Encryption Export To Red China

CHINESE LONG MARCH & CSS ICBM

SOFTWAR is proud to announce a new set of documents have been obtained from the U.S. Commerce Dept. in response to our request for information on Dr. Richard Barth. Dr. Barth worked at the White House National Security Council (NSC) under President Bush and President Clinton. Dr. Barth left the NSC in 1993 but came back to make policy in the White House as a contractor while employed as Assistant Director for Trade Relations at Motorola Corp.

This is the second in a series of the Dr. Barth documents which detail his activities of 1994. The first set left off with Dr. Barth being assigned policy making tasks for the White House by George Tenet. The Tenet orders were issued on NSC White House Email dated December 23, 1993 to Barth who was acting as a "consultant" attached to the NSC. The policy was the planned elimination of the Cold War controls on encryption (COCOM).

Two months later - the very first 1994 document is a March request by the U.S. Commerce Dept. to Dr. Barth to assist in Motorola's part of a planned Brown trade trip to Russia. On March 11, 1994, Barth would reply to the Commerce Dept. with documents outlining Motorola's participation.

"We look forward to a very positive outcome of the presidential level talks leading to abolishing of COCOM restrictions on communications products, and the streamlining of procedures within the Russian Government."

Further documents show later in November 1994, Barth began lobbying the Clinton administration directly by pressuring the State Dept. to help in the export of encryption.

"This is to request that your office initiate action to obtain a waiver from requirement for individual export license notifications to Congress for wireless mobile communications systems containing encryption for China. Such a waiver was issued by the President in September of this year for civilian satellite systems and encrypted products for use by American firms operating in China."

These documents were returned by the U.S. Commerce Department in response to a 1997 Freedom of Information Act (FOIA) request by SOFTWAR:



March 9, 1994

Mr. Rich Barth
Assistant Director, International
Trade Relations
Motorola
1350 Eye Street, NW, Suite 400
Washington, DC 20005

Dear Mr. Barth:

In preparation for Secretary Brown's Presidential Business
Development Mission to Russia, in which your President of
European Affairs will be participating, I would like to invite
you to a briefing at the Department of Commerce to be held on
Wednesday, March 16, at 9:30 a.m. in Room 5430.

The purpose of this meeting will be to give you an overview of
the trip's objectives, to go over the schedule for the mission,
as well as to answer any questions you may have about the trip.
The briefing will be conducted by myself and other senior
Department of Commerce officials.

I hope you will be able to join us. I am sure it will prove
helpful as we work together to make this business development
mission a resounding success. If you can join us at this
meeting, please RSVP to Kathy Kellogg, in the Office of Business
Liaison at (202) 482-1360.

Sincerely,

Melissa Moss Director Office of Business Liaison


MOTOROLA

March 11, 1994

Note for Sally Painter

Enclosed are:
        

-   Two Photos of Jim Norling

-   Bio of Norling

-   Description of Motorola

-   Objective for Mission

I hope to have most of the other materials for you by Wednesday
morning when I attend your briefing.  Thanks for taking the time
for meeting with me this morning and I look forward to working
with you.

Rich Barth

Government Relations


MOTOROLA

James A. Norling
President, Motorola Europe, Middle East and Africa
Executive Vice-President, Motorola, Inc.

James A. Norling joined Motorola in 1965 as an engineering
trainee.  He held various positions within the Semiconductor
Group before being named, in January 1990, President and General
Manager, Semiconductor, Products Sector, and Executive Vice
President, Motorola, inc.  He assumed his present position in
1993. He also serves as chairman of Motorola's European
Management Board, which incorporates Motorola's business
interests in the Russian Federation.

MOTOROLA
STATEMENT OF COMPANY'S OBJECTIVE -

Motorola is already marketing a broad range of its
communications Products to customers in government, the
emergency response services, banking, oil and gas industries.

In June 1993 Motorola opened an office at McDonalds Tower on
Gazetny per. 17/9, 103375 Moscow.  Earlier moves included a
product and technology Road Show which visited seven major
cities in Russia, Belorus, Ukraine and the Baltic States in May
1992.

The outlook for Motorola in Russia is strong.  The
communications infrastructure is inadequate for competing in a
free market economy on a global scale.  Wireless communication
offers competitive, immediate and-lasting solutions to these
problems.

Our participation in the mission is a further demonstration of
our seriousness and great interest in the Russian market. We
look forward to a very positive outcome of the presidential
level talks leading to abolishing of COCOM restrictions on
communications products, and the streamlining of procedures
within the Russian Government.

11 March 1994


MOTOROLA

Motorola Company Description

Motorola is one of the world's leading providers of wireless
communications and electronic equipment, systems, components and
services for worldwide markets.  Products include two-way
radios, pagers, personal communications systems, cellular
telephones and systems, discrete semiconductors and integrated
circuits, defense and aerospace electronics, automotive and
industrial electronics, 'computers, data communications and
information processing and handling equipment.  Motorola was a
winner of the first Malcolm Baldrige. National Quantity Award, in
recognition of its superior company-wide management of-quality
processes.

