DTI to ban electronic export of crypto from the UK!

[John Young]

On Brian's proposal to separate controls of defense crypto from 
commercial: NSA stated in its press release on Skipjack/KEA 
declassification that it would use the AES winner for unclassified 
security needs but not for classified. Unleash of Skipjack, NSA 
claimed, was to foster commercial products for featherweight 
government/industry use.

The US still controls "military-grade" encryption (whatever that may
be) under the International Traffic in Arms Regulations (ITAR), while
lesser strength, dual-use is handled by the Export Administration
Regulations (EAR)'s Commerce Control List. Is a similar two-tier
system used in the UK? Or would that information be an Official Secret?

Moreover, isn't it the case that  under the Wassenaar Arrangement 
all signators are obliged to march to the same crypto cadence?
Until, to be sure, the campaign to remove crypto from WA is 
successful.

A small note: A tabulation of 78 US key dual-use technologies for 
future weapons systems lists one "helpful" use for encryption
(in A-A missiles, but not even for SIGINT satellites) compared to 
hundreds of "essential" and "important" uses of other critical  
technologies. This from June 25 congressional testimony by 
a senior advisor of the US Defense Technology Security 
Administration which approves export of all dual-use 
technologies:

   http://jya.com/dtsa-fws.htm