staff has done a complete search. For,all other EOP agencies or entities, the General Counsel .
must certify that all agency records have .been provided.
.
-
.
. ALL DOCUMENTS MUST BE PROVIDED TO SHELLI PETERSON,_ ROOM
482 BY FRIDAY, MAY 16, 1997." If yoU: have any questions, please _call Shelli Peterson at 67804.
CLINTON LIBRARY PHOTOCOPY .
�'
Withdrawal/Redaction Sheet
Clinton Library
DOCUMENT NO.
AND TYPE
DATE
SUBJECTfJ'ITLE
nd
P5
Encryption Export Controls - Wassenaar Issues (2 pages)
09/12/97
P5
Responses by other countries to U. S. Statements (1 page)
nd
P5
001. report
Meeting of Senior Encryption Policy
Baltimore (6 pages)
002. report
·003.list
Officia~s
RESTRICTION
December 4, 1997,
COLLECTION:
Domestic Policy Council
IraMagaziner (Electronic Commerce)
· OA/Box Number: 13118
FOLDER TITLE:
Encryption [2]
Rhonda Wilson
rwl16
RESTRICTION CODES
Presidential Records Act- [44 U.S.C. 2204(a)]
Freedom of Information Act- [5 U.S.C. 552(b)]
PI National Security Classified Information [(a)(l) of the PRA]
P2 Relating to the appointment to Federal office [(a)(2) of the PRA]
P3 Release would violate a Federal statute [(a)(3) of the PRA]
P4 Release would disclose trade secrets or confidential commercial or
financial illformation [(a)(4) of the PRA]
PS Release would disclose confidential advise between the President
and his advisors, or between such advisors [a)(S) of the PRA]
P6 Release would constitute a clearly unwarranted invasion of
., personal privacy [(a)(6) of the PRA]
b(l) National security classified information [(b)(l) of the FOIA]
b(2) Release would disclose internal personnel rules and practices of
an agency [(b)(2) of the FOIA]
·
b(3) Release wotild violate a Federal statute [(b)(3) of the FOIA]
b(4) Release would disclose trade secrets or confidential or financial
information"[(b)(4) of the FOIA]
b(6) Release would constitUte a clearly unwarranted invasion of
personal privacy [(b)(6) of the FOIA]
b(7) Release would disclose information compiled for law enforcement
purposes [(b)(7) of the FOIA]
b(8) Release would disclose information concerning the regulation of .
financial institutions [(b)(S) of the FOIA]
b(9) Relea)le w·ould disclose geological or geophysical information
concerning wells [(b)(9) of the FOIA] ·
C. Closed in accordance with restrictions contained in donor's deed
of gift.
PRM. Personal record misfile defined in accordance with 44 U.S.C.
2201(3).
RR. Document will be reviewed upon request.
CLINTON LIBRARY PHOTOCOPY
�S¢nsitive -:~For US Government Official Use.Only •·
_ Meeting of Senior Encryption Policy Offi~ials
·
· Dec-ember 4, 1997, Baltimore .
•
R~port
of Meeting
. '
' I •
Summary
.· . Qn December 4, 1991, senior encryption offi_cials from the US, Canada, France,
. :-Germany, Japan, the Netherlands, Sweden and the UK met in Baltimore to discuss th,e progress
... ofth~ working groups on compatibie 1rtfrastrtictures and encryption export controls, and next. ' - .
steps. (See·attachedparticipants list). The me.etirig was chaired byAfu.b~sadpr DavidL. Aaron,
·_the
speCial Envoy for Cryptography.
.
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us:
· ··. The senior officials proyided updates· of their national_ encryption policymaking efforts.
They aiso co~idered strategies for dealing with encfyption in the conteXt ofthe-:wassenciar
•. Arrangement and. discussed the option ofinv,iting additional co:untrl'es including Australia;
Switzerland- and':~:USSla to future meefuigs ... F. olloW:ing are .highlights of the· working groups: .
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. The Working.Ghmp oil Compatible Infrastructures ""-:-The working group has made
sighifidmt PI"Ogtess iii ruuro\~irig issue~ for co.n,sidemtioll by governnients .. -The senior-.. offisHils supported continued work by.thew()rking'gr(mp -in t,hree areC1S: ~ompatibilitY
:amon.g certifi_cat¢ au~9riti.es; minirinlin constrain~
conpderitialitY; an.d the -· ·.- . .
-.. dev~iopll1entb{afutufe work program. For :compatibilitY of certificate. authorities,. t11e .
pJ;Odtl~t is its in~oduc~on at . .•
. · groqp, agreeq ~taft~r IllOre Work, tbe ·objective for $e
Othe oE:ci>~ tm¢rtRAL or.some appropriateforUIIl $ometitne·laterin 1998 ... Reg~diitg_ .
the p~pet on lllinitnum constraillt8, the group agreed that the final- product Will 'take the.
, fdrp1 of~ "noil~p~per'~-SOJl~ notto:~cmimit.cqllhtri(:~to anofficiru; puBiic.;position; .
: .·
. ' -'countries were encotJi-aged to use the documentin-bilateral ;qolisultations. ' Tills paper may
· also be subnrltt~d hitertp an appropriate forum. Th~work4lg grqup. ·was instructed to
.· develop ~Jist of priorities and present a deta,ile~ work program a.tthe next,senior officials ..
......
' meeting,
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c)y
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The Working Gr~up oii Export crintrols ~ The UK, France, Swedeii artd the
tJs ; .· ·
' . agreed to table ahigh-level proposal at tiJ,e upcoming Wassenaar Rlenary' scheduled for
· · I)eceiiiper9-tO in Vienna. The proposal outlitiesthree procidobjectiv~sfor.reforniulating
encryption controls in Wassenaar iricluding: updating Category5part2toreflect the. greatlfexpanded privat,euse Of cryptography in-the moderi1 world; refuiii:tgthe_ Ge11eral .·
:SoftWare Note to exclude category5:2; and aeknowledging inWassenaar·thatlaw ·
.
enforcemen~ i~_a valid teason forcontrol of czypt~graphy. Others countries agreed to ·
proyide Statements of support at the Plenary.. The:group agreed to continue work on the ..
. rriore detailed proposal wblch includes sugg~sted .language for rewording Category 5 part
Sensitive_.;. For US Government Official Use Only
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cLiNTON LIBRARY PHOTOCOPY .
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2, further decontrol not~s, and a Statement of Understandfug for streamlined licensing
procedures. The deadline for prodtiCing a detailed proposal is early February; prior to the
next meeting of the Wassenaar encryption experts group.
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The senior-officials agreed to iirvite Ali$traliaand SWitzerland to partiCipate i11 future ·
meetings and to meet a~ain in early 1998 to ,review the. progress of the working groups...
. . Updates on National Policies
_
_
United :States.. The US began the discussion with an ~pdate ofUS legislative activities,
-. notirig that the Congress h_ad recessed this Fall without taking any a~tion on pending encryption ·
'bilk_ Since ~is isjust·a break in the session, all of the bills which were introduced and pendmg·
actiori this Fallwill be rolledoverforco~id~rationwh¢nthe Congress_ ~esumes inJaniuuj; This ·
. intervening time-will•be t!sed.for stocktakmg. J~.epreseritatives ofthe:Admiriistration wilf be- ·,. ·
nieetip.g With incjustiy and members of~ol!giess·to qetermine the course of action for the next ·
. hhlfofthe' Sel?sion.. A fight is ·expected
software industry which 4as already begun
lobbying against bills introduced inthe Jlousewhich are more fa~orable to law.enforcelrierit. .
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. _ . _ Germany. Preyiously::reported as_irifo.m:1al; the;German Gove~entha8 now formaliZed
. . its :decisi011 not to take any pq·sition Otl th~ COnflqeritlruity aspeCts. of encryption durfug 'tllis: -.
-· ·___-· · gbvernment; all·decisioil$.aie·pendirigu~til iate1Q9si· During this interim·period~ there• win be
. . no.dbrries1ic regul~tionS
encryption._
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_ • United Kingdom~· TheUK.'s publi~\consu.ltation periodi~ taking lo11ger than-expected;
-· the current plan is to s~bffiit a proposill to.Miriisters before. the end of the year.
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_ __ _ _ . Canada.- 'fh~ Government will begirt a public collSti!Uitiori period sooit The -pl~ is te> ·
_ .present ·Ministers witl1 a t~ge of policy optiOnS;. They expect to have ·their policy annblmced - ·· ,
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· .· early next year:
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Sweden. A report from an inte!~rillnist~rlal group stUdying encryptionis now outfor
· public consultation~ . The Swedish govermilerit has decided toleaye the discussion of . _ ·_ _ _
confidentiality untilaJater dateto avoid coirllicts\vith in~mational policy di.scussiori.S. V1ewedaS an.nnporlant instrument iriadd.fessing lawenfotce:mentrequireiilents, export controls wili ··
reJ:mun evertifthere are assenaar refonns: ·-There wiil be no restrictions on the uSe of . .
· cryptography domesti~aJly and n~ numdatciry ~e ~ftrusted third parties. - .
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. · ·Japan. Th~re has been no' real progress on encryption policy since the October meeting. ..The Justice Ministry is considering whether digital signatUre can be used as evidence 'in court. 1 •
· The~e is a Diet proposal wJ;lich has· yet to be introduced to authorize the- interception of · . '_
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.communications when tised in crimitial activities; Lastly, Japanese indiistzy, suppm:1:ed by MiTI
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·through its electronic.cortrmerce proj~cts, is ~eveloping d~ta recovery systems for commerc;al·
purposes;
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·• The Netherlan4s. J11ere have been riosignificl!'fltdevelopmeil.ts since the lastnieeting.
·. A report and the conclusions of the TIP pilot projectwill.be delivered . to the Government before
.. ·the end ofthe year.
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.. ·.France. F:r~nch decreesori ~ncryption cmd trusted tlllrd parties· will be infor~e before the
ehd of~e year; Th~ French williiberalize the import, ¢xpornmd domestic use of all encryption:
. . ··. .below 40-bits; all . ~trong. encryption products will be strictly controlled •. f These rules· ~pply to
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. both hardware and software.
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·. >As chair~ David·Heridon ofthe_U~ repqrted on the recent activities of the ~orking .group, .
noting that the meeting teport·provided.to the seniors had not been Cleared With the other ..
rnenjb~rs of the group 8_nct therefore, represe~ted the views ofthe chair~--· He acknowledgeclthe · , .
.· . sensiiivhy within the group ansirig fro~ tli~ varying l¢vels "of encryption policymaking among '
. ' . .. the participatiitg countries. The working,_gr;ou.P is cun:entlyfocused ori three tasks: c~mpatibility,
. among ¢ettificate.authprities(CA,.);· miniintritl co~1iaints o~ponfidentit:ility; and·the development
. of a_fii#n:e workJ)rqgtiun; The completioii~fthes'e~J.cs,.Wilfp~qllife ~ con8iderabl_e ru:llotilitof·
· pefso~al arid resource cotnmitment ofthe 'Yotkinggroup illel1iperS~ incl:U4ing support. froni the · ··, ' .
...
senior oftidals. :Hendon called on the seniors to provide feedback on the usefulness' ofthe work
.·. .· ; and g{ricJaric~ on
to proceed:··. All 'countries presentsuJ?ported conti~ued w()rk;. following are. ·
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·:
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._ · ·: . · ·
•. · . ·. · · ··· .· ·
. · specific rec~~e~~tions in e~harea. · - . ·
ho*
, _ Cmnmon Eiements Requiredfor.CACompatibilitY: An obvio.l.Is rriinimum:set ofcoriunon
criteria has not ern~rg'ed fr~:mi the group's disc1lssions. ~The groupha8 produced a mcitri}c. .
.
. comparirig .·criteri~:f.r<}rn several differ¢11f c<)untry pqlicies ipcluding Jiepnany, ·Canada and :Japan. •\
·. Whiie_ort'its surfacethe
shqwscot1S1stencyinthe ~electiollof.~riterla,there.are significant'•
differences In techiiical,·politi~t\rand leg~ :approaches; flendon expre~seci th~ ~iew
work :
is 110t duplicative of\york underWay in other fora. and coUld serve as-~ tis~ful guide for other
_countries as they de:velop their cA criteria. He offered t:ltat this workmight compliment work
1IDd~i.wayin t11e OECD or tJNcrrR.Ai on'rehited infrastiucttire issues~ Gern1ariycalled for ..·.
. a.ddi1icmal work on'de:finingprecisely what meant bythe terinskey recovery agent, trusted
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thfrdparty' and certificate authority.
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. · The group agreed that more work would be required to nieet fu.e. o,bjective to have a final
.product introduced at the OECD or uNCITRAL sometinie Ia:ter'in.1998. After their next
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meeting in late JanuarY", the working group will then decide whether the document cari'be
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approved by written procedure or requires further discussion atthe neXt senior officials meeting ..·
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.·Minimum Constraints on: confidentiality. Hendon began the discussion by reiterating the
concerns of several participating countries in discussing the encryption and confidentiality issueS.
Appendix 2 ofthe Chair's repOrt, Constraints'on Arcllltectures for Confidentiality, btiiids on the.
·· work of the European G-5 {France, Germany, the Netheflands, Sweden and fue UK) and reflects
re~nements.,offered by Canada, Japatumd the l)S... It serve~ to further the under1sianding of the
.necessary elements for building compatible key management' infrastructures. Germarty reminded
. the groupoftheir view that digital signatUre and con:fideJ1tialityshouldbe dealtwith as ·separate
issues and provi4ed a Written stateinentto countries which underscores this View. (See attached.)
.. · .· . Amb~sador,Aaronnoted that this work i~ not being carrie,douJ in any ~thet fora;·itwas
suggested thatcduntries lise the final pr~du~t in their,encryptjort'discussiol1s with others . .· .
E~opean Commission', Australia, Israel an~ Russia. , The ~oup agreed that the . ·
including
final product wiiltake the fonnof a "non..papee' SO as llOttO C1Jmmit COuntries to an official;
public position; the ~lion-paper represents the 'fthinking'' ,ofcountry experts involved in this issue.
~earing. tl:J.is .In miri.d, the \Vorl9ng. group was tasked to prepare a11lntroductory statement to . ·
·· ·
- · ··· · ' · ·
·
··
· ·
· · · "frame~' tl1e ·non-paper. ·
the
F~ture Wbrk. Appendix 3 of the diair'si'epor;t is a list of eightproposals<for future
. goverrunerit~to-govemmel1t cooperativeprpjects. These taSks would be ~efu16utare very .
resource intens~ve. .The worJ,cmg :group c~lled for seniors' gUidance in ideritifyiQg those taskS of
··Ule .lDOSt t,ttilityto the pamcipatffig COuntrieS 'and those whiqh COuld be l~ft to 6fuer intematipnal ·.....
org_anizatioris~ ·
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. . ·. . · The sewors agreed on the.iniP,Ortance.arid compleXity ofthe work, approvfug a . ,,
. coritili,UB.tion ofthe group~s·actiVities through 1998 while at the same #~lie re~ogciZihg.the .
. . . resource coJiStraints. oftlJ,e .xnember9ountries.. The working group was instnicted ~() . deveiop a list
·
·• ·ofpriorities based::c:m the u,ts~ otitliiied iU, f\ppenclix 3. Inspired by (iermafiy's ()ffer tol~~d the >. ·
. work on item 6.,.$tatus Papet.qn the Legislatimi andProp<;:~sais on Digital Si~ature, the us .. · ·
suggesteQ, and the p~dpaUng C()untnes ~greed,: tlf~t countries voluhte,er-to lead' the agreed upon .
. tasks. . A d~fuiled w{}rkprogi~ "¥.11 ,be p~~sen~ed at': the next senior offiCials ni~etirig. .· .. · . . ·
,:_,
Report fro~ w<-rking Gf~up on Exp~l-t C•nltrols '
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Ambassador Aaron called on .To~ Barker, head of the US delegation to the Wassen~
Arrangement, to provide background on the 'Arrangement and pt;ospectsfor agreement at the··
· ·· Plenary meeting; December 9.-10 in Vierina. Barker emphasized tlie impo$hce of Close ; ·. ·
.. coordination }>etweenthe seniorencryption.policy officials and the natioll81 delegations to .
·:Wassenaar. .
. ..
Ani.bassador Aaron then provid~d the us views on the working. group's framework .·
. .
proposal. He began by reviewing the timeline for the Wassenaar ·process ..· Firs~ if the group
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. -.agrees, a.proposal wotillf be p~t forWard at th(! Wa5s~naarPlenaiy m~yting (December 9.,1oy
~which lays out, in broad terms, common objectives for encryptionexporfcontrols. In February;
w~senaar encryption experts will begin meeting to r~fnle the technical ptopqsals· and. detelmine .
.·whatcompromises are needed to move ahead. Finally; iii Aprilor May, Wassenaar will begin
·listreview dis~ussions which willattei:IJ.ptto finalize changes in encryption controls over several
rrio~ths .. The working group Would C()ntinue to meet to further refine and flesh out!fleir proposal .
·
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in support ofth.e Wasse.naar disc~ssions. · ·
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Ambassador Aaron outlined h,is objectiVes for this framewo~kprop()sat First, the US .
'proposes:t6 tloseup the General SoftWare NoteJoophole by exchiding more-sensitive ·.
enccyption; at the same time, we would <Jecontrolless sensitive items. Second;, Wassenaar ,
members. would be asked to. agree oria Statement of Understanding which acknowl~dges.
. speCial relationship of encryption to publlc -safety.
Win allow couptri~s. that dep~nd ori
. Wasseri~ Ao"ari,gement as theirl~gal basisforexpor{controis to~ make changes that will take
·.·_ lC1W e11forcemenfinto account Third, Was~enaar rnembers·wollld ~so:a,gree on streamlined ..
.liceniin:g proced~es for key recovery .and sirn.ilar products ccin.sistent\vith laW enforcement _
.• _·interests
reach agre~mentt() implement additioiictl natibrlal controls to limit softw~e .· <.· . . . ..,. ·
..
.·_ .· enbcyption.exportsmuchlike the US,has doh~. Jim;LeWis, thair()ffue WoikiDg gro4p,pr6vided .
. iin oveiV;iew oftlie. frame\York proposalftir\Vasseriaa! deve!oped bytlie group. .·. . ' _. · . .·..
the
the :
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.· . · · · .' _· J~p~· sta~ecl t}iat ~e;g~ner;# id~ ·~ the P[9;POSal \V~re .acceptable,bu~ spe~ific- P<>.llitS : .
woul4 ·reqUite carefiil scrutiny; they support the :idea ofa coriiprehe:r;tSiVe prqposal pmvided it is
.
- ''Wel1~1J~aiided(- J~pail a8ked tb.afit8 proposal:for decq~trotiiilg l)Vp:~<f pc(y TV equipment be. · ·
. .col1Sidere4 .. adyante of<>btaining agreement on the c<>JI:lpi~hen5,ive p~~~ge,·callijJ.g .. thelJS.
in
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. to lift itS res.ervation atthe upcpmiilg' Wassenaar PJellarY· .G~pn,(lfly iridic~telf its support fot, .
_:m.~y-oftlie ideas in!tl?-e.propdsa!~ e.g.~'tliaten6typtiori.'ptodricts slioU}dremaih undercontro(a · ·.
- reyiS.ion to the Gen~r~ Soft.yar.e Note exC1ud4ig $"ong em~cyption·produets; Cll1d d~control of.··..·
.•.
_· . ceitafu.56~blfproducts. Thopghunabletq.co~spopg<;)I':ihepJ:opos~,~th,e N~therlands:agreed. that .
·... the·GSN needs·~ ieview and there '~sa I)eedfordecontfol·ofcertairimass~rriaiket encryption·._ . .• ---·
_·. pmdtict.s, c~utioniJig countries llQt topreten~-to cpntrol-thosejtem.s 'Ylllch ca@otbe controlled.' .·
' The' blltch couicl'a1:m. accept~ S1:(itep}ent ofUnderstaitdilig ack11owledgifig' htw' enforcement. . . .
- int~rests' ~s long ~they were not ~bilged to follow it. ·~ailadanotedihafnational discus~ioriS are -.untieiWay on each element oftb,e' propo~al, there was fi() resohiP,on':yet ~d they were therefore.
· notip .a:pos.i~on to co.:spon5or the-proposal. The Canadi~ also Ii()ted that the issue .of ·
,''co'ntrollability''~ oferoductSwhich
be transferted oye~ t!i~ p~one orilit~met mrn;t be.
considered in. any discussion of amending the Generiil:. SoftWa:re Note> .•
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- .-. - ,Inth~ 'end,: the UK, France and Sweden agreed to co~spqnsor the proposal along With the ·
·US at tl16 upcoming W
assenruir Plenary. With minor' modifieations: 'tJiese colintries. agreed to
table
paper otitliniilgthree broad objectives for reformulating encryption controls in
W' ~seriaal" including: updating category 5 part 2 to reflect the use of crypt'ography in the modem-·
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~orld; refining the Ge~erru.Software Note to exclude c~t~gory 5.2; and ackllowledgi~g in
Wassenaar that law enforcement is a ~~id reason for control ofcryptography. · Other coun~es
agreed to provide statements ofsripport. The group agreed to continue work on a more detailed
teciulical proposal \\'hich inchides suggested language for rewordirlg categoiy 5 part 2, further. ·
decoritr9lnotes, an(J aStatemenfofUnderStanding for·streamlinedlic~nsing procedures.·
,·continuing this work, the workii:tg group was tasked.to examine the issue of40-bits versus 56bits
a5 the -control baseline and prepare a set of defmitions ~ requested by ·the Getmans. Canada ...
agreed to prepare a paper on the 'questions .arising ·froni. (JSN temis. such as. "su]:)stantial. support"·
ahd"installation by use:rs:·~ The working groupwas tasked with brid'g~ng differences ip order to .·.
put forward an a&re~d upon text to th.e·Februazy meetit;Ig of the Wruisenaar en,tcyption experts
group.
In
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·. Oth~rBusiness
.., ,.:·:'
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.. •Befor~ adjour:ning $e meetp:ig, Aritb~sador Aaron rerum~d to.the question of mvlting: . ·
· additioriaJ. members, 'specifically SwitZerland, Australia at;Id Russia, tojointhe gtoup~
Ambassador Aaron reported hjs bibiter~ me~ting ·~th the· Swiss. ; H~ noted that the Swiss
· ·appreciated the· opportunity to cori.Su!t and w-ere· quick to clari:fy their position reg~gdiJ:lg the
remqv~llpf.encryptioti froriJ:.the $¢~i~ye. List. In fact, the •SWiss a.re notcalling for re111oval. of ;·•...
•.e~cryptiottratlier'tliey are proposing that encryption ieD;J.:lln on the Se~itive List artd.that .' . .'
'. '~transferrepol1ing" ~equireril~nts ·no· lon~er be reqhiretJ.~ · Reg~dih.g ~possible Statement of ·
· Understandfug, the Swiss· indicate<i t:rult:tliey too \l(Ould need an international agreeinenttodeny .
.duat,use ep9tyption ~xportS to non~t3fg~tcountries pasedon public safet}' grounds. Th.e group
~eed that $\Vitzerland and Austra11ash()plcl l>e invited'aild it was pre111attrre to. invite Russia .
. \\lhlle agredng in principie,Jap~ ndt~cithatili~ywouldhcwe toconsllltwithintheirowri · .. ·.
·. gdvetnm.ent and .promised t.o rephrt 'ba~k to
Lewis, the Chair of the Workitig Oroup ori
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Responses by 6ther countries to u.s.· statements:
Sweden stated its support and also tabled a paper on. its own. policies to
promote the voluntary use of TTPs. :,
The UK highligh-ted .the. importance of reform on: . emcr}tption matters.
·. ··. France was silent· most likely due to lack on internal c.oordinatl.on within .. the
·.,.
French·governmei'it (but .France's senior encryption official has ·assured
Ambassador Aaron that ·France is' cl6'sely a'lj,.gned 'with the u.s.) . .
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Australia made generally s';lppor'ti~e statements: .
·,Japan· we:J.comed the· ini:dati ve wj, tho.ut. ~ndorsing sp~cifics ; in the P<tper.
It.
···,also advocated the .need to ·remove •reporting .requirements for· smart cards
and other consumer products. · ·
·
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Canada indicated that it .was iri the. process of;-de·vel,oping. a national. p(,l.i,cy ·.
. . whidi it . ctbes not 'expect to. complete before February~
.
The N~~erl.~ds strongly endorsed the {). s. iriitiati ve while noting that
. 'sped.f.i.c lSSUeS WOI.ilq need further :wor~ pefo:r:~ they 'c:ould .·be agreed~
.
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Germany stated that, i.t wouid h,aye tq :wait' i.mtil af,t:er its 1998, f,all nat~orial .
· elections before fo:tmul(ltizig_an e11crypti6n·policybut_welcomed the ·U.S.
, ird.tiati ve. ·. · ·
.
Russia~ ~f~er
the ·ple·nary,· welcomed u·.s.:· sugge~tions: for, bilateral encryption
. c:ol1sultiitioiis aridexpress~d-appreciation_for~the,h~gh•levels at which the
tr.. s ... is.'handlirig this. issUe.
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Sw:i,tzerl.and,: in {bilate_r~l JtLeeting, -.sa.tc:L.that while .they. 6o{lld not
.
.'agree._to provide the._u.s.·_with,'encrypt~on keys,_.'they co.uld support'law
.Emforcemeht. access to plai~te~t as· a principle for encryption exports. and
would be· willing to provide dec:r.ypted·plairitext to u.s.· law .enforcement
agenCies.
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�Withdrawal/Redaction Sheet
Clinton Library
DOCUMENT NO ..
AND TYPE
001. cable
DATE
SUBJECTffiTLE
01/12/98
From AmEmbassy Manila re: Electronic Commerce (3 pages)
RESTRICTION
P5
COLLECTION:
Domestic Policy Council
Ira Magaziner (Electronic Corr;unerce)
OA/Box Number:
13118
FOLDER TITLE:
·U.S. State Department Cables
Rhonda Wilson
rwll7
RESTRICTION CODES
Presidential Records Act- [44 U.S.C. 2204(a)]
Pl Na.tional Security Classified Information [(a)(l) of the PRA]
P2 Relating to the appointment. to Federal office [(a)(2) of the PRA]
- ·. P3 Release would violate a Federal statute [(a)(3) of the PRA]
P4 Release would disclose trade secrets or confidential conunercial or
financial information [(a)(4) of the PRA]
PS Release would disclose confidential advise between· the President
and his advisors, or between such advisors [a)(S) of the PRA]
P6 Release would constitute a clearly unwarranted invasion of
. ·. personal privacy [(a)(6) of the PRA]
C. Closed in accordance with restrictions contained in donor's deed
of gift.
PRM. Personal record misfile defined in accordance with 44 U.S.C.
2201(3).
RR. Document will be reviewed upon request.
Freedom of Information Act- [5 U.S.C. 552(b)]
b(l) National security classified information [(b)(l) of the FOIA]
b(2) Release would disclose internal personnel rules and practices of
an agency [(b)(2) of the FOIA]
b(3) Release would violate a Federal statute [(b)(3) of the FOIA]
b(4) Release would disclose _trade secrets or confidential or financial
information [(b)(4) of the FOIA]
b(6) Release would constitute a clearly unwarranted invasion of
·personal privacy [(b)(6) of the FOIA]
b(7) Release woUld disclose information compiled for law enforcement
purposes [(b)(7) of the FOIA]
b(8) Release would disclose information concerning the regulation of
financial institutions [(b)(S) of the FOIA]
b(9) Release would disclose geological or geophysical information
concerning wells [(b)(9) of the FOIA]
·
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CUNTON LIBRARY PHOTOCOPY
�UNCLASSIFIED .
Printed By: Andrew J. Weinschenk
·ACTION CIP~OO
INFO
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ANHR-01 ·sR.i?P-,06 EAP-01
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12~743Z /38
R 120738Z JAN 98
FM AMEMBASSY .MANILA
•To SECSTATE wA5HDc 4491
INFo usooc wASiroc
WHITE. HOUSE WASHDC
USMI$SIC)N GENEVA
AMEMBASSY. TOKYO
ASSOCiATION OF SOUTHEAST~ASIAN NATIONS
UNCLAS E F T 0 SECTION 01. OF 02 MANILA 000315 ..
.SENSITIVE
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STATE ALSO PASS USTR -PAPOVICH
STATE ALSO FOR EB/ciP - WEINSCHENK
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·USDOC FOR 4430/IEP/EAP/OPB/KELLY
USDOC ALSO. PASS NTIA
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TAGS : • ETRD' ECPS ' RP
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98 state.oo?o6
. MANILA . OJ. OF 02
. ' l..
PROTECT
(ui A~tion
315
request.
Please see paras. 4 and 7 .
. Sunimary
2.
(SBUl summacy: Th~ GoP is in the proce~~ of
establishing,an interagency/private-sector task force·to
discuss the policy framework for and the promotion of
eiec;:tronicc;ominerce in the Philippines. ·nepai'tmentc;>f
Trade arid Industry (DTI) Undersecretary Jose Juliano, who
is· charged with developirig.the task· force, told' us he is
using.the.EiectronicCominerce'-Promotion Council of Japan·
as a moci~L 'ile does not eXJ?ect the 'body to tackie
stibstani:iye issues. until. mid-1.9.98, after the May 1.998
Presidential and. Congressional elections'. · Econoff passed ·
Jull.ano· a copy of· the U.S.:.OEU Understanding on Electronic
Commerce. Juliano will be-traveling to-the Uriited States
in Febz:uary to participate in a Microsoft-'organized
program' for. foreigri officials·: He. asked our. assistance,
··in suggesting West· Coast-based private-, sector individuals
or. firms .he could talk with about •big picture•
'
electronic commerce .issues. End 'summary,·
UNCLAsSIFIED
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�. UNCLASSIFIED
'J?rinted By: Andr.ew. J. Weinschenk
Task Force for lj:-comme.rce
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3. (SBU)
In October, DTI Secretary·cesarBau~ista· tasked
DTI Undersecretary· Jose Ju.liano to set 1up a joint GOP .
interagency and private~ sector task force to
discuss/promote electronic commerce. Econoff met with
Juliano December 1B to' review the ·st.CI.tus o·f the task
force. ··Juliano showed us a draft .executive order
estabHshing the task force, which- had been discussed
earlier that day by an interagency.group. He· said. he was
'using the Electronic Commerce Promotion Collnc:i,1 of Japan:
as . model for the task. force. .Juliano says the . exact
composition of. ~he task force·'is ~till being developed
and discussed.interag~ncy, but'he showed econoff a
proposed l'ist of government representatives, as .well as .a
longer list of possible.private-sector invitee~, drawn
heavily from the financial and. retail trade sectors'...
a
'(SBU) Juliano noted the Phi·lippines has riot begun to
tackle.in detail the policy arid regulatory challenges
that need to be addressed to.create·a hospitable .
environment for E.-commerce to flourish. He hopes the· .··
creation 'of the task'-force could provide a·.'stimulus for
the ·.di'scussion of . such issues. We passed juliano -- and
other relevant GOP offiCials -:- a copy of, the recerit ...
u.s.,.EU ur:iderstanding.ori Electronic commerce, and noted .
. it might provide useful guidance on .some issues.. Juliaqo
confided he 'wanted to better under~?tand the universe of·
services that could be.considered·E-commerce. He noted·
he planned to partiCipate in. an upcoming pr~gram fo:r '
foreigh officials (apparently organize·9 by Micl;osoftl ii1
, February in Seattle .. .,He asked· if we could' suggest West· ·
·.coast'-based pr:ivate 'sector' contacts.:wlio would be wiliirig·
to discuss with him "bi~fpicture" E"commerce issues.·.
. (Comment: · juiiaho told us .he plans to retire before the
. middle of 1998'. but. said he wcirits to' set up a solid basis
, .for proinotilig E.-commerce before he ·leaves. :End. comment. l
4.
·IT Board
S ~ . (U) Juliano explained. the .. task force would be a
. component of. a "National Information .Techri.ology Board, " a
:proposed entity that would replace the moribuqd existing
National Information Technology committee~ •· ·The impetil~
for the Board comes :in part. from the private sector; :one
local information technology executiv.e said the. GOP needs
.a body. that· can eftecti vely coordinate i:T policy among
.
various g<:'vernment ·agencies.·: He said the existing,
MANILA
02 OF 02 '315
·
..
committee, wli.:ich is •fin.ancially and aruninistrativei~ ...
dependent on the ·Natiorial.Computer c~nter and.whose
membership is heavily weighted towards the ·goverriment,
hall failed:. to provide the ieadersh:ip .he· bei:ieves- is:
needed. to ensure policy implementation. A paper Juliano
·shared with us,. prepared by a local pciiicy foundation,,
notes th~ existing comniittee has met.infrequeritly, due to
·the myriad other responsibili'ties of the senior officials
designated ·to participate in it,
·
·
·
'
.·
.
-
..
..
6. ( S~U) .While· p'recise details of the new Board ·are still
being discussed internally within the GOP, the proposal
would place the Board within the Executive'Office of the
President, and wouid "be the lead agen~y .on. all IT.·
matters, provide policy·.recommendations to the national
. UNCLASSIFIED
2
CLINTON LIBRARY PHOTOCOPY
·:.-:.··
�UNCLASSIFIED.
Printed By:
Andrew~-
Weinschenk
leadership, ·formulate ~ified int~rdepartmental plans, ....
and facilitate implementation.". It. suggests private.sector representatives compose the· majority of the
Board's members, and the Board's chairman be from the
.private sector. The Board would be complemeritedby a 50mEm!Per industry advisory council. The proposal also
suggests the Board have ·permanent staff·, and closes by
asserting both Singapore arid Malaysia (perceived rivals
··of the. Philippines. in the IT sector) have "created
.
effective government structures to' turn their plans irito
·concrete r·ealii::ies."
.(ccimmen't: It.. is not ·obvious 'that
·placing the Board within :the Executive Office of ,ihe
President would raise .the· profile of the .issue·.. Nor is
there any. guarantee of adequate fUnding and staffing'. or''
· of a. paramount position in interagency debate.
·.The ·
/ Exec.¥tive .Offipe, already contains many boards. and
· i:lgeric~es. End comment. )
.,~·
:.Action. Request .
·, ·'
·.
'
..
--------------
.
·,
,
.'
,
I
'
,
.
.
7.
(U) ·We would app;eciate information'· on W~st ~cast
based,· private sector con~ac:ts, in. business or academia,
who.:are recognized "authoritie.s" on E-commerce issues,
.whose names we couid pas·s. 't;o· Undersecretary Juliano; .
Embassy appred.at7·s. Washington agencies' assisi:.anc~ ~ ,··
.HUBBARD
...
.'
·.i
;·,
UNCLASSIFIED
3
CLINTON LIBRARY PHOTOCOPY
�Withdrawal/Redaction Sheet.
Clinton Library
. DOCUMENT NO.
AND TYPE
SUBJECTffiTLE
DATE
001. cable
From AmEmbassy Beijing re: New PRC Internet Regulation (partialpp. 1-2 of7) (2 pages)
. 002. cable
From AmEmbassy Singapore re: US-EU Joint Statement. on Electronic
Commerce (3 pages)
RESTRICTION
· 01/07/98
- PS
01112/98
PS
COLLECTION:
Domestic Policy Council
Ira Magaziner (Electronic Commerce)
OA/Box Number: · 13118
FOLDER TITLE:
General Cables
Rhonda Wilson
rwl18
RESTRICTION CODES
Presidential Records Act- [44 U.S.C. 2204(a)]
· Pl National Security Classified Information [(a}(l) of the PRA]
.P2 Relating to the appointment to Federal office [(a)(2) of the PRA]
P3 Release would violate a Federal statute [(a)(3) of the PRA]
P4 Release would disclose trade secrets or confidential commercial or
financial information [(a)(4) of the PRA]
PS Release would disclose confidential advise between the President
and his advisors, or between such advisors [a)(S) of the PRA]
P6 Release would constitute a clearly unwarranted invasion of
personal privacy [(a)(6) of the PRA]
C. Closed in accordance with restrictions contained in donor's.deed
of gift.
PRM. Personal record misfile defined in accordance with 44 U.S.C.
2201(3)._
RR. Document will be ..reviewed upon request.
Freedom of Information Act- [5 U.S.C. 552(b)]
b(l) National security classified information [(b)(l) of the F(HA]
b(2) Release would disclose internal personnel rules and practices of
an agency [(b)(2) of the FOIA]
b(3) Release would violate a Federal statute [(b}(3) of the FOIA]
b( 4) Release would disclose trade secrets or confidential or financial
information [(b)(4) of the FOIA]
b(6) Release would constitute a clearly unwarranted invasion of
personal privacy [(b)(6) of the FOIA]
b(7) Release would disclose information compiled for law enforcement
puryoses [(b)(7) of the FOIA]
b(8) Release would disclose information concerning the regulation of
financial institutions [(b)(8) of the FOIA] .
.
b(9) Release ~ould disclose geologicatrq;eoR}\fjif~~?{rfrflj9t)TOCOPY
concerrnng wells [(b)(9) of the ooiAljHv '
I
.eL!ItT8fl tll!!!ilftl C: FilS IOCOP I
�.Ol/08/~8
ll:04
'0'202 647 0158
@]003/009·
EB/CIP RM2533A
UNCLASSIFIED
·Printed By: Andrew J. Weinschenk
ACTION EB-00
·INFO
AIT-03.
ARA-01
CIAE-00 CIP-00
OASY-00
EUR-01
F.CC-01
IMMC-01· TEDE-00 · INR·OO
ADS-00
NEA-01 .. NSAE-00 OIC:-.02 ..·. SS~.00
STR-00
SA-01
/013W
.L------------·----OCB2EA 071706Z·/49.
R 071006Z JAN 98·
.
FM.AMEMBASSY BEI~ING
TO SECSTATE·WASHDC 9365
INFO AMCONSUL SHANGHAI
AMCONSUL.GUANGZHOU
AMCONSULHONG KONG
. AMCONSUL SHENYANG
uso0c WASHDC ·.
USMISSION GENEVA
USIA WASHDC B924
SCIENCE .COLLECTIVE
. :·t
UNCLAS
LOG-00
SRPP-00.
I0-00
SVC-00.
AF-01
EAP~Ol
SECTIO~ or' .OF
ci6 BEIJING 000374
SENSITIVE.
STATE PASS USTR FOR CAS~liDY;- LUND; CHENG,. FIELD
STATE PASS FCC FOR.WU
.
USDOC ·FOR 6.320/TD/TAI/RSTECHSCHULTE/JHENRY
usooc FOR 4420/ITA/MAC/OCEA/DFOREST
USOOC-FOR 4!'21/KCLAMAN
'
. US:I;A FOR EA . '
GENEVA PASS iJS.TR/Tf>GLIANI,
SEL~ ••
··N/A·
TAGSi ETRD;:.'EINT, ECPS·, WTRO, CH
SUBJECT: :NEW .PRC INTERNET REGULATION
·c "E.,O;· li958:
REF: FBIS
BEIJING'
1.
lii2su
Ol: .OF 06
DEC .97
374
SENSITIVE BUT .
..
. ·'
. UNCLASSIFIED.
PROTECT ACCORDING):.Y.
isBUl ·stn.u.wi.;;' THE NEW PRC, rNTEi~ET. REGULAT.ION ADOPTED ON
DECEMBER 3.0 DOES NOT APPEAR SIGNIFICANTLY DIFFERENT FROM THE .
. INTERIM REGULATioN iT" REPLACED ·m~FoRMiL EMB.Assi ·TRANSLATioN· oF ..
.
'REGULATI'ON IN' PARA 8, FULL CHINESE TEXT OF REGULATIONS AT:
HTTP://WWw. EDU. CN/LAWGLBF. HTML) '•
EMBASSY CONTACTS AT, LOCAL .•.
INTERNET SERVICE PROVIDERS~- u.s. INTERNET SOFTWARE COMPANIES, AND
' TECHNICAL ADVISORS TO THE PRC GOVERNMENT ALL OOWNPLAYED THE NEW
~GULATION' AS<. ESSE~TIALLY ci.AR:iFicATIONS. OF PREVIOU~·. n~TERIM ·•. ·
,REGULATIONS, WITH RESPONSIBILITIES, PROCEDURES AND. PENALTIES'
SPELLED~OUT IN GREATER DETAIL. .AT. THE SAME TIME, OFFICIALS -
· 2..
[.
.
~.
:;:~~~,T:ri~L~R~~~;iii;g,;~~N;~~;~~~Sp~~~~ ~~~~~~ ~~E
·.;.:.-·""
PROSCRIBED INFORMATION. AS ONE OFFICIAL POINTED OUT: IF DETERMINED
ENOUGH, A PERSON WILL FINO. A WAY. TO OBTAIN PORNOGRAPHY, IT IS
~IMPOSSIBLE TO STOP THEM, ALTHOUGH THEY cAN BE ARRESTED ~TER. END
SUMMARY.
---~----~--------~
THE NEW REGULATION
.----~------·~~~--~.~
:·.
ON DECEMBER 29 CHINA'S MINISTRY.OF PtJBLIC SECURITY ANNOuNCED A
-·FIVE-CHAPTER, 25-ARTICLE.REGULATION ON MANAGING THE SECURITY OF
. INTERNATIONAL COMPUTER INFORMATION .l'lETWORK·CONNECTIONS' WliiCH
'j,
UNCLASSIFIED:'
.1
CLINTON LIBRARY PHOTOCOPY
�.01/08/98.
11:0~
'0'202 647.0158 .
EBICIP R~12533A
141 004/009.
.
UNCLASSIFIED
Printed By: Andrew J, Weinschenk
.
.
OUTLINED DUTIES AND RESPONSIBtLITIES OF CHINA'S INTERNET SERVICE
PROVIDERS AND PUNISHMENTS FOR INTERNET USE TO LEAK STATE SECRETS,
DAMAGE,STATE INTERESTS, THREATEN STATE SECURiTY OR DISTRIBUTE
HARMFUL INFORMATION . • ALTHOUGH REPORTED.OUTSIDE OF CHINA AS. A
"CRACKDOWN" ON INTERNET USAGE, THE NEW REGULATION CONTAiNS NO NEW
PROHIBITIONS,., AND GOES BEYOND THE PREVIOUS. iNTERit·f I:N'l'ERNET ..
REGULATION ONLY IN.THE.LEVEL·OF.DETAIL ON PROCEDURES, '<
. RESPONSIBILITIEs AND PENALTIES ·FoR VIOLATORS.
1niFoRMAL EMBASSY
TRANSLATION OF REGULATION. IN PARA 8 AND AT THE EMBASSY WEBSITE
HTTP:i;www:REDFISH.cOM/USEMBAss'i~CHINA/SANDT/NETRE:G:HTM, FULL
· CHINESE TEXT. OF. RJ;;GULATIONS .AT HTTP://WWW .EDU .CN/LAWGLBF. HTML) .
(SBU) THREE BEIJING INTERNET SERV::ICE. PROViDERS SEPARATELY TOLD.,
EMBASSY THEY DID NOT' EXPECT THE REGULATIONS TO HAVE ANY SIGNIFICANT
. IMPACT ON THEIR OPERATIONS OR ON THEIR CUSTOMERS SINCE THE NEW
REGULATION.CONTAINED.NO NEW RESTRICTIONS. ONE SERVICE PROVIDER
sAID THAT. THE NEW· REmiliATION HIGHLIGHTED. A NEED 'ro IMP.ROVE THEIR
REcoRD. KEEPING.
HOWEVER; THEY' POINTED OtJT THAT soME ASPECTS: oF THE .•
REGULATION, SUCH AS HOLDING THE SERVICE PROVII:iERS RESPONSIBLE FOR .
·siTES THEIR cusTOMERS VISITED ONLINE, WERE UNREllliisTic: ·THERE
WAS NO PRACTICAL WAY TO MONITOR THE ON-LINE ACTIVITY .OF CHINA'S
.
H~_DREDS ·oF. THousJ\NDs of INTERNET,YSERS. · Tim ~ERVICE PROVIDERS
WERE ALREADY RESPONSIBLE FOR REGISTERING THEIR CUSTOMERS WITH THE
MINISTRY OF PUBLICSECURITY AND· ENTERING THE AIJORESSES OF BLOCKED
siTES . IDISTifi:BuTED BY niE MINISTRY oF PUBLIC sEi::UR.I·TYl INTO THEiR ,
·.· NETWORK SERVER COMPUTERS;' BuT THEY HAD NO WAY OF KNOWING WHAT SJ;TES
REMAINED UNBLOCKED OR wHAT .OTHER ACTIVITIES THEIR cUSTOMERS,.DlD
ONLINE.
.i
. 4.
WHAT
.•·.I
~--~~~--~~~~~------~-~---~~----
i,:'·
··.· 5 . . ( SBU) DEPUTY SECRETARY .GENERAL OF .THE STATE COuNCIL . STEERING
. COMMITTEE OF .NATIONAL INFORMATION' INFRASTRUcTuRE. YU RENLIN TOLD.
EMBOFFS . ON DECEMBER 2 9 ' THAT THE NEW REGULATION WAS /RELATED TO A . ·.
· -.R.Ei.liJCA'i'I,()~ of coNTRoLs oVER :i:N'i-ERNET usAG~)'Nl'EiNDEir>'io. E:~coURAGE ·
'MORE· WIDESPREAD. INTERNET •USE. ·· YU SAID INTERNET POLICY::;MAKERS ·,
"· R.l!:cooNI.zED THAT :i:T wA.s Ir.iJ?ossi:BLE
:En::.oci< i!.X:: osJEc'iroNAi3£Ei <
nmiR.NEi± SITES AND THERE .wERE MULTIPLE WAYs'J\Rowo
BLOCKs. .. ,.
~c~o~;~G ~C> 'Yu THE REGui.Ah9~· ~Jlo'stsci~c>N;c. 'ai:.o~i<iNG
cE:iiTAIN
PORNOGRAPHIC I VIOLENT OR St.JBVERSIVE. WEB SITES WERE. INTENDED .TO'
.DETER PEOPLE :.wHO MIGHT CASUALLY ACCESS SUCH· SITES,' BuT. THAT ,.i :i:F AN ..
INrliViDUAL IS INTENT . ENOUGH ON' OBTAINING PORNoGRAPHY' THAT PERSON
.wiL~. FIND A· wAY To ~Er r± ~ · ·• yq
T~i' ~~T..·. TEffiNoi:.()GY MliDE
IT FAIRL'X" E~!)YTO MONITOR WHICH INTE~ET'ACCOUNTS WE!l-J?: USED .TO. MAKE
ONLINE. VISITS TO RESTRICTED SITES,.cALLOWING THE PUBLIC SECURITY
• ·:t.irNis'rR.Y' :T.a: GAT.HER; E:v:toE:Nc~ suFFiciENT 'ioR 1\N' A:R~s-r~ /
-ro
sucH
oF:
.Apol!;ri,
:.
.. \ .
NOTE BY CIB: PARA .3 ISN'T MARKED. CORRECTION TO FOLLOW.
BEI~ING
02 OF.06
374
6.
(sl!u> •HOWEVER, }u EMPAAs:izED THAT. IN RECENT MONTHs THEPRC HAD
·LIFTED aE:sTRrcrioNs oN sof.!P: PREVIousi.Y BLOCKED iNTERNET ::s:mi:s ·AND
. HAD DECIDED IT WOULD .NOT BLOCK SITES UNLESS THEIR 'ERRORS!. WERE
REPEATED. YU IDENTIFiED RECENT PRC EFFORts ·To EN<=OURAGE usE. oF . THE
INTERNET. AS INCLUDING NETWORK UPGRADES I 'LOWER PHONE. LINE LEAsE
· PRICEs. us.AaE: RATES AND INSTALLATION CHARGE·s. NoTE: EMBOFFS HAVE
'ciBSERVED THAT THE CNN WEBSITE IS NOW ACCESSIBLE THROUGH SOME
INTERNET SERVERS, THi::lUGH.NOiAT OTHERS> THE NEw YORK TIMES .wEBSITE .
·
. :ts GENERALLY BLOCKED, WHILE THE WASHiNGTON POST WEBSITE: IS NOT.
. END NOTE.
--~~--~·-----~-~-~----------~~~-~---~-·~------~
CHEAPER RATE~ FOR USERS AND. SERVICE PROVIDERS
",·
:UNCLASSIFIED .
2
. CLINTON LIBRARY PHOTOCOPY
',:
�\.,,.
14:24
'-'Q,.t/13/98
. '5'202 64_i
.
CEA•01
-CIAE-00
SRPP-00 · EAtl-oi
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.
Print:ed By: Andrew J. Wein!lehonlt·
INF.O. LOG-00
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P 120104Z JAN. !18
FM AMEMBASsy', SINGAPORE
TO SECSTATii: WASHDC PRIORITY
INFO usnoc WASHnc
!4J OOi/010
EB/CIP RM2533A
015~
ciP-00
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0073
APEC .COLLECTIVE .
USM_ISSION. GENEVA
AMEMBASSY PARIS
. .
.
.
.
tlNCLAS. SINGAPORE 000123
USTR
GF.NEVA.FOR
PARIS , FOR' OECD ,
'
·.· ,· .,
:·
USTR _FOR DON ABELSON.
_STATE:. PASS
.,_·,
I','
USDOC FOR 4'130/IEP/RAP/OPB/HVINEYAR.O ·
·E.O •. 1295~!
N/A
ETRil_, EON. SN.
•' SUBJECT: YS·EIJ JOINT STATEMENT ON li:LECTRONIC COMMERCE
. TAGS : ECPS.
.• RelF:
ST~TE ;0~
1.THIS.
IS,AN.ACTION REQUEST- PLEASE SEE PARA.3~
.
··,
...
'
:
~-. t
. ·.·-~~~~~~~~b~~L!r:E~E~~Lu;.J~r~ci~:cir~f~T~~~~~if~~~O~E·
n'EVELOPMENT Bc:iAR.o SENIOR. DIRECroR. FOR TRADE POLICY NG kri-1 Nii:O.
Ms: N~ iiEAri~. :17- ,~6iliM±Ti'_ii:E: ()N -r!Uiri:e: rs,suE:s w:i:rJirN _sr~GAI>oriE ~ s .· · ·. ·. .··.
·ELECTRONIC--COMMERCE HOTBED/AN .INTERAGENCY TASK ·.FORCE RESI?ONSIBLt
FOR oEVEioPr:Nt; s'rrm~Pp!U:· s :e:~coMI'!e:RcE i?o~:i:cr. Ms; N'G 'AAI> No.· ·
IMMEDIATE:. COMMENT ABOUT TRTi:. JOINT STATEMENT, BUT AS!CED HOW THE
U; S.• : PL]\NNEj:l TO. {>.DvANCE THE: ,APE9 . WORK PROGRAM , ON. E -'COMMERCE •
SPECIP':ICAI.I..Y, SHE ASKED WHETHER 'l'HE SENIOR OFFICIALS WILL
DELEGATE WORK .TO THE-COMMITTEE ON TRADE AND ImiEST~NT (CTI) OR
WHE:i~ER THERE: t;Ot.l'Lq n A SEPiliTi TASK ~oac¢ 'ro .cooRDINATE
. WORl< OF MORE: SPECIFIC SUB-GROUPS ON. E~COMMERCE THAT WOULD REPORT ·
DIRECTLY. TO THE ~OM • . SHE SUGGESTED THAT THE LATTER WAY MAY BE
' PREFERABLE BECAUSE' OF THE LACK OF EXPERTISE .WITHIN THE CTI.
MEANWHILE.- .Wli: WILL:· CONTINUE TO MONITOR. SINClAPORE. S· STANCE ON !:COMMERCE ANri WILL 'r{E;.PqRT ~.y F[J'riJR:E. ii~droN To THE .ion-lr
·
. STATEMENT,
:,_.'·
me: ·
3. ·Ac'Tr.oN R.Eouisl'~::o:. WE· wotn.D APPRECIATE
WE CAN PASS TO MS.
(PARA.GRAPH ~)"ABOUT u.. s.
WHICH
j ••
RECEIVING INFORMATl:o~
NGiN RESPONSE TO HERQUESTIONS
PiJ\NS
FoR .JJJVANciNG:E:-·coMM~CE Iti.APEC,
i.
UNCLASSJ;FIED
• !,1
.1
CLINTON L!Bf{AIW PHOTOCOPY ..
�. ___Ql/13/ 98
14: 2_4.
, E!3/CIP RM25JJA
'B'202 6H 0158
Ill 009/010 .
UNCLJ\SSIFIED
Prineed By: Andrew J.-weinschenk
-Task Force for
E-co~merce
\
·--------.-------·-----~--
In October, DTI secret~ry Cesar Bautista tasked
!Jl'lde:i:'secretary Je>ae Juliilno to _set up :a: joint GOP
inierogelncy. and privai:o-- sector task force to · ·
discuss/promote electronic cornmerc'e.. Econo.ff met with
Juliano· :December lB to revie\.r the status of :.the tti:;k
force. Juliano showed 'ua' a- draft -executive ord'or
establishing the t.ask f{?r'ce'- which had been discussed
earlier_ that day, by_ an interagency group, He said he 1..1as
U!ling the_,Electroni_c Commerce, Promotion Coupcil of Japan.
ilS a model for the task-force, Juliano. says 'the·exact
compcis:L tion of the __task force is still beiri; dev~loped
and d'iscua:;ed interagency., .but he showed econoff
proposod· list_of'government represeritatives,.aswellas tt
longor list: of pos!lible private-sect_or invit:ees, dra~n
heavily froni th~ financial and' retail- -trade aeccors.-
3. (SBUl
D'ri
a
·· (St!Ol Juiianci not.ed the Philippiriea hail n~t begun to
tackle' in.detail the policy a~d regulatorychallengee
that need_to be addressed to create a hospit:able
·enyironmen,c fo~ E"commerce co flouris~. He ~op~s ~l'l~ · .
c:reaticin_ of the .task• force could prov:~:-de .a st-imulus for ,
the disciJss~.ori of such issues~ Wo- passed Juliano -7 and'
other relevant GOP officialD. ---D. copy of che rec~nt ..
U.S:r-EU understanding
Electronic Commerce, _and noted
ic might' pro":icie usefuisui9an'ce on EIO!Tie i1l3U~S. juliana
confidod he ..laric.ed to hotter urideretand the universe of
services. that could .be considered E.,- commerce._ He noted·
. h.!; '.pLill'ined to. pai::-ticipace iri an l.ipcomiilg prcigrain for
-foreign officials. tappaZ:entiy organiZed by Mierosof,tl in
February .in Seattle . .He asked if. we could.sugge3t _West:
c(:iast-baeed p:i:ivat:_e ae.ccor -6ontacts who would be "'illing
t.o dlecuf,il_ "!ith him ;;big pietui'e "- E_:..commere:e- i_3sues'- :.
(Comment: .. j{!lianci .t:old US he plans .to retire before the
middle. Of 1'999;. bUt: said he. wanis to !lee Up· a solid ba!lfs.
for promoting E-c'omm~rce befor'e he leavos. . End comment.)
4.
en
'.,
·.
.
..
.
(tn ..nlliano e.Kplained 'the task forte would, b~ a :.
com~oneiit of a. ··National i:nf9tmacibn Technology Soard;"
s.
a
proposed_ entity chat would replace .. the moribund ~~lsting
: Natioriill 'Information .TecJ¥lolagy, Committee'.. The inipecus
-for- the Board 'come3' in .part . from 'the:.private ,sector: one
loc~l information t.ochnology executive said.t:he GOt' .needs
a body t:hat. can- effectively coor.dinate IT policy .among .
Vilri:ous' g<:)vernrn<mt ,agendee~ ·He' said the, exiscing .•
MANILA. 02 OF 02.
ns
committee; whic.h i:J fi~~ncia,lly and ~dmiriinratively
dependent 'cin the National compucer Center and whoso.
memb€!rahip is·heavily weighted. to,arda che·goverririlenc,
. ·. has' failed 'to- provide t.he leadership ~e beli~yes is .
rieeded to ensure poliey iinplementat:ion, A paper Juliano
shared with us, prepared by a . local policy foiln:dation,
. !10,tes the exidting Coirii!lictee :has met infrequen-cly, du~ t6
' the' rtiyria4 ocher reaporisibilities 0~. ~he senior offidale
designated )::o •participate ~n>t.
.
.
.
6; _ SBtli While precise detaiJ,s of the ne-w B~ard are 5d.n
(
being- diactisse_d irii:erndiy wiehin the "(;op,. the proposai ..
··. would pLace the· Board within the Executive OffieC: of the
Presiden.t, .. arid 'would '.'l::ie the lead agency on
IT
matters, prO'II'icie ·'policy reoornmend~tiOnS t.O t-.he' national
all
UNCLASSIFIED
2
.
--
. ·<.
�.. 01/lJ/98
14:24..·
'l)'202 64} 0158
EB/CIP
R~f25JJA
141008/010
UNCLAsSIFIED
Print.ed By: Andrew J. Weinschenk:
·ACTION CII?-00
INFO
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·R 120738Z JAN 99
.
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I0-0.0
120743Z ./JS
FM AMEMBASSY· MA..~ILA
WASHOe 4-1!11
· INFO·USDOC WASHOe
· WlUTE H9USE. WASf!DC
io SECSTA'!Ii:
US/.,ISSION GEINE'VA
. AMEMBASS¥ TO!o.."YO.
ASSOCIATION OF SOUTHEAST ASIAN N~TIONS
UNCr..liS
EF T0
MANILA
SECTION, 01 OF 02
000315
SENSITIVE .
.GENEVA .FOR tJSTR. ·
S'I'ATE.ALSO PASS USTR -PAPOVICH
STATE ALso
FOR
EBJCI~ -~ 'wE::tNSCH~NK
·WHITE .Ho_usE ALso
FOR_MAGAZINER
tJS_DOC FOR 4~_30/IEP/EM/OPB/KELLY
.
.
.
USDOC
f!LSO PI.:SS NTIA '
.
l
E:o~ 1295a, N/A.
·•··
TAG~(ETRD,'ECPS, RP·
SUIIJECT• PHILIPPINES - ELEctRONIC COMME~eE
.
.
sE:Ns'r'rrw. su-i:. wc£AssrFl:ED: . ·.
Ref:
~RoTE&r. AccoRDINGL~,,
98 SC~·tc oo?bG
'WIN'n,r.; .oc{
OF
o·~·
hs
_1.' (U).~ Action reque:~t.
Please ~ee paras.· 4. and 7,
.· ...
Summary
.
~·--
... ··- .
'2..
Csatn Summary: '!'he' GOP is in ihe· proc:oss of
est:ablishin·g a:n in:c.eragency/privat:e-iiector· t:aak force. to
' diScuss the po:licy" frctmework for alld the promotion of
· electronic C!Ommercc~ in t.lie Philippines. / Depar~ment: of
Trade and Industry' iD'i'If, Onclersecretary Jo.se Juliaiio, who_
is c:hargecl·with.deyeloping the .ta~k force, told us he i3
·using ehe Elect::ronic C~mim!rce ·homotion Council oCJapt~.n
as .a modoi. . He does not ,e)cpect: .~he body to uckle
· sUbstM.tive :1uue9 ~til '~l.d~l99S, ·afte;r· .the May 1998
,.o•''
Preaidenti.W:ai'ld Corigresflionci.lelections; Eccnoff passed
J'uiia:no a· copy:: of. thf! .· t:(. s, .~ E:ti und.~rstanding on. inectronic
.com'rnerc~; . Ju.l'~ano 'will be . tra~eifn 9 e6 the. un± ce'd stilte"s
'',·.'
in February to parcieiJ?ate' in'a M1er6soft-organhed
program for foreign offiCials, . He asked our: a9sistance
·in sug'gesd.ng.·West C:oai;n;-based privat:e-·aector individuals·
. or. firni!3' he could t:alk with .about "big pic~uro~· .. ·
electronic commerce issues.
E:nd suminary ..
~CLASSIFIED
l
·. CL\I·HON LIBI{/\t~Y PHOlOGOPY
'I
�Withdrawal/Redaction Sheet
Clinton Library
DOCUMENT NO.
AND TYPE
SUBJECTffiTLE
DATE
RESTRICTION
OOLCable
Cover Sheet. From: Weinschenk, re: Incoming Cable (1 page)
4/9/97
Pl/b(l)
002. cable
From AmEmbassy Kuala Lumpur re: E-Commerce in.APEC (4 pages)
04/05/98
P5
003. cable
From AmEmbassy Paris re: Electronic Commerce: Ira magaziner
Hears Further French Views on Domain name Management and
Privacy (5 pages)
04/07/98
P5
COLLECTION:
Clinton Presidential Records
Domestic Policy Council
··Ira Magaziner (Electronic Commerce)
OA/Box Number: 13118
FOLDER TITLE:
. Recording Industry Association
Rhonda Wilson
rw5
RESTRICTION CODES
Presidential Records Act- [44 U.S.C. 2204(a)]
Freedom of Information Act· [5 U.S.C. 552(b)]
Pl National Security Classified Information [(a)(l) of tbe PRA]
P2 Relliting to the appointment to Federal office [(a)(2) of the PRA]
P3 Release would violate a Federal sfatute [(a)(3) of the PRA]
P4 Release would disclose trade secrets or confidential commercial or
financial information [(a)(4) of the PRA]
,
PS Release would disclose confidential advise between the President
and his advisors, or between such advisors [a)(S) of tbe PRA]
P6 Release would constitute a clearly .unwarranted invasion of
personal privacy [(a)(6) ofthe PRA]
·
b(l) National security classified information [(b)(l) of the FOIA]
b(2) Release would disclose internal personnel rules and practices of
an agency [(b)(2) of the FOIA]
b(3) Release would violate a Federal statute [(b)(3) of tbe FOIA]
b(4) Release would disclose trade secrets or confidential or fmancial
information [(b)(4) of the FOIA]
b(6) Release would constitute a clearly unwarranted invasion of
personal privacy [(b)(6) of the FOIA]
b(7) Release would disclose information compiled for law eriforcement
purposes [(b)(7) of tbe FOIA]
b(8) Release would disclose information concerning the regulation of
financial institutions [(b)(8) of the FOIA]
b(9) Release would disclose geological or geophysical information
. C. Closed in accordance witb restrictions contained in donor's deed
of gift.
PRM. Personal record misfile def"med in accordance witb 44 U.S.C.
2201(3).
RR. Document will be reviewed upon request.
concerning wells [(b)(9) <tf":P.W\~LIBRARY PHOTOCOPY
�EB/Cll;:',
·'B'202 64i 0158
09:4i
04/09/98
I4J OOi/015
R~12533A
UNCLASSIFIED.
Printed By: Andrew J. Weinachenk
:ACTION, EAP-Cl.,
LOG~OO
·ADS-00
INFO
CIP-00
AMAD-Ol
EB-00
SAS-00
STR~ao
NSCS:·OO
-~----~---•~----~·30~DA1
... p oaobSBZ: APR· 98 . . _'· . . .
. ,
AMEMBll:SSY KUALA LUMPUR
.TO SECSTATEl WASI:it>C PRIORIT¥ 0876
UTED-00
;oo3w
OBOBJ.6Z
.··
IM-Ol
TEDE-00
/38
.
'FM
''
1JSDOC WASHDC ·
USIA WASJ:{OC 1671
'
PRIORITY
INFO APEC COLLECTIVE
~CLAS SE~TION
KUALA 'LUMPUR 001267
Ol OF' 03
SENSITIVE_
....
.
. '!JSDOC: FOR., ARLENE MAYfDA
·· WHITE HOUSE FOR. IRA MAGli.ZINER
USIA FOR EA/ .I/TES
E.O. 129SS: N/A'
·TAGS: MY;, ECPS, 'APEC, BEXI?
suBjECT; E-COMMERCE IN APEC:
, .. AND, TURF
u,s .. MOTI\T?S
SUSPICIONS OF
POSITION
J:!ATT!.Es COMPLICA'!E GOM
)
.
. UNCLASSIFIEP
·;··,
·.
..
·KuAi.A
. -REF!
LUMP
oJ. oF o3 . . 126'1
SBCSTATE
3434•1
l::S.
1 ,, . (tJl THIS MESSAGE
tJNCLASSIFIED BU"r CONTAINs
s'ENSIT rvF: nii?oR11A'rrckWHicH ·sHoiJLp NOT a.E;RELEASED, .
..
1
OUTSIDE •THE 'U. S . GOVERNMENT.
PLEA:SE SE:E . ACTION REQU!l:STS
PARA 14. · >rrtl:S MESSAGE Atsp PROVIDES A PRELIMINARY
.•. REsr>oNsE To QUESTio~s J?osED. Ju:F"I'eL. sEE PARA....
,. .
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'·
··..
.
a. ·
•
1
.i"•
'~iNr~i!~\,;~:~f .~~~~~~~~~fcA~~~=s~~s~~s·~i~~T~~
DEPtriT ·.SECRETARY GEN~AAL
·SHA.IK·SOEKARNO oN .MARCH 20 io.
DISCUSS THE ·GOM'S POSITION .ON CREATING A DOMES'TIC
,•
ENVIRONMENT' TO PROMOTE·E-COMMERCE; ON PROMO'l'ING'EcqMMERCE'WITJUN.A'f>EC,cAND
O;S. sust~ss•' PR,OBLEMS
SECURING .'I"i!PE .APPROVALS .FOR TECHNOLOG:ICALLY' SOPHISTICATED
· TELCOM PRODUcTS.
TlfE CO~El<.SA'T:IO~
's#o.NG .· .· ..
.SUSPICIONS OF_ U.S. MOTIYJ,CS, IN PROMOTI~G E~_COMMERCE WI.THIN
\
'
ON
REVEALED
THE
MINISTRY
VIEWED
AND .AMONG
DARKLY THE
THAT Ai>Ec's .woRK
THAT APEC~ s WORK
OTHElR ASE:AN STAT'ES ... SOEKARNO 'ALSO
APEi: E-COMi>!ERCE
TASKFORCE,
. ·.·. . .· . . · ... ·
ON
BELIEviNG
.. .•. . . . ··.
.
:
TI-lE ISSUE SHOuLD ~IN WITHIN..-THE
TELECOMMUNICATIONS WORKING GROUP. WE BELIEVE WE MADE .·
SOME PROGRESS IN DISABUSING SOEAARNO.OF.SOME OF HIS
DEEPEST susPICIONS ABOUT u •. s. rNTENTIONS; 13~.HE: TENDS
TOWARDS ·SUCH ·ATTITUDES AND HIS· SIGNIFICANT ROiE. ·. ni · '
J
." .•
'
..
. DETERMINING -GOM POLICIES; AND HIS RJ::ADING OF..THE STANCE
.
•
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:
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. OF otHii:R . GOM AGENCI-ES. AND Ai?EC .Ed:>NOIUES'. SUGGEST A . ·.·
ADVANCING U.S .. GOALS .oN'E-COMMERCE·.
.·
··cHAI.LENGING. PATH IN
3.
(Ul ·. SOEKARNO AND HIS DEPUTY WE!Ui: VERY ATTENTIVE WHEN.
'U;S. BUSINESS' PROBLEMS SECURING TYPE.APPROVALS WERE .
DESCRIBED
~· UNoERTOOK TO .LOOK IN TO
or
THi
SITUATION.
WHILE wARY
THE u.s •. E~coMMEiRcE.AGENDA, sciEKARNci MADE.
TWO' REQUESTS .FOR' USI3 ASSISTANCE; HE 'WANTED TO KNQW .
WHETHER THERE MIGHT BE. ANY INTEREST AMONG. r;'. S. COMPANIES
UNCLASSIFIED
1
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09:48
04/09/98
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:
@008/015
EB/CIP-RM2533A
'B'202 64i oi58
UNCLASSIFIED.
Printed
By:
·Andrew J ., We,in_schenk
.. IN SETTING.. UP A ·INTERNET ACCESS' POINT IN MALAYSIA; AND HZ .
WA.-..iTED .1JSG J\.SSISTANCE IN SETTING UP. A,· TRAINING I?ROGAAM,
~~~i~~/N ~E 5 AA~~~~~~I~~P~~~~~u~~~ ;~~ ~~~~~!~~T~N~;--
aRINIGN AN ACADEMIC EXPERT HERE FOR WORK IN.THIS AREA.
ACTION REQUESTED: -EMBASSY WOULD APPRECIATE I<.ESPONSES
SOONEST· FROt~ 'WASHINGTON AGENCIES TO. THE ISSUES POSED IN
PREVIo:;;s · sE~TENCE . - END stiMMA.~Y.
·I!~
(U). SOE_KA!L~O W;to.S JOiNED ..IN THE MEE'l'U.iG ey. YEOH BEt::G .·
, !<EAT, PRINCIPAL ASSISTANT SECRETARY .. SOE~.O EXPLAINED
-~~~~:~~~E:TR~~~U~~L~~~Erit~E~~~i~~p::;o~~~Pb:~~~~~S-ON
(MDC);. TKE AGENC'! RESPONS-iBLE FOR THE DEVELOPMENT OF THE
MULTIHEDIA SUPER ¢oRRIDTOR lMSCl, CHAIRS THE INTERAGENCY
EFFORT. uNDER IT I . ONE COMMITTEE' CHAIRED BY MITI', . .
'FOC1JSES;. ON THE INTERNATIONAL TRADE. ASPECTS .OF t-COMMERCE,
THE·<JTHER, CHAIRED B'l:~!INETP, DEALS WITH INFRATRUC71JRE .·.
ISSUES •
CONCERNS. ABOUT THE NEW APEC
THAT. THE B1JSINESS
FACILITATION sTEERING GROUP o3iso). oF 'rEi£ TEL wG J:iAO ·
ALREADY 'umlE:RTAKEN RELEVANT· INITIATIVES AND HAS
PRoGi<.ESSED ciui:TE .FAA .. NOW WE HAVE THE APEC TASK FORCE,
. .lt.'HicH WILL RESULT IN SOME OVERLAP. HE THOUGlolT THAT THE
.. APEC TASK -FORC!LMllST HAVE CLEAR TERMS OF REFE:RENCE AND BE.
OF SHORT DuRATION .. ECONCOONS· EXPLAINED THAT THE
._.
'
.,A,UST~IA.-.. .. AND sitiGP.fORE .co-O{AI~~ _oF TH~ TASK FORCE HAD
BSTABLISHED A WOR~ PROGRAM WHIC!i FOCOSJ::D FIRST, ON MUTUAL.·.
. EDUCATION i AND SECONDLY ON FINDUlG JOINT 1\.GRZEMENT ON .
PRINci'PLEs ,' ANO THUS' SHOULD NOT c'oNrLICT WITH THE TEL
WG' s WORIC AT THE' SAME TIME;. SOEKAJrnO. COMPIJI.INED THAT
'THE TE~. WG WA,S BEil:-<(1 J?~WN AWAY' FROM ITS lRIMAAY AND ..
. RIGHT~UL ,FOCUS ·ON THE! TECHNICAL ISS!JES. OF
. TELECOMMuNICATIONS .. · ·HE THOUGHT THAT .-tHE tJ • S . SHiuu:D THIS
. !s,.
SOEI\ARNO EXPRESSED
lUl
TASK~ FORCE· ON· E~COMMERCE, AAGUINCl
coNcE:RN'. -ro · sol-iE ·. 2xof'EN't\ · .:·'..:;·
······
··
·i ..
· ..
\·
·
G· ... ~ (U) ·. AS_K~D· 'ABOuT .~YSIA~.s· RoLE .AS ··APEC C~IR_ .:t;N. ~
PROMOT.ING ACCEPTANCE' OF AN APPROACH TO E~ COI'WJERCE . AMONG ·.
APEC< MEMBERS,., soEI<ARNo SAID · !H:P.T THE· GOM '·riP.D BE~N
CONSuLTING.CLOSELYWITH OTHER ASEAN'COUNTR.iES. AND HAD.
·DETECTED CONS.IDEWLE · stisPICJ:ONABOtJT .u~s .. ·MOTIVES. IN·
' PROMOTi~G· AN ::E'-COMMERCE AGEmii', THAT: THE USG HAS' PUT
~ORWARD r:!s oWN APPROACH AND J-usi WANTS EVER~ONE ELSE 'l'o'
· :sr¢;N UP~. wiTHOUT ADITIONAL INPuT .. 'HE 'sAID TAAT' MANY,
COUNTRIES HA'Ifi;:. COME. TO THE GOM URGING CAUTION ABOUT·.
PROCEEDING . oN.. . E~coMMEiRcE~ ·MALAYSIA -iru BEEN .lw1\RNED" To
't. ... .
.
. .
... . . .
.
.
·~: '!
.
!...
OTHER.
.
K,UALA LUMP
.
.
ov' o_3 .··
,.o2
.
..
'·
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. ·~.
1267-
..
REF: SECSTATE 34344
'
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.~ .
:~
.
.;
,. .
,
,. , BE. CAUTI_OUS. ABOuT .THE POSSIB~E LOSS OF SOVEREIGNTY. ~HICH, ·
. MI,GHT RESt]LT ,FR()M KAST:Y ACCEPTANCE OF THE USG' S IDEJ\.S ..
.
,.
._;t".
7.
(U). SOME COUNTRIES (VIETNAM?) QUESTIONED THE.OSG
POSITIONS. AS. "CAPITALIST". BECAUSE OF THEIR EMPHASIS ON.
MINIMAL. GOVERNMENT INvOLV!iMENT~ ..
GENEAAL,. comm~IES
rN
·
~~EI~~~~~~N~O~fE~~~~:~~~~E: i~~~~~c~~~:TAND ,
POORER
.COoNTRI~S
ARE CONCERNED ABOO,T. THE USG PRINCIPLES .··
.
.
COUNTRIES BADLY. NS:ED ·-rfiE.REvENUSS,. 'AND SOME _ARE .STILL
VERY DEPENDENT ON 'l"AAIFFS AS .A· REVENUE SOURCE.· COuNTRIES
.WERE ALSO VERY CONCERNED ABOUT THE :IMPACT ON THEIR. OwN '
COMI?A.~IE:S OF A NEW TECliNOLOGY. WH:i: CH. MIGHT PLACE THEM IN
CLOSER COMPETITION. WIT!{ :u.S. AND OTHER tiEVELOE'E!:> COUN"l'R'l
RE~TING TO NO TAXATION OR TARIFFS, BECAUSE SUCH
.
.
.
UNCLASSIFIED
2
· CLINTON LIHF\f\H.Y PHOTOCOPY ·•
�04/09/98
09:48
!41 009/015
EB/CIPRM25JJA
'B'202 647 0158
UNCIJ\SSIFIED
Print:ed Ely: ·;..ndrew J ..Weinschenk
l-,
GIANTS ... SOEKARNO Cot..Vn"ED 'IHl> IMPRESSION TAAT SOME
W!THIN THE MALAYSIAN B!JREAUCRACY SHARED SOME OF THESE
CO!'!CERNS, IN PARTICULAR l.SOU'l' THE •ABILITY OF MALAYSIJ\N
FIRMS. TO COMPETE: WITH THE·U. S ~ "GIA.'<TS" LIKE MICROSOFT.
- COl.i'NTRIES ARE ALSO CONCERNED ABOUT HOW 'E. COMMERCE 'WILL
AFE'E:CT PAYMENTS AFJUiNGEMENTS AND MONETARY POLICY
'GENERALLY.:
' I
... 8.
(Ul
SOE.KJIJwO EXE'RESSED PARTICULAR ANNOYA.-;CE THAT TH.E .
. USG HAD TABLED ITS PAPER ON CUSTOMS, TREATMENT OF ECOM!-li::~CE AT 'l'H!i: BRUNEI · TELGROUP MEETING. FOR, ONE 'I'HING; '
THE TE~ GROUP 'oro NOT. DEAL WHli CUSTOMS. ISSUES·'
WAS THE
USG UP TO SOMETHING? HE THOUGHT' IT BEST .TO CREATE THE
(PRESuMABLY TECHNICAL) CON'DIT.IONS FOR. THE- DEVELOPMENT OF.
E-COMM.E:RCE AND TO "LET THE CUSTOMS ISSUE BE'' 'AND OEAL'
LATER WlTH CUSTOMS ISSUES .. HE REFERRED TO DEVELOPING
COlJNTRY CONCERNS 'ABOUT FOREGOING POSSIBLE SOURCES OF
INCOME A.'\J:J $.hiD OUR POSITION 'Is INCONSISTENT WITH THE
vrds OF '!H2 Rl=lST oF APEC ... riE EXPRESSED .. coNCERN _ABOU'l'
T.HE: U .•S. EFFORT TO. PU'l' THE ISSUE ON THE liTO AGENDA..
.
EMBASSY WIL!.. CONTINuE TO PRESS THE POINTSREFTEl.i TO OTHER
COlo!: AGENCIES BUT. EXPECT MORE 'TIME k'W EDUciTION: WIL'L BE
REQUIRE6 TO BRING THE
BOARD.
'
:::·
GOM.QN
9:
ECONCOUNS RE:SPONDED.WITHA DEFENSE AND
or·u.s. J?oLicrEs·ANP GoAI.s oN E-cof.IM:E:Rcs:, .·
sHE EXPLAINED 'i!:V:r 'Ti-lE: QUESTION.s posE:o TO ooVE~ENT
POLICY, MAKERS ..AND REGULATORS ·HAD COME TO THE USG'S
(U]
EXFLANATIO~
ATTENTioN EARLY oi-l lmcJ..osE .oF ouR OWN bJ:vrsiCN oF POWER.
BETWEEN' THE NATIONAL i>.No' STATE. GOVERNMENTS ··AN'o THA'I' THE
PRESIDENT'S INITIATIVE WAS A RESPONSE' TO AN·OBVIOOS. NEEO.
!iHE EXPLJ!.INE:() THAT THE USG PROPOSAJ:. F.OR A:Ct}STOMS~FREE E~.
COMMERCE ,ENVIRONHEN'T wou:LD•, NOT,DEPRI'\I'E. POOR CO~I,E~ O.F,
TRADITIONAl~ SOURCES OF REVENUES LEVIEPON·P.H?:"SICAL·GOODS
TRAN-SACTIONS .... SHE. SAID WE RECOGNIZED THAT OTHER ·.:
o•,coUN'rRIES. SUCH·. ,.;s · AUSTRALIA AND· THE Eo'.,·. ·ALSO HAil THEIR .·.
OwN IDEAS'' 'i.ND WE HAD I:OMEl TO A ,MUT{j~ 'wtiERFANDI.NG ~HTH ..
· . THE EO. ALSO, .WE ARE .. QUITE. PLEASED THAT AUSTRAL I~ J\ND
SI~GAP9RE AGREED TO CO-.CHAIR THE APEC 'I~K FORCE·
·.
i'o.
SHE, ~XPLAINED_ 'THE
SCOP~
OF
WO_RK,
FOR. niE
TA~K
'\•
.f.'ORCE ·
'··,'
~~~I~~~c!~-r~~s 0 ~o;~~~~~-s~;c~§~~~o~i~~ss~~~~N ...
AND ,THEN tin<N TO DEFINING iN Ac:iREE~)':SET :OF.
·HAJ:)· .RJi.I~ED
···',.
PRINCIPLES. . THE WORK OF. THE TASK FORCE .THUS SHOUI.D NOT
. coNFLI q WI'fl:I._THA'I' oF Tl-fE TEL WG ~ . sHE ;u,.so EXPLAINED
,
THAT 'THE COMI'ANIES WHICH. ARE. BENEFITING .'fH£ MOST·' FRO!-! THE
.· DEVELOP:.lENT OF E~COMME:RCE ARE ..SAALL. AND MEDiuM~ SIZED
.
toMi>ANu:s, MTJJ. THAT wE sEE THAT E~coMMERCEl: wit.-L E>.RoviDE.
,.THE Sl\l'lE OPPORTUNIT:{ES 'FOR SMES ON A GLOBAl; SCALE, '
'}AR'I'ICuLA.~Y WHEN ACCOMPJ\NIEO. BY •.. FOR EXAMPLE; AP.EC-WIDE
·MEAsURES T.O CREATE AN ENABLiNG ENVIRONMENT FOR EXl?RiSS ·
PACKAGE. DELIVE'fi,Y.
.
.
. .·
... ~
11 ... (Ol. APPEARING SOMEWHAT REAS~oRED BY THE EMBASSY'~ ·.
EXl?LA.~ATlONS, SOEKARNO ASKED IF THERE WAS ANY' POSSIBILI'I'Y .
THAT THE OSGCOULD FACILITA'l"E THE ESTASt.ISHM.E:NT OF SOME
·KIND !:JF TRAINING PROGRAM IN E-CoJi!MER,_CE ISsois TO: ·BE.
CONDUCTED ·BY .EX?ERTS . FROM U.S. UNIVERSITIES,' . ,THji: GOM
WOuLD' .BE IN A POSITION TO DISCUSS FUNDING FOR SUCH A .
.. PI<._OGRAM. . WE WILI.i FOLLOW UP ON THIS REQtTEST BY SOLICITI.NG ·
ASSISTANC.E THROUGH uSIA'S I~J>l]REAtr.
SOEKARNO ALSO ASK!i:O
Tf!E: EM9ASSY COUI.D ·HELP FOS'TiR 0. s .. INDUSTRY ,INTEIU:ST
. IN .E~TA,ELIS!UNG ADDITIONAL INTERNET ACCESS •.POINTS. IN
IF.
MALA'l!'SIA.
KU~ LUMP
BEGI-NNING IN JuNE .• · THE GOM WILL OPEN UP
03 OP: 03
1267
UNCLASSIFIED.
3
. 1··
.
.
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...
CLINTON LIBP~RY PHOTOCOPY
....
,·'
�'
..
.04/09/98
09:49
-B-2o2 64i
0158
l4J 010/015
EB/CIP RM253JA _
,
WCLASSIFIEP .
'printed Sy:. AriCI.rew J. Weinscl'lenk
. REF: .SECSTATE 3434_4
INTERNET SERVICE TO ALL INTERESTED PROVIDERS .IN MALAYSiA,
RATHER THA.\;1 THE TWO THUS FAA GIVEN comROL OF TH!i: LOCAL
MARKET;
HOWEVER, ALL PROVIDE-RS WOULD STILL REMAIN
..
