OVERSEAS DIFFERENTIALS AND ALLOWANCES ACT

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP91-00965R000400090002-6
• Release Decision: RIFPUB
• Original Classification: K
• Document Page Count: 69
• Document Creation Date: December 15, 2016
• Document Release Date: September 5, 2003
• Sequence Number: 2
• Publication Date: August 14, 1959
• Content Type: REPORT

Approved For Release 2003/10/16 :.CIA-RDP91-00965R000400090002-6
86TH CONGRESS I HOUSE OF REPRESENTATIVES I REPORT
18t Session No. 902
OVERSEAS DIFFERENTIALS AND ALLOWANCES ACT
AUGUST 14, 1959.-Committed to the Committee of the Whole House on the
State of the Union and ordered to be printed
Mr. MORRISON, from the Committee on Post Office and Civil
Service, submitted the following
REPORT
[To accompany H.R. 7758]
The Committee on Post Office and Civil Service, to whom was
referred the bill (1I.R. 7758) to improve the administration of overseas
activities of the Government of the United States, and for other
purposes, having considered the same, report favorably thereon with
amendments and recommend that the bill as amended do pass.
AMENDMENTS
The amendments are as follows:
(1) Page 2, line 21, strike out "and (C) the General Accounting
Office;" and insert in lieu thereof "(C) the General Accounting Office,
And (D) the Library of Congress;";
(2) Page 28, line 13, strike out "(a), (e), or (f)" and insert in lieu
thereof "(e) or (f)";
(3) Page 28, line 23, insert double quotation marks after the period
at the end thereof;
(4) Page 28, strike out line 24 and all that follows down through the
period and quotation marks in line 7 on page 29;
(5) Page 29, line 12, strike out "Para-" and all that follows down
through the period in line 16.
PURPOSE OF AMENDMENTS
Amendment No. (1) extends the definition of "Government agency"
contained in section 111(2) of the bill to cover the Library of Con-
,..,...,,,. A,.
Congress will be eligible for the allowances and differentials in foreign
areas provided by title II of the bill
This am
d
t
ill
i
h
.
en
men
w
ass
st t
e
Library of Congress in connection with the foreign acquisitions pro-
Ap+hved Foe' .Release 2003/10/16: CIA-RDP91-00965R000400090002-6
 App?oved FcKvRgeD3MJW isCI&f[ EOM- R2 400090002-6
gram of the Library and certain other activities; of the Library in
foreign areas such as activities under section 104(n) of the Agricultural
Trade Development and Assistance Act of 1954 as amended by the Act
of September 6, 1958 (Public Law 85-931). It m%y be observed that
the employees of the Library of Congress also will receive the benefits.
of the amendments made by titles III and IV of the bill to the Ad-
ministrative Expenses Act of 1946 and the Ann.ial and Sick Leave.
Act of 1951.
Amendment No. (2) eliminates a reference to s-ibsection (a) of the
first section of the Administrative Expenses Act c f 1946 contained in.
section 912 of the Internal Revenue Code of 1954 as proposed to be
amended by the bill. This reference is unnecessary in view of an.
existing ruling of the Department of the Treasury,.
Amendment No. (3), which is a technical samendment, inserts
double quotation marks at an appropriate place in the bill.
Amendment No. (4) eliminates from section 912 of the Internal
Revenue Code of 1954 as proposed to be amended by the bill the
-exemption from tax with respect to certain travel expenses proposed
by the bill as introduced.
Amendment No. (5) eliminates a provision relating to the applica-
tion of paragraph (3) of section 912 of the Internal Revenue Code of
1954 as proposed to be amended by section 523(1) of the bill. The
matter is covered by the discussion in the Explanation of the Bill, as,
Reported, of such section 912 as amended by the bill.
STATEMENT
The purpose of H.R. 7758, as set forth in section 101, is to.improve,
and strengthen the administration of overseas activities of the Gov-
ernment of the United States. This purpose is to be accomplished
by the establishment of a coordinated and reasc nably uniform sys-
tem for more effectively compensating Governr'ient employees for
additional costs, and for hardships and inconveniences, incident to
their working assignments in overseas areas. T' e bill provides for
uniformity of treatment for all overseas employees to the extent
justified by relative conditions of employment. The allowances,
differentials, and expenses authorized by the bill apply only to citi-
zens of the United States employed by the Government in overseas
activities, except as otherwise provided by law.
This legislation carries out the recognized principle that the Gov-
ernment should provide uniform treatment for all of its civilian
employees who are assigned to overseas posts ol' duty with respect
to additional expenses, necessarily incurred by such employees in.
relation to their overseas service, which Government employees
within the United States do not incur and with respect to hardships,
inconveniences, and other differences in environment orconditions of
employment at overseas posts of duty which' justify additional
compensation or allowances.
BACKGROUND OF LEGISLATION
This legislation is based on an official recommendation submitted
by the Department of Defense as part of the President's legislative
program in the 85th Congress.
Approved For Release 2003/10/16 : CIA-RDP91-00965R000400090002-6;
 Approved For Release 2003/10/16 : CIA-RDP91-00965R000400090002-6
OVERSEAS DIFFERENTIALS AND ALLOWANCES ACT 3
The reported bill will place in effect unanimous recommendations
.of the Committee on Post Office and Civil Service of the House of
Representatives set forth in House Report No. 2109, 84th Congress.
The legislation has been developed through extensive hearings, con-
ferences, and studies conducted during the past four years by the Civil
Service Subcommittee of the Committee on Post Office and Civil
Service, in cooperation with the Department of Defense, the Depart-
meat of State, the Personnel Adviser to the President, the United
States Civil Service Commission, the General Accounting Office, and
other agencies having overseas responsibilities.
Over a period of years the Congress and the Executive Branch
have become increasingly concerned with the need for clarification
and strengthening of statutes and regulations affecting the working
and living conditions of United States citizens employed overseas.
The importance of sound and effective personnel policies in the con=
duct of overseas programs of the Government is well recognized.
United States citizens assigned to overseas civilian posts are responsible
for an important part of the duties necessary to the success of out
military and economic commitments in foreign countries. These
employees in a sense represent the United States in the eyes of the
world. The success of our programs abroad depends largely upon
obtaining maximum results from their efforts. The effectiveness of
their performance-and, consequently, the accomplished results of
entire programs-are directly related to the facilities which the
Government places in their hands to aid them in carrying out their
assigned tasks.
References to studies of overseas personnel problems, beginning in
the 82d Congress, each of which deals at some length with matters
covered by H.R. 7758, appear in Appendix C of this report.
Title I
Title I of the bill contains a declaration of Congressional purpose
discussed above, and certain definitions which apply primarily to the
allowances and differentials authorized by title II of the bill.
Title II
Title II of the bill represents a consolidation of existing provisions,
coupled with certain additional authorizations, for the payment of
allowances and differentials to. United States citizens employed by
the Government in foreign areas. The allowances. and: differentials
authorized by title II apply only to United States citizens at foreign
posts and may be paid only in accordance with regulations issued by
the President.
Section 211 of the bill adds, for all departments and agencies, new
authority (1) for payment of a temporary lodging allowance for a
period not exceeding one month immediately before final departure
of an employee from an overseas post and (2) for reimbursement of
reasonable expenses incurred for initial repairs, alterations, and im-
provements in order to make substandard living quarters habitable.
This section extends to departments and agencies (other'than those
operating under the Foreign Service Act of 1946 or statutes related
Approved For Release 2003/10/16 : CIA-RDP91-00965R000460090002-6
 Approved For Release 2003/10/16 : CIA-RDP91-00965R000400090002-6
OVERSEAS DIFFERENTIALS A 7D A.I4LOWAKCES ACT
thereto, which already have such authority) authority (1) to pay a
temporary lodging allowance for a period not exceeding three months
upon first arrival of an employee at a foreign post, c2) to include water
as a utility covered by quarters allowances, and (3) to make advance
payment of quarters allowances. The section continues and consoli-
dates, for all departments and agencies, existing authority to furnish
quarters in foreign areas or to grant allowances in l:eu thereof.
Section 221 amends,,for all departments and agencies, existing
authority to grant a separate maintenance allowance for dependents
of an employee in a foreign area so as to. permi': payment of such
allowance where an employee must maintain a separate establishment
for his dependents away from his post of duty but not necessarily
outside of the country of assignment. This section continues and
consolidates, for all departments and agencies, authority to pay (1) a
post allowance to compensate for the difference ii local living costs
which are higher than those in Washington, D C., (2) a transfer
allowance upon assignment of an employee to duly at any post in a
foreign area or at a post in the United States between foreign assign-
ments, and (3) an allowance for education of an employee's dependents.
The section continues, for departments and agenc;os operating under
the Foreign Service Act of 1946 or related laws and adds, for all
other departments and agencies, authority to provide transportation
of an employee's dependents for educational purpc see.
Section 231 continues and consolidates, for al. departments and
agencies, existing authority to pay a hardship past differential, not
exceeding 25 percent of basic compensation, for conditions of en-
vironment at foreign posts which warrant additional compensation
as a recruitment and retention incentive.
Title III
Title III of the bill consolidates and clarifies existing authorities
for all departments and agencies to make paymend or reimbursement
for transportation or storage, or both, of certain personal property of
employees who are assigned to overseas dutiei. This title also
modifies, and extends to other departments and agencies, certain
authorizations presently applicable only to departments and agencies
operating under the Foreign Service Act of 1946 or related legislation.
Section 301 extends to all departments and agencies authority,
similar to that now available to the Foreign Service and related
agencies, to pay representation expenses incurred in the promotion of
of#icial policies and programs.
Section 311 reenacts and clarifies existing Foreign Service and
Central Intelligence Agency authority to pay the ,;ost of packing and
unpacking, transporting to and from storage, and storing the furniture
and household and personal effects of employees assigned to foreign
posts, and extends comparable authority to other departments and
agencies.
Section 321 extends to other departments and agencies authority,
now applicable only to departments and agenci zs operating under
the Foreign Service Act of 1946 or related legislation, to pay unusual
expenses incident to the operation of official residences suitable for
certain senior representatives of the United States'at foreign posts.
Section 331 extends to all departments and agencies authority, now
applicable only to those operating under the Foreign Service Act of
Approved For Release 2003/10/16 : CIA-RDP91-0965R000400090002-6--
 Approved F%&o
,&q ;, IA?CA4DR ,$ir 9}@fi5FQ040009fh002-6
1946 or related legislation, to transport the privately-owned motor
vehicle of an employee to his overseas post, subject to a general limita-
tion that only one such vehicle may be shipped during each four years
of overseas service. This section also imposes the one-in-four-years
limitation on departments and agencies operating under the Foreign
Service Act of 1946 or related legislation.
Title IV
Title IV extends to all departments and agencies (other than those
operating under the Foreign Service Act of 1946 or related legislation,
which already have such authority) authority to grant home leave,
not exceeding one week for each four months of service, to an employee
who completes twenty-four months of continuous service abroad.
Authority to accumulate up to forty-five days of annual leave is
extended to employees of departments and agencies operating under
the Foreign Service Act of 1946 or related legislation. This title also
extends certain provisions of the Annual and Sick Leave Act of 1951,
now applicable to overseas employees who were recruited or trans-
ferred from the United States, to those overseas employees who were
recruited or transferred from the Commonwealth of Puerto Rico or
the possessions of the United States.
Title V
Section 501 contains a general appropriation authorization to carry
out the purposes of the bill.
Section 511 contains repeal and amendatory provisions necessary
to conform certain provisions of existing law to the substantive
provisions of H.R. 7758.
Sections 521 and 522 in effect are savings provisions, continuing
(1) the effect of references in other laws to any provision of law re-
pealed, modified, amended, or superseded by this bill and (2) existing
allowances and differentials until appropriate regulations are issued
to replace them under this bill.
Section 523 continues, for all departments and agencies, the effect
of the existing income tax exemptions of foreign areas allowances
(but not differentials) contained in section 912 of the Internal Revenue
Code of 1954.
The Department of Defense, which employs approximately two-
thirds of all United States citizens working for the Government in
foreign areas, reports that the additional cost of the legislation to the
Department will be $2,972,000 for the fiscal year ending June 30,
1960, and $2,890,000 for each fiscal year thereafter. Overseas em-
ployees affected by this legislation were distributed in February 1959
among Government agencies, as follows:
Department of Defense------------------------------------------
21,085
Department of State (including Foreign Service and International
Cooperation Administration)------------------------------------
9, 799
United States Information Agency--------------------------------
1, 124
All other departments and agencies--------------------------------
1, 335
Total ----------------------------------------------------
33,343
Approved For Release 2003/10/16 : CIA-RDP91-00965R000400090002-6
 Aproved F8Y4W*4&dD20MMtMS~SCIA>3R1M1~-1A6-F@0400090002-6
Representatives of the Department of Defense testified that no
material change in the number of such employees is expected in the
foreseeable future.
No additional cost was reported by the Departr.ient of State or by
he Department of Defense, the Department o:' State
the Unit
d
,
e
States Civil Service Commission, the Acting Comptroller General of
the United States, and the Librarian of Congress submitted reports
favoring the principles of H.R. 5007 with certain recommended amend-
ments on the basis of which H.R. 7758 was i.ntrodu,,ed, after hearings,
to replace H.R. 5007. The Department of the 'Treasury submitted
a report on H.R. 7758, containing certain recommendations with
respect to the income tax treatment of foreign areas allowances gener-
ally under section 912 of the Internal Revenue Code of 1954. The
Committee amendments in the reported bill. carry out the recommen-
dation of the Department of the Treasury that the bill not extend or
enlarge existing tax exemptions for such allowance..
These reports appear immediately following the :Explanation of the
Bill, as Reported.
EXPLANATION OF THE BILL, As REPORTED
SHORT TITLE
The first section of the bill immediately precedin; title I supplies a
short title for the provisions of the bill by providing that the proposed
new law may be cited as the "Overseas Differentials and Alplowances
Act"
TITLE I-PURPOSE AND DEFINITIONS
Title I consists of Part A (Purpose) and Part B IDefmitions).
PART A-PURPOSE
Section 101 sets forth the general purpose of tho bill-i.e., to im-
prove and strengthen the administration of overseas activities of the
Government of the United States of America. It is intended that this
general purpose be accomplished by the operation of the bill in four
ways, as follows:
(1) By providing a means for more effecti'ely compensating
civilian officers and employees of the Government for extra costs
and hardships incident to their overseas assignments.
(2) By providing for uniform treatment of civilian officers
and employees of the Government stationed overseas to the
extent justified by relative conditions of employment. (Appli-
cation of this principle of uniform treatment will eliminate
certain inequitable and unjustifiable disparities and differences
which now exist with respect to the treatmer t of Government
civilian officers and employees stationed overseas.)
(3) By establishing the basis for the more f.lficient and equi-
table administration of the laws compensating Government
civilian officers and employees for extra costs and hardships
incident to their assignments overseas.
(4) By facilitating for the Government the. recruitment and
retention of the best qualified personnel foi- civilian service
overseas.
Approved For Release 2003/10/16 : CIA-RDP91-00965R000400090002-6
 Approved FW pMeb?PMA:Qkl C Q ,$1 ? 0400090002-6
Section 111 contains definitions of the terms "Government"
"Government agency", "employee", "United States", "continenta
United States", and "foreign area". These definitions are applicable
with respect to title I, which sets forth the statement of purpose and
these definitions, with respect to title II, which provides for certain
allowances and differentials in foreign areas, and with respect to
section 522 of title V, which provides for the continuation of allow-
ances and, differentials provided for under the laws existing immedi-
ately prior to the enactment of the bill until regulations are issued
under the provisions of the bill.
These definitions do not apply to title III, which relates to certain
miscellaneous expenses, i.e., representation expenses, storage, official
residence expenses, and transportation of motor vehicles; title IV,
which contains amendments to the Annual and Sick Leave Act of
1951; and title V (except section 522), which contains certain appro-
priation, repeal, amendatory, and miscellaneous provisions.
Titles III and IV amend certain existing laws containing in most
instances definitions which do not require any change therein to
serve the purposes of the amendment. In instances where this is
not the case, appropriate language has been added for the purposes
of the bill. Title V (except section 522) contains amendments and
other provisions not requiring the application of any definitions.
The definitions are as follows:
(1) "Government" means the Government of the United States
of America.
(2) "Government agency" means (A) each executive department
-of the Federal Government, (B) each independent establishment or
-agency in the executive branch of the Federal Government including
each corporation wholly owned by the Government (whether owned
directly or through one or more corporations), (C) the General
Accounting Office, and (D) by amendment of the committee, the
Library of Congress.
(3) "Employee" means an individual performing civilian service
with a Government agency, as defined in the bill, who will be defined
more specifically in regulations to be prescribed by the President of
the United States. The term "employee" does include specifically,
however, ambassadors, ministers, and officers of the Foreign Service
of the United States under the Department of State.
(4) "United States" (when the term is used in a geographical sense)
means the several States of the United States of America (as now or
hereafter in existence) and the District of Columbia.
(5) "Continental United States" means the several States of the
United States of America, excluding Alaska and Hawaii but including
the District of Columbia. .
(6) "Foreign area" means any area situated outside the United
States (as defined in the bill for geographical purposes), and outside
the Commonwealth of Puerto Rico, the Canal Zone, and the pos-
-sessions of the United States. The term "foreign area" also includes
the Trust Territory of the Pacific Islands.
Approved For Release 2003/10/16 : CIA-RDP91-00965R000400090002-6
 App'ved Foote aft lfht,gIkKRQERaypgRggi9400090002-6
TITLE II-ALLOWANCES AND DIFFERENTIALS IN FOREIGN AREAS
Title II, which covers allowances and differentials in foreign areas,
consists of Part A (General Provisions), Part B (Q aarters Allowances),
Part C (Cost-of-Living Allowances), and Part D (Post Differential).
PART A-GENERAL PROVISIONI!
Section 201 covers the classes of employees for whom the allow-
ances and differentials provided by title II may be authorized and to
whom such allowances and differentials may be granted. In general
these allowances and differentials may be authorized for and granted
to an employee officially stationed in a foreign area who is a citizen
of the United States and whose rate of basic compensation is fixed
by statute or, without taking into account the allowances and differ-
entials provided by title II, is fixed by administrative action pursuant
to law or is fixed administratively in conformity with rates paid by
the Government for work of a comparable level of difficulty and
responsibility in the continental United States.
These allowances and differentials also may be paid to an employee
officially stationed in a foreign area who is not a citizen of the United
States to the extent that the payment of such allowances and differ-
entials to the noncitizen employee is authorized by any provision of
law other than title II of the bill.
The allowances and differentials are provided by title II notwith-
standing section 1765 of the Revised Statutes (5 U.S.C. 70) which
imposes certain restrictions on the receipt of addi ional pay and extra
allowances of Government employees. In this cDnnection, it should
be noted that similar allowances and differentials authorized by exist-
ing law may be granted without regard to section _1765 of the Revised
Statutes.
Section 202 provides for the advance of funds to pay the allowances
under title II and for the recovery of funds so advanced which are not
subsequently covered by such allowances.
The allowances granted under title II may be paid in advance or
advance of funds may be made for such allowances. The payment or
advance of funds will be made through the proper disbursing officer
in such amounts as are advisable in the light of the need therefor and
the period of time during which the employee or employees concerned
will be required to make expenditures in advance
An advance of funds which is not subsequently covered by allow-
ances accrued under title II to the employee or employees concerned
will be recoverable by the United States Gove:-nment. Recovery,
may be effected by set off against accrued salary, pay, compensation,
amount of retirement credit, or other amount due from the United
States Government to the employee or emnployeN. concerned and also
by such other appropriate method as may be provided by law for
recovery of amounts owing to the Government.
It is not the purpose of this provision to modify, change, or other-
wise interfere with existing authority contained in section 216 of. the
Standardized Regulations (Government Civilians, Foreign Areas)
to grant special allowances in unusual circumstances.
Section 203 indicates the nature of the regulations governing pay-
ment of allowances and differentials under title I]:.
Approved For Release 2003/10/16 : CIA-RDP91-00965R000400090002-6
 Approved Foor R A s~bT R IM' CSI RRP~R~jN PAg90400099002-6
Section 203 requires that such allowances and differentials shall be
paid in accordance with regulations prescribed by the President of the
United States. These regulations will establish rules governing pay-
ment of such allowances and differentials, the respective rates of
payment, and the foreign areas, the groups of positions, and the
categories of employees to which these rates will apply. These regu-
lations also may cover other related matters.
PART I3-QUARTERS ALLOWANCES
Section 211 sets forth the various kinds of quarters allowances
which may be granted to employees in foreign areas.
These quarters allowances may be granted to an employee in a
foreign area whenever Government-owned or Government-rented
quarters are not provided for such employee without charge to him,
as follows:
Temporary Lodging Allowance
Paragraph (1) of section 211 provides for a temporary lodging
allowance for the reasonable cost of temporary quarters which is
incurred by the employee and his family. This temporary lodging
allowance may be granted as follows:
(A) For a period of not in excess of three months after first arrival
at a new post of assignment in a foreign area or for a period ending
with the occupation of residence quarters, whichever period is the
shorter.
(B) For a period of not more than one month immediately preced-
ing final departure from the post following the necessary evacuation
of residence quarters.
Paragraph (1) consolidates and extends the existing authority (set
forth in clause (A) of such paragraph) to grant temporary lodging
allowances in foreign areas. Such paragraph extends the temporary
lodging allowance on first arrival to employees of those Government
agencies not presently eligible for such allowance.
At present, this allowance is authorized-
(1) for the Foreign Service of the United States under section
901(1) of the Foreign Service Act of 1946 (22 U.S.C. 1131(1));
(2) for the Central Intelligence Agency under section 4(b) of
the Central Intelligence Agency Act of 1949 (50 U.S.C. 403e(b));
(3). for the United States Information Agency on a fiscal year
basis by appropriation Act (with respect to the fiscal year ending
June 30, 1960, under title IV of the Departments of State and
Justice, the Judiciary, and Related Agencies Appropriation Act,
1960 (73 Stat. 193;. Public Law 86-84);
(4) for the International Cooperation Administration pursuant
to section 527(c) of the Mutual Security Act of 1954 (22 U.S.C.
1787(c));
(5) for the Foreign Agricultural Service of the Department of
Agriculture under section 603 of the Act of August 28, 1951
(7 U.S.C. 1763); and
(6) for personnel. of the Veterans' Administration who are
United States citizens and are assigned by the Administrator of
Veterans' Affairs to the Veterans' Administration office in the
Republic of the Philippines under section 235 of title 38 of the
H. Rept. 902, 86-1-2
Approved For Release 2003/10/16 : CIA-RDP91-00965R000400090002-6
 Approved Fob?%l je LsCIh-ftDf23$09pffi( 20400090002-6
United States Code as added by the Act of July 28, 1959 (Public
Law 86-116).
Paragraph (1) also adds for all Government agencies anew author-
ity (set forth in clause (B) of such paragraph) to grant a temporary
lodging allowance of not to exceed one month immediately prior to
final departure.
