London

The United States clashed with European Union (EU) countries last week over government controls on encryption technology. Their ministers were meeting in Bonn, Germany, to set common standards for communication networks such as the Internet.

Despite signing a joint statement with the EU supporting ‘free choice’ in the sale and use of encryption products, US officials maintained that they had no intention of relaxing US controls banning the export of sophisticated encryption products.

The US commerce secretary, William Daley, said he understood that encryption was needed to prevent eavesdropping during the electronic transmission of credit card numbers and sensitive documents such as contracts. But he warned that the technology permitted should not be so sophisticated as to allow terrorists and criminals to hide their activities from law enforcement agencies.

EU ministers, as well as business leaders in the United States and Europe, believe that the restrictions inhibit trade in encryption technology.