DEPENDENT ON COSTLY ACCE~S TO TI{E U.S. uNLESS .J>.N ACCESS
POINT WERE-ESTABLISHED IN MALAYSIA.
12.
(SBUl . e;ci:n!COUNS ~HEN. TtrnNED TliC: DISCUSSION TO THE
ONU: LAAGE u.s. TEiLCOM
SEVERE'PROBLEMS REPORTED TO us
COMPANY IN OSTAIN·iNG TYPJ::. APPROVALS FOR ITS .STATE OF THE
AT THE COMPANY's .• REQUEST' WE. .
. ART NET!o.'ROKING PRODUCTS'
'RAISJ;:D THE 'pROBLEM ONLY IN GENERAL TERMS, INFOR.."'ING .
·soEI<Ali.No THAT APPROVALS :iN MALAYSIA CliN TAKE · 3 ~ s· MONTHS
COMPARED TO 1-2 MONTHS Jl!LSEWHERE, TJ:l.AT THE HEAV;¥. , .
REGtlLATORY BURDEN· REQUIRED TO OBTAIN .THE .APPROVAL 'iMPOSES
SEVERE COSTS ON EXPORl'ING COMPANIES, J>..ND·· THAT MALAYSIA
suFFERED REPF.J<TED TECHNOLOGY;LAGS AS
!U:stiLT.' BOTH
.· SOEKARNO AND YEO!i APPEi..'l.E;D SHOCKED AT. THE. DESCRIPTION OF
TH£ TYPE A:?PRCVAL PROCESS A..'ilD UNDERTOOK TO INQUIRE INTO
'l'HE .SITUATION. .
.
.
.
.·
.
.
.
BY
i.
(SBUl · DEPUTY S!CRETAAY GENER.AL. :SbEI<J>Ji.No
MEMBER OF THE GOM'S INT-eRAGENCY GROUP
·TO EST~L!SH THE- GOM' S OWN NORMS FOR PROMOTING AND .
RE~lH..ATING .E~COMMERq:, .·IUS DOWNBEAT ASSE:SSME!:JT }S
· PAAT A REFLECTION OF HIS. OWN G£NERJ\.L. DEMEA.."JOR Bt1T ALSO
_APPEAR~ TO REFL~CT fAIRLYWIDE~PREAD.ATTITUDEo;.wiTHIN THE.
MALAYSI}U;' BUREAUCRACY MD OTHER ASIAN, COUNTRIES.
.
··
. MOREOvER;· WE ·w.vE HEAAP ELSEwHJ::RE '-rliAT THE ·GOM~ .5 PROCESS
oF oE:TEru-:n.aNG PosiTH)N·s ·oN E~coMME~CE Issu.Es ·Is BE-rNG · ·
COMPLICATED BY TUlU~: BATTLES.
NONETHELESS, THE GOM AT THE.
lliGHE:STL~VELS.HAS ESTABLISHED PRIORITY TO DE~ELOP E~
COMME~CE:.:. AND :HAS roi:DE E~COMMERCE: A PRIORITY FOR. ITS APEC
. cH.:-:tF.MANsaii> x£.AR,
:rJ:!E NAY~ sAYERs wiTHiN M~YsiA wiLL
13; . COMHENT.
IS A HIGH~RANKI.NG
IN
i.
A
·so
~~.~R~~~~E ei~~~t:~~ ~~~pffov~A;~i-~a6~~~~H;:~ARD .BY•• ·.
RES.PPNDING _TO. THE: G.OM' S ,REPEATED REQUESTS FOR ¥Sl~TANCE
IN "BRIEFING UP'' :·oN THE ISSUES.
EMBASSY: HOPES THAT
':PR:SSIDENTIAL SENIOR AD'iriSOR WILL BE ABLE TO TRAVEL TO . '
. MALAYSIA' IN' JUNE TO B'RIEF Ai>EC SENIOR 'OF.FICIAt.S;
OTHERS 'IN !<.'"OCxiNG.
IN ADDI'i'ION, b!BASSY HOPES W1\.sHINGTON
AGENCIES WILL RESPOND ASAP .TO THE ACTION. REQUESTS IN .....·
·.
.
. FOLLOWING PAAAGRAPi:L .••·· END. C~MMENT ~-
AND .· ..·
H. .
AcT~ON
EMBASSY REQUESTS . WASHINGTO!'J AGENCY
To THE aciM RtouEsi •
DESCRIBED· PA.",A :n FOR FACILITAnoii OF A TAAINlNG PROGRAM
ON. E~COMMERCE ISSUES TO EE CONDUCTED SY'. U.• s. ACADEMIC
EXPERTS. . EMBASSY' ALSO ;REQOESTS GUIDANCE ON. HOW. TO .
RESI>.OND TO·.,PAAA i1 REQUEST FOR ELICITING. tl. S •. INDUSTRY
iNTEREST IN . ESTABLISiUNG
INTERNET ACCESS POINT IN . .
MALAYSIA. .WE ADMIT TO IGNORANCE ABOUT TH!l! TEHNICALITIES
oR REAS~NABLENEss
soil<.AANo• s REQUEST BU'I' wouLD
· .
APPRECIATE Am. EDUCATION FROM'WASHINGTO!'J SHOULD WE NEED·
.·76
BACK TO HIM FOR MOi_:tE · INFORMATIO~.
END Acno!'l
r.· ..
. I
~.
:
.
.
REQUJiSTS.
AssisTANcE IN
AI>YisrNG oN A R~sPoNsE
.. / ..'
:,.
AN
or
·Go
REQtJF;STS.
MALOTT
·.':.:
UNCLASSIFIED
UNCLASSIFIED
'4
CLINTON LIBRARY,.PHOTOCOPY
�..
Q4/09/98
09:49
141 011/015
. EB/CIP RM25J3A .
"B'202 64i 0158
.UNCLkSSIFIEO
1. ...
Priri:ted. By; .Andrew J. Wein::Jchenk
ACTION CIP-00
INFO
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FM .. AMEMB~SY PARIS \
TO' SECSTI\TE .:WASRDC. PRIORITY 4942
' INFO WHITE HOUSE WASHDC PRIORJTY
USDOC WASHDC
FCCWASHDC
'·. ALL. EUROPEAN UNION POST COLLECTIVE
UNCL.f-S SECTION Ol OF '04 PARIS 007906
'STATE ALSO FOR EB/CIP WE:INSCHENK"AND Et!R/WE
STATE PLEASE PASS .tJSTR FOR DON MELSON
·wHii"£ HousE:' :ALso FOR MAGAZINER> ··
USiiOC. FOR .NTIA· ~· BECKY liURR .. .
.
usod'c . .ALSO: FOR iooci/ITA/UNDERS£CRETARY AARON
· . USDOC ;z.LSO FOR . -1212/I'I'A/MACiEuR/MDORsETT . : :
FC~ Fql'l. INTERNATIONAi:./Bj:l.ET'l'
TECiillOL9GY POLICY/MIKE NELSON
.
.
. ·....
BRUSSELS' F~R: COLIN t:!ELMER; ·· · ...· ..
SENSITIVE BUT UNCLASSIFIED<-- NOT FQR. POSTING. TO INTERNET .
HAAN AND.
,,·
£.0. l29S8': N/A
.
.
TAGS; ECPS. EINT' . ETRD' .EuN. FR
. ' SUSJEC'l'·: ELECTRONIC COMMERCE: IRA MAGAZINER Hli:AAS FURTHER:
·
· :v:~;iilw:S :oN rio~IN NAME wwAri'ElMENT-~O PP,IVACY · •
1
-
,REF: ~I ,PI\!US ss46' B),,,STATE ·J4o?o .CI PARIS 3938
.. ;ARIS, :O'l OF 04<
:7906:'
:,
:Stn>~MARY:~ '~~RING
FRE~CH
.
0) . P]l,RIS 1082
., ...
DA~S OF
'1 .... (U)
TWO
MEETINGS IN PARIS (MARcH 19'- .
. 20 > , sENioR wHITE: HousE Ai::>v:iso'R: FOR" POLIC'l ·ru: r-iAr.AZfNER oi::FENoio
i,THE. usa I
PROPOSAL FOR- REFORMING' INTERNET ooMA:ni N»!E SYSTEM U:>NS)
MANAGEMENT. ·HE AcKNo~>LsDCJED i.E:ai'i'iJ\\ATE.· FRENCH .co'NcER.Ns witH ··
RESPECT TO THE COJojPOSI'riON OF !HE BOAAD OF .DIRECTORS OF ;tHE '
. PR.OPOS!i:!l "NEW CORPORATION"·. WHICH WOIJLD I!E .CREATED '1'0. MANAGE 'l'Hlil NEW
DNS, ANti wiTH ·u.s. LEGAL JURisi:!Ici:roN' ovlili -!IWiEMARK · o:i:sPOT£S · .
F,ELATEJ:l ..
D AAIN NAMEs~ . MA9AZINJ?RSTRE:ssED, liow*-'E~<•. T~T THE. osG
9
COuLD NOT/NOT.COMPROM::i:SEON .Tl'!E PRINCIPLE 'I'RA'l' THE NEW CORPORATION
wotil.t:i. BE 0' s; -BASED. :GOF. ortrcn.:Ls }u;R£ED TO HELP TONE: D'oWN '·THE
s
fo
.. ~~~~~~b£ F~Ei~i~!~i~t~~I~i.f~~~O~~~~ f~I(~. ~~·.• ~e:~~6~
Tl'!EY
. • FoRMAt.. LAUNCHING oF THE NJ::w' coR.poRA.iioN ·IN THE rAtL, oN THE •.. ·
·PRIVACY rssu'E, iioF oF~IciAI.s. AcklfoWriEnGED ·GENERAL ;.GREE~ENT ·wiTH
,·
'!HE o:s,; oN DATA PROTECTION PRINCIPLES AND souG!:iT i?RA:c'l'IcAL .·
· •
· soi.u:ri.ONS, TO DEAL WITH, tii~FERING. u.s • AND ·EUROB~ :ENFORCEMENT • .
MECl!ANISMS; . THEY SAID THAT FRANCE WOULD SEEI( TO REE'.ORM FRENCH AND
. EUROP:EAN' M'PROACHES TO DATA PR.IVACY"IN THE COMiNG MONTHS.
END
suMMARY.
·· ·
·
"
··
)
..
· ·
· ·
2. . tUl ( SENIOR WHITE HOOSE ADVISOR FOR POLICY IRA MAGAZINER. MET. .
. WITH, GOF iOFFICIALS MARCH 19 ANO 2.0 TO DISCUSS THE USG~ S PROPOSAL
\.FOR,REFORM±NG IJ::ITERN'ii:T DOMAIN: ~E sYSTEM l,DNSl '1\lANAG~MENT. AND
. . IN'!'ERN.ET' PRIVACY. ISSUES. MAGA.ZINER. t1EJT; ~R:Ilo!E MINIS.TER JOSPIN' S.
INFO•TECH ADVISOR JEAN·l'lOEL. 'l'RONC (AND MATIGNON L'E!GAL ADVISOR'
·RoBERT GELLil; FoREIGN MINisTRY. ttls~EouimENT FoR ·EcoNoi<lrc AND.
EuROPEAN li.FFAIRS' CLAtmE MARTIN (ACCOMPANiii:D BY FOREIGN MINISTRY
OFE'.ICIAI.S Y':VES C::HARPENTIER. MICHEL' FILHOL, 100) ATJRELIE LAPIDUS);
UNCLASSIFIED .
1
CL\t\\TONLIBRA\lY PHOTOCOPY
.\
,.
�Q4/09/98
09:50
.. 1.
. Pr.in~:ed ·ay.: Andrew
EB/clP RM2S33_A
'5'202 647 Ol58
.r.
. @ 012/015
UNCLASSIFIED
Weins.ch<::nl<
FR:E:NCH F.-COM.MERCE czA.-q,· FRANCIS LORENTZ· -(AND INFO~TF.:CH ·ADVISOR
GILLES BAUCHE); AND f'ltENCH INTERNET SOCIET\' (ISOCJ PRESIDENT BRl.INO'
. OUDET.
MAGAZINER ALSO EXCHANGED VIEWS ON ELE:CTRONIC COMMERCE WITH
. THE u.S, BUSINESS COMMUNITY CAMC~l AND. HELD A PRESS CONFERENCE
. WITH FRENCH JOURNALISTS.. .EMBASSY TELECOMS OFFICER ACCOMPANIED .
MAGAZINER TO ALL·. MEETINGS; MINISTER COUNSELOR FOR ECONOMiC ·AFFAIRS
. ';JOHN MEDEIROS AND s_CIENCE COUNSELOR BtiD ROCK JOINED MAGA,ZniER F~R
RS:LEVAllT Cl\.LLS. MAGAZINER.' s· MEETING WITH FINANC!l: MINISTER ·.
DoMnb:ouE STRJ!..Uss-'IOI.HN FocusED ,oNT!;iE upcoMING v.rsn TO WMKINGTON ·
BY FRENCH PRIME MINISTER JOS?IN AND IS ~EPORTED SEPTEL. ••
"!:
. PRIME -MINISTER's bFF!CE SEEKS POLITICAL _LEVEL TA'LKS. ON DOMAIN NA!'1ES
- '---- - ~ - ------- .... _,- .--- .. - • ----- :"' ..·- -.--- -.-- • -- ~-- •• -.-.;.- _......... --- ~ '7 .- • - -- -,JOSP!N' s iNFO-TECJi ADVISOR JEAN-NOEL TRONC
ISSt!ES DuRING HIS. MARCH 19 .DISCUSSION WITH .·
. •·
MAGAZINER; REFORM .• OF. THE INTERNET. DOMAIN NAME SYSTEM (DNSl' AND
PRIVACY~ TRONC NOTEi:l THAT HE HAD CONStriJi'ED WIDELY ON THESE: ISSUES,
INCI,;uiJ'I~G .A FEBRUARY MEETING WI-fH' NTIA/BECKY suri. IN PARIS (REF· C)
' AND A MARCH, lB 'MEETING WITtl EU COMMISSIONER BANGEMANN IN BRUSSELS.
ON, ri~S REFORM, TRONC.TICKED OFF Fl\MILIAR FJl.ENCH OBJECTION~ TO THE
3:
· ....
:'
(Ul . PRIME MiiHSTER
FOCUSED ON
··!1~0
U.S. ".GREEN PAPERi." .
-- NO REFERENCE TO
.
.
.
'
THE INTERNATIO~Ai. TELECOMMIDUCATIONS UNION (ITU)
·--~~z~~~-~; :i~~~~~~N~~fu~~~;Ht~R~~~ ~~~~;HE ~~RSTOOP.ti.s.
·,(.
·--NO MENTION Or'
DISCUSSIONS IN THE woRLDIN'I'ELLECTUU'PROPERTY
· ORGA.i>uzATION (wti?O! Min'
A POTENTIALLY
SERIOUS LACK
OF
ADEQUATE ·.
·. ;~2~~~~~i~:c~5~EN~~~;~~~iL~~\6()~~~~ioET~~~~~
·..
HOLDERS; .
PROTECTIONS AND ASKED·. IF. EXISTING ,;1/IOLA'l'IONSil OF T~EMAAKS. WOULD·,
BE CORRECT,EO OR "GRAND!"A'l'HERED" INTO THE NEW DNS MANAGEMENT SYSTEM;
ItEGi~±~~tJ!~~~-~~~~~~~Hi~~~~~. ·~~~~~~' :M~~!:;i~ .. •.
THE:
NUMBERS' AiirHOR.IT'f
. MONOPOLiES MANAGED BY'.'
INTERNET ASSIGNED
.
! IANAJ i.mJ.'• NE'l'WORJ< · sot.U'I'IONS INCORPORATED> (NSI 1 ; 'I'RONC WONDERED.· IF
TuRNING
DOMAIN
r:JA'I'A BASJ!:S 'I'O A. S1'ILLN9N·.
EXISTENT ORGnllZATION WOULD DESTABILIZE-THE INTERNET;. HE
THAT NON-PROFI't' REGIS'J:RlES MIGHt PROVIDE"BETTERCOORI>INATION OF D~S
OVER,MANAGEM.E~T.OF
·rssun:s:;
· · ·
·
NJciM~
·
SUOGESTE!)
·
· · .·.
.·
·
,...
.
.
·.·
.
i.
.
:
.• . .
-~. · MAINTENANCE 'oF ) NATIONAL CONTROL, OVER COUNTR.Y·CODE
.
. ..... ~· ·..
.-ooMAINS'
.. .
.
!E.G.·,
'-.. ..
4.
.FRl :.~ .
.
TOP l.EVEL
. .
·.. ,
(SBU)
TRONC ACIQ<OWLEDGED·THAT PRACTICAL SOLUTIONS COULD BE
. FOUND TO ADDRESS ALL THE ABOVE ·"TECIDUCAL" ISSUES. HE NOTED,
HOWEVER, .THAT.• INTERNET WAS A VICTIM CiF. ITS OWN SUCCE:Sl:L
.HAD
BECOME A GLOBAL l?HE~10MENON or ·s-TRATEGIC IN'rER.E:ST; TO FRANCE •. THE·
.
.
,. '.
..
.
'•.
·' . .
AND
• • ~f;~L~
~6:- ~~~~IZI~~O~~ ~~~£~~~~L!A~ii~p~~ -~~~E~I~~R~~E u~·s .
CONSIDER 11 FoRMJ..L; POLITICAL-LI'JVEL TALKS" DURING TtlE ·suMMER OF l99B,
PRIOR TO FORMAL ESTABLISHMENT OF· 'r!iE NE~l coRPORATION. HE: s,AiD THAT
.
SUCH TALKS WOULD MAJ(E: IT EASlER FOR FRANCE AND EUROPE TO .
ACCEPT A u-s' -BASED ENTITY SUBJECT TO u.s. LAWS WITH RESPONSIBILITY
FOR jQNAGING THE GLOBAL INTERNET D,OMAIN NAME SYSTEM. .
. . . .
HOLDIN~
. 5.
(U) ·. IN: A SEPAAATE MEETING MARCH
1S.
FRENCH E-COMMSRCE CZAR
·. FRANCIS LORENTZ PRESSED MAGAZINER HJUw' ON THE GEOGRAPHICAL L.OCATION
OF THE NEW CORPORATION' s HEADQOAATERS. . HE NOTED THAT .WITH THE
. . RAP.ID GROWTH OF DATA TRANSMISSIONS. VIA THE INTERNET. THE NEW .
· coRPoF;q·ION woULo ourci<t:Y ECLIPSE THE GENEVA· BASED IT_u·AS ·THE LEl<D
INTERNATIONAL TELECOMMUNICATIONS, BODY: . HE URGED MAGAZINER TO
.
UNCLASSIFI:E:D
2
. CUI\!TON LIBRARY PHOTOCOPY
�0.4/09/98
09:51
'5'202 64i 0158
EBiCiP RM2533~~
141013/015 '
UNCLASSIFp::o
·.
.. ·
.
.
.
'
.
~·.
.· ...
I .
.
·coNSIDER.HOLDING BOARD.MEETINGs.oP THENEw coRPoRATION IN GENEVA,
,REGAADLESS.OF THE.LOCATION OF ITS. TECltNICAL OPERATIONS.- IN ORDER TO
MEET EUROPEAN DEMANDS FO)<. A TRULY . INT£RNATIONAL ONS MAl-.AGEMENT
'BODY.
l• . .
G.· (SSt]) ·IN A SEPJ\RATE MEETING MARcH 20, FRENCH INTERNET SOCIETY
PRESIDENTBRIDIO OUPET STRESSED THE PRACTICAL PROBLEMS CREJI.TED,BY
POOR MANAGEMENT OF THE ".COM;, REGISTRY BY NS:i:, PAATICULAALY' WtTH .
·RESPECT TO FRENCH.TAADEMAAKS AND "CYBER~SQUATTING.;,. HE'SAID IT
·TYPICALLY cosT FRENCH GOR.PO)l.ATioNs. ill' ..r·o uso ·10 'rHous~ .IN LEGAL·
FEES (IN THE U.S. ) TO RECOVER DOMAIN NAME 'I'RADJ?: MM.KS LOST TO U.S,
cYBER-SQUATni<.s. ·HE. uRGED THE usG rb TAi<E ·A MORE
"INTERNATIONALisT.". APPRoAcH TO. FoRMulATING nNs ·REFoRM POLICY.
·ARGUING THAT 'l'HE · ci.m.RENT u, s. APPROACH ClNLY REINF'ORCED EUROPEAN
CONC$RNS . ABOUT '.U. ·_s • · HEGEMO!'<)' ·.OVER THE ·· INTE~ET. ,· · .·HE! ADVOCATED A
MORE 'CENTRAL ROLE FOR THE: INTERNET· SOCIETY. {ISOC)· IN' INTERNET
MANAGEMEtJT, NOTING.: THAT~·r:soi: WAS cOMPLETELY MARGINALIZED .IN THE
. CURRENT. u. $ .. PLAN ... (COMMENT: . IN REPLY, MAG1\,ZINER NOTED THAT IN
THE u,s., ·rsoc WAS NOT VI:?WED AS BROADLY REP~ESENTAT+VE dF.ALL
i
INTERNET USERS, PARTICULARLY BY COMMERCIAL AND INDUSTRIAL.- USERS .
OUDET ALSO RECOMML<:ND~D THAT THE NEW CORPORATION BE
.END COMMENT.)
LOCATED OUTSIDE THE u.s,., OR, AS AN ALTERNATIVE. THAT I'l' MAINTAIN
SAAOOW ROOT SERVER SYSTEMS-- WITH ;.i.LNECESSJ\RY HARDWARE AND
·. soFTWARE ~·~ IN. BOTH EriR.oPE AND ASIA< .. HE ALso ·c.iu.i.ED FOR u ~
. ENDORSEMENT OF NEW REGIONAL TLD' S. FOR. EUROPE liND AsiA.•(E.G . • . EU .
.FOR EuROPE) . ClUDET SAID THAT ALL. EUROPEAN CHAPTERS OF ISOC WOULD
MEET IN B~USSELS APRIL 2l Jli.ID.WbTJLD SURELY Focus ON THE DNS REFORM
.
;
I
· .. ·:·
.:s : ·
•
:~bP::~··
-iy
MAG~ZINER
:FRE~CH· to~E~Ts
IN REPLYL.·
suD ••THP.T
•.oF THE
. ON TI~E GREEN PAPER. R~lFLECTED Ll'lGI'l'IMATE CONCERNS; THE u.s. COULO BE
FLEXIBLE ON MOS.T OF ·TfiE;M BUT COULD t:OT/NOT CONCEDE ON 'l'HE' ISSUE OF .
ESTABLISHING THE NEW CORPORATION Otn'SIDE THE u.s.
RE.CWIFIED THE
u~ S. POSITION AS FOL~OWS: ·
) · r · · ·
·
· . · ··
,·. ·.·
,..
·.
f.·
; (··
1·
:.
~- THE. USG'S TOP. PRIORI'l'IES IN. DNS REFORM 'AR.'E. ~INT)\INING STABILITY.
OF Tr!E INTER~ET
.·
u~·~>~~ir.H(jRI'!'#~,.ANr).
; . · .. • .··
fOR. D~S MANAG¥l'!ENT \'IOULD BE H.rulDED O"WER TO THE NEW
. CORPORATION iN .J\ MANNER CONSISTENT ,wiTH STABILiTY OF :THE· INTEiulET.
,.,._,
AND. I?Rl'-;ATI_ZATIONi
RESE'ONS::C~ILITIES
-- THES'Ii: RESPONSIBILITIES WOULD INCLuDE. MANY OF THE FuNCTIONS .
t1NDER cO~TRACT FOR THE o~G BY NSI AND IANJi:.
• CURRENTLY tARRIED
INCLUDING MANAGING TLD DATA.· BASES. !LE. ;. . COM, .NET,; .ORG);
MANAGING 'I'HE IN'rERNET· ROOT SERvER ;SYSTEM; REGISTERING' INTERNET ·.
.'J?RO'l'OCOLS; ALLOCATING NU~U~ER BLOCKS: TO REGIONAL . NUMBERING
·.. AUTHo:Ru:tc:s IN NORTH AMERICA lARIN); .AsiA !·<Ai>Nrcr·-ANi:J ~UROPE
··!RIPE); AN'o SETTING i~f> POLic): <E.G:~ ci.EAT:toN ciF NEW 'i'l.o.;sl. ...
.
MAt3AziNER sAID THE 'osC; w.As Li:l<N±i-lo towAiin 'No'i''iNot cri.EATING· ANY NEw .
TLD'S BEFORE EST~LISHMEN'I' OF THE NEw, CORPORATION.
.
.
.
,·.·
.
plJ'l'
-·- :THE NEW CoRPORATION WOUI.oD BE MANAGj;:o. BY A .TR.ULY INTERNATIONAL
BOARD OF DIRECTORS WHOSE MBMEERS wotJi..b.REPRES~NT INTERNET STAKEHOLDE!:tS. rNti.onnm 7 RJ;:PRESENTATiv.Es o.F tise:R: GROQPS .
COMMERCIAL AND NON-PROFIT,· WHO C.OULO BE NOMINATED, ON A REGIONAL
·· BASIS), J>.ND·· 7. REPRES$NTATIVES or·' THE: I~ERt{Ji:riONAL .TECHNICAL
COMMUNiiY C[NTERNET ARCHITECTURE. SoARD' .INTERNET. 'ENGINEERI~G TASK .
F.ORCE) AND R.EGIC)NAL NUMBERING AUTHOiU"I'IES. HE ,NOTED THAT AS
DEVELOPI~m coUNTRIEs. JOINED THE. GLOBAL IN1ERNET coMMUNITY; BOARD
MEMBERSHIP COTJLD ~EcADJTJSTED TO INdunE REPRESENTATIVES OF AFRICA.
· . AND LA'I' IN AMERICA.
moTH · · · ·..
·· _ _:u.s. LAWS GOVERNING NOt<~PROFIT oRcviNizATIONS;r..RE SUFFICIENTLY
FLEXIBLE .'1'0 PERMI'1'.'I'HE NEW CORPOAATION'S'BY,LAWS TO .CONFORM WITH
'EUROPEAN ANTI-:TROSTAND TRADEMARK loEGISLATION'
PARIS
03 OF. 04.
7906.
UNCL1LSSIFIED.
j
·. CUt--!TOl-.!,LIBR.f-\RY P\-lOTOCOPY
\
�r-----~q~4/;0~9~/~9-8--~0-9-:5-.1-----~--2~0-2-6~4-7-.~0_1_5_8~~~----E-B-_/~C-I_P___
R_M_2-53_3_A -,---___
(4! 014/015 .·
UNCLASSIFIED
Printed
'
AAdiew J. · W.einschenk
By;
OF
ENFORCEMENT
TRJWEMARK'PROTECTION WOULD. BE IN CONFORMANCE WITH
WII?O' .PRINCIPLES AND PRACTICE; . T.RADEMAAK HOLDi;:RS ~OULD. Bi ABLE TO
.... BRING SUIT AGAINST INFRINGERS IN THEIR OWN NATIONAL COURTS:. THEY .
WOULD ~OT/NOTBE FORCED.TqBRl~G SOIT•IN U.S. COURTS._ THE USG
. WOULD PROPOSE 'A WII?O STUDY OF 1\LTERNATIVE. DI_SPUTE RESOLU"I'ION
MECJ-!ANISMS.
THE NEW CORPORATION COULD DECIDE ·~rOW TO HANDLE CURRENT
CASES OF TRADEMARK INFRiNGEMENT .WHE:N IT ASSUMED RESPONSIBILITY FOR
'
.
. ·. DNS MANAGEMENT:
'
-~
.
-- NEW .DOI"AIN.· NAME.REGISTRIES WOULD ·BE REQUIRED TO PROVIDE ADEQUATE
TRADEMARK PRDTZCTION AND ALTERNATIVE DISPUTE REscil.t.iTr'oN MEcHANisl'is; ·
.. BNStlRE. TRANSPA.'<.ENCY. IN ISSUING •DOMAIN NAMES' AND TAKE .A~I?ROPRIATE.
ST~PS TO PR:OHIBIT ''CYBiR~SQUATT;!NG.'' THE osG r;AYORED FOR-PROtiT
REGISTRIES IN ORDER TO· STIMULATE INNOVATION AND EFFICIENCY, BUT
·RECOGNIZED AnV~TAG.ES OF NOl~~PROFIT REGISTRIES J\:S WEJ..L.
s. . ·(SE!Ul ... MAGAiiNER PRESSED· HIS INTERLOCUTORS TO "TONE DOwN tHE
. RHETORIC" oF OF.FiciAL RESPONSES -ro 'tHE u.s. GREEN PAPn; NOTING THE
tJirnEc:ESSARILY ·HARSH TONE OF 'tHE I~ITI.AL DRAFT ..
ttESPONSE; 'AND
RECENT AD ·i-!6MINEM ATTACKS IN THE FRE~CH PRESS •.. ·THE u.S·, SOUGHT ..
BROAD .AGREEMENT WITH FRANCE AND EUROPE ON pNS REFORM' NOT
·.
. CO~FRON'TATtON,..H£ SAID: ·. . . MAGAZ:i:NER'S INTERLOCtnciRS .CONC'JRR.ED
',·ALL . .
.
.
. ·.
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'WITR·THIS APPROAC!i; .TRONC UNDERTOOK TO ENSURE T.liAT··.'I'HE. FORI".AL EU
.. REPLY TO· THE
PAPER .REtLECTED.A' MORE·MEASTJREO :~ON!> .. !NOTE:
.-THE: •FtNii.L -Eu REPLY wi<.S ISSUED Two DAis LATER AND DID iNDEED REFLECT
ttJ
.,-.
u.s:
' A MORE MEASURED TONE >l1
·. . .
.
-,
.,
.
' .. ·.
.
.
/
F~CE WILt; RE'HSE PRIV?-CY ROLES, SEEK EU CON;'iENSUS
\ ..
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.(U). ON PRIVACY,, TMNC, NOTED 1'I-lE IMPORTANCE .OF THE, EU PRIVACY
. DIRECTIVE .WHI~H.- fiE >·s1lin, , t>i-q:s-r sE 'i'aE:N
J>.:ccotJN-r A.s ws sEEK
.. PRAGMATIC SOLUTIONS.• ··•··.· FR~N.CH LAW' IS' NOT THE PROBLEl~ •. HE SAID; .THE
i:ri
IS THE PROBLEM.: TROftCSAID
DISCUSSED THE'
. FRlVACY ':tssuE'MAACH.lB' WI,TH EtJ tbMMISSIONER BAN~EMANN. INCLUDING)>..
INTo:
HE HAD
DIRECTIVE
'.·.· ..
· .MUtuAL'. Rli.:coGNITION
~IFfERiNa l1· s. A.Ntl
APPROACii. d•iRAl; AS :J>. . pbss IBLE · MEANS To R.ttONC.ILE
EOROPEAN ~PRoAcHss ro oP.-rA. PR9iEcTioN •· .•.· i
I:'AANC::E'S APPROACH 'I'O DA:TN PROTECTION WAS STILL.EVOLVINCl,-TRONC
SAID; . PR,l~'ii: MtiusTi~ ~osPtN ,w9tiLD P}tOPOSE 1\ REVISION OF THE i517e'
· LAW GOVERNING FRENCH D.r.TA<PROTECTlON . BY. THE END ·OF. THE SUMM-e;R;
BASED oN-· THE .REPORT
-'~PERSONAL DATA AND THE· INFORMATION so.CIET)!•·
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o:N
, ~~~:~I~~t~L~~=dT~~ ~~t:;;;~~~~J~~E;~~~ f~~~~E~~~!RD~~!TATl,.
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PROTECT.! ON '• MRA AND·. ASKED FOR U.S . VIEWS ON
wot:JLri
BE APfl.!Eo
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·
.
.
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·
.
.
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·:·
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'
SUCR. J>.N APPROACH
· ·. ·
· ., ,. ·
'sAID~
l'ci·.' ,(SBu>' TRONe
THAi,'· ;RJ\NcE:• s APPROACH TO DATA PROTECTION ;•
woTJLn .EvoLvE TowAR.6.-"N E:l(.:pos-r REGriLAToR.Y-R.EoiME rR:oM,THE · c&Rlii::tr!
<ctiMBiilSoM:E, ·'·sE:El REF D> Ex-J<N-rE REGIME ADMINISTERED fiy THE sTii.TE: .,
. PRIVAq l'lbJ.R,p CCNIL). 'TRONC SAID TRAT FRAt)CE WOULD,, SEEK TO. LA~CH .
; INTRA~Eu. DISCUSSIONS THIS SOMMER. AIMED AT FINDING NEW J>.P,PROACHES TO
DATA PROTE:CTION. BASED ON THE. BRAIBANT. REPORT'. .· CNOTE: ·. THE
.
. . ~RAIB~h·ltE;>ORT WAS .COMPLETED MARCH 3'. IT HAS NOT YET. BEEN RELEASED
: , . TO THE PUBLiC.
GENERAL INI.I'ORMATION ON THE REPORT CAN BE FOUND A"!
.. ~' .~R~MIER~MINISTRE•, GOUV;
J'HE . PRIME. JI'IINIS1'ER' s IN;STRUcTIONS TO. '
SRAIE.~T c;w,x..Eii FOR. B~CING T}!E, :.EE!)S OF . pROTECTING PERSONAL ,
PRIVACY WITH TECHNOLOGICAL 'ADVANCES AND PROMOTION OF ECONOMIC
GRO.tTH~)
.
.. .
.
.. .
..
;-
FR . .
.
..
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ll •.. (U) .. MAGAziNER REPLIED THAT THE
AND FRANCE AGREED ON THE
SUBSTANCE OF. 'I'RE PRIVAC'f .. rssuE; INcLtm!NG tilE APPLlCABILITY oF 'oEico.
PRIVACY ~R.*NCIPLES.. 0~ APPROACHES ~DIFFEREJ? MAINLY IN TERMS' O_F .
ENFORCEMENT, WITH THE· U.S. FAVOR!NG'AN INDUSTRY-LED APPROACH AND.
FRANCE (AND• Etm.OPE) FAVORING STAU-LED ENFORCEMENT. HE SAID HE RAn
.HAD GOOD TALKS ON THE P!tiVACY ISSUE WITH THE i;:ti. COMMISSION' AND
PRESSED P'OR A RESOLUTION OF .THE ISSOE BY JUNE.l998.
FOREI~N MINISTRY' OFFICIALS FOCUSED ON PROCED\JML ISSUES.
. UNCusSIFIED
>.
!'
4
· GL\I-.!TON 'LtBRf\I~YPHOTOCOPY.
•'(
�....
04/09/98
<
09:52
. 'B'202 64 i
0158
@ 015/015
EB/CIP RM25.3JA
.......
UNCl:1\SSIFH:D.
·.·Printed By: .Mdr,;!w
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.
lUI
M~NISTRY
.
MAGAZINER' S DISCUSSION WITH FOREIGN'
U/5 CLil.UD£
~~TIN FOCUSED ON THE. AREAS OF COMPETENCY
RELEVANT INTE~~ATIONAL
OR.GANIZ~l'IONS FOR ELECTRONIC CONMERCE ISSUES.· MARTIN SAID: HE HAD
MET wr'fH, ·wTo- cHAIRMAN P.oGGIERo I"MCH
.A....,o. sENSE]) THA-i' THE mo w.As
ANXIOtiS TO ENGAGE FULLY' ON E·COMMERCE ISSU£S;. HE WONDERED !!? THERE·
: w.As'pR?WING coMPETI'i'roN BETWEEN M"t.J~TILATE:RJ\L BODIES IN ~nds AREA •. ·_ ..
ON FISCAL· ISsm:s,·HE ·NOTED'THE OIFFICtJL'I"Y·OF CLASSIFYING ELECTRONIC .
. .TRJINSACTIONS"AS GOODS··:OR SERVICES· . •'MA.'l.TIN Ri\ISED THE UPCOMING OECD
: i2,
·
OF
~a
J?AAIS
04 _.OF 04
79.015
MINISTERIAL':i:N OT,TAWA (OCTOBER l998'l AND ASKED V..'HAT WERE .'J.S.
OBJECTIVES FOR THE CONFERENCE.
MARTIN STRESSED THE IMPORTANCE OF
.INCLUDING CHINA ANJ)· DEVELOPING COUNTRIES IN l'IULT.ILATERAL
:niscuss.tONS. OF ELECTRONIC COMMERCE
INTERNET issuES.
wo··
13.
.(sBu>·
.
·1
IN
~EPLYi MAGAz:t'~=:R ouTLrw;;~
THE GENERAL DIVIsioN oF·
ORGANIZAtiONS ON,ELECTRONIC COMMERCE
:rssuES, INCLUDING THE WTO (IMPORT DUTIES/TAAIFFS)', THE OECD .....
(DOMESTIC TAXES, PRIVACY)'. J\ND .THE WIPO (TRADEMARKS, IPRl. ·..·HE
NOTJl:0. Tl!AT DEVELOPI·NG COUNTRIES COULD BE .EASILY. ASSO::IATE!:I WITH
·cisco DiscussioNS.
oNiHE OTTAWA CONFERENCE. HE SA:i:D TH£·USG wouLD
sESK TO~ Focus'·oi:scT,lssr'oN oN TAXATION (INCLUDING AN ENDORSEHE.N'l' oF
COM~ON PRINCIPLES) ' ANALYSIS (OF, THE :SOCIO· ECONOM.IC IMPACT 0~ .
. ELECTRONIC 'cOMMERCE),
AND PRIVAC¥ (TO INCLUDE ~RIVATE SECTOR
PAATICH>ATIONl·. .•....
. .
'
LABOR
•
~
BETWEEN INTERNATIONAL
..
.
,·
•
..
',I
KE~.
ALL
~R~CH'
COMf>1ftNT. ' . MAGAZINER MET
THE
PLAYERS ON
. E•COMMERCE POLICY. DURING HIS V-ISIT TO>PARISi IN TERMS OF INFLUE!IlCE .
ON; THE stisSTAN'l'IVE ISSUE? HE COULD NOT HAVE BEEN REdElVED AT ;..'
. HIGHER. t.EiviL.
'l'HE' FRENCH CLEAALY\SEE ~ CONVERGENcE OF. viEWS "'AND
'INT~RESTS,ON MANY' ELECTRONiC .COMMERCE '·ISSUES,. INCLUDING- PRIVACY.
TH~Y HAVE coMPLETEin THE NECESSARY co~cEP'i'u.i>J.. sPiDEWORIC !E.(;. • THE
·. LORENTZ u~oii.T ON E',::c6Mi1ERCE ..AND THE .eRAIBIINT: REPORT oN DATA
··
.. PROTECTION! ..AND ARE NOW >PREPJIRED TO MOVE: FORWARD IN INTERNATIONAL
DISCU9SIONS, . ~E MA):'. s£ AN OPPORTUNE' 'TIME :;RJ>.ME foR REACHING · .· _
•
' 14.
. ·•·.
(SBU)
~:~~~~~ ~~;~~:~~S~~~:~IPLES
V..'HICH.
CO~D
PAVE THE WAY ROR;
-:~ROADER :
,
coMMENT'~oNi'nroE:n
·,,.'
...
N~E
is .•.-. (sBui'
... ·oN THE NARROWER .ool'!Ji.IN
'rssu&.·
Fi<.ENCH iiAVE TWO . CLEAA OBJECTIONS
6tm; PROPOSAL. ON PROCESS'
.THEY OBJ'ECT TO OUR "UNILATE1<1ii" APPROACH; THEY' ARGUE THAT .
.
coNSULTATIONS no' NOT EQUAL NEGOTIATIONS~
IN THE FINAL ANALYSIS, ·
THAT· CONFLICT Is PROBABLY UNAVOIDABLE BtiT NOT .nisl'JRMOuNTABLE: .soME
. OF THOSE CONCERNS MAY BE MET _BY ()RGAN_IZING BROADER POLITICAL
. DISCUSSIONS PRIOR TO FORMAL ESTABLISHMENT. o.F THE NE:W CORPORATION;
·
cLpn<ED ·-ro ELECTioNs.·.
i3oiui.D. MEMBERS· BY.
·
·
STAKEHOLDER GROUPS. ' ' ON' THE: SUBSTANTIVE ISSUE OF t].
LE:GAL
.
..roR:tsoicT!oN ·ovsR THE NEw coRPORATioN,
·
''AND INEVITABLE·TRADEMAAK.DISPOTES, IT'WILL Bi IMPORTANT .'!0 FIND
s·ourr:toNs,' s'oc!-!' As ALTERNATIVE nrsPt11"E REsoLuTION· .
MiCRANISMS !PERHAPS LINKED TO WIPO 'AGREEMENTS) •. ''ti{E KEY. ISSUE. FOR
•THE t,R.ENCH.WILL BE DETERMINING'WHAT couR.'l' SYSTEM W.s JURISDicTION
OVER A DISP'IJ'i"E BETI<."EEN. A
NATIONAL AND'A FOREIGN (E.G.' F:RENCH)
tHE
TO
'L'iV~L
li'ERHAP~
coNSTIT\ut~i.-
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PRrvii:rli:~sEC'i'aR iU:t:i:sTRIEs~
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.. TAADE~ HOLDER.
. .· l6 .... cu1
. _ROHATYN_
THis
q~.BLE wAs
cLEARED BY
IR.A,.~AzimP. .
CL\NT()N LIBRARY PHOTOCOPY.
UNCLASSIFIED.
5
'
.
CLINTON L.ljjJ<i·~l~l ·t'a·!\.HOCOP'{ ·
�\
'I
t
,
. '
•
Withdrawal/Redaction Sheet
·
DOCUMENT NO.
AND TYPE
001. cable
.Clinton Library
· ·
DATE
SUBJECTtriTLE
From AmEnibassy Rome re: Italy Telecoms: Bilateral Meeting (2
pages)
02/03/98
RESTRICTION
P5
COLLECTION:
·. Domestic Policy Council
Ira Magaziner (Electronic Commerce)
. OA/Box Number: 13118
FOLDER TITLE:
State Department Memos
Rhonda Wilson
rwll9
RESTRICTION CODES
Presidential Records Act- [44 U.S.C. 2204(a)]
· Pl National Security Classified Information [(a)(l) of the PRA]
P2 Relating to.the appointment to·Federal office [(a)(2) of the PRA]
P3 Release would violate a Federal statute [(a)(3) of the PRA]
P4 Release would disclose trade secrets or confidential commercial or
financial information.[(a)(4) of the PRA]
·
PS Release would disclose confidential advise between the President
and his advisors, or between such advisors [a)(S) of the PRA]
.P6 Release would constitute a clearly unwarranted invasion of
personal privacy [(a)(6) of the PRA]
C. Closed in accordance with restrictions contained in donor's deed
of gift..
PRM. Personal record misfile defined in accordance with 44 U.S.C.
2201(3).
RR. Document will be reviewed upon request.
Freedom of Information Act- [5 U.S.C. 552(b)]
b(l) National security classified information [(b)(l) of the FOlA]
b(2) Release would disclose internal personnel rules and practices of
an agency [(b)(2) of the FOlA]
b(3) Release would violate a Federal statute [(b)(3) of the FOlA]
b(4) Release would disclose trade secrets or confidential or fmancial
information [(b)(4) of the FOlA]
b(6) Release would constitute a clearly unwarranted invasion of
personal privacy [(b)(6) of the FOlA]
b(7) Release would disclose information compiled for law enforcement
purposes [(b)(7) of the FOIA]
b(S) Release would disclose information concerning the regulation of
financial institutions [(b)(8) of the FOlA] .
b(9) Release would disclose geological or geophysical information
concerning wells [(b)(9) of the FOlA]
btlfu 16& LIIJIJ.\ItQ Pl-ldlGCGPV
··:·
l1
�'
P~iqted
Bi: Timoth~
STATE DEPT
'B'202 647'7407
15:52
c:
· raJ oilJ/007 ·
<:;IP
UNCLASSIFIED
Finton
ACTION CIP-00
LOG· o'o
INLB'-Ol
EUR-Cil
INFO
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0 031644Z FEB 98 FMJ>.MEMBASSY ROME
TO SECSTli.TE WASHDC ,IMMEDIATE 0838
. OSDOC WASHoC PRiORITY 0057 .·
'INFO USEO BRUSSELS 07SS
.
USMISSION GENEVA
:
\"
UNCLAS ROM_E 000.790
SENSITIVE
S'!'ATE:·FOR EB/CIP/FINTON;EUR/WE/PIERJ\NG£L6: AND EB/DC:T
PASS FCC '·FOR KIRK MCBIUDE '
.'
EASS OSTR FOR ABELSON AND DE MARCELLUS
USDOC: FCRNTIA/IRVING; 6320/TD/'l'AI/OT/MOTTUR AND.OENNY•BROWNi·J\.ND'
42~0/I~P/.];:UR/0\I!E/Ai::OI<RC.
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'
GENEVA FOR.OS';'R
'
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E.-0. '12958:
•
:N/A
~:~~C~~P~~~~t~f~c:OMS: ·.
~EF i
.·a)_
97 ROM_E_
10724 ;_.b)
BILATERAL MEETING
FINTON 7 REYNOL'DS E-MAIL; i/30/98
PLEAS_E PROTECT- ACC9RDINGLY.
SENSI.'riVE BU"r UNCLASSIFIED.
REQUEST IN PARA. 4, .·
. .
l
JI:CTION
l. · (SBU) Ref 'a respo~deid :to Wa:Jhingcon agencies' .queat:.loris
. regarc:Ung· the etat:.us. of t:e!ecommunications liberalizat:ion in Italy~
·and st:rongly recommended, 'a .follow• up_ t;JSG/GOI- teleco~municat:.iona
biiat:.erai in the. first·. qU.ar~er of :l99a .. From ref b, .: pose
l.lnderscands_t:.hat:. inceragenc'ycliscussions of a'possible meet:ing are'
ongoing in Wasl~ingt.<;>n; .· ·•·
SB~l
·.\ .
ceiecom~ meet:i~~
.· _2 ..· !
· Post' ·<1gair; otro,ngly: recolllmeridi/ a, irsG/GOI
·
as• ari excedlent.,opportunity to. press our ulecoms agenda,lo'it:.h t:he.
ao.r an~ encourage t:qe (by'thenl .newly-appoint~dmembe'r!l ,of _t:.he •'
independent:., .comritunicat:io,ns ;-e~latory agency . !Authority) to .make ',
It<1lian·. telecoms regulat:ioi:J, cis independent:., e:ven·handod ·and
,
• -transparent an· possible. The current_ outlook is for parliament to
approve. all eight rf.~riibers 'of, !:he Authority February 'i2. . Authi:)ri ty
pre1;1idenc Enzo. Cho1i wa!J confirmed January lS.. ·
· '
'
'
.
,.·
.,
3. (SBo'J Pofit• a previou$ reporting has highl:i;ghted :eM impo.rt:.ance
·. of t:.he Italian· telecoms markec:. Telecom Italia is. the world's . seven,i:h largest ~ele'coms .operatOr in terms of 19~6 r~venues !Dolli
1.9 billion) .: 1;1ixth largest' in minl.lte's of international telephone
traffic~·. Italy already ha,s one of, the largest .and ~ost _rapidly~ ,
expanding mobile celephone markecs. in .Europe. But:. It:aly'hos also
been recognized: by t:.ha E:u ,ao •-lagging in. deregulation, ·slo~ to alloY
ne.w ·entrants. and. perhaps o~erly protec;:t:.ive. of -the dominant market
position of its former telecoms monopoly; As argued ref a, a ..
bilateral allows a chance co persu<1de the Aut:horit:.y, at an early.
stage o'f it:e .li-fe;-. of -the. l:ienefit:s of liberalization..
·
.
'
co~municado~s
propo3e~ la~e
!SEIUl The
MinistrY has
.
..
. March/ea~ly April for a bilateral in Rom¢. -Ambassador Foglietta
:_ ' will make hiS. initial coureesy call on Commimicat:ions Mirii5ter .
· Maccan1co February 11, at _i;,hich t:.ime we expect: Maccariico to r?ise
the question of che bilateral. Post: would like for t:.he Amba5:llador
t:O be able· to refipond pos~tively --at: a ininimu.m-to.have a concrete
4.
ONCLASSIFIED
1
CLINTON LiBRARY .PHOTOCOPY.
...
�STaTE.DEPT- CIP
"B'202 64i i40i
)5: 5J
[41 004/007
UNCLASSIFIED
.. Pdnt17d By: Timothy
c.
Finton
...',
-·reply for t.he GOI -~ and would appreciate .W<lshingt.on agencies'
response to the GOI-proposed cimeframe intimC: for his meeting.
Fogliett:a
..
·,.
.
;,
1.·
.;
·:·
· ONCLASSIFIED
'2
CLINTON LIBHI-\~Y ,PHOTOCOPY
�Withdrawal/Redaction Sheet
Clinton. Library
DOCUMENT NO.
·AND TYPE
DATE
SUBJECTtriTLE
Report on Vienna Meeting on Encryption Policy and Export Controls
22 Aprill997 from James Lewis and Charlotte Knepper (5 pages)
001. report
04/16/97
RESTRICTION
PS
COLLECTION:
Domestic Policy Council
Ira Magaziner (Electronic Commerce)
ONBox Number: 13118
FOLDER TITLE:
Unnamed [Encryptimi.] [2] .
Rhonda Wilson
rw120
RESTRICTION CODES
P!esidential Records Act- [44 U.S.C. 2204(a)]
Freedom of Information Act- [5 U.S.C. 552(b)]
Pl National Security Classified Information [(a)(l) of the PRA]
P2 Relating to the appointment to Federal office [(a)(2) of the PRA]
P3 Release would violate a Federal statute [(a)(3) of the PRA]
P4 Reiease would disclose trade secrets or confidential commercial or
fmancial information [(a)(4) of the PRA]
PS Release would disclose confidential advise between the President
and his advisors, or between such advisors [a)(S) of the PRA]
P6 Release would constitute a clearly unwarranted invasion of
personal privacy [(a)(6) of the PRA] ·
b(l) National security classified information [(b)(l) of the FOIA]
b(2) Release would disclose internal personnel rules and practices of
an agency [(b)(2) of the FOIA]
b(3) Release wouid violate a Federal statute [(b)(3) of the FOIA]
b(4) Release would disclose trade secrets or confidential or financial
information [(b)(4) of the FOIA]
b(6) Release would constitute a clearly unwarranted invasion of
personal privacy [(b)(6) of the FOIA]
b(7) Release would disclose information compiled for law enforcement
purposes [(b)(7) of the FOIA]
b(S) Release would disclose information concerning the regulation of
· financial institutions [(b)(S) of the FOIA]
b(9) Release would disclose geological or geophysical information
concerning wells [~b)(9) oft,~Kft~ LIBRARY PHOTOCOPY
C. Closed in accordance with restrictions contained in donor's deed
of gift.
PRM. Personal record misfile defmed in accordance with 44 U.S.C.
2201(3).
RR..Document
be reviewed upon request.
will
�•
I
~
... ·
'
.
Fouo·
SENSITIVE
16 Mayl997- _ ·
. Subject: ·
Repor1: mi Vienna MeetiilgohEncryptionPolicy and Export Controls;·. · ·
22Aprjll997.
.
.
.
l
. James LeWis, .DOC . . __
Charlotte Knepper, NSC. . ·
From:.·
·,· ..
. ··.
-
~
'
· .. ·Repn~sentatives ofCanad~, France, Japan, the Netherlands, Swedeh, the' UK and
· .·. the US met· informally it1 the US Embassy in Vienna to discuss recent developments ·.
. . .. ·~ encryption policy and th~ir implications for export contrpls. The
(led by :. .
. , ·•· · · :Atnhassador·Aaron)ho'stedthe :da:y~lpng meetiJ:Ig. The chieftopjcs. ofdiscussiort
· were the development _of national encryption policie-s,'the- desir~billty of mailltcrinmg
. expbrtcontrq'S Oll stropg epyryption,,and theneedtO~(ldjtist.expo,rtCOIJ,tfO!S in li~f.: ·
()fthe rapid groWth of intemationat electrmric co11llllefce. At ill; conclusimis, .· ·. _· · - · .· ·
·. ·• participan(s.agreed thatthe meeting had been.very lls~ful, ,hadexpos~d several>areas ..
. ' where -fuither l1luJtilatetai,:discussion is rie,.cessary,)md.agreed (after s~me demurrage·. ·..
_hX Cal13.da an4Japrui) to m~etagaipinLqndon;attlic}re se~orleyels to estab4sha.... ,
.·:basis for fiituie nillltilatetal discussioi:t .·_.: ·- . -. .· .·· · ·- · · ·. _. -·· ··· ·
· . ·
us
• :1'
. 1ie se~~io~ beg~·~tb re$~ks by A$hassad¢tAar6k \\'hQth~nked ihe . _. . . .
..
~
'
.. reptesentativesfor atteildr.ig' and sketched out- the us·go~s· a:n4· objectives m._· .
· . ;int~eting.·
wa8 cit1 infdrmafmeetifig With a fqcits:oli<eip6t{controls. Specific-. ·.·. ....
·. i~w· ~nforcement1ssue~ wefe befug dis'cussed in a~· sep~a.tefora leq by Justice.
.
· Depaitirieni He ·smtedthatthenatuie ofericryptiontechn.ologyii~d. changed •. - . · · ·.·. · ·
· radically in the lasffew- yeats~· The widespread~ptactice aug _reliance on .networking .
colllput~rs had clJ.ffiiged· the-nawn~ . ofdoitlg. bu~ID,es~ an.d ihe#~- i~now widespre'a.d ·
. •. coqnD_e{"ciai.· demand for such encryption ,items t() .secute.l;>l1smess.and _financial.··, ..
•illformatio~; ·. Export. coritr01s
need to be adjustedin li~rofthis~ but it was in .·
th~ interest of all.presentt6 'maintain controlson the export ofstJ:ong encryptiOn to .· •
·..· ' allow nati()'nS ,tipiet6 develop' their national enccyp.tion:po_{icies.·. •. Importan.tly~ the. . ...
widespread use' b{stf6ng. ei,iccyption r~pt.esel}~ ·~igritt,iccint'.chau~nges tdlaw . ·.
etiforcement ·Accordingly,. the uS •has refram~d its .¢ntryptioii policy to promote
....· development and esta~1ishment oftrusted public key niaQ.agement infrastructures:
-:that an6w for key recovery,)leeded by users but aJ.s6 a.toolforlaw enforcement....
This
our
1
will
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:·
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. Aaron noted that he had vi~ited with each ofthe~ouritfies represent~d in·theit .
·
. . capitals; ineaclJ. capital he heaid common concerns onthe effect ofthis growing use
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of encryption- oil law enfo.rceinent andjmblic safety. ·I(was now time to see if these
common concerns could be addressed rriultilaterally. while the OECD guidelin~s ·
.. represent a valuable too-l in pursuing nati~nal encryption policies,this meeti11g could
also ser\!,e as an initial ex~h~ge ofviews~ . :
·
l
This was followed by a presentation by NSA on public key encryption, and the role
- ofpublic key manag~ment infra,structure ~ervices. -the central-- element was that. - -. widesp~ead eiectromc ,commerce would' succ_eed b~st and perhaps only if trust~d
. infrastructure services' emerge to provide for authentication and message integritY. _.· _·
Strong encryption is alsp ne~decl to ehsun~ privacy of data; 'Yith t!wt keytecovery is·.
· atecognizedrequire!llentto ensure access to data in the event ofloss ofl<:t~ys. ·This
_presentation set thetone for-the resfofthe meeting and foc-used discussio11 on an.
infrastntctllr~ that also S11PPOrts tec6verability ofkeys and data.' .
~ach p¥ticipantthen described their nati~nalpolicies. F~o!ll:the :presentations, it
wasd~ar thaftiie l.fK. and France had wen::.~eveloped national poliqies-which are·---_ ·:--
. . - g~ilerally collipatibl~-:witb USp~licy (theuK and Fnince diffet~dfrom/the US in a
·- gr~ater· emphasis· on:ti"t!st~d. third parties· ('f'TPs) ru; the preferred m9:d~lf6r. -. -· _ . _
; · encryptiolJ.).· The
noted that the '':'tinieis ripe''foradjusting expor(cpntrols to .·.
- ·- _
supportnatjonal pqijcies, _and 'di~cusse4its recently.pqblisqedCons~ta,tive P~p~ron· ._
. . p~oposhls'fotlegislation fqr TTP 'provision ofencfyption services. TheNetherlands .
·.•- ·S~eqetfare ih, th,e pt¢~ary ~ta.g~-s ofJ>o~cy deyel~pine~t; b11t we~~- aP)~napl~ · _
aj:i~
to.approaches ·siniilarto t4ose putfocth by the US and'UK. Japan and Can,acla _ - · -· _
. ·-_ - . .· eJtPn~s~ect doubt ov~r the VIability o(key recoyery: The Japanese r~prese#tcitive '·_ . '
. - shit,ed that she was allthonzed· oitly.to' 'qlSCl!SS export contr()ls (reflectillg·tlJ.e . · .' · .·
. ·but¢aucre1tic diVisions in .the (JOJ);.·Japan: stressed it wouldhcniot its W~senaar
ccninnibnents {to requiTe ~p reYie\\7. exports. of eliqryption products) .. 'The' .· .·. ' .· ·.. ·
:·Canadians expressed gener~ skepticlsiri the approaches describ~dby~et.JS, . _
_ _ . · 'FrcinC?e apd JlielJK, ~d said that }(ey ~b~overy was "not a pa11a9ea'; .and th~tfh~ · . · _ ,
.key Management Infrastiuctuie wouldnot\vork.'
_ " ,- - · -. · . · -. · · .----- · .
.· .
1
ur<
I
of
Th~ US: presentation describeq:the October .11996 policy· and the Dec~m:l?er .'30 .·.. ,·
1996 fegtile:ttion anc:l its etnphasis·onrecovery ofplamtextandlaw enforcement·
access._ Se~er~·us compam~s have-received approval:oftheir ~eyreco"Veiy' ·
, h11siness plans and can now· export their DES products. In response to questiqns
. from the UK: and France about the interim liberaliZation for 56 bit DES, the US
.. explamed th~twhile56 bit DES stillposedfonllidableprqblems for national ·
..
· · .. securitY ap.d law enforcement; fu.e. tempOrarY release was to, provjde incentives for-_
. · industry to indudekey recov~ry in their stronger encryption products .. The U~. _
Fouo cuNTON LIBRAf{Y PHoT6copy·SENf?. r TrVi: •.
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·noted that industry considered DES passe from a market perspective and the level.
for most n~w prodllcts in th~·
,was 1:28.bits. The
explained thai i(is now .....
· prepared to allow the ~ee eJqJort_ of tiilliinitedeilcryptionin products that meet key rec_overycriteria, and that several large us companies will soonbring:very ~trqng .· •.
key. recovery product~ to the market.
·
. .. .·
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us
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us
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and the likely ell1ergence of stronger key recovery pr~ducts ·
: The overtaking of DES
: .freely allowed for export appeared to startle mahy in 'therooni and, at least for the :
UK, France, 'Sweden, and the N etherhmqs, jncrease .the sense that a cooperative
...approach to~ncryption is. Iie-ed~d. The U~S. ·discussed the 'issues of selfescro~, ·
.
.
·. ·.
...... . . . . ·.
'..
:.
.
escrow overseas, and cross border r~cognition and developm~nt of compatible .·.
practices arid requirements for tru~ted third partie~, si:ressing that export controls ·.
•should help bl1ild.:an infristructure compatible with OEOD guidelines 'andJhat ·
·. . ·.further- multilatenil discussion was necessary~ .
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.Aft:er fu~· pre~~ntat}ons-of na~ionai ·policies~_· discl!ssion ~r~volved around law . .
. .
.:• - : eilf6rceme11f acces~ . as ~ criteria for export; .treatm~nt key escro\-Vikey recovery' / ,.
.· encryptiojt···expoft8;'iheneedto a<fjustWa$senaar•co~tt'olonencryptiontoref1eet.
.. ,
.' ._· .·_law' ~nf'drteriienJ concern~·
the treatment of''inianwbl~ tt~chnology'' tmder . . · . '. ·. .
...
.· ; W
ass.¢naar}s.Ge#eral -Sqfiw~e Note~·. 11}e lJ;l( ih ,p~cUlar,is 1lqable to e.'tf~ctiye.ly. _.· ·. • .·
· · · coll.tfolJhe.pos#rlgand·ir~:fe~ofsoftw(lfeo~~r~eJhtero~t. Yaijou~ coll1ltri~s
· ·
'riotedtbat
'situation \ve found ourselves ill was cmnpar(lbJe' .tbe'."Prisorter.' s . -'. .
'bilenmi~''riiode,l:Jolilid~jn game.theocy,.~t!re eachpartY,,botkrioWing\vhatothers·· .· .
. · we~e.doing, 'is telllpt~4, tO
c;it(lstic steps .. :Thish~iglltert~d ·th~ s~11s~ of 1:4e' 11eed ·
.. · foi.coorclinatippand,:transparency in·encrypti9npolicie~>Ther_e-wasalso sqtrie···.. .
.
'.. . .
....... ·.
.
, ..
.
.
.
'·..
..
. . · discussioA:ofthe vhibility·ofa kyyrecovecy approach v~rsus one.limited.t9 key· ...
escroWITTPs; With tlie
France judging tQ.eJa,ter Jo: b~ tiiote prefera~le/while .
the lJ,S eX:ptesse~-suppoit for ~ brbader approaeli."Wbi¢.h al~ows-. for· self~escrowand
,'rectivery. ·
·
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and
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to
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.... In r~spohse~to 'the
It(lease i)f DES, otliernatimis indic~t~~fthat they -~e-1.lnder ·. ·. ·. '
.. politic;al pressur~ to
reiease DES, but without cplnlnitments key recovery. ..
· orTTPs. Both the UK and Canada have publisheds.ta:tements ofpresumption of ·. · .
apprgval pfpES export applications. Particularly alafmlng Wastheir'iiritial reaction
'to thefacfthatmany triple-DES key recoverable.productS \vilJsoonbe available arid
. exported 'from thelJS: Canada indicated that it bllghtlikewise be utider sllnilar · . :_
· presstire to ielease triple-DES. ,Other nationsrecoglliied, so!nefor the first time; .
that us industry is moving. forward in this area and hence rapid ihtemationaJ :
' miderstandings on o~eralllo~g-term objectives with ~p_crypti~n must be rea¢hed ..
..
. .
.·
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us,
likewise
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Fouo ciiNTON UBRA~.Y PHOTOCOPY SENSIT;IVE · · ·
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At the conclusion of these discussions, the UK raised the issue ofneXt steps; HMG .·
was prepared to sponsor another meeting ill London at' a more senior level. It was
:an1enable to having this me~ting chaired by Ambassador Aaron, or by a senior·
HMG representative: · This more senior group could set terms of reference for em
export control workllg group to continue discussion of the. issues raised in Vienna~
_ and could also ~onsider the benefit--of establishitigandther working group to discuss·
issues of interoperability (at a high level) and COilnllOU practices. andrequirements
for trusted third parties and certifi'cateauthorities. The US stressed that a.common
·. ·. end go(ll and clear objectives must beprovided by the seni6r:groupforthe various ..
·working .groups to make p~ogress.
.
.
At this point, th~ Ca.Iladian representative; initially opposed to a senior level
meetllg, made a vociferous statement that Canada would not attend unless Germany.
and SWitzerland were also present. Th.e Japanese representative, in what appeared .
·
··
··
· _ to be a coordip.atedmoveni~11t, agrred With tile Canadians.
!
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·.
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•
•
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.. The US retort~dthatittoo.h()ped thattheGennans would attend, and noted that
. th~y had been invited to the Yienna. m~e#fig but declin~d to come,;. Germany will be
inVited to the senior level me~tmg.· .As to SWitzeiland;. the US asked that cquntries
consider n~tional, productim~, mark:~t ShaJ."e, ·and support for law enforcement. Tlie . '. ·.
· Swiss had said, Ui bilateral meetings;. that they were tiofpreparedto suppoifthe .
approach laid out py the US 11or did 'ilieyhave an altirttative. ~pproach._ Until the~·· ....
SWiss ·change their positionorat least indicate active consideration al}d support of '
' law: e11forcement requirements:··the us did. not acqept that a niche prbducer making ·
..
specialized products that .a.ccountedfor,()illy a ,slflall portion oftb,e world;,Wide
. encryption market 'coUld be allowed to ',undermine or veto the efforts ofthe rest of'
the group. ·Certainly,the.US:wouldcontinue its bilatercll .dialogue· ~14 the Swiss. :
After this exchange, the group t:hetiagreed to meet at senior levels in London to .
·continue' discussiop.. · This.Jiieeting Wil'take place on 12 Jun~ 1997. ·
i
'
I
... FOLLOW-ON.STEPS: .·
~1. Reco:Illlllend that US l~w .enforcement and/or national· security agencies ..
undert(;lke to en,sUte~ ~here bilateral relationships exist, .that their counterparts iD.
these othernations are fully jnformed and understand the. goals and steps taken ·by
the US. It was not dear during the Vielma meeting to what degree the law
enforc~ment authorities of the other nations are being kept infoimed or engaged in
the development of their nationalpol1des. Scott Charney, DOJ, has ~ssumed the
. FOUO
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�SENSITIVE.
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action t? touch ba~e with his foreign counterparts and encouragetheir participation .· . •
in.these issues.· . ·
·
· ·
· ·
·~
.
1,.
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'.
. •.2.'·.·For.the .12.June lJK-hosted meeting. of senior participants· from each
.• nation, Alnbas'sador Aaron and Tony Pawson the iJK will bilaterally discuss
.
.
.,
.
. broad agenda in advance.-..
of
•.
•
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.,~.
J .. WorkmglevelUS ...UK_ bilaterals are needed to prepare high-level· issues
paper
terms ofteference for seruormeeting. The bilateral~ will })e preceded by
.· an exchange ofpapers. Action: Michelle O;N~iH,Jim Lewis, Charlotte Knepper, ...
.·. ScottChat;ney.·
and
.. ·
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CLINT.ONLIBRAEY PHOTOCOPY US ONLY
�'
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~ ;~
·Withdrawal/Redaction Sheet
Clinton Library
DOCUMENT NO.
AND TYPE
001. memo
DATE
SUBJECTffiTLE
To Ira Magazine Fr~m Rick Mills re: Latest Version of Draft U.S."
Irish Policy Statement (2 pages)
·
06/23/98
RESTRICTION
P5
COLLECTION:
Domestic Policy Council
Ira Magaziner (Electronic Commerce)
ONBox Number: 13120
FOLDER TITLE:
Ireland Trip
Rhonda Wilson
rw121
RESTRICTION CODES
Presidential Records Act- [44 U.S.C. 2204(a)]
Pl National Security Classified Information[(a)(l) of the PRA]
P2 Relating to the appointment to Federal office [(a)(2) of the PRA]
P3 Release would violate a Federal statute [(a)(3) of the PRA]
P4 Release would disclose trade secrets or confidential commercial or
financial information [(a)(4) of the PRA]
PS Release would disclose confidential advise between tiie.PTesident
and his advisors, or between such advisors [a)(S) ·of the PRA]
P6 Release would constitute a clearly unwarranted invasion of
personal privacy [(a)(6) of the PRA]
·
C. Closed in accordance with restrictions contained in donor's deed
· of gift.
PRM. Personal record misfile defmed in accordance with 44 U.S.C.
2201(3).
RR. Document will be reviewed upon request.
Freedom of Information Act- [5 U.S.C. 552(b)]
b(l) National security classified information [(b)(l) of the FOIA]
b(2) Release would disclose internal personnel rules and practices of
· an agency [(b)(2) of the FOIA]
b(3) Release would violate a Federal statute [(b)(3) of the FOIA]
b(4) Release would disclose trade secrets or confidential or fmancial
information [(b)(4) of the FOIA]
b(6) Release would constitute a clearly unwarranted ·invasion of
personal privacy [(b)(6) of the FOIA]
b(7) Release would disclose illformation compiled for law enforcement
purposes [(b)(7) of the FOIA]
. b(S) Release would disclose information concerning the regulation of
financial institutions [(b)(8) ofthe FOIA]
b(9) Release would disclose geological or geophysical information
concerning wells [(b)(9) of the FOIXJUNTON UBRARY PHOTOCOPY
�Embassy of the United States of America
June 23, 1998
SENSITIVE BUT UNCLASSIFIEJ:)
TO:
Mr. Magaziner
(v-
FROM:
PEO ~ Rick Mills
SUBJECT:·
Latest Version of Draft U.SArish Policy Statement _
Welcome back to Dublin.
Attached is a revised Irish draft of a possible U.S.-Irish Policy Statementon
Electronic Comnierce. New language is in italics; language that would be deleted is
black-lined. Also attached is the original U.S. draft. There are five changes to this draft _ . · from the previous version:
Change #1: ad,ditionallanguage on the "WTO Customs Moratorium.'' Pushed
the Irish on this, but this formulation was as forward leaning as Irish side would be in a
public document. Irish are afraid of incurring EU Commission wrath, if they agree to
language that calls for an extension of the one-year moratorium or, our suggestion, states
Ireland supp-orts a review of whether the. moratorium should be extended. Irish argumerit
is that they are generally in agreement with the U.S. on extending the moratorium, but to
say so irt this document willlessentheir future effectiveness at arguing the issue within
the EU. To get any change on this would require your intervenJion with A/S Tuohy.
Change #2: deletion of "internationally-recognized standards" of
authentication. Deletion of this phase now makes this section completely track the
original U.S. version.
Change #3: Change to "Content" section. The Irish suggested dropping the
·section on "Cryptography" which they had inserted and instead adding this new language
- on cooperation between law enforcement authorities to combat illegal Internet activities.
According to the Irish, this language on law enforcement cooperation corries from the
Minister of J~stice who is concerned that that issue of law cooperation be recognized in
the statement, if at all possible. Suspect Irish Will dropihis, if we strongly object.
Change #4: "Common content-rating system." This is another late addition from
the Ministry of Justice. I told the Irish that this insertion is significant and may not be
· something thatcan be agreed to overnight. The Irish position is that if c,>btaining approval
-for this new laiiguage means the Statement could not be agreed'upon before your
departure, then they will delete it. Irish do not want to hold up agreement just to get his
language inserted.
·
CLINTON LIBRARY PHOTOCOPY
�..
~:..
Change #5:' "lrish~U.S. computer industry." This cosmetic revision reflects a
Washington comment, which your office passed on to us, that, for sake of balance, it
would be good to m:ention both the U.S. and Irish computer industries in this paragraph.
The Irish understand that it still may not be possible to reach agl'eement on a
statement before your departure Thursday morning. They stand ready to respond to any
additional comments or revisions we have tomorrow morning.
·,
If agreement is possible, they like the idea of announcing it at some point before
the close of tomorrow's symposium and then releasing the Joint Statement and a press
release jointly over the Internet within the next several days.
.
Additions to Tomorrow's Program
The leading (and only) Iri~h business-specific radio program, as well as RTE
Television,have asked if they could haveajoint on-the-record interview with you for
five minutes tomorrow before the scheduled 4:30 press roundtable. The 4:30roundtable
will be too late to make _their evening broadcasts. I think this is a very good idea, if you
are game, and we could arrange for it to happen right after lunch'(approx. 14:00) in aside
room at Dublin Castle before you return for the afternoon session of the symposium.
We can talk tomorrow morning and, ifyou·agree, I can arrange it after the.
meeting with the Taoiseach. . ·
See you and your family a little'before 09:00 tomorrow morning. If you need_ to
. reach me tonight, don't hesitate to call me at my home number-- 668-6714.
..
.
.
.
.
CLINTON LlBRAP.Y PH6TOCOP'/
�r--------------------------------------------------------------------------------------
Withdrawal/Redaction Sheet
Clinton Library
DOCUMENT NO.
AND TYPE
001. cable
DATE.
SUBJECT!fiTLE
From USEU Brussels re: Electronic Commerce: Bangemann and
Brittan Staff on International Charter, Tariff Free Proposal (partial) (1
page)
COLLECTION:
03/12/98
RESTRICTION
PS.
/
Domestic Policy Council
Ira Magaziner (Electronic Commerce)
OA/Box Number:
13120
FOLDER TITLE:
ITU - D/Malta
' Rhonda Wilson
rw81
RESTRICTION CODES
Presidential Records Act- [44 U.S.C. 2204(a)]
Freedom of Information Act- [5 U.S.C. 552(b)]
Pl National Security Classified lnformation[(a)(l) of the PRA]
P2 Relating to the appointment to Federal office [(a)(2)·of the PRA]
P3 Release would violate a Federal statute [(a)(3) of the PRA]
P4 Release would disclose trade secrets or confidential conunercial or
financial information [(a)(4) of the PRA]
PS Release would disclose confidential advise between the President
and his advisors, or between such advisors [a)(S) of the PRA]
P6 Release would con,stitute a clearly unwarranted invasion of
personal privacy [(a)(6) of the PRA]
b(l) National security classified information [(b)(l) of the FOIA]
b(2) Release would disclose internal personnel rules and practices of
an agency [(b)(2) of the FOIA]
,
b(3) Release would violate a Federal statute [(b)(3) of the FOIA]
b( 4) Release would disclose trade secrets or confidential or financial
information [(b)(4) ofthe FOIA] ·
.
b(6) Release would constitute a clearly unwarranted invasion of
personal privacy [(b)(6) of the FOIA]
b(7) Release would disclose information compiled for law enforcement
· purposes [(b)(7) of the FOIA]
b(8) Release would disclose information concerning the regulation of
financial institutions [(b)(8) of the FOIA]
b(9) Release would disclose geological or geophysical information
C. Closed in accordance with restrictions contained in donor's deed
of gift.
PRM. Personal record misfile defined in accordance with 44 U.S.C.
2201(3).
RR. Document will be reviewed upon request.
concerning wells [(b)(9) of the FOIAJCLINTON
UBRARY PHOTOCOPY
�...
0.3/13/93
1.3:09
i4J OOi !OOi
.'0'202 647 0158
· ·L':-JCLA.SSIFI ED
Princed 3y: ;.ndre·.• J. Weinsdvenk
('
HOWEVER, NOT A!..L EU i1Z:1E2R 3Ti,TES ARE WILLING 1'0
REFP.AIN FROM !t~POSING NE'-i T .t--XES Otl TH£ INTERFET.
·THERE WAS COUSIDEP~;..E DISCJSSICtl Of THIS AT THS
· ~lEETING AND '!!-'_;: ONE C"O'Rl7!'."i It1 f'.'u<.TICULAR Wi.S
"DIS?LJT;iTIOUS."
·~·m:rl EST OF:ICEF< SUGGEST!':D THAT.
COlTNTRY "Y<l.t-.S 3.ZLG!:V1~1J SHE Ai·"D VE:i<JiOEF LAUGH::D J.J-J::J'
AGREE '!0
SHS. SAID
ECOFIN
Tf-'.J\T
SAID ''YOU
. !{,;'l'£ GOOD SOli'FZCES."
(SeUl VEP~OEF oeSERVED THAT. A!TER USDOC SPECIAL
B;..p.s;v>.A v-'ELLSERY' S. FEBRUARY 19. _MEETING WITH
'COMI~ISSIONER ~lor;TI' S CAEI~lET I REF E) , HE HAD RECEIV<:D A C.!J.L
. 12.
COUNSEL
FROt1 !':OHTI ST;.i"F !'\EMBER J..:'P.Il..NNA VANNI!<! TH.Al-IKING !HM FOR
ARRAJJGitiG THE MF:ETII'lG.
U.UGH!NG, HE SAID TAAT VANNINI HAD
. TOLD HIM ·THAT ~ONTI' :S S!hFF HAD BEEtl t»JAWA.~E TAA! THE EU
DATA P?.on:CTION DI?.2CTIV!: HAD BE:COME SUCH A CC'!lTP.OVERSIAL
ISSUE FOR CC'L~;7R,; O:.S CUTS IDE: Ini': 2\.!:
C01•!:·1EtJT
13.
(Ul CO~li~ENT: EST OFF1CER' POINTED Otrr 1'0 VERHOSF AND
KONTOU THAT I'! WOtrLD BE V<:RY DIFFICULT TO CRE1.TE. ORGMIZE
':t.NIJ SUSTAIN ;, TRA."lShT!...A!'ITIC BUSHlE:SS DIALOGUE FOR THE WORLD,
EVEN Ot-l THE: SI!JGLE SUBJECT OF ELECTRO!JrC COMI~ERCE.
HOVIEV£R,
IF IT COULD BE DONE, !HERE MIGHT BE.MC:RIT IN THE IDEA Of AN
BRUSSELS
04 OF 04
1570
...
•.
VNCLASSII''!ED
4
�Withdrawal/Redaction Sheet
Clinton Library
DOCUMENT NO.
·AND TYPE
SUBJECTffiTLE
DATE
RESTRICTION
001. cable
From AmEmbassy Bonn Re: ADD (Telecoms) Talks up in the air over
Scheurle's illness (4 pages)
10/21197
P5
p02. form
Re: Ira Magaziner's travel (partial) (1 page)
10/09/97
P6/b(6)
003. form
Re: Ira·Magaziner's travel (partial) (1 page)
10/09/97 .
P6/b(6)
004. cable
From AmEmbassy Bonn re: ADD (Telecoms) Talks, German Reaction
to Proposed Agenda Changes (3 pages)
10/10/97
P5
COLLECTION:
Domestic Policy Council
Magaziner, Ira (Electronic Commerce)
ONBox Number: 13121
FOLDER TITLE:
ADD Talks Bonn, Germany October 27-28
Rhonda Wilson
· rw41
RESTRICTION CODES
Presidential Records Act- [44 U.S.C. 2204(a)]
Freedom of Information Act- [5 U.S.C. 552(b)]
Pl
P2
P3
P4
b(l) National security classified information [(b)(l) of the FOIA]
b(2) Release would disclose internal personnel rules and practices of
an agency [(b)(2) of the FOIA]
b(3) Release would violate a Federal statute [(b)(3) of the FOIA]
b(4) Release would disclose trade secrets or confidential or financial
information [(b)(4) of the FOIA]
· b(6) Release would constitute a clearly unwarranted invasion of
·personal privacy [(b)(6) of the FOIA]
b(7) Release would disclose information compiled for law enforcement
purposes [(li)(7) of the FOIA]
b(S) Release would disclose information concerning the regulation of
financial institutions [(b)(S) of the FOIA]
b(9) Release would disclose geological or geophysical information
concerning wells [(b )(9) of the FOIA]
·
National Secui'ity Classified Information [(a)(l) of the PRA]
Relating to the appointment to Federal office [(a)(2) of the PRA]
Release would violate a Federal statute [(a)(3) of the PRA]
Release would disclose trade secrets or confidential commercial or
financial information [(a)(4) of the PRA]
PS Release would disclose confidential advise between the President
and his advisors, or between such advisors [a)(S) of the PRA]
P6 Release would constitute a clearly unwarranted invasion of
·personal privacy [(a)(6) of the PRA]
C. Closed in accordance with restrictions contained in donor's deed
of gift.
PRM. Personal record misfile defined in accordance with 44 U.S.C.
2201(3).
RR. Document will be reviewed upon request.
CUNTON LIBRARY PHOTOCOPY
�IMMEDIATE
UNCLASSIFIED
WHITE HOUSE SITUATION ROOM
PAGE
PRT:
SIT:
SIT:
01 OF 04
MAGAZINER
BANDLER BUTLER MCELDOWNEY SAPIRO TODD
NSC
·-----------------------------------~-----------------------------------------~------
<PREC> IMMEDIATE <CLAS> UNCLASSIFIED
<DTG> 211148Z OCT 97
FM AMEMBASSY BONN
TO RUEHC/SECSTATE WASHDC IMMEDIATE 1562
, INFO .RHDIFCC/FCC WASHDC IMMEDIATE ·
RUCPDOC/USDOC WASHDC IMMEDIATE
RHEHAAA/WHITE.HOUSE WASHDC IMMEDIATE
RUEAWJA/DEPTJUSTICE WASHDC IMMEDIATE
RUEHBS/USEU BRUSSELS
RUCNFRG/FRG COLLECTIVE
UNCLAS SECTION 01 OF 02 BONN 013086
STATE FOR EB/CIP. (VMCCANN, EMALLOY AND TFINTON)
STATE FOR EUR/AGS (EKROPF)
STATE FOR EB/TPP/BTA/DCT (RO'BRIEN)
STATE PASS TO USTR FOR DABELSON AND WCORBETT
USEU BRUSSELS FOR CHELMER
WHITEHOUSE WASHDC FOR MAGAZINER
FCC INTERNATIONAL. DIVISION FOR DCORNELL AND BHAAN
DOJ ANTITRUST DIVISION FOR CWILLNER
DOJ COMPUTER CRIME SECTION FOR B-ESHAVE
USDOC· FOR NTIA/IRVING/SHAW/BURR
. USDOC FOR OGC/BWELLBERRYUSDOC FOR 6320/TD/SE/OT/DENNY-BROWN
USDOC FOR 4212/MAC/EUR/GERMANY DESK
USDOC FOR 3133/USFCS/OIO/EUR/JWILSON
E.O. 12958: N/A
TAGS:
ECPS, ETRD, EUN, GM
SUBJECT: ADD (TELECOMS) TALKS UP IN THE 'AIR OVER
SCHEURLE'S ILLNESS
REF: . (A) CHISHOLM-FINTON TELEPHONE CONVERSATION OF
OCTOBER 2 0 ; (B) BONN 57 0 8 ; (C) BONN 7 6 81 ; (D) BONN 8 0 7 6 ;
E) BONN 12736; (F) CHISHOLM-FINTON FAX OF OCTOBER 21
SENSITIVE BUT UNCLASSIFIED - PROTECT ACCORDINGLY -(U) THIS IS AN ACTION CABLE RECOMMENDING THAT THE ADD
TALKS NEXT WEEK GO FORWARD DESPITE THE ILLNESS OF KLAUS-DIETER
SCHEURLE. SEE PARAGRAPH 7.
. 1.
