(Classified)

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP68-00140R000100220002-5
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 11
• Document Creation Date: November 11, 2016
• Document Release Date: May 19, 1999
• Sequence Number: 2
• Content Type: OPEN

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Public Law 86-707
86th Congress, H. R. 7758
September 6, 1960
74 STAT. 792.
To improve the administration of overseas activities of the Government of the
United States, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congre8s assembled, That titles I to V Overseas Dif-
inclusive, of this Act may be cited as the "Overseas Differentials and ferententials
Allowances Act". and Allowances
Act.
TITLE I-PURPOSE AND DEFINITIONS
PART A-PURPOSE
SEC. 101. The Congress hereby declares that it is the purpose of this
Act to improve and strengthen the administration of overseas ac-
tivities of the Government by-
(1) providing a means for more effectively compensating
Government employees for the extra costs and hardships' inci-
dent to their assignments overseas,
(2) providing for the uniform treatment of Government em-
ployees stationed overseas to the extent justified by relative
conditions of employment,
(3) establishing the basis for the rfiore efficient and equitable
administration of the laws compensating Government employees
for the extra costs and hardships incident to their assignments
overseas, and
(4) facilitating for the Government the recruitment and re-
tention of the best qualified personnel for civilian service over-
seas.
PART B-DEFINITIONS
SEC. 111. As used in this title, title II, and section 522 of title V,
the term-
(1) "Government" means the Government of the United States of
America ?
(2) "Government agency" means (A) each executive department
of the Government, (B) each independent establishment or agency
in the executive branch of the Government, including each corporation
wholly owned (either directly or through one or more corporations)
by the Government, (C) the General Accounting Office, and (D) the
Library of Congress;
(3) "Employee" means an individual employed in the civilian serv-
ice of a Government agency and more specifically defined in reg-
ulations prescribed by the President, but including ambassadors,
ministers, and officers of the Foreign Service of the United States
under the Department of State;
(4) "United States", when used in a geographical sense, means the
several States of the United States of America 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; and
(6) "Foreign area" means any area (including the Trust Territory
of the Pacific Islandsituated outside the United States, the Com-
monwealth of Puerto Rico, the Canal Zone, and the possessions of the
United States.
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74 STAT. 793.
TITLE II-ALLOWANCES AND DIFFERENTIALS IN
FOREIGN AREAS
PART A-GENERAL PROVISIONS
SEC. 201. Notwithstanding section 1765 of the Revised Statutes
(5 U.S.C. 70), the 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--
1) who is a citizen of the United States, and
(2) whose rate of basic compensation is fixed by statute or,
without taking into consideration the allowance and differentials
provided by this title, 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,
except that such allowances and differentials may be paid to an em-
ployee officially stationed in a foreign area who is not a citizen of the
United States to the extent that the payment of si:.ch allowances and
differentials to such noncitizen employee is authorized by any pro-
vision of law other than this title.
SEC. 202. Allowances granted under this title may be paid in ad-
vance, or advance of funds may be made therefor, through the proper
disbursing officer in such sums as may be deemed advisable in con-
sideration of the need and the period of time during which expendi-
tures must be made in advance by the employee or employees. Any
advance of funds not subsequently covered by allowances accrued to
the employee or employees under this title shall be recoverable by the
Government by setoff a ainst accrued salary pay, compensation,
amount of retirement credit, or other amount cue from the Govern-
ment to such employee or employees and by such other method as may
be provided by law for the recovery of amounts owing to the Govern-
ment.
The head of the Government agency concerned may, in accordance
with regulations of the President, waive in whole or in part any right
of recovery under this section, if it is shown that such recovery would
be against equity and good conscience or against the public interest.
SEC. 203. The allowances and differentials authorized by this title
shall be paid in accordance with regulations prescribed by the Presi-
dent establishing rules governing payments thereof and the respec-
tive rates at which such payments shall be made, the foreign areas, the
groups of positions, and the categories of employees to which such
rates shall apply, and other related matters.
