OVERSEAS DIFFERENTIALS AND ALLOWANCES ACT

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP92-00455R000100110013-9
• Release Decision: RIFPUB
• Original Classification: K
• Document Page Count: 36
• Document Creation Date: December 12, 2016
• Document Release Date: March 13, 2002
• Sequence Number: 13
• Publication Date: June 22, 1960
• Content Type: REPORT

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86TIl CONGRESS
2d Session
I
REPORT
No. 1647
OVERSEAS DIFFERENTIALS AND ALLOWANCES ACT
Mr. JoHNsToN of South Carolina, from the Committee on Post Orrice
and Civil Service, submitted the following
REPORT
The Committee on Post Office and Civil Service, to whom was re=
ferred the bill (H.R. 7758) to improve the administration of oversew
activities of the Government ofthe United States, and. for other .pur-
poses, having considered the same, report favorably thereon with
amendments and recommend that the bill, as amended, do pass.
The purpose of this bill is to improve and strengthen Government
oversea activities by establishing a uniform system for compensating
all Government employees in oversea posts irrespective of the agency
by which they are employed. The bill would provide uniformity of
treatment for all oversea employees, to the extent justified by relative
conditions of employment. Current applicable laws do not,provide
this uniformity.. They authorize benefits _ for the, employees of cer-
tain agencies, while the employees of other agencies are denied them
because of the lack of statutory authority, even though the conditions
of employment of the two grows are substantially the same.
Many of the. provisions of II R; 7758 aide alreadyy authorized for cer-
tain agencies by the Foreign Service Act and 'by other legislation.
These agencies, referred to here as. foreign affairs agencies, are the
Department of State, the U.S. Information Agency, the International
Cooperation Administration, the Foreign Agricultural Service, the
Federal. Aviation Administration, and the Veterans' .Administration:
Some of the provisions of this measure are also already authorized.
for all. agencies, These provisions are repeated in this bill, sometimes
with minor language changes, in order to-clarify and consolidate exist
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2 OVERSEAS DIFFERENTIALS AND ALLOWANCES ACT
ing law and to make I-113,. 7758, all-inclusive in the field of oversea
differential and allowance payments.
Thus, the bill extends certain benefits now authorized only for the
foreign affairs agencies to non-foreign-affairs agencies as well.
It adds a limited number of new benefits for all agencies.
It continues benefits now already authorized for all agencies by
existing legislation.
STATEMENT
The provisions of H.R. 7758 are based on an official recommenda-
tion submitted by the Department of Defense as part of the Presi-
dent's legislative program in the 85th Congress.
Public hearings on this bill were. held. in:the, House last year and
the bill passed on September 8,1959.
The Senate held hearings on June 2, 1960. Favorable testimony
was received from the Department of Defense, Department of State,
Civil Service, Commission2 and representatives of, eunpioyee groups.
There was no adverse testimony from any source. The measure was
developed as the result of studies by both the Senate and House Com-
mittees on Post Office and Civil Service, extending over a period of
years and with the cooperation of the Department of Defense, the
Department of State, and other agencies having an interest in the
manifold problems involved.
The importance of sound and effective personnel policies in the con-
duct of our overseas programs is well recognized. The success 'of
such programs depends largely upon the employees engaged in carry-
ing them out. The effectiveness of their performance is directly re-
lated to the fairness and wisdom inherent in the policies under which
personnel are employed.
To this end, this bill advances the recognized principle that is civil-
ian employees should be adequately reimbursed for additional ex-
penses necessarily incurred because of their overseas services; that
they should be compensated for hardship,'inconveniences, or other en-
vironmental and working conditions not encountered in the United
States; and that, insofar as practicable, these overseas employees
should be compensated upon the basis of the same criteria without
regard to the identity of the employing Federal agency.
1. QUARTERS, ALLOWANCE
1. The bill continues for all agencies present authority to provide
overseas quarters or grant allowances in lieu of Government quarters
(sec. 211).
Either a quarters allowance or free Government quarters are fur-
nished to each American citizen civilian employee living in a foreign
area by reason of his employment by the' U.S. Government.
The quarters allowance is paid as a reimbursement of allowable costs
incurred up to established ceilings..
It is not paid concurrently with temporary lodging. allowance or
travel ' per diem.'' Nor is it paid if free Government 'quarters are
provided.
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2. The bill extends to non-foreign-affairs agencies authority to pay
temporary lodging: allowance upon first arrival at new post (sec.
211).
This temporary lodging allowance would be given to help newly
arrived employees defray expenses of hotel rooms while locating resi
dente. quarters and awaiting arrival of furniture.
It would be used only within the first 3 months after first arrival
at a post, and it would not be paid concurrently with the quarters
allowance or travel per diem, and expenses for meals are not included
as part of it.
Posts are grouped into 15 classes varying with lodging costs at
hotels used by Government employees. A maximum rate is set for
each class. The amount paid is the actual cost or the maximum, which=
ever is less.
The temporary lodging allowance will cover only average prices for
adequate but not luxurious accommodations, including lodging, heat,
light, fuel, and water. It is allowed while the employee is locating
and arranging for suitable quarters and awaiting the arrival of his
furniture. Assurance has been given the committee that this policy
will be spelled out in the administrative regulations governing such
allowance.
Existing law provides that the amount paid as a temporary lodg+
ing allowance to employees of foreign affairs agencies may not ex-
ceed the amount of the per diem that would be allowable to the em=
ployeo and his family if they were in travel status. This provision
is omitted from H.R. 7758 for two reasons.
(a) Temporary lodging rates are established to'cover only the cost
of hotel rooms, whereas. per diem rates cover this and the cost of
meals as well. Per diem rates are therefore usually more than double
temporary lodging allowance rates: By definition, in other words,
the temporary lodging rate never exceeds the travel per diem other-
wise allowable. Thus the present limitation never applies.