This temporary lodging allowance is intended to cover necessary
and reasonable hotel room expenses incurred by an employee upon
first arrival at a post of assignment in a foreign area, while the employee
is locating and arranging for suitable quarters and awaiting arrival
of furniture and household effects. The allowance also may be granted
under similar conditions to an employee who hf,s relinquished resi-
dence quarters immediately prior to his departure from his post of
assignment in a foreign area. Generally, an employee moves to a
hotel for a short period, immediately prior to his departure from his
post of assignment, in order to avoid contracting for another full
month of rent for his quarters and to allow time, for completion of
departure arrangements such as settlement of utlity bills and prep-
aration of furniture and effects for storage or shipment. The right
to a full month's temporary lodging allowance do(s not automatically
follow from the receipt of transfer or separation orders; it is expected
that only such portion of the one-month period will be allowed as
may be justified by the circumstances.
The committee emphasizes that this temporar:T lodging allowance
will.cover only average prices for adequate but nit luxurious accom-
modations. Assurance has been given to the committee that this
policy will be spelled out in the administrative re;ulations governing
such allowance. In this connection, reference is made to section 220
of the Standardized Regulations (Government Civilians, Foreign
Areas), issued by the Secretary of State, set forth in Appendix A of
this report.
It may be noted that paragraph (1) does not contain a provision.
similar to a provision of section 901(1) of the Foreign Service Act of
1946 (22 U.S.C. 1131(1)) to the effect that the amount of temporary
lodging allowance may not exceed the aggregate amount of the per
diem which would be allowable to the employee for himself and his
family if they were in travel status.
Such provision is omitted for two reasons.
First, the limitation, now applicable to emplo:Tees subject to the
Foreign Service Act of 1946, would not operate uniformly with respect
to other departments and agencies within the purview of title II of this
bill. The Foreign Service Act of 1946 authorizes 1 he allowance of per
diem for an employee subject to such Act and for each member of his
family. No such per diem is authorized for members of the families
of employees in most other departments and agencies.
Second, the temporary lodging allowance is int? nded to cover only
part of the expenses on which per diem payments are based. The
temporary lodging allowance authorized by paragraph (1) relates
only to quarters, and specifically to hotel room quarters. The
allowance does not extend to expenditures for meals, which are
included in per diem allowances.
Approved For Release 2003/10/16 : CIA-RDP91-00965R000400090002-6
 Approved For Release 2003/10/16 : CIA-RDP91-009658000400090002-6
OVERSEAS DIFFERENTIALS AND ALLOWANCES ACT
Living Quarters Allowance
Paragraph (2) of section 211 provides for a living quarters allow-
ance for rent, heat, light, fuel, gas, electricity, and water. This
allowance is provided without regard to the limitations of section
3648 of the Revised Statutes (31 U.S.C. 529) providing certain limita-
tions on advances of public money.
Existing authority contained in the Act of June 26, 1930 (5 U.S.C.
118a), provides for Government agencies generally an allowance in
lieu of living quarters in foreign areas, including rent, heat, light, fuel,
gas, and electricity, but not including water.
With respect to those Government agencies closely connected with
the conduct of the foreign relations of the United States and related
matters, a similar living quarters allowance is authorized, as follows:
(1) for the Foreign Service of the United States, under section
901(1) of the Foreign Service Act of 1946 (22 U.S.C. 1131(1));
(2) for the Central Intelligence Agency, under section 4(b) of
the Central Intelligence Agency Act of 1949 (50 U.S.C. 403e(b));
(3) for the United States Information Agency, on a fiscal year
basis, by appropriation Act (with respect to the fiscal year ending
June 30, 1960, under title IV of the Departments of State and
Justice, the Judiciary, and Related Agencies Appropriation Act,
1960 (73 Stat. 193; Public Law 86-84) ;
(4) for the International Cooperation Administration, under
section 527(c) of the Mutual Security Act of 1954 (22 U.S.C.
1787(c)) ;
(5) for the Foreign Agricultural Service of the Department of
Agriculture, under section 603 of the Act of August 28, 1954
(7 U.S.C. 1763); and
(6) for certain personnel of the Veterans' Administration under
section 235 of title 38 of the United States Code as added by the
Act of July 28, 1959 (Public Law 86-116).
However, under sections 13 and 14 of the Act of August 1, 1956
(70 Stat. 892; 5 U.S.C. 170r and 170s), the Foreign Service of the
United States, the Central Intelligence Agency, the United States
Information Agency, the International Cooperation Administration,
the Foreign Agricultural Service of the Department of Agriculture,
and the above-mentioned personnel of the Veterans' Administration
are granted allowances to cover water in addition to the other utilities
above specified.
Paragraph (2) of section 211 of the bill consolidates and continues
the authority for living quarters allowances for all Government agen-
cies and, in addition, provides that this living quarters allowance may
cover water in the case of all Government agencies, in addition to other
utilities.
Allowance for Necessary and Reasonable Repairs, Alterations, and
Improvements Under Unusual Circumstances
Paragraph (3) of section 211 provides for an allowance to cover
expenses of initial repairs, alterations, and improvements to an
employee's privately leased residence at a post of assignment in a
foreign area.
Approved For Release 2003/10/16 : CIA-RDP91-00965R00.0400090002-6
 Apg2pved FF JA%s%IJY&J#AS %RRPtoh~? 5R890400090002-6
This allowance may be granted only under unusual circumstances.
The allowance covers only extraordinary, necessary, and reasonable
expenses which are not otherwise compensated for.
Moreover, the expenses must be approved administratively in
advance if the allowance is to be granted.
In addition, the duration and terms of the lease must be such as to
justify the granting of such allowance.
For example, under the foregoing provision the respective Govern-
ment agencies could require that the lease contai:i provisions which
would permit a change of lessees without change In other provisions
of the lease in order that the quarters concerned cculd be made avail-
able to another employee in the event of the trans'`er or separation of
the original tenant. The provisions of paragraph (3) are intended to
insure that the allowance will be subject to stict administrative
controls.
Paragraph (3) constitutes a new authority for all Government agen-
cies to pay or reimburse for the necessary and reasonable repair,
alteration, and improvement costs for quarters leased by an employee
at a post of assignment in a foreign area. At many such posts of
assignment habitable quarters are not obtainable unless the employee
bears substantial costs for necessary repairs., alterations, and improve-
ments.
The purpose of this allowance to cover repair, alteration, and im-
provement costs is to make sub-standard or uninhabitable dwellings
habitable for the employee.
It is intended that the allowance cover repairs, alterations, and
improvements which are basic to making a dwelling habitable, such
as installation and repair of plumbing, and wiring or rewiring.
It is not intended that the allowance cover repairs, alterations, and
improvements which are not basic to making a dwelling habitable,
such as redecorating.
It is the understanding of this committee that the respective Govern-
ment agencies will administer this paragraph in a manner which will
place a ceiling on total cost to the Government.
This committee has approved the allowance prodded by paragraph
(3) ofsection-211 with the understanding that appropriate regulations
will be issued which will provide that the total payment for such
repairs, alterations, and improvements, plus the actual quarters
allowance paid to an employee, will not exced the maximum
authorized quarters allowance available to the ~;mployee, without
regard to repairs, alterations, and improvements,: for two years at
the post of assignment in the foreign area concerned.
As a reasonable and satisfactory guide in the ?Idministration and
operation of paragraph (3) of section211, the committee calls attention
to Appendix B of this report which sets forth matte:?s for consideration
in the preparation of regulations to carry out the intent of such
paragraph (3). These matters pertain to the coverage of the terms
"repairs", "alterations", and "improvements" in connection with the
allowances provided by paragraph (3) of section 211.
PART C-COST-OF-LIVING ALLOWANOES
Section 221 sets forth the various kinds of cost-c f-living allowances
which may be granted to employees in foreign are is. These cost-of-
living allowances may be granted where applicable, as follows:
Approved For Release 2003/10/16 : CIA-RDP91-00965R000400090002-6
 Approved Fob fNg IWI g:I"D MI-QQ?@?gZCA%40009q~02-6
Post Allowances
Paragraph (1) of section 221 provides for a post allowance to offset
the difference between the cost of living at the post of assignment of
the employee in a foreign area and the cost of living in Washington,
District of Columbia. The post allowance does not cover rent and
utilities, since rent and utilities are covered by quarters allowances.
Authority similar to the authority for post allowances in paragraph
(1) of section 221 of the bill is contained in existing law.
Section 901(2) (i) of the Foreign Service Act of 1946 (22 U.S.C.
1131(2) (i)) authorizes the Secretary of State to grant post allowances
to employees of the Foreign Service of the United States.
A similar post allowance is made available to the Central Intelli-
gence Agency, the United States Information Agency, the Inter-
national Cooperation Administration, and the Foreign Agricultural
Service of the Department of Agriculture, pursuant to the provisions
of law specified with respect to those agencies in connection with living
quarters allowances discussed above.
In addition, a similar post allowance also is made available, on a
fiscal year basis, to the executive departments and independent
establishments generally under provisions of appropriation Acts re-
lating to general Government matters. With respect to the fiscal
year ending June 30, 1960, section 203 of the General Government
Matters Appropriation Act, 1960 (73 Stat. 165; Public Law 86-79),
provides, in part, as follows:
"* * * Appropriations of the executive departments and
independent establishments for the current fiscal year, avail-
able for expenses of travel or for the expenses of the activity
concerned, are hereby made available for * * * cost-of-
living allowances similar to those allowed under section
901(2) of the Foreign Service Act of 1946, in accordance
with and to the extent prescribed by regulations of the
President, for all civilian officers and employees of the Gov-
ernment permanently stationed in foreign countries * * *".
Paragraph (1) of section 221 of the bill, in effect, consolidates and
continues existing authority for Government agencies generally to
pay post allowances to employees to compensate for higher living
costs in foreign areas. Paragraph (1) does not, however, authorize
payment of additional compensation as a recruitment or retention
incentive based on conditions of environment.
Transfer Allowance
Paragraph (2) of section 221 provides for a transfer allowance for
extraordinary, necessary, and reasonable expenses (not otherwise
compensated for) incurred by an employee incident to establishing
himself at any post of assignment in a foreign area or at a post of
assignment in the United States between assignment to posts in foreign
areas.
This transfer allowance will cover, for example, initial costs and
unusual out-of-pocket expenses in connection with transfer to a post
of assignment in a foreign area where, for example, a different type of
clothing is required or electrical equipment of a different voltage is
necessary.
Approved For Release 2003/10/16 : CIA-RDP91-00965R000400090002-6
 Apgrpved Fov s%2HMW1I J Q RORMAO& R@@0400090002-6
At the present time, a similar transfer allowance is provided for
the Foreign Service of the United States by section 901(2) (ii) of the
Foreign Service Act of 1946 (22 U.S.C. 1131(2) (ii) i.
A similar transfer allowance also is made available to the Central
Intelligence Agency, the United States Information Agency, the
International Cooperation Administration, and tl.e Foreign Agricul-
tural Service of the Department of Agriculture, pursuant to the pro-
visions of law specified with respect to those agencies in connection
with living quarters allowances discussed above.
A similar transfer allowance also is made available, on a fiscal year
basis, to the executive departments and indepencl ont establishments
generally under provisions of appropriation Ar*,s covering general
Government matters. With respect to the fis,,al y9ar ending June 30,
1960, section 203 of the General Government Matters Appropriation
Act, 1960 (referred to above), provides authority for such transfer
allowance by reference to cost-of-living al.lowanc,~s similar to those
allowed under section 901(2) of the Foreign Service Act of 1946, as
stated above in connection with post allowances.
Paragraph (2) of section, 221 of the bill, in effect, consolidates and
continues existing authority for Government ag,mcies generally to
pay a transfer allowance on the assignment of an employee to duty at
any post in a foreign area and at a post in the United States between
assignments to duty at posts in foreign areas.
Separate Maintenance Allowance!
Paragraph (3) of section 221 provides for a separate maintenance
allowance.
The separate maintenance allowance is intended to assist an em-
ployee who is compelled, by reason of dangerous, notably unhealthful,
or excessively adverse living conditions at his post of assignment in a
foreign area or for the convenience of the Government, to meet the
additional expense of maintaining, elsewhere them at such post of
assignment, his wife or his dependents, or both.
This separate maintenance allowance is similar to the allowance
now provided for the Foreign Service of the United States by section
001(2)(iii) of the Foreign Service Act of 1946 (22 U.S.C. 1131(2)(iii)).
A similar separate maintenance allowance also is made available
to the Central Intelligence Agency, the United States Information
Agency, the International Cooperation Administration, and the
Foreign Agricultural Service of the Department of Agriculture,
pursuant to the provisions of law specified with respect to those
agencies in connection with living quarters allowances discussed above.
.A similar allowance also is made available, on a fiscal year basis,
to the executive departments and agencies generally under provisions
of appropriation Acts relating to general Government matters.
With respect to the fiscal year ending June 30, 196D, section 203 of the
General Government Matters Appropriation Act, 1960, provides such
allowance to executive departments and agencies i a the manner stated
above.
Paragraph (3) of section 221 of the bill consolidates, with one
important change, the existing authority for Govrnment agencies to
pay separate maintenance allowances.
Approved For Release 2003/10/16 : CIA-RDP91-00965R000400090002-6
 Approved FoqueDAQQ3itMksCALABRDn1vM66F.04000%
Existing law authorizes payment of the allowance to help meet the
additional cost when an employee is compelled, because of adverse
conditions at his post, to maintain his wife and minor children else-
where than in the country of assignment.
Paragraph (3) of section 221 of the bill authorizes payment of the
allowance to help meet the cost, in the same circumstances, of mainte-
nance of a wife or dependents or both at any place other than the post
of assignment. Paragraph (3) will permit payment of the separate
maintenance allowance in those cases in which it is essential that the
employee maintain his family away from the post of assignment
although not necessarily outside the country of assignment.
For example, it might be necessary for an employee stationed in a
foreign area to send his family away from his post of assignment in
time of protracted rioting and violence followed by plague. Under
the new paragraph (3), it will not be necessary that the employee send
his family out of the country to be entitled to the separate maintenance
allowance.
Education Allowance
Paragraph (4) of section 221 provides for an education allowance
or payment of transportation costs to assist an employee with the
extraordinary and necessary expenses (not otherwise compensated
for), incurred by reason of the service of the employee in a foreign
area or areas, in providing adequate education for his dependents.
Subparagraph (A) of paragraph (4) of section 221 of the bill pro-
vides for an allowance not to exceed the cost of obtaining such ele-
mentary and secondary educational services as are ordinarily provided
without charge by the public schools in the United States, plus (in
those cases where adequate schools are not available at the employee's
post) board and room and periodic transportation between such post
and the nearest locality where adequate schools are available. This
allowance may be granted without regard to the limitations of sec-
tion 3648 of the,Revised Statutes, pertaining to certain prohibitions
on advances of public money. It is required that the amount of the
allowance granted be determined on the basis of the educational
facility used.
At present, this allowance is provided for the Foreign Service of the
United States by section 901 (2) (iv) of the Foreign Service Act of 1946
(22 U.S.C. 1131(2) (iv)) .
Allowances similar to the allowances provided by section 901(2) (iv)
of the Foreign Service Act of 1946 are provided for the Central Intelli-
gence Agency, the United States Information Agency, the Inter-
national Cooperation Administration, and the Foreign Agricultural
Service of the Department of Agriculture, pursuant to the provisions
of law specified with respect to those agencies in connection with living
quarters allowances discussed above.
A similar allowance also is made available, on a fiscal year basis, to
the executive departments and independent agencies generally pursu-
ant to appropriation Acts relating to general Government matters.
With respect to the fiscal year ending June 30, 1960, section 203 of
the General Government Matters Appropriation Act, 1960 (referred
to above) provides authority for such allowance.
Subparagraph (A) of paragraph (4) of section 221 of the bill in
effect consolidates and continues the existing authority for Govern-
Approved For Release 2003/10/16 : CIA-RDP91-00965R000400090002-6
 Appggved Fo6eJh'{l,CIRQE96-vO(100400090002-6
went agencies generally to grant an allowance ol' the type described
in such subparagraph (A) .
Subparagraph (B) of paragraph (4) of section 221 of the bill pro-
vides for a payment covering the expenses of tra,rol of dependents of
an employee to and from a school in the United States to obtain an
American secondary or undergraduate college edtcation.
Such travel payment may be made for not more than one trip
each way for each dependent for the purpose of )btaining each type
of education.
Subparagraph (B) of paragraph (4) specifically= provides, however,
that no allowance payments for educational purposes under sub-
paragraph (A) of such paragraph (4) shall be mad,, for any dependent
during the twelve-month period immediately following the arrival of
the dependent in the United States for secondary education under
subparagraph (B).
Under paragraph (4) of section 221 of the bill--
(1) a child of high school age could. be entered in a secondary
school in a foreign area and applicable allowance would be
payable under subparagraph (A) ; or
(2) the child could be sent to the United states for secondary
education with the cost of the trip being paid under subparagraph
(B) but without entitlement by his employee parent to the
allowance under subparagraph (A) during the twelve-month
period immediately following the arrival cf the child in the
United States for secondary education; or
(3) the child could be sent to the United states for secondary
education without the cost of the grip being paid under sub-
paragraph (B) but the employee parent would be entitled to an
allowance under subparagraph (A).
At the present time, the travel payment provided by subparagraph
(B) is available-
(1) to the Foreign Service of the United States under section
911(9) of the Foreign Service Act of 1946 (22 U.S.C. 1136(9));
(2) to personnel of the Foreign Agricultural Service of the
Department of Agriculture under section 603 Afthe Act of August
28, 1954 (7 U.S.C. 1763) ;
(3) to personnel of the International Cooperation Administra-
tion employed under section 527(c) of the Mutual Security Act
of 1954 (22 U.S.C. 1787(c)); and
(4) to personnel of the United States Information Agency on
a fiscal year basis by appropriation Act (with respect to the fiscal
year ending June 30, 1960, under title IV of the Departments of
State and. Justice, the Judiciary, and Relatd Agencies Appro-
priation Act, 1960 (73 Stat. 193; Public Law 86-84)).
Section 911(9) of the Foreign Service Act cif 1946 (22 U.S.C.
1136(9)) authorizes the payment of expenses of travel, including per
diem in lieu of subsistence, of dependents of personnel of the Foreign
Service of the United States. The Foreign Agricultural Service of
the Department of Agriculture, the International Cooperation Ad-
ministration, and the United States Information Agency are au-
thorized to utilize the authority granted in section 911(9) of the
Foreign Service Act of 1946 with respect to payment of such travel
expenses. Although section 511(a) (1) of this bill repeals section
911(9) of the Foreign Service Act of 1946, it iii the intent of this
Approved For Release 2003/10/16 : CIA-RDP91-00965R000400090002-6
 Approved For Release 2003/10/16 : CIA-RDP91-00965R000400090002-6
OVERSEAS DIFFERENTIALS AND ALLOWANCES ACT 17
committee that subparagraph (B) of paragraph (4) of section 221 of
this bill will continue in effect the authority so repealed.
Subparagraph (B) of paragraph (4) of section 221 of the bill con-
solidates the travel payment authority (similar to that provided by
such subparagraph (B)) granted under existing law and extends such
travel payment authority to those Government agencies which are
not authorized to make such payments at the present time.
The language of subparagraph (B) differs slightly from present
statutory language in two respects:
First, the new language limits the prohibition on payment of allow-
ances when transportation to the United States is authorized for
secondary education purposes to the 12 months following arrival in
the United States. Present statutory language has been interpreted
to prevent the authorization of educational travel for a child on whose
behalf an education allowance was granted in the first year, for ex-
ample, of secondary school even though the parent has been trans-
ferred to another post at which secondary education is not available.
This change in language is intended only to provide needed flexibility
without changing the basic principle that education allowances will
not be available to a parent whose child has been transported to the
United States at Government expense for the purpose of securing
secondary education and. continues to be educated in the United States.
Second, the new language permits travel to the school or college the
dependent is to enter rather than only to the nearest port of entry as
is resently the case.
Yn addition, subparagraph (B) of paragraph (4) of section 221 of
the bill contains a provision which authorizes the payment of travel
expenses, under regulations to be prescribed by the President, for the
purpose of obtaining undergraduate college education only, for de-
pendents of employees who are citizens of the United States stationed
in the Canal Zone. The provision waives section 111(6) of the bill
which defines the term "foreign area" as excluding the Canal Zone.
Section 231 of the bill provides for a post differential similar to that
contained in existing law.
The post differential may be granted on the basis of conditions of
environment which-
(1) differ substantially from conditions of environment in the
continental United States, and
(2) warrant additional compensation as an incentive for the
recruitment of an individual for, and his retention in, employment
under such conditions of environment.
The purpose of the post differential authorized by section 231 of
the bill is to compensate employees for undesirable conditions of en-
vironment which exist at some posts of assignment in foreign areas.
These undesirable conditions of environment may take the form of
physical hardships, hazards to health, and difficult conditions of living
generally. This post differential, therefore, will serve as an incentive
in the recruitment and retention of personnel to be employed at such
locations.
Section 231 retains the existing limitation on the amount of post
differential which may be paid under such section by providing that
H. Rept. 902, 80-1-3
Approved For Release 2003/10/16 : CIA-RDP91-00965R000400090002-6
 l
R
Apq oved Fo?OVERS
EASS~n RR~~ PC
additional compensation paid as a post differential shall not exceed, in
any instance, 25 per centum of the rate of basic compensation.
Section 231 of the bill contains an exception tc. that provision in
section 201 of the bill which states that "* * ? * allowances and
differentials provided by this title are authorized for and may be
granted only to an employee officially stationed in a foreign area
unless otherwise provided in this title * * *". This exception is to
the effect that the post differential also may be -granted to any em-
ployee who is officially stationed in the United States and who is on.
extended detail in a foreign area. Under section 1~2 of the Standard-
ized Regulations (Government Civilians, Foreign Areas), the term
"extended detail" is defined as a detail of at least X62 days at the post
in the foreign area. The committee understands that this minimum .
requirement of 42 days will be continued with respect to the term
"extended detail" in the regulations which will implement section 231
of this bill. Continuation of the 42-day minimum requirement will
prevent payment of post differentials to employees officially stationed
in the United States who make only short trips to foreign areas..
The committee understands that the same limitation of 42 days
also will apply to employees stationed at a post in a foreign area who
are detailed to a post for which a post differential is prescribed.
Section 231 of the bill continues and consolidate,, the authority now
contained in existing law for the payment of post differentials at
foreign posts.
beedon 443 of the Foreign Service Act of 194~3 (22 U.S.C. 888),.:
which is repealed by section 511(a) (1) of the bill, now provides that.
the President, under such regulations as he mzy prescribe, may
establish rates of salary differential not exceeding- 25 per centum of
basic salary for Foreign Service officers, Reserve officers, and staff
officers and employees assigned to posts involv.ng extraordinarily
difficult living conditions, excessive physical hardship, or notably
unhealthful conditions. The Secretary of State maintains a list of.
such posts.
