OVERSEAS DIFFERENTIALS AND ALLOWANCES ACT

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP92-00455R000100110014-8
• Release Decision: RIFPUB
• Original Classification: K
• Document Page Count: 67
• Document Creation Date: December 12, 2016
• Document Release Date: March 13, 2002
• Sequence Number: 14
• Publication Date: August 24, 1959
• Content Type: REPORT

Zti~~ I'll " 1959
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86TH CONGRESS HOUSE OF REPRESENTATIVES REPORT
1st Session. No. 902`
OVERSEAS DIFFERENTIALS AND ALLOWANCES ACT
AueusT 14, 1959._-Committed to tlid Comn3ittee' of the Whole House on'"the
Mr. MoiuusoN; from the ;Committee' on = -Post,. Office and., ivil; >
t, t
rb 1 ~?~~
(To aceoi pny H,R. 7,768] ,
The Committee on Post Offiee -aiid'Civil Service, to whom was
referred the bill (E3 R. 7758), to improve the administration of overseas
activities of the Government -df United States, and. for other
purposes,,haRin , considered the s me,xe ort favorably thereon with
amendments an re,6 nmend.shat the b as -amended do ;pass
The amendments are as-foll6w0
'(.1) rage 2,, line 21, strike out and kU) the ;Gene a1 A901in tinge
Office" and insert in lieu thereo f 1, (C)' the tGeneral Accountingffice.
and'4v)'the Library of Conpres,, F, = F
(2) Pa a 28,'".line 13l strike diit "(a), (e),' or,(f)" and~a.nsert in hen;
thereof;e) or (f)
"'(3) Page 28; lino 23, insertydouI lQ~rquotation marks after, the period;
at the end thereof;
(4) Page 28, stake out lino 4 ai d all th follows down;throughthe,
period and.quotation marks in line-7on page,29,,
(5) Pa e 29, line 12 strike ou' Para-" end all that follows dgwnt
through the period in line 16:
Service, submitted the following'
PuliPOSI]',o AMENDMENTS
Amendment No. (1)'extends-the fefiuition Of "Government agency'
contained in section 111(2) of the: bill to cover the Library' `of -Con='
gress. As a result of this amendx~ent, -employees of the Library of
Congress will be eligibld for the allowances and differentials m foreign
aras: provid,eq, by title II. o f tAQ.,iUj .This amondme ,t wi11 assist the
Library of ong ss 1n con .coon with- the;fore gjA,aequisitwns,pro- !
3 4 0 0 8 - 5 4 ) - 1 li t,: 5b~:~ ."I1 i` rf'S , t1Yf{
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 2 _i'ERSEAS DIFFERENTIALS AND ALLOWAN\ ACT
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gram of the Library and certain other activities of the Library in
foreign areas such as activities under section 104(n) of the Agricultural
Trade Development and Assistance Act of 1954 as amended by the Act
of September 6, 1958 (Public Law 85-931). It may be observed that
the employees of the Library of Congress also will receive the benefits,
of the amendments made by titles III and IV of the bill to the. Ad-
ministrative, Expenses Act of 1946 and the Annual and Sick Leave
Act of 1951.
Amendment No. (2) eliminates a reference to subsection (a) 'of the
first section of the Administrative Expenses Act of 1946 contained in
section 912 of the Internal Revenue Code of 1954 as proposed to be
amended by the bill. This reference is unnecessary in view of an,
Qxisting ruling of the Department of the Treasury.:
Amendment No. (3), which is a technical amendment, inserts
double quotation marks at an -appropriate place in the bill.
Amendment No. (4) eliminates from section 912 of the Internal
Revenue Code of 1954 as proposed to be amended by the bill the,
exemption from tax with respect to certain travel expenses proposed'
by the bill as introduced.
Amendment No. (5) eliminates a provision relating to the applica-
tion of paragraph (3) of section 912. of the Internal Revenue Code of
1954 as proposed to be amended by-section 523 (a) of the bill. The
matter is covered by the discussion in the Explanation of the Bill, as
Reported, of such section 912 as amended by the bill.
STATEMENT -
The purpose of H.R. 7758, as set forth in section 101, is to improve
and strengthen the administration of overseas activities of the Gov-'
ernment of the United States. This purpose is to be accomplished
by the establishment of a coordinated and reasonably uniform sys-
tem for more effectively compensating Government employees for
additional costs, and for hardships and inconveniences, incident to
their working assignments in, overseas areas. The bill provides for.
uniformityy of treatment for all overseas employees to the extent
justified by relative conditions of employment. The allowances,
differentials, and expenses authorized by the bill apply, only to citi-
zens of the United States employed by the Government' in, overseas
activities, except as otherwise provided by law.
This legislation carries out the recognized principle that. the Gov-
ernment should provide uniform 'treatment for all of its civilian
employees who are assigned to overseas posts of duty with respect
to additional expenses, necessarily incurred by such, employees in.
relation to their overseas service, which Government employees
within the United States do not incur and with respect to hardships,
inconveniences, and.other differences in environment or., conditions of
employment at overseas posts of duty which justify additional
compensation or allowances.
This legislation is based on an official recommendation submitted
by the Department of Defense-as part of the President's legislative
program in the 85th Congress. , - . .
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Title I of the bill contains a. declaration of Congressional purpose
discussed above, and certain definitions which apply primarilyy to the
allowances and differentials authorized by title II of the bill.
'Title .1
The reported bill will place in effect unanimous recommendations
of the Committee on Post Office and Civil Service of the House of
Representatives set forth in House Report No. 2109, 84th Congress.
The' legislation has been developed through extensive hearings, con-
ferences, and studies conducted during the past four years by the Civil
,Service Subcommittee of the Committee on Post Office and Civil
Service, in cooperation with the Department of Defense, the Depart-
ment of State, the Personnel. Adviser to the President, the United
States Civil Service Commission, the General Accounting Office, and
other agencies having overseas responsibilities.
Over a period of years the Congress and the Executive Branch
have become increasingly concerned with the need for clarification
and strengthening of statutes . and regulations affecting the working
and living conditions of . United States citizens employed overseas.
The importance of. sound and effective personnel policies in the con-
duct of overseas, programs of the Government is well recognized.
United States citizens assigned to overseas civilian posts are responsible
for an important part. of the duties necessary to the success of our
military and economic commitments in foreign countries. These
employees in a sense represent the United States in the eyes of the
world. The success of our programs abroad depends lamely upon
obtaining maximum results from their efforts. The effectiveness of
their performance-and,. consequently, the accomplished results of
entire programs-aredirectly related to the facilities . which the
Government places in their hands to aid them in carrying out their
assigned tasks:.. ,
References to studies of overseas personnel problems beginning in
the 82d Congress, each of which deals at some length with matters
covered by H.R. 7758, appear in Appendix C of this report.
SUMMARY OF MAJOR PROVISIONS OF H.R. 7758
Title .II . .
Title II of the bill represents a consolidation of existing provisions,
coupled with certain additional .authorizations, for the payment of
allowances and differentials to United States citizens employed by
the Government in foreign areas. The allowances and differentials
authorized by title II apply only to United States citizens at foreign
posts and may be paid only in accordance with regulations issued by
the President.
Section 211 of the bill adds for all departments and agencies, new
authority (1) for payment 1 a temporary lodging allowance for a
period not exceeding one month immediately before final departure
of an employee, from an overseas post and (2) for reimbursement of
reasonable expenses incurred for initial repairs, alterations, and im-
provements in order to make substandard living quaxters habitable:
This section extends to departments and agencies (other than those
operating under the Foreign Service Act of 1946 or statutes related
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thereto, which already have such authority). authority (1) to pay a
temporary lodging allowance for a period not exceeding three months
upon first arrival of an employee at a foreign post, (2) to include water
as a utility covered by quarters allowances, and (3) to make advance
payment of quarters allowances. The section continues and consoli-
dates, for all departments and agencies, existing authority to furnish
quarters in foreign areas or to grant allowances in lieu thereof.
Section 221 amends, for all (departments and agencies, existing
authority to grant a separate maintenance allowance for dependents
of an employee in a foreign area so as to permit payment of -such
allowance whore an employee must maintain a separate establishment
for his dependents away from his- post of duty but not "necessarily
outside of the country of assignment. This section continues and
consolidates, for all departments and agencies, authority to pay (1)a
post allowance to compensate for .the difference in local living costs
which are higher than those in Washington, D.C., (2)..'a. transfer
allowance upon assignment of an employee to. duty at any post- in a
foreign -area or at a.post in the United States between foreign assign-
meats, and (3) an allowance for education of an employee's.dependents.
The section continues for departments. and agencies operating! under
the Foreign Service Act of .1946 or -related laws, and adds, foreall
other departments and agencies, authority to provide. transportation
of an employee's dependents for educational purposes.:
Section 231 continues and consolidates, -for all departments and
agencies, existing authority to pay 'a hardship-post differential; not
exceeding 25 percent of basic compensation, for conditions of en-
vironment at foreign posts ; which- warrant. - additional compensation
as a recruitment and retention incentive.
Title III
Title III of the bill consolidates and clarifies existing authorities
for all departments and agencies to-make payment or- reimbursement
for transportation or storage, or both, of certain personal property of
employees who are assigned to overseas duties. This title also
modifies, and extends - to.' other. departments and agencies = certain
authorizations presently'applicable only to departments` and 'a '' enci`es
operating under the Foreign Service Act of 1946 or related legislation.
Section 301 extends to all departments and agencies authority,
similar to. that now available to the Foreign Service and. related
agencies, to pay representation expenses incurred in the promotion of
official policies and .programs.
Section. 311 reenacts' and clarifies existing. Foreign "Service and
Central Intelligence Agency authority to pay the cost of packing and
unpacking, transporting, to and from storage, and storing the furniture
and household and personal effects of employees- assigned to foreign
posts, and extends comparable authority to other departments and
agencies.
Section 321 extends' to ' other d-'epartments and agencies authority,
now applicable only to. departments and' agencies perating under
the Forei n Service Act of,1946 or related legislation, to pay unusual
expenses incident to the operatinh of 'officia residences suitable, for
certain senior representatives of the Un%ted States at foreign posts:,
Section 331 extends; to itil departments a.nd aggencies"authority, now
applicable only. to those aperatm under the Foreign- Service' Act'of
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1946 or related legislation, to transport the privately-owned motor
vehicle of an employee to his overseas post, subject to a general limita-
tion that only one such vehicle may be shipped during each four years
of overseas service. This section also imposes the one-in-four-years
limitation on departments and agencies operating under the Foreign
Service Act of 1946 or related legislation.'
'.Title IV
Title IV extends to all departments and agencies (other than those
operating under the Foreign Service Act of 1946 or related legislation,
which already have such authority) authority to grant home leave,
not exceeding one week for each four months of service, to an employee
who completes twenty-four months of continuous service abroad.
Authority to accumulate up to forty-five days. of annual leave is
extended to employees of departments and agencies operating under
the Foreign Service Act of 1946. or related legislation. This title also
extends certain provisions of the'Annual and Sick Leave Act of 1951,
now applicable to overseas employees who were recruited or trans-
ferred from the United States, to those overseas employees who were
recruited or' transferred from . the Commonwealth of Puerto Rico or
the possessions of the United States.
Title V
Section 501 contains a general appropriation authorization to carry
out the purposes of the bill.
Section 511 contains repeal and amendatory provisions necessary
to conform certain provisions of existing law' to the substantive
provisions of H.R. 7758.
Sections 521 and 522 in effect are savings provisions, continuing
(1) the effect of references in other laws. to. any provision of law re-
pealed, modified; amended, or superseded by this bill and (2) existing
allowances and differentials until appropriate regulations are issued
to replace them under this bill.
Section 523 continues, for all ' departments and agencies, the effect
of the, existing income tax exemptions of foreign areas allowances
(but not differentials) contained in section 912 of the Internal Revenue
Code of 1954.
COST
thirds of all United States citizens working for the Government in
foreign areas., reports that the additional cost of the legislation to the
Department will be $2,972,000. for the fiscal year ending June 30,
1960, and $2,890,000 for each fiscal year thereafter. Overseas em-
ployees affected by this legislation were distributed iii February 1959
among Government agencies, as_follows: '
Department of Defense-----------------------------------------1 21, 085
Department of State (including Foreign Service and, International.
Cooperation Administration) ------------------------------------ 9, 799
United States Information Agency ----------- _-------------- -------- 1,124
All other departments and :1, 335
Total ---- ------
-r----- -- -; -.----------- -- --- ----- 33,343
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material change in the number of such employees is expected in the
foreseeable future.
No additional cost was reported by the Department of State or by
any other department or agency.
The Department of Defense, the Department of State, the United
States Civil Service Commission, the Acting Comptroller General of
the United States, and the Librarian of Congress submitted reports
favoring the principles of H.R. 5007 with certain recommended amend-
ments on the basis of which H.R. 7758 was introduced, after hearings,
to replace H.R. 5007. The Department of the Treasury submitted
a report on H.R. 7758, containing certain recommendations with
respect to the income tax treatment of foreign areas allowances gener-
ally under section 912 of the Internal Revenue Code of ' 1954. The
Committee amendments in the reported bill carry out the recommen-
dation of the Department of the Treasury that the bill not extend or
enlarge existing tax exemptions for such allowances.
Those reports appear immediately following the Explanation of the
Bill, as Reported.
EXPLANATION OF THE BILL, As REPORTED
SHORT TITLE
The first section of the bill immediately preceding title I supplies a
short title for the provisions of the bill by.providing that the proposed
new law may be cited as the "Overseas Differentials and Alll.owances:.
Act".
TITLE I-PURPOSE AND DEFINITIONS
Title I consists of Part A (Purpose) and Part B. (Definitions
PART A-PURPOSE
Section 101 sets forth the. general purpose of the to'im-
prove and strengthen the administration of overseas activities .of the
Government of the United States of America. It is intended that this
general purpose be accomplished by the operation of the bill in four
ways, as follows
(1) By providing a means for more effectively compensating
civilian officers and employees of the Government for extra costs
and hardships incident to their overseas assignments.
(2). By providing for uniform treatment of civilian officers
and employees of the Government stationed overseas to the
extent justified by relative conditions of employment. (Appli-
cation of this principle of uniform treatment will eliminate:
certain inequitable and unjustifiable disparities and differences
which now exist with respect to the treatment of Government
civilian Qfllcers and employees-stationed overseas.)
(3) By establishing the basis for the more efficient and equi-
table administration of the laws compensating Government
civilian officers and employees for extra costs and hardships
incident to their assignments overseas.
(4) By facilitating for the Government the recruitment and
retention of the best qualified personnel for civilian service
overseas.
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Section 111 contains definitions of the terms "Government",
"'Government agency", "employee", "United States", "continental
United States", and "foreign area". These definitions are applicable
with respect to title I, which sets forth the statement of purpose and
these definitions, with respect to title II, which provides for certain
allowances and differentials in foreign areas, and with respect to
section 522 of title V, which provides for the continuation of allow-
ances and differentials provided for under the laws existing immedi-
ately prior to the enactment of the bill until regulations are issued
under the provisions of the bill.
These definitions. do not apply to title III, which relates to certain
miscellaneous expenses, i.e., representation expenses, storage, official
residence expenses, and transportation of motor vehicles; title IV,
which contains amendments to_ the Annual and Sick Leave Act of
1951; and title V (except section' 522), which contains certain appro-
priation, repeal, amendatory, and miscellaneous provisions.
Titles III and IV amend certain existing laws containing in most
instances definitions which do not require any change therein to
serve the purposes of the amendment. In instances where this is
not the case, appropriate language has been added for the purposes
hf the bill. Title V (except section 522) contains amendments and
other provisions not requiring the application of any definitions.
The definitions are as follows:
(1) "Government" means the Government of the United States
of America.
(2) "Government agency" means (A) each executive department
of the Federal Government, (B) each independent establishment or
agency in the executive branch of the Federal Government, including
each corporation wholly owned by the Government (whether owned
:directly or through one or more corporations), (C.) the General
Accounting Office, and (D) by'amendment of the committee, the
Library of Congress.
(3) "Employee" means an individual performing civilian service
-with a Government agency, as defined in the bill, who will be defined
more specifically in regulations to be prescribed by the President of
the United State's. The term "employee" does include specifically,
however, ambassadors, ministers, and officers of the Foreign Service
of the United States under the Department of State.
(4) "United States" (when the term is used in a geographical sense)
means the several States of the United States of America (as now or
hereafter in existence) and the District of Columbia.
(5) "Continental United States" means the several States of the
United States of America, excluding Alaska and Hawaii but including
the District of Columbia.
(6) "Foreign area" means any area situated outside the United
States (as defined in the bill for geographical purposes), and outside
the Commonwealth of Puerto Rico, the Canal Zone, and the pos-
sessions of the United States. The term "foreign area" also includes
the Trust Territory of the Pacific Islands.
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00 NTIA1y IN FOREIGN AREAS
Title II, which covers allowances and differentials in foreign areas,
consists of Part A (General Provisions), Part B (Quarters Allowances),
:Part C (Cost-of-Living Allowances), and Part D (Post Differential).
. Section 201 covers the classes of employees for. whom the allow-
ances and differentials provided by title II may be authorized and to
whom such allowances and differentials may be granted. In general
these allowances and differentials may be authorized for and granted
to an employee officially stationed in a foreign area who is a citizen
of the United States and whose rate of basic compensation is fixed
by statute or without taking into Account the allowances and differ-
entials provided by title II, is fixed by administrative action pursuant
to law or is fixed administratively in conformity with rates paid by
the Government for work of a comparable level of difficulty and
responsibility in the continental United States.
Those allowances and differentials also may be paid to an employee
officially stationed in a foreign area who is not a citizen of the United
States to the extent that the payment of such allowances and differ-
entials to the noncitizen employee is authorized by any provision of
law other than title II of the bill.
The allowances and differentials are provided by title II notwith-
standing section 1765 of the Revised Statutes (5 U.S.C. 70) which
imposes certain restrictions on the receipt of additional pay and extra
allowances of Government employees. In this connection, it should .
be noted that similar allowances and differentials authorized by exist-
ing law may be granted without regard to section 1765 of the Revised
Statutes.
Section 2Q2 provides for the advance of funds to pay the allowances
under title ILand for the recovery of -funds so.advanced which are not
subsequently covered by such allowances.
The allowances granted under title II may be paid in advance or
advance of funds may be made for such allowances. The.payment or
advance of funds will be made through the proper disbursing officer
in such amounts as are advisable in the light of the need therefor and
the period of time during which the.employee or employees concerned
will be required to make expenditures in advance.
