S. 2233

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP91-00965R000300120002-3
• Release Decision: RIFPUB
• Original Classification: K
• Document Page Count: 9
• Document Creation Date: December 15, 2016
• Document Release Date: August 18, 2003
• Sequence Number: 2
• Publication Date: June 23, 1959
• Content Type: REGULATION

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86rx CONGRESS
1ST SESSION
S. 2233
IN THE SENATE OF THE UNITED STATES
JUNE 23, 1959
Mr. FuLBRIGIIT (by request) introdnced the. following bill; which was read twice
and referred to the Committee on Foreign Relations
A BILL
To amend the Foreign Service Act of 1946, as amended and
for other purposes.
Be it enacted by the Sena~e and House of Representa-
tives of the United States of America in Congress assembled,
3 That this Act may be cited as the "Foreign. Service Act
4 Amendments of 1959".
5 SEC. 2. Section 444 of such Act and the heading thereto
6 is amended to read as follows :
7 "COMPENSATION PLANS FOR ALIEN CLERKS AND
S EMPLOYEES
9 "SEC. 444. (a) The Secretary shall, in accordance with
10 such regulations as he may prescribe, establish compensation
11 plans for local (alien) employees of the Service: Provided,
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1 That such compensation plans for local employees shall be
2 based upon prevailing wage rates and compensation prac-
3 tices for corresponding types of positions in the locality, as
4 is consistent with the public interest.
5 "(b) For the purpose of performing functions abroad,
6 other departments and agencies of the Government are au-
7
8
9
thorzed to administer local (alien) employee programs in
accordance with the applicable provisions of this Act."
SEC. 3. (a) The heading to section 516 of such Act is
amended to read as follows : "ADMISSION TO CLASS 7 OR 8".
11 (b) Section 516 of such Act is amended by striking
out "SEC. 516" and inserting in lieu thereof "SEC. 516. (a.)
and 'by adding at the end thereof an new paragraph (b)-
14. which shall read as follows :
15 " (b) The Secretary may furnish the President with the
16 names of those persons who have passed such examinations
17 and are eligible for appointment as Foreign Service officers
18 of class 8, whom he recommends for appointment directly
1.9 to class 7 when in his opinion, their age, experience, or
other qualifications make such an appointment appropriate."
SEC. 4. Section 517 of suchAct is amended by inserting
22 in the first sentence after the phrase "classes 1 to 7, inclu-
23 sive," the phrase "except as provided in section 5161 (b) of
24 this Act," and by striking out the second and third sentences
25 thereof.
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SEC. 5. (a) Subparagraphs (1)' and (2) of paragraph
2 (b) of section 634 of - such Act are amended to read as
3 follows
4 " (1) one-twelfth of a year's salary at his then cur-
5 rent salary rate for each year of service and proportion-
6 ately for a fraction of a year, but not exceeding a total
7 of one year's salary at his then current - salary rate, pay-
8 able without interest, from the Foreign Service Retire-
ment and Disability Fund, in three equal installments
on the 1st day of January following the. officer's separa-
tion and on, the- two anniversaries of this date immedi-
ately following : Provided, That in special cases, the
Secretary may in his discretion accelerate or combine
the installments ; and
" (2) a refund of the contributions made to the
Foreign Service Retirement and Disability ,Fund, with
interest as provided in section 841 (a) , except that in
lieu of such refund such offic may, if he has at least
five years ? of service credit toward retirement under this
system, excluding military or naval service that ~ is
.credited in accordance with .the provisions of section
851 or 852 (a), elect to receive retirement benefits of
reaching. the age of sixty in accordance with the pro-
:visions of section 821. In the event that an officer who
was separated from classes 4 or 5 and who has elected
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1 to receive retirement benefits dies before reaching the
2 ago of sixty, his death shall be considered a death in
3 service within the meaning of section 832. In the event
4 that an officer who was separated from classes 6 and 7
5 and who has elected to receive retirement benefits dies
6 before reaching the age of sixty, the total amount of his
7 contributions made to the Foreign Service Retirement
8 and Disability Fund, with interest as provided in section
9 841 (a) ."
10 (b) Paragraph (c) of section 634 of such Act shall be
11 amended by striking out the word "retired" in the first sen-
12 tence and inserting in lieu thereof the word "separated".
13 SEC. 6. Section 635 of such Act and the heading thereto
14 are amended to read as follows:
15 "FOREIGN SERVICE OFFICERS RETIRED FROM CLASS 7 OR 8
16. "SEC. 635. Any Foreign Service officer in class 7 who is
17 appointed under the provisions of section 516 (b) and any
18 Foreign Service officer in class 8 shall occupy probationary
19 status. The Secretary may terminate his service at any
20 time."