(b) Even if a ceiling were necessary, it is inequitable to base it on
the per diem otherwise allowable because no per diem is authorized
for families of employees of non-foreign-affairs agencies. For such
an employee, if he had a large family, not even his room costs would
be covered by the allowance.
The extension of the temporary lodging allowance so that it will
be available to all employees who may be faced with heavy hotel ex-
penses upon first arrival at a post is. seen as a needed improvement.
Morale suffers when two employees arrive at a post together, ara
booked into the same hotel, pay the same room rate, but receive a dif-
ferent allowance. At present the employee of a foreign affairs ageney
receives the temporary lodging allowance to defray his expenses, while
the other employee receives the regular quarters allowance, which is
much lower, since it is based upon the cost of a house or apartment
and not upon the cost of a hotel room.
3. The bill adds for all agencies.authority to pay temporary lodging
allowances at the.end of tour of duty (sec: 211).
This allowance would be identical with the present temporary lodg-
ing allowance authorized.forei11' ii affairs agencies, except that it would
be paid for periods of up to month at the end -of a tour, of, duty,
as opposed to the beginning of a tour.
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Generally, an employee moves to a hotel for a short period just
prior to leaving his post. Thus he avoids another full month's rent
and allows time for the completion of departure arrangements..
The right to a full month's temporary lodging allowance does not
automatically follow from the receipt of transfer or separation orders.
Only as much of the month will be allowed as is justified by the
circumstances.
Employees are transferred at the convenience of the Government
and are seldom able to control the timing of departure. It is viewed
as unfair that employees should be put to the personal expense of the
extra cost of hotel rooms when they vacate their privately leased quar-
ters just prior to leaving the post. Sparing use of this payment is
envisaged, since most employees will prefer not to move from regular-
ly established quarters until the day of departure if it can be avoided.
Regulations will spell out strict administration of this authority.
4. The bill extends to non-foreign-affairs agencies the authorit to
include water as a utility to be covered by the quarters allowance (see.
211).
Existing law permits the quarters allowance to cover rent, heat,
light, fuel, gas, and electricity. Foreign affairs agencies may include
water in addition to the other utilities specified This section of the
bill extends such authority to all Government agencies.
This is an example of the small differences in, the allowances author-
ity among agencies. While water at most posts is not an expensive
item, no reason for a difference in treatment among the agencies has
been advanced.
5. The bill adds for all agencies the authority to reimburse em-
ployees for initial repairs to make substandard dwellings habitable
(see. 211).
The purpose of this allowance is to make substandard or uninhabit-
able dwellings suitable for occupancy.
At certain posts of assignment, habitable quarters are not obtainable
unless the employee bears substantial costs for necessary basic repairs,
alterations, and improvements.
It is not intended that the allowance cover any alteration which is
not basic to making a dwelling habitable, such as redecorating. The
Government agencies could require that the lease. contain, whenever
feasible, provisions permitting a change of lessees without change in
other provisions of the lease in order that the quarters concerned could
be made available to another employee in the event of the transfer or
separation of the original tenant.
It is understood that appropriate regulations will be issued to pro-
vide that the total cost for an employee will not exceed his normal
maximum authorized quarters allowance for 2 years.
The need to pay for initial repairs to make substandard quarters
habitable is limited to a few areas of the world. These areas are char-
acterized by a dearth of houses or.apartments in reasonable repair and
by a heavy influx of persons seeking housing. Army and,Air Force
personnel in provincial France, Spain, and Italy, and in cities such as
Tokyo and Seoul have encountered these conditions.
Authority to reimburse employees for initial repairs would-be uti-
lized only in specific areas and for specific periods of time. For those
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few employees affected, however, this authority would enable them to
avoid the undesirable choice between living for 2 years in a house,
say, without inside plumbing or spending large sums out-of-pocket
to install such plumbing.
6. The bill extends to non-foreign-affairs agencies authority for
advance payment of all allowances (sec. 202).
Authority for payment of quarters allowances in advance would
be restricted to localities where.local customs necessitate such advance
payments and where the individual lessor requires it.
Employees granted advance payments are required to negotiate a
minimum advance rental payment. Whenever possible, prepayment
leases must contain a 30-day cancellation. clause, provide for refund
of the remaining portion of the prepaid rent in case of cancellation,
and provide the privilege of subletting to another employee, as re-
quired.
Advance payment of quarters allowances may not be made for a
period less than 3 months nor for more than 1 year unless specifically'
authorized by the Department. The maximum amounts that may be
paid in. advance for any. given period may not exceed the annual rate
of the authorized maximum quarters allowance, or the total rent cost
for the period of the lease, whichever is less.
Authority to pay all allowances in advance appears in the general
provisions of the bill, since.existing law authorizes advance payment
of all allowances of foreign affairs agencies. In practice, however,
the foreign affairs agencies which now have this authority are using
it only for making advance rent payments.
An advance of funds which is not subsequently covered by allow-
ances accrued to the employee concerned will be recoverable by the
Government. Recovery may be effected by setoff against salary, retire-
ment credit, or other amount due from the Government.
The granting of quarters allowances in advance has been authorized
by the Department of State during the, past 3 years only for approxi-
mately 50 of its oversew posts. Efforts to hold the need for advances,
to a minimum have been reasonably successful. In those few areas
where it has been determined that. advance payments must be made
in order to secure adequate housing it is felt that all employees of the
Government should have the privilege of drawing. their quarters al-
lowances in advance, there being no reason for different treatment of
employees faced with the same problem.
Amortization of rental advances is effected by pay period.' On the
employee's separation or transfer from the post, the unliquidated por-
tion of the advance must be repaid.
In a few instances in which substantial losses would have been suf-
fered because of unusual circumstances such as the evacuation of
Baghdad in July 1958, the Department of State has agreed to grant
employees special allowances to relieve them of the loss incurred. The
language of the measure as it passed the House appears to preclude
such relief and to require that in all cases any advance not subsequent-
ly earned must be recovered from the employee. In order to provide
needed flexibility and to prevent unwarranted hardship when the in-'
ability to earn the allowance necessary to repay the.. advance is not
the fault,of the. employees+the committee recommends a.n amei dment
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consisting of the addition of the following provision at the end of
section 202:
The head of the department concerned may in accordance
with regulations of the President, waive in whole or in part
any right of recovery under this section, if it is shown that
such recovery would be against equity and good conscience or.
against the public interest.
