EMPLOYMENT OF RETIRED ARMY OFFICER

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP59-00882R000200200053-6
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 1
• Document Creation Date: December 20, 2016
• Document Release Date: April 16, 2001
• Sequence Number: 53
• Publication Date: January 12, 1955
• Content Type: MF

Approved For Release 2006/lb/1 9 :'CIA-RDP59-0088] 0f10200200053-6_'~ ~ ~'.
~ -ee memorandum of
O HAS REVIEWED. 'P Jan 55 forwarded to
in iiel: of thi
r=a ' . Yety tn1i s for
tern.9 11F a only.
MEKORANDf7M FOR: Director of Central Intelligence
SUBJECT : Employment of Retired Army Officer
REFERENCE : Memorandum for DCI from Assistant Director for
Personnel dated 16 November 1954
1. We concur in I conclusion that II appoint-
ment should be undertaken within the provisions of Public Law 53?
The law is not sufficiently explicit to say beyond a doubt that his
appointment would be illegal if made other than through PL 53, but we
think that the balance of legislative intent would be against any
construction that would permit a clear distinction to be made be-
tween staff personnel used
F
2. The so-called dual compensation law is found in several
sections of the U. S. Code which must be read together. Section 59a
provides for a $3,000 limitation on an individual's right to receive
retired pay when he also holds a "civilian office" or position under
the United States Government or under any corporation, "the majority
of the stock of which is owned by the United States." He may,'hovever,
make an election to accept either the retired pay or the pay of the
civilian office or position. An exception is made for commissioned
officers "retired for disability incurred in combat with an enemy or'
the United States or for disabilities resulting from an explosion of
an instrumentality of war in line of duty." It seems to us extremely
doubtful that Congress would have excluded a non-stock corporation
if they had been aware of the possibility. Section 62 is an earlier
Act prohibiting the appointment "to any other office" with compensation
when such person already holds an office with compensation amounting to
$2,500. It excludes officers "who have been retired for injuries re-
ceived in battle or for injuries or incapacity incurred in line of duty."
No reference is made to Government ownership of corporations. While
some argument may be made that the "office" within the limitations Imposed.
upon the Agency by Section 62 is not equivalent to the position held. by
retired officers in our proprietary corporations, we feel that the score
conservative approach should be taken with regard to future personnel,
tacitly reserving our argument to the contrary for those we have taken
on board in the past. This approach would also provide full assurance
to the individual under the personal limitations imposed upon them by
Section 59a.
fAWRENCE R. HOUSTON
General Counsel
Approved For Release 206671' 071 CIA-RDP59-00882R000200200053-6