Good afternoon. I am delighted to be here. Let me begin by thanking the organizers of this summit for bringing us together today to begin a dialogue about the important issue of child online safety.

The representation here today at this Summit by both industry and children's groups is a clear indication of the importance of this issue to those of you in business who are working to build the Internet into everything we hope it can be -- in terms of its importance to our economy and our society -- and to those of you who are dedicated to the care, education, and nurturing of our nation's children.

The world is watching how we handle these extremely complex Internet issues. The United States is playing a key leadership role in the development of this global medium. What we do on the critical issue of Internet content and online safety for children, as well as other Internet issues, will have repercussions around the world.

As you know, the President announced the Administration's policy on electronic commerce in July of this year. The Framework that he established to guide policymaking with respect to electronic commerce clearly states that the private sector should lead on these issues and that the government approach would be non-regulatory.

I would like to elaborate on what this means and what the Administration's expectations are for private sector leadership.

The Administration is asking the private sector to lead on addressing issues that will facilitate the implementation of global electronic commerce. We believe that electronic commerce will be a key driver in our economy over the next decade and beyond, and that the electronic marketplace that is only beginning to emerge is the precursor of what will ultimately be a significant portion of U.S. economic activity.

U.S. companies are on the technological forefront, developing software and hardware that make electronic commerce possible and providing the services and goods that are attracting businesses and consumers, including children, to do business electronically. The Administration recognizes that electronic commerce is in its embryonic stages. We also recognize that technological progress is driving development of electronic commerce, much as it did development of the Internet itself, and that no one, not the government nor the private sector, can exclusively prescribe how electronic commerce will mature.

The government is just as interested in seeing electronic commerce thrive as the businesses here today in this room that stand to prosper when electronic commerce becomes a common form of doing business. Business is uniquely positioned to provide consumers around the world the confidence and the trust required to transact on the Internet and through other electronic means. For that reason, our policy says that the private sector should lead on addressing issues that may impede the development of electronic commerce. That does not mean that the government will not take an active role in identifying issues and ensuring that the private sector is fulfilling the obligation incumbent upon it: to work through a consensus process that includes all interested parties to develop solutions either through self-regulation or using technology.

This obligation is especially important with respect to content issues and how this country's children and parents are able to use the Internet and electronic commerce as a positive, engaging, and instructive element in children's lives.

Let me clearly say that a government hands-off approach to the Internet does not mean indifference when it comes to protecting our children. As President Clinton said, "It is especially important . . . to give parents and teachers the tools they need to make the Internet safe for children." In July he challenged the private sector to do just that, and at this Summit we are seeing the results. Some very impressive work has been done, and there is a lot left to tackle in the months ahead.

The Clinton Administration's approach to electronic commerce is clear: the private sector should lead, and when issues requiring policy or legal redress arise, the government should take a contractual rather than regulatory approach. Equally clear is the Administration's priority on children's issues and the President's commitment to ensuring that today's children have the skills, resources, and wherewithal to compete in tomorrow's economy -- an economy increasingly defined by electronic commerce.

The issue of child online safety has many facets, and the debate quickly broadens to issues of privacy, good content, and equitable access. The Summit epitomizes how we should approach these issues. First, we need to recognize their complexity. Protecting children online must be balanced with preserving free speech. Second, as demonstrated by the Summit, to produce viable solutions, all interested parties need to put aside their differing philosophical approaches and sit down at the same table and hammer out solutions that work for American parents and children.

The question on the table today is how can parents best assure that the materials their children access are family friendly.

I suggest the answer must be found in groups like this, led by private industry and children's advocacy groups. Parents, educators, and those who work with children must be able to select from a variety of options for protecting children that are suitable to their personal needs. These options should grow out of cooperation between the private sector, which can develop the technologies that parents and teachers need, and the user community, which can foster choice and variety and take advantage of technology to assure that children have a positive Internet experience.

The Internet springs from an innovative environment, in which technologies and applications are developing at breathtaking speeds. It has proven responsive to the needs of users. Witness the development of browsers, search and directory guides, and push technology, delivering custom-designed information.

What parents and those who work with children need are tools to make the Internet safe for children. Some options already are on the market. Software programs like "Net Nanny," "Cyber Patrol," and "Surf Watch" have sold millions of copies to block access to unwanted materials in homes and offices. AOL and Disney announced new initiatives yesterday. Others are being explored here today.

As this happens, it is important to keep in mind that the Internet is unlike more familiar communications media that are traditionally subject to government regulation. Unlike broadcast, for example, there appears to be no technical scarcity that would limit the number of people who can communicate via the Internet. Unlike cable TV systems and newspapers, the Internet is an open conduit on which all participants are publishers and content distributors. Thus, government intervention in the market is less justified, on the one hand, and, on the other hand, far less likely to succeed.

This Summit offers a prototype of the kind of approach we're promoting around the world to resolve Internet policy questions. As some of you know, we have been working with the private sector to convince other nations of the advantages of a user empowerment approach over cumbersome government regulation of the Internet.

The President has asked the Commerce Department to work closely with groups like this to find responsible ways to meet the challenge of protecting children online and ensuring that our nation does not become one of information haves and information have nots.

Ready access to technology is an important part of our family friendly Internet policy. In order to understand what kind of technology dispersion we can achieve through a fully competitive market-place, in February we will be holding a conference on low income and rural access to advanced network technologies.

The Department of Commerce will also be taking a close look at the collection and use of personal data about children, who may lack the cognitive ability to recognize and appreciate privacy concerns. In the spring, we will be hosting a conference on the issue of privacy online, with special attention to the privacy of and marketing to children.

Finally, we have been working with the private sector on an initiative to bring together Internet content and service providers to ensure that children have ready access to high quality digital content. We expect to discuss this initiative, along with advertising practices at a forum this spring as well.

The private sector, as this Summit amply demonstrates, has the vision, means, and will to meet the technical and policy challenges presented by the Internet child safety issue. We applaud the ability of a diverse group of companies and organizations to put aside their differing philosophies in order to meet the challenges of ensuring that children can safely use the Internet.

Our task as parents, as teachers, as business people, as Americans concerned about our children, is to enable them to access the wonderful world that cyberspace offers without exposing them to materials and situations with which they may be unprepared to deal.

So when we say the private sector leads on electronic commerce, we are talking about the private sector leading a partnership among itself, the government, and the groups that represent the different interests of the American public, such as the children's advocacy groups here today.

It is clear that electronic commerce will be an important part of all of our lives in the coming years. If we continue to address issues of concern that could impede the development of electronic commerce as we have through this summit, I believe that the opportunities are limitless. The U.S. will be positioned to take full advantage of the benefits of electronic commerce and the Internet, which include providing our children with the resources that they need to develop into productive and responsible citizens, ready to engage the world online.

I commend you all once again for advancing this important dialogue, one that is being watched by an international audience, but with its crucial impact in our local communities -- in homes across our nation.

Thank you.

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