An advance of funds which is not subsequently covered by allow-
ances accrued under title TI to the .employee or employees concerned
will be recoverable by the United; ;States Government. Recovery,
may be effected by set off against accrued salary, pay, compensation
amount of retirement credit, or other amount due from the United
States Government to the employee or employees concerned and also
.by such other appropriate method as may be provided by law for
recovery of amounts owing to the .Government.
It is not the purpose of this provision to modify, change, or other-
wise interfere with existing authority contained in section 216 of the
Standardized Regulations. (Government Civilians, Foreign Areas)
to grant special allowances in unusual circumstances.
Section 203 indicates the nature of the regulations governing pay-
ment of allowances and differentials under title II.
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ection 203 requires that sue i allowances and i eren is s shall be
paid in accordance with regulations prescribed by "the President of the
United States. These regulations will establish rules governing pay-
ment of _ such allowances and differentials, the respective rates of
payment, and the foreign areas, the groups of positions and the
categories of employees to which these rates will apply. These regu-
lations also may cover other related matters.
PART B-QUARTERS ALLOWANCES
Section 211 sets forth the various kinds of quarters allowances
which may be granted to employees in foreign areas.
These quarters allowances may be granted to an employee in a
foreign area whenever Government-owned or Government-rented
quarters are not provided for such employee without charge to him,
as follows:
Temporary Lodging Allowance
Paragraph (1) of section 211 provides for a temporary lodging
allowance for the reasonable cost of temporary quarters .which is
incurred by the employee and his family. This temporary lodging
allowance may be granted as follows:
(A) For a period of not in excess of three months after first arrival
at a new post of assignment in. a foreign area or for a period ending
with the occupation of re_ sidence quarters, whichever period is the
shorter.
(B) For a period of not more than one month immediately preced-
ing final departure from the post',foll owing the necessary. evacuation
of residence quarters.
Paragraph (1) consolidates and extends the existing authority (set
forth in clause (A) of such paragraph) to grant temporary lodging
allowances in foreign areas. Such paragraph extends the :temporary
lodging allowance on first arrival to employees of those. Government
agencies .not presently eligible for such allowance.
At present, this allowance is authorized-
(1) for the Foreign Service of the United States under section
901(1). of the Foreign Service Act of 1946 (22 U.S.C.. 1131(1));
(2) for the Central Intelligence Agency under section, 4(b)' of
the Central Intelligence Agency Act of 1949 (50 U.S.C. 403e(b));
(3) for the United States I=nformation Agency on a ,fiscal year
basis by appropriation Act (with respect to the fiscal year ending
Juno 30, 1960, under title IV;'of the Departments of-State and
Justice, the Judiciary, and Related Agencies Appropriation Act,
1960 (73 Stat. 193,? Public Law 86-84);
(4) for the International Cooperation Administration pursuant
to section 527(c) of the Mutual Security Act. of 1954- (22 U.S.C.
1787(c));
(5) for the Foreign Agricultural Service of the Department. of
Agriculture under section, 603: of the Act of August.'28,. 1954'.
(7 U.S.C. 1763); and
(6) for personnel of the Veterans' Administration ;who are
United States citizens and are assigned by the Administrator of'
Veterans' Affairs to the Veterans' Administration office in the
Republic of the Philippines under section 235 of title 38 of the
H. Rent. 902, 80-1-2
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Law 86-116).
Paragraph (1) also adds for all Government agencies a new author-
ity (set forth in clause (B) of such paragraph) to grant a temporary
lodging allowance of not to exceed one month immediately prior to
final departure.
This temporary lodging allowance is intended to cover necessary
and reasonable hotel room expenses incurred by an employee upon
first arrival at a post of assignment in a foreign area while the employee
is locating and arranging for suitable quarters and awaiting arrival
of furniture and household effects. The allowance also may be granted
under similar conditions to an employee who has relinquished resi-
dence quarters immediately prior to his departure from his post of
assignment in a foreign area. Generally, an employee moves to a
hotel fora short period, immediately prior to his departure from his
post of assignment, in order to avoid contracting for another full
month of rent for his quarters and to allow time for completion of
departure arrangements such as settlement of utility bills and prep-
aration of furniture and effects for storage or shipment. The right
to a full month's temporary lodging allowance does not automatically
follow from the receipt of transfer or separation orders; it is expected
that only such portion of the one-month period will be allowed' as
may be justified by the circumstances.
The committee emphasizes that this temporary lodging allowance
will cover only average prices for adequate but not luxurious accom-
modations. Assurance has been given to the committee that this
policy will be spelled out in the administrative regulations governing,
such allowance. In this connection, reference is made to section 220
of the Standardized Regulations (Government Civilians, 'Foreign
Areas), issued by the Secretary of State, set forth in Appendix A of
this report.
It may be noted that paragraph (1) does not contain a provision:
similar to a provision of section 901(1) of the Foreign Service Act of`
1946 (22 U.S.C. 1131(1)) to the effect that the amount of temporary
lodging allowance may not exceed the aggregate amount of the per
diem which would be allowable to the employee for himself and his
family if they were in travel status.
Such provision is omitted for two reasons.
First, the limitation, now applicable to employees subject _ to the
Foreign Service Act of 1946, would `not operate uniformly 'with respect
to other departments and agencies within the purview of title II of this
bill. The Foreign Service Act of 1946 authorizes the allowance of per
diem for an employee subject to such Act and for each member of his
family. No such per diem is authorized for members of the families
of employees in most other departments and agencies.
Second, the temporary lodging allowance is intended to cover only
part of the expenses on which per diem payments are based. The
temporary lodging allowance authorized by paragraph (1) relates
only to quarters, and specifically to hotel room quarters. The
allowance does not extend to expenditures for meals, which are
included in per diem allowances.
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Living Quarters Allowance
Paragraph (2) of section 211 provides for a living quarters allow-
ance for rent, heat, light, fuel, gas, electricity, and water. This
allowance is provided without regard to the limitations of section
3648 of the Revised Statutes (31 U.S.C. 529) providing certain limita-
tions on advances of public money.
Existing authority contained in the Act of June 26, 1930 (5 U.S.C.
118a), provides for Government agencies generally an allowance in
lieu of living quarters in foreign areas, including rent, heat, light, fuel,
gas, and electricity, but not including water.
With respect to those Government agencies closely connected with
the conduct of the foreign relations of the United States and related
matters, a similar living quarters allowance is authorized, as follows:
(1) for the Foreign Service of the United States, under section
901(1) of the Foreign Service Act of 1946 (22 U.S.C. 1131(1));
(2) for the Central Intelligence Agency, under section 4(b) of
the Central Intelligence Agency Act of 1949 (50 U.S.C. 403e(b)).;
(3) for the United States In formation Agency, on a fiscal year
basis, by appropriation Act (with respect to the fiscal year ending
June 30, 1960, under title IV of the Departments of State and
Justice, the Judiciary, and Related Agencies Appropriation Act,
1960 (73 Stat. 193; Public Law 86-84);
(4) for the International Cooperation Administration, under
section 527(c) of the Mutual Security Act of 1954 (22 U.S.C.
-
1787(c));
(5) for the Foreign Agricultural Service of the Department of
Agriculture, under section 603 of the Act of August 28, 1954
(6) for certain personnel of the Veterans' Administration under
section 235 of title 38 of the United States Code as added by the
Act of July 28, 1959 (Public Law 86-116).
However, under sections 13 and 14 of the Act of August 1, 1956
(70 Stat. 892; 5 U.S.C. 170r and 170s), the Foreign Service of the
United States, the Central Intelligence Agency, the United States
Information Agency, the International Cooperation Administration,
the Foreign Agricultural Service of the Department of Agriculture,
and the above-mentioned personnel of the Veterans' Administration.
are granted allowances to cover water in addition to the other utilities
above specified.
Paragraph (2) of section 211.of the bill consolidates and continues
the authority for living quarters allowances for all Government agen-
cies and, in addition, provides'that this living quarters allowance may
cover water in the case of all Government agencies, in addition to other
utilities.
Allowance for Necessary and Reasonable Repairs, Alterations, and
Improvements Under Unusual Circumstances
Paragraph (3) of section 211 provides for an allowance to cover
expenses of initial repairs, alterations, and improvements to an
employee's privately leased residence at a post of assignment in a
foreign area.
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 . -. _...... .., L11JLV W AiN .y AUT
This allowance may be granted only under unusual circumstances.
Approved For Release 2002xpen 9O4l?V AQROPVt- they( 56RDN nsated forary, and reasonable
M
oreover, the expenses must be approved administratively in
advance if the allowance is to be granted.
In addition, the duration and terms of the lease must be such as to
justify the granting of such allowance.
For example, under the foregoing provision the respective Govern-
ment agencies could require that the lease contain provisions which
would permit a change of lessees without change in other provisions
of the lease in order that the quarters concerned could be made avail-
able to another employee in the event of the transfer or separation of
the original tenant. The provisions of paragraph (3) are intended to
insure that the allowance will be subject to strict administrative
controls.
Paragraph (3) constitutes a new authority for all Government agen-
cies to pay or reimburse for the -necessary and reasonable repair,
alteration, and improvement costs fpr quarters leased by an employee
at a post of assignment in a foreign area. At many such posts of
assignment habitable quarters are not obtainable unless the employee
bears substantial costs for necessary: repairs, alterations, and improve-
ments.
The purpose of this allowance to cover repair, alteration, and im-
provement costs is to make sub-standard or uninhabitable dwellings
habitable for the employee.
It is intended that the allowance cover repairs, alterations, and
improvements. which are basic to making a dwelling habitable, such
as installation and repair of plumbing, and wiring or rewiring.
It is not intended that the allowance cover repairs, alterations, and
improvements which are not basic, to making a dwelling habitable,
such as redecorating.
It is the understanding of this committee that the respective Govern-
ment agencies will administer this paragraph in a manner which will
place a ceiling on total cost to the Government.
This committee has approved the allowance provided by paragraph
(3) of section 211 with the understanding that appropriate regulations
will be issued which will 'provide that the total payment'. for such
repairs, alterations, and Impprovem nts_, plus the actual quarters
allowance paid to an 'employee, will not exceed the . maximum
authorized quarters allowance mailable to the employee, without
regard to repairs, alterations,' and improvements, for two years' at
the post of assignment in the foreign ,area concerned.
As a reasonable and satisfactory guide in the administration and
operation of paragraph (3) 'of section 211, the committee calls attention
to Appendix B of this report which sets forth matters for consideration
in the preparation of regulations to carry out the intent of such
paragraph (3). These matters pertain to the coverage of the terms
"repairs", "alterations", and '"improvements" in connection with the
allowances provided by paragraph, (3) of section 211.
PART C-COST-OF-LIVING ALLOWANCES
Section 221 sets forth the various kinds of cost-of-living' allowances
which may be granted to employees in foreign areas. These cost-of-
living allowances may be granted where applicable, as follows:
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Paragraph (1) of section 221 provides for a post allowance to offset
the difference between the cost of living at the post of assignment of
the employee in a foreign area and the cost of living in Washington,
District of Columbia. The post allowance does not cover rent and
utilities, since rent and utilities are covered by quarters allowances.
Authority similar to the authority for post allowances in paragraph
(1) of section 221 of the bill is contained in existing law. -
Section 901(2) (i) of the Foreign Service Act of 1046 (22 U.S.C.
1131(2)(i)) authorizes the Secretary of State to grant post allowances
to employees of the Foreign Service of the United States.
A similar post allowance is made available to the Central Intelli-
gence Agency, the United States Information Agency, the Inter-
national Cooperation Administration, and the Foreign Agricultural
Service of the Department of Agriculture, pursuant to the'provisions
of law specified with respect to those agencies in connection with living
quarters allowances discussed above.
In addition, a similar post allowance also is made available, on a
fiscal year basis, to the executive departments and independent
establishments generally under provisions of appropriation Acts re-
lating to general Government matters. With respect to the fiscal
year ending June 30, 1960, section 203 of the General Government
Matters Appropriation Act, 1960 (73 Stat. 165.; Public Law 86-79),
provides, in part, as follows:
"* * * Appropriations of. the executive departments and
independent establishments for the current fiscal year, -avail-
able for expenses of travel or for the expenses of the activity
concerned, are hereby made available for * * * cost-of-
living allowances similar' to those allowed under section
901(2) of the Foreign Service Act of 1946, in accordance.
with and to the extent prescribed by regulations of the
President, for all civilian officers and employees of the Gov-
ernment permanently stationed in foreign countries * * *" "
Paragraph (1) of section 221 of, the bill , in effect,: consolidates and
continues existing. authority for Government agencies :generally to
.pay 'post. allowances to employees. to compensate ,for. higher living
costs in foreign areas. Paragraph (1) does not, however, authorize
payment of additional compensation as, a recruitment or retention
incentive based on conditions of; environment.
Transfer, Allowance,.
Paragraph (2) of section 221 provides for a transfer allowance for
extraordinary, necessary, and reasonable `expenses (not otherwise
compensated 'for) incurred by an employee incident to establishing
himself at any post of assignment in a foreign area or at a post of
assignment in the United States between assignment to posts in foreign
areas.
This transfer allowance. will cover, for example, initial costs. and
unusual out-of-pocket expenses in connection with transfer to a post
of assignment in a foreign area where, for example, a different type of
clothing is required or electrical 'equipment of `a different voltage is
necessary.
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 14 JVERSEAS DIFFERENTIALS AND ALLOW N 3 ACT
Approved For Release 2002/9,4/Q!]e: 00? IIo ante is provided for
the Forei
n S
i
f
g
erv
ce o
the United States by section 901(2) (ii) of the
Foreign Service Act of 1946 (22 U.S.C. 1131(2) (ii)).
A similar transfer allowance also is made available to the Central
Intelligence Agency, the United States Information Agency; the
International Cooperation Administration, and the Foreign Agricul-
tural Service of the Department of Agriculture, pursuant to the pro-
visions of law specified with respect to those agencies in connection
with living quarters allowances discussed above.
A similar transfer allowance also is made available, on a fiscal year
basis, to the executive departments and independent establishments
generally under provisions of appropriation A' ,s covering general
Government matters. With respect to the fis,,al year ending June 30,
1960, section 203 of the General Government Matters Appropriation
Act, 1960 (referred to above), provides authority for such transfer
allowance by reference to cost-of-living allowances similar to those
allowed under section 901(2) of the Foreign Service Act of 1946, as
stated above in connection with post allowances.
Paragraph (2) of section 221 of the bill, in effect, consolidates and
continues existing authority for Government agencies generally to
pay a transfer allowance on the assignment of an employee to duty at
any post in a foreign area and at a post in the United States between
assignments to duty at posts in foreign areas.
Separate Maintenance Allowance
Paragraph (3) of section 221 provides for a separate maintenance
allowance.
The separate maintenance allowance is intended to assist. an em-
ployee who is compelled, by reason of dangerous, notably unhealthful,
or excessively adverse living conditions at his post of assignment in a
foreign area or for the convenience of the Government, to meet the
additional expense of maintaining, , elsewhere than at such post of
assignment, his wife or his dependents, or both.
This separate maintenance allowance is similar to. the allowance
now provided for the Foreign Service of the United States by section
901(2) (iii) of the Foreign Service Act of 1946 (22 U.S.C. 1131(2) (iii)).
A similar separate maintenance: allowance also is made available
to the Central Intelligence Agency, the United States Information
Agency, the International Cooperation Administration, and the
Foreign Agricultural Service of the Department of Agriculture,
pursuant to the provisions of law specified with respect to those
agencies in connection with living quarters allowances discussed above.
A similar allowance also is made. available, on a fiscal year basis,
to the executive departments and agencies generally under provisions
of appropriation Acts relating to. general Government matters.
With respect to the fiscal year ending June 30, .1960, section 203 of the
General Government Matters Appropriation Act, 1960, provides such
allowance to executive departments and agencies in the manner stated
above.
Paragraph (3) of section 221 of the bill consolidates,, with, one
important change, the existing authority for Government. agencies to
pay separate maintenance allowances.
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 OVERx
S DIFFERENTIALS AND ALLOWANCES A( 15
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+ xistin law authorizes payment o the allowance to help meet the
additional cost when an employee is compelled, because of adverse
conditions at his post, to maintain his wife and minor children else-
where than in the country of assignment.
Paragraph (3) of section 221 of the bill authorizes payment of the
allowance to help meet the cost, in the same circumstances, of mainte-
nance of a wife or dependents or both at any place other than the post
of assignment. Paragraph (3) will permit payment of the separate
maintenance allowance in those cases in which it is essential that the
employee maintain his family away from the post of assignment
although not necessarily outside the country of assignment.
For example, it might be necessary for an employee stationed. in a
foreign area to send his family away from his post of assignment in
time of protracted rioting and violence followed by plague. Under
the new paragraph (3), it will not be necessary that the employee send
his family out of the country to be entitled to the separate maintenance
allowance.
Education. Allowance
Paragraph (4) of section 221 provides for an education allowance
or payment of transportation costs to assist an employee with the
extraordinary and necessary expenses (not otherwise compensated
for), incurred by reason of the service of the employee in a foreign
area or areas, in providing adequate education for his dependents.
Subparagraph (A) of paragraph (4) of section 221 of the bill pro-
vides for an allowance not to exceed the cost of obtaining such ele
mentary and secondary educational services as are ordinarily provided
without charge by the public schools in the United States,. plus (in
those cases where adequate schools are not available at the employee's
post) board and room and periodic transportation between such post
and the nearest locality where adequate schools are available. This
allowance may be granted without regard to the limitations of sec=tion 3648 of the Revised Statutes, pertaining to certain. prohibitions
on advances of public money. It is required that the amount 'of the
allowance granted be determined on the basis of the educational
facility used.
At present, this allowance is provided for the Foreign Service of the
United States by section 901(2).(iv) of the Foreign Service Act of 1946
(22 U.S.C. 1131(2) (iv . .
Allowances similar to the allowances provided by section 901(2) (iv)
of the Foreign Service Act of 1946 are provided for the Central Intelli-
gence Agency, the United States Information Agency, the Inter-
national Cooperation Administration, and the Foreign Agricultural
Service of the Department of Agriculture, pursuant to the provisions'
of law specified with respect to those agencies.in connection with living
quarters allowances discussed. above.
A similar allowance also is made available, on. a fiscal year basis, to
the executive departments and independent agencies generally pursu-
ant to appropriation Acts relating to eneral Government matters.
With respect to the fiscal year ending Juno 30, 1960, section 203 of
the General Government Matters, Appropriation Act, 1960 (referred
to above) provides authority for such allowance.
