LETTER TO THE HONORABLE ROWLAND R. HUGHES, FROM THE SCOPE

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP59-00224A000200080001-5
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 68
• Document Creation Date: December 12, 2016
• Document Release Date: July 15, 2002
• Sequence Number: 1
• Publication Date: November 18, 1954
• Content Type: LETTER

Approved For Release 2002/07/23 : CIA-RDP59-00224A000200080001-5
hovembel, 18, 1954
Dear 141:.-. Fughost
AZ you e.:7E, aAnre, I apoointsky.l. 8 Pali*
C%Arri t study Ills administration of
the Fore:!.gn rce akid tcLdvise me on a vogrem far-
tenth?4 to the efficia;Lcir of oporatione of the
DGpartct f L,"1 71(':. Or tin. Foreign C,ervice, In
?..St4 of It-)54., Co17,mitto autrilitted itL4 report, the
co-,rner4to, v.,:te I prop ,!.:148.1 to lutegrat to
the cxt-.7.11-1, ealverf4s th*: Depart-
Sarvi.0 offio-et, the Fore gn -$0179rice
;-121d the Foreign Service heseve and
StL c rE into as!rAr vice oS s sign-
ct et hco roa1 at the ef the
aLiei t iOn the Committee made o G :V0r3
inte--,OW.t pro?-in t cf1e.,ve-
J,:ess of o)vez-Ln%11 ageert end :.adminit-.ratin-. Most
of te::.eccwilengt?ttf,.:)as by' the Com'ettee cen be
ca'oried out under eldeting lawl some require new
legieletionn...rinf ameindments to the Foreign
Service ,kct of 5.946, as ii
In secordawA vitt' established procedures there is
7
trtlie1 heref.-Ui zo,-.)tc-e of; (1) A draft of a pro--
h5?11 that 1.nicrporatC1 t'773; legisl:Ationt most
-(ihr-gc:ntly nowiti fa: the imi,-.:,71.em.-:.:,ntiation or the program;
a219.,,e1::1. tie to ao..hive dt,rab1e elangos (Tab Ah
(2) An explanation of cL or its pk'ovLio Fab B);
and (3) Proposed. tr:kr.smitt,e.1 letters to the President
of the Sento end Vie arriAcl:er of the House of
RepresontativetDb?,
The scope
The Honorable
Rowland R. Hughes,
tirector, Bureau of the Budget?
Approved For Release 2002/07/23 : CIA-RDP59-00224A000200080001-5
Approved For Release 2002/07/23 : CIA-RDP59-00224A000200080001-5
- 2 -
The scope of the proposed bill is limited to those
items considered to be of major importance to the early
achievement of the integration program9 and several
items which our experience has indicated -equire amend-
ment in order to facilitate nd to im:Irove the adminis-
tration of the Foreign Service. The Lill does not
include certain amendments that are dt ils.- 519 bet not
urgently needed.
It should be noted that the propoad llztioa
does not provide for upward adTustment in the salaries
of Foreign Service personnel; hewevee, th Department
believes that any pay inert:sacs wEich may bc granted
for Federal employees generally should Etl fply to
personnel of the Servide. This can te aclished
either by making an appropriate revielon of the FJ-)reAgh
Service Act of 19469 as propesed for emeeeeeet, or be
extending the provisions of more goner el le&elelatiee to
cover the personnel of ths Foreign Servie 7,
The proposed legislatioi was devr.lrip:31
saltation with representatives of theof
Agriculture, Commerce and La'.Cors the Cent 'A, tiui
gence Agency,. the Foreign Operations 1.(lial.,:?Z..r...4-,-,s?at;GK,
the United States Informtion Agency, an,3 Ct
of the President's adviser ha Fsreonnz.I
The per annum cost of itapierrantir,; ty"
I 'pi' the proposed ):dll is estinated to kil:out ,7.V12.00C.i
fiscal year 1955, pnd $1,285.0)00 in fiscal 1956
and succeeding yearsc. A. bre'A.-down C'eAt,
items is enclosed (Tab D).
1,n evince
Approved For Release 2002/07/23 : CIA-RDP59-00224A000200080001-5
Awl\
Approved For Release 2002/07/23 : CIA-RDP59-00224A000200080001-5
- 3 -
In accordance with established procedure, the
Department would like to know whether there is any
objection to submitting these proppeals to the Congress
under the conditions outlined above. In this connection
individual member? of the Foreign Affare Comittee ef
the House of Representatives and of the Fereien Rela,
time Committee of the Senate have expreeeed considere
able interest in the early submiosion of tha legislation
needed to improve the personnel managoecet cf ttio Depart-
ment of State and of the Foeaign ,Serelec., Ceneeeuently,
it is the Department's hope that the propeeee, legislation
can be transmitted to the Congrese at %he eeeliest
possible date.
Sincerely yours,
John Fostee Teel3es
Enclosures (in quadruplicate);
1. Proposed letter to ths
President of the Seeete,
2. Proposed letter to the
Speaker of tile }loose or
Representativee.
3. Proposed bill.
4. Explanation of proposed OM.
5. Estimate of coat
Approved For Release 2002/07/23 : CIA-RDP59-00224A000200080001-5
AO?
Approve For Release 2002/07/23 : CIA-RDP59-00224A000200080001-5
A BILL
To amend the Foreign Service Act of 1946, as amended, and for other purposes.
Be it enacted the Senate and House of Representatives of the United States
of America in Congress assembled, That (a) section 413(a) of the Foreign Service
Act of 1946, as amended, is amended to read as follows:
"SEC. 413. A person appointed as a Foreign Service officer shall receive
basic salary at one of the rates of the class to which he is appointed which the
Secretary shall, taking into consideration his age, qualifications, and experience,
determine to be appropriate for him to receive."
(b) Section 413(b) of such Act is hereby repealed.
SEC. 2. Section 443 of ouch Act is amended to read as follows:
"SEC. 443. The President may, under such regulations as he mAY prescribe,
establish rates of salary differential, not exceeding 25 per centum of basic
salary, for Foreign Service officers, Reserve officers, and Staff officers and
employees assigned to posts involving extraordinarily difficult living conditions,
excessive physical hardship, or notably unhealthful conditions. The Secretary
shall prepare and maintain a list of such posts."
SEC. 3. The first sentence of section 517 of such Act is amended to read as
follows:
"SEC. 517. A person who has not served in class 6 shall not be eligible for
appointment as a Foreign Service officer of classes 1 to 5, inclusive, unless he
has passed such examinations as the Board of Examiners for the Foreign Service may
prescribe to determine his fitness and aptitude for the work of the Service; de?
monstrated his loyalty to the Government of the United States and his attachment to
the principles of the Constitution; and rendered at least four years of actual
service prior to appointment in a position of responsibility in the service of a
Approved For Release 2002/07/23 : CIA-RDP59-00224A000200080001-5
Government
irro'
Approved Rare Release 2002/07/23 : CIA-RDP59-00224M00200080001-5
- 2 -
Government agency, or agencies, except that, if he has reached the age of thirty,-
one years, the requirement as to service may be reduced to three years."
SEC. 4. Section 522 of such Act is amended
(1) By striking out in paragraphs (1)
it appears therein and inserting the word "five"
in the following particulars:
and (2) the word "four" wherever
in lieu thereof.
(2) By striking out in paragraph (1) the phrase "of a specialized charac-
ter; and" and inserting a semicolon after the word "qualifications" at the end
thereof.
(3) By striking out the period at the end of paragraph (2) and inser-
ting "; and" after the word "concerned".
(4) By inserting after paragraph (2) thereof the following new paragraph
"(3) extend the period of service of a Reserve officer as provided in
(1) and (2) of this section for a period not to exceed two additional years."
SEC. 5. (a) Section 571(a) of such Act is amended to read as follows:
"SEC. 571. (a) Any officer or employee of the Service may, in the discretion
of the Secretary, be assigned or detailed for duty in any Government agency, such
an assignment or combination of assignments to be for a period of not more than
four years, except that the Secretary may extend this four-year period."
(b) Section 571 is further amended by adding at the end thereof a new sub-
section (e) which shall read as follows:
"(6) The salary of an officer or employee assigned pursuant to the terms of
this section shall be paid from appropriations made
salaries of officers and employees of the Service.
reimbursed, however, when the Secretary enters into
heads of Government agencies for all or any Dart of
available for
the payment of
Such appropriations may be
reimbursement agreements with
the salaries of officers
or
employees as:igned to such agencies and payment is received pursuant thereto, or
when an o f f 3.A PPrfeYelgrkArogkekae ?qP 2417/ind TVs! ficg:g 410 Wqmo ,5
n zne salary of
which
Approved For IlIblease 2002/07/23 : CIA-RDP59-00224A000200080001-5
? 3 ?
which is payable from other funds available to the Department."
SEC. 6. Sections 633 and 634 of such Act, and the headings thereto under
'Part D", are hereby repealed and the following headings and sections are hereby
enacted in lieu thereof:
SECTION-OUT
"SEC. 633. (a) The Secretary shall prescribe regulations concerning--
"(1) the maximum period during which any Foreign Service officer below
the class of career minister shall be permitted to remain in class without
promotion; and
"(2) the standard of performance Which any such officer must maintain to
remain in the Service.
n(b) Any Foreign Service officer below the claes of career minister who does
not receive a promotion to a higher class within the IDecified period or who fails
to meet the standard of performance required of officers of his clav; shall be
retired from the Service and receive benefits in accordance with the provisions of
section 634.
"SELECTION?OUT DP:REFITS
"SEC. 634. (a) Any Foreign Service officer in classes 1, 2, or 3 who is re?
tired from the Service in accordance with the provisions of section 633 shall
receive retirement benefits in accordance with the provisions of section 821,
u(b) Any Foreign Service officer in clasces 4 or 5 who is retired from the
Service in accordance with the provisions of section 633 shall receive--
1(1) One?twelfth of a year's salary at his then current salary rate for
each year of service and proportionately for a fraction of ,a year, but not exceeding
a total of one year's salary at his then current salary rate, payable without
interest, in three equal ity.tallments on the 1st day of January following the
officer's retirement and on the two anniversaries of this date immediately following:
and n(2)
Approved For Release 2002/07/23 : CIA-RDP59-00224A000200080001-5
Approved kar Release 2002/07/23 : CIA-RDP59-00WA900200080001-5
- 4 -
"(2) A refund of the contributions made to the Foreign Service
Reitrement and Disability Fund, with interest thereon at 4 per centum, com-
pounded annually, except that in lieu of such refund such officer may elect
to receive retirement benefits on reaching the age of sixty-two, in accordance
with the provisions of section 821. In the event that an officer who was
separated from class 4 and who has elected to receive retirement benefits
dies before reaching the ages of sixty-two, his death shall be considered a
death in service within the meaning of section 832. In the event that an
officer who was separated from class 5 and who has elected to receive retire-
ment benefits dies before reaching the age of sixty-two, the total amount of
his contributions made to the roreign Service 7)eitrement and Disability Fund,
with interest thereon at 4 per centum, compounded annually, shall be paid in
accordance with the provisions of section 841.
li(c) rotwithstanding the provisions of section 3477 of the Revised Statutes,
as amended (31 U.S.C. 203) or the provisions of any other law, a Foreign Service
officer who is retired in accordance with the provisions of section 633 shall have
the right to assign to any person or corporation the whole or any part of the
benefits receivable by him pursuant to paragraph (b)(1) of this. section. Any
such assignment shall be on a form approved by the Secretary of the Treasury and a
copy thereof shall be deposited with the Secretary of the Treasury by the officer
executing the as,lignment.fl
SEC. 7. (a) Section 853 of such act is amended by striking out the period at
the end of the first sentence thereof and adding the following clause:
11, but no such extra credit for service at such unhealthful posts shall be
credited to any participant for such service performed subsequent to the
Approved For Release 2002/07/23 : CIA-RDP59-00224A000200%ffichlerhe
Approved FM?Release 2002/07/23 : CIA-RDP59-02224A000200080001-5
- 5 -
effective date of this Act.9
(b) Section 853 is further amended by striking out the last sentence of that
section.
SEC. 8. (a) Section 901 (2) of such Act is amended by striking out the
phrase "his post of assignment!! at the end of paragraph (ii) of that section and
substituting in lieu thereof the phrase "any post of aslignment abroad or at a
post of as ignment in the continental United tates between as,Agnments to foreign
poste.
(b) Section 901 (2) is further amended by adding at the end thereof a new
paragraph (iv) which shall read an follows:
u(iv) that an allowance is neceary to asist an officer or employee
stationed abroad to defray the expenses of educating his children.?
SEC. 9. Section 943 of such Act is amended by adding the phrase 0rand
their dependents!! after the words ?United States!' and before the comma, and again
at the end of the section immediately before the period.
SEC. 10. Yotwithstanding the provisions of this Act, existing rules, regu-
lations 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.
Approved For Release 2002/07/23 : CIA-RDP59-00224A000200080001-5
Approv
Approve
alniateigrggr-2002/011MtVPROPWIWAMT062000WASNI5
(SENDER WILL CIRCLE CLASSIFICATION TOP AND BOTTOM)
CENTRAL INTELLIGENCE AGENCY
OFFICIAL ROUTING SLIP
TO
INITIALS
DATE
1
Legislative Counsel
2
303 South Bldg.
3
4
5
FROM
LkITLLS
LRJJ04.1.A
DATE
1
ExO/P
2
3
SIGNATURE
RETURN
DISPATCH
FILE
would
I I APPROVAL F---1 INFORMATION [ I
1 I ACTION I I DIRECT REPLY I I
I I COMMENT I I PREPARATION OF REPLY I I
1 I CONCURRENCE 1-------7 RECOMMENDATION I I
Remarks:
Material on proposed amendments to the Foreign
Service Act attached per your request. We
appreciate return of this material to the Office
of Personnel for retention when you have completed
action.
d For Release 2002/07/23,.. CIA-RDP59-00224A00Q2(0038.001-5
SECRET CONFIDENTIAL RESTRICTED uisiuLAsnilED
FORM NO. Q(1_4
SEP1947
16-88548-1 U. S. GOVERNMENT PRINTING OFFICE
NOTICE OF PENDING LEGISLATION
? -?- opr, Awl
LEGISLATIVE BILL NO.
H. R. 4941
SECTION I
TO :
GENERAL
FROM: LEGISLATIVE COUNSEL --
OFF ICE Of- GENERAL COUNSEL
THE ATTACHED BILL. WHICH HAS BEEN INTRODUCED INTO CONGRESS. IS:
SENT TO YOU FOR INFORMATION ONLY.
A BILL ON WHICH FAVORABLE CONGRESSIONAL ACTION
Is r---1 IS NOT PREDICTED.
SENT FOR YOUR COMMENT AS TO WHETHER IT IS OF INTEREST TO CIA ACTIVITIES. AND WHETHER
FURTHER ACTION BY THIS OFFICE IS NECESSARY OR DESIRED.
[I
THAT IT IS REQUESTED AT COMMENTS CONCERNING TWIS LEGISLATION BE FORWARDED, THROUGH
APPROPRIATE CHANNELS, TO THIS OFFICE, BY .
SECTION II COMMENTS (From Original Addressee)
TO : LEGISLATIVE COUNSEL FROM:
OFFICE OF GENERAL COUNSEL
ILLEGIB
STATINTL
STATI NTL
STATIN
15 March 1955 84/1
Mr. Richards of South Carolina
A bill to amend the Foreign Service Act of 1946, as amended, and for other
purposes.
Distribution:
MM.
/e-ekttfzey
i9.1- 1?-2
crA,
C 9 )4/4?. /eviS
/32e--70,c >413
STATI TL
DATE OF COMMENTS SIGNATURE AND TITLE
Approved For Release 2002/07/23pg
FORM NO - REPLACES FORM 23-s
- - gab
FEB !IS WHICH MAY BE USED.
Aefiee /euot-
S.V
A-RDP59-00
24AaQpTL
)1(-447 r"".."
(38)
Approved For Release 2002/07/23 : CIA-RDP59-00224A000200080001-5
84TH CONGRESS t HOUSE OF REPRESENTATIVES
, 1st Session
REPORT
No. 229
FOREIGN SERVICE ACT AMENDMENTS OF 1955
MARCH 18, 1955.?Committed to the Committee oEthe Whole House on the State
of the Union and ordered to he printed
Mr. RICHARDS, from the Committee on Foreign Affairs, submitted
the following
REPORT
[To accompany H. H. 4941]
The Committee on Foreign Affairs, to whom was referred the bill
(H. R. 4941) to amend the Foreign ServiceAct of 1946, as amended,
and for other purposes, having considered the same, report favorably
and unanimously thereon without amendment and recommend that
the bill do pass.
INTRODUCTION
This bill is the first major overhaul of tile Foreign Service Adt of
1946. It reflects the principles embodied in that act, namely, a profes-
sional service, disciplined and mobile, serving without political
influence, and adequately compensated.
The purposes of the bill are twofold: (1) to enable the Department
of State to continue the integration of its personnel into the Foreign
Service Officer Corps; and (2) to improve conditions of employment
(but not to increase salaries) of Foreign Service personnel so that
qualified individuals will make it a career.
There is nothing in this bill that creates any new jobs or adds anyone
to the Federal payroll. It authorizes the expansion of the Foreign
Service?but only .by transferring individuals already employed by
the Department of State into the Foreign :Service. Every position
held by Department of State personnel who transfer into the Foreign
Service is converted into a position that can be manned by individuals
who must serve at home and abroad. This .bill does not create more
jobs in foreign countries nor will it increase American personnel
abroad. It simply makes available a larger pool of qualified personnel
for assignment abroad on a rotation basis.
At the end of World War II the Foreign. Service lacked sufficient
personnel to meet the Government's new and enlarged responsibilities
in the international field. The inability to recruit new talent during
1
55000
Approved For Release 2002/07/23 : CIA-RDP59-00224A000200080001-5
Approved For Release 2002/07/23 : CIA-RDP59-00224A000200080001-5
2 FOREIGN SERVICE ACT AMENDMENTS OF 1955
the war together with the attrition in the upper Foreign Service
classes had reduced the number of officers from 826 in 1940 to 820 in
1946. In that year Congress devoted its efforts to improve the
Foreign Service. The patchwork of laws upon Which it was based
were carefully exa,:mitied, their meritorious features W ere retained, and
new provisions were added. The result was the Foreign Service Act
of 1946.
The act provided i'or the following categories of Foreign Service
personnel:
(a) Chiefs of mission. ?Appointed by the President by and with the
advice and consent of the Senate. There are four classes of chiefs of
mission.
(b) Foreign Serrice o c .--Appointed by the President by and
with the advice and consent of the Senate. There at e seven elasses of
Foreign Service officers, including the class of career minister.
(c) .Forrign Serrice Reserre officers.----Appointed by the Secretary for
a temporary period not to exceed 4 years. There are six classes of
Reserve officers. The term "Reserve" bears no relation to the mili-
tary use of the word. A Foreign Service Reserve officer may more
properly be described as a temporary officer. Upon completion of his
assignment, the Department of State, unlike the armed services, can-
not require him to serve again.
(d) Foreign Sooice Staff officers and employees.-- Appointed by the
Secretary for work of a technical, administrative, clerical, or custodial
nature. There are 22 classes of Staff personnel.
(e) Alien clerks and employees.?Appointed locally in the field by
the principal officer at each post.
Among the principal provisions of the 1946 act were those covering
entrance into the Service. Emphasis was placed upon the career
concept toward which the Service bad been moving for more than a
quarter of a century. For the long haul the strength of the Service
could only come from the young men and women who entered at the
bottom and progressed through the ranks.
The immediate problems facing the Government, however, required
additional personnel at the intermediate and upper levels. To meet
this situation, the act authorized appointment in other than the lowest
class of qualified individuals from the Department of State or the
Foreign Service Staff or Reserve. This is referred to as lateral entry.
Those entering laterally could be paid only the lowest salary of the
class to which they were appointed. In many cases that meant a
loss of salary for the individual transferring into the Foreign Service.
Neither method of entry produced the numbers needed for the
Service. From 1946 to March 1954, only 51 entered laterally. The
'record for entrance at the bottom was considerably better, but was
offset by heavy retirements and resignations. The peak strength of
1,427 officers was reached in January 1953. By March 1954 the
number had dropped to 1,297.
It was this personnel situation that led the Secretary of State to
appoint a Public Committee on Personnel--the Wriston Committee_
Earlier studies on State Department personnel and organization had
been made by the Hoover Commission in 1949, the Secretary of State's
Advisory Committee on Personnel in 1950, and the Brookings Institu-
tion in 1951. On one point all of these studies, including that of the
Approved For Release 2002/07/23 : CIA-RDP59-00224A000200080001-5
Approved ForAlilme *Rog; ca-grA9fRox24Aggo2000snoi-5
Wriston?Committee, were in substantial agreement; namely, that the
Department's personnel under civil service engaged in substantive
work should be brought into the Foreign Service. a transmitting the
recommendations in this bill to the Speaker, the Secretary of State
noted that the Hoover Commission and the Wriston Committee
recommen ded ? ?
that certain officer personnel in the departmentallervice and in the various cate-
gories of the Foreign Service be merged into a single service, the Foreign Service
Officer Corps, obligated to serve at home and overseas. Beth the [Hoover] Com-
mission and the [Wriston] Committee recommended that the personnel in the
combined service he administered under a personnel system outside of the civil
service system. They further recommended that ithis system should be based on
the career principle, but should also remain sufficiently flexible to meet the
changing needs of the Government for the condunt of foreign affairs.
