After that long thread on SAAG and a subsequent off-list discussion with
Casey (plus my reading Smack documentation) I'm almost ready to reach
the following conclusions:

 - We don't need policy agreement for MLS.  Servers have all the
   necessary information when comparing labels without reference to a
   policy.  However, clients have to be sharing a common MLS policy.

 - For "smart" MLS and Smack servers we need a method by which servers
   can determine the label range/set of client and user principals, but
   this need not be specified in a standard way except where label
   range/set is borne by authentication credentials (Kerberos V ticket
   authorization-data, PKIX cert extensions).

   This is already described in my RPCSEC_GSSv3 document.

 - For Smack we don't need policy agreement either, but it will be
   useful to distribute common subsets of Smack policy to clients, and
   to prefix labels from local-only sub-policies with a client ID (or
   client DOI, if you wish).

 - For DTE I've no idea what to do.  Policy agreement seems like a
   flight of fancy for DTE.  But *much* more importantly, because the
   process label transitions can span so many labels we simply cannot
   have too smart a server: the server can't meaningfully constrain the
   labels that a user at client can assert, therefore the server must trust
   all client assertions of process DTE labels or none at all.

   I.e., for DTE we can only have "dumb" servers.

Nico
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