2. (U) PER REF A,. KLAUS-DIETER SCHEUERLE, FUTURE
PRESIDENT OF THE POST AND. TELECOMS REGULATORY AUTHORITY,
HAS FALLEN ILL AND WILL NOT BE AVAILABLE TO ATTEND THE
ADD TALKS ON OCTOBER 27/28. WE HAVE INFORMED THE POST
AND'TELECOMSMINISTRY OF THE USG DESIRE TO HAVE ARNE
UNCLASSIFIED
-
CliNTON liBRARY PHOTOCOPY
�UNCLASSIFIED
IMMEDIATE
WHITE HOUSE SITUATION ROOM
PAGE 02 OF 04
BOERNSEN PARTICIPATE IN THE TALKS IN HIS FUTURE CAPACITY
AS VICE PRESIDENT OF THE AUTHORITY. THE MINISTRY HAS
MADE IT CLEAR THAT. WHILE IT INTENDS TO INVITE BOERNSEN TO
A DINNER IN HONOR OF THE DELEGATION, .IT IS UNWILLING TO
INCLUDE HIM IN THE TALKS.
· 3. . (U) . IN EXPLAINING ITS POSITION, THE MINISTRY
EMPHASIZES THAT REGULATORY AUTHORITY LIES WITH THE
MINISTRY UNTIL THE END OF THE YEAR, UNDER THE DIRECTION
.OF SCHEUERLE, AND THAT IN SCHEUERLE'S ABSENCE FROM THE
ADD TALKS, REGULATORY ISSUES WILL-BE CAPABLY HANDLED BY
HIS DEPUTY, JOERG SANDER.
SANDER IS SLATED TO BECOME
HEAD OF THE TELECOMS DIVISION. AT THE NEW REGULATORY
AUTHORITY ON JAN. 1, AND, AS SUCH, BRINGS EXPERTISE AND
VALUABLE CONTINuiTY TO THE ADD TALKS.
FURTHERMORE, THE
M'rNISTRY POINTS OUT THAT IT. HAS PUT TOGETHER A HIGH-LEVEL
DELEGATION LED BY STATE SECRETARY LAUFS (DEPUTY MINISTER
LEVEL), TWO PRESENT OR FUTURE DIVISION HEADS (ASSISTANT
SECRETARY LEVEL) - . FEIER AND SANDER, AND AN .ECONOMICS
MINISTRY DEPUTY ASSISTANT SECRETARY (BERGER).
.
.
4.
(U) .ALTHOUGH THE POST AND TELECOMS MINISTRY ITSELF
SOON DISSOLvES, WE WILL CONTINUE TO DEAL WITH MOST OF THE
SAME KEY GOVERNMENT OFFICIALS, WHETHER THE NEW YEAR FINDS
THEM SERVING AT THE POST AND TELECOM DIVISION OF THE ECON
MINISTRY, THE REGULATORY AUTHORITY OR THE FINANCE
MINISTRY. AS SUCH, THE PLANNED GERMAN DELEGATION DOES
CONSTITUTE A USEFUL BRIDGE TO THE FUTURE AND FULFILLS THE
.MAIN GOAL OF FACILITATING AN EXCHANGE OF OPINION AMONG
KEY TELECOMS DECISION MAKERS. A FINAL POINT NOTED BY THE
.MINISTRY IS THAT, AS HOST OF.THE TALKS, IT RESERVES THE
FINAL SAY ON THE MAKE-UP OF ITS OWN DELEGATION.
.
'
.
'
5. (SBU)
OUR MINISTRY INTERLOCUTORS TELL US THAT IT IS
NOT APPROPRIATE FOR BOERNSEN TO TAKE SCHEUERLE'S PLACE AT
THE TALKS FOR A WIDE RANGE OF REASONS.
THERE IS
. CONSIDERABLE. FRICTION BETWEE:r:;f.MINISTER BOETSCH AND
BOERNSEN AFTER MONTHS OF HARANGUING OVER KEY REGULATORY
AUTHORITY POSITIONS (REFS C,D,E), AS WELL AS BETWEEN
SCHEUERLE AND BOERNSEN. FRICTION HAS ARISEN OVER MANY
ISSUES, INCLUDING MOST RECENTLY THE HEATED POSTAL REFORM
DEBATE IN WHICH BOERNSEN, SPD MEMBER OF PARLIAMENT AND
CHAIRMAN OF THE BUNDESTAG COMMITTEE ON POSTAL AND
.COMMUNICATIONS AFFAIRS, HAS BEEN ONE OF THE MOST ARDENT
OPPONENTS OF.LIBERALIZATION. (CO~NT: BOERNSEN HAS BEEN
A SUPPORTER OF TELECOM LIBERALIZATION, BUT HAS COME OUT
AGAINST "JOB KILLING" POSTAL REFORM. OUR CONTACTS TELL
US THAT THESE DAYS HE IS REGARDED AT THE MINISTRY AS "THE
ENEMY". AN INVITATION FROM MINISTER BOETSCH TO BOERNSEN
TO PLAY A LEADING ROLE AT THE ADD TALKS IS THEREFORE A
NON-STARTER. END COMMENT)
UNCLASSIFIED
CLINTON LIBRARY PHOTOCOPY
�UNCLASSIFIED
IMMEDIATE
WHITE HOUSE SITUATION ROOM
PAGE 03 OF 04
6. {U) COMMENT/RECOMMENDATION: WE NOTE THAT THE GERMAN
GOVERNMENT HAS ACQUIESCED ON ALMOST ALL USG PROPOSALS FOR
THE ADD TALKS, INCLUDING OUR AGENDA PROPOSALS: INCLUSION
OF ELECTRONIC COMMERCE/COMPUTER CRIME ISSUES (REF E) AND
.PARTICIPATION OF A LAW ENFORCEMENT AGENCY
(THE LATEST
UNCLAS SECTION 02 ·OF 02 BONN 013086
STATE FOR EB/CIP (VMCCANN, EMALLOY AND TFINTON)
STATE FOR EUR/AGS (EKROPF)
STATE FOR EB/TPP/BTA/DCT (RO'BRIEN)
STATE PASS TO USTR FOR DABELSON AND'WCORBETT
.. USEU BRUSSELS FOR CHELMER
.
WHITEHOUSE WASHDC FOR MAGAZINER
FCC INTERNATIONAL DIVISION FOR DCORNELL AND BHAAN·
DOJ ANTITRUST DIVISION.FOR CWILLNER
DOJ COMPUTER CRIME SECTION FOR B-ESHAVE
USDOC FOR NTIA/IRVING/SHAW/BURR
USDOC FOR OGC/BWELLBERRY
USDOC FOR 6320/TD/SE/OT/DENNY-BROWN
USDOC FOR 4212/MAC/EUR/GERMANY DESK
USDOC FOR 3133/USFCS/OIO/EUR/JWILSON
E.O. 12958: N/A
TAGS : ECPS ETRD EUN GM
SUBJECT: ADD (TELECOMS) TALKS UP IN THE AIR OVER
SCHEURLE'S ILLNESS
I
I
I
AGENDA,· REF F, INCLUDES· MOEHRENSCHLAGER OF THE JUSTICE
MINISTRY). THE POSTAL MINISTRY, AT USG PRODDING, HAS
ALSO DISINVITED DEUTSCHE TELEKOM AG FROM DIRECT
PARTICIPATION, AS A DELEGATE, IN. THE TALKS, NEWS .WHICH WE
UNDERSTAND DT RECEIVED AS A SLAP IN THE FACE. RAW NERVES
ARE EVIDENT EVERYWHERE AT THE MINISTRY AS JAN. 1
APPROACHES, NONETHELESS, OUR KEY .INTERLOCUTORS CONTINUE
TO VALUE THE BILATERAL DIALOG AS AN IMPETUS TO FURTHER
LIBERALIZATION AND ARE LOOKING FORWARD TO NEXT WEEK'S
TALKS IN BONN.
7. (SBU) THE EMBASSY CONTINUES TO SEE BENEFIT IN
MAINTAINING A STRONG DIALOG WITH KEY PLAYERS DURING THE
TRANSITION PERIOD.
IN DECIDING WHETHER TO POSTPONE THE
TALKS, WE SHOULD KEEP IN MIND THE. EXTENT TO WHICH DIALOG
AND USG ADVOCACY HAVE KEPT THE MINISTRY ON THE PATH
TOWARD LIBERALIZATION IN THE PAST YEAR, AT TIMES TO ITS
CONSIDERABLE IRRITATION.
POSTPONEMENT OF THE TALKS AS A
RESULT OF ONE MAN'S UNFORESEEN ILLNESS WILL ALMOST
CERTAINLY CHILL THE DIALOG AT A TIME WHEN THE MINISTRY
IS GRAPPLING WITH KEY REGULATORY DECISIONS.
INDEED, A
KEY CONTACT TELLS US THAT POSTPONEMENT AT THIS LATE DATE
AND FOR THE REASONS GIVEN WOULD BE PERCEIVED AS A
POLITICAL BOMBSHELL AT THE MINISTRY. PLEASE ADVISE.
·uNCLASSIFIED
c
CLINTON LIBRARY PHOTOCOPY
�.i
...·,'
UNCLASSIFIED
IMMEDIATE
WHITE HOUSE SITUATION ROOM
PAGE 04 OF 04
KORNBLUM
<ASECT>SECTION: 01 OF 02
<ASSN>3086
<ATOR>971021105234 M2985597
<ASECT>SECTION: 02 OF 02
<ASSN>3086
<MSGID> M2985597
UNCLASSIFIED
. CliNTON LIBRARY PHOTOCOPY
�6~i
'5'202
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10/14/0i
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Fll _N18M';;I\:;S:Y BO!-IN
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IKFO FRG CU:.;l.it::L·!·lv~
IDTCLl>.~ .--:crTrlN Ol OF 02 !lONN 012736
STATE FO:l. EB/Clt' I V~1<..'UUIIN'
STATE FOR EUR/AGS IE~~O?F)
EI•IA!.t.OY h."'t:'l !fiNTOtll
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OOJ COMPlr.ER CR!~!l !:ll:lCT:;O!; FOR B-E>;;v..vs:
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l"o:)0 iTE~~Co~:S::l TllKS, "(:>:l>M•N :IF.l>.r.7IOK 70
HtOl"OS!tD
hG~NDA
CHANCES
REF: (AI STATE ~85157; (Bl
CONV!i:P.Sl..TI0~ t"\1" l'lr.-r.~~?.- -
CHISHOLM-FINTON ·na.. ~::t-aul'olt:
- ·---'-·-
SP.NSI!IVE BUT UNCLASSIFIED - i'RO'tECT ACCORDINGLY
'
~-
'
Tn!S !3 liN AC'!lON Cl'.:::U:.
E:E~ PAA.l\GlU.PH B.
AND
2 ,
SU!"..MARY: THE .i'OSt
tELECOMS Mli'U ::i'l'Kl WELCOMES us.:;
INPT.TT_ (liO:P l>.l TO !liE PRO.-OSED ADD (TELECOMS) TALKS
hOiltiPJ\.
'!'HE HhliS::Til.Y, H01JE'IF:~,
~F.Mb.!NS PAROCHIAL IN l'IS
APPROACI'! Tv THE ;;ICOE'C OL' Till» Ml':ET:!l'ICS,
l:T 1-U>.S !ll1DRE:S:!;:F.n
CONC"E!RN '!'HA'l' 'l'Kt:: U:><.; t'J<Ut-051\:t..S TO WlCEN ~OTH TIIO '!'Or:cc
AND GERMAN ·GOVEFU-1-lENT AGENCIES PRESt;NT A'l' ·rno: "!F.LJ<:S WILL
PUSH THF. llt:".NI'l?. 'l'OO FAR B£YOND ITS HISTORICAL FRAMEWORK
liND RI!::l< :;nonT<::IV.!'lCliNG 11. NV...\liNGFTJT. o:YrHhN(1P. OF VIEWS ON
I.:UKJ:: TELECOMS I.5.5UES. THE MINI:lTRY ;IU.CO OBJECTS TO TH~
USG PRO?OSAL TO E:XCLT.JDt; l!lUVA'l"IC .!NDUSTR't P"ROM PhR'l' OF Tl!D
'l'l>.l.KSWE ·sEE THE FIRST REACTIONS 1\S SYMPTOM/\TIC u~· '!'til::
<::£H8Rl\LLll crulS:O:l<Vll.TIVE:, Nl'll'ol·PflRWkRD LOOKING S!ANC£ OF THE:
END SUiol!o'..hRY.
l'll:NIS!IW.
3.
..,..,~
llt~Pl..S<V •~r TVF.D ~!olE POSTAL MIN:!STRY' S R!i:Sf'ONSE TO
t:.~c·;
.:....::·.::·;·;.s
~:-:
:-·!i.C!'<) £D R;vr~IC!,~£ {PSF t.J T(") -r~r. l..DD
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rc. .=,!;·.·c;p.;r. ::3a
v~-'i.(.!IGI~s.
UNLLi\.55 Ifl !:D
~
CLINTON LIBRARY PHOTOCOPY
�l0/14/9i
18:24
'B'202 64i i40i
ST.~TE
DEPT - CIP
141010/012
UNCLASSIFIED
Print.ed By; Timor.hy c. Fincon
INTERNATIONAL ALLI/l.NCES - .n.!'l!I·TRUST ISSUES
-------- ....... - --------- ... -------- ..... ----------
4. IN REPLY ?0 THE USG PROPOSAL TO Ir.lCLUDE THE FE:JERJ>..!..
CA.T<TEL OFFICE !N THE DISCUSSION ON INTER...li!ATIONAL
ALLIANCE$, THE •POSTAL MINISTRY POIN.TED OUT THAT THE
ECONOMICS HHHSTRY ~u.s RESPONSIBILITY FOR E:STASLISHING
ANTI -TRUST RULE$. AND POLICY GUIDELINES, WHILE Tim FEDERAL
Ck!<.TEL OFFICE APPLIES THE RULES IN INDlVIDUAL CASES. "T
'THEREFORE HAS It\'VITED DR. MANFRED WITTE, HEAD OF CFFI.CE.
_FOR ECONOMIC-POLITICAL ISSUES IN POST AND :t'ELECOr~S AT THE
· ECON MINISTRY, TO ADDRESS THE DELEGATION ON INTERNAT!miAL ·
A.LLIA!'ICE:S/ !\.NT I ·TRUST ! ssu=:'s, AND DOES NOT PROPOSE TO
I~CLUDE T~E CARTEL O?F!CE IN THE TALKS.
- - - - - - -· .....
---- - - - - - - - - ... - - - - - - - - - ..;
5. THE POSTAL MINISTRY' IS RELUCTt.NT TO EXPM'D THE
BREADTH Ol' ISSUES CN iRE ADD AGENDA BEYOND TRADIT:ONAL
TELECOMS' TOPICS.· IT QUESTIONS, ?OR E;;{AM?LE, . THE USG
FROPOShl TO INCLUDE DISCUSS!ONS·ON CONFUTER CRIME ON THE
AGENDA, Cll'ING A CONCERN THAT SUCH DISCUSSIONS BREAK
TRADITIONAL BOu~DARit.S OF THE TALKS AND COULD ROB
DISCUSSION TIM£ FROM CORE .TELECOMS ISSUES DURING THE ONE-AND-A-HALF DAY
TALKS. WHILE WILLING TO ACCOMMODATE A
BRIEF REPORT ON COMPUTER CRIME fROM A MEMBER OF THE OS
DELEGATION IN THE SCHEDULE. THE POSTAL MINISTRY DECLINES
TO INVITE A COUNTERPA.~T FROM GERM&~ LAW ENFORCEMENT
AGENCIES OR THE JUSTICE MINISTRY.
t;.
0~ DE:VELCF'HEl.:T OF ELECTRONIC COMMERCE, ·THE PCS'l'AL
MINISTRY HAS . INVITED ECON ~I!NISTRi' .DEPUTY ASSISTANT
SECRETARY DR. WO!JFRk"l BERGER TO SP£AK. BERGER'S SCOPE OF
RESPONSIB!L!TY INCLUDES THE DEVELOPMENT OF GER~~
ENCRYPTION ·POL:CY. HIS ~R£SENCE AT THE 7ALKS WILL
THEREFORE i'iAVE VALUE !N TJ-lE DISCUSSION OF COMI."UT<:R CR!ME.
PARTIAL EXCLUSION OF PRIVATE INDUSTRY FROM TALKS
-----------·------------4·-----------··---------
7. LASTLY, THE POSTAL MINISTRY ARGUES THAT PAST ADD TALK
. PRACTICE DID. NOT EXCLUDE PRIVATE INDUSTRY FROM SESSIONS,
AND DOES NOT SUPPORT THE USG PROPOSAL TO RESERVE A
PORTION OF THE AGENDA SOLELY FOR GOVERNMENT-TO-GOVERNMENT
DISCUSSION. THE MINISTRY Ai<.GlJES THAT THE ADD TAJ.KS,
SINCE TH~IR I~CSPTION AT US~ I~IT!ATIVE, HAVE. HAD A
HISTORY OF OPEN DISCUSSION WITH PRIVATE INDUSTRY, k."'D
THAT THE MAIN GOAL OF THE T~Ks·rs NOT TO NEGOTIATE,
BONN
02 OF 02
l~73G
RATHER TO EXCHANGE VIEWS, PROMOTE AN UNDERSTANDING OF
'EACH PARTY'S POSITIONS AND CONCERNS, AND BECOME
ACQUAINTED WITH ONE ANOTHER. THE MINISTRY NOTES THAT
THERE WILL BE AMPLE OPPORTUNITY ~OUND THE TALKS AND
DURING SIDE EVENTS FOR INDIVIDUAL CONFIDENTIAL
DISCUSSIONS, AND CONCLUDES THAT THE MEETINGS MUST T~KE
PLACE WITH PRIVATE INDUSTRY'S FULL PARTICIPATION ..
a .. COMMENT/ACTION: THE POSTAL.MINISTRY HAS TAKEN A
NARROW VIEW OF THE UPCOMING ADD TALKS FROM THE STA.~T. IT
OBJECTED, FOR EXA:'1PLE, TO INVITING SCHLEGEL AND BOERNSEN,
.DUE TO 8ECOt1E VICE PRESIDE:li!TS Ol' THE NEW TELECOMS AND
('OS'rl\L REGUU.70R¥ 1•UTHORITY. ON JA..'I. 1, 1998, TO THE
T~KS, ARG~ING THA:- 7HE R£G~LATORY AU7~0RITY HAS N~T YET
UNCLASSIFIED
2
CLINTON LIBRARY PHOTOCOPY
�ST-\TE DEPT
CIP
UNCLASSIFIED
Printed
By;
Timothy C. Finton
BEEN ESTABLISHED, M'D TB.AT IT WOULD BE UNSEEMLY FOR
BOERNSE.N, STILL A MEMS!OR OF PARLIA."lENT, TO PAATICIPA'!'E IN
TH£ TALKS.
FROM THE STAR'l', THE POSTAL MINISTRY ONLY
RELUCT~!LY INCLUDED ELECTRONIC COMMERCE, ~~ICH IT SEES
AS SEYOND ITS JURISDICTION. ·oN THE AGENDA.
OUR VIEW IS
THAT ·wE ARE UNLIKELY TO SUCCEED IN PERSUADING THE
MINISTRY TO- !NCL'D£ OFFICIALS FROM THE CA."<.TEL Ol"FICE OR
GER!-IJ'Jil L.h.W ENFORCEMENT AGENCIES IN THE TALKS.
HOWEVER,
. IF WE C~'ll DEMONS':'RATE THAT EXCLUSION OF PRIVATE SECTOR
REPRESENTATIVES FROt4 SELECTED PORTIC!-lS OF THE: T.I>LKS IS
· CONSISTENT WITH PJ..ST PRACTrCE (SUCH ;..s EY ·PROVIDING A
COPY OF ll. PREVIOUS AGENDA), THEN WE MAY &E ABLE !0
PREVAIL ON THIS ?OINT.
OUR UNDERSTA.'IDit;G IS THAT l-IE HAVE
IDE:NTI FIE!:! ONLY ONE AGEN!:IA POINT -- "ASPECTS Ol'" I~TO
IMPLEMENTATION" -- f'OR GOVERNMENT-TO·.GOVEFU."M~NT
DISCUSSIONS.
KORNBLUM
F~EASE
ADVISE.
WCLASSIFIED
3
CLII\!TON LIBRARY PHOTOCOPY
141011/012
�Withdrawal/Redaction Sheet
Clinton Library
DOCUMENT NO .
. ANDTYPE
001. memo
SUBJECT!fiTLE
DATE
To the File from Barbara S. Wellbery re: Converstation re Privacy
agreement with Don Kursch and Mike Gallagher (2 pages).
RESTRICTION
PS
COLLECTION:
Domestic Policy Council
Magaziner, Ira (Electronic Commerce)
OA/Box Number: 13122
FOLDER TITLE:
Privacy
Rhonda Wilson
iw51
RESTRICTION CODES
Presidential Recor~ Act- [44 U.S.C. 2204(a)]
. Freedom of ~formation Act- [5 U.S.C. 552(b)]
Pl National Security Classified Information [(a)(l) of the PRA] ·
P2 Relating to the appointment to Federal office [(a)(2) of the PRA]
P3 Release would violate a Federal statute [(a)(3) of the PRA]
P4 Release would disclose trade secrets or confidential commercial.or
financial information [(a)(4) of the PRA]
PS Release would disclose confidential advise between the President
and his advisors, or between such advisors [a)(S) of the PRA]
P6 Release would constitute a clearly unwarranted invasion of
personal privacy [(a)(6) of the PRA]
b(l) National security classified information [(b)(l) of the FOIA]
b(2) Release would disclose internal personnel rules and practices of
an agency [(b)(2) of the FOlA]
b(3) Release would violate a Federal statute [(b)(3) of the.FOIA]
b(4) Release would disclose trade secrets or confidential or financial
information [(b)(4) of the FOiA]
b(6) Release would constitute a clearly unwarranted invasion of
· personal privacy [(b)(6) of the FOlA]
b(7)Reh!ase would disclose information. compiled for law enforcement
purposes [(b)(7) of the FOlA]
b(8) Release wouid disclosl) iJlformation concerning the regulation of
financial institutions [(b)(8) of the FOIA]
· b(9) Release would disclose geological or geophysical information
concerning wells [(b)(9) of the.FO.IAL
·
C. Closed in accordance with restrictions contained in donor's deed
of gift.
PRM. Personal record misfile defined in accordance with 44 U.S.C.
2201(3).
RR. Document will be reviewed upon request.
l.il.IN ruN LIBRARY PHOTOCOPY
�MEMORANDUM TO THE FILE
FROM: BARBARA S. WELLBERY
HE: CONVERSATION RE PRIVACY AGREEMENT WITH DON KURSCH ~nd MIKE
GALLAGHER
-1 raised with Don and Mike the questions raised at yesterday's interagency
meeting,· specifically, (1) how would we finalize an agreement with the European
Commission on data protection and (2) how do we make it binding on the member
states.
With respect to how we finalize the agreement, they thought the best
approach of the three suggestions made at yesterday's meeting was to have Daley
and Monti sign an agreement. According to them, Monti is well respected and does
not carry the disadvantages that Brittain and Bangemann carry. Also, they
cautioned us that dealing with someone other than Monti could be perceived by
Monti as an insult since Mogg reports to him.
'
'
Their view is that we should finalize the agreement as quickly as possible but
that it will be impossible to do it before September, since the Commission pretty
much closes down on Friday~ (I know SBinns will be in for in August and perhaps
she and I can work on drafting the agreement in August.) They. also confirmed that·
we should ask Mogg his views on how to proceed.
Kursch's view is that we should avoid at any cost negotiating with 15
. member states since they will only "nickel and dime us." Instead, we should put
the burden on the Commission and take the tack that we expect the Commission to
make sure the agreement we have with ,them is honored by the member states.
He also cautioned us about getting out in front of the Commission.
According to Don and Mike, only political issues go to the troika of past,
present, and future presidents. They also argue against the US going to the. EU
Council for two reasons. In their view, we want to put the burden on the
Commission of bringing the member states along; they are also concerned that the
· Council will introduce extraneous political issues if we take the issue there. It is
also not clear if the Council needs to approve any agreement on this issue:
They also recommend that we start working with the US side of the TABD
as soon as possible so that they can help us sell this through their European
counterparts and to European governments.
On the issues of visits to key member states, they vacillated somewhat. At
vari()us points, Don suggested that we wait .until we know whether we have
CLII~TOI\! LIBRARY PHOTpCOPY
�problems and at others he suggested visiting all the member states after we have
an agreement. He does think we need to have a particular strategy for Germany.
Noting Germ~ny's tendency to be very strict on data protection and to be very
legalistic, he views Germany as the most likely to be a problem in this area. (I
agree.) He suggested we contact the our embassy in Germany and work with them
on a strategy. (When I spoke t6 Bill Primrosch at St~te, he thought we should plan
. _to visit the key member states as soon as we have an agreement.) Don also
thought we needed to include the Austrians because they hold the Presidency and
that we should consult with Mogg on when and how to do so.
On the question of how we make any agreement legally binding on the
member states, the general view is that it cannot be done in any definitive way. In
the past, we have gotten assurances from the Commission that the EU, its
institutions and member states concur in the agreement. My sense is that it will
have to be done politically.
CLINTON liBRARY PHOTOCOPY
�Withdrawal/Redaction -Sheet
Clinton Library
DOCUMENT NO.
AND TYPE
'DATE
SUBJECT!fiTLE
RESTRICTION
001. cable
From ArnEmb~ssy Burssels re: Eectronic Commerce: Belgian
Priorities for Ottowa (5 pages)
09/28/98
P5
002. cable
From ArnEmbassy Brussels re: Electronic Commerce: Belgian
Concerns on Ottawa and Tax (4 pages)
09/23/98
P5
003. cable
From ArnEmbassy .Kuala Lumpur re: ·E-Commerce: Malaysian
Update (5 pages)
09/24/98
P5
004. cable
Frorri AmEmbassy Madrid re: 20th International Data Protection
Conference Santiago De Compostela, Spain (9 pages)
09/24/98
P5
005. cable
From AmEmbassy Bonn re: German
(partial) (1 page)
07117/98
P5
006.cable
From ArnEmbassy Tokyo re: Electronic Commerce: EU Commission
(2 pages)
07/19/98
P5
Wiretapping.Propo~al
Shelved
COLLECTION:
Clinton Presidential Records
Domestic Policy Council
Ira Magaziner (Electronic Commerce)
ONBox Number: 13122
FOLDER TITLE:
Cables
Rhonda Wilson
rw52
RESTRICTION CODES
Presidential Records Act- [44 U.S.C. 2204(a)]
Freedom of Information Act· [5 U.S.C. 552(b)]
Pl National Security Classified Information [(a)(l) of the PRA]
P2 Relating to the appointment to Federal office [(a)(2) of the PRA]
P3 Release would Violate a Federal statute [(a)(3) of the PRA]
P4 Release would disclose trade secrets or confidential commercial or
financial information [(a)(4) of the PRA]
PS Release would disclose confidential advise between tbe President
and his advisors, or between such advisors [a)(S)of the PRA]
P6 Release would constitute a clearly unwarranted invasion of
personal privacy [(a)(6) of the PRA]
·
b(l) National security classified information [(b)(l) of the FOIA]
b(2) Release would disclose internal personnel rules and practices of
an agency [(b)(2) of tbe FOIA]
b(3) Release would violate a Federal statute [(b)(3j of the FOIA]
b(4) Release would disclose trade secrets or confidential or financial
information [(b)(4) of the FOIA]
b(6) Release would constitute a clearly unwarranted invasion of
personal privacy [(b)(6) of the FOIA]
b(7) Relea.se would disclose information compiled for law enforcement
purposes [(b)(7) of the FOIA]
b(8) Release would disclose information concerning the regulation of
financial institutions [(b)(8) of the FOIA]
b(9) Release would disclose geological or geophysical information
concerning wells [(b)(9) of the FOIA]
C. Closed in accordance with restrictions contained in donor's deed
of gift.
PRM. Personal record misfile defined in accordance with 44 U.S.C.
2201(3).
RR. :pocument will be reviewed upon request.
CliNTON LIBRARY PHOTOCOPY
�11:31
09/29/98
'6'202 647 7407
UNCLASSIFIED
Princed.By: Andrew J. Woinschenk
ACTION CIP-00
ACDE-00 INI.B-01 AGRE-00 AID•.OO
DIN'!-00 DOOE-00
CTME-00 INL•Ol
. U'!ED-00 FCC-01
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EUR•01
li:B-00
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ITC-Ol
TE!DE•OO . INR-00
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ADS-.oo .NSAE-00 NSCi-00 . OMB-01
L·Ol
S'I'R- 00
SS-00
SS0-00
SP-00
PRS•OO
. /025W
NFAT-00 SJI..S-00.
G•OO
------------------6F8558 281726Z /38
LOG•OO
ACDA-08
-CEA-01
INFO
CIA~-00
SRPP-00
H-01
LOC-01
.PA-00
DRL-04
A•OO
DOTE-CO
FRB-00
I.AB-01
OPIC·Ol
USIE·OO
R 281722Z SEP 98
FM AMEMBASSY BRUSSELS
'!0 SECSTATi WASHDC 0077.
INFO USDOC WASHDC
DEPT OF TREASUR~ WASHDC
ALL EUROPEAN UNION POST COLLECTIVE
UNCLAS SECTION 01 OF 04 BRUSSELS 005877
.SENSITIVE
NOFORN
'l'R~ASURY FOR JOSEPH GUTTENTAG, J. WEINER AND M. MUNDACA·
PARIS FOR OECD •• MORFORD/KESHISHIAN
STATE FOR EB/CIP, EB/TPP/BTA/DCT AND EUR/ERA
STATE PASS USTR FOR DON ABELSON
USDOC -FOR NTIA -- BURR AND ITA •• WELLBERY
E.O. 12958: N/A.
TAGS: ECPS, ETRD, XIPR, .EON, BE
.
SUBJECT: ELECTRONIC COMMERCE: BELGIAN PRIORITIES FOR OTTAWA
REF:
(ll.)
_DERSl::/WiiNER/MORFORD TELCONS 9/25/98
Jel BRUSSiLS 5772
(C) BRUSSELS 5842
BRUSSELS
01 OF 04 ·SB77
THIS MESSAGE IS SENSITIVE BUT UNCLASSIFIED. FOR USG USE ONLY.
NOT FOR INTERNET DISTRIBUTION.
~- (SBU)
SUMMARY• ACCORDING TO THE MINISTRY OF FOREIGN
AFFAIRS AND TRADE'S IMFAT) NEW COORDINATOR FORE COMMERCE,
BELGIUM'S NEW TRADE MINISTER HAS MADE E COMMERC~ AND TH~
MULTILATERAL INVESTMENT AG~!EMENT PRIORITIES FOR HIS TENURE
UNTIL B~LGIUM' S JUNE ELECTIONS, AND "WILL NOT BE SATISFIED"
WITH A SOLUTION ON CONSUMER PROTECTION THAT RELIES SOLELY ON
INDUSTRY SELF REGULATION.
AT HIS INSTRUCTION, BELGIUM WILL
CONTINUE TO INSIST IN OECD MD OTHER INTERNATIONAL FORA THAT
CONSUMERS SE ~'GUARANTEED" THE SAME LEVEL OF PROTECTION IN
ELECTRONIC AND NON- ELECTRONIC TRANSACTIONS. THE FINANCE
MINISTRY REMAINS DEEPLY CONCERNED WITH POTENTIAL REVENUE
LOSSES FROM E COMMERCE AND WILL ATTEND OTTAWA "lN FORCE AND
AT A HIGH LEVEL" TO DEFEND ITS INTEREST, BUT PLANS NO
SURPRISES AS LONG AS AGREED POSTIONS ON TAX REMAIN
UNCHANGED. BEI..GIAN OFF I OILS Hli.VE THlil IMPRESSION THAT THERE
HAS BEEN "BACI<Pl::D~t.ING" 'BY SOME, INCLUDING THE US, WHO
EAAI.IER PRESSED STRONG POSITIONS .ON_ THE ISSU~S FOR OTTAWA BUT
NOW APPEAR TO BELIEVE THAT "THE TIME IS NOT RIPI::" li'OR
ENLARGING THE E COMMERCE AGENDA AND MAKING SUBSTANTIVE DECISIONS .. END
SUMMARY
2.
(SBUl FOLLOWING UP ON OUR SEPTEMBER 21 DISCUSSION WITH
UNCLASSIFIED
1
CLINTON LIBRARY PHOTOCOPY
�..
09/29/98
"5'202 6·
11:32
UNCLASSIFiii:D
Printed By: Andrew J. wein3chcnk
, BELGIAN TAX OFFICIALS WHO, WILL ATTEND THE OECD OTTAWA
CONFERENCE ON E~ECTRONIC COMMERCE (REr B) , W~ SPOKE ON
SEPT~MBER 25 WITH THE NEWL¥ APPOINTED MINISTRY OF FO~EIGN
AFFAIRS AND TRADE (MFATl COORDINATOR FOR E COMMERCE, BENOIT
RYELANDT. RYELANDT PROVIDED' FURTHER INSIGHT INTO THE MINISTRY
OF FINANCE'S SPECIFIC CONCERNS WITH RESPECT TOE COMMMERCE
AND TAX AND OTHER BELGIAN GOVERNMENT PRIORITIES FOR OTTAWA,
.AND ON THE NEW TRADE MINISTER'S PRIORITIES GENE~LY ..
-~-----~-----·····---~--
WHERE IS OTTAWA HEADING?
J. (SBU) RYELANOT SAID FIRST THAT .HE IS A "A BIT PUZZLED" BY
THE WAY THE PREPARATORY PROCESS FOR'OTTAWA IS MOVING NOW. A
FEW WEEKS ~0, HE SAID, HE HAD THE IMPRESSION THAT OTTAWA
· WOULD BE "ENLARGING THE E COMMERC£ AGENDA AND TAXING MORE
.SUBSTANTIVE DECISIONS." SOME. DELEGATIONS AND PRIVATE SECTOR
REPRESENTATIVES THEN WERE PlJSHING STRONG POSITIONS AND OTTAWA
APPEARED TO HEADING TOWARDS INTENSE DEBATE. NOW, THE¥ SEEM
TO HAVE "BACKPEDALLED" BECAUSE "THEY SENSE THE TIME IS NOT
RIP~-~. THE US, FOR EXAM~LE, HAD HAD VERY STRONG VIEWS, BUT
NOW APPEARED TO .Bi PUTTING "MORE NUJU.ICE AND NEUTRALITY" INTO
THE OTTAWA DOCUMENTS .
---------------~·······-----------
NEW TRADE MINISTER, NEW DIRECTIONS
·-············--------------------
4.
ISBOl RYiLANDT ACKNOWLEDGED THAT UNTIL RECENTLY THE
BiLGIAN GOVERNMENT HAD NOT BEEN-INTERNALLY WELL ORGANIZED TO
HANDLE E COMMERCE. EACH MINISTRY HAD BElllN I'WU'.GING ITS ISSUES
MORE OR LESS IN ISOLATION, WITH LITTLi INTERNAL COMMUNICATION
AND NO .•BIG PICTURE" PRIORITIZATION; BELGIUM'S THREE REGIONAL
GOVERNMENTS AND LINGOISTI.C COMMUNITIES ALL ADVANCED THEIR
PARTICULAR INTERESTS INOiPiNDiNTLY, AS WELL, SOME, AND !HE:
MINISTRY OF FINANCE IN PARTICULAR, HAD BEEN PUSHING THEIR OWN
AGENDAS. TilE CONCERNS OF THE ACTIVISTS HAD OOMINATEO THE
BELGIAN GOVERNM~'S POSITIONS IN INTERNATIONAL FORA,
-INCLUDING IN THE PREPARATORY PROCESS FOR OTTAWA.
5.
IS~Ol HOWEVER, THE APPOINTMENT THIS. SUMMER OF A NEW TRADE
MINISTER WHO IS CONCUR.P.ENTLY A "POI'IERF"tlL" DEPUTY PRIME
MINISTER, THE MINISTER OF ECONOMIC AFFAIRS AND THE MINISTER
OF TELECOMMUNICATIONS HAS GIV'£~ MFAT Nli:W CLOOT, AND BROUGHT
NEW ATTENTION TO E COMMERCE WITHIN THE BELGIAN GOVERNMENT.
"SINCE: THE MINISTER WEARS FOUR HATS, HE CAN ACT ALONE NOW,
EXCEPT FOR THE MINISTER OF ~!NANCE,~ RYELANDT SAID. As A
RESULT, MFAT HAS MOVED TO BETTER COORDINAT'E BEI.GIUM' S
BRUSSELS
02 OF 04
5877
POSITIONS ON E COMMERCE, WHICH THEMSELVES HAVE BEEN
"MODERATED,AND BALANCED" TO REFLECT THE NEW MINISTER'S
PRIORITIES -- ESPECIALLY ON CONSUMER PROTECTION AND PRIVACY.
'
.
------------------------------~········
DI ROPO PRIORITIES:
E COMMEaCE AND MAI
--------·---·········------------------
G.
(SBU) RYE~ANDT NOTED THAT NEW TRADE MINISTER ELIO DI RUPO
HAS TAKEN A STRONG PERSONAL INT£REST !N E COMMERCE ANC THE
OTTAWA CONFEIU:NCE. REFERRING TO DI RUPO' S POSITION AS THE
SENIORPARTI SOCIALIST M~MSER OF THE RULINO COALITION,
RYELANDT SAID THAT DI RtlPO "KNOWS HE AS A MANDATS ONLY UNTIL
THE UNE ELECTIONS AND ESPECIAL~Y GIVEN HIS SOCIALIST VIEWS
ON GLOBALIZATION AND THE EXTENSION F ECONOMIC RELATIONS
UNCLASSIFIED
2
CLINTON LIBRAfN PHOTOCOPY
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11:32
UNCLASSIFIE:D
Printed By: AndrewJ. Weinschenlc:
WORLloiiDE, HE. SELECTED THES& AS. ISSUES TO CONC£NTRATE ON."
ANOTHER KEY PRIORITY FOR DI R.UPO,·GIVEN HIS POLITICAL
CONSTITUENCY. IS THE MULTILATERAL AGRE~M&NT ON INVESTMENT
(MAil. ~YELANDT ADDED, "THIS SUBJECT, TOO. RAISES THE WHOLE
·PROBLEM OF GLOBALIZATION AND ITS SOCIAL AND tNVIRONMENTAL
CONSEQUENCES. OUR PUBLIC OPINION •• CIVIL SOCIETY, NGO'S,
PARLIAMENT -- IS MUCH MORE SENSITIVE TO THE POTENTIAL IMPACT
TliAN BEFORE. . THE WHOLE ENVIRONMENT }IAs CIU.NGSD -- HENCE DI
ROPO'S INTEREST (REF Cl ."
---~------~---------------~---CONSUMER PROTiCTION AND PRIVACY
7. (SBU) UNDER THi. BROAD TOPIC OF E COMMERCE, CONSUMER
PROTECTION AND PRIVACY ARE KEY INTERESTS FOR OI ROPO,
RYELANDT SAID. "IT IS THE MINISTER'S VU:W THAT CONSUMER
PROTECTION SHOULD BE AT THE SAME· LEVEL WHETHER ~ TRANSACTION
IS ELECTRONIC OR NON-ELECTRONIC. TH2 SAME LEVEL OF PROTECTION
MUST BE GUARANTEED. THAT'S.WHY OUR REPRESENTATIVE IN PARIS
RECEIVED INSTRUCTIONS TO INTERVENE IN THIS DIRECTION. HE
PROPOSED SEVERAL AM~NDMENTS (TO THE OTTAWA DOCUMENTS) TO
UNDERSCORE THIS BALANCE. IT IS NECESSARY TO AMEND THE TEXT.
THIS IS A DIRECT INTEREST OF AND INSTRUCTION FROM ntE
MINISTER -- WE WILL INSIST ON THIS ~T THE NEXT ECSS;"
8. (SBtJl RYELANDT ADDED THAT. "OUR PJ::OPU WILL NOT BE
. SATISFIED IF THE ONLY SO~UTION PUT FORWARD ON CONSUMER
PROTECTION IS S&LF-REGtJLATION, LEAVING THE PRIVATE SECTOR TO
DECID& HOW TO DO IT .•. THIS IS NOT A SATISFACTORY ANSWER TO
OUR CONCERN.
THE OTTAWA PRINCIPLES GUARANTEE THAT THE
CONSUMER WILL GET THE SAME LEVEL OF PROTECTION. THE SAME
LEGAL GUARANTEES SHOULD BE ATTACHEP TO CONTRACTS , " HE ADDED
THAT THIS VIEW IS GENERALLY SHARiD IN EUROPE, WHILE
ACKNOWLEDGING THAT SOME COUNTRIES ARE MORE SENSITIVE ON THE
MATTER T~ OTHERS.
9. (SBU) RYELANDT SAID THAT BELGIUM'S RECENT, HIGH P~OFILE
PAEDOPHILIA CASES ARE A VERY IMPORTANT AND SENSITIVE ISSUE ON
WHICH ALL MINISTERS AND PARTIES IN BELGIUM SHARE CONCERN.
HOWEVER, IT IS A "SIDE ISSUE" FOR OTTAWA AND SHOULD NOT BE A
SUBJECT OF DISCUSSION, ALTHOUGH THE MINISTER .MAY REFER TO IT.
lO.
(SBU) R~ELANDT EXPRESSED OPTIMISM THAT THERi: WILL Be
PROGRESS ON THE ISSUE OF PRIVACY WITH THE INTERNATIONAL
CHAMBER OF COMMERCE'S RELEASE OF PROPOSED STANDARDS AND CODE
OF CONDUCT. BeLGIUM IS IN LINE WITH ITS,£UROPEAN PARTNERS ON
PRIVACY: THE .ICC CODE, WHILE. NOT ENDORSED, IS "PROMISING."
(
FINANCE STILL. CAUTIOUS
11. . (SBUl -MFAT CHAIRED TWO INTERAGENCY COORDINATING MEETINGS
IN SEPTEMBER (WHICM INCLT.lOtD Bll:LGIOM' S NEW AMBASSADOR TO THE
OECD, MR. SCHMIDT, AND HIS DEPUTY), RYELANDT SAID, TO IRON
OUT INTERMINISTERIAL DIFFERENCES AND INTRODUCE THE N!W TRADE
MINISTER'S PRIORITIES INTO BELGIUM'S POSITIONS ON E COMMERCE
IN INTERNATIONAL FORA.. THE FINANCE MINISTRY ~S A K&Y
TARGET. ~YELANDT SAID THAT ~S A RESULT OF THE MEETINGS. THERE
HAS BEEN "MORE OR LESS A MEETING OF THE MINOSP WITH THE
FINANCE MINISTRY• "THEY STILL HAVE CONCERNS, BUT THEY
UNDERSTAND BETTER NOW WHAT E COMMERCE IS AND ITS POTENTIAL
BRUSSELS
03 OF 04
5877
BENEFITS FOR· GROWTJol AND EMPI.OYMENT ,... THAT IT IS NOT JUST
FISCAL" ISSUES THAT ARE IMPORTANT. (THE MINISTRY OF ECONOMIC
UNCLASSIFIED
3
CLINTON LIBRARY PHOTOCOPY
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UNCLASSIFIED
Printed By: Andrew J. Weinllc:henk
AFFAIRS.ALSO HAD HAD AN INSTINCTIVELY CONSERVATIVE, DEFENSIVE
REACTION TO THE WHOLE TOPIC, RYELANDT SAIO, EVINCING CONCERN,
ABOVE ALL ELSE, WITH "PRESERViNG-THEIR REGULATIONS.")
(SBUJ RYELA.NOT AC!<NOWLEOGED THAT THE VIEWS OUTLINED TO
EMBOFFS BY THE MINISTRY OF FINANCE CORRECTLY REFLECT
FINANCE'S CONTINUING DEEP CONCERN THAT GROWTH IN E-COMMERCE
WILL, ·IN THE END. RESULT IN A DECLINE IN TAX REVENUES (REFS).
THE MAIN CONCERN REMAINS HOW TO IMPOSE THE VAT ON ELEC~RONIC
TRANSACTIONS. BELGIUM STRONGLY SUPPORTS .THE EU CONSENSUS
T.HAT THE VAT SHO~D BE COLLECTED TO THE BENEFIT OF THE
COUNTRY IN, WHIC~ THE CONSUMPTION TAKES PLACE.
12.
13.. (SBU) THE FINANCE MINISTRY IS EQUALLY CONCERNED,
RYELANDT SAID, WITH THE POSSIBILITY OF A REVENUE LOSS DUE TO
A DECLINE IN RECEIPT OF CUSTOMS D~IES. WITH THE ADVENT OF ECOMMERCE, MANY GOODS CAN NOW BE ORDERED ELECTRONICALLY AND
DEX..IVERED EITHER PHYSICALLY, IN WHICH CASE THE CUSTOMS
AUTHORITY HAS THE OPPO!tTUN!TY TO COLLECT DtrrH:S; OR DELIVERED
ELECTRONICALLY, BY DOWNLOADING, IN WHICH CASE CUSTOMS DUTIES
CANNOT BE COLLECTED. ·THIS RESULTS .NOT ONLY IN DISCRIMINATION
BETWEEN THE TWO TYPES OF TRANSACTIONS WITH RESPECT TO THE
VENDOR AND CONSUMER BUT ALSO IN A POTENTIAL REVENUE LOSS.
"THERE IS NO OBVIOUS SOLUTION AT THIS TIME, SO THEY (FINANCE
. OFFICIALS I WAN'T TO PRESERVE THEIR RIGHTS, " RYEIJ\NtlT SAID, HE
ADDED THAT IT IS NOT CLEAR WHAT Wit.t. HAPPEN AFTER THE ONE
YtAR WTO STANDSTILL ON IMPOSING NEW CUSTOMS DUTIES ON
ELECTRONIC TRANSACTIONS COMES TO AN ENO; THE .ISSUE HAS NOT
BEEN DISCUSSED BY THE EU'S 113 COMMITTEt SINCE THE GEN~A'WTO
COUNCIL.
14. (SBUJ RYELANDT SAID THAT AS~ RESULT OF MFAT'S RECENT
•COOROINATING" EFFORTS, FINANCE MINISTRY OFFICIALS NOW
UNDERSTAND THAT OTTAWA WILL BE ENDORSING ONt.Y BROAD
PRINCIPLES. THE FINANC~ MINISTRY IS IN FULL AGREEMENT WITH
THOSE PRINCIPLES, AND HENCE, THiRE SHOUX..D BE NO SURPRISES
FROM BELGIUM ON THIS ISSUE. HOWEVER, THE FINANCE MINISTRY
HAD INSISTED.ONBEING REPRES:ENTED AT OTTAWA "IN FORCE AND AT
A HIGH LEVELn TO ENSURE THAT NO UNACCEPTABLE LAST MINUTE
CHANGES ARE MADE WITH RESPECT TO TAXATION IN DOCUMENTS OR
DECISIONS OF THE CONFERENCE. ITS ALSO OEMONS'l'RATES, .RYJ;;LANDT
SAIO. THE IMPORTANCE THE FINANCE MINISTRY ATTACHES TO OTTAWA
AS AN OPPORTUNITY FOR NETWORKING WITH nTHli: INDUS'l'RIALZIED .
WORLD" ON THESE ISSUES IN ADVANCE OF WTO DELIBERATIONS ON E
COI"'MERCE -- WHICH FINANCE BELIEVES MAY BE EVEN MO!tE
IMPORTANT. IN ADDITION TO THE THREE TOP CIVIL SERVANTS AT
THE MINISTRY, THE FINANCE MINISTER'S CHIEF OF STAFF WILL
ATTEND (BELGIAN DEL LIST IN PARA
BELOW) .
BELGIAN DELEGATION
15. (SBU) RYELANDT SAID THAT TRADE MINISTER DI RUPO, WHO HAD
ORIGINALLY HOPED TO ATTEND THE OT.TAWA CONFERENCE, MOST STAY
IN 2ELGIOM TO REPRESENT HIS PARTY IN SENSITIVE.RULING
COALITION BUDGET NEGOTIATIONS. THE 18 MEMBER BELGIAN
DELEGATION WILL aE HEADED-BY YVAN YLIEFF, THE MINISTER FOR
SCIENCE POLICY .. IT WILL INCLUDE RYELANDT HIMSELF; THE
FINANCE MINISTER'S CHIEF OF STAFF, JEAN HILGERS, AND FINANCE
MINISTRY OFFICIALS JEAN MARC DELPORTE, PAUL NECKEBROECK AND
STEPHANE BUYDENS; BELGIUM'S OECD AMBASSADOR SCHMIDT AND HIS
DEPUTY; DEPUTY ADMINISTRATOR GEORGE DENEF AND ADVISOR PIET
STEELAND OF THE BIPT (BELGIUM'S FCC); THE MINISTRY OF
JUSTICE'S ADVISOR ON AUTHENTICATION DR. PATRICK VAN EECKE; DI
RUPO E COMMERCE ADVISOR AND COMP~ER EXPERT MR. POULLET;
MINISTRY OF ECONOMIC AFFAIRS OFFICIALS MR. STRUMMEL AND MR.
ROYENS; AND THE DEPUTY DIR:ECTOR GENERAL OF BELGIUM'S FOREIGN
UNCLASSIFIED
4·
CLINTON LIBRARY PHOTOCOPY
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11: JJ
·alo.z
64 i
no,
SIAIE DErl -
Clr ----
'€!) VVU/ OVU
UNCLASSIFIED
·-
Print@d By: Andrew J. Weinsehonk
TRADE OFFICE, M~. GOFFIN. THE FRENCH COHMUNIT¥ -- ~{ICK IS
"TO!JCHY" ABOTJT AUDIOVISUAL MATTERS, WILL P.LSO BE SENDING THE
LEGAL COUNSEL TO THE MINISTRY OF THE FRENCH COMMUNITY. MADAME
OEOM.
COMMENT
-BRUSSELS
04 OF 04
5877
16.
(SBUJ DI RUPO'S ABSENCE FROM OTTAWA WILL LOWER, PROBABLY
HELPFULLY, THE BELGIAN PROFILE THERE. BENOIT RYELANDTAND
THE FINANCE MINISTER'S CHIEF OF STAFF, JEAN HILGERS, ARE
OBJECTIVE, INTELLIGENT AND PROFESSIONAL OFFICIALS WHO WO~D
BE GOOD POINTS OF CONTACT IN THE BELGIAN DELEGATION FOR ANY
. LAST MINUTE COORDINATION. WE ALSO SUGGEST THAT GIVEN
RYELAN1Yi"' S_..NEW ROLE AS THE MFAT E COMMERCE COORDINATOR AND A
LIKELY CHIEF INTERLOCUTOR IN .THE COMING MONTHS, AND HILGERS'
CLOUT AS THE FINANCE MINISTER'S SENIOR ADVISOR, US REPS TAKE
ADVANTAGE OF ANY OPPORTUNITI~S THAT PRESENT THEMSELVES IN
.OTTAWA TO MEET THEM AND DISCUSS OUR.THINKING ON THE KEY
ISSUES -- ESPECIALLY AS RELATES TO THE .WTO'S UPCOMING WORK ON
. E COMMERCE . THE INVESTMENT MAY . WELL HELP US HEAD .OFF
UNHELPFUL FORA'fS BY. THE BELGIANS DOWN THE ROAD.
CEJAS
_UNCLASSIFIED
5
CLINTON LIBRARY PHOTOCOPY
�...
'Zl'202 647 7407
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..
STAT£DEPT- CIP
UNCLAsSIFIED
Printed By: Andrew J.
Wein~ehenk
ACTION STR-00
INFO
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0 231706Z SEP 98
FM AMEMBASSY BRUSSELS
TO SiCSTATE WASHDC: IMMEDIATE 0026
· INFO DEPT OF TREASURY WASHDC
.AMEHBASSY PARIS
US.OOC: WASHDC
ALL EUROPeAN UNION POST-COLLECTIVE
UNCLAS SECTION 01 OF 03 BRUSSELS 005772
SENSITIVE
NOFORN
PARIS .FOR OECD - MORFORD
AND
KESHISHIAN
TREASURY FOR JOSEPH GOTTiNTAG AND JOANNE WEINER
DEPT PASS USTR FOR DON ABELSON
USDOC FOR
NTIA • BURR AND ITA · WELLBERY
E.O. 12!158• N/A
TAGS; ECPS, ETRD, KIPR, £UN, BE
SUBJ'ECT, ELECTRONIC COMMERCE: BELGIAN CONCERNS ON OTTAWA
AND TAX
REFS:
Al DERSE/GUTTENTAO TELCONS 9/'23/9.8
2) DERSE/MORFORD/I<ESHISHIAN TE:LCONS 9/23/98
BRUSSELS
Ol OF OJ
5772
TltiS MESSAGE IS S'E!NSITIVE BUT UNCLASSIFIED. FOR. USG USE ONLY.
NOT FOR INTERNET DISTRIBUTION.
1. (SSUI SUMMARY: ACCORDING TO THREE SENIOR ~i~GIAN
FINANCE OFFICIALS WHO WILL ATTEND THE OECD'S OTTAWA
CONFERENCE ON E COMMERCE, BELGIUM HAS CONTINUED CONCERNS
ABOUT POTENTIAL LOSS OF TAX REVENUi:S IN CONNECTION WITH
GROWTH IN E: COMMERCE.· THESE CONCERNS NEED TO BE AOORBSSED TO
"AVOID A NEGATIVE REACTION FROM GOVERNMEN'l'S" WHO SHARE THIS
FEAR, THEY SAY. BELGIUM WILL ONLY AGREE IN THE OTTAWA JOINT
S't'ATiMtNT TO "NO NEW TAXES ONE COMMERCE AT THIS STAGE" TO
PRESERVE THE GOVERNMENT'S FREEDOM OF ACTION.UNT'IL IT HAS BEEN
DEMONSTRATED THAT E COMMERCE INDEED INCREASES TAX RECEIPTS.
BELGIUM ALSO WANTS TO AFFIRM IN MoL E COMMERCC: "PROGR.AJIIS AN.O
PLANS" THAT GOVERNMENTS HAVE THE •:tt:'l'ENT AND .'l'Hi TECHNICAL
MEANS TO ENFORCE TAX COMPLIANCE, AND WILL FIGHT '1HARMF1JL TAX
COMPETITION" J\MONG STATES WI'I'H RESPECT' TO ELECTRONIC
TRANSACTIONS . . FRANCE AGREiS, ACCORDING TO THE BELGIANS.
MOREOVER, THE CULTURAL EXCEPTION MUST APPLY UNEQUIVOCALLY TO
E COMMERCE, THE BELGIAN OFFICIALS INSISTED. END SUMMARY
(SBUI IN A LENGTHY DISCUSSION OVER LUNCH ON SEPTEMBER 21
WITH ECONOMIC AND PUBLIC AFFAIRS COUNSELORS, THREE SENIOR
BiLGIAN FINANCE OFFICIALS WHO WILL REPRESENT THE FINANCE
MINISTRY ON THE BELGIAN DELEGATION :IN OTTAWA IN OCTOBER
2.
UNCLASSIFIED
l
CLINTON LIBRARY PHOTOCOPY
tgj UUVOlO
�09/24/98
12:47
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STATE DEPT - CIP
141003/010
UNCLASSIFIEC
Princed By: Andrew J.
Weinschen~
OUTLINED THEIR FEAR THAT THE GROWTH OF E COMMERCE MAY RESULT
IN A SIGNIFICANT LOSS OF TAX REVENUES. THE LUNCH, SET TJP AT
THE BELGIANS• INITIATIVE: ATER A SERIES OF CONTACTS FROM THE
EMBASSY, APPEARED INTENDED BOTH TO REASSURE THE TJSG THAT
BELGIUM GENUINELY WISHES TO SPUR, NOT HINDER, DEVELOPMENT OF
E COMMERCE; BUT AT THE SAME TIME. TO. MAKE CLEAR THAT THE
CONCERN ABOUT A DROP IN TAX REVENUES MTJST BE ADDRESSED TO
AVOID. AS THEY PUT IT; A "NEGATIVE REACTION FROM GOVERNMENTS
FEARING LOSS OF REVENUE."
(SBUJ OVER THREE HOURS .OF ANIMATED OISCUSSION, THE
FINANCE MINISTRY'S MOST SENIOR CIVIL SERVANT, GENERAL
ADMINISTRATOR ~EAN-MARC DELPORTE, AUDITOR GENERAL PAUL
NECKE6ROECK AND ATTACHE STEPHANE BOYDENS -- ALL RE~~O~SIBLE
·FOR TAX COI..LECTION -- Wl!:RE CANDID THAT THEIR CONCERNS S.TEM
FROM THE FACT THAT THEY ARE FIGHTING A LOSING BATTI..E WITH
RESPECT TO TAX COMPI..IANCE IN BEt.GIUM. THERE IS "ANARCHY" IN
THE TVA SYSTEM. THEY SAID. TAX AVOIDANCE. IS. ·A NATIONAL
SPORT." THERE IS NO "CULTURE OF COMPLIANCE"; THOSE WHO
DEVISE MORE EFFICIENT OR INNOVATIVE MEANS TO AVOID PA~ING
TAXES ARE WIDELY ADMIRED HE:~E. ~ELOIAN PRIVACY LAWS TIE THE
HANOS OF ~HE TAX AUTHORITIES IN THEIR EFFORTS TO ENFORCE
. COMPLIANCE:. •THE BIG COMPANIES WHO,CAN FIND WEAKNESSES IN THE
SYSTEM WILL -- THAT'S WHAT WE FEAR'' WITH E COMMERCE AS WELL,
THEY ADDED. "COMPANIES NEED TO KNOW FROM TliE OTJTSET THAT WE
HAVE THE MEANS AND THE INTENT TO CONTROL" PAYMENT OF TAXES ON
ELEC~RONIC TRANSACTIONS.
3.
(SBTJ) AGAINST THIS BACKDROP, EARLY USO CALLS FOR MINIMAL
GOVERNMENT INTERVENTION AND NO NEW REGULATION OF E COMMERCE
HAVE B~EN MISINTERPRETED TO MEAN THAT •THE GO~RNMENT CAN'T
AND WON'T CONTROL ANY'l"HING" ON THE INTERNET, THE BELGIAN
OFFICIALS. SAID. THIS MISPERCEPTION STILL EXISTS IN SOME
BELGIAN GOVERNMENT AS WELL AS PR!VATE SECTOR QUARTERS. IT
WOULD BE WORTH THE EFFORT FOR THi TJSG TO CLARIF~ PUBLICLY
THAT GOV£RNMENTS DO INDEED HAVE A ROLi IN APPROPRIATE
REGULATION 0~ i COMMERCE1 AND THAT THE PRINCIPLE OF
NEUTRALIT~ MEANS NO FAVORING OF, AS WELL AS NO DISCRIMINATION
AGAINST, ELECTRONIC OVER NON-ELECTRONIC TRANSACTIONS. THEY
SUGGESTED.
4.
S. !SBTJ) IN THIS CONTEXT, "DOCUMENTS, PROGRAMS, Pl.JINS 11
RELATING TOE COMMERCE-NEED TO AFFIRM KEY POINTS IN THE
BELGIANS' VIEW• FIRST, THAT GOVERNMENTS FULLY INTENO TO
PROTECT THEIR TAX BASE-·ANO TO ENFORCE TAX COMPI..IANCE AS E
COMMERCE DEVELOPS, AND ~ILL DO WHAT lS NECESSARY TO DO SO;
THAT THEY WILt;· FtGHT TAX ~R.Atlr>; AND THIRD, THAT THE TECHNICAL
MEANS TO ENFORCE TAX COMPLIANCE:, BY TRACING Et.ECTRONIC
TRANSACTIONS, EXIST.
6.
(SBU)
IN ADDITION, BELGIUM WANTS TO PRESERVE ITS "MARGIN
BRUSSELS . 02 OF 03
5772
OF FREEDOM TO ACT" IN THE EVENT THAT "INOUSTRYSELFREGTJLA'l'ION DOES NOT WOR.K" AND THAT GROW'I"H IN E COMMERCE AND
RELATED ECONOMIC: ACTIVITY DOES NOT INCREASE THE TAX BASE BTJT
RATHER RESULTS IN A LOSS OF TAX REVENUES.
BELGIUM THEREFORE
WILL NOT MAKE A BLANKET PLEDGE IN THE JOINT STATEMENT TO
IMPL!:MENT •NO NEW TAxES" ON ... E COMMERCE:. BELGitThf WILL AGREE
ONX.Y TO IMPLEMENT "NO NEW TAXES AT THIS STAGE:." TKE PLEOGE
CAN BE MADE PERMANENT LATER, THEY SAIO, ONCE IT HAS BEEN
DEMONSTRATED IN PRACTICE THAT DEVELOPMENT OF E COMMERCE WII..L
NOT RESULT IN A LOSS OF TAX REVENUES. •TJ:iE MORE REALISTIC THE
JOiNT STATEMENT, THE MORE E:NOURING IT WILL BE," THE BELGIANS
.1\.RGUEO, NOTING THAT OTTAWA, IN ANY CASE, "WON'T BE THE LAST
WORD."
UNCI..ASSIFIEC
2
CLINTO~ UBRAEY PHOTOCOPY
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647 7407
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UNCLASSIFIED
Printecl By• Andrew J. Weinachenlt
'- (SBUJ BELGIUM ALSO FEARS THE POSSIBILITY OF HARMFUL TAX
COMPETITION, WITH SOME STATES SEEKING TO. ATTRACT E COMMERCE
RELTEDINVESTMENT BY TAXING IT AT A MORE ATTRACTIV RATE. OR
NOT CoOPERATING INEXCHANGING INFORW\TION NEEDED BY DIFFERENT
NATIONAL TAX AUTHORITIES TO ENFORCE TAX COMPLIANCE.
THEREFORE, BELGIUM BELIEVES THAT GOVERNMENTS SHOULD AGREE
.THAT THEY WILL COOPERATE TO FIGHT HARMFUL TAX COMPETITION AS ·
WELL.
.
.
B. (SBU) THE BELGIAN OFFICIALS POINTED OUT THAT DISCUSSIONS
OF TAX AND E COMMERCE SHOULD INCLOPE TH~ FINANCIAL WORLD, AS
THE TECHNICAL SOLUTIONS FOR ENSURING TAX COMPLIANCE WILL
INCLUDE THE BANKS, IN PARTICULAR. HOWEVER, THE BIAC·-- THE
BUSINESS ADVISORY COUNCIL TO THE OECD -- INCLUDES PRIMARILY
LARGE COMPANili:S, NOT FINANCIAL INSTITUTIONS. "THE FINANCIAL
WORLD WILL NOT BE REPRESENTED AT OTTAWA," THE BELGIANS
MAINTAINED. GOVERNMENTS ALSO NEED TO KEEP IN MIND, THEY SAID,
THAT THE BIAC CAN AGR.EE TO ANYTHING, BUT HAS.NOPOWER TO
COMMIT.ITS MEMBERS TO ANYTHING. GOVERNMENTS, ON TH~ OTHER
HAND, ARE COMMITTED TO IMPLEMENT WHAT THEY AGREE TO.
9. (SBU) DELPORTE AND HIS COLLEAGUES ALSO ~AID THAT THE EU
COMMISSIONER ~IO MONTI WOULD NOT BE COMING TO OTT~WA
BECAUSE HE "DID NOT WANT TO GIVE THE CONFERENCE ANY
PARTICULAR ST11NDING.". RATHER, THE EU IS PUTTING ITS EFFORTS
INTO DEVELOPING A EUROPEAN STRATEGY FOR E COMMERCE TO RESPOND
TO THAT OF THE US, SELGIUM SUBSCRIBES FULLY TO THIS EFFORT,
THEY' SAII:J. ASKED ABOUT SELGIAN VIEWS ON OTSER ASPECTS o·F E
COMMERCE, DELPORTE REPLIED THAT THESE FALL INTO OTHER
MINISTRIES' JURISDICTIONS AND THEY COULD NOT COMMENT ···OTHER
THAN TO SAY THAT BELGIUM ."WANTS THE. CULTURAL EXCEPTION" TO
APPLY UNEQUIVOCALLY TO E COMMERCE. COMMENT: .FRANCOPHONE
SOCIALIST TRADE, ECONOMIC AFFAIRS AND TE~ECOMMUNICATIONS
MINISTER ELIO DI RUPO, WHO WILL HEAD THE BELGIAN DELEGATION
TO OTTAWA; IS A STRONG ADVOCATE OF EXTENDING THE CURTUAL
EXPCETION TO ACTIVITIES ON THE INTERNET. EDN COMMENT
9: (SBU) AT SEVERAL POINTS IN THE CONVERSATION, THE BELGIAN
OFFICIALS STATED BLUNTLY THAT THEY ARE AWARE THAT BELGIUM IS
A SMALL STATE, WITH LIMITED CLOUT, HENCE, THEY FEAR THAT A
''SOLUTION ~y BE IMPOSED" ON THEM WHICH COULD HAVE NEGATIVE
CONSEQUENCES. APPROACHES WHICH MAY BE APPROPRIATE FOR THE
US, IN I'TS LEG:.L AND CULTURAL CONTEXT, MAY NOT Bl:l ADEQUAT.E
. FOR BELGIUM, HOWEVER, THEY NOTED, EVEN SMALL STATES HAVE.
BLOCKING POWER -- AS BELGIUM DEMONSTRATED IN DECEMBER 1997,
WHEN IT OBJECTED TO THE US-EU JOINT STATEMENT ON E COMMERCE • IN REACTION, ONE ~XPLAINED, TO THE EgROPEAN COMMISSION'S
FAXLORE TO TAKE ADEQUATE .ACCOUNT OF THEIR CONCER.NS.
10. (SBU) IN CLOSING, THE BELGIANS EMPHASIZED AGAIN THAT
THEY ARE NOT AGAINST THE DEVELOPMENT OF E COMMERCE, NOR DO
THEY HAVE ANY INTENTION OF PUTTING A-BREAK ON ITS
DEVELOPMENT. BUT, "WE ARE DEFENDING OUR TAX RECEIPT INTERESTS
-- WE MUST MAINTAIN THEM, " THEY SAID.
11, (SBU) COMMENT: THE BELGIAN GOVERNMENT HAS BEEN HAMPE~ED
IN ITS HANDLING OF E COMMERCE OVER THE PAST YEAR BY INTERMINISTE~IAL RIVALRIES, DISORG~IZATION AND INATTENTION, AND
UNTIL NOW HAS BEEN LARGELY UNRESPONSIVE TO OUR APPROACHES ON
THE SUBJECT. WE ARE NOT C2RTA!N WHAT SUDDENLY HAS PROMPTED
THIS, STRONG BELGIAN REACTION. IT IS POSSIBLE THAT AS. THE
. GOVERNMENT IS l!EGINNING SERIOUSLY TO GEAR U~ !='OR OTTAWA, THE
POLITICAL LEVEL IS NOW t=·OCUSING ON A PROCESS THAT HAS
LANGUISHED, UNTIL NOW, LARGELY IN THE HANDS OF THE
BUREAUCRACY, AND THAT THIS MEETING REFLECTS THE NiW POLITICAL
BRUSSELS
CONCERNS.
03 OF 03
57/2
FURTH~R
PER REFS, WE WILL SEEK
CLARIFICATION OF'
TJNC!.ASSIFIED
3
CLINTON L!BR/-\P.Y PHOTOCOPY
�09/24/98
12:49
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STATE DEPT - CIP
·UNCLASSIFIED
Prin~ed By:
Andrew J. Woin3chen~
BELGIAN THINKING AND PLANS tROM OELPORTE AND OTHERS INVOLVED
IN THE PLANNING FOR OTTAWA AND WILL REPORT FURTHER.
CEJAS
UNCLASSIFIED
4
CLINTON LlBR.AP.Y PHOTOCOPY
�STATE. DEPT - CIP
12.:49
09/24/98
l{lJ
006/010
UNC!..ASSIFIED
i'rinted
ACTION
INFO
By:
Andrew
J..
Weinschenk:
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2.40723Z /38
240650Z SEP 98
FM AMEMBASSY KUALA LUMPUR
TO SECSTATE WASHDC 1312
INFO USOOC WASHOe·
APEC COLLiCTIVE
USMISSION GENEVA
R
UNCLAS SECTION 01 OF 04 KUALA LUMPUR 004418
· St:NSITIVE
USDOC FOR ITA/MAYEDA
E.O. 129SB: N/A
TAGS: APii:CO, ECPS, iTRD; WTRO, MY
SUBJECT: E-COMMERCE: MALAYSIAN UPDATE
REF: (AJKUALA LUMPUR 4345
KUALA LUMP
01 OF-04
4418
l. (U) i'ORTIONS OF THIS TELEGRAM ARE UNCLASSIFIED BUT
SENSITIVE ANP SHOULD NOT BE RELEASED OUTSIDE THE·u.S .
.GOVERNMENT.
2.
(SBU} SUMMARY: (SBUl OVER THE PAST Fli:W WEEKS, WE RAVE
WIDE DISCUSSIONS WITH GOM OFFICIALS AND
R"E:PRESENTATIVES OF THE MALAYSIAN AND U.S. PRIVATE SECTORS
TO GET A READ ON THE STATE OF ELECTRONIC COMMERCE
LOCAt.LY. THE HRONG SENSE OUR INTERLOCUTORS CONVEY IS
ONE OF INTER"E:ST BUT UNCERTAINTY IN ELECTkONIC COMMERCE
AND ITS RAMIFICATIONS. THE UNCERTAINTY IS A MAJOR
OBSTACLE! TO E.-COMMERCE DEVELOPMENT AS COMPANIES DO NOT
WANT TO HNEST SUBSTANTIALLY - ESPECIALLY IN THE CURRENT
UNCERTAIN ECONOMIC CLIMATE - WITHOUT A BETTE~
UNDERSTANDING OF THE LIKELY INVESTMENT ENVIRONMENT. THE!
GOM IS PLANNINa TO UNVEIL A NATIONAL E-COMMERCE STRATEGY
IN NOV!MB!~.
POST IS MAKINO A SUBST.Nn'IAL EFFORT .TO
CONVINC~ U.S. AND MALAYSIAN E·COMMERCE COMPANIES TO
PREPARE CASE STUDIES FOR THE OCTOBER E•COMMERCE TASK
FORCE MEETING. END SUMMARY.
HAD
GROWING INTEREST
3.
ISBUl MARK~T RESEARCH RAS SHOWN 'THAT MALAYSIA HAS
GOOD POTENTIAL FORE-COMMERCE:· ITS (APPkOXIMA.Tii:LY .
. 500,000) INTERNET USERS TYPICALLY SPEND MORE TIME ON-LINE
THAN 'THOSE IN OTHER ASEAN COUNTRIES AND MANY HAVE
ATTEMPTED AN ONLINE TRANSACTION. ALTHOUGH CREDIT CARD
USAGE IN MALAYSIA IS FAIRLY t.OW, THOSE )IOLDING CREDIT.
CARDS TEND TO BE BIQ SPENDERS. U.S. COMPANIES REi'ORT
THAT INTER£ST BY MALAYSIAN COMPANIES IN E-COMMiRCE HAS
BEEN STEADILY GROWING, BUT FEW LOCAL FIRMS HAVE MOVED
FROM INTEREST TO APPLICATION.
(SBU) THERE ARE SEVERAL ~EASONS WHY E-COMMERCE HAS
NOT.YET TAKEN OFF, WITH EXPENSE THE ONE MOST OFTii:N CITED.
WITH THE ASIAN ECONOMIC CRISIS, COMPANIES ARE RELUCTANT
TO ENGAGE IN WHAT THEY SEE AS UNNECESSARY INVESTMENTS.
4.
UNCLASSIFIED
l
CLINTON UBRJI.J'.'{ PHOTOCOPY
�09/24/98
12:49
'Zl'202 647 7407
STATE DEPT - CIP
t.JNCLASSIFIE:O
Prin~ed
Sy: Andrew J. Woinschenk
SMALL BUSINESSES SEE EMBARKING ON E-COMMERCE AS A MAJOR
FINANCIAL COMMITMENT (PARTICULARLY FOR HIRING A LEASED
LINE)· THAT THEY AR~ UNCERTAIN WILL PAY OFF. CEO'S OF
MANY LARGE CORPORATIONS WHICH ARE HAVING PROBLEMS MEETING
PAYROLL cOSTS.ARE NOT INTERESTED IN INVESTING MONEY IN
NEW WAYS OF OOINO SUSINESS, EVEN WHEN SOME ARE PRODDED BY
THEIR CHIEF INFORMATION OFFICERS. WITH REMAINING IN
GOVERNMENT FAVOR IMPORTANT TO THE STRATEGIES OF MANY
LARGE MALAYSIAN COMPANIES, EVEN COMPANIES FAVORABLY
DISPOSED TO ELECTRONIC COMMERCE WILL BE RELUCTANT TO MOVE
FORWARD WITHOUT CLEAR POSITIVE siGNALS FROM THE GOM.
SOME FIRMS HAVE CITED A LACK OF BRAND-NAME .RECOGNITIO~
AND CONCERNS OVER THE SECURITY OF TRANSACTIONS AS
OBSTACLES.
THE GOVERNMENT ROLE
-------·-·········-
5.
(U) THE GOM HAS SET UP A.NATIONAL E-COMMERCE
COMMITTEE (NECCl TASKED WITH FORMULATING A NATIONAL ECOMMERCE ACTION PLAN AND DEVELOPING A RESPONSE TO
PRESIDENT CLINTON'S STATEMENT ON GLOBAL ELECTRONIC
. COMMERCE. THE .NECC IS CHAIRED BY CHU:F SECRETARY TAN SRI
ABDUL HAAIM ALI AND INCLUDES THE SEcRiTAAIES GENERAL OF
ALL CONCERNED MINISTRIES. THE NECC HAS TWO
SUBCOMMITTEES: ONE CHAIRED BY-THE MINISTRY OF ENERGY,
TELECOMMUNICATIONS,- J\ND POSTS . (METP) · IS. CHARGED WITH
LOOKING INTO THE ELECTRONIC INFRAsTRUCTURE FOR ENABLING
E-COMMERCE. THE OTHER, CHAIRED BY THE MINISTRY OF
INTERNATIONAL TRADE AND INDUSTRY, (MITII LOOKS INTO ECOMMERCE TRADE ISSUES. THREE BIG PROJECTS ARE ON THE
COMMITTEE'S AGENDA:
-- Ill (SBU) DEVELOPING A SET OF NATIONAL PRINCIPLES TO
GUIDE D!i:VI:lLOPMENT OF £-COMMERCE • • THESE PRINCU1Iali:.S~AAE
EXPECTED TO.BE UNVEILED IN CONJUNCTION WITH THE APEC
LSADmRS MEETING IN NOVEMB~; ·wE UNDERSTAND THESE
PR~NCIPLES ARE BEING DEVELOPED IN CONJUNCTION WITH ASEAN.
THE ASEAN E•COMMERCE TASK FORCE MET IN JAKARTA ON
SEPTEM'i~iER .18,
THERE. IS A NEAR-FIN.U.. VERSION OE' THE
".ASEAN GUIDING PRINCIPLES ON E-COMNERCE." MALAYSIA
SHOOLD HAVE A FINAL VERSION OF ITS PRINCIPLES BY MID•
OCTOBER (ALTHOUGH THEY MAY NOT 2E ONVEILED UNTIL
NOVEMBER.)
-- 2)
19~9)
(Ul A NATIONAL FRAM~WORK FOR E-COMMERCE (BY MlDTHAT WILL. SET PERFORMANCE INDICATORS, CRITICAL
SUCCESS FACTORS, ·A.No MONITORING MECHANISMS FOR E-COMMERCE
AT THE. CORPORATE, INDUSTRY, AND MACROECONOMIC LEVELS, AS
WE~L AS MECHANISMS TO TRACK E-COMHERCE TRANSACTIONS WHICH
KUALA LUMP
02 OF 04
1118
TAKE PLACE IN THE COUNTRY FOR MACROECONO~IC PLANNING
PURPOSES. IN AODITION, IT WILL LA¥ OUT POLICIES IN THE·
.AREAS OF CUSTOMS O!JTIES, INTERNiilT TAXES, PAYMENT SYSTEMS,
INTELLECTUAL PROPSRTY PROTECTION, PRIVACY, SECURITY,
TELECOMMUNicATIONS INFRASTRUCTURE, CONTENT INDUSTRY
DlilVELOPMENT, AND TECHNICAL STANDARDS FOR
INTEROPERABILITY. MALAYSIA'S MULTIMEDIA SUPERCORRIDOR
HAS SEEN TAPPED BY THE GOM TO BE THE •HUB" OF ALL ECOMMERCS ACTIVITIES IN THE COUNTRY.
·- (3) A NATIONAI. "PLATFORM" TO FACILITATE E-COMMERCE
UTILIZATION BY SMALL AND MEDIUM INPUSTR.IES:
-- (S~Ul ·IN ADDITION, WE UNDERSTAND ONE OF THE GOM•OWNED
.COMPANIES - LIKELY EITHER THE ELECTRIC POWER UTILITY
UNCLASSIFIED
: 2
CLil\\TOl\1 LIBR/-\HY PHOTOCOPY
14]0 i/010
�09/24/98
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STATE DEPT - CfP
tm 008/010
UNCLASSIFU::D
Printed By: AndreY J. Weinschenk
(TENAGA) OR NATIONAL CARMAKER !PROTON) - WILL BE TASKiD
TO HOOK ITSELF UP WITH SUPPLIERS VIA AN INTRANET AS A
DEMONSTRATION TO THE COUNTRY OF E-COMMERCE BENEFITS.
SOM~
INDICATIONS OF EVENTUAL GOM POSITION
-·---------------------------------·-···· ISSUED
6.
(U) AN INITIAL GOM l:l~COMMERCE REPORT
IN
OCTOBER 19~7 MAY PROVIDI:l SOME INDICATION OF WHAT MALAYSIA
INTENDS FOR ITS FRAMEWORK AND PRINCIPLES AND THE
UNDERLYING PHILOSOPHY BEHIND ITS POSITIONS IN APEC AND
THE WTO .. NOTABLY, IN THAT REPORT, THE GOM INDICATED THAT
ITS APPR.OACH WAS GEN£RALLY IN LINE WITH THAT OF THE U.S ..
NE:VERTHEL~SS,
•• INSTEAD OF RECOGNIZING THE LEADING.ROLE OF,THE PRIVATE
SECTOR, MALAYSIA ASSIGNS THE GOVERNMENT THE ROLE OF
. PROVIDING STRATEGIC DIRECTION AND THE NECESSARY
INFRASTRUCTURE AND INFOSTRUCTURE TO FACILITATE THE GROWTH
OF ELECTRONIC COMMERCE ACTIVITIES;
THE REPORT CASTS THE DEVELOPMENT OF ELECTRONIC
COMMERCE IN A NORTH-SOOTH CONTEXT. IT WARNS THAT
Dl:lVELOPED COUNTRIES ARE IN A MORE ADVANTAGEOUS POSITION
THAN DEVE:t..OPING COUNTRIES AND ARGU£S THAT •IN
.
IN'l'ERNATIONl\l. FORA,· Wli: WII,.L AAGUE FOR TH£ PROGRESSIVE
OPENING UP OF OUR MARKET FOR ELECTRONIC COMMERCE AS WE .
NEED TIME TO BUILD UP OUR Et.ECTRONIC COMMERCE
CAPABILITY;"
--A DISADVANTAGE.ATTRIBUTED TO ELECTRONIC COMMERCE IN
THE Rli:PORT IS TJD.T IT MAY .BE USED uAS A MEANS TO OPEN UP
MARKETS." CONSIDERABLE EMPHASIS IS GIVEN TO THE
POSSIBILITY THAT ELECTRONIC COMMERCE. "MAY BE USED AS A
BACKDOOR METHOD TO OBTAIN MARKET ACCESS AND NATIONAL
TREATMENT CURRENTLY DENIED UNDER THE GATS;"
THE NEED TO TRACK ELECTRONIC COMMERCE TRANSACTIONS
FOR THE PURPOSE OF MACROECONOMIC PLANNING IS NOTED. THE
REPORT SUGGESTS THAT ELECTRONIC COMMERCE TRANSACTIONS BE
CHANNELED THROUGH AUTHORIZED FINANCI~ INSTITUTIONS AND
REQUIRING THEM TO IDENTIFY ELECTRONIC COMMli:RCI:: .
TRANSACTIONS BY A SPECIAL CODE.
-- TAXATION ISSUES ARE ALSO KEY TO GOM THINKING. THE
REPORT SPECIFICALLY CALLS FOR ~ NEW FORM OF RECORD
KEEPING TO BE DEVELOPE~TO.ENSURE THAT TAX AUTHORITIES
CAN XEEP TRACK OF ALL TRANSACTIONS ~ TAXPAYER
IDENTITIES SO AS NOT TO ERODE THE.REVENUE SASE. EACH
COUNTRY HAS TO PROVIDE RULES AND REGULATIONS TO ENSURE
TAX COMPLIANCE, ~ TAX AUTHORITIES SHOULD BE EMPOWERED
TO GAIN ACCESS TO INFORMATION OF.AL~ TRANSACTIONS
CONDUCTED THROUGH' ELECTRONIC COMMERCE. FOR MORE
EFFECTIVE MONITORING, THE REPORT C~LS FOR DEVELOPING A
FORMALIZED AUDIT TRAIL FOR PURPOSES OF ENSURING TAX
COMPI.I;JINCE.
(SBUl THE GOM'S TRACK RECORD EVOKES LITTLE CONFIOi.NCE
IN ITS ABILITY TO STIM~TE ELECTRONIC COMMERCE. MANY
FIRMS REPORT THAT IN THE PAST TR~ GOVERNMENT PRESSURED
THEM TO IMPLEMENT ELECTRONIC DATA INTERCHANGE (EDI) WHICH
TURNED OUT TO BE MORE EXPENSIVE AND LESS EFFICIENT THAN
THEY HAD HOPED. ONE: FEDERATION OF MALAYSIAN
MANUFACTURERS REPRESENTATIVE TOLD US THAT HE HOPED THE
GOM WOULD NOT EXTEND ELECTRONIC SUBMISSION OF CUSTOMS
DOCUMENTS SEYOND KUALA LUMPUR'S PORT KLANG - AT PORT
KLANO, MALAYS!~ CUSTOMS WAS REQUIRING SUBMISSION OF BOTH
ELECTRONIC AND PAPER DOCUMENTS THUS INCREASING, RATHER
7.