To put the issue another way, the continuation of two personnel sys-
tems, one serving at home and one abroad, denied the Secretary of
State the maximum use of the talents of his own Department.
The Wriston Committee referred to the development of a single
enlarged Foreign Service as "integration!' It estimated that 1,300
positions in the Department and 1,300 in the Staff and Reserve were
"dual service" positions that should be brought under the Foreign
Service. Thus, with the 1,300 Foreign Service Officers the Foreign
Service strength would be increased to 3,900. Individuals holding
such positions would be brought into the Foreign Service through
lateral entry, after passing such tests as may be prescribed. As the
Committee noted:
The presumption should be that a departmental officer with an acceptable record
is eligible for the Foreign Service. The burden of proof should be laid upon ex-
clusion rather than upon inclusion.
The accelerated lateral entry recommended by the Wriston Com-
mittee was endorsed by the Department ,of State. It could not be
achieved if a lateral entrant could be paid only the minimum rate of
salary for his class, as required by the Foreign Service Act of 1946.
Some individuals who had several in-grade increments under civil
service would have to take a salary reduction that might amount to,
$1,600. Public Law 759 of the 83d Congress dealt with this problem.
It authorized the appointment by March M, 1955, of a maximum of
500 Foreign Service officers in classes 1 through 5 at other than the
minimum rate for the class. Under the authority of the 1946 act
additional officers could be appointed in those classes at the minimum
rate. Nor was any limit imposed on the appointment of class 6
officers.
Before considering any extension of the integration program, the
committee inquired into the progress that had already been made.
Specifically, it was interested in the background of the individuals who
have been processed for integration in order to assure that there was
no lowering of standards. The Department furnished such informa-
tion on 414 Department, Reserve, and Staff officers who have been
certified by the board of examiners for appointment as Foreign Service
officers since September 1, 1954. An analysis of the background of
the 414 reveals the following:
1. Fifty-five percent came from the Department; 45 precept entered
from the Reserve or Staff Corps.
Approved For Release 2002/07/23 : CIA-RDP59-00224A000200080001-5
Appfoved ForFWem: es?OROT/AR, :21AltilarFAtORMA0500200080001-5
2. Eighty-five perceitt entered classes 3, 4, or 5, the intermediate
classes of the Foreign Service, while 10 percent entered classes 1 or 2,
the highest classes, aail 5 percent were appointed to class 6 at the
bottom. Of those who entered classes I to 5, 79 percent were at an
in-step salary level and 21 percent at the minimum salary for the class.
3. Eighty-five percent are men; 15 percent are women.
4. By age, 64 percent were under 40 years, 33 percent were from 40
to 50 years. Only 3 percent were over 50 years.
5. Their previous Government service, including military service,
averaged almost 14 years with 77 percent having more than 10 years.
6. Their Government positions immediately prior to processing for
appointment into the Foreign Service Were of particular interest to the
committee. Ten percent were in consular work, 15 percent in eco-
nomic work, 30 percent had been engaged in foreign political reporting
and analysis, 37 percent were in administrative work, and 8 percent
came from specialized functional activities of the Department.
7. On the basis of state of origin the group represented an almost
complete coverage of the United States. Only 4 States supplied no
candidates. By regions the. Northeastern and Middle Atlantic States
accounted for one-third ; the Southern States and the North Central
States, 25 percent each; the Western States, 10 percent. The balance
were born outside the continental United States.
No applicant was considered by the board of examiners until secur-
ity clearance had been granted under the provisions of Executive
Order 10450. The board went a step beyond that. Some individuals
Ii ave been denied appointntents because their :files disc lose A I evidence
of unsuitability for the Foreign Service. Each officer must be eon-
firmed by the Senate before appointment as a Foreign Service officer,
According to the Department's testimony, the Senate had con-
firmed 240 officers by early March and the paperwork had been com-
pleted on several hundred others. The :Deputy Under Secretary for
Administration of the Department of State, -the llonorable Loy
llenderson, testified that the Department now has in process
sufficient,transfer actions to exhaust the 500 quota authorized by :Public Law 759.
Early approval if the request ,ed extension of this authority, therefore, is necessary
if we are to avoid having the program grind to a sudden halt. I believe it would
be extremely detrimental to the efficient administration of the Department as
well as to the morale of our personnel if we had to interrupt the program in
a idpassage.
The committee recognizes the force of this argument. If the
:Department is to got its house in order, completion of the integration
program is necessary. Among other provisions, this bill continues
the principle embodied in Public Law 759 by authorizing appoint-
ments in classes 1 t hrough 5 at any one of the salary rates for that
class. Unlike that law, it limits the number of lateral entrants,
including those coming in at the minimum salary of the class, to
1,250 until such time as Congress may otherwise determine.
It does not alter any of the provisions covering entrance at the
bottom. Neither did Public Law 759. The committee is desirous
that every effort be made to build the Service from below. Only in
that way can the Service offer the attraction of a career.
Approved For Release 2002/07/23 : CIA-RDP59-00224A000200080001-5
Approved For Release 2g312411712L :1, it-1111?)FL5E91\1742(2F4P91:5)(5:12000800 g1 -5
It is not sufficient that competent and devoted people enter the
Foreign Service. They must be retainad ii the Service. As Mr.
Henderson remarked in his statement before the committee:
If it [the Foreign Servicel is soccesSfu]ly to compete with private enterprise or
with other governmental agencies for the highest tyvis of American youth it must
be in a position to assure those who enter it unparalleled opportunities for public
service. A career in the Foreign Service by i very character entails certain
sacrifices. There is no place in it for those who are looking for a soft life. Much
can be done, nevertheless, to alleviate the hardships inherent in it.
The other provisions in this bill are designed to strengthen the
administration of the Foreign Service and to make it a career in which,
to paraphrase Mr. Henderson's expression, the satisfaction of public
service is not dimmed by undue personal financial worries.
Briefly, the other sections of this bill have the following purposes:
1. To make Foreign Service officers and Reserve officers eligible to
receive hardship post differentials which are now paid to Staff officers
and employees and civilian personnel of other Government agencies
who are stationed abroad. Foreign Service officers, who now receive
time-and-a-half retirement credit for service at hardship posts, may
choose either the credit or the differential.
2. To permit the Secretary of State to extend the 4-year limit on
the assignment of Foreign Service personnel to duty in the United
States to an additional 4 years.
3. To establish a home service transfer aIlowance for Foreign Service
personnel assigned to duty in the United States between tours of
foreign duty.
- 4. To extend the selection-out system to Foreign Service officers of
class 1.
5. To permit up to 40 persons with prior Government service and
who are professionally qualified to enter laterally as Foreign Service
officers.
6. To defray part of the expenses of educating children of American
parents stationed abroad in the Foreign Service.
7. To increase the maximum duration of Foreign Service Reserve
appointments to 5 years.
8. To permit the Secretary of State to it6gotiate- reimbursements for
Foreign Service personnel detailed to other Government agencies.
9. To limit the amount of retirement benefits paid Foreign Service
officers in classes 4 and 5 who are selected out of the Service.
10. To provide medical examinations, inoculations, and vaccina-
tions to the dependants of Foreign Service officers.
11. To give credit toward retirement without charge for military
service rendered prior to appointment as a Foreign Service officer.
The items in this bill carry forward the implementation of the
Wriston Committee recommendations. Many of these recommenda-
tions require no additional legislative authbrization, such as improved
training, class 6 recruitment, personnel planning, and travel costs for
the rotation of personnel. This bill does. not deal with those items.
This bill includes several additional recommendations made by the
Wriston Committee that require authorization before the Depart-
ment can ask for appropriations. Other recommendations requiring
legislative authorization will be submitted by the Department at a
future date.
Approved For Release 2002/07/23 : CIA-RDP59-00224A000200080001-5
ArTroved For Release 2002/07/23: CIA-RDP59-00224A000200080001-5
FOREIGN SERVICE ACT AM ENDMENTS OF 1055
The Department submitted these cost estimates of the amendmeiltS
in this bill to the Foreign Service Act.
1. Sec. 413. Lateral appointments of Foreign Service OlLeerS above the leininnifil
rate of the class to which appointed
Comment.?The Fore,gii Service Act of 1946, which provided that appoint-
ments to classes 1 to 5 lee ma, hi at the minimum selary rate of the class, was
amended by Public Law 75a, 83d Cong., to permit the appointment of 500
officers at rates above the minimum up to Mar. 31, 1953. The estimated coil
of the proposed amend pent will be 55,000 for the iiiriod Apr, 1, 1955, to July
1, 1955, and $75,000 for iscal Year 1056.
2. Sec. 443. Payment of salary differentials to Foreign Service officers and Foreign
Service Reserve officers
Comment.?The esti- stint cost of this amendment is based On a count of
Foreign Service officers and I 'serve Corps offieers at differential posts multi-
plied by the percent di iierent il reeeived by each; p:imely 286 Foreign Serv lee
officers and 31 Reserve officers. For fiscal 1955, the ammal cost is reduced by
75 percent.
3 Sec. 901 (2) (ii). Home serf 1Ce triinsfer allowance
Cominenf.----Assumed average cost is based on an analysis of average size of
each Foreign Service faintly, costs of hotel room accommodations in Wash)
ton as determined by 11dreau of Labor Statistics, the 11V erne int ra- and tide,
zone transfer allowanee and the assumption that 100 assignments to the
United States will be made during the balance of fl-cal 1953 and 400 each year
thereafter.
4. Sees. 901 (2) (iv) and 911 (it . Educational allowances
Comment.?The estiolate 0ir fiscal 1955 is related to children of Foreign
Service personnel atteriding college in the United States and is designed to
cover the travel expense of at ioroximately 33 trips to and from the field at an
average cost of $1,476 per trip. For fiscal 1956, the estimate covers (I) an
allowance of $340 each or 1,613 children in elementary. and secondary grades
residing abroad, (2) travel few 25 percent of the sam Children to nearest salt.-
factory school in the country of residence at $100 iiach, (3) travel for 92 chil-
dren In secondary grades Irmo abroad to the Uniti:d States and return at itri
average cost of $1,476 each. prorated over a 3-year eiriod, and (I) travel or 11
children attending colleg'e icr the United States to post of parents' assignmeid
and return at an average cosaiif $1,476 each, prorated over a 4-year period.
5. Sec. 943. Medical examinations of dependents of Foreign Service personnel sta-
tioned abroad_
Comment.?The estimate is based on the assumption that average cost of
each examination will be $7, and that 1,000 such exiuninations would be Imam
during the balance of Ii cal 1955, that 4,000 such examinations would be made
annually thereafter.
SUMMARY
Estimated cost
1.955 1956
$5,000
$75, 000
120, 000 '180,000
50, 000 200, 000
50, 000
7,000
442, 000
f8, COO
1955
1956
Sec. 413
55, 000
$75, 000
Sec. 443
20, 000
480, 000
See. 901 (2) (ii)
50, 000
290, 000
..zees. 905 (2) (iv) rind 911 (9)
50,000
402,1)00
Sec. 943
7, KO
28, 000
Total
232,000
1,225, 000
The more favorable retirement benefits that would be available to
an expanded Foreign Service Officer Corps are not reflected in this
cost analysis. These benefits, estimated ultimately to cost $1,550,000
annually, will not require an immediate outlay of funds since lateral
entrants must serve at least 5 years before retiring. Last year the
committee was concerned that individuals would enter laterally in
order to enjoy the benefits of the Foreign Service retirement system.
The Secretary of State gave assurances to the Honorable John M.
Vorys that?
the Department will not permit persons to enter the Foreign Service Officer Corps
unless they are young enough to assure that they will spend at least 5 years over-
seas before retirement_
Approved For Release 2002/07/23: CIA-RDP59-00224A000200080001-5
Approved ForpRigeoisesalawig7w :g,,i4431;lugs? moopo2000s opo -5
Fr This bill does not solve all the problems of the Foreign Service.
But it should do much to alleviate some of its difficulties. Since
1946 the Foreign Service has had a succession of 10 administrators,
some of them unfamiliar with its problems. The committee believes
that the Service is entering a new era. The recent appointment of
Mr. Henderson as Deputy Under Secretary,for Administration should
provide the steady hand it needs in this period of transition. He
brings to his present position the experience of more than 30 years as
a Foreign Service officer. With the knowledge derived from his own
background, the committee is confident that he will administer wisely
and effectively the provisions contained in the Foreign Service Act.
It is equally confident that his preoccupation with the problems arising
frpm integration will in no way diminish his zeal to strengthen the
lower echelons of the Service so that it rna,y- be a truly "professional
service" offering "advancement by merit to positions of command."
SECTION 2. APPOINTMENTS AT SALARY STEPS ABOVE MINIMUM
This section amends the Foreign Service Act of 1946 to permit the
appointment of Foreign Service officers to classes FSO-1 to FSO-5
at salary steps above the minimum for -each class. The Foreign
Service Act of 1946 required that appointments to classes 1 through 5
had to be made at the minimum rate of the class.
There are more civil service and Foreign "Service Staff salary grades
encompassing the same range of salaries than are included in FSO
classes 1 to 5. This, plus the fact that employees receive periodic
salary increases in grade for satisfactory service, means that most per-
sons entering laterally have to enter at a salary which is either higher
than that which they are earning or one which is lower. Faced with
a prospect of a cut of as much as $1,600 a year, officers frequently
have refused appointment as a Foreign Service officer or else sought
appointment to a higher class for which they are not eligible on the
basis of age, experience, and other qualifications. In general there
is a tendency for candidates applying for lateral entry to apply for
classes higher than those which are appropriate for their age, qualifi-
cations, and experience in order to avoid a possible reduction in salary.
This factor is said to be one of the basic caws for the failure of earlier
integration efforts. The language of this section makes it possible,
when desirable, to appoint an employee to the Foreign Service Officer
Corps at the same or nearly the same salary he is receiving in other
Government service.
SECTION 3. HARDSHIP POSTS
Under section 443 of the present Foreign Service law, payment of
salary differentials for service at "hardship posts" is specifically
limited to Foreign Service Staff officers and employees. These
differentials range from 10 to 25 percent of basic compensation. The
Department of State has informed the committee that at present
these differentials are applicable to about 30 pereeTit of the posts in
the Foreign Service. It is the responsibility of the Secretary of State
to prepare and maintain a list of such posts, In designating hardship
posts, such factors as excessive physical hardship, unhealthful condi-
tions, lack of recreational facilities, climate, and the like are considered.
Foreign Service officers and Reserve officers are excluded by present
Approved For Release 2002/07/23 : CIA-RDP59-00224A000200080001-5
Approved For Release 2002/07/23 : CIA-RDP59-00224A000200080001-5
8 FORF1( NT SERVICE ACT A VIENDMENTS OF 1055
law from. this additional compensation when assigned to such hard-
ship posts. All other overseas agencies, such as Agriculture, Labor,
Treasury, Defense, etc., pay their American civilian employees extra
compensation whenever these employees are assigned to hardship
posts in foreign con' tries. Thus, Foreign Service officers and Foreign
Service Reserve officers (except Reserve officers of ilw 'Foreign
Operations Administration) are now the only groups of American
civilian employees of' the United States Government stationed in
foreign countries who are not eligible to riceive salary differ(mtial
payments for service at hardship posts.
The rationale for the exclusion of Foreign Service officers from the
benefits of section ,143 when it was incorporated in the Foreign Service
Act of 1946 was that they were to receive instead a ugment.7ed credit
toward retirement, years for each year of such service) for service
at unhealthful posts which were essentially the same as those listed
in the "hardship" category.
Mr. Henderson, in his testimony before the committee, pointed out
that many of the youngi'r officers, particularly those with families,
preferred to have available to them a salary differential for service
at hardship posts rather than extra credit toward retirement, for such
service. At the same time it is recognized that older officers may
well prefer the extra retirement credit for service at unhealthful posts
rather than accept a salary differential for such service. To take
care of this personal preference there is included in this bill a provision
which, in effect, gives the officer his choice. This is discussed under
section 9 of this bill.
SECTION 4. LAT ORAL ENTRY
The revised language of this section incorporates four basic changes.
The first clarifies the nature of the examinations that must be
passed by applicants for lateral eat Ty. l'he Foreign Serviee Act of
1946 made appointment to classes I through 5 contingent upon the
passing of "such -written, oral, physical and other exitininations as the
Board of Examiners for the Foreign Service may prescribe." It was
the committee's intention that an applicant be examined in each of
these broad categories, leaving to the Board of Examiners a determi-
nation of the content of the examination. During the hearings last
year on the amendment to the Foreign Service Act which became
Public Law 759, the committee was informed by the then Under
Secretary for Administration, the Honorable Charles E. Saltzman,
that no written examinations would be required for lateral entrants
under the integration program. In its report on the amendment the
committee removed any doubt that .any of the categories of examina-
tion could be waived. It, stated:
We wish to assure the Congress and to remind him [Mr. Saltzman] that the statu-
tory requirement for a written examination in section 517 is not repealed hy this
bill.
According to the
it was decided--
after consultation vv
written examination
program. * * * It
form of an essay in IN
to a Foreign Service
Department's Circular 126 of November 17, 1954,
Ii mem'oers of the Foreign Affairs Cthinnitl-;ee, to include
s as a part of the examination process in the integration
has been decided that the written examination will be in the
'Lich the candidate discusses the relationship of his experience
assignment.
Approved For Release 2002/07/23 : CIA-RDP59-00224A000200080001-5
Approved Forrgeteksea0g7/24:ExHisINEVg0R2W00200080901-5
The committee regards this as an inadequate substitute. Accordingly
the language of the section has been changed in two ways. The new
language states that the examination will be a "comprehensive mental"
one. It may be written, or oral, or both. The committee is not spec-
ifying the form or content of the examination. Whatever the form or
content, it must be such as to test the applicant's capacity to analyze
and synthesize ideas and statements and to determine his qualifications
to discharge the responsibilities of the class to which he is appointed.
Further, the word "may" is dropped to remove any ambiguity that
the examinations so described in this section are optional. They are
not.
The second change eliminates the requirement that the qualifying
period of service for lateral entry be performed "immediately" prior to
appointment. The committee was advised that this qualification on
prior service was unduly restrictive. Any break in service, even for
1 day, automatically eliminated an applicant from consideration and
required that he begin serving anew the qualifying period of 3 or 4
years. The Department offered several examples. A Reserve officer,
whose statutory period of assigammit expired a few days before his
nomination as a Foreign Service officer could be confirmed and
attested, forfeited his eligibility. A Staff Corps officer who contracted
an illness in line of duty had to take sick leave in excess of that with
which he was credited. This leave constituted ft technical break in
service, thus nullifying his eligibility for lateral entry.
The third change is to open eligibility for lateral entry to a limited
number of individuals who have had responsible positions in other
governmental agencies rather than restricting it, as at present, to
officers of the Department and of the Reserve and Staff Corps. The
number of such lateral entrants cannot exceed 40. The Department
on occasion needs the services of an unusually qualified individual.
Such an individual may be reluctant to accept a Reserve Corps
appointment that is sufficiently long to make uncertain his reemploy-
ment by his present employer, yet offering him no assurance of
continued employment after his tenure as a Reserve officer had expired.
This change, like the previous change, would broaden the basis for
selecting well qualified candidates.
The fourth change is designed to permit an uninterrupted continua-
tion of the integration program. Under existing law there is no limit
on the number of lateral entry appointments. As a result of the
amendment to section 413 (made by sec. 2 of this bill), permitting
lateral entry at any step within the class to which appointed, lateral
entry is encouraged. To assure that this will not lead to an excessive
number of lateral entries and to enable the Congress to have another
look at the program, lateral entries are limited to 1,250. Except for
the 40 cases explained below, all lateral entrants must have served in
a position of responsibility in the Department of State, or the Foreign
Service, or both, for 3 or 4 years, and also must have been on the
Department's payroll on March 1, 1955. The fact that on that date
they may have been detailed to duties in another Government agency
or assigned to an educational institution for advanced study does not
disqualify them. Forty other individuals who have held responsible
positions in a Government agency or agencies, including the Armed
Forces, may also enter laterally. This number is intended to include
H. Rept. 229, 84-1 2
Approved For Release 2002/07/23 : CIA-RDP59-00224A000200080001-5
Approved For Release 2002/07/23: CIA-RDP59-00224A000200080001-5
10 FOREIGN SERVICE ACT AMENDMENTS OF 1955
a small group of State Department officers eligible for lateral entry
who were transferred to other Government agencies before they could
be examined for the Foreign Service. The total of 1,250 was deter-
mined in consultation with the Department as the number who could
be processed at home and abroad between now and January 1957.
Most, if not .all, of the appointments will be filled with personnel
transferred from one Government payroll to another. The problems
attendant upon integration, arranging orderly assignments at home
and abroad, and initiatin.g the career planning program, are heavy
enough. If lateral entry were opened without restriction to individ-
uals from other Government agencies or from private employment, it
would disrupt and delay the primary job of the Department, namely,
the completion of i Es integration program.
The 1,250 lateral entrants authorized in this section are in addition
to those appointed under Public Law 759 on or before March 31, 1955.
Under the authority given in Public Law 759 and the authority given
in this amendment., the Department will be able to complete substan-
tially the current integration program. No time limit has been placed
on the appointment of the 1,250. Should the Department deem it
advisable to a,sk for an extension of lateral entry, the Congress will
again consider the matter.