Subparagraph (A) of paragraph (4) of section 221 of the bill in
effect consolidates and continues the existing authority for. Govern-
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 Approved
(2) to personnel of the Foreign Agricultural Service of the
Department of Agriculture under'section 603 of the Act of August
28, 1054,(7 U S.C. 1763) ;
(3) to personnel, of the' International Cooperation Administra-
tion employed _under'section' 527 (c) , of the Mutual Security Act
of 1954 (22 U.S.C. 1787(e)); and
(4) to, personnel of ,the United ?tates Information Agencyy on
a fiscal year basis by appro'priatioin Act (with respect to the fiscal
year ending June 30 1960, under title IV of the Departments of
State; and Justice, t'he `JUdjci ry, and Related Agencies Appro-
priation Act, 1960 (73 Stat ' 193 Public Law 86-84)).
Section' 911(9) of the Foreign` Service Act of 1946 (22- U.S.C.
1136(9)) authorizes the payment of'expenses'of travel, including per
diem in lieu of subsistence, of deponden.ts of personnel of theForeign
Service of the United States.' The Foreign Agricultural Service of
the Department of Agriculture, the International Cooperation` Ad-
ministration, and the United States Information Agency are au-'
thor'ized to utilize the' authority granted in section. 911(9) of the
Foreign Service Act of 1046 'with respect `to payment of such travel
expenses., ', Although' section 511(a) (1) `of "this bill repeals section
911(9) of the Foreign Service Act. of 19467 it is the intent of this
(1). to. the Foreign Service of :'the United States under section
At the present time, the travel payment provided by subparagraph
paragraph (B) but the' employee would be entitled to an
allowance under subparagraph'(A.
(3) the child could'be sent to the United States for secondary
(1) a child of high school agge could be entered in a secondary
school in a foreign area and` "applicable allowance would be
payable under subparagraph (A); or
(2) the child could be sent to the United States for secondary
education with the cost of the trip being paid under subparagraph
(B) but without entitlement by his employee parent to the
allowance under sub aragraph' (A) during the twelve-month
period immediately following ' the arrival of the child in the
United States for secondary education; or
subparagraph (B).
Under para a h (4) of section 221, of the bill-
Subparagraph, (1) of paragraph (4) of section 221 of the bill pro-
vides for a payment covering the expenses of travel of dependents of
an employee to and from a school in the United States to obtain an
American secondary or undergraduate -college education.
Such travel payment may be made for not more than one trip
each way for each dependent for the purpose of obtaining each type
of education.
Subparagraph (B) of paragraph (4) specifically provides, however,
that no allowance payments for educational purposes under sub-
paragraph (A) of such paragraph (4) shall be made for any dependent
during the twelve-month period immediately following the arrival of
the dependent in the United States for secondary education under
For Release 20d f104/0T--id1 PW' 1mp11181 ACT
ment agencies generally to grant an allowance of the type described
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 Apprd For Release 206OS'Rbb'I 17
;bed
)ro-
of
an
yip
Fpo
rer,
ab-
;nt
of
ier
ry
be
committee that subparagraph (B) of ptirabraph '(4) of section'221 of
this bill Will continue in effect the authority so repealed.
Subparagraph (B) of paragraph (4) of section 221 of the. bill con
solidates the travel payment authority (similar` to 'that provided b '':
such subparagraph (B)) granted under" existing law and extends such
travel payment authority, to, those Government agencies which are
not authorized to make such payments at the present time.
The. language of subparagraph (B)' differs slightly ' from present
statutory language in two respects:
First, 'the new language limits the prohibition on payment of allow
ances when transportation to the United States is authorized 'or
secondary education purposes to` the 12 months following arrival in
the United States. Present statutory language ha's been interpreted
to prevent the authorization of educational travel fora child on whose,
behalf an education allowance, was granted in the fir'st year, for. ox-
ample, of secondary" school even-though the parent' has been trans
ferred to another post at which _sgcondary education is"hot available.
This change in language is inten4'ed onl to provide needed flexibilityy
without changing the basic principle that `education" allowances will
not be available to a parent whose child has been transported to the.
United States at Government expense ,for the purpose of securing
secondary education and continues to be educated,ii the United States.
Second, the new language permits travel to the school or college the
dependent is to enter rather than.. only to, the nearest port of "entry'' as"'
is presently the case.
In addition, subparagraph (B), of paragraph (4) of section 221 of,
the bill contains a provision whl..ch authorizes the payment of travel,.
expenses, under regulations to be prescribed by the Presidexit,: for the,
purpose`, of obtaining undergraduate college. education only, for de-
pendents of employees who are citizens of the United States stationed'
in' the Canal Zone. The provision waives section 131(6) of the bill
which defines ' the term "foreign area" as excluding the Canal Zone:
PART D-POST DIFFERENTIAL
Section 231 of the bill provides for a post differential -similar to that
coatamod lh existing law.
t T6:'-post differential may be granted on the basis of conditions of
environment . which=
(1) differ substantially from conditions of environment in the-
continental United States, and
(2) warrant additional compensation as an incentive for. the
recruitment of an individual for, and his retention in,'employent
under such conditions of environment.
The purpose of the post differential authorized by section 231 of
the bill is to compensate employees for undesirable conditions of en-
vironment which exist at some, posts of assignment in foreign areas.
These undesirable conditions of environment may take the form of
physical hardships, hazards to health, and difficult conditions of living
generally. This post differential,1herefore, will serve as an.incentive'
in,therecruitment and retention pf "personnel to'be'employed at such.'
locations.
Section 231 retains the 'existing `limitation on the ' amount of post
differential which may be paid under such section' by providing that
I3. Rept. 902, 86-1-3
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 18 V, MRSEAS DIFFERENTIALS AND ALLOWAN&ax>' A
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additional compensation paid as a post differential shall not exceed, in:
any instance, 25 per centum of the rate of basic compensation.
Section 231 of the bill contains an exception to that provision in
section 201 of the bill which states that "* * * allowances and
differentials provided by this title are authorized for and may be
granted only to an employee officially stationed in a foreign area
unless otherwise provided in this title * * * This exception is to
the effect that the post differential also ' may be granted to any em-
ployee who is officially stationed in the United States and who is on
extended detail in a foreign area. Under section 142 of the Standard-
ized Regulations (Government Civilians, Foreign Areas), the term.
"extended detail" is defined as a detail of at least 42 days at the post
in the foreign area. The committee understands that this minimum
requirement of 42 days will be continued with respect to the term.
"extended detail" in the regulations which will implement section 231'
of this bill. Continuation of the 42-day minimum requirement will.
prevent payment of post differentials to employees officially stationed
in the United States who make only short trips to foreign areas.
The committee understands that the same limitation of 42 days,
also will apply to employees. stationed at a post in a foreign area who
are detailed to a post for which a post differential is prescribed.
.Section 231 of the bill continues and consolidates the authority now-
contained in existing law for the payment of post differentials at
foreign posts.
Section 443 of the Foreign Service Act of 1946 (22 U.S.C. 888)
which is repealed by section 511(a) (1) of the bill, now. provides that
the 'President, under such regulations as he may prescribe, may
establish rates of salary differential not exceeding 25 ,per centum of-
basic salary for Foreign Service officers, Reserve officers, and staff-
officers.. and employees assigned to' posts involving extraordinarily
difficult living conditions, excessive physical hardship, or notably:
unhealthful conditions.' The Secretary of State maintains a: list "of'
such posts. ' -
Section 207 of the Independent, Offices Appropriation Act, 1949
(5 U.S.C. 118h), provides, in part `"that certain appropriations or
funds available to the . executive departments and agencies, inde-
ponden t establishments, and ' certain Government. corporations
available for payment of salaries and compensation to.; persons
stationed outside the continental United States` or in Alaska, whose
rates of basic compensation are fixed by statute, shall be available'
for the payment of additional compensation (not to :exceed.25 per
centum of the rate .of basic compensation). to such persons, based on.
living costs substantially higher than .in the District of Columbia, j
or based on conditions of environment which differ substantially +
from conditions of environment in the States and warrant additional
compensation as a recruitment incentive, or based on. both such I
factors.
Section 207 of the .Independent ..Offices Appropriation Act, 1949,
also provides that no additional compensation based on living costs
substantially higher than. in the District of Columbia shall . be paid.-
under such section to. any person entitled to receive a, cost-of-living.
allowance under section 901(2) of the Foreign Service Act of -1946,1
(22 U.S.C. 1131(2) (i)) or an allowance similar.thereto under. other
law. The effect of this prohibition -is retained and expanded with
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 Apved For Release
1 nT~O@~~~~8 19
respect to the allowances and differentials provided by title II of
this bill.
It is the intention of the committee that the provisions of title II
of this bill shall supersede the provisions of section, 207 of the Inde-
pendent Offices Appropriation Act, 1949, with respect to the authori-
zation, granting,- and payment of the additional compensation to
employees stationed in foreign areas. Thus, title II of this bill will
preempt the field with respect to allowances and differentials under
such title and the provisions of section 207 of the Independent Offices.
Appropriation Act, 1949, no longer will be applicable to employees
in foreign areas who are within the purview of title II of this bill.
It is not the purpose of this bill to modify or change the. application
and operation of section 207 of the Independent Offices Appropriation
Act, 1949, except to the extent stated above. For this reason, this
bill does not repeal such section 207 and does not affect its applica-
tion and operation otherwise than as provided in title II of this.bill.
For example, the payment of. additional. compensation under such
section 207 to persons stationed in Alaska is not affected in any way
by this bill.
Title III, which covers the granting and payment of certain mis-
cellaneous expenses to Government officers and employees assigned
to posts of duty outside the United States, consists of Part A (Repre-
sentation Expenses), Part B (Storage), Part C (Official Residence
Expenses),.and Part D (Transportation of Motor Vehicles).
PART A-REPRESENTATION EXPENSES
Section 301 amends the Administrative Expenses Act of 1946
(60 Stat. 806) by adding at the end thereof anew section 22 authorizing
the use by all departments and agencies of the Government of ad=
ministrative expense funds for representation purposes in the promo-
tion of official policies and programs. The general purpose of the
amendment is to provide for the conduct of official relations by
representatives of the Government of the United States in a manner
which will compare favorably with the conduct of'such relations by
representatives of other nations, without the necessity for incurring
personal costs by 'such representatives of the United States.
Present authority for payment of representation expenses is con-
tained in 'section 901(3) of the Foreign Service Act of 1946, 'which
authorizes allowances for the proper representation of the United
States. Such. section 901(3) is repealed by section 511(a) (1) of the
bill and the uthority contained '"therein is transferred to-'the new
section 522 which. is added to the Administrative Expenses Act of
1946 by section 301 of the bill.
Authority for the payment by all departments and agEencies of
representation expenses is included in the Administrative Expenses
Act of 1946 in order to reflect the fact that such expenses constitute
one of the normal and recurring operating expenses incident to certain
types of activities conducted not only by the Foreign Service, but by
certain other departments and agencies as well, in the field`of foreign
relations and operations.
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Section 301 will make-uniform authority available to all departments
as and to resident
i
f
gn are
ore
and agencies which conduct operations in
,.i. +ho TTnitnd States
missions LO illttllilublvllal v+~w+==~w~? ~~
Delegation to the United Nations. However, it is contemplated that
d to make use of such
ill
i
n
nee
c
es w
only a very few departments and age
authority. Regulations prescribed by the President will define the
it
h
y.
or
conditions, and control the use, of the aut
PART B-STORAGE
311 is to provide the basis for the
ti
f
e
e
on
c
s
o
The general purpos
cies of authority for payment of
e
d
n
ag
extension to all departments an
the costs of storage of furniture and household and personal effects of
rtain related expenses,
d of
a
ce
n
employees assigned to foreign posts,
ity for the payment of such expenses
th
or
which is comparable to the au
now contained in section 911 of the Foreign Service Act of 1946, with
respect to the Foreign Service of the' United States, and in similar
provisions of law with' respect to certain other agencies. . One effect
a basis for payment or reimburse`
id
e
of the amendment will be to prov
ment of such expenses of all Government employees assigned to foreign 11
sis
b
bl
i
.
a
e
ta
posts on a reasonably uniform and equ
Subsection (a) of section 311 amends paragraphs (4) and, (5) o
section 911 of the .Foreign Service`, Act of 1946 These paragraph
e of furniturean.
a
to
of
t
r
g
s
s
presently authorize the payment of cos
household and personal effects of officersandnem iloyees in' when ei
Service (and certain I L11n, asv.-.-a-~? ---;f
employees are absent from their posts assignment unde> orders o
h they cannot take or at which they ar
whi
c
are assigned to posts to
and household and ppersonal effects,. o
i
ture
unable to use their furn
(2) when it would be'in.the public interest or would be more econoimea
ay quarters allowances while
to
le
x
f
p
,.
amp
or e
to pay such costs than,
employees are away from their posts under orders or to pay transpor
es from one location to :another.
l
f
oye
or emp
tation costs
The amendment effects .four, changes' in paragraphs (4) and (5)
46
.
section 911 of the Foreign Service Act of 1.9
The first change eliminates from paragraph. (4) language which ha
ts to those instance
c
os
the effect of limiting the payment of storage
and househodc
nitur
fu
hi
o
e
r
s
ve
in which the employee `is unable to m
and personal. effects to anew post of assignment bee'ause.of emergence
e costs may be ,authorized;
f stora
t
g
o
Under the amendment, paymen
upon transfer, of an employe ~, withou nA the h sl of been accomplished cii
_-?;.e
f
A
August _,
ct o
effect, by section 2(u) of the
84th Congress)....
Second, the amendment adds to the existing, paragraph. (b) autho
such furniture and hens
ackin
$
g
,unp
ity to pay the cost of packing an
hold and personal el teas'. in conneetion.with the transportation.tiierep
tatutory basisfor 11w ion
a
id
s
e
to and from storage?in order, to prov
established and recognized practiee under which such costs. -are cor
r
to transp
horit
a
of
fl
y
ut
sidered as nocossarily incidental., to the ;
store such, furniture ;and household; ,and personal effects ? tfi,1l
therefore , will be to continue, but not to extend,, existing;practice..
and unpacking.
ckin
h
f
g
pa
suc
respect to payment of the costs o
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 OVERs S DIFFERENTIALS AND ALLOWANCE$ A 21
roved For ajR AQj(QAt:a iRPPc?j AWa` R@1 jQ AAme,
a specific limitation to the effect that in no instance shall the weight
or volume of the articles stored, together with the weight or volume
of the articles transported, under authority of such paragraph, . exceed
the maximum weight and volume limitations fixed by regulations,
when not otherwise fixed by law.
Fourth, the amendment adds to paragraph (5) the authority to. pay
the cost of packing and unpacking, transporting to and from a place
of storage, and storing for a period of not to exceed three months the
furniture and household and personal effects of an officer or em. ployee,
in the Foreign Service who is being separated from the Foreign Service..
Under existing law, these costs are borne by such. officer or employee
until a firm decision can be made with respect to his permanernt place.
of residence after separation. The amendment will allow; such, an
officer or employee a reasonable time during which his furniture. and.
household and personal effects may be stored pending the completion
of arrangements for his permanent residence following his, separation
froze the: Foreign Service after- having served. ninny years abroad i n
most instances.
Subsection (b). of section 3.),l, amends paragraphs (1). (D) And(E)
of section 4 :of the Central lntelligenc?. Agency Act of 1949, wh
relate to payment of the cost of packing and unpacking,. trauspoorting
to and from places of storage; and storing of furniture and household
and personal effects of employees of the Central lntelligency Ag ency,
The effect of such paragrap s. (1) (D) and. (E), as s? amended,
10.
identical to the effect of paragraphs (4) and (5) if section 911. of, the
Foreign Service Act of 1946, as amended by, section 311(a) of the. h
and as explained above. The amendment made by, subsection (b),
effects no m,aj:or change. in existing practices by the Central Intelli,
gence Agency except that (1) storage of ft iture azid household and,
personal effects is authorized for an employee,ab.,rgs,d whepnit is deter''
mined to be in the public interest or to 1,)e more economical th{&n, to.
ship. such articles and (2) storage of such articles is authorized, for
a period not to exceed three months, upon departure of an. emplgyee
from a post abroad or upon separation of an empplo :ee.
Section 311(c).(1) amends the, first section Qf, the Administratkv4
Expenses Act of 1946 so as to eliminate the existing 8,750 pound
maximum limitation on crated shipments of household. effects of civil-
ian employees which has proved completely unrealistic and has placed
an unfair financial burden on many employees. This amendment
makes no change in the existing maximum limitation of 7,OQQ pounds
uncrated on the shipment of such household, effects. Necessary pack-.
ing and crating for overseas shipment of household. effects increases
the., gross weight of such shipments (to. which, the existin ' 8:,75,0,
pound maximum limitation applies) by an average of approximately
90 percent. This existing limitation on crated shipments : has the,
effect of reducing the maximum net weight limitation on a shipment
of household effects consigned overseas to an. average of something
under 4,000 pounds. The amendment .provides, a reasonable and
appropriate maximum limitation for overseas shipments of household
effects, stated in terms of not weight in lieu of the previous gross
weight limitation, and will permit employees going overseas.ta, ship
household effects to the same extent, and in the same quantity, as
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 22 'ERSEAS DIFFERENTIALS AND ALLOWA ACT
Approved For Release 20 #061 tt FJ8- PI,9&( U~5R9R.I 1 PAMeption with transfers
of employees within the United States.
Section 311(c) (2) amends the first section of the Administrative
Expenses Act of 1946 by adding a new subsection (e) at. the end
thereof. Such subsection (e) authorizes the storage at Government
expense of household goods and personal effects of employees who are
assigned to permanent duty stations outside the continental United
States when it is determined that such employees cannot take their
goods and effects to their duty stations or that they are unable to use
such goods and effects at such stations. The new subsection (e) also
authorizes the head of each department or agency concerned to pro-
vide for storage of.goods and effects, in lieu of-shipment overseas, for
reasons of economy or when in the public interest. The storage of
household goods and personal effects under the subsection will be in
accordance with regulations to be prescribed by the President and
the weight of such goods and effects which may be stored at Govern-
ment expense will be subject to maximum weight limitations identical
to the maximum weight limitations governing the shipment Of such
goods and effects.
Section 311(d) clarifies, the meanings of various terms applied to
furniture, household goods, and personal effects which appear in the
Foreign Service Act of 1946, the Central Intelligence Agency. Act of
1949, and the Administrative Expenses Act of 1946. It is the intent
of the, committee that such clarification and other provisions contained
in the amendatory language shall provide the asis for maximum
practicable uniformity in the treatment of storage, packing 'and
unpacking for storage, and transportation of the goods and effects .f
officers and employees in the several departments and agencies to
which such Acts apply. " In this connection, it is to be noted that the
amendment made by section 311(d) authorizes the President, with
respect to the Administrative Expenses Act of 1946, the Secretary of
State, with respect _to the Foreign Service Act of 1946, and the Director
of Central. Intelligence,' with respect to the Central Intelligence
Agency Act-of 1949, to make appropriate determinations governing
the terms "furniture and household and personal effects" and "house=
hold goods and personal eflects" as used in such Acts.
