CONFERENCE ON CRITICAL  INFRASTRUCTURE PROTECTION
  
 ADDRESS BY ATTORNEY GENERAL JANET RENO
             Friday, February 27, 1998
 
     Lawrence Livermore National Laboratory
 
         7000 East Street, Building 123
  
                  Auditorium
 
              Livermore, California
   
                                         (12:00 noon)
            MS. RENO:  Thank you very much.  It is a
 very special privilege for me to be here today.
           This laboratory is such a great institution
 and it has such a distinguished history.  I can see
 why, after a half-hour with Bruce, I was the student
 since I had forgotten most of my chemistry.  And it
 has been one of the most extraordinarily helpful and
 constructive half-hours I have spent in the almost
 five years I have been Attorney General.
            This is an issue that is critically
 important to me:  How we protect the systems and the
 networks of this nation that make its businesses run;
 how we create a system that can provide for the
 protection of our nation's defenses; how you get to
 the hospital emergency room on time; how do we
 protect those whom we hold dear from a threat of
 chemical weapons in a subway.
            Our energy production and distribution
 channels, our transportation networks and our
 telecommunication systems are more vulnerable than
 ever before as we come to rely on technology more
 than ever.
            This generation faces extraordinary
 challenges as we face the problems associated with
 weapons of mass destruction.  This technology brings
 us a new century and a new world of incredible
 opportunities and of daunting challenges which, as
 Adlai Stevenson would say, stagger the imagination
 and convert vanity to prayer.
            The government, including the Department of
 Justice, is facing these challenges head on and
 taking steps to ensure the protection of our critical
 infrastructures, but we know full well we cannot do
 it alone.  To ensure the protection of our critical
 networks and systems, we must work as partners, true
 partners, with the private sector, with the academic
 world, with great institutions such as this, in this
 vitally critical effort for this nation.
            I am here today to discuss what the
 Department of Justice, including the FBI, is doing to
 face the challenges.  And I am here to hear from some
 of you what steps we can take to build a stronger,
 better, two-way, respectful, trusting partnership
 with everybody who has been so significantly involved
 in this effort, some for far longer than we have.
            I want a partnership truly based on trust. 
 As Bruce has indicated, in 1995 the President asked
 me to chair a cabinet committee that would assess the
 vulnerability of our nation's infrastructures and
 make recommendations as to how to protect them.  The
 process we started led to the creation of the
 President's Commission on Critical Infrastructure
 Protection.
            I would like to pay very special tribute to
 Tom Marsh, who did an extraordinary job.  He did not
 just sit in Washington and listen to people.  He went
 out to communities.  He went to so many different
 places and listened to people because he knew full
 well how important it was to build a true line of
 communication in this very sensitive and significant
 area.  And so thank you, Tom, for just some great and
 wonderful public service.
      (Applause.)
            MS. RENO:  As you know, the Administration
 is presently engaged in determining how to implement
 this report, so this conference could not be more
 timely.  But one thing is certain, and the commission
 made sure of that: it is vitally important to
 the success of any effort that, it be based on the idea that 
 infrastructure protection requires that we work together 
 as never before.
            It demands a partnership among all federal
 agencies with responsibilities for different sectors
 of the economy or for certain special functions, like
 law enforcement, intelligence and defense.  It also
 requires a partnership with private industry which
 owns and operates most of the infrastructures.  It
 calls for a partnership with academia and labs like
 the one hosting us today.
            You have the scientific knowledge to
 develop technical solutions.  I have already been
 through some of the process that you have been
 involved in, some of the processes that are actually
 critical to solving and protecting some of the very
 critical infrastructures that we have talked about
 today.
            It also requires a partnership with state
 and local law enforcement.  They are used to
 robbers with guns, but there are new criminals out there
 who do not have guns.  They have computers, and they
 may have other weapons of mass destruction.
            The use of weapons of mass destruction or
 cyber attacks on infrastructures that could lead to
 events like power outages or telecommunications
 breakdowns are not hypothetical.  They are not
 speculative.  They can happen.  And it requires, in
 the end, a partnership with the American people who
 have the right to expect that all of us, whether we
 are an attorney general or a general, whether we are a
 scientist or a business person, that all of us are
 going to work together to protect this nation.
            The Department of Justice and the FBI, as I
