United States Department of State
					Washington, DC 20520

					September 20, 1994

Philip R. Karn, Jr.
7431 Teasdale Avenue
San Diego, CA  92122

Dear Mr. Karn:
I am writing with regard to your appeal of CJ Case 081-94, concerning your "applied cryptography source code disk."

As you undoubtedly realize, your appeal raises particularly important and difficult issues. We have met with your attorney, Mr. Thomas J. Cooper, about the appeal, and have consulted with him several times by telephone. I wanted to convey to you personally, as we have conveyed to him, the care with which we are reviewing your appeal. The review has entailed widespread State Department and inter-agency consultation. To ensure that the various legal and policy issues raised by your appeal are satisfactorily addressed, I have found it necessary to extend the normal period for consideration of such an appeal.

The consideration of your appeal is now in its final stages. I appreciate the patience with this process that you and your attorney have shown, and look forward to shortly providing you with a response.



					Martha C. Harris
					Deputy Assistant Secretary
					     for Export Controls