SECTION 5. INCREASING THE PERIOD OF SERVICE IN THE FOREIGN
SERVICE RESERVE
This section permits a Foreign Service Reserve officer to serve a
maximum of 5 years rather than the present 4 years. The primary
reason is administrative. A 4-year period of service is awkward to
manage. Since most tours of duty are either of 2- or 3-year duration
which, in actual practice means approximately 27 and 39 months'
duration, respectively, a 4-year assignment virtually precludes granting
home leave to Reserve officers between 2 tours of foreign duty.
There has also been deleted the phrase "of a specialized character"
in subparagraph ( ) of this section. The original concept of a Foreign
Service Reserve officer, as defined in the report of the Committee
on Foreign Affairs ilecompanying H. R. 6967 (Foreign Service Act
of 1946) was that of an officer closely assimilated to a Foreign Service
officer in salary, rank, title, and status serving in a specialized position
such as that of information specialist, telecommunication expert,
aviation authority, petroleum specialist, and cultural attach?In
actual practice, the Reserve Corps has been used not only for the
appointment of specialists, but also as a vehicle for staffing rapidly ex-
panding programs. Furthermore, under the integration program rec-
ommended by the Secretary's Public Committee on Personnel [Wriston
Committee] it is planned to assign to. the Reserve Corps officers who
are not yet eligible for lateral entry under section 517, so that they may
acquire broad qualifying experience while they await their appoint-
ments as Foreign Service officers after completion of the required
period of service. Under these changed concepts of the Reserve Corps.
it seems unnecessary to restrict entry from outside the Government
service to specialists. It should be noted that this restriction does not
apply to persons already in the governmental service.
Approved For Release 2002/07/23 : CIA-RDP59-00224A000200080001-5
Approved ForA?AsTe hOgi/cppr: attimpoovioppo20008??01-5
SECTION 6. ASSIGNMENT IN THE UNITED STATES AND REIMBURSEMENT
FOR SERVICES
The new language in this section makes three basic changes in
existing law.
In accordance with the recommendations of the Wriston Committee,
the amendment to section 571 (a) permits the extension of an assign-
ment for duty in the United States beyond the present statutory limit
of 4 years to an additional period not to exceed 4 years, Or a total of
8 years. The Department advised the Committee that, on occasion,
it would be of decided advantage to the Secretary to be able to retain
certain officers who are in key positions in the Department for a period
in excess of 4 years. In granting this exception to the 4-year period
of duty in the United States the Committee expects that it Will be
used only under very unusual circumstances and not as a device to
enable individuals to .enjoy the prestige of the Foreign Service without
adequate service abroad. Since this section is amended, it is desir-
able to delete the reference to the Director, General in view of Public
Law 73, 81st Congress, which vests full administrative authority in
the Secretary.
The second change eliminates the requirement that an officer or
employee who has been assigned to duty in another Government
agency may not again be assigned to duty in a Government agency
for a period of 2 years or for a period equal to his preceding tour of
duty, whichever is less. This requirement may, in some cases, be
unduly restrictive and operate to the detriment of the Department
and the Service. In virtually all cases an -officer or employee can be
and is assigned for a normal tour (24 months or more) of duty over-
seas after an assignment to a Government agency. In rare cases,
however, this requirement can cause unnecessary difficulty. For ex-
ample, an officer who, during the latter part of his United States as-
signment is engaged in working out the details of a trade agreement
with another country and, his assignment being presumably com-
pleted, is ordered to duty overseas, cannot be recalled to duty in the
Department for a period of 2 years despite the fact that his services
as an expert are urgently needed because of reopening of negotiations,
loss of other key personnel, etc. The elimination of this provision
would also take care of cases where an officer or employee must be
returned for duty in the United States for compelling medical rea-
sons, but whose illness is not such as to preclude his employment in
the United States.
The third change adds subsection (e). The language in this subsec-
tion will permit the Secretary to negotiate arrangements with other
agencies whereby the Department can be reimbursed for all or part
of an officer's salary when he is assigned or detailed to another agency
at the request of that agency and for its benefit. Reimbursement
would not be required when such assignment is made solely for train-
ing purposes. This section also permits reimbursement of the Depart-
ment's appropriations for an officer's salary when that officer is assigned
to a position the salary of which is payable lrom other funds available
to the Department.
Approved For Release 2002/07/23 : CIA-RDP59-00224A000200080001-5
Approved For Release 2002/07/23 : CIA-RDP59-00224A000200080001-5
12 FOREIGN SERVICE ACT AMENDMENTS OF 1955
SECTION 7. SELECTION-OUT
This section changes the Foreign Service Act of 1946 in two respects:
(1) It extends the selection-out principle to class 1 officers who had
previously been exempt. This action was recommended by the De-
partment of State and the Wriston Committee on the grounds that
there is evidence of the accumulation of a certain amount of "dead-
wood" in this grade which should be removed in order to provide room
for promotion of more able persons lower in rank. The top rank of
the. Foreign Service, career minister, remains exempt from the formal
selection-out process but a comparable result is obtainable since the
law requires that any career minister who has been serving as a chief
of mission, upon completion of his assignment, must be retired unless
within a period of 3 months he is given another assignment as a chief
of mission or otherwise reassigned.
(2) This section also establishes the concept of maintenance of a
specified standard of performance as a prerequisite of remaining in the
Service. This is now done by regulation and it is considered advis-
able to give it the specific sanction of' law. It should be observed that
this section is not a substitute for the provisions governing separations
for cause (sees. 637 and 638 of the Foreign Service Act of 1946).
The following extracts from the Foreign Service Regulations (1 FSM
IV) cover separation by selection-out:
"731 Foreign Service Officers in Class 2 or 3
"Any Foreign Service Officer in class 2 or 3 who remains in the same class
for 10 years without, receiving a promotion to a higher class, or who is
rated by three successive selection boards, established as prescribed in
I FSM IV 150. among the lowest 10 percent, in his class and among the
lowest 10 percent of the eligible officers of the class shall be retired from the
Service. Foreign Service Officers retired from class 2 or 3 by selection-out
shall receive rd I irement benefits in accordance with 1 ISM IV 673.
732 Foreign Service Officers in Class 4 or 5
732. 1 Any Foreign Service Officer in class 4 or 5 who remains in the same
class for 10 years without receiving a promotion to a higher class
or who is rated by three successive selection boards, established as
prescribed in 1 FSM IV 150, among the lowest 10 percent in his
class and among the lowest 10 percent of the eligible officers of the
class shall be retired from the Service. Foreign Service Officers
retired from class 4 or 5 by selection-out shall receive the benefits
prescribed in 1 FSM IV 732.2, except that an officer eligible for
voluntary retirement may be granted such retirement in lieu of
selection-out."
The State Department pointed out that?
The selection-out principle results in the separation of some officers who would
not be separated for out-and-out unsatisfactory performance of duty, misconduct,
or malfeasance. It is aimed essentially at the "marginal" officer whose record
not only reflects a lack of demonstrated capacity to assume greai,er responsibility
but whose performance at, his present level leaves something to he desired.
The efficiency records relating to each Foreign Service officer and
employee are a major element in the evaluation_ made by the selection
boards, referred to in .the above regulations, of Foreign Service officers
in determining whether they should be promoted or selected out.
The Committee on Foreign Affairs was surprised to find during its
consideration of this bill that, although the Foreign Service Act of
1946 (sec. 612) contains this provision?
Under such regulations as the Secretary may prescribe and in the interest of
efficient personnel administration, the whole or any portion of an efficiency record
shall, upon written request, be divulged to the officer or employee to whom such
record relates?
Approved For Release 2002/07/23 : CIA-RDP59-00224A000200080001-5
Approved ForM9aisealitinn7/A2t3,:r4A4lap??s0(1224#N020008fW01-5
present Foreign Service regulations permit Foreign Service officers
to be denied the right to see these reports. The committee can see
no justification for this disregard of the explicit provision of law.
It expects the law to be implemented.
The changes in selection-out benefits are made in order to extend
to officers of class 1 who are selected out the retirement benefits now
provided for officers of classes 2 and 3 who are selected out and to
limit the amount of selection-out gratuity payable to officers of classes
4 and 5 retired under the provisions of section 633 to 1 year's pay.
Experience in the administration of the Foreign Service Act of 1946
has demonstrated that the amounts of some of the gratuities paid
under this provision were extremely large, were 'considerably in excess
of those envisaged by the authors of the act and, in extreme cases,
were in excess of the amounts that an officer would have received
had he been retained in duty status until retirement.
SECTION 8. RETIREMENT CREDIT FOR SERVICE IN TIIE ARMED FORCES
The provisions of section 8 of the bill eqnalize the benefits accorded
Foreign Service officers who have served in the armed services of the
United States with those accorded civil service employees who have
had such service.
Under existing law, persons entering the Foreign Service Retire-
ment and Disability System may obtain retirement credit for prior
military service, but only by making a special contribution of 5 per-
cent of their annual salary for each such year of service for which
credit is sought (sec. 852 (b) of the Foreign Service Act of 1946).
Since April 1, 1948, persons coming under the civil service retire-
ment and disability system are given retirement credit for such mili-
tary service without cost to them (sec. 9, Public Law 426, 80th Cong.).
About 60 percent of the Foreign Servide officers now on the rolls
and of the State Department employees entering the Foreign Service
Officer Corps under the integration program have prior military
service. The purpose of section 8 (b) of this bill is to permit partici-
pants in the Foreign Service Retirement. and Disability System to
receive credit for their military service without making special con-
tributions. It is estimated that this provision would increase the
long-term requirements on the Foreign Service retirement fund by
about 867,000 a year (1) assuming that persons entering the Foreign
Service have proportionately as much prior military service as the
average Foreign Service officer on the rolk-1 as of February 28, 1955,
namely, 1.8 years, and (2) assuming a corps of 3,000 Foreign Service
officers.
Since April 1, 1948, a number of Foreign Service officers have made
contributions to the Foreign Service retirement fund in order to obtain
retirement credit for prior military service. Section 8 (c) provides
that in such cases there will be reimbursement in the amount contrib-
uted. It is estimated that this provision will affect approximately 250
officers and that the average refund will be about $430 per officer,
with the estimated total of such funds approximating $110,000.
Approved For Release 2002/07/23 : CIA-RDP59-00224A000200080001-5
Approved For Release 2002/07/23 : CIA-RDP59-00224A000200080001-5
14 FOREIGN SERVICE ACT AMENDMENTS OF 1955
SECTION 9. SALARY DIFFERENTIAL OR EXTRA CREDIT TOWARD
RETIREMENT
This section amends section 853 of the present law by providing that
no extra credit toward retirement for service at unhealthful posts
shall be credited to any Foreign Service officer who shall have been
paid a salary differential in accordance with section 443, as amended
(see discussion of sec. 3, above), for such service performed subse-
quent to the date of the enactment of this act. In effect, sections 3
and 9 taken together will provide a Foreign Service officer serving
at a post designated by the Secretary of State as a hardship post
(provided such post is also designated an "unhealthful post," which
would be true in almost every case) with a choice between accepting
for such service a salary differential or extra credit (1% years for each
year of such service) toward retirement.
SECTION 10. ALLOWANCES
(a) Home service transfer allowance
This subsection amends the Foreign Service Act of 1946 to give
specific authorization for a home service transfer allowance to an
employee assigned to ft post in the United States between assignments
to posts abroad. Such an allowance is already being provided to
employees transferred to a new post in a foreign country.
In the Foreign Service, a transfer back to the United States is just
another in a series of transfers. The unusual expenses incident thereto
may be as great or greater than similar costs incurred in transferring
between posts abroad. In the case of employees of long years of
service, a transfer to the United States adds that much more to the
total out-of-pocket expenditure incident to the mobile nature of their
employment. The home service transfer allowance contemplated
would be a combination of two payments: (1) that comparable to the
temporary lodging allowance at overseas posts, i. e., reimbursement
for hotel room expenses for a short period while the employee is look-
ing for permanent residence quarters, and (2) a lump-sum payment to
help offset such inevitable expenses connected with transfers as those
covered by the existing transfer allowance at present paid only on
assignment to certain posts abroad, namely, expenses for clothing
to meet the different climatic conditions at the new post, for special
types of furniture and household equipment, for insurance on or repair
of effects damaged in shipment, etc.
It is intended that this allowance be paid to officers and employees
of the Service who are assigned to duty in the continental United
States and who may be normally expected to return to duty abroad.
It is planned to pay this allowance at the time of assignment to the
United States. It must obviously be paid without requiring proof of
return abroad, since that would defeat the purpose of this allowance.
It is not the intent of this section that such payments be repaid by the
officer or employee or by his survivors in the event his return to service
abroad is made impossible by death, disability, or other unforeseen
circumstance preventing such return. However, if the officer or
employee refuses to return abroad for personal reasons unacceptable
to the Secretary, he will be required to make reimbursement.
Approved For Release 2002/07/23 : CIA-RDP59-00224A000200080001-5
Approved Fork-Rableses211020i07/2J1 : LIANSEIPSOs0022419\0002000811001-5
(b) Education allowances
A major financial and morale problem confronting Foreign Service
personnel stationed outside the United States is the education of their
children. In many foreign posts in Asia, Africa, and the Near East
the language and culture are so different from our own that local
schools are unsuitable. At a number of posts there are so few
American children in the community that the organization of a
special school is not feasible. The financial burden imposed on per-
sons depending entirely on their salaries in meeting this situation has
resulted in real financial hardship which in some cases has made it
impossible for qualified personnel to remain in the Service.
The following cases were submitted by the State Department as
illustrating some of the problems faced by Foreign Service personnel
in educating their children abroad:
Case No. 1.?Mr. H, earning $5,853 per year, with 2 children, has been as-
signed to Maracaibo for the past 2 years. The only school there that would pro-
vide American equivalent education for the children is the local American
school subsidized by American oil companies. The annual cost for the 2 chil-
dren in that school was $1,442 or slightly more than 25 percent of Mr. H's annual
salary. Therefore, he was forced to place them in inferior Venezuelan schools.
He requested a 2-year leave of absence from the Foreign Service to attempt
through private business to enhance his financial position to the point where
he could return to the Foreign Service and still provide adequate education for
his children. The request was denied.
Case No. 2.?Mr. R, with salary of $11,130 per year, has 3 children. Mr. R.
was assigned to Beirut where his children attended the American community
school at a cost of $900 for the 3 for the period of 1 year. The following year
the tuition was doubled at the school and he did not feel that he could afford the
charge of $1,800. Rather than place the children in the American community
school for that year, Mrs. R and the children returned to the United States, thus
separating the family for a period of 1 year.
Case No. 3.?Mr. H was assigned to London at a salary of $10,330 and had 3
children of school age. The British schools point for British universities on a
system wholly different from that in the United States. Mr. H thought that his
two boys of high school age should attend an American school, especially as he
had been out of the United States for a number of years. Each of the 2 boys
won an $800 scholarship in his school in this country but, in addition to the
scholarships, the cost to Mr. H was $2,200 per year for the 2 boys, excluding
transportation to this country.
Case No. 4.?Mr. B, with salary of $12,200, was assigned to Manila and had
4 children attending the American school there. The total cost per year for the
4 children was $1,345. At this same post, Mr. L with salary of $5,313, had 3
children of school age. He could not afford to send those children to the
American school but had to enroll them in a lower quality Philippine school.
This bill approaches this problem by providing for the assumption
of a part of the educational costs by the State Department but at the
same time making clear that the United States Government does not
assume responsibility for providing an adequate education to the
children of all Foreign Service personnel while stationed overseas.
The Foreign Service family would have been entitled to the benefits
of the United States public school system had it remained in the
United States. The bill authorizes the payment of allowances to
cover expenses incurred by Foreign Service personnel in obtaining
educational services which are ordinarily provided without charge by
public schools in the United States.
Under the bill the Secretary must first determine whether assign-
ment to a post abroad involves extraordinary and necessary expenses
for elementary and secondary education. If so, the Secretary may
establish one or more allowances for the post.
Approved For Release 2002/07/23 : CIA-RDP59-00224A000200080001-5
Appwed For Release 2002/07/23 : CIA-RDP59-00224A000200080001-5
FOREIGN SERV ICE ACT AMENDMENTS OF 1955
For example, three allowances for elementary education may be in
effect simultaneously at a post where no adequate local school: is
available. But no child could qualify for more than one such allow-
ance.
(I) One allowance may be established for educatiag children at the
nearest adequate school. This allowance may not exceed tuition and
any other charges which must be paid to obtain services provided free
by public schools in the United States plus board and room and periodic
transportation between the post and the place where the school is
located.
(2) A second allowance may be established for personnel who choose
to send their children to a local school even though such local school is
inadequate, provided the charges for this local school are less than the
allowance for the nearest adequate school.
(3) A third allowance may be established for the post for personnel
who wish to ,educate their Children by the use of correspondence courses
if the necessary costs involved in the use of this type of instruction are
less than the allowance for the nearest adequate school.
The object in all cases is to permit the parent to retain complete
freedom to educate his children in any way he pleases, but at the same
time to make sure that the parent cannot make a profit by selecting a.
lower cost type of education than the maximum authorized for the
post.
The parent will be free at all times to send his children to any
school he pleases, including a school in the United States. If he
chooses a more expensive school, or one at a greater distance than
provided for in his post educational allowance, he: can collect the
standard allowance but mast pay all excess costs out of his own
pocket.
SECTION 11. TRAVEL ALLOWANCE TO OBTAIN AMERICAN EDUCATION
If a Foreign Service officer or employee desires to provide an Amer-
ican high school or college education for any of his dependents at his
own expense, the bill authorizes payment of a travel allowance for one
trip to the United States and return during high school, and another
during college, so that the dependent may mainta in a tie with his
family. No educational allowance will be provided for any dependent
to attend college. As pointed out above, the post educational allow-
ance may 130 applied toward the cost of elementary or secondary edit-
cation in the United States, but no educational allowance may be paid
for a dependent for whom a travel allowance has been paid under
this section.
SECTION 12. MEDICAL EXAMINATION OF DEPENDENTS
By this section, existing law (sec. 943) is amended so as to broaden
the scope of periodical physical examinations now req aired for Foreign
Service officials to include their dependents. This is .done in recog-
nition of the practical consideration that health problems of the
various members of the family unit can have an important effect on
the employee's job performance. As explained by the Secretary of
State in transmitting this legislation, a good deal of time and attention
can be consumed by sueh problems and. in the event that a dependent
Approved For Release 2002/07/23 : CIA-RDP59-00224A000200080001-5
Approved For peAw 39R9pui; ThRivi,903.34m020008oppi-5
has to be evacuated for medical care, it is sometimes necessary for
humanitarian reasons to send the employee home also. Preemploy-
ment and preassignment examinations of dependents should prevent
many of these problems by avoiding the assignment of personnel with
dependents who may become medical liabilities, or by encouraging
employees to leave such dependents in e the United States. This
section also requires the Secretary of State to provide for the cost of
administering inoculations and vaccinations to snub dependents.
SECTION 13. TECHNICAL AND CONFORMING CHANGES
This section merely makes the necessary technical and conforming
'changes required by the bill. The deletion of the phrase "or 634" in
section 432 (c) of the present law is required because section 633 as
revised now covers the subject matter previously contained in both
sections 633 and 634 relative to selection-out. Section 634 as revised
relates only to selection-out benefits and, is no longer pertinent in
'relation to section 432 (c).
SECTION 14. EXISTING RULES AND REGULATIONS
This section provides that existing rules- and regulations applicable
to the Foreign Service shall remain in effect until revoked or rescinded,
or modified or superseded by regulations made in accordance with the
provisions of this legislation, unless such existing rules or regulations
are inconsistent with the provisions of this legislation. The purpose
of this provision is to provide for an orderly transition and imple-
mentation of the provisions of this legislation.
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, as intro-
duced, 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):
FOREIGN SERVICE ACT OF 1946
SALARIES AT WHICH FOREIGN SERVICE OFFICERS DLAV BE APPOINTED
FEc. 413. (a) A person appointed as a Foreign Service_ officer of class 6 shall
receive salary at that one of the rates provided for-that class by section 412 which
-the Secretary shall, taking into consideration his age, qualifications, and experience,
-determine to be appropriate for him to receive.
[(b) A person appointed as a Foreign Service officer of classes 1 through 5,
inclusive, shall receive salary at the minimum rate:provided for the class to which
he has been appointed, except that until March 31, 1955, not more than five hun-
dred persons may be appointed from the classified civil service or the Foreign
Service reserve or Foreign Service staff at other than the minimum rate.3
SEC. 418. A person appointed as a Foreign Service nificer Shall receive basic
salary at one of the rates of the class to which he is appointed which the Secretary shall,
taking into consideration his age, qualifications, and experience, determine to be appro-
priate for him to receive.
OTHER OFFICERS AND ENIPLOYEES
S.-En. 432. (a) * * *
Approved For Release 2002/07/23 : CIA-RDP59-00224A000200080001-5
Appred For Release 2002/07/23 : CIA-RDP59-00224A000200080001-5
FOREIG:\ SERVICE ACT AMENDMENTS OF 1955
fei A Foreign Servi:e officer promoted t a higher class shall receive salary at
the rate prescribed in sect ;on 412 for the class to which he is protnoted from the
effective date of his apitointment to such class. A Foreign 'ter vice officer pro-
moted to a higher ants during a recess of the Senate shall receive salary at the
rate prescribed for the class to which he is promoted from the effective date of his
appointment to such class until the end of the next sessii..)14. 11 Um Senate shot rid
1-eject or fail to confirm the promotion of such an officer during the session follow-.