 have indicated, want to be strong, good partners. 
 Let me face up to an issue.  Some people get
 suspicious of law enforcement.  They say, "I do not
 want to cooperate.  I do not want people to recognize
 my vulnerability.  I do not understand the criminal
 justice system."
            We have a responsibility to work through
 the concerns that people may have so that they trust
 us.  And I am here today and have been involved in
 trying to do outreach to those responsible for
 critical infrastructures to make sure that we hear
 from you as to how we can be a better, stronger
 partner in the process.  And I have learned today,
 just from this lab, so much that can be done.
            There are other concerns.  For example,
 private business may be concerned about
 confidentiality.  Business does not want to have
 proprietary information made public.  The FBI, on the
 other hand, has a duty to provide an early warning to
 the community to prevent further attacks.  We must
 work together to see how we can walk that narrow line
 and ensure that we do our duty in terms of preventing
 further attacks while at the same time maintaining
 the confidentiality of the person or institution or
 business involved.
            The Department of Justice and the FBI have
 a duty to investigate and prosecute most attacks on
 the infrastructure, but there are constitutional and
 other legal limitations on what law enforcement can
 and cannot do.  Fourth Amendment protections against
 unreasonable search and seizures is one of our
 citizens most sacred protections.
            We must work with scientists as partners to
 develop technologies and processes that enable us to
 obtain evidence in strict adherence to the
 fundamental protections guaranteed our citizens by
 the Constitution.  The private company that is the
 victim of a cyber attack must likewise understand law
 enforcement's responsibility to the Constitution.
            Some dare to suggest that the Constitution,
 the most remarkable document that humankind ever put
 to paper, cannot keep up with modern technology.  I
 say we must not and we will not sacrifice any
 constitutional protection in order to adapt to new
 technology.
            We must and we will work with you to ensure
 that we will master the technologies and together,
 that law enforcement working with the private sector,
 working with the scientist, will make sure that
 technology can be adapted to meet the constitutional
 protections that are so critically important.  But to
 do this, it is going to require that we talk
 together, that we work together and that we
 understand the problem.  It may be a problem that a
 scientist can solve, but we need the Fourth Amendment
 expert working with the scientist to understand.
            The FBI works daily to prevent attacks on
 the infrastructure.  And it is prepared to
 immediately investigate if the attack occurs.  United
 States attorneys and other Justice Department
 attorneys are available with technical expertise on a
 24-hour basis to respond.
            And if the plan is carried out, a cyber
 attack, if it is carried out by agents of a foreign
 state or international terrorist group, we have the
 responsibility as well under our foreign counter-intelligence authorities.
            In the early stages of a cyber attack on an
 infrastructure or a power grid, we often have no way
 of knowing who was behind it, what their motive was or where they attacked from.
            It is impossible to determine whether the
 attack is part of a terrorist plot, a probe by a
 foreign intelligence service, or a part of a national
 level military assault by a hostile nation state; or
 is it simply the work of a disgruntled insider bent
 on revenge against a supervisor; or is it a young
 juvenile hacker out to test his skills against the
 latest firewalls.
            At the outset then, it may be premature to
 mobilize the military or redirect national
 intelligence assets.
            What we do know, however, is that
 regardless of the perpetrator, his intent or his
 whereabouts, the intrusion in most cases constitutes
 a federal crime.  This means the Department of
 Justice and the FBI have the authority and
 responsibility to investigate it.
            Whether the crime is physical or cyber, we
 need to ensure that as we investigate we are
 coordinating with other agencies as appropriate.  If
 the attack appears to come from non-U.S. persons
 located abroad, we would want to call on the
 intelligence community to assist in gathering
 information about the perpetrator's intentions; or if
 the attack seems to be part of a hostile nation's war
 plan or involves an attack on the Defense
 Department's own critical infrastructures, DOD
 obviously has a critical role to play.
            Our challenge, our extraordinary challenge, is to identify the attack we need to
know:  When is it a
 straight law enforcement investigation that the FBI
 and the Assistant United States Attorney or Criminal
 Division lawyer control?  When is it something that
 the National Security Council takes over?  When is it something that clearly becomes
international as opposed to domestic, and therefore the State Department controls?
            What this means is that you do not have any ready answers, but you do have to develop a process--and we are in the process of
