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/usr/share/doc/licq/README.GPG is in licq 1.6.0-2.

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The actual contents of the file can be viewed below.

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CONFIGURATION
=============

Licq now supports GPG for encrypted messages. The latest GPGME version has 
been changed severly and won't work with this version of Licq.  The recommended
version is 0.3.16.

The configuration file is ~/.licq/licq_gpg.conf and looks like this:

--START--

[gpg]
passphrase = my_passphrase

[keys]
16325723.1281975153 = 0x2290A71F
70908044.1281975153 = leecher
mathrawka.1281975153 = 0x2290A71F
keating_jon@hotmail.com.1297305183 = 0x2290A71F

--END--

The passphrase key contains the passphrase which shall be passed to gpg for
decrypting.

Please note that it is a high security risk to put your passphrase in a file as
clear text. So it is recommended that you:

   1. create an extra key with an extra passphrase just for licq-gpg OR you
   2. use gpg-agent. In this case passphrase can be left blank because the
      passphrase is managed by gpg-agent. gpg-agent is transparent for licq-gpg.

The keys section contains uin/public key assignments. They have the form
"<user>.<protocol> = key name". The key names are used by gpg (see man page).
For values of the <protocol> please look at the licq_gpg.conf file.

USING
=====

Encryption

In order to send GPG encrypted messages to other users, it is required that:

   1. you assigned a valid and accessible GPG public key to the respective
      user's id (see Configuration),

Decryption

licq-gpg will try to decrypt all incoming messages beginning with
-----BEGIN PGP MESSAGE----- using the given passphrase. If a message is
decrypted, the E_ENCRYPTED flag will be set (recognisable by the "E" in the
history).

GPG FOR OTHER CLIENTS
=====================

Mirabilis ICQ: http://www.samopal.com/soft/pgpicq/index.php
Miranda ICQ: http://miranda-im.org/download/details.php?action=viewfile&id=216