2/20. Federal Reserve Board Chairman Alan Greenspan gave a speech in Omaha, Nebraska titled "The critical role of education in the nation's economy". He argued that the U.S. should focus on the education and retraining of U.S. workers, not on protectionist barriers to outsourcing.

Greenspan said that the U.S. has a "standard of living unparalleled for so large a population". He attributed this to factors such as entrepreneurial spirit, free trade, and protection of property rights. He also said that two consequences of the dynamic economy have been the movement of manufacturing jobs to "the lower-wage economies of Asia and Latin America" and outsourcing of services.

He stated that "concerns have arisen about the possibility that an increasing number of our better-paying white-collar jobs will be lost to outsourcing, especially to India and China. Many of these jobs are in the service sector, and they were previously perceived as secure and largely free from the international competition long faced in the manufacturing sector".

Greenspan concluded that the appropriate policy reaction is not to erect protectionist barriers, but to better educate and re-educate U.S. workers.

He elaborated that "In the debate that has ensued, a large gulf is often perceived between the arguments of economists, who almost always point to the considerable benefits offered over the long term by exposure to free and open trade, and the obvious stress felt by those caught on the downside of turbulence created by that exposure."

Greenspan, who is an economist, concluded that "our economy is best served by full and vigorous engagement in the global economy", and "the protectionist cures being advanced to address these hardships will make matters worse rather than better."

Greenspan also pointed out the the movement of manufacturing and service jobs abroad has not impacted overall employment in the long run. He stated that "Over the long sweep of American generations and waves of economic change, we simply have not experienced a net drain of jobs to advancing technology or to other nations. Since the end of World War II, the unemployment rate in the United States has averaged less than 6 percent with no apparent trend; and as recently as 2000, it dipped below 4 percent." He added that "real earnings of the average worker have continued to rise."

Greenspan identified the factors that contribute to economic growth. "Intensive research in recent years into the sources of economic growth among both developing and developed nations generally point to a number of important factors: the state of knowledge and skill of a population; the degree of control over indigenous natural resources; the quality of a country's legal system, particularly a strong commitment to a rule of law and protection of property rights; and yes, the extent of a country's openness to trade with the rest of the world."

He continued that "The loss of jobs over the past three years is attributable largely to rapid declines in the demand for industrial goods and to outsized gains in productivity that have caused effective supply to outstrip demand. Protectionism will do little to create jobs; and if foreigners retaliate, we will surely lose jobs. We need instead to discover the means to enhance the skills of our workforce and to further open markets here and abroad to allow our workers to compete effectively in the global marketplace."

"The capacity of workers, after being displaced, to find a new job that will eventually provide nearly comparable pay most often depends on the general knowledge of the worker and the ability of that individual to learn new skills", said Greenspan.

He added that "Generic capabilities in mathematics, writing, and verbal skills are key". And, he emphasized the importance of community colleges in teaching new skills.

He touched on the importance of curriculum. He said that "our secondary school system needs to serve the requirements of a changing economy in the same way that the expansion of high schools with a broad curriculum served us so well in the first half of the twentieth century. Early last century, technological advance required workers with a higher level of cognitive skills--for instance the ability to read manuals, to interpret blueprints, or to understand formulas."

However, he did not identify what the curriculum should be today. He said only that "We need to be forward looking in order to adapt our educational system to the evolving needs of the economy and the realities of our changing society. Those efforts will require the collaboration of policymakers, education experts, and -- importantly -- our citizens. It is an effort that should not be postponed."

Greenspan has also addressed education in past speeches. See, for example, speech of October 29, 2002, and story titled "Greenspan Addresses Education, Knowledge, Innovation and Technology" in TLJ Daily E-Mail Alert No. 540, November 1, 2002.

Greenspan did not expressly reference "intellectual property rights" in this speech. However, he did imply that protecting IPR, and investment in IPR, is important. He stated that "Only when property rights are adequately protected will the entrepreneurs willingly work a heroic eighteen hours a day in their garages or at their computer terminals, secure in the knowledge that they will own what they create. In addition, those workers who are fortunate to work in a nation that protects the property rights of investors, both foreign and domestic, will benefit from the low cost of capital associated with secure property rights. That protection has fostered a thriving venture capital industry to finance the nascent ideas of budding entrepreneurs and has motivated existing businesses to invest some of their profits in research development."

