Encryption of data and communications is a relatively new subject to this Committee, and there is good reason for that. Historically, encryption has been used almost exclusively by the military and intelligence communities to protect secrets of defense and national security.

The Information Age has changed all that. Commercial use of encryption products is exploding all over the world because information is fast becoming one of the business commnity's most valuable assets. The ability to secure and protect business information is a challenge that all companies must meet to compete effectively in the global marketplace.

Encryption also is tremendously important for consumers who increasingly transact business in the electronic marketplace. It is essential that consumers have complete confidence in the security of electronic commerce because there is no doubt that it is here to stay. In fact, before too long, electronic commerce may become the primary means of purchasing goods and services on an everyday basis. Whether consumers use electronic payment systems like credit and debit cards, online banking, or ordering their groceries using new TV computers set up in their kitchens, consumers must know that the privacy of their personal information is secure.

Effective encryption products are essential if electronic commerce is to grow and prosper. And it is clearly the responsibility of this Committee both to ensure the integrity of interstate commerce, and protect the security of interstate and foreign communications. Each of these responsibilities of the Commerce Committee now requires a thorough understanding of the role of encryption.

To carry out these duties responsibly, we also must recognize the competing interests at stake. As I am sure we will learn today from our distinguished witnesses, strong encryption can be a double-edged sword. While it can make interstate commerce and communications more secure, its unrestricted use can make national security and law enforcement less so.

Many are concerned that the proliferation of strong encryption products can pose a serious threat to the ability of law enforcement to prevent crimes not yet committed. And we all know too well that even in the post-Cold War era, the wars against international terrorism, drugs and violations of human rights continue.

As we carry out the responsibilities of this Committee, we must carefully consider the legitimate concerns of both sides of this debate. Both law enforcement and the business community would like to see some change to current law that provides society the most benefit with the least harm. Each side has said repeatedly that a balanced and reasonable approach is their goal. My hope is that the distinguished witnesses before us today will shed light on ways to achieve a balanced solution.

Thank you again, Mr. Chairman, for holding this important hearing. I yield back the balance of my time.

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