Abstract ~ This paper provides a general treatment of privacy amplification by public discussion, a con-cept introduced by Bennett, Brassard and Robert [l] for a special scenario. The results have applications to unconditionally-secure secret-key agreement proto-cols, quantum cryptography and to a non-asymptotic and constructive treatment of the secrecy capacity of wire-tap and broadcast channels, even for a consider-ably strengthened definition of secrecy capacity. This paper is concerned with unconditionally-secure secret-key agreement by two communicating parties Alice and Bob who both know a random variable W, for instance a random n-bit string, about which an eavesdropper Eve has incomplet
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