Nor did Greenspan offer anything about telecommunications regulation. However, his discussion of the importance of property rights may be relevant to policy debates regarding telecom regulation. He argued that "different degrees of property protection do apparently foster different economic incentives and outcomes". For example, "Someone who owns a piece of land, but is restricted to a specific use, does not have unequivocal ownership and will act accordingly."

He added that, "economic regulation, by its nature, impinges on the exercise of a property right. Continuous changes in regulations and, hence, in the consistency of property protection create a less certain environment, which undermines incentives to long-term investment and prevents the most productive use of our resources."

2/20. The Department of Homeland Security's (DHS) Privacy Office released a report [10 pages in PDF] titled "Report to the Public on Events Surrounding jetBlue Data Transfer". The report concludes that no violation of the Privacy Act by the Transportation Security Administration (TSA) occurred in connection with the transfer of airline passenger data by JetBlue.

The report was prepared by Nuala Kelly (at right), the Chief Privacy Officer of the DHS.

The report pertains to the transfer of passenger data, including names, addresses, phone numbers, itineraries, and other information, from JetBlue Airways Corporation to Torch Concepts. Torch is a company that sought the data to test a data analysis tool for assessing terrorist behavior. The TSA had an interest in the project, because it could benefit the TSA's CAPPS II program. The TSA therefore assisted Torch in obtaining airline passenger data. The TSA did not, however, receive the data.

CAPPS is an acronym for Computer Assisted Passenger Prescreening System. Before the terrorist attacks of September 11, 2001, the airlines conducted passenger screening, and administered the CAPPS I, subject to federal guidelines. In late 2001, the Congress passed the Aviation and Transportation Security Act, which created the TSA as a unit of the Department of Transportation (DOT). This Act gave the TSA responsibility for airport passenger screening. In late 2002, the Congress passed the Homeland Security Act, which, among other things, created the Department of Homeland Security (DHS), and transferred the TSA from the DOT to the new DHS. The new CAPPS II, the next generation passenger screening system, is intended to be a government (TSA) run system that replaces CAPPS I.

The DHS report concludes that "No Privacy Act violation by TSA employees occurred in connection with this incident. There is no evidence that any data were provided directly to TSA or its parent agency at the time, DOT. On the contrary, the evidence demonstrates that passenger data were transferred directly by jetBlue’s contractor, Acxiom, to Torch Concepts. As a result, the Privacy Act of 1974, which regulates the Federal Government’s collection and maintenance of personally identifiable data on citizens and legal permanent residents, does not appear to have been violated by TSA actions. Because TSA did not receive passenger data, no new system of records under the Privacy Act was established within TSA, nor was any individual’s personal data used or disclosed by TSA, its employees or contractors, in violation of the Privacy Act."

See also, story titled "EPIC Submits Privacy Complaint To FTC Regarding JetBlue", also published in TLJ Daily E-Mail Alert No. 744, September 23, 2003.

2/20. The Electronic Privacy Information Center (EPIC) wrote a letter [3 pages in PDF] to Joshua Bolten, Director of the Office of Management and Budget (OMB), regarding "the Justice Department’s decision to discharge the Federal Bureau of Investigation of its statutory duty to ensure the accuracy and completeness of criminal records maintained in the National Crime Information Center (NCIC) database". The letter urges the OMB to "exercise its power pursuant to 5 U.S.C. § 552(r) to review the FBI’s March 24, 2003 Privacy Act Notice published in the Federal Register and to revise the final rule to make the NCIC comply with crucial Privacy Act requirements."

The FBI published a notice in the Federal Register (March 24, 2003, Vol. 68, No. 56, at Pages 14140 - 14141) in which it concluded that "The Department of Justice (DOJ), Federal Bureau of Investigation (FBI), is exempting the FBI's National Crime Information Center (NCIC) ... to avoid interference with law enforcement functions and responsibilities of the FBI".

Subsection 552a(r) provides that "Each agency that proposes to establish or make a significant change in a system of records or a matching program shall provide adequate advance notice of any such proposal (in duplicate) to the Committee on Government Operations of the House of Representatives, the Committee on Governmental Affairs of the Senate, and the Office of Management and Budget in order to permit an evaluation of the probable or potential effect of such proposal on the privacy or other rights of individuals."