PART C-OFFICIAL RESIDENCE EXPENSES
Section 321(a) amends- the Administrative Expenses' Act of 1946
(as amended by section 301. of the bill) by adding at the' end thereof
a new section 23' authorizing the use by all departments and agen-
cies of the Government of -administrative expense funds to defray
unusual expenses-incident to the operation and maintenance of offi-
cial residences suitable for the chief representatives of the United
States at posts in foreign countries and such other senior officials of
the United 'States in foreign countries as the President may designate.
The general purpose of this amendment is similar to the purpose. of
the amendment made by`section 301 of the bill, but the expenses to be
paid -differ somewhat from the expenses authorized to be paid
thereunder.
Allotment of funds under the new section 23 will be subject to reg-
ulations prescribed by the President and, in general, this allotment
of funds will be of the type and kind for which existing authority is
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 provided, with respect to the Department of State, in section 902 of
the Foreign Service Act of 1946, which is repealed by section 511(a) (1)
of the bill.
The Department of State has been, and will remain, the principal
user of the authority contained in the new section 23 of the Admin-
istrative Expenses Act of 1946. However, other departments and
agencies on occasion undoubtedly will have need to use the authority.
It is intended, and the committee has received full assurance, that
this authority will continue to be used very sparingly and that its
use for other than chief representatives of the United States at for-
eign posts will be strictly limited to unusual circumstances involving
actual necessity.
The chief representatives, and at times other senior officials,
of the United States who are stationed at foreign posts are compelled,
in the best interests of their Government, to maintain residences of
-a type which would not be necessary except for the positions of con-
spicuous responsiblity which they occupy at their foreign posts.
As principal representatives of the United States, they are persons of
major importance locally and must maintain suitably dignified rela=
Lions with the highest level of - local officials, residents, visitors, and
representatives of other nations. They are expected, and in, a sense
required, to meet and associate socially with dignitaries of other
=nations as a part of their official duties for. the Government of the
United States. Apart and aside from the physical need for a residence
establishment of adequate size and appointments, the factor of na-
tional prestige is highly important in furthering the interests of the
United States. Chief representatives and senior officials of -the Gov-
ernment largely represent the United States in the eyes of the officials
and the citizens of the countries in which they serve. These repre-
sentatives. and officials serve on a twenty-four hour a day basis, and
the operation of their . personal residences is as important a part of
their responsibilities as the operation of their, official headquarters.
The authority contained in the new, section 23 will not permit
reimbursement to any individual for the ordinary, household expenses
which he. would incur in any case. The authority is intended to ex-
tend. only to the additional expenses necessarily- incurred-, by - chief
representatives. and. senior officials of_the Government: in maintaining
residences which are, commensurate with their, positions as important
representatives of the United. States abroad. Such additional ex-
penses may include salaries and subsistence of .servants and the cost
of upkeep and repair for residences which are larger and more elaborate
than otherwise would be required.
PART D-`-TRANSPORTATION OF MOTOR VEHICLES
Section 331 adds a new subsection (f) at the end of the first section
of the Administrative Expenses Act.of 1946., authorizing the trans-
portation at Government expense of privately-owned motor vehicles
of civilian employees assigned to duty outside the United States.
Transportation of motor vehicles, under subsection (f) will be author-
izedonly upon a determination by the department or agency head
concerned that it is in the interest of the Government for the employee
to have the use of the motor vehicle at his post of duty. Transporta-
tion of a replacement motor vehicle is authorized after four years of
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 24 ERSEAS DIFFERENTIALS AND ALLOWAN ACT
oc?Oiisportation of a
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replacement motor vehicle prior to the completion of four years of
continuous service by an employee is authorized only upon the basis
of a determination in .advance by the department or agency head
that a replacement vehicle is, necessary in the interest of the Govern-
mont and for reasons which are beyond the. control of the employee..
This replacement provision is intended to be used only in cases such
as those involving rapid deterioration of a vehicle due to severe
climatic conditions or loss of a vehicle through fire, theft, or similar
cause. Transportation of employees' motor vehicles is authorized
by commercial means if available at reasonable rates, or by Govern-
ment means on a space-available basis. The new subsection (f) does
not apply to the Foreign Service of the United States under the
Department of State, the International Cooperation Administration.
the United States Information Agency, the Foreign Agricultural
Service of the Department of Agriculture, or the Central Intelli ence
Agency. Provisions for the transportation of motor vehicles of ocers
and employees. in those agencies are contained in the amendments
made by sections 332 and 333 of the, bill.
The committee was given specific assurance that this authority for
the transportation of privately owned motor vehicles would be
strictly administered to insure that such transportation wbe authQr-
loyee's motor vehile
ized only where it is clear that the use of an emp
will contribute to. effectiveness in the performance of official duties, is
desirable and suitable under.loeal conditions, is in the interest of the
Government, and is not solely for personal convenience of the em-
ployee. The following colloquy during the hearings on H.R., 5007
n
t:
and H. R. 5009 further ampes this administrative inte
Mr. PORTEn. Now this transportation of household goods
and motor vehicles, we have had allegations from time to
time about abuses in this area.. I know of one case recentlg
which may or may not have been abused, where a man took
his car overseas and then sold it for quite a profit. Are there
controls over that sort of thing? .
an
*
_
y~
Mr. JACKSON [Deputy Assistant Secretary of Defense
(Manpower, Personnel and Reserve)]. We have had, if I
may say a rather top=level committee. working intensely on
li
has more leewa with regard to shipments than lians
without this bil R'e are very -much concerned, not only
from the possibility of making a profit in an individual case,
but we are coneerned.with the effect on the host countries
where in some instances the economy is very low and the
means of transportation are not at all comparable=in' ize'aid
what seems, to them to be very luxurious type of vehicles.
There has been a very marked consciousness of this and
efforts to decrease, this unfavorable impact on the local
people. I am confident, and I am prepared to state this. for
the record at this time, that as far as the Defense Department
is concerned, and I am sure the State and other agencies are
conscious of this, that the authorization of transportation of
motor vehicles will be very austerely administered, for :the
civilians I am talking about.
tary
the pro lem as it, involves the military, because the mi
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 g1A4-8 25
The committee intends to maintain a close watch of the costs in-
curred in the transportation of privately owned motor vehicles under
part D of title III of the bill,
Section 332 amends section 913 of the Foreign Service Act of 1946
(under which transportation is authorized at Government expense for
privately-owned automobiles of officers and employees of the .Foreign
Service, the International Cooperation Administration, the United
States Information Agency, and the Foreign Agricultural Service of
the Department of Agriculture) so as to conform the authority con-
tained in such section with the authority for shipment at Government
expense of privately-owned' motor vehicles of employees of other
departments and agencies contained in the new subsection (f) added
at the end of the first section of the Administrati' e'Expenses Act of
1946 by section 331 of the bill.
.It is to be noted that authority for the transportation of privately-
owned automobiles, contained in section 913 of .the Foreign Service
Act of 1946, is extended to the Administrator of Veterans' Affairs;
with respect to certain personnel of the Veterans' Administra'tidn
assigned to duty in the Republic of the Philippines,' by' section =
(a) (6) of title 38 of the United States. Code,'" added by'theAct ap-
proved July 28, 1959 (Public Law 86-116; 73 -Stat.'265)'. 'The new
subsection (f) as added by section. 331 of the bill, therefore; does tot
apply.to those employees of the Veterans' Administration' who are
subject to such-section 235(a) (6). However, the new subsection (f)
does apply to those employees of the Veterans' Administration not
subject to such section 235(a)(6).
Section 333 amends section 4 of the Central Intelligence Agency
Act of 1949 (which authorizes transportation.at'Government expense
of privately-owned automobiles of personnel of'the Central Intelligence
Agency assigned to duty outside the United States) so as-to conform
the authority contained in such section with the authority for ship=
ment at Government expense of privately-owned motor vehicles of
personnel of other departments and agencies contained in the new
subsection (f) added at the end of the first section. of the Administra-
tive Expenses Act of 1946 by section 331 of the bill. ' The amendment
made by section 333(b) with respect to the Central In telli enceAgen'c
is identical in effect to the amendment made by section 332 with
respect to the Foreign Service and other agencies `referred 'to in such
amendment.
TITLE IV-AMENDMENTS TO ANNUAL AND SICK LEAVE ACT OF 1951
Title IV relates generally to the accumulation of leave by, and the
conditions for granting leave to, employees of the Government of the
United States who are stationed outside of the several States of the'
United States and the District of Columbia.
Section 401 amends subsections (d), (e), and (f) of section 203 of
the Annual and Sick Leave Act of 1951 (5 U.S.C. 2062 (d), (e), and (f)).
The amendment to such subsection (d) accomplishes two. general
purposes. First, the amendment deletes, from that part of subsection'
(d) which precedes paragraph (1) thereof, language which excludes
from the coverage of such subsection employees in the Foreign Service
of the United States under the, Department of State. The effect is to
bring such employees in the Foreign Service within the purview. of
H. Rept. 902,86-1---4
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 26 (F. "ERSEAS DIFFERENTIALS AND ALLOWAI.. I , ACT
Approved For Release 2002 1/Aabs(Ot 2[P924tfl4 d@01eO tO l4cd the bill. Since that
part of such subsection (d) which precedes paragraph (i) thereof
authorizes a maximum accumulation of not to exceed forty-five days
of annual leave for certain categories of employees, and since the
amendment made by the bill to such part brings employees in the
Foreign Service within the purview of such subsection, the maximum
accumulation of not to exceed forty-five days of annual leave will.
be applied to employees in the Foreign Service exactly as it applies
to employees in other departments and agencies under existing law..'
Second, the amendment extends the coverage of paragraphs (1), and
(2) .of such subsection (d) to a comparatively small number of addi
tional employees in overseas areas.
The existing paragraph (1) designates, as one of the categories of
employees covered by subsection (d), _persons directly recruited or
transferred from the United States. The amendment extends this.
category to include persons directly recruited or transferred from the
Commonwealth of Puerto Rico or the possessions of the United States.
for .employment in overseas areas outside of the area of recruitment
or. the area from which transferred.
The existing paragraph (2) designates, as a second category of
employees covered by subsection (d), persons employed locally. in.
overseas areas (A) who. originally were recruited from the United
States, who have been in substantially continuous employment by
other. Government agencies, United States firms, international organ-
izations- in which the Government ,participates, or foreign .govern-
ments, and whose conditions of employment provide for their return
transportation to the United States or (B) who at.the time of em-
ployment are temporarily absent from the United States for travel or
formal study and who.during such absence maintain residence in the
United States. The amendment, in conformity with the amendment
to paragraph (1), extends the coverage of paragraph (2) to, persons
employed locally but who originally were recruited from the Common-
wealth of Puerto Rico. or the possessions of the United States :but
The amendment also makes a technical change in the language. of
paragraph (3) of such subsection (d), which: relates to persons who
are not normally residents of overseas'areas in which employed by the
Government but who are discharged from military service to 'accept
Government employment.
The amendment to subsection (e) of section 203 of the Annual and
Sick Leave Act of 1951 continues the effect of such subsection (which
is to preclude any reduction in the leave authorized by such Act for
time actually and necessarily used in, traveling to and from a post of
duty and in awaiting transportation) and extends this effect to persons
recruited or transferred from the Commonwealth of, Puerto Rico or
the possessions of the United States for employment. outside the'
United States and outside the area of recruitment or from which
transferred. The amendment limits the application of subsection (e)
to not more than one period of leave "in a prescribed tour of duty at a
post outside the United States," in lieu of the existing limitation of
not more than one period of leave "in any twenty-four months
period." This revision is necessary for the reason that prescribed
tours of duty in some cases, such as those involving; assignments. to
posts at which the employees will, be subjected to extraordinary
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 OVE kS DIFFERENTIALS AND ALLOWANCES Aoki - 27
proved F RERp g e 2t04iOltnMAe OWS5fWG "F' 1? 4-6han
twenty-four months in duration.
The amendment to subsection (f) of section 203 of the Annual and
Sick Leave Act of 1951 extends to all departments and agencies
authority to grant leave of absence (generally known as "home
leave") to officers and employees who have completed at least twenty-
four months of continuous service, outside the United States. At
resent, this leave is authorized only for personnel of the Foreign
Service of the United States, the United States Information Agency,
the International Cooperation Administration, the Foreign Agri-
cultural Service of the Department of Agriculture, and the Central
Intelligence Agency.
The home leave will be granted at a 'rate not to exceed one week for
each four months of such service and represents leave which is separate
and apart from the annual. and sick leave otherwise provided for
under the Annual and Sick Leave Act of 1951. This home leave is for
use in the United States or (in appropriate cases) in the Common-
wealth of Puerto Rico or the possessions of the United States. There
is no limit on the maximum accumulation of home leave for iuture
use, but no such leave can be made the basis for any terminal leave or
for any lump-sum payment for unused accumulated or accrued leave.
Section 402(a) of the bill amends section 202(b)(2) of the Annual
and Sick Leave Act of 1951 (5 U.S.C. 2061 (b) (2)) by substituting the
words "the United States" for, the words "the several States and the the.
District of Columbia." This is a technical amendment, made neces-
nary by the new definition which is provided by the amendment
made by section 402(c) of the bill in order to clarify the application of
the Annual and Sick Leave Act of 1951 to employees occupying
positions outside the several States of the United States (including
Alaska and, when admitted to the Union; Hawaii) and the District
of Columbia.
Section 402 (b) of the bill is a technical amendment, similar in effect
to the amendment made by section 402 (a), which is necessary in order
to conform the provisions of section 203(g)-of the Annual and Sick
Leave Act of 1951 (relating to the granting of leave to aliens employed
by the Government outside the United States) to the now definition
provided by the amendment made by?section 402(c) of the bill.
Section 402(c) of the bill amends section 202 of the Annual and Sick
Leave Act of 1951 by adding at the end thereof a new subsection (d)
which defines the term "United States" for use. in such Act. The
term "United States" is defined, for purposes of the Act, as meaning
tho several States of the United States of America and, the District
of Columbia. The term "United States", as so defined, replaces the
words "the several States and the District of Columbia used in the
Annual and Sick Leave Act of 1951 as in effect prior to enactment of
the bill. This definition clarifies the intention that provisions of such
Act, heretofore applicable to employees assigned to. duty .within the
forty-eight States existing prior to'the admission of Alaska and Hawaii
as States and in the District of Columbia, shall apply with equal force
and effect to employees assigned to duty in Alaska and (upon admis-
sion as a State) in Hawaii. The definition also clarifies the applica-
tion of provisions of such Act which relate to employees outside the
forty-eight States existing prior to.the admission of Alaska and Hawaii
as States and the District of Columbia. Such provisions will apply,
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 28 -c1VERSEAS DIVF1tRENTIALS AND ALLOWA LS ACT
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under the now definition, to employees assigned to duty at posts
outside of the several States (including Alaska and, upon admission
as a State, Hawaii) and the District of Columbia.
It is to be noted that the amendments made by title IV of the bill
will be applicable to employees of the Veterans' Administration
(except those employees subject to section 235(a)(7) of title 38 of
the United States Code, as added by the Act of July 28, 1959 (Public
Law 86-116), to the extent that such section 235(a)(7) is similar in
effect to the amendments made by title IV).
Section 403 provides that the amendments made by title IV of the
bill to the Annual and Sick Leave Act of 1951 shall take effect on the
first day of the first pay period following the date of enactment of the
PROVISIONS
Title V consists of Part A (Appropriation Provisions), Part B
(Repeal and Amendatory Provisions), and Part C (Miscellaneous
PART A-APPROPRIATION PROVISIONS
Section 501 pertains to appropriations to carry out the purposes of
Section 501(a) authorizes. the appropriation of such sums as may
be necessary to carry out the purposes of the bill and of the amend4.
'regulations as the President may prescribe.
tained in any law, amended by the b' and in accordance with sue,
are made available for ,the purposes of the bill and of any such amend
ment,.in accordance with, the authority contained in the bill or con
within the purview of the bill or of any amendment made by the bill
agency, establishment,or corporation of the Federal Government
Section 501(b) `provides that appropriations or funds otherwise
Section 511(a) (1)' of the bill repeals. specified sections of the Foreign
modify, and conform.existing law.
Section 511(a) of the bill contains specific repeal provisions.
Section 511 of the biYlcontains provisions which repeal,, amend,
PART B.-REPEAL AND AMENDATORY PROVISIONS
cost-of-living allowances, and representation allowances, which is
(2) Section 901 (22 U.S.C. 1131),' pertaining to quarters allowances
at hardship posts, which is replaced by section 231 of the bill, relating
(1) Section 443 :(22 U.S.C. 888), pertaining to salary differentials
living allowances), and section 301 (representation expenses), of the'
by section 321(a) of the bill.
Expenses Act of 1946 (oflicia~ residence expenses) added to such' Act
(3) Section. 902 (22 U.S.C. .1132), pertaining; to official residen
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 OVER ,3 DIFFERENTIALS AND ALLOWANCES At 29
Ap ved For Re(l4aNec2 21 10(L2 Q 89239,00 R 491 APA1I4,.t g for
allowances, which is unnecessary in view of section 203 of the bill
(regulations of the President governing payment of allowances and
differentials) and other related provisions.
(5) Section 911(9) (22 U.S.C. 1136(9)), pertaining to travel ex-
penses for purposes of secondary or college education, which is re-
placed by section 221(4) (B) of the bill, relating to the travel payment
for educational purposes.
Section 511(a) (2) repeals sections 2(b), 13, and 14 of the Act of
August 1, 1956 (5 U.S.C. 170g(b), 170r, and 170s), which provided
certain basic authority for the Department of State.
Section 2(b) of such Act, relating to payment by the Secretary of
State of certain transportation and storage costs of employees of the
Foreign Service, is replaced by similar provisions contained in the
amendments made by section 311 of the bill to the Foreign Service
Act of 1946.
Sections 13 and 14 of -such Act of August 1, 1956, relating to the
extension of the quarters allowance of the Foreign Service. of -the
United States to include water and the availability of appropriations
for advance payments of such allowances, are replaced by section
211(2) of the bill which provides that the living quarters allowance
provided by the bill will include, water and by section 202 of the 'bill
which makes provision for advance payment of allowances.
Section 511(a) (3) of the bill repeals sections 1(d) and 4(b) of the,
Central Intelligence Agency Act of 1949 (50 U.S.C. 403a(d) and'
403o(b)). _
Section 1(d) of such Act contained a definition of the term "conti-
nental United States". This definition is unnecessary in view of the
definitions provided by section 111 of the bill.