Mg the date of his promotion, the Foreign Service officer shall, unless he has be-
come liable to separatitm in accordance with the provisions of sifetion 633 [or 034],
at automatically rein- ale I in the class froin which he was promoted and receive
the salary he was receiving prior to his promotion, such :reinstittement to be effec-
tive, in the event of fajta!' ion of the notnination, from the dIlLe of rejection; and
in the event of the fahure of the Senate to act on the nomination during the session:
Follow ng a promotion, front tt e termination of that session.
ADADNISTRATF EsTADLISHMENT oF' SALMI Y VIAN FtENTIALS
[Sic. 443. Whenever the Fresident shall find and declare that, the rates of
salary provided for Foreign Service staff officers and employees in section 415.
tire inadequate for an:, misitimis allocated to any particular Giar?s or subclass, he
may,
it iii such regulations as he may prescribe, estaldish necessary schialules
of differentials in the rates of salary prescribed for such classes or subclasses, but
the differential in salary of a person holding any such position shall not exceed
25 per centum of the salary he would otherwise receive. Swat differentials shall
be granted only with respect to positions at posts at which extraordinarily diffi-
tiult living conditions or excessive physical hardship prevail or at which notably -
unhealthful conditions, exist. The Secretary shall prepare and maintain a list
of such posts.]
,Sc. 443. The PresIdent .inay, under such regulations as h.c may prascribe. estab-
lish rates of salary differential, Pot exceeding i7 per centum of basic saiaiff, for I+ oreigu.
Service officers, T?eserve officers., and staff officers and es, ploys assigned to pests
involving extraordinarily difficult living conditions, excessive physical hardship. or
notably unhealthful conditions. The Secretary shall prepare and maintain a iist
of such posts.
ADMISSION TO CLASSES 1, 2, 3, 4, AND 5 witrtiouT PRIOR SERVICE IN CLAsS I
Sue. 517. A person who has not served in class 6 shall not be eligible for ap-
pointment as a Foreign Service officer of classes 1 to 5, inchisive, unless be has
passed [such written, oral, physical, and other examinations as the] comprehen-
sive mental and physical examinations prescribed by the Board ,01 Examiners for the.
Foreign Service [may proscribe] to determine his fitness DIA aptitude for the
work of the Service; demonstrated his loyalty to the Government of the United
States and his attachment to the principles of the Constitution; turd rendered at-
least four years of actual service [immediately] prior to appointment in a posi-
tion of responsibility in the [Service or in the Department or both] serviee of a
Government agency, or agencies, except that, if he has reached the age of thirty-one
years, the requirement as to service may be reduced to three years. After the
date of enactment of tie Foreign Service Act Amendments of 1955 and until other-
wise provided by Act of Congress, not more than one thousand two hundred and fifty
persons who have not served in class 8 may be appointed to classes 1 to 5, inclusive;
of such persons, not more than forty may be appointed who 'were not employed on.
March 1, 1955, in the Department, including its Foreign 'Service Reserve and For-
eign Service Staff personnel, and who have not also served in a position of responsi-
bility in the Depart nv at , or the Service, or both, for the required period prior to ap-
pointment.
APPOINTMENTS AND ASSMNMENTS TO THE RI: EVS
SI2C. 522. Whenever the services of a person who is a citizen of the United States,
and who has been such for at least five years are required by the Serviee, the.
Secretary may?
(1) appoint as a 'Reserve officer for nonconsecutive periods of not more
than [four] five ,'ears each, a person not in the employ of the Government
whom the Board of the Foreign Service shall deem o have outstanding
qualifications [of a specialized character]; and
Approved For Release 2002/07/23 : CIA-RDP59-00224A000200080001-5
Approved FoFrOMRsEEKI02107143aMU2-g92?hes0002000182001-5
(2) assign as a Reserve officer for nonconsecutive periods of not more than
[four] five years each a person regularly employed in any Government
agency, subject, in the case of an employee of 11, Government agency, other
than the Department of State, to the consent of the head of the agency
concerned.
ASSIGNMENTS TO ANY GOVERNMENT AGENCY
[SEC. 571. (a) Any officer or employee of the Service may, in the discretion of
the Director General, be assigned or detailed for duty in any Government agency,
such an assignment or combination of assignments to be for a period of not more
than four years. He may not again be assigned for duty in a Government agency
until the expiration of a period of time equal to his preceding tour of duty on
such assignment or until the expiration of two years, whichever is the shorter.]
SEC. 571. (a) Any officer or employee of the Servici may, in the discretion of the
Secretary, be assigned or detailed for duty in any Government agcncy, such an assign-
ment or combination of assignments to be for a period of not more than four years,
except that under special circumstances the Secretary may extend this four-year period
for not more than four additional years.
(b) A Foreign Service officer may be appointed as Director General, notwith-
standing the provisions of the last sentence of paragraph (a) of this section, but
any such officer may not serve longer than four years in such position or positions
and upon the completion of such service may not again be assigned to a position
in the Department until the expiration of a period of time equal to his tour of
duty as Director General or until the expiration of two years, whichever is shorter.
(c) If a Foreign Service officer shall be appointed by the President, by and with
the advice and consent of the Senate, to a position in the Department, the period
of his service in such capacity shall be construed as constituting an assignment for
duty in the Department within the meaning of paragraph (a; of this section and
such person shall not, by virtue of the acceptance of such an assignment, lose his
status as a Foreign Service officer. Service in such a position shall not, however,
be subject to the limitations concerning the duration of an assignment or concern-
ing reassignment contained in that paragraph.
(d) If the basic minimum salary of the position td which art officer or employee
of the Service is assigned pursuant to the terms of this section is higher than the
salary such officer or employee is entitled to receive as an officer or employee of
the Service, such officer or employee shall, during the period such difference in
salary exists, receive the salary of the position in which he is serving in lieu of his
salary as an officer or employee of the Service. Any salary paid under the pro-
visions of this section shall be paid from appropriations made available for the
payment of salaries of officers and employees of the Service and shall be the salary
on the basis of which computations and payments shall be made in accordance
with the provisions of title VIII.
(e) The salary of an officer or employee assigned pursuant to the terms of this
section shall be paid from appropriations made available for tit( payment of salaries
of officers and employees of the Service. Such appropriations may be reimbursed,
however, when the Secretary enters into reimbursement agreements with heads of
Government agencies for all or any part of the salaries of officers or employees assigned
to such agencies and payment is received pursuant thereto, or when an officer or
employee of the Service is assigned to a position the salary of which is payable from
other funds available to the Department.
[FOREIGN SERVICE' OFFICERS IN CLASSES 2 AND 3
[SEc. 633. The Secretary shall prescribe the maximum period during which
Foreign Service officers in classes 2 or 3 shall be permitted -to remain in such
classes without promotion. Any officer who does not receive a promotion to a
higher class within that period shall be retired from the Service and receive retire-
ment benefits in accordance with the provisions of section 821.
[FOREIGN SERVICE OFFICERS IN CLASSES 4 AND
[Sac. 634. (a) The Secretary shall prescribe the maximum period during
which Foreign Service officers in classes 4 or 5 shall be permitted to remain in
such classes without promotion. Any officer who does not receive a promotion
Approved For Release 2002/07/23 : CIA-RDP59-00224A000200080001-5
Approved For Release 2002/07/23 : CIA-RDP59-00224A000200080001-5
20 F01111CN SERVICE ACT AMENDMENTS OF 1955
to a higlar class w Itin that period shah be retired from the Service and r?If`jVls.
benefit ' as f011.0VO,L
[(1) 0110-4well1,11 of ;t year's salary at his then current salary rate for em
year of service and prow)) ttonately for a fraction of a ear, payable wihotit,
interest, in three equal installments ou the 1st day of January following -OW
officer's retirement and ri he t wo aTIV ive,?saries oilhis date imme,liately followine;
and
[(.2) .% refund of the eontributiOns inade to the Foreign Service Retirement and
Disability Vultd, w oh 'merest thereon at 4 per cell-turn, compounded annually,
except that in lien of such refund such officer may elect to receive retiremei,t.
benefits on reaching the at''' of sixty-two, in aecordance it h I Ite provisions of
section 821. In the :fsent that an officer w ho was separated from class 4 and who
has elected to receive reirement lies before reitehila.: I age rt sivty-two,
his death shall be considered a death in -orv iee within file meaning of sect ion 832.
In the event that an officer who was separated from class and who has el,.!.creil
I o receive retirement belief) s dips before, reaching the age of sixty-t wo, the total
amount 01 his con tri ms made to the 4'oreign Service Ilet irement and 1111sahilit y
ifmid, rcah intor,:t Ii urn at 4 per eat' tin, compounded MIMI:111V, shall be
'mid in accordance a III' hi provisions of section S11.
[(b) Not withs) tii ! provisions of section 3477 of t h itt sed Statutes
(31 E. S. C. 203) or the provisions of any othr r law, a Foreign Service of fieer who
is retired in accordams:, w it h the provisions of this sectionJ
1 111
sda., aye the right
Iii assig:n to any person or corporation the whole or any part of the benefits
receivable by him pursuant to paragraph (a) (I) of this section. Any sorb
assignment shall form approved by the St cretan it the Treasury turd a
copy therxil shall be deposited with the Secretary of the Treasury by the officer
executing the assignment ]
SE LECTia IV- 0 UT
SEC. 633. (a) 'I') r' Se,?,)a..:0 shall prescribe regulations concerning?. -
(1) the mor'; tire m period during which an y Foreign. ;'..:erviee officer belma the
CliVis of career mi niOer shall be permitted to remain in class without prumotion:
and,
(1!) MR slumlord al petform,ance 111,711 any such ofilem"mast maintain to
reittain in the Smwtre.
(b) Any oreign Seri cc off leer below the class Or career minister who does not
receive a promotion fr e aigher class within the specified per,.sul or who fails to meet
the standord of perforate rice required of officers of his claxs Maill be retired from the
Service anl receive benefits in accordance with the provisions of section 634.
SELECTION-OUT BENEFITS
SEC. 831 (a) Ano Foreign Service officer in classes 1, 2, or 3 ?eh? is retired ,from
the Service in accordance 'with the provisions of section 633 shall receive retirement
benefits in accordance adt it the pro talons ot. section 821.
(b) .Any Foreign Service officer in classes .4 or if who is retired from the Service in
:accordance ?vith the ,i till of section 638 shall receive.- -
(1) one-twelftli of a year's salary at his then current salary rate ,for each year
of service and proportionately for a fraction of a year, but not exceeding a total
of one year's salary al his then current salary rale, payable without interest, in
three equal instatIments the 1st day of January following the officer's retire-
ment and on the two anniversaries of this date immediately following: and
(2) a refund- id the contributions made to the Foreign Service Retirement and
Disability Fund, an dt interest thereon at 4 per centum, compounded annually,
except that in liii of such, refund such officer may elect to receive retirement benefits
? on reaching the age of sixty-two, in accordance with the provisions of section 821.
In the event that an officer who was separated from class:, and who has elected, to
receive retirement benefits before reaching the age of sixty-two, his death shall
be considered a death in service within the meaning of section 833. In the event
that on officer who was separated from. class 5 and who has elected to receive
retirement benefits (lies before reaching the age of sixty-two, the total amount of his
contributions made to the Foreign Service Retirement and Disability Fund, with,
interest th,ereon at 4 per centum, compounded annually, shall be paid in accordance
with, the provisions of section 841.
(e) iVotwithstanding the 'provisions of section 3477 of the Revised Statutes, as
amended (31 U. S. ('. 203), m. the provisions of any other law, it Foreign Service officer
who is retired in accordance with the provisions of section 6,13 shall have the right
Approved For Release 2002/07/23 : CIA-RDP59-00224A000200080001-5
Approved F oroBeielasea0042i0 x13 Apik,R.pRq 9-9,92 o 0200 osip o 01-5
to assign to any person or corporation the whole or any part of the benefits receivable
by him pursuant to paragraph (b) (1) of this section, Any such assignment shall
be on a form approved by the Secretary of the Treasury and a copy thereof shall be
deposited with the Secretary of the Treasury by the officer executing the assignment.
ANNUITANTS
SEC. 804. Annuitants shall be persons who are receiving annuities from the
Fund on the effective date of this Act, persons who shall become entitled to
receive annuities in accordance with the provisions of sections 519, 631, 632,
[633,] 634, 636, 637, 831, 832, and 833, and all widows and beneficiaries of
participants who are entitled to receive annuities in accordance with the terms
of this title.
PRIOR SERVICE CREDIT
SEC. 852. (a) A participant may, subject to the provisions of this section,
include in his period of service?
(1) service performed as a civilian officer or employee of the Government
prior to becoming a participant; and
(2) active military or naval service in the Army, Navy, Marine Corps,
Air Force, or Coast Guard of the United States.:
(b) A person may obtain credit for prior service by making a special contribu-
tion to the Fund equal to 5 per centum of his annual salary for each year of service
for which credit is sought subsequent to July 1, 1924, with interest thereon to
date of payment compounded annually at 4 per contuni, except that no special
contributions shall be required for periods of active military or-naval service in the
Army, Navy, Marine Corps, Air Force, or Coast Guard of the United States prior
to becoming a participant. Any such participant may, under such conditions as
may be determined in each instance by the Secretary, pay such special contribu-
tions in installments during the continuance of his service.
EXTRA SERVICE CREDIT FOR SERVICE AT ITIVHEALTHI IIL POSTS
SEC. 853. The President may from time to time establish a list of places which
by reason of climatic or other extreme conditions are.to be classed as unhealthful
posts, and each year of duty subsequent to January 1, 1900, at such posts inclusive.
of regular leaves of absence, of participants thereafter retired, shall be counted
as one year and a half, and so on in like proportion in reckoning the length of
service for the purpose of retirement, fractional mouths being considered as full
months in computing such [service.] service, but no such extra credit for service at
such unhealthful posts shall be credited to any participant who shall have been paid
a salary differential in accordance with section 443, as amended, for such service
performed subsequent to the date of enactment of the Foreign Service Act Amendments
of 1955. [The President may at any time cancel the designation of any places
as unhealthful without affecting any credit which has accrued forservice at such
posts prior to the date of the cancellation.]
ATTACHMENT OF MONEYS
SEC. 864. None of the moneys mentioned in this title shall be assignable either
in law or equity, or be subject to execution, levy, attachment, garnishment, or
other legal process, except as provided in section 634 r (b)] (c).
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 1 765 of the Revised Statutes (5-
Approved For Release 2002/07/23 : CIA-RDP59-00224A000200080001-5
Approved For Release 2002/07/23: CIA-RDP59-00224A000200080001-5
22 N ERttCE ACT ,viVIENDMENJIS (IP 1955
U. S. (.:;. TO), the Secret a.--7 a;;thorized it" grant to any (Allot". or employee of the
Service who is a citizen the (hilted States- -
(l)
aIIoo'aiitt' ssh're V or (lovernteent owned or rented, quarters are not
available, for his itta 1ua"lrrr', heat, leght, fuel, gas, and eleetricity , including
allowances ler ; he k '0!?'1 of lodging at temporary quartet's, fficurred by an
(Allen" or employeof the Service wit the members of ids family upon first
arrival at; a nee po-t, for a period Lot in excess of three tmeiths after ;such
firs) arrival or entii ;he oiampatien of residenco quarters, whichever period
shall la. shorter, up to but not in ext'ess of the aggregate amount of the per
diem that would be allowable to such oilieer or employee for him ...41f and the
members of I;is family for such period if they were in "ravel states;
;2) cost-f-ibs t at :',Ilowances, whenever the Secretary shall determine ?
(P that the ost of living at a post abroad is proportionately so high
flew an alley, aece is necessary to enable an talker or empieyee
Seryli!e at;omit ;)ost to carry on his work ele;ien",,,;;
(t ii that extraordinary and necessary exi);enses, not otherwise com-
pensated f)e., art into rred by an officer or entployee dt he l...lerviee incident
"0 "he estatAislonent of his residence at [his post of assignment] any
post of ass; gutaint abroad or at a post of assignment in the contiwntal
1 'ailed ttah,s briween assignments to posts abroad;
(iii) that an .fflowanee is necessary to aisist an officer or emph"yee of
the Servlia. \via; is itompelled by reason of dangerons, mitably unhealth-
ful, or excessively adverse living ()onditions at 'his post abroad or for
Cie eoevenionce of the (loyertmient to meet the additional expense of
maintaining his wife and minor children elsewhere than in the country
of his assigeme.d;
(iv) that exit nordinary and nehessary expenses, not tiherwise compen-
sated for, mast ,t! incurred by an ,.-itlicer or employee or the Service, by rcasoa
of ki.,4 service abroad, in providing for adequate eleinentor'ti and secondary
idttratitot lor his dependents; allnwances under this sabnoragraph for any
post shall not e,,!ceed the cost of obtaining such, educational services ai are
todinarily proth-tted without charge by the public schools of the United Stales
plus, in those '" uses where adegitale schools are not a tillable at the post,
board and room, and periodic transportation between the post alai the
nearest totality where adeTuate sehools are available; 2f any such officer or
employee manillas a less expensive method of providley such education, any
allowance paid to him?shall be t educed accordingly; no allowance shall be
paid under this subparagraph fat' a dependent for ichout it toilet allowante
has (wep, p' 'iii aralet section 911 :,9);
(3) allow am'": in order to provide for the proper representation of the
United States by officers or employees of the Service.
GENERAL t'ROVISIONF;
Sac. 911. The Secretary may, undel such regulations as he shall prescribe,
pay--
(I) the travel expenses of officers and employees of the Service, including
expenses incurred while traveling pursuant to orders issued by the Secretary
iii aecordance with the provisions of section 933 with regard to the granting
of home leave;
(2) the travel expenses of the otembers of the family of an officer or
employee of the Service when proceeding to or rettipting front his post of
duty; accompanying him on authorized home leave; or otherwise traveling
in accordance with authority granted pursuant to the terms of this or any
other Act;
(3) the cost of transporting the furniture and household and personal
effects of an officer or employee of the Service to Ids successive posts of duty
and, on the termination of his services, to the place where he will reside;
(4) the cost of storing the furniture and household and personal effects
of an officer or employee of the Service who is absent under orders from his
usual post of duty, in who is assigned to a post to which, becausE; of emergency'
conditions, he eatualt take or at which he is unable to use, his furniture and
household and persona" effects;
(5) the cost of storing the furniture and household and personal effects of
an officer or employee of the Service on first arrival at a post for a period
not in excess of three months after such first arrival at such post or until
the establishment of residence quarters, whichever shall be shorter;
Approved For Release 2002/07/23: CIA-RDP59-00224A000200080001-5
Approved For Release 2002/07/23 : CIA-RDP59-00224A000200080001-5
FOREIGN SERVICE ACT AMENDMENTS OF 1955 23
(6) the travel expenses of the members of the family and the cost of trans-
porting the personal effects and automobile of an officer or employee of the
Service, whenever the travel of such officer or employee is occasioned by
changes in the seat of the government whose capital is his post;
(7) the travel expenses and transportation costs incident to the removal
of the members of the family of an officer or employee of the Service and
his furniture and household and personal effects, including automobiles, from
a post at which, because of the prevalence of disturbed conditions, there is
imminent danger to life and property, and the return of such persons, furni-
ture, and effects to such post upon the cesgation of such conditions; or to
such other post as may in the meantime have becoine the post to which
such officer or employee has been assigned.
(8) the cost of preparing and transporting to their former homes in the
continental United States or to a place not more distant, the remains of an
officer or employee of the Service who is a citizen of the United States and
of the members of his family who may die abroad or while in travel [status.]
status;
(9) the travel expenses incurred by an officer or employee of the Service who
is assigned to a foreign post, in transporting dependents to and from United
States ports of entry designated by the Secretary, to obtain an American second-
ary or college education, not to exceed one trip each way for each dependent for
the purpose of obtaining each type of education.,
PHYSICAL EXAMINATIONS AND COSTS OF INOCULATIONS
SEC. 943. The Secretary shall, under such regulations as he may prescribe,
provide for the periodic physical examination of officers and employees of the
Service who are citizens of the United States, and their dependents, including exam-
inations necessary to establish disability or incapacity in accordance with the pro-
visions of section 831, and for the cost of administering4nocu1ations or vaccinations
to such officers or employees, and their dependents:
Approved For Release 2002/07/23 : CIA-RDP59-00224A000200080001-5
712,4d,r-oe 14$42A-e_c?P tvl_vde
Approv 7 : - 59-00224A000200080001-5
84TH CONGRESS } SENATE
/st Session
Calendar No. 130
:7 1?77
FOREIGN SERVICE ACT AMENDMENTS OF 1955
MARCH 30 (legislative day, MARCH 10).?Ordered to be printed
Mr. GEORGE, from the Committee on Foreign Relations, submitted the
following
REPORT
[To accompany H. R. 4941]
The Committee on Foreign Relations, having had under consider-
ation H. R. 4941 to amend the Foreign Service Act of 1946, as
amended, reports that bill to the Senate without amendment and
recommends that it do pass.