UNCLASSIFIED
.3
CLINTON LIBRARY PHOTOCOPY
�09/24/98
'B'202 647 7407
12:50
STATE DEPT - CIP
UNCLASs:tFIEO
'Printed By: Andrew J. Weinsehenk
THAN DECREASING, THE COSTS TO COMPANIES. THE PRESIDENT
AND C£0 OF MIMOS (ONE OF MALAYSIA'S TWO INTt~ET SERVICE
PROVIDERS) HAS SIGNALED THAT MALAYSIA MAY WANT TO ATTEMPT
TO LEVY TAAIFFS ON INTERNET COMMERCE SAYING AT A RECENT
KUALA LUMP
03 OF 04
4419
CONFER£NCE THAT "WE BELIEVE THERE AAE VARIOUS
ALTERNATIVES TO A TARIFF-FREE E•COMMERCE, SUCH AS A
PARTIALLY-TARIFF FREE £NVI~ONMENT .•. A COMPLETELY TARIFF
FREE E·CONMERCE COULD POSE SEaiOUS RISKS TO MARKET
PLAYERS .•.. " ITS RECENT IMi'OSITION OF FOREIGN EXCHANGE
·coNTROLS HAS INTRODUCED MORE UNCERTAINTY.
8. (SBU) THE NECC ITSELF ·HAS SEEN CHARACTERIZED MORE BY
INTERAGENCY SQUABBLING THAN PRODUCTIVE INITIATIVES.
ACCOMING TO ONE COMMITTEi STAFF MEMBER, THE cHIEF
SECRETARY IS NOT ACTIVIST AND TAKES THE INITIATIVE ONLY
WHEN PUSHED BY THE MULTIMEDIA DEVELOPMENT CORPORATION
(MDC - FORMED BY THE GOM TO OEVELOP THE MOLTIMEDIA
SUPERCORRIPOR, IT SERVES-AS THE NtCC SECRETARIAT). MITI,
METP, AND TH~ OTH2R AGENCIES .INVOLVED HAVE DEVOTED
CONSIDERABLE TIME ANP 'EFFORT TO FIGHTING ABOUT WHO IS IN
CHARGE. EVEN-WITHIN MITI, THREE DIFFERENT OFFICES
CONTEND FOR POLICY FORMULATION RESPONSISILITY. EACH OF
THE MIN_ISTRIES I~OLVED ON THE NECC TRIE:S TO ASSIGN A
ROLE_ TO ITSELF WHETHER NECESSARY OR NOT. THE MINISTRY OF
DEMESTIC TRAOE AND CONSUMER AFFAIRS (MOTCA), FOR
INSTANCE, HAS ARGUED THAT EACH INDIVXDCAL WEBSITE WITH E·
COMMERCE APP~ICATIONS WILL HAVE 'I'O BE REGISTERED WITH THE
GOM UNDER THE COMPANIES ACT.
MACROECONOMIC CONCERNS
----------·········--
.9. (SBU) UNCE:RTAINTY OVER PAYMENTS MECHANISMS HAS ALSO
HELD I!ACI< E-COMMERCE DEVELOPMENT. THE GOM HAS BEEN
PREOCCUPIED WITH TKE POTENTIAL ADVERSE IMPACT-OF ECOMMERCE ON THE BALANCE OF PAYMENTS. IT HAS THUS
DESIGNED AND DESIGNATED-A PAYMENTS SYSTEM TO ENSURE ALL
E-COMMERCE TRANSACTIONS ARE CAPTURED I!Y THE LOCAL BANKING
SYSTEM. SEVERAL PRIVATE AND PUBLIC SECTOR OFFICIALS INCLUDING A sENIOR MDC OFFICER •• HAVE TOLD US THAT THE
EFFECT OF THESE CONCERNS WILL BE TO MAKE IT TECHNICALLY
ILLEGAL FOR COMPANIES IN MALAYSIA TO ENGAGE IN E·COI'!Mll:RCE
TRANSACTIONS WITH THOSE NOT HOLDING LOCALLY•lSSUED CREDIT
CARDS FROM EITHER MAYBANK OR RHI!. OTHER MAI.AYSIAN
OFFICIALS HAVE, TOLn US THAT THIS INTERPR~TATION IS
INCORRECT. HOWEVER, THIS TYPE OF UNCERTAINTY DOES NOT
EVOKE CONFIDENCE IN POTENTIAL INVESTORS. IT IS PERHAPS.
REVEALING THAT ONE MALAYSIAN COMPANY WHICH HAS INVESTED
IN E-COMMERCE APPLICATIONS - ROYAL SELANGOR PEWTER - SET
UP ITS WEBSITE IN THE UNITED STAT~S AND USES A SINGAPORE
BANI<, FOR ~TS TRANSACTIONS.
AP~C
MAKING A DIFFERENCE
10. . '(SBU) UNDOUBTEDLY, USE OF t•COMHERCE WILt. CONTINUE
INCREASE-IN MALAYSIA OVER TIME. PARTICIPATION IN
MALAYSIAN E-COMMERC~ INTE:RNET FORUMS CONTINUES TO BE
STRONG. DR. HAN CHUN KWONG, MDC SENIOR MANAGER FOR
BORDERLESS MARKETING ltECENTLY TOLD THJ:: PRESS THAT "OUR
GUT FEELING IS THAT WITHIN A YEAR THERE WIL~ SE MORE
ACTIVITIES IN THIS MEA. " ANP THER:£ ARE INFLUEN1'IAL
~~OP~E WHO RECOGNIZE THE POTENTIAL OF E-COMMERCE TO
TRANSFORM THE MALAYSIAN ECONOMY BY CHANGING THE WA~ FIRMS
DO BOSINESS AND RAIS~NG THEIR STANDARDS. ATTENTION TO
QUALITY, AND CUSTOMER SERVICE. ITS RISi COULD ALSO
~0
UNCLASSIFIED
.4
CLINTON LIBRARY. PHOTOCOPY
�09/24/98
12:51
'5'202 647 7407
STATE DEPT - CIP
UNCLASSIFIED
Printed By: Andrew J. Weinsehenk
PRESSOR~ TH~ GOM TO LOWER TRAOE BARRIERS AND DEREGULATE
TRANSPORTATION INDUSTRIES AS COMPANIES' NEEDS TO SERVICE
CUSTOMERS "QUICKLY AND WITH A MINIMUM OF RED TAPE COME
INTO PLAY.
(SBU) APEC'S CONTRIBUTION TO THE E•COMMERCE DEBATE
IN MALAYSIA HAS BEEN A POSITIVE ONE . . MALAYSIAN OFFICIALS
HAVE TOLD US THAT THEY FOUND THE KUCHING E-COMMERCE TASK
FORCE ME_ETING TO BE INSIGHTFUL (ESPE:CIIUILY TiiE PRIVATE
SECTOR INTERVENTIONS) AND HAVING A POSITIVE INFLUENCE ON
DISCUSSIONS REGARDING THE MALAYSIAN FRAMEWORK. MALAYSIAN
PRIVATE SECTOR OFFICIALS VIEWED THE U.S. PROPOSALS FOR A
ROBUST APEC E-COMMERCE TASK FORCE WORK PROGRAM VERY
.POSITIVELY (ALTHOUGH THIS DID NOT TRANSLATE INTO
ENTHUSIASTIC SUPPORT FROM MALAYSIAN GOVERNMENT
REPRESENTATIVES ATTENDING THE-MEETING). IN THE NEXT FEW
.DAYS, WE PLAN TO LOBBY U.S. AND MALAYSIAN PRIVATE SECTOR
OFFICIALS HEAVILY TO CONTRIBUTE CASE STUDIES FOR THE
OCTOBER E·COMMERCE MEETING .
11 . .
. MALOTT
UNCLASSIFIED
KUALA LUMP
6
04 OF 04
44l8
UNCLASSIFI!D
5
CLINTON LIBRARY PHOTOCOPY
. 010/010
�09/28/98
09/~5198
I~FO
15:19
. oo.J
AlOIA
'5'202 482 1865
~002
FRI 12:01 FAX
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· ALL lilOROPiW UNION. I?OST COLLECTIW
DEP~OFRHS ~HCC
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»>CONS'Ct. HONG KONG
USM!SSION GENEVA
SENSI'l'IVE
WHITEHOUSE FOR OMB/~~~ONNELL AND BERNstEIN
MU:TI!:KCUSE FCR OVP/BEIER.
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DEPt PASS USTR FOR ·.!WEl.SOt~ ANl) <:OR.BETT
STATE POR EB/C:IP, EC"R/E~ 1l.NJ). BDR(WE
FCC FOR INTERNATIONAL 5uaEAU
'USOOC: FOP. NTIA ~ wEi.L.Dii!.Y, Ii.VI)tG, DOD. ANti rLA1'Te:N
USCOC FOR ITA U/$ OAVIO AARON ANO.M.O'NEILL
PARIS FOR OECI)
DEPT PASS DHHS FOR JOHN FANNINO
:t.o.
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Ul.G~ I Eir:T. &CPS. F;TRO. E~. SP
$~CT• 20T~ t~Ti~TION~ ~~T~ ~~OTiCTIOH CON~~CE,
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DISTRIBOTION.
:L.
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NOT FO& OSS OOTSIDi OSG.
P'IJitiNG THE SSl?TEM5E& lG ·18 INTBRNAT:tONAJ:. CONF:E:R.ENC:E QN
DATA PROTEc:TlO!i (DPJ, PUTIC:I:PANTS BJtOUGH'l' UP RiPEA.TEtiLY THE
LOOMl~G
ENTkY INTO FO&C:E OF TK!
~ D~TA P~TiCTION
DIRECTIVE
(ot:· l.ll/25/SIB) .._$ .._ Dtv:S:t.O:IIMENT WX:Z:C:J( MQtft,t) JU.~ A. KUOP.
IMPACT CN INT!l~TIO~;.L DATA rt.oWS. i'AAUC'U'ANTS PQSim'f~
'rnBIR POSITI~S, R11NGI1'ZI3 .FitOM SELF•gGULATJ:ON (U ,$, VIII:Wl TO
THE IMPLEMENl'A'l'lON OF S't'IUNGE!NT DAtA PR.OTEC'l'ION AND PR.IVllCY
t.&.W$ (2U CDSP&:CTXVES) • ~TKOUCOK ~DENCK PAA'U~IPANTS
G~I.oT AGRE.KD D!ALOGOE SHOULD CONTINOE, MOST. UCOGNU~
~Hi POSSt2ILITY THERE MAY NOT BE A RAPID SOLUTION WITH
RESPECT TO THZ OlVERGENT U.S. ANO £U POSl,fONS.
tU
IU':I?Rli:SAN'rATlVES ACKNOWLEDGE!) THE OHIGQING l:IIGH•LE'V!OL
CONSULTATIONS BETWEEN WASHINGTON.AND BRUSSELS WO~~
CONTINO%
WITH THE OBJ'EC:TIVE OF REACHING COMMON GROUND. M1INY AP.GUEO
THIS RAPIDLY CHANGING N~TWOR.K &NVI~O~T JUStiFIED THZ NiiD
ONC'LASSIFIED
·:I.
CLINTON LIBRARY PHOTOCOPY
�09/28/98
o9/2.S/98
15:19
NT A/0 A
'fi'202 482 1865
· ~OOJ
FRI 12: 01 F.U
UNCLASS IFI SP
Printed By: An4re~ ~- Wtins~henk
TO DEVELOP NEW VENUES l"OR INTiilRAATIONAl. COOPERATION.
END
SUMMAR.Y.
:1. DURING THE 20TH INTEIU'ATIOw.I.' CONF:OU:NC:.E ON DATA
P~OT~CTION, KELD s£P!£MBER 16•18 IN SANTIAGO 0~ COMPOSTELA,
SPAI~, WIOE·~GING DISCUSSIONS WERE ijELO ON NUME~OOS C~TA
~~otECTION ~ P~~
coNtER~cE ~~TICIPANTS
rssUEs.
lNCLUOED REPRESENTATIVES F'R.OM T~ I:U, . ru MEMBER STATES, THE
COUNCIL OF EUROI?t, AOS'I'RALIA. · ~EW :!:EAIJl.ND. KONG ~NQ,
C::~JW.r..,
~:tTl:~.
JAPAN, AS WELL M BOTH
GO\Ii:Rl>lMENT AND
PRI.VATE SECTOR REI?RES~JtJ..TivtS noM ntE UNITED STATES. ni:S
REPORTING ~LE POCUSiS ON THE ISSUE OF MOST IMMEDIATE
CONCi:Jf.N TO ·u;S, INTERESTS •• THE: lW OI'U• PRoncriOll
DX~ECTXVE, SCHEDUL£0 TO ENTi& INTO EFFECT 0~ ~0/lS/~1.
!COHH!.NT: IT SH01Jl.D BE NCTE:O -rnA'%' :llli'AlN' S DP OIREC'IOR. J"OllN
MANUEL FERNANDEZ LOPEZ WAS ~ ~•ss ~ CONG~IAL HOST TO
U.S. Dll:t..EGl\TION. ONL"l:' AT THE LAST MINUTE, 11Nl) 1\i'TER. ~ICING
•r
TH~E ~~E
ANY
S¥ OTHER DP
OBJil:CTIONS
AUTHORITIES, DID H~
.. ALTER THE: AOs.tm'A TO PE.Rl'IIT UiG TO PRES£NT ITS VI.E\ol~ ON THE_
Et1 DilUlCTIVE AND EXPLAilf O, 8, ti'FOF.TS TO PROVIDE SU.FFI~II!Nr .
li'P..IV~C'i' PllOTECTIO);. 1\LSO, CONTRARY TO THB EXIi'RESS£D WISflES
OF i~RAL OF XIS EO CO~AAT5, FS~~EZ ~FUSED TO
P~Il' OS.G ATTJi:I.'IOANCE AS liN
CLOSED SESSION.)
ttl
oasava
llT
nu:
SE.PTRPII3E.R. 18
v:n:w
l.
ot.P 'SRlJEWlNN PRESEJfl":ED THEi IOU C:OI'l!MlSSlOll' S VIEW OF THE
INTEP.m.'I'IONAL DATA PRO'l"E~TtON (tlil ENVI10NMENT JI'IVE .wttxs·
BEFORE liJN'l'R"! INTO i'ORC~ 01" nil!: EU ~IRic-nvi, ~ NOTED THUli
SAA O~LY roUk-HEMSt~ STATES~ APOPTEO LEGIS~TICN
TRlNgPOiiNG T~ EU Dl~ECTIV! !NTO NATIONAL LAW: ITALY,
GP.lili:Ciil, S~PiN 1\ND THE UK INOU 1 lJi TKE C\.SE OF TH't UJI:,
NAriONAL LEGISLATION WOULD NOT TAK& iFF~CT ~It. 1lFTER ENTRY
%NTO li'ORCS OF THE EO DIRECTIVE,)
li.CI<NOWL:tDGING SQME
•.\."
MEMBER
STATES WOUI.D l'!ISS THE OCTOB!it 25 DXADLINE, H!: SAID IT WAS AN
tiNFORTtnu.TE, Btn:' NOT "gNU.$UAI, I'ACT, TJQ>.'t 1'11EMSE.R. .STATES ARE
OFTEN TARDY IN "''RANSPOSI.NCi EU DI&Ec:TZV!;S FOR REASONS
COMi'i.'I'lliG PP.ESSV!l.ES ·~ i'AAt.%1\MtNTAAY SC!mD'OLES AND
tJNFOR:SSEElll POLITICAL SV£NTS.
SUCH AS
BRUEHANN STRESSED THAT UClC OF
· MEKB!Sll.S'tATt !MS'LZI'ItNTATION DIC NOT INDICA'I'B LACK OF EO
C:OM11%TMR~T To tMB l:l!UC:T!VE. AFTER. ~ING EU MEMBER
ktPR2St~t~T1VES SRUSSELS WOULn NOT HKSITATE TO lMPOSm
t~~~XNGEMEYT ~~OCEE01NGS ON MEMBER STATES WHICH DID NOT
ENACT CORRESPONDING NATION.M. 'I;.EGUWI.UCI(, Hi QttlCXl:t ~:t:JC)
.THAT ~ IF NOT ENACTED IN TIME, TMI!l EU DIRECTIVE WOUI.l)
STILL IMPACT DATA TRANSFE~S. S~&CIF%CALLY, K£ SAID EO DATA
PRO'I'ECTIOlit AUTHOIUTIES COUL:O INVOXZ nur: i:IXR.ECTIVE
MADRID
D2 OF C1
98i6
LEGIS~ION ~£FORE N~TION1L CO~TS IN ~CCRD~C::E WITH. EO
COORT OF JTJSTICE CASE t.AW WHIClt SliiT A IRIC:illiNT FOR. .THIS IN
A DECISION HANDED DOWN 11/19/90. THB DIRSCTIVS WQ~~ a;
SUFPICIENT. FOR COMPLAINANiS
~
S!EK
,.!
'
~~TIONS ~OM
nri:ciQl. C:OtmU.
BRtl'EHANN RELIEVED THE 'FtliJ. lMPAC'l' Oi' 't"HSI 'lilU DIUCTZVEl
WOU!J) EIE GRAI:IUAL tN NATUR!, lMH21l 'flW: lMMtDIA.'IE. WI'I'H 'l'HI!l
'l.
M05T SXGNIF~~ O~TE BE~NG •o/~&/3C01 1 ~ T~~
'Il!ANSITIONAI. PERIOD FO~ ON•GOING b:r..TA TRANSFERS tiNDE:R TKE W
biJI.ECTIVE EXPIRES. N.SO. BECAUSE ~OES DOE l'Q THE EO
D:tJI.XCTIVE W:tLL NOT at Stm!l!:N !Xl£5 NOT ME:lN !HEll. WILL t:Ot SE
5IGNii"ICJil'(l". DRUt:rw<N ~!!:t.:U:VED THI!: DIRECTIVE WO!ILD
PAA.HATlc:JIJ.t.'t ~GE lliE 'Dli.TA PP.OTJi:CTlON UNDSCAPE. KE I:ITG'D
AS li:XMJill.ES THE AC::TIVlTI!S OF . StVERAL EO WOP.KINt:; GROUPS.
TKE ART~CL~ 29 WCR~~NQ QRCUP, CONPRlSED OF iU ME~~tR STATZ
t)ATA PROn:r:TlON AtTTHORITIES, 1\loS SEEN VEl!.Y ACTIVE IN TH!i:
tn:CL!>.SSIFIEC
.a
. CLINTON LIBRARY PHOTOCOPY
,
�15:19
09/28/98
,;_·
~
NTIA!OIA
'5'202 482 1865
~00~
FRI 12: o2 FAX
091'25198
· Pritu:ed ~Y 1 l!ndrew ~, Wein.sc:henk
P~'l' YlilAA OlilVELOE'ING K&TKODOLOQ't '1'0 ASSESS THIRD C:Ct.II'ITRY
tlltiViCY, !N~LU!liNG !XC'EP'I'IONS TO tHE DIRECTIVE'S
.
~t~IR.EMENTS. THE Al:.'tiC:Liil 31 WQRp;;;J;Nt; Q\OQP I WHICH wiLL MEE'l'
AGAIN BiF02E THE END·Ot OCTOBER. HAS ALSQ BEiN V£RY ACTIVE
ON l'HIRD COO'NTP."i ISS'JES- .
.
5. SR.UP:HANN SAiD 'l'Iii TWO -rEMS Of H:tGM t.EV!:L T.lLK.S, BETWEIW'
DGXV Dl"Ri:CTOR. .7QI:tN HOC<:: A}l1) UStlOC UNDli:R.SECra:TAR.'i OAVID
AARON,
n.t.TJSTAATE THERE liRE t.ECIUMP.TZ c:ot;cERNS FOR
C:ITIZENS' DATA i'R.QI:ESSEO lN T'llE tlNIT£0 STATES,
HE S~'l:P lHE
EU ~EMAI~ED INTERESTED ~ S~WKING MA~IAL lKi~OV~TS TO
P~tVENT TKE DISROPTXO~ Oi I~E~ATIONAL DATA T~SFERS.
'DUT, AT 1'HE S.r.ME ni'I.E:, TilE I!:U WANTS A MilliHUI'I BtNC~ 01"
~~TA PROTECTION E'RtNCIPLES TO WHICK ~OMP~!XS MUST ADHERE IF
THEY WISH l'O EXE'O!t't PERSONAL DATA :r!U"Jl"' 7HZ EtJ. THIS
BENCHM:oltlC WQ'O'LI) INC'Ltn:lli: EASY ~ AF!'O~ol'.BI.i !<i;ANS TO
·REGISTER ~OI'!Pt.AIN1'S, ;p,s ~Et.lo AS lNV£STICATION AND·
Uct.tUCATION OP COMPLAIN'IS ~y ).)I INl'EPDmtNf MTHOUTY.
SROEMANN SAID THE ~ECZNT FTC CASE IGEOC.TiiSl WAS A PCSXTIVE
PZVELOP~. BUT ~~G~O tHE U.S. PRIVACY P~2WORK ~AS
STILL ONI.Y A PA'l'CHWORX OF PR.OUCTIVE SYSTEM.! ~ MECHANISNS
AND DID NO't' Ul' THE ENO ~l:t i>UVAC't PRO'!'EC:TION.
BRUi:WI.NN lilom..o Z:OT SPECU.lJI.TE WHEN COMMON GROUND BE:'l'WttN
n
H! ~IT'S)
6.
T.I\Ii: "D'. S. .~ THE :EU POSITtOKS M!GH'!'
.kRACl!ED.
· PROGRESS <FRON T~ EQ VIEWPOINT! TOWARDS GLOBAL
CONSENSUS ON
ADEQUA'!i PR~CY i'ROTECUOli IN Ol"KER l!.EtilONS OF 'fH! WORLD,
INCLUDING:
-~ JI.USTIUILIA (VICTORIA PP.OVINC£ LEGISLATION MAY Pr.vt l'HI
WJI.Y
~TI~·Dp L~ISL~TXON IN AUstRALIA);
• • C:11NN)A (NATIONAL LEGI$~TION Wlt.S IN THE woRXS; PR.OVINOts
STILL NEEDED· TO POLLOlll SOI'r) ;
FOR
•• V.SU~ !tm.OPE !PO~O PASSED A 1U1 DP W »>D
. ESTAB~ISHED A DP C:OMMI3SION; SLOVAK1A PASSED A DP tAW IN
lS98!:
~
-- U'l'IN 1.MD.iC:11N CO'Cl:rl'RIES ARE R.li:\TiiWirlG A MOD:£1. DP LA~ ~~
THE CON7EXf OP 'l'HEi IBBROlo.MiR.IC:AN ~QWi'i:R~CE Of JUSTICE:
MINISTERS.
Bli.UEHJ\NN C:ONCl.tJDEO W.n'H SOHZ COMMENTS ON INTE~ATlO~
Kli: li'R.:&:OIC::UI tHA!, AT THE OCTO&ER '·II O'MAWA
CON'Fi:~t:E, MINISTERS WOIJt.D ·~GREE '1'0 t.AI!IC:UAC:E ON tlA.tA
PROTl.'iC1'lO~ ~ Pfl.'l:'IT~C"i.
'HO~ HE BELI!VEtl n' NCULD NOT GO
'.
COOP:e:ia.TXCN.
FAA ENOUClH o • I'l' WOUl.J) BE NONlliNt!It:G IN QW.ACT:Elt,
~PMoffCUlJ\,M..Y SINCE HANV LDCS W.V2 INADEQUATE OA'l'A
1\.RO'ri:C:T:r.OM- D. • KE HOT ED ALSO bl£ "'10 AA%) ESTAIU.lSHlm A
Wefl.KING GROUP ON E:IJE:C:TRQJO:C COMME::IlC%, l!lai!JDING PRIVAC't
ISSQES, BUT DID NOT gxPSt:T ~RAPID SOLutiON THERE.
8. J'.S FO~ T&CH»I~AL S0Lt1TIONS, IU.Umuool COI'IMI!lNtEJ:) O)l THI!l
P)P PR0Jil0$1l.l., lN WHICK NET gs~ IIUI."t ).CCESS ·WEB SITES laASin
ON '1'HEIR 0~ ~E:1'il!U'IINA'l'ION Oi' ~T . LEViLS OF l)).'T.l.. IIR.OTEc:TION
WERE SUFFICIENT RATHER THAN EST~LISKING A KINI~ PRI~CY
stAlltl11ltb. HE WAIUJEI) THIS. APi>'licACH c:ot:LD I)IKINISH PP.IVAeY
~EVE~S IF NOT IMP~EMENTEC CoaRXCTL~ ~ NOTED ~ JCNE 29
~RID
03 OF O?
997G
MEET:mG OF THE ARTIC.i 29 WORKING GR.Ot:l:i WE SE'411.Al.
1\UE:JI.V~TIONS ~G~ING 't'H!t E'li' li'ROi'OSAL. IJl.WJaNN ccma.'CtlG
.TiU.T IF ~ BROltD•BASED t'IP U>.W !SUCH AS TH! !U DIRECTIVE) IS
TO PROSPEA, THEM PCI.o::I:C:~IU HTJ$1' ASSUIU!: 'ft!Af :DA'l'A
PR.OTiCTION REQCIR~MZNTS ARK ··~l~Y RECOGNIZED TO DE~IVEJl.
PaOTE:C"flON ~c THE INDIVIDUAL.
9.
USDOC NTIA CHIEF COUNSEL S~~ARA WE~wii~Y S~IO THE U.S.
CLINTON LIBR~RY PHOTOCOPY
�09/28/98
09715/98
15:20
NTIA/OIA
'5'202 482 1865
ilJOOS
FRI 12:02 FAX
tJNC:LASSIFIIW
AP~R~~H I~ INFLUENCED BY ~ CONC~ FOR LIMITING GOVERNMENT
!NTERVS~TION IN TXE ECONOMY, AND A HEALTHY aESPECt FOR OCR
P'IR5T AMENDMi:N'r ( t. E. , WE ME STR.IVING 'l'O 13AL1.llC:i PR.Iv.II.CY
~ICHTS OF INDIVICOALS WITR B~FITS ~~ THE.FREE YLOW CF
INFO~TIONl. THE U,S. HAS NO P~S TO AOOP! ~AD.
HO~ttONTAL LEGISLATION, HOWEVER TH~~ ~ A NUMB£i OF
PRIVATB SEC:TOP.. l!o.$ WZ:!JL AS USG, INI'I'IA'l'IVBS BiiliG 'Ctv.LOPED
IN RESPONSS TO i'ltiVZ.c;Y C:CNa:lU'IS.
!:lO'tE; WB PilOVID~ TC
coNFERENCE PARTICIPANTS ~~ROUND INrORMATION 0~ ALL OF THE
FOLLOWING U.S. !NI~IATrJES, AS Wi~L AS VP GORE'S E~iCTRONIC
ANNOUNCEMENT AND THE FTC'S GtOCITIES
AGRE!mtoi!N'l' CONTAIN INti CONi &:NT OiW£R.. )
BIL~ OF RIGHTS
FOUR. tl. S. PRIVA'rE S!CTO!l INITIATIVli:S
-------------------·-··--·······-·---· ll~SGI:
INDOSTRY R~~ER~~CE SERviCE GR.OUP
10.
IRSG,
COMPAtSm~ OF 14 P~IVA7B C:OMP~•l£S, HAS DEVELOPED A SET OF
PRlVli.C'i li'iUNCIPU:S AS WELL AS ENFOR-CEMENT MEetaNISMS.
PAR.l"
cV THE ENFORCEMENT PI!.OCEDUR!: WOULD 1NVOLV'!I J,NN'CJAL AWITS 11.1'
A COiiP~' S EXPENSJ; B1' ~ INDEPDmDtt rUM. 'l'HIS INITIATivt
~S iXPaCTED TO BE FULLY IMP~EKENTED BY 12/99.
11. ONLINE PRIV~ ALL%ANC!1 FORMED I~ uuwg l99S BY
I.PPP.OXIM:I.TEt.Y ~a t1. S. C:Or!PANtES, THIS Jl.t.LIANCE SER.vtS l>.S ll.
CAT)ILYST 'FOR tl. S • .:m:HJS'tP.Y Af>OPTIO!.: OJ i!lllV.lC':l' PRINCIPLES
~ OTILIZES A SEAL fROQ~, WHEREBY COMP~XES ~
AtJ'l'HOR.IZElD TO 'DISPLAY A Sli:AI. iilo.Si:D ON COMPr.tlU>I!:E ll!TH ·
SPEC!P!C ~~VACY STANDAROS.
l2. BBB (!!EttER. BOSINi:SS S~l QNl.ilbU::
l\BD IS A WI!ILL•
ESTABLISHED CONSUHER-COMP~ ~~Ilo.TION ~~ WH1CK FO~ 1EARS
HAS DEALT WITH ISSUES SUCH AS AUTOMOBILE COMP~AIPTi IAPPRDX.
l.O. oao ~OMPLAINts/~l • !liB HAS ALSO AOOPT!D A SEAL
,·;
I:I:II.OGR.AM.
'U, TP.t1ST-Ii: GROUP: TRUST-E :IS COMPR.IS:EI> OF 1.50t1f 130
M!MSSRS~ ;nra.WlNCi NETSO.i'B. Zo.TT. MIOI.OSOFT, AMERICA OltLnlE
AND THE NEW YORK TIMES.
INITIALLY. nu; 1:7SG THOUGHT TRUST•
B' S Sxt!RNAL AU'OlT PROGJW"l DID NOT PROVIOEI 1\DEQO~T'E: PIUVloCY
P~OTECTIO~. HOWEVER.. iSPECIALLY WITH THB ~T OF THE
ONLINE P~IVACY ALL!~CE AND BBB MEASURES, TRUST•E HAS ~E
s::I:Ci.NIFICZo.N'T IMPROVEMDI't$ :Z:N A.C:CORDANC:E WITH OEeO PRIVACY
ot.n:o.::r.. IQS.
USG INlTIA'f:tV!S
l4.
IN JlEUONSi TO TH!l: GROWING CORCERN
xN
nor;· tl. 5 •
. REGARDING ?'-IVZo.CY' 'l'H'i trSG ~ PAOi'OSiD ~ l.tGUU.TION :Z:N
9~VE~ KBY AREAS TO ENSURE PROTECTIO~ 0~ fERS~ ~A~A1
•• MEDic:AL:.
THE ~Ll:tno"ll· AilMlNISTRAUON HAS PROPOSE.D
·
LE:GI.S~:ION TO .PR.OT:tct .MEt>Ic:AL :INFORMATION. ALTlt0t1GH TKIS
QQUIR.ES Ploo.S~E aY CONGRESS, mi: 'U •.~, li.DHINISTRATION CAN
ADOi'T MOST 05" TYE Mltll.li'tm.ES 'tHROUGH 'tKi R.OI.'SMAlaNG P:II.OCESS lT
CONGRESS DOES NOT ACT ~%tHIN THS NEXT ONE·YiAA P2RIOD.
"" c::HI.LCUN: 'tim >J:IHINISTl'I.A'l'ION IS .PR.OMOtlNCi HWURES .
REQUIRING PiU'OR li'AA:&:IItl"JI.l. CONSENT TO PR.OT:E:C'r OULDREN' S
PR.l'GC\'.
• • PINANCD.lz INFORl'lATION 1
TKB V. S. N:IMINXSTAATIIW SiiKS
STRENGTHEN ~i FA1A CREDIT RBPOkTING ACT, TO
CRACK :CO'tlrl ON IDtNT:tTY THEFI' Arm TIOI CtXIIUbaLIZK ACtiON$ TO
OBTAIN'CoNPIDZN'l'IAL ~A'l'A FROM~ B~ THROUGH FR;.UDOLENT
LEa%SLATlON TO
MEANS.
KAC~tC
04 OF 07
9876
101NCTHm USt; :tN:tTIA't'IVE IS TO ESTll.aL%Sil 21. I'~ER.AL·STA'!E
CiOVElUJME:NT ~Iloo.t.OGW TQ Al>PRESS P~I;Y :tl>5tTt$.
15.
· UNCIASSIFIE])
41
CLINTON LIBRARY PHOTOCOPY
�09/28/98
15:20
fr202 482 1865
09-1'25/98 FRl l2: 02 FAX
UNCLASSIFIED
[(l] OOi
NTIA/OIA
141006
15. D~ING THB CO~f~RENC• ~ISCVSSI~ 0~ S&CURITY MEASURES
»OR PROTEC!l~G P~I~CY. WE DIST~lSUT.P C:O~IES OF THE
SEPTEK'OER. lli t1~G ANNOUU~JW!!EN'l' UPDATilJG Otm. iNCR¥1i'Tl011' EXPORT
'POI.Ia, WWIO! laS na: R..€SUL'l' OP' EXTENSIVi iliVIIi:W Of C:~T
R.EGtJLA't"IONS AND IN'l'li:NGIVE tl::t.IU.OG~ \liTH 11. S. INDOSTRY,
z.s;
INPICATED lN REF A. ~HESS ~~ISIOMS WZRE UND~TAREH CNLY -
AFTER THCRCI.lQHLY 'unSW!NQ WHE'i'HE~ TMiSS: MEASURES \olttE
CONSISTi:NT W:tni OUR FWD»>ENTAL N.l.TI_c!l..r.L SECURITY .liNI) LAW
bNFO~tE~!E~'l' CONCER:l'S.
CORRESPOI'It1:tl1Ci IHPL~TING
~EGULATtCNS WILL BE DEV~LOPED I~ TWX NEAR FUTURE. !NOTE1
ON- TKE WHOLE, tH£ ~~A PROTECTlO~ COMMISSIONERS I:IIP NOt S~!M
TO tu.VE .l. SOPIUSTir:AT~tl '!JNr)E:AS!ANI>ING OF TECHtfOI.CGY IN
~ENERAL ~ ENCRYPTION IN P~TIC~-l
FIN~LY. TH~ USG WILL· BE STREN~~~ING OM2'S.
C::OORDINATI~ ltOLEi I~ T!US AREA. Hi: SHO!J.t.D SEE AN EXECUTIVE
o~Ra ON THIS IN THS ~EXT FEW NONTKS.
17.
OTJlli':R. VIEWS
i'PA!lCE t MAJI.~ PINE'!' FROM TKE f'R.E:NCH tiP OFFICE SAIC
DATA-GATHiRING TSCHNOLOGY co~n 3& g~ED r~ EITHER coon
OR. BAD PIJP.POSES, AS A JU;Stlt.T, I'T IS cttiCI.U. THAT DP
PO~I~t!RS ~E GUIDED BY BASIC P~IVACY PR.OTEc::TION
:1.B.
NEW
PRINCIPLES WH~ REG~~INC TKt USi OF THBSB NEW
TilE TR.P:NOI l'OUT:tON l.S THAT, ABOVJ1l ALL.
PUBLIC INFORMATIO~ USiD FO~ ~~UL~ MEANS SHOO~ NOT BE
TECHNOLOGIES.
TOLDA"rl!:.O ~m THill PI"Ja~lC NA'l\JRE OF THIS DATA PO'ES NOT
tlli:P.R~ A li'EUON 01' SIUVACY FOR. .THIS INFOB.Mlcr:I:ON. JI.LSO,
l':I:NiT iuD-WHiN THE PERSONJU. DUA ~ IS NOT/NO!'
it2GUlATEIO, i'HiN THE MOUNT OF li'tll$0Nll.L IUI.T.l. ~v.r.n.loBLE TO ni£
PUBLIC: tlilOPS. FINALLY, PINIT Cll'G 'IHll1 DTCRE1<.SPIII F~QtJENC't
OF •NO SPAH" .APPEAAINQ lN ZMAII.. I'IESSl\IJES J!oS A CALL B"t USERS
FeR ~A!A PROTECTION TO, AT THE LEAST. ?~OHIBIT RETRl~ OF
EMAIL MESS~GES FROM NmWSGR.OUPS ~D. MORE BROADLY, EST~LISH
A WORLDWIDE- •CODE OE MANN!~S.~.
l.9. NEW ZEALANO:
BRUCE SI..toNE FilOM !1tW z:~· S DP AG.El~C't
SAID THI RECENT ~SG ACTIONS IMSNTIONiD IN P~· .4) ~A
CONSIDERABLE-STEP FORWARD; EVEN IP IT ONLY AFFECTED THREE
St:C!ORS.
HE INTEIU'~TED U.S. C:ONC~S TO ~E. A FEAR 110RE OP
Pli.IVAC:Y LAWYERS, :NOT PIUVACY U.W, .::ITING THE t1. S. LECi.r.l.
c:LIMATE CF PCTEN'ri~ Htrwli: A~~S ~ CAMlUlES. St.t\NE
ii.!it.l!WED THE ESTASl..IS!iMiN'.r OF. Jl U.S. CP AtrrHOIU'I'Y WOULD BE
ADVANTAOEOOS IN ~lEVI~TING THIS AND ~HAT ~SPONSIBLS DIRECT
MAR!C!T:tNG li.GI>NClU 00 NOT \aNT TKEl:R REPt1TATIOlll9 SUU.IEJ:l BY
A ~~W lRRE5PC~Sl8~~ P~TXES.
20.
inu.Y:
ll.n'ER rU'PI.AWING CSG EFFOa'tS TO PltOTiCT
PR!VACY, CITING-vP GORE'S ELECTRO~IC BILL OF RIGKTS, STEFANO
RODOTA OF ITALY'S tiP AGi:NC:Y SAID NEVER.11:1:ELESS TlSAT IF
. INDtJSTJlY SELl"-REGm.:.a.'t'XCl'il tiOEii NeT WQIU:_- TXZ E1l WOQW TM£
ACTIONS TO PR.Ol'Ec:T 4HZ i'RIVACY QF 11"8 CUUii:NS, Hi: l.PPnl
'l".U..T THE: P!tXW.C:Y ~CT ~6 CRBATEP nt 'rHi U.S., , BUT NoW 'IHii:
._t;VE:L OF PP.IVACY PROTECTION IS HICH£R %N EUllOPE THAN IN THE
U.S. HE CIT!D Ttm U.S. t.SGlS~T:Z:VE ~c:TI:QNS QN FDWICI~ ~
MEDICAL l:).l.TA. llS a.%AA :I:~Z:CATORS THAT efJRRENT PRIVACY
PROTECTION IN THE 0. S. IS INSUFFICIENT.
FINALLY,
EMPHASIZED THAT MUTUAL INtEOMTION OF U.S~--ANl) EO PR.IVACY
POLI~IES SMO~ c::t.EUL.Y lilli: A. COMMOJ:il· O~c::TlVil- C::t.a.WIO
HE
~cam:t.LI, ALSO FROM I'tl.LY' S DP AGENCY. S~ID OVEIU.Y
tl~ ~EGtn.AUON COOL]) END Ui' HiW'I:t~Ci Jl:t) COMiANltS.
ME THEREFORE SUGGESTED THAT, IN ADD1Tl0~ TO CONIINVING
_ S'l'lUNCEl'lT
Ul"Olll' S TO CONVJ:NC:E: TKE tJ. & • TC Sft _UII .II. PJli:VACY JoGENC:Y".
AN
l:lALANCE BETWEEN ~. 5, • Et1 JI.N!) ASIAN POSITIONS •. PR.IOR.tT~
ISSO'ES 70 liE UNDER-TAKEN !.Y T_HIS SOA.Rb WoUL:O SS ..PtR.SOII!AL
tJ~fA
INTERNATIO~Al.. BO~~ SHOULD BE ESTABLISREtl TO STRIKe A
tJNCLASSIFJ:F;P
s
CLINTON LIBRARY PHOTOCOPY
�09/28/98
097'~5/98.
~202
15:21
NTIA/OIA
f4Joo8
~007
By: Andrew J. WeinJchenx
Prin~~d
P~OT!eTION,
· MN'R.IO
OF
AUTHENTI~~TION
OS OF 07
~ECTRONIC
TaANSlCTIONS AND
SISH
STRONG CRYPTOCi'F..Aii'IiY,
T~ILLION BUS!N~SS.
TOG,!HER TO AVOlO
~l.
482 1865
FRI 12: OJ .FAX
GIV&N ESTXPU.TE.S: I't %9 NOW A
MANOANELLI ORGSC
S1.~
WORK
OIS~U?flON.
sn;~ ~o
HONG KONG:
~ P~TIES
ot
No:t~ l(ONG' s oP AGENcY,
U.S. ELiCTRONIC.5ILL OF
KONG WAS DEVELOPING A SIMI~ DOCUME~T.
LAU BELIEVED O~OPMENT~ IN T~IS ~A SHOOLD BE MARXiT··
oRIVEN ~m· L!o BY !HE PRIVATi i~cToR, sur. A REc~To~Y
VIUJ.lEWORX WAS NECESSM.Y TO PP.QTEC:T CONS~S.
tHi
AND SAID
_APPRECIAT~O
~IGKTS
DEScaiPTIO~
Oi
TH~
go~a
CWlU>A; EMP~IZING TKAT :t.E:CISr.AtlON ALONB C.NnlOT
Z2.
~ROTtCT
PaiVACY. ONTARIO DP AGiNCY
~
ANN
CAVOQ~I~
SAID
UC:RNtCAL TOOLS ARE ALSO NECESSARY.
CAVOUKI~ CIT&:%' ll.
R.iC:ENT "WlR.'E.t>~ .Stm.V&Y IN WH:ti:K RESPONOEln'S 'WER.! ASI'ZD
WHETHER THtY WOULD ?~OVIOE PERSQ~AL ~!A AS A P~!REQUISI~
~0
ACCESS A WE9SITE,
p:Rono:e:
IN?o~Uo~AUo!l.
~SPONDENTS.SAID
~4\
OF
~so
~SfQNCENT~
IN THIS
WOOLD OEcL!NS TO
swv!N, 40'
!!l SUCH CASES THEY
or
~0~ SINP~Y ~~~reATE
I~rO~TICN.· GIVEN TK!S AiPAk!NTLY WIDESPREAD LAC~ OV
CONSUMif\ TR.'OST Oil' WEB OPE.Rli.TION9·, CAVOlJ]{IhN SAID THE
WORLDWIDE WEJB COtlSO!tTIUM HAS 2E:.:t'l W01UC%NG ON. THE PU..T!!'ORM
tPJP) STANDARD TO ~y THESE
(NOTE• CAYOUKIAN STATED SHE-HAD BEEN ~ INVITED
EXPERT ON ON'i Ci" TJm P:lli' C:OIOIITTEES.) OLVOUICD.!I TH&N. QU01'EJ)
PROFESSOR ELI NQAH •. PDIFF~ ~~TX~ WtLL HAVE DlfPER%NT
PRIVA~~ P~r~~&NCES, OR 'I~O~TION PS&MEABI~ITIES'.~
FOA
P~VACY ~~~F~CES
CCNC2RNS
THZR.EFOllE, TO COU.Ii:CT THE DEP'ICIENCIES OF A RES11ll:c:Tr.'Z
STI'oT. RCU, li'::JP \'IOtlt.D Al.t.OIII lNTEAAc::TIVE HEGOTIA1'10N BETWEElof
A WEBSU'&: ;.NP 'CSEil. tN DE'IERMINim< li':lll.lw'.c't Ll:'VEL. c:AVOt1KIAN
~PBD THAT PlP INCLlJDES TKi OPTIOM Dr WHOLE OR PM'r!A!. ,
.....
SHE CO~CUIDED St70( INNOVATlVE SOLUTIONS WOULD B:&:
ICSY 'tO oYJSB.COKINa CONSUMER OIS'I'RUST 'WiUCH c:tllUtENTLY MAY
liNON"iMITY.
HAM!ii!:R. Ei• C:011MERCE DBYELOPI'IEllT. SO CCli'!MISSIOI'i REP BRqtKANN
REPLIED THAT tFFEcTIYE PAIVACY PROTECTION REQOIRiS MOR~ ~
ll. T£CXNICA%. PLATJ'ORM SUCK AS P3P ·-. ENFORC~LE lllJLES ARE
ALSO ~J:1]!;D~'O WOFI.t.DUIC'S. 'BRQEJQNN ~Ci:D THU.!: rt!MAINS mal
'WOR.K TO DO 9EFORE TRE P3P STANPAA:l WCUl.D
I'r l:S
~NOT
NS:CESSAAILY L.!I.C:I<ING
P~T~ORMS ~·
XN TKEIR
I~
'SE ACCEP'tABt.i:,'
THES!i: !mW
VIII.UE,
t~F~CY ~0 ~!ED
BUT
TO BE DEVELOPEC
i"URTlUliR.; THSY SiiQOl.D NOT B&: D:tSMUS!:D UIMC:DIATEL'i'. •
ll. NEl'KEIUANDS: CN T!U: MARGINS OP 'l'Hii: CO~FiUNCt, A. CTJTCH
CONSULTANT COM."'lnm'EC To A USG OFFICIAL THAT THl!l lt1 lliiU:C:TIVS
WAS AN UNOSU~LY iLUNT tNSTaUMENT.FOk SUCK A OELlCATE (YET
F~·Rili.CK~)
tSSO~
li.S
CONTrNTJED
XNT£~TIO~ PA~
rLOWS.
til~
THS POTINTIJ.l. i'RlC'E OF iTi.lCT 'DU'OllCEMDll' OF THt E:tJ
tliiUI':CT.IVEl • • OISlllJ'PTEO 'IllTElt.~TIONA!. DA.'r.A. FLO'oiS -- THS
CONS~TANt Dit.ImVSD'•t~OCRATS'
WoULD NAVE TO RESOLVE TO
WO~ MORA ~O~&:~Y ~:I:TK 'tHt U.S. ON THIS lSSU! ~ NoT
CONT~·WITH THR.tli.T:SN~I) R.'ET1ol.Ili.TION, 'IlU.T' IS; IF T~
DID
NOT W1tN'l' TO lliSK MAKING THB EO DIREC'l'IV!i: IMS:LtvWT (1 ••. ,
IG~Oa!O IN ~HE IN'l'KaESTS or CONTINUING INTERliATIONAL ~TA
TlW'fs Fli:V.S l .
24. !0 CO)lSUI.'l'MT UII:IENBER4, .10~L UitiENBSRG. FOIU>H»>
CNIVERSITY ~ P~FESSOR AND CONSOLt~~ ~0 THE !U
COMMISSION, QYf~~~ TRS fO~O~tNG C~S AS PAR~ OF HIS
PRESENTATION, WHICH CAN i t DOWNLOADED :FROM HIS WtiP~il J.T
KTTP://~~E.&~T~YNET.~OM/SPRYNEf/REICENB~
Al
etm::II\,1;, STAG& %N :tloi'TE!UolATIONJU. DA.TA.. '1':raNSF'tu .
-- lNTiRNA.TIO~ · D~T~ FLOWS ARE FORCING t:IIV~ENT t:IA'%'1'..
P~OT~CTION PoLICISS TO CONFRONt ~CH OTHER WitH ~ GREATER
UNC:LASSlFlttl.
'
CLINTON LIBRARY PHOTOCOPY
�09/28/98
15:21
~202 482 1865
0912M98 . FlU 12: OJ FAX
141009 -- -
NTIA/OIA
lg)UUO
FR~Q~c;"C;
-- Wl:'ril THE ROBUST GROWTH OF !HE INTiRNE:T IN THE lAST TWO
~. THIS :IS Pili: ~OST SIGNIFIC:r.ll't' ERA roR. INUPJ~ATIO~A.Lo.
FLOW$ OF ~ERSONAL I~FORMATIO~ St~C& TKE AC~T 0~ COXP~ERS
Ul THi. l,970S;
- • 'I'K£Ri: li.RE S IGNI rl c:..N'!T QUALITATIVE, AS Wi:t.t. Z..S
Qw.NTI'TATIVE, TQ.tNOS :m tm."l"A "l'~SP'ERS, !NC:LUDING:
CL!C:KSTREAK.tA!A {~O~J ROBUST T~ TYPICAL. ~SACTION DATA
~RIP.
06 OF 07
987,
F~O" ELECTRONIC ~~TIO~ OR PHONi ~I ; ~O~Tl~~IIONAL
SO~C~~G; D~T~ ~~~cUSINQ AND DATA CREE~ (GTO~E COSTS
DIMINISHING I~ LtP£ WtYX DECLININ~ COMPUTING COSTSlr
PR£SSWES FOR. SEC:Ol'mAA't trSE Ami PROJ'U:IlllC. R.Ell:IENEIERQ
cONC:t.lmE.C TtU:Sli: TRENDS WOULP '11:li:STA2II..IZC:• TXII: ·rAia. .
TPotll.'t'MZ:NT OF p£RSON.AL .It-IFORMATION.
-· Pmt~OR&, Kli: lilli:I.l~ .CONFL!.CT:IJIG SYSTEMS OF 'PATA
~ROTECTION POSED A CE~T~ ~RO'L~ FOR lNTZ~ATlONAL DATA
FLOWS. "I.F DAT1\ PI'LOT0C:UON IS 'tAY.EN SJ::RICO'S"-Y, THEN
SY~T£MIC LEG~ CONFLICTS SHOULD CAUSE D~SRUiTION .OF
INT~~A~O~~ DATA F~OWS.•
•• REGARDING THE UNITED ST~TES, "EUkOP! ~ ~STIFICATIO~ tO
~STRICT ~&OCESSING OF ?iR50NAL INFO~TtO~ ON !HS ~ASIS OF
TKE WIRliOW. StJT RARE AMEJlic:AN LEG.l'IL RIGHTS »lP :0. S. 1\l:tr%1\l>le!
. ~ S!i:t.F•REG"Ctoli."UON THAT HAS t!tOVEN I'tSZ.F IbiEFiiCTIVE- •
t;ros, THE c:tJAAE:NT INTERNAUO:l11L ENVI&Otn'U9~T SUGGESTS i\
CRUCIAL STAGE FOR PRI~CY r~TECTXQN ~ tNT~~~ION~ D~T~
FLOWS.
OECD .r.NO THE COWC!I, OF ROP.On ;.:RS J.i.RD.DY IliVOt.VU/
IN PltOI'IOTIN(; lNT~IUUI.'t!ONAt.. COOFIE:RATION 1'\ml C:ONSiNS:OS- N£W
iNTRANTS.TO tNT~TLONAL DATA PkOTE~TION POLICY tNCL~~ TH~
'W1'0 WIPO, AS \mt.t. .t.S Ng!J{E:ROiJi 'U~Ic:lU. STI'\NtlARJ)S tlOC:tlilS
1
l&.G •• WJC. INT'E:~ET SOCIETY, l~ll.; INTEANET ENGlt:l!:!tRlNIJ
I.
TASl< fORCE} •
:BI tliSTRU1'1ENTS FOR. INT:E::RNATtONAL CQOPl::P.A'l'IO:tl; REIJ;lc:NliliR~
PROPOS.C TH• FO~LOWING T~~EE !NSTR~~S AS POSSIBLE VENUE&
TO 'iNlWiC:i ;tNTERNATI:ON~ t;Q·EXtsTENC:.!I:, U' !lOT H1>RMONIZATIQN,
OP PATA PROTECTIO~ ST~~$• • OENERAL 1-.CJREBMEN"l' Oil lNFORMATIQl( PSI.IVA~Y: fU:li)EN5£RG
StJCGESTE:D·'fHI!I 1947 QATT AS A MO!)EL FOR E;FI?SCTIVE:
!~~TlON~ COOPERATION WHICH COUL~·FAC:lLlTATE co•
X~ISTS~CI 0¥ DIFFLRXN~ REGIMES ~)) PaOMOTE HARMONIZATION OF
9TANOAA!IS OVEa THE l.OI~GEF. TiRK •
.
• • TlilCHN1CAL CODBS OF coNDUCT (' PR.IVA'n: I~OSTRY
RElOENB£:KCi SAID STAND~S Dl!lCISI()ljiS ~
EFFi:c:TtVEl..t A MIX OF. 'i'ECH::lc:}>J. ISSOIS. AND· POLICY CHOICES :t.N1)
MUST TKER.li:FORE BE 'I'tU::.TI!:C t.I~ CODE3 Oi' CmltlUCT BY CATA
PROTECTIO~ AUTHORrri~S- REIDENALR~ FCRTKER StA!!O AaTICLS
SOLU1'10NS' ) ;
l~ OF THE i;U ClREC'l'IW INCLWEP i'RCCE.CtffiEli Feot TKE APP~oill\l.
o~
seCK coo&s oF
cr
coNti~cr.
·-. )II(ULTI•tNTP.J:ST PR!VAC:t SUMMITS:
GIVEN THE P.APil>
.
D~t.OPMID'"T
THE ON•t.lmi: ENVIJtONl'IIE!tr, R.Elt)l!:lUiER.C 2~I!NED
NATIONAL GOVi~S SBOULO MS5t ~~y WITH !NDOSTRY,
PRIVAC'l ADVOQa.TES AND :WDEPE~EN'i' EXPlm.TS , . HE C:J;Ti:CI THE
F!SRC~Y 1998 O!CD PRIVACY woRKSHOP AND JON! 19'8 WHITE
HQUSE PRIVACY CONFERENCE AS ~LES.
e)
~~
··'·
~P.AT&CiiE:S ~D PARTNERS POtt INTERNATicnQIJ. COOPERATION'
'T~ \.lAS: A N£.!1) tO Pt.!ll.SUlil ~OTH 'EMISSARY'
R.EIDE:tlSt.iRG sUD
1 ;.J)VOCAC'i' S'IF.AT!i:Gl&i 't'O SUCCESSYUt.t.\" DEVELOP ANC
C:OOF.DINA'l'Sl .INTEIWATIONAL PR-IW.CY S'l'PJroAPJ)S.
·- EMISSARY &OLE: S~E F1EL~ EXPERIENCE (LIKE THIS
MEET:tNGl l lN~~E PARTl.CtPATICN XN ~~t~~AttONAL
ANI)
ORGN<tU.TJ:ONS
•• ~VOCACY ROLE: I~OLViS TH~ ACTIVZ FRCMOTION OF SPI~IFIC
P~l.V~~ stANO~S: KORE CONFRONTATIONAL ROLi; REQU:tRES MORE
~~t;~RTED EFFORT. IN D!V!OING RxSPONSIBILIT~ES BECA~St ~0 ONE
UNCIASSIP'IED
"1
CLINTON LIBRARY PHOTOCOPY
�. 010
NTIA/OIA
09/28/98
15:21
~202 482 1865
091'25/98 FRI U: OJ FAX
~009
t.TNCLASSIFUtl
nP AGENCY
C~ FCCOS 0~ ALL OF THESE PRIORITI~S: NEED FOR
COLLECTIVE P~ESS R~EASES
25.
SWITZERLAND:
$W%SS OP ~I~CTCA J&AN vatLIPPB WkLT£k
SAID ~TJ:CLE H OF THZ !U I>IRECTIVE RiGm.JLTED n.ANSflORDER
OATA "fil].NSFER, li'RCi\XUTil;G 1'1' IF THERE WERE I'tlSt.tF'FXC:!ENT
P&OT:Ct%0N. HE ~OTED TWO EXCEFTI~S: UNP£R CER1AIN
CONPITIQl~S, OATA 1'i<J<NSFER. IS P&PJ'!XSSiiiLE IF NhTIONAL
LEGISLATION HAS ~P•Cirl~ COVERAGE FOR SPiCIFIC INFORMATION
12 .l) • ANti IF THZ c;cON'l'IC.'I MAS
· . (AR.1'.
DEMO~STAATttl IT
SYFFlCI~T P~%V~ PROTECTXO~ CONTROLS.
HAS
W~TER REC~tD
TRi FOLLOWING STEPS Sl!: !AKEN INTERRA'I"IONJU.:t.;r: TKE DIMCTIVEI
WORKING GROOPS S~OULD CO~TINU~ THiiR.2FFO~Ti TO RESOLV£
·.CIYFUING VIEWS; ~Got.~TION IN THE POLICE AND ME>DlC:Al.l
S~cTCRS NEED~ TO ~E ~I~FORCEgr ~ TM£ COUNCIL OF EUROPE
MADIUD
07 OF o7
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~.S
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DEViLOPING TIES wiTH !HIRD COaNTRIES·
2t;. - PORTUGAL;
JOl\.QUI.M c.E; SE~RA LOPE:! WAS l?l.&i\SED TO J!tAll.
THE USG WAS. WORKING WXTH THi iU ON DEVSLOPING SUFFICI~T
PR:I'ac::Y' PROtte!ION FOR· Ilil'ERN1\TIONAI. t)li.!A FUM5. HE Q'OO'UlO
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Wlii!Ul UUE, 'mEN IT ~$ A BIG STEP FORWARD.
2o7 •. TJJC.: THE UK DP l.'lePREISD'lTA-rivJ:: SAl:P ntlt U>EA OF Al:&
INTi:Rl!UI.TIONlU. ACJ.l!:!HtNT ON tNi'ORM'l'ION TAANSFERS HAD %12:81~
RAISED IN THE P~T AS A POSSl~L! AVE~ 0? PRCGR&5S. H£
ASXBO WHAT. WAS THE ~ROPER FO~Ulll 1\ND ·HOW CC'OLP U BE STllTED?
E~ CONSl!LTANT REIDEri<BSF.G :;;tlC;CZSTEtl 'rKE GATT ~ A MODEL, ....TQ
nm
CAUTlON THAT t7SINC3
nli GATT MODEL WClJl.tl
at 11 RIS~·
·~
SIFcrl
PORCM ~I. a.. C:OMI'IERCf:, r:or PUVAO:• Foc:osEOl , ...1f1
B'OT TRS W'TO :IUoS :Z:N~!UlGLY Bililll I-COKING AT ST;JIMlAU)!i APO "IX
OTHER ISSUf;S TW.T UFEC:T t~E. AloSO, CO'O'llTRY tl&U:GA'rtONS
t't' %5 A. TRAil!
ANO A i'Ni.MZWORK AAE 1oL~'I. IN PL.A.CE THERE, IIL.THOtiGK MEMBE:R.
COuNTRI2S' OP AOTHORITiiS ~ )lOT CUUENTLY REPRES5N'I'i:t). tJX
J:IP A.GLNCY HEAll ELIZABETH FRANCE S.ll.ID TK't U!C IS ALSO WMY
ES~t.ISlUNG OVE!U.i~ STUC'f JI.EQOlREMENTS, 'HE SAltl THS tJI(.
HAG ADOPTEP ~ l4'PRCA.c:H -rAAt MAY 5E A POSSUI:.ii .WlLY FORWARD.
St'ECIFICALLY, BRITISH Stl®'li.Rl) n/»i HAS BEER BSTI'.iX.UHl!:D 1\5
or
A C&R~tllCATION PROCESS, ~C~UDX~G ~KE CREATION QF A
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roUND TO BE BORDENSOME 5Y SMALL AND.M20IUM COMPAN1~.
~8.
SPAIN1 DiPUTY 0~ DIRECTOR MAR MARTl~~z SA!n THE REC::E~T
HAC:Ui lUU;A.IC•lN TO U.S. DOD COMPO'IE:R NiTWORI'S HAS AN
INDICATION Cf' .A GROW~G TREND ANn ~OERSCOR.El) THi 'lmG!lllT
NEED TO £STAB~ISH P~EQUATE CATR P~O~E~TION.
MARTIN~Z
REVIEWED SPAIN'S RELATIVELY PiTA.ILED APPLI~ LA~.
INCLtlDI!:G THl!: tlU'iERENT DATA PROTBlCTION REQt:JnEMENTS WHICH
. COMiSPOWi:l) TO VAR.'iitlG t.gWLS OF PRIVACY . PF.OTiCTION.
:Z~.
AL'THOUtiH CONFU.~NCE Pli&TtCtiANtS GENEAALLY A~~
CI~OCU!
SHOULD
CONTINOE.
MOS'I" RECOGNIZED TH£
~OSSIIILlTY
TK£R.E I'UI.¥ ·NOT B!: A !!.API!:) SOLUTION Wl'TH RESPEct '1'0 TME
-
DIVZJ!.GEN'I' TJ. S. lOOJ Etl POS:TIONS. Et1 ~PIUlSElNTIIo.TIV!S
AC~OWLEDGED THE ~OING HlGH-LEV&~ CONSOLtATIO~S BZTWEEN
~KINGTON ~0 ~RTJSSELS WOULD CONTINUE.WlTH THE OB3EeTIVE
. fii·· IUNG"I'ON'
REAt:HI~G
~o
30.
•.:
COI'II'ION GROUND. P.O~'r WO!.l!;p BE. Itln:RESTJ>?
S I?OSUlO!Q vu.r.:/lS '!HIS PROpOSl>.L 1"01\
AGRE!i:l"\E:t!"I' Otl INFORMATION PR.IVJ..eY,
THIS RfPOR!~~G
CA.BLE
11
HAS B££N CLEAP.EO BY TJ.S.
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.
t:n:CLASSIFIEP
6
CLINTON LIBRARY PHOTOCOPY
�09/28/98
!)9.1.25198
i~in~ed
15:22
'fi'202 482 1865
[4]ou.
NTIA/OIA
~010
FRI 12:04 FAX
By, Andrew 3. Wainachenk
DELEGATION.
UNCLASSlFJ:Dl
g
CLINTON LIBRARY PHOTOCOPY
�07/22/98
09:23
202 647 0158
EB/CIP
UNCLASSIFIED
Printed By: Jeffery E. Zinsmeister
ACTION CIP-00
AMAD-01 CIAE~OO INL-01
INLB-01 AID-00
OIG0-01 UTED-00 FB0·01
EUR-01
EB-00
NSAE-00
ADS-00
L-01
TEDE-00 INR-00
G-OO
USIE-00 ASDS-01 DSCC-00 DRL-04
/014W
..
---------------~--5558~7 171207Z /38
P 17120SZ. JUL 98
FM AMEMBASSY BONN
TO SECSTATE WASHDC PRIORITY 6511
INFO USOOC WASHDC PRIORITY
DOJ WASHDC
ALL EUROPEAN UNION POST COLLECTIVE
FRG COLLECTIVE
INFO
LOG-00
DS-00
IMMC-01
STR-00
SAS-00
SRPP-00
FCC-01
SS-00
NFAT-00
UNCLAS BONN 006916
.OSEU BRUSSELS FOR CHELMER.
FCC FOR INTERNATIONAL BUREAU (CORNELL/HAAN)
STATE PLEASE PASS!±o·usTR (CORBETT)
STATE EB/TPP/BTA)
(0' BRIEN)
STATE FOR EB/CIP,1~~INTON)
STATE FOR EUR/AGS::
OOJ COMPUTER CRIME!DIVISION FOR BSHAVE
USOOC FOR NTIA/SHA~
usboc 6320/TD/SE/OT/DENNY-BROWN
USDOC FOR 4212/MAC/GERMANY DESK
E.O. 12958: N/A
.
TAGS: ECPS, 'EINT, KCRM, KJUS, EUN, GM
SUBJECT: GERMAN WIRETAPPING PROPOSAL SHELVED
op
·REF: BONN 06494
------------------------------------------------------
WIRETAPPING PROPOSAL COLLAPSES uNDER INDUSTRY PRESSURE
-----~------------------------------------------------
1. -UNDER OVERWHELMING PRESSURE FROM INDUSTRY, THE
ECONOMICS MINISTRY• CANCELLED A HEARING PLANNED FOR MID
JULY ON THE PROPOSED WIRETAPPING ORDINANCE TO THE 1996
TELECOMS LAW (REFTEL) AND SHELVED THE ISSUE UNTIL AFTER
THE SEPTEMBER ELECTIONS. MINISTRY CONTACTS TOLD EMBOFFS
THERE WAS.NO LONGER NEED FOR A HEARING, AS INDUSTRY HAD
ALREADY VOCIFEROUSLY REGISTERED ITS OBJECTIONS. HORST
EHRENSPERGER, ASSI5._TANT SECRETARY FOR TELECOMMUNICATIONS
, . AND POST AT THE EC,ONOMICS MINISTRY, COMMENTED THAT THE
TELECOMMUNICATIONSACT OF 1996, WHICH OUTLINES REQUIRED
ORDINANCES, MIGHT'NEED TO BE AMENDED. INDUSTRY CONTACTS,
HOWEVER, ARE FE~fUL THAT OPENING DEBATEiON AMENDING THE
ACT MIGHT LEAD, UNDER A NEW GOVERNMENT, TO FURTHER
AMENDMENTS THAT c6oLb CRIPPLE A LAW WIDELY REGARDED AS
THE WORLD'S MOST~~~BERAL TELECOMMUNICATIONS ACT.
COMMENT
2. (SBU) EHRENSPERGER TOLD EMBOFFS THAT HE GOT A WICKED
TONGUE-LASHING FROM MINISTER REXRODT OVERTHE ORDINANCE
AND THE BAD PRESS IT GENERATED FOR THE MINISTRY. THIS
.DEBACLE MIGHT BE A LESSON TO THE MINISTRY'TO KEEP ITS EAR
CLOSER TO THE GROUND. END COMMENT.
KORNBLUM
UNCLASSIFIED
1
CLINTON UBRAP.Y PHOTOCOPY
�CIO/GII
rtlflLUtJtJ!'\
'Pi) 00\l/. Oil
UNCLASSIFIED
.·:"\·
Printed By: Jeffery E. Zinsmeister
AC'r;rON
INFO
EB~oo
LOG-00
FCC~01
ss-oo
CIAE-00
IMMC-01
STR-00
CIP-00
TEDE-00
USIE-00
SRPP-00
INR-00
SAS-00
EAP-01
EUR-01
ADS-00
NSAE-00
/004W
~-----------------SSCF74
l9l237Z /49
UTED-00
SS0-00
0 l:9l0l2Z JUL 98
FM USEU BRUSSELS
TO SECSTATE WASHDC IMMEDIATE
INFO USDOC WASHDC IMMEDIATE
wHITE. 'HOUSE WASHDC
ALL EUROPEAN UNION POST COLLECTIVE
AMEMBASSY TOKYO
UNCLAS SECTION Ol OF 02 BRUSSELS 004519
SENSITIVE
STATE
STATE
USDOC
USDOC
WHITE
PASS USTR FOR ABELSON
FOR EB/CIP, .EB/TPP/O'BRIEN AND EUR/ERA
FOR NTIA - BURR
FOR ITA - WELLBERY
HOUSE FOR MAGAZINER
.E.O. 12958: N/A
TAGS: EINT, ECPS, EUN .
SUBJECT: ELECTRONIC COMMERCE: EU COMMISSION FRUSTRATED
WITH US APPROACH TO THE GLOBAL BUSINESS DIALOGUE (GBD)
REF: BRUSSELS 4174
UNCLASSIFIED
BRUSSELS
01 OF 02
4519
·1.
(U) SENSITIVE BUT UNCLASSIFIED- PROTECT ACCORDINGLY.
PLEASE DO NOT DISTRIBUTE OVER THE INTERNET OR IN OTHER
PUBLIC CHANNELS.
2.
{SBUl
SUMMARY: ACCORDING TO A WELL-PLACED
COMMISSION OFFICIAL, THE COMMISSION.WILL NO·LONGER
ACTIVELY SEEK US SUPPORT FOR THE GLoBAL BUSINESS DIALOGUE
(FORMERLY THE INTERNATIONAL. CHARTER), BUT WILL LEAVE IT
UP TO THE PRIVATE!SECTOR TO CONVINCE THE USG TO SIGN ON.
THE COMMISSION APPLAUDS THE SUBSTANCE·OF THE NEW "USJAPAN BUSINESS CO**CIL" INITIATIVE ON E-COMMERCE, BUT IS
INCENSED THAT ITII?fD;NOT TAKE ACCOUNT OF THE GBD. THE .
COMMISSION RECOGNf~ES THAT IN ORDER FOR THE GBD TO BE A
SUCCESS, IT HAS T0jBE AN OPEN, DEMOCRATIC PROCESS. SOME
US FIRMS,. HOWEVER; 'CONTINUE TO COMPLAIN THAT MANAGEMENT
OF THE GBD IS A CLOSED SHOP. END SUMMARY.
3.
(SBU) ACCORDING TO DETLEF ECKERT, SENIOR ADVISER TO
THE DIRECTOR GENERAL OF COMMISSION DG XIII (TELECOMS &
INFO TECH), COMMISSIONER BANGEMANN AND OTHER SENIOR
COMMISSION OFFICIALS HAVE CONCLUDED THAT THERE IS NO USE
IN THEIR ACTIVELY SEEKING us GOVEIWMENT SUPPORT FOR THE
GLOBAL BUSINESS DIALOGUE (GBD) (FORMERLY THE INTERNATIONAL
COMMUNICATIONS. CHARTER).
ECKERT SAID THAT BANGEMANN IS
STILL FRUSTRATED ABOUT HIS JUNE 22 MEETING WITH US
.·COMMERCE SECRETARY DALEY, IN WHICH HE WAS UNABLE TO
CONVINCE THE SECRETARY OF THE VALUE'OF.THE CHARTER.
4;
(SBU) ECKERT SAID COMMISSION OFFICIALS HAVE CONCLUDED
THAT THERE ARE SUCH FUNDAMENTAL DIFFERENCES BETWEEN THE
EU AND THE US AP~ROACHES TO A GLOBAL STRATEGY FOR ECOMMERCE THAT COMMUNICATION BETWEEN THEM IS IMPOSSIBLE.
UNCLASSIFIED
1
CLINTON LIBRAEY PHOTOCOPY
�/
-··
07/22/98<
~UU4/Ull
09:24
UNCLASSIFIED
Printed By:
Jeffe~
E.
Zins~ister
CONSEQUENTLY, THE COMMISSION WILL HELP THE GBD TO MOVE
FORWARD AND WILL SEE WHAT HAPPENS. IF IT PROVES TO HAVE
VALUE, THEN INDUSTRY AND OTHER PARTIES WILL SIGN ON, AND
THE PRIVATE SECTOR WILL THEN CONVINCE THE USG TO JOIN UP.
HE SAID THE COMMISSION RECOGNIZES THAT THE US GOVERNMENT
WILL ONLY SUPPORT THE GBD IF US INDUSTRY REQUESTS USG
SUPPORT.
S .. (SBU) ECKERT REPORTED THAT COMMISSION OFFICIALS WERE
INCENSED BY A RECENT E-COMMERCE INITIATIVE BY THE "USJAPAN BUSINESS COUNCIL." HE SAID COMMISSION OFFICIALS
APPLAUDED THE SUBSTANCE OF THE INITIATIVE, AND THE WAY IT
WAS ORGANIZED, BUT WERE INDIGNANT THAT IT DID NOT ONCE·
MENTION THE GLOBAL BUSINESS DIALOGUE. ECKERT ASSERTED
THAT THE UScJAPANESE INITIATIVE WAS EXACTLY WHAT THE
COMMISSION AND EUROPEAN INDUSTRY HAD BEEN WORKING TO
DEVELOP, FIRST WITH THE CHARTER INITIATIVE, THEN WITH THE
GBD. COMMISSION OFFICIALS WONDER WHY THE EUROPEAN EFFORTS
COULD NOT HAVE RECEIVED SOME RECOGNITION. HE SAID THE
COMMISSION HAD COMPLAINED TO JAPAN ABOUT THIS, AND WILL
RAISE IT WITH US OFFICIALS AS WELL.
6.
(SBU) ECKERT ACKNOWLEDGED THAT THE STEERING COMMITTEE
AND OTHER MANAGEMENT MECHANISMS FOR' THE GBD NEED TO BE
MORE DEMOCRATIC, .9~EN AND TRANSPARENT. H~ SPECULATED
T~T IT MIGHT ~~~S~NSE TO HAVE THE INITIAL STEERING
COMMITTEE BE AN·INTERIM BODY, WITH A BINDING AGREEMENT
THAT ITS MEMBERS!f?uLD STEP DOWN AFTER.THE GBD MEETING
THAT WILL BE ~ELD;fN .THE FIRST HALF OF ~999. HE QUICKLY
ADDED, HOWEVER, THAT THIS WAS A MATTER FOR THE FIRMS
INVOLVED IN SETTING UP THE STEERING COMMITTEE. HE
INDICATED THAT THE.FIRST FORMAL MEETING OF THE STEERING
COMMITTEE, AT WHICH IT WILL ANNOUNCE ITS PLANS FOR THE
1999 GBD MEETING, WILL BE HELD IN NEW YORK IN SEPTEMBER.
7.
(SBU) COMMENT: ECKERT'S REMARKS PROBABLY REFLECT A
GOOD DEAL OF PERSONAL FRUSTRATION, GIVEN HIS .CLOSE
INVOLVEMENT WITH THE CHARTER AND THE GBD. NEVERTHELESS,
SIMILAR POINTS MAY.BE RAISED BY COMMISSION OFFICIALS
DURING NEXT WEEK'S INFORMATION SOCIETY DIALOGUE. POST
CONTINUES TO HEAR COMPLAINTS FROM SOME US FIRMS -.INCLUDING SOME WHICH PARTICIPATED IN. THE JUNE 29 LAUNCH
OF THE GBD -- ABOUT THE LACK ·OF TRANSPARENCY AND OPENNESS
IN THE GBD AND ITS STEERING COMMITTEE. US FIRMS ARE
MAKING THEIR VIEWS KNOWN TO THE COMMISSION AND, WE'
UNDERSTAND, TO THE.GERMAN FIRM BERTELSMANN, WHICH IS
RUNNING THE STEERING COMMITTEE, BUT SO FAR THERE ARE NO
INDICATIONS THAT THEIR COMPLAINTS ARE HAVING ANY EFFECT.
(DRAFTED:ECON:CHELMER)
BRUSSELS
02 OF
oi
4519
KURSCH
UNCLASSIFIED
2
CLINTONUBRAP.Y PHOTOCOPY
�Withdrawal/Redaction Sheet
Clinton Library
DOCUMENT NO.
AND TYPE
DATE
SUBJECTffiTLE
001. fax
To Ira Magaziner from Richard Mills re: U.S. -Irish Communique (2
·
pages)
002. fax
To Ira Magaziner from Richard Mills re:
page)
U.S.~- Irish
Communique (1
RESTRICTION
07/31/98
P5
07/22/98
P5
COLLECTION:
Clinton Presidential Records
Domestic Policy Council
Ira Magaziner (Electronic Commerce)
OA/B6x Number:
13122
FOLDER TITLE: ·
U,S. - Ireland E-Commerce Agreement
Rhonda Wilson
rwl27
RESTRICTION CODES
Presidential Records Act- [44 U.S.C. 2204(a)]
Pl National Security Classified Information [(a)(l) of the PRA]
P2 Relating to the appointment to Federal office [(a)(2) of the PRA]
P3·Release would violate a Federal statute [(a)(3) of the PRA]
P4 Release would disclose trade secrets or confidential commercial or
financial information [(a)(4) of the PRA]
. PS Release would disclose confidential advise between tbe President
· and his advisors, or between such. advisors [a)(S) of tbe PRA]
P6 Release would constitute a clearly unwarranted invasion of
personal privacy [(a)(6) of the PRA]
C. Closed in accordance witb restrictions contained in donor's deed
of gift.
PRM. Personal record misfile defined in accordance with 44 U.S.C.
2201(3).
RR. Document will be reviewed upon request.
Freedom of Information Act- [5 U.S. C. 552(b)]
b(l) National security classified informatimi [(b)(l) ofthe FOlA]
b(2) Release would disclose internal personnel rules and practices of
an agency [(b)(2) of tbe FOlA]
b(3) Release would violate a Federal statute [(b)(3) of the FOIA]
b(4) Release would disclose trade secrets or confidential or financial
information [(b)(4) of the FOIA]
b(6) Release would constitute a clearly unwarranted invasion of
personal privacy [(b)(6) of the FOIA]
b(7) Release would disclose information compiled for hiw enforcement
purposes [(b)(7) of the FOlA]
b(S) Release would disclose information concerning tbe regulation of
financial institutions [(b)(S) of the FOlA]
b(9) Release would disclose geological or geophysical information
concerning wells [(b)(9) of the FOIA]
·
CLINTON UBRAP.Y PHOTOCOPY
�.·,
~
........ - ..
··
... ~-·.·..... ,. ,....... ,... ·.·-·····.··... .-······-··········- --- .... ~.- -- ~ .. :~-
. .
POLITICAL ECONOMIC OFFICE
EMBASSY OF THE UNITED STATES OF AMERICA
42 ELGIN ROAD
BALLS BRIDGE
: DUBLIN4
IRELAND
Telephone Number: 35,3:-1-668-8054
. FAX COVER SHEET
TO:
Ira Magaziner
I:
FROM:
Richard M. Mills
The White House
. '
Pol/Econ Officer
total.pgs: 2
Fax: 353-1-667-0056
Fax: 202-456-5581
Date: July 31, 1998
Ira: La~est on U.S.~Irislt Communique.
· We still have two outstanding issues with tfte Irish:
I. On the "custom.tt duties moratorium" language, .AISBrentfan
Toufty lttet witlt Minister of Finance today io try and get Fi!tance to
accept our language on the moratorium. No result was reaehed;·the
.. Finance Minister promised to get back to Tou!Jy by Tuesday.
_...
1nornilzg (Monday i~· an Irish holiday). Touhy's readout is that
Finance is stiil ·opposed; Touhy i.~ willing to take the issue higher
level (the PM); I told lzim that was an Irish call but tltat wei needed a
.
' . . .understands that tit: is is a crucial c(fmponent
to
...... ,..
-·.
--· ...
�-~-
... :-· ;7
!' -
us. The new language~· «Jmfustry, through self-regulatidll, should
e.'itahlish effective measures to counter the proliferC~tiun of illegal
content m1 tltc Internet''
Does this lan~uage meet your concerns? Let me know.
•. l will call )'1)11 1ilesday afternoon on the moratorium
•'
I
Rick Mills
''
'.
'.
!
;
Number t?f Pages Including this Cover Sheet:~ ; ·
: . . .·.·.
....
. COPY
.cUNIC!t~ UBAAP.Y PHOT~ ::-
�l! •. ''"~
....
. . .!
.
.
·:
J.~
\.·
.
.
.{.
'
;
; I
~,. .
:~
...
t
·:·~
i
. I
l
POLITICAL ECONOMIC
OFFIC~
EMBASSY OF THE UNITED STATES Of'. £-1MERICA
42 BLGIN ROAD
DALLSDRIDGE
- 1DUJ1LlN 4
. IREL1ND
Telephone Number: JS,J-1-668-805.{
FAX .COVER SHEET
..
TO:
Mr. Ira Magaziner
Richard M. Mills
.Kconomic Officer
>a.
0
Fax: 4
Date: July.22. 1998
0
0
53-1-667-0056
b
;
~
Ira:
I spoke with AIS Brenda11 Toulty late today about tlie-cs1iztus ~fthe
Irb;h review of our late.~t versioiJ of draft conununique. lrisll'ttade
1
ministry lawyer.fit are balking at tile WtJrd "will"'' in the phra$J 'fi/te
current practice·ilj-Jwt imposing customs duties.... will continue." .
Lawyer.5 here interpret will to mean 11shall" and (illogicall}~ fear
Ireland will 11Violate" the communique iftlte WTO decides 11ot :tof
continue the morc1torium. Went hack and forth. Can we live ~ttlt
~-ubstitutittg u•.,hall'~''l.:•ill" in this sentence, which seems tojciiim th.e
lawyers' feurs? .'\,':~~·.~~~r:~ri'n;i::8Y.~W:~;::i;';!~t::~;:;s;
. !
a.
:c
co
_::i
z
o·
.-
~
::i
.· (.)
�Withdrawal/Redaction Sheet
Clinton Library·
DOCUMENT NO.
AND TYPE
DATE
SUBJECT/TITLE
RESTRICTION
001. cable
From USEU Brussels, re: U.S. - EU Agenda- C (2 pages)
11106/97
Pllb(1)
002. cable
From FBIS re: Economy Minister Opposes US Regulations on
Electronic Trade (2 pages)
11111/97
Pl/b(1)
003. cable
From AIT Taipei re: Taiwan and Sectoral Liberalization (2 pages)
11/11/97
P5
004. cable
FromFBIS re: Internet Rules Must Suit Social Background (2 pages)
11/04/97
P1/b(1)
COLLECTION:
Clinton Presidential Records
Domestic Policy Council
Ira Magaziner (Electronic Commerce)
.OA/Box Number:
13123
FOLDER TITLE:
.. Australia [1]
Rhonda Wilson
rw48
RESTRICTION CODES
Presidential Records Act- [44 U.S.C. 2204(a)]
PI National Security Classified Information [(a)(l) of the PRA]
P2 Relating to the appointment to Federal office [(a)(2) of the PRA]
P3 Release would violate a Federal statute [(a)(3) of the PRA]
· P4 Release would disclose trade secrets or confidential commercial or
financial information [(a)(4) of the PRA]
PS Release would disclose confidential advise between the President
and his advisors, or between such advisors [a)(S) of the PRA]
P6 Release would constitute a clearly unwarranted invasion of
personal privacy [(a)(6) of the PRA]
C. Closed in accordance with restrictions contained in donor's deed
of gift.
. PRM. Personal record misfile defined in accordance with 44 U.S.C.
2201(3).
RR. Document will be reviewed upon request.
Freedom of Information Act- [5 U.S.C. 552(b)]
b(l) National security classified information [(b)(l) of the FOIA]
b(2) Release would disclose iliternal personnel rules and practices of
an agency [(b)(2) of the FOIA]
b(3) Release would violate a Federal statute [(b)(3) of the FOIA]
b(4) Release would disclose trade secrets or confidential or financial
information [(b)(4) of the FOIA]
b(6) Release would constitute a clearly unwarranted invasion of·
personal privacy [(b)(6) of the FOIA]
b(7) Release would disclose information compiled for law enforcement
purposes [(b)(7) of the FOIA]
b(S) Release would disclose information concerning the regulation of
financiai institutions [(b)(8) of the FOIA]
b(9) Release would disclose geological or geophysical information
concerning wells [(b)(9) of the FOIA]
CLINTON LIBRARY PHOTOCOPY
�<' .
.
·.
r
/tAN: 11/11/979:07 PM
TAIWAN AND SECTORAL LIBERALIZATION
440'-.
.
•'
I
.
.
.
'
. · . IN flRINCIPI E THE u,:S ..ffiOPOS,!U.S ON.ELECTRONIC. ·
. ·.