D.C. (sec. 221).
1. The bill continues present authority for all agencies to pay post
allowances to compensate for living costs higher than in Washington,
of assignment.
employees assigned to foreign posts when the cost of living is substan-
tially higher than in Washington.
No post allowances are paid to employees assigned to any post that
does not exceed Washington costs by as much as 21/2 percent. Deter,
minations are based upon reports received from each post showing
approximately 'TOO prices. Consideration is given to the amount of
goods purchased from local markets, from commissaries when avail-
able, and to prices paid for goods shipped to the post at the time
The post allowance is a cost-of-living allowance paid to civilian
consideration, any post allowance that is paid represents the amount
necessary to enable the employee at the post to purchase with his
salary and allowance goods and services equivalent to those he could
purchase in Washington with his salary alone.,
At approximately two-thirds of the posts in foreign areas, costs do
not warrant post allowances.
The cost of living is surveyed at each foreign post at least annually;
and rates are adjusted as indicated by the survey.
2. The bill continues for all agencies authority to pay a transfer al-
lowance upon an employee's assignment to duty at any post in a for-
eign area and at a post in the United States between foreign assign-
ments (sec. 221).
The transfer allowance is. intended to reimburse partially an em-
ployee for the additional expense incurred because of the necessity for
changing types of clothing, providing insurance on shipments of
household goods, and replacing furniture and household equipment
as necessary because of transfer to a new environment.
. Transfer allowance payments range in size up to $175, depending
upon the size of the employee's family and the climatic zone to which
an employee is transferred. At present, no payment is authorized for
transfers which do not involve a change in climatic zone. Approxi-
mately two-thirds of all transfers fall in this nonpayment category.
A variation of the transfer, allowance is payable upon transfer to a?
post in the continental United States between assignments to posts
abroad. This allowance is referred to as the "home service transfer
allowance."
3. The bill adds for,all agencies the authority to pay: the existing
separate-maintenance allowance whenever the family must be main-
. When all prices and necessary adjustments :have been taken into
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tained away from the post of assignment but remains within the
country of assignment (sec. 221).
The separate-maintenance allowance is intended to assist an em-
ployee who is compelled-because of adverse living conditions at his
post of assignment or for the convenience of the Government-to meet
the additional expense of maintaining, elsewhere than at his post of
assignment, his wife or his dependents, or both.
This provision of the bill consolidates, with one important change,
the existing authority for Government agencies to pay separate main-
tenance allowances.
Existing law authorizes payment of the separate maintenance al-
lowance when the family must be maintained elsewhere than in the
country of assignment. This bill would change the word "country"
to "post." This change would permit payment of the separate-main-
tenance allowance when it is essential that the employee maintain his
family away from his post of assignment, although not necessarily
outside the country of assignment.
It is understood that this allowance would be rarely paid, since the
conditions at a post compelling family separation and warranting an
extra allowance payment seldom occur. When such conditions do oc-
cur; this allowance is extremely important if the employee is not to
bear a heavy financial burden through no fault of his own.
The improvement that will be -made by changing the word "coun-
try" to "post" is best illustrated by a large country such as India. Riots
and strife could occur in Bombay, while Delhi would be extremely
safe. With the revised wording of the law, it would not be neces-
sary for the employee to send his' family to another country for
safety; he could send them to another post in the same country and
retain his eligibility for the allowance.
4. The bill continues present authority for all agencies to provide
an allowance to cover additional costs of securing adequate education
of dependents (sec. 221).
Education allowances are granted only at those posts where the
costs of adequate schooling in grades 1 through 12, are in excess of
the costs that would be incurred for a child in a U.S. public school.
If adequate schools are available at the post, no allowance is estab-
lished for a school away from the post.
If no adequate school exists at a post, an allowance rate is estab-
lished that is based on the costs of attending the nearest and least ex-
pensive. adequate school.
If a U.S. Military Dependents' School is available at a post, no edu-
cation allowance is paid for a child to attend any other school in a
foreign country, unless special circumstances of illness or distance pre-
vent attendance.
5. The bill extends to non-foreign-affairs agencies authority to pay
the travel expenses of dependents who are transported to and from the
United States to obtain a secondary or undergraduate college educa-
tion, not to exceed one trip each way for each dependent (sec. 221).
Payment of a child's travel expenses to the; United States is au-
thorized for the purpose of securing secondary schooling or college
education. The travel may not exceed one trip each way for each
child for the purpose of obtaining each type of education,
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The first trip for obtaining a secondary or college education must
originate outside the continental limits of the United States.
The child must have been abroad continuously not less than 45
days prior to the date he will commence travel to the United States.
This 45-day requirement is not applicable when the child's transpor-
tation abroad within the 45-day period was not at Government
expense.
Under existing law, foreign affairs agencies provide three choices
to employees having high-school-age dependents :
(a) A child of high-school age may be entered in a secondary
school in a foreign area and receive the applicable allowance; or
(b) The child may be sent to the United States for secondary
education without entitlement to the allowance following his ar-
rival; or
(c) The child may be sent.to the United States for secondary
education without the cost of the trip being paid for by the Gov-
ernment, but the employee would be entitled to the regularly
prescribed allowance.
This provision of the bill consolidates the travel-payment authority
granted under existing law and extends such travel-payment author-
ity to those agencies not authorized to make such payments at' the
present time.
Extension to non-foreign-affairs agencies of the authority to pay
costs of transporting employees' dependents to and from the United
States to obtain an American secondary or undergraduate college
education would remove an inequity in the treatment of employees
serving at the same posts in foreign areas.
