state variable could model the instantaneous fading coefficient of the channel. In broadcast channels the state sequence models an interfering message to another receiver while in watermarking systems the state sequence represents a host sequence on which information message needs to be embedded. Clearly depending on the application the state sequence may be known to either the sender or the receivers or both. In this paper, unless otherwise stated, we assume that the entire state sequence is known to the sender noncausally. As will be discussed, the seemingly more general case when each receiver also has (a possibly noisy) side information can be easily incorporated in this model. Some of our results only require causal transmitter side information although we note in advance that we do not consider this problem in detail.

In the present paper we only focus on the case when there is no discussion channel available. We point the reader to our conference papers [@khisti:10; @khisti:09] for some results on the case when a public discussion channel is available. Notice that our setup differs from [@mitrapant:06; @chenVinck:06; @LiuChen:07] that study the wiretap channel with state parameters and require that the transmitter send a confidential message to the 