,....COMMERCE
.
. . ·· . .
.
·.
--.-ANI'Jst<JTECR. BUT WANTS TIME TO STUDY !:lOW THESE NEW
··· iNDUSTRIES SHOULD,BE HANDLED. TAIWAN'S MINISTER OF
.ECONOMIC :AFFAIRS REQUESTS A BilATERAl MEETING WITH
..
._
. _.
. ..
. _
:
,USTR
_ , ,
AMBASSADOR BARSHEFSKY IN VANCOUVER TO DISCUSS
APEC
.
.
.
.
ISSUES. END SUMMARY.
RES~ONSE
3:
(U) IN
TO REF A, ECON CHIEF AND ECON .
...
OFFICER .
.
. ·· .
.
METON NOVEMBER 10 WITH STEVE CHEN, DIRECTOR .
.: .
·. '
,·
GENERAL OF
TAIWAN'S BOARD OF FOREIGN TRADE (BOFl), AND SOFT
STAFFTO ·.
. ...
UNCLASSIFIED .
·UNCLASSIFIED
'
PAGE~1
ACTION
.
AITTA 05282 OOOF02 111115Z.
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.
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INFO. tbC3:Co ACDA-08 .ticr::iE-eo ~An)"oo AIT"03 AMAD"OY
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INFO ASiAN PACIFICECONOMIC COOPERATION
DEPT OF AGRICULTURE WASHDC
.· USDOCWASHDC >
'USMISSION!GENEVA
PA(;E03
AITTA 05282 OO_OF02 111115Z
-. . .
DISCUSS TAIWAN'S POSITION-ON THE VARIOUS SECTORS
· · · ..
•.
.. ·
:.
PROPOSED
.
. !..
FOR EAR~Y VOLUNTARY SECTORAL LIBERAUZATION. (EVSL): A
. .
.
RUNDOWN FOLLOWS BELOWINPARA5.
_
. UNClASTAIPEI 005282
··:.
__:, __::_
______
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DEPT F()R ·EAP/RSP/TC AND
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4. (SBU) IN ADINNE~ ~EETIN(;vv:ITH·LocAL·REPS FROM APEC
MEMBER ECONOMIES ON'NOVEMBER S, CHEN PROVIDED A
THUMBNAiL· .
.· .. ·.·-_·._
. . . ·.... .
·.•.·
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USTRFOR AUSTR PHILLIPS
. GENEVA
~OR USTR
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SKETCH OF TAIWAN'S CURRENT-POSITION ON VARIOUS
eA~LY " .
'
.. · ··. . . :.
. -_-_.
..
SECTORALVOLUNTARY,LIBERAUZATION PROPOSALS. 'AT·
·... -::
.
~~A{H~ ~E;TERAT~ci}~~~~~ R~;~IN:
THAT TAIWAN'S .
-·ABILITY To PuR'sue i:vsi:: IN AF>i:c ~HANblcAPPED" Bv.T,riE'· .
. ,_ FA(:;TT8AT:!T'is STILLNE~9_fiATIN(3.TO_ACCEiDE T(f>THE ..
1s
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:, _.:-·· ·~. .
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.• . IT WA~ ASSURED OF ENJRY INTO THE vy1p. HE SAID THAT .
BECAUSE OF THIS, TAIWAf':lWAS NOT-SATISFIED WITH ITS.
tJNC'LA~SIFIED
AIT ·'TA 05282 OOOF. 02 .111115Z..
.
. ··.
,,
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~~7TioN.ON ..EVSL._·.LCX)KING AROUND THE•TABLE, HE SAID
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..
,· .·.'
THAT-,.
TAIWAN'S OFFER WAS
. USDA FOR FASIITP/SHEIKH/CUR-TIS ..
c6MPA~EP_: ·.
.
NONET~ELESS "AMONG THE BEST"
,I•,
. .... // ·.
TO OTHER AP~C MEMBERS~ .
' SENSITIVE
',
TAIWAN'S EVSl'SCORECARD ..
·
.......
·REF:A STATE ·.211787, B. si"ATE 197941,
··''·"
.
•. .
= ..•
•
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6, TAIPE14747 .
·.
1. (U).SENSITIVE BUT'u~ClASSiFIED:. PLEASE HAJ,H)LE
·ACCORDINGLY. · . •. '
.
.. ; ,- · . .
· .. : . . •
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·.
2.
(SBU) suMMARY: OF THE oozeN sEcToRs IDEr:mi=IED. REF
.A, •., ·,. ·;
. . . ·_
....••....._·.-:· :: c .
. .
. TAIWAN UNCONDITIONALLY SUPPORTS TWO
(EN,\II~QNMENT.~.L
.
,
. .
.-' .
. .
. .
EQUIPMENT/SERVICES AND GEMS/JEWELRY}; SUPPORTS ONE
IN...
.·
. . . . . :... ,.·· .···
.
.
_
PRINCIPLE (TELECOMMS MRA); PARTIALLY.OR CONDITIONALLY
SUPPORTS FIVE (ENERGY; CHEMICALS, FOREST PRODUCTS •..
OILSEEOS, AND TOYS), AND DOES NOT SUP"~_,...,..,.,......_
(MEDIC:Ai:: ._ , _ _. .
· .. . . .._ ·.
·_ .
.. .
EQUIPMENT, AUTOS;FOODiFISH): TAJW N STRONGLY
SUPPORTS
.
'
.
.
·'
.._.,_
5. (SBU)AQUICKRUNDOWN OFTHETAiWAN POSITION ON·.
THE' ' . ': ·'· ·· :. _ :. ·:,": ·••·• ': ..
.· . . . .
12 SECTORS DISCUSSED REF-A FOLLOWS BELOW:
. •;::·,; .... · . . . .···
.
.
·
'\
.· . ·-.,_ ENYI~ONMENTAL Gooos p.~D 'sERVIC!=S: UNQUALIFIED
·suPPORT;
· -·:·. ·' • · .
..
···.'.
UNClAS~IhE:o/p:ti·:_,i:),::;;.;·'.; ..
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UNCLASSIFIED.·
. . .... ...
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·.
~~OF 02 1~1115Z ·
PAGE 04
. AIT TA 05282
TAii,yAN IS A CO-SPONSOR
.
.
:,
,r
,·
•
. CLINTON LIBRARY PHOTOCOPY .
�•-'
~LSOSAID
~R[NCIPLE
7, (SBU)CHEN
TAIWAN IN
SUPPORTED
.
THE U.S. APPROACH ON BIOTECHNOLOGY, SAYING·
.. ·
·
· PROMOTION OF
.
· . ·
THIS SECTOR WAS VITAL TO FUTURE FOOD SECURITY. HE
. CAVEATED THIS SUPPORT: HOWEVER, BY SAYING TAIWAN'S
CO.UNCIL OF AGRICULTURE BELIEVED IT MIGHT BE
. NECESSARY TO
·.
HAVE LABELING REQUIREMENTS FOR FOODS CONTAINING
.·
. .
.·' .
.
BIOTECH
.
-MEDICAL EQL.JIPMENT: DOES NOT SUPPORT.
.·. .i MRA of\! TELECOMMUNICATIONS: SUPPORTS IN PRINCIPLE.
-ENERGY: CONDITIONAUPARTIAL SUPPORT. IN PRfMARY
ENERGY; TAIWAN SUPPORTS EARLY LIBERALIZATION OF
. .
,
COAL;
.
. URANIUM, PROPANE, BUTANES, AND ETHYLENE. IT DOES NOT
. SUPPORT LIBERALIZATIONOF ENERGY EQUIPMENT:
UNCLASSIFIED
... --CHEMICALS: CONDITIONAUPARTIAL SUPPORT. EXCEPT FOR .
. pHOS.PHORIC ACID AND POLYPHO$PHORIC ACID, TAIWAN
. ·
SUPPORTS
·· .
.
.. ·
·
·
·
GRADUAL TARIFF REDUCTIONS OVER SIX YEARS BEGINNING
ON' . . . ... .
. .
.
.
.
,'''
JAN,UARX'1, 1.999.
~-.
Uf'!CLASSIFIED
. -AUTOS: DOES NOT SUPPORT.
I
PAGE.06
'.·
NEW·.,
INDUSTRY AND THEREFORE REQUIRED FURTHER STUDY.
-'-FaREs+ PRQ[iuers: coNDITioNA:uPARTIAt: suPPORT.
. TAIWAN .
.· ,
.. ··.·. .
· .
.·
· •.
.
SUPPORTS LIBERALIZATION OF HS CHAPTER 44,WITH THE .
EXCEPTION.OF PLYWOOD, WITH TARIFFS TO .BE ELIMINATED.
·.BY , . .
.
. . .
.
,.
~
.
.
. AITTA 05282 oooFo2 1in1.sz
CHEN REITERATED THAT BIOTECH WAS ALSO A
.
.
. .
. ..
.
. • 1 PRODUCTS.
-FISH: DOES NOT S,UPPORT:
I•
'
. _______.;.__.;._______ ..:------~~--------~----:.REQUEST FOR BIL,A,TERAl WITH AMBASSADOR BARSH,EFSKY
'JANUARY 1' 2004. IT DOES NOT SUPPORT LIBERALIZATION QF
8. (SBUfOURING THE MEETING, CHEN REITERATED
REQUEST .,,
.
.
. .
.
• HS;CHAPTERS 4S-49 OR
-~
.
94~
.
MADE IN EARLY. OCTOBER BY MiNISTER OF ECONOMIC
.. . . . .
AFFAIRS · .
. . .. . . . .
.
. WA(\(GCHIH-KANG DURING THE.VISIT OF AUSTR DON PHILLIPS
(REF C) TO MEET BILATERALLY 1/VITI;i US.TR AME!A.SSADOR
BARSHEFSKY DURING. THE UPCOMING LEADERS MEETINGJN
VANCOUVER.· MINISTER' WANG IS SEPA,RATELY SEEKING A
MEETING
.· ...•. ·. •
. . . .. .
. . . . . ·. . •... ·.·
.
CONDiTIONA~PARTIAL
OILSEEDS:
SUPPORT. TAIWAN ...
SUPPORTS
·· .
· . ··
.
EVSL ·, .
. . . FOR OILSEEDS ·BUT NOT FOR'OILSEEDPRODUCTS.
. ,
.
.
.. \
A
!
.. j
UNCLASSIFIED
.._;_.'
. :·.w~~H~~;~~~o~:t3~~~~i~ue:sR~YE~~~c~~~~-~N.
. . . '/ . ... .. .'..· :.'.
.
/ .""
'M.~~~,~~...~~
,~-'VANC()L)IJER, CHE.f'.! SAID, WOULD BE LIMITED, TO APEC
MATIERS.
.·
..
.
·.
·
MORIARTY
! ••.
. _: . ;'
·· . ·, ..
.
:'··.:··. ': ;';. ··<·
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'
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· ·.PA~E_ds . AITTA os:2~i()oof'o2 11111sz
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.
·' ·.
- FOOD: DOES NOT .SUPPORT BEYOND OILSEEDS.ABOVE.
.
. ..
. ,.·.,
·.''.".·;
.;.;·revs: caNDirioNAUPARTIAL suPPoRT. tAJWAN·suF>PoRTs · ·
.
.
LIBERALIZArtoN BY 2005 .. ' .. .
.. .
.
·.
..
·.-r.:
.
;
~
...
·...:'.·
'·
::
I
•'
··, .··
. . ··
-~ GEMS/~EWELRY: UNCONDITIONAL SU~PORT.TAIWAN IS.A •
.. ,_._,..
..
SPONSOR;_.···
··'
.co~,.
-iE-CO~E~9E AND BIOTECH ..·
. UNCLASSIFIED
.
. :I
'
. 6 .. (seu) WHENASKED ABOUT THE u.s. PROPOSAL oN' E- ·.· .. .
·.·. COMMERCE, STEVE CHEN REiTERATED TAtvvAN'S STANCE AS.
. .cqf-i'@'~b . ........ - . s( . .. TAiPEI BY AUSTR D{?N .· . ..
PHIC(IPS . ·· ..
·"'(REF Cj: iN ESSENCE,. TAIWAN IS STRONGLY. SUPPORTIVE IN .
l~ :~~~:fJ~~~f'f THE U.S: e.~COMM~RC7 PRQ,PO~AL, BUT.
· ....
.
. ·.·..
.Copyright.(c) 1997
· Received by ·
·,
·...
. . 'IS A·~~WSUBJECT", TAIWAN "NEEDSTIMETO'REflECT"ANI?
·.IS- .... ,·
.
· . · , . ·.
.
• ·, .. ·
.:
·
. THEREFORE SUPPORTIVE OF THE AUSTRALIAN PROPOSAL TO
~~l~~ ~~RCE TO STUDY THE IMPLICATIONS,0 F THE U.S. •:;•, .'
··>
,~
PrAN..
CHENSAIDTHEONLYREALCONCERNSTAIWANHADWAS ;,
~~~~OF~~ECTRONIC.TRANSACTIO~ANDINTt:iiS
LIGI'H•
· ·.
'X> ' • · : ...
·i
<:~',>:
. .·
·
1
· ·
.
~f~~~-S. EXPORT
. •: BE A PROBLEM.
,
'
...
. ,
;'
..
.
··. · ' ·
.··
CONTROLS ON ENCRYPTION TECHNOLOGY, · ·
.
J·
.
.. ·,·,
·'
�------
--------------------.
Withdrawal/Redaction Sheet
Clinton Library ·
. DATE
SUBJECTtriTLE
DOCUMENT NO.
AND TYPE
. RESTRICTION
09/30/97
P3/b(3)
Froin SecState to USEU Brussels re: Country Clearance Request (1
page)
09/10/97.'
P1/b(l)
003. cable
From SecState to USEU Brussels re: Country Clearance Request (1
page)
09/10/97
P1/b(1)
004. cable
From AmEmbassy Brussels re: Electronic Commerce: Building
Support in Belgium (paitial) (1 page)
03/06/98
P5
005. cable
From AmEmbassy Brussels re: Electronic Commerce: Belgian
Questions (partial) ( 1 page)
03/06/98
P5
006. cable
From AmEmbassy Brussels re: Belgium and Electronic Commerce (3
pages)
02/13/98
P5
001. cover sheet
002. cable
. Re: meeting (partial) (1 page)
..
COLLECTION:
Clinton Presidential Records
-Domestic Policy Council
Ira Magaziner (EiectronicCo~erce)
OA/Box Number: 13123
FOLDER TITLE:
Belgium
Rhonda Wilsori
rw49
RESTRICTION CODES
Presidential Records Act- [44 U.S.C. 2204(a)]
Freedom of Information Act- [5 U.S.C. 552(b)]
Pl National Security Classified Information [(a}(l) of the PRA]
P2 Relating to the appointment to Federal office [(a)(2) of the- PRA]
P3 Release would violate a Federal statute [(a)(3) of the PRAl
P4 Release would disclose trade secrets or confidentiai commercial or
financial information [(a)(4) of the PRA]
PS Release would disclose confidential advise between the President
and his advisors, or between such advisors [a)(S) of the PRA]
P6 Release would constitute a clearly unwarranted invasion of
personal privacy [(a)(6) of the PRA]
b(l) National security classified information [(b)(l) of the FOIA]
b(2) Release would disclose internal personnel rules and practices of
an agency [(b)(2) of the FOIA]
b(3) Release would violate a Federal statute [(b)(3) of the FOIA]
b(4) Release would disclose trade secrets or confidential or financial
information [(b}(4) of the FOIA]
b(6) Release would constitute a clearly unwarranted invasion of
personal privacy [(b)(6) of the FOIA]
b(7) Release would disclose information compiled for law enforcement
purposes [(b)(7) of the FOIA]
b(S) Release would disclose information concerning the regulation of
financial institutions [(b)(8) of the FOIA]
b(9) Release would disclose geological or geophysical information
concerning wells [(b )(9) of the FOIA]
C. Closed in accordance with restrictions contained in donor's deed
of gift
PRM. Personal record misfile def'med in accordance with 44 U.S.C.
2201(3).
RR. Document will be reviewed upon request.·
CLINTON LIBRARY PHOTOCOPY
�- 03/09/98
11:31
"B'202 64i 0158
EB/CIP RM2533A
·UNCLJlSSlFIED
Print.ed By: Andrew J .· Weinschenk
·PRIVATE SECTOR/PRESS
7.
(SBU) .GIVEN THE BELGIAN GOVERNMENT'S GENERAL TENDENCY
TO CONTROL AND REGULATE.AND T~E SKEPTICISM AND EVEN SUSPICION
ABOOT USG POSITIONS ON ECOMMERCE WHICH EXISTS (IN PART AS A
RESULT, WE ARE TOLD, OF HOW THE COMMISSION MANAGED THE
NEGOTIATION OF THE DECEMBER 1997 US-EU STATEMENT OF
PRINCIPLES ON ECOMMERCE) , TO DEvELOP SUPPORT FOR THE USG
APPROACH WE NEED TO BUILD A STRONG CONSTITUENCY IN THE
BELGIAN BUSINESS SECTOR AND ENCOURAGE ITS ACTIVE ENGAGEMENT
WITH THE GOVERNMENT. WE. ALSO NEED TO EDUCATE THE PRESS, SO
THAT IT MORE ACCURATEI..Y REFLECTS US IDEAS. WHILE WE WILL
CONTINUE OUR BILATERAL APPROACHES TO TAKE THE MESSAGE TO THE
GOVERNMENT, OUR PRIVATE SECTOR CONTACTS HERE TELL US THAT THE
GOVERNMENT WILL 2E MORE OPEN TO THE MESSAGE IF IT IS
REINFORCED BY BELGIAN SOURCES.
·· .....:
8.
!Ul. TO MAKE THE MOST OF MR. MAGAZINER'S.PRESENCE HERE
. FOR TMAB, THE EMBASSY PROPOSES THE FOLLOWING POSSIBLE
ADDITIO~AL
ACTIVITIES:
0
SYMPOSIUM WITH EU OFFICIALS/BUSINESS REI?S: TMAS ·AN!> 'l'HE
RELATED INTERNET AFFLICATIONS FAIR WILL ATT~CT 20,000
VISITORS, AND THE OPENING CEREMONY WILL BE ATTENDED BY SENIOR
BELGIAN AND EU POLICYMAKERS (INCLUDING THE BELGIAN PRIME
MINISTER, WHO GAVE THE KEY NOTE ADDRESS LAsT YEAR, AND SENIOR
COMMISSION. OFFICIALS). TO TAKE. ADVANTAGE OF THE PRESENCE OF
MR. MAGAZINER AND SENIOR·Eu OFFICIALS AND EU ~D US BUSINESS
. REPS .FOR TMAB, FAll IT ~SO HAS OFJ;>ER.ED TO ARRANGE A SYMPOSIUM
ON MAY.2e. AN EXCHANGE OF VIEWS WITH SENIOR EU OFFICIALS AND.
BUSINESS REPS WOULD OFFER THE OpPORTUNITY TO RESPOND TO THE
EU CHART~R PROPOSAL (ON WHICH WE HAVE FOUND VIEWS HERE TO BE
IJ.L • FORMED AS YET l .
.
0 LUNCHEON AND OR/ROUNDTABLE DISCUSSION WIT~ REPRESENT~TrvES
OF I<EY INDUSTRY GROUPS WHICH REPRESENT THE: BROAD RANGE OF IT
INDUSTRIES IN BELGIUM.
lTHESE INCLUDE BEtTUG, THE
.
ORGANIZATION OF BELGIAN TELECOM USERS AND A STAUCH DEFENDER
OF. FREE MARKETS AND-COMPETITION: ICT, BESIG AND INSEA,
REPRESENTING SMALL ANtl MEDIUM IT ri:LECOMS AND SOF:I'WAJUl
M.ANUFACTO'F.Ii:RS . l THE Ii'URPOSE WOUL'D BE TO 'UNDERSCORE THE
BENEFITS OF THE USG APPR~CH TO BUSINESS AND ENCOURAGE THE
BUSINESS SECTOR TO TAKE lTS VIEWS TO GOVERNMENT.
0 niE EMBASSY 1-.'0ULD ARRANGS AN. EXCLUSIVi:, IN-DEPTH INTERVIEW
WITH THE LE11DING BEI.GIAN BUSINESS PRESS AND/OR MAJOR
WEEK~IES, WHICH WOULD ALLOW US AN OI?PO~TUNITY TO UNDERSCORE
THE BENiFITS OF THE USG APPROACH TO THE PUBLIC JVST AS THE
GOVERNMENT IS LAUNC~ING ITS SERIES OF NATIONWIDE CO~LOQUIA ON
THJ;; IN FORMAT I 0~1· SOCIETY.
GIVEN BRUSSELS' STATUS AS A CENTER FOR BUSINESS
0
OPERATIONS IN EUROPE, .AMCHAM. INCLUDES BR011D iUROi?EAN
REPRESENTATION. THE MESSAGE DELIVERED IN AN ADDRESS OR
SRUSSELS
EUROPEAN
03 OF 03
1379
COMMISSION/~ELGIAN
GOVERNMENT CONTACTS
.
-···------------··----------··----------··----'
9 . . (SBU)
OSiO PROPOSES THAT WHILB IN BRUSSELS, MR.
MAGAZINER COULD ALSO PUR.SUE DISCUSSIONS ON ECoto!MERCE ISSWS
WITH J::U COMMISSION OFFICIALS. WHILE IT IS DIFFICULT TO JUi:JGE
PRECISELY WHERE WE WIL~ SE ON SPECIFIC ISSUES' AT THAT TIME,
THE LATE MAY TIMEFRAME MAY BE A GOOD PERIOD TO DISCUSS
ELECTRONIC AUTHENTICATION, AS THE UK PRESIDENCY HOPES TO
REACH AGREJ::MENT WITHIN THE EU ON.A POSSIBLE DlRECTIVE.ON THIS
UNCLASSIFIED
3
CLINTON LIBRARY PHOTOCOPY .
�ROUTINE
UNCLASSIFIED
WHITE HOUSE SITUATION ROOM
PAGE 06 OF 07
7.
(SBU)
AFTER THE SESSION WITH MS. BURR, DE CROMBRUGGHE
CALLED THE EMBASSY
EXPRESS THANKS FOR THE MEETING AND,TO.
PROVIDE HIS ASSESSMENT OF THE DISCUSSION; THE MEETING HAD
BEEN SUCCESSFUL IN ~"PLACATING TO SOME EXTENT AND BLUNTING THE
SHARPEST EDGES·OF BELGIAN OFFICIALS' CONCERNS" WITH USG
POSITIONS, HE SAID.
IT ALSO ILLUSTRATED, HE BELIEVED, THAT
"YOU (AMERICANS) MAY PUT THE EMPHASIS ON LETTING THINGS GO .
. (TO THE PRIVATE SECTOR),. BUT EXACTLY. THE SAME CONCERNS AND
EXACTLY THE SAME INCLINATION TO INTERVENE EXIST."
THE USG
.POSITION IS NOT AS LIBERAL AS IT SEEMS; THEUSG, FOR EXAMPLE,
HAS PROPOSED A HIGHLY "INTRUSIVE" MANDATORY USE OF SOFTWARE .
BY ALL MERCHANTS WHICH WOULD AUTOMATICALLY INFORM A
PURCHASER'S STATE OF RESIDENCE OF HIS PURCHASE AND THE TAX
·HIS STATE WAS DUE ON IT.
THERE IS A LOT THAT GOVERNMENTS
HAVE TO DO TO ADAPT THEIR POLICIES TO THE NEW REALITIES OF
E~COMMERCE, DE CROMBRUGGHE MAINTAINED .. WHEREAS THE USG
STATES THAT "GOVERNMENT SHOULD NOT INTERVENE,·WE.BELIEVE THAT
GOVERNMENTS SHOULD INTERVENE AND ciANGE THEIR WAYS -- REMOVE
·THE BARRIERS IN THE EXISTING LEGAL FRAMEWORK THAT IMPEDE
GROWTH OF.E-COMMERCE. OUR PURPOSE IS TO REMOVE _THEM.AND TO
REMOVE THEM. YOU NEED GOVERNMENT ACTION -- TO ENCOURAGE
LEGISLATIVE CHANGE$,· FOR EXAMPLE."
ro
.
.
8.. (SBU)
ON THE OTHER HAND, DE CROMBRUG_Gf:i:E CONTINUED, ·
CONSUMERS HAVE JUSTIFIABLE CONCERNS WHEN THEIR PERSONAL DATA
ARE BEING SENT ALL AROUND THE WORLD
OR IF GOODS PURCHASED .
ON THE INTERNET DO NOT MEET THE STANDARDS ADVERTISED.
"CONSuMERS NEED RECOURSE,· AND YOU NEED GOVERNMENT. AC'~ION FOR
THIS ;r:T WON
COME BY ITSELF
DE CROMBRUGGHE MAINTAINED.
I
II
I ..
IT
I
II
II
COMMENT
9.
(SBU) WE HAVE REPORTED ~HE QUESTIONS RAISED AT THE ABOVE
DISCUSSION AT SOME LENGTH BECAUSE WE THINK THEY ROVIDE A
REvEALING PERSPECTIVE ON HOW KEY PARTS F BELGIUM'S
.BUREAUCRACY ARE APPROACHING THE CHALENGES AND POTENTIAL OF ECOMMERCE.
IN THIS GROUP DOMINATED BY JUSTICE AND FINANCE
OFFICIALS, NOTONCE IN THE TWO-HOUR DISCUSSION DID ANYONE.
OFFERA POSITIVE-COMMENT ABOUT THE POTENTIAL BENEFITS OFTHE
NEW INTERNET TECHNOLOGY AND ITS-USE BY THE PIVATE SECTOR ..
INSTEAD, THE CONVERSATION REPEATEDLY RETURNED TO THE
POTENTIAL FOR. FRAUD, ABUSE AND HE LOSS OF GOVERNMENT
CONTROL. AS LONG AS ELCOMERCE POLICY IN COUNTRIES SUCH AS
BELGiuM IS DRIVN BY SUCH BUREAUCRATIC CAUTION, THE PROSPECTS
FO A POSITIVE RESPONSE TO.THE USG APPROACH TO K-COMMERCE ARE
UNCLAS SECTION 04 OF"04 BRUSSELS 001423
SENSITIVE.
STATE FOR EB/CIP, EB/TPP/BTA/J:?<;;T ANDEUR(ERA
·
.
uNCLASS FlED
CLINTON LIBRARY PHOTOCOPY
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. Printe-d By: Andrew J .· Weinschenk
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USDOC ,WASHDC
·. . ·•
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INFO ALL.EUROP~ UNION POST COLLECTIVE
.
uNCLAS SECTIONOl OF02 BRUSSELS 000927
SENSITIVE
···.·
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USDOC PLEASE PASS NTIA FOR·. J .' BECKwiTH BURR
STATE_ PLEASE PASS USTR 'FOR DON ABELSON'
E~ ~OR :HAAAY-SULirvAN
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EuR/UBI FOR ·MARILYN ERESHEFSKY ·
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·.iifrt~:~i~;f~~~~~~i~~~~~ ~- ~T WE,:NEED .TO· ·ADDRESS BELGIAN· CONCERNS, OR WE ·CAN
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·SEE ACTION REQUESTED, IN PARA 9 . BELOW·:• END SUMMARY · ·. ··
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~:t¢Ii>~TE cpiiT~':ijs~~T,@GE 1:'0 ~ st~P~ ~ E,.~CE.
. iL~~.~~,;:=~~.~,~~
,. 199,7 US,.EU SUMMIT; WE _HAVE TRIED TO GET'A BETTER :FIX ON .WHAT
.· .. ,··.
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.···CLEAR: ~·;WHEN~ECOUNCQUNS>ANNOUNCE)THE,~CT· OF 'l'HE .CALL, :HE .
. REPL_IED
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CLINTON UBRARYPHOTOCOPY ·._.
)
-
�UNCLASSIFIED
Printed By: Andrew J. Weinschenk
4.
(SBU)
DE CROMRUGGHE STATED 'FLATLY THAT HE FOUND THE USG
POSITION ONE-COMMERCE "SUSPECT." THE USG RATIONALE FOR THE
. WORDING IT SOUGHT ON CERTAIN POINTS IN THE JOINT STATEMENT
·wAS "NOT TRANSPARENT •.• WE DO NOT. UNDDERSTAND YOUR
MOTIVATIONS."
WHY I HE ASKED I DID THE USG OBJECT so
STRENUOUSLY TO. INCLUDING THE WORDS "SERVICES TRADED
.
INTERNATIONALLY?"
IT IS APPARENT, HE· ARGUED, THAT COMMERCE
ON THE INTERNET IS INDEED A SERVICE. NO GOODS ARE SUPPLIED ON
THE INTERNET, ONLY ORDERS . THEREFORE, ELECTRONIC COMMERCE IS
COVERED BY THE GATS, WHICH GOVERNS CROSS BORDER TRADE IN
SERVICES.
5. (SBU) DE CROMBRUGGHE SAID HE AND HIS BELGIAN COLLEAGUES
WERE PERPLEXED BY USTR BARSHEFKY'S COMMENTS AFTER THE SUMMIT,
WHICH SEEMED TO SUGGEST THAT THE USG SEES INTERNET COMMERCE
AS COMPOSED NEITHER OF GOODS, AND HENCE GOVERNED BY THE GATT,
NOR OF ·sERVICES, AND GOVERNED BY THE GATS, BUT RATHER, AS "A
NEW CATEGORY OF GOOD,· A 'VIRTUAL GOOD' IN A TOALLY DIFFERNT
FRAMEWORK." THIS "ATTEMPT TO CREATE SOMETHING NEW" WAS "VERY .
DISAPPOINTING." HE SAID THAT HE WOULD WELCOME ANY
'EXPLANATION WASHINGTON COULD PROVIDE.
6. '(SBU) THE DISCUSSION OF A TARIFF-FREE ENVIRONMENT ON THE
. INTERNET ALSO IS IRRELEVANT,, HE ARGl:JED.
NO TARIFFS ARE
CHARGED ON THE PROVISION OF SERVICES. MUSIC, FOR EXAMPLE, IS
EXPORTED BY SENDING ONE MASTER DISK IN THE MAIL -- As MANY CDROMS As ARE NEEDED ARE REPLICATED IN THE TARGET MARKET, AND
NO TARIFF IS CHARGED.
MOREOVER, DISTRACTED BY THE "NONISSUE" OF TARIFFS, THE USG CONTINUES TO REFUSE TO DISCUSS
SEiUOUSLY ENCRYPTION, OF CENTRAL IMPORTANCE .TO THE· EU WITH
RESPECT TO ITS PRIVACY CONCERNS, AND "THE RIGHT ISSUES -SECURITY OF PAYMENTS, ELECTRONIC CONTRACTS; DATA PROTECTION, .
IPR. -:-- ARE NOT BEING ADDRESSED. "
7. (SBU) DE CROMBRUGGHE SAID THAT THERE WAs ALSO A GREAT DEAL
OF "INSTITUTIONAL DISSATISFACTiON" IN THE ~ELGIAN GOVERNMENT
WITH THE PROCESS BY WHICH THE STATEMENT WA.$ NEGOTIATED.
THE
BELGIAN GOVERNMENT, INcLUDING TRADE AND FINANCE MINISTER
MAYSTADT, THOUGHT THAT IT WAS. TOO EARLY TO MAKE JOINT
PRONOUNCEMENTS ON ELECTRONIC COMMERCE, UNTIL IMPORTANT ISSUES
HAD BEEN FURTHER STUDIED. MAYSTADT THOUGHT THE ISSUE "HAD
BEEN SHELVED." THEN THE USG AND THE COMMISSION HAD -INSISTED.
THAT A STATEMENT BE PRODUCED FOR THE SUMMIT. THE BELGIAN
GOVERNMENT WAS NOT HAPPY THAT A' STATEMENT HAD BEEN FINALIZED
(IN ITS VIEW, PREMATURELY), NOR WITH THE TEXT OF THE FINAL
DOCUMENT.
.
___ /
8. (SBU)
COMMENT: DE CROMBRUGGHE CAN BE ACERBIC AND MAKES
NO SECRET OF HIS DISLIKE FOR WHAT HE CONSIDERS UNDUE US·
ARROGANCE ON MANY TRADE MATTERS. HIS COLLEAGUES IN .THE TRADE
,AND FOREIGN AFFAIRS CABINETS AND. MINISTRIES RECOGNIZE HIM,
HOWEVER, AS A VERY SHARP AND CENTRAL PLAYER .ON BELGIAN TRADE
POLICY, AND IT IS CLEAR THAT HE WIL.L CONTINUE TO HAVE AN_
IMPACT ON BELGIUM'S POSITION ON ELECTRONIC COMMERCE. AT THE
BRUSSELS . 02 OF 02
927
E.O. 12958: N/A
TAGS:
ECPS '· ETRD I EINV I • BE
SUBJECT: BELGIUM AND ELECTRONIC COMMERCE: CONTINUED DOUBTS
SAME TIME, .HE IS NOT THE ONLY BELGIAN PLAYER WHO IS
DISSATISIED WITH DECEMBER'S ·OUTCOME; SEPTELS WILL REPORT OUR
DISCUSSIONS WITH OTHER TRADE AND FINANCE CONTACTS.
.
·9.
(SBU)
ACTION. REQUESTED: WE BELIEVE IT IS NECESSARY TO
TACKLE BELGIAN OBJECTIONS IN AN ENHANCED DIALOGUE ON ECOMMERCE, OR WE CAN COUNT ON FURTHER RESISTANCE AS WE ATTEMPT
UNCLASSIFIED
2
.
CLINTON LIBRARY PHOTOCOPY
�UNCLASSIFIED
Printed By: Andrew J. Weinschenk
TO PURSUE ANY INITIATIVES TO FOLLOW UP ON THE DECEMBER
STATEMENT. DE CROMBRUGGHE INDICATED NOT ONLY WILLINGNESS BUT
CONSIDERABLE INTEREST IN EXCHANGES WHICH WILL CLARIFY USG
VIEWS. WE WOULD WELCOME BACKGROUND ON THE POINTS HE RAISED
TO PASS ON TO HIM. IN ADDITION, WE UNDERSTAND THAT NTIA'S
BECKY BURR WILL VISIT BRUSSELS NEXT WEEK FOR DISCUSSION-WITH
THE COMMISSION ON DOMAIN NAMES; WE"PROPOSE (IN COORDINATION
WITH. USEU) THAT SHE MEET WITH DE CROMBRUGGHE AND OTHER
BELGIAN OFFICIALS ON WEDNESDAY, FEBRUARY 18 AT ? P.M. TO
DISCUSS E-COMMERCE GENERALLY. PLEASE ADVISE.
BLINKEN
·UNCLASSIFIED
3
CLINTON LIBRARY PHOTOCOPY
�Withdrawal/Redaction Sheet
Clinton Library
DOCUMENT NO .. ·
AND TYPE
SUBJECT!TITLE
DATE
RESTRICTION
001. cable
From AmEmbassy Brussels re: Electronic Commerce: Belgian
Thoughts on Duty~Free Cyberspace, European Perspectives, U.S.- EU
Dialogue· (5 pages)
.
,,
04/06/98
P5
002. cable
From Taipei re: Taiwan: Internet '98 Highlights Electromagnetic
Coillmerce, Liberalization (4 pages)
'04/03/98
Pl/b(l)
003. cable
From SecState to AmEmbassy Canberra re: Magaziner to Visit
Australia (2 pages)
04/03/98
P1/b(l)
004. cable
From AmEmbassy Brussels re: Electronic Commerce: Belgian
Thoughts on Duty-Free Cyberspace, European Perspectives, U.S.- EU
Dialogue (7 pages)
005. cable
From AmEmbassy Brussels re: Electronic Commerce: Commission.
Proposal to Treat Electronic Transmissions-as Services? (4 pages) .
03/18/98
P1/b(l)
006. cable
From AmEmbassy Brussels re: March 9 Ecofin Council - C (4 pages)
03/13/98 ·
Pllb(l)
. 04/06/98
P5
COLLECTION:
Clinton Presidential Records
Domestic Policy Council
Ira Magaziner (Electro~c Commerce)
OA/Box Number: 13123
'
FOLDER TITLE:
Brussels
Rhonda Wilson
rw50
RESTRICTION CODES
Presidential Records Act- [44 U.S.C. 2204(a)]
Freedom of Information Act- [5 U.S.C. 552(b)]
Pl National Security Classified Information [(a)(l) of the PRA]
P2 Relating to the appointment to Federal office [(a)(2) of the PRA]
P3 Release would violate a Federal statute [(a)(3) of the PRA]
P4 Release would disclose trade secrets or confidential commercial or·
financial information [(a)(4) of the PRA]
PS Release would disclose confidential advise between the President
and
advisors, or between such advisors [a)(S) of the PRA]
P6 Release would constitute a clearly unwarranted invasion of
personal privacy [(a)(6) of ihe PRA]
b(l) National security dassified information [(b)(l) of the FOIA]
b(2) Release would disclose internal personnel rules and practices of
an agency [(b)(2) of the FOIA]
b(3) Release ..would violate a Federal statute [(b)(3) of the FOIA]
b(4) Release would disclose trade secrets or confidential or fmancial
information [(b)(4) of the FOIA]
b(6) Release would constitute a clearly unwarranted invasion of
personal privacy [(b)(6) of the FOIA]
b(7) Release would disclose information compiled for law. enforcement
purposes [(b)(7) of the FOIA]
b(S) Release would disclose information concerning the regulation of
financial institutions [(b )(8) of the FOIA]
b(9) Release would disclose geological or geophysical information .
concerning wells [(b)(9) of the FOJAt N LIBRA
·
his
C. Closed in accordance with restrictions contained in donor's deed·
of gift.
PRM. Personal record misfile defined in accordance with 44 U.S.C.
2201(3).
RR. Document will be reviewed upon request.
CLIN 0
RY PHOTO COP¥
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INFO WliiTE . HOOSE WASHoC
.. USDOC. WASHDC
AL~ EuROPEAN uNION POST COLLECTIVE .
·uSMISSION GENEVA
UNCLAS. SEcTION 01 OF. 04' BRUSSELS 00221.0,
. !'
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'
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. ;'.··
E.O. 1.295S: N/A
·TAGS: -ECPS,' >EjRo,· KIPR, iroN,. BE
·. StJl!JEcr;: ' ELEcrRONIC C::OMMERCJ!!: BElJGnzq THOT,JGHTs· 'qN DUTY.,.FREE.
· CYBER:SPJ(CE, EUROPEAN_.PBRSPECTIVES, ;U ~s .•.:.Btl', D~UK
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INTE.RNII:T . _ .·.
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.~~~~~~6~s~~?J~~~-~~~~o:!~i~· ~~~~:EL~~:~···
,.
,.
SENIOR Bll:LGIAN TRADE . OFFICIALS 'EXPRESSED 'cAUTIOUS SUPPORT .FOR
·.THE PRINciPLE· OF ritiTY.;.FREE. B;.COMMERCE;> CITED.~EUROPBAN.
· .sK:EiP+re:tsM-·natrr ssL"P.~REdtri.ATio:N,:.A:Siam . .ABom-.Foi:.Low~uP --To. THE
JOiNT STAT~; DEBATED WHETHER' E-COMMERCE ..
··SHOULn. BE. CONSIDERED A. SERVICE IN. THE GATT/WTO.'SENSE; AND
· ·.· otseuss~ · ~~ ~I&a T.'J LE:s;AI. ~Iso;~l,gN Q1/ER ·
· .·
. EL~prRONIC .TRANSACTIONS. ·~ELSON!~S VI~IT')?R()VIDED. 0~ FIRST
OPPORTUNITY TO DISCUSS E~COMMER,Cii: IN DETAIL WITH THE MFA'S
, . E:CONOf:iic ~ER .. SESRETAR,Y: EQUI,YAL~# '·. -·~··• ~ ..
s:r-~t>. Ji'OR.~ , .
IN_ ,OUR EFFORTS TO EDUCATE SENIOR 'BELGIAN POLICYMAKERS ON.USG ·.
. CONcERNS. WE HAVE' RECOMMENDED A MAY '26 VISIT. TO BR."CJSSELS BY
Wir::i:±s :HousE .AnvisER ·IRA
J)i:sP:EN TfiAT DxAi.oGos Ami.
ExTEND IT TO THE BELG:iAN PRIVATE SECTOR (IU~F B)'. ·END
'.
·,.
u.s ..:.s:u
#
MAGAiim'ro
~~I·. us~ CHIEF .. ~Gdr~toa '1\B.~~~~:;. A~kr~.~-.~; ;~
·=
·.: \: .
-=~~t:i~ ~I~~T=~~T~~%~~t:r~t,~o~··{\::·-·
DISCUSS .PROPClSALS FOR A DUTY-FREE cYBERsPAcE AND, RELATED ' .
iLECTRONIC: COMMzR.CE Issm;:s. · ~scf PART:Ic~PATING WERE_ BENOIT
RYELANDT, HEAD OF THE MFA. TRADE. POLICY OFFICE, AND B~TRAND
.
,.::.···
.
UNCLASSIFIED
1
C~lNTON
LIBRARY PHOTOCQPY .
�....
.
.\.•. ""!:/ U U / ~U
..L6.·. V..L .
. '\
UNCLASSIFIED
Pli"inted By: Andrew J .. weirischenk
DE .CROMBRUGGHE, FIRST. SEi::RETARY RESPONSIBLE FOR WTO AND OECD
· ISSUES AT .THE BELGIAN. PERMA,NENT REPRESENTATION TO THE EO.
----.--,-:---- -·- ---------- ---·'
USG. APPROACH. To E-OOMMERCB
---·--~-------~-----~~---~-
3,.. {U) . ABELSON BEGAN BY DESCRIBING THE GROWING IMPORTANCE
OF E~COMMERCE TO THE ECONOMY AND ITS ·POTENTIAL BENEFITS TO
sod Err, . STRESSING· THE. usG BELIEF. THAT THE PRivATE/ SECTOR ·
SHOULD TAKE THE. LEAD IN DKVELOPING THIS ELECTRONIC NETWORK.
HE;·NOTED THAT THE U.S. ·SEES.A,ROLE ·FOR GOVERNMENTS IN FOUR;
KEY AREAs :
.
.. '
.
:
'·
.
-- .TAXES: THE OECD FISCAL .COMMITTEE IS THE APPRDPRIA't.E FORUM/
·FoR INTERNATI0}.7AL DI~cussro~s OF TAXATION .o~. E~COMMERCE;
.
THESE,DISCUSSIONS.COULO<LEADTO DE!.IVERABLES·FOR THE OTTAWA
OEcD MINISTERIAL CONFERENCE' IN OCToBER. ' DOMESTicALLY, THE.
· u .. s. IS insctis:SING A. MORATORIUM oN t¢w TAX~S;
· -- fARrFFs =· THE u ~·s. noEs NOT coNsiDER Ei:.sci'RoN'Ic
.· .
TRANSMISSIONS TO BE. IMPORTS FRoM' A CUSTOMS PERSPECTIVE,··AND
THEREFORE BELIEVES. THEY SHOULD REMAIN DtrrY~FREE (SEE· PARA 4} •
. -- ENCRYPTION:' (MENTIONED I
'.
;{ //·:·. . .
.
~
.•.
. '
.
..
'
sur' NOT
. .
.
.
;
oi:scuss~D. .FURTHER)· •
.. ·. . . ' .
..
. ... :..
.. .'
- ~. INTELLECTUAL PROPERTY RULEs.: THE wi'Po TREATIES oN · ·
.·COPYRIGHT ANri· ON .PERFORMANCES.· AND PHONOGRAMS SHOULD BE
RAT~~IED AND .IMPLE~ED PROMPTLY. i
. ABELSON ADD~D THAT ~~ OTHER F~AMENTAL ISSUES OF POTENTIAL .·
GOVERNMENT 'CONCERN -.: suck AS PRtVAC'.(, PROTECTION. HARMFUL' OR :
ILLECiAL CONTENT {E.G •• GUN RUNNING, cHILD 'PORNciGRAPHY, HATE
>SPEECH)•·,. 'INTEROPBRAlhLiri; .COMPETITION> AND .AUTHENTICATION
TfiE.'i?RIVATE sEcToR: cotn.n PL,..Y ·A cENTiuu; ROLE .IN omi:.oPiNG
SOLuTIONS; . '
,. i : ·.
THE RATIONALE roR.· .THE usG; s .
FEsR.uAR..Y.·lif-i?R.oP<lsAi. FOR. A. w±o AaR.EEMBiri oN A om..:FREz ·.
·craER.i:i'l?A.cE;'. ·A· Mtii.±:tJ::.ATERAii· PoLiciFRAMB:woR.K 'FaR· -e..:c:aon~acE
' .. :J
..-···:
·. · 4 . . . tsBo> · ABELSC)N·. oUTLINED
~;;±~~i~· ;:~~:.:s!b~D~:T~~;:rS~~~lfw~~~:bN~
· ..
TRANSMISSIONS. ;:.THIS .IS. AN :ISSUE ON WHICH NO' ONE HAS. TO .GIVE.
Ut> ANY'i'H±Na, · A.Nr:l ·wiC:H ALI. NiTI<>N~t ALR.EAriY
·To
IN PRACTICE. .. ABELSON: SAID THAT I .. AT OKcD MEETINGS IN." PARIS
THE·PREVIOUS bAY, 'THS:RE.:HAri. BEEN NO NECJATIVE ,COMMENTS ON THE
u.s. 'l>f{oP6sA,L ANI> AN' INCREASING NuMBER OF cotmrius WERE
· ·
oN
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02
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RESPbmmm·.posiTI~LY; ~OTHE,ALSO.
MADE N.OTE OF.·C)PPOSITION.
..
IF SBCJlE'rARY qENER.AL .RUGG.IERO,
E~R.ESSED i3Y,:. SC)ME 'D~L~PIN(; C()tJ:NT~Y !iEPRE~ENTATIVE~ . IN .
GE!:fEVA ... I:t" WOtJLI) BE
:DESI~LE
-~=I~C~ti~~s:r~~~I~~~~~R~6~~~o~FAT
wTO MINISTERIAL :MBETINC:f IN MAY.
•• :•_;."
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5. . (!;BU),, •·· GRA,u.t.St RESPONDED •FAVORABLY, BUT CAUTI()OSLY,
"BROADI}i,si?EAfciNG;. WE CAN AGREE WITH REGARD .To cUSTOMS DUTIES .
~;\TAXJ!:.S •· ~ · A,S ~o rit~ :0sG; Pac)l?osAI. ~. A wro· AFFIRMATION oP .. · ·
A DUT'l-'FREE.CYBERSPACE; GRAULS SAID·HECOO'LD ' 0 SEE.THE , .. ,.,,~;·.:,·.•. ,'_:··.,.,.
INTELiEciOAL kwi.• 'IN Tlixs· .APPR.o.ACH, BilT HE: wONI)E!Um.WHEIU:
;I_·.
,.:.. '.
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Tl!Is wooio LEAD AND WHAT THE NBX'i sTBPs wom.D :aE·: · .·. JriLALso · .
ASKED. ABOUT THE CONSEQUjNCES _OF HAVING s..:coMMERCE ISSuES
.
,··.····.· .
..,
UNCLASSIFIED
2
. GLINTON LIBRARY PHC)T(JCOPY
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.
UNCLASSIFIED
Printed By:. Andrew J. Weinschenk
. ..
BEING HANDLED BY TWO ORGANIZATIONS
WTO AND OECD -- AT THE
SAME TIME. DE CROMBRUGGHE LATER ADDED THAT, BY GOING TO THE
.·mo.
oNE RISKS •ENTERING INTO. THE LOGIC oF'. TRADE ; · ·. ·
· ·
. NEGoTIATioNs• WH.ERE E.A6r SIDE (INDUSTRIALI,ZED. rum DEVELOPIN(; ·..
COUNTRI~S, RESPECTIVELY) MAKES C:ONCBSSIONS; ONLY IN THE CASE
· OF E-COf<!MERCB THERE ARE. NO CONCESSIOt{S. TO"MAKE. ·
6 .. ·. (SBU} ' GRAULS ECHOBI> ABELSON's EARLI!i:R POINTS ABOUT. RAPID
GR6wrn AND cHANGE rN E-col;n.ma.cEi · -- AN APPARENT Non To
VIEW THAT· SUcH RAPID DEVEt;OPMENT ·MADE 1>i. HEAVY'
ouR.
UNFEIISI~LIL
F.EcitJip;ToRY ioLE
oowiUOO:NTAL , .
11s NofEi) TliAT "iRis <E:~coMME:RcsJ
11
IS THE FUTURE 1 • ADDING THAT·· •WE· SHOULDN'T STAAT TAXES IN
APPARENT CONi:::uRRENCE·.WITH OUR DISINCLINATION TO ALLOW NEW.
TAXES TO HAM~ER DEvELoPMENT OF THIS EMERGING SECTOR.
.
(COMMENT:'.
VIEW IS NOT SHARED BY THE BELGIAN MINISTRIES .
oF FINANCE AND: TELECOMS/Eco:Ndruc AFFAIRS. END. coMMENT~ J ·
·
·..
'
nus
-----.---------~--~r~
7... (SBU)
EUROPEANs
j
IN. SUBSEQUENT COMMENTS, . GRAULS STRESSED THAT
.HAD
AND
AN _OUTL<)QK
·sET
oF ~c6Nc.~RNs· ABoUT E-CQ~ERCE
.THAT DIFFERED , FROM THOSE IN:. THE U ~ S.
HE .MENTIONED A. STRONGER
EuROPEAN PREFERENCE FOR USING. EXISTING' FRAMEWORKs.
iNSTITUTIONS, ,AND A DIFFERENT APPROACH ON THE. ROLE OF
GovERNMENTS .. · ilyoo ARE. MORE IN .. FAVOR . oF. DEREGULATION; wE AR.E ·..
MORE' CAUTIOUS; ft
.HE ADDED THAT I FROM THE EuROPEAN
PERsPECTivE, "THrili:'Is AN .ORaEifr.NEED··FoR·.s6ME REGULATION,;,
'C!T:i:NG PRoTECTION OF,CHILDREN AS A' PRIORITY.' (COMMENT:. . THIS.
ISSOE IS PARTICULARLY SENSITIVE. IN BELGIUM AGAINST .-THE
' ..
BAC!(GRoPm,i oF fHE J)UTR.ot#'' PErioi?HiL~A CASE, • JI.T LJW:lT C?NE _
-ARREST HAS. ALREADY. BEEN ·MADE IN BELGIUM OF. AN . INDIV!DtJAL ,
' 'TRAFFICKING ·I~ CHILD PORNoGRAPHY OVER 'l'HE 'INTERNET. . END
AND
COMMENT' l
'
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.
.
.
. .
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.
..;.. , .·
: ..
··
. .. .
. 8; . (SBU) '. GAAOLS NOTED .'THAT. DIFFERENCES IN ATTITtitlES AND
PERcE:!?T:r:oN:s BE:iwEE:N iaa:
AND iroRoPE: ~Y HAD 13Ivlm
RISE· To 'TRADE DISPUTES. 'ABELSON NOTED THAT THERE IS }\'ROLE
i>oR. ·C:ot:rstiMER ·Piu:FER.EN'czf(iANti rimRE mums To·sE: soMF:
··
u.s.
F~EXIBILITY,
IN
CJ:~.±ZEN PROTEcTION ~oRES; • :
BIJT
HE
ADDED . ,.
.. ·.THAT .THESE CONCERNS NEED, TO BB . J3ALANCED AGAINST .THE POTENTIAL
oF E::caMMER.cE A5 .A. cRe:AT'oR o~ ~Tit
JoBS..
ANP
'·I'
-·-·------------~-~--·-~-~~·~-~
~~------~~-~---·~--~-~~-~.
-D~c~'ER
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E:xi?ER.Ts '; LE-irEL, II H'E
"·
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(sBtiJ · GAAOLs' BROUGHT tJP THE
1997
u.s.-Eo
STA!EMENT. 6N :E.~.coMME~CE·, •. ~&r¥~a ;
'hiE .STA":!'EMEN"r' ~*FER& ,
·EXPLICITLY .. TO '"CON'l'lNtJING •FURTHER: BILATERAL· DISCOSSIONS 'AT.
· !{.
.
').
,:.·:·
.ASur:n-iow nus I?R.&tss. woiri.o d>NTtNtJE. oR
.. · WAs THII!f··APPROACH NOW ALREADY ,OVERTAKEN BY EvENTS? : .ABELSON
· fci's:p9~E'n THAT .A LOT 'DEPENDED ON -Eu ~CTION ·To T1iE ~w , ··
TRANSATLANTIC MARKETPLACE. INITIATIVE, WHICH IN SIR LEON'S
INCLUDES AN EXPLICIT REFERENCE TO E~COMMERCE.
ABELSON
ALso· T6ok:nm·. oppoR.'rtiNiTi To .il.cmowiEoGE· DIFFICULTIEs IN THE
NEGOTIATIONS 'LEADING UP TO THE JOINT STATEMENT (wHICH THE
.
BJ;:LGiAN's.·T6GE:rtu~R. WITH Tim FRENcH HAD ·op:PosEil> .,.-. ·
. .
DIFFICtirir±Es ·irE·· ATTRIBuTED TCi .·MIXED coMMISSION/MEMBER ·stATE·
COMPETENcY ANti' TO niE'LACK' OF SUFFICIENT CONSULTATION BETWEEN
msE-TWo··ooiTIEs.:.,
<
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. DRAFT
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A sERVICE?.
•.. BRUS~Ei:.s· . 03 ·OF 04
·.. '..
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~
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(
.
Printed By: ·Andrew J .. Weinschenk
-·-------~-------------~I
'1
:~
.
.
. .
.··
,.
·- 10.. _(SBU)
GRAULS RAISED .THE ISSUE OF WHETHER ELECTRONIC
· TRANSMISSIONS SHOULn 'BE CONSIDEREI> A SERVICE-· (WITH ALL THAT_
iMPLu:'s. w:i:n RESPECT TO GATS OBLI,GATioNS AND EXCEPTION!!), _OR ·
AS A GOOD' ' OR As SOMETHING TOTALLY NEw (WHICH HE TOOK TO' BE
THE
VIEW'>'.' A LENGTHY
INCONcLus:niE n±sctJss:i:o:N ·_ '
ENSUED'. ABELSON SAID THERE WAS N_O EASY ANSWER, BuT CITED
SoME OF THE CONCEPTS THAT EMERGil:D FROM A RECENTLY COMPLETED
wro'si'tmY-. 'HE.NQTED· THAT -PERHAPS THK CONCEPTUAL FRAMEWORK'
FRoM THE PAST OOESN~T .WORK. FOR INSTANCE~ E-COMMERCE SEEMS.
To MERGE ALL FOuR MODES .oF DELIVERnlG' SERVICES THAT WERE~
n:ts'cussED IN_ THE . GATs , coNTEXT.
u.s.
:.
ANn
11. ' (SBU)
DE CROMBRUOOHE SEI:?:ED WITH THE "IS IT A SERVICE?"QUESTioN, PORSOED. THE -MATTER INSISTENTLY. HE At.so: TOOK A
'STRONGER POSITION IN FAVOR OF DUTY-FREE CYBERsPACE THAN HIS
~~~~D~~ro:~~T!:~~~ -i~~~:~~~~;. O~ET;:ri~~~~- .-
EL,ECTRONIC TRANSAcTIONS- ASO SERVICES. - "NO' ONE IN THE EU wANTS
TO PuT DUTIES' ON SERVICES . YOU REFUSED: TO CAi.L THEM '
' SERVICES. II 'IT SEEMED INCOMPREHENSIBLE TO HIM, HE SAID, THAT.
THE USG DID NoT SEE THE OBVIOUS LOGIC OF THE EUROPEAN POINT
OF VIEW.- "TO us (EuROPEANS) IT APPEARED THAT THERE WAS A
- _H_Inn~ AG~A" :oN :mE ~. s: siqE. - ~ELSON ~sUREti HIM THAT
THERE WAS NO SUCH· HIDDEN AGENDA, AND THAT; IN <FACT; U.S.•
EXPERTS. AT ONE .. TIME HAD THEIR DOUBTS .ABOUT· EUROPEAN- .
' ~QTrVATIONS· -FOR INS.ISTING _ON :rHEIR.OWN PART;tCutrut' POINT,.OF
- VIEW. DE CROMBRUGGHE WONDERED ALOUD IF IT WOULD .TAKE. A - _
·orsi?UTE. sETTLEMENT PANEL To ·!M:N-rumY DECIDE THis QUESTION.··
wom.o :BE· A
TIME- co:NsriMIN<i
ABELsoN coMMENTED .. riiAT
WAY TCf SETTLE THE 'QuESTION' AND A VERY PASSIVE APPROACH FOR
GOVERNMENTS . TO TAKE. ' . .
I -·
m:t.s .
sLow.
.
: ;.-:,
J'OR:i:SDICTION ·.· ·.
'
'
;.
'
'· .·
12. · :(ssu)
THE ISSUE: o~ .Tuarsoicr:IoN
WHOSE LAW; APPLIES TO
INTERNATIONAL ELECTRONIC TRANSMISS:l:ON ~- ALSO' WAS ·.· .·.
.
Dl:seuss'ED. :·:ABa:t.s·aN NoTEri'THAT 'l'il::ts WILL BE .A MAjoR :tssoE; , ·
...
.~E,· ¢~ta:p _!'HE ~~t~ 9fr '.A -~~ ri~i,~T .·~TIN~ HIS ()~ .· ·
HOME- PAGE. · UNDER GERMAN. LAW•. THIS :-INDIVIDUAL' WOULD BE· - · ..
vrqj;.11,~:i:~G- ~W/3 BAimr.~g A.ri\TE~TI,SINq']3r·_~KDICAL :~ .bTiiE:R ~
.. :·'
PROFESSIONALS; '.KARLIER; ._ABELSON HAD RAISED .THE·. ISSUE .OF,
SPEE(;iiio >: ': ·. ~~~IS!3;tONS OF. NJ;:07NAZI yr~W.~ :~ICH ~; .
·OUTLAWED IN ..GERMANY BUT. WHICH WOui:.D BE TOLERATED- AND., . _- : ·.. .
61? oTHEP.
AbldriiER 7 i.6oMING
i?RoTEcrED'tiNoEiR.
.•·PRmiLEM)w:sED ·wA.S .rilii oF· A FRA.ooOtE:NT sa:cmu±IEs.
Eli
DOING BUSINESS OVER rim' nri'mum •.. ABELSON POINTED. TO .THE I' : .
EO, s .•hloME COUNTRY" Rii:LE AS A WAY OF APPROACHING QuESTIONS OF',
J:UR.:t~o±t:Tr oN, Btri' 'N6Tin .THAT _THERE
'sEE:N iu:coo -P:xc'Ei>TioNs
Ril:GARri;tNG vAT o:N. CA.I,L.:,8Aci sER.vicE:s. . DE CROMBROGGHE · . , . · '
co_M.M~~ ·THAi: ,; G~ms tiil:iTE A RESPONSIBIL~TY TO BE >., ·
ACTIVE" ON ISSUES SUCH AS JURISDICTION. TO· DO OTHERWISE .WAS
II~ ABDicATION OF, GOVERNMENTAL RESPONSIBILITY. oi i ABELSON ·
.
AGIU:ED TfiAT ·ooVER:NMms INDEED HAD A RoLE/ .. Bu'r' ~T
THE
APPROPRIATE ROLE, .. AND ·.COULD THERE BE FLEXIBILITY?', .
AN
,_-
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commuis.
Tltilws
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13. ·. <sB_u) :'A8i!a:;soN.is MEETING WITH 'liiREE i<EY 'sBLGIAN :''.
POLictMAi<:ERS i wHICH FOLLOWED AN FEBRtlARY 18 VISIT BY. -NTIA' s
BECKY .• )3tiRR, (REP ci.'··AND A MARcH. 6··DIGITAL Vl:DEO 'coNFERENCE .
··. ,.---·
WITH •· IRA MAGAZriJER. · WAs ANorimR STEP. FORWARD IN IiEVEtOPING A,
SUBSTANTIV'lf DIALOGUE WITH BELGroM ON . B-coMMBRcE; .··.THE. FAcT '·.
-
';
..
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.'
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~
·:"\.'.
~
'
.
.
.·
.
UNCLASSIFIED,
4
.
.,
. .:'
~
·::·
CLINTON LIBRARY PHOTOCOPY
�OVOti/!HS.
.., ..
Prin~ed.
l<!:OJ
->">->
"Q"<!Ul .ti47 0151:1
uNCLASSIFIED
JJU.M]!;!:i'l'lC PULlCY
~00'1/0liS
Andrew J. weinschetuc.
By:
THAT WE WERE ABLE TO ENGAGE THE MFA'S 'SENIOR~MOST ECONOMIC.·,
OFFICIAL (UNDER SJi;CRET~Y EQUIVALENT) MAY HELP. ~OCUS BELGIAN
ATTENTION ON E-COMMERCE ISSUES THAT HITHERTO HAVE BEEN
~Y ·sET 'THE sTAGE
TREATED IN A PIECEMEAL, AP-HOC FASHION,
. FOR A MORE .COHERENT APPROACH TO BELGIAN POLICY FORMULATION ' ·.
INTO .wHICH WE .CAN BETTER FEED OuR IDEAS .AND.·. CONCERNS; GRAULS
.·.· HOPES TO WIN AGREEMENT THAT ";"HE MFA tm:.r. ,LEAD AN .EVENTUAL · ·.
· BELG~AN GOVE(OOtENT:INTERAGKNCY G!tQUP'ON E:-COMMERCE. ALREAOY,
. WE AAE . GETTING MORE KNOWLEDGEABLE AND MORE POSITIVE RESPONSES
FROM Gii:A:&r.s. THAN WE RECEIV!m ~ MSi ,BURR MET wiTii MO~ .. ·
JUNIOR FINANCE O:,FFICIALS ..IN FEBRUARY~
WE HOPE. TO EXPAND THE
rum
BRpSSELS
0.4 ·OF 0.4.
2210.
DIALOGUE. WITH BELGIUM BY INcREASING OUR OUTREACH TO
THE
. ~~~· ~;ii~· I~~ :e~~c;~~~~~I~I:~~= ~I~
ON.·'
26 (WHICH WE· HAVE RECOMMENDED IN REF'. B) WOULD BE ANOTHER
IMPORTANT STEP, FORWARD·. ' Elm CoMMENT.
MAY
. '
..
14 .• >(Ul
..... .
USTR.NEGpTIATOR ABELSON CLEARED THIS CABLE.
BLINKEN
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.. UNCLASSIFIED
.
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·,·
PAGE 01 .OF 07
.· PRT: MAGAZINER
·:~SI-T: NSC.
.---~~~---~~---~------~-~------------~~-------~------------J------~---~-------------~<PR;EC~-ROUTINE
<CLAS> uNCLASSIFIED.
'.·,·
<DTG> 06;L5,34Z APR 98.
FM AMEMBASSY BRUSSELS
.
'
TO RUEHC/SECS~ATE WASHDC 7879
INfO RHEHAAA/WHITE HOUSE WASHDC
RUCPDOC/USDOC W:ASHDC
..
RUEHXQ/ALL EUROPEAN UNION POST COLLECTIVE
RUEHGV/USMISSION GENEVA. 0096
.
UNCLAS SECTION 01 OF·04 BRUSSELS 002210
•
•
..
l
'
. SENSITIVE.
STATE FOR EB/CIP- WEINSCHENCI(,- -EB/TPP/BTA/DCT - 0' BRIEN
AND EUR/ERA:- WINSHIP .
.
. . . - .
.
S':['ATE PASS USTR FOR DON 'ABELSON,'·
USDOC FOR OSEe' -'HOFFMAN
.· .
I
NTIA
BURR,
.ANb
ITA - WELLBERY'
.
WHITE HOUSE FOR MAGAZINER
E~O. 12.95S: N/A
. . .
TAGS· ·ECPS: I ETRD I · · '··. . ~ .. ~ EUN. I BE
KIPR
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. .·· .
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... ; •
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,
.
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SUBJECT:' ELECTRONIC COMMERCE:
BELGIAN THOUGHTS ON DUTY-FREE
. CYBERSPACE I EU:B.OPEAN PERSPECTIVES I·. u. s. -EU DIALOGUE
.
.
'
.
.
REF:_ •.. (A) BRUSSELS 0926,
(C) BRUSSELS 1423 ,.
(B) BRUSSELS 1379,
(D) BRUSSELS 1716.
. . THIS . MEpSJ\G:Ei. IS SENSITIVE BUT UNCLASSIFIED. . NOT FQR
DISTRIBUTION,
INTE~T
·.
. 1 . .( SBU) . .SUMMARY: DURING AN ·APRIL 1: MEETING. WITH .USTR CHIEF
· 'NE<;;o:riA':['OR .fOR. coMM:Lm":I:~AT~oNs · AND INFOEl.fATION pON.ALP ABE.LSON, .·
SENIOR BELGIAN . TRADE OFFICIALS . EXPRESSEO CAlJTIOUS SUPPORT FOR
THE PRINCIPLE OF DUTY-FREE K-COMMERCEi CITEO EUROPEAN.
·· s:KE::PTicisM:'
sELF-'REGuLA'i'±oN:; ·AsKED. A.BouT F-oLLow:--uP To
THE tJ. S. :..Eu gOINT STATEMENT; DEBATED wHETHER E:-'-COMMERCE
SHOULD BE. CONSIDERED A SERVICE IN. THE.'. GATT/WTO ,SENSEi.· ··AN!) .
- DISCUSSED MATTERS· RELATING TO . LEGAL·· JURISDICTION OvER '
··. ·
ELECTRONJ;C TRANSACTIONS. ABELSON'·S. VISIT PRQV;iDED,OUR. FIRST
OPPORTUNITY- TO DISCUSS E-COMMERCE IN DETAIL WITH. THE . MFA, S - ECONOMIC. :UNDER·- SECRETARY EQUIVALENT ANDJ!J#S ·-·A STEP .FORWARD
.- IN OUR EFFORTS TO EDUCATE SENIOR BELGIAN POLICYMAKERS ON USG
WE .HAVE RECOMMENDED A MAY 26 VISIT TO BRUSSELS BY
CONCERNS.
' WHITE HOUSE ADVISER IRA MAGAZINER. TO DEEPEN THAT DIALOGUE AND . EXTEND IT TO THE BELGIAN. PRIVATE SECTOR ·. (REF B) • · END
SUMMARY.·
CLINTON LIBRARY PHOTOCOPY
Jlliour
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..2. , ;(U)
USTR CHI-EF NEGOTIATOR ABELSON, .ACCOMPANIED BY- DCM
AND ECONOMIC OFFICER, CALLED ON BELGIAN MFA:DIRECTOR GENERAL
FOR ECONOMIC AND BILATERAL RELATIONS JAN GRAULS ON APRIL .l To·
.
~iig?~~Ni~PEg:~~c~ 0~s~u~~~y-i~~~ ~!~~~gi~i~I~~:~A~:~OIT. ·.
.
RYELANDT,. H:EAD' OF THE MFA 'TRADE -POLICY-OFFICE~ AND BERTRAND
.·. DE.'CROMsRUGGHE, •. FIRST SECRETARY RESPC)NSI13LE .FOR· WTO. AND. OECD ..
. ISSUES 'AT THE BELG:j:AN' PERMANENT REPRESENTATION TO THE .· EU ..
~~--~~-----~--~~---~---~~~
US.G .APPROACH TO. E-COMMERCE
\
.
. '3 .
(U)
ABELSON BEGAN B~ DESCRlMING. THE . GROWIN9 IMP~RTANCE .
OF. E-COMMERCE ~0 ,THE E.C9N<:>:MY AND ~Ts· POTENTIAL .BENEFITS TO
. SOCIETY, . STRESSING THE USG BELIEF .THAT THE PRIVATE SECTOR
0
SHOULD TAKE TilE LEAD' IN DEVELOPING TIH.S ELECTRONIC; NETWORK ..
.·HE :NoTm) THAT THE u. s ...·SEE~. A ROLE ·FoR GOVERNMENTS ·. IN· FOUR.
KEY ..AREAS:
. ·.·
· · .·'
·· ....... ·
. ·,·-::.
·-~TAXES:THE O~CD'FT~C~LCOMMITTEE,TS.THE
APPRbPR.IATE FORUM
FOR INTEIU·JATIONAL DISCUSSIONS ()F, TAXATION '()F E":"COMMERCE;
.•..
··--~~~EEM~~i~~~~i~scg~~~E~~I~ o~~~~~~~B~~~~·~~ti~~y?Tf~:~
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IS DISCUSSING
· .. . · ': ;~'-
.·. ~ .:
.A.
MORATORiUM ON.
.. _-:,.' ·'
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NEW 'TAXES ..
' . .
·. ·: . ·:.. :_·. ·. :·. ,. ,· : :
·.
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!
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) ,:.; _: TARIFFS :
THE ti .· s. '.'I)OES :NOT CONSIDER ELECTRONIC . .· .•.
' ..
.TRANSMISSIONS·. TO .BE IMPORTS 'FROM A. CUSTOMS PERS,PE,CTIVE I AND .
THEREFORE BELIEVEs THEY.s~~utri REMAIN, nuTY"""fR.E:E: (sEE: PARA 4)..
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·-~~·.INTELLECTUAL~ PROPERTY RULES: . - THE WIPO'' TREATIES .ON ..
coi?YRIGHT 'AND··o:N .. PE:R.:Fc>RMAN-cE:s ··ANi> ·p:fio:NoG:RAMs ·sHoULb .. BE:·
RATIFr'EQ AND'· IMPLEMENTED ·PROMPTIN •'.
. .
!
'
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ABELSON ADDED THAT ON. OTHER. FUNDAMENTAL ISSUES· OF· POTENTIAL ·
. GOvERNMENT ·CONCERN :.. - sucH AS PRT'\l.AcY": PRo'TECTION, ·•· HA'RMFuL ·oR.··.·
. I·LiE:8u~ coNTENT (E::e;.·, :.c;tiN·i~.uNN-niG,· . cittLD._PoRN'odliAPHY',< HA.rrE'...
· si?EECH) i -rNTEROPERiffirLITY, ·coMI>E:Ti'l'IoN', ·... AND A.u±H::ENiJ:ircAT:.roN ·'-'"" •.·....
. THE' PRIVATE SECTOR ·COULD ;PLAY A CENTR.A.L ROLE IN, DEVELOPING::· J:;·/:
.SOLUTIONS.
. . ·· . , < · ·.'•'\.· .:.~·/1·.~;~. :·\:,:~,·.':,:;:'···.·:' ·:
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4.'. .. ( SBU) • ABELSON~ OUTLINED THE RATIONALE FOR THE' USG 'S
FEBRUARY 19 . PROPOSAL FOR A. WTO AGREEMENT ON A DUTY:...FREE '•
.. · CYBERSPACE.· A MULTILATERAL •· POLICY FRAMEWORK FOR . E-COMMERCE.
NEEDs
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. AF,FTRMATION THAT THERE SHOULi) BE NO TARIFFS ON' ELECTRONIC
'TRANSMISSIONS~
THIS Is<lill ISSUE oN<WHICH ao ONE HAS TO,GIVE·
tJ? ANYTHING, AND.ON .WHICH ALL NATIONS ALREADY SEEM TO AGREE
IN PRACTICE. . ABELSON SAID THAT; AT OECD MEETINGS IN PARIS
THE PREVIOUS D.AY, .·THERE· HAl), BEEN NO NEGATIVE COMMENTS ON THE ·
u.s .. PROPO'sAL 'AND AN INCREASING :NUMBER· o:F' coUNTRIES · WERE
· .UNCLAS 'SECTION 02 .OF. 04·. BRUSSELS ·002~210 .···•
·.. . . .
.. : :
.
.
.
: \·
.
~'·
.,
·.SENSITIVE
~-STATE FOR EB/CIP WEINSCHEN_CK/ EB/T~P/BTA/DCT
' AND EUR/ERA - WINSHIP
.
.··..
'
,
.
, I
O''BRIEN
·. ·..
.
. STATE PASS USTR FOR DON ABELSON
·. •-· US DOC fOR OSEC ..:. HOF·F~; NTIA
..
.
C-'
BURR, AND TT~ - WELLEERY .·. ' ·
.
wHITE HOUSE FOR'MAGAZINER
. E<d. 1295B:. N/A>
. . ·.._
.
. ... ·.·
.·:TAGs.:.-:·~·~:EdP·s,· ·E.TRii., <KtPR~
.
EUN ,.·.BE· . . ··.
;.
. .· ·
:· ..
;·'
~
.
·.
,,
. . su:B.JEcT( • EiL¢cTRONic co+-1MERcE: · BELGIAN THOUGHTS, .oN. DUTY~FREE · ·.
··. CYB~RSPAG:E, EUR,OPEAN PERSPECTIVES,_· u.s. _;:Eu, DIALoGuE:
· · ·
·,·.:
~·
REF·: ,· o~.j B:Rti$sE:ts• ·.o926; '· · (B) <~3RlJSSELS· l37Q;, ·.
..
.. ·.... : . ' . . .
· RESPONDING· POSITr\TELY; ·BUT HE ALSO MADE NOTE oF'• OPPOSITION
· E:x:PRE:ssErY BY· soME: t>mL6PiNG couNTRY ::rmi?RESENTATrVEs IN ;, .i
GENEVA. . • IT W0ULJJ BE . DESIRABLE . IF SECRET.ARY· GENERAL RUGGIERO,
.RATHER THAN .THE u.s •. OR 'AN¥ OTHER COUNTRY .OR GROUP OF
. COuNTRIES, . GOULD PRESENT· ·THE INITIATIVE ''FOR ADOPTION AT TIIE
· ·•· WTO 'MINISTERIAL MEETING rN-' MAY.' .• · .. ;.:..
· ·
. ·.
.. ,.
.,:
. . . ·,_·
I
;·"1
.
·_·:
., .....
·~ .·
',
\ ',
·~ ...
. ..
,·.; .··.
· s. ·.
·tsBu) • · GRAt;ts. ·RE:SPONDEI> FAVORABLY, BUT cAuTiousLY~.·
. ·. ;''BROADLY SPEAKING,' WE CAN .AGREE. WITH REGARD TO .'CUSTOMS DUTIES
-ANI)·. TAXES~-· ...-~- A.s' ':ro. THE. usG PROPOSAL; FOR 'A: wif'o AFFIRMATION. 6F .
· · A, nuT"{"'- FREE 'c:!t:S'EF.si?Ac:E; GRAuts sAID H:Ecou:LD · ·.. SEE THE · ' _ ·. · ·. ·
. ·.
.
. ' INTELLECTUAL MERIT", IN 'THIS APPROACH, :BUT HE WONDERED wHEP.E
. T~Ip WOULD LEAp ·~ WiiAT THE NE~T STEPS WOULD _BE~ ':HE ALSO
. ASKED ABOUT THE. CONSEQUENCES OF HAVING EiCOMMERCE ISSUES •.. ·..
~~~tr~~~gE:~~~~~Rg~g:I~t~i~Nint;~tiYJfiiAWB~~~g:t~d
*6 · ~~: ·
:.
. WTO, ONE 'RISKS . '.'ENTERING._·····rNTO THE· LOGIC,:OF TRADE
; r<-•c:,·>.·~:-.:',_· _.
·
. NEGOT:i:AT'IONS~.:':'WHERE EACH SIDE (:INDUSTRIALIZED AND' DE\TELOPING ..
'COuNTRIES_}.(·~RE:SPECTIVELY) MAKES ·CONCESSIONS;. ONLY :IN THE CASE '• >
· oF ·:E.,.:co:MME:Rc:E.•'I'liEiR.E: .ARE ·N.o coNcEssroNs :To- MAI<E. · ·
::::·t ,·:>·' ·.· ··
....
-
1
·
..·.. ·..
.•
...... .
6 ~ , ( s:Bu/ ' GRAu!Js' ECHOED ABELSON '.s EARLIER POINTS ABOUT RAPID . . '
GROWTH-AND CHANGE· IN.'·E-:COMMERCE _:.._ .liN .APPARENT NOD_· TO :_OQR ·
VIEW THAT. SUCH -RAPID DEVELOPMENT ·MADE A 'HEAVY GOVERNMENTAL.
REGULATORY ROLE ·UNFEASIBLE . .· HE NOTD THAT "THIS (E-:COMMERCE)
'IS TH:E FUTURE,
ADDING THAT ,;WE . SHOULDN'T START TAXES~' . IN . .
..
..
.· ·.
. ·
. :•
•
. APPARENT'' CONCURRENCE WITH OUR DJ~_lNCLI,.N.~TIQ.N TO ALLOW_ NEW
.· ·. UN(;LA~~IFIED ·... . CUNTONLIBRARYPHOTQCOPY
... ·.. : : ·~ ·~. ·.·..
.
II
,
.. \ .
�UNCLASSIFIED
ROUTINE
WHITE HOUSE SITUATION ROOM
PAGE 04 OF 07
TAXES TO HAMPER DEVELOPMENT OF THIS EMERGING SECTOR.
(COMMENT:
THIS VIEW IS NOT SHARED BY THE BELGIAN MINISTRIES
OF FINANCE AND TELECOMS/ECONOMIC AFFAIRS. END COMMENT~)
EUROPEAN .PERSPECTIVE
7.
(SBU)
IN SUBSEQUENT COMMENTS, GRAULS STRESSED THAT
EUROPEANS HAD AN OUTLOOK AND SET OF CONCERNS ABOUT E-COMMERCE
THAT DIFFERED FROM THOSE IN THE U.S.
HE MENTIONED A STRONGER
EUROPEAN PREFERENCE FOR USING EXISTING FRAMEWORKS AND
INSTITUTIONS, AND A DIFFERENT APPROACH ON THE ROLE OF
GOVERNMENTS. ·~ "YOU ARE MORE IN FAVOR OF DEREGULATION; WE ARE
·MORE CAUTIOUS."
HE ADDED THAT,· FROM THE EUROPEAN
PERSPECTIVE, "THERE IS AN URGENT NEED FOR SOME. REGULATIOU, ".
CITING PROTECTION OF CHILDREN AS A PRIORITY.
(COMMENT: THIS
ISSUE IS PARTICULARLY SENSITIVE IN BELGIUM AGAINST THE
BACKGROUND OF THE DUTROUX PEDOPHILIA CASE~ AT.LEAST ONE
ARREST HAS ALREADY BEEN MADE IN BELGIUM OF AN INDIVIDUAL
TRAFFICKING IN CHILD PORNOGRAPHY OVER THE INTERNET.
END
COMMENT.)·
8.
(SBU) .GRAULS NOTED THAT.DIFFERENCES_IN ATTITUDES AND
PERCEPTIONS BETWEEN THE U.S; AND EUROPE ALREADY HAD GIVEN
RISE TO TRADE DISPUTES . . ABELSON NOTED THAT THERE IS A ROLE
.FOR CONSUMER PREFERENCES AND-THERE NEEDS TO BE SOME
FLEXIBILITY IN_CITIZEN PROTECTION MEASURES. BUT HE ADDED
THAT THESE CONCERNS NEED TO BE BALANCED AGAINST THE POTENTIAL
OF E-COMMERCE·AS A CREATOR OF WEALTH AND.JOBS.
FURTHER U.S.""EU DIALOGUE
9. _( SBU)
GRAULS BROUGHT UP THE DECEMBER 1997 JOINT U.S. -EU
STATEMENT ON E-COMMERCE. NOTING THAT THE STATEMENT REFERS
EXPLICITLY TO "CONTINUING FURTHER BILATERAL DISCUSSIONS AT
EXPERTS LEVEL," HE·ASKED HOWTHIS PROCESS WOULD CONTINUE. OR
WAS THIS APPROACH NOW ALREADY OvERTAKEN BY EVENTS? ABELSON
.·RESPONDED THAT A LOT DEPENDED ON EU REACTION TO THE NEW
TRANSATLANTIC MARKETPLACE INITIATIVE, WHICH IN SIR LEON'S
DRAFT INCLUDESAN EXPLICIT REFERENCE TOE-COMMERCE. ABELSON
ALSO TOOK THE OPPORTUNITY TO ~CKNOWLEDGE DIFFICULTIES IN THE
NEGOTIATIONS LEADING UP TO THE JOINT STATEMENT .(WHICH THE
BELGIANS TOGETHER WITH THE. FRENCH HAD-OPPOSED) -- ·
DIFFICULTIES HE ATTRIBUTED TO MIXED COMMISSION/MEMBER STATE
COMPETENCY AND TO THE LACK OF SUFFICIENT CONSULTATION BETWEEN
THESE TWO ENTITIES.
IS E-COMMERCE A SERVICE?
UNCLASSIFIED.
CLINTON LIBRARY PHOTOCOPY
�ROUTINE
UNCLASSIFIED
WHITE HOUSE SITUATION ROOM
. PAGE 05: .OF 07
. I-
. UNCLAS SECTION 03 OF 04 BRUSSELS 002210
SENSITIVE
'STATE FOR EB/CIP - WEINSCHENCK, 'EB/;PP /BTA/IJCT '""" O'BRiEN
' '
'
'AND' _EUR/ERA -· WINSHIP
. ·. ., .
.,
'
STATE.PASS USTRF.OR DON ABELSON
/'
' USDOC 'FOR -OSEC
' VVHITE HOUSE·
·~
HOFFMAN i
·.
NTIA - 'BPRR,}
·,
~OR MA~AZil\lER'
'
.
·.
\'
'
AND
ITA
·WELLBERY.
'
'
E::C). 12958:. N/A,. · .
','TAGS': ECPS, ETRD,. KIPR', 'EoN BE ' '' ,·' ..•.. ·.
' ' '.I·. '
·.SUBJECT:..·.· ELECTRONIC COMMERCE':·' .BELGIAN~THOUGHTS ON DUTY-FREE
CYBERSPACE :EUROPEAN...PERSPECTIVES·, ''u.s . - EU D-IALOGUE
'
'
. .
,..
.
. .· ' .
.
. . ·.· ... .
...
..
..
I
I '
.·
'
.!.