Section 4(b) of such At authorized the Director. of Central.In
telligence to grant to officers and employees of the Central Intelligence
Agency allowances in accordance with section 901 (1) and (2) of the
Foreign Service Act of 19461. . Such section 4(b) is made unnecessary
in view of the repeal by the bill of section 901 of the Foreign Service
Act of 1946 and authority ' provided in title II of the bill for the
Central Intelligence Agency to grant allowances and differentials to
employees of such Agency.
Section 511(b) of the bill: provides that any provision of law which
is not repealed by section 511(a) of the bill but which is inconsistent
with any provision of the bill or of any amendment made by the bill
shall be held and considered to be.amended, modified, or superseded
to the extent necessary to carry out the purposes of and conform to.
such provisions of the bill or of such amendment. The purpose of this-
provision is to provide a basis for _ conforming existing law generally
to the objects and purposes of the bill.
An example of the application of section 511(b) of the bill is the
effect of such section on section 235 of title 38 of the United States
Code, as added by the Act of July 28, 1959 (Public Law 86-116).
Section 235 of title 38 of the United States Code provides that the
Administrator of Veterans' Affairs may provide to personnel of the
Veterans' Administration who are United States citizens and are
assigned by the Administrator to the Veterans' Administration office
in the Republic of the Philippines, -allowances and benefits similar to
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 Approved For Release 2%V/04/OC,J&BPIBM&MggWOAWlAl&%14A*(".~' -ACT
Such section 235 also provides that personnel of the Veterans'
Administration who are United States citizens and are assigned to
for treating illness or injury of ? officers or employees and de
(8) Section 941 (payment by the United States of expenses
(7) Section 933 (return of personnel to the 'United States of
expenses) ;
(6) Section 913 (transportation of automobiles) ;
(5) Section 911(1), (2), (3), (4), (5), (7), and (9) (travel
American representatives) ;
(4) Section 903 (accounting for allowances) ;
(3) Section 902 (allotment for official residences of principa
living quarters, heat, light, water, fuel, gas, and electricity);
(2) Section 901(3) (representation allowances) ;
(1) Section 901(1) (allowances for temporary and permanent
those provided by certain sections of the Foreign Service Act of 19461
the Republic of the Philippines by the Administrator of Veterans'
Affairs may be granted leaves of absence in the United States by thi
laws by section 301 of the' bill (representation expenses), section 311(c,
sequently, will receive the benefit of the amendments made to tho
tration is presently within the purview of the Administrative Expens
the. Foreign Service Act of 1946: In addition, the Veterans' Admini
Code by reference to sections 901(1), 991(3), 922, 903, and 911(9) o
areas provided by title II of this bill rather than the similar allowanc
and benefits provided under section 235 of title 38 of the United Stat
term "Government agency" in section 111(2) of this bill and i
The Veterans' Administration is covered by the definition of th
the provisions of -such section 235 cover the same matters as are
of the United States Code is superseded by this bill to the extent tha
Section 511(b) of this bill makes it clear that section 235 of title 3$
as such section 235.
States Code is not repealed `by this bill, such section clearly is incon
Although the recently enacted section 235 of title 38 of the Unite
Section 911(9) of such Act is replaced by section 221(4) (B) of this
added to such Act by section 321(a) of this bill.
Section 903 of such Act is replaced by similar provisions in sectio
203 of the bill and related provisions of title II of the bill.
Administrative Expenses Act of 1946 (official residence expenses'
Section 902 of such Act is replaced by the new section 23 of th
211 (quarters allowances), section 221 (cost-of-living allowances), an
section 307 (representation expenses), of the bill.
U;S.C. 1131, 1132, 1133, and 1136(9)).
Section 901 of the Foreign Service Act of 1946 is replaced by sectio
901; 902, 903, and 911(9) of the Foreign Service Act of 1946 (22
203(f) of the Annual and Sick Leave Act of 1951 (5_ U.S.C._ 2062 (f) )
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OVE 8 DIFFERENTIALS AND ALtOWANCES A k' 31
1946, of the bill (storage), section 321(a) of the bill (official -residence
;rent of the bill (leave provisions). However, those employees of the
Veterans' Administration who are
subject to paragraphs (6) (trans-
~ipal of title 38 of the United States Code as added by the Act of July 28,.
1959 (Public Law 86-116), will remain subject to such paragraphs
and will not be subject to the amendment made by section 331 of the
. avel bill or to those provisions of the amendments made by title IV of the
bill which are comparable -to the provisions of such paragraph '(7) .
As a result of the enactment of this bill, section 235 of title 38 of the
; on United States Code will be superseded in all respects except with
respect to=
`
flses
(1) the travel expenses provided under , the language of sub=
de- paragraph (5) of subsection (a) of such section 235 by reference
ms' Act of 1946; .. . .. . . . ?
to (2) the transportation of automobiles provided under the
ns language of subparagraph (6) of subsection (a) of such section
the 235 by reference to section 913 of the Foreign Service Act of 1946;
ion (3) the return of personnel to the United States on leaves 'of
)). absence which is covered by the language of subparagraph (7)
no of subsection (a) of such section 235 by reference to section 933
22 of the Foreign Service Act of 1946; and
an or injury which is provided for under the language of subparagraph
id .(8) of subsection (a) of such section 235 by reference to section
le Section 511(c) of the bill makes amendments to the Central Intelli
gence Agency Act of 1949 and the Act of June 26, 1930.
a 1(c) of the Central Intelligence Agency, Act of 1949 (50 U.S.C.
403a(c)) which is necessary because of the repeal of section 1(d) of
such Act by section 511(a) (3) of this bill.
Section 511(c) (2) of the bill makes a technical amendment to section
4(1) (A) of the Central Intelligence Agency Act of 1949 (50 U.S.C.
403e(a)(1)(A)) which provides for the payment by the Central
Intelligence Agency of the travel expenses of its officers and employees
assigned to permanent-duty stations outside the continental United
States, including expenses incurred while traveling pursuant to author-
ized home leave. This technical amendment adjusts the language of
such section 4(1)(A) to reflect similar provisions of this bill.
Section 511(c) (3) of the bill amends section 4 (3) (A) of the Central
.Intelligence Agency Act of 1949 (50 U.S.C. 403e(a) (3) (A)) which
relates to the authority of the Central Intelligence Agency to order
to the United States for leave purposes certain officers and employees
of the Agency on completion of two years of continuous service abroad.
This amendment also is a technical amendment which is necessary to
reflect certain provisions of the bill, for example,. the definitions in 1. i
section 111 of the bill. .
Section 511(c) (4) of the bill amends section 4(3) (B) of the Central
Intelligence Agency Act of 1949 (50 U.S.C. , 403e(a) (3) (B)) which
provides that, while in the continental United States on leave, the
service of any officer or employee of the Central Intelligence Agency
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y.~'~ 6 10 ~ uJ4 ~A?Y ACT
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
while in the United States on leave,, the service of any officer or em
as the Director may prescribe; and the time of such work or duty shall;
not be counted as leave. The amendment conforms to certain pro-
Section 511(c)(5) of the bill amends, section 4(3)(c) of the Central
Intelligence. Agency Act of 1949 (50 U.S.C. 403e(a) (3) (C)) which. pro
vides that. where an officer or employee of the Central Intelligence
Agency on leave returns to the United States or its Territories and
possessions, leave of absence granted shall be exclusive of the time.
actually and necessarily occupied in. going to and from the United
States or its Territories. and possessions, and such time as may be
necessarily occupied in awaiting transportation. The sole change
made by this amendment is to eliminate the words "United States
or its Territories and possessions" and substitute in lieu thereof a
contained in section 111 of the bill.
Section 511(c) (6) of. the bill amends the Act of June 26, 1930
(5 U.S.C. 118a), which provides that civilian officers and employe
of the Government having permanent station in a foreign countr
may be furnished, without cost to them, living quarters in Govern
ment-owned or_ rented. buildings and, where such quarters are no
heat, fuel, and light. The amendment made by section 511(c) (6) o
the bill strikes out all references in.such Act to allowances in lieu o
living quarters as unnecessary in. view of the provisions with respec
to quarters allowances contained in Part B of title II of the bill.
Conforming Provision
Section 521 of the bill provides that,. whenever reference is mad
in any other law or in:, any regulation to any provision of law which1
of the bill, such re"ference'(unless inconsistent with the objects an
purposes of this bill) shall be held and considered to refer to this bi
or the appropriate provision of, or amendment made by, this bill.
The recently enacted Defense, Department Overseas Teachers Pa_;
an.d Personnel Practices Act (Public Law 86-91) contains provisio
which illustrate the application of section 521 of the' bill.
Section 7(b) of such-Act provides that each teacher (other than
performs services as a teacher, to quarters or a quarters- allowan
equal to those authorized by the Act of June 26, 1930 (5 U.S.C. 118a
Section 7(c) of such Act provides, in part, that each teacher (oth
the close of a school year and agrees in writing to serve as a teach
for, the next school year may be authorized, for the recess perio
immediately preceding such next school year, quarters or a quar
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 H. Rept. 902, 86-1-5
Independent Offices Appropriation Act, 1949;
OVER , DIFFERENTIALS AND ALLOWANCES. A( `' 33
roved a oRelee eg3AO O igse' 9]&` PP2,-P b5.WQIQQ1a1 Q44- 30
(5 U.S.C. 118a).
It should be noted that section 511(c) (6) of the bill proposes to
eliminate from the Act of June 26, 1030, all references to living quar-
ters allowances so that such Act will provide only for living ? quarters
for Government employees and not for the granting of - allowances
in lieu of the living quarters. However, Part B of title II of this
bill contains provisions with respect to quarters allowances which
will replace on a broader scale the allowance provisions contained in
the Act of June 26, 1930. As a result of. the operation of section 521
of this bill, any teacher within. the purview of section 7(b) or. 7(c)
of the Defense Department Overseas Teachers Pay and Personnel
Practices Act will be entitled to living quarters in Government-
owned or rented buildings equal to those authorized by the Act of
Juno 26, 1930, or,' where such quarters are,not available, quarters
allowances' equal to those authorized by Part B of title II of this
bill (in lieu of ' allowances equal to those authorized by those. provi-
sionsiof the Act of` June 26, 193Q, which will be eliminated by section
511(c) (6) of this bill).
Likewise, section 8(a) of the Defense Department Overseas Teachers
Pay and-Personnel Practices Act provides ? that 'each teacher - (other
than a substitute teacher) shall to entitled, in addition. to_ basic
compensation, to cost-of-living allowances equal to' those authorized
by section 901(2) of the Foreign Service Act of 1946 (22. U.S.O.
1131(2))'which is repealed by section 511(a)(1) of this bill: As a
result of the operation of section 521 of this bill, a teacher to whom
section 8(a) of ? the Defense Department Overseas Teachers Pay-and
Personnel Practices Act is applicable will be entitled to cost-of-living
allowances equal to those authorized by Part C of title II of this bill
rather than cost-of-living allowances equal to those authorized by
section 901(2) of the Foreign Service Act of 1946 which is repealed by
section 511(a) (1) of this bill.
Section 8(a) of the Defense Department Overseas Teachers,Pay and
Personnel Practices Act contains another example of the application
of section 521 -of this bill.
.Such section 8(a) further provides that each teacher (other than a
substitute teacher) shall be entitled, in addition'to basic compensation,
to additional compensation equal to that authorized under section 207
of the Independent Offices Appropriation Act, 1949? (5 U.S.C. 118h).
It is pointed out in that portion of this. explanation of the bill which
relates to Part D. of title II of the bill-post differentials-that it is the
intent of the committee that the provisions of title II of this bill shall
supersede. the provisions of section 207 of the Independent Offices
Appropriation Act, .1949, and that such section 20:,no- longer will
apply 'to employees m foreign arcs within the purview Of - title H. of
this bill: To the extent that a teacher subject to the,Defense Depart-
ment Overseas Teachers Pay and` Personnel 'Practices' Act comes
within the provisions of title II of this bill, he will be entitled, (as -a
result of the application of section 521 of this bill and the interit? of
the committee' discussed above) to post differential- equal -to that
authorized by Part D of title II of this bill, rather than additional
compensation equal to that authorized under section 207 :of_ the
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A AL w 31S ACT
Transition Provision
Section 522. of the bill provides for the transition from the systo
of allowances and differentials provided under existing law- to the noo
Section 522 provides that notwithstanding any provision of this b
and until such time as regulations are issued under this bill, employe
with. rules and regulations issued pursuant to the laws in effect imni
regulations may be amended or revoked in accordance with t
provisions of such laws.
Exemptions From Tax For Certain Allowances
Section 523(a). amends section 912 the Internal Revenue Code
19'54,..W ch relates to the exemption Irom Federal income tax of c,
tain allowances. Under paragraph (1) of the existing section 912,
the case of civilian officers and employees of the United States s
tioned outside the continental United States, amounts received
cost-of-living allowances in accordance with regulations approved
the President are not includible in gross income. Under paragra
(2) of the existing section 912, amounts received by an officer or e
ployee of the Foreign Service of the United States as allowances
otherwise under title IX of the Foreign Service Act of 1946 are
includible in gross income. -
Section 523(a) of the bill, as amended by the committee, amen
section 912 of the Internal Revenue. Code of 1954 to make the than
?_- `c 1_ _--_ l__ _____ ___ .! ~.L _ _? t!A__ TT ---I
of t6e?bill, Thoamen- ed'paragrap (1) _of section _912 provides t
amounts received as allowances or otherwise under certain designa
provisions of law are not to be included in gross income. The d
hated provisions of law are:
(1) Title IX of the'Foreign Service Act of 1946.
(2) Section 4 of the Central Intelligence Agency Act of. 1
(3) Title II of. the bill.
(4) Subsections (o) and (f) of the first section of the Ad
trative Expenses Act of 1946, and sections 22 and 23 of that A
to such provisions as amended from time to time, -and thus inclu
In paragraph. (1) of the amended section 912 it is made clear t
its provisions do not apply to amounts received as post differentia
amounts granted' on the basis of conditions of environment- whi
differ substantially from conditions of environment in the continen
United States, such as amounts granted pursuant to the author
contained in section 231 of the bill.
Under the bill as introduced, paragraph (1) (D) contained a referee
to subsection (a) of the first section of the Administrative Expen
Act of 1946. Such subsection (a) provides, in general, that. wh
a civilian officer or employee of the. Government is, in the interest
the Government, transferred from one official station to another
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OVER DIFFERENTIALS AND ALLOWANCES ACT'
35
permanent duty, his travel expenses, the expenses of transporting
his immediate family, and the expenses of transporting or storing his
household goods, may be paid from Government funds. The third
proviso of this subsection states that no part of such expenses may
be paid from Government funds where the transfer is made primarily
for the convenience or benefit of the officer or employee or at, tis
request. Under Revenue Ruling 54-429 (1954 Cumulative Bulletin
1954-2, page 53), it has been held that where an employee is tr{inns=
forred in the interest of his employer from one official station to another
for permanent duty, the allowance or reimbursement received for
moving himself, his immediate family, family goods, and personal
effects is not includible in the gross income of the employee if the
total amount of the reimbursement or allowance is expended for such
purpose. In view of this revenue ruling, the reference to such sub-
section .(a) is stricken by a committee amendment on. the grounds
that it is unnecessary.
Paragraph (2) of the amended section 912 provides that. M the 'case
of civilian officers or employees of the United States who are stationed
outside the continental United States, there shall not be included in
gross income amounts (other than amounts received under,- title II
of the bill) received as cost-of-living, allowances in accordance with
regulations approved by the President.
For purposes of the new paragraph (2), Alaska isnot treated .as
part of the continental United States. Thus, it the case 6f .'d civilian.
officer or employee of the United States stationed in Alaska, amounts
received as a cost-of-living allowance,. in accordance with regulations
approved by the President are not to be included in gross income.
Section 523(b) of the bill as amended ?by the committee provides
that the amended section 912 ,of. ,the. Internal. Revenue Code :of ;1954.,
is to apply only with respect to amounts recoived on, or . after' the,dato
of the enactment of the bill in taxable.-years ending after, that.- date
In the case of any amount received before the date of the. enactment of
the bill, its tax treatment is tobe determined under existing law with-
out inferences drawn from the amendment made by the bill. Further-
more, the tax treatment of amounts received on or after; the date of the
enactment. of the bill to which the ' provisions of the amcrided section
912 are not expressly made applicable is to be made. under the Internal
Revenue Code of 1954 without inferences from the fact that such
provisions are not expressly made applicable. ,
.bill
fees
;uce
01a-
ind
the
AGENCY REPORTS
GENERAL COUNSEL OF THE DEPARTMENT OF DEFENSE,
Washington, D.C., June 10, 1959.
Hon. Tom MURRAY,
Chairman, Committee on Post Office and Civil Service,
House of Representatives.
DEAR MR. CHAIRMAN: Reference is, made to your request for,the
views of the Department of Defense on H.R. 5007 and II.R;. 5099,
86th. Congress, identical bills to improve the administration o'
activities of the Government of the United States, and for other
purposes.
The purpose of these bills is stated in their titles and amplified in
section 101. They would provide a more effective and uniform
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 Approved For Releas~4002/0k1Tai-m$1b1QIW4' ACT
means for compensating employees in overseas areas for extra costs
and hardships incident to their assignments, and would facilitate the
recruitment and retention of the best qualified personnel for civilian
service overseas. '
These bills would authorize the following not now authorized for
civilian employees of the Department of Defense in overseas areas:
(a) Temporary lodging allowance fof not to exceed 3 months after
first arrival at new post of assignment) and for not to exceed 1 month
preceding final departure from the post' both depending on immediate
uonavailability of residence quarters
(b) Addition of "water" to the list of utilities included in the
quarters allowance authorization:
(e) Repair, alteration, and impipV.6riient of employee's privately
leased residence under certain coiiditiene.
(d) Transportation costs to a . sbhool in the United States for
dependents, not to exceed one trip each; way, for. purposes of obtaining
secondary or undergraduate college education. ,
(e) Storage and related expense tor household goods when in the
public interest.
(f) Transportation of motor vehicles when it is determined to be in
the interest of the Governor exit forUh. employee to have the use of a
motor vehicle at his post of duty.
(g) Extension of provisions of section 203(d) (1) of the Annual and
Sick Leave Act of 1951 to permit employees recruited; from Alaska;
Hawaii, Puerto Rico, or the possessions' for employment outside the
area of recruitment or froth -which tiensferred to accumulate not to
exceed 45 days of annual leave:
(h) Authorization of home leave. Upon completion of 24 months
of continuous service outside the oontinental United States employees
may be granted leave of absence at a rate'iiot to exceed 1 week for
each 4 months of such service for'use in the continental United States
or (if their place of residenc0 is otiteide' the -areaof employment) in
Alaska Hawaii, Puerto Rico, Or the possessions..
