NETWATCH . . . NET DENIZENS SPARED FROM FBI SNOOPING

A major bill that givesthe FBI power to continue surveillance on new phone networks was approved lateFriday night, but online services will largely be spared from the government'swatchful eye. The Digital Telephony Bill -- in the Senate it's S2375, in theHouse HR4922 -- forces telephone companies to make any new networks they develop"wiretap ready" for the FBI; Congress has set aside $500 million over four yearsto reimburse the corporations for compliance. However, an earlier draft of thelegislation was changed so that online bulletin board services such as AmericaOnline have been excluded from the provisions. And restrictions on releasingrecords regarding transactions on the Net were actually tightened. Jerry Berman,deputy policy director of the Electronic Frontier Foundation, called the newbill a "significant victory" for electronic wanderers. Clinton's expected tosign it Wednesday.