TRANSMITTAL SLIP

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP67B00446R000600100030-2
• Release Decision: RIFPUB
• Original Classification: K
• Document Page Count: 11
• Document Creation Date: December 20, 2016
• Document Release Date: May 30, 2006
• Sequence Number: 30
• Publication Date: September 27, 1965
• Content Type: FORM

Approved For Release 2007/03/06 : CIA-RDP67B00446R000600100030-2
-TRANSMITTAL SLIP
DATE
9/27/65
TO:
Legislative Counsel
ROOM NO.
BUILDING
REMARKS:
Please file in HR 6277, Foreign
Affairs Amendment Act of 1965.
Thank you.
NDB
FROM:
ROOM NO.
BUILDING
EXTENSION
IFEB 55 241
REPLACES FORM 38-8
WHICH MAY BE USED.
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 0
Ap oved For Release 0 /03/06 : CIA-RDP67B0 Vote R000600190030-
ys Passim by Voice in House
The House, by a voice vote on
September 9, passed the Hays Bill
(H.R. 6277) providing for a unified
foreign affairs personnel system
for the use of the Department of
State, United States Information
Agency and the Agency for Inter-
national Development.
In addition to establishing the
principle of one personnel system
for the foreign affairs agencies the
measure, titled Foreign Service
Act Amendments of 1965, carried a
number of new benefits for over-
seas employees.
The legislation was sent to the
Senate for consideration after a
dramatic all-afternoon debate and
after unsuccessful attempts were
made to negate its main purpose
through amendment.
Leading the fight for House ap-
proval were Representative Wayne
L. Hays (D., Ohio), the original
sponsor and Chairman of the House
Foreign Affairs Committee's Sub-
committee on State Department
Organization and Foreign Opera-
tions, and Representative E. Ross
Adair (R., Indiana), also a member
of the Subcommittee.
Mr. Hays was the floor manager
of the bill for the Democrats, and
Mr. Adair was the floor manager
for the Republicans.
The debate and floor action con-
sumed 28 pages in the Congres-
sional Record. As a special serv-
ice, the News Letter has reprinted
in adjoining pages the most per-
tinent parts of the Committee Re-
port on the bill, including back-
ground, recommendations and a
section-by-section analysis.
Soon after Congressman Hays
first introduced the proposal,
President Johnson, in letters dated
May 6 to the Speaker of the House
and Vice President Hubert H.
Humphrey, president of the Senate,
asked that such legislation be
passed to strengthen the personnel
capabilities of the foreign affairs
agencies of the Government.
For the Department, at a num-
ber of hearings, William J.
Crockett, Deputy Under Secretary
for Administration, was the princi-
pal witness. He got a powerful as-
sist from John W. Macy, Jr., Chair-
man of the Civil Service Com-
mission, and other supporters, in
and out of Government. Opposition
was voiced by some labor and
the agencies as well as to Foreign
Affairs officers and Staff officers
and employees who are appointed to
the Foreign Service subsequent to
the passage of the bill.
The bill also includes a number
of other amendments to the Foreign
Service Act.
Included in these changes are
provisions for:
--Hazardous duty pay for cou-
riers and other officers and em-
ployees whose duties requirethem
travel abroad in areas
where
to
the members of the Subcommittee,
re-
Republicans and Democrats alike, regularly assigned personnel re-
--Benefits chive hardship differentials.
for the development of thelegisla-
similar to those now
tion. provided by the Missing Persons
With the exception of the one Act for the Relief of United States
committee floor amendment ex- Citizen Employees, which will a
P
tending veterans' preference to
Foreign Service employees, where have y to been irtainmplipris soneed d by employees who
practicable, the bill was passed
s
exactly as it had been reported out governments a result t of f their
of committee on August 19. employment by y the United States
Government.
The Hays Bill in summary pro- --The continuation of medical
vides: benefits now available to officers
--A new category of personnel and employees and their depend-
to be designated as Foreign Af-
fairs officers primarily to be used eats beyond the date of an ee n-
for employees in the domestic ployee s separation hwhen-
service of the Department of State, ever it is considered d in in the public
intere-sti to do so.
United States Information Agency
and the Agency for International interchange for cooperation atween n e or re-
Development. e-
Development. Present Civil Serv-
the
ice employees may, if they so lated service e abroad d between
United States Government or for-
elect, be appointed as Foreign Af-
n Service eign governments or international
F
i
ffi
f
i
ore
cers or
g
rs o
a
organizations.
employees without obligation zations,
to serve abroad unless they consent --A provision for
to assignment abroad inwriting. leave for a period
year when there is
and selection-out principle to the
Foreign Service Staff officers and tained abroad by an officer or em-
employees and to Foreign Affairs ty; ployee as a result of hostile activi-
officers so that all employees in and
--Authority to pay up to 50 per
the foreign affairs personnel sys- cent differential to officers and
tem will be subject to the same employees serving in a foreign
personnel concept and policy. area where there is unusual danger
--An opportunity for Civil Serv- from hostile activity.
ice employees in the Department, Representative Thomas E. Mor-
USIA and AID to join the foreign gan, Pennsylvania, is chairman of
affairs personnel system on a the House Foreign Affairs Commit-
voluntary basis. Such transfer to tee.
be without further examination to Members of the Subcommittee
an appropriate class in one of the who joined in developing the bill
Foreign Service categories that are,
will assure no reduction in com- I Hays, Ohio; Mrs. Edna F.
Kelly, , New York; Clement J.
pensation. Zablocki, Wisconsin; Leonard
--Extension of the benefits of the J arbstein, New York; John S.
Foreign Service retirement sys- Monagan, Connecticut; Donald M.
tem on the same basis that it has Fraser, Minnesota; Armistead I.
applied to Foreign Service Staff Selden, Jr., Alabama, and Benja-
officers and employees of the De- min S. Rosenthal, New York, all
partment of State (i.e., upon com- Democrats; and Mrs. Frances P
.
veterans' representatives, pletion of ten years of continuous Bolton, Ohio, ex-officio member;
The Subcommittee made 74 service) to those present em- E Ross Adair Indiana; William
amendments to thQkPPf WedFIQCiRel (OOO / 'PCIrAa DM7BO844?iR Qf1Q Q# .f~zZ?nia; Vernon W.
Another committee amendment affairs agencies who elect to trans - Thomson, Wisconsin, and F. Brad-
was accepted in the floor action. fer to the Foreign Service and to ford Morse, Massachusetts, all
!',-- ".-C -A t,,l..fA t? all niltaff and enlnvees of RA,,,,h1,. a
of up to one
absence from
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A Section.-by-Section Analysis of the Hays Bill
As Amended and Reported to the House
The Hays Bill (H.R. 6277), which provides for a unified foreign af-
fairs personnel system, was favorably reported, as amended, to the
House of Representatives on August 19 by the Committee on Foreign
Affairs.