(i) amendment of section 912(1) of the Internal Revenue Code of
1954 to exempt foreign area allowaiice? `.from income taxes.
The Department of Defense has consistently favored enactment of
legislation containing the fund amentalprovisions' of H.R. 5007 and
H.R. 5099. These bills embody Inany' of the features which. this
Department has recommended for iA luslon in similar bills introduced
in previous sessions of the Congress.,. Enactment of this legislation
would be of material benefit to the Department of Defense in recruit-
ing and retaining the best _ qualifiedcivilian personnel for its overseas
activities.
H.R. 5007 and H.R. 5096lis,vc'been carefully reviewed in consid-
eration of recent experience in ove,7eas .employm.ent' and in light of
some recent developments such'a ' ls.kan and Hawaiian statehood.
The Department of Defense suggests the. following changes to make
these bills more responsive to current needs:
1. The recent acquisition of statehood by Alaska and the impending
statehood for Hawaii has created problems because of various defini-
tions, in statutes of such: terms : as}: }`UUnited, States," "continental
United States" and "foreign area.',:; _For purpose of clarification and
to take into account differenceidh:,application of- certain provisions
c. i at^,n;:- .
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 ~ D E r L AND ALLOWANCEST 3'T
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of law to Alaska or Hawaii, as compared to the other 48 States, the
following changes in definitions are recommended:
Page 3, line 5: After _ "Alaska" insert "and Hawaii". This will
insure that when Hawaii becothes a State it will not be included in the
term "tcontin.ental United States."
Page 3, line 6: Following line 6 insert it new subsection as follows:.
"(5) `United States' means the several States of the United Stated
of !America and the District of Columbia; and,". This will providd
a term for application to all the States and the District of Columbia.
Page 3, line 8: Redesignate this subsection as (6). instead of (5)
and delete the words "continental" and "excluding Alaska, Hawaii".
Pago 6, line 15: Strike out "continental".
Page 7, line 25: Change "111(5)" to "111(6)".
2. ,Under present. law and re ttlation a post differential may be paid
to employees on extended detail. to a foreign post. In some cases this
results in a reduction if an employee is detailed from one foreign post
to another with a lower differential. To insure that this practice ban
be continued the following changes should be made:
Page 3, line 16: After the parentheses insert: "and except as pro.,
vided in section 231";
Page 8, line 13: Change the period at the,end to a comma-and add
"and may be granted to employees stationed at or on extennded detail
to a foreign ppost." 11 3 The Adri.inistratiie Expenses Act of 1046; as amended, limits
the shipment of household effects for civilian employees to. 7j000
pounds if uncrated or 8,750 pounds if crated. The 7 000 potthds limit
is generally adequate; however; the limit for crated efl;ects is unrealistic
and has created many problems in the case of overseas shipments.
The packing and crating which is necessary for overseas shipment
increases the total weight of the shipment an average of, 90 percent.
The -result is that employees arc automatically restricted to a figure
which, exclusive of packing and crating material, is considerably lower
than was intended. In quite a' few cases employees shipping house=
hold effects well within the uncrated limit of 7,000 pounds have been
forced to pay overweight shipment charges running into several
hundred dollars. To correct this inequity it is recommended that aft
amendment to the Administrative Expenses Act be included which
would remove the present weight limit for crated household goods and
effects, as follows:
Page 11, line 21: After "by" insert "striking out the ;second paren-
thetical clause in subsection (a) and inserting in lieu thereof `(not to
exceed seven thousand pounds net weight)' and by".
4. Because of the acquisition of . statehood by Alaska and the
impending acquisition of statehood by Hawaii the coverage of the
Annual and Sick Leave Act of 1951 as amended should be clarified.
The Department of Defense believes that the provisions of this An
should apply equally in all States of the Union. Toaccomplish this
"United States" should be defined in the Annual and Sick Leave Act
as that term is_proposed to be defined in section 111 of H.R,. 5007_and_
H.R. 5099. This will require the following changes in subsection
402(c):
Page 21, line 6: Strikeout "(iihcluding Alaska)"
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 38 O 2hSEAS DIFFERENTIALS AND ALLOWANC -FACT
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These changes make the change proposed in section 202(c)(2) of
the Annual and Sick Leave Act [sec. 402(b) of the bills] unnecessary,
but will require a change in section 203 (g) of the Act. To accomplish
this the following change should be made in H.R. 5007 and H.R. 5099.
Page 20 lines 13-22: Strike out the language of subsection (b) and
insert in 'ieu thereof "Section 203(g) of such Act as amended (5
U.S.C. 2062(g)), is amended by striking out `several States and the
District of Columbia' and inserting in lieu thereof `United States'."
The changes in 'definition above recommended will require the
following changes in title IV of the bills:
Strike out "continental" at the following places: page 17, lines 22,
24; page 18, lines 5, 13, 17, 21; page 19, lines 10, 11, 17, 19, 24; and
pagge 20, line 11.
Strike out "Hawaii" at the following places: page 17, line 25; page
18, lines 6, 14, 18, 22; and page 19, lines 13 and 25.
5. Employees who complete agreedtours of duty in.overseas areas
and who agree to serve for'an additional tour at the same post are
eligible for round ' trip travel to the.: United , States for purposes of
taking leave. Recently a question has :been raised by the Bureau of
Internal Revenue as to whether the expenses of such travel and trans.'
portation -is income for purposes of -taxation. The Department of
Defense believes that as a matter of equity such expenses should not
be considered income and should be clearly exempt from taxation.
To-accomplish this result, it is recommended that H.R. 5007 and H.R.
5099 be amended as follows:
Page 25, after line 6: Insert a new. subsection as follows:
"(3) Expenses of Travel and Transportation.
"(a) In the case of civilian officers ."and employees of the United
States Government, amounts received' as-expenses of travel and, trans-
portation, or costs of transportation -provided in lieu thereof, from
posts of duty outside the continental United States, to and from their
place of. residence, for the purposes of taking leave authorized by
Section 7 of the Act of August 2, 1946Y-160 : Stat. 806, as amended. . .
"(b) The amendment made by this section shall apply with respect
to taxable years beginning after December 31, 1958, and ending after
the date of enactment of this Act."
6. In addition to the above changes the following minor technical
corrections should be made:
Page 3, line 14: Strike out "Short title and", since the short title
appears after the enacting clause.
Page 5, line 7: After "the" insert "reasonable".
Cost to the Department of Defense of enactment of this proposal
would be as follows: ,
Fiscal year
Fiscal year
Fiscal year
Fiscal year
Fiscal year
1900
1961
1962
1963
1964
Army---------------------------
$1,600,000
$1, 580,000
$1, 680, 000
$1, 680, 000
$1, 680, 000
Navyy_____________
297,000
290,000
290,000
290,000
290, 000
Air Forco_____----?-------------
1, 076,000
1,020,000
1,020,000. .
1,020,000
1, 020, 000
Total-------------- --- -----
2,972,000
, 2,890,000
2,890,000
2,890,000
2, 800, 000
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 OV AS DIFFERENTIALS AND ALLOWANCES 2 39
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n t epartment of
No funds for this proposal have'- een prove ed i e
Defense Appropriation estimates for fiscal year 1960. In the event of
enactment, additional funds would be required.
The Bureau of the Budget has advised that there is no objection
to the submission of this report to the Congress.
Sincerely yours,
ROBERT DECIIERT
(Signed for L. Niederlehner).
DEPARTMENT OF STATE,
Washington; May 5, 1959.
Hon. Tom MURRAY,
Chairman, Committee on Post Office and Civil Service,
House of Representatives.
DEAR MR. MURRAY: Reference is made to your letters of March
4, 1959, requestingg reports on identical bills H.R. 5007 and H.R. 5099,
to improve the administration of overseas activities of the Govern-
ment of the United States, and for other purposes.
The subject bills would extend to employees of other agencies who
are stationed in foreign areas certain benefits that are,now available
only to the Foreign Service and to employees of those agencies to
which the provisions of the Foreign. Service Act have been specifically
extended.
The Department considers that more uniform, emoluments for
Government employees stationed in foreign areas whose-terms and
conditions of employment are similar will contribute to improved
personnel administration. Although the Department recognizes. the
benefits that can accrue from a governmentwide approach, it would
like to point out that the Foreign Service Act of. 1946, as amended,
constitutes, with relatively few exceptions, an integrated statute to
govern the organization and administration of the Foreign Service.
This Act, as you are aware, originated with the House Committee on
Foreign Affairs; which has, together with the Senate Committee on
Foreign Relations, consistently maintained a deep interest in, all .mat-
ters affecting the Foreign Service. As a consequence of this, the
Department is forwarding a copy of its. comments to, you on these
two bills to the chairman of the House Committee on Foreign Affairs
and the chairman; of the Senate Committee on Foreign Relations.
Subject to the additional comments contained herein, the Depart-
ment of State favors this proposed legislation. It is suggested, how-
ever, that section 311(a) of the bills be revised to delete the period
at .the end of the proposed amendment to paragraph (5) of section
911 of the Foreign Service Act of .1946 and to insert in, lieu thereof a
semicolon and the following limiting clause which appears at the end
.of the proposed paragraph (4): "; but in no instance shall the weight
or volume of the effects stored together with the weight or volume of
the effects transported exceed the, maximum limitations fixed by
regulations, when not otherwise fixed by law."
The Department has been informed by the Bureau of the Budget
that there is no objection to the submission,of this report.
Sincerely yours,
WILLIAM B. MACOMBER, eJr,,.
Assistant Secretary
(For the Secretary of State).
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 40 TSEAS DIFFERENTIALS, AND ,ALLQWANC ~ %'.,WT
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THE SECRETARY OF THE REASURY,
Washington, June 30, .1.9?9.
Hon. TOM MURRAY,
Chairman, Committee on Post Office and Civil Service,,
House of Representatives, Washington, D.C.
MY DEAR MR. CHAIRMAN: A bill in which, the Treasury Depart-
ment has an interest has come to our attention. Section 523 of H.R.
7758, , 'a' bill introduced by Mr. Morrison and entitled "Overseas
Differentials and Allowances Act,-,., -.would amend section 912 of the
Internal Revenue Code of 19.54 to expand the existing exemptions
allpwed':with respect .to certain allowances received by Government
employees. It is believed that your committee will be.,interested in
the views of the Treasury DePartment-on these provisions.
The purpose of the bill is to achieve uniform treatment' between
Foreign Service personnel and other Government employees overseas
with respect to the certain types of tax-exempt allowances now granted
Foreign Service personnel under title IX of -the Foreign Service Act of
-1946. These include allowances for temporary lodging, representation
expenses, official residence, storage, and expenses of travel and trans-
portation in connection with home leave. The bill alsorovides for
tax exemption on new types of allowances: not now provided.:
The objective of the bill (to achieve' uniformity as : between
employees of different Government agencies) is a desirable one and
has the full support of this Department. But insofar as the bill
would achieve that objective through-tax exemption, it.is believed
undesirable.
The practice of splintering off. or earmarking parts of compensation
and investing them with a special character is one which should be
resisted. The compensation paid in areas with high price levels may
well be higher than those where price levels are low. This is. a factor
which applies within the United States as well as abroad. 'Exce t
for the special case of Alaska, which recently became a state, we make
no tax distinction within the United States among salaries or parts of
'them which reflect local variations in, living costs or other factors.
There seems to be no valid reason for making such a distinction with
respect to overseas employment.
The enlarged scope of tax exemption : contemplated by 'the-bitl is
highly undesirable from the point of view, of maintaining a sound and
equitable tax system. By enlarging'the application of tax exemption,
the bill would'aggravate inequities which now exist, would increase
resentment on the part of employees'and employers in private industry,
and intensify pressures for expansion' of tax-exempt allowances. The
tax-exempt status of cost-of-living-allowances given to Government
employees stationed outside contmental United States has created
continued pressure for expanding its application to private employees.
Although the Department has resisted such demands; it wiltbe even
more difficult to do so if such allowances are broadened.
In view of the basic changes made by the proposed bill in the struc-
ture of the statutes which provide for overseas allowances; we recog-
nize that it will be necessary to amend section 912. However, we
believe that these amendments should be so limited that. they do no
more than continue the exemptions now provided-for-by section 912 for
overseas allowances.
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 Appr
OVE S DIFFERENTIALS AND ALLOWANCES it, 41
ed For RelgWiM9j 4t0di? l9 Dr45fiRGGO'MOxI31i0014ooartment.
that there is no objection to the presentation of this report.
Sincerely yours,
FRED C. SCRIBNER, Jr.,
Acting Secretary of the Treasury,
COMPTROLLER GENERAL OF THE UNITED STATES,
Washington, March 31, 1959.
B-115138.
Hon. Tom MURRAY,
Chairman Committee on Post Office and Civil Service,
House off` .}Li'epresentatives.
DEAR, MR. CHAIRMAN: B separate letters both dated March 4,
1959, and acknowledged on March 5, you requested our report upon,
H.R. 5007 and H.H. 5099, respectively, which bills appear identical.,
The bills would provide a uniform basis for the granting of special
benefits to all personnel stationed outside. the continental United
States. In general, we favor the objectives of the bills although we
haves reservations concerning the necessity for, or the propriety of,
certain of the provisions of the bills in their present form. Our
comments upon those provisions are as follow:
Section 211 (1) (A) : The temporary lodging allowance authorized
under this provision for a period'not to exceed 3 months conceivably,
could cover premium accommodations in an expensive hotel for the
employee and his family. There is no monetary limitation upon the
amount allowable -under the provision. In contrast the presentppro-
visionsof section 9.Q1 of the Foreign Service Act of 1,946 (22 U.S.C.
1131), limit the amount,payable for lodging at temporary quarters to
the amount of per diem that. would have been allowable to the em-,
ployee.and members of hia family for such period if they had been in
a travel status. In the absence, ;of somc,appropriate. limitation, this.':
provision of the bill could become subject to abuse.
Section 211(1)(B): We understand that in the State Department
the general practice is to notify the employee months in advance of his
transfer and that arrangements. or crating and: shipping his effects
normally are made by State'Department personnel. _after departure
from the area of the employee. who,is, being transferred. Obviously,
under such practice there .would be no need for payment of a tempo-
rary lodging allowance a month prior to the. 'employee's departure.
You may . want to make it clear; either in the bill itself or in your
committee report that the temporary lodging allowance provided for
in subparagraph (B) should not, be,granted as a routine practice but
only when the circumstances are. such as to indicate a bona fide need
for the granting of such an allowance, and that the allowance should be
granted for no longer period than circumstances require.
Section 211(3): The utmost care would have to be exercised in the
administration of this provision to prevent abuse. If enacted it would
afford opportunity for the granting of special treatment in individual
cases. Moreover, it would authorize expenditures wherever U.S. em-
ployees are stationed in foreign areas, for the purpose. of making per-.
manent improvements on property owned by foreign citizens ,with no
direct compensating benefit to the United States. We urge that the
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 42 (ac RSEAS DIFFERENTIALS AND ALLOWANC iC,ACT
Approved For ReleasggAQ; 1 q-[&g n9 WP6q1 gjitpeOil#fReations of this
provision prior to its enactment.
We note that it is not necessary for an employee to be permanently
stationed in a foreign area to be granted the allowances provided for
in title II. Conceivably those allowances could be granted an em-
ployee who is in a foreign area on temporary duty and who is receiv-
ing a per diem allowance while absent from his official station in the
United States. In such a case, we think the employee should be pre-
cluded from receiving both the per diem allowance and a quarters
allowanco and a cost-of-living allowance under this title since in effect
he would be compensated twice for the same expenses.
Section 311: For purposes of the storage provisions of the bill (title
III, pt. B), subsection (d) defines the term "furniture and household
and personal effects" and the term "household goods and personal
effects" to include "motor vehicles authorized to be shipped at Gov-
ernment expense." However it is not"clear whether it is intended that
the weight of an automobile be included in applying the weight limita
tion on property that may be stored. Also, we doubt the necessity
for a provision which would authorize storage of an automobile upon
arrival at a new post. Whereas storage of ordinary household goods
and effects might be necessary while the employee is locating perma-
nent resident quarters, the same ordinarily would not be true in the
case of an automobile which the employee doubtless would use from
the date of his arrival at the post. Finally, we recommend that it
be made clear in the bill or in your report that reimbursement of ordi-
nary garage rent paid by an employee who rents garage space in a
foreign area would not be reimbursable under the guise of storage.
Sections 332 and 333: Under these sections, there is no limit upon
the number of replacement vehicles that can be shipped at Govern-
ment expense whereas section 331 imposes a reasonable limitation-
one replacement vehicle in 4 years unless replacement is required
prior to that time by reason of conditions beyond the control of the
employee. Since it is not unusual for Government employees to sell
their automobiles in foreign countries, we think that a reasonable
limitation should be placed upon the number: of replacement auto-
mobiles which the Government will transport without charge under
these sections (secs. 332 and 333) also.
Section 401: Employees now stationed outside the United States-
other than officers and employees in the Foreign Service-are allowed
to accumulate 45 days' annual leave or 15 days more than employees
stationed within the United States. Officers and employees of the
Foreign Service, on the other hand, while entitled to accumulate only
30 days annual leave are granted, in addition, a special leave which
accrues at the rate of 1 week for each 4 months of service. The
,special leave is cumulative from year to year but may not be used as a
basis for any lump-sum leave payment. Section 401 would increase
the amount of 'leave Foreign Service officers and employees may
accumulate from 30 days to 45 days. At the same time it would
grant employees stationed in foreign areas, other than employees of
the Foreign Service, special leave benefits comparable : with those
allowable to officers and employees of the Foreign Service. It occurs
to us that you may wish to provide one or the other-of the benefits
the 45-day accumulation ceiling or the special leave provision ap-
plicable to' Foreign Service-rather than both benefits as presently is
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 Appro
OVE S DIFFERENTIALS AND ALLOWANCES , 43
ed For R l~ d2~I2t/ /gelCt~ioCIATi-~1ap92-00455R00Ot100110014-8
l~all'emp oyees s a Zoned In oreign areas
are grante special leave similar to that applicable to Foreign Service
,officers and employees it would appear reasonable to reduce their
leave accumulation ceiling to 30 days.
Sincerely yours,
FRANK H. WEITZEL,
Acting Comptroller General of the United States.
THE LIBRARIAN OF CONGRESS,
Washington, D.C., March 19, 1959.
Hon. JAMES II. MORRISON,
Committee on Post Office and Civil Service,
Chairman, Subcommittee on H.R. 5007,
Rouse of Representatives, Washington, D.C.
DEAR MR. MORRISON: I am very grateful to the Committee on
Yost Office and Civil Service for giving me an opportunity to' com-
ment on H.R. 5007.