Existing law governing travel-payment expenses for the foreign
affairs agencies differs slightly from the language of this act as passed
by the House. Present authority to transport dependents for second-
ary and college education employs the phrase "travel expenses,'' au-
thorizing the usual expenses of transportation, per diem, and related
costs.
H.R. 7758 as it passed the House uses the phrase "the cost of trans-
porting dependents," which would prevent payment of more than the
actual air or ship fare.
Accordingly, the committee recommends that the. bill be amended
by the restoration of the phrase "travel expenses."
6. The bill adds for all agencies authority to pay education allow-
ances on behalf of dependents who were transported to the United
States for educational purposes, provided that such allowances are
not paid during the 12 months following the dependents' arrival in
the United States (sec. 221).
The language of this bill. limits the prohibition on payment of a1-
lowances 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 au-
thorization of educational travel for a child on. whose behalf an edu-
cation allowance was granted, for example, in the first year of sec-
ondary school even though the parent has been transferred to another
post: at which secondary education is not available.
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For ReleasgPO G /~ . &JA PA IQ ,3n~cded flexi-
bility without changing the basic principle that education allow 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.
The flexibility afforded by the language of this bill meets the needs
that have developed after 5 years of experience with the educational
benefit program. For example, employees who transfer to posts where
local secondary schools are inadequate will be able, under. the new au-
thority, to send their children. back to the States to school under the
education travel grant although an education allowance had been
Co
n-
received on behalf of the child'in prior secondary school years.
versely, a parent who sends his child to the United States under a
travel grant to obtain a secondary education can receive an education
allowance at a later date if he brings the child overseas again to con-
tinue. secondary schooling. The allowance will not be available to
the parent on behalf of a child in secondary grades who remains in
school in the United States after being, transported there under the
travel grant to obtain a secondary education.
7. The bill adds for all agencies authority to pay travel expenses
of a child to the school where secondary or undergraduate college edu-
cation is to be obtained, rather than only to the "nearest port of entry
(see.221). i
The language of the bill permits travel to the school or college which
the dependent is to enter rather than only to the nearest port of entry
as is presently the case. -
Authority to transport dependents to schools and colleges to be at-
tended rather than just to the nearest U.S. port of entry permits grant-
ing an educational travel benefit in full and affords equal treatment
to all employees. For example, employees who are assigned to' posts
in Europe and who send dependents to Eastern schools and colleges
are now in a more favorable position than the employees in the same
areas who choose educational institutions in the West. The new lan-
guage places all employees on the same basis..
8. The bill adds for all agencies, authority to pay expenses of travel,
for the purpose of obtaining undergraduate college education only,
by dependents of employees who are citizens of the United States sta-
tioned in the Canal Zone (sec. 221).
This provision authorizes the payment of travel expenses, under
regulations to be prescribed by the President, for the purpose ofob-
taining undergraduate college education only, for dependents of em-
ployees 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 anal Zone.
Making the allowances for travel to obtain undergraduate college
education available to dependents in the Canal Zone is a logical ex-
tension of this benefit. Undergraduate college facilities in the Canal
Zone are not offered beyond the first 2 years. Those employees who
plan a 4-year college program for their children want them to spend
the entire 4-year period in one institution.
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1. The bill continues for all agencies authority to pay a post differ-
ential not to exceed 25 percent of basic compensation, based - on ad-,
verse conditions of environment which warrant additional compensa-
tion as a recruitment and retention incentive (sec. 231).
The purpose of the post differential is to compensate employees for
undesirable conditions of environment which exist at some posts of
assignment in foreign areas. These undesirable conditions. may take
the form of physical hardships, hazards to health, and difficult condi-
tions of living generally.
The post differential is intended to serve as an incentive in the re-
cruitment and retention of personnel to be employed at the more un-
desirable locations. It is authorized only for those posts at which the
degree of hardship is in excess of that which employees are expected
to undergo as part of the sacrifice necessarily involved in oversea
service.
More than one-half of the posts in foreign areas have no post dif-
ferential. A large number of posts having a considerable degree of
hardship do not receive post differential.
The post differential is : subject to tax as a part of gross income;
Other allowances are not taxable..
The existing limitation is retained on the amount of post differen-
tial which may be paid by providing that additional compensation
paid as post differential shall not exceed, in any instance, 25 percent
of the rate of basic compensation. -
? The post differential program is seen as representing a fair and
equitable way of rewarding those employees who accept undesirable
posts of assignment for long periods.
The language .of H.R. 7758 specifically includes Ambassadors as
employees who are eligible for various allowances in the bill, includ-
ing the post differential. At present, chiefs of mission receive all
applicable allowances .but do not receive the post differential. The
authority provided in the bill to pay post differential to Ambassadors
is permissive. It is understood that the Department of State - does
not plan to make such payments at this time.
IV. STORAGE
1. The bill extends to non foreib -affairs agencies authority to pay
storage expenses for household effects under certain circumstances
(sec. 301).
The bill provides for the storage of an employee's household goods
and personal, effects when the employee is assigned to a post outside
the continental United States to which he cannot take, or at which he
is unable to use, his household goods and personal effects. It would
permit the head of the department concerned to authorize the storage
of household goods and effects in the public interests for reasons of
economy.
H.R. 7758 provides the.basis for the extension to all. departments
and agencies of authority for payment of the costs of storage of furni-
ture and household and personal effects of employees assigned to for-'
eign posts, and of certain related expenses, which is comparable to the
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'authority for-payn'ient of such expenses now contained in section
911 of the Foreign Service Act of 1946, with respect" to certain other
agencies.
The measure .provides a specific weight limitation to the effect that
in no instance shall the weight or volume or weight of the articles
transported, under authority of such paragraph, exceed the maximnxin
weight and volume limitations fixed by regulations, when.not other-
wise fixed by law.
The bill authorizes storage, for periods not to exceed 3 months, of
household effects of a Foreign Service officer or employee who is being
separated. This would allow a period of time for the employee 'to
select a permanent residence.