doing that--to determine when we hand it off from one agency to the next, how we
work together to make sure that we adhere to constitutional protections, how we
adhere to Fourth Amendment issues, how we continue to adhere to the Constitution.
             Now Bruce said you had been talking about
 that this morning.  We have been talking about it
 constantly in Washington, and it is an extraordinary
 challenge.  And civilian agencies also have important
 responsibilities and capabilities.  Whether it is the
 Department of Energy in the event of an attack on a
 nuclear power plant or an electrical power grid, or
 the Department of Transportation in an attack on our
 air traffic control or rail systems, all these
 agencies have crucial roles in the event of a crisis.  But the fact remains that law
enforcement initially will have the lead responsibility for responding to an imminent
or
 ongoing infrastructure incident.
            One example of the partnerships that we
 need to foster can be found in a major New York
 hacker case.  The FBI, Secret Service, NYNEX and
 Southwest Bell and a number of private companies and
 universities worked together to identify and
 prosecute successfully individuals who had hacked into a telecommunications
network, a credit reporting
 company and other systems.
            Meeting our responsibility to protect
 critical infrastructures, in my view, is one of the
 central challenges for law enforcement as we face the
 twenty-first century.  As our reliance on the
 Internet, on automated systems and on other
 technological advances increases exponentially with
 every passing month so do our vulnerabilities to
 infrastructure attacks.  Law enforcement must be
 prepared to confront this challenge and be prepared
 to do so in partnership with other federal agencies,
 with the private sector, with academia and with state
 and local agencies.
            And thus today I am announcing the creation
 of the National Infrastructure Protection Center at
 the FBI.  The NIPC's mission is to detect, to prevent
 and to respond to cyber and physical attacks on our
 nation's critical infrastructures and to oversee FBI
 computer crime investigations conducted in the field.
            The center will build on the important
 foundation laid down by the FBI's Computer Investigations
 and Infrastructure Threat Assessment Center, which
 has been subsumed into the NIPC.
            To ensure the strong partnerships that I
 consider vital, the NIPC will include representatives
 from the Defense Department, the intelligence
 community and other government agencies.  We also
 very much want to and hope that the private sector
 will be a participant in this center, very much like
 it participated in the President's commission.
            This is the surest, best, quickest way to
 build understanding, to learn from each other, to
 understand the responsibilities, the duties, the
 processes and the authorities that each agency or
 institution possesses.  But let me be frank again.  I
 know sometimes of the distrust that exists between
 agencies.
            I want to hear from all concerned, all who
 are dedicated and vitally involved in the protection
 of our infrastructure; I want to know what we can do to build bridges of trust and
understanding and communication, what we can do to better explain the role of law
enforcement so that people can understand, what we can do to sit down with scientists
and say, "Here is our law enforcement.  How do we solve it?"  We can do so much
 through this center if we work together.
            To augment our partnership, we want to
 establish direct electronic connectivity with private
 industry and the Computer Emergency Response Team, or
 CERTs, which is located across the country.  This is
 a significant departure from the way law enforcement
 has traditionally operated.  But the challenges of
 infrastructure protection require imaginative
 solutions.  And I consider our liaison and outreach
 to the private sector to be absolutely indispensable
 to our success.
            One of the issues the private sector will
 raise is, "Why should we work with you in developing
 technology?  How do we know that you will maintain
 confidentiality.  What can we do?"
            And in the last half-hour I have learned that I might find some examples here at
the lab in the partnerships that you have built with the private sector in terms of
determining solutions.  It is fascinating what we can do if we will only sit down and
talk together and build trust, recognizing that we all have one common objective
which is the protection of this nation that we hold dear.
            The partnerships that we envision will
 allow the NIPC to fulfill its responsibility as the
 government's lead mechanism for responding to an
 infrastructure attack.  But the NIPC cannot just
 react from one crisis to the next.  To do our job we
 will have to be able to prevent crises before they
 happen, and that requires analysis of information
 from all relevant sources including law enforcement
 investigations, intelligence gathering and data
 provided by industry.
            Through partnerships between federal
 agencies and private industry and with interagency
 and private sector representation in electronic
 connectivity to all of our partners, the NIPC will be