Meanwhile, subsection 552a(e)(5) provides that "Each agency that maintains a system of records shall ... maintain all records which are used by the agency in making any determination about any individual with such accuracy, relevance, timeliness, and completeness as is reasonably necessary to assure fairness to the individual in the determination". See, 5 U.S.C. § 552a.

The EPIC letter states that "The NCIC is the most extensive system of criminal history records in the United States, containing information on more than 52 million individuals".

The EPIC letter states that the NCIC is unreliable, and that its use is expanding, for example, to the US-VISIT program, the government's new border security program. The letter also states that "Another government initiative that may potentially make use of NCIC is the Computer Assisted Passenger Prescreening System (CAPPS II) currently under development by the Transportation Security Administration (TSA)."

"This action is urgently needed to ensure the integrity of criminal justice records and to protect the privacy of millions of individuals, particularly because NCIC access and functionality continue to expand", states the EPIC.

2/19. The Federal Bureau of Investigation (FBI) and groups representing some intellectual property owners announced an FBI anti-piracy seal. See, FBI release.

Jana Monroe, Assistant Director of the the FBI's Cyber Division, stated that "The FBI is also unveiling a new anti-piracy seal, which will be displayed prominently on digital and software intellectual properties. This anti-piracy seal should also serve as a warning to those who contemplate the theft of intellectual property, that the FBI will actually investigate cyber crimes, and will bring the perpetrators of these criminal acts to justice." See, statement.

Brad Buckles of the Recording Industry Association of America (RIAA) stated that "It is our hope that when consumers see the new FBI warning on the music they purchase, both physically and online, they will take the time to learn the do’s and don’ts of copying and uploading to the Internet."

Sea also, Software & Information Industry Association (SIIA) release.

2/20. President Bush wrote letters to the Speaker of the House and the President of the Senate in which he formally notified the Congress of his intent to negotiate a free trade agreement (FTA) with the nations of Costa Rica, El Salvador, Honduras, Guatemala, and Nicaragua.

2/18. Attorney General John Ashcroft gave a speech in Jefferson City, Missouri in which he referenced the role of information and the internet in deterring corporate and government corruption. He stated that "Information and transparency are keys to achieving a world in which corruption is not merely prosecuted, but prevented; not merely detected, but deterred." He continued that "with the explosive growth of the Internet and 500-channel digital satellite broadcasting, information has never moved more quickly, to more people, with more purpose. As our effort to deal with the corporate scandals has confirmed, information is the most therapeutic resource we have in achieving integrity in our markets and in our government." He has made similar remarks before. See, for example, January 22, 2004 speech at the World Economic Forum in Davos, Switzerland.

2/20. The Department of Homeland Security (DHS) published a notice in the Federal Register that recites, discusses and requests public comments upon an interim rule pertaining to receiving and protecting critical infrastructure information (CII). This rule pertains to the Homeland Security Act's exemption to the Freedom of Information Act (FOIA) for certain information about critical infrastructures, such as cyber security, that is voluntarily provided to the federal government. Public comments on this interim rule are due by May 20, 2004. See, Federal Register, February 20, 2004, Vol. 69, No. 34, at Pages 8073 - 8089. See also, story titled "DHS Announces Adoption of Rules Implementing the Critical Infrastructure Information Act" in TLJ Daily E-Mail Alert No. 840, February 19, 2004.

2/20. Federal Reserve Board (FRB) Governor Ben Bernanke gave a speech in Washington DC titled "The Great Moderation". He began by noting that "One of the most striking features of the economic landscape over the past twenty years or so has been a substantial decline in macroeconomic volatility.". He then proceeded to review three theories that have been offered as an explanation for this -- improved macroeconomic policies, structural changes in the economy, and good luck. With respect to structural change, he stated that "changes in economic institutions, technology, business practices, or other structural features of the economy have improved the ability of the economy to absorb shocks. Some economists have argued, for example, that improved management of business inventories, made possible by advances in computation and communication, has reduced the amplitude of fluctuations in inventory stocks, which in earlier decades played an important role in cyclical fluctuations." Macroeconomic policy is what the FRB does. He dismissed the theory of good luck. He also downplayed the role of structural changes.