21 SEC. 7..-Paragraphs (b) and (c) of section 637 of such
22 Act are amended to read as follows :
23 " (b) Any participant in the Foreign Service Retire
24 ment and Disability System separated under the provisions
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1 of paragraph (a) of this section shall receive a, refund of the
2 contributions made to the Foreign Service Retirement and
3 Disability Fund, with interest, as provided in section 841 (a)
4 except that in lieu of such refund such officer may, if he has
5 at least five years of service credit toward retirement under
6 this System, excluding military or naval service that is
7 credited in accordance with the provisions of sections 851
8 or 852 (a), elect to leave his contributions in the Fund and
9 receive an annuity, computed as prescribed in section 821
10 commencing at the age of sixty years. In the event that an
11 officer who has elected under the provisions of this section
12 to receive a deferred annuity dies before reaching the age of
13 sixty, his contributions to the Fund, with interest, shall be
14 paid in accordance with the provisions of sections 841 and
15 881.
16 " (c) Any officer or employee of the Service who is
17 not a participant in the Foreign Service Retirement and
18 Disability System shall be entitled only to such benefits as
19 shall accrue to him under the retirement system in which
20 he is a participant."
21 SEC. 8. Section 912 of such Act is amended by changing
22 the heading thereto to read "LOAN or HOUSEHOLD FUR-
23 NISIIIN(S AND EQUIPMENT" and by inserting between the
'S.2233--2
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1 words "with household" the word "basic" and by inserting
2 between the words "household equipment" the phrase "fur-
3 nishings and".
4' SEC. 9. Section 913 of such Act and the heading thereto
5 is amended to read as follows:
6
"TRANSPORTATION OF MOTOR VEHICLES
7 "SEC. 913. The Secretary may, notwithstanding the
8 provisions of any other law, transport for or on behalf of
9
10
an ' officer or employee of the Service, a privately owned
motor. vehicle or replacement thereof in any case where he
11 shall determine that water, rail, or air transportation of the
12 motor vehicle or replacement thereof is necessary or ex-
13 pedient for any part or of all the distance between points of
14 origin and destination."
15 SEC. 10. (a) Paragraph (4) of section 104 (a) of the
16 Internal Revenue Code of 1954 (26 U.S.C. 104 (a) (4) )
17 (relating to the exclusion from gross income of compensa-
18 tion for injuries and sickness) is hereby. amended to read as
19 follows :
20 " (4) amounts received as a pension, annuity, or
21' similar allowance for personal injuries or sickness result-
22 ing.from active service in the armed forces of any coun-
23 try or in the Coast and Geodetic Survey or the Public
24 Health Service, or as a disability annuity payable under
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1. the provisions of section. 831 of the. Foreign Service Act
2 of -1946,. as amended (2,2. U.S.C. 1081; 60 Stat. 1021)."
3 (b) (1) Section 402 (a) of the. Internal Revenue Code
4 of 1954 (relating to the taxability of a beneficiary of an em-
5 ployee's trust) is hereby amended as follows :
6 (a.) By striking out in the first sentence of paragraph
7 (1) thereof ".paragraph (2) " and inserting in lieu thereof
"paragraphs and (3) ", and
9 (b) By redesignating paragraph (3) thereof as para.
10 graph (4) and by inserting after paragraph (2) thereof the
11 following new paragraph
12
13
14
15
16
17
18
24.
" (3) The amount includible under this subsection as
the gross income of a nonresident alien individual with
respect to a distribution made by the United States in
respect of services performed by an employee of the
United States shall not exceed an amount which bears
the same ratio to the amount includible in gross income
without regard to this paragraph as the aggregate com-
pensation paid by the United States to. such employee
for such services and includible in gross income under
this subtitle or prior income tax laws bears to the aggre-
gate compensation paid by the United States to such
individual whether or not includible in gross income."
(2) Section 871 of the Internal Revenue Code of 1954
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1 (relating to the tax imposed on nonresident alien individuals)
2 is hereby amended by striking out subsection (d) thereof and
3 inserting in lieu thereof the following new subsection :
4 " (o) CROSS REFERENCE.-
(1) For doubling of tax on citizens of certain foreign
countries, see section 891.
(2) For taxability of amounts paid by the United
States to certain nonresident alien employees or their
beneficiaries, see section 402(a) (3)."
1.0
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14
SEC. 11. The amendment made by section 10 of this
Act shall be effective with respect to taxable years ending.
after the date of enactment of this Act.
SEC. 12. Notwithstanding the provisions of this Act,
existing rules, regulations of or applicable to the Foreign
Service of the United States shall remain in effect until
revoked or rescinded or until modified or superseded by
regulations made in accordance with the provisions of this
Act, unless clearly inconsistent with the provisions of this
Act.
15 SEC. 13. The following section in the Foreign Service.
16 Act of 1946, as amended, is hereby repealed :
17 (1) Section 637 (d) of such Act.
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86TH CONGRESS
1sT SESSION
S. 2233
A BILL
To amend the Foreign Service Act of 1946, as
amended, and for other purposes.
By Mr. FuixmGHT
JUNE 23, 1959
Read twice and referred to the Committee on
Foreign Relations
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