Section 207 of the Independent Offices Appropriation Act, 1949
(5 U.S.C. 118h), provides, in part, that certain appropriations or,
funds available to the executive departments and agencies, inde-
pendent establishments, and certain 'Government corporations
available for payment of salaries and compensation to persons
stationed outside the continental United States or in Alaska, whose
rates of basic compensation are fixed by statute, shall be available
for the payment of additional compensation (no L to exceed 25 per
centum of the rate of basic compensation) to such persons, based on
living costs substantially higher than in the District of Columbia,,
or based on conditions of environment which Iiffer substantially
from conditions of environment in the States and warrant additional
compensation as a recruitment incentive, or bused on both such
factors.
Section 207 of the Independent Offices Appro;')riation Act, 1949,.
also provides that no additional compensation based on living costs,
substantially higher than in the District of Columbia shall be paid
under such section to any person entitled to recc ive a cost-of-living:
allowance under section 901(2) of the Foreign Service Act of 1946
(22 U.S.C. 1131(2)(i)) or an allowance similar thereto under other
law. The effect of this prohibition is retained and expanded with-
0400090002-6
Approved For Release 2003/10/16 : CIA-RDP91-00965R000400090002-6
 Approved For Release 2003/10/16 : CIA-RDP91-00965R000400090002-6
OVERSEAS DIFFERENTIALS AND ALLOWANCES ACT 19
respect to the allowances and differentials provided by title II of
this bill.
It`is the intention of the committee that the provisions of title II
of this bill shall supersede the provisions of section 207 of the Inde-
pendent Offices Appropriation Act, 1949, with respect to the authori-
zation, granting, and payment of the additional compensation to
employees stationed in foreign areas. Thus, title II of this bill will
preempt the field with respect to allowances and differentials under
such title and the provisions of section 207 of the Independent Offices
Appropriation Act, 1949, no longer will be applicable to employees
in foreign areas who are within the purview of title II of this bill.
It is not the purpose of this bill to modify or change the application
and operation of section 207 of the Independent Offices Appropriation
Act, 1949, except to the extent stated above. For this reason, this
bill does not repeal such section 207 and does not affect its applica-
tion and operation otherwise than as provided in title II of this bill.
For example, the payment of additional compensation under such
section 207 to persons stationed in Alaska is not affected in any way
by this bill.
TITLE III-MISCELLANEOUS EXPENSES
Title III, which covers the granting and payment of certain mis-
cellaneous expenses to Government officers and employees assigned
to posts of duty outside the United States, consists of Part A (Repre-
sentation Expenses), Part B (Storage), Part C (Official Residence
Expenses), and Part D (Transportation of Motor Vehicles).
PART A--REPRESENTATION EXPENSES
Section 301 amends the Administrative Expenses Act of 1946
(60 Stat. 806) by adding at the end thereof a new section 22 authorizing
the use by all departments and agencies of the Government of ad-
ministrative expense funds for representation purposes in the promo-
tion of official policies and programs. The general purpose of the
amendment is to provide for the conduct of official i elations by
representatives of the Government of the United States in a manner
which will compare favorably with the conduct of such relations by
representatives of other nations, without the necessity for incurring
personal costs by such representatives of the United States.
Present authority for payment of representation expenses is con-
tained in section 901(3) of the Foreign Service Act of 1946, which
authorizes allowances for the proper representation of the United
States. Such section 901(3) is repealed by section 511(a) (1) of the
bill and the authority contained therein is transferred to the new
section 522 which is added to the Administrative Expenses Act of
1946 by section 301 of the bill.
Authority for the payment by all departments and agencies of
representation expenses is included in the Administrative Expenses
Act of 1946 in order to reflect the fact that such expenses constitute
one of the normal and recurring operating expenses incident to certain
types of activities conducted not only by the Foreign Service, but by
certain other departments and agencies as well, in the field of foreign
relations and operations.
Approved For Release 2003/10/16 : CIA-RDP91-00965R000400090002-6
 Approved For Release 2003/10/16 : CIA-RDP91-00965R000400090002-6
20 OVERSEAS DIF'F'ERENTIALS AND ALLOWI CES ACT
Section 301 will make uniform authority available to all departments
and agencies which conduct operations in foreign areas and to resident
missions to international organizations, such as the United States
Delegation to the United Nations. However, it i,i contemplated that
only a very few de artments and agencies will need to make use of such
authority. Regulpations prescribed by the President will define the
conditions, and control the use, of the authority.
PART B-STORAGE
The -general. purpose of section 311 is to provide the basis for the
extension to all departments and agencies of authority for payment of
the costs of storage of furniture and household and personal effects of
employees assigned to foreign posts, and of certain related expenses,
which is comparable to the authority for the payment of such expenses
now contained in section 911 of the Foreign Service Act of 1946, with
respect to the Foreign Service of the United States, and in similar
provisions of law with respect to certain other agencies. One effect
of the amendment will be to provide a basis for payment or reimburse-
ment of such expenses of all Government employees assigned to foreign
posts on a reasonably uniform and equitable bas s.
Subsection (a) of section 311 amends paragraphs (4) and (5) of
section 911 of the Foreign Service Act of 1946 These paragraphs
presently authorize the payment of costs of storage of furniture and
household and personal effects of officers costs, i1t the Foreign
Service (and certain other agencies), and related (1) when such
employees are absent from their posts of assignment under orders or
are assigned to posts to which they cannot take or at which they are
unable to use their furniture and household and personal effects, or
(2) when it would be in the public interest or woulI be more economical
to pay such costs than, for example, to pay quar sers allowances while
employees are away from their posts under orders or to pay transpor-
tation costs for employees from one location to another.
The amendment effects four changes in paragraphs (4) and (5) of
section 911 of the Foreign Service Act of 1946.
The first change eliminates from paragraph (4) language which has
the effect of limiting the payment of storage cots to those instances
in which the employee is unable to move his fur ziture and household
and personal effects to a new post of assignment l ecause of emergency.
Under the amendment, payment of storage costs may be authorized,
upon transfer of an employee, without the existence of an emergency.
As a practical matter, this change already has l een accomplished, in
effect, by section 2(b) of the Act of August 1, 1')56 (Public Law 885,
84th Congress).
Second, the amendment adds to the existing paragraph (5) author-
ity to pay the cost of packing and unpacking such furniture and house-
hold and personal effects, in connection with the Transportation thereof
to and from storage, in order to provide a statutory basis for the long
established and recognized practice under whit i such costs are con-
sidered as necessarily incidental to the authority to transport and
store such furniture and household and personal effects. , The effect,
therefore, will be to continue, but not to extend, existing practice in
respect to payment of the costs of such packing-and unpacking.
Approved For Release 2003/10/16 : CIA-RDP91-00965R000400090002-6
 Approved F?V eD IOkOtArRE PWODT?O$R>b4000O002-6
Third, the amendment adds in such paragraph (5), for the first time,
a specific limitation to the effect that in no instance shall the weight
or volume of the articles stored, together with the weight or volume
of the articles transported, under authority of such paragraph, exceed
the maximum weight and volume limitations fixed by regulations,
when not otherwise fixed by law.
Fourth, the amendment adds to paragraph (5) the authority to pay
the cost of packing and unpacking, transporting to and from a place
of storage, and storing for a period of not to exceed three months the,
furniture and household and personal effects of an officer or employee
in the Foreign Service who is being separated from the Foreign Service.
Under existing law, these costs are borne by such officer or employee
until a firm decision can be made with respect to his permanent place
of residence after separation. The amendment will allow such an
officer or employee a reasonable time during which his furniture and
household and personal effects may be stored pending the completion
of arrangements for his permanent residence following his separation
from the Foreign Service after having served many years abroad in
most instances.
Subsection (b) of section 311 amends paragraphs (1) (D) and (E)
of section 4 of the Central Intelligence Agency Act of 1949, which
relate to payment of the cost of packing and unpacking, transporting
to and from places of storage, and storing of furniture and household
and personal effects of employees of the Central Intelligency Agency.
The effect of such paragraphs (1) (D) and (E), as so amended, is
identical to the effect of paragraphs (4) and (5) of section 911 of the
Foreign Service Act of 1946, as amended by section 311(a) of the bill
and as explained above. The amendment made by subsection (b)
effects no major change in existing practices by the Central Intelli-
gence Agency except that (1) storage of furniture and household and
personal effects is authorized for an employee abroad when it is deter-
mined to be in the public interest or to be more economical than to
ship such articles and (2) storage of such articles is authorized, for
a period not to exceed three months, upon departure of an employee
from a post abroad or upon separation of an employee.
Section 311(c)(1) amends the first section of the Administrative
Expenses Act of 1946 so as to eliminate the existing 8,750 pound
maximum limitation on crated shipments of household effects of civil-
ian employees which has proved completely unrealistic and has placed
an unfair financial burden on many employees. This amendment
makes no change in the existing maximum limitation of 7,000 pounds
uncrated on the shipment of such household effects. Necessary pack-
ing and crating for overseas shipment of household effects increases
the gross weight of such shipments (to which the existing 8,750
pound maximum limitation applies) by an average of approximately
90 percent. This existing limitation on crated shipments has the
effect of reducing the maximum net weight limitation on a shipment
of household effects consigned overseas to an average of something
under 4,000 pounds. The amendment provides a reasonable and
appropriate maximum limitation for overseas shipments of household
effects, stated in terms of net weight in lieu of the previous gross
weight limitation, and will permit employees going overseas to ship
household effects to the same extent, and in the same quantity, as
Approved For Release 2003/10/16 : CIA-RDP91-00965R000400090002-6
 App oved FOiVFML'A%eD ]GPF6 C4A tR 1 O S 0400090002-6
may be shipped under existing authority in connection with transfers
of employees within the United States.
Section 311(c) (2) amends the first section of the Administrative
Expenses Act of 1946 by adding a new subsection (e) at the end
thereof. Such subsection (e) authorizes the storage at Government
expense of household goods and personal effects of employees who are
assigned to permanent duty stations outside the continental United
States when it is determined that such employees cannot take their
goods and effects to their duty stations or that th(y are unable to use
such goods and effects at such stations. The new. subsection (e) also
authorizes the head of each department or agenc;r concerned to pro-
vide for storage of goods and effects, in lieu of shipment overseas, for
reasons of economy or when in the public interest. The storage of
household goods and personal effects under the subsection will be in
accordance with regulations to be prescribed by the President and
the weight of such goods and effects which may b,, stored at Govern-
ment expense will be subject to maximum weight ]imitations identical
to the maximum weight limitations governing the shipment of such
goods and effects.
Section 311(d) clarifies the meanings of varioi .s terms applied to
furniture, household goods, and personal effects which appear in the
Foreign Service Act of -1946, the Central Intelligence Agency Act of
1949, and the Administrati-v e Expenses Act of 199.6. It is the intent
of the committee that such clarification and other provisions contained
in the amendatory language shall provide the basis for maximum
practicable uniformity in the treatment of storage, packing and
unpacking for storage, and transportation of the ? cods and effects of
officers and -employees in the several departments and agencies to
which such Acts apply. In this connection, it is to be noted that the
amendment made by section 311(d) authorizes the President, with
respect to the Administrative Expenses Act of 196, the Secretary of
State, with respect to the Foreign Service Act of 1946, and the Director
of Central Intelligence, with respect to the Crentral Intelligence
Agency Act of 1949, to make appropriate determinations governing
the terms "furniture and household and personal effects" and "house-
hold goods and personal effects" as used in such Acts.
Section 321(a) amends the Administrative Expenses Act of 1946
(as amended by section 301 of the bill) by adding. at the end thereof
a new section 23 authorizing the use by all dept xtments and agen-
cies of the Government of administrative expense funds to defray
unusual expenses incident to the operation and d-riaintenance of offi-
cial residences suitable for the chief representatives of the United
States at posts in foreign countries and- such other senior officials of
the United States in foreign countries as the Presicent may designate.
The general purpose of this amendment is similar- to the purpose of
the amendment made by section 301 of the bill, bu: the expenses to be
paid differ somewhat from the expenses authorized to be paid
thereunder.
Allotment of funds under the new section 23 will be subject to reg-
ulations prescribed by the President and, in geni~ral, this allotment
of funds will be of the type and kind for which existing authority is
Approved For Release 2003/10/16 : CIA-RDP91-00965R000400090002-6
 Approved Foie 3/AALID,PI,J,}M?[40009002-6
provided, with respect to the Department of State, in section 902 of
the Foreign Service Act of 1946, which is repealed by section 511 (a) (1)
of the bill.
The Department of State has been, and will remain, the principal
-user of the authority contained in the new section 23 of the Admin-
-istrative Expenses Act of 1946. However, other departments and
agencies on occasion undoubtedly will have need to use the authority.
It is intended, and the committee has received full assurance, that
this authority will continue to be used very sparingly and that its
use for other than chief representatives of the United States at for-
eign posts will be strictly limited to unusual circumstances involving
actual necessity.
The chief representatives, and at times other senior officials,
of the United States who are stationed at foreign posts are compelled,
in the best interests of their Government, to maintain residences of
a type which would not be necessary except for the positions of con-
-spicuous responsiblity which they occupy at their foreign posts.
As principal representatives of the United States, they are persons of
major importance locally and must maintain suitably dignified rela-
tions with the highest level of local officials, residents, visitors, and
representatives of other nations. They are expected, and in a sense
required, to meet and associate socially with dignitaries of other
nations as a part of their official duties for the Government of the
United States. Apart and aside from the physical need for a residence
establishment of adequate size and appointments, the factor of na-
-tional prestige is highly important in furthering the interests of the
United States. Chief representatives and senior officials of the Gov-
ernment largely represent the United States in the eyes of the officials
and the citizens of the countries in which they serve. These repre-
sentatives and officials serve on a twenty-four hour a day basis, and
the operation of their personal residences is as important a part of
their responsibilities as the operation of their official headquarters.
The authority contained in the new section 23 will not permit
reimbursement to any individual for the ordinary household expenses
which he would incur in any case. The authority is intended to ex-
tend only to the additional expenses necessarily incurred by chief
representatives and senior officials of the Government in maintaining
residences which are commensurate with their positions as important
representatives of the United States abroad. Such additional ex-
penses may include salaries and subsistence of servants and the cost
of upkeep and repair for residences which are larger and more elaborate
than otherwise would be required.
Section 331 adds a new subsection (f) at the end of the first section
of the Administrative Expenses Act of 1946, authorizing the trans-
portation at Government expense of privately-owned motor vehicles
of civilian employees assigned to duty outside the United States.
Transportation of motor vehicles under subsection (f) will be author-
ized only upon a determination by the department or agency head
concerned that it is in the interest of the Government for the employee
to have the use of the motor vehicle at his post of duty. Transporta-
tion of a replacement motor vehicle is authorized after four years of
Approved For Release 2003/10/16 : CIA-RDP91-00965R000400090002-6
 Apj 4 ved FOY cDRUW3AMTI,19,~C IADR 1 ?9BGRW0400090002-6
continuous overseas service by an employee. Transportation of a
replacement motor vehicle prior to the completion of four years of
continuous service by an employee is authorized only upon the basis
of a determination in advance by the departme at or agency head
that a replacement vehicle is necessary in the inte rest of the Govern-
ment and for reasons which are beyond the control of the employee.
This replacement provision is intended to lbe used-only in cases such
as those involving rapid deterioration of a vehicle due to severe
climatic conditions or loss of a vehicle through flu-e, theft, or similar
cause. Transportation of employees' motor vehicles is authorized
by commercial means if available at reasonable rates, or by Govern-
ment means on a space-available basis. The new subsection (f) does
not apply to the Foreign Service of the United States under the
-Department of State, the International Cooperation Administration
the United States Information Agency, the Foreign Agricultural
Service of the Department of Agriculture, or the Central Intelligence
Agency. Provisions for the transportation of motor vehicles of officers
and employees in those agencies are contained i:a the amendments
made by sections 332 and 333 of the bill.
The committee was given specific assurance tha lu this authority for
the transportation of privately owned motor -Pehicles would be
strictly administered to insure thatsuch transportation will be author-
ized only where it is clear that the use of an employee's motor vehicle
will contribute to effectiveness in the performance,of official duties, is
desirable and suitable under local conditions, is in the interest of the
Government, and is not solely for personal convnience of the em-
ployee. The following colloquy during the hearings on H.R. 5007
and H.R. 5009 further amplifies this administrative intent:
Mr. PORTER. Now this transportation of household goods
and motor vehicles, we have had allegations from time to
time about abuses in this area. I know of on a case recently
which may or may not have been abused, whc re a man took
his car overseas and then sold it for quite a profit. Are there
any controls over that sort of thing?
Mr. JACKSON [Deputy Assistant Secretary of Defense
(Manpower, Personnel and Reserve)]. We lave had, if I
may say, a rather top-level committee working intensely on
the problem as it involves the military, becaut a the military
has more leeway with regard to shipments than civilians
without this bill. We are very much. concerned, not only
from the possibility of making a profit in an individual case,
but we are concerned with the effect: on the host countries
where in some instances the economy is ver;, low and the
means of transportation are not at all comparable in size and
what seems to them to be very luxurious type of vehicles.
There has been a very marked consciousness of this and
efforts to decrease this unfavorable impact, on the local
people. I am confident, and I am prepared try state this for
the record at this time, that as far as the Defense Department
is concerned, and I am sure the State and oth ~,r agencies are
conscious of this, that the authorization of transportation of
motor vehicles will be very austerely administered, for the
civilians I am talking about.
Approved For Release 2003/10/16 : CIA-RDP91-00965R000400090002-6
 Approved F$~M spb&qffApgr ,sChi gEi%IW-RqL?RRA p40009A002-6
The committee intends to maintain a close watch of the costs in-
curred in the transportation of privately owned motor vehicles under
part D of title III of the bill.
Section 332 amends section 913 of the Foreign Service Act of 1946
(under which transportation is authorized at Government expense for
privately-owned automobiles of officers and employees of the Foreign
Service, the International Cooperation Administration, the United
States Information Agency, and the Foreign Agricultural Service of
the Department of Agriculture) so as to conform the authority con-
tained in such section with the authority for shipment at Government
expense of privately-owned motor vehicles of employees of other
departments and agencies contained in the new subsection (f) added
at the end of the first section of the Administrative Expenses Act of
1946 by section 331 of the bill.
It is to be noted that authority for the transportation of privately-
owned automobiles, contained in section 913 of the Foreign Service
Act of 1946, is extended to the Administrator of Veterans' Affairs,
with respect to certain personnel of the Veterans' Administration
assigned to duty in the Republic of the Philippines, by section 235
(a) (6) of title 38 of the United States Code, as added by the Act ap-
proved July 28, 1959 (Public Law 86-116; 73 Stat. 265). The new
subsection (f) as added by section 331 of the bill, therefore, does not
apply to those employees of the Veterans' Administration who are
subject to such section 235(a)(6). However, the new subsection (f)
does apply to those employees of the Veterans' Administration not
subject to such section 235(a)(6).
Section 333 amends section 4 of the Central Intelligence Agency
Act of 1949 (which authorizes transportation at Government expense
of privately-owned automobiles of personnel of the Central Intelligence
Agency assigned to duty outside the United States) so as to conform
the authority contained. in such section with the authority for ship-
ment at Government expense of privately-owned motor vehicles of
personnel of other departments and agencies contained in the new
subsection (f) added at the end of the first section of the Administra-
tive Expenses Act of 194:6 by section 331 of the bill. The amendment
made by section 333 (b) with respect to the Central Intelligence Agency
is identical in effect to the amendment made by section 332 with
respect to the Foreign Service and other agencies referred to in such
amendment.
TITLE IV-AMENDMENTS TO ANNUAL AND SICK LEAVE ACT OF 1951
Title IV relates generally to the accumulation of leave by, and the
conditions for granting leave to, employees of the Government of the
United States who are stationed outside of the several States of the
United States and the District of Columbia.
Section 401 amends subsections (d), (e), and (f) of section 203 of
the Annual and Sick Leave Act of 1951 (5 U.S.C. 2062 (d), (e), and (f)).
The amendment to such subsection (d) accomplishes two general
purposes. First, the amendment deletes, from that part of subsection
(d) which precedes paragraph (1) thereof, language which excludes
from the coverage of such subsection employees in the Foreign Service
of the United States under the Department of State. The effect is to
bring such employees in the Foreign Service within the purview of
H. Rept. 902, 86-1-4
Approved For Release 2003/10/16 : CIA-RDP91-00965R000400090002-6
 App2oved Fw saseDZWXARMi sC iRUMUQWUF A0400090002-6
such subsection (d) as amended by section 401 of he bill. Since that
part of such subsection (d) which precedes paragraph (1) thereof
authorizes a maximum accumulation of not to exceed forty-five days-
of annual leave for certain categories of employees, and since the
amendment made by the bill to such part brings employees in the
Foreign Service within the purview of such subsection, the maximum
accumulation of not to exceed forty-five days o C annual leave will
be applied to employees in the Foreign Service exactly as it applies
to employees in other departments and agencies udder existing law.
Second, the amendment extends the coverage of paragraphs (1) and
(2) of such subsection (d) to a comparatively small number of addi-
tional employees in overseas areas.
The existing paragraph (1) designates, as one )f the categories of
employees covered by subsection (d), _persons d rectly recruited or-
transferred from the United States. The amendment extends this
category to include persons directly recruited or transferred from the-
Commonwealth of Puerto Rico or the possessions of the United States.
for employment in overseas areas outside of the area of recruitment
or the area from which transferred.
The existing paragraph (2) designates, as a second category of
employees covered by subsection (d), persons employed locally in
overseas areas (A) who originally were recruited from the United
States, who have been in substantially continuous employment by
other Government agencies, United States firms, international organ-
izations in which the Government participates, or foreign govern-
ments, and whose conditions of employment provide for their return
transportation to the United States or (B) who at the time of em-
ployment are temporarily absent from the United States for travel or
formal study and who during such absence maintain residence in the-
United States. The amendment, in conformity with the amendment
to paragraph (1), extends the coverage of paragraph (2) to persons,
employed locally but who originally were recruited from the Common-
wealth of Puerto Rico or the possessions of the United States but
outside the area of employment.
The amendment also makes a technical change-in the language of
paragraph (3) of such subsection (d), which relates to persons who=
are not normally residents of overseas areas in whi>h employed by the-
Government but who are discharged from militaiy service to accept
Government employment.