 able to achieve the broadest possible sharing of
 information and comprehensive analysis of potential
 threats and vulnerabilities.  And through its Watch
 and Warning Unit, the NIPC will be able to
 disseminate its analysis and warnings of any imminent
 threats to a broad audience in and out of government. 
            This will enable private industry and
 government agencies to take protective steps before
 an attack.  But, at the same time, we can take steps
 together to protect the interests of all concerned
 and balance the responsibilities of everyone
 involved.
            As we build our partnerships, we must
 ensure that whenever possible we share equipment,
 technology and know-how with each other and
 especially with state and local law enforcement who
 are on the front lines.  Local police respond with
 guns now, but soon they will have to respond with
 cyber tools to detect an intrusion, to follow
 through, to find the person, to hold him accountable;
 and we must be there working with them.
            This equipment will be expensive.  And
 you scientists will create so much new equipment so
 fast that it will be vital that we all work together
 in every forum possible to make sure that we avoid
 costly duplication, that we develop research
 according to sound plans that look both to the
 defense and the law enforcement and the scientific
 interest, and that we do as much as we can working
 together, sharing.
            We have established a track record in
 this area, but we have much to learn, too.  One
 of the most important technological partnerships is
 the one we have established with the Department of
 Defense.  In 1994 Defense and Justice created a
 Special Joint Steering Program group and staffed it
 with both Justice and Defense personnel.
            We developed products such as the prototype
 see-through-the-wall radar; more affordable night
 vision devices, which have been instrumental in
 supporting and helping the Border Patrol; concealed
 weapons and contraband detection systems; and
 improved lightweight soft-body armor.
            In addition to working with DOD, we have
 developed partnerships with the Department of Energy
 and with the National Aeronautics and Space
 Administration.
            We point out those as if they are unusual. 
 We should come to accept such partnerships as a way
 of doing business in everything that those of us
 involved in the protection of the infrastructure do.
            But all of this only begins to touch on the
 range of things under development and the
 technologies needed by federal, state and local law
 enforcement.  As technology becomes more essential to
 the mission of the U.S. criminal justice system, it
 has become more important that we better organize
 ourselves to fulfill these new requirements, because
 neither federal nor local law enforcement can afford
 to be isolated from scientific and technological
 developments.
            Accordingly, I have directed the creation
 of a special working group to streamline the
 Department's management of research and technology
 development.
            Finally, as many of you can sympathize, the
 information revolution has happened so quickly that
 kids in junior high school are often more familiar
 with the new technologies than your local sheriff or
 the FBI agent.  We need to build a law enforcement
 work force that is educated and equipped to deal with
 the new technologies and knowledgeable and
 imaginative enough to think ahead to the next
 generation of problems.
            The NIPC will help us do this by working
 closely with other interagency groups that are
 developing training for federal, state and local law
 enforcement personnel on cyber investigations and
 weapons of mass destruction.
            By creating the NIPC, the Department of
 Justice is taking an important step:  We are creating
 new partnerships with the private sector and with
 other government agencies to combat threats to the
 critical infrastructure.
            I also have asked Congress to provide us
 with $64 million in increased funding to support our
 expanded efforts to protect the nation's
 infrastructure in fiscal year 1999.
            These additional resources will be critical
 to support the NIPC and will also allow the FBI to
 create six additional computer investigation and
 infrastructure threat assessment squads to be
 deployed in cities across the country.  And it will
 allow us to hire additional prosecutors to target
 cyber criminals.
            As I mentioned earlier, however, not every
 attack on a computer network or infrastructure that
 is used in the United States constitutes an attack on
 our national security and, in fact, most do not.  An
 unauthorized cyber intrusion could very well be, as I
 indicated previously, from a little hacker or a
 disgruntled insider.  We will pursue those
 investigations as part of our law enforcement
 authority.  But, nonetheless, part of protecting our
 critical infrastructure means working closely with
 the national security community to fight cyber
 attacks.
            Cyber attacks pose unique challenges. 
 Because of the technological advancements, today's
 criminals can be more nimble and more elusive than
 ever before.  If you can sit in a kitchen in St.
 Petersburg, Russia, and steal from a bank in New York,