The Report was presented by Representative Wayne L. Hays, of
Ohio, Chairman of the Subcommittee on State Department Organiza-
tion and Foreign Operations.
Following are extensive excerpts from the Report which outline
Committee action, objectives of the bill, and a section-by-section
analysis of the measure:
H.R. 6277 was introduced on March 15, 1965, and referred to the
Subcommittee on State Department Organization and Foreign Oper-
ations. Previous to that the subcommittee had held several meetings
with officers from the Department of State to determine the improve-
inents that had been made in the management and organization of the
Department, as well as the objectives in these areas that the Depart-
ment hoped to accomplish. After the referral of the bill to the sub-
committee it held hearings during which it received testimony from
Hon. William J. Crockett, Deputy Under Secretary of State for Ad-
ministration, and from Hon. John 111. Macy, Jr., Chairman of the
Civil Service Commission. A letter from the President to the Speaker
of the House and one from the Secretary of State to Representative
I-Iays, both of which appear in the hearings, endorsed the bill. Among
the public witnesses who appeared were J. F.. Griner, president, Ameri-
can Federation of Government Employees; Joseph E. Johnson, presi-
dent, Carnegie Endowment for International Peace; Preston Jay
Moore, former national commander of the American Legion; Francis
W. Stover, director, National Legislative Service, Veterans of Foreign
Wars; John S. Mears, assistant director, National Legislative Com-
mission, the American Legion; and Robert Smith, legislative assistant
representing Nathan T. Wolkomir, president, National Federation ott
Federal Employees. In addition, 15 letters, telegrams, and state-
ments sent by individuals on their own behalf or on behalf of groups,
have been included in the printed hearings. Following the receipt
of the testimony the subcommittee had six executive session meetings
to discuss the bill section by section. It adopted a total of 75 amend-
ments. While a number of these were technical or conforming in
nature, others were substantive. The subcommittee unanimously
ordered the bill reported to the full committee on August 5, 1965.
The full committee had two meetings on the bill and ordered it re-
ported to the House on August 18, 1965.
The primary objective of H.R. 6277, as reported by the committee,
is to facilitate the establishment of a single personnel system within
each of the three agencies most actively engaged in foreign affairs-
the Department of State, the U.S. Information Agency, and the
Agency for International Development. It deliberately excludes all
other departments and agencies. These three agencies conduct their
activities under two personnel systems-one operating under civil
service laws and the other under the Foreign Service Act. The ground
rules governing appointments, assignments, 'promotions, separation,
and retirement are different for each system and, to some degree, for
each of the agencies. The existence of dual personnel provisions denies
the head of each agency the most effective use of the manpower and
resources the Congress has voted him.
This bill adds neither jobs nor personnel to the payroll. More posi-
tions and more people will not solve administrative difficulties. This
bill is based on the premise that voluntary transfer into the Foreign
Service personnel system of those now employed under civil service
provisions is the most equitable way to effect a transition from a dual
to a single personnel structure. It also permits the development of
uniform personnel policies among the three agencies while leaving to
the heads of those agencies the management control of their own peo-
ple. Thus it seeks unifo ~~tt}}~t~~ii qq~~} 1?~ tti
this bill enables officials ~~tl4~i ehl'(Pga~Td"co3fi ix le o'fis
f
i
ti
f th
f
The Foreign Service Act of 1946 focused on the strengthening of a
professional, disciplines, and mobile corps of Foreign Service officers
who were available for worldwide service. It did not deal directly
with the integration of the personnel in the Department of State with
the Foreign Service officer group. Since its enactment almost 20 years
ago official and unofficial bodies have addressed themselves to the issue
of effecting such an integration. It is significant that all the studies
have pointed in one direction-move the departmental personnel into
the Foreign Service system. None has recommended that the Foreign
Service move into the civil service system.
(1) Commission on Organization of the Executive Branch of the
Government (Hoover Commission), 1949
This Commission, headed by the former President, included Mem-
bers of Congress as well as prominent private citizens. It operated
through a series of task forces, one of which dealt with foreign affairs.
Both the task force and the Commission gave attention to a single
career service. The task force report included this recommendation :
The consolidation (of the Foreign Service and the Department serv-
ice) should be gradual in order not to weaken the morale and the present
high quality of the Foreign Service or discard too abruptly many civil
service employees of long service. It should however be mandatory and
progressive, under legislative enactments which cannot be avoided by
unsympathetic administration and which contemplate a complete consoli-
dation within about 5 years.
Individuals in the civil service would be obligated to serve at home or
abroad. Those who did not apply for admission to the single service
or who could not qualify through examination "should be assisted in
making transfers to other departments and agencies or should be
retired under civil service rules within 5 years."
The Commission accepted the general principles recommended by
its task force with the qualification that consolidation, should be car-
ried out gradually over a short period of years. The only exceptions
were top-level officials and the lower grade employees.
(2) Advisory Committee on Personnel (Rowe-Ramspeck-DeCourcy
Committee), 1950
The Secretary of State appointed this Committee to advise him on
the desirability of changes in the personnel structure and the problems
inherent in a dual personnel system. It examined many facets of the
Department's personnel organization and concluded that a single
personnel system was necessary.
There are too many variations in the several personnel systems being
administered by the Secretary of State at the present time. These differ-
ences are reflected in the operation of three systems for American
employees of the Foreign Service and variation in personnel practices
as between Foreign Service and departmental people. The latter come
under the civil service system which differs in almost every important
respect from the Foreign Service systems. These differences have not
made for efficient management; moreover, they have created certain
morale problems by providing permanently unequal conditions of employ-
ment and status for people doing similar work. * * *
There is an insufficient interchange between people in the Department
and people in field establishments. The competent handling of foreign
affairs must be predicated upon an understanding of both the foreign
and the domestic scene, with the latter including a knowledge of how
the Department of State functions in relation to the Government as a
whole. Present systems and practices have not succeeded in developing
this duality of qualifications. * * * -
The committee recommended "a single, but flexible, personnel sys-
tem for the Department of State and the Foreign Service instead of
the separate systems that exist at present" and that such a system be
"established outside the framework of the present civil service system."
Rather than seek the necessary legislation to effectuate the changes
recommended by the Hoover Commission and its own Advisory Com-
mittee, the Department - elied on administrative action to move slowly
toward a single system. Its principal approach was to liberalize en-
trance into the Foreign Service Officer category of departmental per-
sonnel on a voluntary basis. Had the Department acted in 1950 on
the basis of the two earlier studies, this bill would not be necessary in
1965.