I am very much interested in having the provisions of this bill
.apply to the Library of Congress because it is not presently authorized
to pay from its regular congressional appropriations post differentials,
and cost-of-living and similar allowances to Library personnel who
ma be stationed in foreign countries.
Authority to make such payments would meet an occasional need'
in connection with our normal foreign acquisitions program and would
:seem to be mandatory if the Library is to implement successfully the
foreign programs which the Librarian of Congress is authorized to
establish pursuant. to section 104(n) of the Agricultural Trade De-
velopment and Assistance Act of 1954 (Public Law 480) as. extended
and amended by Public Law 85-931.
I wish to thank you. very much for your continued interest in the
Library and should you need further information on the application
!of. H.R. 5007, I shall be glad to provide it.
Sincerely yours,
L. QUINCY MUMFORD,
Librarian of Congress,
U.S. CIVIL SERVICE COMMISSION,
Washington, D.C., June 11, 1959.
Eon. TOM MURRAY,
Chairman, Committee on Post Office and Civil Service,
&.S. House of Representatives, Washington, D.C.
DEAR MR. MURRAY: This is in further reply to your letters of Feb
ruary 27 and March 4, 1959, requesting. the views of the Civil Service
Commission on H.R. 5007.and H:R. 5099, identical bills to improve
the administration of overseas activities of the Government of the
United States, and for other purposes.
These bills are identical in purpose and substantially alike in detail
to three bills introduced in the 85th Congress, H.R. 3527, H.R. 4943
and H.R. 6853, identical bills upon which the Commission reported
favorably to your committee on March 3, 1958.
The Commission-favors the enactment of either H.R. 5007 or H.R.
.5099. For a number of years'the Commission has been interested in
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 44 YRSEAS DIFFERENTIALS AND ALLOWAN(( ciACT
Approved For Relea q 04#(~1 ac lv4iz Rya rA ~ ~1 lDQl for overseas
employees. We believe enactment of the proposed legislation will
accomplish these purposes.
The Bureau of the Budget has advised us that there is no objection
to the submission of this report to your committee.
By direction of the Commission:
Sincerely yours,
(Signed) ROGER W. JONES, Chairman.
CHANGES IN EXISTING LAW
In compliance with clause 3 of rule XIII of the Rules of the House
of Representatives, changes in existing law made by the bill (H.R.
7758), as introduced, are shown as follows (existing law proposed to be
omitted is enclosed in black brackets, new matter is printed in italics,
existing law in which no change is proposed is shown in roman) :
ADMINISTRATIVE EXPENSES ACT OF 1946
AN ACT To authorize certain administrative expenses in the Government service,
and for other purposes
Be it enacted by the Senate and House of Representatives 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, 1931) and the
expenses of transportation packin , crating, temporary ' storage,
drayage, and unpacking of 'his household goods and personal effects
(not to exceed seven thousand pounda..[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 the
officer or employee in accordance with said regulations. under the same
safeguards as are required under the 'Subsistence Expense Act of 1.926
(5 U.S.C. 828) : Provided further That the allowances herein authorized
shall not be applicable to officers and employees transferred in
accordance with the provisions of the Foreign Service Act of 1946:
Provided further, That no part of such expenses (including those of
officers and employees of the Foreign Service, Department of State)
shall be allowed or paid from Government funds where the transfer. is
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 r further, That expenses. of travel and transportation in
connection with the transfer of officers and employees to. posts..of
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 Appro'
OVE2?.AS DIFFERENTIALS AND ALLOWANCES ff' 45
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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, any civilian officer or employee who transports a house
trailer or mobile welling 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)) shall bb
entitled to a reasonable allowance, not to exceed 20 cents per'xnil.e, iii
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-4vailablo=for the transportation of household
goods and effects, as authorized'by this Act.
(d) When civilian officers and employees of the United States are
on duty at places designated by the heads of their respective depart=
ments or agencies as within zones from which their immediate families
should be evacuated for military or other reasons which create immi-
nent danger to life or property, or adverse living conditions seriously
affecting the health safety, or accommodations of said'families or
upon transfer or assignment to duty of such civilian officers and`'em-
ployees to places where their immediate families are not, for the afore=
said reasons, permitted to accompany them, their immediate families
and household goods may be transported at Government expense;
under such regulations as the heads of their respective departments
and agencies may prescribe, to such location as may be designated by,
the civilian officer or employee concerned or by the immediate families
of such officers and employees when circumstances prevent the officers
and employees from designating- such locations or when it is adrninis-
'tratively impracticable to determine the intent of the officers or em-
ployees in this respect: Provided, That if such location designated by
either the officers or employees or their 'immediate families is within
an area to which such movement is prohibited for the aforesaid reasons,
an alternate location may be designated by either the officers or em-
ployees concerned or their immediate families And provided further,
That such immediate families and household goods may later be trans-
ported at Government expense from the designated location or alter-
nate location authorized in this subsection to a duty station to which
the officers or employees concerned are assigned, and- to which the
'above restrictions do not apply.'
(e) Whenever any civilian officer or employee (including any new
appointee in accordance with section 7 of this Act) is. assigned to a
permanent duty station outside the continental United States to which
he cannot take or at which he-is unable to use his household goods and
personal effects or whenever the 'head of the department concerned au-
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 11 ?'"IRSEAS DIFFERENTIALS AND ALLOWANt(. ACT
Approved For Release 2Ad~ tb~ag~b~ ~ ~jQ O~( Q ~ i t est,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
wring anyfourear period, except that, as; a ; replacement for such motor
vehicle, one additional motor vehicle of any employee may b,e so transported
during such period upon approvals in, advance, by the head of the depart-
ment concerned and upon a determination, in advance, by such department
head that such replacement is necessary for reasons beyond the .contr. ol 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-
ployee 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 +oreign 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 1158) or paragraph (4) of section
of the Central Intelligence Agency Aet..of ,1949 (68_ Stat. L10, 72 Stat. 887;
Rn U
S
U Ana- ga..
.
.
(4)).
(Executed and obsolete.)
Snc. 3.
(Repealed and obsolete.)
SEC. 4. * * *.
(Executed.)
SEC. 5. Persons in the Government service employed intermittently
as c
nsulta
t
o
n
s 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 Government Travel Regulations,
Subsistence Expense Act -of 1926, as amended (5 U.S.C.; 821-833),
and the Act of February 14, 1931,,. as amended by this Act, and per-
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 Approv
OY '.AS DIFfUPE_NTTA~S D ALLOWANCES Zf.,, 47
purposes of security."
SEc. 7. (a) Appropriations for the, departments shall be available, in
sons serving without compensation or at $1 per annum may be allowed,
while away from their homes or regular places of business, transporta-
tion in accordance with said regulations and said Act of February 14,
1931, as so amended, and not to exceed $15 per diem within the limits
of the. continental United States and beyond such limits, not to exceed
the rates of per diem established by the Director of the Bureau of the
Budget.pursuant to section 3 of the Travel Expense Act.of 1949, as
amended (5 U.S.C. 836) in lieu of subsistence en route and at lace
of such service or employment unless a higher rate , is specifically
provided in an appropriation or other Act: And provided further,
That where due to the unusual circumstances of a .travel assignment
within the limits of the continental United States such . maximum
.per diem allowance would be much less than the amount required to
meet the actual and necessary, expenses - of the . trip, the heads, of
departments and establishments may, in accordance with regulations
,promulgated by the Director, Bureau of the Budget, pursuant to
section 7 of the Travel Expense Act of 1949 as Amended (5 U.S.C.
840) prescribe conditions under which ;reimbursement for such, ex-
penses may be authorized. on. an actual expense basis not to exceed
a :maximum amount to be specified in the, travel authorization, but
in any event not to exceed $25 for.. each day in travel status..
SEc. 6. Section 10 of the. Act, of March 3, 1933 (5 U.S C..73b), is
hereby amended to read as.follows:
"SEC. 1.0. 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
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ment. to places of employment outside continental, United States, and
for. such expenses on return to employees from their posts of. duty
outside continental United States to the places of their actual residence
at . time of assignment to duty outside. the. United States: Provided,
That such expenses of travel and transportation to posts of. duty
outside the continental United States shall not be allowed unless .and
until the person selected for appointment shall agree in writing to
remain in the Government service for twelve months following his
appointment, unless separated for reasons beyond his control , and
acceptable to the department or agency concerned and in case 'of'
violation of such agreement any moneys expended by the United
States on account of such travel and transportation shall be recoverable
from the individual concerned as a debt due the United States: And
provided further, That expenses, of return travel and transportation
upon separation from the service shall be allowed whether such
separation is for the purposes, of the Government. or for personal
convenience, but shall not be allowed unless such persons. selected
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'-
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 48 VIERSEAS DIFFERENTIALS AND ALLOWAIV ,- ACT
Approved For Release 2662am-- 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 thb 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 Presideht, 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 thepur-
pose of taking leave prior to serving at least two more years of overseas
duty: Provided further, That expenses of transportation of the im-
mediate family and shipment of household effects of any employee
from the post off 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 imni.ediate1amily 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 em loyee returns his immediate family and household
goods to the United States, including its Territories and possession's;
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 prescribed by the President, for expenses
of travel of persons appointed to positions in'the?natural and mathe.
matical sciences, engineering, and architectural fields, and to related
tcchnicAl 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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 OVE S. DIFFERENTIALS AND ALLOWANCES fi 49
Appro ed For Retch"1M2 Ms PCfAr 9"10]V5 ~j1 as pro-
vided for civilian officers and employees by e ravee enso 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;ouly after advertising a sufficient
time previously for proposals, except (1) when the amount involved.in
any one case does not exceed $2,5.00, (2) when the public exigencies
require the immediate delivery of the articles or performance. ofthe
service, (3) when only one_ source. of supply. is available and the Gov-
ernment purchasing or contracting officer stall so certify, or (4) when
the services.,are, required to be performed by the contractor in p.erso4
and are (A) of a technical and. professional nature or (B) under
Government, supervision and paid for, on a time basis. Except (l ).. as
authorized by section 29 of the Surplus Property -Act of 1944 , (50
U.S.C. App. 1:638), (2) when otherwise authorized by .law, or (3)
when the. reasonable. value involved in any one case does not, exceed
$500, sales and contracts of sale by the Government shall be governed
by the requirements of this section for advertising." .
,(b) ,Exemptions: from section 3709, Revised-Statutes, in. other law
in .amounts ofh$100or less are horebyrepealed.
(c) In the case of wholly owned Government corporations, this
section shall apply to their administrative, transactions only.
SEO. W. Whenever a department is authorized by law to:hold,hear-
ings and to subpena witnesses for appearance at said hearings,. wit-
nesses summoned to and attending such hearings shall be entitled to
the, same fees and, mileage, or expenses in the case of Government
officers and' employees, as. provided by law for witnesses attending
in the United. States courts.
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 ,5O (('''JERSEAS DIFFERENTIALS AND ALLOWA14.16 ACT
Approved For Release 2 1 1 Bang g Revised Statutes
5 . is cr oD amen ecf to read as o Tows:
"No advance of public money shall be made in any case unless
authorized by the adpropriation concerned or other law."
SEC. 12. The hea 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 classification laws (but as to agencies subject to the
Classification Act at rates not in excess of'- the per diem equivalent of
the highest rate payable under the Classification` Act, unless other
rates are specifically provided in the appropriation' or other law)
and, except in the case of stenographic reporting services by organiza-
tions, without regard to section 3709; Revised Statutes; as amended
by this Act.
SEC. '16. (a) Section :5 of the Act of July 16, 191-4,(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 ppur
chase or hire passenger motor vehicles for any branch of- the Gov-
ernment other than those for. theuse'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. I. "(b) Excepting appropriations;for'the Military and Naval Estab=
lishments, no appropriation shall he 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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 Approv
Alrli~
OVEf; AS DIFFERENTIALS AND ALLOWANCES
51
For Release 21~ /M~/( e: R ce 0045atRo000ari0c~i pail o any Gov-
ernment-owned passenger motor vehicle or aircraft not used
exclusively for official purposes; and `official purposes' shall not
include the transportation of officers and employees between
their domiciles and places of employment, except in case's 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 circuni-
stances warrant. The limitations of this paragraph shall not
apply to any motor vehicles or aircraft for official use of-;the
President, the heads of the -executive departments enumerated
in 5 U.S.C. 1, ambassadors, ministers; char 6s 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 `estiniates for such necessary
Appropriations' as are intended to be used' for purchase `or hire of
passenger motor vehicles or for purchase, ~maintenan'ce, or operation
of aircraft, specifying the sums required,. the public purposes for
which said conveyances are intended, the number of currently owned
conveyances to be continued in use; 'and the officials or employees by
whom all of such conveyances are. to be used..
"(e) The acquisition of aircraft or 'passenger motor vehicles by
any agency by transfer from another depart]ment.. 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: "acid 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 CoIuiiibia" is hereby amended
by adding at the end thereof "or' in the adjoining counties of Maryland
or: Virginia".
(c) ThatIportion of the Act'of.Jun6 23, 1906 (3 U.S C. 43) reading
as follows: "not exceeding $25,000 per annum" is hereby amended ,to
read, "not exceeding $40,000 per annum".
SEC. 18. The word "department" as used in this Act shall be con-
strued to include independent establishments, other agencies, wholly
owned Government corporations (the transactions of which corpora-
tions shall be subject to the authorizations and limitations of this
Act, except that section 9 shall apply to their administrative trans-
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 ltlL.l.. 111V L tLW W AN A ACT
actions only),. and the, government of the District of Columbi b 4
Approved For Release a, u
20`1 4XA~ i?ld d 9 @?I p P* atives o 0
r. n ,..,~,:~...... .. ~ ..,- - ~ . .. .,,. _ , or Elite of
r e
l
o
m]!
oyees thereof.
The words "continental. United. States" .as used herein shall-.be con-
strued to mean the forty-eight States and the District of Columbia.
The word "Government" shall be construed to include the government
of the District of Columbia. The word "appropriation" shall be
construed as. including funds made available by legislation under
section 104 of the Government Corporation Control Act, approved
December 6, 1945.
SEC. 1.9. Sections 1., 3, 4, 5, 7, 14, and 15 of this Act shall not apply
to persons whose pay and allowances are established by the Pay
Readjustment Act of 1942.
SEC. 20. Sections 1 and 2 of this Act shall become effective on the_
first day of thQ third? calendar_month following the, enactment hereof.
Sec. 21. This Act may be cited as tJJe "Administrative Expenses
Act of 1946". .
SEo. 22. Under such regulat2on$. as the President ,may Prescribe,
funds available: to the departments for .admin strative expenses may be
allotted to posts in foreign, countries-and; to resident missions tointer-
national,.organizatiions:.for representation-pu pose? in,- he: promotion of
o vial poi cies-and programs.
SEC. 28. Under such regulations q th he President may, pr. escribey funds
available to the departments for administrative expenses. may be allotted
to posts. inyfQreign Countries for the purpose of defraying, the unusual ex-
penses incident.to,. the operation and maintenance of official residences
suitable, for the chief representatives of the United, States at such hosts 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
[ADMINISTRATIVE E.STAIMISBMENT OF. SALARY DIFFERENTIALS
[SEC. 443. The President -may, under-,such-,r.egulations 'as he may
prescribe, establish rates` of salary ? differential, rho .exceeding 25 per
centum of basic'Salary, for Foreign Service-'offeers, Reserve officers,
and staff officers and employees assigned to posts involving extraordi-
narilp difficult living conditions;' excessive - physical hardshipor
notably unhealthful conditions.. The Secretary shall prepare and
maintain a list of such posts.]
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 ALLOWANCE'S 53
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TITLE IX.. ALLOWANCES AND BENEFITS
PART A-ALLOWANCES AND SPECIAL . ALLOTMENTS
(QUARTERS, COST OF LIVING}, AND REPRESENTATION ALLOWANCES
[SEC. 901. In accordance with such regulations as the President
may prescribe and notwithstanding the provisions of section 1765
of the Revised Statutes (5 U.S.C. 70) the Secretary is authorized
to grant to any officer or employee of the Service. who is a citizen of
the United States
[(1) allowances, Wherever: Government owned or rented guar-
ters are not available, for living quarters, heat, light fuel, gas
and electricity, including allowances for the cost of 'odging 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-
E(i) that the cost of -living at a post abroad is proportion-
ately ~so ..high-that an allowance is necessary to enable an
officer or employee of the Service at such post to carry on' his
work efficiently;
[(ii) that extraordinary and necessary expenses, not other-
wise compensated for, are incurred by an officer or employee
of the Service incident to the establishment of his residence
at any post of assignment abroad or at a post of assignment
in the continental United States between assignments to.
posts abroad;
[(iii) that an allowance is necessary. to assist an officer or
employee of the Service who: is compelled by reason of dan-
gerous, notably unhealthful or excessive adverse living;condi
tions at.' his post abroad or for the. con e..uienceemployee 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 stgra e, 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 'volu'me 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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 'OVEY i:AS DIFFERENTIALS AND ALLOWANCES 57
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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 be-shorter;
and.in connection with separation of an officer or employee of the
Agency, the cost of packin and unpacking, transporting to. and
from a place of storage, and storing for a period not to exceed three
months, his furniture and household and personal effects; but in no
instance shall the weight or volume of the effects stored together, with
the weight or volume of the effects transported exceed the maximum
limitations fixed by regulations, when not otherwise fixed by law.
*
[(3)(A) Order to the United States or its Territories and
possessions on leave provided for in 5 U.S.C. 30, 30a, '30b, or as
such sections may hereafter be amended, every officer, and em-
ployee of the agency who was a resident of the United States or its
Territories and possessions at time 'of employment;. upon com-
pletion of two years' continuous service abroad, or as soon as
possible thereafter: Provided), That such officer or employee has
accrued to his credit at the time of such order, annual leave suffi-
cient to carry him in a pay status while in the United States for
at least a thirty-day period;]
(3) (A) .Order to any of.the.several States of the United. States of
America: (including .the District of Columbia, the Commonwealth Hof
Puerto Rico, and any territory, or possession of the United States) on
leave of absence each off~ccer qr employee of the Agency who was a,
resident of the United States as described above) at time of employ-
ment, upon completion of two years' continuous service abroad,, or a&
soon as possible thereafter.
[(B) While in the continental United States on leave, the serv-
ice of any officer or employee: shall not be available for work or
duties except in the agency or for training. or for reorientation for
work; and the time of such-work or duty shall not be counted as
leave.]
(B) While in the United States (as described in paragraph (3) (A.)
of this section) on leave, the service of any officer or employee -shall
be available for work or duties in the Agency or elsewhere as the Di-
rector ma prescribe; and the time of . such' work or duty shall not
be 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 its:Territories
and possessions;. and such: time as .may be necessarily occupied
in awaiting transportation.]
