"Google was a watershed moment," said James Lewis, a former State Department official and cybersecurity specialist at the Center for Strategic and International Studies. "It helped push the debate in the direction of better security."
Cybersecurity involves the protection of government and corporate computer systems from hackers. In the wake of the cyber attacks on Google, officials at the State Department circulated a proposal to create an ambassador-like post, according to officials briefed on the proposal. This person would take on such duties as negotiating cyber policy at the United Nations, and making sure the U.S. has a consistent position on cybersecurity when issues come up overseas.
The proposal, however, has run ran into internal resistance from the State Department's intelligence bureau, which currently oversees most cybersecurity matters at the department, said Mr. Lewis, who frequently advises the administration.
The turf wars inside the State Department became apparent several months ago, when Deputy Secretary of State James Steinberg met with the more than one dozen bureaus with an interest in cybersecurity issues and discovered many thought they should run cybersecurity for the department, officials said.
A senior administration official confirmed that the State Department was weighing the creation of the post. "This person would coordinate a full range of related issues from cybersecurity to Internet freedom to economic issues," the official said, adding that, "the security dimension bleeds over into economic issues."
The emerging solution is to create a high-level cybersecurity position. The person in this job would either report to a top State official like the deputy secretary or to a panel of representatives from the major department bureaus involved in computer security policy, U.S. officials said.
The Senate Foreign Relations Committee is also drafting a proposal to create the post. It would be an ambassador-type position to be confirmed by the Senate, meaning the official could be called before Congress to testify. It is modeled after the department's counterterrorism coordinator, who also carries the rank of ambassador.
The committee has been negotiating with the State Department over whether the position should be mandated by law or left to the department to establish internally, a Senate Democratic aide said. Both lawmakers and the administration agree a position should be established, the discussion is about how to do it, the aide said.
The proposal would be folded into the bill authorizing funding for the State Department. It isn't clear yet whether the Senate will take that bill up this year, given the limited time left on the legislative calendar.
Another proposal gaining political momentum is a broader measure that would create a cyber post at the State Department and establish attachés for cybersecurity in U.S. embassies. It would also require the administration to identify the countries that are havens for cybercrime and which ones are doing little to combat it.
The findings, updated annually, would be used to prioritize foreign-aid programs to combat cybercrime.
Countries that fail to improve efforts to counter cybercrime could also face U.S. penalties. The president would have a menu of options for punishment—from limiting new foreign aid to restricting financing from the Overseas Private Investment Corp., a U.S. agency that helps U.S. businesses invest overseas.
The proposal is set to be unveiled Tuesday by Sens. Kirsten Gillibrand (D., N.Y.) and Orrin Hatch (R., Utah).
"One of the greatest threats we have to our national security is cybercrime, cyber espionage, cyber terror, and cyber attack," Ms. Gillibrand said.
It has received early backing by a variety of U.S. tech and financial companies, including Microsoft Corp., eBay Inc., and Visa Inc.