PART B-QUARTERS ALLOWANCES
SEC. 211. Whenever Government-owned or Government-rented
quarters are not provided without charge for an employee in a foreign
area, one or more of the following quarters allowances may be granted
to such employee where applicable :
(1) A temporary lodging allowance for the reasonable cost of
temporary quarters incurred by the employee and his family (A)
for a period not in excess of three months after first arrival at a new
post of assignment in a foreign area or a period ending with the
occupation of residence quarters, whichever shall be shorter, and
(B) for a period of not more than one month immediately preceding
final departure from the post subsequent to the necessary evacua-
tion of residence quarters;
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74 STAB`. 794.
(2) A living quarters allowance for rent, heat, light, fuel, gas,
electricity, and water, without regard to the limitations of section
3648 of the Revised Statutes, as amended (31 U.S.C. 529) ; and
(3) Under unusual circumstances payment or reimbursement for
extraordinary, necessary, and reasonable expenses, not otherwise com-
pensated for, incurred in initial repairs, alterations, and improve-
ments to an employee's privately leased residence at a post of assign-
ment in a foreign area, if such expenses are administratively approved
in advance and if the duration and terms of the lease justify payment
of such expenses by the Government.
PART C-COST-OF-LIVING ALLOWANCES
SEC. 221. The following cost-of-living allowances may be granted,
where applicable to an employee in a foreign area :
(1) 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;
(2) A transfer allowance for extraordinary, necessary, and reason-
able expenses, not otherwise compensated for, incurred by an em-
ployee incident to establishing himself at any post of assignment in
a foreign area or at a post of assignment in the United States be-
tweenassignments to hosts in foreign eas
ar;
(3) A separate maintenance allowance to assist an employee who
is compelled, by reason of dangerous, notably unhealthful, or exces-
sively 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, his wife or his
dependents, or both;
(4) An education allowance or payment of travel costs to assist an
employee with the extraordinary and necessary expenses, not otherwise
compensated for, incurred by reason of his service in any foreign area
or foreign areas in providing adequate education for his dependents,
as follows :
(A) An allowance not to exceed the cost of obtaining such elemen-
tary 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, without
regard to the limitations of section 3648 of the Revised Statutes, as
amended (31 U.S.C. 529) ; but the amount of the allowance granted
shall be determined on the basis of the educational facility used;
(B) The travel expenses of dependents of an employee to and from
a. school in the United States to obtain an American secondary or
underggraduate college education, not to exceed one trip each way for
each de endent for the purpose of obtaining each type of education;
but no allowance payments under subparagraph (A} of this paragraph
(4) shall be made for any dependent during the twelve months follow-
ing his arrival in the United States for secondary education pursuant
to authority contained in this subparagraph (B). Notwithstanding
section 111(6) of this Act, travel expenses, for the purpose of obtain-'
ing undergraduate college education, may be authorized under this
subparagraph (B), under such regulations as the President may
prescribe, for dependents of employees who are citizens of the United
States stationed in the Canal Zone.
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PART D-POST DIFFERENTIAL
SEC. 231. A post differential may be granted on the basis of condi-
tions of environment which differ substantially :from conditions of
environment in the continental United States and warrant additional
compensation as a recruitment and retention incentive. Such differen-
tial also may be granted to any employee who is officially stationed in
the United States and who is on extended detail in a foreign area.
Additional compensation paid as a post differential shall not in any
instance exceed 25 per centum of the rate of basic compensation.
TITLE III-MISCELLANEOUS EXPENSES
PART A-STORAGE
SEC. 301. (a) Paragraphs (4) and (5) of section 911 of the Foreign
60 Stat. 1026. Service Act of 1946 (22 U.S.C. 1136 (4) and (5)) are amended to
read as follows :
"(4) 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 Service, when
he is absent from his post of assignment under orders, or when
he is assigned to a post to which he cannot take or at which he is
unable to use such furniture and household and personal effects,
or when it is in the public interest or more economical to authorize
storage; but in no instance shall the weight or volume of the
effects stored together with the weight or volume of the
effects transported exceed the maximum limitations fixed by
regulations, when not otherwise fixed by law;
"(5) the cost of 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 Service in
connection with 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 Service, the ,,ost of packing and
unpacking, transporting to and from a place of storage, and
storing for a period not to exceed three montlis,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 limita-
tions fixed by regulations, when not otherwis-,- fixed by law."