The House will not meet. See, Republican Whip Notice.

The Senate will return from its Presidents Day recess, at 12:00 NOON. It will resume consideration of the motion to proceed to S 2061, the "Healthy Mothers and Healthy Babies Access to Care Act".

The Supreme Court will return from the recess that it began on January 26.

9:30 AM. The U.S. Court of Appeals (DCCir) will hear oral argument in AT&T  v. FCC, No. 03-1017. This petition for review pertains to pay telephones. See, FCC brief [46 pages in PDF]. Judges Randolph, Rogers and Tatel will preside. Location: Location: 333 Constitution Ave. NW.

10:00 AM. Secretary of Homeland Security Tom Ridge will give a speech titled "One-Year Anniversary of the Creation of the Department of Homeland Security". Location: George Washington University, Media and Public Affairs Building, Jack Morton Auditorium, 805 21st St., NW.

10:00 AM - 12:00 NOON. The American Enterprise Institute (AEI) will host panel discussion titled "European and American Approaches to Antitrust Remedies and the Institutional Design of Regulation in Telecommunications". The speakers will be Damien Geradin (University of Liege and College of Europe), Gregory Sidak (AEI), Abbott Lipsky (Latham & Watkins), and David Sibley (U.S. Department of Justice, Antitrust Division). See, notice. Location: AEI, Twelfth Floor, 1150 17th Street, NW.

10:30 AM - 12:00 NOON. Meg Bellinger, Associate University Librarian at Yale University, will give a speech titled "Stewardship in the Digital Age: Roles and Issues for Libraries for Preserving Our Cultural Heritage". For more information, call 202 707-1183. Location: Dining Room A, 6th Floor, Madison Building, Library of Congress.

Day two of a three day conference hosted by the National Emergency Numbering Association (NENA) titled "9-1-1 Goes to Washington". The scheduled speakers include FCC Chairman Michael Powell, NTIA Administrator Michael Gallagher, and members of the Congressional E911 Caucus. For more information, contact Dale Curtis or Susie Beamon at 202 715-1537 or Nena_media@yahoo.com. Location: Grand Hyatt Hotel, 1000 H Street, NW.

Deadline to submit comments to the Federal Communications Commission (FCC) regarding its proposed rules regarding universal service subsidies for rural health clinics. Comments are due by February 23, 2004. Reply comments are due by April 7, 2004. See, notice in the Federal Register, December 24, 2003, Vol. 68, No. 247, at Pages 74538 - 74541.

Deadline to submit comments to the Federal Communications Commission (FCC) regarding its proposed rules regarding use of satellite earth stations on board vessels in the 5925-6425 MHz, 3700-4200 MHz, 14.0-14.5 GHz and 11.7-12.2 GHz bands. The NPRM is FCC 03-286 in IB Docket No. 02-10. See, notice in the Federal Register, January 22, 2004, Vol. 69, No. 14, at Pages 3056 - 3064.

The House will meet at 2:00 PM for legislative business. The House will consider several non-technology related items under suspension of the rules. Votes will be postponed until 6:30 PM. See, Republican Whip Notice.

9:30 AM. The Senate Commerce Committee will hold a hearing on voice over internet protocol (VOIP). The witnesses will be Federal Communications Commission (FCC) Chairman Michael Powell, Jeffrey Citron (CH/CEO of Vonage), Glenn Britt (Ch/CEO of Time Warner Cable), Glen Post (Ch/CEO of CenturyTel), Stan Wise (President of the National Association of Regulatory Utility Commissioners), and Kevin Werbach (Supernova Group). The Committee notice states that it "will hear testimony on the appropriate federal and state regulatory treatment of VOIP, including obligations related to intercarrier compensation, disability access, E-911, universal service, and assistance to law enforcement". Location: Room 253, Russell Building.

10:00 AM. The Senate Judiciary Committee's Subcommittee on Terrorism, Technology and Homeland Security will hold a hearing on titled "Cyberterrorism". The scheduled witnesses are John Malcolm (Deputy Assistant Attorney General in charge of the Computer Crimes and Intellectual Property Section of the DOJ's Criminal Division), Keith Lourdeau (FBI Deputy Assistant Director), Amit Yoran (Director of the National Cybersecurity Division of the DHS), Dan Verton (author), Howard Schmidt (Chief information Security of EBay), and Michael Vatis (Task Force on National Security in the Information Age). Sen. Jon Kyl (R-AZ) will preside. See, notice. Location: Room 226, Dirksen Building.