The amendment to subsection (e) of section 203 of the Annual and
Sick Leave Act of 1951 continues the effect of such subsection (which
is to preclude any reduction in the leave authorized by such Act for
time actually and necessarily used in traveling to and from a post of
duty and in awaiting transportation) and extends this effect to persons.
recruited or transferred from the Commonwealth. of Puerto Rico or-
the possessions of the United States for employment outside the
United States and outside the area of recruitment or from which
transferred. The amendment limits the application of subsection (e)
to not more than one period of leave "in a prescrib ,d tour of duty at a
post outside the United States," in lieu of the existing limitation of
not more than one period of leave "in any twenty-four month&
period." This revision is necessary for the reaeon that prescribed
tours of duty in some cases, such as those involving assignments to
posts at which the employees will be subjected to extraordinary
Approved For Release 2003/10/16 : CIA-RDP91-00965R000400090002-6
 Approved For Release 2003/10/16 : CIA-RDP91-00965R000400090002-6
OVERSEAS DIFFERENTIALS AND ALLOWANCES ACT 27
hazards or dangerous health conditions, are for periods other than
twenty-four months in duration.
The amendment to subsection (f) of section 203 of the Annual and
Sick Leave Act of 1951 extends to all departments and agencies
authority to grant leave of absence (generally known as "home
leave") to officers and employees who have completed at least twenty-
four months of continuous service outside the United States. At
present, this leave is authorized only for personnel of the Foreign
Service of the United States, the United States Information Agency,
the International Cooperation Administration, the Foreign Agri-
cultural Service of the Department of Agriculture, and the Central
Intelligence Agency.
The home leave will be granted at a rate not to exceed one week for
each four months of such service and represents leave which is separate
and apart from the annual and sick leave otherwise provided for
under the Annual and Sick Leave Act of 1951. This home leave is for
use in the United States or (in appropriate cases) in the Common-
wealth of Puerto Rico or the possessions of the United States. There
is no limit on the maximum accumulation of home leave for Yuture
use, but no such leave can be made the basis for any terminal leave or
for any lump-sum payment for unused accumulated or accrued leave.
Section 402(a) of the bill amends section 202(b)(2) of the Annual
and Sick Leave Act of 1951 (5 U.S.C. 2061(b)(2)) by substituting the
words "the United States" for the words "the several States and the
District of Columbia." This is a technical amendment, made neces-
sary by the new definition which is provided by the amendment
made by section 402(c) of the bill in order to clarify the application of
the Annual and Sick Leave Act of 1951 to employees occupying
positions outside the several States of the United States (including
Alaska and, when admitted to the Union, Hawaii) and the District
of Columbia.
Section 402 (b) of the bill is a technical amendment, similar in effect
to the amendment made by section 402(a), which is necessary in order
to conform the provisions of section 203(g) of the Annual and Sick
Leave Act of 1951 (relating to the granting of leave to aliens employed
by the Government outside the United States) to the new definition
provided by the amendment made by section 402(c) of the bill.
Section 402(c) of the bill amends section 202 of the Annual and Sick
Leave Act of 1951 by adding at the end thereof a new subsection (d)
which defines the term "United States" for use in such Act. The
term "United States" is defined, for purposes of the Act, as meaning
the several States of the United States of America and the District
of Columbia. The term "United States", as so defined, replaces the
words "the several States and the District of Columbia" used in the
Annual and Sick Leave Act of 1951 as in effect prior to enactment of
the bill. This definition clarifies the intention that provisions of such
Act, heretofore applicable to employees assigned to duty within the
forty-eight States existing prior to the admission of Alaska and Hawaii
as States and in the District of Columbia, shall apply with equal force
and effect to employees assigned to duty in Alaska and (upon admis-
sion as a State) in Hawaii. The definition also clarifies the applica-
tion of provisions of such Act which relate to employees outside the
forty-eight States existing prior to the admission of Alaska and Hawaii
as States and the District of Columbia. Such provisions will apply,
Approved For Release 2003/10/16 : CIA-RDP91-00965R000400090002-6
 Appred For Release 2003/10/16: CIA-RDP91-00965R000400090002-6
OVERSEAS DIFFERENTIALS AND ALLOW NCES ACT
under the new definition, to employees assigned to duty at posts
outside of the several States (including Alaska bud, upon admission
as a State, Hawaii) and the District of Columbia.
It is to be noted that the amendments made by title IV of the bill
will be applicable to employees of the Veterans' Administration
(except those employees subject to section 235(a)(7) of title 38 of
the United States Code, as added by the Act of July 28, 1959 (Public
Law 86-116), to the extent that such section 2,'5(a)(7) is similar in
effect to the amendments made by title IV).
Section 403 provides that the amendments male by title IV of the
bill to the Annual and Sick Leave Act of: 1i951 shall take effect on the
first day of the first pay period following;the date-of enactment of the
bill.
TITLE V-APPROPRIATION, REPEAL, AMENDATORY, AND MISCELLANEOUS
PROVISIONS
Title V consists of Part A (Appropriation :?revisions), Part B
(Repeal and Amendatory -Provisions), and Pait C (Miscellaneous
Provisions) .
PART A-APPROPRIATION :PROVISIONS
Section 501 pertains to appropriations to carry out the purposes of
this bill.
Section 501(a) authorizes the appropriation oi' such sums as may
be necessary to carry out the purposes of the bill and of the amend-
ments to existing law made by the bill.
Section 501(b) provides that appropriations or funds otherwise
available, for the fiscal year ending June 30, 1960, to any department,
agency, establishment, or corporation of the U+ deral Government
within the purview of the bill or of any amendment made by the bill,
are made available for the purposes of the bill and of any such amend-
ment, in accordance with the authority containe:l in the bill or con-
tained in any law amended by the bill and in accordance with such
regulations as- the President may prescribe.
PART B-REPEAL AND AMENDATORY PROVISIONS
Section 511 of the bill contains provisions w:aich repeal, amend,
modify, and conform existing law.
Section 511(a) of the bill contains specific repeal provisions.
Section 511(a) (1) of the bill repeals specified sections of the Foreign
Service Act of 1946, as follows:
(1) Section 443 (22 U.S.C. 888), pertaining tu salary differentials
at hardship posts, which is replaced by section 23 L of the bill, relating
to post differential.
(2) Section 901 (22 U.S.C. 1131), pertaining to qquarters allowances,
cost-of-living allowances, and representation alowances, which is
replaced by section 211 (quarters allowances), section 221 (cost-of-
living allowances), and section 301 (representation expenses), of the
bill.
(3) Section 902 (22 U.S.C. 1132), pertaining to official residence
expenses, which is replaced by the new section 23 of the Administrative
Expenses Act of 1946 (official residence expenses) added to such Act
by section 321(a) of the bill. -
Approved For Release 2003/10/16 : CIA-RDP91-00965R000400090002-6
 Approved F 9 sej2 O IWit6,s QI #bRQ?tk RO@040009
(4) Section 903 (22 U.S.C. 1133), pertaining to accounting
allowances, which is unnecessary in view of section 203 of the
(regulations of the President governing payment of allowances ar_
differentials) and other related provisions.
(5) Section 911(9) (22 U.S.C. 1136(9)), pertaining to travel ex-
penses for purposes of secondary or college education, which is re-
placed by section 221(4) (B) of the bill, relating to the travel payment
for educational purposes.
Section 511(a) (2) repeals sections 2(b), 13, and 14 of the Act of
August 1, 1956 (5 U.S.C. 170g(b), 170r, and 170s), which provided
certain basic authority for the Department of State.
Section 2(b) of such Act, relating to payment by the Secretary of
State of certain transportation and storage costs of employees of the
Foreign Service, is replaced by similar provisions contained in the
amendments made by section 311 of the bill to the Foreign Service
Act of 1946.
Sections 13 and 14 of such Act of August 1, 1956, relating to the
extension of the quarters allowance of the Foreign Service of the
United States to include water and the availability of appropriations
for advance payments of such allowances, are replaced by section
211(2) of the bill which provides that the living quarters allowance
provided by the bill will include water and by section 202 of the bill
which makes provision for advance payment of allowances.
Section 511(a) (3) of the bill repeals sections 1(d) and 4(b) of the
Central Intelligence Agency Act of 1949 (50 U.S.C. 403a(d) and
403e(b)).
Section 1(d) of such Act contained a definition of the term "conti-
nental United States". This definition is unnecessary in view of the
definitions provided by section 111 of the bill.
Section 4(b) of such Act authorized the Director of Central In-
telligence to grant to officers and employees of the Central Intelligence
Agency allowances in accordance with section 901 (1) and (2) of the
Foreign Service Act of 1.946. Such section 4(b) is made unnecessary
in view of the repeal by the bill of section 901 of the Foreign Service
Act of 1946 and authority provided in title II of the bill for the
Central Intelligence Agency to grant allowances and differentials to
employees of such Agency.
Section 511(b) of the bill provides that any provision of law which
is not repealed by section 511(a) of the bill but which is inconsistent
with any provision of the bill or of any amendment made by the bill
shall be held and considered to be amended, modified, or superseded
to the extent necessary to carry out the purposes of and conform to
such provisions of the bill or of such amendment. The purpose of this
provision is to provide a basis for conforming existing law generally
to the objects and purposes of the bill.
An example of the application of section 511(b) of the bill is the
effect of such section on section 235 of title 38 of the United States
Code, as added by the Act of July 28, 1959 (Public Law 86-116).
Section 235 of title 38 of the United States Code provides that the
Administrator of Veterans' Affairs may provide to personnel of the
Veterans' Administration who are United States citizens and are
assigned by the Administrator to the Veterans' Administration office
in the Republic of the Philippines, allowances and benefits similar to
Approved For Release 2003/10/16 : CIA-RDP91-00965R000400090002-6
 AppQved F?YRW464%E) tMSOI Div: QQfD?FW400090002-6
those provided by certain sections of the Foreign Service Act of 1946,
as follows :
(1) Section 901(1) (allowances for temporf,ry and permanent
living quarters, heat, light, water, fuel,. gas, and electricity) ;
(2) Section 901(3) (representation allowances) ;
(3) Section 902 (allotment for official residences of principal
American representatives);
(4) Sdction 903 (accounting for allowances) ;
(5) Section 911(1), (2), (3), (4), (5), (7; , and (9) (travel
expenses) ;
(6) Section 913 (transportation of automobiles) ;
(7) Section 933 (return of personnel to the United States on
leaves of absence) ; and
(8) Section 941 (payment by the United States of expenses
for treating illness or injury of officers or Employees and de-
pendents requiring hospitalization).
Such section 235 also provides that personnel of the Veterans'
Administration who are United States citizens and are assigned to
the Republic of the Philippines by the Administrator of Veterans'
Affairs may begranted leaves of absence in the United States by the
Administrator of Veterans' Affairs, similar to that Provided by section
203(f) of the Annual and Sick Leave Act of 1951 1-5 U.S.C.2062(f)).
As noted above, section 511(a) (1) of this bill will repeal sections
901, 902, 903, and 911(9) of the Foreign Service Act of 1946 (22
U.S.C. 1131, 1132, 1133, and 1136(9)).
Section 901 of the Foreign Service Act of 1.946 is replaced by section
211 (quarters allowances), section 221 (cost-of-living allowances), and
section 307 (representation expenses), of the bill.
Section 902 of such Act is replaced by the new section 23 of the
Administrative Expenses Act of 1946 (official r(sidence expenses)
added to such Act by section 321 (a) of this bill.
Section 903 of such Act is replaced by similar previsions in section
203 of the bill and related provisions of title II of the bill.
Section 911(9) of such Act is replaced by section 221(4) (B) of this
bill (travel payment for-educational purposes).
Although the recently enacted section 235 of title 38 of the United
States Code is not repealed by this bill, such section clearly is incon-
sistent with this bill to the extent that this bill covers the same matters
as such section 235.
Section 511(b) of this bill makes it clear that section 235 of title 38
of the United States Code is superseded by this bill to the extent that
the provisions of such section 235 cover the sair. e matters as are
covered by this bill.
The Veterans' Administration is covered by the' definition of the
term "Government agency" in section 111(2) of this bill and its
personnel will be entitled to the allowances and differentials in foreign
areas provided by title II of this bill rather than the aim.ilar allowances
and benefits provided under section 235 of title 38 of the United States
Code by reference to sections 901(1), 901(3), 902, 903, and 911(0) of
the Foreign Service Act of 1946. In addition, the Veterans' Adminis-
tration is presently within the purview of the Administrative Expenses
Act of 1946 and the Annual and Sick Leave Act of 1951 and, con-
sequently, will receive the benefit of the amendmer is made to those
laws by section 301 of the bill (representation expenses), section 311(c)
Approved For Release 2003/10/16 : CIA-RDP91-00965R000400090002-6
 Approved Fo6A% ~e palg1 fXLsC1 b2[l~pj-. PO R@9400099002-6
of the bill (storage), section 321(a) of the bill (official residence
expenses), section 331 (transportation of motor vehicles), and title IV
of the bill (leave provisions). However, those employees of the
Veterans' Administration who are subject to paragraphs (6) (trans-
portation of motor vehicles) or (7) (leaves of absence) of section 235(a)
of title 38 of the United States Code as added by the Act of July 28,
1959 (Public Law 86-116), will remain subject to such paragraphs
and will not be subject to the amendment made by section 331 of the
bill or to those provisions of the amendments made by title IV of the
bill which are comparable to the provisions of such paragraph (7).
As a result of the enactment of this bill, section 235 of title 38 of the
United States Code will be superseded in all respects except with
respect to-
(1) the travel expenses provided under the language of sub-
paragraph (5) of subsection (a) of such section 235 by reference
to section 911 (1), (2), (3), (4), (5), and (7) of the Foreign Service
Act of 1946;
(2) the transportation of automobiles provided under the
language of subparagraph (6) of subsection (a) of such section
235 by reference to section 913 of the Foreign Service Act of 1946;
(3) the return of personnel to the United States on leaves of
:absence which is covered by the language of subparagraph (7)
of subsection (a) of such section 235 by reference to section 933
of the Foreign Service Act of 1946; and
(4) payment by the United States of certain expenses of illness
or injury which is provided for under the language of subparagraph
(8) of subsection (a) of such section 235 by reference to section
941 of the Foreign Service Act of 1946.
Section 511(c) of the bill makes amendments to the Central Intelli-
gence Agency Act of 1949 and the Act of June 26, 1930.
Section 511(c) (1) of the bill makes a technical amendment to section
1(c) of the Central Intelligence Agency Act of 1949 (50 U.S.C.
403a(c)) which is necessary because of the repeal of section 1(d) of
such Act by section 511. (a) (3) of this bill.
Section 511(c) (2) of the bill makes a technical amendment to section
4(1)(A) of the Central Intelligence Agency Act of 1949 (50 U.S.C.
403e(a) (1) (A)) which provides for the payment by the Central
Intelligence Agency of the travel expenses of its officers and employees
assigned to permanent-duty stations outside the continental United
.States, including expenses incurred while traveling pursuant to author-
ized home leave. This technical amendment adjusts the language of
such section 4 (1) (A) to reflect similar provisions of this bill.
Section 511(c) (3) of the bill amends section 4(3) (A) of the Central
Intelligence Agency Act of 1949 (50 U.S.C. 403e(a) (3) (A)) which
relates to the authority of the Central Intelligence Agency to order
to the United States for leave purposes certain officers and employees
of the Agency on completion of two years of continuous service abroad.
This amendment also is a technical amendment which is necessary to
reflect certain provisions of the bill, for example, the definitions in
section 111 of the bill.
Section 511(c) (4) of the bill amends section 4(3)(B) of the Central
Intelligence Agency Act of 1949 (50 U.S.C. 403e(a) (3) (B)) which
provides that, while in the continental United States on leave, the
service of any officer or employee of the Central Intelligence Agency
Approved For Release 2003/10/16 : CIA-RDP91-00965R000400090002-6
 Aploved Fo ? ,3 ksC4ABRli 1 R SF .0400090002-6
shall not. be available for work or duties except in the Agency or for
training or for reorientation for work and the time of such work or
duty shall not be counted as leave. This amendment provides that,
while in the United States on leave, the service of any officer or em-
ployee shall be available for work or duties in the Agency or elsewhere
as the Director may prescribe; and the time of such-work or duty shall
not be counted as leave. The amendment confo]ms to certain pro-
visions of the bill such as the definitions in section ill of the bill.
Section 511(c) (5) of the bill amends section 4(3)(c) of the Central
Intelligence Agency Act of 1949 (50 U.S.C. 403e(a; (3)(C)) which pro-
vides that where an officer or employee of the Central Intelligence
Agency on leave returns to the United States or its Territories and
possessions, leave of absence granted shall. be exclusive of the time
actually and necessarily occupied in going; to and from the United
States or its Territories and possessions, and such time as may be
necessarily occupied in awaiting transportation. The sole change
made by this amendment is to eliminate the words "United States
or its Territories and possessions" and su.bstituO in lieu thereof a
reference to the United States which will conform to the definitions
contained in section 111 of the bill.
Section 511(c) (6) of the bill amends the Act of June 26, 1930
(5 U.S.C. 118a), which provides that civilian officers and employees
of the Government having permanent station in_a foreign country
may be furnished, without cost to them, living quarters in Govern-
ment-owned or rented buildings and, where such quarters are not
available, may be granted an allowance for living quarters including
beat, fuel, and light. The amendment made by section 511(c)(6) of
the bill strikes out all references in such Act to allowances in lieu of
living quarters as unnecessary in view of the provisions with respect
to quarters allowances contained in Part B of title II of the bill.
Conforming Provision
Section 521 of the bill provides that, whenevei_ reference is made
in any other law or in any regulation to any pprovision of law which is
repealed, modified, amended, or superseded by reason of section 511
of the bill, such reference (unless inconsistent with the objects and
purposes of this bill) shall be held and considered ~o refer to this bill,
or the appropriate provision of, or amendment m ide by, this bill.
The recently enacted Defense Department Overseas Teachers Pay
and Personnel Practices Act (Public Law 86-91) contains provisions
which illustrate the application of section 521 of the bill.
Section 7(b) of such Act provides that each teacher (other than a
substitute teacher) shall be entitled, for each schocl year for which he
performs services as a teacher, to quarters or a quarters allowance
equal to those authorized by the Act of June 26, 1930 (5 U.S.C. 118a).
Section 7(c) of such Act provides, in part, that each teacher (other
than a substitute teacher) who is performing services as a teacher at
the close of a school year and agrees in writing W serve as a teacher
for the next school year may be authorized, for the recess period
immediately preceding such next school year, quarters or a quarters
Approved For Release 2003/10/16 : CIA-RDP91-00965R000400090002-6
 Approved For Release 2003/10/16 : CIA-RDP91-00965R000400090002-6
OVERSEAS DIFFERENTIALS AND ALLOWANCES ACT 33
allowance equal to those authorized by the Act of June 26, 1930
(5 U.S.C. 118a).
It should be noted that section 511(c)(6) of the bill proposes to
eliminate from the Act of June 26, 1930, all references to living quar-
ters allowances so that such Act will provide only for living quarters
for Government employees and not for the granting of allowances
in lieu of the living quarters. However, Part B of title II of this
bill contains provisions with respect to quarters allowances which
will replace on a broader scale the allowance provisions contained in
the Act of June 26, 1930. As a result of the operation of section 521
of this bill, any teacher within the purview of section 7(b) or 7(c)
of the Defense Department Overseas Teachers Pay and Personnel
Practices Act will be entitled to living quarters in Government-
owned or rented buildings equal to those authorized by the Act of
June 26, 1930, or, where such quarters are not available, quarters
allowances equal to those authorized by Part B of title II of this
bill (in lieu of allowances equal to those authorized by those provi-
sions of the Act of June 26, 1930, which will be eliminated by section
511(c) (6) of this bill).
Likewise, section 8(a) of the Defense Department Overseas Teachers
Pay and Personnel Practices Act provides that each teacher (other
than a substitute teacher) shall be entitled, in addition to basic
compensation, to cost-of-living allowances equal to those authorized
by section 901(2) of the Foreign Service Act of 1946 (22 U.S.C.
1131(2)) which is repealed by section 511(a) (1) of this bill. As a
result of the operation of section 521 of this bill, a teacher to whom
section 8(a) of the Defense Department Overseas Teachers Pay and
Personnel Practices Act is applicable will be entitled to cost-of-living
allowances equal to those authorized by Part C of title II of this bill
rather than cost-of-living allowances equal to those authorized by
section 901(2) of the Foreign Service Act of 1946 which is repealed by
section 511(a) (1) of this bill.
Section 8(a) of the Defense Department Overseas Teachers Pay and
Personnel Practices Act contains another example of the application
of section 521 of this bill.
Such section 8(a) further provides that each teacher (other than a
substitute teacher) shall be entitled, in addition to basic compensation,
to additional compensation equal to that authorized under section 207
of the Independent Offices Appropriation Act, 1949 (5 U.S.C. 118h).
It is pointed out in that portion of this explanation of the bill which
relates to Part D of title II of the bill-post differentials-that it is the
intent of the committee that the provisions of title II of this bill shall
supersede the provisions of section 207 of the Independent Offices
Appropriation Act, 1949, and that such section 207 no longer will
apply to employees in foreign areas within the purview of title II of
this bill. To the extent that a teacher subject to the Defense Depart-
ment Overseas Teachers Pay and Personnel Practices Act comes
within the provisions of title II of this bill, he will be entitled, (as a
result of the application of section 521 of this bill and the intent of
the committee discussed above) to post differential equal to that
authorized by Part I) of title II of this bill rather than additional
compensation equal to that authorized under section 207 of the
Independent Offices Appropriation Act, 1949.
Approved For Release 2003/10/16 : CIA-RDP91-00965R000400090002-6
 Apprg4ied Fore@pjW gA l-LgIAFDDP9 owc5R000400090002-6
Transition Provision
Section 522 of the bill provides for the transition from the system
of allowances and differentials provided under existing law to the new
system of allowances and differentials provided by this bill.
Section 522 provides that notwithstanding any provision of this bill
and until such time as regulations are issued under! this bill, employees
shall continue to be paid allowances and differentials in accordance
with rules and regulations issued pursuant to the laws in effect imme-
diately prior to the enactment of this bill and ;hat such rules and
regulations may be amended or revoked in accordance with the
provisions of such laws.
Exemptions From Tax For Certain A112wances
Section 523(a) amends section 912 of the Internal Revenue Code of
1954, which relates to the exemption from Federal income tax of cer-
tain allowances. Under paragraph (1) of the existing section 912, in
the case of civilian officers and employees of the United States sta-
tioned outside the continental United States, amounts received as
cost-of-living allowances in accordance with regu.lRtions approved by
the President are not includible in gross income. Under paragraph
(2) of the existing section 912, amounts received by an officer or em-
ployee of the Foreign Service of the United Stat,.s as allowances or
otherwise under title IX of the Foreign Service ILct of 1946 are not
includible in gross income.
Section 523(a) of the bill, as amended by the committee, amends
section 912 of the Internal Revenue Code of 1954 t) make the changes
in it made necessary by reason of the provisions )f titles II and III
of the bill. The amended paragraph (1) of section 912 provides that
in the case of civilian officers and employees of the United States,
amounts received as allowances or otherwise under certain designated
provisions of law are not to be included in gross income. The desig-
nated provisions of law are:
(1) Title IX of the Foreign Service Act of 1946.