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 r,~ Fr R S DIFFERENTIALS AND ALLOWANO,d: ACT
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(C) Where an officer or employee on leave returns to the United
States (as described in paragraph (3) (A) of this section), leave 2f
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
so -transported during such period upon approval, in -advance, by
the Director and upon a determination, in advance, by the Director
that such replacement is necessary for 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
Y Columbia, during such period, the transportation of a replacement
r such motor vehicle for such officer or employee may be authorized
by the Director in accordance with this paragraph.
* * * *
[(b) In accordance with such regulations as the President may pre-
scribe and notwithstanding the provisions of section 1765 of the
Revised Statutes (5 U.S.C. 70), the Director 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
SEC. 8. There is hereby authorized to be appropriated annually. to
the Department of State, out of any money in the Treasury not other-
wise appropriated, such sums as may be necessary for the payment
by the United.States of its share of the expenses of .the United Nations
as apportioned by the General Assembly in 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-
fication Act of 1923, as amended; i travel expenses without regard to
the Standardized Government Travel Regulations, as amended, the
Reference made to the Classification Act of 1923, as amended, is held and considered to mean the Classi-
ideation Act of 1949 (see ? 1106(a) of the Classification Act of 1949, 63 Stat. 972).
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 Approv
'OVEAS DIFFERENTIALS AND ALLOWANCES 59
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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 ig
provided for use of the Foreign Service pursuant to the Act of August
23, 1912, as amended (31 U.S.C..679), [and the allotment of funds,
similar to the allotment authorized, by section 902 of the Foreign
Service Act of. 1946, for unusual. expenses incident to the operation
and maintenance of such living- quarters, to be accounted for in
accordance with section 903 of said Act;] and unusual expenses similar
to those authorized by section 23 of the Administrative Expenses. Act of
1946, as amended; by, section 321?. of the Overseas Differentials and Allow-
ances. Act, incident to the operation and maintenance of such living
quarters; and such other expenses. as may be authorized by the Secre-
tary of State; all without regard to section 3709 of the. Revised
Statutes, as amended (41 U.S:C:::5).
SECTIONS 202' AND 203 OF THE ANNUAL AND SICK LEAVE
ACT OF 1951
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
o 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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 60 i+ ERSEAS DIFREl3ENTLILS 'AND ALLOWA , ACT
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(D) employees of the Canal Zone Government and the Panama.
Canal Company when employed on the Isthmus of Panama;
(E) commissioned officers of the Public 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 occu positions outside the [several States and the Dis-
trict of Columbia] United States.
(3) Section 204 of this title shall not U ply to officers and members.
of the Metropolitan Policefand 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 see.
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 dee .ed to be entitled to the:cpm--
pensation attached to his gflce soely. virtue of his status as an_
officer.
(2) The President, in.his discrpt}'on, _ may authorize leaves of ab-
sence to persons who are exempted from this title pursuant to sub-
aection (c)(1)~(B) foruse,ia the United States and its . Territories and.
possessions.,,.,Leaves ;of; absence,.,autborized under. this:: subsection-
shall not constitute i a ; jeave :syatam,> and . no such ; leave; of absence
which is not used shaiLbe 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 empployees.- to ; whom this,title,apphes:shall-
accrpe a?s fgl4pvs-
be entitled to annual leave with pa wh. h.shall
(1) one-half day for each ful biwce ly pay .period ir} }~Q case
of offipers, and exnploycea;:with .e?4 than three., years of; service,
(2) three-fourths day for each full biweekly pay,perigd(ggcept_.
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 ? OVE;1S DIFFERENTIALS AND ALLOWANCES 61
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that the accrual or ttie'las? full. 1?Bq% FqY ~ Y
shall be one and one-fourth days) in the case of officers and
,employees with three but less than fifteen years of ervthe ic case of
(3) one day for each full.biweekly pay p r o
officers and employees with fifteen years or more of service.
In determining years of service for the purposes of this subsection,
there shall be included all service creditable under the provisions of
section 5 of the Civil Service Retirement Act of May 29, 1930, as
amended, for the purposes of an annuity under such Act and the
determination of the period of service rendered may be made upon
the basis of an affidavit of the employee. In the case of an officer or
employee who is not paid on the basis of biweekly pay periods, the
leave provided by this title shall accrue on the same basis as it would
accrue if such officer or employee were paid on the basis of biweekly
pay periods.
(b) Any change in the rate of accrual of annual leave by an officer
or employee under the provisions of this section shall take effect as of
the beginning of the pay period following the pay period, or corre-
sponding period in the case of an officer or employee who is not paid
on the basis of biweekly pay periods, in which such officer or employee
,completes-the prescribed period of service.
(c) The annual leave provided for in this section, which is not used
by an officer or employee, shall accumulate for use in succeeding years
until it 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)l'Persons directly recruited or transferred b the Federal Government
(A) from the United States, or ,(B)ti froni, the .Commonwealth.of Puerto
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 62 }' E RSEAS DIFrERENTIALS AND ALLOWAN ACT
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aco or t o possessions o e na e r o ment outside the
area of recruitment or from which transferred.
(2) Persons employed locally but (A) (i) who were originally recruited
from the Lnited 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 penes-
sarily occupied'in,going to and from his post of duty and such time as
may be necessarily occupied in awaiting sailing or flight. The pro-
visions of this subsection shall not apply with. respect to more, than
one period of leave in any. twenty-four month period.]
. (e) The leave granted pursuant to this .title shall be exclusive of the
time actually and necessarily occupied in going to and from the post of
duty and exclusive of such time as may. be necessarily occupied in await-
ing transportation, in the case of an officer or employee (1) who is within
the purview of subsection (d) of this section, (?L) whose post of duty is
outside the nited States, and (3) who returns on leave to the United
States, or to his place of residence, which is outside the area of employ-
ment, in the Commonwealth of Puerto Rico or the possessions of the
United States. The provisions of this subsection 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 terminal leave or
lump-sum payment.]
(f) Upon completion of twenty-four, months of continuous service
outside the United States, officers and employees may be granted, in
accordance with regulations of the President, leave of absence at a rate
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 OVE AS DIFFERENTIALS AND ALLOWANCES 63
Approved For Relp ~ Q ~q~1e~ rQO4 5R Qfltt~(~~ bbl out regard
to any other leave provided by this title, for use in the United States, or,
if their respective places of residence are outside the area of employment,
in the Commonwealth of Puerto Rico or the possessions of the United
States. Such leave so granted may be accumulated for future use without
regard to the limitation in subsection (d) of this section but no such leave
shall be made the basis for any terminal leave or for any lump-sum
payment.
(g) Alien employees who occupy positions outside the [several
States and the District of Columbia] United States may, in the. dis-
cretion of the head of the department or agency concerned, be granted
leave of absence with pay not in excess of the amount of annual and
sick leave allowable under this title in the case of citizen employees.
(h) The annual leave provided for in this section, including such
leave as will accrue to any officer or employee during the year, may be
granted at any time during such year as the heads of the various
departments and independent establishments may prescribe.
(i) Notwithstanding the. provisions of subsection (a), an officer or
employee shall be entitled to annual leave under this title only after
having been employed currently for a continuous period of ninety days
under one or more appointments without break in service. In any case
in which an officer or employee completes a period of continuous
employment of ninety days there shall be credited to him an amount of
annual leave equal to the amount which but for this subsection, would
have accrued to him under subsection ~a) during such period.
SECTIONS 2, 13, AND 14 OF THE ACT OF AUGUST 1, 1956
SD, c. 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 arid per-
sonal effects of an employee of the Foreign Service who is assigned
to a post at which he is unable to use his furniture and effects,
under such regulations as the Secretary may prescribe;]
(c) employ aliens, by contract, for services abroad;
(d) provide for official functions and courtesies;
(e) purchase uniforms; and
(f) pay tort claims, in the manner authorized in the first para-
graph of section 2672, as amended, of title 28 of the United States
Code when such claims arise in foreign countries in connection
with Department of State operations abroad.
[SEc. 13. Allowances granted under section 901 (1) of the Foreign
Service Act of 1946 (22 U.S.C. 1131(1)), may include water, in
addition to the utilities specified.
[SEc. 14. Appropriations now or hereafter made available for allow-
ances granted under the authority in part A of title IX of the Foreign
Service. Act of 1946, as amended (22 U.S.C. 1131), including' an
allowance for water as authorized in section 13 of this Act shallbe
available for the payment of such allowances in advance.]
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 64 , 1RSEAS DIFFERENTIALS AND ALLOWAN y ACT
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Be it enacted by the Senate and House of Representatives of the United
States of America in Congress assembled, That under such regulations
as the heads of the respective departments concerned may prescribe
and the President approve, civilian officers 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 living
quarters, including heat, fuel, and light, notwithstanding the provi-
sions of section 1765 of the Revised Statutes .(U.S.C., title 5, sec.
70)]: Provided, That said rented quarters [or allowances in lieu
thereof] may be furnished only within the 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-OF-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 case 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., sec. 1131 and ollowing),
(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, (a), (e), or (f) of the first section of the Ad-
ministrative Expenses Act of 1946, as amended, or section 22
or 23 of such Act.
(2) COST-OF-LIVING ALLOWANCES.-In the case of civilians ofcers
or employees of the Government of the 'United States stationed outside
the continental United States (other than Alaska), amounts (other
than amounts received under title 11 of the; Overseas Di-fferentiitl an
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 OVE&S DIFFERENTIALS AND ALLOWANCES 117" 65
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Allowances Act) received as cost-of-living allowances in accordance
with regulations approved by the President.
(3) XPENSES OF TRAVEL AND TRANSPORTATION. In the case of
civ an officers and employees of the government of the United
States, amounts received as expenses of travel and transportation, or
costs of transportcttzm~, prouided. in lzetc t~rercof, from posts of duty
outside the continental United States (other than Alaska), to and
from their respectivelaces of residence, authorized by section 7 of
the Administrative Expenses Act of ,1946, as amended (5 U.S.C.,
sec. 73b-3).
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APPENDIXES
APPENDIX A
Section 220 of the Standardized Regulations (Government Civilians,
Foreign Areas), issued by the Secretary of State, provides as follows:
220 TEMPORARY LODGING ALLOWANCE
221 Description
*221.1 Definition
"Temporary lodging allowance" means a living-
quarters allowance (Sec. 215g) granted to an
employee for the cost of lodging, heat, light, fuel
(including gas and electricity), and water at
temporary quarters for the employee and his
family upon their first arrival at a new post.
221.2 Scope
Posts are grouped into 10 classes according to
lodging costs, that is, the price of room and bath,
including taxes, heat, and obligatory service
charges, at hotels ordinarily used by Government
employees at the respective posts. The price of
meals is not included in the computation of this
allowance. The amount paid is either the em-
ployee's actual daily expenses for allowable items
or the maximum prescribed rate, whichever is less
(See. 931).
222 Commencement of Grant
The grant of a temporary lodging allowance shall com-
mence as of:
a. The date of arrival of the employee at a new post, or
the date expenditure for temporary lodging begins,
if later;
b. The date his family arrives at the post, or the date
expenditure for temporary lodging begins, if later,
when arrival of the employee at a new post is delayed
by reason of his being ordered to report at another
place for consultation or temporary detail and his
family arrives at the new post before him;
c. The effective date of transfer or the date expenditure
for temporary lodging begins, whichever is later,
when the employee is on detail or leave at the post
to which he is transferred, the effective date of trans-
fer being considered the date of first arrival at the
new post.
*223 Termination of Grant
The grant of a temporary lodging allowance shall termi-
nate as of one of the following dates, whichever it
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 OVE .~S DIFFERENTIALS AND ALLOWANCES k4U
67
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the employee's leave without pay status ue to personas
.illness or illness or death of a member of family:
.a. Three months after the date of FIRST ARRIVAL
of the employee AT A NEW POST, or of a member
of his family if earlier (Sec. 222b) (Example: A
grant which commenced on February 13 would
terminate on or before May 12.) ;
b. The date payment for temporary lodging ceases;
c. The date of occupancy of residence quarters;
d. The date of the employee's departure, or the date of
departure of his family if later, under transfer orders.
Where the employee's departure for transfer precedes
that of his family, the temporary lodging allowance
at his previous post shall not extend beyond the date
receding the date of his arrival at. his new post.
e. The last day of his employment if the employee
resigns, retires, dies, or is otherwise separated from
the agency.
224 Determination of Maximum Rates
224.1 Classified Posts
The maximum rate at which a temporary lodging
allowance may be granted to an employee shall
be determined by. the classification of his post
(Sec. 920), family status (Sec. 215c) and the daily
rates prescribed in section 931, except that, in no
case shall an employee be granted a . temporary
lodging allowance at, a rate . in excess ' of the
aggregate amount of the per diem that would be
allowable to such em yee for himself and the
members of his 'family if they were in travel
status.
224.2 Unclassified Posts
The maximum rate at which a temporary lodging
allowance may be granted.. an employee assigned
to a post which is not classified shall be the rate
to which he would be entitled under these regula-
tions if the post were classified at the lowest
classification within the country of assignment for
this type of allowance (Sec. 920).
225-Determination of Actual Rate
*225.1 General Rule
The actual rate. at which a temporary lodg' g
allowance may be granted. to an employee shall be
the amount of his daily: expenditures for the
temporary lodging of himself and/or his family,
or the amount of the .maximum determined in
accordance with section 931 of these regulations,
whichever is less. In.addition to the daily cost
of the room, or rooms, and heat, light, fuel, and
water, if charged for separately, such amount
may include the daily cost of service fees and
taxes imposed by the management and/or munici-
pal or other local government. The cost of food,
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~R~a11' ErF1sf+~`I'SK1S~TLL~7w~N ^~ACT
beverages, or personally ordered services may not
be included. Where meals and lodging are
furnished at a single combined rate, the cost of
lodging plus any mandatory service fees and
taxes, shall not be considered to be more than 60
percent of the total cost.
225.2 Supporting Evidence
Evidence of the daily cost of temporary lodging
shall be a certified statement indicating the cost
and certifying payment therefor.
226 Efective Dates of Revisions of Grants
The grant of a temporary lodging- allowance shall be
appropriately revised as of
a. The effective date of an authorized change in the
classification of the post or the rate of the allowance
which may be granted; or
b. The date of a change in the family status of the
employee.
227 Payment
A temporary lodging allowance shall be paid at daily
rates multiplied by 14 to derive a bi-weekly rate.
APPENDIX B
In accordance with the intent of the committee, as set forth in
the "Explanation of the Bill, as Reported" (pax. (3) -of sec. 211), the
following are suggested matters to be considered in the preparation
of administrative regulations to carry out the purpose of such
Para a h 3
The department or agency head should determine, before the
granting of an initial repairs allowance, that' (1) the lessor will not
assume the cost of the repairs, (2) the quarters are below reasonable
standards of health, safety, or comfort in the United States, and
(3) no adequate rental quarters meeting such standards were known
to be available locally at a rate which, when combined with estimated
utility and tax costs, was within the. maximum authorized allowance
for the officer or employee concerned.
. An initial repairs allowance, granted in appropriate case, might
include payment or reimbursement of costs incurred within 3 months
after completion. of a rental agreement, in connection with the first
residence quarters at a post, for (1) repairs required to eliminate
leakage or drafts, to fortify or replace structural components, or to
replace defective plumbing, wiring, heating, lighting, or other essen-
tial facilities or equipment, (2) alterations to provide improved access
or ventilation and light'such as new or additional windows and doors,
and (3)' improvements such as required plumbing, heating, or light-
ing fixtures and equipment, screening:. pest controls, insulation where
required by extreme climate, painting where needed for hygienic
reasons or in connection with authorized repairs or alterations, and
other changes to make the quarters reasonablyhabitat
le.
The authority to grant initial allowances for repairs, alterations,
and imp'rovements' is not intended to cover pa}riting other thanfthat
specified above; repair, renovation; or replacement of furnishings;
erection of additions to any structure or erection or removal of
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garages or other outbuildings; improvement of grounds; materials
or labor except as required for authorized repairs, alterations, and
improvements discussed above; any repairs, alterations, or improve-
ments above reasonable minimum standards of health and safety in
the United States, as determined by the department or agency head;
any cost of repair, alteration, or improvement incurred later than ,3
months after completion of the rental agreement; and any repair,
alteration, or improvement to other than the first residence quarters
of an officer or employee at a post of duty.
The total initial repairs allowance should be the estimated cost of
allowable items, not exceeding the difference between estimated
quarters allowance of the officer or employee for 2 years and the
maximum authorized quarters allowance for 2 years. No officer or
employee should be granted more than one initial repairs allowance
during a period of continuous assignment to a post.
APPENDIX Ci
Studies, reports, and legislation relating to allowances, benefits, and
working conditions of Government employees in overseas areas
1. Senate Post Office and Civil Service Committee study conducted
pursuant to section 5(b) of Public Law 201, 82d Congress, and report
thereon submitted to the Vice President by Senator Olin D. Johnston
under date of January 28, 1953 (committee print)..
2. House Post Office and Civil Service Committee report entitled
"Report of the President's Adviser on Personnel Management on
Pay and Personnel Practices of Federal Employees Stationed Over-
seas," printed in House Report No. 1760, 83d Congress (June 7, 1954).
3. House Post Office and Civil Service Committee (Subcommittee
on Civil Service Commission and Personnel Programs) overseas hear-
ings held during the period September 22 to November 2, 1955 (84th
Cong., 1st sess.) (printed).
4. House Post Office and Civil Service Committee unanimous re-
port on "Personnel Programs and Policies of the Federal Government
in Overseas Operations," printed in House Report No. 2109, 84th
Congress (May 3, 1956).
5. House Post Office and Civil Service Committee (Subcommittee
on Civil Service) hearings on bills to improve the administration, of
overseas activities of the Government of the United States, and for
other purposes (H.R. 5007 and H.R. 5099) and on bills to provide'for
health and medical services for civilian employees in Government
service overseas and their dependents, and for other purposes (H.R.
5178 and H.R. 5238) (June 10, 1959).
Legislation
Eighty-second Congress: Public Law 201, section 5(b).
Eighty-third Congress: H.R. 9767; H.R. 9768.
Eighty-fourth Congress: H.R. 12193; H.R. 12194.
Eighty-fifth Congress: H.R. 3527; H.R. 6141 (health program);
H.R. 12225 (teachers; see Public Law 86-91).
Eighty-sixth Congress: H.R. 4398 and H.R. 4690 (teachers; see
Public Law 86-91); H.R..5007, H.R. 5099, H.R. 7758 (allowances);
H.R. 5178 and H.R. 5238 (health program).
O
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