12:30 PM - 2:00 PM. Michael Gallagher, Acting Administrator of the National Telecommunications and Information Administration (NTIA) will speak on broadcast issues at the Media Institute Communications Forum Monthly Luncheon. For more information, contact Clyde Ensslin (NTIA) at 202 482-7002. Location: Four Seasons Hotel.

4:00 PM. The House Judiciary Committee's Subcommittee on Courts, the Internet, and Intellectual Property will hold a hearing titled "Reauthorization of the Satellite Home Viewer Improvement Act". The hearing will be webcast. Press contact: Jeff Lungren or Terry Shawn at 202 225-2492. Location: Room 2141, Rayburn Building.

Day three of a three day conference hosted by the National Emergency Numbering Association (NENA) titled "9-1-1 Goes to Washington". The scheduled speakers include FCC Chairman Michael Powell, NTIA Administrator Michael Gallagher, and members of the Congressional E911 Caucus. For more information, contact Dale Curtis or Susie Beamon at 202 715-1537 or Nena_media@yahoo.com. Location: Grand Hyatt Hotel, 1000 H Street, NW.

The House will meet at 10:00 AM. See, Republican Whip Notice.

8:45 AM - 3:00 PM. The American Enterprise Institute (AEI) will host an event titled "The Advantages of High Productivity Growth". The speakers will include Barry Bosworth (Brookings Institute), Jared Bernstein (Economic Policy Institute), Elaine Chao (Secretary of Labor), Bruce Mehlman (Computer Systems Policy Project), Marvin Kosters (AEI), Adam Posen (Institute for International Economics), and Kathleen Utgoff (Bureau of Labor Statistics). See, notice. Location: AEI, 12th floor, 1150 17th St., NW.

10:00 AM. The House Budget Committee will hold a hearing titled "The Economic Outlook and Current Fiscal Issues". The witness will be Federal Reserve Board Chairman Alan Greenspan. Location: Room 210, Cannon Building.

10:00 AM - 12:00 NOON. The House Science Committee will hold a hearing titled "The Conflict Between Science and Security in Visa Policy: Status and Next Steps". Press contact: Heidi Tringe at 202 225-4275. Location: Room 2318, Rayburn Building.

10:00 AM. The President's Export Council's Subcommittee on Export Administration (PECSEA) will hold a partially closed meeting. The PECSEA provides advice on encouraging trade with countries with which the U.S. has diplomatic or trading relations and of controlling trade for national security and foreign policy reasons. The agenda includes a presentation by the Bureau of Industry and Security (BIS). See, notice in the Federal Register, February 3, 2004, Vol. 69, No. 22, at Page 5125. Location: Department of Commerce, Room 4832, 14th Street between Pennsylvania and Constitution Avenues, NW.

10:00 AM. The Senate Budget Committee will hold a hearing on President Bush's budget proposals for the Department of Homeland Security. Secretary Tom Ridge will testify. Location: Room 608, Dirksen Building.

12:15 PM. The Federal Communications Bar Association's (FCBA) Online Communications Practice Committee will host a brown bag lunch. The topic will be "VoIP Deployment Overview". The speakers will be Rick Whitt (MCI), Melissa Newman (Qwest), Elana Shapochinikov (Net2Phone). RSVP to Evelyn Opany at 202 689-7163. Location: Piper Rudnick, 1200 19th St., NW.

1:00 PM. The House Homeland Security Committee Subcommittee on Cybersecurity, Science and Research & Development will hold a hearing titled "Homeland Security Science and Technology Budget Hearing for Fiscal Year 2005". The witness will be Charles McQueary, Under Secretary for Science and Technology. See, notice. Location: Room 2325, Rayburn Building.

The House will meet at 10:00 AM. See, Republican Whip Notice.