(2) Section 4 of the Central Intelligence Agency Act of 1949.
(3) Title II of the bill.
(4) Subsections (e) and (f) of the first section of the Adminis-
trative Expenses Act of 1946, and sections 22 f;nd 23 of that Act.
The references to the provisions of law so designated are references
to such provisions as amended from time to time- and thus include
the amendments made thereto by title III of the b:11.
In paragraph (1) of the amended section 912 it is made clear that
its provisions do not apply to amounts received as-post differentials.
For this purpose, the term "post differentials" r.ieans, in general,
amounts granted on the basis of conditions of environment which
differ substantially from conditions of environment in the continental
United States, such as amounts granted pursuant to the authority
contained in section 231 of the bill.
Under the bill as introduced, paragraph (1) (D) contained a reference
to subsection. (a) of the first section of the Administrative Expenses
Act of 1946. Such subsection (a) provides, in general, that where
a civilian officer or employee of the Government is, in the interest of
the Government, transferred from one official station to another for
Approved For Release 2003/10116 : CIA-RDP91-00965R000400090002-6
 Approved FoS
V tIj~eI&YPP41W, &SC -~glPRM- ffWR@, 400099902-6
permanent duty, his travel expenses, the expenses of transporting
his immediate family, and the expenses of transporting or storing his
household goods, may be paid from Government funds. The third
proviso of this subsection states that no part of such expenses may
be paid from Government funds where the transfer is made primarily
for the convenience or benefit of the officer or employee or at his
request. Under Revenue Ruling 54-429 (1954 Cumulative Bulletin
1954-2, page 53), it has been held that where an employee is trans-
ferred in the interest of his employer from one official station to another
for permanent duty, the allowance or reimbursement received for
moving himself, his immediate family, family goods, and personal
effects is not includible in the gross income of the employee if the
total amount of the reimbursement or allowance is expended for such
purpose. In view of this revenue ruling, the reference to such sub-
section (a) is stricken by a committee amendment on the grounds,
that it is unnecessary.
Paragraph (2) of the amended section 912 provides that in the case
of civilian officers or employees of the United States who are stationed
outside the continental. United States, there shall not be included in
gross income amounts (other than amounts received under title II
of the bill) received as cost-of-living allowances in accordance with
regulations approved by the President.
For purposes of the new paragraph (2), Alaska is not treated as
part of the continental United States. Thus, it the case of a civilian
officer or employee of the United States stationed. in Alaska, amounts
received as a cost-of-living allowance in accordance with regulations
approved by the President are not to be included in gross income.
Section 523(b) of the bill as amended by the committee provides
that the amended section 912 of the Internal Revenue Code of 1954
is to apply only with respect to amounts received on or after the date
of the enactment of the bill in taxable years ending after that date
In the case of any amount received before the date of the enactment of
the bill, its tax treatment is to be determined under existing law with-
out inferences drawn from the amendment made by the bill. Further-
more, the tax treatment of amounts received on or after the date of the
enactment of the bill to which the provisions of the amended section
912 are not expressly made applicable is to be made under the Internal
Revenue Code of 1954 without inferences from the fact that such
provisions are not expressly made applicable.
AGENCY REPORTS
GENERAL COUNSEL OF THE DEPARTMENT OF DEFENSE,
Washington, D.C., June 10, 1959.
Hon. Tom MURRAY,
Chairman, Committee on Post Office and Civil Service,
House of Representatives.
DEAR MR. CHAIRMAN: Reference is made to your request for the
views of the Department of Defense on H.R. 5007 and H.R. 5099,
86th Congress, identical bills to improve the administration of over-
seas activities of the Government of the United States, and for other
purposes.
The purpose of these bills is stated in their titles and amplified in
section 101. They would provide a more effective and uniform
Approved For Release 2003/10/16 : CIA-RDP91-00965R000400090002-6
 Ap ved F W cbXM4j &Cj4DRPLC R NSF ( D400090002-6
means for compensating employees in overseas ai eas for extra costs
and hardships incident to their assignments, and would facilitate the
recruitment and retention of the best qualified personnel for civilian
service overseas.
These bills would authorize the following not now authorized for
civilian employees of the Department of Defense-in overseas areas:
(a) Temporary lodging allowance for not to exceed 3 months after
first arrival at new post of assignment and for not to exceed 1 month
preceding final departure from the post, both depending on immediate
nonavailability of residence quarters.
(b) Addition of "water" to the list of utilities included in the
quarters allowance authorization.
(c) Repair, alteration, and improvement of employee's privately
leased residence under certain conditions.
(d) Transportation costs to a school in the United States for
dependents, not to exceed one trip each way, for purposes of obtaining
secondary or undergraduate college education.
(e) Storage and related expense for household Koods when in the
public interest.
(f) Transportation of motor vehicles when it is c.etermined to be in
the interest of the Government for an employee to have the use of a
motor vehicle at his post of duty.
(g) Extension of provisions of section 203(d)(1) of the Annual and
Sick Leave Act of 1951 to -permit employees recruited from Alaska,
Hawaii, Puerto Rico, or the possessions for employment outside the
area of recruitment or from which transferred to accumulate not to
exceed 45 days of annual leave.
(h) Authorization of home leave. Upon completion of 24 months
of continuous service outside the continental United States employees
may be granted leave of absence at a rate not to exceed 1 week for
each 4 months of such service for use in the continental United States
or (if their place of residence is outside the area of employment) in
Alaska, Hawaii, Puerto Rico, or the possessions.
(i) Amendment of section 912(1) of the Tnternai. Revenue Code of
1954 to exempt foreign area allowances from income taxes.
The Department of Defense has consistently favored enactment of
legislation containing the fundamental provisions of H.R. 5007 and
H.R. 5099. These bills embody many of the features which this
Department has recommended for inclusion in similar bills introduced
in previous sessions of the Congress. Enactment of this legislation
would be of material benefit to the Department of :Defense in recruit-
ing and retaining the best qualified civilian personnel for its overseas
activities.
H.R. 5007 and H.R. 5099 have been carefully r,wiewed in consid-
eration of recent experience in overseas employment and in light of
some recent developments such as Alaskan and Hfwaiian statehood.
The Department of Defense suggests the following changes to make
these bills more responsive to current needs:
1. The recent acquisition of statehood by Alaska and the impending
statehood for Hawaii has created problems because of various defini-
tions in statutes of such terms as "United Stales," "continental
United States" and "foreign area." For purpose c f clarification and
to take into account differences in application of Certain provisions
Approved For Release 2003/10/16 : CIA-RDP91-00965R000400090002-6
 Approved For ReRea se 2003//10/16 : CI - DAP9I- 0965R0000400090Q02-6
of law to Alaska or Hawaii, as compared to the other 48 States, the
following changes in definitions are recommended:
Page 3, line 5: After "Alaska" insert "and Hawaii". This will
insure that when Hawaii becomes a State it will not be included in the
term "continental United States."
Page 3, line 6: Following line 6 insert a new subsection as follows:
"(5) `United States' means the several States of the United States
of 'America and the District of Columbia; and,". This will provide
a term for application to all the States and the District of Columbia.
Page 3, line 8: Redesignate this subsection as (6) instead of (5)
and delete the words "continental" and "excluding Alaska, Hawaii".
Page 6, line 15: Strike out "continental".
Page 7, line 25: Change "111(5)" to "111(6)".
2. Under present law and regulation a post differential may be paid
to employees on extended detail to a foreign post. In some cases this
results in a reduction if an employee is detailed fr)m one foreign post
to another with a lower differential. To insure that this practice can
be continued the following changes should be made:
Page 3, line 16: After the parentheses insert: "and except as pro-
vided in section 231".
Page 8, line 13: Change the period at the end to a comma and add
"and may be granted to employees stationed at or on extended detail
to a foreign post."
3. The Administrative Expenses Act of 1946, as amended, limits
the shipment of household effects for civilian employees to 7,000
pounds if uncrated or 8,750 pounds if crated. The 7,000 pounds limit
is generally adequate; however, the limit for crated effects is unrealistic
and has created many problems in the case of overseas shipments.
The packing and crating which is necessary for overseas shipment
increases the total weight of the shipment an average of 90 percent.
The result is that employees are automatically restricted to a figure
which, exclusive of packing and crating material, is considerably lower
than was intended. In quite a few cases employees shipping house-
hold effects well within the uncrated limit of 7,000 pounds have been
forced to pay overweight shipment charges running into several
hundred dollars. To correct this inequity it is recommended that an
amendment to the Administrative Expenses Act be included which
would remove the present weight limit for crated household goods and
effects, as follows:
Page 11, line 21: After "by" insert "striking out the second paren-
thetical clause in subsection (a) and inserting in lieu thereof `(not to
exceed seven thousand pounds net weight)' and by".
4. Because of the acquisition of statehood by Alaska and the
impending acquisition of statehood by Hawaii the coverage of the
Annual and Sick Leave Act of 1951 as amended should be clarified.
The Department of Defense believes that the provisions of this Act
should apply equally in all States of the Union. To accomplish this
"United States" should be defined in the Annual and Sick Leave Act
as that term is proposed to be defined in section 111 of H.R. 5007 and
H.R. 5099. This will require the following changes in subsection
402(c):
Page 21, line 4: Strike out "continental".
Page 21, line 6: Strike out "(including Alaska) ".
Approved For Release 2003/10/16 : CIA-RDP91-00965R000400090002-6
 ApgTved FW&Rj%~sS,?9P Lj#i1fts IC -R P P 5F P90400090002-6
These changes make the change proposed in section 202(c)(2) of
the Annual and Sick Leave Act [sec. 402(b) of the bills] unnecessary,
but will require a change in section 203(g) of the Act. To accomplish
this the following change should be made in H.R. 51)07 and H. R. 5099.
Page 20, lines 13-22: Strike out the language of subsection (b) and
insert in lieu thereof "Section 203(g) of such Act as amended (5
U.S.C. 2062(g)), is amended by striking out `several States and the
District of Columbia' and inserting in lieu thereof `United States'."
The changes in definition above recommended will require the
following changes in title IV of the bills:
Strike out "continental" at the following places: page 17, lines 22,
24; page 18, lines 5, 13, 17, 21; page 19, lines 10, 11, 17, 19, 24; and
page 20, line 11.
Strike out "Hawaii" at the following places: pa?;e 17, line 25; page
18, lines 6, 14, 18, 22; and page 19, lines 13 and 21".
5. Employees who complete agreed tours. of duty in overseas areas
and who agree to serve for an additional tour at the same post are
eligible for round trip travel to the United States for purposes of
taking leave. Recently a question has been raised by the Bureau of
Internal Revenue as to whether the expenses of such travel and trans-
portation is income for purposes of taxation. The Department of
Defense believes that as a matter of equity such expenses should not
be considered income and should be clearly exempt from taxation.
To accomplish this result, it is recommended that I[. R. 5007 and H.R.
5099 be amended as follows:
Page 25, after line 6: Insert a new subsection as-follows:
"(3) Expenses of Travel and Transportation.
"(a) In the case of civilian officers and emplo;7ees of the United
States Government, amounts received as expenses of travel and trans-
portation, or costs of transportation provided in lieu thereof, from
posts of duty outside the continental United State.,, to and from their
place of residence, for the purposes of taking leave authorized by
Section 7 of the Act of August 2, 1946, 60 Stat. 8013, as amended.
"(b) The amendment made by this section shall `apply with respect
to taxable years beginning after December 31, 1953, and ending after
the date of enactment of this Act."
6. In addition to the above changes the following minor technical
corrections should be made:
Page 3, line 14: Strike out "Short title. and", since the short title
appears after the enacting clause.
Page 5, line 7: After "the" insert "reasonable".
COST AND BUDGET DATA
Cost to the Department of Defense of enactment of this proposal
would be as follows:
Fiscal year
1960
Fiscal year
1961
Fiscal year Fiscal year
1902 1963
Fiscal year
1964
Armyyy___________________________
Air Force________________________
$1,60,00
1, 075, 00
$1, 580, 000
1.020, 0 0
$1,580,000
1,020,000 0
$1,580,000
1, 020, 000
$1,580,000
1, 020, 00
Total______________________
2,972,00
2,890,00
2,890,00
2,80,000
2,890,000
Approved For Release 2003/10/16 : CIA-RDP91-00965R000400090002-6
 Approved oVE Jegs$ipVMJ~9 9 PXQFo WW 04000"002-6
No funds for this proposal have been provided in the Department of
Defense Appropriation estimates for fiscal year 1960. In the event of
enactment, additional funds would be required.
The Bureau of the Budget has advised that there is no objection
to the submission of this report to the Congress.
Sincerely yours,
ROBERT DECHERT
(Signed for L. Niederlehner).
DEPARTMENT OF STATE,
Washington, May 5, 1959.
Hon. Tom MURRAY,
Chairman, Committee on Post Office and Civil Service,
house of Representatives.
DEAR MR. MURRAY: Reference is made to your letters of March
4, 1959, requesting reports on identical bills H.R. 5007 and H.R. 5099,
to improve the administration of overseas activities of the Govern-
ment of the United States, and for other purposes.
The subject bills would extend to employees of other agencies who
are stationed in foreign areas certain benefits that are now available
only to the Foreign Service and to employees of those agencies to
which the provisions of the Foreign Service Act have been specifically
extended.
The Department considers that more uniform emoluments for
Government employees stationed in foreign areas whose terms and
conditions of employment are similar will contribute to improved
personnel administration. Although the Department recognizes the
benefits that can accrue from a governmentwide approach, it would
like to point out that the Foreign Service Act of 1946, as amended,
constitutes, with relatively few exceptions, an integrated statute to
govern the organization and administration of the Foreign Service.
This Act, as you are aware, originated with the House Committee on
Foreign Affairs, which has, together with the Senate Committee on
Foreign Relations, consistently maintained a deep interest in all mat-
ters affecting the Foreign Service. As a consequence of this, the
Department is forwarding a copy of its comments to you on these
two bills to the chairman of the House Committee on Foreign Affairs
and the chairman of the Senate Committee on Foreign Relations.
Subject to the additional comments contained herein, the Depart-
ment of State favors this proposed legislation. It is suggested, how-
ever, that section 311(a) of the bills be revised to delete the period
at the end of the proposed amendment to paragraph (5) of section
911 of the Foreign Service Act of 1946 and to insert in lieu thereof a
semicolon and the following limiting clause which appears at the end
of the proposed paragraph (4): "; but in no instance shall the weight
or volume of the effects stored together with the weight or volume of
the effects transported exceed the maximum limitations fixed by
regulations, when not otherwise fixed by law."
The Department has been informed by the Bureau of the Budget
that there is no objection to the submission of this report.
Sincerely yours,
WILLIAM B. MACOMBER, Jr.,
Assistant Secretary
(For the Secretary of State).
Approved For Release 2003/10/16 : CIA-RDP91-00965R000400090002-6
 Apprjed Ford{@pj gA,AZ9I4fgDj~at-4qf2000090002-6
THE SECRETARY OF TE;R TREASURY,
Washings on, June 30, 1959.
Hon. TOM MURRAY,
'Chairman, Committee on Post Office and Civil Service,
House of Representatives, Washington, D. 6.
MY DEAR MR. CHAIRMAN: A bill in which the Treasury Depart-
ment has an interest has come to our attention. Section 523 of H.R.
7758, a bill introduced by Mr. Morrison and entitled "Overseas
Differentials and Allowances Act," would amen I section 912 of the
Internal Revenue Code of 1954 to expand the existing exemptions
allowed with respect to certain allowances received by Government
employees. It is believed that your committee will be interested in
the views of the Treasury Department on these provisions.
The purpose of the bill is to achieve uniform treatment between
Foreign Service personnel and other Government employees overseas
with respect to the certain types of tax-exempt allowances now granted
Foreign Service personnel. under title IX of the Foreign Service Act of
1946. These include allowances for temporary lodging, representation
-expenses, official residence, storage, and expenses of travel and trans-
portation in connection with home leave. The bill also provides for
tax exemption on new types of allowances not now provided.
The objective of the bill (to achieve uniformity as between
employees of different Government agencies) is a desirable one and
has the full support of this Department. But insofar as the bill
would achieve that objective through tax exemption, it is believed
undesirable.
The practice of splintering off or earmarking p?xts of compensation
and investing them with a special character is c ne which should be
resisted. The compensation paid in areas with high price levels may
well be higher than those where price levels are kew. This is a factor
which applies within the-United States as well as abroad. Except
for the special case of Alaska, which recently became a State, we make
no tax distinction within the United States amen salaries or parts of
them which reflect local variations in living cots or other factors.
There seems to be no valid reason for making such a distinction with
respect to overseas employment.
The enlarged scope of tax exemption contemplated by the bill is
highly undesirable from the point of view of mair.taining a sound and
equitable tax system. By enlarging the application of tax exemption,
the bill would aggravate inequities which. now exist, would increase
resentment on the part of employees and employer, in private industry,
and intensify pressures for expansion of tax-exempt allowances. The
tax-exempt status of cost-of-living allowances given to Government
employees stationed outside continental United States has created
continued pressure for expanding its application to private employees.
Although the Department has resisted such demands, it will be even
more difficult to do so if such allowances are bros dened.
In view of the basic changes made by the proposed bill in the struc-
ture of the statutes which provide for overseas allowances, we recog-
nize that it will be necessary to amend section 912. However, we
believe that these amendments should be so limited that they do no
more than continue the exemptions now provided for by section 912 for
overseas allowances.
Approved For Release 2003/10/16 : CIA-RDP91-00965R000400090002-6
 Approved F4&J#1Veb?W1?iQkCDRPE%IxMg040009002-6
The Bureau of the Budget has advised the Treasury Department
that there is no objection to the presentation of this report.
Sincerely yours,
FRED C. SCRIBNER, Jr.,
Acting Secretary of the Treasury.
COMPTROLLER GENERAL OF THE UNITED STATES,
Washington, March 31, 1959.
B-115138.
Hon. TOM MURRAY,
Chairman, Committee on Post Office and Civil Service,
House of Representatives.
DEAR MR. CHAIRMAN: By separate letters both dated March 4,
1959, and acknowledged on March 5, you requested our report upon
H.R. 5007 and H.R. 5099, respectively, which bills appear identical.
The bills would provide a uniform basis for the granting of special
benefits to all personnel stationed outside the continental United
States. In general, we favor the objectives of the bills although we
have reservations concerning the necessity for, or the propriety of,
certain of the provisions of the bills in their present form. Our
comments upon those provisions are as follow:
Section 211(1)(A): The temporary lodging allowance authorized
under this provision for a period not to exceed 3 months conceivably
could cover premium accommodations in an expensive hotel for the
employee and his family. There is no monetary limitation upon the
amount allowable under the provision. In contrast the present pro-
visions of section 901 of the Foreign Service Act of 1946 (22 U.S.C.
1131), limit the amount payable for lodging at temporary quarters to
the amount of per diem that would have been allowable to the em-
ployee and members of his family for such period if they had been in
a travel status. In the absence of some appropriate limitation, this
provision of the bill could become subject to abuse.
Section 211(1) (B) : We understand that in the State Department
the general practice is to notify the employee months in advance of his
transfer and that arrangements for crating and shipping his effects
normally are made by State Department personnel after departure
from the area of the employee who is being transferred. Obviously,
under such practice there would be no need for payment of a tempo-
rary lodging allowance a month prior to the employee's departure.
You may want to make it clear either in the bill itself or in your
committee report that the temporary lodging allowance provided for
in subparagraph (B) should not be granted as a routine practice but
only when the circumstances are such as to indicate a bona fide need
for the granting of such an allowance, and that the allowance should be
granted for no longer period than circumstances require.
Section 211(3): The utmost care would have to be exercised in the
administration of this provision to prevent abuse. If enacted it would
afford opportunity for the granting of special treatment in individual
cases. Moreover, it would authorize expenditures wherever U.S. em-
ployees are stationed in foreign areas for the purpose of making per-
manent improvements on property owned by foreign citizens with no
direct compensating benefit to the United States. We urge that the
Approved For Release 2003/10/16 : CIA-RDP91-00965R000400090002-6
 Ap ved For d l eese tf1s CSI SRtDR?1tr-68F 0400090002-6
most careful consideration be given to the possible implications of this
provision prior to its enactment.
We note that it is not necessary for an employee -to be permanently
stationed in a foreign area to be granted the allowances provided for
in title II. Conceivably those allowances could be granted an em-
ployee who is in a foreign area on temporary duty and who is receiv-
ing a per diem allowance while absent from his official station in the
United States. In such a case, we think the employee should be pre-
cluded from receiving both the per diem allowar_ce and a quarters
allowance and a cost-of-living allowance under this title since in effect
he would be compensated twice for the same expenses.
Section 311: For purposes of the storage provisions of the bill (title
III pt. B), subsection (d) defines the term "furnii ure and household
and personal effects" and the term "household goods and personal
effects" to include "motor vehicles authorized to be shipped at Gov-
ernment expense." However it is not clear whethe. it is intended that
the weight of an automobile be included in applying the weight limita-
tion on property that may be stored. Also, we doubt the necessity
for a provision which would authorize storage of a a automobile upon
arrival at a new post. Whereas storage of ordinaj household goods
and effects might be necessary while the employee-is locating perma-
nent resident quarters, the same ordinarily would not be true in the
case of an automobile which the employee doubtlE6s would use from
the date of his arrival at the post. Finally, we i1ecommend that it
be made clear in the bill or in your report that reimbursement of ordi-
nary garage rent paid by an employee who rents,garage space in a
foreign area would not be reimbursable under the guise of storage.
Sections 332 and 333: Under these sections, there is no limit upon
the number of replacement vehicles that can be shipped at Govern-
ment expense whereas section 331 imposes a reasonable limitation-
one replacement vehicle in 4 years unless replacement is required
prior to that time by reason of conditions beyond the control of the
employee. Since it is not unusual for Governmen ~ employees to sell
their automobiles in foreign countries, we think that a reasonable
limitation should be placed upon the number of replacement auto-
mobiles which the Government will transport wit::iout charge under
these sections (sees. 332 and 333) also.
Section 401: Employees now stationed outside the United States-
other than officers and employees in the Foreign Service-are allowed
to accumulate 45 days' annual leave or 15 days more than employees
stationed within the United States. Officers and employees of the
Foreign Service, on the other hand, while entitled to accumulate only
.30 days annual leave are granted, in addition, a special leave which
accrues at the rate of 1 week for each 4 monthii of service. The
special leave is cumulative from year to year but may not be used as a
basis for any lump-sum leave payment. Section s::01 would increase
the amount of leave Foreign Service officers and employees may
accumulate from 30 days to 45 days. At the same time it would
grant employees stationed in foreign areas, other than employees of
the Foreign Service, special leave benefits comparable with those
allowable to officers and employees of the Foreign service. It occurs
to us that you may wish to provide one or the other of the benefits-
the 45-day accumulation ceiling or the special leave provision ap-
plicable to Foreign Service-rather than both benefits as. presently is
Approved For Release 2003/10/16 : CIA-RDP91-00965R000400090002-6
 Approved F%Fj*Lseb~AR/J&Cj, ILPL% ?R5RAp4000W02-6
provided by this section. If all employees stationed in foreign areas
are granted special leave similar to that applicable to Foreign Service
,officers and employees it would appear reasonable to reduce their
leave accumulation ceiling to 30 days.