(b) Paragraphs (1) (D) and (E) of section 9- of the Central In-
telligence Agency Act of 1949 (63 Stat. 209, 72 Stat. 337; 50 U.S.C.
I03e(a) 1) (D) and (E) ) are amended to read as follows:
"(D) pay the cost of packing and unpacking, transporting to
and from a place of storage, and storing the furniture and house-
hold and personal effects of an officer or employee of the Agency,
when he is absent from his post of assignment under orders, or
when he is assigned to a post to which he cannot take or at which
he is unable to use such furniture and household and personal
effects, or when it is in the public interest or more economical to
authorize storage; but in no instance shall the weight or volume
of the effects stored together with the weight or volume of the
effects transported exceed the maximum limitations fixed by
regulations, when not otherwise fixed by law;
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4 STAT. 796.
"(E) pay the cost of packing and unpacking, transporting to
and from a place of storage, and storing the furniture and house-
hold and personal effects of an officer or employee of the Agency
in connection with 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 ar-
rival at the new post, or until the establishment of residence
quarters, whichever shall be shorter; and in connection with sepa-
ration of an officer or employee of the Agency, the cost of packing
and unpacking, transporting to and from a place of storage, and
storing for a period not to exceed three months, his furniture and
household and personal effects; but in no instance shall the weight
or volume of the effects stored together with the weight or volume
of the effects transported exceed the maximum limitations fixed by
regulations, when not otherwise fixed by law." I ( The first section of the Administrative Expenses Act of 1946
(60 tat. 806), as amended (5 U.S.C. 73b-1), is amended-
(1) by striking out "(not to exceed seven thousand pounds if
uncrated or eight thousand seven hundred and fifty pounds if
crated or the equivalent thereof when transportation charges are
based on cubic measurement)" in subsection (a) of such sec-
tion and inserting in lieu thereof "(not to exceed seven thou-
sand pounds net weight)"; and
(2) by adding at the end of such section the following new
subsection :
"(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 authorizes storage of any such property in the public in-
terest or for reasons of economy, storage expenses (including re-
lated transportation and other expenses) may be allowed such officer
or employee in accordance with regulations prescribed by the Presi-
dent; but in no instance shall the weight of the property stored under
this subsection, together with the weight of property transported un-
der subsection (a); exceed the maximum weight limitation provided
by subsection (a).'
(d) The term "furniture and household and personal effects", as
used in the amendments made by this part to the Foreign Service
Act of 1946, as amended and the Central Intelligence Agency Act
of 1949, as amended, and the term "household goods and personal
effects", as used in the amendments made by this part to the Ad-
ministrative Expenses Act of 1946, as amended, mean such personal
property of an employee and the dependents of such employee as the
Secretary of State and the Director of Central Intelligence, as the
case may be, with respect to the term "furniture and household and
personal effects", and the President, with respect to the term "house-
hold goods and personal effects", shall by regulation authorize to be
transported or stored under the amendments made by this part to such
Acts (including, in emergencies, motor vehicles authorized to be
shipped at Government expense). Such motor vehicle shall be ex-
cluded from the weight and volume limitations prescribed by the
laws set forth in this part.
60 Stat. 999.
22 USC 801
note.
63 Stat. 208.
50 USC 403a
note.
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Department of State and to the Central Intelligence Agency but
shall not affect the authority contained in section 913 of the Foreign
Service Act of 1946 (60 Stat. 1027; 22 U.S.C. 1138) or paragraph (4)
of section 4 of the Central Intelligence Agency Act of 1949 (63 Stat.
210 72 Stat. 337; 50 U.S.C. 403e(a) (4) ).' 74 STAT. 797.
gEC. 322. Section 913 of the Foreign6ervice Act of 1946 (60 Stat. 74 STAT. 798.