(3) Wriston Commit tee, 195A
u
ems, J~eaded by Dr. Henry
!p o strengthen the ef-
onal service to a standard consistent with
e pro
ess
ec
veness o
bilities with greater efficiency and a maximum use of their manpower
it may be regarded as an economy measure. the vastly increasing responsibilities in the field of foreign policy
Thiah;ll at~n; n]? roc o ar , ,, d o o a o '~' rt ;H which have devolved upon the President and the Secretary. Its re-
 Approved For Release 2007/03/06 : CIA-RDP67B00446R000600100030-2
(Continued from preceding page)
recomiineided-"an integration of the functions and personnel systems
of the two services where their functions and responsibilities con-
verge." To this end it further recommended "the transfer of officers
with civil service status to the Foreign Service" on a voluntary basis
"under a revised lateral entry process." Tho lateral entry into the
Foreign Service, Officer category absorbed many departmental em-
ployees; but there still remained two separate personnel systems.
(4) Herter Coim7mittee,1962
While previous studies had confined their attention to the Depart.
went of State, the Herter Committee, headed by the former Secretary
of State, included in its considerations the personnel problems of the
U.S. Information Agency and the Agency for International Develop-
ment. It recommended that the personnel of the three agencies should
"constitute a family of compatible services governed by uniform statu-
tory provisions regarding personnel management.." Further, it, rec-
ommended that "the personnel of the foreign affairs agencies in the
United States who are now in the civil service system should be re-
designated as Foreign Affairs officers and employees and should be
brought within the structure of the Foreign Affairs services."
ALTERNATIVES
(1) The committee could have taken the easy course of ignoring
the problem. To have clone this would imply either that the foreign
affairs agencies have available sufficient administrative authority to
effect any changes they deem necessary in the interests of manage-
ment and personnel administration or that the Congress is indiffer-
ent to the situation. The Deputy Under Secretary of State for Ad-
ministration told the committee that "as much uniformity in operation
as can be achieved administratively had been accomplished. We now
need legislation to take the final steps The committee ac-
cepted this proposition and then devoted its efforts to a consideration
of the methods by which a single personnel system could be achieved.
(2) The Hoover Commission recommended a mandatory amalga-
mation of the civil service personnel with the Foreign Service person-
nel in a short period of time. As originally introduced, this bill fol-
lowed the recommendation of the Commission by providing a 3-year
period to complete the amalgamation of the two services: It became
evident that such an abrupt organizational change could only be ac-
complished at a heavy cost of morale of those affected.
(3) The committee chose a more deliberate course that reflected its
concern for the human factor. It accepted the basic principle of a
single service but in a way that would be least unsettling to present
employees. No such employee is required to transfer nor will he be
discharged if he does not. The choice is his. The committee could
have contented itself with this option alone. It did not. It wrote
into the bill additional safeguards as well as some incentives for the
approximately 19,000 employees of the 3 agencies covered by this bill.
((a) Those who elect to transfer will not be subject to an examina-
tion as proposed by the Hoover Commission.
(b) They will not be required to serve abroad without their written
consent. While some may want to enlarge their professional experi-
ence by service abroad at least for one tour of duty, it is recognized
that others will have compelling personal reasons that will make such
service impossible.
(c) No transferee will suffer a reduction in his compensation by
virtue of his transfer.
(d) The Chairman of the Civil Service Commission is included in
the membership of the Board of Foreign Service. In addition to serv-
ing as a policymaking body the Board also acts as an appellate body
on issues involving separation for cause. This should assure the pro-
tection of the rights of civil service employees who elect to transfer.
(e) The benefits of the Foreign Service retirement system will be
available to those who transfer to the Foreign Service but choose to
serve at home on the same basis as those who have an obligation for
worldwide service.
It should be understood that the Foreign Service is no less a career
service than is the civil service. Its personnel policies are governed
by laws written by the Congress and by regulations formulated by
the Secretary.
The provisions of this bill that permit a civil service employee to
elect to transfer to the Foreign Service are complemented by those of
Executive Order 11219 of May 6, 1965. That order permits the ap-
pointment in the competitive service of present or former Foreign
Service personnel under certain conditions.
ured pace that shows a proper concern for employee morale.
The committee cannot assure the House that this bill will resolve all
the management and organization problems that beset the foreign
affairs agencies. But it is confident. that this is a necessary first step
toward such a resolution. The committee urges favorable action on
the bill.
SECTION-BY-SECTION ANALYSIS OF TIIE FOREIGN SERVICE ACT
AMENDMENTS OF 1965
Section 1. Title
This section designates this act as the Foreign Service Act Amend-
ments of 1965.
Section 2. Objectives of the Act
This section amends section 111(1) of the act relating to objectives
of the act by inserting the words "at home and" to make clear that the
conduct of foreign affairs programs requires the assignment of per-
sonnel at home as well as abroad. The amendment carries out one of
the principal objectives of this bill, namely, the extension and broaden-
ing of the scope of the Foreign Service Act to facilitate the develop-
ment of a single personnel system in each of the three principal foreign
affairs agencies-the Department of State, the U.S. Information
Agency, and the Agency for International Development.
Section 3. Director General
This section amends section 201 of the act relating to the Director
General by upgrading the post of Director General of the Foreign
Service. It provides that he shall be appointed by the President, by
and with the advice and consent of the Senate. Further, he must be
chosen from the top three classes of the career service-career ambas-
sador, career minister, or class 1. He is to be responsible to the Deputy
Under Secretary of State for Administration. As a Presidential
tip ointee, he may act in the absence of the latter officer.
The duties and responsibilities of the Director General enumerated
in existing law have been superseded by the provisions of Public Law
81-73 enacted in 1949. This latter act vested in the Secretary of State
responsibility for the administration of the Foreign Service previously
vested in the Director General and certain other officers of the Depart-
ment of State. Since 1949 the Director General has performed only
-those functions delegated to him by the Secretary of State. The
amendment does not specify the duties the Director General shall
perform. Testimony given the committee indicates that lie will serve
the foreign affairs agencies included in this bill in a capacity similar
to that which the Civil Service Commission performs for the civil
service. He will develop and coordinate the personnel policies and
procedures of the foreign affairs agencies to assure as much uniform-
ity as possible. Since he is appointed from the upper echelon of
the career service, it follows that he will bring to his position a broad
understanding of the problems and needs of the Service. The com-
mittee regards the Director General as a key person in carrying out the
objectives of a single personnel system within each of the principal
foreign affairs agencies.
Section 4. The Board of the Foreign Service
This section amends section 211 of the act relating to the Board of
the Foreign Service. The Board was first created by Executive, order
in 1924 and placed upon a statutory basis in 1931. Since 1946, the
Board has included designated officers of the Department of State as
well as representatives of other Government agencies having a periph-
eral interest in foreign affairs. The amendment made by this section
provides for a Boarcof not less than seven members but specifies only
two of them-the Secretary of State or an officer of'the Department
designated by him and the Chairman of the Civil Service Commission.
