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U.S. Pushes to Resolve Debate on NTT-Verio

http://cryptome.org/verio-ntt-sec.htm


10 August 2000

Source: US national newspaper, August 9, 2000, pp. A2-A14.

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U.S. Pushes to Resolve Debate on NTT-Verio

By NEIL KING JR. And DAVID S. CLOUD Staff Reporters

WASHINGTON -- Facing a Monday deadline, U.S. officials are scrambling to resolve national-security concerns that are holding up a $5.5 billion bid by the Japanese phone company, Nippon Telegraph & Telephone Corp., to acquire the U.S. Internet company Verio Inc.

Treasury Secretary Lawrence Summers has called a meeting for tomorrow of top administration officials to try to bridge deep differences among government agencies over the deal, which has been caught up in a national-security review process for nearly 75 days.

The Federal Bureau of Investigation, along with the Justice Department and the Pentagon, worries the deal could give the Japanese government-controlled company access to U.S. government wiretapping activity and could present an espionage risk. But other agencies charged with promoting trade contend the FBI has overblown the concerns, and they are pushing for less-stringent requirements.

The dispute has enormous ramifications, not just for trade relations between the U.S. and Japan, but also for law enforcement as it grapples with the complications of foreign investment in the rapidly growing U.S. Internet sector. This is the first time national- security reviews similar to those surrounding past aerospace and defense deals have been applied to an international Internet acquisition.

[...]


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