1027; 22 U.S.C. 1138) is amended to read as follows:
"TRANSPORTATION OF MOTOR VEHICLES
"SEC. 913. The Secretary may, notwithstanding the provisions of
any other law, transport for or on behalf of an officer or employee of
the Service, a privately owned motor vehicle in any case in which he
shall determine that water, rail, or air transportation of the motor
vehicle is necessary or expedient for all or any part of the distance
between points of origin and destination. Not more than one motor
vehicle of any such officer or employee may be transported under
authority of this section during any four-year period, except that, as
a replacement for such motor vehicle, one additional motor vehicle
of any such officer or employee may be so transported during such
period upon approval, in advance, by the Secretary and upon a deter-
mination, in advance, by the Secretary that such replacement is neces-
sary for reasons beyond the control of the officer or employee and is
in the interest of the Government. After the expiration of a period
of four years following the date of transportation under authority
of this section of a privately owned motor vehicle of any officer or
employee who has remained in continuous service outside the con-
tinental United States (excluding Alaska and Hawaii) during such
period, the transportation of a replacement for such motor vehicle for
such officer or employee may be authorized by the Secretary in accord-
ance with this section."
SEC. 323. (a That part of section 4(a) of the Central Intelligence
Agency Act of~1949, as amended (63 Stat. 209 73 Stat. 337; 50 U.S.C.
403e), which precedes paragraph. (1) thereof, is amended-
(1) by striking out "(a)"; and
(2) by striking out "permanent-duty stations outside the con-
tinental United States, its territories, and possessions," and insert-
ing in lieu thereof "duty stations outside the several States of
the United States of America, excluding Alaska and Hawaii, but
including the District of Columbia,".
(b) Paragraph (4) of section 4 of the Central Intelligence Agenc
Act of 1949, as amended (63 Stat. 210, 73 Stat. 337; 50 U.S.C. 403e(a
(4) ), is amended to read as follows:
"(4) Notwithstanding the provisions of any other law;, trans-
port for or on behalf of an officer or employee of the Agency, a
privately owned motor vehicle in any case in which it shall be
determined that water, rail, or air transportation of the motor
vehicle is necessary or expedient for all or any part of the dis-
tance between points of on in 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 trans-
ported during such period upon approval, in advance, by the Di-
rector and upon a determination, in, advance, by the Director
that such replacement is necessary for reasons beyond the con-
trol of the officer or employee and is in the interest of the Govern-
ment. After the expiration of a period of four years following
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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 outsic.e the several States of
the United States of America, excluding Alaska and Hawaii,
74 STAT. 798. but including the District of Columbia, curing such period, the
74 STAT. 799. transportation of a replacement for such motor vehicle for such
officer or employee may be authorized by the Director in accord-
ance with this paragraph."
U5 Stat. 679.
Annual leave.
Maximum aocu-
mulation.
TITLE IV-AMENDMENTS TO ANII'UAL AND SICK
LEAVE ACT OF 1951
SEC. 401. Subsections (d), (e), and (f) of section 203 of the An-
nual;and Sick Leave Act of 1951, as amended (5 U.S.C. 2062 (d),
(e), and (f) ), are amended to read as follows:
" (d) Notwithstanding the provisions of subsection (c), a maxi-
mum 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
biweekly pay periods, in any year is authorized for the following
categories of employees of the Federal Government stationed outside
the United States:
" (1) Persons directly recruited or transferred by the Federal Gov-
ernment (A) from the United States or (B) from the Commonwealth
of Puerto Rico or the possessions of the United States for employment
outside the area of recruitment or from which transferred.
"(2) Persons employed locally but (A) (i) who were originally
recruited from the United States, or from the Commonwealth of
Puerto Rico or the possessions of the United States but outside the
area of employment, (ii) who have been in substantially continuous
employment by other Federal agencies, United States firms, interests
or organizations, international organizations in which the United
States Government participates, or foreign governments, and (iii)
whose conditions of,employment provide for their return transporta-
tion to the United States or the Commonwealth 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.