GENERAL PURPOSE OF BILL
The main purpose of the pending bill is to amend the Foreign
Service Act of 1946 to make it possible to expand the Foreign Service
officer corps from its present membership of about 1,600 officers to a
strength of over 3,000 officers. This expansion is to be accomplished
by enabling qualified officers in the Department of State (including its
Foreign Service reserve and staff personnel) and a limited number of
officers from other Government agencies ,to be appointed to the
Foreign Service officer corps, after comprehensive examinations, at
8a1aries generally equivalent to those they now receive as Government
employees. In addition, the pending bill contains provisions relative
to service at hardship posts, retirement, selection-out procedures, and
educational allowances. The bill gives effect to recommendations
made in 1954 by the Secretary of State's Public Committee on Person-
nel (the Wriston Committee).
The pending legislation does not authorize: any increase in the total
number of employees to be engaged in the foreign policy functions of
the Government, but would make available to the Secretary of State
a larger corps of officers that can be assigned for duty at home or
abroad. The bill does not increase salaries:although it is estimated
that provisions relative to educational allowances, travel, retirement,
and other benefits will cost approximately $1,290,000 annually.
55006-55 1
Approved For Release 2002/07/23 : CIA-RDP59-00224A000200080001-5
Approved For Release 2002/07/23 : CIA-RDP59-00224A000200080001-5
2 FOREIGN SERVICE ACT AMENDMENTS OF 1955
BACKGROUND
The Foreign Service Act of 1946 was designed to enable the Foreign
Service to serve the interests of the United States abroad. From time
to time since 1946 that act has been amended, but thus far no perma-
nent amendments have been made to enable the expansion of the
Foreign Service to meet the increased responsibilities of the United
State S in the conduct of its foreign relations.
Under the terms of the Foreign Service Act of 1946 and related
legislation, employees engaged in foreign policy duties have fallen into
the following categories:
PERSONNEL STRENGTH
(Department of State and Foreign Service employees as of February 28, 1955)
By category
Departmental employees:
1. Officers (GS-7 and up)
2,
360
2. Clerical (GS--6 and below)
2,
509
4,
869
Foreign Service employees:
1. Chiefs of mission (noncareer)
34
2. Foreign Service officers
1,
573
3. Foreign Service reserve officers
233
4. Foreign Service staff officers (FSS?) and above)._ _ _ _ _ _ __
1,
597
5. Foreign Service clerical (FSS-10 and below)
2,
842
6. Aliens (employed abroad)
9,371
-
15, 650
-----
Total American personnel
11, 148
Total aliens
9,371
In the United States and abroad
20,519
By location
Tn United
States
Overseas
Total
Departmental employees
4,869
4, 869
Foreign Service:
1. Chiefs of mission (noneareer)
34
34
2. Foreign Service officers
912
1, 161
1, 573
3. Foreign Service reserve officers
35
108
233
4. Foreign Service staff officers and employees_
321
4,118
4,438
5. Aliens
9,371
9,371
Total
5,637
14,882
Grand total, all personnel
20,519
Despite the fact that most of the civil-service officers in the
Department are intimately concerned with foreign policy matters,
they are not obliged, and in many eases have had no opportunity, to
serve overseas.
Foreign Service personnel, on the other hand, may be assigned to
serve any place in the world.
A number of studies have been made of the desirability of inte-
grating certain categories of departmental employees with the Foreign
Service, thus increasing the number of officers available for assignment
overseas and at the same time increasing the number of positions in
Approved For Release 2002/07/23 : CIA-RDP59-00224A000200080001-5
Approved For Iled2ra292Nn226chimpAgogg.#4gg92000800g1-5
the Department of State which might be filled by officers with overseas
experience, including members of the Foreign Service officer corps.
In May 1954 a Public Committee on Personnel under the chairman-
ship of Henry M. Wriston recommended to the Secretary of State
that steps be taken?
To integrate the personnel of the Department of State and of the Foreign Service,
where their official functions converge, into a single administrative system, thus
putting an end to the institutional separateness of these main functioning arms
of United States diplomacy.
In order to make this recommendation effective, the Secretary found
it desirable to seek authority from the Oongress to enable him after
appropriate examination, to transfer departmental and Foreign Service
staff and reserve officers into the Foreign Service officer corps at
substantially the same salary they have been receiving.
Last year the Congress in Public Law 759 authorized the appoint-
ment to the Foreign Service officer corps by March 31, 1955, of not to
exceed 500 officers to classes other than c4lass 6, the lowest class in the
Foreign Service officer corps, at other than the minimum salary for
such classes. Although it would have been possible for the Secretary
of State to have appointed these officers to the Foreign Service officer
corps, under the terms of the Foreign Service Act of 1946, he would
have been required to appoint them at the minimum salary in each
class. This requirement has had the effect of restricting severely the
number of qualified Department of State officers willing to accept
appointment as Foreign Service officers. In some instances they
would have been required to take salary cuts up to $1,600 per year.
Most of the appointments authorized by the legislation last year
have now been made.
In January the Secretary of State proposed legislation designed to
accomplish the following general purposes:
1. To permit appointments in classes FSO-1 to FSO-5 to salary steps above the
minimum.
2. To make Foreign Service officers and reserve officers eligible to receive hard-
ship post differentials which are now paid to staff corps officers and employees
and civilian personnel of other Government agencies who are stationed abroad.
3. To permit the Secretary of State to waive the 4-year limit on the assignment
of Foreign Service personnel to duty in the United States.
4. To establish a home service transfer allowance for Foreign Service personnel
assigned to duty in the United States between tours of foreign duty.
5. To extend the selection-out system to Foreign Service officers of class 1.
6. To discontinue the existing provisions granting Foreign Service officers
time-and-one-half credit toward retirement for service at unhealthful posts.
7. To make officers of other Government agencies eligible for lateral entry as
Foreign Service officers.
8. To establish a basis for educational grants to defray part of the expenses
of educating children of American parents stationed abroad.
9. To increase the maximum duration of Foreign Service reserve appointments
to 5 years and to permit the Secretary of State to grant additional 2-year exten-
sions of such appointments.
10. To permit the Secretary of State to negotiate reimbursements for Foreign
Service personnel detailed to other Government agencies.
11. To limit the amount of gratuities paid Foreign Service officers in classes
4 and 5 who are selected out of the Service.
12. To authorize physical examinations, inoculations, and vaccinations to
dependents of Foreign Service personnel.
Approved For Release 2002/07/23 : CIA-RDP59-00224A000200080001-5
ApTroved For Release 2002/07/23 : CIA-RDP59-00224A000200080001-5
FOREIGN 5FE'VICE ACT AMP NDMEN1S OF 1955
CO UMITTE E AtITION
On March 22, 1933, the Committee on Foreign Relations held an
Open hearing to consider the Secretary's proposals which had been
amended by the House Committee on Foreign Affairs and embodied
in H. R. 4941. Testimony was received from Hon. Loy Henderson,
Deputy Under Secretary of State for Administration. On March 29,
1955, the committee voted to report ft R. 4941 favorably to the
Senate.
Tin: PENDING LEGISLATION
1, Lateral evtry
Two provisions of the pending legislation are specifically related to
the appointment of State Department officers to the Foreign Service
at salaries generally equivalent to those they now receive.
Section 2, by amending section 413 of the Foreign Service Act,
authorizes the Secret ary of State to determine the basic salary which
may be paid to persons appointed to the Foreign Service officer
corps, taking into consideration their age, qualifications, and experience.
Section 4- amends section 317 of the Foreign Service, Act to make it
clear that, not more than 1,250 persons who have not served in class
6 may be appointed EIS Foreign Service officers. Nominees must come
from individuals who have served at least 4 years in a position of
responsibility in a Government agency, except that if the employee has
reached the age of 31 the requirement as to service may be reduced to
3 years. It is not necessary that this service be immediately prior
to appointment, as a Foreign Service officer although, except as noted
below, appointments can be made only of those who were in fact
employed in the Department of State (including its Foreign Service
reserve or Foreign Service staff) on March 1, 1953. Provision is made,
however, for not, more than 40 persons riot on the Department's
rolls on March 1, 1953, to be permitted lateral entry into the Foreign
Service officer corps.
In other words, of the 1,250 lateral appointments authorized, 1,210
are, in effect, restricted to persons who were employed in the Depart-
ment of State (inclutlina. its Foreign Service reserve and Foreign
Service staff) on March I, 1955. Such persons must, in addition,
have completed either 3 or 4 years of service (depending upon their
age) in an appropriate position of responsibility before they may be
apiiointed as Foreign Service officers.
It is essential under the terms of this section, however, that lateral
ent rants among this group must have been actually or constructively
employed by the Department on March 1, 1955. Departmental offi-
cers, or Foreign Service Reserve or Staff officers serving in the armed
services on that date and who may be accorded restoration rights
under the terms of the Selective Service Act of 1948, as amended,
would, for example, be entitled to seek lateral entry withM the 1,210
figure if otherwise eligible. The same would also be true wit Ii respect,
to officers who rimy on Mardi 1 have been on detail to another Govern-
ment agency or assigned to an educational institution.
it will be noted thin sect ion 517, as amended, will permit the lateral
entry of not more than 40 officers who were not employed in the De-
partment of State on \larch 1, 1955. This figure is designed to take
can, of former experienced Department of State officers with the re-
quired governmental service who may have been transferred to other
Approved For Release 2002/07/23 : CIA-RDP59-00224A000200080001-5
Approved For RW.itmei,2wp.N3A.ccimppgspA224A9M0008000A-5
Government agencies before they could the examined for the Foreign
Service and for a limited number of otker persons with the required
service who may be especially qualified for direct admission to the
Foreign Service.
In this connection it should be noted that existing legislation author-
izes the Secretary of State to continue to employ qualified individuals
as members of the Foreign Service reserve, as distinct from the
Foreign Service officer corps, even though they may not have had
the 3 or 4 years' experience with a governmental agency which is a
prerequisite to admission to the Foreign. Service officer corps.
2. Hardship provisions
Sections 3 and 9 of the pending legislation concern service at foreign
posts involving extraordinarily difficult living conditions the so-
called hardship posts. Section 3 amends section 443 of the Foreign
Service Act to permit the President to prescribe a salary differential
for such posts not to exceed 25 percent of the basic salary of Foreign
Service officers and reserve officers assigned to such posts. Hereto-
fore, Foreign Service officers have been given credit toward retirement
at the rate of 1% years for each year of service at unhealthful posts.
Section 3 read in conjunction with section 9 has the effect of giving
Foreign Service officers serving at unhealthful posts an option as to
whether they wish to take credit for such service either in terms of a
salary differential or in terms of credit toward retirement. Section
853 authorizes the President to designate a list of places found to be
unhealthful. Should conditions at such posts improve, he may, of
course, remove them from such list.
3. Allowances
Sections 10, 11, and 12 of the bill relate to allowances and benefits
for Foreign Service personnel or their dependents. Section 10, which
amends section 901, paragraph 2, of the Foreign Service Act, will
authorize Foreign Service personnel who are assigned to the United
States for a tour of duty to receive an: allowance to enable them to
meet expenses necessary for transfer to home assignment. At the
present time such an allowance is provided only when employees
transfer to new posts in foreign countries, even though transfers to
the United States may be just as costly. This home service transfer
allowance would be paid only to employ efes serving in the United States
between assignments to posts abroad. .
Section 10 of the bill also authorizes the payment of extraordinary
and necessary expenses encountered by Foreign Service personnel in
providing adequate elementary and secondary education for depend-
ents. It is important that A mericans serving abroad in the Foreign
Service be able to provide an education for their children substantially
equivalent to that which children redeive under the public-school
system of the United States. This provision of the bill does not go
beyond the payment of allowances to cover expenses encountered by
Foreign Service personnel in obtaining educational services which
are ordinarily provided without charge by public schools in the United
States. For example, if the only adequate ..kmerican-type school
available in a foreign country to a child of a Foreign Service officer
were one which charges tuition, this provision would authorize the
payment of an allowance to cover the cost of such tuition.
Approved For Release 2002/07/23 : CIA-RDP59-00224A000200080001-5
Apoproved For Release 2002/07/23 : CIA-RDP59-00224A000200080001-5
FOREIGN SERVICE ACT AMENDMENTS OF 1055
? Section 11 authorizes the payment of a travel allowance for one trip
to the United States and return during high school, and another
during college.
Finally, section 12 amends section 943 of existing law so as to include
dependents of Foreign Service employees among those authorized to
receive periodic physical examinations, inoculations, and vaccinations
at Government expense.
4. Selection-out
Section 7 of the pending bill extends selection-out procedures now
found in the Foreign Service Act to class 1 officers who have not here-
tofore been covered by such procedures. It will have the effect of
making it possible for the Service to select out certain officers in class
1 whose performance does not meet an appropriate standard before
they have reached mandatory retirement age.
Amendment of section 634 of the 1946 act limits the amount of
termination pay that can be given to officers of classes 4 and 5 who are
selected out under the provisions of the act.
5. Other provisions
Section 5 of the bill increases from 4 to 5 years the period during
which an individual may serve as a Foreign Service Reserve officer.
It has been found that 4 years' service is inconvenient for adminis-
trative purposes and inadequate to enable the Government to derive
the optimum benefit from the service of Reserve officers.
Section 6 will authorize the Secretary of State, in special circum-
stances, to permit Foreign Service personnel assigned to home duty
in the Department of State or to duty in another Government agency
to extend the existing 4-year limit on such service for an additional
4 years.
This section also authorizes the Secretary of State to enter into
agreements with the heads of other Government agencies regarding
reimbursement for salaries paid to Foreign Service personnel who may
be on temporary assignment to such other agencies.
Section 8 will permit Foreign. Service officers who have served in
the Armed Forces to obtain credit for such service without contribu-
tion to the Foreign Service retirement system on an equal basis with
civil-service employees under the civil service-retirement system.
This means that there will be limited refunds to those officers who
are covered by the Foreign Service retirement system and have been
required to make special contributions to that system in the past
because they could not receive free credit for periods of active military
service prior to becoming a Foreign Service officer.
COSTS
The Department of Si ate has submitted the following estimates
of the cost of putting the proposed amendment into effect:
Approved For Release 2002/07/23 : CIA-RDP59-00224A000200080001-5
Approved For Release 2002/07/23 ? CIA-RDP59-00224A000200080001-5
FOREIGN SERVICE ACT AMENDMENTS OF 1955 7
Estimated cost
1955
1956
1. Sec. 413. Lateral appointments of Foreign Service officers above the minimum
rate of the class to which appointed
Comment.?The Foreign Service Act o 1946, which provided that appoint
ments to classes 1 to 5 be made at the minimum salaty rate of the class, was
amended by Public Law 759, 83d Cong.. to permit the appointment of 500
officers at rates above the minimum up to Mar 31, 1955.; The estimated cos
o the proposed amendment will be $5,001 or the period Apr. 1 1955 to July
1, 1955, and $75000 for fiscal year 1956.
2. Sec. 443. Payment of salary differentials to Foreign Service fifficees and Foreign
Service Reserve officers
Comment.?The estimated cost of this amendment is lased on a count of
Foreign Service officers and Reserve Corps officers at differential post multi-
plied by the percent differential received by each; namely 286 Foreign Service
officers and 31 Reserve officers. For fiscal 1955 the annual cost is reduced by
76 percent.
3 Sec. 901 (2) (ii). Homo -ervice transfer allowance
Comment.?Assumed average cost is based on an analysis of average, size of
each Foreign Service family, costs of hotel room accommodations in Washing-
ton as determined by Bureau of Labor Statistics, the average intra- and inter-
zone transfer allowance and the assumption that 100 ;rassignments to the
United States will be made during the balance of fiscal 1955 and 100 each year
thereafter.
4. Secs, 901 (2) (iv) and 911 (9). Educational allowances
Comment.?The estimate or fiscal 1955 is related to children of Foreign
Service personnel attending college in the United States and is designed, to
cover the travel expense of approximately 33 trips to and from the field at an
average cost of $1,476 per trip For fiscal 1956, the estlinate covers (1) an
allowance of $310 each for 1,013 children in elementary and secondary grades
residing abroad, (2) travel for 25 percent of the same children to nearest satis
factory school in the country of residence at $100 each. (3) travel for 92 chil-
dren in secondary grades from abroad to the United States and return at an
average cost of $1,476 each, prorated over a 3-year period,i and (4) tray() of 74
children attending college in the United States to post of arents' assignment
and return at an average cost of $1,476 each, prorated over a 4-year period.
5. Sec. 943. Medical examinations of dependents of Foreign Service personnel sta-
tioned abroad
Comment.?The estimate is based on the assumption that average cost of
each examination will be $7, and that 1,000 such examinations would be made
during the balance of fiscal 1955, that 4,000 such examinations would be made
annually thereafter,
$5, 000
$75,000
120. 000 480, 000
10,500 200, 000
50,010
7, 000
442, 000
28, 000
SUMMARY
1965
Sec. 413
$5, 000
Sec. 443
120, 000
Sec. 901 (2) (ii)
50. 000
Secs. 901 (2) (iv) and 911 (9)
50, 000
Sec. 943
7, 000
Total_
232, 000 1,
1956
$75, 000
480, 000
200,000
442, 000
28, 000
225, 000
An additional cost of $67,000 occasioned by section 8 on retirement
credit for military service will result in a total per annum cost of about
$1,290,000.
MORALE IN THE FOREIGN SERVrCE
The committee recognizes that the integration program launched
last year and being given impetus by the pending legislation has
caused certain morale problems in the Department of State, as well
as in the Foreign Service. Its attention has been called to instances
in which promotions in the Foreign Service have lagged behind
promotions in the departmental service with the result that there may
be some inequities in transferring certain departmental officers to
the Foreign Service. It also recognizes that some employees in
Washington do not desire to serve overseas and will choose to remain
in the Department rather than enter the Foreign Service.
Approved For Release 2002/07/23 : CIA-RDP59-00224A000200080001-5
Approved For Release 2002/07/23 : CIA-RDP59-00224A000200080001-5
8 FOREIGN SERVICE ACT AMENDMENTS OF 1955
The committee feels that the responsibilities of the United States
in the field of foreign policy have so expanded in recent: years that it is
essential that the Foreign Service Officer corps be increased in size. It
would have preferred to have seen this expansion trtke place over a
period of years by the admission to the .Foreign Service of applicants in
the lower classifications. This has net been possible for a variety of
reasons. The committee believes that the integration program should
'MOW, ahead rapidly but at the same time must be administered with
careful consideration of special .3itutttions and personnel problems
which will undoubtedly arise.
COMMITTEE RECOM NIENDATIONS
The committee, after a survey of the proposals that the Foreign.
Service officer corps be increased by the lateral entry of officers horn
the Department of State, believes that the pending legislation should.
he approved. It may be necessary to examine in more detail the prob-
lem of lateral entries at a later time. The present bill, however, limits
the number of such entrants to 1,250. This seems to the committee
to be a reasonable figure.
The committee also approves the other amendments to the Foreign
Service Act of 1946 which are covered by this legislation and urges that
the Senate give its early approval to the resolution.
Approved For Release 2002/07/23 : CIA-RDP59-00224A000200080001-5
Approved For Release 2002/07/23 : CIA-RDP59-00224A000200080001-5
APPENDIXES
APPENDIX I
In lieu of publishing committee hearings held on March 22, 1955,
the statement of the principal witness in support of H. R. 4941, Mr.
Loy Henderson, Deputy Under Secretary of State for Administration,
is printed herewith. The full hearings are available at the committee
offices.
STATEMENT OF HON. LOY W. HENDERSON, DEPUTY UNDER SECRETARY OF STATE
FOR ADMINISTRATION, BEFORE THE SENATE -COMMITTEE ON FOREIGN RELATIONS
IN SUPPORT OF AMENDMENTS TO THE FOREIGN SERVICE ACT OF 1946
Mr. Chairman, I appreciate the opportunity to appear before this committee
in support of legislative improvements in the Foreign Service Act of 1946. As
you are aware, the Committee on Foreign Affairs of the House of Representatives
recently completed hearings on certain amendments to the act of 1946 requested
by the Secretary of State, and has reported out H. R. 4941. This measure differs
in some respects from the amendments propOsed by the Department. However,
in basic purpose and concept they are the same, namely, to improve and strengthen
the Foreign Service in order that it may serve as a more effective instrument for
the conduct of our foreign relations.
The committee will recall that Mr. Charles E. Saltzman, then Under Secretary
of State for Administration, appeared before this committee last July. At that
time he discussed the steps the Secretary of State Was taking to improve and
strengthen our Foreign Service, based on recommendations made to the Secretary
last May by his Public Committee on Personnel. Consequently, I shall avoid
undue repetition of that presentation.
As you are aware, profound changes have occurred over the past decade in the
number and complexity of international problems with which our Government
must cope. The manner in which we in the State Department and the Foreign
Service assist in finding solutions to these problems, arid the character and quality
of the men and women who are concerned with their solution, is bound to have
a deep effect upon the future history of our country.
The personnel of the Department of State and the Foreign Service, in my
opinion, have in general acquitted theinsay es in a creditable manner. Steps
have been taken during recent years to improve the management and administra-
tion of the Department and the Foreign Service. However, we have been handi-
capped by certain deficiencies in organization, legislative authorization, and per-
sonnel. Considerable progress has been made over the past 0 months in putting
into effect improvements suggested by the Secretary's Public Committee on
Personnel, within existing legislative authority and budget ceilings. However,
much remains to be done.