 you understand the dimensions of the problem.
            Cyber attacks create a special problem,
 because the evidence is fleeting.  You may have gone
 through this computer 1,500 miles away to break
 through another computer 5,000 miles away.  Simply
 put, cyber criminals can cross borders faster than
 law enforcement agents can, as hackers need not
 respect national sovereignty, nor rely upon judicial
 process to get information from another country.
            If we are to protect our infrastructure we
 must reach beyond our borders.  Cyber threats ignore
 the borders.  The attack can come from anywhere in
 the world.  We must work with our allies around the
 world to build the same partnerships that we talk
 about here at home.
            And to that end, a little over a year ago,
 I raised with my colleagues, the ministers of justice
 of the P8 countries, the eight predominant, largest
 industrial countries -- Canada, France, Germany, the
 United Kingdom, Italy, Japan, Russia and our
 government -- the issue of cyber crime and urged that
 we join together in developing a common response.           Experts from all our
countries and
 departments worked together in the interim.  And last
 December the ministers came to Washington to meet in
 a day-long meeting that produced agreement as to the
 dimension of the problem and produced an action plan
 that I hope can bring real results in the year to
 come.
            We must join forces around the world if we
 are to begin to deal with the cyber crime that may
 affect one person or the cyber threat to our
 infrastructure that may affect the entire nation.
            To do this we must work very closely with
 our colleagues in the defense and intelligence
 communities both here and among our allies.  And this
 presents the new partnership.  While I am building
 partnerships with the Department of Defense, I am
 getting to know the minister of justice and the
 minister of defense in another country.  Sometimes
 the problem seems so big, but it is so critical that
 we address it and understand that this great, wide
 world is now one that can be traveled in seconds.
            Together we will determine whether emerging
 developments are a national security problem, a law
 enforcement problem, how to attack it, how to
 proceed.  But until evidence is obtained that an
 incident is a national security matter, it is
 important that we not jump to conclusions, that we
 not conclude that we must use extraordinary measures
 that defy our Constitution.
            If it has been determined that an incident
 is an attack on national security, then the Justice
 Department has three distinct roles.
            First, we can conduct a criminal
 investigation that runs on a parallel track with the
 national security elements of the case.  Indeed,
 criminal investigations often yield vital information
 and leads for the President's national security
 advisors.
            Secondly, we can utilize the FBI's counter-intelligence authorities and
techniques when our
 national security is under cyber attack from a
 foreign power.
            And, third, we will ensure that any
 national strategy for dealing with a cyber attack is
 drawn up, executed and assessed with strict fidelity
 to our Constitution and to our laws.
            I think this is the most extraordinarily
 challenging time that law enforcement has ever faced. 
 Boundaries in this world have shrunk.  Technology has
 burgeoned beyond man's wildest imaginations.  It is a
 time for us to come together and realize that if we
 work together, if we talk together, if we trust each
 other and understand that we have one common goal
 which is the defense of this nation, we can make all
 the difference.  If each discipline goes its own way,
 ignoring the other, we will not solve the problem,
 and this nation will be at peril.
            This has been, in this one visit and about
 a brief half-hour, extraordinarily enlightening to
 me.  And I go back to Washington confirmed in the
 belief that, based on the example of what you do
 here, we can make a difference and we can translate
 what you do here to so many other arenas and forums
 around this country where law enforcement, the
 private sector, the scientists are going to work
 together.
            Thank you so very much for setting an
 example.
      (Applause.)
  
     (Whereupon, the address by U.S. Attorney General  Janet Reno concluded at 12:35 p.m.)
               --o0o--
           
 STATE OF CALIFORNIA           )
 County of San Joaquin         ) ss.
      I, Susan Palmer, a Certified Electronic Reporter
 and Transcriber by the American Association of
 Electronic Reporters and Transcribers hereby certify
 that I reported, using the electronic reporting
 method, the proceedings had of this matter previously
 captioned herein; that I thereafter transcribed my
 audio recording to transcription by way of word
 processing; and that the foregoing transcript, pages
 1 to 26, both inclusive, constitutes a full, true and
 accurate record of all proceedings had upon the said
 matter, and of the whole thereof.
      Witness my hand as a Certified Electronic
 Reporter and Transcriber this 28th day of February
 1998.
                                              
                     Susan Palmer, CERT 00124
                     Palmer Reporting Services