"(8) 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) 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 awaiting transportation, in the case of an officer or employee (1)
who is within the purview of subsection (d) of this section, (2) whose
post of duty is outside the United States, ar.d (8) who returns on
leave to the United States, or to his place of residence, which is outside
the area of employment, 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.
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"(f) .VDj t Q4 of twenty-four months of continuous service
outside Unite .States, officers an_ and em Io_yees may be'granted in
accordance with regulations of this President, leave of _absence at a
rate not to exceed one week for each four months of such service
without regard to any other leave provided by this title, for use in 74 STAT. 799.
the United States, or, if their respective places of residence are out- 74 STAT. 800.
side 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 sub-
section (d) of this section but, no such leave shall be made the basis
for any terminal leave or for any lump-sum payment."
SEC. 402. (a) Section 202(b) (2) of the Annual and Sick Leave
Act of 1951, as amended (5 U.S.C. 2061(b) (2) ), is amended to read
as follows:
"(2) This title, except section 203(g), shall not apply to alien Exceptions.
employees who occupy positions outside the United States."
(b) Section 203(g) of such Act, as amended (5 U.S.C. 2062(g)),
is amended by striking out "the several States and the District of
Columbia" and inserting in lieu thereof "the United States".
(c) Section 202 of such Act, as amended (5 U.S.C. 2061), is
amended by adding at the end of such section the following new
subsection; Unite
"(d) As used in this title, the term `United States' means the stetesa.
several States of the United States of America and the District of
Columbia."
SEC. 403. The amendments made by this title to the Annual and Effective
Sick Leave Act of 1951, as amended, shall take effect on the first day date.
of the first pay period following the date of enactment of this Act.
TITLE V-APPROPRIATION, REPEAL, AMENDATORY,
AND MISCELLANEOUS PROVISIONS
PART A-APPROPRIATION PROVISIONS
SEC. 501. (a) There are hereby authorized to be appropriated such
sums as may be necessary to carry out the purposes of this Act and the
amendments made by this Act.
(b) A propriations or funds otherwise available, for the fiscal year
ending June 30, 1960 to any department, agency, establishment or
corporation of the dovernment of the United States of America
within the purview of this Act or of any amendment made by this Act
are hereby made available for the purposes of this Act and of any
such amendment in accordance with the authority contained in this
Act or contained in any law amended by this Act and in accordance
with such regulations as the President may prescribe.
PART B-REPEAL AND AMENDATORY PROVISIONS
SEC. 511. (a) The following provisions of law are hereby repealed:
(1) Sections 443, 902, 903, and 911(9) of the Foreign Service Act
of 1946, as amended (60 Stat. 1006, 1025, and 1026; 69 Stat. 27; 22
U.S.C. 888, 1132, 1133, and 1136(9)) ;
(2) Sections 2(b), 13 and 14 of the Act entitled "An Act to provide
certain basic authority for the Department of State", approved August
1, 1956 (70 Stat.. 890, 892; Public Law 885, Eighty-fourth Congress;
5 U.S.C. 170g (b), 170r, and 170s) ; and
(3) Sections 1(d) and 4 b) of the Central Intelligence Agency Act
of 1949, as amended (63 Stat. 208 and 211; 50 U.S.C. 403a(d) and
403e(b)).
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(b) Any provision of law which is not repealed by subsection (a)
of this section but is inconsistent with any provision of this Act or of
any amendment made by this Act 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 provision of this let or of such
74 STAT. Soo, amendment.
74 STAT. 801. c (1) Section 1(c) of the Central Intelligence Agency Act of
1949 (63 Stat. 208. 50 U.S.C. 403a(c)) is amended by striking out
"Government; and"' and inserting in lieu thereof "Government.'.
(2) Paragraph (1,) (A) of section 4 of the Central Intelligence
Agency Act of 1949, as amended (63 Stat. 209; 72 Stat. 337; 50
U.S.C. 403e(a) (1) (A) ), is amended to read as follows:
"(1) (A) pa the travel eenses of officers and empployees of
the Agenc , me u iii expenses incurred while travelmur
-suaiitto a'uthorizec llolxiej ave."