Motorola seeks:

-    Quality improvement to achieve total customer satisfaction
and market leadership through the empowerment of our people;

-    Cycle time reduction, both in customer service and product
development, to reduce costs and lead new markets, as well as
serving customers with products that help them manage time and
become more productive;

-    Technology leadership, leveraging strength in software,
manufacturing, microelectronics and radio communications;

-    Investment in the future, in training, research and
development, in production tools and facilities and in
technology; and

-    Partnerships - with other companies, with customers, and
within Motorola, to leverage available resources and enter
exciting growth markets while making efficient use of our
financial resources.

Government Relations



MOTOROLA

NOVEMBER 23, 1994

Theodore McNamara
Assistant Secretary of State
Bureau of Political-Military Affairs
Department of State
2201 C Street, N.W.
Washington, DC  20520

Dear Mr. McNamara:

This is to request that your office initiate action to obtain a
waiver from requirement for individual export license
notifications to Congress for wireless mobile communications
systems containing encryption for China.  Such a waiver was
issued by the President in September of this year for civilian
satellite systems and encrypted products for use by American
firms operating in China.

The commercial/consumer telecommunications industry has become a
truly global arena, and China represents a large potential
market.  The major suppliers of wireless systems, offering
comparable or identical technologies, are engaged in a constant
struggle to capture and retain market share.  Currently, US
companies are at a significant competitive disadvantage in the
marketing and selling of digital communications systems with
encryption in China because our competitors are allowed to
market and sell such systems while US manufacturers are
prohibited from doing so.

The cellular phone market highlights the problem that also
exists for other telecommunications providers.  European firms,
including Nokia, Ericsson, Alcatel and Siemens, have for a
number of months been able to market and sell GSM cellular
systems with A5-2 encryption in China as a result of a decision
taken by the UK intelligence agency, GCHQ.  I understand that
our National Security Agency is aware of this change in GCHQ's
position and would support our request for a change in US
requirements for export licenses for China.  The NSA has agreed
that there should be a "level playing field" in regard to China
and would concur with allowing US firms to supply A5-2 GSM
systems to that market.

All such export transactions in China involving encryption would
continue to be subject to the usual strict compliance
requirements of the State Department's ITAR regulations, and NSA
would continue their participation in the license review
process.  The only change we are requesting is for the
requirement for Congressional notification for each and every
export of these technologies.

We request waiver authority for "all commercial cellular, PCS
(personal communications systems) and other telecommunications
system hardware and software."

Please let me know if I can provide further information on this
subject.  Because of the competitive disadvantage suffered by
Motorola under the current export control constraints, I request
your urgent attention to this matter.

Sincerely,

Richard C. Barth, PhD.
Assistant Director, International Trade Relations

cc:      Assistant Secretary Dan Tarullo
         Deputy Assistant Secretary Martha Harris
         Lou Giles
         Bill Clements
         Will Lowell
         Karen Hopkinson
         Ray Mislock




UNITED STATES DEPARTMENT OF STATE

ASSISTANT SECRETARY OF STATE
FOR POLITICAL-MILITARY AFFAIRS

WASHINGTON, D.C.  20520

DECEMBER 2, 1994

Dr. Richard C. Barth
Assistant Director, International Trade Relations
Government Relations Division
Motorola
1350 I Street, N.W., Suite 400
Washington, DC  2005-3305

Dear Dr. Barth:

I am replying to your letter of November 23, in which you
requested that my office initiate action to obtain a waiver of
the requirement for individual export license notifications to
Congress for exports to China of wireless mobile communications
systems containing encryption.

As you know, there are important issues that must be considered
carefully, in light of the post-Tiananmen sanctions.  The
President recently renewed the Administration's commitment to
these sanctions when he de-linked MFN and human rights issues.
Government policies regarding exports of US Munitions List items
are covered by these Congressionally mandated sanctions.  We
shall of course take into account the new information you have
provided regarding the recent decision in Europe to allow the
export of A5-2 encrypted GSM cellular systems as we continue to
review our policies toward China.

We have begun consulting within State and with other concerned
agencies on various aspects of this issue.  We may need to
contact you for additional information as we continue these
consultations.

If you wish to have further discussions on the issue, I suggest
that you contact Dr. Martha Harris, the Deputy Assistant
Secretary of State who is directly responsible for our work in
this area.  Dr. Harris can be contacted here in the Bureau of
Political-Military affairs at (202) 647-6977 (FAX: (202)
647-4232).  Alternatively, you may contact Cesare Rosati, the
action officer in the Bureau for encryption policy, at (202)
647-0397 (FAX:  (202) 647-4232).

Sincerely,

Thomas E. McNamara