9:30 AM. The Senate Foreign Relations Committee will hold a hearings to examine public diplomacy and international free press. The witnesses will be Margaret Tutwiler (Under Secretary for Public Diplomacy & Public Affairs), Gene Mater (The Freedom Forum), Adam Powell (Annenberg School of Communications), and Kurt Wimmer (Covington & Burling). Location: Room 419, Dirksen Building.

11:00 AM - 2:00 PM. Department of Homeland Security's (DHS) Homeland Security Science and Technology Advisory Committee (HSSTAC) will meet in open session. Under Secretary for Science and Technology Charles McQueary will speak at 11:00 AM. See, notice in the Federal Register, February 13, 2004, Vol. 69, No. 30, at Page 7245. Location: The Bolger Center, 9600 Newbridge Drive, Potomac, MD.

12:00 NOON -1:30 PM. The Steering Committee on Telehealth and Healthcare Informatics will host a luncheon. The speaker will be Phil Bond, the Under Secretary of Commerce for Technology. He will release a report titled "Innovation, Demand, and Investment in Telehealth". RSVP to Neal Neuberger at Nealn@hlthtech.com or 703 790-4933. See, notice. Location: Room 402, Dirksen Building.

12:30 PM. Supachai Panitchpakdi, Director General of the World Trade Organization (WTO), will speak at a luncheon hosted by the National Press Club (NPC). Location: NPC, 529 14th St. NW, 13th Floor.

2:30 - 5:30 PM. The Department of Homeland Security's (DHS) Homeland Security Science and Technology Advisory Committee (HSSTAC) will meet in closed session. See, notice in the Federal Register, February 13, 2004, Vol. 69, No. 30, at Page 7245. Location: The Bolger Center, 9600 Newbridge Drive, Potomac, MD.

The National Institute of Standards and Technology's (NIST) Computer Security Division (CSD) will hold a workshop on DRAFT Special Publication 800-60, titled "Guide for Mapping Types of Information and Information Systems to Security Categories". See, Volume I [PDF] and Volume II [PDF]. The workshop is open to government workers only. For more information, contact Elaine Frye at elaine.frye@nist.gov.

8:25 AM - 3:00 PM. The Department of Homeland Security's (DHS) Homeland Security Science and Technology Advisory Committee (HSSTAC) will meet in closed session. See, notice in the Federal Register, February 13, 2004, Vol. 69, No. 30, at Page 7245. Location: The Bolger Center, 9600 Newbridge Drive, Potomac, MD.

9:00 AM - 4:00 PM. The National Institute of Standards and Technology's (NIST) will host an event titled "Spam Technology Workshop". The price to attend is $70. See, notice in the Federal Register, November 25, 2003, Vol. 68, No. 227, at Pages 66075 - 66076. Location: NIST, Administration Building (Building 101), Green Auditorium, Gaithersburg, MD.

The National Institute of Standards and Technology's (NIST) Computer Security Division (CSD) will hold a workshop on DRAFT Special Publication 800-60, titled "Guide for Mapping Types of Information and Information Systems to Security Categories". See, Volume I [PDF] and Volume II [PDF]. This is a repeat of the February 26 workshop. The workshop is open to government workers only. For more information, contact Elaine Frye at elaine.frye@nist.gov.

Deadline to submit comments to the National Telecommunications and Information Administration (NTIA) in response to its notice in the Federal Register requesting comments to assist it in developing recommendations to the Federal Communications Commission (FCC) on the use of the 3650-3700 MHz band for unlicensed devices, such as 802.11 (WiFi) and BlueTooth. The FCC released its Notice of Inquiry [MS Word] on December 20, 2002. This is ET Docket No. 02-380. See, Federal Register, January 28, 2004, Vol. 69, No. 18, at Pages 4118 - 4120. See also, story titled "FCC Announces Notice of Inquiry Re More Spectrum for Unlicensed Use" in TLJ Daily E-Mail Alert No. 566, December 12, 2002, and story titled "NTIA Seeks Comments on Use of 3650-3700 MHz Band By Unlicensed Devices" in TLJ Daily E-Mail Alert No. 832, February 9, 2004.

2/20. President Bush gave a recess appointment to William Pryor to be a Judge of the U.S. Court of Appeals for the 11th Circuit. See, release. Pryor is currently the Attorney General of Alabama. Senate Democrats have filibustered a vote on his nomination.