TsBu). GRAuJ:.s -•~:rsED ~HE. ±ssuE: OF Wii:wr,li:ER..·ELECTRoN:ic
. ·'I'RANSMISSIONS SHOUi.tr BE CONSIDERED N. SERVICE o(WITH ALL THAT ·
. ·'iM:P.LTES WITHRESPECT·'TO GATS OIGATIC>NS AND'EXCEPTIONS) OR ..·
·A_s:A GOOD,_._oR.•As.,sOMETHING· TOTALLY-·NJ!:w· (WHICH'HE. TOOK TO'BE·
·.·.THE. u ~s ~---VIEW) .
A .LENGTW.l: :AND•· rNcONctus:i:\TE DiscussioN
· . lllistmn> -.iB:Et'so~
i:rH::ER:E w,As.
~s:Y .ANsWER, I~uT ciTED
·.soME:·:oF·•·-THE<coNcEPTs THAT_ EMERGED :FF.oM: -A'RE:cllli'I'LY coMPLETED
WTC> STUDY.. ' 'HE NOTED, THAT' PERHAPS 'THE CONCEPTUAL FRAMEWORK
FRO~ TiiE PAS'I' oo~SN' T.
:FOR. J:NSTANCE, :E~co~:RcE sEEMS
. TO MERGE ALL FOUR MODES OF DELIVERING SERVICES THAT WERE ',
.
·. DISCUS~mp IN .THE GATS' CONTEXT. • ·· .·.: ·.
. . ..
.
.
.
.
·. ·1o. :
I
sArn
',_:.·
;No
wo:R:K. -·
·:.-
..
.
'
:,
..i"· .
..
:.
\
.(sBT.J) DE .cRoMBRUGGI!E ·sEIZED wiTH: THE "Is. ·rT A sERVICE?"
QlJESTION, .'PURSUE!) THE MATTER: INSISTENTLY.·.· HE ALSO TOOK A· ..
STIWNGER .POSITION· IN FAVOR OF DUTY:.,:FREE CYBERSPACE TIW\T HIS
CoNs:tbER:ABty· :Moi:m sENIOR coLLEAGUE; GRAULS·. ::bE CROMBRUGGHE
·, S]?O~E ..OF ·~ . LON(j~ST,~ING EUROP~ TRADITION OF 'TREATING, 'ALL •.
ELECTRONIC TRASACTIONS AS' SERVICES. . "NO ONE IN .THE EU .WANTS
- TO PUT ;DUTIES 'ON SERVICES .
You REFUSED 'I'o. CALL. THEM .. ·· . ·..
sERvrcE:s·J ...... .-·fT, :sEEME:n . . ··IN'coMPREHENsi:eL:E '·iJ:'b JiiM; .. HE sArn, ··THAT
. Tim ,···:·..... ·.. . , .. _,.·,.;,':Nc:ir:r ·· 's:EE .>THE .~o:Bvious ....;todrC:.':oF:'.tHE: 'i··· . . . ' .
usd
.E:uR.oPE.AN' POINT. · ·.
\'
.
'•,·
.'· .•. · ..
···;:·-·
.. ·
·.
. ..... ".
· .. ·. ···.·: ·.-.. ···• -·: ..
;.··· . .
·.
·.
'·OF VIEW·'<:,:::.~'TO :US·\(EUROPEANS)<:':IT APPEARED<THAT<THERE WAS· A·.·
..
·: ·Hrnn:EN·· AdooK~''::'o:N:·:THE u; ~ .:stoE:>,\>.,ABELsoN'-:.As'sURED.HIM 'THAT· ..
THERE· wAs' No . sucH: HIDDE!:i AGENDA., ..AN'b THAT; :
FAcT,
.
. 11. ·
nrn
;·."·'··~
-~··
s
.
-~··
rN
u.s .
~;~~~i~±~.~~O~RTi:I~N~H~~RT~·~~~~~~:T~~()INT
.
--·
·· ..
.• .
.. OF·
. • VIEW; .· .D~: CROMB~UGGHE. WO.NDERED ALOUD IF IT WOULD TAKE. A .
.·
DISPUTE SETTLEMENT .PANEL TO EVENTUALLY DECIDE TH.IS QUESTION. .
ABELSON, COMMENTED THAT THIS' WOULD BE A: SLOW I. TIME-CONSUMING ..
WAY . TO SETTLE' THE QUESTION I,: AND :A VERY: PASSIVE APPROACH . FOR .
. GOVERNMENTS 'TO TAKE.
. . .
..
·.
· ·
·
~.
··
. .···UNCLASSIFIED·
CLINTON LIBRARY PHOTOCOPY .
·.
"
�l ..·
..
'
-·ROUTINE
·UNCLASSIFIED:
WHITE HOUSE SITUATION ROOM.
.
. ·:. ·..
. PAGE 06 OF 07
--~
.......
~
____ ....;. __
~-·-
..JURISDICTION .
.
~---~-.....:--.---~·
..
..,
:
12 . · ( sBu)~ THE· issuE: oF JURISDICTION
. vlliosE ·LAw APPLIEs To
AN INTERNATIONAL ELECTRONIC TRANSMISSION -:- ALSO WAS .·
.
ABELSON NOTED THA~ THIS WILL BE A MAJOR ISSUE..
.DISCUSSED.
HE/·c;ITED. THE.E;XAMPLE OF ·A GERMAN DE~TIST CREATING.. HIS._oWN·
. HOME PAGE.. UNDER GERMAN LAW, THIS INDIVIDUAL. WOULD BE
VIOLATING LAWS ·BANNINGADVERT:ESING'BY MEDICAL ·AND OTHER .
EARLIER, 'ABELSON HAD RAISED TH:E ISSUE OF
. PROFESSIONALS~
"HATE SPEECH"·-~'TRANSMISSIONS OF NEO-NAZIVIEWS WHICH ARE
.
OUTLAWED> IN GERMANY,- BUT WHICH WOULD BE TOLERATED AND'
PROTECTED uNDER THE LAWS. OF OTHER COUNTRIES~ . ANOTHER''·LOOMING.
PROBLEM. R:ArsE:n wAs TriAT 6F_A,·FRAuDu;r.,E:NT sEcuRITIEs :PEA£ER · · ··
DOING· BUSINESS OVER T:H:E<J:NTERNET. · .ABELSON POINTED .TO THE
.:Eu .' "HOME couNTRY;; . RUL~ As.· A WAY :oF. AP.pROACH.:tfm· QUESTIONS ·OF
·JU:RisDrc'l'ro:N;-':BuTNOTEn-'i'H:AT THERE :HAD'13:EEN·RECENT::Exc:EPfio:Ns
•
•I
s
~~~~~~~~~s·~
'. ''AN .ABDICATION 0F .. GOVERNMENTAL :RESPONSIBILITY.".·. ABELSON: ....
.· .· AGitE:Eo ·.'i'HA.1' :GoVE:illiMENi:rs: :rN-tmE:n··.HAn A.··.:RoLE;. ·BuT·
tilE.
· .Ai?:PR.oJ?R.:J:A±E: i{oLE ~ A:Nb couLD TiiERE BE FLEXIBILITY? · ·
· · ··· · ·
Wm.'f wAs·
• .
·,
.
:
i
·_ .. coMMENT· ..
-.------
..
.•. '
. ...
..
\
\
.
.:··:··..
;:
/;_>~'·.
'
.
'; .
/
.
..
.
·'''
·";··
. :·. :.. :··
-·
I'
. ' .
:·,-'
. '
:
:'
..
· 13,.
(SBU) .. ABELSON'S MEETING. WITH THREE KEY' BELGIAN .
Pot±cYMAkERs~ WHICH 'P.otLowEo··AN FEBRUARY lB VISIT BY NTIA' s
· · BECKY• BURR (REF c)._. ~D A.MA.Rcii:.6 :DIGITAL VIDEO CONFERENCE
·WITH IRA MAGAZINER, WAS ]ill'OTHER STEP FORWARD IN DEVELOPING A
sUBsTANTIVE DIAL0GuE,wtTH:.:BELGIUM oN E:...coMMEiRcE. ·.· THE FACT , .
· T!LA~ _wE WERE $LE l:fo, i'~N~V~G~ 'I'~E r.wA·,
sE:NioR~MosT E:cpwoi-fic · .
. OFFICIAL .(UNDER<.SECRETARY EQUIVALENT) MAY 'HELP FOCUS BELGIAN
:ATTENTION· ON E'.;ddMMEt{CE. ISSUES THAT HITHERTO• HAVE BEEN. '·.. . ·..
• TR.EArrE:·n IN ·A ·PiEc'EMEALi· Ari;_Hoc FAs!IIo:N, ·AND
sE'I' 'Ta:E·· ~sTAGE
·_· · F9RJ\ ~M9F_E· c·oH~~ijiT)\~P~().A_c~ TO BEJ:.GIAN, POLI~Y FORMl:JLA':[':J;()~. , ..
' ' INTO .WHICH WE CAN BETTER FEED .OUR IDEAS ·AND. CONCERNS; GRAULS
s
·w;;y
--~~~~i~~~~~~:~m~~,~~~~:~pw~~~Et~~c~N~~Eifri~·,.·. •·
.· ··:.·-
WE ARE··· GETTIN<f"MORE -KNOWliEi:>GEABLE- ·AND MORE·. POSITIVE. RESPONSES . :·
. ·, FRoM GRiuLs . THAN' •WE: · R:EcErv'En WHEN :Ms; · BURR; :MET wiTH -MORE .<•,: "· .-.· . . ·
..
.
. JUNIOR FINANCE OFFICIALS IN FEBRUARY. . WE HOPE TO EXPAND THE
..
. ..
. UNCLAS SECTION 0'4. OJ:i' '04 BRUSSELS 002210
SENSITIVE
'
.
'·,
.
.
STATE FOR EB/CIP - WEINSCHENCK, EB/TPP/BTA/DCT - O'BRIEN
·.'AND EUR/ERA
WINS~~p.
UN· CL"AS.·S.IFIED- ·.·
.
.
·-.
.· .'
CLINTON LI~RARY PHOTOCOPY_·..
.•
"·
!'
�-------------------~---------------
UNCLASSIFIED
ROUTINE
WHITE HOUSE SITUATION ROOM
PAGE 07 OF 07
STATE ?ASS USTR FOR DON ABELSON
USDOC FOR OSEC - HOFFMAN, NTIA - BURR, AND ITA - WELLBERY
WHITE HOUSE FOR MAGAZINER
E.O. 12958: N/A
TAGS: ECPS, ETRD, KIPR, EUN, BE
SUBJECT: ELECTRONIC COMMERCE:
BELGIAN THOUGHTS.ON DUTY-FREE
CYBERSPACE( EUROPEAN PERSPECTIVES, U.S.-EU DIALOGUE~
.
.
.
REF:
(A) BRUSSELS 0926, (B) BRUSSELS 1379,
.
DIALOGUE WITH BELGIUM BY INCREASING OUR OUTREACH TO THE
PRIVATE SECTOR. THE PARTICIPATION OF.IRA MAGAZTNER AS
KEYNOTE SPEAKER IN AMAJOR TELECOMMUNICATIONS TRADE FAIR ON
MAY 26 (WHICH WE HAVE RECOMMENDED IN REF B) WOULD BE ANOTHER
IMPORTANT ST:EP FORWARD.
END COMM:ENT.
14.
(U)
USTR NEGOTIATOR. ABELSON CLEARED THIS CABLE.
BLINKEN
<ASECT>SECTION: 01
:.;ASSN>2210
. <ATOR>980406103939
<ASECT>SECTION: 02
<ASSN>2210
<ATOR>980406104023
<ASECT>SECTION: 03
<ASSN>2210
<ATOR>980406104648
<ASECT>SECTION: 04
<ASSN>2210
<MSGID> M3232127
OF 04.
M3232127
.OF 04
M3232128
OF 04
M3232145
OF 04
UNCLASSIFIED
CLINTON LIBRARY PHOTOCOPY
�Withdrawal/Redaction Sheet
· Clinton Libra1y
DOCUMENT NO.
AND TYPE
DATE
SUBJECTffiTLE
RESTRICTION
00 1. message
Re: [internet issues] (1 page)
11114/97
P5
002. message
Re: [internet issues] (copy of doc. 001) (1 page)
11/14/97
P5
003. cable
From FB.IS . re: EU Proposes to Amend Copyright Regulations (6
pages)
12112/97
P1/b(1)
COLLECTION:
· . Domestic Policy Council
Ira Magaziner (Electronic Commerce)
OA/Box Number: 13123
FOLDER TITLE:
EU [European Union] [4]
Rhonda Wilson
rw84
RESTRICTION CODES
Presidential Records Act- [44 U.S.C. 2204(a)]
F~eedom
Pl National Security Classified Information [(a)(l) of the PRA]
P2 Relating to the appointment to Federal office [(a)(2) of the PRA]
P3-Release would violate a Federal statute [(a)(3) of the PRA]
P4 Release would disclose trade secrets or confidential commercial or
financial information [(a)(4) of the PRA]
PS Release would disclose confidential advise between the President
and his advisors, or between such advisors [a)(S) of the PRA]
P6 Release would constitute a clearly unwarranted invasion of
personal privacy [(a)(6) of the PRA] ..
b(l) National security classified information [(b)(l) of the FOIA]
b(2) Release would disclose internal personnel rules and practices of
an agency [(b)(2) of the FOIA]
·
b(3) Release would violate a Federal statute [(b)(3) of the FOIA]
b(4) Release would disclose trade secrets or confidential or financial
information [(b)(4) of the FOIA]
b(6) Release would constitute a clearly unwarranted invasion of
personal privacy [(b)(6) of the FOIA]
b(7) Release would disclose information compiied for law enforcement
purposes [(b)(7) of the FOIA]
b(S) Release would disclose information concerning the regulation of
financial institutions [(b)(8) of the FOIA]
.
b(9) Release would disclose geological or geophysical information
concerning wells [(b)(9) of the FOIAJ CLINTON LIBRARY PHOTOCOPY
C. Closed in accordance with restrictions contained in donor's deed
of gift.
.
PRM. Personal record misfile defined in accordance with 44 U.S.C.
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of Information Act- [5 U.S.C. 552(b)]
�J.l.ll4/!l7. Fl(!. li.:H;·FA\ :!02 G47 !1959
14!002 ·.
EUR Elf\ STATE
/l/Jv /q i-~ope the email
and· I don't
is
MESSAGE .TXT
working, but I c~.on' t' trust this to an open line
have time to draft a
cable~
. ''· .
just ~ad a lo~g conv~~sation with Patrick Vittet~Philipp~, a sp
· eci~l
·
1
•
e-commerce/ internet -to V~rrue ·in 'oG XII·. He said the·
adV'iser:o'n
tine up .
ams)ng the member states on the statement is 12.in.favor, Greece,
. Portugal and .
~ ·.
France_ op'posed. ·The first. two are just plain' su_spicious of the i
. nternet
.
becaU:se .they don't· use . it~ They. can be rolled. Franc'e is· the ·re ·
al problem. .
..
.
.
They ha:ve placed a.· "reserve", on· the whole· id,ea of· a. statemen:t. · I
t will take
.·..some real a:rr:n ~wisting to. g~t them to c;ome· alof!.g, but .the. Luxembo
urgers, the .
,
.· _,
.· .
. ·Brits and the Commission are p'ressing forward.
P v~t> suggested,
.·however,
Uiat they may not:
.able ·to prdduce a _fully..,. approved t~xt until·
after' the
November· 24 ..CounciL He app~_gled -for us to give, the' Conimission a
.·. s much i•ripu t ... · . .
, . . · · ,. ·
' · · . ... _ .· .· · . . · , ·· ·· · · · · · · · ·
pn their dz::aft as· po~sible, even :though_ they don't h9-ve m~~b~r
'untry ·
· ··
· · ·.
·.
·
·
·
approval·;it . this'·tim~, so.w,e __ can'··gets.omething done for the·suinnli
t~
That
.· •
·
said, he agreed it. woul(j •. be' better t'o have ·~o statement .. than ,a po
or statement.
.I
-·
::!
.
be
co .
. :In our negotiation~ I . E>. V-i p suggested that we draw ;On Bonn Stateme .·
nt language
whenever possible.· Heobservered that ~o one in.the·EU.could a:i:g
t1e ·. wi.th t~is . · .
.
.
.·. P V-P -also commented on the •. Wilkinson .~atter. , .·He said that ·if, he
· · were in the
.· ·
· · •· · · · . .·
.·· ·
· u .·S. shoes, he woul¢. compiain as' well.· .. He said that Wilkinson to
· 6k on :a task
. ... . .
.
....· .
. that ·no one else fn .'the ·Conunissio~ warit~d -- domairi n~~es· :__ but
,.~:''' i:·__;,; ·~()w. t~Is .·..
..•.... ·_·
?,'.:,.r.:·." .·.: .,.. · .; ·.. · .
...
, ,;~~
1.ss.ue has evolved 1.nto . a matter affect1rtg l.nte·rnet go\rernarice, an
d he should
··
. .
·
·
not be ~l~yin~ the zole he has tak~n dn in IPOG~
i ;. . . . . •·.
. ·. :.: ,_/
Pag·e 1
CLINTONUBRARY PHOTOCOPY
.
�~11/1~/97
12~41
'B'202 t~n i40i
_ ST.HE DEPT - CIP
Friaay
VS·OFFICE
li/14/97.
!ill 002
.·
12:34 pm
,
......
Package subject: · E..:cominerce
Itt;:!m 'ritle: . Message Body.
.
.
.
Hope the' :email is. working; but
have time to draft a cable.:
I
don It trust this to an open line and
I
don't
I ju~t had a· long conversation with. Patrick v.ittet:-Phiiippe,_ aspec:ial
adviperon e-commerce/internet· to Verrue in DG XII. He said the·lin:e up
amori~ the member states on th~ .statement is 12 iri favor; Greece~ Portugal and
Fra:nce opposed. The first two. are just pla-in suspicious of the internet .
because they don't use it . . They can be r'olled. France .is the· real problem.
They .have placed a. 11 reservei' Oil;. the whole idea of a statement. · Jit will t..ake
. E?,Oirie ·.real arm· twisting to g~t' them to. come 9-long, but the Luxembourgers,· the
Bri.ts .arid the Commission- ar'e pressing for\.lard. I?. v;_ p suggested; . however
that. they may riot be ·able. to: produce a fully-approved text -until 'after the
.
Novemb13:r· 24~ Cou.ncil. He appealed for u$· to give the Commission as much input
on their draft as possible eyeri though they don It have member couritry
·.
approval at this. time, .so we. can get something done for the summit. That
said, he agree_d it .would be. better to ha,ve no statement than a poor :S.tatement.
I
1
In.our negot:,iations,. P V-P suggested that we draw on Bonn Statement language ·
possible .. "He obsetvered that no one in the EU could argue with this ..
whenev~r
V-~
co~mented
on the Wilkinson matter; . . He said that if he· were 'in the
he would. complain as well~ ·He said that ·wiikinson took.on a: task
that no one else .in the· Cbmmissiori wanted ~ .,.., domain' .names -- :but now this ·
.·
issue has.' evolv~d into a.matter affecting :i.nte+net qovernance, ari'd he should
npt be pl~ying . the role ·he' ha~ ~aken> on.
;~·POe. . - . . . .·
· .·
\ ...
p
also'
u:·:s~ 'shbes,
in.
Su:r:e hope t!d.s gets ·to you;,.
·· ... ··.·.. ·
'Pleas~ c~nfl.i-m·· :r:ece'ipt ·•
...
:\.
CLINTON LIBRARY PHOTOCOPY .·.·
/
�Withdrawal/Redaction Sheet
Clinton Library
DOCUMENT NO.
AND TYPE
001. memo
DATE
SUBJECTffiTLE
From Drew Quinn to Ira Magaziner and Greg Chang re: Ecommerce/Japan. (4 pages)
03/03/98
RESTRICTION
P5
COLLECTION:
Domestic Policy Council
Magaziner, Ira (Electronic Commerce)
· ONBox Number: 13124 ·
FOLDER TITLE:
Nikkie SymposiumMar,ch 10 [1]
Rhonda Wilson
rw63
RESTRICTION CODES
Presidential Records Act- [44 U.S.C. 2204(a)]
Freedom of Inforination Act- [5 U.S.C. 552(b)]
Pl National Security Classified Information [(a)(l) of the PRA]
P2 Relating to the appointment to Federal office [(a)(2) of the PRA]
P3 Release would violate a Federal statute [(a)(3) of the PRA]
P4 Release would disclose trade secrets or confidential colnmercial or
financial information [(a)(4) of the PRA]
PS Release would disclose confidential advise between the President
and his advisors, or between such advisors [a)(S) of the PRA]
P6 Release would constitute a clearly unwarranted invasion of
personal privacy [(a)(6) of the PRA]
b(l) National security classified information [(b)(l) of the FOIA]
b(2) Release would disclose internal personnel rules and practices of
an agency [(b)(2) of the FOIA]
b(3) Release would violate a Federal statute [(b)(3) of the FOIA]
b(4) Release would disclose trade secrets or confidential or financial
information [(b)(4) of the FOIA]
b(6) Release would constitute a clearly unwarranted invasion of
personal privacy [(b)(6) of the FOIA]
. b(7) Release would disclose inforlnation compiled for law enforcement
purposes [(b)(7) of the FOIA]
b(S) Release would disclose information concerning the regulation of
financial institutions [(b )(8) of the FOIA]
b(9) Release would disclose geological or .ieoplu'~l:l!l ®ormation
, . ,.
concerning wells [(b)(9) of the FOIA~~LIN-1 UN LIBRARY PHOTOCOPY
C. Closed in accordance with restrictions contained in donor's deed
of gift.
PRM. Personal record misfile defined in accordance with 44 U.S.C.
2201(3).
RR. Document will be reviewed upon request.
�.03/03/98
19:00
'0'202 647 0158
EB/CIP RM2533A
TO:
White House -- .Ira Magaziner and Greg
Chang
(c/o Drew Weinschenk)
FROM:
Tokyo -- Drew Quinn
SUBJECT:
E-commerce/Japan:
141002/005
[Drew:
Please
~et
this to
March 3 status report
G~eg.
Thanks.
-DQ)
Nikkei symposium (for Greg)
1. The-Washington-Chicago leg of Ira's outbound trip offer~
only First· and Economy class seats, and Ira is automatically·
upgraded as a bonus for buying a Business Class transpacific
flight. The ticket will read 11 First Class" for Washington
thic~go, ~ecause B~siness Class is not available on that
flight.
Is that okay, or would Ira feel better with an
Economy seat for that (90 minute or so) flight?
2. Ticketing arr'angements a:re complicated but manageable.
The drawback is that only Ira .;.;_ not you, .or Nikkei staff in
DC -- can pick the ticket up from United. -He could either
do that at the United .office at .16th and K Streets, ·or at
th~ airport just prior to departure .. Let me know hi~
preference so American Express knows where to
{electronidally) send the ticket.
3. In,terpreter -- the Ambassador will provide his (Mrs.
Gregg) for Ira's use Monday so that this is a no-expense
trip.· Obviously the Nikkei provides-interpretation at the
symposium and their dinner on the lOth.
4. -Vice President's videotape. I've already told the
.Nikkei that because of the VP' s busy schedule, it looks.
highly unlikely that he-' 11 get to prepare a videotaped
message. Can I convey that to them officially? They have·
programs to ~ririt,- etc, and I'd like to give them ~ufficient
lead time to delete -any references that might embarrass
them.
Bilcits with GOJ (for Ira),
5. Some il1 MIT! still think ·you ·might opt to bring some USG
people along for a fuller discussion next Monday. r.:·haven't
heard. any reference to an accompanying delegation, and ..
assume plans to have Don Abelson or Andy Pincus come along
fell through when it became. clear we wouldn't be aiming to
wrap· this up by March 10. If that's true,• can I tell the
GOJ? . I think MIT! might .be rushing their counter-draft
through the cleai"ance process so you can receive it Friday
and decide.who to bring with.you on Saturday (that's how
they'd operate). I'd rather be candid with them if it looks
like you' llbe coming alone no matter what>:.- though I '11 of
cour~e still stress the.benefit of gettin§their draft to
you in time for you to discuss it with various inter-agency
players before leaving Washirigton ·
. CLINTON LIBRARY PHOTOCOPY
�.03/03/98
19:01
'0'202 647
015~
· E13/CI P
R~!2533A
141003/005
6. Timing of announcement. Yo~ saw (I hope) the cable we
sent in on our meeting (ECon Minister LarryGreenwood arid
::;
�,03/03/98
19:01
'0'202 647 0158
141 004/005.
EB/CIP RM2533A _
me) with Kondo last w~ek, .in which he expressed doubt about
reaching· agreement on a joint statement ·until the summer.
That, and an indire~t reference we picked~p s~cond-hand
later in the week, raised concerns I mentioned to Greg
Friday that MOFA was not pushing this· very aggressively ..
That was what led me to suggest that you might consider
calling in the Japanese Embassy Econ Minister to express
int~rest in moving forward rapidly on this (without putting
Kondo in a difficult position by referring directly to his
comments),· as well as to emphasize what a bilateral "win"
this could be.
Now-it appears that our concern might have been unw~rranted
(or, more likely, Kondo's inter-agency colleagues are
leaning on him to pick up the pace) . Larry was in a meeting
with MITI's Nakagawa yesteiday, who said it would be ideal
to reach an agreement in March. When Larry referred
vaguelly to the notion of consulting with ASEAN countries,
Nakagaw~ basically dismissed that.
Today I spoke with Okada
at MITI and he said there was inter-agency agreement that
this must occur at the latest by·the Birmingham G-8 summit,
or sooner if there was ar1 appropriate·occasion. Okada and
his bqss MITI birGen·Hirose spoke about e-commerce last week
to the.Chief Cabinet Councillor for Internal Affairs
.Takeshima (the seni6r offici~l in the Prime Minister'~
'Offi6e coordinating the study group's eff6rts), and he was
·_.reportedly· excited about the issue and particularly· about
_reaching agreement on a joint statement by May.
If your schedule p~rmits, there would be no harm in
the Japan~se Econ Minister in Washington to
update him on the joini stat~ment and our preferred timing
for releasing it; but it seems the urgency has gone out of
it. On your way out here, you might want to give some
·thought to what events between next week .and the G-8 summit
on May 15 might be appropriate target dates for announcement
·uf~the joint statement (Okada dismissed the Quad meeting,
and wondered aloud about the OECD Ministerial) .
~ontacting
GOJ counterdraft. MOFA has basically delegated to MITI
c6ordination of an inter-agency po~ition on this, and
.Okada let me look at the (Japanese language) draft he's
turr~ntly negotiating with other agencies (please d6n't
repeat that).
It seems the majbr sticking point is tariffs:
the Customs Division has rejected MITI's language and come
back with a sentence saying, as I recall "The US ~nd Japan
believe economies should continue, in the case of software
on a carrier medium transmitted electronically, to respect
the WTO customs valuation decision. 11 Legally correct, I
guess, .·but hardly inspirational.
On other issues:
·
taxation: MOF has basically told MIT! that it will
handle the issue of taxation directly with Treasury ( I
U:nders·t:and Treasury. is briefing you on these discussions);
7;
'th~
... ·.
'•.
CLINTON .LIBRARY PHOTOCOPY .
�• 03/03/98
19:02
'0'202 6.47. 0158
EB/CIP
[4J 005/005
R~!2533A
authentication/electronic signatures (for the first
time, the GOJ s~id it prefers the broader term of
"electronic" rather than "digital 11 signatures): the GOJ
has deleted references to an international convention.
They
(MOJ and MPT) have also put in a· ~entence about ~respecting
each countryis system" which is intended to refer to MOJ's
desire to develop its business register system into a .
government-created but not mandated or exclusive certifying
authority .
seems to be mostly the same, but only half of
. privacy:
MPT has blessed the MITI language.
From my cursory glimpse at the text, it seemed that the
other issues were largely the same or amended as you a~reed
to in Tokyo, e.g., adding.a refe~enc~ to trademarks to the
IPR sentence, adding a few references to APEC, combining the
,;agreed actions;, and "guidelines" sections of the statement.
The Japanese have also added a sentence to the end of the
section on contents which I couldn't make out, but Okada
said it· didri't materially change the thrust of the
reference.
MITI's goal is to_ get their re-draft to you by Thursday
dr Friday, but that might be over-optimistic; I'll let
you know as the situation evolve~.
CLINTON UBRARY PHOTOCOPY
�.
\'
.
. '·...
•
\1·'
'
' )•
Withdrawal/Redaction Sheet
Clinton Library
DOCUMENT NO .
. ANDTYPE
001. memo
DATE
SUBJECTffiTLE
From Thomas A. Marten to John X. Medeiros, et a! re: E-Commerce
meeting in Washington (2 pages)
05/06/98
RESTRICTION
P5
COLLECTION:
Domestic Policy Council
Magaziner, Ira (Electronic Commerce)
OA/Box Number: 13124
FOLDER TITLE:
Meeting with French OfficialsS/27/98
Rhonda Wilson
rw67
RESTRICTION CODES
Presidential Records Act- [44 U.S.C. 2204(a)]
Freedom of Information Act- [5 U.S.C. 552(b)]
Pl National Security Classified Information [(a)(l) of tbe PRA] ·
P2 Relating to tbe appointment to Federal office [(a)(2) of the PRA]
P3 Release would violate a Federal statute [(a)(3) of the PRA]
P4 Release would disclose trade secrets or confidential commercial or
· financial information [(a)(4) of the PRA]
PS Release would disclose confidential advise between the President
and his advisors, or between such advisors [a)(S) of tbe PRA]
P6 Release would constitute a clearly unwarranted invasion of
personal privacy [(a)(6) of the PRA]
b(l) National security classified information [(b)(l) of the FOIA].
b(2) Release would disclose internal personnel rules and practices of
an agency [(b)(2) of tbe FOIA]
b(3) Release would violate a Federal statute [(b)(3) of the FOIA]
b(4) Release would disclose trade secrets or confidential or financial
information [(b)(4) of tbe FOIA]
b(6) Release would constitute a clearly unwarranted invasion of
personal privacy [(b)(6) of tbe FOIA]
.
b(7) Release would disclose information compiled for law enforcement
purposes [(b)(7) of tbe FOIA]
b(S) Release would disclose information concerning tbe regulation of
financial institutions [(b )(8) of tbe FOIA]
b(9) Release would disclose geological or geophysical information
concerning wells [(b)(9) oftbe FOIAbJNTON LIBRARY PHOTOCOPY
C. Closed in accordance with restrictions contained iii donor's deed
ofgift.
.
.
PRM. Personal record misfile defined in accordance witb 44 U.S.C.
2201(3).
RR. Document will be reviewed upon request. ·
�John X Meueir-os@:GCON®Pl\RIS EMBA
. :o .
:c: :
D~boro.h ~ McCarthy~F.CON@~~IS_EMBA
Peter F Secor@ECON®PARIS BMDA
Bee:
From;
SubjP.C":t:
· Dat.e:
Attach:
r.ertify:
F01:wardcd by:
----------~
Richi::iLd A Albright@ECON<iiiPA'RTS_EMBA.
Gtuart A Dwyer®ECON®PARIS EMBA
Mir.hael J Adlt:!L®EXEC®PARIS EMBA
Mlchael :C rarmly®POL®PJ:I.RIS-EMbA .
.
·
.
VSMail®Mai l@Gat:eway[(ANDREW-J WEINSCHENK) {1 .4061.'189.1462}]
V::>Mail@l"li::ill@Go.tewo.y [ {J,AME:S . WQ,TTASlt:WICZ) . {1. 4101.1176.1636}]
VSMail@Mail@Gatewny[(HARRY R SULLIVAN) {1.1060.689.806}) .
Colin S. H.elmer®ECE®BRUSO EMBC
Tho.nti::lS H Goldbcrger@FIN@PARIS_t:MBA
Thomas H Golciberger(g}FIN®PARIS EHDI3
'Thomas A Mal·Lt:n@ECON®I'ARIS EMBA
!::!-commerce meetin'] jn washington
Hednesday, May 6, 1998 1.3:59:43 LOC
.
N
---------------------~~-------
.
·----------------~-------------
john,
i 'tn not sure how much .of Lhis came through on t.he voice ma.ll i left you from
wa.Ahingtcin monU.ay night.
juot·in case the messaql::! wae garbled, here's~ summarY of Lhe u.s.-france
~-commerce ml::!eting monday S/4 at t.he white ho4~e. the meeting ran from ~ am
tu 12 noon o.nd wasz followed by luw.;h hosted by magaziner at the hay i:ldams
hotel.
u.s. side: ira magt>ziner. andy pincus {general counsP.t, commerce), jennifer
conovits (commerce lcJ.wyer) 1 don abc:~lsbn · (11~trl 1 mike muynihan (treasury,
special a:=~t:~istant to larry smnmP.rs), · ed mal loy (state, eb/cip), mP..
·
french sirlP.:
franci~ lorentz, gilles bauche {tresor), emmanuel glimet
(dreel, ll::!"-n-francoio boittin (trench emba::H:i}' ·in waehington; econ m/c), brunu
j actel (french emba!';gy. econ cuuflselor) ·
·
on· substtlnce:
bot..h sides tabled draft declaration~; the french te~t was very short ~nd
general, the u.s. text was lengthy·and tlddre3sed ~11 the subs::t.antive is!:Sut:s.
we worked through the t:WO tl::!xt5 and o.greed on thF.l tollowing:
.
.
--·the declaration.will in~lude two secLions; one section on nsocial"
:such ae: internet. and educaL.i.on; internet and devP.loping counL.des i .intc:::ple1t"<:i':';\'
and research; · .·
·
elect ·
·
·-'· · ;·' ~- ·-.~;:.~ <..:_:~.\~.-·. ~- ~~ ·err::;:t::~v~~~~~t~~i0'·:\ :,>\f.'A{;7~~fi;!:::;;::.;~,z:';;;z·;;,(;¥§ii~d~."~-Jfiif/!y~f~'·':~Y;
· ·•· · . . . . . . . .,.
�m ·d
'li:JlOl
·- notably missinq (L-uLu this list (but included in the oriQinaJ 11.:::;. draft)
privacy, cyb~r each/ elactronic paym.ent.~, and domain names.
Lll~ privacy
Leeue may resurface; see below.
:t.L c::
in terms of
proc~s~:
-- the [.r:t::nch (lorentz) will prepare a third draft, based on the Lwo papers
tabled in washinQton, and reflecc.1nq our· ul::;cuBsion, and po.oo to us no later.
th~n riex'C. monday 5/11. there will probably be considerahlR toing and fro1nq
· ov~.r: the riext three weeks on itera~ions of the paper.
we will host
d
second and final round of talkR hRre in paris in ear·ly june
probably iune 6-7, but exact dotcc tbd.
to finalize the joint statRmRnt.
in th~ interim, the french will send t.wo "technical" t.eaml;l Lo. washington.
the first will be a -ciRlegation of frenc..:h lawyers (probo.bly isabelle falquR
pi Rrrotinl t.o meet wlth commerce l.:otwyere and discu8A t:he "mutual recoqni L.i.ur1
d.!Jfll·vach," i. c. how to create i'ln interface between Llrc::: u.s.· industry celf
re~ulation · p;>!radigm and the h:eHc.:h/ european government regulation pn.radigm in
su;~h areas d8 pl·ivacy, conoumer protection, cii.gital signatures, ~Lt.:.
.
.
.
thP. second "technic..:d.l" tean:t will conciet of· j·ospin 1 8 i.nto c.ecli. advisor·
no~l L.r:oric who will travel to. thE! u.B. with domin"ique st:.c:duss kahn .in lo.tc
mu.y; when· strauss lc:;hn goes to s1licou vdlley for hia private visit tronr:
w:ill head to washin~Lon and meet with magaziner and -3 cielegat::i.on t:.o inclu<.lt=
deya:rtment of education, whit~ hou~P. office of scienc~ o.nd technology policy
{oe:tp) and stat.A/a.id to discuss th~ "social iesucs 11 cection of the
declaration.
teut.:.ative date for this meetineJ is may 27-~~.
on
atmospherjr:~:
the meeting got off to? ror:ky start; ·lorentz~~ upening position was that
joepin could only address ngeneriil principles 11 in a joint statE!ment.
discussing speci£lc issues would be below his pay grade.
the u.s. ~ide was
frustrated with this; but lorFrntz quiCkly fell o(I of this position;· after
this awkwarn heginning the meeLlng was very buoineee like. we juggled a
couple loaded .issues, particularly the 11 culturo:~l. content" issue.
Llle u.s.
position wac eupportive of P.ttorts to promote ulverieity {to include
subsidies tor content indu~LLles), but hard against protectionism.
i thinke
we 1 ll end uy with ju::;,t the first half of tho:~t: position in t.he [lnal
declaro.tion.
the lunch wo:~s very warm and ru~~y; it included all the french
deleeJat~?-!=1 plus just maqazluer and me from the u.s. sida.
in a couple asideS~, lon=mt.z said t.hat st.raut~ti-kahn: would.onnounce
implementation of loient~ .r:eport e-commerce recommendation~ today (5/6) to
include .Cu.r:mally naming lorentz the e~cnmmerce czar.
i ' l l c.::he~k. the preoo
tomorrow. he also .sair:l the u.s. non-pa.p~L on authentification and digit-.~ I.
signat.llres (passed la~L week. by david aaron to lorent.'7. t:~nd christ.ian pient::t).,;
appea"I·~d to contrO,~i.ct the upcoming· P.ll direcT:ive on di~"lLa.l signaturco, at
· ·
lea.:;t with resp~ct ,t:() q~rtific(;l.te auLhorities.
there ~as a lot of t.oi ng
froi ng. on. T:his .1 ····
· · · · ··
\commerce argued that the· ~u commls ··
was ok.ay with. ··
·. .· · fered to come up with ·· · ·
that both sides·
· · : · (the· :subato.ntive issue'
E.dmilar to the n
-~\le . -:-- althn11gh commerce·~
cmtext .·.:.·the europed.ns would
:;·ce . .· c te authori t
.J ·.
t!',;i; ?:<~;'})'i''\;<;f;t•;i;!,;;<;~{:£Jfi~~r(;!;{
· 9r
that 1 s
tom
�Withdrawal/Redaction Sheet
Clinton Library
DOCUMENT NO.
AND TYPE
001. cable
DATE
SUBJECTfi'ITLE
From AmEmbassy London re: Internet Issues (2 pages)
07114/98
RESTRICTION
P5
COLLECTION:
Clinton Presidential Records
Domestic Policy Council
Ira Magaziner (Electronic Commerce)
ONBox Number: 13124
FOLDER TITLE:
CFR [Council on Foreign Relations] Chatham House Conf. June 22 •
Rhonda Wilson
rw131
RESTRICTION CODES
Presidential Records Act- [44 U.S.C. 2204(a)]
Freedom of Information Act- [5 U.S.C. 552(b)]
Pl National Security Classified Information [(a)(l) of the PRA]
P2 Relating to the appointment to Federal office [(a)(2) of the PRA]
P3 Release would Violate a Federal statute [(a)(3) of the PRA]
P4 Release would disclose trade secrets or confidentilit commercial or
financial information [(a)(4) of the PRA]
PS Release wol!ld disclose confidential advise between the President
and his advisors, or between such advisors [a)(S) of the PRA]
P6 Release ·would constitute a clearly unwarranted invasion of
. personal privacy [(a)(6) of the PRA]
b(l) National security classified information [(b)(l) of the FOIA] ·
b(2) Release would disclose internal personnel rules and practices of
an agency [(b)(2) of the FOIA]
b(3) Release would violate a Federal statute [(b)(3) of the FOIA]
b(4) Release would disclose trade secrets or confidential or financial
illformation [(b)(4) of the FOIA]
b(6) Release would constitute a clearly unwarranted invasion of
personal privacy [(b)(6) of the FOIA]
b(7) Release would disclose information compiled for law enforcement
purposes [(b )(7) of the FOIA]
b(S) Release would disclose information concerning the regulation of
financial institutions [(b )(8) of the FOIA]
b(9) Release would disclose geological or geop!!}'sical information
.
concerning wells [(b)(9) of the FOL{JLINTOI\l LIBRARY PHOTOCOPY
C. Closed in ac~ordance with restrictions contained in donor's deed
of gift.
PRM. Personal record misfile defmed in accordance witli 44 U.S.C.
2201(3).
RR. Document will be reviewed upon request.
�07114/98
_.:.·
'5'202 647 0158
16:29
EBICIP RM2533A
- ....
UNCLASSIFIED
Printed By: Jeffery E. Zinsmeister
ACTION EUR- Ol
. !
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AMAD-Ol CIAE-00 CIP-00
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TEDE-00 INR-00
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STR-00
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--------"---------53El48 140912Z /38
R l40B46Z JUL 98
·FM AMEMBASSY LONDON
TO SECSTATE WASHDC 7715
INFO ALL EUROPEAN UNION POST COLLECTIVE
. USDOC WASHDC
WHITEHOUSE WASHDC
INFO
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JUSE-00
TRSE-00
UNCLAS E F T 0 SECTION 01 OF 02 LONDON 007155
USDOC FOR NTIA/LIRVING/BBURR
USDOC FOR 6300/ITA/TD/RLAYTON
WH FOR POLICY/MAGAZINER
PARIS ALSO FOR USOECD
SENSITIVE
NOFORN
E.O. 12958: N/A
TAGS: EINT, ECPS, ETRD, EUN, UK
SUBJECT: INTERNET'ISSUES
UNCLASSIFIED
LONDON
REF:
Ol OF 02
;7155
LONDON 636i
1.
(U)
SENSITIVE BUT UNCLASSIFIED; NOT FOR DISTRIBUTION OVER
THE INTERNET.
2.· (U) DURING A,ONE-DAY STOP TO SPEAK AT A JUNE 23
CONFERENCE ON ELECTRONIC COMMERCE IN LONDON, SENIOR WHITE
HOUSE ADVISOR IRAiMAGAZINER CONSULTED ON INTERNET POLICY WITH
·DTI COMMUNICATIONS AND INFORMATION INDUSTRY DIRECTOR BILL
MACINTYRE.
IN A .CONVERSATION WHICH COVERED THE BANGEMANN
"CHARTER," THE USG INTERNET DOMAIN NAME SYSTEM PROPOSAL, DATA
PRIVACY AND ELECTRONIC SIGNATURES, DTI STAFF HIGHLIGHT·ED THE
FACT THA'I' THE EUROPEAN COMMISSION WILL SUBJECT THE PRIVATIZED
INTERNET DOMAIN NAME SYSTEM TO ANTI-TRUST REVIEW, ONCE IT IS
I
ESTABLISHED.
-----~----------~~------------------------------------
KEEPING BANGEMANN'iS "CHARTER" AIMED AT CONCRETE ISSUES
----------------~~J--------~--------------------------3.
(SBU)
CONFIRMED (SEE REFTEL) THAT HMG IS STILL .
REGARDING THE PROPOSAL -;. OR EVEN WHAT .
..
THE. SPRING 1999 CON~ERENCE IN VIENNA. • HE · .·· ·
DESI<:nU~TI:ON ~.UI!lFl:>R~~qA~rE" ·SINCE
141006/016
�07/14/98
16:30
'8202 64 7 0158
EB/CIP RM2533A
UNCLASSIFIED
Printed By: Jeffery E. Zinsmeister
PARTICIPATION HADN'T BEEN RULED .OUT, THE USG DOES NOT ATTACH A
GREAT DEAL OF IMPORTANCE TO THE CHARTER.
DG-IV WILL MAKE ANTITRUST DETERMINATION ON
DN~
CORPORATION
4.
(SBU} MACINTYRE THANKED THE USG FOR ALL THAT IT HAD DONE
TO ADDRESS EU CONCERNS REGARDING THE DOMAIN NAME SYSTEM (DNS)
PROPOSAL. INTERNATIONAL .POLICY CHIEF NEIL FEINSON POINTED OUT
·.1:
.
THAT THE INTERNATIONAL NON-PROFIT CORPORATION SET UP TO
I I
ADMINISTER THE DNS WOULD BE SUBJECTED TO EX POST FACTO
SCRUTINY BY DG-!'.T; (COMPETITION POLICY) OF THE EUROPEAN
COMMISSION. FEINSON-EXPLAINED THAT ONCE THE COMPANY WAS
ESTABLISHED IT WOULD NEED TO FILE A "NOTIFICATION" WITH DG-IV.
THE COMMISSION CAN THEN EITHER GRANT APPROVAL/CONSENT OR, IF
:IT DETERMINES THAT THE CORPORATION FALLS OUTSIDE THE BOUNDS OF
ARTICLE 85 OF THE TREATY OF ROME, DECLARE IT EXEMPT.
MAGAZINER RESPONDED THAT THE JUSTICE DEPARTMENT IS ALREADY
CONSULTING WITH DG-IV. HE ADDED THAT WHILE A REVIEW OF THE
.CORPORATION IN TERMS OF ITS STRUCTURE IS ALTOGETHER
APPROPRIATE, ·THE USG WOULD HAVE A MAJOR OBJECTION IF THE DG-IV
REVIEW BECAME POLITICIZED.
DATA PRIVACY
5.
(SBU). MAGAZINER BRIEFED MACINTYRE ON USG EFFORTS TO MEET
.THE PRIVACY OBJECTIVES SET OUT IN THE JULY 1997 FRAMEWORK FOR
GLOBAL.ELECTRONIC.COMMERCE. HE NOTED THAT COMPANIES
R.EPRES.ENTING· OVER 80 PERCENT OF ONLINE .ACTIVITY HAD JUST
ANNOUNCED AN ALLIANCE TO INSTITUTE BETTER PRIVACY PROTECTIONS.
HE EXPLAINED THAT; FOLLOWING THE JUNE 22 USDOC PRIVACY
"SUMMIT" WITH THE[PRIVATE SECTOR, THE USG OBJECTIVE IS TO HAVE
A SYSTEM OF ONLI~E PRIVACY PROTECTION IN PLACE BY AUGUST. THE
FTC.MAY SUBSEQUENTLY BE GIVEN AUTHORITY TO ENFORCE OECD
PRIVACY GUIDELINES, POSSIBLY WITH A PRESUMED EXEMPTION FOR
ONLINE PRIVACY ALLIANCE MEMBERS. IN RESPONSE TO FEINSON'S
INQUIRY AS TO WHAT SANCTIONS MIGHT BACK UP THE PROTECTIONS,
·· MAGAZINER STATEI11THAT THE "SEAL" WOULD BE REVOKED, AND. IN THE
SECOND INSTANCE,' THE FTC COULD INVOKE EXISTING ANTI-FRAUD
.MEASURES.
• ! .
.
.
_
.
!!
:l
----------------------ELECTRONIC TRANSACTIONS
6.
(U) MAGAZINER ASKED FOR THE UK'S LATEST THINKING ON THE
U.S. CONVENTION PROPOSAL FOR ELECTRONIC TRANSACTIONS AND
LONDON.
REF:
02 OF 02
7155
LONDON 6361
.EXPRESSED CONCERN:THAT SYSTEMS LINKED TOO CLOSELY TO A
PARTICULAR
WOULD BECOME DE FACTO MANDATORY BEFORE
·. WE HAVE
@ 007/016
�Withdrawal/Redaction Sheet
Clinton Library
DOCUMENT NO.
AND TYPE
001. cable
SUBJECTffiTLE .
DATE
From AmEm_bassy Paris re: OECD: Ottawa Ministerial (5 pages)
06110/98
RESTRICTION
~P5
. COLLECTION:
Clinton Presidential Records
Domestic Policy Council
Ira Magaziner (Electronic Commerce)
OA/Box Number: 13124
FOLDER TITLE:
OECD [Organization for Economic Cooperation and Development] Sec. General June
29,1998
Rhonda Wilson
rw132
RESTRICTION CODES
Presidential Records Act- [44 U.S.C. 2204(a)]
Freedom of Information Act- [5 U.S.C. 552(b)]
PI
P2
P3
P4
b(l) National security classified information [(b)(l) of the FOIA]
b(2) Release would disclose internal personnel rules and practices of
an agency [(b)(2) of the FOIA]
b(3) Release would violate a Federal statute [(b)(3) of the FOIA]
b(4) Release would disclose trade secrets or confidential or fmancial
information [(b)(4) of the FOIA]
b(6) Release would constitute a clearly unwarranted invasion of
·
personal privacy [(b)(6) of the FOIA]
b(7) Release would disclose information compiled for law enforcement
purposes [(b)(7) of the FOIA]
b(S) Release would disclose information concerning the regulation of
financial institutions [(b)(S) of the FOIA]
b(9) Release would disclose geological or geophysical information
concerning wells [(b)(9) of the F014jUNTON LIBRARY PHOTOCOPY
National Security Classified Information [(a)(l) of the PRA]
Relating to the appointment to Federal office [(a)(2) of the PRA]
Release would violate a Federal statute [(a)(3) of the PRA]
Release would disclose trade secrets or confidential commercial or
fmancial information [(a)(4) of the PRA]
PS Release would disclose confidential advise between the President
and his advisors, or between such advisors [a)(S) of the PRA]
P6 Release woUld constitute a clearly unwarranted invasion of
personal privacy [(a)(6) of the PRA]
C. Closed in accordance with restrictions contained in donor's deed
of gift.
PRM. Personal record misfile defined in accordance with 44 U.S.C.
2201(3)..
RR. Document will be reviewed upon request.
�USDOC WASHDC ;.•:· ·~· >, ., ..
»!EMBASSY OTTAWA
.
DEPARTMENT OF TREASURY WASHDC
'DEPARTMENT OF JUSTICE WASHDC
· USEU BRUSSELS
FCC WASHDC
OECD POSTS COLLECTIVE
UNCLAS SECTION 01 OF 04 PARIS 012835
FROM USOECD
TREASURY FOR.DO/XLI/GUTTENTAG
STATE FOR CIP/BEAIRD/MCCABE, EUR/ERA
STATE PASS USTR'FOR PAOLETTA
STATE PASS FTC FOR DMEDINE AND JROTHSCHILD
USDOC FOR NTIA/'BURR AND NTIA/SSETTLE
.
USDOC FOR 6330/ITA/TD/TAI/BWELLBERY AND DPRIESTLY
USDOC FOR 6710/ITA/OSI/CANDILIS
USDOC FOR 4122/IEP/OMA/MORGAN/SEVER
USDOC FOR 3133/USFCS/OIO/BUCHER
PASS TO FCC FOR ARBOGAST
SENSITIVE
NOFORN
E.O. 1298: N/A
TAGS: ETRD, ECPS, KSCA, OECD
SUBJECT: OECD: OTTAWA MINISTERIAL - THE "BRETTON WOODS
OF E-COMMERCE?"; A DELEGATION REPORT
PARIS
01 OF 04
12835
1,
(U) BEGIN SUNMA.~Y. ON MAY 20, THE OECD HELD ITS
FIRST STEERING COMMITTEE (SC) MEETING FOR THE OCTOBER
7-9, 1998 E-COMMERCE MINISTERIAL. THE SC AGRE.ED TO
STREAMLINE THE DOCUMENTS FOR THE MINISTERIAL AND
IDENTIFIED OECD-DEVELOPED "HA.'l.D" DELIVERABLE$ IN TH?
FOLLOWING AREAS: TAXATION FRAMEWORK CONDITIONS, A
STATEMENT REAFFI~~ING THE OECD PRIVACY GUIDELINES,
CONSUMER PROTECTION GUIDELINES, AND AN AUTHENTICATION
DECLARATION. IN ADDITION, THE SC WILL REVIEW.AN ACTION
PLAN OR "ROADMAP"--DR.AFTED BY THE OECD SECRETARIAT,
INTERNATIONAL ORGANIZATIONS AND PRIVATE INDUSTRY--THAT
WILL HIGHLIGHT CURRENT AND PLANNED E-COMMERCE ACTIVITIES
BY GOVERNHENT, INDUSTRY AND INTERNATIONAL
· .. ORGANIZATIONS. BUS!NESS REPRESENTATIVES MADE A VERY
STRONG PITCH TO PARTICIPATE IN THE PREPARATIONS OF THESE
DELIVERABLE$ AND IN THE MINISTERIAL ITSELF. THE
CANADIANS ARE KEEN TO MAKE THE OTTAWA MINISTERIAL .A
"MILESTONE" IN E-COMMERCE ACTIVITIES, AND INDEED THE
CANADIAN SECRETARY GENERAL OF THE OECD HAS REPORTEDLY
REFERRED TO THE MINISTERIAL AS THE "BRETTON WOODS OF
E-COMMERCE." END SU!-lMA.'l.Y .
UNCLASSIFIED
.1
CLINTON LIBRARY PHOTOCOPY
�s;
VISJKAJ"•..
. · ·
·THE o;sG cLARIFIED·.··
.
. . SECRE':l'ARIAT COMMITTEES WILL CONTINt.JE TO BE RESPONSIBLE '
FOR FINALIZING THEIR REPORTS (DELIVERABLES) FOR THE
. MiNISTERIAL· AND THAT THE SC WOULD BE RESPONSIBLE FOR
AI?I?ROVING THE ACTION I?LAN/ROADMAI?. THE D/SG SAID THAT
~E SC WILL BE KEY TO WORKING WITH THE SECRETARIAT,
MEMBER COUNTRIES AND PRIVATE SECTOR ON THE AGENDA,
·coMMUNIQUE AND ACTION !?LAN/ROAD MAP.
3.
(U) MICHELLE D'AURAY, EXECUTIVE DIRECTOR OF THE
CANADIAN GOVERNMENT'S E-COMMERCE TASK FORCE, WAS ELECTED
TO THE CHAIR OF THE STEERING COMMITTEE (SC) . SHE WAS
THE ONLY CANDIDATE·.
STREAMLINED DOCUMENTATION
------------------------4.
(U) IN RESPONSE TO NUMEROUS INTERVENTIONS, THE SC
.AGREED THAT THE' SECRETARIAT WILL STREAMLINE THE NUMBER
OF DOCUMENTS FOR THE MINISTERIAL AND REVISE THE TEXTS SO
THAT THEY ARE CONSISTENT WITH THE THEMES IN THE
"CANADIAN BLUEPRINT" DOCUMENT. THE "BLUEPRINT," WHICH
WAS ORIGINALLY A ROOM DOCUMENT, WAS APPROVED BY THE SC
AND CONTAINS 3 THEMES:
"BUILDING TRUST FOR USERS AND CONSUMERS"
"ESTABLISHING GROUND RULES FOR THE DIGITAL
MARKETPLACE"
"ENHANCING THE INFORMATION INFRASTRUCTURE FOR
ELECTRONIC CO~~ERCE"
OECD SECRETARIAT DELIVERABLE$
----------------------------s·.. (U) THERE WILL BE FOUR "VERTICAL" DELIVERABLES
PREPARED BY THE OECD SECRETARIAT:
PARIS
02 OF 04
12835
TAXATION FRAMEWORK CONDITIONS: DAFFE-FA IS
RESPONSIBLE FOR THIS DELIVERABLE WHICH .WILL BE PREPARED
BY THE COMMITTEE 0~ FISCAL AFFAIRS AFTER CONSULTATION
WITH PRIVATE SECTOR REPRESENTATIVES.
PRIVACY: THERE WILL BE A STATEMENT REAFFIRMING THE
PRINCIPLES &~D THE APPLICABI4ITY OF THE 1980 OECD
GUIDELINES ON PRIVACY, WHICH OECD SECRETARIAT STAFF
(JOHN DRYDEN /ICCP) SAID SOME CONSIDER TO BE A "FLAGSHIP
OF THE OECD." USG DELEGATION CO-CHAIR BARBARA WELLBERY
IS ON THE AD HOC COMMITTEE RESPONSIBLE FOR DRAFTING THIS
STATEMENT. DURING THEIR.S/18-19 MEETING, THE GROUP OF
EXPERTS ON INFO~TION SECURITY AND PRIVACY DECIDED
AGAINST DRAFTING.A "SUPPLEMENTAL" TO THE GUIDELINES,
CONCLUDING .TP~T IT COULD UNDERMINE THE 1980 GUIDELINES
WHICH THE EXPERTS CONCLUDED WERE STILL VALID.
UNCLASSIFIED
2·
CLINTON LIBRARY PHOTOCOPY.
�.
. THREE, .
.·THE SECRETARIAT ,
CANADA--AS HOST, INTERNATIONAL.ORGANIZATIONS AND PRIVATE
INDUSTRY. WILL DRAFT. THE STEERING COMMITTEE WILL THEN · .
REVIEW THESE DELIVERABLES BEFORE FORWARDING THEM ON TO
COUNCIL.
THE AGENDA FOR THE MINISTERIAL;
AN "ACTION PLAN/ROADMAP" OF THE CURRENT WORK
UNDERWAY TO "DISMANTLE SOME OF THE BARRIERS CONFRONTING
E-COMMERCE AS WELL AS AREAS FOR FUTURE WORK." THIS WILL
BE A THREE PART DOCUMENT. THE FIRST PART WILL FOCUS ON
ACTIVITIES WITHIN THE.COMPETENCY OF THE OECD AND BE MORE
PRESCRIPTIVE; THE SECOND PART WILL BE AN INVENTORY-ONLY
OF ONGOING ACTIVITIES OUTSIDE THE OECD AND BE LESS
DIRECTIVE; AND THE LAST PART WILL FOCUS ON .INDUSTRY
ACTIVITIES.
~-
A COMMUNIQUE OR STATEMENT;
PARTICIPATION IN THE MINISTERIAL:
--------------------------------(U) INTERNATIONAL ORGANIZATIONS
7~
WILL BE INVITED
INCLUDING WIPO, UNCITRAL, WTO, . ITU, UNCTAD AND WORLD
CUSTOMS UNION WHO, ACCORDING TO THE CANADIAN DELEGATION
TO THE OECD, "WILL PLAY A MAJOR ROLE ON THE PANELS AND
WILL BE RESPONSIBLE FOR DRAFTING THE SECTION OF THE
ACTION PLAN ADDRESSING "INTERNATIONAL ACTIVITIES AND
INITIATIVES."
PRIVATE INDUSTRY:
8.
(U) THE BUSINESS INDUSTRY ADVISORY COMMITTEE (BIAC)
MADE A VERY STRONG PRESENTATION .TO THE SC, ENDORSING THE
CONCEPT OF.THE OTTAWA MINISTERIAL BEING THE "BRETTON
W()ODS" OF E-COMMERCE. REFERENCING .THE D/SG'S INVITATION
TO INDUSTRY TO PLAY A "PRODUCTIVE ROLE," BIAC·PROPOSED
THAT INDUSTRY PARTICIPATE IN JOINT TASK FORCES OR
PARIS
03 OF 04
12835
WORKING GROUPS IN THE FOUR DELIVERABLES AND ACTION PLAN
AREAS. THE BIAC REP SAID THAT THIS WOULD ENABLE
INDUSTRY TO "STOP MAKING THE SAME PITCH" TO NUMEROUS
INTERNATIONAL TRADE ORGANIZATIONS AROUND THE WORLD AND
TO INCREASE THE CHANCES OF A·"GLOBAL BUY IN" BY
INDUSTRY.
(COMMENT: IN FOLLOW-UP DISCUSSIONS WITH
BIAC, USG DELEGATION CO-CHAIR LEARNED THAT BIAC'S
SUGGESTIONS HAD NOT BEEN TAKEN AND THAT BIAC IS NOT
PLEASED. WELLBERY ADVISED USOECD THAT SHE IS WORKING TO
HAVE INDUSTRY PLAY A STRONGER ROLE IN THE MINISTERIAL
PREPARATIONS. END COMMENT)
UNCLASSIFIED
3
CLINTON LIBRARY PHOTOCOPY '
�l"'l!it~»IO;K.:;>· WILL BE PERMITTE[LTC)
Q'S AND A'S, BUT CANNOT MAKE STATEMENTS NOR PARTICIPATE
IN THE DRAFTING OR.APPROVAL OF.ANY .FINAL OECD STATEMENT."
10
(U) DURING THE DISCUSSION, THE USG DELEGATION
REITERATED THE .USG POSITION THAT IT WAS BEST TO HAVE A
SENSE OF THE STRUCTURE AND SUBSTANCE OF THE MINISTERIAL
AS WELL AS THE ROLE OF THE NON-MEMBER REPRESENTATIVES
BEFORE DECIDING WHICH COUNTRIES TO INVITE. WE ADDED
'THAT THE,AGENDA'WAS STILL UNDERGOING CHANGES AS A RESULT
OF THE SC DISCUSSIONS THAT DAY. WB ALSO NOTED THAT THE
COMMITTEE'ON COOPERATION WITH NON-MEMBERS (CCN) WOULD
NOT BE MEETING UNTIL JUNE 15. NO SPECIFIC DECISIONS
WERE MADE ON WHICH COUNTRIES TO INVITE, BUT A FEW
DELEGATES DID INTERVENE TO SUPPORT .THE INVITATION OF
INDIVIDUAL COUNTRIES/REGIONS .SUCH AS THE BALTICS.
11. (SBU) COMMENT: JUST AFTER THE APPROVAL OF THE
ABOVE RECOMMENDATION, USOECD COMMERCIAL ADVISOR TALKED
WITH THE SECRETARIAT STAFF WHO COMMENTED THAT WITH THIS
VERY LIMITED ROLE, IT WOULD NOT EXPECT NON-MEMBER
COUNTRIES. TO SEND THEIR MINISTERS. .FURTHER, THE
SECRETARIAT SAID THAT THE COUNCIL WOULD LATER DECIDE ON
THIS AND THE CCN RECOMMENDATIONS·FROM ITS JUNE 15
MEETING. A CANADIAN OECD OFFICIAL LATER COMMENTED THAT
SHE WAS PLEASED BY THE FINAL.SC RECOMMENDATION. WE DO
NOT BELIEVE THAT THE CANADIAN GOVERNMENT REALIZES HOW
LIMITED THE ROLE OF THE NON-MEMBER REPRESENTATIVES WOULD
BE. END COMMENT
12. {U) PROCEDURALLY, GABRIEL DRILHON WILL NOW DRAFT A
REPORT FOR AMBASSADORS TO REVIEW AT THE JUNE 23 COUNCIL
MEETING. THE NON-MEMBER COMMITTEE WILL HAVE THE
OPPORTUNITY TO REVIEW THE STEERING COMMITTEE'S REPORT
PRIOR TO. THE PLANNED JUNE l.5 MEETING AND ALSO SUBMIT A
REPORT TO THE JUNE 23 MEETING.
13.
(SBU) COMMENT: THE CANADIANS ARE VERY KEEN TO
MAKE THE .OTTAWA MiNISTERIAL A "MILESTONE" IN E-COMMERCE-~AND.MORE'THAN JUST AN "OECD SECTORAL MINSTERIAL."
WHILE IT ~~y JUST BE ORGANIZATIONAL ENTHUSIASM, THERE
ARE SIGNS THAT THE CANADIANS MAY HAVE TAKEN ON A 14.
PARIS
{SBU) NTIA AND ITA/USDOC REPORTED THAT THEY LEARNED
04 OF 04
12835
IN WASHINGTON, DC--PRIOR TO THE 5/20 STEERING COMMITTEE
MEETING--THAT THE CANADIAN DELEGATION WAS UNDER THE
IMPRESSIO!'J THAT AS THE HOST OF THE MINISTERIAL AND
LEADING CANDIDATE TO CHAIR THE SC, ITS GOVERNMENT HAD
THE AUTHORITY TO VETO ANY DECISIONS MADE BY THE SC.· THE
USG REQUEST FOR CLARIFICATION AT THE OUTSET OF THE
STEERING COMMITTEE WAS A GOOD TACTICAL MOVE TO LIMIT THE
UNCLASSIFIED
4
CLINTON UBRAP.Y.PHOTOCOP'/
�LUNCHi'·
.. "CLARIFIED" THAT THE .STEERING·'
· COMMITTEE WAS TO PREPARE. A THREE PART DOCUMENT WITH THE
FIRST PART TO FocUS ON ACTIVITIES WITHIN THE OECD'S
COMPETENCY, WHILE PARTS TWO AND THREE WOULD FOCUS ON
ACTIVITIES UNDERWAY IN.OTHER INTERNATIONAL ORGANIZATIONS
AND THE PRIVATE SECTOR.
THESE ARE IMPORTANT
... DISTINCTIONS SINCE PART ONE CAN BE PRESCRIPTIVE ABOUT
WHERE THE OECD IS GOING IN E-COMMERCE ACTIVITES. IN
CONTRAST, BECAUSE INTERNATIONAL ORGANIZATIONS AND
PRIVATE INDUSTRY FALL OUTSIDE THE SCOPE OF THE OECD,
PARTS TWO AND THREE OF THE ACTION PLAN WILL MOST LIKELY
BE "INVENTORIES" OF ONGOING ACTIVITIES .
. 17.
(SBU) THE·ACTION PLAN HAS THE POTENTIAL TO BE A
..VALUABLE DOCuMENT, AND ONE THAT COULD SE"+ THE oriAWA
MINISTERIAL APART FROM ROUTINE OECO SECTOR MINISTERIALS,
AS WELL AS OTHER E-COMMERCE MEETINGS. THE OECD
SECRETARIAT HAS INDICATED THAT THEIR INSTRUCTIONS FROM
SENIOR MANAGEMENT--BOTH THE SECRETARY GENERAL AND THE
DEPUTY SECRETARY GENERAL--ARE TO HAKE THE MINISTERIAL A
"MILESTONE." INDEED THE SECRETARY GENERAL OF THE OECD,
WHO IS ALSO CANADIAN, HAS REPORTEDLY REFERRED TO THE
MINISTERIAL AS THE "BRETTON WOODS OF E·COMM.ERCE."
BONDURANT
UNCLASSIFIED
5
CLINTON LlBRAP.Y PHOTOCOPY .
�Withdrawal/Redaction Sheet
Clinton Library
DOCUMENT NO.
AND TYPE
001. cable
DATE
SUBJECTffiTLE
From AmEmbassy Manila re: Philippines - Preliminary Reaction to
U.S. E-Commerce Proposal (2 pages)
03/03/98
RESTRICTION
P5
COLLECTION:
Clinton Presidential Records
Domestic Policy Council
Ira Magaziner (Electronic Commerce)
OA/Box Number: 13125
FOLDER TITLE:
Philippines
Rhonda Wilson
rwl22
RESTRICTION CODES
Presidential Records Act- [44 U.S. C. 2204(a)]
PI National Security Classified Information [(a)(l) of tbe PRA]
P2 Relating to tbe appointment to Federal office [(a)(2) of the PRA]
P3 Release would violate a Federal statute [(a)(3) of the PRA]
P4 Release would disclose trade secrets or confidential connnercial or
fmancial information [(a)(4) of tbe PRA]
PS Release would ·disclose confidential advise between tbe President
and his advisors, or between such advisors [a)(S) of tbe PRA]
. P6 Release would .constitute clearly unwarranted invasion of
personal privacy [(a)(6) of the PRA]
a
C. Closed in accordance witb restrictions contained in donor's deed
of gift.
PRM. Personal record misfile defined in·accordance with 44 U.S.C.
2201(3).
RR. Document will be reviewed upon request.
Freedom of Information Act - [5 U.S.C. 552(b)]
b(l) National security classified information [(b)(l) of the FOIA]
. b(2) Release would disclose internal personnel rules and practices ·or
an agency [(b)(2) of tbe FOIA]
b(3) Release would violate a Federal statute [(b)(3) of the FOIA]
b(4) Release would disclose trade secrets or confidential or fimmcial
information [(b)(4) of the FOIA]
· b(6) Release would constitute a clearly unwarranted invasion of
personal privacy [(b)(6) of the FOIA]
b(7) Release would disclose information compiled for law enforcement
purposes [(b)(7) of tbe FOIA]
b(S) Release would disclose information concerning tbe regulation of
financial inStitutions [(b )(8) of the FOIA]
b(9) Release would disclose geological or geophysical information
concerning wells [(b)(9) of the FOIA\f,UNTON LIBRARY PHOTOCOPY
�18:59
. 03/04/98
-
·'0'202 647 0158
': :·
~
··.
· .. ·,:-···
..·
EB/CIP Rhf2533A.
,_
@ 0Qg(003
.
. UNCLAssi~~:ED
· Pr'inted By.: Andrew .J. Weinschenk
ACTION CIP-00
INFO
LOG-00
ACDA-08 ACDE-00 AGRE-00 AID-00
AIT-03
qAE-00 CTME-00 DODE-00 ANHR.-01 SRPP-00 EAP-01
EUR-01
E-00
FBie:~oo
FRB-00
FCC-01
H-01
TEDE-00 . INR-00
I0-00
ITC-01
JUSE-00 L-01
NSAE-00 NSCE-00 OIC-02
OMB.- 01
OPIC-01 CIO~OO
sso-oo
ss-oo
STR-00
TRSE.-00 USIE-00 DRL-04
SAS-00
/o~ew
------------------i22746 030859Z /38
P 030854Z MAR 98
FM AMEMBASSY MANILA
TO SECSTATE WASHDC PRIORITY 6417
INFO USMISSION GENEVA
USDOC WASHDC
USEU BRUSSELS
ASSOCIATION OF SOUTHEAST ASIAN NATIONS
.
.
UNCLAS
E
F T
0
CEA-01
EB-00
IM-01
ADS-00
SP-00
G-oo
SECTION 01 OF 02 MANILA 002659
GENEVA FOR USTR/TAOLIANI
SENSITIVE
STATE ALSO PASS USTR FOR ABELSON/ROHDE
STATE ALSO FOR EB/CIP - WEINSCHENK
USDOC FOR 4430/IEP/EAP/OPB/KELLY
USDOC ALSO FOR NTIA
E.O. 12958: N/A
TAGS: ETRD, ECPS, WTRO, RP
SUBJECT: PHILIPPINES
PRELIMINARY REACTION TO U.S.
E-COMMERCE PROPOSAL
REF:
(A)
98
STATE 34344; (B) 98
0315
. MANILA · 01 OF 02
2659
Sensitive But Unclassified.
Summary
1. (SBU) "Department of·Trade and Ind~stry Undersecretary
Jose Juliano, who coordinates a·newly-created GOP
interagency/private-sector advisory c"ommittee charged
with developing GOP E~commerce poli.cy; ·.told us March 2 he
personally fully supports the U.S. ii:iitiative for a dutyfree cyberspace. He.says the GOP isJ;:~t;ill reviewing the·
u.S. proposal, which will be among topi.~s discussed at
the E-commerce advisory committee's ·::first meeting, March
9. The head for information technology"policy at the
National Computer Center also indicated her support for
the proposal. A formal GOP position~·.'·however, will also
depend on discussion within ·the interagency Trade Related
Matters committee. Juliano was not familiar·with ·the
details of the European Commission paper}(ref b) on a
globa1 internet charter. End summary :c:'·': :.
·~-
... ·.:·:,~~~- ;_.·:~.:
I~h~>.t
Some Support for U.S.. Proposal
J~~:.\~B.:,,;.
.
·2. (SBU) on March 2, econoff discussed· ·t!le u.S. proposal
.'·•.<\ .
···~:·
UNCLASSIFIED
1
CLINTON LIBRARY PHOTOCOPY
�.1:::13/CiP
OJ/U4/iJIS
1/
·'
l{!J_~03/003
J:{31~5JJA
UNCLASSIF!.ED
.
Xnted By: Andrew J. Weinschenk
·,
for duty-tree cyberspace with DTI Undersecretary Jose
Juliano and National Computer Center Director for
Information Policy Lorna Sales. Embassy had faxed to
both Juliano arid Sales on February 24 ·.copies of the u.s.
proposal and the statement made by Am.b~·ssador Hayes at
the WTO General Council. Juliano coordinat~s the
"Electronic Commerce Promotion Council; ... created by
Executive Order 468 on February 23. The Council is a
GOP/private-sector advisory committee charged with
developing and recommending policies to;·promote Ecommerce in the Philippines (ref c) .
·
3. (SBU)
Juliano said the GOP has yet to define an
official position on the U.S .. proposal, but stated he
.personally fully supports the U.S. propcisCJ.l to make
cyberspace formally duty-free. He commented "it would be
ridiculous to even try to collect customs duties on
downloaded software." Juliano explaim!d that the issue
would be among those discussed. when El~'ctronic Commerce
Promotion Council holds its first meetihg, s'cheduled for
March 9. The National Computer Center·:·s ·Sales said she
also supports the concept of a tariff-free internet. ·She
was less sanguine that the committee would discuss policy
issues at its first meeting, speculating the. first
meeting might just be organizational. On March 3,
Econoff discussed the U.s. proposal with Juliano's
Executive Assistant, Roberto Silerio, who confirmed that
the proposiil and the APEC workplan on E~commerce would be
included on the agenda for the March 9 meeting.
·Possible Hurdle
.· •. :
..
·~frr. ;:~:,
Econoff also discussed the propo·S'a~E with
Margarita Songco, Director for Trade at:::ilt!h'E!;1'fational
Economic Development Author! ty. Songco -:'Sri~ •the issue
would have to be scheduled for discussion' w:l:thin the GOP
interagency Trade Related Matters (TRMJ'::bominittee, "to
examine the implications." Econoff note"tl;.~tt(at it would
seem hard to identify any "implicat:f:pJ!:S\,;i.i,,;.sthce no duties
were be~ng applied at present, and ::M~;\wO,~li:! }:>e 'G~rtually
impossible to. charge duties. in any case~h· Sopgc9Mtpok -the
point, but declined to be drawn into· ftftthe]:{>'dfSciission
on specific concerns that might be rais:~·ci\in 'the.:TRM.
4. · (SBU)
.
~~
Not Familiar with Bangemann/Brittan Charter
.
--·-- --------- .. ---------------------- ----~~~;-..~
·i~·~y>:··
5 . . (SBU) Since neither Juliano nor Sales::',were familiar
with the European Commission paper on adrirfnistration of
the int'ernet {the "Bangemann/Brittan Charter.".), we did
£;{:;~ :.;
MANILA 02 OF 02 2659
Comment
....
:-~~~t~!~-. :·
·:>·:;,:.
6. (SBU) Juliano's sympathetic response {.;;'important,
since trade policy is also within hi's .ba"Hi.i.-f.'ck at DTI,
but does not guarantee formal GOP support~.'~fO'l: the U.S.
proposal. As _songco' s comment suggests,,·;.thetultimate
decision ·may be left to the· TRM, which includes other
agencies that are at times lees progressi.'&.e:foll'certairi
trade issues, such as the Department. of 'ii~Ign:~ffairs.
- .
W~SI~t~l~?r~~;
~ ~' "{;::" ·:' ;'ft~J:\-~--~_-:
_:_:.·~·::... Jf~;~;~;:~-~~ ~-
_·:t.;.:.~.¥.:.~·; ··f
v
.., . .
-
d:-:-~.: ..
·;:~-:/-: .·.
'~
•• · · : • .
·.~·;
..
CLINTON LIBRARY PHOTOCOPY
�Withdrawal/Redaction Sheet
Clinton Library
DOCUMENT NO.
AND TYPE
DATE
SUBJECTrriTLE
RESTRICTION
001. cable
From AmEmbassy Luxembourg re: Lux EU Presidency/Magaziner
Meetings- C (5 pages)
10/07/97
Pl/b(l)
002. cable
From AmEmbassy Bonn re: Crypto: Econ Ministry's Concerns (3
pages)
10/07/97
P5
COLLECTION:
Domestic Policy Council
Magazlner, Ira· (Electronic Commerce) ·
OA/Box Number: 13125
FOLDER TITLE:
Luxembourg
Rhonda Wilson
rw70
RESTRICTION CODES
Presidential Records Act· [44 U~S.C. 2204(a)]
Pl National Security Classified Information [(a)(l) of the PRA]
P2 Relating to the appointment to Federal office [(a)(2) of the PRA]
P3 Release would violate a Federal statute [(a)(3) of the PRA]
P4 Release would disclose trade secrets or confidential commercial or
financial information [(a)(4) of the PRA]
· PS Release would disclose confidential advise between the President
imd his advisors, or between such advisors [a)(S) of the PRA]
P6 Release would constitute a clearly unwarranted invasion of
persomil privacy [(a)(6) of the PRA]
C. Closed in accordance with restrictions contained in donor's deed
of gift.
- PRM. Personal record misfile defined in accordance with 44 U.S.C.
2201(3).
RR. Document will b!! reviewed upon request.
Freedom of Information Act- [5 U.S.C. 552(b)]
b(l) National security classified information [(b)(l) of the FOIA]
b(2) Release would disclose internal personnel rules and practices of
an agency [(b)(2) of the FOIA]
b(3) Release would violate a Federal statute [(b)(3) of the FOIA]
b( 4) Release 'would disclose trade secrets or coilfidential or financial
information [{b)(4) of the FOIA]
b(6) Release would constitute a clearly unwarranted invasion of
personal privacy [(b)(6) of the FOIA]
b(7) Reh!ase would disclose information compiled for law enforcement
purposes [(b)(7) of the FOIA]
b(8) Release would disclose information concerning the regulation of
financial institutions [(b){8) of the FOIA]
b(9) Release would disclose geological or geophysical information
concerning wens [(b)(9) of the F~lNTON LIBRARY PHOTOCOPY
�I
•._.
UNCLASSIFIED
ROUTINE
WHITE HOUSE SITUATION ROOM.
PAGE
PRT:
SIT:
SIT:
01 OF 03
MAGAZINER
BANDLER BUTLER KNEPPER MCELDOWNEY SAPIRO TODD VERSHBOW
NSC
·-----------------------------------------------------------~------------------------
<CLAS> UNCLASSIFIED
<PREC> ROUTINE
<DTG> 071317Z OCT 97
FM AMEMBASSY BONN
TO RUEHBS/USEU BRUSSELS
RUEHFR/AMEMBASSY PARIS 8857
INFO RUETIAA/DIRNSA FT MEADE MD
RUEAIIA/CIA WASHDC
RUEHSS/OECD POSTS COLLECTIVE
RHDIFCC/FCC WASHDC
RUCPDOC/USDOC WASHDC .
RHEHAAA/WHITEHOUSE WASHDC
RUEAWJB/DOJ WASHDC
RUCNFRG/FRG COLLECTIVE.
RUEHC/SECSTATE WASHDC 13.4 7
UNCLAS SECTION 01 OF 02 BONN 012639
STATE FOR EB/CIP (VMCCANN, EMALLOY AND TFINTON)
STATE FOR EUR/AGS (EKROPF)
·STATE FOR EUR/ERA, PM
STATE FOR EB/TPP/BTA/DCT (RO'BRIEN)
STATE FOR USOECD
STATE·PASS USTR FOR DABELSON
STATE PASS OMB/MCCONNELL
STATE PASS NSC KNEPPER
WHITEHOUSE FOR MAGAZINER
JUSTICE FOR SCHARNEY, GOLDSTONE, VATIS, B-ESHAVE
USDOC FOR 520/BXA/EA/JLEWIS/PSEFCIK
·USDOC FOR NTIA/IRVING/SHAW/BURR
USDOC FOR OGC/VWELLBERRY
.
USDOC FOR 6320/TD/SE/OT/DENNY-BROWN
USDOC FOR 42i2/MAC/EUR/GERMANY DESK
USDOC FOR 3133/USFCS/OIO/EUR/JWILSON
. FCC INTERNATIONAL DIVISION FOR DCORNELL AND BHAAN
CIA FOR HAVER, FORT MEADE FOR MANNING .
E.O. 12958: N/A
TAGS : AORC OTR KSCA OECD ECPS /· ETRD EUN
SUBJECT: CRYPTO: ECON MINISTRY'S CONCERNS.
I
I
I
I
I
I
GM
REF: PARIS 22181 ·
-~- SENSITIVE BUT UNCLASSIFIED ENTIRE TEXT - PROTECT
ACCORDINGLY --
1. SUMMARY: IN RESPONSE TO REFTEL CONCERNING RECENT
MEDIA REPORTING OF POSSIBLE EU, SPECIFICALLY GERMAN,
MISCONCEPTIONS REGARDING USG ENCRYPTION POLICY, W~
UNCLASSIFIED
CLINTON LIBRARY PHOTOCOPY
�'ROUTINE
UNCLASSIFIED
WHITE HOUSE SITUATION ROOM
PAGE 02 OF 03
REPORT THE FOLLOWING RECENT ECONOMICS MINISTRY COMMENTS
·ON THIS TOPIC.
ECONOMICS_MINISTER REXRODT NOTED TO
AMBASSADOR GERMAN DISAGREEMENT WITH THE USG ON
CRYPTOGRAPHY ISSUES. WE POINTED OUT THE INTENSE LEVEL
. OF CONSULTATIONS TAKING PLACE BETWEEN THE USG AND
GERMANY ON CRYPTOGRAPHY, WHICH ARE SERVING TO AIR AND
CLARIFY MISUNDERSTANDINGS OF USG TRUSTED THIRD PARTY
PROPOSALS, AS WELL AS GERMAN CONCERNS ABOUT PRIVACY
PROTECTION THAT MAY UNDERLIE THEIR CURRENT POSITION.
END SUMMARY.
2. DURING AMBASSADOR KORNBLUM'S INTRODUCTORY COURTESY
CALL ON ECONOMICS MINISTER REXRODT ON OCTOBER 2,
REXRODT RAISED THE ISSUE OF CRYPTOGRAPHY, NOTING THAT
IT WAS AN AREA OF DISAGREEMENT BETWEEN THE USG AND
.
.
.
. .
GERMANY. WE POINTED OUT TO REXRODT THE INTENSE LEVEL
OF CONSULTATIONS TAKING PLACE BETWEEN THE USG AND
GERMANY ON THE ISSUE. WE NOTED RECENT MEETINGS HELD BY
THE WORKING LhVEL CRYPTOGRAPHY GROUP FROM THE NSC, NSA
AND DOC/BXA ON SEPTEMBER 2S WITH OFFICIALS OF THE
SCIENCE MINISTRY, ECON MINISTRY AND CHANCELLERY. IN
ADDITION, WE POINTED OUT AMB. AARON'S .·INVITATION TO
BERND SCHMIDBAUER TO ATTEND A MEETING OF SENIOR
ENCRYPTION POLICY OFFICIALS IN PARIS, AND CONFIRMATION
THAT WOLFRAM BERGER OF THE ECON MINISTRY WILL ATTEND
_THE MEETING ON OCTOBER 14. A/EMIN POINTED OUT TO
MINISTER REXRODT THAT THE MOST FREQUENT AND POTENTIALLY
SERIOUS MI-SUNDERSTANDING IN CRYPTOGRAPHY WAS THE NOTION
THAT THE TRUSTED THIRD PARTY COULD ONLY BE IN THE U.S.,
AND THAT IN FACT THE.USG PROPOSES ALLOWING FOREIGN
ENTITIES IN EUROPE TO SERVE AS THEIR OWN KEY RECOVERY
AGENTS. REXRODT RESPONDED THAT. GERMANY WOULD HAVE
GREAT DIFFICULTY WITH TRUSTED THIRD PARTIES.