It seems to me that without further delay, additional measures, especially neces-
sary legislation, should be taken to enable the Department to overcome present
deficiencies. I hope that, with the cooperation of the Congress, we shall be able
within the next few years to achieve a much stronger and more broadly based
professional Service manned by highly trained and capable personnel prepared to
serve wherever and whenever in the opinion of their Government they can be the
most useful. In spite of certain shortcomings, the Foreign Service, in my opinion,
is even now one of the best in the world arid pne of which we can be justly proud.
I do not believe that it is possible to find anywhere a more devoted, loyal, and able
group of men and women than those who are at present in the Department of
State and its Foreign Service.
Before taking up the matter of legislation, I would like to touch briefly on the
four principal points of the Secretary's personnel program. The first and most
9
S. Rept. 127, 84-1--2
Approved For Release 2002/07/23 : CIA-RDP59-00224A000200080001-5
Approved For Release 2002/07/23 : CIA-RDP59-00224A000200080001-5
10 FOREIGN SERVICE ACT AMENDMENTS OF 1P55
fundamental is to build up the Foreign Service Officer Corps to include, in addi-
tion to the present Foreign Service officers, those civil-service officers in the
Department and its Foreign Service Reserve and staff who are engaged in essen-
tially the same kind of work. This process, which we refer to as the "integration
program," was launched last August. When completed it will make available to
the Secretary a substantially larger corps of career officers each of whom is pre-
pared to serve anywhere as the needs of the Service might require. Al the time
the program was started, approximately 30 percent of the officers under the
Secretary's jurisdiction were members of the civil service stationed in Washington
and not subject:. to transfer abroad. Integration is making many of these o:fficers
and the special skills they possess available for service both at home and abroad.
At the same time, integration is making it possible for a larger number of Foreign
Service officers to serve in the United States. 1 am convinced that in the years
to None the Department cf State and its Foreign Service will be more effective
tit the conduct of our foreign relations if most of the officer 'terse-nowt shall have
had experience both at home and abroad. The integration preeerarn, I should
point, out, does not incre,;ise the number of perSOTIS on our payroll. It merely
involves the transfer of properly qualified civil service and Foreign Service
Reserve and staff officers to the Foreign Service Officer Corps.
A second major need relates to the recruitment of able young men and women
into the lower grades of the Service. Based on iny years of experience, I a m con-
vinced that if the 'Foreign Service is to attract and hold good people, it must be
able to offer them a genuine career. Tins means that once the preeent integratioli
program is completed, entry into the Foreign Serviee Officer Corps should be, in
our opinion, primarily through open competitive examination for class FSO-6
which is 1-he junior or entrance level to the corps. To this end, the Department is
undertaking what is perhat es the most intensive recruitment eampitig,n in its his-
tory. Our emphasis upon recruitment does not mean, however, tied we intend to
lower the standards for entry into the Foreign Service.
A third fundamental need is to expand and improve the training of our per-
sonnel. The Foreign Service Institute is extending its facilities and hroadening
its training programs. Inereased funds authorized by Congress last year have
been alost, helpful in this regard. Much In ore remains, hoWever, to be done in
this field.
A court h basic need is Inc provide inore favorable conditions for our personnel
servitig abroad. Most of those who choose the Fetreign Service as a lifetime career
elo Sc' because of a devotion to pi blic setrvice. Their motive is not self-enriclumait.
;Despite improvements provided by the Foreign Service Act of 1946, most of our
personiutl are still beset by real financial worries: how to :find the means to give
their children an adequate American-type education, how to assure their families
prosier medical attention when serving at distaat and disease-rhieten posts, It
seems to me that it would be in the public iiderest to relieve these; people, to an
extent at least, of some of these -finaneial burdens.
I would like at this point to discuss the provisions contained in II. IL 4941 as
reported out by the House l'ionemittee on Foreign Affairs. These amend:it:milts
are somewhat different frenn those set forth in the letter amid c the Secretary of
State addressed to the Vice Prasident, and the Speaker of the Ilmise of Representa-
tives on January 25, 1955. Nevertheless, in our opinion, they would accomplish
the same general purpose.
Section 2 of IL R. 49.11 amends section 413 c the present law by authorizing
the appointment of Foreign Service officers at salary steps above the minimum
salary rate for each class. The act of 1946 requires that appointments to classes
1 through 5, inclusive, be made only at the minimum salary rate of the class to
which a,ppointed. This provision is identical to the Department's proposed
anuendment.
As the cotarn Mee is att are, Public Law 759 of the 83d Congress, effective August
-
31, 1954, amended the Foreign Ser-t ice Act: of 1946 to permit not more than 500
persons to be appointed to tlasses FSO-1 through 150 5 at. other I inn the mini-
mum salary rate until 'March 31, 1955, from the classified civil seawiete or the
Foreign Service reserve or Fc reign Service staff. This temporary authorization
has enabled the Department to move forward on the integration program. Phe
committee might Inc interested to know that by IMareh 18, 1955, 572 offMers have
I een cairtified by the :Board of :It,xaitiiners for the Foreign Service for am:tomtit:tent
as Foreign Service officers under the present integration program; 351of. these
have been cfim
onred by th e Senate an n d a _additional 219 en nomi have benated
by t1 c' President. (If the 572 candidates, 411 have been apprdved for appointment
abet e. the otiniee men rate for classes 1 thr(tugh 5 in accordance with Pei hlie Law 759.
Approved For Release 2002/07/23 : CIA-RDP59-00224A000200080001-5
Approved For Release 2002/07/23 : CIA-RDP59-00224A000200080001-5
FOREIGN SERVICE ACT AMENDMENTS OF 1955 11
Another 41 candidates who had been approved for lateral appointment prior to
the inauguration of to present integration program also have been appointed
pursuant to that act.
Since Public Law 759 expires on March 31, 195_5, early approval of the requested
authority to continue to make lateral appointments above the minimum rate is
essential if the integration program is not to come to a halt. I believe it would
be extremely detrimental to the efficient administration of the Department as
well as to the morale of our personnel if the program should be interrupted at
this point.
The proposed revision of section 413 of the Foreign Service Act of 1946, unlike
Public Law 759, does not contain any limitation on the number of appointments
that might be made above the minimum salary rate; neither does it impose a time
limitation nor contain any reference to the categories or plasses of personnel who
may be appointed. Section 4 of the House bill, which I shall discuss in a moment,
does, however, place a limitation on the number of persons who can enter the
Foreign Service officer corps in classes 1 to 5.
Section 3 of H. R. 4941 amends section 413 ofilie present law to make Foreign
Service officers and reserve officers eligible to receive additional compensation not
to exceed 25 percent of basic salary while assigned to hardship posts; namely,
posts involving extraordinarily difficult living conditions, excessive physical hard.
ship, or notably unhealthful conditions.
Such additional compensation is now paid to Foreign Service staff personnel
and to civilian employees of other Government agencies who are stationed abroad.
This provision of H. R. 4911 is identical to Ho Department's proposed amend-
m.ent of the present law. E should add that Foreign Service officers at present
receive extra credit toward retirement for service at unhealthful posts, namely,
11/-i years for each year of such service. Unhealthful posts are included in the
hardship post list. This provision contemplates that a:Foreign Service officer
may choose between receiving the extra credit toward retirement WM.C11 assigned
to an unhealthful post or receiving a salary differential 1 le cannot receive both
for the same period of service.
Section 4 of II. R. 1941 amends section 517 of the present law in four principal
respects. Section 517 relates to the examination and appointment of persons as
Foreign Service officers in classes 1 through 5.
1. The first change relates to the type or types of examinations to be given
candidates for such appointment. Under the present law a candidate may not
be so appointed unless, and I quote' "he has passed such -written, oral, physical,
and other examinations as the Board of Examiners for the Foreign Service may
prescribe to determine his fitness and aptitude for the Service"?end quotation..
The Department's proposed amendment would have merely deleted reference to
the various types of examinations. Its purpose.was to remove any doubt that
the Board of Examiners had discretion to determine the type or types of examina-
tions that should be given. H. It. 4911 requires that the Board prescribe "com-
prehensive mental and physical examinations." In explaining this language,
House Report No. 229, accompanying H. R. 4911, states that, and I quote, "the
examination will be a 'comprehensive mental' one. It may be written, or oral,
or both. The committee .is not specifying the fOrm or cOntent of the examina-
tion",--end quotation.
2. A second change in the present law contained both in II. R. 4941 and in the
Department's proposed amendment, eliminates the requirement that the qualify-
ing period of service for lateral appointment be performed "immediately" prior to
appointment.
3. A third change in the present law contained both in the Department's
amendment and in H. R. 4941 is to open eligibility for lateral appointment to
persons who have completed the required period of iservice in a responsible position
in any Government agency or agencies rather than restricting such appointments
to personnel who have acquired such service exclusively in the Department of
State, or in the Foreign Service reserve or staff. AS I have already stated, it is our
firm intention to rely primarily on outside recruitment at class FSO-6 once the
integration program is completed. However, from time to time, in our opinion,
the national interest will be served if the Department is permitted to draw into
the career corps a limited number of persons with prior service in other agencies
of the Government.
4. A fourth change contained in H. R. 4941 but not included in the Depart-
ment's amendments is that the House bill limits the number of lateral entry
appointments to 1,250, until otherwise provided by act of Congress. The purpose
of this limitation as explained in the report is to assure that the amendment
Approved For Release 2002/07/23 : CIA-RDP59-00224A000200080001-5
Approved For Release 2002/07/23 : CIA-RDP59-00224A000200080001-5
12 FOREIGN SLRVICE ACT AMENDMENTS OF 1 955
permitting lateral entry, and I quote, "will not lead to an excessive number ol7
lateral entries and to enable the Congress to have another look at the program."
The House bill also provides that not more than 40 of the 1,250 lateral entrants
may be qualified persons who were not employed on March 1, 1955, in the Depart-
ment, including its Foreign Service reserve and Foreign Service staff, and who
have not also served in a position of responsibility hi the Department, or the Serv-
ice, or both, for the required period prior to appointment.
The 1,250 lateral entrants authorized by the House bill are in addition to those
who will have been appointed under Public Law 750. Under such authorization
the Department would be able to complete the integration program as well as
to bring in a small number of outstanding persons from various Government
agencies. It should be pointed out that one the 1,250 quota is exhausted, the
effect of the House bill is to render inoperative section 517 of the Foreign Service
Act until the Congress takes further action. The Department will undoubtedly
come in at a later date and ask for an extension of lateral entry authority.
Members of this committee will recall that Public Law 759 of last year contains
a provision that was added on the Senate floor limiting the application of the
provisions of that law to persons from, and I quote, "the classified civil service
or the Foreign Service reserve or Foreign Service staff" end quotation. 11. R.
4941 does not contain such a limitation. In my opinion it would be most unwise
for such a limitation to be put on this bill. .1 considerable number of competent
departmental officers with many years of departmental experience are presently
serving in so-called excepted positions. Because their positions are hi the ex-
cepted category, these officers cannot be considered as being in the classified
civil service despite the fact that they have personal civil service status. .1
number of other departmental officers with excellent records do not, for a variety
of reasons, possess competitive il-service status. I think -it is only fair that
these officers be given an opportunity to qualify for lateral entry.
The remaining provisions of the House bill may be briefly sunimarized as follows:
1. Section 5, which n mom's section 522 of the present law, extends the period a
I'oreign Service Reserve officer may serve from 4 years to 5 years, as requested in
the Department's amendment. The Department's proposal that the Secretary
be permitted further to extend this period of service by 2 additional years is
dropped in the House bill.
2. Section 6 amends section 571 of the existing law to permit the Secretary,
under special circumstances, to extend the 4-year period that at officer or employee
may be assigned to the Department (or another agency) by not more than 4
additional years. The Department's proposed amendment left the matter of
such an extension to the Secretary's discretion.
Both this section of H. R. 4941 and the Department's amendment modify the
existing law to remove the requirement that an officer, once assigned for duty to
the Department or to another Government agency, may not he reassigned lot such
duty until the expiration of a period of time equal to his precedl lie tour of duty of a
2-year period, whichever is the shorter. This revision will enable the Secretary to
make the most effective use of his personnel to meet, special weds. In practice
such reassignments will he made only when there is it sound justification for the
action.
Both this section of the House bill and the Department's amendment include a
new provision that would permit the Department to be reimbursed for all or a
part of the salary of an ()Meer assigned or detailed to another Ox erninent agency.
3. Section 7. of H. IL 4041 is identical to the Department's proposed amend-
ments of sections 633 and 634 of the existing law. The new provisions extend the
selection-out system, which at present applies up to and including class }'SO-2,
to class FSO-1.
Another change is to Clarify the basis for administering selection-out by stipulat-
ing that an officer may be retired from the Service either for failure to be promoted
after having served for a maximum period of time in class or for failure to maintain
an adequate standard of performance.
Finally, this section places a limit of not more than 1 year's pay on the amount
of severance gratuities presently authorized for Foreign Service officers in classes
4 and 5 who are selected-out.
4. The provisions of section 8 of H. R. 4941 were not included in the Depart-
ment's proposed amendinents.. The Department, however, would welcome this
amendment,. which modifies the Foreign Service retirement and disability system
to grant a person free credit toward retirement for periods of active military serv-
ice preceding his appointment as a Foreign Service officer. Such credit has been
given under the civil-service retirement system since April 1, 1948. At present,
an offices entering the ,Foreign Service who has received such free credit under
Approved Fo r Release 2002/07/23 : CIA-RDP59-00224A000200080001-5
Approved For Release 2002/07/23 ;AIANIFM-RWAft0p0A0008000f135
FOREIGN SERVICE
civil service must pay for his military service. The House bill removes this in-
equity and further provides for a refund of contributions that have been made
since April 1, 1948.
5. Section 9 of H. R. 4941 amends section 853 of the present law by providing
,that no extra credit shall be given toward retirement for service at an unhealthful
post if an officer receives a salary differential for such service. You will recall
that section 3 of H. R. 4941 authorizes tins payment of such differentials for
service at hardship posts. Tins provision on retirement credit does not, of
course, apply retroactively. The Department's amendment differs somewhat
from the House bill in that it would not permit an officer to choose as between
extra retirement credit or the salary differential. In our opinion, the House
version is preferable.
6. Sections 10 and 11 of H. R. 4941 amend sections 901 (2) and 911 of the
'present law in two important respects. The House bill authorizes a home service
-transfer allowance to be paid to personnel of the Service when they are assigned
from a post abroad to the continental United States between foreign assignments.
Such a provision will assist officers in meeting the out-of-pocket expenses that
result from the mobile nature of their employment.
The second provision, and one which we consider to he most important and fully
justified, is authorization to defray a part of the expenses incurred by our people
in educating their children while they are stationed abroad. I will not go into the
particulars of this provision now. I wish again to emphasize that the financial
and morale problems that result from the absence of such a provision are real and
acute. The House version differs from the Department's amendment as regards
legislative language, but the essential purpose of each is the same.
7. Section 12 of the House bill is identical to the Department's amendment to
section 943 of the present law to provide for administering physical examinations
and inoculations and vaccinations to dependents. This provision is not only
humanitarian, but will also protect the Government.
Although there are some differences between the amendments requested by the
Department and those contained in TT. R. 4941, the two measures are alike as to
purpose and concept. Accordingly, the Department endorses the provisions of
the House bill.
Mr. Chairman, this concludes my statement. Members of my staff and I are
at your disposal.
APPENDIX II
CHANGES IN EXISTING LAW
In compliance with subsection (4) of rule XXIX of the Standing
Rules of the Senate, changes in existing law made by the bill are
shown as follows (existing law proposed to be omitted is enclosed in
black brackets, new matter is printed in italics, and existing law in
which no change is proposed is shown_ in roman):
FOREIGN SERVICE ACT OF 1946
SALARIES AT wmcn FOREIGN SERVICE OFFICERS MAY BE APPOINTED
FEc. 413. (a) A person appointed as a Foreign Service officer of class 6 shall
receive salary at that one of the rates provided for that class by section 412 which
the Secretary shall, taking into consideration his age, qUalifications, and experience,
determine to he appropriate for him to receive.
(b) A person appointed as a Foreign Service offioer of classes 1 through 5,
inclusive, shall receive salary at the minimum rate' provided for the class to which
he has been appointed, except that until NI arch 31,1955, not more than five hun-
dred persons may be appointed from the classified civil service or the Foreign
Service reserve or Foreign Service staff at other than the minimum rate.]
SEC. 413. A person appointed as a Foreign Service officer shall receive basic
salary at one of the rates of the class to which he is appointed which the Secretary shall,
taking into consideration his age, qualifications, and, experience, determine to be appro-
priate for him to receive.
Approved For Release 2002/07/23: CIA-RDP59-00224A000200080001-5
Approved For Release 2002/07/23 : CIA-RDP59-00224A000200080001-5
FOREIGN SERVICE ACT AMENDMENTS OF 1955
OTHER OFFICERS AND EMPLOYEES
SEC. 432. (a) * * *
(c) A Foreign Service officer promoted to a higher class shall receive salary at
the rate prescribed in section 412 for the class to which he is promoted from the
effective date of his appointment to such clzwi. A Foreign Service officer pro-
moted to a higher class during a recess of the Senate shall receive salary at the
rate prescribed for the class to which he is promoted from the effective date of his
appointment to such class until the end of the next session. If the Senate should
reject or fail to confirm the promotion of such an officer during the session follow-
ing the date of his promotion, the Foreign Service officer shall, unless he has be-
come liable to separation in accordance with the provisions of section 633 [or 634],
be automatically reinstated in the class from which he was promoted and receive
the salary he was receiving prior to his promotion, such reinstatement to be effec-
tive, in the event of rejection of the nomination, from the date of rejection; and
in the event of the failure of the Senate to act OD the nomination during the session
following a promotion, from the termination of that session.
ADMINISTRATIVE EST A STASH M ENT OF SALARY DIFFERENT! ALS
[SEC. 443. Whenever the President shall find and declare that the rates of
salary provided for Foreign Service staff officers and employees in section 415
are inadequate for any positions allocated to any particular class or subclass, he
may, under such regulations as he may prescribe, establish necessary schedules
of differentials in the rates of salary prescribed for such classes or subclasses, but
the differential in salary of a person holding any such position shall not exceed
25 per centum of the salary he would otherwise receive. Such differentials shall
be granted only with respect to positions at posts at which extraordinarily diffi-
cult living conditions or excessive physical hardship prevail or at which notably
unhealthful conditions exist. The Secretary shall prepare and maintain a list
of such posts.]
Stec, 442 The President may, under such regulations as he may prescribe, estab-
lish 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 shall prepare and maintain a list
of such posts.
ADMISSION TO CLASSES 1, 2, 5, 4, AND 6 WITHOUT PRIOR SERVICE IN CLASS 6
Sac. 517. A person who has not served in class 6 shall not be eligible for ap-
pointment as a Foreign Service officer of classes 1 to 5, inclusive, unless he has
passed [such written, oral, physical, and other examinations as the] comprehen-
sive mental and physical examinations prescribed by the Board of Examiners for the
Foreign Service may prescribe] to determine his fitness and aptitude for the
work of the Service; demonstrated his loyalty to the?Government of the United
States and his attachment to the principles of the Constitution; and rendered at
least four years of actual service [immediately] prior to appointment in a posi-
tion of responsibility in the [Service or in the Department or both] service of a
Crovernment agency, or agencies, except that, if he has reached the age of thirty-one
years, the requirement as to service may be reduced to three years. After the
date of enactment of the Foreign Service Act Amendments of 1955 and until other-
wise provided by Act of Congress, not more than one thousand two hundred and fifty
persons who have not served in class a may be appointed to classes 1 to 5, inclusive;
of such persons, not more than forty may be appointed who were not employed on
March 1, 195,5, in the Department, including its Foreign Service Reserve and For-
eign Service Staff personnel, and who have not also served in a position of responsi-
bility in the Department, or the Service, or both, for the required period prior to ap-
pointment.
APPOINTMENTS AND ASSIGNMENTS TO THE RESERVE
SEC 522. Whenever the services of a person who is a citizen of the United States
and who has been such for at least five years are required by the Service, the
Secretary may---
Approved For Release 2002/07/23 : CIA-RDP59-00224A000200080001-5
Approved For Ryolks&20cIA9N3A:cclii-INWII:q2641A999?000800n-5
(1) appoint as a Reserve officer for nonconsecutive periods of not more
than [four] five years each, a person not in the employ of the Government
whom the Board of the Foreign Service shall deem to have outstanding
qualifications [of a specialized character];_ and
(2) assign as a Reserve officer for nonconsecutive periods of not more than
[four] five years each a person regularly employed in any Government
agency, subject, in the case of an employee of a Government agency, other
than the Department of State, to the consent of the head of the agency
concerned.
ASSIGNMENTS TO ANY GOVERNMENT AGENCY
[SEc. 571. (a) Any officer or employee of the Service may, in the discretion of
the Director General, be assigned or detailed for duty in any Government agency,
such an assignment or combination of assignments to be for a period of not more
than four years. He may not again be assigned for duty in a Government agency
until the expiration of a period of time equal .to his preceding tour of duty on
such assignment or until the expiration of two years, whichever is the shorter.]
SEC. 571. (a) Any officer or employee of the Service may, in the discretion of the
Secretary, be assigned or detailed for duty in any Government agency, such an assign-
ment or combination of assignments to be for a period of not more than four years,
except that under special circumstances the Secretary may extend this four-year period
for not more than four additional years.
