'EMPLOYEE' SERVICES

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP59-00882R000200350022-5
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 3
• Document Creation Date: December 15, 2016
• Document Release Date: October 31, 2001
• Sequence Number: 22
• Publication Date: October 21, 1955
• Content Type: MFR

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OGC Has Reviewed ~.
=21. October 1955
SUBJECT: "Ehrployee" Services
1. This morning from 0930 to 1200, I spoke with W. James J.
McGurrin, a member of the Program Planning Staff of the Civil
Service Cowd scion. The meeting was at my request in order thaiu
I might pursue with Mr. McGurrin, whose primary responsibility
concerns policies for the hiring of foreign nationals abroad,
certain aspects of the problem we face in determining the status
of contract employees and employees of proprietaries.
25X1A
2. Prior to working for CSC, Mr. McGurrin was employed by
the Air Force, where he was a co-employee of F- I Chief of STATOTHR
the Contract Personnel Division of this Agency. In his then capacity,
Mr. McGurrin bad considerable contact with the provision of cover for
STATOTHR
this Agency and so knows something of our problems.
3. In May of 1951, the Air Force completed a study in which
they had the cooperation of many other Government agencies, including
the Commission, pertaining to the hiring of foreign nationals abroad.
As background for this study, they had to consider more general
factors concerning employment of all types of personnel by the
Government. Against this background knowledge, Mr. McGurrin was
able to offer the following guidance, which is, however, by his own
statement, not necessarily the last word on each point.
-. Speaking of Government agencies generally and not of CIA
in particular, Mr. McGurrin said that it is not possible for an
agency to enter into contracts for personal services except with
consultants and experts. All other types of personnel must be
appointed.
5. He pointed out, however, that despite this general rule,
about which there seems to be no question, marry devices have been
resorted to in the hiring of foreign nationals abroad for the various
cc*nponents of the Department of Defense. In hiring foreign nationals
it often becomes necessary, either because they require it, or
because their Government desires to afford to them the protection
of local laws, such as Workmen's Compensation. Conversely, it is
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often inappropriate to provide them with the benefits available
generally to employees of the United States Government. One device
that has been used is to enter into a procurement contract with the
local government for the delivery of so many working bodies' The
expense of this is charged to Object Class 0-7, Non-personal Services.
In some cases, the instrument is an executive agreement rather than a
contractor an agreement of whatever type is under aegis of an
earlier. treaty. Where a treaty is involved, everything is probably
perfectly legal. Where there is no treaty involved, this is strictly
a device. Mr. McGurrin indicated that under almost identical fact
situations in two different areas, one area was charEing the expense
to 0-7 and the other to 0-1. In some areas only an oral agreement
exists between a United States Commander and local authorities. In
the Azores ,where we were informally withholding taxes for the local
government, the Comptroller General said we couldn't do this and
something should be done to straighten it out, but that he would not
require any immediate action because this course of action had gone
on for some time. Mr. McGurrin said the main problem is that our
legislation is not equipped to meet the problems of what I referred
to as our "colonial era". Local commanders, having an over-riding
mission to accomplish, are forced to work out whatever is acceptable
to the local government regardless of the limitations of their own
authority.
7. In discussing the use of the Armed Services Procurement Act
for the hiring of foreign nationals abroad, Mr. McGurrin pointed out
that Army JAG had held this legal and Air Force JAG had held it illegal.
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In my opinion and that of Mr. McGurrin, Air Force JAG reached a
more reasonable legal conclusion, and, in fact, it is impossible
for me to see how Army JAG could have reached the conclusion it
did without some very tortuous and specious reasoning. Essential,
however, even to this type of application of the Act, is the
intervention of a third party. The Army has contracted with local
governments. I do not think we could use this technique anyway,
because we can't very well contract in most circumstances with
the host government, and a proprietary wouldn't really be a third
person.
8. Mr. MoGurrin said that typically Services employed wives
on excepted indefinite appointments. Since excepted appointments
are within the control of an agency head, at least when based
upon statute, he felt that they could be made for a year, two
years, sixteen hours, three weeks, one year;- or less, or almost
any other time span that would seem appropriate so that no problems
of tenure would be likely to arise.
9. Comment:
I learned from talking to Mr. MoGurrin that the Defense
agencies operating abroad are probebly using a lot of illegal STATOTHR
means to get personnel--foreign national personnel--but that when they
are dealing with United States citizens, they rely on excepted
appointments.
I Unless there are reasons arising from
this Agency's peculiar functions which require variations, it seems
to have been the established Agency policy to accord as closely as
possible with general personnel policies of the Government.
10. I would greatly appreciate comments on the foregoing from
any member of this Office.
25X1A
Office of General Counsel
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