Sincerely yours,
FRANK H. WEITZEL,
Acting Comptroller General of the United States.
THE LIBRARIAN OF CONGRESS,
Washington, D.C., March 19, 1959.
Ion. JAMES H. MORRISON,
Committee on Post Office and Civil Service,
Chairman, Subcommittee on H.R. 5007,
House of Representatives, Washington, D.C.
DEAR MR. MORRISON: I am very grateful to the Committee on
Post Office and Civil Service for giving me an opportunity to com-
ment on H.R. 5007.
I am very much interested in having the provisions of this bill
apply to the Library of Congress because it is not presently authorized
to pay from its regular congressional appropriations post differentials,
and cost-of-living and similar allowances to Library personnel who
may be stationed in foreign countries.
Authority to make such payments would meet an occasional need
in connection with our normal foreign acquisitions program and would
seem to be mandatory if the Library is to implement successfully the
foreign programs which the Librarian of Congress is authorized to
establish pursuant to section 104(n) of the Agricultural Trade De-
velopment and Assistance Act of 1954 (Public Law 480) as extended
and amended by Public Law 85-931.
I wish to thank you very much for your continued interest in the
Library and should you need further information on the application
,of H.R. 5007, I shall be glad to provide it.
Sincerely yours,
L. QUINCY MUMFORD,
Librarian of Congress.
U.S. CIVIL SERVICE COMMISSION,
Washington, D.C., June 11, 1959.
Hon. TOM MURRAY,
Chairman, Committee on Post Office and Civil Service,
Li.S. House of Representatives, Washington, D.C.
DEAR MR. MURRAY: This is in further reply to your letters of Feb
ruary 27 and March 4, 1959, requesting the views of the Civil Service
Commission on H.R. 5007 and H.R. 5099, identical bills to improve
the administration of overseas activities of the Government of the
United States, and for other purposes.
These bills are identical in purpose and substantially alike in detail
to three bills introduced in the 85th Congress, H.R. 3527, H.R. 4943
and H.R. 6853, identical bills upon which the Commission reported
favorably to your committee on March 3, 1958.
The Commission favors the enactment of either H.R. 5007 or H.R.
.5099. For a number of years the Commission has been interested in
Approved For Release 2003/10/16 : CIA-RDP91-00965R000400090002-6
 Appftved FovRd? >A I CtAERNR dMB;?Rfl0400090002-6
improving and equalizing the administration of b 3nefits for overseas
employees. We believe enactment of the proposed legislation will
accomplish these purposes.
The Bureau of the Budget has advised us that taere is no objection
to the submission of this report to your committee.
By direction of the Commission :
Sincerely yours,
(Signed) ROGER W. JaNES, Chairman.
CHANGES IN EXISTING LAW
In compliance with clause 3 of rule XIII of the Rules of the House
of Representatives, changes in existing law made by the bill (H.R.
7758), as introduced, are shown as follows (existing law proposed to be
omitted is enclosed in black brackets, new matter s printed in italics,
existing law in which no change is proposed is shown in roman) :
ADMINISTRATIVE EXPENSES ACT OF 1946
AN ACT To authorize certain administrative expenses in the Government service,
and for other purposes
Be it enacted by the Senate and House of Re oresentatives of the
Tinted States of America in Congress assembles; That (a) under
such regulations as the President may prescribe, ar..y civilian officer or
employee of the Government who, in the interest of the Govern-
ment, is transferred from one official station to another, including
transfer from one department to another, for perr.ianent duty, shall,
except as otherwise provided herein, when authorized or approved
by such subordinate official or officials of the department concerned
as the head thereof may designate for the purpa;e, be allowed and
paid from Government funds the expenses of trave): of himself and the
expenses of transportation of his immediate family (or a commutation
thereof in accordance with the Act of February 14, 1931) and the
expenses of transportation, packing, crating, temporary storage,
drayage, and unpacking of his household goods aad personal effects
(not to exceed seven thousand pounds [if uncratec: or eight thousand
seven hundred and fifty pounds if crated or the equivalent thereof
when transportation charges are based on cubic measurement]
net weight) : Provided, That advances of funds mi y be made to the
officer or employee in accordance with said regulati,ns under the same
safeguards as are required under the Subsistence Expense Act of 1926
(5 U.S.C. 828) : Provided further, That the allowances herein authorized
shall not be applicable to officers and employees transferred in
accordance with the provisions of the Foreign Service Act of 1946:
Provided further, That no part of such expenses including those of
officers and employees of the Foreign Service, Department of State)
shall be allowed or paid from Government funds wiere the transfer is
made primarily for the convenience or benefit of the: officer or employee
or at his request: Provided further, That in case oi' transfer from one
department to another such expenses shall be payable from the funds
of the department to which the officer or employee is transferred:
And provided further, That expenses of travel anc. transportation in
connection with the transfer of officers and employees to posts of
Approved For Release 2003/10/16 : CIA-RDP91-00965R000400090002-6
 Approved FOOrvR sEi en3p0EREM/ 6Ai s !&fRtPo1$AYW2Rg400091R02-6
duty outside the continental limits of the United States and return
therefrom shall be allowed to the same extent and subject to the same
limitations prescribed for new appointees under section 7 of this Act.
(b) In lieu of the payment of actual expenses of transportation,
packing, crating, temporary storage, drayage, and unpacking of house-
hold goods and personal effects, in the case of such transfers between
points in continental United States, reimbursement shall be made to
the officer or employee on a commuted basis (not to exceed the amount
which would be allowable for the authorized weight allowance) at such
rates per one hundred pounds as may be fixed by zones in regulations
ribd by the President. Under such regulations as the President
presc e
mad prescribe, any civilian officer or employee who transports a house
trailer or mobile dwelling within the continental United States, within
Alaska, or between the continental United States and Alaska, for use
as a re=idence and who would otherwise be entitled to transportation
of household goods and, personal effects under subsection (a) shall be
entitled to a reasonable allowance, not to exceed 20 cents per mile, in
lieu of such transportation.
(c) Funds available for travel expenses of civilian officers and em-
ployees shall also be available for the expenses of the transportation of
their immediate families, and funds available for the transportation
of things shall also be available for the transportation of household
goods and effects, as authorized by this Act.
(d) When civilian officers and employees of the United States are
on duty at places designated by the heads of their respective depart-
ments or agencies as within zones from which their immediate families
should be evacuated for military or other reasons which create immi-
nent danger to life or property, or adverse living conditions seriously
affecting the health, safety, or accommodations of said families, or
upon transfer or assignment to duty of such civilian officers and em-
ployees to places where their immediate families are not, for the afore-
said reasons, permitted to accompany them, their immediate families
and household goods may be transported at Government expense,
under such regulations as the heads of their respective departments
and agencies may prescribe, to such location as may be designated by
the civilian officer or employee concerned or by the immediate families
of such officers and employees when circumstances prevent the officers
and employees from designating such locations or when it is adminis-
tratively impracticable to determine the intent of the officers or em-
ployees in this respect: Provided, That if such location designated by
either the officers or employees or their immediate families is within
an area to which such movement is prohibited for the aforesaid reasons,
an alternate location may be designated by either the officers or em-
ployees concerned or their immediate families: And provided further,
That such immediate families and household goods may later be trans-
ported at Government expense from the designated location or alter-
nate location authorized in this subsection to a duty station to which
the officers or employees concerned are assigned, and to which the
above restrictions do not apply.
(e) Whenever any civilian officer or employee (including any new
appointee in accordance with section 7 of this Act) is assigned to a
permanent duty station outside the continental United States to which
he cannot take or at which he is unable to use his household goods and
personal effects or whenever the head of the department concerned au-
Approved For Release 2003/10/16 : CIA-RDP91-00965R000400090002-6
11
 Apprgved W400090002-6
thorizes storage of any such property in the public interest or for reasons
of economy, storage expenses (including related transportation and other
expenses). may be allowed such officer or employee in accordance with
regulations prescribed by the President; but in no instance shall the weight
of the property stored under this subsection, together with the weight of
property transported under subsection (a), exceed t ,e maximum weight
limitation provided by subsection (a).
(f) Under such regulations as the President may prescribe, the pri-
vately owned motor vehicle of any employee (including any new appointee,
in accordance with section 7 of this Act) assigned to c, post of duty outside
the continental United States on other than temporary duty orders may
be transported to, from, and between the continental United States and
such post of duty, or between posts of duty outside the continental United
States, whenever it is determined by the head of the department concerned
to be in the interest of the Government for such employee to have the use
of a motor vehicle at his post of duty. Not more than one motor vehicle
of any employee may be transported under authori'y of this subsection
during any four-year period, except that, as a replacement for such motor
vehicle, one additional motor vehicle of any employee r,iay be so transported
during such period upon approval, in advance, by the head of the depart-
ment concerned and upon a determination, in advance, by such department
head that such replacement is necessary for reasons ueyond the control of
the employee and is in the interest of the Governmen`. After the expira-
tion of a period of four years following the date of transportation under
authority of this subsection of a privately owned motor vehicle of any em-
ployee who has remained in continuous service ouiside the continental
United States during such period, the transportation of a replacement
for such motor vehicle for such employee may be authorized, in accordance
with this subsection, by the head of the department concerned. The head
of each department may, in accordance with this subjection, authorize the
transportation of privately owned motor vehicles of employees of such
department, assigned to duty outside the continents l United States, by
commercial means if available at reasonable rates aid under reasonable
conditions or by Government means on a space-available basis. This
subsection shall not apply to the Foreign Service (f the United States
under the Department of State and to the Central Intelligence Agency but
shall not affect the authority contained in section 913 a f the Foreign Service
Act of 1946 (60 Stat. 1027; 22 U.S.C. 1188) or paragraph (4) of section 4
of the Central Intelligence Agency Act of 1949 (63 Stc;t. 210, 72 Stat. 337;
50 U.S.C. 403e (a) (4)).
SEC. 2. * *
(Executed and obsolete.)
SEC. 3. * *
(Repealed and obsolete.)
SEC. 4. * * *.
(Executed.)
SEC. 5. Persons in the Government service empl)yed intermittently
as consultants or experts and receiving compensation on a per diem
when actually employed basis may be allowed travel expenses while
away from their homes or regular places of business, including per
diem in lieu of subsistence while at place of su,h employment, in
accordance with the Standardized Government Travel Regulations,
Subsistence Expense Act of 1926, as amended (5 U.S.C. 821-833),
and the Act of February 14, 1931, as amended by this Act, and per-
Approved For Release 2003/10/16 : CIA-RDP91-00965R000400090002-6
 Approved ForO@g ,e g 1Ag1AA:LgI,%5jDjatiq V0 0009Q 02-6
sons serving without compensation or at $1 per annum may be allowed,
while away from their homes or regular places of business, transporta-
tion in accordance with said regulations and said Act of February 14,
1931, as so amended, and not to exceed $15 per diem within the limits.
of the continental United States and beyond such limits, not to exceed
the rates of per diem established by the Director of the Bureau of the
Budget pursuant to section 3 of the Travel Expense Act of 1949, as
amended (5 U.S.C. 836) in lieu of subsistence en route and at place
of such service or employment unless a higher rate is specifically
provided in an appropriation or other Act: And provided further,
That where due to the unusual circumstances of a travel assignment
within the limits of the continental United States such maximum
per diem allowance would be much less than the amount required to
meet the actual and necessary expenses of the trip, the heads of
departments and establishments may, in accordance with regulation>3
promulgated by the Director, Bureau of the Budget, pursuant to
section 7 of the Travel Expense Act of 1949 as amended (5 U.S.C.
840) prescribe conditions under which reimbursement for such ex-
penses may be authorized on an actual expense basis not to exceed
a maximum amount to be specified in the travel authorization, but
in any event not to exceed $25 for each day in travel status.
SEC. 6. Section 10 of the Act of March 3, 1933 (5 U.S.C. 73b), is
hereby amended to read as follows:
"SEC. 10. Whenever by or under authority of law actual expenses
for transportation may be allowed, such allowances shall not exceed
the lowest first-class rate by the transportation facility used in such
transportation unless it is certified, in accordance with regulations
prescribed by the President, that lowest first-class accommodations are
not available or that use of a compartment or such other accommoda-
tions as may be authorized or approved by the head of the agency
concerned or such subordinates as he may designate, is required for
purposes of security."
SEC. 7. (a) Appropriations for the departments shall be available, in
accordance with regulations prescribed by the President, for expenses
of travel of new appointees, expenses of transportation of their imme-
diate families and expenses of transportation of their household goods
and personal effects from places of actual residence at time of appoint-
ment to places of employment outside continental United States, and
for such expenses on return to employees from their posts of duty
outside continental United States to the places of their actual residence
at time of assignment to duty outside the United States: Provided,
That such expenses of travel and transportation to posts of duty
outside the continental United States shall not be allowed unless and
until the person selected for appointment shall agree in writing to
remain in the Government service for twelve months following his
appointment, unless separated for reasons beyond his control and
acceptable to the department or agency concerned and in case of
violation of such agreement any moneys expended by the United
States on account of such travel and transportation shall be recoverable
from the individual concerned as a debt due the United States: And
provided further, That expenses of return travel and transportation
upon separation from the service shall be allowed whether such
separation is for the purposes of the Government or for personal
convenience, but shall not be allowed unless such persons selected
Approved For Release 2003/10/16 : CIA-RDP91-00965R000400090002-6
 ApRooved FBfItR%r9Q'#M,s PW$
@90400090002-6
for appointment outside the continental United States shall have
served for a minimum period of not less than one n(ir more than three
years prescribed in advance by the head of the department or agency
concerned or unless separation is for reasons bey)nd the control of
the individual and acceptable to the department or agency concerned:
Provided further, That expenses of round trip travi3l of employee and
transportation of immediate family but excluding household effects,
from their posts of duty outside the continental United States to the
places of actual. residence at time of appointment or transfer to such
overseas posts of duty, shall be allowed in the case of persons who have
satisfactorily completed an agreed period of service overseas'and are
returning to their actual place of residence for the-purpose of taking
leave prior to serving another tour of duty at the same or some other
overseas post, under a new written agreement entered into before
departing from the overseas post: Provided furtk.er, Any officer or
employee of the United States appointed by the President, by and
with the advice and consent of the Senate, to serve for a term fixed by
law, whose post of duty is outside the continental United States, shall
be allowed expenses of round trip travel for himself and transportation
of his immediate family, but excluding household effects, from his post
of duty outside the continental United States to th,, place of his actual
residence at the time of his appointment to suc'i overseas post of
duty, at the end of each two years of satisfactory service completed
overseas, if he is returning to his actual place of residence for the pur-
pose of taking leave prior to serving at least two mo~,e years of overseas
duty: Provided further, That expenses of transportation of the im-
mediate family and shipment of household effects of any employee
from the post of duty of such employee outside ontinental United
States to place of actual residence shall be allowed, not in excess of
one time, prior to the return of such employee to the United States,
including its Territories and possessions, when the employee has
acquired eligibility for such transportationor when the public interest
rea-wires the return of the immediate family for c)mpelling personal
reasons of a humanitarian or compassionate nature, such as may
involve physical or mental health, death of any member of the im-
mediate family, or obligation imposed by authority or circumstances
over which the individual has no control: And previded further, That
when an employee returns his immediate family and household
goods to the United States, including its Territories and possessions,
at his own expense prior to his return and for other than reasons
of public interest, the Government shall reimbwse him for proper
transportation expenses at such time as he acquires eligibility therefor.
(b) Appropriations for the departments shall be available in
accordance with regulations prescribed by the President, for expenses
of travel of persons appointed to positions. in the natural and mathe-
matical sciences, engineering, and architectural fields, and to related
technical positions in the continental United Stares and Alaska for
which there is determined by the Civil Service Commission to be
a manpower shortage in those skills which are critical to the national
security effort, and for expenses of transportation of their immediate
families and their household goods and personal effects and for ad-
vances of funds to the extent authorized by section 1(a) and (b) of
this Act, from their places of actual residence a time of selection
to their first duty station. Such travel expenses m?y include per diem
Approved For Release 2003/10/16 : CIA-RDP91-009658000400090002-6
 Approved Fo vRosen89f c9 MAtsCk4,mRQJ ?940009"02-6
and mileage allowance for persons selected for appointment as pro-
vided for civilian officers and employees by the Travel Expense Act
of 1949, as amended. Travel and transportation expenses may be
allowed whether the person selected for appointment has been ap-
pointed or not at the time of such travel. However, the travel and
transportation expenses authorized by this subsection shall not be
allowed unless the person selected for appointment shall agree in
writing to remain in the Government service for twelve months fol-
lowing his appointment unless separated for reasons beyond his con-
trol and acceptable to the department or agency concerned. In
case of violation of such agreement, any moneys expended by the
United States on account of such travel and transportation shall be
recoverable from the individual concerned as a debt due the United
States.
(c) The authority of the Civil Service Commission to determine
for purposes of this Act positions for which there is a manpower
shortage shall not be delegated. The provisions of subsections (b)
and (c) of section 7 of this Act shall expire two years from the date
of their enactment into law.
(d) Nothing contained in this section shall impair or otherwise
affect the authority of any department under existing law to pay travel
and transportation expenses of persons designated in subsection (b)
and (c) hereof.
SEC. 8. * * *
(Obsolete.)
SEC. 9. (a) Section 3709 of the Revised Statutes of the United
States is hereby amended to read as follows:
"Unless otherwise provided in the appropriation concerned or other
law, purchases and contracts for supplies or services for the Govern-
ment may be made or entered into only after advertising a sufficient
time previously for proposals, except (1) when the amount involved in
any one case does not exceed $2,500, (2) when the public exigencies
require the immediate delivery of the articles or performance of the
service, (3) when only one source of supply is available and the Gov-
ernment purchasing or contracting officer shall so certify, or (4) when
the services are required to be performed by the contractor in person
and are (A) of a technical and professional nature or (B) under
Government supervision and paid for on a time basis. Except (1) as
authorized by section 29 of the Surplus Property Act of 1944 (50
U.S.C. App. 1638), (2) when otherwise authorized by law, or (3)
when the reasonable value involved in any one case does not exceed
$500, sales and contracts of sale by the Government shall be governed
by the requirements of this section for advertising."
(b) Exemptions from section 3709, Revised Statutes, in other law
in amounts of $100 or less are hereby repealed.
(c) In the case of wholly owned Government corporations, this
section shall apply to their administrative transactions only.
SEC. 10. Whenever a department is authorized by law to hold hear-
ings and to subpena witnesses for appearance at said hearings, wit-
nesses summoned to and attending such hearings shall be entitled to
the same fees and mileage, or expenses in the case of Government
officers and employees, as provided by law for witnesses attending
in the United States courts.
Approved Fo('Release 2003/10/16 : CIA-RDP91-00965R000400090002-6
 App ved Faay ensenffi l>;ii rsC iR 6 SRO0400090002-6
SEC. 11. The first sentence of section 3648 of the Revised Statutes
{31 U.S.C. 529) is hereby amended to read as follows:
"No advance of public money shall be made in any case unless
authorized by the appropriation concerned or other law."
SEC. 12. The head of any department may delegate to subordinate
officials (1) the power vested in him by law to lake final action on
matters pertaining to the employment, direction, and general admin-
istration of personnel under his department; (2) the authority vested
in him by section 3683 of the Revised Statutes (31 U.S.C. 675) to
direct the purchase of articles from contingent funds; and (3) the
authority vested in him by section 3828, Revised Statutes (44 U.S.C.
324), to authorize the publication of advertisements, notices or pro-
posals.
SEc. 13. Appropriations available for the procurement of supplies
and material or equipment shall be available fo c the purchase and
maintenance of special clothing and equipment for the protection of
personnel in the performance of their assigned tasks.
SEC. 14. * * *
(Repealed.)
SEC. 15. The head of any department,' wher authorized in an
appropriation or other Act, may procure the temporary (not in excess
of one year) or intermittent services of experts or consultants or
organizations thereof, including stenographic reporting services, by
contract, and in such cases such service shall be without regard to the
civil-service and classification laws (but as to -agencies subject to the
Classification Act at rates not in excess of the per diem equivalent of
the highest rate payable under the Classification Act, unless other
rates are specifically provided in the appropriation or other law)
and, except in the case of-stenographic reporting-services by organiza-
tions, without regard to section 3709, Revised Statutes, as amended
by this Act.
SEC. 16. (a) Section 5 of the Act of Jul- 16, 1914 (5 U.S.C. 78), is
amended to read as follows:
"SEC. 5. (a) Unless specifically authorized by the appropriation
concerned or other law, no appropriation shall be expended to pur-
chase or hire passenger motor vehicles for any liranch of the Gov-
ernment other than those for the useof the President of the United
States, the secretaries to the President, or the heads of the executive
departments enumerated in 5 U.S.C. 1.
"(b) Excepting appropriations for the Military and Naval Estab-
lishments, no appropriation shall be available for the purchase, main-
tenance, or operation of any aircraft unless specific authority for the
purchase, maintenance, or operation thereof has been or is provided
in such appropriation.
"(c) Unless otherwise specifically provided, no appropriation avail-
able for any department shall be expended-
"(1) to purchase any passenger motor vehicle (exclusive of
busses, ambulances, and station wagons), al, a cost, completely
equipped for operation, and including the Na1ue of any vehicle
exchanged, in excess of the maximum price therefor, if any,
established pursuant to law by a Government agency and in no
event more than such amount as may be specified in an appro-
priation or other Act, which shall be in addition to the amount
required for transportation;
Approved For Release 2003/10/16 : CIA-RDP91-00965R000400090002-6
 Approved FggeQ,,J]~~[EP*QpftWW40009M02-6
"(2) for the maintenance, operation, and repair of any Gov-
,ernment-owned passenger motor vehicle or aircraft not used
exclusively for official purposes; and `official purposes' shall not
include the transportation of officers and employees between
their domiciles and places of employment, except in cases of
medical officers on out-patient medical service and except in
cases of officers and employees engaged in field work the char-
acter of whose duties makes such transportation necessary and
then only as to such latter cases when the same is approved by
the head of the department concerned. Any officer or employee
of the Government who willfully uses or authorizes the use of
any Government-owned passenger motor vehicle or aircraft,
or of any passenger motor vehicle or aircraft leased by the
Government, for other than official purposes or otherwise vio-
lates the provisions of this paragraph shall be suspended from
duty by the head of the department concerned, without com-
pensation, for not less than one month, and shall be suspended
for a longer period or summarily removed from office if circum-
stances warrant. The limitations of this paragraph shall not
apply to any motor vehicles or aircraft for official use of the
President, the heads of the executive departments enumerated
in 5 U.S.C. 1, ambassadors, ministers, charges d'affaires, and
other principal diplomatic and consular officials.