The committee included the latter official to assure that the interests of
civil service personnel who elect to transfer to the Foreign Service
under the provisions of this bill are adequately represented. The other
members of the Board, of whom there must be at least five, are to be
designated by the President from among Government agencies which
he determines are substantially engaged in foreign affairs programs
and that utilize the foreign affairs personnel system of the Foreign
Service Act.
Under existing law the Board has two functions: First, as a policy-
making body dealing with the operations of the Foreign Service; and
second, as a hearing board to review actions against individuals being
separated for cause under the provisions of section 637 of the act..
Section 637 provide;, in part, that no officer or employee shall be
separated for cause without a hearing by the Board of the Foreign
Service unless the c:ficer or employee waives his right to such hearing
in writing. The amended language gives the President the authority
to prescribe the functions of the Board but it specifically retains the
This is not a hastily constructed bill. The committee used H -R. role of the Board to hear cases involving separation for cause under
6277 as introduced as a point of departure to weigh the advantages and section 637. In discharging its responsibilities under the latter section
disadvantages of personnel realinement. That bill received tie sup- the language requires that a quorum of the total membership must be
port of the Presido en rd g~ i e ~ #3i e i as a ~19DWIpp n h' -l Of the Board, a quorum
ell Among others who en rse it was t e Chairman c e ivi ei ibe is e no as a ea one mare an o n 1 if of the then current
Commission whose convincing arguments weighed heavily with the membership.
committee. It heard from critics who represented the veste& interests
of -l--c A rmmnnricnn of th nrimmnl hill with th rA- Section5. The Board of Examiners for the ForeignService
 Approved For Release 2007/03/06 : CIA-RDP67B00446R000600100030-2
membership shall consist of Foreign Service officers. The amended Affairs officer or a Reserve officer who may be temporarily in charge of
language does not alter this provision. The members are to be a consulate general or a consulate also may receive such differential.
appointed by the Secretary of State and shall include represents- Section 10. Classification o f positions
tines of those Government agencies determined by him to be substan-
This section amends section 441 of the act relating to the classifica-
tially engaged in foreign affairs programs and activities and which Lion of positions in the Foreign Service and in the Department. Un-
utilize the foreign affairs personnel system as the basis for employ- der elaw subsection (a) authorizes the Secretary of State to
ment. The language is sufficiently broad to permit the inclusion of der existing f positions abroad that may be occupied by the different cate-
officers of the Department of State who are not Foreign Service gories of Foreign Service personel. Subsection (b) authorizes the
officers.
First similarly to classify positions in the Department which lie
rst established in 1924 by Executive order, the Board was given a designates as Foreign Service officer positions and to relate them to
statutory base in the 1346 act. Since its creation it has been regarded the appropriate classes of Foreign Service officer, Foreign Service
as the principal means to assure as objective an assessment as is pos- Reserve officer, or Foreign Service Staff officer or employee.
sible of applicants for the Foreign Service. Existing law requires the The amendments made by this section repeal subsection (b) and de-
Board to provide for and supervise the conduct of examinations. The lete from subsection (a) the words "at posts abroad" thus enabling the
amended language, confers upon the Board the obligation to recom- Secretary to classify all positions in the Service, including those in
mend to the Secretary of State the means by which highly qualified the domestic service of the foreign affairs agencies covered by this
personnel may be recruited for service with the foreign affairs agencies bill, as Foreign Service positions and to est blish such positions in
included in the scope of this bill as well as to determine the standards relation to the several classes established by section 412 (Foreign Serv-
for examining and appointing such individuals. Section 13 of the bill ice officers), section 414 (Foreign Service Reserve officers), and see-
specifica.lly places upon the Board the responsibility of prescribing tion 415 (Foreign service staff officers and employees). Under the
for applicants for appointment as Foreign Affairs officers and Foreign language of section 522(a) of the act, as amended by section 13 of this
Service Reserve officers after the enactment of this bill "such coin- bill, positions occupied by Foreign Affairs officers -Would be allocated
prelicnsive mental and physical examinations" as will determine their to the several classes established by section 414, relating to Foreign
fitness and aptitude for the work of the Foreign Service. The com- Service Reserve officers. In it worldwide service it is essential that
mitten expects that the Board will give particular attention to the American personnel be assigned according to the needs of the Service.
language qualifications of all applicants, particularly those appointed with due regard to the availability of personnel, health factors, and
for worldwide service. It does not regard as unreasonable a require-
ment other pertinent considerations. This section provides a uniform basis
that applicants have a working knowledge of one foreign world- for classifying all positions under the jurisdiction of the foreign affairs
The wideh committee e has also given the Board the responsibility to recom- agencies including those presently covered by the provisions of the
mend to the Secretary such procedures as may be necessary to Classification Act of 1949, .as amended.
determine the loyalty of applicants to the United States and their Section 11. Salary differential
attachment to the principles of the Constitution. This is similar to a This section adds a new section 443 to the act. It authorizes the
provision in existing law. Secretary to grant officers and employees a salary differential not to ex-
Finally, the Secretary is authorized to confer on the Board any other teed 15 percent of basic salary while they are performing duties abroad
functions and duties which he determines it should perform. that require them to travel into areas where regularly assigned person-
Section 6. Categories o f personnel nel receive hardship post differentials. The Department is requesting
This section amends section 401(3) of the act relating to categories this authority primarily for the benefit of its diplomatic couriers.
of personnel. It repeals the language in existing law as it pertains Although the majority of them are based at nonhardship posts, their
to the present category of Foreign Service Reserve officers. In lieu duties require them to spend much of their time traveling in hardship
thereof it identifies Foreign Service Reserve officers as those who are areas where they are subjected to health hazards and physical and
appointed or assigned under section 522(b) as amended by section 13 psychological strains. The authority for the payment of post dif-
of this bill.- Subsection (a) of the latter section authorizes the estab- ferentials contained in section 231 of the Overseas Differentials and
lishment of a category of career officers appointed without time limit Allowances Act is not sufficient to qualify them for such a differential.
and designated as Foreign Affairs officers. No employee would receive a differential under this section who is al-
ready receiving a hardship post differential.
