Using polarization-entangled photons from spontaneous parametric down-conve
rsion, we have implemented Ekert's quantum cryptography protocol. The near-
perfect correlations of the photons allow the sharing of a secret key betwe
en two parties. The presence of an eavesdropper is continually checked by m
easuring Bell's inequalities. We investigated several possible eavesdropper
strategies, including pseudo-quantum-nondemolition measurements. In all ca
ses, the eavesdropper's presence was readily apparent. We discuss a procedu
re to increase her detectability.