(b) A Foreign Service officer may be appointed as Director General, notwith-
standing the provisions of the last sentence of paragraph (a) of this section, but
any such officer may not serve longer than four years in such position or positions
and upon the completion of such service may not again be assigned to a position
in the Department until the expiration of a period of time equal to his tour of
duty as Director General or until the expiration of two years, whichever is shorter.
(c) If a Foreign Service officer shall be appointed by the President, by and with
the advice and consent of the Senate, to a position in the Department, the period
of his service in such capacity shall be construed as constituting an assignment for
duty in the Department within the meaning of paragraph (a) of this section and
such person shall not, by virtue of the acceptance of such an assignment, lose his
status as a Foreign Service officer. Service in such a position shall not, however,
be subject to the limitations concerning the duration of an assignment or concern-
ing reassignment contained in that paragraph.
(d) If the basic minimum salary of the position to which an officer or employee
of the Service is assigned pursuant to the terms of this section is higher than the
salary such officer or employee is entitled to receive as an officer or employee of
the Service, such officer or employee shall, during the period such difference in
salary exists, receive the salary of the position in which he is serving in lieu of his
salary as an officer or employee of the Service.- Any salary paid under the pro-
visions of this section shall be paid from appropriations made available for the
payment of salaries of officers and employees of the Service and shall be the salary
on the basis of which computations and payments shall be made in accordance
with the provisions of title VIII.
(e) The salary of an officer or employee assigned purs,lant to the terms of this
section shall be paid from appropriations made available for the payment of salaries
of officers and employees of the Service. Such appropriations may be reimbursed,
however, when the Secretary enters into reimbursement agreements with heads of
Government agencies for all or any part of the salaries of officers or employees assigned
to such agencies and payment is received pursuant thereto, or when an officer or
employee of the Service is assigned to a position the salary of which is payable from
other funds available to the Department.
[FOREIGN SERVICE OFFICERS IN, CLASSES 2 AND 3
(SEC. 633. The Secretary shall prescribe the maximum period during which
Foreign Service officers in classes 2 or 3 shall.be permitted to remain in such
classes without promotion. Any officer who does not receive a promotion to a
higher class within that period shall be retired from the Service and receive retire-
ment benefits in accordance with the provisions,of section 821.
Approved For Release 2002/07/23 : CIA-RDP59-00224A000200080001-5
Approved For Release 2002/07/23: CIA-RDP59-00224A000200080001-5
FOREIGN SERVICE ACT AMENDMENTS OF 1955
EFOREION SERVICE; OFFICERS [N CLASSES 4 AND 6
[Six!. 634. (a) The Secretary shall prescribe the inaximunt period during
uliich Foreign Service officers in classes 4 or 5 shall be permitted to remain in
such classes without prof-notion. Any officer who does not receive a promotion
to a higher class within that period shall he retired from the Scl vice and receive
benefits as follows:
[(1) One-twelfth of a year's salary at his then current salary rate for each
year of service and proportionately for a ft action of a year, payable without
interest, in three equal it on the 1st day of January following the
officer's retirement and on t he two anniversaries of this date immeiliately following;
and
[(2) A refund of the emu ributions made to the Foreign Service Retirement and
Disability Fund, with interest thereon at 4 ;ter eentum, compounded ailnually,
eN vela that in lieu of such refund such officer may elect to receive ret 11100'
benefits on reaching the age of sixty-two, in accordance with he provisions of
section 821. In the event that an officer who was separated from class 4 and Who
has elected to receive ret Iron benefits dies itefore reaching the age of sixty-two,
his death shall be considered a death in service within the meanhig of section 832.
In the event, that an officer who was separated from class 5 and who has elected
to receive retirement benefits dies before reaching the age of sixty-two, the total
amount of his contributions made to the Foreirn Service Retirement and Disability
Fund, with interest thereon at 4 per centuin, compounded ar mially, shall be
paid in accordance with the provisions of section 841.
[(b) Notwithstanding the provisions of section 3477 of the Revised Statutes
(31 IT. S. C. 203) or the provisious of any 0th i r law, a Foreign u'vice officer who
is retired in accordance with the provisions of this section shall have the right
to assign to any person or corporation the whole or any part of the benefits
receivable by him pursuant, to paragraph (a) (I) of this section.. Any such
assignment shall be on a form approved by the Secretary of tin- Treasury and a
copy thereof shall be deposited with the Secretary of the Treasury by the officer
executing, the assignment.]
SELECT! OE-0 UT
SEC. 633. (a) The Secretary shaft prescribe regulations concerning.?
(1) the maximum period during which any Foreign Serino officer below the
class of career minister shall Oe permitted to remain in class ltithout promotion;
and
(2) the standard of performance which any such officer must maintain to
remain in the Service.
(b) Any Foreign Service officer below the class of career minister who does not
receive a promotion to a higher class within (hi specified period (sr who ,fails to meet
the standard of performance required of officers of his class shall to retired from the
Service and receive benefits in accordance with the provisions of section 634.
SELECTION-OUT BENEFITS
SEC. 634 (a) Any Foreign Service officer in classes I, 2, or 3 irho is retired from
the Service in accordance with the provisions if section 633 shalt receive retirement
benefits in accordance with the provisions of .section 821.
(b) Any Foreign Service officer in. classes 4 Or 5 who is retired f rem the Service in
accordance with the provisions of section 633 shall receive- -
(1) one-twelfth of a year's salary at his then current salary rate for each year
of service and proportion.otely for a fraction of a year, but not exceeding a total,
of one year's salary at his then current salary rate, payable lvtliout interest, in,
three equal installments on the let day of January following i he officer's retire-
ment arid on the two anniversaries of this dale immediately following; and
(2) a refund of the contributions made to the Foreign Service Retirement and
Disability Fund, with interest thereon at 4 per centurn, compounded annually,
except that in lieu of such refund such officer may elect to receive retirement benefits
on reaching the age of sixt II-11:m, in accordance with the provisions of section S21.
/n the event that an officer who was separated ,from class 4 and who has elcettil to
receive retirement benefits before reaching the age of sixty-two, his death shall
be considered a death in service within the meaning of section. 832. /n the event
that an officer who was separated from class 5 and who hos elected to receive
retirement benefits dies before reaching the oge f sixty-two, the total amount of his
contributions made to the Foreign Service Retirement and Disability Fund, with
interest thereon at 4 per CC hart , compounded annually, shall be .0aid in accordance
with the provisions of section 841.
Approved For Release 2002/07/23 : CIA-RDP59-00224A000200080001-5
Approved For Release 2002/07/23 : CIA-RDP59-00224A000200080111-5
FOREIGN SERVICE ACT AM LI
ENMENTS OF 1955
(c) Notwithstanding the provisions of section 3477 of the Revised Statutes, as
amended (31 U. S. C. 203), or the provisions of any other law, a Foreign Service officer
who is retired in acerdance with the provisions of section 633 shall have the right
to assign to any person or corporation the whole or any part of the benefits receivable
by him pursuant to paragraph (b) (1) of this section. Any such assignment shall
be on a form approved by the Secretary of the Treasury and a copy thereof shall be
deposited with the Secretary of the Treasury by the officer executing the assignment.
*
ANNUITANTS
SEC. 804. Annuitants shall be persons who are receiving annuities from the
Fund on the effective date of this Act, persons who shall become entitled to
receive annuities in accordance with the provisions of sections 519, 631, 632,
[6333 634, 636, 637, 831, 832, and 833, and all widows and beneficiaries of
participants who are entitled to receive annuities in accordance with the terms
of this title.
PRIOR SERVICE CREDIT
SEC. 852. (a) A participant may, subject ta the provisions of this section,
include in his period of service?
(1) service performed as a civilian officer:or employee of the Government
prior to becoming a participant; and
(2) active military or naval service in the Army, Navy, Marine Corps,
Air Force, or Coast Guard of the United States.
(b) A person may obtain credit for prior service by making a special contribu-
tion to the Fund equal to 5 per centum of his annual salary for each year of service
for which credit is sought subsequent to July b, 1924, with interest thereon to
date of payment compounded annually at 4 per centum, except that no special
contributions shall be required for periods of active military or naval service in the
Army, Navy, Marine Corps, Air Force, or Coast _Guard of the United States prior
to becoming a participant. Any such participant may, under such conditions as
may be determined in each instance by the Secretary, pay such special contribu-
tions in installments during the continuance of his service-.
EXTRA SERVICE CREDIT FOR SERVICE AT UNHEALTHFUL POSTS
SEC. 853. The President may from time to time establish a list of places which
by reason of climatic or other extreme condition0 are to be classed as unhealthful
posts, and each year of duty subsequent to January 1, 1900, at such posts inclusive
of regular leaves of absence, of participants thereafter retired, shall be counted
as one year and a half, and so on in like proportion in reckoning the length of
service for the purpose of retirement, fractional:months being considered as full
months in computing such [service.] service, but no such -extra credit for service at
such unhealthful posts shall be credited to any participant who shall have been paid
a salary differential in accordance with section 443, as amended, for such service
performed subsequent to the date of enactment of the Foreign Service Act Amendments
of 1955. [The President may at any time cancel the designation of any places
as unhealthful without affecting any credit which has accrued for service at such
posts prior to the date of the cancellation.]
ATTACHMENT OF MONEYS
SEC. 864. None of the moneys mentioned in this title shall be assignable either
in law or equity, or be subject to execution, levy, attachment, garnishment, or
other legal process, except as provided in section 634 [(b)] (c).
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 1705 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? -
Approved For Release 2002/07/23 : CIA-RDP59-00224A000200080001-5
Approved For Release 2002/07/23 : CIA-RDP59-00224A000200080001-5
18 FOREIGN SERVICE ACT AMENDMENTS OF 1955
(1) allowances wherever Government owned or rented quarters are not
available, for living quarters, heat, light, fuel, gas, and electricity, including
allowances for the cost of lodging at temporary quarters, incurred by an
officer or employee of the Service and the members of his family upon first
arrival at a new post, for a period not in excess of three months after such
first arrival or until the occupation of residence quarters, whichever period
shall be shorter, up to but not in excess of the aggregate 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--
(1) that the cost of living at a post abroad is proportionately so high
than an allonanee 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 otherwise com-
pensated for, are incurred by an officer or employee of the Service incident
to the establishment of his residence at [his post of assignment] any
post of assignment abroad or at a post of assignment in the continental
United Stales 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 dangerous, notably unhealth-
ful, or excessively adverse living conditions at his post abroad or for
the convenience of the Government to meet the additional expense of
maintaining his wife and minor children elsewhere than in the country
of his assignment;
(iv) that extraordinary and necessary expenses, not itherwise compen-
sated for, must be incurred by an officer or employee of the Service, by reason
of his service abroad, is providing for adequate elementary and secondary
education for his dependents; allowances under this subparagraph for any
post shall not exceed the cost of cbtaining such educational services as are
ordinarily provided without charge by the public schools of the United States
plus, in those cases where adequate sehoos are not available at the post,
board and room, and periodic transportation between the post and the
nearest locality where adequate schools are available; if any such officer or
employee employs a less expensive method of providing such education, any
allowance paid to him shall be reduced accordingly; no allowance shall be
paid under this subparagraph for a dependent for whom a trot el allowance
has been paid under section 911 (9);
(3) allowances in order to provide for the proper representation of the
United States by officers or employees of the Service.
GE NERAL PROVISIONS
SEC. 911. The Secretary may, under such regulations as he shall prescribe,
pay?
(1) the travel expenses of officers and employees of the Service, including
expenses incurred while traveling pursuant to orders issued by the Secretary
in accordance with the provisions of section 933 with regard to the granting
of home leave;
(2) the travel expenses of the members of the family of an officer or
employee of the Service when proceeding to or returning from his post of
duty; accompanying him on authorized home leave; or otherwise traveling
in accordance with authority granted pursuant to the terms of this or any
other Act;
(3) the cost of transporting the furniture and household and personal
effects of an officer or employee of the Service to his successive posts of duty
and, on the termination of his services, to the place where he will reside:
(4) the cost of storing the furniture and household and personal effects
of an officer or employee of the Service who is absent under orders from his
usual post of duty, or who is assigned to a post to which, because of emergency
conditions, he cannot take or at which he is unable to use, his furniture and
household and personal effects;
(5) the cost of storing the furniture and household and personal effects of
an officer or employee of the Service on first arrival at a post for a period
not in excess of three months after such first arrival at such post or until
the establishment of residence quarters whichever shall be shorter:
(6) the travel expenses of the members of the family and the cost of trans-
porting the personal effects and automobile of an officer or employee of the
Approved For Release 2002/07/23 : CIA-RDP59-00224A000200080001-5
Approved For Release 2002/07/23 . CIA-RDP59-002M0002000f6)001-5
FOREIGN SERVICE ACT AMENDMENTb
Service, whenever the travel of such officer or employee is occasioned by
changes in the seat of the government whose capital is his post;
(7) the travel expenses and transportation costs incident to the removal
of the members of the family of an officer or employee of the Service and
his furniture and household and personal effects, including automobiles, from
a post at which, because of the prevalence of disturbed conditions, there is
imminent danger to life and property, and the return of such persons, furni-
ture, and effects to such post upon the cessation of such conditions; or to
such other post as may in the meantime have become the post to which
such officer or employee has been assigned.
(8) the cost of preparing and transporting to their former homes in the
continental United States or to a place not more distant, the remains of an
officer or employee of the Service who is a citizen of the United States and
of the members of his family who may die abroad or while in travel [status.71
status;
(9) the travel expenses incurred by an officer or employee of the Service who
is assigned to a foreign post, in transporting dependents to and from United
States ports of entry designated by the Secretary, to obtain an American second-
ary or college education, not to exceed one trip each way for each dependent for
the purpose of obtaining each type of education.
PHYSICAL EXAMINATIONS AND COSTS OF INOCULATIONS
SEC. 943. The Secretary shall, under such regulations as he may prescribe,
provide for the periodic physical examination of officers and employees of the
Service who are citizens of the United States, and their dependents, including exam-
inations necessary to establish disability or incapacity in accordance with the pro-
visions of section 831, and for the cost of administering inoculations or vaccinations
to such officers or employees, and their dependents.
Approved For Release 2002/07/23: CIA-RDP59-00224A000200080001-5
?
Approved For Release 2002/07/23 : CIA-RDP59-00224A000200080001-5'
1955 CONGRESSIONAL RECORD ? HOUSE
Gwinn
Hale "
Haley
Haneck
Hand
Harden
Hardy Martin
Harris Mason
Harrison, Nebr. Matthews
Harrison, Va. Meader
Harvey Merrow
Hebert Miller, Md.
Herlong Miller, Nebr.
Heselton Miller, N. Y.
Hess Mills
Hiestand Minshall
Hill Moran?
Hillings Morrison
Hinshaw
Hoeven
Hoffman, Ill.
Holmes
Holt
Hope
Horan
Hosmer
Ruddiest=
Ikard
Jackson
James
Jarman PeIly
Jenkins Phillips
Jensen Filcher
Johansen Pillion
Johnson, Calif. Poff
Jonas Prouty
Jones, N. C. Radwan
Judd Rains
Kean Ray
Kearney Reed, Ill.
Kearns Reed, N. Y.
Keating Rees, Kans.
Kilburn Rhodes, Ariz.
Kilday Richards
Kilgore Riehlman
King, Pa. Riley
Knox Rivers
Laird Roberts ?
Landrum Robeson, Va,
Lanham Robsion, Ky.
Lankford Rogers, Fla.
Latham Rogers, Mass.
LeCompte Rutherford
Lipscomb St. George
Long Schenck
Lovre Scherer
McConnell Schwengel
McCulloch Scott
McDonough Scrivner
McGregor Scudder
McMillan. Seely-Brown
McVey Belden
Mack, Wash. Sheehan
Mailliard Short
Shuford
Sieminski
Sikes
Slier
Simpson, Ill.
Simpson, Pa.
Smith, Kans.
Smith, Va.
Smith, Wis,
Springer
Taber
Talle
Mumma Taylor
Murray, Tenn. Teague, Calif.
Nelson Teague, Tex.
Nicholson Thomas
Norbiad Thompson, La.
O'Brien, N. Y. Thompson,
O'Hara, Minn. Mich.
O'Konski Thompson, Tex.
Osmers Thomson, Wyo.
Ostertag Tollefson
Passrnan Tuck
Patterson. 'Utt
Van Pelt
Van Zandt
Velde
Vinson
Vorys
Vursell
Wainright
Walter
Watts
Weaver
Westland
Wharton
Wickersham
Widnall
Wigglesworth
Williams, Miss.
Williams, N. J.
Williams, N. Y.
Willis
Wilson, Calif.
Wilson, Ind.
Winstead
Withrow
Wolcott
Wolverton
Wright
Young
Younger
NOT VOTING-21
Bell Eberharter Reece, Tenn.
Bolton, Henderson Sadlak
Oliver P. Hoffman, Mich. Sheppard
Byrd Krueger Smith, Miss.
Canfield McIntire Yates
Chiperfield Moulder Zelenko
Christopher Norrell
Dawson, Ill. Preston
So the resolution was rejected.
GENERAL LEAVE TO EXTEND
REMARKS
Mr. DOYLE. Mr. Speaker, I ask
unanimous consent that all Members of
the House who desire to do so may have
the privilege of extending their remarks
in the RECORD just before the rollcall
on House Resolution 171.
The SPEAKER. Is there objection to
the request of the gentleman from
California?
There was no objection.
HOUR OF MEETING TOMORROW
Mr. McCORMACK. Mr. _Speaker, I
ask unanimous consent that when the
House adjourns today it adjourn to
meet at 11 o'clock on tomorrow.
The SPEAKER. Is there objection to
the request of the gentleman from
Massachusetts?
Mr. BAILEY. Mr. Speaker. reserving
- the right to object, how long are we
going to interfere with the normal duties
Of standing committees?
Mr. McCORMACK. Mr. Speaker, the
hope is that if we dispose of the legisla-
tive calendar in order for tomorrow, I
shall ask unanimous consent to adjourn
over until Monday. Members are busy
and will have plenty of work to do on
Friday.
Mr. BAILEY. Mr. Speaker, I withdrew
my reservation of objection, but I shall
protest if the practice is continued.
Mr. CELTP.R., Mr. Speaker, reserving
the right to object, may I ask the ma-
jority leader when he intends to take up
the increased penalties bill fOr antitrust
violations?
Mr. McCORMACK. I intend, if pos-
sible, to bring that bill up tomorrow. If
not, I have an understanding with the
gentleman to bring it up next week.
Mr. CELLER. That is correct.
The SPEAKER. Is there objection to
the request of the gentleman from Mas-
sachusetts?
Where was no objection.
/ FOREIGN SERVICE ACT AMEND-
The Clerk announced the followig
pairs:
On this vote:
Mr. Zelenko for, with Mr. McIntire against.
Mr. Eberharter for, with Mr. Chiperfield
against.
Mr. Dawson of Illinois for, with Mr. Reece
of Tennessee against.
Mr. Yates for, with Mr. Norrell against.
Mr. Smith of Mississippi for, with Mr.
Preston against.
Mr. Moulder for, with Mr. Hoffman of
Michigan against.
Mr. Christopher for, with Mr. Sadlak
against.
Until further notice:
Mr. Sheppard with Mr. Oliver P. Bolton,
Mr. Byrd with Mr. Canfield.
Mr. Bell with Mr. Krueger.
Mr. RICHARDS and Mr. DEMPSEY
changed their vote from "yea" to "nay."
Mr. LESINSKI changed his vote from
"nay" to "yea."
The result of the vote was announced
as above recorded.
MENTS OF 1955:
Mr. THIMBLE. Mr. Speaker, by di-
rection of the Committee on Rules, I cuff
up House Resolution 181 and ask for its
immediate consideration.
The Clerk read as follows:
Resolved, That upon the adoption of this
resolution it shall be in order to move that
the House resolve itself into the Committee
of the Whole House on the State of the
Union for the consideration of the bill (H. R.
4941) to amend the Foreign Service Act of
1946, as amended, and for other purposes.
After general debate, which shall be confined
to the bill, and shall continue not to exceed
1 hour, to be equally divided and controlled
by the chairman and ranking minority mem-
ber of the Committee on Foreign Affairs, the
bill shall be read for amendment under the
5-minute rule. At the conclusion of the con-
sideration of the bill for amendment, the
Committee shall rise and report the bill to
the House with such amendments as may
have been adopted, and the previous questit
shall be considered as ordered on the bill
and amendments thereto to final passage
3007$
'without intervening motion, except one mo-
tion to recommit.
Mr. THIMBLE. Mr. Speaker, I yield
30 minutes of my time to the gentle-
man from Ohio [Mr. BROWN], and al
this time I yield myself such time as f.
May consume.
Mr. Speaker, this resolution makes in.
order consideration of the bill (H. L.
4941) to amend the Foreign Service Ace
of 1946, as amended, and for other pue -
poses. The resolution was reported
unanimously by the Committee on Rule,.
It has primarily to do with the integra -
tion of certain categories of those ut
the Foreign Service with the idea in
view of improving the service and there -
by making it more attractive to efficient
personnel My recollection is that aboue
1,250 employees are involved. I know
of no opposition to this rule.
Mr. BROWN of Ohio. Mr. Speaker, I
yield myself such time as I may con -
sume.
Mr. Speaker, as the gentleman from
Arkans House ResolutioiL
181 es in order t consideration of
the ill H. R. 4941, id provides for ,
hour gener te, to be followed by
the rea ing of the bill ander the 5-min--
ute rule in the Committee of the Whole.
