it sounds like you don't get a choice about the latter though, so you may as well just say "no" to both 
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Let me clarify something, are you in favour of the *results* of key escrow (e.g. state access to private data), so long as something other than key escrow is used to achieve that?
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So let me answer your first question with a question: if Western governments mandate key escrow, will the government of UAE be able to use it under the UAE’s legal regime? If yes, then I *am* objectively uncomfortable with key escrow. If no, hello lucrative 0day market.
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Congress and the White House routinely overestimate the government's purchasing power as a lever to effect policy, mainly because it's the easiest lever they can move. I wouldn't rely on it to justify any major policy choice.
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Those of us who remember "C2 by '92" are likely to agree with you.
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