Section 7. Foreign Service Staff oll-Icers and employees Section M. Admission of F+oreign Service officers
This section makes two amendments to section 415(b) of the act Subsection (a) amends section 516 of the act relating to admission
relating to Foreign Service Staff officers and employees. First, it of Foreign Service officers to class 7 or 8. Under existing law the
authorizes the Secretary of State to establish salary rates below those Secrets may recommend to the President the appointment directly
scheduled for class FSS-10 for American employees who perform to class FSO-7 of a limited number of persons who have qualified for
duties of a more routine nature than are generally performed at the class FSO-8 appointments. The amendment made by this subsection
class 10 level. Existing authority limits the use of rates lower than will permit direct initial appointments of individuals who have simi-
class 10 to. those American employees recruited abroad who are not larl qualified into class FSO-6. This authority will enable the Do-
available or are not qualified for transfer to another post." Since all artmont to attract more mature persons with advanced education and
civil service employees in the foreign affairs agencies at the clerical e levant experience to the Foreign Service officer category through the
level as well as the officer level will be appointed under the authority of examination process. The Department is not in the strongest competi-
tho Foreign Service Act, this amendment will make it possible to tive position in the recruitment of unusually well-qualified Foreign
accommodate clerical employees now at the GS-1, 2, and 3 grade levels. Service officer candidates who may now be appointed to civil service
The entrance salary for an FSS-1Q is $4,480 while the entrance salary positions at salaries above those prescribed for class FSO-7. Similarly
for e a GS-1 is $3,385. private employers are able to offer more favorable initial salaries. Offi-
Second, the amendment positions be, to be occupied d the Secretary by wage of boaState. rd ptaerson el cars appointed directly to FSO-6 would be required under an amend-
trans forsferre from amend-
transferred wage board the civil e Foreign Da- ment proposed in section 22 of this bill to serve in a probationary status
and e e nd until promoted to class FSO-5. In recommendin this authority the
partment tran employs the wage board wage bsepersonntheel such Fcas lithographers r. The
printers. They are employed under regulations established by the committee expects it to be used sparingly and only or those candidates
Civil Service Commission while their salaries are determined on the for appointment who have a record of graduate training or previous
basis of annual review and recommendations made by interdepart- employment which demonstrates ability or special skills and who have
mental wage boards. a competence in at least one modern foreign language.
Subsection (b) amends section 517 of the act relating to admission
Section 8. As Charges d'Affaires ad interim to classes 1 to 7 inclusive. The latter section is frequently referred to
This section amends section 421 of the act relating to charges d' as the "lateral entry" section. It authorizes the appointment as For-
affaires ad interim. Under existing legislation only a Foreign Service sign Service officers in classes 1 through 7 of individuals who have
officer serving as charge may receive such difference between his basic worked in a Government agency for 4"years or, if over 31 years of age,
salary and that of the chief of mission as the Secretary may determine for 3 years. Before their appointment as Foreign Service officers they
to be justified. The needs of the Service may require that officers of must )rave passed "comprehensive mental and physical examinations'
the Service other than Foreign Service officers (such as Foreign Af- to determine their fitness :vnd aptitude for the work of the Service and
fairs officers or Reserve officers) be designated as charges. This amend- demonstrated their loyalty to the Government of the United States
ment authorizes them to receive appropriate compensation. and attachment to the _,rinciples of the Constitution. The amend-
Section 9. As officers in charge of consulates general or consulates menus made by this subsection would reduce the period of prior Gov-
This section amends section 422 of the act relating to officers in ernment service from 4 to 3 years and, in the case of those seeking
charge of consulates general or consulates. This amendment is similar appointment to class 6 or 7 of the Foreign Service, reduce the period
ains to officers in,eharge of of prior Government service to 1 year. The amendment does not
to that made by section 8 except that it jen
Urn alter the requirements pertaining to the examination process or those
consulates general or cons a e th r rm i ps.
law only a Foreign Servic~Ex i CAl !'IC7e`Obrriill 06 :VCMg tk VSVLE300446R000600100030-2
a Foreign Service officer and who is temporarily in charge of a consul- Section 13. Appointments and assignments to the Reserve
ate general or a consulate may receive so much of the difference be- This section amends Section 522 of the act relating to o pointments
tween his basic salary and that of the principal officer as may be deter: and assignments as Foreign Service Reserve officers. The new Ian-
 Approved For Release 2007/03/06 : CIA-RDP67B00446R000600100030-2
(Continued from preceding page) foreign affairs work. This is particularly the case in many consular
and administrative positions such as visa work where the principal
gunge restructures s the Foreign Service personnel system by cireating a requirement is a knowledge in depth in the area of specialization.
new category designate the d Foreign Affairs oncers and removng time Staff officers who perform satsfactorily in these positions would not
limitations on Foreign Service Reserve officer appointments. Under be penalized for their work in such specialized areas when considered
certain this key section
anthe
subsection (a) provision is made for a new category of professional Department to appoint staff ioif'cers to granted
field positions enable
d
career officers designated Foreign Affairs officers. Such officers will to develop an attractive and more meaningful career program for its
have a personal rank and be appointed without time limitation. At the provisions of this act are applicable.
the time of their appointment they must have been citizens of the
United States at least for 5 years. Foreign Affairs officers in class 1, Section 17. Citizenship requirement
2, or 3 shall be appointed by the President by and with the advice and This section amends section 534 of the act relating to the citizenship
consent of the Senate; those in classes 4 through 8 will be appointed requirement of Foreign Service Staff officers and employees. It re-
by the President alone or by the Secretary of State when directed by quires a 5-year minimum period of citizenship prior to appointment.
the President. The salary rates and classes of Foreign Affairs officers Existing law requires only t-iat an individual be a citizen at the
will be identical with those of Foreign Service officers and Foreign time of his appointment. Department of State regulations, however,
Service Reserve officers. All appointees to this category after tTi.e currently, require 5 years' citizenship at the time of appointment.
enactment of this bill except those transferred under section 29 must On occasion a local employee becomes a U.S. citizen. In order that
qualify for appointment by examinations as set forth in subsection (c). that individual may be appointed as a Foreign Service Staff officer or
The Foreign Affairs officer category will provide most of the profes- employee and continue in the employ of the Government, this amend-
sional personnel for the home service, although the language is broad ment authorizes the Secretary to waive the requirement of 5 years'
enough to permit their assignment overseas. Those individuals who citizenship as a requisite for appointment as a Foreign Service Staff
transfer under the provisions of section 29 of this bill will not be officer or employee, but retains the requirement that the individual be
subject to any examination nor will they be assigned abroad without a citizen at the time of his appointment.
their written consent. Section 18. Assignments to any Government agency or international
Subsection (b) authorizes the appointment of Reserve officers. Un- organization der existing law such officers are limited to appointments of 5 years' 41,
This section amends section 571 of the act relating to assignment
duration plus an additional 5 years-a maximum of 10 years. The a b
amended language removes all time limits for Reserve appointments. or detail to duty in the United States. It repeals that part of sub-
Reserve officers may be appointed for a limited period either for home section (a) which limits such assignment or detail to not more than
service or service abroad. They may also be appointed for temporary 4 years except that under special circumstances the Secretary may ex-
service or such other periods of service as the Secretary may determine. tend the 4-year period for not more than 4 additional years. Under
The removal of the time limit on their period of service will provide existing law any further extension may only be made in individual
the foreign affairs agencies with sufficient flexibility to meet their cases when personally approved by the Secretary. By deleting the
changing personnel requirements. The new language permits the con- limitation on duration of assignments of personnel to domestic posi-
tinuation of the present authority of the Secretary to arrange with tions it will be possible for the foreign affairs agencies to meet their
other agencies for the assignment of the personnel of those agencies as manpower needs by assigning their personnel wherever and for what-
Reserve officers. Although the provisions for selection-out contained ever period of time the services of such individuals are necessary.