(a-) Paragraph '(8) (A) of section 4 of such Act (63 Stat. 209 and
210; 72 Stat. 337; 50 U.S.C. 403e(a) (3) (A)) is amended to read as
follows :
"(3) (A) Order to any of the several States of the United
States of America (including the District of Columbia, the
Commonwealth of Puerto Rico, and any territory or possession
of the United States) on leave of absence] each officer or em-
ployee of the Agency who was a resident of the United States
(as described above) at time of employment, upon completion
of two years' continuous service abroad, or as soon as possible
thereafter."
(4) Paragraph (3) (B) of section 4 of such Act (63 Stat. 210;
72 Stat. 337; 50 U.S.C. 403e(a) (3) (B)) is amended to read as follows:
"(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 Director may prescribe; and the time of
such work or duty shall not be counted as leave."
(5) Paragraph (3) (C) of section 4 of such Act (63 Stat. 210;
72 Stat. 337; 50 U.S.C. 403e(a) (3) (C)) is amended to read as follows:
"(C) Where an officer or employee on leave returns to the
United States (as described in paragraph (3) (A) of this sec-
tion), leave of absence granted shall be exclusive of the time
actually and necessarily occupied in going to and from the United
States (as so described) and such time as may be necessarily
occupied in awaiting transportation."
(6) The Act entitled "An Act to provide living quarters, including
heat, fuel, and light, for civilian officers and employees of the Govern-
ment stationed in foreign countries", approved June 26, 1930 (46 Stat.
818; Public Law 445, Seventy-first Congress; 5 U.S.C. 118a), is
amended-
(A) by striking out "and, where such quarters are not avail-
able, may be granted an allowance for living quarters, including
heat, fuel, and light, notwithstanding the provisions of section
1765 of the Revised Statutes (U.S.C., title 5, sec. 70)"; and
(B) by striking out that part of the first proviso of such Act
of June 26, 1930, which reads "or allowances in lieu thereof".
(7) Section 901 of the Foreign Service Act of 1946, as amended (22
60 Stat. 1025.TT.S.C. 1131), is amended to read as follows:
"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
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grant to any officer or employee of the Service who is a citizen of the
United States allowances in order to provide for the proper repre-
sentation of the United States by officers or employees of the Service." 74 STAT. 801.
PART C-MISCELLANEOUS PROVISIONS 74 STAT. 802.
SEC. 521. Whenever reference is made in any other law or in any
regulation to any provision of law which is repealed, modified,
amended, or superseded by reason of section 511 of this Act, such
reference, unless inconsistent with this Act, shall be held and con-
sidered to refer to this Act or the appropriate provision of, or amend-
ment made by, this Act.
SEC. 522. Notwithstanding any provision of this Act and until such
time as regulations are issued under this Act, employees shall continue
to be paid allowances and differentials in accordance with rules and
regulations issued pursuant to the laws in effect immediately prior to
the enactment of this Act and such rules and regulations may be
amended or revoked in accordance with the provisions of such laws.
SEC. 523. (a) Section 912 of the Internal Revenue Code of 1954 26 USC 912.
(relating to exemption for certain allowances) is amended to read
as follows:
"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 following),
"(B) section 4 of the Central Intelligence Agency Act of
1949, as amended (50 U.S.C., sec. 403e),
"(C) title II of the Overseas Differentials and Allow-
ances Act, or
"(D) subsection (e) or (f) of the first section of the
Administrative Expenses Act of 1946, as amended, or sec-
tion 22 of such Act.
"(2) COST-OF-LIVING ALLOWANCES.-In the case of civilian offi-
cers or employees of the Government of the United States sta-
tioned outside the continental United States (other than Alaska),
amounts (other than amounts received under title II of the Over-
seas Differentials and Allowances Act) received as cost-of-living
allowances in accordance with regulations approved by the Presi-
dent."
(b) Paragraphs (1) and (2) of section 912 of the Internal Revenue
Code of 1954, as amended by subsection (a) of this section, shall apply
only with respect to amounts received on or after the date of the en-
actment of this Act in taxable years ending on or after such date.
Approved September 6, 1960.
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