.
3. BOTH DURING AND AFTER THE SEPTEMBER 25 WORKING
LEVEL CRYPTOGRAPHY GROUP'S MEETING.WITH-WOLFRAM BERGER
AT THE ECON MINISTRY, ULRICH SANDL, WHO WAS QUOTED ON
THE CRYPTOGRAPHIC KEY ISSUE IN COMMUNICATIONS WEEK
INTERNATIONAL, STRESSED THE IMPORTANCE OF REGULAR
CONTACT WITH THE EMBASSY ON CRYPTOGRAPHY/PRIVACY ISSUES
TO "AVOID ANY FURTHER MISUNDERSTANDINGS." HE APPEARED
TO.BE ADMITTING THAT HE GOT IT WRONG ON THE TRUSTED
THIRD PARTY ISSUE, AND WARMLY WELCOMED EVERY
. OPPORTUNITY, SUCH AS THE WORKING LEvEL GROUP'S VISIT,
BOTH TO BE BRIEFED ON THE ISSUE AND TO SHARE THE GERMAN
GOVERNMENT'S PRIVACY ISSUE CONCERNS.
4. COMMENT:
THE FRG, AND PARTICULARLY THE ECON
MINISTRY, HAS CONSISTENTLY CHOSEN TO MISUNDERSTAND OUR
POSITION ON TTP. REXRODT'S DIRECT REACTION TO OUR
CLARIFICATION, NOTING CONTINUING FRG DIFFICULTIES WITH
.
UNCLASSIFIED
CLINTON LJBRARY PHOTOCOPY
�UNCLASSIFIED
. .·ROUTINE
\
· WHITE HOUSE SITUATION ROOM
PAGE 03 OF 03
THE POINT, SUGGESTS FUNDAMENTAL PROBLEMS WITH OUR
PROPOSAL, PROBABLY DRIVEN BY GERMANY'S RIGID APPROACH
TO PRIVACY PROTECTION (DATENSCHUTZ).
IN ADVANCE OF THE
OCTOBER 27/28 ADD TALKS HERE, WE WILL PROVIDE FURTHER
INSIGHTS AND REPORTING ON THIS ASPECT OF THE FRG CRYPTO
. POLICY.·
UNCLAS SECTION 02 OF 02 BONN 012639
STATE FOR EB/CIP (VMCCANN, EMALLOY AND TFINTON).
· •. STATE FOR EUR/ AGS ( EKROPF)
STATE FOR EUR/ERA, PM
STATE FOR EB/TPP/BTA/DCT (RO'BRIEN)
STATE FOR USOECD.
.
STATE PASS USTR FOR DABELSON
STATE PASS OMB/MCCONNELL
STATE PASS NSC KNEPPER
WHITEHOUSE FOR MAGAZINER
JUSTICE FOR-SCHARNEY, GOLDSTONE, VATIS, B-ESHAVE
USDOC FOR 520/BXA/EA/JLEWIS/PSEFCIK
USDOC FOR NTIA/IRVING/SHAW/BURR
USDOC FOR OGC/VWELLBERRY
USDOC FOR 6320/TD/SE/OT/DENNY-BROWN
USDOC FOR 4212/MAC/EUR/GERMANY DESK
USDOC FOR 3133/USFCS/OIO/EUR/JWILSON
FCC INTERNATIONAL DIVISION FOR DCORNELL AND BHAAN
CIA FOR HAVER, FORT MEADE FOR MANNING
E.O. 12958: N/A
TAGS: AORC, OTR, KSCA, OECD, ECPS, ETRD, EUN, GM
SUBJECT: CRYPTO: ECON MINISTRY'S CONCERNS
KORNBLUM
<ASECT>SECTION: 01 OF 02
<ASSN>2639
<ATOR>971007120439 M2965584'
<ASECT>SECTION:.02 OF 02
<ASSN>2639
<MSGID> M2965584
UNCLASSIFIED
CLINTON LIBRARY PHOTOCOPY
�.
.
Withdrawal/Redaction Sheet
Clinton Library
DOCUMENT NO.
AND TYPE
SUBJECTrfiTLE
DATE
RESTRICTION
001. cable
From AmEmbassy Kuala Lumpur - C (12 pages)
02/12/97
Pl/b(1)
002. cable
From AmEmbassy Kuala Lumpur - C (6 pages)
06/18/97
Pl/b(l)
003. cable
From.AmEmbassy Kuala Lumpur re: E-Commerce in APEC (4 pages) ·
04/08/98
PS
COLLECTION:
Clinton Presidential Records
Domestic Policy Council
Ira Magaziner (Electronic Commerce)
ONBox Number: 13125
FOLDER TITLE:
Netherlandsf[Malaysia]
Rhonda Wilson
rw72
RESTRICTION CODES
Presidential Records Act· [44 U.S.C. 2204(a)]
Freedom of Information Act· [5 U.S. C. 552(b)]
Pl National Security Classified Information [(a)(l) of the PRA]
P2 Relating to the appointment to Federal office [(a)(2) of the PRA]
P3 Release would violate a Federal statute [(a)(3) of the PRA]
P4 Release would disclose trade secrets or confidential commercial or
financial information [(a)(4) of the PRA]
PS Release would disclose confidential advise between the President
and his advisors; or between such advisors [a)(S) of the PRA]
P6 Release would constitute a clearly unwarranted invasion of
personal privacy [(a)(6) of the PRA]
b(l) National security classified information [(b)(l) of the FOIA]
. b(2) Release would disclose internal personnel rules and practices of
an agency [(b)(2) of the FOIA]
b(3) Release would violate a Federal statute [(b)(3) of the FOIA]
b(4) Release would disclose trade secrets or confidential or financial
information [(b)(4) of the FOIA]
b(6) Release would constitute a clearly unwarranted invasion of
personal privacy [(b)(6) of the FOIA]
b(7) Release would disclose information compiled for law enforcement
purposes [(b)(7) of the FOIA]
b(S) Release would disclose information concerning the regulation of
financial institutions [(b)(S) of the FOIA]
b(9) Release would disclose geological or geol!hysical information
concerning wells [(b)(9) of the FOIA] Gl!NTON LIBRARY PHOTOCOPY
C. Closed in accordance with restrictions contained in donor's deed
of gift.
PRM. Persomil record misfile defmed in accordance with 44 U.S.C.
2201(3).
RR. Document will be reviewed upon request.
�.•
0
UNCLASSIFIED
Printed By: John R. Rodgers
ACTION EAP-01
AMAD-01· CIP-00
EB-00
UTED-00 IM-01
;oo3w
NSCE-00 STR-00
SAS-00
------------------30DDA1 080816Z /38
P 080658Z APR 98
FM AMEMBASSY KUALA LUMPUR
TO 'SECSTATE WASHDC·PRIORITY.0876
USDOC WASHDC
USIA WASHDC 1671.
INFO APEC COLLECTIVE PRIORITY
INFO
LOG-00
ADS-00
TEDE-00
UNCLAS SECTION 01 OF 03 KUALA LUMPUR 001267
SENSITIVE
USDOC FOR ARLENE MAYEDA
WHITE HOUSE FOR IRA MAGAZINER
USIA FOR EA, I/TES
_rSTATE PASS USTR FOR DON ABELSON AND BILL CORBETT
E.O. 12958: N/A
TAGS: MY, ECPS, APEC, BEXP
SUBJECT: E-COMMERCE IN APEC: SUSPICIONS OF U.S. MOTIVES
AND TURF BATTLES COMPLICATE GOM POSITION
UNCLASSIFIED
KUALA LUMP
01 OF 03
1267
REF: SECSTATE 34344
(U) THIS MESSAGE IS -UNCLASSIFIED BUT CONTAINS
SENSITIVE INFORMATION WHICH SHOULD NOT BE RELEAsED
OUTSIDE THE U.S. GOVERNMENT. PLEASE SEE ACTION REQUESTS
PARA 14. THIS MESSAGE ALSO PROVIDES A PRELIMINARY
RESPONSE TO QUESTIONS POSED REFTEL.
SEE PARA 8.
l.
2.
(SBU) SUMMARY. ECONCOUNS AND ECON ASSISTANT CALLED ON
MINISTRY OF ENERGY, TELECOMMUNICATIONS AND POSTS (MINETP)
DEPUTY SECRETARY GENERAL SHAIK SOEKARNO ON MARCH 20 TO
DISCUSS THE GOM'S POSITION ON CREATING A DOMESTIC
ENVIRONMENT TO PROMOTE E-COMMERCE, ON PROMOTING ECOMMERCE WITHIN APEC, AND ON U.S. BUSINESS' PROBLEMS
SECURING TYPE APPROVALS FOR TECHNOLOGICALLY-SOPHISTICATED
TELCOM PRODUCTS. THE CONVERSATION REVEALED STRONG
SUSPICIONS OF U.S. MOTIVES IN PROMOTING E-COMMERCE WITHIN
THE MINISTRY AND AMONG OTHER ASEAN STATES. SOEKARNO ALSO
VIEWED DARKLY. THE APEC E-COMMERCE TASK FORCE, BELIEVING
THAT APEC'S WORK ON THE ISSUE SHOULD REMAIN WITHIN THE
TELECOMMUNICATIONS WORKING GROUP. WE BELIEVE WE MADE
·sOME PROGRESS IN DISABUSING SOEKARNO OF SOME OF HIS
DEEPEST SUSPICIONS ABOUT U.S. INTENTIONS, BUT HE TENDS
TOWARDS SUCH ATTITUDES AND HIS SIGNIFICANT ROLE IN
DETERMINING GOM POLICIES, AND HIS READING OF .THE STANCE
OF OTHER GOM AGENCIES AND APEC ECONOMIES, SUGGEST A
CHALLENGING PATH IN ADVANCING U.S. GOALS ON E-COMMERCE.
3.
(U) SOEKARNO AND HIS DEPUTY WERE VERY ATTENTIVE WHEN
U.S. BUSINESS' PROBLEMS SECURING TYPE APPROVALS WERE
·DESCRIBED AND UNDERTOOK TO LOOK IN TO'THE SITUATION.
WHILE WARY OF THE U.S. E-COMMERCE AGENDA, . SOEKARNO MADE
TWO REQUESTS FOR USG ASSISTANCE: HE WANTED TO KNOW
WHETHER THERE MIGHT BE ANY INTEREST AMONG U.S. COMPANIES
UNCLASSIFIED
1
CLINTON LIBRARY PHOTOCOPY
�UNCLASSIFIED
Printed By: John R. Rodgers
IN SETTING UP A INTERNET·ACCESS POINT IN MALAYSIA; AND HE
WANTED USG ASSISTANCE IN SETTING UP A TRAINING PROGRAM;
DRAWING ON U.S. ACADEMIC EXPERTS, FOR GOM OFFICIALS ON ECOMMERCE. WE ARE EXPLORING WITH USIS THE POSSIBILITY OF
BRINIGN AN ACADEMIC EXPERT HERE FOR WORK IN THIS AREA.
ACTION REQUESTED: EMBASSY WOULD APPRECIATE RESPONSES
SOONEST FROM WASHINGTON AGENCIES TO THE ISSUES .POSED IN
PREVIOUS SENTENCE . . END SUMMARY.
4.
(U) S9EKARNO WAS JOINED IN THE MEETING BY YEOH BENG
KEAT, ~RINCIPAL ASSISTANT SECRETARY. SOEKARNO EXPLAINED
THE GOM'S STRUCTURE FOR DEVELOPING NATIONAL POSITIONS ON
E-COMMERCE: THE MULTIMEDIA DEVELOPMENT CORPORATTION
(MDC), THE AGENCY RESPONSIBLE FOR THE DEVELOPMENT OF THE
MULTIMEDIA SUPER CORRIDTOR (MSC), CHAIRS THE INTERAGENCY
EFFORT. UNDER IT, ONE COMMITTEE, CHAIRED BY MITI,
FOCUSES ON THE INTERNATIONAL TRADE.ASPECTS OF E-COMMERCE,
THE OTHER, CHAIRED BY MINETP, DEALS WITH INFRATRUCTURE
ISSUES.
5.
(U) SOEKARNO EXPRESSED CONCERNS ABOUT THE NEW APEC
TASK~FORCE .ONE-COMMERCE, ARGUING THAT THE BUSINESS
FACILITATION STEERING GROUP (BFSG) OF THE TEL WG HAD
ALREADY UNDERTAKEN RELEVANT INITIATIVES AND HAS
PROGRESSED QUITE FAR. NOW WE HAVE THE APEC TASK FORCE,
.WRICH WILL RESULT IN SOME OVERLAP. HE THOUGHT THAT THE
. APEC .TASK FORCE MUST. HAVE CLEAR TERMS OF REFERENCE AND BE
OF SHORT DURATION, ECONCOuNS EXPLAINED THAT THE
AUSTRALIAN AND SINGAPORE CO-CHAIRS OF THE TASK FORCE HAD
ESTABLISHED A WORK PROGRAM WHICH FOCUSED FIRST, ON ~UAL
EDUCATION, AND SECONDLY ON FINDING JOINT AGREEMENT ON .
PRINCIPLES, AND THUS SHOULD NOT CONFLICT WITH THE TEL
WG' S WORK. AT THE SAME TIME, SOEKARNO COMPLAINED THAT
THE TEL WG WAS BEING DRAWN AWAY FROM ITS PRIMARY AND
RIGHTFUL FOCUS ON THE TECHNICAL ISSUES OF
TELECOMMUNICATIONS. HE THOUGHT THAT THE U.S. SHARED THIS
CONCERN TO SOME EXTENT.
(U) ASKED ABOUT MALAYSIA'S ROLE AS APEC CHAIR IN
PROMOTING ACCEPTANCE OF AN APPROACH TO E-COMMERCE AMONG
OTHER APEC MEMBERS, SOEKARNO SAID THAT THE GOM HAD BEEN
CONSULTING CLOSELY WITH OTHER ASEAN COUNTRIES, AND HAD
DETECTED CONSIDERABLE SUSPICION ABOUT U.S. MOTIVES IN
PROMOTING AN E-COMMERCE AGENDA,_THAT THE USG HAS PUT
FORWARD ITS OWN APPROACH AND JUST WANTS EVERYONE ELSE TO
SIGN UP, WITHOUT ADITIONAL INPUT. HE SAID THAT MANY
COUNTRIES HAVE COME TO THE GOM URGING CAUTION ABOUT
PROCEEDING ON E-COMMERCE. MALAYSIA HAS BEEN "WARNED" TO
6.
KUALA LUMP
.
.
02 OF 03
1267
.
REF: SECSTATE 34344
BE CAUTIOUS ABOUT THE POSSIBLE LOSS OF SOVEREIGNTY WHICH
MIGHT RESULT FROM HASTY ACCEPTANCE OF THE USG'S IDEAS.
7.
(U)
SOME COUNTRIES (VIETNAM?) QUESTIONED THE USG
POSITIONS AS "CAPITALIST" BECAUSE OF THEIR EMPHASIS ON
MINIMAL GOVERNMENT INVOLVEMENT.
IN GENERAL, COUNTRIES
WERE EXTREMELY CONCERNED BECAUSE THEY DID NOT UNDERSTAND
THE IMPLICATIONS OF E-COMMERCE. IN PARTICULAR, MANY
POORER COUNTRIES ARE CONCERNED ABOUT THE USG PRINCIPLES
RELATING TO NO TAXATION OR TARIFFS, BECAUSE SUCH
COUNTRIES BADLY NEED THE REVENUES, AND SOME ARE STILL
VERY DEPENDENT ON TARIFFS AS A REVENUE SOURCE. COUNTRIES
WERE ALSO VERY CONCERNED ABOUT THE IMPACT ON THEIR OWN
COMPANIES OF A NEW TECHNOLOGY WHICH MIGHT PLACE THEM IN
CLOSER COMPETITION WITH U.S. AND OTHER DEVELOPED COUNTRY
UNCLASSIFIED
2
CLINTON LIBRARY PHOTOCOPY
�UNCLASSIFIED
Printed By: John R. Rodgers
GIANTS. SOEKARNO CONVEYED THE IMPRESSION THAT SOME
WITHIN.THE MALAYSIAN BUREAUCRACY SHARED SOME OF THESE
CONCERNS, IN PARTICULAR ABOUT THE ABILITY OF MALAYSIAN
FIRMS TO COMPETE WITH THE U.S. "GIANTS" LIKE MICROSOFT.
COUNTRIES ARE ALSO CONCERNED ABOUT HOW E-COMMERCE WILL
AFFECT PAYMENTS ARRANGEMENTS AND MONETARY POLICY
GENERALLY.
8.
(U}
SOEKARNO EXPRESSED PARTICULAR ANNOYANCE THAT THE
USG HAD TABLED ITS PAPER ON CUSTOMS TREATMENT OF ECOMMERCE.AT THE BRUNEI TELGROUP MEETING.
FOR ONE THING,
THE TEL GROUP DID NOT DEAL WITH CUSTOMS ISSUES. WAS THE
USG UP TO SOMETHING? HE THOUGHT IT BEST TO CREATE THE
(PRESUMABLY TECHNICAL} CONDITIONS FOR THE DEVELOPMENT OF
E-COMMERCE AND TO "LET ..THE CUSTOMS ISSUE BE" AND DEAL
LATER WITH CUSTOMS ISSUES.
HE REFERRED TO DEVELOPING
COuNTRY CONCERNS ABQUT FOREGOING POSSIBLE SOURCES OF
INCOME AND SAID OUR POSITION IS INCONSISTENT WITH THE
VIEWS OF THE REST OF APEC.
HE EXPRESSED CONCERN ABOUT
THE U.S. EFFORT TO PUT THE ISSUE ON THE WTO AGENDA.
EMBASSY WILL CONTINUE TO PRESS THE POINTS REFTEL TO OTHER
GOM AGENCIES BUT EXPECT MORE TIME AND EDUCATION WILL BE
REQUIRED TO BRING THE GOM ON BO.ARD .
ECONCOUNS RESPONDED WITH A DEFENSE AND
. 9 .. (U}
EXPLANATION OF U:S. POLICIES AND GOALS ON E-COMMERCE.
SHE EXPLAINED THAT THE QUESTIONS POSED TO GOvERNMENT
POLICY MAKERS AND REGULATORS HAD COME TO THE USG'S
ATTENTION EARLY ON BECAUSE OF OUR OWN DIVISION OF POWER
BETWEEN THE NATIClNAL l\NI) STATE GOVERNMENTS AND THAT THE
PRESIDENT'S INITIATIVE WAS A RESPONSE TO AN OBVIOUS NEED.
SHE EXPLAINED THAT THE USG PROPOSAL FOR A CUSTOMS-FREE ECOMMERCE ENVIRONMENT WOULD NOT DEPRIVE POOR ·coUNTRIES OF
TRADITIONAL SOURCES OF REVENUES LEVIED ON PHYSICAL GOODS
TRANSACTIONS. SHE. SAID WE RECOGNIZED THAT OTHER
COUNTRIES, SUCH AS AUSTRALIA AND THE EU, ALSO HAD THEIR
OWN IDEAS, AND WE HAD COME TO A MUTUAL UNDERSTANDING WITH
THE EU. ALSO, WE ARE QUITE PLEASED THAT AUSTRALIA AND
SINGAPORE AGREED TO CO-CHAIR THE APEC TASK FORCE.
10. SHE EXPLAINED THE SCOPE·OF WORK FOR THE TASK FORCE
AS DEFINED BY ITS CO-CHAIRS, WHICH WOULD FOCUS FIRST ON
MUTUAL EDUCATION ON THE KINDS OF ISSUES WHICH SOEKARNO
HAD RAISED.AND THEN TURN TO DEFINING AN AGREED SET OF
PRINCIPLES. THE WORK OF THE TASK FORCE THUS SHOULD NOT
CONFLICT WITH THAT OF THE TEL WG.
SHE ALSO EXPLAINED
THAT THE COMPANIES WHICH ARE BENEFITING THE MOST FROM THE
DEVELOPMENT OF E-COMMERCE ARE SMALL AND MEDIUM-SIZED
COMPANIES, AND THAT WE SEE THAT E-COMMERCE WILL PROVIDE
THE SAME OPP,ORTUNITIES FOR SMES ON A GLOBAL SCALE,
PARTICULARLY WHEN ACCOMPANIED BY, FOR EXAMPLE, APEC-WIDE
MEASURES TO CREATE AN ENABLING ENVIRONMENT FOR EXPRESS
PACKAGE DELIVERY.
11.
(U} APPEARING SOMEWHAT REASSURED BY THE EMBASSY'S
EXPLANATIONS, SOEKARNO ASKED IF THERE WAS ANY'POSSIBILITY
THAT THE USG COULD FACILITATE THE ESTABLISHMENT OF SOME
KIND OF TRAINING PRQGRAM IN E-COMMERCE ISSUES TO BE
CONDUCTED BY EXPERTS FROM U.S. UNIVERSITIES. THE GOM
WOULD BE IN A POSITION TO DISCUSS FUNDING FOR SUCH A
PRQGRAM. WE WILL FOLLOW UP ON THIS REQUEST BY SOLICITING
ASSISTANCE THROUGH USIA'S . I- BUREAU. SOEKARNO ALSO ASKED
IF THE EMBASSY COULD HELP FOSTER U.S. INDUSTRY INTEREST
IN ESTABLISHING ADDITIONAL INTERNET ACCESS POINTS IN
MALAYSIA. BEGINNING IN JUNE, THE GOM WILL OPEN UP
KUALA LUMP
03 OF 03
1267
UNCLASSIFIED
3
CLINTON LIBRARY PHOTOCOPY
�UNCLASSIFIED
·t
Printed By: John R. Rodgers
REF: SECSTATE 34344
INTERNET·SERVICE TO ALL INTERESTED PROVIDERS IN MALAYSIA,RATHER THAN.THE TWO THUS FAR GIVEN CONTROL OF THE LOCAL
MARKET.
HOWEVER, ALL PROVIDERS WOULD STILL REMAIN
DEPENDENT ON COSTLY ACCESS TO THE U.S. UNLESS AN ACCESS
POINT WERE ESTABLISHED IN. MALAYSIA.
12.
(SBU) ECONCOUNS THEN TURNED THE DISCUSSION TO THE
SEVERE PROBLEMS REPORTED TO US BY ONE LARGE. U.S. TELCOM
·COMPANY IN OBTAINING.TYPE APPROVALS FOR ITS STATE OF THE
ART NETWROKING PRODUCTS. AT THE COMPANY'S REQUEST, WE
RAISED THE PROBLEM ONLY IN GENERAL TERMS, INFO~ING
SOEKARNO THAT APPROVALS IN-MALAYSIA CAN TAKE 3-5 MONTHS
COMPARED TO 1-2 MONTHS ELSEWHERE, THAT THE HEAVY
REGULATORY BURDEN_REQUIRED TO OBTAIN THE APPROVAL IMPOSES
SEVERE COSTS ON EXPORTING COMPANIES, AND THAT MALAYSIA
BOTH
SUFFERED REPEATED TECHNOLOGY-LAGS AS A RESULT.
SOEKARNO AND YEOH APPEARED SHOCKED AT THE DESCRIPTION OF
THE TYPE APP.ROVAL PROCESS AND UNDERTOOK TO INQUIRE INTO
THE SITUATION.
13. COMMENT.
(SBU)
DEPUTY SECRETARY GENERAL SOEKARNO
IS A HIGH-RANKING MEMBER OF THE GOM'S INTERAGENCY GROUP
TO ESTABLISH THE GOM' S OWN NORMS FOR PROMOTING AND
REGULATING E-COMMERCE. HIS DOWNBEAT ASSESSMENT IS IN
PART A REFLECTION OF HIS OWN GENERAL DEMEANOR BUT ALSO
APPEARS TO REFLECT FAIRLY WIDESPREAD ATTITUDES WITHIN THE
MALAYSIAN BUREAUCRACY AND OTHER ASIAN COUNTRIES.
MOREOVER, WE HAVE HEARD ELSEWHERE THAT THE GOM' S PROCESS
OF DETERMINING POSITIONS ON E-COMMERCE ISSUES IS BEING
COMPLICATED BY TURF BATTLES. NONETHELESS, THE GOM AT THE
HIGHEST LEVELS.HAS ESTABLISHED A PRIORITY TO DEVELOP E. .
.
.
COMMERCE,- AND HAS MADE E-COMMERCE A PRIORITY FOR ITS APEC
CHAIRMANSHIP YEAR, SO THE NAY-SAYERS WITHIN MALAYSIA WILL
HAVE TO BE ACCOUNTABLE'FOR ANY FAILURE TO ACHIEVE
PROGRESS. WE CAN BEST HELP MOVE THE PROCESS FORWARD BY
RESPONDING TO THE GOM'S REPEATED REQUESTS FOR ASSISTANCE
IN "BRIEFING UP" ON THE ISSUES.
EMBASSY HOPES THAT
PRESIDENTIAL SENIOR ADVISOR WILL BE ABLE TO TRAVEL TO
MALAYSIA IN JUNE TO BRIEF APEC SENIOR OFFICIALS AND
OTHERS IN KUCHING.
IN ADDITION, EMBASSY HOPES WASHINGTON
AGENCIES WILL RESPOND ASAP TO THE ACTION REQUESTS IN
FOLLOWING PARAGRAPH.
END COMMENT .
EMBASSY REQUESTS WASHINGTON AGENCY
. 14. ACTION REQUESTS.
ASSISTANCE IN ADVISING ON A RESPONSE TO THE GOM REQUEST
DESCRIBED PARA 11 FOR FACILITATION OF A TRAINING PROGRAM
ONE-COMMERCE ISSUES TO BE CONDUCTED BY-U.S. ACADEMIC
EMBASSY ALSO REQUESTS GUIDANCE ON HOW TO
EXPERTS.
RESPOND TO PARA 11 REQUEST FOR ELICITING U.S. INDUSTRY
INTEREST IN ESTABLISHING AN INTERNET ACCESS POINT IN
MALAYSIA. WE ADMIT TO IGNORANCE ABOUT THE TEHNICALITIES
OR REASONABLENESS OF SOEKARNO'S REQUEST BUT WOULD
APPRECIATE ANY EDUCATION FROM WASHINGTON SHOULD WE NEED
TO GO BACK TO HIM FOR MORE INFORMATION.
END ACTION
REQUESTS.
MALOTT
UNCLASSIFIED
5
UNCLASSIFIED
4
CLINTON LIBRARY PHOTOCOPY
�Withdrawal/Redaction Sheet
Clinton Library
DATE
DOCUMENT NO.
AND TYPE
SUBJECTffiTLE
. 001. memo
From Drew Quinn to Ira Magaziner re: Japan - language on content (2
·
··
pages)
0411'6/98
RESTRICTION
P5
COLLECTION:
Domestic Policy Council
Magaziner, Ira (Electronic Commerce)
ONBox Number: 13125
FOLDER TITLE:
. Japan [2]
Rhonda Wilson
rw74
RESTRICTION CODES
Presidential Records Act- [44 U.S.C. 2204(a)]
Freedom of Information Act- [5 U.S.C. 552(b)]
PI
P2
P3
P4
b(l) National security classified information [(b)(l) of the FOIA]
b(2) Release would disclose internal personnel rules and practices of.
an agency [(b)(2) of the FOIA]
b(3) Release would violate a Federal statute [(b)(3) of the FOIA]
b(4) Release would disclose trade secrets or confidential or financial
information [(b)(4) of the FOIA]
b(6) Release would constitute a clearly unwarranted invasion of
personal privacy [(b)(6) of the FOIA]
b(7) Release would disclose information compiled for law enforcement
·
purposes [(b)(7) of the FOIA]
b(S) Release would disclose information concerning the regulation of
financial institutions [(b)(S) of the FOIA]
b(9) Release would disclose geological or geophysical information
.
CLINTON LIBRARY PHOTOCOPY
.
concerning wells [(b)(9) of the FOIAJ
National Security Classified Information [(a)(l) of the PRA]
Relating to the appointment to Federal office [(a)(2) or'the PRA]
Release would violate a Federal statute [(a)(3) of the PRA]
Release would disclose trade secrets or confidential commercial or
financial information [(a)(4) of the PRA]
PS Release would disclose confidential advise between the President
and his advisors, or between such advisors [a)(S) of the PRA]
P6 Release would constitute a clearly unwarranted invasion of
personal privacy [(a)(6) of the PRA]
C. Closed in accordance with restrictions contained in donor's deed
of gift.
PRM. Personal record misfile defined in accordance with 44 U.S.C.
2201(3).
RR. Document will be·reviewed upon·request.
�..,
A'PR.
DOMESTIC POLICY COL
TI1U 16: 4 7 FAX 202 456 5581
Q4fl6/98
-lr 98(FRiJ
14!002
00:38
P. 001
.
:
.
.
.
. Aprill6, 1998
TO:
Ira Magaziner
Drew Quinn"1)~
.FROM:.
·. ·.. SUBJ:
Japan ;..;Janguage on content (:five pages)
. i met \Vith the Natio~Ql Polic~ Agency, today io seek coofun1ation on a feyi'a5pects of
their contellt.law as :requested by DC agenci~s.
·
··
·.
. On objectionable (not illeg~) content. the NPA provi~ed the assurances we want: the
. restrictions wili consist solely of a regisi.ratioitrequiremeltt and-an age. verification··.
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. .requir~me.nt that are the precise. analog of restrictions on retailers ofpor.n: .· (Note: the ·
.· J;'esi}jctiC)lU doh't ,apply. tp COlltent flows generally, just t(J businesses. that-make. riloney· by
·selli.lls :the stu.ft).- ·No liability will a~ll. to on-line scivice providc:rs ~;. whethetJapanese,
"US~o\\'Tled mJapab cw~~ AQ~!J~pan);· or tJs-based{,(O~)~· f.orenfo,rciris:thi~; the ·- . ·.
. re~p6~ibijhy fo.qs on.~~ 'V/eb_~site; And NPA coirr,frmed these .re#ricti~ns.\l(oul4 apply ·
· orily·i:o dpmestic w~~Si~es,' not to website9 outside Jap~..~·· .·
I·
,' ..'.'
'
.·.":
· :on·megaJ.·c:onMtit, the.~itiiationisn't quite as clear. NPAagr~es ospis sh~uldn'tbe
·
' expeeted to reviey; ot: scJ-e~ ev~nggoing over their system. "Oley a~ee psp~s· ' ,' ., '
' respo~ibllity .to bio~kill~glil co~tellt be:gins only when that content is brought to their ' ' '
· att~tion•. /Uld·:tJ1ey .agl-ee tha,t.rl!e keY issUe is ureasonaQl¢ efforts1 by osp's ~·ifthe ....
;
' '·.'' source o~illega.I cQi,ltMt k~et's,'l,n.oving ft:olll oiie. sire to ~nothet. Asp CCJJ1\be e;ipected
.· ..·' to.bJ~~k1t~c~~pl~~ly'~:.t~~~~~th.eo~p s~sto.b~.makil,lgeffu~~tak~itqc,~·.··. ·• . .·
.· ·.·. _wh~ever an(jff~iJ'lg website is ~TOt!-ght to'itS atte,iltion: .The.
in. ~re _law itself.
···. is pi;Ctry '\/ago~; whei.o~~c:~1~ m~ie#!!}Is folJ!ld on W~ifttf1nsmission f'~9 fliti~s; aspis . . · ·. ·
'sh.iilr.'~rria)ce effoT[S 'to, t~e n~¢~sar)' measuresJii orq~r tq prevt!nt .traD.srl1issioD.. n 'And
the'NPAsays thereafe-~o ~ri!riinal penalties,Justnguidance'i ora "waming'' (!)from. the··
NPA. ' ,'
'. '' , ' '· ' ' ' ' . ' . .
' ' ., ·. ' .' ' ,'
'• . ' ' .
an
ranguage
··· ...
we
.·.·
',:.
'
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·.·..
·. : ·.SQ fa.r~·so good. Ho\\l'ey~r. tiler~ are a couple of problems:· One.is.onsafeguards agaltist .
·:.. ftiV()l()~ or one1"9\JS.aPpl.ipat!on. NPJ\ seem~d to agr~e wi~ tJ¥ concept of';~tonomi~ .
. . an4 rechllica1 feasibllitY"Jor takedown: I alSo not~d thrd tJSG t;elieves that sine~ thlsis a
. ma~r ~tl~w (l'esa#i#g c~ri~t),>tlie-notice to the:()sp Sl!ould be :delivered SY 8.Iav/ . ·.·.· . .
·. ·.entorce@eni a.@aon;Y~;··foliowing feView of a complaiilt filed by ll con~\uller.' The NPA ·•
.. did not
wfih iha.t'logic_ but said that their law envisioned ospis havfu.g to rdporuho
·. complirlnts filed by ~n~cn. This isn't written ill th~ law:-~ jtisju~ how they . .
.
~nvisio.ned it operating. ..··· ··
'
·
·
argue
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The bro~der problem, .as I see it, is. that what I had assumed were Japmese cultural norms·
regilrding content are actually .legal restrictions. The Japanese courts haye essentially,
foUncithat any representation of sex organs constitutes obscenity. \Taken its eXtreme, ·
. .(a ~afe·a5SlUilption·ifthe MtiCe/ta.kedown obligation_ is 1riggere'dby bluenosed consume~s
to
. , .
.. .
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.
.
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. .
. CLINTONLlBRARYPHOTOCOPY
�DOMESTIC POLICY COL
TiiU 16: 48 FAX. 202 456· 5?81 .
" ·. 04/-16i98
. · .·P.
A.PR. -;7.' 98(FRil ·00:38
ooi
ruther thAn resource-poor law enforcement n:t.lthorities), this could mean that every osp
: . · operating in Japan will be .expecte4 tO block ac~ss to the
niillions? •.;. of .
·. V,ebsites from th; US, Etirope and ~tli~r socie?es that ~e·a less ·restrictive approach of.·
wh~Hs (illegally) obscene .. Clearly this
be lUlWOrkable ,.-I'm sch~dule9 to meet \ll.ith ..
thousands --
·''
will
. .Milito ask what theythink nboutit (my role h;eriais to serve as a qomiuit betWeelJ MiTT' ·
· · and NPAr 1 will also call AOL/JapEJJi, PSiNet. Ja.Part a!ld A TT/Jens(AT&T's osp in .
Japan)tomorrow tQ see ~ow they·perceive.t1U:'I.· '
. .• . ·....· .·. . . . ·. . .
.: ..
'
; With respect to the jpint statement. _lam inclined to try to set aside t11e whole issue of . · .·
.· illegal cgntent/9sp liability/J1otice arid tald~down systezn for ~1e tifuc being~ if you thirtk it· ·
· de.!;irable and politically viable-.:: after all• ..yemcluded nothing on this ·subject in·o.ur ·
origin!) draft. rpe pl.Upose,ofthejoirit statement is to outline agreed~upon general ...
prinCiples and:guidelin~~; but ·at this point our dis~us~ion. of()sp iiabiiity is do\Vnln the
w~eds about whatis the p~per threshold ofeconon;tic and technical feasibility~.. a
... ·.
discl.lSSion that might be rendered ob.solete by emerging ·~chnologics artyYiay.. Moreover~ .
. ori~ 9rthe origi~aJ purposes ofthe entire rra~ne\\iork effortwas to shift diSeu5sion of '
.. the internet DW3Y, from porno~phy Or ?~mb-~g2 l:!Ut alr~y t:J?.e S~Ctl()ll on COiitel1t, ·.. . . .· · .
:~as·. groy.rn ttr b¢ tl~e lon~estin ihe ~raffsta,tement: . The NPA ·law Will· ~eat~ .a ll).ess (and' ··
ari i!lternatio~ e~lbarra5sment for.Tapan)# they .try to irp.pl~ent it" as ~ey·haye •. · · . . ·. . .
4esc~be4- ·,As .with roC>stJaf>ancse l~ws•.th~ 1~"' is ~itten,: a vag~ :\Vf1Y. s~ l.assum,~ · . . . .
Nf'AWiu 'ultirrta.ieiy firt4 .a·m~I\!.wdt~i~,~ay· io ·sati~ wliarit views as itilega1 arui' ._, ·
the
.
m
···,:.
) ,,·
·· ·lllbrE1I obl'giltio~s~ .TnJhe h~rertt,n.··W~at#''t'Qjll~~- ~~·¢at iss].le.aside (~s~rning r'41~coyer
. ··. -~~orrow,tbatUS osps,iJJJa:P#.~~tup:i}larm.(aJ:i¢ufthis)?.
•
•'••
•,',
•
•
'
',
'''
•··,'•
I
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'•
v,·,
;;",'''
•
, ·,··:..
'./
·
,··,''
.
,:1·,·
.
·• .• ·Ill·a.veryn()hco~\.ti11 :Way. i,:~ted:ttJt!ayto me
th~ ire>n,Y thB.t\vhn(was hi~~~~
' •. .·. · ..· a~: astaterilenfon general pfiiicipl~s(ln c-c'Oriunerce had :iwolyed int9 such~ very sp¢clfic
' ·. ·• ·. · .· · di$~wsionoflegisl~tioi1 issues, arid theyagreed.lam hopeful that we c(Jt11d persuade .·
. ·.·
.•··. ··~~·t6.set'asi~~ th"e i~s~e ,ofospliability(~_tbeliey~ ~e'dteceive suppprl'trorn" ,''
,· .· '.. '
&J\
. ·. :...
.. ds~her~· ill ~e· 00l to do. so), ··ass#ring we.·reached agreelJlent cufan otherwise .: : ··. .
rnut~Ily. acceptable· COntenr•. text tllatad¢t'e:!~$ed•tati~g/fi1tenng sy,steJ:IlS and :the new
· ·' •: QdJ;Iaw qn.:aec:~s.s to legat ~brh.. ; · : · .. ·; '< · • .· ·
'
11
f.:'·
.,. .
..'
t
.'
-, .. ·..
~.·...
.
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,·
· . ·In· th~tv~in. th~, .l (;)fferthe folloWing red,raft, ·\Wlliclf is i.iltdded .basi~ally t9 fTnme Wh.at .·, •.·
·. ·..•.
>the (l'QJ"ln~licis rodo ~}'Way (withits propbs_edli\v)in tll~lcast'obj~ti6na~le \l/ay · ·· . ·. : ·.
possi~le. ,The thirdpara~h co~ld beaian~k pb~tian if the NPAinsistcd.on h~ving . ·· .· . ·. · · ·.
• . '· .· .· sp~'filention ofliilbi\ity'fo~ Ulegli,tcontent;'·~ th~ ihial C}aUse-(iJi b~CketsJ could beEf.. :,
·· ftithej.:fauback iftliey wanted to include reference to,tl1e notice· and takedou.;n concept~ 'I.··... . •·
also C:ombmcd the second
third
'in the QQJ dtaft in a\way thatmakes" the .. \..
'.
pqint the:y wail~ on eultlir~··divetshy withoutril.akitlg' is seem like tiiat can be justi:n~tion ; ..
. for erecting. bamers LO the free fiow of con:rent (as the GOJ dra!t does).
..
'
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and
'
!
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'
·,
•'
'I.:.,··,
sen.tences
'I
.··
. .'
.
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r
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'
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'
an
' Let' me knOW whaty~u thirlk. ·We're hoUr behitid you in Tok-yo ·- I can be reacbed ·.
from 8 to 11 (Tokyo time) tomorrow at the offi.ce -,. 81·3~3224-5034 ... and over the ,
wee~enc!athome~l-3~3~24·68?6;) ·. · · ..
·
··
... CLINTON LlBRAP.Y PHOTOCO.PY .
r-:
•
·I .
.·
'
�Withdrawal/Redaction Sheet
Clinton Library
DOCUMENT. NO.
AND TYPE
SUBJECTrfiTLE
DATE
RESTRICTION
001. letter
Re: Drew Quinn background paper (3 pages)
12112/97
P5
002. list
Ministry of Foreign Affairs (partial) (4 pages)
12/12/97
P6/b(6)
04116/98
P5
003. memo
From Drew Quinn to Ira Magaziner re: Japan -language on content (2
. pages)
COLLECTION:
Clinton Presidential Records
Domestic Policy Council
Ira Magaziner (Electronic Commerce)
OA/Box Number:
13125
FOLDER TITLE:
Japan[3]
Rhonda Wilson .
rw75
RESTRICTION CODES
Presidential Records Act- [44 U.S.C. 2204(a)l
Pl National Security Classified Information ((a)(l) of the PRA]
P2 Relating to the appointment to Federal office [(a)(2) ~f the PRA]
PJ Release would violate a Federal.statute ((a)(J) of the PRA)
P4 Release would disclose trade secrets or confidential commercial or
financial information [(a)(4) of the PRA]
PS Release would disclose confidential advice between the President
and his advisors, or between such advisors [a)(S) of the PRA]
. P6 Release would consti-tute a clearly unwarranted invasion of
personal privacy [(a)(6) of the PRA)
C. Closed in accordance with restrictions contained in donor's deed
of gift.
· ·. PRM. Personal record misfile defined in accordance with 44 U.S.C.
2201(3).
RR. Document will be reviewed upon request.
Freedom of Information Act- [5 U.S.C. S52(b)) .
b(l) National security classified informatio!l [(b)(l) of the FOIA[
b(2) Release would disclose internal personnel rules and practices of
an agency [(b)(2) of the FOlA)
b(J) Release would violate a Federal statute [(b)(J) of the FOIA)
b(4) Release would disclose trade secrets or confidential or financial
information [(b)(4) of the FOIA]
. b(6) Release would constitute a clearly unwarranted invasion of
personal privacy [(b)(6) of the FOIA]
. b(7) Release would ·disclose information. compiled for law enforcement
purposes ((b)(7) of the FOlA]
b(8) Release would disclose information concerning the regulation of
financial institutions [(b)(8) of theFOIA]
b(9) Release would disclose geological or geophysical information
concerning wells [(b)(9) of th-e FOIAJ CLINTON LIBRARY PHOTOCOPY
�. l 2/1
~/9i
STATE !•fPT - ClP ·
1 9: 1 G
Drew:
Here are some thoughts just to give you and other.s sOme idea
o~ ·who's coming. to Hashington next week, and-,what. one. might
. e:<pect. • Pleas~ circulite as ~ppfopria~e.
.
Act1;1ally, there S not much going on out }lere in Tokyoon ecommerce, at. leas.tnot at, the g()vernmental H~:v~l. ·Everyone
out ·here· welcomed !the. Framewgrk · fol; Global E-:-Comm in July;
commended Ira.for putting. the ·issue on the international
agenda;· .:tnd said thl.s would force the: GOJ to take a-·
proact~ve approach to the issue as well. 'I'he GO.:[ even .·
fo~m~d a~ study g~oup.t6 r~pqrt ~b. th~ P~ime:Ministe~on the:
issue: . th~ E-.Comnie,ice ·Study Gidup of ·the "Prime Minister's
1
Advanced Irifo~matibd Sodi~ty Prom6tidn Headquart~rs.~( .But
.·as ,the mon_ths ha~ie pa~sed, and the issue has recedeq (in
· Japan), territorial: batt:J.es between ministries have· .
. . continued·, ahci par.cchia.l inter,ests have re-asserted
. t:hemsel yes; T,here. is no .strong leadership on .this iss1,1e, .
and· the Prime Minister's stt1dy.· group is perceived ·as .a talk .
shop with no authdiity tb ·b~ng btireaucratic.hea~s to~eth~r.
·As· a re·~ul t, 'the. Tack of·.·. c.oord inat ion amori·g ministries . is ·
becoming the biggest 'stumbling !).lock to' meaningful GOJ •
.. pol~cy initiatives in· the e~c6mmercE: ·area;,·· ·
. '
.
'
-MIT-I is· probaqlJ" th~· _most fo~warding.:looking GOJ agency on
.-this ·issue .. MITI o-fficials~ want .to· see a global framework . ·
,·
·for e-cOmmerce· established because b~lieve that's what's
·
·' ne'c~s$ary for e _: c:;ommerce to. grow and thsy see the growth of
e~1commerce. :as ·a wc:ay .to re~.energize, .Japa~:n' s electronics
.
ihdt.lstry. -_. Actually,- tor the people in the Machinery art(l .
in.formatic:m I-ndustries· Bureau, . e-commerce ·is one of -- if ..
not the_··-::. most·. important' issues. fO'r them this year, . because
'they think (1) e-cqmmerce brings bQgether all th~· different
. types: of info:r-mation :technology, ; and (2)' it does so ·in a way'
that is by. definit.io'n d(;;mand~dri ven, .. MlTI feels that in the
'post-bubble erai th!= J:apahe!3e _electronics produc;ers·have'
. pursued a lot of .'de.ad ·ends (I:iDTV, wide,- screen tv, etc) _..
' ' becaus~ their engineers ·were coming up with sophisticated
new products.:for which'there was lirf!.ited demand. MTTI i.s
·confident ~hat potential demand isn't a problem -·- is almost··
lim:i,tless. ~- for ;¢.:.C'ommerce. 'Sho.uld f~1I'J:I' s strong. inf:e:r;est
worry us? .I don't riecess~rily think so.
I c'an' t think of a
. Framework: issue .w,here MTTI would be: expected to have a
position ·opposed .to ours .• The one possible exception that
·springs to mind i.~ st;;tndards, but- I. think even there,, ITiarry
in MITI hav~, l~arned that Japan.:.only standards (NEC p.p.sl _ ._
etc} doJapan.rriore harm l=hai:l goodin the long term; r1owadays
most of the standards prOblems we see. in the high te_cl'l <=1rea ·
are :in telecoms 1 not.
··the: information techno'logies' handled
·.·by MITI. .
. . :.
.
. .
.
. .
.
. ·• .
1
in·
in
.
.·
.
.
MP.T' s role
e~comrnerce policy- is· much less cleiar. · It's
. hard :.to ef,i.ca:pe the f~eli'ng that they' r·e. in tP,is ju~t to
· maint.ain. a say. in: what ·gets transmitted over the
teiecommunicationsnetworks:they regulate (and not cede any
t~rritory on teles::oms-related issues to MITI).
Obviously . ·.
over 'the past: few. months MPT.' s' primary concern has been the ·
I'(linistry' s survi v~l, ariel f.ig})ting (successfully} the plans
, . tq -.merge . its tele~6ms ·bureau in.to ..MTTI. No one in u.s:-·.. ·
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industry here has a·particularly high rega;d for MPT's
efforts or ·views on. e-commerce. On standards, .however,· MPT .
fs ,a key. player, bec~use. its client NTT is one of the .. few
. players. with. the market·. power to enforce a proprietary.· ' .
.standard·.·.· People are alre'ady _beginning to hear that NTT is
developing a proprietary e-mo:hey stanc3.a,:td.
I realize that
~tandard~ isn't on~ .of. the ptiority issue$ that ~ill.be
dis,cussed ·next we~k, btit it might be useful to· continue to
·stress the _desirability of global stand~rds:
· MOF< is ·pretty unenthusiastic about ·all this. · When it· comes
· .to e-money and el~ctronic transaction seitlement, the
feelin·g'. in Tokyo is that fw10F is .dragging its. feet on
funding/approving riew projects bec-ause .it .doesn't want its·
·client ·bimks···..;.:. which are ·already in dire straits·~~ to hav.e·
to face new· competl.tion. Which is probably why most of. the
~inteie~ting t~ial ~roj~~ts her~ a~e froci credit caid
·
companies (v~;hich are regulated by MIT!) . On taxation, . MOF ·
.. isn It SUre hOW it WOUld tax elect•ron'ic COmmerce but is .
. roath, in the current climate.
.fisCal ~cbnsolidation· and
proposed: c'orpo:tate 'tax cuts, .,to rule out any potential
source :of -revenu~.
In fact~ it was MOF's .objections that ·...
~ere ·behind. Japanes~ re~i-stance to' a strbnge·r APEC statement
. ori e -..corrmrerce; Add' to MOF' s relu~tGJ.nce to move f~rward on .
. t;hes$ issues .the Ministry~ s general c:Hs.dain ·for discussing.·
... iJs. ~ssues .in' frc;mt qf. other _GOJ col.l~agues, and you see why
MOF. is. probably the least willing participant in this· .
. pl::.ocess. _on: tarif:t:s, though, MOF' s C1,1stoins and Tariff ·
Bureau seerns.to·made· its .peace witlr'the notion of tariff..;:
free cyberspace, either Oli the ba'sis of principle ·or because
it thin;ks tariff~ on e-commerce. are t;o9 impril,ctica1 to
hoth~r fighting for.:. ·· ·
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I've had. limited de.al:i.ngs with the>· Minist:ry o·f Justice ..
. Some ·people 't}1ink ·they could be .a 'wild' ,c~rd. rn ,,this process·
becauSe they're studying FrameWdl;k issues like. ~ont.ent,
privacy and· digital certi f·ication, and s:lon' t )necessar.i,ly
approach them f:t9m· .the ·same perspective,. wa do (nor fee·1
compelled' t<? pretend they do like MlTI. and MPT) . . t-Je hear
. the Na.tion'al Pol;ice Agency has formed a study .group on.
content control, ,which is· hardly encour~ging gi v:en t,heir
.
track record.·· I •'checked with .MQFA vJhich: said that NPA would
.. not be·_sertding ·a ,delegate' to t;hese talks but would be . ·
...
·. preparing talking .points on' i t.s efforts. for the MOJ. rep ·to "'.
deliver.
On the posltive side, major u.s. electronics firms
are in fairly close contact with Moj, and the Police Agency
~nd promise to ~et ~s know if they_sense the internal ··
del{berations .there are unfolding in a ·way counter to the
·.goals of.. the Framework.
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it is historically assigned the lead on international issues ..·
CLINTON UBRAP.Y PHOTOCOPY
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t'hat 'cut across GOJ agt;ncies. But it Is nos a particularly'
useful .leader -~ r~latlve~y powerless compared to the vested
interest-s at MOF, MITI anc:l ·MPT ,_ pretty uninformed, ·
·-undf2rst:affed, fai.rly junfor.
In -one respect, t-lOFA' s .
: po~itiori is a little unhelpful to us: it)s mu~h mar~
. SensitiVe to the SUpposed II global. COns en, SUS II than the rest
:of .the GOJ ,· and for' now anyway:, is exhibiting .considerably
greater reluctance than the . other ministries. (pa:r'tTcularly
MI'I'I) to the ~otion: of the U ~ s .. arid. Japan getting 6ut in··
·front .a_qd. leading thE! r~st .of the.. world· on e -commerce
.
policy.
In some circles MOFA has the feputation for being
the u •s,
fixer (or would-be fi:x:er) . behind the sc.enes,, but
;OQ this iss~e t~at's j.~st ~ot the case, ~a~be b~ca~se the
MOFA people in·charg~ of:ahd staffing this is~tie a~e not
America hands.bu.t multilateral types in the ~COrl()micAffairs
.. Bureau ... That said, no one· here has ha.d extensive dealings .
. with Kondo, who was· ver'y upbeat and positive about· the. talks
·in Washington ii?- his good discussion \-lith .our Econ M,inister
Larry Gr_eenwood . earlier this ·week.
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s~ those are the. major: players'; Again, a lot·· c.f· diff~rent ·
inl'erests and cli.ents, and'without any overarching structure
. or p'olicy · (the US has a .Fni.inework paper i the· Japanese have ·
different p~pers Jrp_m Ml):'I, MPT, MOF) there ~s no~hing to
, pr~evept different ·GOJ .Min~.stries, from going off and ·
addressing j:ne . iSSUeS tirider their purview on the~r 0\AJTI ..
Whi.ch. I dOn't· think })~ips \ls: . absent any leverage'_ qth~r .
than f!lOral suasion; t;•he best __ way we can. help sway a -- for
·example .:""" a rec?lcij:.;t:a..n~ 'h10J 1 or MOF would be .to- create .an
inter-agency process whereby ministries more' sympathetic to
qur app:rOach WOUld be 'E!11(itled t.o have a SOme input (albeit
limited) ··into t::he final decfsion. ·
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to
If the GOJ won it .. be agl~
sllT!lmo~ up _.the will or inter~st
to .enunciate its own,:unifiedpclicy, .maybe the.l::)estthing to
qo 'IJould pe engage .them in>some sort of joint us~J'apan·
·
.declaration on e~comme:r-ce, wh,ich·would the11 supeisede ,
irJ.dividu!;tl 'ministr·ies :pierogatives ... Ih sending oyer the tEU"US. Joint:.. Statement I·. I rei t'erated Ira Is suggestion that after
. getting a better. sense #.ext· week of where \tie·. agree arid .· .
.disagree, Ira -would. be. prepared tb 9ome over in January or
. February to t:i:y to work·. on 'the·. disagreements wi.th a. goal of
. a similar· joint ~tateltlent> It. might be useful to. repeat
that bffet/threat next ~eek~ ~·tn ~eneral, I think ~he best
thing to do next . week .--·apart· from having a. gciod
substantive disC'ussion. of .these topics'. -- is to generate
some sense of urgency among the· Japanese: 'we Ire serious'
- about this issue: we Ire ta·lking. w.l th othf2r countries; and if
·Japan doesn t ge( its (policy) q.ct togethe_r, it risks being
~eft behind.
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APR:~ l i' 98 (FRll 00-:38.
P. 00 l
Aprill6; 1998
\
Ira Magaiinez:. ·
·TO:
D~e~v Qui1m1)"
FROM:
. SUBJ:
:
,Japan ... language on content (five pages)
I ~netwitlnhe NationalPolice{\gency today to seek co~firri1ation on a few·aspects of
· their content law ~s r~quest~d by DC agenCies.
.
··
·
"On objectio~abl.e (llOt illegal) content, the :NPAprovided.the assurances we want: the
restrictions .will consist solely of a. registration requirement rind an age .verification ..
requirementthat are the precise am1log'ofresfrictions ori retailers of porn. (Note: the
restrictim1s don't apply ·content flows generally. just· to businesses that make m~oney by
· selling the sthft); No li~bility. will attach to on.:.liri~ service providers -- whether Japanese,
. US.;..ow:tied i.IlJapan (like A.OL!Japali); oi:US-ba~ed (AOL).:-~ for enforcing this; the .. . .
tesp6ns~l:)ility falJs qn tl~e w~b ..~ite. AhdNPA confirm~d theserestrictions\~mlld apply
()nlytO-qOmcsticwebsites, no{to websites outside
to
1: •.
.. ···
. . \ ..
.Japan. . .·
.
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.·
Gh·illeg~ content,the'~ituation isn'fquite as.'clear.
NPA agrees osp~s sh~uldn'tbe
. ~xpe(!tedto r~viewor screeu.everythirig going over their system. They ag~~e asp's'
.·· tesponsi~ility to block illegal contei1U)egins::only wll,e~ .tllat conteriUs brqught to their
. ' . .· .. ' . (ittentiOli.' ~~ :thefagree. that.the !c,~y issue i~ 1're~o~ible effort~t by osp's -~ ifth¢ . ..
··· · ·. · ~r.:>Urc·~ ofiite~af¢ql1te~t k:e·eps ¢oving :fr6rn ()ne ~i~e ano~her; an osp can~tb~ expected .
. .to block it c()mpletely a~ long as the osp seell1s t() be r#*.llig efforts to take it down ~· .
· ' · . ·\V1:1eriev~r an bffendi11g ~ebsite is bro'ugllt to itsau~i1tion.'',The. language ,•in the Jaw its'elf ·
< ,' ,'• '
,' · . . ·
. '·
. ' ... ;
.
. ·.
.,( .
..
. ·.
.
pretty v~gue: whe11 obscene ~aterial is found on their transniis~~on facilities; asp's
' . . .. •shal.L''make efforts to tak~. ne~essary measm~s in order to prevent the transmi~sion~" And ' ..
· · the NPA s_ays there ~e ~o crlinlnatpenalties;•.just "guidahce" -or a ,;wari1ing~~ ·(!) frch~ the ·• ·
NJ:lA,··, ··
.
. . .
..:. .
,
.... ,
':,- .
to
.,;
'
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•'
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·.. •
.
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· :·sofar, so good. Howevc:t;there are a: coupleofproblems~·.OJ1~is on.safeguardsagainst·
. . . friyoious or. onerous application. NPA seemed .to agree with lh:e concept of ·~economic .· .
. , andtechnicaffeasibility" for takedown. I also notecJ .• the USG believes that. since this i~ a,
· . :rnatterofla:vJ (reg~ding content). the notice te the asp should be delivered by alaw - · ·
. ·.·. · e11forceril~nt authbrity -- follo'¥ing review of coinplaizlf plecl by ·a consum-er. · Th6 NPA :
...· . did nc>r argue with that logic;but said. that their law envisi6ned.osp's having to resp_ohd to· .
. ··.·complaint~ filed byconsumcrs. This isn'twrltten ill the law '"- it's jusvhow they
envisiohed·itoperating.
.
'
a
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1
. Thebr()adefi~roblerr~. as I see it, is that wh~t lhada,~stiffied 'Were JapCillesecultitral norms
··regarding COI)te~lt ar,e actually leg~l restrictions;-' The Japanese courts have essentially
·
. - found that a1iy represent~tion of sex organs constitutes obscenit)'. Tak~n to its.
(a safe asstimption ifthe I notice/takedown bbligatioij.iS trlggered by_ bh~enosed 'coriswners .
,
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..
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,
extreme,
=
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ruther than resource-poor law enforcement authorities), tlliscouldmeanthatevery osp ·. ·
operating in Japan will be expected to block access to the thousands -~ lpillions? ~~ o.f
websites fro'm the US, Europe and other societies that take a lessrestric~jy~ ~pproaci1 of.
what is (illegally) obscen~. -Clearly this willbe 1lnworkable -- rm sch(!duled ~o meet with
· MITI to ask whatthey think about it (my role here is to serve as a conduitbetween MlTI.
ru1dNPA). J vim also·call AOL!.Tapan; PSINet Japan andATT/Jens (AT&T's·Q?P in·
Japan} tomorrow to see.bow they perceive this.·
.
·
·
. \.
of
.· With respect to the joint st~tement; I am indined to try to set aside the wholeissue
illegal content/asp liability/notice and takedown systein 1'or the time heirig, if_you'tliink it
desirable and politically viable-- after all; weincludednothing on· this subject in our ..
. . origin:afdrafL The pwpose ofthejoint statement is to outline agreed-upon general
· · principles ai1d guidelilic;:s; butatthi's point our discussion of asp liability is down iri the
. weeds about what is theprop~rthreshold ofeconornic andtechnic~l feasibility_ . . a
discussion that mightbe~rendered obsolete by emerging tecluiologies anyway. Moreover,···
orte ofthe originafpurposes of the entit~l~rariie\vork effmt
to. shift the discussion of.
the lnterjJet-away from)omography or bomb::.making, but already tP.e section on content . .
. h~s 'grown to be·the longest-in 'the qnJ.ftstatemeiit. Thb NP A law will create a hies~ (and .·.·
an international embarrassment for Japan) ifthey try to implement it as they have , . .·
·. desc:r1beq.
with rnosrJaj)3.llcse1aws,-the law is\vrittep.'in'a'vagueway, so las~i_t~le · ·
.. NiM. willulti~nately 411d a more workabie \\lax_to s13.tisty what it views as its legal-and ' ·. .
. ··niora] .• obligati~!ls. Tntheint~rJ.:rh,-what ifwcj\lst set that Issue aside· (assuming I discover··
· tom~rro:wthatUS ospsii1Jap~ar(!zftupiria;Il1S,aboutthis)?: .·
· · ·
·' · ·
.. .
.•
·.··
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was
'As
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Jn ~ verytioricofl1rnittal way, I ~n,oted. !oday.to the NPAtli~ ironythat v.:hat Was intended :. ..
~ statemeiit on general principles· ori e~'corrim~rce had evolved into such a verysp~cific
. .discussion. oflegislation i ~sues; ,and they agreed~- . I· am h9p~ful that we •could'persuade
. NPA to set aside thejssue ofosp liability (andlb~lieve.we'd r~c~ive supporCfr~rn . ·
•elsewher~ hi the. GOJ tl). dO s<)). assumingwe reached agreement art aii othenvise · _
· niutuall)r a,cceptabie ..content'1 text that ad~essed rating/filt,eririg systems a.J.'idthe new ·
GOJ lavi dti accesst6 legal pam.
·
·
.
·. ·
..as
. ln ti1<l.t~ein, then, I offer the fdllowirig r~draft, which is i~~ended basically to fT~rri~ ·.what .
·'·the GOJinten:ds to d.o an}'Way (with its proposed hi~) in the least obj~ction~ble
·.possible. The·.thirdparagraph ~ould_be afiillbackpos!tion iftheNP,A in~isted onha:ving.
.,sonie mention ofliabil it)' for illega}."content;. ~d the final Clause. (in brackets). could be a .
ftirtl}er fallback ifthey}\'antedto 'in:Clude-reterence'to: t11e riotice.arid takedc:hvn cqn~pt;/I
.also· cot1lbiricd the secoi1d .-and third sentences. in the GOJ ·draft iri a way that It,tikes the · ·. . . .
point theyw<.mt-6n culttiz:al diversity without inaking is seem like that/can bejustifi(!ation.
for erecting barriers L() ~he ·free flow ,of cbritent (as .the GOJ draft does).
·· ....•
Way··· -•
.
1
, Let me know what you tl1iDk. We're-~ hour behiridy~u,inTok]'o --lean be rciached
from' 8 to u· (Tokyo time) tomorrow atthe office_,- 81-3~3224-"5034. -··and ovefthe
. _weekend at home@l-3'-~224-6866.) .·
.
1
CLINTON LIBRARY PHOTOCOPY
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�Withdrawal/Redaction Sheet
Clinton Library
DOCUMENT NO.
AND TYPE
001. memo
DATE
SUBJECTffiTLE
From Drew Quinn to Ira Magaziner and Greg Chang re: ECommerce/Japan: March 3 Status Report (3 pages)
RESTRICTION
P5
002. cable
. From AmEmbassy Tokyo re: E-Commerce: MOFA's Kondo Previews
March 9Session and Discusses GOJ Views on Joint Statement- C (4
pages)
03/06/98
Pl/b(l)
003. cable
From AmEmbassy Tokyo re: E-Commerce: Following up on Proposed
Joint Statement with MOFA's Kondo- C (4 pages)
02/26/98.
Pl/b(l)
004. cable
·From AmEmbassy Tokyo re: E-Commerce: Police Agency Explains
Proposed Law Regulating Objectionable Content- C (6 pages)
. 03/12/98
Pl/b(l)
COLLECTION:
Clinton Presidential Records
Domestic Policy Council
Ira Magaziner (Electronic Commerce)
OA/Box Number: 13125
FOLDER TITLE:
Japan [6]
Rhonda Wilson
rw76
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Freedom of Information A,ct- [5 U.S.C. 552(b)]
Pl National Security Classified Information [(a)(l) of the PRA]
P2 Relating to the appointment to Federal office [(a)(2) of the PRA]
P3 Release would violate a Federal statute [(a)(3) of the PRA]
P4 Release would disclose trade secrets or confidential commercial or
financial information [(a)(4) of the PRA]
PS Release would disclose confidential advise between the President
. and his advisors, or between such advisors [a)(S) of the PRA]
P6 Release would constitute a clearly unwarranted invasion of
personal privacy [(a)(6) of the PRA]
b(l) National security classified information [(b)(l) of the FOIA]
b(2) Release would disclose internal personnel rules and practices of
an agency [(b)(2) of the FOIA]
b(3) Release would violate a Federarstatute [(b)(3) of the FOIA]
b( 4) Release would disclose trade secrets or confidential or financial
information [(b)(4) of the FOIA]
b(6) Release would constitute a clearly unwarranted invasion of
personal privacy [(b)(6) of the FOIA]
b(7) Release would disclose information compiled for law enforcement
purposes [(b)(7) of the FOIA]
b(S) Release would disclose information concerning the regulatiJn of
financial institutions [(b )(8) of the FOIA]
.
b(9) Release would disclose geological or ge!!J?hysical information
concerning wells [(b)(9) of the FOIAl .CLINTON LIBRARY PHOTOCOPY
C. Closed in accordance with restrictions contained in donor's deed
ofgift.
.
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.
PRM. Personal record misfile defmed in accordance with 44 U.S.C.
2201(3).
RR. Document will be reviewed upon request.
�6. Timing of announcement. You saw (I hope) the cable we
sent in on our meeting (Econ Minister Larry Greenwood and
CLINTON LIBRARY PHOTOCOPY
�me) with Kondo'last week, in which he expressed doubt about
reaching agreement on a joint statement until the summer.
~hat, and ~n indirect .reference we ~icked.up second-hand
later in the week, raised concerns I mentioned to Greg
Friday that MOFA was·not pushing this.very aggressively.
That was what led me to suggest that.you might consider
calling in the Japanese Embassy Econ Minister to express
interest iri moving forward rapidly on this (without putting
Kondo iri a difficult position by referring directly to his
comments), as well as to emphasize what a bilateral 11 win"
this could be.
Now it appears that our concern might have been unwarranted
(or, more likely, Kondo;s inter-:agency'colleagues are
leaning on him to pick up the pace) . Larry was in a meeting
with MITI's Nakagawa .yesterday, who said it would be ideal
to reach an agreement in March. When Larry referred
.
vagueHly to the notion of consulting with ASEAN countries,
Nakagawa basically dismissed that. Today I spoke with Okada
at MITI and h~ said there was inter-~gency agreement that
this must occur at the latest by the Birmingham G~a summit,
or sooner if there was an appropriate occasion. Okada and
his boss MITI DirGen Hirose spoke about e-commerce last week
to the Chief Cabinet Councillor for Internal Affairs
Takeshima (the senibr official in the Prime Minister's ·
Office coordinating the study group's efforts), and he was
reportedly excited about the issue and particularly about
reaching.agreement on a joint statement by May.
If your sched~le permits, there would be no harm in.
contacting the Ja~anese Econ Minister in Washington to
update him on ~he joint statement and our preferred timing
for releasing it; but it seems the urgency has gon_e out of
it. On your way out here, you might want to give some
thought to ~hat events between next week and the G-8 summit
on May 15 might be appropriate target dates for announcement
of the joint statement (Okada dismissed the Quad meeting,
and wondered aloud about the OECD Ministerial).
7. GOJ counterdraft. MOFA has basically delegated to MITI
the coordination of an inter-agency po~ition 6n.this, and
Okada let me look at the (Japanese language) draft.he's
currently neg6ti~ting with other agencies (~lease d6n't
repeat thai).
It se~~s the major sticking poirit is· tariffs:
the Customs Division has rejected MITI's language and come
back ~ith a sentence saying, as I recall "The US and Japan
believe ·economies should continue, in the case of software
on a carrier mediuci transmitted electronically, to resp~ct
the WTO customs valuation decision. 11 Legally correct, I
guess,· but hardly.inspirational.
·
On other issues:
taxation: MOF has basically told MITI that it will
handle the issue of taxation directly with Treasury ( I
understand Treasury is briefing you on these discussions) ;
CLINTON LIBRARY PHOTOCOPY ·
�•
authentication/electronic signatures (for the first
the GOJ said it prefers the broader term of
"electronic" rather than "digital" signatures): the GOJ.
has deleted references to an international convention. They
(MOJ and MPT) have also put ·in a· sentence abou.t 11 respecting
each country's system" which is intended to refer to MOJ's
desire to develop its business register system into a
government-created but not mandated or exclusive certifying
authority.
brivacy:
seems to be mostly the sa~e, but only half of
MPT has blessed the MITI language.
From my cursory glimpse at the text, it seemed that the
other issues were largely the same or amended as you agreed
to in Tokyo; e.g., adding a refere~ce to trademarks to the
IPR sentence, adding a few references to APEC, combining ~he
"agreed actions" and 11 guidelines" sections of the statement.
The Japanese ha.ve also added a sentence to the 'end of the
section on contents which I couldn't make out, but Okada
said it d{dn't materially change the thrust of the
reference.·
MITI's goal is to ~et their re-draft to you b~ Thursday
or Friday, but that might be over-optimistic.
I'll let
you know as the situation evolves:
ti~e,
CLINTON LIBRARY PHOTOCOPY
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Withdrawal/Redaction Sheet
Clinton Library
DOCUMENT NO.
AND TYPE
001. memo
DATE
SUBJECTffiTLE
.·To Ira Magaziner and Greg Chang from Drew Quinn re: ECommerce/Japan: March 3 Status Report (4 pages)
03/03/98
RESTRICTION
P5
COLLECTION:
Clinton Presidential Records
Domestic Policy Council
.
Ira Magaziner (Electronic Commerce)
OA/Box Number: 13125
.
FOLDER TITLE:
Japan [7]
Rhonda Wilson
rwl23
RESTRICTION CODES
Presidential Recon~s Act- [44 U.S.C. 2204(a)] ·
Freedom of Information Act- [5 U.S.C. 552(b)]
Pl National Security Classified Information [(a}(l) of the PRA]
P2 Relating to the appointment to Federal office [(a)(2} of the PRA]
P3 Release would violate a Federal statute [(a)(3) of the PRA]
P4 Release would disclose trade secrets or confidential commercial or
rmancial information [(a)(4} of the PRA]
PS Release would disclose confidential advise between the President
and his advisors, or between such advisors [a)(S) of the PRA]
P6 Release would constitute a clearly unwarranted invasion of
personal privacy [(a)(6) of the PRA]
b(l) National security classified information [(b)(l) of the FOIA]
b(2) Release would disclose internal personnel rules and practices of
an agency [(b}(2) of the FOIA] '
b(3) Release would violate a Federal statute [(b)(3) of the FOIA]
b(4) Release would disclose trade secrets or confidential or financial
information [(b)(4) o( the FOIA]
b(6) Release would constitute a clearly unwarranted invasion of
personru privacy [(b)(6) of the FOIA]
b(7) Release would disclose information compiled for law enforcement
purposes [(b)(7)of the FOIA]
b(8) Release would disclose information concerning the regulation of
financial institutions [(b )(8) of the FOIA]
b(9) Release would disclose 'geological or geophysical information
concerning wells [(b)(9) of the FOIAJCLINTON LIBRARY PHOTOCOPY
C. Closed in accordance with restrictions contained in donor's deed
of gift.
PRM. Personal record misfile dermed in accordance with 44 U.S.C.
2201(3).
RR. Document will be reviewed upon request.
�TO:
FROM:
SUBJECT:
[Drew:
White House -- Ira Magaziner and Greg
Chang
{c/o Drew Weinschenk)
.Tokyo -~Drew Quinn
E-commerce/Japan:
March 3 status report
Please get this to Greg.
Thanks. · -DQ]
Nikkei symposium (for Greg)
1. The Washington-Chicago leg of Ira's outbound trip offers
only First and Economy class seats, and Ira is automatically
upgraded as a bonus for buying a Business Class transpacific
~light.
The ticket will read 11 First Class 11 for Washington
Chicago, because ·Business ClaSs is not available on that
flight. . Is that okay, or would Ira feel better with an
Economy. seat for that (90 minute or so) flight? '
2. Ticketing arrangements are complicated but manageable.
the drawback is that only Ira -- not you, or Nikkei staff in
DC'-- can pick the ticket up from United. He could either
do that at the United office at 16th and K Streets, or at
_the airport just prior to d~parture. Let me know his
preference so American Express knows where to
(electronically) send the ticket.
3 .. Interpreter-- the Ambassador will provide his (Mrs.
-Gregg) for Ira's use Monday so that this is a no-expense
trip.
Obviously the Nikkei provides interpretation at the
symposium and their dinner on the lOth.
4. Vice President's videotape.. I've already told the
Nikkei that because of the VP's busy schedule, it. looks
highly unlikely that he'll get to prepare a-videotaped
m~ssage . . Can I convey that to them officially? They have
prog·rams_ to print, etc, and I'd like to give them sufficient
lead time to delete any references that·might·embarrass
them.
Bilats with. GOJ (for Ira)
5. Some in MIT! still think you might opt to bring some USG
people along fqr a fuller discussion next Monday.
I haven't
heard any reference to an accompanying delegation, and
assume plans to have Don Abelson· or Andy Pincus come along
fell through when i~ became clea~ we wouldn't be aiming to
wrap this up by March 10.
If that's true, can I tell the
GOJ? I think MITI might be rushing their counter-draft
through the clearance process so you can receive it Friday
and decide who to bring with you on Saturday (that's how
they'd operate).
I'd rather be candid with them 'if it looks
like you'llbe coming alone no matter what -- though I'll of
course still stress the benefit of getting th~i~ draft to
you in time for you to discuss it with various inter-agency
players before leaving Washington,
CLINTON LIBRARY PHOTOCOPY
�~V.J/U..J/"0
.L ...-, •
\1 .1.
~
... vw
v,•
5. Timing of announcement.
You saw (I hope) the cable we
sent in on. our meeting (Econ Minister Larry Greenwood and
CLINTON LIBRARY PHOTOCOPY
�U.)/U.)/tfO
J.:I.U.l
.LoUt
V~J.
me) 'with Kondo last week, ·in which he expr-essed doubt about
~eaching agreement on a joint statement until the summer.
That, and ~n indirect referenc~ we picke~ up second-hand
later in the week, raised concerns I mentioned to Greg
Friday that MOFA was not pushing this very aggressively.
That was what led me to suggest that you might consider
calling. in the Japanese Embassy Econ Minister to express
interest in moving forward rapidly on this (without putting
Kondo in a difficult position by referring directly to his
comments), as well as to emphasize what a bilateral 11 win"
this·could be.
·Now it appears that our concern might have been unwarranted
(or, more likely, Kondo's inter-agen~y colleagues are
leaning on him to pick up the pace) . Larry was in a meeting
with MITI's Nakagawa yesterday, who said it would be ideal
to reach an agreement in March. When Larry referred
vaguelly to t_he notion of consulting with ASEAN countries,
Nakagawa basically dismissed that. Today I spoke with Okada
·at MITI and-·he said there was inter-agency agreement that
this must occur at the latest by the Birmingham G-8 summit,
or sooner if there was an appropriate occasion. ·Okada and
his boss MITI DirGen Hirose·spoke about e;.commerce last week
to the Chief Cabinet Councillor for Internal Affairs .
Takeshima (the senior official in the Prime Minister's
Office coordinat~ng the study group's efforts), and he was
reportedly excited about the issue and particularly about
reaching agreement on a joint statement by May.
It your schedule permits, there wourd-be no harm ip
contacting the Japanese Econ Minister in Washington to
update him on the joint statement and our preferred timing
for releasing it; b~t it seem~ the Urgency has gone out of
it. On your way out here,. you might want to give some
thought to what events between next week and the G-8 summit
on May 15 might be appropriate target dates for_announcement
of the joint statement (Okada dismissed the Quad meeting,
and wondered aloud about the OECD Ministerial).
7. GOJ counterdraft.
MOFA has basically delegated to MITI
the coordination of an inter-agency po~ition on this, artd
Okada let me·look at the (Japanese language) draft he's
currently negotiating with other agencies (please don't
repeat that).
It seems the major sticking point is tariffs:
the Customs Division has rejected MITI's language and come
back with a sentence saying, as I recall "The US and Japan
believe economies should continue, in the case of software·
on a carrier medium transmitted electronically, to respect
the WTO customs valuation decision. 11 Legally correct, I
guess, but hardly inspirational.
On other issues:
.
. taxation: MOF has basically told MITI that it will
handle the issue of taxation directly with Treasury ( I
understand Treasury is briefing you on these discussions) i
CLINTON LIBRJ\RY PHOTOCOPY
�U'V'-
U'tl
~
·u.LoJU
VVVI
authentication/electronic signatures (for the .fiist
the GOJ s~id it prefers the broader term of ,
"electronic" rather than ~·digital". signatures) : the GOJ
has deleted references to an international convention. They
(MOJ and MPT). have also put in a· sentence about 11 respecting
each country's system" which is intended to refer to MOJ's
desire to develop its business register system into a
government-created but not mandated or exclusive certifying
authority.
..
--I privacy: seems to. be meetly the same, but only half of
MPT has blessed the M!~I -language.
From my c~rsory glimpse at the text, it seemed.that the
other issues were. largely the same or amended as you agreed
to in Tokyo, e.g., adding a reference to trademarks to the
IPR sentence, adding a few references to APEC, combining the
"agreed actions" and "guidelines" sections of·the statement.
The Jap~nese have also added a sentence to the end of the
section on contents which I couldn't make out, but Okada
said it didn't materially change the thrust of the
reference.
'
MITI's goal is to get their re-draft to yeti by Thursday
or Friday, but that might be over-optimistic.
I'll let
you·know as the situation evolves.
·
ti~e,
CLINTON LIBRARY PHOTOCOPY
VVV
�Withdrawal/Redaction Sheet
Clinton Library
. DOCUMENT NO.
AND TYPE
SUBJECTffiTLE
RESTRICTION
. , DATE
001. memo
From Drew Quinn to Ira Magaziner re: GOJ position on encryption (I
page)
07/28/97
P5
002. cable
From AmEmbassy kuala Lumpur re: That Was Then and !his is Now:
Mahathir Switches from AmeriCa Roasting to America Toasting to
Promote his Multimedia Super Corridor- C (6 pages)
01129/97
Pl/b(l)
003.memo
From Stephanie Young to Mia re: Yoshio Utsumi's appointment with
Mr. Magaziner (partial) (1 page)
10/06/97
P6/b(6)
COLLECTION:
Domestic Policy Council
Ira Magaziner (Electronic Commerce)
OA/Box Number:
13125
FOLDER TITLE:
Japan [9]
Rhonda Wilson
rw77
RESTRICTION CODES
Presidential Records Act- [44 U.S. C. 2204(a)]
Pl National Security Classified Information [(a)(l) of the PRA]
P2 Relating to the appointment to Federal office [(a)(2) of the PRA]
P3 Release would violate a Federal statute [(a)(3) of the PRA]
P4 Release would disclose trade secrets or confidential commercial or
financial information [(a)(4) of the PRA]
PS Release would disClose confidential advise between the President
and his advisors, or between such advisors [a)(S) of the PRA]
P6 Release would constitute a clearly unwarranted invasion of
personal privacy [(a)(6) of the PRA]- '
C. Closed in accordance with restrictions contained in donor's deed
of gift.
PRM. ·Personal record misfile defined in accordance with 44 U.S.C.
2201(3).
RR. Document will be reviewed upon request.
Freedom of Information Act- [5 U.S. C. 552(b)]
b(l) National security classified information [(b)(l) of the FOIA]
b(2) Release would disclose internal personnel rules and practices of
an agency [(b)(2) of the FOIA]
b(3) Release would violate a Federal statute [(b)(3) of the FOIA]
b(4) Release would disclose trade secrets or confidential or financial
information [(b)(4) of the FOIA]
b(6) Release would constitute a clearly unwarranted invasion of
personal privacy [(b)(6) of the FOIA]
_ b(7) Release would disclose information compiled for law enforcement·
purposes [(b )(7) of the FOIA]
b(8) Release would disclose information concerning the regulation of
financial institutions [(b )(8) of the FOIA]
b(9) Release would disclose geological or geophysical information
concerning wells [(b)(9) of the FOIA] C
.
LINTON LIBRARY PHOTOCOPY
�-~ ~ ~
. JUL.-28'9i(MON) ·21:35
'P. 002
July 28, 1997
y.lashington ~-.Ira Magaziner
·.TO:'-
.Tok:>~ ~·~ Drew-~uinn~
Embassy
FROM:
.
'
SUBJECT: · . OOJ position on encryption
Ira: I tried to reachyot~ by phone Friday, but to no·avail; so I'll send this along via fa~.·
· . Mid last week I received a c~.Jfrom Ambassador Aaronis staffiiiParis. They :Were
.
cbncemed, :based on yourst~ceillenis in your trip d~-briefto Amb. Aaron, that Japanese . ·
·support for ~ut approach on·~~ncryptio~ is wavering. Specifically,thcY understood you to:.
say ihat,MITI officials you met with in Tokyo (Kawano~~ perhaps other:s) indicated .
· something to the effect that Japan can no longer support th!= US ei1cryption proposal. .
This warned Aaron, and he 'bad his staf{call me to review the notes of the 1neetings and
find out precisely what the~HTI officials said. . .
.
.
.
,
.
,
,
,
,
I·.
'··I
..'
·,
1
.
·.•
,
.'·
, .
-
.
.
.
,
.·
Later thatday,afted hridhad a chance. to look at the notes fr()m.July 15.Aaron's staff .
c·alled back afidaskedme to read~(ver]?atiin)the refer~nces tp enccyptiori·from.the MITI · ·
meetings .. r'read the only referenc~ to encto/tion I found:. Nakagawa saying 'There might
be· some differences to be tackl~d in encryption ... there are special sensitivities here (in
Japan).;_ telephone interception is illegal~'' Aaron's staffdidri't think those remarks ..·
indicated a ~h~ge of position. I added ihat I had inissedth¢-first five niinutes ofthe
me~ting\vith Nakagav.ra; and had bee11 seated atthe opposite e~d of the table frmfl yo~ .
during.the MITI lunch,·so it )jaspossible the iss1Je ha~beendiscussed.further when I was
· o·ut ofearshot; ·In addition, y~u· had 1net WithMITiand other GOlofficials in Europe
prior to c6~ng t.o Japan,. so it waspossible the issue had been raised then. Aaron'sstaff
said A¥J.ro.p migl1t call MI.Tl directly to see if the GQJ position.·is changing .. They asked
.. niy recommendation em appropriate poirit ofcoiltact;r suggest~q that since we had no
new papet or initiative to raise with ViceMin N·a.kagawa, and since Aaron hasn't yet met .
DirGen Hirose; the best (and. probably most straightforward}personto·speak to on this
wouldheKawart6~.
.
.