in section 20 of this bill are broad enough to permit their application The last sentence of subsection (b) is also deleted since the removal of
to Reserve officers, they probably will not be subject to selection-out limitatisentenceons of duration of assignment from subsection (a) makes this
since they have temporary or limited appointments. The amendment made b subsection
Subsection (c) makes clear that applicants for appointment as For- Y su (b ) will permit a Foreign Serv-
eign Affairs officers and Reserve officers after the enactment of this bill, ice officer to be assigned to a position the salary of which is established
except those assigned from other Government agencies, must take such under the Federal ixecuti Salary Schedule without losing his status
comprehensive mental and physical examinations as the Board of as a Foreign Service officer. The latter act established 30 positions
Examiners may prescribe. This is a provision identical with that at salary levels IV and V that may be allocated by the President to
governing the anointment of Foreign r Service officers through the the various Government agencies. Three of these have been allocated
p to the Department of State.
lateral entry process: The committee recognizes that a uniform exami- Over the years the Department has been developing a policy of ro-
nation is not feasible.. The type and content of the examination will tation between posts in order to contribute to the growth and expe-
be determined by the type and level of position to be filled. But it is rience of its officers. In recommending the authority to remove any
insistent that there be an examination of substance that will'maintain fixed time limit that an officer may spend at one post the committee is
the professional character of the Service. not thereby endorsing the abandonment of a rotational policy. Rather
Section 14. Appointment or assignment to a class it is supporting the concept that a rigid time limit may be unduly
This section amends section 523 of the act relating to appointment restrictive in utilizing fully the special talents of an officer.
or assignment to a class. The new language makes clear that any For- Section 19. Assignment for consultation or instruction
oign Affairs officer or Foreign Service Reserve officer appointed or as- This section amends section 573 of the act relatin to assignment
signed for worldwide service shall be subject to transfer from post to for consultation or instruction. It deletes subsection a) of the latter
post as the interests of the Service require. Such a condition would section since the removal of limitations concerning the duration of do-
not apply to officers appointed for domestic service, although they mestic assignments from section 571 (a) made by section 18 of this bill
could agree to serve occasional tours of duty abroad without the need eliminates the need for this provision.
for reappointment. Those individuals who elect to transfer from the Subsection (b) of existing law is rewritten to broaden the authority
classified civil service to the Foreign Service under the provisions of of the Secretary with respect to the assignment or detail of any officer
section 29 of this bill may not be assigned.abroad without their written
consent. or employee of the Service for purposes of instruction, training, or
orientation, with educational or nonprofit institutions, or with trade,
Section 15. Reappointment or reassignment of Reserve officers labor, commercial, or other organizations. Such assignment or detail
This section repeals section 527 of the act relating to reappoint- may be of short duration for the purposes of lectures, seminars, confer-
ment or reassignment of Foreign Service Reserve officers. The latter ences, and other types of meetings. Or it may be in the nature of a
section is incompatible with the provisions of section 522 as amended "sabbatical leave" to enable the officer to participate more fully in the
by this bill which provides for the establishment of a career category work of the institution or organization to which he is assigned. In
as well as appointment or assignmentin the Reserve for an indeterms- any case reimbursements could be accepted from the instltiation or
nate period. It also makes clear that the expiration of a limited or organization for all or any part of his salary and expenses. The
temporary appointment does not prevent a subsequent appointment amendment also authorizes assignment or detail to any office or agency
at any time the services of the individual are needed and he is willing in or under the legislative branch of Government. The variety of
to accept such appointment.. experiences gained from an assignment to the office of a Member of
Section 16' Commission as consul or vice consul Congress or to a con ciittee staff will contribute to a better under-
This section amends section 533 of the act relating to the granting s There of the role c~ the Congress in the foreign polity process.
of consular commissions to staff officers and employees. Under exist- re has been a rowing recognition that ocers who have spent
ing law a staff officer may be commissioned a consul by the President, many years abroad 1.-ve a diminished understanding of current think-
by and with the advice and consent of the Senate. The Secretary may ing and attitudes in. tae United States. An assignment in the United
commission a staff officer as a vice consul. The amended language States outside of Washington can be mutually beneficial. For the offi-
ter it affords an opportunity to comprehend in greater depth the
broadens this authority to permit the President by and with the advice mg American scene. On the other hand, the community will have in
and consent of the Senate, to commission staf personnel as a diplo professional
m.atic or consular officq~l~p~t)1}slas>BE7dflSktaf@~r C Ii~;ZFF(iiQ[1it~~Tl[7L~1=7`__ _ ___ ,
~_. , _ _ _ .b.. ...
Reserve officers. the complexities of foreign policy.
The Department has recognized the need for a corns of staff offi- Section 20. Selection-out
 Approved For Release 2007/03/06 : CIA-RDP67B00446R000600100030-2
in classes seven and eight. The criteria for selection-out are the
standard of performance of the officer and the maximum period of time
in class as prescribed by the Secretary. Under current regulations the
maximum time in class for officers in class one is 15 years, for those
in classes two and three it is 12 years, and for those in classes four
through seven the period is 10 years.
The amendments made by this section retain the two criteria for
selection-out in the present law-standard of performance and the
maximum period in class. They extend the application of the selec-
tion-out principle to include career ministers as well as Foreign Service
officers in classes one through seven, Foreign Affairs officers in classes
one through seven, and Foreign Service taff officers in classes one
through six. The language is sufficiently broad to include staff per-
sonnel in classes 7 through 10 but the committee was advised that the
Department does not plan to use this authority for the junior nonpro-
fessional personnel.
Since this is a personnel procedure not widely understood, the com-
mittee gave considerable attention to the request to extend the appli-
cation of the selection-out principle. Contrary to popular interpreta-
tion, it does not rest upon the judgment of a single individual at a
single time. It is a process of comparative evaluation of an individual
over a period of years with others of the same class or rank and per-
forming approximately the namo functions. Equally important but
often overlooked is the fact that it is the same method by which indi-
viduals of outstanding merit are identified for promotion.
The procedures for determining individuals who should be promoted
or selected out are governed by regulations established by the Secre-
tary. Each year Selection Boards are established which consider one
or more complete classes in the Service. Their membership includes
not only more senior members of the Service but public members chosen
for their prominence in business, labor, education, and other private
sectors. Other foreign affairs agencies in the Government are also
represented. No member of a Board may servo 2 consecutive years.