"(d) In the budgets for the fiscal year 1948 and subsequent fiscal
years there shall be submitted in detail estimates for such necessary
appropriations as are intended to be used for purchase or hire of
passenger motor vehicles or for purchase, maintenance, or operation
,of aircraft, specifying the sums required, the public purposes for
which said conveyances are intended, the number of currently owned
conveyances to be continued in use, and the officials or employees by
whom all of such conveyances are to be used.
"(e) The acquisition of aircraft or passenger motor vehicles by
any agency by transfer from another department of the Government
shall be considered as a purchase within the meaning hereof.".
(b) *
(Executed.)
SEC. 17. (a) * * *
(Executed.)
(b) That portion of the Act of July 31, 1876, (44 U.S.C. 321; 19
Stat. 105), reading as follows: "and in no case of advertisement for
contracts for the public service shall the same be published in any
newspaper published and printed in the District of Columbia unless
the supplies or labor covered by such advertisement are to be fur-
nished or performed in said District of Columbia" is hereby amended
by adding at the end thereof "or in the adjoining counties of Maryland
or Virginia".
(c) That portion of the Act of June 23, 1906 (3 U.S.C. 43) reading
as follows: "not exceeding $25,000 per annum" is hereby amended to
read, "not exceeding $40,000 per annum".
SEC. 18. The word "department" as used in this Act shall be con-
strued to include independent establishments, other agencies, wholly
owned Government corporations (the transactions of which corpora-
tions shall be subject to the authorizations and limitations of this
Act, except that section 9 shall apply to their administrative trans-
Approved For Release 2003/10/16 : CIA-RDP91-00965R000400090002-6
 Appftved FwRWeaseD20 M9/ISI,SCIA.IR bMRW0400090002-6
actions only), and the government of the District of Columbia, but
shall not include the Senate House of Representatives, or office of
the Architect of the Capitol, or the officers or employees thereof.
The words "continental United States" as used herein shall, be con-
strued to mean the forty-eight States and the District of Columbia.
The word "Government" shall be construed to include the government
of the District of Columbia. The word "appropriation" shall be
construed as including funds made available by legislation under
section 104 of the Government Corporation Control Act, approved
December 6, 1945.
-SEC. 19. Sections 1, 3, 4, 5, 7, 14, and-15 of thisAct shall not apply
to persons whose pay and allowances are estak lished by the Pay
Readjustment Act of 1942.
SEC. 20. Sections 1 and 2 of this Act shall beccne effective on the
first day of the third calendar month following th' enactment hereof.
SEC. 21. This Act may be cited as the "Administrative Expenses
Act of 1946".
SEC. 22. Under such regulations as the President may prescribe,
funds available to the departments for administrative expenses may be
allotted to posts in foreign countries and to resident missions to inter-
national organizations for representation purposes in the promotion of
official policies and programs.
SEC. 28. Under such regulations as the President -may prescribe, funds
available to the departments for administrative expenses may be allotted
to posts in foreign countries for the purpose of defraying the unusual ex-
penses incident to the operation and maintenance of official residences
suitable for the chief representatives of the United States at such posts and
such other senior officials of this Government in foroign countries as the
President may designate.
FOREIGN SERVICE ACT OF 1946
TITLE IV-CATEGORIES AND SALARIES OF PERSONNEL
PART E-CLASSIFICATION
[ADMINISTRATIVE ESTABLISHMENT OF SALARY DIFFERENTIALS
F[SEC. 443. The President may, under such regulations as be may
prescribe, establish rates of salary differential, not exceeding -25 per
centum of basic salary, for Foreign Service officers, Reserve officers,
and staff officers and employees assigned to posts ::evolving extraordi-
narily difficult living conditions, excessive phlrsical hardship, or
notably unhealthful conditions. The Secretary, shall prepare and
maintain a list of such posts.]
Approved For Release 2003/10/16 : CIA-RDP91-00965R000400090002-6
 Approved For Release 2003/10/16 : CIA-RDP91-00965R0004000~,9002-6
OVERSEAS DIFFERENTIALS AND ALLOWANCES ACT
TITLE IX-ALLOWANCES AND BENEFITS
PART A-ALLOWANCES AND SPECIAL ALLOTMENTS
[QUARTERS, COST OF LIVING, AND REPRESENTATION ALLOWANCES
[SEC. 901. In accordance with such regulations as the President
may prescribe and notwithstanding the provisions of section 1765
of the Revised Statutes (5 U.S.C. 70) the Secretary is authorized
to grant to any officer or employee of the Service who is a citizen of
the United States-
[(1) allowances, wherever Government owned or rented quar-
ters are not available, for living quarters, heat, light, fuel, gas
and electricity, including allowances for the cost of lodging at
temporary quarters, incurred by an officer or employee of the
Service and the members of his family upon first arrival at a
new post, for a period not in excess of three months after such
first arrival or until the occupation of residence quarters, which-
ever period shall be shorter, up to but not in excess of the aggre-
gate amount of the per diem that would be allowable to such
officer or employee for himself and the members of his family
for such period if they were in travel status;
[(2) cost-of-living allowances, whenever the Secretary shall
determine-
[(i) that the cost of living at a post abroad is proportion-
ately so high that an allowance is necessary to enable an
officer or employee of the Service at such post to carry on his
work efficiently;
[(ii) that extraordinary and necessary expenses, not other-
wise compensated for, are incurred by an officer or employee
of the Service incident to the establishment of his residence
at any post of assignment abroad or at a post of assignment
in the continental United States between assignments to
posts abroad;
[(iii) that an allowance is necessary to assist an officer or
employee of the Service who is compelled by reason of dan-
gerous, notably unhealthful, or excessive adverse living condi-
tions at his post abroad or for the convenience of the
Government to meet the additional expense of maintaining
his wife and minor children elsewhere than in the country of
his assignment;
[(iv) that extraordinary and necessary expenses, not
otherwise compensated for, must be incurred by an officer or
employee of the Service, by reason of his service abroad, in
providing for adequate elementary and secondary education
for his dependents; allowances under this subparagraph for
any post shall not exceed the cost of obtaining such educa-
tional services as are ordinarily provided without charge by
the public schools of the United States plus, in those cases
where adequate schools are not available at the post, board
and room, and periodic transportation between the post and
the nearest locality where adequate schools are available; if
any such officer or employee employs a less expensive method
Approved For Release 2003/10/16 : CIA-RDP91-00965R000400090002-6
 Appr ed Forr I@@~~se 2003/10/16: CIA-RDP91-00965R000400090002-6
O ~tSE'AS DIFFERENTIALS AND ALLOWANCES--ACT
of providing such education, any allowance paid to him shall
be reduced accordingly; no allowance shd11 be paid under this.
subparagraph for a dependent for whom a travel allowance
'has been paid under section 911(9) ;
[(3) allowances in order to provide for th,- proper representa-
tion of the United States by officers or employees of the Service.
[ALLOTMENT FOR OFFICIAL RESIDENCE OF C EIIEF AMERICAN
REPRESENTATIVE
[SEC. 902. The Secretary may, under such regulations as he may
prescribe, make an allotment of funds to any posit to defray the un-
usual expenses incident to the operation and maintenance of official.
residences suitable for principal representatives of the United States
at that post.
[ACCOUNTING FOR ALLOWANCES
[SEC. 903. All such allowances and allotments shall be accounted
for to the Secretary in such manner and under su,th rules and regula-
tions as the President may prescribe. The Secretary shall report all
such expenditures annually to the Congress. with tiae budget estimates,
of the Department.]
PART B-TRAVEL -AND RELATED Ex PENSES
GENERAL PROVISIONS
SEC. 911. The Secretary may, under such regulations as he shall
prescribe, pay--
[(4) the cost of storing the furniture and household and per-
sonal effects of an officer or employee of the Service who is absent
under orders from his usual post of duty, or who is assigned to a
post to which, because of emergency conditions, he cannot take
or at which he is unable to use, his furniture %nd household and
personal effects;]
(I) the cost of packing and unpacking, trans;9orting to and from
a place of storage, and storing the furniture and household and per-
sonal effects of an officer or employee of the Ser-;ice, when he is ab-
sent from his post of assignment under orders, or when he is assigned
to a post to which he cannot take or at which he i,z unable to use such
furniture and household and personal effects, o r when it is in the
public interest or more economical to authorize storage; but in no,
instance shall the weight or volume of the effects stored together with
the weight or volume of the effects transported e.iceed the maximum
limitations fixed by regulations, when not otherwise fixed by law;
[(5) the cost of storing the furniture and lousehold and per-
sonal effects of an officer or employee of the Service on first arrival
at a post for a period not in excess of three months after such first
arrival at such post or until the establishment of residence quar-
ters, whichever shall be shorter;]
(5) the cost of packing and unpacking, transl orting to and from
a place of storage, and storing the furniture and household and per-
sonal effects of an officer or employee of the Service in connection
Approved For Release 2003/10/16 : CIA-RDP91-00965R000400090002-6
 Approved For Release 2003/10/16 : CIA-RDP91-00965R00040009 002-6
OVERSEAS DIFFERENTIALS AND ALLOWANCES ACT
with assignment or transfer to a new post, from the date of his de-
parture from his last post or from the date of his departure from his:
place of residence in the case of a new officer or employee and for
not to exceed three months after arrival at the new post, or until the
establishment of residence quarters, whichever shall be shorter; and,,
in connection with separation of an officer or employee of the Service,,
the cost of packing and unpacking, transporting to and from a place
of storage, and storing for a period not to exceed three months, his
furniture and household and personal effects; but in no instance
shall the weight or volume of the effects stored together with the weight
or volume of the effects transported exceed the maximum limitations
fixed by regulations, when not otherwise fixed by law.
[(9) the travel expenses incurred by an officer or employee of
the Service who is assigned to a foreign post, in transporting
dependents to and from United States ports of entry designated
by the Secretary, to obtain an American secondary or college,
education, not to exceed one trip each way for each dependent,
for the purpose of obtaining each type of education.]
* * * * * * *
TRANSPORTATION OF [AUTOMOBILES] MOTOR VEHICLES
SEC. 913. The Secretary may, notwithstanding the provisions of
any other law, transport for or on behalf of an officer or employee of
the Service, a privately owned [automobile] motor vehicle in any case
[where] in which he shall determine that water, rail, or air transporta-
tion of the [automobile] motor vehicle is necessary or expedient for
all or any part [or] of [all] the distsnce between points of origin and
destination. Not more than one motor vehicle of any such officer or
employee may be transported under authority of this section during any
four-year period, except that, as a replacement for such motor vehicle, one
additional motor vehicle of any such officer or employee may be so trans-
ported during such period upon approval, in advance, by the Secretary
and upon a determination, in advance, by the Secretary that such replace-
ment is necessary for reasons beyond the control of the officer or employee
and is in the interest of the Government. After the expiration of a period
of four years following the date of transportation under authority of this
section of a privately owned motor vehicle of any officer or employee who
has remained in continuous service outside the continental United States
(excluding Alaska and Hawaii) during such period, the transportation
of a replacement for such motor vehicle for such officer or employee may
be authorized by the Secretary in accordance with this section.
To provide for the administration of the Central Intelligence Agency, established
pursuant to section 102, National Security Act of 1947, and for other purposes
Be it enacted by the Senate and House of Representatives of the United
States of America in Congress assembled,
Approved For Release 2003/10/16 : CIA-RDP91-00965R000400090002-6
 Approved For Release 2003/10/16 : CIA-RDP91-00965R000400090002-6
6 OVERSEAS DIFFERENTIALS AND ALLOWI NCES ACT
DEFINITIONS
SECTION 1. That when used in this Act, the term-
(a) "Agency" means the Central Intelligence Iigency;
(b) "Director" means the Director Of Central-Intelligence;
(c) "Government agency" means any executive department, com-
mission, council, independent establishment, corporation wholly or
partly owned by the United States which is an instrumentality of the
United States, board, bureau, division, service, office, officer, authority,
administration, or other establishment, in the executive branch of the
[Government; and] Government.
[(d) "Continental United States" means the Stites and the District
of Columbia.]
TRAVEL, ALLOWANCES, AND RELATED EXPENSES
SEC. 4. [(a)] Under such regulations as the Director may prescribe,
the Agency, with respect to its officers and em :)loyees assigned to
[permanent-duty stations outside the continental United States, its
territories, and possessions] duty stations outside the several States of
the United States of America, excluding Alaska and Hawaii, but in-
cluding the District of Columbia, shall-
(1) (A) pay the travel expenses of officers aad employees of the
[Agency including] A ency, including expenses incurred while
traveling pursuant to -orders issued by the Director in accord-
ance with the provisions of section 5(a)(3) with regard to the
granting of] authorized home leave;
(B) pay the travel expenses of members of the family of an
officer or employee of the Agency when. proceeding to or returning
from his post of duty; accompanying; him an authorized home
leave; or otherwise traveling in accordance with authority granted
pursuant to the terms of this or any other Act;
(C) pay the cost of transporting the furniture and household
and personal effects of an officer or employee of the Agency to his
successive posts of duty and, on the termination of his services,
to his residence at time of appointment or t) a point not more
distant, or, upon retirement, to the place whore he will reside;
[(D) pay the cost of storing the furniture and household and
personal effects of an officer or employee of the Agency who is
absent under orders from his usual post of duty, or who is assigned
to a post to which, because of emergency conditions, he cannot
take or at which he is unable to use, his furniture and household
and personal effects;]
(D) pay the cost of packing and unpacking, transporting to and
from a place of storage, and storing the furn-ture and household
and personal efects of an officer or employee (f the Agency, when
he is absent from his post of assignment under orders, or when he is
assigned to a post to which he cannot take or a;: which he is unable
to use such furniture and household and personal effects, or when
it is in the public interest or more economical i o authorize storage;
but in no instance shall the weight or volume of the effects stored
together with the weight or volume of the effect? transported exceed
the maximum limitations fixed by regulations, when not otherwise
fixed by law;
Approved For Release 2003/10/16 : CIA-RDP91-00965R000400090002-6
 Approved FgfgeDIIW1&;BCPE!gvpAMWR1ff40009#P02-6
[(E) pay the cost of storing the furniture and household and
personal effects of an officer or employee of the Agency on first
arrival at a post for a period not in excess of three months after
such first arrival at such post or until the establishment of resi-
dence quarters, whichever shall be shorter;]
(E) pay the cost of packing and unpacking, transporting to and
from a place of storage, and storing the furniture and household and
personal effects of an officer or employee of the Agency in connection
with the assignment or transfer to a new post, ,from the date of his
departure from his last post or from the date of his departure from
his place of residence in the case of a new officer or employee and
for not to exceed three months after arrival at the new post, or until
the establishment of residence quarters, whichever shall be shorter;
and in connection with separation of an officer or employee of the
Agency, the cost of packing and unpacking, transporting to and
from a place of storage, and storing for a period not to exceed three
months, his furniture and household and personal effects; but in no
instance shall the weight or volume of the effects stored together with
the weight or volume of the effects transported exceed the maximum
limitations fixed by regulations, when not otherwise fixed by law.
[(3) (A) Order to the United States or its Territories and
possessions on leave provided for in 5 U.S.C. 30, 30a, 30b, or as
such sections may hereafter be amended, every officer and em-
ployee of the agency who was a resident of the United States or its
Territories and possessions at time of employment, upon com-
pletion of two years' continuous service abroad, or as soon as
possible thereafter: Provided, That such officer or employee has
accrued to his credit at the time of such order, annual leave suffi-
cient to carry him in a pay status while in the United States for
at least a thirty-day period.]
(3) (A) Order to any of the several States of the United States of
America (including the District of Columbia, the Commonwealth of
Puerto Rico, and any territory or possession of the United States) on
leave of absence each officer or employee of the Agency who was a
resident of the United States (as described above) at time of employ-
ment, upon completion of two years' continuous service abroad, or as
soon as possible thereafter.
[(B) While in the continental United States on leave, the serv-
ice of any officer or employee shall not be available for work or
duties except in the agency or for training or for reorientation for
work; and the time of such work or duty shall not be counted as
leave.]
(B) While in the United States (as described in paragraph (3) (A)
of this section) on leave, the service of any officer or employee shall
be available for work or duties in the Agency or elsewhere as the Di-
rector ma prescribe; and the time of such work or duty shall not
be countedas leave.
[(C) Where an officer or employee on leave returns to the
United States or its Territories and possessions, leave of absence
granted shall be exclusive of the time actually and necessarily
occupied in going to and from the United States or its Territories
and possessions, and such.time as may be necessarily occupied
in awaiting transportation.]
Approved For Release 2003/10/16 : CIA-RDP91-00965R000400090002-6
 App"ved FmxvRWeasen20MRttST CdA.IRBRSMO 68fI00400090002-6
(C) Where an officer or employee on leave returns to the United
States. (as described in paragraph (3) (A) of ti is section), leave 'if
absence granted shall be exclusive of the time actually and neces-
sarily occupied in going to and from the United States (as so de-
scribed) and such time as may be necessarily occupied in awaiting
transportation.
(4) Notwithstanding the provisions of any other law, transport
for or on behalf of an officer or employee of the A ency, a privately
owned [automobile] motor vehicle in any cas,, where] in which
it shall be determined that water, rail, or air transportation
of the [automobile] motor vehicle is necessary or expedient for all
or any part [or] of [all] the distance: between points of origin and
destination, and pay the costs of such transp )rtation. Not more
than one motor vehicle of any officer or employee of the Agency may
be transported under authority of this paragr% h during any four-
year period, except that, as a replacement for such motor vehicle,
one additional motor vehicle of any such officer or employee may be
so transported during such period upon approval, in advance, by
the Director and upon a determination, in advance, by the Director
that such replacement is necessary for reasom beyond the control
of the officer or employee and is in the interesi of the Government.
-After the expiration of a period of four years ~lollowing the date of
transportation under authority of this paragraph of a privately
owned motor vehicle of any officer or employee i'ho has remained in
continuous service outside the several States of the United States
of America, excluding Alaska and Hawaii, but including the District
of Columbia, during such period, the transportai ion of a replacement
for such motor vehicle for such officer or employee may be authorized
by the Director in accordance with this paragraph.
[(b) In accordance with such regulations as the President may pre-
scribe and notwithstanding the provisions of section 1765 of the
Revised Statutes (5 U.S.C. 70), the Director ip authorized to grant
to any officer or employee of the Agency allowance,, in accordance with
the provisions of section 901(1) and 901(2) of the Foreign Service
Act of 1946.]
SECTION 8 OF THE UNITED NATION'S PARTICIPATION ACT
OF 1945, AS AMENDED
SEC. 8. There is hereby authorized to be appropriated annually to
the Department of State, out of any money in the Treasury not other-
wise appropriated, such sums as may be necessary for the payment
by the United States of its share of the expenses of the United Nations
as apportioned by the General Assembly in acccrdance with article
17 of the Charter, and for all necessary salaries and expenses of the
representatives provided for in section 2: hereof, ,nd of their appro-
priate staffs, including personal services in the District of Columbia
and elsewhere, without regard to the civil-service I aws and the Classi-
fication Act of 1923, as amended;' travel expenses without regard to
the Standardized Government Travel Regulations, as amended, the
i Reference made to the Classification Act of 1123, as amended, is held and,?onsidered to mean the Classi-
fication Act of 1949 (see ? 1106(a) of the Classification Act of 1949, 63 Stat. 97:).
Approved For Release 2003/10/16 : CIA-RDP91-00965R000400090002-6
 Approved Fg,rER@;9sglP j%g CAWF 0+AXWF, (W04000,Q002-6
Travel Expense Act of 1949, and section 10 of the Act of March 3,
1933, as amended, and, under such rules and regulations as the
Secretary of State may prescribe, travel expenses of families and
transportation of effects of United States representatives and other
personnel in going to and returning from their post of duty; allowances
for living quarters, including heat, fuel, and light, as authorized by
the Act approved June 26, 1930 (5 U.S.C. 118a); cost-of-living
allowances for personnel stationed abroad under such rules and regu-
lations as the Secretary of State may prescribe; communications
services; stenographic reporting, translating, and other services, by
contract; hire of passenger motor vehicles and other local transpor-
tation; rent of offices; printing and binding without regard to section
11 of the Act of March 1, 1919 (44 U.S.C. 111); allowances and
expenses as provided in section 6 of the Act of July 30, 1946 (Public
Law 565, Seventy-ninth Congress), and allowances and expenses
equivalent to those provided in section 901(3) of the Foreign Service
Act of 1946 (Public Law 724, Seventy-ninth Congress) ; the lease or
rental (for periods not exceeding ten years) of living quarters,for the
use of the representative of the United States to the United Nations
referred to in paragraph (a) of section 2 hereof, the cost of installa-
tion and use of telephones in the same manner as telephone service is
provided for use of the Foreign Service pursuant to the Act of August
23, 1912, as amended (31 U.S.C. 679), [and the allotment of funds,
similar to the allotment authorized by section 902 of the Foreign
Service Act of 1946, for unusual expenses incident to the operation
and maintenance of such living quarters, to be accounted for in
accordance with section 903 of said Act;] and unusual expenses similar
to those authorized by section 23 of the Administrative Expenses Act of
1946, as amended. by section 321 of the Overseas. Differentials and Allow-
ances Act, incident to the operation and maintenance of such living
quarters; and such other expenses as may be authorized by the Secre-
tary of State; all without regard to section 3709 of the Revised
Statutes, as amended (41 U.S.C. 5).
SECTIONS 202 AND 203 OF THE ANNUAL AND SICK LEAVE
ACT OF 1951
SEc. 202. (a) Except as provided in subsection (b), this title shall
apply to all civilian officers and employees of the United States and
of. the government of the District of Columbia, including officers and
employees of corporations wholly owned or controlled 'by the United
States.
(b) (1) This title shall not apply to-
(A) teachers and librarians of the public schools of the District
of Columbia;
(B) part-time officers and employees (except hourly employees
in the field service of the Post Office Department) for whom there
has not been established a regular tour of duty during each
administrative workweek;
(C) temporary employees engaged on construction work at
hourly rates;
Approved For Release 2003/10/16 : CIA-RDP91-00965R000400090002-6
 Apprf1Qred FooiWleavz 20M CIA DRI"@Defr ROR0+400090002-6
(D) employees of the Canal Zone Government and the Panama,
Canal Company when employed on the Isthmus of Panama;
(E) commissioned officers of the Public H lalth Service;
(F) commissioned officers of the Coast and Geodetic Survey;
(G) doctors, dentists, and nurses in the t epartment of Medi-
cine and Surgery of the Veterans' Administration;
(H) officers and employees of the Senate tend House of Repre-
sentatives; and
(I) officers and employees of any corporation under the super-
vision of the Farm Credit Administration of which corporation
any member of the board of directors is elected or appointed by
private interests.
(2) This title, except section 203(g), shall not" apply to alien em-
ployees who occupy positions outside the [several-States and the Dis-
trict of Columbia] United States.