· Apparently Aaron :called Kawano late laSt week; and was re~ssured that the .Japanese
_
, position on enctypticm has not changed. Aaron~s ~taffnoted.thauhe apparent discrepancy . ·
, in perceptions of Japanese ·position
pUzzling, and mentioned that Aaionwpuld be
.seeing you in Washing~on this week. I don't knowwhellier he irirends to raise this, but 1
· .. thoughtyou'd ~ant to kno\v th~ background shoul~ it come up:
the·
was
'
_; .
. ':,
'
CLINTON UBR.AP.Y PHOTOCOI-'Y
�Withdrawal/Redaction· Sheet
Clinton Library
DOCUMENT NO.
AND TYPE
001. memo
DATE
SUBJECTffiTLE
From Thomas Marten to Ira Magaziner re:· follow up with Lorentz and
· Boujnah 4/6/98 (3 pages)
RESTRICTION
04/06/98
PS
002. cable
FromAmEmbassy Paris re: Electronic Commerce: France Proposes
Joint Statement Durihg Jospin Visit to Washington- C (7 pages)
04/07/98
:PI!b(l)
003. cable
From EmEmbassy Paris re: Electronic Commerce: Ira Magaziner
Hears Further French Views on Domain Name Management and
Privacy (8 pages)
04/07/98
PS
004. memo
From Thomas Marten to Ira Magaziner re: follow up with Lorentz and
Boujnah (copy of doc. 001) (3 pages)
04/06/98
PS
005. cable
From AmEmbassy Paris re: Electronic Commerce: France Proposes
Joint Statement During Jospin Visit to Washington- C (6 pages)
03/27/98
Pl/b(l)
006. cable
From AmEmbassy Paris re: Electronic Commerce: Ira Magaziner
Hears Further French Views on Domain Name Management and
Privacy (7 pages)
· ·
03/31/98
· PS
COLLECTION:
Domestic Policy Council
Ira Magaziner (Electronic Commerce)
OA/Box Number: 13125
FOLDER TITLE:
France [4]
Rhonda Wilson
r\v87
RESTRICTION CODES
Presidential Records Act- [44 U.S.C. 2204(a)]
Pl National Security Classified Information [(a)(l) of the PRA]
P2 Relating to the appointment to Federal office [(a)(2) of the PRA]
P3 Release would violate a Federal statute [(a)(3) of the PRA]
P4 Release would disclose trade secrets or confidential commercial or
financial information [(a)(4) of the PRA]
.PS Release would disclose confidential advise between the President
and his advisors, or between such advisors [a)(S) of the PRA]
P6 Release would constitute a clearly unwarranted invasion of
personal privacy [(a)(6) of the PRA]
C. Closed' in accordance with restrictions contained in donor's deed
of gift.
PRM. Personal record misfile defined in accordance with 44 U.S.C.
2201(3).
RR. Document will be reviewed upon request.
Freedom of Illformation Act- [5 U.S.C. 552(b)]
b(l) National security classified information [{b)(l) of the FOIA]
b(2) Release would disclose U!ternal personnel rules and practices of
an agency [(b)(2) of the FOIA]
b(3) Release would violate a Federal statute [(b)(3) of the FOIA]
. b(4) Release would disclose trade secrets or confidential or fmancial
information [(b)(4) of the FOIA]
b(6) Release would constitute a clearly unwarranted invasion of
personal privacy [(b)(6) of the FOi:A] .
b(7) Release would disclose information compiled for law enforcement
purposes [(b)(7) of the FOIA]
b(8) Release would disclose information concerning the regulation of
financial illstitutions [(b)(S) of the FOIA]
b(9) Release would disclose geological or geophysical information
concerning wells [(b)(9) of the FOIA]
CLINTON LIBRARY PHOTOCOPY
�Thomas Marten <marte~@ dub-intemet.fr>
04/06/98 05:53:51 PM
Please respond to mari:en@club-internet.fr
. I
·Record Type:· · Record
To:
Ira C. Magazinet/OPD/EOP
._
.. cc:
.
.
Sub]ec,t: follow. up with lorentz and bbujnah 4/6/98 I-~---- __:_~_ -~--
.•"
I·
mr. rnagaziiler,
i met w.ith francis lorentz and~stephan~ bo1,1jnah today. (4/6/98) to'follow
. up on your meeting two ._iveeks ago with dominique strauss-kahn (dsk).
here is the gist of the two meetings:
. ···lor~nti sai.d the: gof was re~dy to proceed with preparation df a joi-nt
·. declaration for the jospin visit. the trench side Will need .1 0~ 1 5 days
to get organized. lorentz will see dsk next week and ....;ill be formally
named e-commerce czar tliro~gtl :1999. h~ -V,ould .lead biiaterals.. he ...
proposes first round of full.:del face:to face talks in washington may
4~5 (he will be there· imyway attendiflgan" economic strategy institute
roundtab!e discussion Oi:l the 50th anriiverS§IfY'bf the gatt on .. 5/5); and a
. second r.ouhd in paris iri early~ june~ he sald tfe can get his team workini;(
on a draftstatement soon after.his''~eeting'with,dsk;.he agreed it would
be valuable _if each side had i;Jrafts ready" for the may meeting~
.
.
.
.
.· •..
.
.
..
......
a
:'.·
·,.·.
~-····
on thir substantive i~sues,". hE! agreed with. our li~t (digita( signatures,
coris'urner. protection, privacy,tisc'al issuesi. ahd approach (identify
areas of agreement/disagreement; define a road map. for -resolving
diffe~erices andfcir enacting global agreements in appfbpriate ...
international forar:. he offered the followi~g comments . bn each issue
."·,··
. .
.
.
•,
~- fiscal issues: big problem i.m th~ ir'n~ort dutylwto side is: _ .
. culture; french view :tFansniissions. as' ser~ic~s; 'this is a "ri:lin~fielcl'' in
france. on domestic taxes (vat, sales tax), itshould 'be easy to agree.
.· .
.
on ~rinciples (neut~aiity), implement~tior:~.' will be a "techniCal"' .
problem .. he asked if vve had a11y niore ideas about using. fin.ancial/e"comm ..
iritermediaries.to collect taxes.· services/culture will also be a
problem tot domestiC taxes. '.
.
.
. .
.
•
I
'
.;
.;
r···
,
.
. -- digit~l signatu~es: ~ny bilateraLstateimmt would be in
. 'competitiol) with an eu, directive which .is riea~ing cornpiErtion; it would
. be fortuitous if the eu directive could serve. as basis for bilateral
agreement, · isabelle falque pi1motiri, administrative law judge at the
cqnseil d'1Hat (and author of an internet repo'rturider the previous
center/right juppe government) is the-lead pf:!rson in gof on this issue.
she will be in the states for two weeks ,over easter~
a
. . -- privacy: this is the most troublesome issue because it is the :
. one the ei.J commission is most engaged on. we could agree on
. applicability of oecd principles; problem is implementation. the eu
·program is clear (i.e. state~run privacy boards); it might be useful if '
... r
..
. CL\1\\TONLIBRf\HY PHOTOCOPY·.·-.
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.·
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.·
.
.
the u.s. could present its proposal for implementatiOn/industry ,
self-regulation; such a presentation could perhaps form the basis for
:. mutual recognition arrangement/contract.. '
· · -- consu~er protection: w'e could agree on the princi~le of which ·
'party's law applied (in his iti_ew, it wo.uld be the· buyer's laws). he .
·noted oecdwas.working on. this.blit thought wto might be a better fon.i'm.
-- other issues: joint statement should-definitely be opened up to.
·. "sociar' issues, such as education, development, or culture. that said,
tie thought f,inding a suitable statement abOutcooperati_cin 'with respect
.· to third world development could be problematic, aild culture probably
belonged in the pn3ambulatory paragra'phs on what's at stake with the
internet and eccommerce (e.g. "internet is an important factor for ..·
global promoting cultural diversity and uniting peoples who share a
common language"); he wondered if it wa~n't too scion to talk about
infrastructure development (intenet II, backbone); on dorrlain names,, he.
noted that this would probably be adone deal by june (at least in terms
of u.s. regs), w[:lich would send abad signal about the "universality" of
the internet; he liked tronc's idea of organizing an ·"international
, .
conference" before the fall and establishment of the "new corporation,"
.
. perhaps iinked tci election of regional representatives.
•
L
•
•
final note: lorentz;said it was important that the joint declaration
.·
not just .identify areas of agreel)1erit Where we can work things out; ,if
. · should ~lso identity. areas wher~we have substantive differ~r'ices due to ·
' diffe~ing. historical traditions; areas where we agree to disa_gree. ·. . ...
.
atfnos~herics: niee~ing
~ne~on-one:very r~laxed;and
was
.in.teractive.··· .
lorentz' w~~ c~r;i6u~ about u~~. bureaucratics:','tiow'much·l~~ger'you'd be
wcitking the issue. (my sense is he warits tO. work withyoiJL what was
. david aaron's role (whom he met in washington), which agenciesto'fticials
'
_ _
..
· .
.
·
-·
·
had.lead on vari()US issues.
_·,_
.boujnah meeting, on the Other hand, was -relaxed but somewhat formal:
"
boujnah reacl from prepared nOtes' which he said f_efl,ected and
''inter!'lg'eiijcy,clea~ed" pOsition. a colleague from the DREE'
·r . ·
' (iJstr-eqLiivaient, aflother part of cisk's empire),toOk notes. he had··· .
. cleariy coordinated\ivith lorentZ, probably including a read~out on our
. meeting <!.s i 'made my way qy subway to Berc~f.• !whereas lorentz, asked me
·vvhat Ollr vie.ws wer'e on content of a joint statement and ·reacted th~retO, ...
' boujnah laid out a cleared version of what the got thought should be in
the statement.) ·
·
·
·
·
}
.
· .·~sing •aimost the s~rhedariguage as lorentz, boujnah ~aid the gof ~~nted ·
to t_ollciw up with.joint declar-ation for jospin visit; but got actions
must take into account the eu process; ·he too ·stressed the need. for
discretio~. arid confidentiality to avoid. mention .in the press of a .·.
;_bilateral '\;.,orking group." instead;· h,e proposed,that we'-~p~ak of·
intensifiecj, inforn)al cOnsultations aimed at idemtifying areas of· ·
convergence, and !'Jivergence of views on substantive issues, (on a •.· ·.·
' personal not~,. he_ said. that as ,the french. deepened. their analysis' of.·. .
e-conimerce issues. through the lorentz. report arid the. policy memorandum,
more.and more areas of convergence appeared),'.
.
.~
< •••
'.
.
!.. .··
• j,
our objective should be a two pa~e joint declar~tiqn on infOrmation
technology which' would include 4-5 paragraphs on electronic commerce
(this sounds one page longer than pre~iously .envisioned by the french,_ i
guess totake into accouht "mai:igon" issues, i.e .. social issues).
e-coritmerce paragraphs w~lJid incl~de the following:: - .
CLINTON LIBRARY PHOTOCOPY
�-- para one: outline what's at stake in. terms of economic growth
and jobs; language could be borrowed from the bonn declaration, the
usceu SUfT1mit statement; or the french policy .memorandum. (note:
lorentz had cautionedagainst too m.uch emphasison ro·synumbers and
rec~mmendedmore of a focus onsocial issues-and/or culture in this.
section)·
"• par~ two: enumer~te common prinCiples .
-" para three: identify areas. of policy c~nvergence/shared
interests, .such as fiscal issues (he meant domestic taxes, noftariffs),
electronic contracts, con~umer protei::tioh, netvyork security, illiCit .
content, and digital.signatures (he also noted the timetable problem
·
·
.related tothe eu dire~tive) ·
'.
-~ para four: iqentify areas of divergence, where ... we agree to
disagree:" privacY (u.s, self-regulation approach and european state led .
.
approach), cultural~ aspects; customs duties.. .
-- para five: lay outa road ·rrap for progress on issues·:. including
mention of the eu process· and the oecd r:niriisterial in ottawa; we should
. seek oecd endorsement ()f principles that we agree 0':" in ottawa.' '
.•
i~ terms of timing, boujnah ~aid.i:hat withinthe n~xtt~n daysthe g~(
.
·would. anr:wunce concrete policy measures to impiement ~ecorljniend~tion~ in
·.· the'iorentz report (the.famous "12 recommendations") ahd would'.also name_)
lor~ntz fo'rmaily as e-c~nirrierce cz(l( he toosuggested ameeting in ' .· · . .
. earW may iri washington arid early june in paris to finalize the text of
. the joint declaration. ·
·
·
· .·
·
·
·
· that's all . we.rcm_out ofjifrieso i-wasn't,ai:Jie to .cross-examine .· ...
. .boujnah on some pf the. new wrinkles in their proposal, such as what . . ..
c~mmong pi-incip,les he:me<mt'in para'two'(it. wouldn't 'be hard to. guess),
and. the ref~rertce to clilturallssue~.irt pal'a foui<. we agreed to get . .
.. back, together. again 'after i heard from 'you ·as to whether washington
';,..,imted to work on a' joint statefnent -for. the jo.spirt :visitor ~ot: 'he . ·.
. seemed veryopti'mistic; he roteq ~hat;dsk's trip to silbm valley in.
· late may is official.
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·a couple personal impressions: it took me a while to get in to ~ee
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lorentz and boujnah.' .fny sen~~ is that dsk was: "free lancing'' vvhen he
discussed the jospin visit with you; i think the' qpai (foreign ministry)
'wasiparticularly.. miffed beca,u~e they l)ad riot;b~eri fully briefed by
either matignon or bercybefor'e their hfeakfastwith you. now there
'is clee~i'ly .an interag~ni:y consensus and they; ~·e ~~ady to mo~e; . loremtz
yvas very thoughtful abo!Jt the issu13s andseemed intent ondinding.
concfete solutions; but i .think when he. referred to "minefields" and
p~oblemareas•he was being very cahdip.- .· · ' . ··. ·.
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the list of areas of convergence ci~cl'divergence from boujnah was .
basically an interagencycproduced lis.t' pf ·issues the bureauc~acies. are
prepared to deal on. , at one point boujnah even said. Vie should harness.
the dsk-magaziriei: momentum tci accorr)plish .more. having loren.ti in the
driver seat' maymake tha~ possible. he's very smart and very respected
arid good at generating consensus here with the frt:mchelites.
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regards,
.tom
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INFO RHEHAAA/WHITE HOUSE WASHDC .· PRIORITY
.·. RUCPDOC)USDO~ .· Wl?-SHDC .
. RHDIFCC/FCC WASHDC
. RUEHXQ/ALL EUROPEAN uNION POST. COLLECTIVE
• UNCLAS .SECTION 01 OF. 0.4 PARIS 007906 .
. . •' . .
.STATE A~SO FOR EB/CIP WEINSCHENK AND EUR/WE
·STATE PLEASE PASSTSTR FOR DON.~ABELSON
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WHITE HOUSE ALSO FOR MAqAZINER .· ~ .
.·. USDOC FOR NTIA -'BECKY BURR · · ··. ·
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u'sDOC ·ALSO :FOR 4212/ITA/MAC/EUR/MDORSETT .
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.· . Fcc· FoR> INTERNATIONAL/BRETT ·-!IAAN· 1rni1' TECHNOLOGY ':PoLICY/MIKE NEt soN-·.·
BRUSSELS FOR COLIN HELMER ·. . . . .
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SUBJECT: .. ~.LECTRONIC. COMME;RCE: : :I:J3A MA}3AZ;IN~l{' H~S . FURTHER FRENCH
-· · VIEWS ON DOMAIN NAME .-·MANAGE~NT AND ·.PRIVA_CY
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(U) StJMMARY. . DURING' TWO DAYS OF MEETINGS IN -PARIS . (MARCH 19·2,0); SENIOR WHITE HOUSE ADVISOR FOR POLICY' IRA ~Gl\ZINER DEFENDED .
- THE us,G 'S PROPOSAL·.FOR REFORMING< IN±ERNET DOMAIN NAME -sYSTEM O::>Ns) .
· ~AGEMENT. ·. HE Acl{NoyJLE])GEb I:.Ec;tTIMATE · FR?NCH qoNCERNs· WITH -· · .· · -· · ·
· . RESPECT TO THE COMPOSITION OF THE BOARD· OF DIRECTORS OF THE · .. · .
. PROPOSE]) "NEW CORPO~TION" WliitH WOULl) _BE c~EA:.TJ?D TO MAN)\GE. THE NEW .
DNS, AND WITH U.S. LEGAL -JURISDICTION'OVER TRADEMARK.DISPUTES •·
· · RELATEif TO DOMAIN :NAME:s: · ,MAGAZINER ·STRESSED, HOWEVER,· THAT. THE 'usG
COULD~NOT/NOT COMPROMISE ON 'THE PRINCIPLE THATTIIE NEW CORPORATION
wouLD BE u~s. _;BASED~ · GOF OFFICIALS. AGREED .To HELP TONE DOWN THE
NEGAT~VE RH~';I'ORIC ·IN OFjfi<::IAL REACTIONS T'C> .THE; U.S. PROPOSAL. _ THEY-·
PRESSED FOR · INTERNATIONAL, POLITICAL LEVEL TALKS IN ADVANCE OF ·.
. FORMA~ LAUNCHING OF THE NEW CORPOI\ATIC)N IN T!IE; FALL.
ON THE;
_
PRIVACY ISSUE, GOF OFFICii:ALS ACKNOWLEDGED GENERAL AGREEMENT WITH ···
: THE u.s. ON DATA PROTECTION PRINCIPLES AND- SOUGHT PRACTICAL
...
. SOLUTIONS TO'DEAL WITH DIFFERING U.S .. AND EUROPEAN ENFORCEMENT
MECHANISMS.
THEY SAID THAT FRANCE WOULD SEEK TO REFORM FRENCH -AND
EUROPEAN APPROACHES TO DATA ···PRiVACY IN THE COMING MONTHS.
END . .
SuMMARY .
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·sENIOR' WHITE HOUSE ADVISOR FOR POLICY IRA MAGAZINER MET
WITH GOF OFFICIALS MARCH. i9 AND 20 ·T·O DISCUSS THE USG' S PROPOSAL.
FOR REFORMING INTERNET DOMAIN NAME SYSTEM ' ( DNS) MANAGEMENT AND
INTE;RNET -PRIVACy IssqEs·. · MAG~·ziNER MET PRIME.·l;fiNIST~R· JPSPIN' s
INFQ-TE~H ADVISOR' QEAN-NOEL TRONC (AND MATIGNON LEGAL ADVISOR. .
ROBERT GELLI);.FOREJ:GN MINISTRY U/S-EQUIVALENT FOR ECONOMIC AND
·EUROPEAN AFFAIRS CLAUDE MARTIN (ACCOMPANIED BY FOREIGN MINISTRY
·.• OFFiCIALS YVES CHARPENTIER, MICHEL FILHOL, AND' AURELIE LAPIDUS);
:FRENCH. E-COMMERCE CZAR FRANCIS. LORENTZ .. (AND INFO-TECH ADVISOR:
· GILLES BAUCHE) f · AND FRENCH .INTERNET . SOCTETY . (I SOC) PRES'rDENT , BRUNO··.
OUDE'I'.: .· MAGAZINER ALSO ~XCHANGED VIEWS ON •. ELECTRONIC COM.MERCE WITH
THE U~ S ~.BUSINESS COMMUNITY·· (AMCHAM) ·AND HELD A PRES'S CONFERENCE
. WITH FRENCH .JOURNALISTS .. · EMBASSY TELECOMS. OFFICER· ACCOMPANIED . • .
MAGAZINER TO ALL MEETINGS; MINISTER.COuNSELOR FOR ECONOMIC AFFAIRS.
JOHN MEDEIROS ANDSCIENCE COUNSELOR BUD ROCKJOINED·MAGAZINER FOR
··~ RELEVANT CALLS; . MAGAZINER 'S MEETING. WITH FINANCE· MINISTER . . .. .
. DOMINIQUE sTRA:uss~K.AHN FocusED ·oN THE uPcoMING visiT Tb wAsHINGTON
BY FREI\fCH ·P~IME MINISTER JO$.PIN Al\!D. IS REPORTED SEPTEL ~. .
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---~--~--~-~~~-~~-~--~-~~-~~--~~L~~-~-------~~~--~~--~~-~--~--~--~:_\ . . ::·. ':
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FOCUSED ON ..TWO ISSUES ·DURING HIS MARCH 19 DISCUSSION WITH
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MAGAZINER.:· REFORM OF .. THE' INTERNET .DOMAIN NAME· SYSTEM (DNS) I AND
PRIVACY.
TRONC NOTED THAT HE H1ill CONSULTED WIDELY ON THESE ISSUES, .
. INCLUDING A FEBRUARY MEETING ~JITH :NTIA/BECKY BURR IN PARIS·· (REF C)
AND 'A MARCH. lfL MEETING WITH EU COMMISSIONER BANGEMANN IN BRUSSELS.
oN. DNS REFORM, ·.TRONe TICKED OFF FAMILIAR FRENCH. OBJECTIONS To ,THE
u.s .. ,;GREEN. PAPER:
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-- NO.· REFERENCE TO THE INTERNATIONAL TELECOMMLJNICATIONS UNION - ( ITtJ) .
MEMORANDUM OF uNDERSTANDING (ALTHOUGil: TRONC SAID .HE UNDERSTOOD U.S.
RELUCTANCE TO ENTRUST . DNS MANAGEMENT TO THE ·ITU).;
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ORGANIZATION· .·(WIPO} ANP A· POTENTIALLY SERIOUS LACK. OF .ADEQUATE
TRADEMARK PROTECTION;· PARTICULARLY··FOR NON""'u.s.:. ·TRADEMARK HOLDERS;
TRONC NOTED. 'I''HE' CURRENT. SYSTEM FAILED TO PROVIDE' ADEQUATE . . '
·.
PROTECTIONS A:Ni:Y AS~ED. IF ~XI STING "VIOLATIONS~. OF TRJ;illEM:AR:ks 'WOULD .
BE CORREC':['ED OR ,;·GRANDFATHERED'' INTO THE NEW DNS MANAG:E¥ENT SYST~; '
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~.- . CONCERN ABOUT THE STATUS· OF FUTURE PRIVATE, COMPETITIVE
·. REGISTRARS AND REGISTRIES WHICH. WOULO SUCCEED. TIIE CURRENT
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. MONOPOLIES MANAGED BY THE. INTERNET 'ASSIGNED. NUMBERS AUTHORITY ...
. ( IANA) AND NETWORK . SOLUTIONS INCORPORATED (NSI); TRONC WONDERED IF
TURNING OVER MANAGEMENT OF, DOMAIN NAME DATA BASES TO A STILL NON-:
.·EXISTENT ORGANIZATION WOULD ·DESTABILIZE THE. INTERNET; HE SUGGESTED
THAT NON-PROFIT REGISTRIES MIGH't PROVIDE BETTER. COORDINATION.OF DNS
.ISSUES;
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-~ MAINTEN.lillCE OF NATIONAL CONTROL OVER COUNTRY-CODE TOP 'LEVEL
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(SBU) j TIWNC ACKNOWLEDGED THAT PRACTICAL·SOLUT·IONS COULD BE
H:E NOTED
. FOUND TO ADDRESS' ALL THE ABOVE TECHNICAL ISSUES '
HOWEVER, THAT INTERNET wAs A VICTIM oF ITS owN succ:Ess, AND HAD.':
BECOME A GLOBAL PHENOMENON OF S.TRATEGIC INTEREST TO• FRANCE, TH~-·
UNCLAS SECTION 02 OF 04 PARIS. 007906
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STATE PLEASE' PASS USTR FOR DON ABELSON.
·WHITE. HOUSE ALSOFORMAGAZINER
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·usDoc FoR'NTIA. -· BECKY .BURR·· ·
USDOC -ALSO. FOR ·.10.0 0/ ITA/UNDERSECRETARY AARON .·.
us6oc ALso-FoR. 4212/ITA/MAC/E'QR/MDORSETT
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FCC FOR-INTERNATIONAL/BRETT JWI.AN·AND TECHNOLOGY P0LICY/MIKE.NE:LSON
BRQSSELS FOR COL_:i::N HELMER
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FR.>··:.·.·
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rRi MAGAziNER H:EA.Rs···Fu:RTHER ·F'RE:NcH.
.viEws .-oN .no!1AIN NA:ME MANAGE~NT .ANTI':PRiv.AcY. .
sUBJ::Ec'I':·· ELEcTR.o:Nfc ·coMMERcE:·
:. ·
. REF: A) '•PARIS 5846
B)
S~ATE
34;000
C)
'·:
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PARTS! 3938 'D) . PARIS 1,082'
u>s. AND T?E wdR.to.· r~oNC IMPLICITHY ACCEPTED' T#E. MID~APR,IL .· .. < .··, . .
DEN)LINE FOR ..FINAI,.IZING ·OF TtiE U ,S. PAPER, BUT UR0ED.<THAT rHE U;.S .. '.
CONSIDER. ·FORMAL,. POLITICAL...,LEVEL TALKS;' .DURING THE SUMMEROF 1998,·.·11
~~~g~~aO sdg~~L~~r~t~~~~i:. ~~ ~~~:(~~w;g~R;~6~?~D ~~~~~~Df~HAT. -.· .
u.s.'
ACCEPT A
.;;,BASED<ENTITY SUBJECT' TO u.s. LAWS· WITH RESPONSIBILI.TY '
FOR MANAGINU, THE GLOB~l:J INTERNE'!' DOJ:1id:tl NAME SY"STEM. ·- .
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(Uf IN JA . SEPARATE M;EETJ;NG .MAR~H 19; .FRENCH· E~COMMERCE CZA_R
.
FRANCIS.LORENTZ PRESSEDMAGAZINERHARD ON THE GEOGRAPHICAL LOCATION
·.OF THE. NEW CORPORATION;S HEADQUARTERS;·. . HE.NOTED.·THAT WITH' Tf!E···.··
• RA.l?±D GROW'I'H oF. DAtA: ir~sMr_ssioN's._v:i.h .Ttt:E rNTERNET,-THE; NEw: i ··._ ... ·.· ·.
<CORPORATION WOUI,.b ;QUJ:CKLy ECLIPSE TH:E.' GENEvA~BASEP ITU As. THE LEAD
. INTERNATIONAL TELECOMMUNICATIONS BODY. ' HE URGED- MAGAZINER TO ' ' . . .·
. CONSIDER HOLDING BOARD MEETINGS OF THE NEW CORPORATION IN GENEVA, ·'
REGARbt;ESS OF THE LOCATION OF ITS TECHNICAL OPERATIONS, IN ORDER To'
. MEET EUROP:EAN DEMAND$· FOR 'A TRULY INTERNATIONAL DNS MANAGEMENT
, BODY.·.
6.. ( SBU)
IN iCSEPARATE MEE'I'ING MARCH' 2 0 I FRENC~. INTERNET SOCIETY
PRESIDENT BRUNO .OUDET STRESSED THE PRACT-ICAL PROBLEMS CREATED BY .
POOR MANAGEMENT OF THE.,; ;COM;' REGISTRY BY NSI; "PARTICULARLY· WITH .
"RES,PECT TO,-FRENCH TRADEMARKS .ANI) ,;CYBER'-SQUATTING.
HE- SAID IT .
TYPICALL,Y COST FRENCH CORPORATIONS UP TO USD 40 THOUSAND IN LEGl\L · .
. ·. ··.FEES. (IN THE U. S . ) TO RECOvER DOMb_I N !i,AME TRADE ·MARKS LOST TO ·u. S .
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CYBER-SQUATTERS. .· HE URGED THE USG TO TAKE A ·MORE .·
"INTERNATIONALIST" APPROACH TO FORMULATING DNS REFORM POLICY,
ARGUING THAT THE. CURRENT U.S,, APPROACH" ONLY REINFORCED EUROPEAN
CONCERNS ABOU'r U. S . HEGEMONY b'\JER.: THE · INTERNET. .··HE ADVQCATED .A ·
MORE CENTRAL ROLE. ,FOR THE :.INTERNEr SOCIETY . (ISOC) , IN . :I:NTERNET .,
. MANAGEMENT,' NOTING,. THAT ISOC WAS COMPLETELY MARGINALIZED IN THE .
CURRENT.
s . PLAN.
(COMMENT: ·. IN REPLY MAGAZINER NOTED THAT IN
THE u.s.; ·Isoc WAS NOT VIEWED AS BROAPLY REPRESENTATIVE OF ALL
,INTERNET USERS, PAETICULARLY BY COMMERCIAL AND INDOS.TRIAL USERS.
END COMMENT. ) •. OUDET ALSO .RECOMMENDED THAT THE NEW CORPORATION BE .
LOCATED. OUTSIDE THE U.S_-, OR:, .AS AN ALTERNATIVE, . THAT- IT MAINTAIN
SHADOW ROOT . SERVER SYSTEMS -- . WITH·. ALL NECESSARY HARDuARE AND
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SOFTWARE -- IN BOTH EUROPE AND ASIA ..' HE ALSO CALLED FOR u.s.'
ENDORSEMENT OF NEW REGIONAL TLD ;B FOR EUROPE AND ASIA (E.G·.
EU.
FOR EUROPE) .. OUDET SAID THAT ALL' EUROPEAN CHAPTERS OF' ISOC WOULD' .·
MEET IN . BRUSSELS APRIL 21 AND 'WOULD SURELY FOCUS ON· .;THE DNS. REFORM .
PROPOSAL..
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'· ON THE GREEN. PAPER REFLECTED' LEGITIMATE CONCERNs;·· THE u.s~ COULD BE
·F~E~II3LE:. 0~, .MOST._OF- T~Er1 BUT. ¢mJLI). _NO'l'/NOT COr!JC~I)E ·ON THE_ ISSUE OF·.·.. ·
.ESTABLISHING THE. NEW CORPORATION OUTSIDE. THE· .U ;B; , . HE CLARIFIED THE .. · .
u::s. :Pbs:i:'I':toN· As ·:F'oLI.Jows:
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RESPONSIBILITIES- FOR'DNS MANAGEMENT,WOULD BE HANDED OVER TO THE NEW
coRi?OR.ih:·ION IN A MANNER 'coNs±s'I'E:N'T. wrTH: s.TABILITY oF irli:E.. INTERNET.·.
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MANAGING ·rrHErNTERNET Rob.T s:E:RVE:R sYsTEM; R:EcHsr:rE:RtNG :tNTE:RNE'r ·
PROTOCOLS; ALLOCATING NUMBER BLOCKS ·To REGIONAL ·:NuMBERING ·.
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STATE PLEASEPASS USTR FOR DON ABELSON
WHITE HOUSE·ALSO.FOR.MAGAZINER
USDOC FOR NTIA "'" BECKY BURR
-USDOC ALSO·FOR 1000/ITA/UNbERSECRETARY AARON
. USDOC' ALSO FOR '4212/ITA/MAC/EURfMDORSETT ·,
FCC.FOR'INTERNATIONAL/BRETT HAAN AND TECHNOLOGY POLICY/MIKE NELSON
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·VIEWS. ON DOMAIN,. NAME ;MANAGEMENT ·.AND PRIVACY
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D)
PARIS: i082.
:~iii~~~~~:~~1i~!R~~~~~~i5~~~~~r:~~!:TH •.
WOUI.b NOT/NOT. BE' FORCEif·TO ·BRI.NG SUIT n;( U.S. COURTS./. THE USG
. WOULD PROPOSE' A WIPO . STUDY dF ALTERNATIVE DISPUTE RESOLUTION.' .
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TRADEMARK. PROTECTION. AND ALTERNATIVE. DISPUTE RESOLUTION ':MECHANISMS,· .
. :ENstrR:E · TRANSPARENCY 'IN r'ssutN-G oo:MAI:N· NAMEs; AND TAKE APPROPRIATE~ ·
'·'sr,rE:ps· ;ref· PROHIBIT "CYBE:R.:,sQu.;TTiNt.·i:·. THE usG· F'Avo:REip FOR::-~:ROfiT
REGISTRIES· IN ORDER TO STIMULATE INNOVATION .AND EFFICIENCY 1 BUT
RECOGNIZED ADVANTAGES OF NON-PROFIT' REGISTRIES AS WELL.
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.8 ~ .· '(SEU) · MAGAZINER. PRESSEB HIS INTERLocuTORs 'l:'o "TONE' DOWN THE
RHETORicn OF OFFICIAL RES.PONSES TO THE. u.s: GREEN PAPER, NOTING THE ·
. UNNECESSARILY :HA.RSH TONE OF THE INITIAL DRAFT EU RESPONSE, AND
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~~g~TA~~E~~~~,I*~T~~ciN~EE~~~~iH()~R~~~ .RE~~~~. ~oiOUGHT
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.· cbNFRONTAT±o:N, HE SAID.
ALL MAGAziNE:R' ·s INTERLocuToRs coNCURRED
wiTH Tins APPROACH; TRONe .UNDERTOOK T6 EN'sin:m" THAT THE FORMAL :Eu
REPLY TO THE .U.S. PAPER :B:EFLECTED A MORE MEASURED TONE. . (NOTE:
'l'H~ FINAL EU_REPLY WAS. ISSUED TWO DAYS_LATER.AND DID INDEED REFLECT
A .MORJ;: MEASURED TONE .. )
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· FRANCE WILL REVISE PRIVACY RULE·s,
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. ON PRIVACY; TRONC NOTEDCHE IMP~RTANCE' OF THE EU PRIVACY
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PAGE. 06 OF
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DIRECTIVE WHICH, HE 'SAIO, MUST BE TA:f\EN. INTO ACCOUNT AS' WE SEEK
PRAGMATIC SOLUTIONS.
FRENCH LAW IS NOT THE PROBLEM,· HE SAID, THE
. 'EU ;DIRECTIVE IS THE PROBLEM.
TRONC SAID HE· HAD DISCUSSED THE
.
···PRIVACY ISSUE. MARCH .lB.WITHEU COMMISSIONER-BANG~MANN, INCLUDING A
. MUTUAL .RECOGNITION APPROACH. (MRA) AS ·A. POSSIBLE MEANS TO RECONCILE
DIFFEIU.NG· u ~ s. AND EUROPEAN APPROACHES TO DATA PROTECTION'. . :·
.
FRANCE'S.APPROAcH<To DATA:PROTECTION wA.s.sTILLEVOLVING, TRONe .
.. SAID.
PRIME. MINIS1~R JOSPIN WOULO PROPOSE A REVISION OF THE. 1978
LAW. GOVERNING FRENCH DATA PROTECTION BY THE END OF THE SUMMER,
..
:~~~~T~~ ~~~p~~~~~T·B$NA~~~~i~~~~~~~AL:p~~~EIJ~g=i~~~R sg?~;r~;·
BRAIBANT. ,. (NOTE: 'LORENTZ ALSO RAISED THE ISSUE OF<A DATA '
PRO'I'ECTIO}J MRA AND ASKED FOR U .' S. VIEWS •oN HOW SUCH AN. APPROACH ·
GUY
WOULD ,BE APPLI_ED IN PRACTICE,-)
csl31n·· ·TRbNc sA.rb THAT :FRANCE's APPRoAcH' To DATA :PRoTECTION.
WOULD EVOLVE. TOWARD .·A1-J -~X-POST REGULATORY REGIME _FROM THE CURRENT
(CUM13ER$0ME, SEE R,EF D), EX'-'ANTE ,REGIME ADMINISTERED BY 'THE STATE
PRIVACY BOARD (CNIL) . . TRONC SAID ·THAT·.FRANCEWOULD SEEK TO LAUNCH
. ' INTRA::.. EU. DISCUSSIONS. THIS . SuMMER AIMED' AT FINDING NEW APPROACHES. TO'
.· DATA :,PROTECTION, ··BASED dN THE ·BRAIBANT REPORT; 'OTE: THE ·.. •' . '. .
· · :Em:A.rBANT ·REPORT ·wAs ·coMPLETED. :MAR.cH '3 , . IT HAs· No'r YET BEEN RELEASED
:. TO·.THE. PUBLIC .•• :GENERAL INFORMATION ON THE REPORT ·CAN BE 'FOUND AT
·• 10. · .·
•· ·-~~-~~~~f~~~~~~S~E~~~ci~~ .· T~~~~~~~~Eo~1~~~~:~~i~~~i~~g~I~ONS 'Tp
PRIVACYWITH.TECHNOLOGICAL ADVANCESANb.PROMOTION OF ECONOMIC
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·.·PRIVACY PRINCIPLES-.<.OUR·APPROACHES DIFFEREDMAil'JI:.Y IN TERMS OF ..
ENFORCEMENT, ·WITH THE u ~s·. FAVORING Jill· INDUSTRY -LED APPROACH AND
. FRANCE·. (AND EUROPE) FAVORING'·STATE-,-LED ENFORCEMENT. ' HE SAID HE HAD.
. HAP .GOOD 'TALKEi< ON TilE . PRIVACY ISS~E WITH TH•E. _EU COM,MISSI_ON AND> .· ...
PRESSED FOR A ~ESOLUTION OJ:i' THE ISSUE B¥ JUNE ,19 9 8. .
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FOREIGN MINISTRY oFFrciA.Lis :Focm~mn_· oN :PRoCEDlJRAL 1IssuEs ·
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12 . . (U) .· MAGAZINER' S DIUSSION WITH--FOREIGN MINISTRY .U/S CLAUDE
·.MARTIN FOCUSEON THE AREAS'OF COMPETENCY OF RELEVANT INTERNATIONAL.
· oR.GANTZA:TtoN's-- FOR EL-ECTRONIC c'o:M:ME:RcE IssuEs. ··MARTIN SAID HE HAD ·
·MET. WITH wTO CHAIRMAN .RUGGIERO MARCH 18 .AND. SENSED ·THAT' THE WTO WAS
ANXIOPS ·To ENGAGE FULLY ON E..:COMMERCE ISSUES.; HE WONDERED IF THERE
WAS GROWING 'COMPETITION BETwEEN MULTILATERAL. BODIES IN THIS AREA:..
ON FISCAL ISSUES,· HE NOTED THE .DIFFICULTY OF CLASSIFYING ELECTRONIC
TRANSACTIONS AS GOODS OR SERVICES.. MARTIN RAISED THE UPCOMING QECD
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STATE ALSO FOR EB/CIP WEINSCHE~
EUR/WE STATE PLEASE PASS.USTR FOR.DON ABELSON
WHITE. ··HOUSE ALSO FOR MAGAZINER ... ··.
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USDOC FOR NTIA - BECKY BURR
USDOCALSO FOR 1000/ITA/UNDERSECRETARYAARON
USDOC ALSO FOR 4212/ITA/MAC/EUR/MDORSETT
.·Fcc FOR INTERNAT:i:oNAL/BR.ErT HA:AN AND TECHNOLOGY ·PotrcY/MIKE NELSoN
·. BRUSSELS F,'OR COLIN HELMER
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TAGS:. ECPS~ EINT; ETRD,· EuN, FR
·suBJECT: ELECTRONIC COMMERCE: IRA MAGAZINER HEARS FURTHER FRENCH
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. VIEWS. ON DOMAI.N NAME MANAGEMENT AND PRIVACY
REF: A) PARIS 5846 .· B)· -STATE. 34000
C)
PARIS 3938
D)
PARIS 10S2
.. MINISTERIAL.· IN- OTTAWA (OCTOBER 1998') AND ASKED WHAT. WERE U.S.
OBJECTIVES .FOR THE CONFERENCE~
MARTIN STRESSED THE IMPORTANCE
INCLUDING CHINA AND DEVELOPING COUNTRIES IN/ MULTILATERAL ·.· . .
. 'DISCUSSIONS OF ELECTRONIC COMMERCE AND INTERNET "'S9UES .
OF.·
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(SBU) •. IN REPiY MAGA.ZINER OUTLINED THE (3ENERAL DIVISION OF
LABOR· BETWEEN INTERNATIONAL ORGANiZATIONS ON ELECTRONIC COMMERCE
~- ISSUES; INCLUDING THE~ WTO (IMPORT .DUTIES/TARIFFS)
THE OECD.
<:norms TIC. TlJms; ·-· PRIVAGY);
THE wrpo :. '(.TRAD.E:MARI<s, . IPR) .· HE .. _.· .- ·
· ~0~$1) THAT. l:)EVEJ:JOPING. (:OUNTRIES COULD BE EA.SII.N ASSOCIATED WITH .
· OECD DISCUSSIONS . . ON THE OTTAWA CONFERENCE, HE SAID THE USG WOULD
SEEK;TO·FOCUS·DISCUSSION ONTAXATION(INCLUDING AN'ENDORSEMENT'OF .
. co:MMoN PRINc'fPLEE;), ANALYSis: (0F ~~m soci·o~:EcoN'oM:Ic IMPAC-T. op: ·
ELECTRONIC COMMERCE) I AND PRIVACY (TO INCLUDE PRIVATE SECTOR
PART:Icii?ATIQN) .· .·.--. .
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. 14 . . .(SBU) .·'COMMENT .. MAGAZINER MET ALL .THE· KEY PLAYERS ON .FRENCH:.·
-:E;...:cOMMERCE ·-POLICY DLJRING HIS VISIT TO PARIS; · IN TERMS OF INFLUENcE·
0~- T!iE SU:13~-rANTIVE ISSlJES HE .COULD. NOT HAVE BEE,_N RECEIVED /I.T A , . .HIGHER' LEVEIJ.
THE 'FRENCH" CLEARLY SEE A CONVERGENCE .OF VIEWS AND
. INTERESTS. ON MANY 'ELECTRONIC COMMERCE ISSUES, INCLUDING. PRIVACY.·.
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. :THEY HAVE ,COMPLETED THE NECESSARY CONCEPTUAL SPADEWORK (E.G.
THE.
LOCNTZ.REPORTON E~COMMERCE·AND:THE BRAIBANT REPORT ON DATA
'':PRdi'ECTION) .AND ARE NOW PREPARED TO MOVE FORWARD IN INTERNATIONAL
DISCUSSIONS . . JUNE MAY BE AN OPPORTUNE TIME FRAME FOR-REACHING
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1 AGRJ~::EMENT · oN co:MMoN PRINCIPLES WHICH cotJ:LD PAVE THE WAY FOR. BROADER
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THE FRENCH HAVE TWO CLEAR .OBJECTIONS TO OUR PROPOSAL. ·. ON PROCESS
THEY OBJECT TO OUR "UNILATERAL" APPROACH; THEY ARGUE THAT
CONSULTATIONS DO NOT EQUAL.NEGOriATIONS.
IN' THE FINAL ANALYSIS,
THAT CONFLICT IS PROBABLY UNAVOIDABLE Bt:J'T NOT INSURMOUNTABLE.
SOME
OF THOSE CONCERNS MAY BE MET-BY-ORGANIZING BROADER POLITICAL LEVEL·
DiscussiONS PRIOR TO ·FoRMAL ESTABLISHMENT OF THE NEW '·coRpORATION, . ·
.PERHAPS . LINKED TO ELECTIONS OF BOARD . MEMBERS BY CONSTITUENT '· ._ .
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· STAKEHOLDER GROUPS . · -·ON THE SQ~_ STANTIVE I.§._ ~UE OF_· U ~ S . LEGAL. .
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. JURISDICTION OVER THE' NEW CORPORATION; P.RIVATE-SECTOR REGISTRIES;
. AND INEVITABLE TRADEMARK DISPUTES:, . IT WILL BE IMPOB.TANT TO FIND .
. PRACTICAL SOLUTIONS,.. SUCH AS ALTERNATIVE. DISPUTE RESOLUTION . .
MECHANISMS . (PERHAPS LINKED TO WIPO AGREE.MENTS) .
THE KEY ISSUE FOR
THE FRENCH WILL-BE DETERMINING WHAT COURT SYSTEM HAS JURISDICTION
OVER A DISPUTE BETWEEN A U.S. NATIONAL AND A FOREIGN (E.G. , FRENCH)
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1'RADEMARK HOLDER ..
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-(U). -THIS _CABLE WAS :cLEARED BY IRA MAGAZINER.
···ROHATYN ..
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UNCLASSIFIED
�Subject= .follow up with lorentz nnd boujnah 4f6/98
Date: Mon~ 06 Apr1998 23:53:51 +0200
·
·. From: Thomas Marten <marten@club-inten1et.fr>
· To:: Ira Magaziner.<fra_~C ...Magaziner@oa.eop:gov> ·
mr. roagaziner,
i met with frnncis lor.entz and stephaile b6ujnilh today (4/6/98) :to follow
up on. your meeting t.wo.:weeks ago wi t.h -dominique stota;;:ss-kahn (dsk) .
hare .is the g.i.st ,of the two meetings:
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lorentz said the qof was ready to 'p:r.oc::eed ·with ,preparation of a. Jo~nt
. declaratic!"! 'to'!: the tospin vj_P-:lt.
the fre~ch side wi11. need 10..;1.s days·.
to· get :organizo::d.
lbrenu wi .1~1 ,see dsk ne:-tt \Yeek a:nd will be fn:r.mnl1y \.
named e-commerc~ c::7..;i_r, 1:.hro.t:.ah i999 .. he would .lead b.U.ate.rals.· ·he
.
propos~s a Hrst. round of f~·ll-del face .to fac<"! talks in washington may
4-5 (he td 11 be there ari;r,.ay· attending e~n economic· strateqy insti tui:e
roundtable; discussion on the .sor.h anniversary of the gatt- on 5/5); and a
·second· round in' p8rfs in ~a.r.Ly june. he· said he c<~n gF.:t bis team wo:d:lng·. ·
on a. draft stat.eme'nt. soon after his me€ting 'wit.h (i.!;k; he. agreed it would
be val~abl~ if each ~ide had drafts· ready for ~h~ mRy m~~ting.
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, on the siJhsta·nt'ive. issues, he. agrli!ed wi.th O.llr .Jist (digital siqnatures,.
co~.simter protection, privaty, fiscal issues) and approach (tdent.ffy .
areas· of <~gret!ment,/tii. .sagree~en~; define a road map f('i:r. resolving '
··differences and/"r enacting gJ,obal agreement:~: 1.n appropriate
.· . :i.nt.ernational· fora);· he. offered t.he followiriq CO!T1!nents on P.aCh issue
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. ···)-. -n:zcal issues: big problem on the. impart d.ut:.y/wto ·side is
culture;· french \/iew.·transmissions as services;· i:hts i~·.a ."i:ninefieJ.d" in
frap.ce . . or: dprr.est.i.c t?.Y.es' (vat,' ~ales tax), it. should. be easy to>
on .principJ es '(neutrality), iritplementatio:tf will ':be a "technical''
.
probj,eni'. he. aske.d if we' ~o[id any more ideas about' using tinancial/e,-tomm .
intei:meciiaries. to 'collect··taxes". . sei:vices/cu:Ltuie will also be a
'•pr6blem 'tor dom,e~'tic taxe-;; .•. ; ·
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agree
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•. · . . -::,.: d~g'i.t~i ~ignatur~s: any bilater~l statement t'fou:id be in
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. coinp~ti tion· wit:h an· eu di ~ecti ve which. i~ hearArig c.ornple.tj,on; .i. t i.r.ould
be fortuitous i f the,.eu directive cou~d serve as a ·basis for bilateral
· agr~eme.nt,.
,i_sabt:;!1le falque ptt':r:rotin; adrninist.rati'{e' law judge .at the
_cgris.eil ~.·¢tat ·(arid author of... an internet iepor,t under. the previous
cente.tlrig~t jupp~ government) is the. lead person )ri go:f on thi3 issue.
she will b¢ in' the .sta't,e,sfor two _weeks over. easter.
~·..;· pri~ac): ' t:his is the rnos't t roubJ esorrie issue because it is the
:·one the·· e.LI' commi~s·ion
most· engaged on~· . we ·cottid agree· on
applidibil1ty of. oe.cd phnciples; problem
i1Tlplcrrie'ntat~on,
the eu
prog:i:am .is· c;ie,ar {i,e. s.tate-~un privacy boardS)). it' niight be usefui if·
· t'h~ u~ s.. c.ould present its. proposal for irtiplementatioii/i.ndustry.
se'lf-<regulation; . such a presentation could perhaps form the basis for.
··is
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consumer protecti~n:, we could agree on the principle of which
·party's law applied· (in his viP.w, it would be the buyer is laws).· he
noted o@cd'was working'on this but thought wto might be a·better forum.
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"social" issues. such .as edu'ca.t:i.on., development,·or cultur::e.
that said,
. he thought fi~ding a SU:i.l:A.ble statement ab~ut, COOpera,ti~n With respect
to third. worJd development could be pr-oblematic, and culture probably
· .belonged: in the preambulatory paragraphs on what's at !';take with· the,
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internet and .e-comrn~rce (e.g.· "int.i?.rnet is an important factor for
glob;;rl promoting cu)t1lri'll di.vers"it.y and uni:tihg peoples who sha:re--"
common .lanquaqe"); he· wondered if i,t w·asn' t too soon t.rr t.n 1 k about
infrastructure development .(intenet I I , b."lckbo!")~);
on domain names, he
not.edt that t.hi.s would probably be
done deal' by june' (at. least in terms
of u .. s. regs), -:..ih:ic.h would send a bad :::;ianal about the "uni,:ersaJity"of
th'e internet; b,e liked. t.ron(;' s idea of organizing an ''international' . '
conference" b~for-e t.he fall- and establi:.shment of the "new c:o~porati.on,"
perh~p~ linked to electio~ of reqion~i representatives.
a
final not.;:
lorcr:tz ~;,~id it was important that th~ ~·joint declaration
not just identify areas of agreement wher.e we can work thing~ a~t'; it
should also identify a!'eas where we have substanti.ve differences due to
d.i.fferfng. M.st.orical tn.ditions; areas where we ·agree to disagree.
·at:rti.Ospheric~:
.meeting WaS one-on-one, VP..ry relaxed and interactive.
lorent.-i was curious about u.s. bureaucratics: how much lonqi:r you'd be
working the· issue (my sense is he wants to work with ym1) ·'·. lvhat was .
david aaron's. tole (whom he ffi€'t in washington), whtcl1 eJgencies/officlals
had lead on various issues.
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boujnah meeting, on the other hand, was relaxed but somewhat. formaL.·
boujnah read from ·prepared. note.s ·.which he said reflected ant;t
"interagen<::y ·cleared" posi-cion. '~ colleague from the bREE •
.(ust.r-"equivalent, another part of. dsk's .emp.i.re) took notes.
he had
clearly coordinated with lorentz,. probably· includ.i.ng a .r::ead-out on our·
meeting as i. made my way by subway to Bercy.
(whereas lorentz ask.ed me
what our views. '-iere On content ·of a JOint stat~rri~nt: ari.d reacted thereto, .
boujnah lal.d out a. cleared version of what the gof. thought should be in
the statement:).
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·using almost t.he same J;anguage as loreiitz, bouj'nah said the gof wanted
to fol],c:iw up with joint declaration fc;->t jospin visit; hut gof ;actions
must. t.e~ ke Ln.t.CJ ;;-=:r:cm1t t.he eu process; nc to.o sti:es.sed. ·the: need fn r- ·
discr'etion · i3nd conffdent.i.ality to a_void mention.in .the p:r,ess ·of a:
bi1ateral "working group.·" in;;tead, he proposed that we ·spe'a.k of.
intensified, infcJ:inal consultations aimed at identifying areas of
converqen~~ and divergence. o.f vi.e~s on subst:antbr~' 1 ssues' .. (o.n a
p~rsonal·~note, .he said thatas the french de'epened th~ir analysts of
e..:.commeice issues through
lorentz report and the~ policy mernorandtim, .
.. .
.
. more and more areas of convergence appeared:),
the
ou~ .objec\iv.e.' should be ~ two paqe -joint declaz:a.ti.on o.n j~nfc:r.:ma:tion ·
~technology which wouJ.d . .i.nclude _4-5 paragraphs on electronic corninerce
(thj.s sounds· one page longer than previously enviSioned by the fr.ench, i
guess to take int.o <'~t::r.(')unt "matt'qon" issuEs,, i.e. social issues).··
e:-comrnetce paragraphs· would in;l\lde the fa.llawinq:: ·
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-- para orie: outline. what's at stake i.n terms
economic; growth
.and'jobs; language could.be borrowed from the bonn declaration, the.
us-eu summ.H. st.at,@.ment, or the french policy memorandum ... (note:
lorentz had cautioned against t.OO much. empb.asi.~ Ot'l r:osy numbers and
recommended more. of a focus on social issues and/or cul:t:.ure in this·
section)
para two:
/
enumerate common princip~es
para three: identify areas of polic:y convergence/shared
intep~sts, such as fiscal issue~ Che meant domestic· taxe.s, not ta.riffs),
elec.tronic contracts, . consumer pr.ctecti on, network security, illicit
c_onte;nt, and digital signature$ (he also noted the timetable problem .
related to the eu di recti vel
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, para four: ·identify artas of di;;rer:-7ence, wh'=!.i:--:- "we' ag.cee to
disagree;" privacy (u.s. self:-requla ti(jn appro.J.ch ._."lhd, europc.:1n ;o:tate led
·app-~~ach), cultur-al aspects,_ custom~_ duties,'
-- para· fiVE:
lay 0llt a road rfi.!Jp for prog.te£S on issues:
inclt.lding
process and th~ oecd ministerial in ottawa; we_ should
~tidorsement~of principles tha~ w~·p¢ree on in 6ttaw~.
men~i~n of ~he eu
s~ek be~d
in terms of ~timing, boujnah said that-with:Ln the ,next ten'ctays the ·gof
·WOUld announce (:Oflc:rete pol_i cy rr>.eastlres to implement recommend~tions in
'"theloreritz repo'r.t (th-=- famoiJs-'"12 recorn1rfendations") and would <"llso name
lorentz fcrmall y as e-co!rrne..:-cc- c·~a r. ·_.he .too sugges.tcd a meetinq ih'
. early may in _washington .and' ear_ly june in paris to .finalize the text ofthe joint dec:lcration. -·- -
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that IS all . We rari OUt Of tim;:- 50 i "-'aSn t able tO. CrOSS' CXamin~
boujnah on _some
t.he n:ew wrinkles in their-propos,~l. such <is what
_corrirnong principl:es he_ meant. iri para ti.to (it wouldn't be hard to guess),
~nd ·the ret"e'rer:ice to cultural_ i'ssue-.5 in para four. w.e agreed to get
back t.og~ther again after i heard from you as· to. 'whether washington .
. ·.wanted· to work on. a joint statem~nt fo.r th-= "jospin _visit or not. . he
seemed' very optiin.istic;' he noted that dsk is trip to siliC::on valiey in.
l#ltP. may is offici.al.
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a couple personal impressions.:
it took'rne ,a while .to geti~ to see
lore\ltZ and boujnah. my Seris~ i-S th,:it c;is:k WaS "free lancing'' when he
discussed the j ospin vi sit with you; i think :the quai rforeign minis try)
was parhcularly m.i ffec:i becaus~ they h~d not been fully briefed by '
. elther .mat:ignon or bercy before th_~l.r. breakfast with yo).l.. . now there
·: .ts clearly an interagency consensus and theyire' ready t<:) move.
lorentz
:was ve~y thoughtful about the, fssues . .ind- SeE>.tned. jji_tent on £ind.ing
concrete sol ufions; b{lt i' think t~hl;!n- :he· referrl?.d 'td ":rriine.fielcts .. and
probiein' area~ he_' was being very.candid._ .· .·
: .-.... .•. . . .
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t._he 1.1st' of ,.·a.:rea.!:; of converg.cnce an:i diver_qemC:e f.i:oin l:ioujn.~h was\
basic::ally ·ari int.eragericy-p.roduc:ed, list. of :issues ·the bureau,c.raci~s are,
p:z::epa.te_d to deal On, 'at one point :bolijf1C:Jh- ev~n said We should harn'E!SS·
the dsk-magaiiner momerytum .to acccmplish more: . having lo'rentz in the
,_driver ·seat. may make ·that PO.!:;Sibl-e: __ he.~,s veiy 8me~r.t and, .. very respected
and .good ···. gene! rating c,onsen.sus. he.re. ~ith the french elites.
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PROG 03/31/98
·. emin:jrnedeiros
. econ: tarnarteri .
econ: drnccarthy; .sci: brock
ecnX·
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, . AMEMBASSY PAR~[S
' secs:tate washd,c ,,. priority
.. INFO white·· house washdc, . priority·
usdoc-washdc
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.fcc' washdc.
all european unl:on post coll~ctive ''
state also for .eb/cip weinschenk and eurjwe
state plea~e pa~s ust~ for don abel~on
white house· a~s·o for magaziner
usdoi::::. for ritia - becky burr.
usdoc also for 1000/ita/undersecretary aaron
usdoc also· for . :421.2/ita/mac/eur/mdorsett . . .
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fcc .for :international/brett. haan arid t'echnology policy/mike· nelson.·
b;r:uss·els. for co.lin helmer .·
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.TA,¢s: ecps, eif1t:~. etrd.·,, eun, f;.
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.·.·SUBJECT.: electro:nic ~cc>ni.I[\erce:: ira. magaziner hears .f:urther fren~h ·
views Oil domain riame management arid. privacy ,
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R~F: a) .:Paris Sf346 b) .. state 340 00
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3938 • ·d)
.1. . (U) ... sutnmaty. ·.during t:wo days of meetings in paris (march 1:9 ..
.·. 20) seniOr whit.e. house advi'sor' for' policy ira rnagazirier. defended.
·the ·usg' s. proposal for. refqrmirig internet. dqmain name system (dnsJ
man(;\gemeilt: ;, .
a~Jcilowledg~ed. legitl,mate french concerns with
resp¢·ct .. • to ·. the •. composition ·,of the · . boarci . of ..· directOrE! .c)f, 'the.
proposed ·11new corporat~OI1 11 wJiichwouldbe createdj:o manage the n~w
dns; ··and with u.s.' legal jurisdiction oyer trademark.disputes·
. r¢1~ted' tci'do~iil I1.ames.· ··magazi,ner _stressed, however; that_ ·th~? usg
could. not/m".t compromise on the principle that the new cbrporation
. would be u.s. -based.
gof· officials agreed to help tone dOWI'l the
negative r,hetoric in official rea~tions to the u. $. proposal. th~y
::P.re\ssed for international, politicaT level. 'talks in •aav,a~c~ .9~ ·
f6~al l~u,I'lc,hiil~. ~f ti;e :·new coryoration in the. fal~.~- · qn· 7~¢·
· pr~vacy ~ssue, gof off~cJ.als, acknowledged general· agre.~tn,~I1t :w:~.~h.:
the u.s .. on data protection principles and so:~.+ght p:r;~ctid~:l. ·. ·
·. soiutions to: deal with differing u.·s. and european en:E9rd;!rn~nf .•
mechanisms. ·.they said that france would seek to re:Eorm fl:enc:h . .in9 ··
europe?ln approaches to data privacy in· the corning months_:· · ~n~
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CLINTON liB~RY PHOTOCOPY
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senior whit~ house ·advisor for policy ira magaziner. met
with gof' offici'als march 19 and 2o to discuss the· usg's proposal
.for re;!fC?rming 'i'nternet' domain: name system (dns) '• management .. and
ipternet. -·privacy i~sues. · t:nagaziner met· prime· min;Lster j ospints
'inf6-'tech '.,·advisor 'j'ean.:.noel' tronc (and matignon, legal advisor'
Robert Gel~i) ; ·foreign: ministry u/s-equivalent for .economic and
~uropean a·ffairs claude martin (accompanied by foreign· ministry ·
.. officials ·yves. charpenf:.ier michel -filhol; and aurelie lapidus) ; ·
french e'-commerce. czar . francis lorentz (and .info-tech advisor··
· gilies bauche) i and french internet society (isoc) presi'demt· bi:uno ·
· 'oudet ·. magaziner also. exchanged: views on electronic commerce with
.. th.E: .u~ s. business community (arncham) and held a .press conference
'with' f'ren:ch' journalists .•.•.. e~as~y teleco.ms officer- ·accompanied' '
rnagaziner to all meetings; minister counselor. for economic affairs
· 'john medeiros and .f3C~ence Counselor bud rock jpined rnagaziner for
relevahj: .calls~ .. \ magaziner' S .. meeting y,i'ith . finance . minister ·..·
domipique strauss-kahn f.ocused.on. the upco~ing visit to :washing.ton
..·.by. ~re'n<:h pri~e' minister josf:>in 9-nd. i~. repott,ed. .sep~e1. · . ·...
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2. · ·· (u)
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P:rime
.Min±ster'·s office seeks political level talks ori domain names
: ~·~·:-::~.;. ._·_. ..;.:_.- -··- -~·.:.·:_·.~..;.. -.:.....~ -·-·-<-_-·-.~.·~·-·-·.-·~~~-.~·..::_ :...-'../_::.:.~·~:-:.-.-·- ... -;~- ~- ~.-·~- _· -·- ~- ..;.·~;..:..'
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. 3·.· ; (u) prime ministe'r j'ospin 8. in~~~tech ~'advisor j e.an.:.noel 'trbn~
.. 'focus~d on' two issues ·.during J'iis mar.c:h '19 di's_cussion' with
.rnagazirter: ..reform. of~ the' internE;!t ,domain name system' (dns) i ' and'
· prive!<:Y. ·. .t;ronc rioted that h.~ had coi1stilted,.wide1y ·Ol}. ·these issue@
. including ·a. 'fet>rua!:y meeting with :ntia/becq .burr in paris ('ref 'c)
..and a 'march 18, meeting ?tit~ EU commissioner bangernarin iri. brussels ..
on fuis refc::>rm, tronc ticked ·off familiar fr·ench: o:;:,j ections to· the
u ~ 8 .· n green' paper: '·'
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teleco~i..tiilc.ations.
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reference to the. international :
uriiori . (i tu)
menio;randum. of \inderstand,ing (al~hough t:fdnc said he understood u~ s.
relt1ctance to entrust· dns management to the itu) 'i ·· ·
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~- no rnetitioti o'f discussions in the· worlcf irttellectual prC,perty
orgapization {wip6) a:nd a pot~ntiaily serious ·lack of adequate .
trademark protection, particularly for non.:.u. s. trademark. holqers;'
'trqtlc ·. noted the current .·. system failed, to provide adf;!quate
protections arid c:tsked, if exis~·:lng. "v:i_olat:lons" of trademarks wo1.1lc;l
.be corrected or."grandfathered" into'the :he~rdns management sy~tF.!Jl};·'·
conce~h.
privat~, c6mpe~~1;i;~
·about the . status; of 'future
registr-ars .. and registri~fl' . which would succeed
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· monopolies· managed by the internet assigned numbers authority
-ciana) and network solutions incorporated (risi) ; t:tonc wondered i (
turning over management of_domain name data.bases to a still non;..
existent organizat.ion woUld destabiliz~ the' i~t.ernet; he suggested
that hon:-'profit regi:st:ties might provide,-better coordination of dns.
issues;
-:--' rnaint~n,ance .. of.· . national• control over country-code top .leVel
doma~ris.
·:fr) . .
(e·.g. ·;
.·-.·
{sbu) . tronc acknowledged that p~actical solutions could be
found. to address all the above "technical" issues.
he noted, .
howeve·r, · chat internet was a. victim. of i-ts .own success, and had
become· a glpbal phenomenon of. strat~gic interest to frimce, t_pe ·
·u.s .. ·and· the world .. ·-.- t:ionc implicitly acc'epted the mid-april'
deadline for' fina'!izing of the u.s. paper, bUt. urged that. the. u.s. ·
consider ."formal, :political-level talks 11 during the iummer of 1998,'
prior to. formal :establishmen,t of the' new corpb~ation .. he said that·· .
. holding ,_such talks would, make it.· easier for france. (ind europe to.
ac~ept a u.s. ':'bas~d. entity subj'ect to'u. El· laws. with r¢spons:Lbili ty ·
.. for managing the. global'.internetdomai~;nam~.·~yst_em: '
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'in ~ ~~parate meet:ing march 19, fr~·hch e~c-omme:L~e czar
francis .lorent:z pressed :rnagaziner hard on the geographical location /
,,: ¢f the. new corpora·tiC)n-' 9 headquarters'. . ,.he noted .. tha_t with the
. rapid, growth of data transmissions via· the' internet,· . the new'
co:l;po:ration would quickly eclipse .the geneva-based.itu a~ th.e lead .
il}.ternationaf telecommunications 'body.' .· he· ur9Ei9. - magazir1er ·t·o
_·, · consider holding:board met:t:ings .of_ the_ new. corporatioii. in' ge:neva;
re·gardl'ess o'f ·the loca-tion Of -its technical operations,·. in:order to
meet eur.opeari. demands for·· a t'ruly . intern,ationaL dns management
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ip._ a separate' meeting march '2 o, f:r:ench- i'nt:erne~ spciety, ·.
president._ bruno oudet stressed·· the·. practical problems cre;3.ted ·by
. poor ,management of the ".·com 11 registry by ns.i, particularly with
-)·respeGt· ,to. french trademarks_ . ·and ''cyber:..squatting~." .···l1e .·said it -··
. typically cos~ french C,6i"Po!ations up to usd: 40 thousand ~n: leg_al'
fees (in 'the .\L s ~) to recbver domain name trade marks lost to u. s ._
cyper..:sqliatters.
_ hE! . urged . the
usg . to
take . a
more
·"internationalist~~ approach· to fo:r;:mulating . dns -. refo_i-rn policy, ·
arguing that the currEint u.s. .approach oply reinforced .european
concerns about u.s·~ · h¢gernony over the internet . -he advocated a
more central role for the internet . society (isoc) ·. i!l.. intern.e:t ' ,,
· management-, noting . that isoc was completely· marginalized ·in th~ ..··current u~ s. pian.
(c6mmen~:
in. reply; m?lgaziner not'ed that i:n, ·
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UNCLASSIFIED
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, CLINTON LIBRARY PHOTOCOPY
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the u.·s.·,' isoc was not viewed .q,s btoadly rep:r:esentative .. of all
internet users, partiCularly by cornmerciCJ,l and indu.strial· us.ers.
end comment'.) oudet also recommended that the new corporation be . ·
located outside -the ··u.s;, or, as an alternative, that it maintain'
shadow · root server systems· ·. -:- with all necessary hardwa:re a,n:d ·
·software . ..:_ in bo~h europe and asia.
he aiso 'called for u.·s~
~I1d¢rsement of new regional tld 1 s for europe arid as~a (e .. g., . eu ,
for. europe)· .... oudet said that . all -european chapters of isoc ~ould
mee!t in l::>ru€=JSels april 21 and would surely focus on the. dna reform
proposal~·
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in reply, 'magaziner ·said that many of 'the french comments
on t~e green paper reflected.leg.itimate. concernsi the u.s. could be
·flexible on most.of'them but could not/not concede on the issue-of
es'tablishing the ·new corporation outside t:.he u.s.· he cla:tifi!3d the
u~s. position as follows:
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~- the. usg' s top priorities ih dna reform are maintaining' stability . .
the
in.tern¢1;: ·.· and·.· . priyatization;
usg ... authorities arid,
of.
. responsibilities . fo;t' .dn:s management would.he }ianded ov~r tb. the n¢w ·
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. corporation in a mariner consiste·nt with' stability of the i~t'ernet.
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: -- these resp0n13ibilitie~ WOUld incl,.ude many Of the•, ftiricJ.ibns;
.· CUrl':'~Iltiy Ca-:Cr~it;q OUt• Urlde.r. COntfact~·.fOr the USg by: :nf?i arid. iaria 1
inc::luciii19· mariaging t1d data bas'es (i.·e., ·.com/ :rtet~ .'o:t::g);:
rrai1~9ii19 . t;;he, int~:I:'Ilet :root . ser:ver systemi . reg~sterlng irit.~rnet;:.
protocolsr . allocating. number ··blocks to regional .nurt1Peririg.
atitl:J.briti~s .in NprtJr Amt:!riqa .(ar~n) 1 Asi~1 (apnic)
arid :E\lrope ·
:(ripe)!;- and .'sett~ng .. · tld. ·•·. p<:)licy (e~g., creation· of · new: tld'.sJ . :
. Mag!=tZiner said the .usg Waf3. leaning .tOWr;lrd not/riot creat;Lng any
·. tld' s ·before .est$.qli9ht'!le!lt of the new c9rporati¢n.
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. b6ar.d' of. direct drs whose members . would ~represent internet s'tak,eholders, ' including . 7 . f.epresentatives of· user. groups. O::>o~h
commercial and rion:..prof·;it ~· who could be nominated ·.c?n . a 'regi9nal, .. ·
· basis) 1 and . 7 representatives' Of the: irite'rnational .technical
.· ·. corq.mu11i ty .. U.nter~et arch:i tect\lr~ b9ar.d, ·. internet eng:ineering tai:ik
force) and . regional . numbering authorities.. . he noted that ) a·s
dE;Ve'lopi.n,g COuntries · j:oiried. the global, internet COffirrit.lnity 1 bqa;i4
. membership could'' be adjusted .. to··.fnclude t::epniseritatives' of· . afl;ic;:;."
. and latin. america. ' .
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Enforcement of trade_mark protectiqn would be in conformance with
· WlPO principles and practice:. trademark holders would be c:ibl~ ·to .. ·
. bring. suit. against infringers in their own national courts i . they
would not/not 'be forced to bring stii t in u.s. courts..
the usg
. would propose a wipo study .. of . alternati.Je dispute resolution
mechanisms. the new corporation could decide how to .handle curre_rit
cases of tragemark infringement when it. assumed responsibility for .
dna management .. ·
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domai~ name registries would be required to prc:rvide adequate
~.trac3.ernark
prqtecti_on'and altei-nativE? dispute resolution mechanisms',
ensure transparency in' i,ssuing :domain names, and t.ake approp·riate
steps to protJ_ibit 11 C.yber-squatting. ,. ' . the usg· favor-ed> for:-profit
registries in order to 'stimulate .innovation and efficiency but
recogni·zed advantages of no:n-:PrOfit ~egfstries a~ wel~ ...
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8 .· . .·.(shu) < m~ga:dner pressed his :Lnterlocuto::Cs. to _ tone. down .the· .
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. rhetoriC ·<0f official responses to the u.s. green paper, noting .the. •
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unnecessaz:-ily harsh' t~me of t:he. 'initial. d:rCJ.ft eu _re_spon,se i. and ..
.rec;:ent;: .ad hominen1 attacks iri the·· •french press..
the u.s· sought ·
bi·oad agre·emei1t with france . and europe. on dns. refortl}~ Ildt
.· c:onfrontat.ion 1 he said~
'all :magaziner's interlocutprs concurred.· .
. Wi'th t}1is i appr9~ch; tronc t;nder1::0oK. ·tO· ensure t:hat _the. Jcrm~l~ ¢u
. reply:to ~he u .. s. paper :reflected a· more mea.sured :to11e. · · (note:·
the f:Fnal eu reply· \olaS issued twO days later and did· i!ldeed.r.eflec-t:
a ·more· m~asl.lred . tpne;.)
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9: . . ·(U} 0ri I?~i. V~ciy 1 tronc, < Il~ted J:he itnP,OrtanC~ Of the: eu; privacy
·... direc't'ive -wh.fch.,
said, must be '-takeil irito ·account' as: :we: :s'eek .....
· ·. · pragrriat. ic solutions,. fre!lch. law is not' the. p:f:qblem, he s~lid, the~
eu, direet:iive: is the pro})l~m., _.· trcmq ',said he· had disc'usE;·e.ci fb.e ·
privacy issue rnarck 18 with . eu ,.corrirnissioil~r bang~manil, *ncl~ding
>:
rnu~ual recogi'lition approach--. (qrra) as_ a .pa·s~ible meanE; to·. reconcile
.·differing·· .u.s, .. and european_ app:roache~ . to data .protection~
france's approa.ch.·to datapro.tection W.9_S. still evolvi.ng,_ . ··troric·
said~ . pr:lm~ minister jbspirr would propose a. revision of the i~ns
. law governing french da~a protection by the end o.f the sutnmer,·
. based _on the _report on "personal data and the infortnatio:p. .society••, . ···
· . rE!.ce:nt+y (:6mpleted by adtninisti'ative.1awjudge ·(const:!iller d'et(;lt).: ·
guy. braibant. . (note! . lorentz.. alSO. raised. t}H~ iS)S.Ue of a', dat~ ..
p:r;-otectipn mra and. asked· for u ~ s. views :on how such- an · approaclj
. would be applied in practice. r
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(~bu). 'ttonc ~aid that fiarice's. approach to data-prqte~tiofi
would. evQlve.toward an ex-post regulatory ·r~;g'ime from the·cu:r;tent
(cumbersome; . see ref··-d) ·ex..:. ante regime administered. by the state .
. priyacy bo~rd <C:nfl) . tronc said th:at france woulti' seek to launch;
:l..ntra.-~u ~iscussiohs this summer airr\ed.at fipd~ng new appr6ache~ to
data · protection,· based. on the braibant · repOrt.
(note: .· · tne
. braibant report was completed march 3 it has not yet been released
to the public·.. general· informatiqn ori the report can be found at
.· www.premi.er-:rninistre.gouv; fr ... the prime minister's instructions to
· braibant calle.d for balancing the· needs' of protecting personal
privacy wit}l · technological advances ar:td promotion of economic
growth.)·
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11 .. (u) . magaz'iner replied that the u.s. and france agreed on the
substance of the privacy issue, including the 'applicabi1ity'of oecd
privacy principles.· our approaches · dif'fered mainly in terms of
• enforcement I with th:e .U.<S. <favoring an 'industry:- led :approach and
france (and europe) favoring state-led enforcement. ·he' -~aid he had
. had g'ood. talks· on~ tl'le. priyacy ~i(?sue .w~th the •etJ. :commission; 'and
~ pres.sed for--a. re~solution of th~ issue by..j.urie J.~98·~
.· . ·,
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fo'reign ministry officia:).s: focused Onr_p:[-oqedtirai i'ssu·e8··.
-:.~ _,-:..··-·-.:.·- ~--- _}-~.;.,. -·~ - - - - - - ~- ~~ _:..;... ___ ,_·-~--;,.;. .;,·~"/""!.-~-
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12 .. · (u) · m,;1ga,zinei-' s discU.ssibn .·w~th f()re'ign'm:i..nist~y u/s .clau·ci~.
mart iil. foC1J.S¢d. Oil the· a..reas of. compet~ncy Of releV'arit .· inte:thational
org-anizatiohs for electronic cornni~r~e iss\l_es. . fria:rtin said he had
. met with. \&Ito ,:chairman. :r-ugg:l:ero march 1~ c:md aenE;ed ·th?t the.· wto .was
anxious to eng~ge f.ully em e'-C:om:rrterce i~sues; h~ ~6r1dere<:i. if t·here
\'{as:grpwing competition between mul.tilateral·· bodies· in this area.
on fiscal 'issues, h~notec'l the difficul'ty of class:ifyirig elect:ronic ·.
transa:d:.ions aei 'goods or services. 'martin raised t'he upcoming deed
. ministerial in. ottawa (october 19,98) and al3kl:ld what were u.9.
· objectives. ~or the·· conference~ ma:rtin stressed' the importai1te Of··
inyluding .. ·· ¢hina. . a.rid. 'd~veloping
countl:'ies. . in.·''. multilateral
. discussions of. electrqnic commerce and internet issues. '.·
13.
(sbu)
j:n reply,' -magazirier 'outlineP. ,the gel'le~al division 0~
labor.. betwe~n international organizations on electronic commerce
isstt;es, . includi~g· . the. wto , {import' ·duti~s/tariffs), . ·the.· oecd
. ( d,omesti_C ,. taxes, . · privq.cy) 1 . anci: the wipd ·{trademarks 1 . ipr} • !: , }J.e
noted .that :develOping . C0'4Jltries qould be ·easily .assoe;iated With .
oecd d.ieicu$9ions: · ·on: the ottawa conference, he said the usg would'
· se.ek· .. to focus discussion on t·a:xat~on . (including an e~dorsetnent of
ccimrrion principles) , analysis (of' . the . socio-economic . impact of
. electronic commerce) ; and pr1vacy (to<inciude private s'ector .
;"
. UNCLASSIFIED .
.
.
.
CLINTON LIBRARY PHOTOCOPY· ..
�',.
7 '·
pa~tici:Bation).
·I.,
...: ;
.
·~
..
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.' .
CLINTON LIBRARY-PHOTOCOPY ·
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.. CLINTONLH3RARY PHQTOd_;r: , .
�Withdrawal/Redaction Sheet
Clinton Library
.DOCUMENT NO.
AND TYPE
001. memo
RESTRICTION
SUBJECTffiTLE
DATE
To TomKalil from Justyna Burr re: WIPO (2 pages)
12/03/96
P5
COLLECTION:
Domestic Policy Council
Ira Magaziner (Electronic Commerce)
OA/Box Number: 13119
FOLDER TITLE:
NEC [National Economic Council] Process on Copyrights [1]
Rhonda Wilson
rw93
. RESTRICTION CODES
Presidential Records Act- [44 U.S.C. 2204(a)] .
Fr~edom of Information Act- [5 U.S.C. 552(b)]
Pl
P2
P3
P4
b(l) Nationafsecurity classified information [(b)(l) of the FOlA]
b(2) Release would disclose internal personnel rules and practices of
an agency [(b)(2) of the FOlA]
b(3) Release would violate a Federal statute [(b)(3) of the FOlA]
b(4) Release would disclose trade secrets or confidential or financial
information [(b)(4) of the FOlA]
b(6) Release would constitute a clearly unwarranted invasion of
- personal privacy [(b)(6) of the FOlA]
b(7) Release would disclose information compiled for law enforcement
purposes [(b)(7) of the FOlA]
·
b(8) Release would disclose information concerning the regulation of
financiill institutions [(b)(8) of the FOlA]
b(9) Release would disclose geological or geophysical information
.concerning wells [(b)(9) of the FOlA]
National Security Classified Information [(a)(l) of the PRA]
Relating to the appointment to Federal office [(a)(2) of the PRA]
Release would violate a Federal statute [(a)(3) of the PRA]
Release would disclose trade secrets or confidential collllilercial or
financial information [(a)(4) of the PRA]
_
PS Release would disclose confidential advise between the President
· and his advisors, or between such advisors [a)(S) of the PRA]
P6 Release would constitute a clearly unwarranted invasion of
personal privacy [(a)(6) of the PRA]
C. Closed in accordance with restrictions contained in donor's deed
of gift.
PRM. Personal record misfile defined in accordance with 44 U.S.C.
2201(3).
RR. Document will be reviewed upon request.
CL1NTON LIBRARY PHOTOCOPY
�OFFICE
E X E C U T I V E
0 F
T H E
P R E S I D E N T
03-Dec-1996 09:02am
.TO:
(See Below)
FROM:
Justyna B. Burr
SUBJECT:
WIPO
Message Creation Date was at
Tom,
3-DEC-1996 08:56:00
as best as I can figure:
1. The C175 on the Database Treaty was signed by Spero on Wednesday of last
week. I have~'t seen it, but it apparently instructs the delegation to
"negotiate" but not sign a database treaty. Isn't this inconsistent with
Dan's summary of deputies position last week (talk, don't negotiate text, don't
conclude treaty). Similarly, ·the NYTimes yesterday indicated that the United
States will offer a pro~osal re~arding database protection, and characterized
Clinton Administration as a "strong supporter" of database proposal.
2.
As you know, OMB proposed language for an explanatory note on Article 7 of
the literary & artistic works treaty. This language was rejected by PTO and
.USTR. In a telephone conversation with Keith C. yesterday, I suggested the
following alternative language:
'
·
"The Berne Protocal and the New Instrument, as presently drafted,
are
structured in a manner that authorizes exemptions permitting
certain
:=phemeral reproductions that are made while browsing the
Internet and
transmitting copyrighted works from point to point."
rhis language was drafted by PTO. Keith agreed to take it.to·Bruce Lehman and
~et back to me, but has not done. so.
3. The deputies agreed that the delegation would be instructed to seek an
interpretive note with.respect to Article 12 that reads "In particular, the
~revisions of the Article 12 should be understood to permit Contracting Parties
to carry forward and appropriately extend into the digital environment
limitations,and exceptions in their national laws which have·been considered
0
:tc~~pt.ab ~ ~; •.~~~.~;J:;;\~10~iii.~~%~:d.~;)i~~f-~·~f.~.,t. f:) II :, :~ . :,.: :~.: ,\: !; ;.,~.~.:·~ t; j l~;.¥?~ f,l\ ;2: ' ,:·,·. ... •:
. •.•·.· . . . ·•.
.
asked· tODELETE;[::fhis ··.instruction . from
the C175 on. art.istic':)ia!ld Jiteiary works. WHAT'S GOING:,.ON????
~ccording···to· state'.'.I)epe~>;riote/\'PTO'has
. ·· · :·
;<t·)~iirtdit
··:;. :;-;;;<i;-.<· > ·i··t/•··'·'·.;:·<:: '>:,,•• ·,
,;,.:,·c::':~<~:~0::;igQ~~.,
.··.
..,··.:.::• . · . .
.
. :
Nobody ···in ··nc:.·.kno.'W's .;what: is ·going<on• with'.'the.···cf75s'~. fM,Dianne Markovitz:
(State ·Dept.~, C175',Xd:i:after); is in Geneva. ·Richarct:·iifii8'0Ii''C (at State) believes
that NEC is coordiilaf:ing./and YOU are running the "home~;ji:eam."
At any rate~
1.obody at Stat~.:.·is.:;keep~ng .track of what's going on}Illi•<;;E:neva.
·
i.
. 5 •..·
AccordinJ·,·.~~-~.;(~~·~t~.1~~\l:~.];~::;:~?tl1er.e.;{~··. ·a/r~~i·•. ·p6ssi~Ilii1t:¥~¥i;~~:~::the .· int.erp:etiY.~·.· ··
1otes as we· know
:them~;w1lL
.. :<:\,~?:K·::~:1i'E, ·.. /
be scrapped w1th
'three treat1es
>· ':: ··" ... J< . .
. :·
respect','to:~~a11
·.
.
·. CLINTON LIBRARY PHOTOCOPY
�' ..
altogether.
I don't think that the deputies contemplated this outcome when
evaluating the treaties.
6. What is the status of the Admin statement you drafted L3.st week?
Distribution:
.TO:
CC:
CC:
CC:
CC:
CC:
KALIL T
MAGAZINER I
Sally Katien
Henry C. Kelly
Michael Nelson
Peter N. Weiss
�
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397 folders
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Systematic - Ira Magaziner, Domestic Policy Council, Electronic Commerce
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