Before beginning their deliberations the Boards receive precepts
or instructions setting forth procedures and factors to be considered
in evaluating officers. The precepts for the Boards that met in 1964
covered 35 pages. Using these precepts as a guide, the Boards exam-
ine each of the files of individuals eligible for promotion to the next
higher class. Generally they identify those whom they consider, on
a comparative basis, to be in the top 20 percent. At the same time they
identify those whom they consider to be in the low 10 percent, includ-
ing those officers who have failed to meet the standard of performance,
i.e., who are substandard. Ordinarily, it is not sufficient that an
individual fall within the low 10 percent on one occasion. He must bo
judged in the low 10 percent by a second Selection Board while he is
in the saino class. Beyond this is a review by a panel of senior officers.
Only when the panel has affirmed the judgment of the Boards is the
individual selected out.
Indicative of the modest use of the selection-out authority is the
fact that during recent years less than 2 percent of the Foreign Service
officers (the only group in the Department of State to which it is cur-
rently applicable) have been selected out. The Agency for Interna-
tional Development has a similar authority for its Foreign Service
Reserve personnel. With a Reserve complement of about 3,300, only
47 were recommended in 2 years for selection-out. Of these, 24 left
by resignation or retirement before selection-out had been completed.
The chairman of the Civil Service Commission, Iron. John W. Macy,
Jr., made this observation to the committee :
Any fears of wholesale dismissals by selection-out are contradicted
by the record of the Foreign Service in using the authority on a limited
conservative basis.
In this connection the committee noted with interest a recommenda-
tion included in the "Report on the U.S. Department of State" made
last year by the Special Liaison Committee of the American Legion:
The Department should intensify its efforts to weed out mediocre per-
sonnel by increasing materially the number selected out on the basis of
Selection Board evaluations.
The committee is aware that the procedures used in evaluating the
work of individuals are established by regulations and not by law and
in the case of the Department of State have ~een limited in their
application to Foreign Service officers. It sought the views of the
Department as to its proposed operation of selection-out to other cate-
gories of Foreign Service personnel including those in the other
foreign affairs agencies who would be included by the provisions of this
bill. The Deputy Under Secretary of State for Administration, Iron.
William J. Crockett, provided the committee with this explanation:
Therefore, these officers would be retained in the Service, even if they
were not promoted, as long as their performance was satisfactory.
There is no plan at this time to apply selection-out to Staff support;
i.e., clerical and technical personnel of the Foreign Service Staff, either
those in the worldwide service or those in the home service * * *.
It is not planned to apply selection-out to categories of personnel
with limited or temporary appointments. The Foreign Service Act
already contains authority for the termination of officers and employees
from limited or temporary appointments.
The committee recognizes that the principles of personnel admin-
istration included in this section represent a departure from those
generally applicable to civilian personnel. It considered carefully
and at length the advantages and disadvantages, both to the individ-
ual and to the Government. In recommending the inclusion of this
section it is convinced that the interests of the individual are ade-
quately protected and the interests of the Government are best served
by the use of the authority conferred by this section.
Section 21. Selection-out bene fits
This section amends section 634 of the act. relating to selection-out
benefits. Since selection-out is currently limited to Foreign Service
officers, such benefits are available only to such officers. The particu-
lar typo of benefit as distinct from the amount is determined by the
class in which the officer was serving when he was selected out.
Under existing law Foreign Service officers of class 1, 2, or 3 who
are selected out are entitled to an immediate annuity computed in ac-
cordance with the provisions of section 821 of the act. The amend-
ment made by subsection (a) of this section extends this benefit to
Foreign. Affairs officers of class 1, 2, or 3 and to Foreign Service Staff
officers of class 1 who are participants in the Foreign Service retire-
ment system.
In the case of Foreign Service officers in class 4, 5, 6, or 7 who are
selected out existing law provides that such officers are entitled to
severance benefits computed at one-twelfth of a year's salary for each
year of service but not to exceed a total of a year's salary. In addi-
tion they may elect to receive a refund of contributions made to the
Foreign Service retirement fund or to take a deferred annuity pay-
able at age 60 provided that at the time of separation they have 5 or
more ,years of creditable service. The amendments made by subsection
(b) of this section extend these benefits to Foreign Affairs officers in
class 4, 5, 6, or ,7 and to Foreign Service Staff officers in class 2, 3, 4, 5,
or 6 who are participants in the Foreign Service retirement system. If
an officer who is a participant and is selected out. from one of the classes
enumerated in this subsection dies before reaching age 60, his death
shall be considered a death in service within the meaning of section 832
of the act which relates to death in service.
Severance payments under existing law are paid from the Foreign
Service Retirement and Disability Fund. As amended by paragraph
(3) of this subsection such payments would be made from the Salaries
and Expenses appropriation of the Department of State and from the
corresponding accounts of the other foreign affairs agencies to which
the provisions of this act are applicable.
Subsection (c) provides that any officer or employee who is not a
participant in the Foreign Servico retirement system and who is
selected out under section 633 may be granted the severance benefits
made available under section 634(b) (1 The definition of "partici-
pant" is extended by section 25 of the bill to include Foreign --lffairs
officers and Foreign Service Staff officers and employees who have
completed at least 10 years of continuous service in one or more of the
three foreign affairs agencies included in this bill. Pending the com-
pletion of the 10 years, the individual is a participant in the civil serv-
ice retirement system. Should he be selected out while he is a partici-
pant in the latter retirement system, he would receive the benefits that
accrue to one who is involuntarily separated.
Section2I2. Foreign Service officers retired from class 7 orb
This section amends section 635 of the act which relates to the retire-
ment of Foreign Service officers from class 7 or 8. The amendment
conforms to that made by section 12 of this bill which authorizes the
Secretary to recommend for appointment directly to class FSO-6 a
candidate who has passed the FSO-8 examination and for whom, in
the opinion of the Secretary, such appointment is appropriate on the
basis of age, experience, and other qualifications of the candidate.
This amendment places all FSO's appointed to a class under the pro-
visions of section 516(b) as amended in the same probationary status.
Any new officer appointed directly to class FSO-7 or 6 would occupy
probationary status until promoted to class FSO-6 or 5, respectively.
Section ?J8. Separation f:: r cause
This section amends section 637(a) of the act which relates to sepa-
* * * Foreign Affairs officers in the home service would compete for ration for cause. Separation for cause is distinct from selection-
colleagues. or selection-out on a functional basis with their functional
colleagues. The standards for selection-out would be applied differ- out. The latter is an evaluation of an officer or employee in compari-
ently, however, to different groups. The maximum time-in-class stand- son with others in his class. Separation for cause is an action against
and (promotion-up or selection-out) would be applied only to Foreign aSpeCl~fic, I~ri_dl V1C1Ual based upon S ecific charges made against him.