V. SHIPMENT OF IiOUSEHOLD EFFECTS. (SEC. 301)
The bill .would: eliminate the 8,750-pound maximum limitation on
crated shipments of: household effects of non=foreign-affairs agency
-employees, .' The net-weight' maximum allowance of 7,000 pounds
-would be retained.
The necessary packing and crating for oversea shipment of house-
hold effects increases the gross weight of such shipments by an avera&e
of approximately 90 percent. This has the effect of reducing tFiie
maximum net weight limitation on a shipment of household effects
consigned, overseas to an average of something under 4,000 pounds.,
The result of . the gross-weight limitation" 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 household effects well within the un-
'crated limit of 7,000 pounds have been forced to pay overweight ship-
ment charges running to several hundred dollars.
The bill extends to non-foreign-affairs agencies authority to pay
the costs of unusual housekeeping expenses for the principal repre-
sentatives at. a post (see.:311) .
The official residence allotment is a partial reimbursement for the
extra housekeeping costs due to a principal representative's position
which requires. the maintenance of a household more extensive than
necessary for an officer at the post in a lesser capacity.
The amount of the allotment is based upon the normal living pat-
tern of senior officers at. a post, the difference between these normal
housekeeping expenses and the costs the principal representatives are
required to bear, and the size and condition of the official residence
at the post.
The principal 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 responsibility which they ocepy at their foreign posts.
The committee has received assurance that the Department of State
has been, and will, remain, the principal user of the authority to pror
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 12 Of -,SEAS DIFFERENTIALS AND ALLOWANCE jT
Approved For Release 2002/01&1~}; OgrS@~,Oai~~t->'~ients and agencies on
occasion are expected to have need to use this authority.
It is intended that this authority will continue to be used very
sparingly and that its use for other than chief representatives of the
United States at foreign posts will be strictly limited to unusual cir-
cumstances involving actual necessity.
Reimbursement is not permitted to any individual for the ordinary
household expenses-whicli he would incur in any case. This authority
is intended to extend only to the additional expenses necessarily, in-
. currnd by chief representatives and senior officials of the Government
in maintaining residences which are larger and more elaborate than
otherwise would be required.
Extension of the authority to pay unusual expenses in connection
with the operation of official residences is expected to add relatively
few officials to the limited number now authorized to receive such
payments. Some agencies represented overseas will have no officers
in. this category.
The State Department as the principal current user of this authority
makes: official .residence allotinents,to 1 principal. officer at each, post,
and makes in addition allotments to about 20 other top officers such as
the deputy chiefs of mission at the largest posts.
The bill extends to. non-foreign-affairs agencies authority to ship
privately owned motor vehicles under certain circumstances (sec. 321)..
H.R. 7758 would authorize the shipment of employees' vehicles by
Government transportation or commercial means when the transporta-
tion is considered by the head of the agency to be in the interest of the
Government for the employees to have the use of the motor vehicle at
his post of duty.
It would authorize the transportation of a replacement vehicle after
4 years or earlier if a replacement vehicle is determined to be necessary
by the head of the. agency.
- Assurances have been given that this authority for the transporta-
tion of privately owned motor vehicles would be strictly. administered
to insure that such transportation *will be authorized 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 suit,
able under local conditions, is in the interest of the Government, and
is" not solely for the personal convenience of the employee.
The agencies concerned state that the automobile shipment allow-
ance will be austerely administered. For example, it is not contem-
plated that automobiles will be shipped to any U.S. employees sta-
tioned in Eu ope. The reason for this is that European automobiles;
which are available to U.S. employees, are usually entirely adequate.
Furthermore, the larger U.S. cars are not suitable to inany narrow
European roads and, because of their size, they tend to have a poor
psychological effect upon Europeans who see Americans driving them.
In other countries, where domestic cars are not available, however,
the authority for this allowance is seen as essential, so that employees
who need cars as part of their jobs will have them.
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OVERSEAS DIFFERENTIALS AND ALLOWANCES ACT 1.3
1. The bill extends to foreign affairs agencies authority for a maxi=
mum of 45 days of annual leave accumulation by employees stationed
abroad (sec. 401).
Existing law provides for the accumulation of a maximum of 30
days of annual leave for employees of the foreign affairs agencies
abroad. Employees of all other agencies may. accumulate 45 days.
This bill would equalize for all the annual leave accumulation at 45
days, thus removing an inequity.
2. The bill extends to non-foreign-affairs agencies home-leave privi-
lemes for employees after 24 months of service abroad (sec.?401).
`Existing law provides that employees abroad of non-'foreign-affairs
;agencies shall accrue annual leave on the same basis as is provided for
employees in the States. Employees abroad use much of this leave
locally for personal business and recreation, so that frequently insuf-
ficient leave is available to permit trips home. Periodic vacations in
the States are seen as desirable for all U.S,, citizen employees.
The home-leave provision allows additional leave for this purpose.
The home leave would be granted at a rate not to exceed 1 week for-
each 4 months. of. service. It is separate and apart from annual and
sick leave. Home leave would be granted only to officers and em-
ployees who have completed at least 24 m6iiths of continuous service
outside the United States. The home-leave provision of this bill is a
permissive provision that would be used only to the extent determined
to be indicated by conditions of employment in particular oversew:
areas.
IX. EXLMPTION FROM INCOME TAX
The bill continues for all agencies exemption of allowances (but
not differential) from income tax (sec. 523).
Existing law and rulings of the Internal Revenue Service provide
that amounts received as cost-of-living allowances are not includible
in gross income. These allowances are not considered as part of basic
compensation for tax purposes.
Amounts recei:ved.'as salary differential to' offset 'conditions of en-
vironment "(not living costs) are considered by existing revenue rul-
ings to be a part of compensation and hence taxable.
This bill makes a number of technical amendments to the Internal
Revenue Code of 1954 Which are necessary in order to conform it to
the changes in legal authorities made by this bill.
The committee recommends amendment of two provisions. of. H.R..
7758.