This bill has been unanimously reported
by the Committee on Foreign Affairs.
The measure made in order by the:
House resolution would amend the For-
eign Service Act of 1946 and proviche
certain compensation and other privi
leges for Foreign Service officers to meet
that which is now being received by mill -
tary and naval attaches and other rep-.
resentatives of the Federal Governmene
assigned to diplomatic missions abroad.
The Rules Committee went into thi ;
measure rather exhaustively, and heard
considerable testimony following which.
the Committee on Rules unanimously
reported the rule.
Mr. Speaker, I have no further re ?
quests for time on this side.
Mr. TRIMBLE. Mr. Speaker, I move
the previous question.
The previous question was ordered.
The SPEAKER. The question is on
the resolution.
The resolution was agreed to.
Mr. RICHARDS. Mr. Speaker, I move
that the House resolve itself into the
Committee of the Whole House on the
State of the Union for the consideration
of the bill (H R. 4941) to amend the
Foreign Service Act of 1948, as amended,
and for other purposes.
The motion was agreed to.
Accordingly the House resolved itsell
into the Committee of the Whole Houst
on the State of the Upton for the con
sideration of the bill II. H. 4941, with
Mr. FavoLE in the chair.
The Clerk read the title of the bill.
By unanimous consent, the first read-
ing of the bill was dispensed with.
Mr. RICHARDS. Mr. Chairman, 1
yield myself 15 minute;.
Mr. Chairman, this bill to amend the
Foreign Service Act of 1948, as amended._
has been favorably and unanimously re
ported out by the Committee on Foreign
Affairs. Members of that committee
Approved For Release 2002/07/23 : CIA-RDP59-00224A000200080001-5
Approved For Release 2002/07/23: CIA-RDP59-00224A000200080001-5
3006 CONGRESSIONAL RECORD ? HOUSE March 23
have often brought to this House bills
that carry large sums for foreigners.
Today we are presenting a bill that helps
some of our own citizens who serve their
country abroad.
Last fall the gentleman from Ohio
[Mr. Voiezs] and I traveled through the
Far East, south Asia, and the Near East.
We did not visit every place where our
Foreign Service people are stationed.
Those places we visited were usually the
more important centers like the capital
cities. But we soon recognized that liv-
ing and working even in the best of those
places is a far cry from living and work-
ing in this country. We found none of
the fancy living that is sometimes attri-
buted to our people overseas. The For-
ein Service officers are a loyal and de-
voted group of public servants who have
chosen a career that keeps them away
from the United States for most of their
adult life.
I wish more Members of Congress
would travel around the world to some
of the remote places. It gives you an
insight into the problems our people face
in a way that hearings and speeches can-
not portray adequately. Every Ameri-
can owes these men and women a debt of
gratitude.
About a month ago Secretary of State
Dulles was in south Asia and the Far
East. When he returned, he made this
comment about our Foreign Service
people:
I want to pay tribute to the Foreign Service
and other representatives of the United
States in the area I visited. Oftentimes they
work under most difficult physical conditions.
They do so without complaint and with a
great sense of dedication to the service of
our country. They are our first line of de-
fense against an external peril which is per-
haps the greatest our Nation ever faced.
They deserve the respect and thanks of the
American people.
I concur in that tribute.
The Foreign Service Act of 1946 was
passed only after lengthy consideration
by the Committee on Foreign Affairs and
the Congress. It took as its basis the
better features of earlier laws and added
a number of improvements. The princi-
ples of that act are worth noting because
this bill reaffirms them and, in my judg-
ment, strengthens them. They are: A
professional service, disciplined and mo-
bile, serving without political influence,
and adequately compensated.
The Foreign Service is a career service
that a man enters at the bottom and
works his way up. When the Committee
on Foreign Affairs wrote the Foreign
Service Act of 1946 which the Congress
adopted, that principle was stressed.
But we recognized that the immediate
needs of the Foreign Service could only
be met by adding people at the inter-
mediate and upper levels. So we put in
a provision to allow qualified individuals
to transfer from the State Department
and the Foreign Service reserve and staff
to the Foreign Service officer corps.
This is called lateral entry.
Since that act was passed, a number
of commissions and committees have
recommended that this lateral entry pro-
vision be used to enlarge the Foreign
Service officer corps by bringing many
of the State Department officers into the
Foreign Service. That was the recom-
mendation of the Hoover Commission in
1949, of the Secretary of State's Advisory
Committee on Personnel in 1950, of the
Brookins Institution in 1951. and of the
committee appointed last year by Secre-
tary Dulles, referred to as the Wriston.
committee.
Before I get into an explanation of
what is involved in this transfer procas,
I want to inform the House who was on
the Wriston committee. There were
eight members. Four of them mine
from business, industry or finance.
These were John A. McComa, president,
Josua Handy Corp., Los Angeles; More-
head Patterson, chairman and president,
American Machine & Foundry Co., New
York; Charles E. Saltzman, partner,
Henry Sears & Co., New York; and John
Hay Whitney, partner, J. H. Whitney &
Co., New York. Two members have had
distinguished careers in the Forelen
Service, namely, Norman Armour, an
Ambassador, retired Foreign SerVice
officer, and a former Assistant Secretary
of State; and Robert Murphy, Deputy
Under Secretary of State. The other
two came from the field of. education.
Donald Russell is president of the Uni-
versity of South Carolina and a former
Assistant Secretary of State, and Henry
M. Wriston, president of Brown Uni-
versity. Mr. Wriston was ehairmanl of
the committee. There are only two
educators in this group. I know of the
fine reputation of the chaitman and I
can testify from personal knowledge of
the splendid ability, character, and dedi-
cation to public service of Mr. Russell.
This Wriston committee recommended
that there be integration of State De-
partment people into the Foreign Serv-
ice. That word integration is a farey
bureaucratic term. All it Means is the
transfer of State Department desk offi-
cers and other personnel?except cleri-
cal and specialists?and of senior State
Department people overseas into the
Foreign Service officer corps. That
committee estimated that there Were
1,300 in the Foreign Servire in early
1954. That number would be tripled
by adding about 1,300 from the State
Department and 1,300 from the Foreign
Service reserve and staff.
What is the reason for all these com-
missions and committees recommend-
ing this buildup of the Foreign Service
officer corps? There are some mighty
good reasons. A lot of these people in
Washington are making and directing
foreign policy, but they do riot have the
experience of overseas service. And
that experience is important if they are
to make correct analyses. They simply
have to get the feel of the problems they
deal with. It is just as important that
our people overseas come back to this
country more often. A representative
of this country who loses touch withale-
velopments at home becomes a less effec-
tive spokesman for us. Last year the
Wriston committee found that 43 per-
cent of our Foreign Service officers had
less than 1 year in the United States.
One Foreign Service officer with 29 years
service had only 8 months at home.
There is another good reason why this
transfer ought to take place. The )ee-
partment of State is different from most
other Government departments. It haa
two employment systems under the Sec-
retary and each of them is pretty water-
tight. The people in Washington are
under civil service, including its retire-
ment system, they serve only in Wash -
ington, their pay scale is set by civet
service, and they receive no allowances.
On the other hand, the Foreign Service
officers are appointed under the Foreign
Service Act requirements, they have a
more favorable retirement system, they
spend most of their life abroad with only
occasional tours in Washington, their
pay scale is set by the Foreign Service.
Act and is different from the civil sera -
ice, and, finally, when they are abroad
they receive allowances depending upon
the post and the responsibilities of the
officer. In each of these two groups
there is a lot of talent that our Govern-
ment needs. But the Secretary cannot
get the maximum use of it because some
can only serve at home and some can
only serve abroad. By requiring them
to serve at home and abroad it would
be possible to use their specialized
knowledge wherever it is needed.
Let me make plain to the House that
this integration will not add people io
the payroll, It is essentially a transfer
from the civil service system to the For-
eign Service system, not of everybody
in the State Department, but of about
1,300 out of about 5,000 and of another
1,300 in the Foreign Service staff and
reserve who are now abroad but are net
in the Foreign Service officer corps. This
provision of the bill, similar in some ways
to the one the last Cor.gress passed, does
not create more jobs in foreign coun-
tries nor does it increase American per-
sonnel abroad. It simply makes avail-
able a larger pool of qualified personnel
for assignment abroad on a rotation
basis.
One of the principal features of this
bill is to encourage this integration or
the transfer of State Department people
to the Foreign Service officer corps. it
is rather technical but I think the Hou
ought to know what we are doing and
how we are doing it. A man in the civil
service of the Department who wants to
transfer is reluctant to take a salary re-
duction. That's understandable. When
he is transferred to the Foreign Serviee,
one of the problems is to give him a
salary that most nearly equals what he
is receiving. Since the two salary sca.es
are different, he cannot get exactly the
amount he is receiving under civil serviee.
Either he has to get a little more or a
little less. The 1946 act allows him to
receive only the minimum for the For-
eign Service class to which he was ap-
pointed. Thus a man who was in a civil
service grade for several years and had
received several "in grade" salary in-
creases would have te drop back to talce
the lowest salary for the Foreign Servece
class he was entering. In almost every
case this meant a salary reduction of
several hundred dollie s and, in extreme
cases, as much as $1,600. I am including
in my remarks at this point a table of
the different salary scales so that Meee-
bers may see how they compare wall
each other:
Approved For Release 2002/07/23: CIA-RDP59-00224A000200080001-5
Approved For Release 2002/07/23 : CIA-RDP59-00224A000200080001-5
1955 CONGRESSIONAL RECORD - HOUSE
3001
Sevic
r e
Foreign offi
cers (FS 0)
Civil Service (GS grades)
S
Fore'gn ServF'ce staff officers
( SS)
Foreign Service
officers (Fso)
Civil Service (GS grades)
Foreign Service staff officers
(FSS)
Class
Salary
Grade
Salary
Grade
Salary
Class
Salary
Class
Salary
Class
,
Salary
Grade
Salary
Grade
Salary
Class
Salary
Class
Salary
6
$3, 993
11
$3, 927
4,047.$8
4
$3, 463
, 560
3
$4, 481
$8, 40 =
8, 61.i
4,193
7
$1, 205
4,167
3,763
6,760
5,721
4,393
4,330
4, 287
10
$4, 323
3,803
8, 960
5,961
4,455
4, 407
4, 443
3
9, 130
9,160
9, 201
2
9,2:11
4, 593
4,527
4, 563
9,430
9,300
9, 411
9, 40.
4,580
8
$4,620
4,647
4,683
_
14_,
9, 600
4,793
4,705
4,745
9
4,719
9:730
971u
.4,830
4,870
4,899
4,8113
-------9,800

4, 993
4, 955
4, 995
13,030
10,000
1
9, 95E1
9, 9-1i
5,093
9
5,060
5,120
5,079
5,043
.,,..
10,200
19,250
10,5'
5, 185
5,245
5, 259
5, 223
10, 330
10, 100
10, 550
5
5,313
1,310
5,370
8
5,313
10,630
10,000
5,435
3,439
5,493
111, 930
15
10,800
30m0
5,513
9,560
10
5,500
11, 030
11,050
---------------31,130
5,685
5,625
5,619
6, 673
2
14 130
5,713
5,750
13,150
11,300
5,810
5, 875
5, 853
[Is 500
11, 550
5, 913
11
5, 940
7
5,907
it 850
11, 800
6, 000
6,087
0,033
4 200
16_
12, 000
6, 140
6, 125
12, 200
6,113
6,250
6,267
6,213
14500
11,400
0,313
0,300
6,447
14700
12, 600
6, 513
6, 540
6
6, 501
1
14 800
12, 800
6, 713
6, 740
6, 627
6,681
17
13, 000
4
6, 963
6, 940
6, 807
0,861
14 200
13,200
12
7, 040
5
7, 095
7, 0 11
13,400
7,263
7,240
7,275.
7,221
13,000
13,690
-----------------
7,563
7, 440
7, 455
7,401
13,800
7, 640
7, 635
4
7, 689
14,000
7,803
7,840
7, 875
14,300
8, 040
7, 929
14,300
8, 163
8, 115
8, 169
18 ,
14,800
13
8,360,,
I Career minister.
Last year Congress gave the Depart-
ment some relief by allowing up to 500
State Department people to be appointed
to the Foreign Service at other than the
lowest salary for the Foreign Service
class. We set a deadline of March 31,
1955, on those appointments so we could
have a look at how the Department was
doing. We find it is going along satis-
factorily, and we support the Depart-
ment's view that it be continued.
This bill affects the continuation of
the integration program in two ways. In
section 2 it removes the requirement
that every lateral entry receive only the
lowest salary for the class to which he is
appointed. It allows the Secretary to
decide what salary within the class he
will receive. In section 4 we limit the
number of lateral entries to 1,250, but
we do not set a deadline.
I want to explain that figure 1,250. It
Is on page 3, line 3, of the bill. If you
look down to line 5 of that page you will
note that it reads "not more than 40,"
and then goes on to state some special
provisions about those 40. What we are
doing is dividing the 1,250 into 2
groups-1,210 and 40.
The 1,210 who may enter the Foreign
Service laterally must be people who pass
the examinations provided in this sec-
tion and who have had the required
number of years of employment in the
Department or the Foreign Servioe, or
both. More important, they must have
been on the Department of State payroll
on March 1, 1955. The reason for that
provision is simple. If we did not have
that requirement it would make it pos-
sible for a lot of other Government em-
ployees to enter. We want to make sure
that the Department gives its full atten-
tion to finishing up the transfer of its
own people before it considers people
from other Government departments
No. 52-11
and agencies. Mr. Henderson, the Dep-
uty Under Secretary for Administration
of the Department of State, who will ad-
minister this act, estitnated that that
would be the number of lateral entrants
who could be examined and appointed
by early 1957. If that does not finish
the job, the Department can-come back
then and ask for further relief.
May I say here that the man who has
been brought in from the Foreign Serv-
ice to carry out this integratidn program
is Mr. Loy Henderson, a distinguished
career Minister with many years of For-
eign Service. He has just finished serv-
ing as Ambassador to Indial and Iran.
He is honest, able, and, I believe, un-
usually selfless. I am convinced that he
will never play polities with the person-
nel of either the State Departfnent or the
Foreign Service.
Now, let me explain about these 40
others who may enter laterally. Under
exising law an outsider may become a
Foreign Service officer only IL' he serves
3 or 4 years as a Reserve or staff officer
or in the Department. Moreover, he
must be in one of those categbr1es at the
time he is appointed a Foreign Service
officer. The Department has nccasion to
need the services of a few spedalists from
outside the Department. We do not
want to be so rigid that we deny our
Government the right to employ un-
usually qualified individuals. .In this bill,
by allowing a little leeway, we let the Sec-
retary add a few individuals who for the
most part will be employed before their
appointment in other Government agen-
cies and meet all the other requiremen.:s.
Originally the committee set the num-
ber of such individuals at 25. But Mr.
Henderson explained a problem the De-
partment had. In 1951 there were about
26 State Department people who were
eligible for lateral entry who had ap-
plied. The Department moved slowly
then, and before they could be examined
they were transferred to FOA or USIA
Included in this 26 are 6 USIA employee ;
who have reemployment rights in th
State Department. The Department
feels, and the committee supports thi
view, that there is a moral obligation to,
these people who were caught in a reor-
ganization move. So we raised the num-
ber of what some may call exceptions tn
40. The Department does not know how
many of the 26 are still interested or how
many will pass the examinations. In any
case, if they do quali fy, they will b
Counted against the 40.
The Wriston commiqee also recom-
mended that the Foreign Service be im-
proved and strengthened .so that it ea
recruit and, equally important, retai_i
qualified individuals. The other section ;
of this bill aim to do ji,st that. I shoul
say at this point that many of the spe
cific recommendations made by the
Wriston committee do not require add. -
tional authorization. They can be car-
ried out administratively by the Depart
mertt of State. Some of them may re.
quire more money, but that is a matter c
appropriations, and hot authorizatiop.
As I stated earlier in my remark
section 2 will allow the Secretary to
appoint an individual who has tran,
ferred from the Depai ;11-cent at his 4--
proximate salary. This will mean salai
adjustments to fit inr with the Foreign
Service salary scale. We also include a.
provision, section 3, for payment of harc_-
ship post differentials to Foreign Ser, -
ice officers and Reserve officers. 'Under
existing law this payment is limited on 7
to Foreign Staff officers. Thus, tL3
Foreign Service officers and Reserve oil,-
cers are the only civilian employees ser. -
ing overseas who receive no extra con- -
Approved For Release 2002/07/23 : CIA-RDP59-00224A000200080001-5
Approved For Release 2002/07/23 : CIA-RDP59-00224A000200080001-5
3008 CONGRESSIONAL RECORD -- HOUSE March 2,;
pensation when they serve at a hardship
post.
This bill authorizes the payment of a
home service transfer allowance when
an officer is assigned to a tour of duty
in the United States between tours of
duty abroad. Such an allowance is al-
ready provided when the officer is trans-
ferred abroad. In a career service like
the Foreign Service a tour of duty in
Washington is just another transfer. It
costs the officer as much, possibly more,
to set up a temporary home here as it
does abroad. Abroad he would receive
various allowances to help him out; in
Washington he does not. Once the in-
tegration program is completed the De-
partment expects that an officer would
serve about 4 years out of each 10 in
Washington or one tour of duty. Thus,
this allowance would be payable to an
officer about once every 10 years.
The Department submitted draft lan-
guage for an education allowance. We
thought it was too loose and might lead
to abuse in its administration. So our
committee rewrote that provision and
tightened it up. We started with three
premises: First, the Government does
not assume the responsibility for provid-
ing adequate education for Foreign Serv-
ice children while overseas; second, a
Foreign Service officer ought not to suffer
financial hardship in providing for the
education of his children while he is
serving abroad; and, third, the parent
should be free to determine the kind of
education he wants to give his children.
We started with the standard of what
educational services he would get free of
charge if he sent his child to a public
school in the United States. By serving
abroad where he has to pay for these
usual services he does incur an extra-
ordinary and necessary expense. The
yardstick set by this bill against which
an officer may be reimbursed is what
services are ordinarily provided without
charge in our public schools. If he must
pay for these when abroad he may be
reimbursed. For example, public schools
do not charge tuition fees for the usual
courses. If the officer has to pay such
fees, he can be reimbursed up to the
amount set for that post.
In our committee report, we spell out
the three types of allowance that may be
set up for each post for primary and
secondary education. No child could
qualify for more than one such allow-
ance.
(1) One allowance may be established for
educating children at the nearest adequate
school. This allowance may not exceed
tuition and any other charges which must
be paid to obtain services provided free by
public schools in the United States plus
board and room and periodic transporta-
tion between the past and the place where
the school is located.
(2) A second allowance may be estab-
lished for personnel who chose to send their
children to a local school even though such
local school is inadequate, provided the
charges for this local school are less than
the allowance for the nearest adequate
school.
(3) A third allowance may be established
for the post of personnel who wish to educate
their children by the use of correspondence
courses if the necessary costs involved in
the use of this type of instruction are less
than the allowance for the nearest adequate
school.
Section 11 covers educational travel
allowances. We want to encourage chil-
dren of Foreign Service people to have
some opportunity for an American edu-
cation. But we can not support a bill
that would have the Government pay all
the costs. This section provides that Ahe
Government will pay one round trip be-
tween the post where the parents are sta-
tioned and the United States for the pur-
pose of attending high school and col-
lege. But no officer who receives a travel
allowance can receive an educational al-
lowance. If he sends his child to high
school in the United States, he may col-
lect the post allowance for secondary
education, but he will have to pay his own
travel expenses. This bill makes no yo-
vision for, an educational allowance for
college. All the officer can receive is the
cost of one round trip for his dependent
who is going to college.
Finally, in section 12 we aArthorize the
department to give dependents medical
examinations and inoculations and vac-
cinations. Although the department
estimates that this will cost $28,000 a
year, I prefer to regard it as a provision
that will save the Government money in
the long run. A medical examinatior of
dependents will often reveal symptoms
that will not only permit the individual
to be treated immediately but also de-
termine whether an officer can be sent
to a particular post. Let me give just
one illustration. After a Foreign Serv-
ice officer and his family arrived at: a
Far East post, it was discovered that his
wife had tuberculosis. It was necessary
to bring the family home. The estimated
cost to the Government was. $5,000.
A person entering the Foreign Service
is required to join the Foreign Service
retirement and disability System. He
may only obtain credit toward retire-
ment for prior military service if he con-
tributes 5 percent of his annual salary
for each year of service for which credit
is sought. People in civil7 service are
given credit for such service without
cost. Section 8 simply extends the bene-
fits of civil service retirement to the
Foreign Service officers.
One question the House is interested
in is how much is all this going to cost.
Based on the best estimates we could get
the total annual cost would be less than
$1.3 million. By sections the costs are
estimated as follows:
Salary adjustment for lateral
entrants (sec. 2) 475, 000
Hardship post differential (sec. 3).... 480, 000
Home service transfer (sec. loa) 200, 000
Education allowance (sec. 10*)__
442.000
Medical examinations (sec. 12);;___
28,
000
Military retirement credit (see.,8)_
Total 1,
67,
292,
000
000
The refund provided for those who
bought their military retirelnent credit
after April 1, 1948, would be about $110,-
000. But that is a one-shot payment and
not an annual charge.
Finally, there are provisions in this
bill that will permit the Secretary to
make administrative improvements in
his department in the interest of more
efficient operations. I want to tou