We discuss a quantum key distribution scheme in which small phase and
amplitude modulations of CW light beams carry the key information. The presence
of EPR type correlations provides the quantum protection. We identify universal
constraints on the level of shared information between the intended receiver
(Bob) and any eavesdropper (Eve) and use this to make a general evaluation of
security. We identify teleportation as an optimum eavesdropping technique.Comment: 6 figure