The first of these provisions as passed by the House extends to.nom-
foreign-affairs agencies authority to snake advance payment of all
allowances. .It..stipulates that these advances of funds, not covered
by allowances accrued, will be recoverable by the Government through
setoff against salary; or other amount due from the Government..
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 Approved For Release 200J/$4/01 : % 9 jjWA ALLOWANCES ACT
The House language with regard to this recoverability contains no
waiver authority, so that in all. cases any advance not later earned
must be recovered.
In order to prevent hardship upon the employee when the nonre-
eoverability is not the fault of the employee, the committee recom-
mends amendment of the bill by the addition of the following lan-
guage to the end of section 202:
The head of the Government agency concerned may, in ac-
cordance with regulations of the President, waive in whole or
in part any right of recovery under this section, if it is shown
that such recovery would be against equity and good con-
science or against the public interest.
The second of these provisions, as passed by the House, extends to
non-foreign-affairs agencies "the cost of transporting dependents"
to and from the United States to obtain secondary or undergraduate
college education. Present authority, extending this benefit to for-
eign affairs agencies (sec. 911(9) of the Foreign' Service Act), uses
the phrase "travel expenses."
The Foreign Service Act language encompasses the usual expenses
of traveling, including transportation costs, per diem, and related
costs.
The language of H.R. 7758; as passed by the House, precludes the
pa ment of more than the ship or airline fare.
The committee recommends amendment of this provision by adopt-
ing the language of the Foreign Service Act.
The following change in the language of section 211 accomplishes
this amendment (new language in italic; old language in black brack-
ets) .
Section 221
(4) An education allowance or payment of [transporta-
tion] travel costs to assist an employee with the extraordi-
nary and necessary expenses not otherwise compensated for, .
incurred by reason of his service in any foreign area or for-
eign areas in providing adequate education for his depend-
ents, as follows:
(B) The [cost of transporting] travel expenses of depend-
ents of an employee to and from a school in the United States
to obtain an American secondary, or undergraduate college
education, not to exceed one trip each way for each dependent
for the purpose of obtaining each type of education; but no
allowance payments under subparagraph (A) of this para-
graph (4) shall be made for any'dependent during the twelve
months following his arrival in the United States for second-
ary education pursuant to authority contained in this subpar
agraph (B). Notwithstanding section 111(6) of this Act,
[transportaion,] travel expenses, for the purpose of obtain-
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 Approed For Release 2
id'91 pGt%415P82Q?a4W10~1;3-9 15
ing undergraduate college education, may be authorized
under this subparagraph (B), under such regulations as the
President may prescribe, for dependents of employees who.
are citizens of the United States stationed in the Canal Zone.
CHANGES IN EXISTING LAW
In compliance with subsection (4) of rule XXIX of the Standing
Rules of the Senate, changes in existing law made by the bill;. as
reported, are shown as follows (existing law proposed to be omitted
is enclosed in black brackets, new matter is ranted in italics, exist
ing 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 Representativm of the
United States of America in Congress assembled, That (a) 'Under
such regulations as the President may prescribe, any 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 permanent 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 ' purpose, be allowed and
paid from Government funds the expenses.of travel of himself and the
expenses of transportation of his- immediate family (or a commutation
thereof. in accordance with the Act of February 14, 1031) and the
expenses of transportation, packing, crating, temporary storage?
drayage, and unpacking of his household goods and personal effects
(not to exceed seven thousand pounds [if uncrated 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 may be made to'tho
officer or employee in accordance with said -regulations 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 author-
ized 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 where the transfer iq
made primarily for-the convenience, or benefit of the officer or employee
or at his request: Provided further, That in case of 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 and transportation in
connection with the transfer of officers and employees to posts of
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3
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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
prescribed by the President: Under such regulations as the President
may prescribe, an : 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 residence and who would otherwise be entitled to transportation
of household goods and personal effects under subsection (a) shahbe
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 imn?.i-
nent danger to.life or property, or adverse living conditions seriously
affecting the health, safety, or accommodations of said.-families, or
upon transfer or assignmcnt,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 ivhic
he cannot take or at which he is unable to use his household goods and
personal effects or whenever the head, (Y' the department concerned au-
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 il, _'RSEAS DIFFERENTIALS AND ALLOWANCI -ACT 17
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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 the 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 a 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 authority of this subsection
during any four-year period, except that, as a replacement for such motor
vehicle, one additional motor vehicle oaf any employee may be so transported
during such period upon approval, in advance, by the head o the depart-
ment concerned and upon a determination, in advance, by such department
head that such replacement is necessary for reasons beyond the control of
the employee and is in the interest of the Government. 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-
pl_oyee who has remained in continuous service outside 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 subsection, authorize the
transportation of privately owned motor vehicles of employees of such
department, assigned to duty outside the continental United States, by
commercial means if available at reasonable rates and under reasonable
conditions or by Government means on a space-available basis. This
subsection shall not apply to the Foreign Service of the United States
under the Department of State and to the Central Intelligence Agency but
shall not affect the authority contained in section 913 of the Foreign Service
Act of 1946 (60 Stat. 1027; 22 U.S.C. 1138) or paragraph (4) of section 4
of the Central Intelligence Agency Act of 1949 (63_Stat. 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 employed 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 such employment, in
accordance with' the Standardized C;overnment Travel Regulations;
Subsistence Expense Act of 7926, as -amended (51 U S,C 821 833)',-`
and the:Act of:l?'ebruary 1 ,' 1831, as.ainendddiby this Pict; and%pe%~
S. Rept. 1647.86-2-3
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 Approved
~r
18 04 1, c G-AS. DIFFERENTIALS AND ALLOWANCES.
For Release 2002/04/01 CIA1tDP92i00o55t0 Orra(~Q61111Y f- Tiiflrrri 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 on 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 he 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 regulations
promulgated by tlie. 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.
- SrEC. 6. Section 10 of the Act of March. 3, 1933 (5 U.S.C. 73h), 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) AppropriatiQns 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 conthiental 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 46. posts of: -duty
outside the continental United states shall not be allowed unless and
until the person selected for appointment; shall: agreo - 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 agencyconcerned andin case of
violation of such- agreement any moneys expended by the United.
