Prepared Statement of Louis J. Freeh, Director, Federal Bureau of Investigation Before the House Committee on the Judiciary Subcommittee on Crime March 30, 1995 .. ENCRYPTION Another issue looms on the horizon that ultimately could be as devastating to the fight against drugs by law enforcement as any other factor. If lost, the effect will be so profound that I believe law enforcement will be unable to recover. In 1968, Congress passed legislation giving law enforcement the court-authorized wiretap. It has become a technique crucial to the fight against drugs, terrorism, kidnapping and sophisticated white-collar crime. The ability to conduct court- authorized electronic surveillance is fundamental to our ability to protect both public safety and national security. Last year, after careful deliberation, Congress passed legislation to ensure continuing access to criminal conversations in the face of the incredible advance of telecommunications technology. Had Congress not done so, we would have lost the ability to access, pursuant to court order, criminal conversations. All that remains on the access issue is funding consistent with the authorization to ensure carrier compliance. I have been advised that the Administration will soon be sending legislation to address this funding issue. Even though access is all but assured, an even more difficult problem with court-authorized wiretaps looms. Powerful encryption is becoming commonplace. The drug cartels are buying sophisticated communications equipment. Unless the issue of encryption is resolved soon, criminal conversations over the telephone and other communications devices will become indecipherable by law enforcement. This, as much as any issue, jeopardizes the public safety and national security of this country. Drug cartels, terrorists, and kidnappers will use telephones and other communications media with impunity knowing that their conversations are immune from our most valued investigative technique. This is an extremely difficult issue. We are working hard to address adequately the important law enforcement, national security, commercial, and privacy concerns associated with this matter. I anticipate that as we proceed with solving this issue, we will be consulting with Congress. ---------------------------------16167121487701--