(3) Section 204 of this title shall not apply to officers and members
of the Metropolitan Police and the Fire Department of the District of
Columbia.
(c) (1) This title shall not apply to the follcwing officers in the
executive branch of the Government and officers of the government
of the District of Columbia, including officers of corporations wholly
owned or controlled by the United States:
(A) persons appointed by the President by and with the ad-
vice and consent of the Senate, or by the Pr?sident alone, whose
rates of basic compensation exceed the maximum rate provided.
in the General Schedule of the Classification Act of 1949, as.
amended;
(B) persons who receive compensation. in accordance with sec-
tion 411 of the Foreign Service Act of 1946; rand
(C) such other officers (except postmasters, United States
attgrneys, and United States marshals) as may be designated.
by the President.
No officer in the executive branch of the Goverrm,ent and no officer
of the government of the District of Columbia, including an officer
of a corporation wholly owned or controlled by the United States,
to whom this title applies shall be deemed to be entitled to the com-
pensation attached to his office solely by virtue of his status as an
officer.
(2) The President, in his discretion, may aut, iorize leaves of ab-
sence to persons who are exempted from this title pursuant to sub--
section (c) (1) (B) for use in the United States an,I its Territories and.
possessions. Leaves of absence authorized under this subsection.
shall not constitute a leave system, and no su1.h leave of absence
which is not used shall be made the basis. for any lump-sum payment.
(d) As used in this title, the term "United States" means the several.
States of the United States of America and the District of Columbia..
ANNUAL LEAVE
SEC. 203. (a) Officers and employees to whom ttris title applies shall'
be entitled to annual leave with pay which shallaccrue as follows-
(1) one-half day for each full biweekly pay period in the case
of officers and employees with less than tbi-ee years of service,.
(2) three-fourths day for each full biweekly pay period (except.
Approved For Release 2003/10/16 : CIA-RDP91-00965R000400090002-6
 Approved OV r RSEAS DIF 0 R NT/T~1LS' ACNIA- D RDA 9~1 OOC 65 ~00400(~~0002-6
that the accrual for the last full biweekly pay period in the year
shall be one and one-fourth days) in the case of officers and
employees with three but less than fifteen years of service, and
(3) one day for each full biweekly pay period in the case of
officers and employees with fifteen years or more of service.
In determining years of service for the purposes of this subsection,
there shall be included all service creditable under the provisions of
section 5 of the Civil Service Retirement Act of May 29, 1930, as
amended, for the purposes of an annuity under such Act and the
determination of the period of service rendered may be made upon
the basis of an affidavit of the employee. In the case of an officer or
employee who is not paid on the basis of biweekly pay periods, the
leave provided by this title shall accrue on the same basis as it would
accrue if such officer or employee were paid on the basis of biweekly
pay periods.
(b) Any change in the rate of accrual of annual leave by an officer
or employee under the provisions of this section shall take effect as of
the beginning of the pay period following the pay period, or corre-
sponding period in the case of an officer or employee who is not paid
on the basis of biweekly pay periods, in which such officer or employee
completes the prescribed period of service.
(c) The annual leave provided for in this section, which is not used
by an officer or employee, shall accumulate for use in succeeding years
until it'rtotals not to exceed thirty days at the beginning of the first
complete biweekly pay period, or corresponding period in the case of
an officer or employee who is not paid on the basis of biweekly pay
periods, occurring in any year.
(d) Notwithstanding the provisions of subsection (c), a maximum
accumulation not to exceed forty-five days at the beginning of the
first complete biweekly pay period, or corresponding pay period in
the case of an officer or employee who is not paid on the basis of bi-
weekly pay periods, in any year is authorized [to] for the following
categories of employees of the Federal Government [, other than
officers and employees in the Foreign Service of the United States
under the Department of State, stationed outside the several States
and the District of Columbia:] stationed outside the United States:
[(1) Persons directly recruited or transferred from the United
States by the Federal Government.
[(2) Persons employed locally but (A) who were originally
recruited from the United States and have been in substantially
continuous employment by other Federal agencies, United States
firms, interests, or organizations, international organizations in
which the United States Government participates, or foreign
governments, and whose conditions of employment provide for
their return transportation to the United States, or (B) who were
at the time of employment temporarily absent from the United
States for purposes of travel or formal study and maintained
residence in the United States during such temporary absence.
[(3) Persons who are not normally residents of the area con-
cerned and who are discharged from the military service of the
United States to accept employment with an agency of the Federal
Government.]
r (1)~ Persons directly recruited or transferred by the Federal Government
(A) from the United States, or (B) from the Commonwealth of Puerto
Approved For Release 2003/10/16 : CIA-RDP91-00965R000400090002-6
 Appr8~ed ForoRej%RRR;gAjq glMDP&1(5R%0 400090002-6
Rico or the possessions of the United States for employment outside the
area of recruitment or from which transferred.
(2) Persons employed locally but (A) (i) who were originally recruited
from the united States, or from the Commonwealth of Puerto Rico or the
possessions of the United States but outside the area of employment,
(ii) who have been in substantially continuous employment by other
Federal agencies, United States firms, interests 07 organizations, inter-
national organizations in which the United State? Government partici-
pates, or foreign governments, and (iii) whose conditions of employment
provide for their return transportation to the United States or the Common-
wealth of Puerto Rico or the possessions of the United States, or (B)(i)
who were at the time of employment temporarily absent, for the purpose
of travel or formal study, from the United States, or from their respective
places of residence in the Commonwealth of Puerto Rico or the possessions
of the United States and (ii) who, during such temporary absence, have
maintained residence in the United States or in the Commonwealth of
Puerto Rico or the possessions of the United States but outside the area
of employment.
(3) Persons who are not normally residents of the area concerned and
who are discharged from service in the Armed Forcos of the United States
to accept employment with an agency of the Federal Government.
[(e) Where an officer or employee to whom the provisions of sub-
section (d) are applicable, or who is in the Foreign Service of the
United States under the Department of State, and whose post of duty
is outside the several States and the District of Columbia returns to
any such State or the District of Columbia on leave, the leave granted
pursuant to this Act shall be exclusive of the time actually and neces-
sarily occupied in going to and from his post of duty and such time as
may be necessarily occupied in awaiting sailing or flight. The pro-
visions of this subsection shall not apply with respect to more than
one period of leave in any twenty-four month period.]
(e) The leave granted pursuant to this title shall be exclusive of the
time actually and necessarily occupied in going to and from the post of
duty and exclusive of such, time as may be necessarily occupied in await-
ing transportation, in the case of an officer or empl ayee (1) who is within
the purview of subsection (d) of this section, (2) whose post of duty is
outside the United States, and (3) who returns on leave to the United
States, or to his place of residence, which is outside the area of employ-
ment, in the Commonwealth of Puerto Rico or the possessions of the
United States. The provisions of this subsection small not apply to more
than one period of leave in a prescribed tour of duty at a post outside the
United States.
[(f) Officers and employees in the Foreign Service of the United
States under the Department of State may be gra:ated leave of absence,
without regard to any other leave provided by this title, for use in the
United States, its Territories or possessions, at a rate equivalent to one
week for each four months of service outside the, everal States and the
District of Columbia. Such leave may be accumulated for future use
without regard to the limitation in subsection (c) but no such leave
which is not used shall be made the basis for any terminal leave or
lump-sum payment.]
(f) Upon completion of twenty-four months 9f continuous service
outside the United States, officers and employeea may be granted, in
accordance with regulations of the President, lean, of absence at a rate
Approved For Release 2003/10/16 : CIA-RDP91-00965R000400090002-6
 Approved For Release 2003/10/16 : CIA-RDP91-00965R000400090002-6
OVERSEAS DIFFERENTIALS AND ALLOWANCES ACT 63
not to exceed one week for each four months of such service without regard
to any other leave provided by this title, for use in the United States, or,
if their respective places of residence are outside the area of employment
in the Commonwealth of Puerto Rico or the possessions of the United
States. Such leave so granted may be accumulated for future use without
regard to the limitation in subsection (d) of this section but no such leave
shall be made the basis for any terminal leave or for any lump-sum
payment.
(g) Alien employees who occupy positions outside the [several
States and the District of Columbia] United States may, in the dis-
cretion of the head of the department or agency concerned, be granted
leave of absence with pay not in excess of the amount of annual and
sick leave allowable under this title in the case of citizen employees.
(h) The annual leave provided for in this section, including such
leave as will accrue to any officer or employee during the year, may be
granted at any time during such year as the heads of the various
departments and independent establishments may prescribe.
(i) Notwithstanding the provisions of subsection (a), an officer or
employee shall be entitled to annual leave under this title only after
having been employed currently for a continuous period of ninety days
under one or more appointments without break in service. In any case
in which an officer or employee completes a period of continuous
employment of ninety days there shall be credited to him an amount of
annual leave equal to the amount which but for this subsection, would
have accrued to him under subsection ('a) during such period.
SECTIONS 2, 13, AND 14 OF THE ACT OF AUGUST 1, 1956
SEC. 2. The Secretary of State, when funds are appropriated there-
for, may-
(a) provide for printing and binding outside the continental
United States without regard to section 11 of the Act of March 1,
1919 (44 U.S.C. 111);
[(b) pay the cost of transportation to and from a place of stor-
age and the cost of storing the furniture and household and per-
sonal effects of an employee of the Foreign Service who is assigned
to a post at which he is unable to use his furniture and effects,
under such regulations as the Secretary may prescribe;]
(c) employ aliens, by contract, for services abroad;
(d) provide for official functions and courtesies;
(e) purchase uniforms; and
(f) pay tort claims, in the manner authorized in the first para-
graph of section 2672, as amended, of title 28 of the United States
Code when such claims arise in foreign countries in connection
with Department of State operations abroad.
[SEC. 13. Allowances granted under section 901 (1) of the Foreign
Service Act of 1946 (22 U.S.C. 1131(1)), may include water, in
addition to the utilities specified.
[SEC. 14. Appropriations now or hereafter made available for allow-
ances granted under the authority in part A of title IX of the Foreign
Service Act of 1946, as amended (22 U.S.C. 1131), including an
allowance for water as authorized in section 13 of this Act shall-be
available for the payment of such allowances in advance.]
Approved For Release 2003/10/16 : CIA-RDP91-00965R000400090002-6
 ApgTved For Release 220%WA Q~NL: CADR PL$-R%~?RRAW400090002-6
ti ACT OF JUNE 26, 1930
Be it enacted by the Senate and -louse of Represex,tatives of the United
States of America in Congress assembled, That under such regulations
as the heads of the respective departments concerned may prescribe
and the President approve, civilian officers anc employees of the
Government having permanent station in a foreign country may be
furnished, without cost to them, living quarters, including heat, fuel,
and light, in Government-owned or rented buildings [and, where such
quarters are not available, may be granted an fllowance for living
quarters, including heat, fuel, and light, notwithstanding the provi-
sions of section 1765 of the Revised Statutes (U.S.C., title 5, sec.
70)] : Provided, That said rented quarters [or allowances in lieu
thereof] may be furnished only within the limitsf of such appropria-
tions as may be made therefor, which appropi iations are hereby
authorized: Provided further, That the provisions of this Act shall
apply only to those civilian officers and employees who are citizens
of~the United States.
SECTION 912 OF THE INTERNAL REVENUE CODE OF 1954
[SEC. 912. EXEMPTION FOR CERTAIN ALLOWANCES.
[The following items shall not be included in grass income, and shall
be exempt from taxation under this subtitle:
[(1) COST-OF-LIVING ALLOWANCES.--In tho case of civilian offi-
cers or employees of the Government of the United States sta-
tioned outside continental United States, amounts received as
cost-of-living allowances in accordance with regulations approved
by the President. -
[(2) FOREIGN SERVICE ALLOWANCES.-In the case of an officer
or employee of the Foreign Service of the United States, amounts
received by such officer or employee as allowances or otherwise
under the terms of title IX of the Foreign i3ervice Act of 1946
(22 U.S.C. 1131-1158).]
SEC. 912. EXEMPTIONS FOR CERTAIN ALLOWANCES.
The following items shall not be included in gross income, and shall be
exempt from taxation under this subtitle:
(1) FOREIGN AREAS ALLOWANCES.--In the case of civilian
officers and employees of the Government of the Visited States, amounts
received as allowances or otherwise (but not amounts received as post
differentials) under-
(A) title IX of the Foreign Service Act of 1946, as amended
(22 U.S.C.; sec. 1131 and followingg),
(B) section 4 of the Central Intelligence ;Agency Act of 1949,
as amended (50 U.S.C., sec. 403e),
(C) title II of the Overseas Differentialsand Allowances Act,
or
(D) subsection (a), (e), or (f) of the first section of the Ad-
ministrative Expenses Act of 1946, as amended, or section 22
or 23 of such Act.
(2) COST-OF=LIVING ALLOWANCES.- In the else of civilian officers
or employees of the Government of the United Stites stationed outside
the continental United States (other than Alaska), amounts (other
than amounts received under title 11 of the Overseas Differentials and
Approved For Release 2003/10/16 : CIA-RDP91-06965R000400090002-6
 Approved Fg ~ qORQWjQ+ SC,&DRPL% M??W4000 002-6
Allowances Act) received as cost-of-living allowances in accordance
with regulations approved by the President.
(3) EXPENSES OF TRAVEL AND TRANSPORTATION. In the case of
civilian officers and employees of the Government of the United
States, amounts received as expenses of travel and transportation, or
costs of transportation provided in lieu thereof, from posts of duty
outside the continental United States (other than Alaska), to and
from their respective places of residence, authorized by section 7 of
the Administrative ..xpenses Act of 1946, as amended (5 U.S.C.,
see. 73b-3).
Approved For Release 2003/10/16 : CIA-RDP91-00965R000400090002-6
 Approved For Release 2003/10/16 : CIA-RDP91-00965R000400090002-6
APPENDIXES
Section 220 of the Standardized Regulations (Government Civilians,
Foreign Areas), issued by the Secretary of State, provides as follows:
220 TEMPORARY LODGING ALLOWANCE
221 Description
*221.1 Definition
"Temporary lodging allowance" means a living-
quarters allowance (See. -2158) granted to an
employee for the cost of lodging, heat, light, fuel
(including gas and electric.ty), and water at
temporary quarters for the employee and his
family upon their first arriva., at a new post.
221.2 Scope
Posts are grouped into 10 classes according to
lodging costs, that is, the price of room and bath,
including taxes, heat, and obligatory service
charges, at hotels ordinarily Lsed by Government
employees at the respective posts. The price of
meals is not included in the computation of this
allowance. The amount paid is either the em-
ployee's actual daily expenseE. for allowable items
or the maximum prescribed rate, whichever is less
(Sec. 931).
222 Commencement of Grant
The grant of a temporary lodging f,1lQwance shall com-
mence as of:
a. The date of arrival of the employee at a new post, or
the date expenditure for temporary lodging begins,
if later;
b. The date his family arrives at tae post, or the date
expenditure for temporary lodging begins, if later,
when arrival of the employee at ~, new post is delayed
by reason of his being ordered to report at another
place for consultation or temporary detail and his
family arrives at the new post before him;
c. The effective date of transfer or he date expenditure
for temporary lodging begins, whichever is later,
when the employee is on detail or leave at the post
to which he is transferred, the effective date of trans-
fer being considered the date of first arrival at the
new post.
*223 Termination of Grant
The grant of a temporary lodging allowance shall termi-
nate as of one of the following dates, whichever it
Approved For Release 2003/10/16 : CIA-RDP91-00965R000400090002-6
 ApproverA-S eoArJAOWM16mIA&lH1 1k4MUR00040090002-6
earliest, but shall not be terminated solely by reason of
the employee's leave without pay status due to personas
illness or illness or death of a member of family:
a. Three months after the date of FIRST ARRIVAL
of the employee AT A NEW POST, or of a member
of his family if earlier (Sec. 222b) (Example: A
grant which commenced on February 13 would
terminate on or before May 12.) ;
b. The date payment for temporary lodging ceases;
c. The date of occupancy of residence quarters;
d. The date of the employee's departure, or the date of
departure of his family if later, under transfer orders.
Where the employee's departure for transfer precedes
that of his family, the temporary lodging allowance
at his previous post shall not extend beyond the date
preceding the date of his arrival at his new post.
e. The last day of his employment if the employee
resigns, retires, dies, or is otherwise separated from
the agency.
'224 Determination of Maximum Rates
224.1 Classified Posts
The maximum rate at which a temporary lodging
allowance may be granted to an employee shall
be determined by the classification of his post
(Sec. 920), family status (Sec. 215c) and the daily
rates prescribed in section 931, except that in no
case shall an employee be granted a temporary
lodging allowance at a rate in excess of the
aggregate amount of the per diem that would be
allowable to such employee for himself and the
members of his family if they were in travel
status.
224.2 Unclassified Posts
The maximum rate at which a temporary lodging
allowance may be granted an employee assigned
to a post which is not classified shall be the rate
to which he would be entitled under these regula-
tions if the post were classified at the lowest
classification within the country of assignment for
this type of allowance (Sec. 920).
225-Determination of Actual Rate
*225.1 General Rule
The actual rate at which a temporary lodging
allowance may be granted to an employee shall be
the amount of his daily expenditures for the
temporary lodging of himself and/or his family,
or the amount of the maximum determined in
accordance with section 931 of these regulations,
whichever is less. In addition to the daily cost
of the room, or rooms, and heat, light, fuel, and
water, if charged for separately, such amount
may include the daily cost of service fees and
taxes imposed by the management and/or munici-
pal or other local government. The cost of food,
Approved For Release 2003/10/16 : CIA-RDP91-00965R000400090002-6
 ApproJ For Rglbi20t&miUA=RP(J?Q,$0090002-6
beverages, or personally ordered services may not
be included. Where meals and lodging are
furnished at a single combined rate, the cost of
lodging plus any mandatory service fees and
taxes, shall not be considered to be more than 60
percent of the total cost.
225.2 Supporting Evidence
Evidence of the daily cost of temporary lodging
shall be a certified statement indicating the cost
and certifying payment th(Tefor.
226 Effective Dates of Revisions of Grams
The grant of a temporary lodging allowance shall be
appropriately revised as of:
a. The effective date of an authorized change in the
classification of the post or the rate of the allowance
which may be granted; or
b. The date of a change in the- family status of the
employee.
-227 Payment
A temporary lodging allowance 9hall be paid at daily
rates multiplied by 14 to derive a bi-weekly rate.
APPENDIX 13
In accordance with the intent of the committee, as set forth in
the "Explanation of the Bill, as Reported" (par. (3) of sec. 211), the
following are suggested matters to be considered in the preparation
of administrative regulations to carry out the purpose of such
paragraph (3) :
The department or agency head should e.etermine, before the
granting of an initial repairs allowance., that 1) the lessor will not
assume the cost of the repairs, (2) the quarters are below reasonable
standards of health, safety, or comfort in the United States, and
.(3) no adequate rental quarters meeting such standards were known
to be available locally at a rate which, when combined with estimated
utility and tax costs, was within the maximum-authorized allowance
for the officer or employee concerned.
An initial repairs allowance, granted in appropriate case, might
include payment or reimbursement of costs incurred within 3 months
after completion of a rental agreement, in connection with the first
residence quarters at a post, for (1) repairs required to eliminate
leakage or drafts, to fortify or replace structural components, or to
replace defective plumbing, wiring, heating, lighting, or other essen-
tial facilities or equipment, (2) alterations to provide improved access
or ventilation and light, such as new or additioni,l windows and doors,
and (3) improvements such as required plumblhg, heating, or light-
ing fixtures and equipment, screening, pest controls, insulation where
required by extreme climate, painting where needed for hygienic
reasons or in connection with authorized repairs or alterations, and
other changes to make the quarters reasonably abitable.
The authority to grant initial allowances for repairs, alterations,
and improvements is not intended to cover painting other than that
specified above; repair, renovation, or replactxnent of furnishings;
erection of additions to any structure or ere _ction or removal of
Approved For Release 2003/10/16 : CIA-RDP91-00965R000400090002-6
 Approved For Release 2003/10/16: CIA-RDP91-0065000400002-6
OVERSEAS DIFFERENTIALS AND ALLOWAN E
garages or other outbuildings; improvement of grounds; materials
or labor except as required for authorized repairs, alterations, and
improvements discussed above; any repairs, alterations, or improve-
ments above reasonable minimum standards of health and safety in
the United States, as determined by the department or agency head;
any cost of repair, alteration, or improvement incurred later than 3
months after completion of the rental agreement; and any repair,
alteration, or improvement to other than the first residence quarters
of an officer or employee at a post of duty.
The total initial repairs allowance should be the estimated cost of
allowable items, not exceeding the difference between estimated
quarters allowance of the officer or employee for 2 years and the
maximum authorized quarters allowance for 2 years. No officer or
employee should be granted more than one initial repairs allowance
during a period of continuous assignment to a post.
APPENDIX C
Studies, reports, and legislation relating to allowances, benefits, and
working conditions of Government employees in overseas areas
1. Senate Post Office and Civil Service Committee study conducted
pursuant to section 5(b) of Public Law 201, 82d Congress, and report
thereon submitted. to the Vice President by Senator Olin D. Johnston
under date of January 28, 1953 (committee print).
2. House Post Office and Civil Service Committee report entitled
"Report of the President's Adviser on Personnel Management on
Pay and Personnel Practices of Federal Employees Stationed Over-
seas," printed in House Report No. 1760, 83d Congress (June 7, 1954).
3. House Post Office and Civil Service Committee (Subcommittee
on Civil Service Commission and Personnel Programs) overseas hear-
ings held during the period September 22 to November 2, 1955 (84th
Cong., 1st sess.) (printed).
4. House Post Office and Civil Service Committee unanimous re-
port on "Personnel Programs and Policies of the Federal Government
in Overseas Operations," printed in House Report No. 2109, 84th
Congress (May 3, 1956).
5. House Post Office and Civil Service Committee (Subcommittee
on Civil Service) hearings on bills to improve the administration of
overseas activities of the Government of the United States, and for
other purposes (H.R. 5007 and H.R. 5099) and on bills to provide for
health and medical services for civilian employees in Government
service overseas and their dependents, and for other purposes (H.R.
5178 and H.R. 5238) (June 10, 1959).
Legislation
Eighty-second Congress: Public Law 201, section 5(b).
Eighty-third Congress: H.R. 9767; H.R. 9768.
Eighty-fourth Congress: H.R. 12193; H.R. 12194.
Eighty-fifth Congress: H.R. 3527; H.R. 6141 (health program);
H.R. 12225 (teachers; see Public Law 86-91).
Eighty-sixth Congress: H.R. 4398 and H.R. 4690 (teachers; see
Public Law 86-91); H.R. 5007, H.R. 5099, H.R. 7758 (allowances);
H.R. 5178 and H.R. 5238 (health program).
0
Approved For Release 2003/10/16 : CIA-RDP91-00965R000400090002-6