States on account of-such-travel andtransportation shall be recoverable
from- the individual concerned as a debt duo 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 alloyved .lu/tless _ such persons :selected
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 Approved For_Release 200 ~Y6;r 6iR- 4~'-'db dbblt6lgbfi 19
for appointment outside the continental United States shall have
served for a minimum period of not less than one nor more than three
years prescribed in advance by the head of the department or agency
concerned or unless separation is for reasons beyond the control of
the individual and acceptable to the department or agency concerned:
Provided further, That expenses of round trip travel 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 further, 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 the place of his actual
residence at the time of his appointment to .such 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 more years of overseas
duty: Provided further, That expenses of `transportation of the iin.-
mediate family and shipment of household effects of any employee
from the post of duty of such employee outside continental 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 transportation or when the public interest
requires the return of the immediate family for compelling 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'provided 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 reimburse 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. p'rescribed' 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 States 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 "at-:time of selection
to their first duty station. Such travel expenses may include per diem
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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 persom
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 .1.944 (5th
U.S.C. App. 1638), (2) when otherwise authorized by law, or (3).
when the reasonable value involved in. any.;one..casp does not exceed,;
$500, sales and contracts of sale by the Government shall be governed.
by the requirements of this section for advertising." , -
(b) Exemp.tions'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-r
ihgs and to subperia :witnesses ;for appearance. at said hearings, wit-,
nesses summoned to: afrd attending sue-h. hearings: shall be entitled to;
the same fees and mileage; -or expenses if-!the; c4se':of,,Government.
dfficers and ;employees;: as provided byi law ,for witnesses attending,
in the United States courts t
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21
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 take 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 for 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, when 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. classificatioi 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 July 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 branch of the Gov-
ernment other than those for the use of 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), at a cost, completely
equipped for operation, and including the value 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;
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"(2) for the maintenance, operation, and repair of a'ny,Gov-
ernment-owned passenger - motor vehicle or aircraft note 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 pars raph 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.
"(c) . 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-
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actions only), and the government of 'the District of Columbia, but
shall not include the Senate, Rouse 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. ~ections 1, 3, 4, 5, 7, 14, and 15 of this Act shall not apply
to persons whose pay and allowances are established by the Pay
Readjustment Act of 1942.
SEC. 20. Sections. 1 and 2 of this Act shall become. effective on the
first day of the third calendar month following the enactment hereof.
SEC. 21. This Act may be cited as the "Administrative Expenses
Act of 1946".
Sec. 20. Under such, regulations. as the President may prescribe,
fands. available to the departments for administrative expenses may
be allotted to posts in foreign countries for the purpose of defraying
the unusual expenses 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 foreign countries as the President may designate.
FOREIGN SERVICE ACT OF 1946
TITLE IV-CATEGORIES AND SALARIES OF PERSONNEL
PART E-CLASSIFICATION
[ADMINISTRATION ESTABLISHMENT OF SALARY DIFFERENTIALS
[SEC. 443. The President may, under such .regulations as he 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 involving extraordi-
narily difficult hiring conditions, excessive physical hardship, or
notably unhealthful conditions: The Secretary shall prepare and
maintain a list of such posts.] ' '
* * * * *
TITLE IX-ALLOWANCES"AND BENEFITS
PART A-ALLOWANCES AND SPECIAL ALLOTMENTS
[QUARTERS,, COST OF LIVINp,, ;AND :REPRESENTATION ALI;OWANC9$
[SEC. 901. In accordance with such regulations as the President
may prescribe and notwithstanding the provisions of section 1765
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 Approved For Release002/04/Dr ~Okl-F92*046M9901Ar1M ACT
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
post 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 fdi' 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
of providing such education, any allowance paid to him shall
be reduced accordingly ; no allowance shall be: paid under this
subparagraph for a dependent for whom a travel allowance
has been paid under?section 911(9)
[(3) allowances in order topprovide for the proper representa-
tion of the United States by officers or employees of the Service]
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IISEAS DIFFERENTIALS AND ALLOWANCE'S IT 25
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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 allowances in order to provide for the proper representation of
the United States by officers or employees of the Service.
[ALLOTMENT FOR OFFICIAL RESIDENCE OF CHEF AMERICAN
REPRESENTATIVE
(4) the cost of packing andtunpacking, transporting to and from.
a place of storage, and storing the furniture and household and
personal effects of an o fj'icer or employee of the Service, 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 at which he,is unable,
to use such furniture and household and personal effects, or 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
exceed the maximum limitations fixed by regulations, when not
otherwise fixed by law;
[(5) the cost of storing the furniture and household 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;ktransporting`to'and'from.`
a place 61 storage, and storing the furniture and household and per-
sonal effects of an officer or employee of the Service in connection
personal effects;]
at that post.
[SEC. 902. The Secretary may, under ;such regulations he may
prescribe, make an allotment of funds to any post to defray the un-
usual expenses incident to the operation ana maintenance of official
residences suitable for principal representatives of the United States
[ACCOUNTING FOR ALLOWANCES'
[SEC. .903. All such allowances and allotments shall be accounted
for to the Secretary in such manner and under such rules and regula-
tions. as the President .may.,preseribe.:;,:,The :Secretary shall; :report all
such expenditures annually to the Congress with the budget estimates
,of the Department.]
PART B-TRAVEL AND RELATED EXPENSES
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 and household and
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 26 O' SEAS DII'F'ERI;ITVTIALS AIADLISO 'AI~CF;
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e~ date of his .de-
assignmen t , . s dparture from his last post or fr,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; rand,'
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 distance 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' 6 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.
CENTRAL INTELLIGENCE AGENCY ACT' OF 1949
AN ACT
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,
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SECTION. 1. That when used in this Act, the term-
(a) " ency" means the Central Intelligence Agency
(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 States and the District
of Columbia.]
w w w w w w w.
TRAVEL, ALLOWANCES, AND RELATED EXPENSES
SEC. 4. [(a)] Under such regulations as the Director may prescriber
the Agency, with respect to its officers and employees 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-
eluding the District of Columbia, shall-
(1) (A) pay the travel expenses of officers and 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 on 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 to a point not more
distant,'or, upon retirement; to the place where 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 furniture and household
and personal effects of an officer or employee of 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 at which he is unable
to'use such furniture and household and personal effects, or 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 exceed
the. maximum limitations fixed ; by regulations, when not `otherwise
fixed by law;
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 28 O1%~EAS DIFFERENTIALS AND ALLOWANCES
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[(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 'b'e' shorter;'
and in connection with separation of an officer or employee of the
Agency, the cost ofpacking 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 e ffects;. 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
limitaliisns.,fxed by regulations,w"hen not otherwisef, ed, by""laic:' "
[(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 em loyee 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,f 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 oftwo;years' continuous service',abro.ad,;or. as
sooas 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 may prescribe; and the time of such work or duty shall not
be counted as 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:4ts Territor es
and possessions, and such. time as may be necessarily occupied
in awaiting transportation.]
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(0 Where an officer or employee on leave returns to the United
States (as described in paragraph (3) (A) of this section), leave ? f
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 Agency, a privately
owned [automobile] motor vehicle in any case [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 transportation. Not more
than one motor vehicle of any officer or employee of the Agency may
be transported under authority of this paragraph 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
s'o 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 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 paragraph of a privately
owned motor vehicle of any officer or employee who 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 transportation of a replacement
for such motor vehicle for such o~cer 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 is authorized to grant
to any officer or employee of the Agency allowances in accordance with
the provisions of section 901(1) and 901(2) of the .Foreign Service
Act of 1946.]
SECTION 8 OF THE UNITED NATIONS PARTICIPATION ACT
OF 1945, AS AMENDED
Snc. 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 accordance with article
17 of the Charter, and for all necessary salaries and expenses of the
representatives provided for in section 2 hereof, and of their appro-
priate staffs, including personal services in the District of Columbia
and elsewhere, without regard to the civil-service laws and the Classi-
.:fieation Act, of :.1923,ra ,amended;I travel expenses without .regard.to
the .Standardized Government Travel Regulation's, as amended, the
Reference made to the Classification Act of 1923, as amended is held and considered to mean the Classi-
fication Act of 1949 (see ? 1106(a) of the Classification Act of 1946, 63 Stat. 972).
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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 22 of the Administrative Expenses Act of
1946, as amended by section 311 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
COVERAGE AND EXEMPTIONS
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;
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. (D) employees of the Canal Zone overnment and t e anama
.Canal Company when employed on the Isthmus of Panama;
(E) commissioned officers of the Public Health Service;
(F) commissioned officers of.the Coast and Geodetic Survey;
(G) doctors, dentists, and nurses in the Department of Medi-
cine and Surgery of the Veterans' Administration;
(H) officers and employees of the Senate and 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 following 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 President 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; and
(C) such other officers (except postmasters, United States
attorneys, and United States marshals) as may be designated
by the President.
No officer in the executive branch of the Government 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 authorize 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 and its Territories and
possessions. Leaves of absence authorized under this subsection
shall not constitute a leave system,; and no such 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.this title applies shall
be entitled to annual leave with. ppa which shall accrue as follows-
(1) one-half day for each full biweekly pay period in the case
of officers and employees with, less than three years..of service,
(2) three-fourths day for each;' full. iwweekly pay,perod (except.
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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 succeedin years
until it .totals 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.]
(1) Persons directly recruited or transferred by the'Federal Government
(A) from the United States, or (B) .from the Commonwealth of Puerto
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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 bnited 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 or organizations, inter-
national organizations in which the United States 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 Forces 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, an the case of an officer or employee (1) who is within
the purview of subsection (d) of this section, (2) whose post of duty is
outside the '' nited States, and (3) who returns on leave to the United
States, or to his place of reside"nce, 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 shall 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 granted 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 several 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 termipal.aeave or
lump-sum payment.] .
(f) Upon completion of twenty-four . months of continuous service
outside the United States,. ofcers, and employees may. be granted, in
accordance with regulations of -the President; leave of absence at a rate
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not 2to exceed one week for.,eacn lour montlcs osuch 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 anv 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 fuaictions 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 oft title IX of the Foreign
Service. Act of 1946, "as amended r (22 U.S.C. 1131), including. an
allowance .for. water as ~ a i-thorized, in,.section .-13 of this Act: shalL be
available for the payment of such allowances in advance.]
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ACT OF JUNE 26, 1930
Be it enacted by the Senate and House of Representatives of the
United States o f America in Congress assembled, That under such
regulations as the heads of the respective departments concerned may
prescribe and. the President approve, civilian officers and 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 allowance for liv-
ing quarters, including heat, fuel, and light, notwithstanding the pro-
visions of section 1765 of the Revised Statutes (U.S.C., title 5, sec.
70) 3: Provided, That said rented quarters [or allowances in lieu
thereof] may be furnished only within the limits of such appropria-
tions as may be made therefor, which appropriations 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 gross income, and
shall be exempt from taxation under this subtitle:
[(1) COST-or-LIVING} ALLOWANCES.-In -the 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 Service 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 ease of civilian
officers and employees of the Government of the United 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., see. 1131 and following),
(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 Differentials and Allowances
Act, or
(D) subsection (e), or (f) of the first section of the Ad-
ministrative Expenses Act of 1946, as amended, or section 22
of such Act.
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 E ALWANCES ~e:.'t
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(R;) Cost-of-living allowances. In the case of civilian officers
or employees of the Government o f the United States stationed
outside the continental United iS"tates (other than Alaska),
amounts (other than amounts received under title II of the Over-
seas Differentials and Allowances Act) received as cost-of-living
allowances in accordance with regulations approved,by the
President.
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