Service officers and to a e'doF?is Fie 3/06 _
a el l O _OUfi00r1000i301-2 Under procedures
would compete with them'6'rt o Gases of comparab7liEyo1u3lc`ElTddi established b departmental re *ulations the officer is fulinished a
career field. The standard of low ranking in class or functional group by h
would also be applicable to Foreign Service officers and to those officers formal statement of the charges against him, and he is granted a rea-
in other categories who, because of their functional field, are competing sonable period of time, ordinarily 30 days, in which to reply. If the
 Approved For Release 2007/03/06 : CIA-RDP67B00446R000600100030-2
(Continued from preceding page)
charged has the right to be present at the hearing, to present informa-
tion orally or in writing, to be accompanied or assisted by a represent-
ative of his own choosing, and to present witnesses. When the panel
has heard the evidence and has taken testimony, it prepares a record
of the hearing and its report. The report contains the findings of the
panel with regard to the charges and is submitted to the full Board
of the Foreign Service. The Board then renders its own opinion,
based upon the verbatim panel record, whether the unsatisfactory per-
formance of duty or such other cause has been established at the hear-
ing, and it makes its recommendations to the Secretary of State. The
Secretary then makes the final decision as to whether the officer or
employee is to be separated and the officer or employee charged is
notified in writing of the Secretary's decision. During the last ,1 years
the Board of the Foreign Service has acted on five cases involving sepa-
ration for cause.
The amendment made by this subsection is intended to provide for
a reasonably expeditious disposition of the case. A request for a
hearing by the accused must be made within 30 days after he has re-
ceived notice of the proposed separation. The Board of the Foreign
Service which serves as a hearing board in separation -for-cause
actions must render its decision within 120 days aer the individual
has requested a hearing. Should either party request, for good cause
shown an extension of that time, the Secretary may grant one exten-
sion of 60 days beyond the original 120 days. This section is not retro-
active in its application.
Section 21. Impri.soned alien employees
This section adds a new section 664 to the act. It provides the Sec--?
retary with authority relating to the relief of certain alien employees
similar to the authority now provided by the Missing Persons Act foti'
the relief of U.S. citizen employees. It would apply to alien employees
apppointed under section 541 of the Foreign Service.Act as well as to
alien employees under personal service contracts in accordance with
the provisions of title 5, United States Code, section 170g(c). This.
section would authorize the Secretary to make appropriate payments
when it is determined that as the direct result of the alien's employ-
ment by the U.S. Government he has been imprisoned by a foreign
government. When such a determination has been made, the alien em-
ployee's salary, including normal within-class increases and related
fringe benefits, would be paid to the employee or his dependents as if
he had continued in the employment of the U.S. Government. It
does not authorize compensation for any other losses such as confisca-
tion of property.
The primary criteria the Secretary will use in determining the
eligibility of an individual for compensation under this section is
whether such individual was imprisoned as a result of his employment
as an alien employee of the United States. If so, the Secretary may
compensate such individual (even if that individual is no loner an
alien employee of the United States) under such terms and conc~iitions
as the Secretary deems appropriate. This latter provision gives the
Secretary sufficient authority to deny such compensation to individuals
who may have received similar compensation by way of private relief
legislation enacted by the Congress. It is anticipated that the enact-
ment of this provision could reduce or eliminate the necessity for pri-
vate relief bills of this nature.
In justification for this new authority the Department advised the
committee that it is aware of about 30 former alien employees of the
Department of State who since World War II have suffered imppris
onment or detention because of their employment by the U.S. Gov-
ernment. Some of these employees have been imprisoned for as long'
as 12 years before being released. The provisions of this section will
make it possible for the U.S. Government to show its interest and ap-
preciation for alien employees who have suffered or may suffer as a
result of their service to this Government. The authority of this sec-
Foreign Service Staff personnel. Subparagraph (B) includes the
Foreign Service Staff personnel of the three agencies who are not now
in the Foreign Service retirement system. Subparagraph (C) deals
with future appointees as Foreign Affairs or Foreign aervice Staff per-
sonnel who at the time of appointment agree to worldwide service.
As the provisions of section 29 make clear, present employees who
elect to transfer are not obligated to serve abroad without their written
consent. But the committee believes that their inclusion in the Foreib
Service retirement system will serve as an incentive for them to elect
to transfer into the Foreign Service system.
Participation in the Foreign Service retirement system is manda.
Cory for individuals included in each of the above three groups after
they have completed 10 years of continuous service (exclusive of mili-
tary service) as an officer or employee of one or more of the three
foreign affairs agencies. All immediate previous continuous service
both at home and abroad with one or more of the three foreign affairs
agencies counts toward the qualifying 10 years. Military service does
not count toward the qualifying 10 years but upon transfer into the
Foreign Service retirement system it may be credited toward retire-
ment.
Paragraph (2) is a " hase out" provision to take care of the older
officers and employees who mandatorily become participants under the
provisions of paragraph (1). This will permit older officers and
employees who become participants to retire at a later age than the
mandatory age of 60.
Paragraph (3) is an incentive to older participants who transfer
into the b oreign Service system under section 29 to retire before
reaching the mandatory age of 60. As soon as they qualify for par-
ticipation in the Foreign Service retirement system by virtue of 10
years of continuous service in one or more of the three foreign affairs
agencies and reach age 57, they may apply for voluntary retirement.
Subsection (e) provides that any participant in the Foreign Service
retirement system who is appointed a Foreign Affairs officer or a Staff
officer or employee without a break in service in excess of 3 calendar
days remains a participant in that retirement system. All Foreign
Service officers on appointment become participants in the system.
There may be occasions when it is to the advantage of the officer or of
the Department to have him transfer to a different category such as
Foreign Service Staff. Under this subsection such an officer may con-
tinue his participation in the Foreign Service retirement system even
though his total length of service may not qualify him for participation
in the category into which he transfers.
Subsection (b) of the bill delays the effective date of the amend-
ments made by subsection (a) of this section until 1 year after the
enactment of this act. The purpose is to give the foreign affairs agen-
cies affected by these provisions an opportunity to make the many ad-
ministrative changes necessary for the implementation of this section.
The only exception to this effective date is in the case of those Foreign
Affairs officers and Foreign Service Staff officers and employees who
have already completed their 10 years of qualifying service before
such effective date. They may elect to become participants effective on
the first day of the second month following the date of their application
for earlier participation.
Section 26. General provisions
This section amends section 911 of the act which relates to general
provisions including travel and related expenses by adding a para-
graph 11 to that section. Since the passage of the Foreign Service Act
in 1946, section 911 has been amended on several occasions to meet
changing conditions and circumstances. In the interests of the Serv-
ice the Secretary needs broader authority to authorize the travel of
personnel and their dependents for purposes of training, representa-
tion, rest and recuperation, and personal emergencies. Present au-
thority is also inadequate in cases where it is necessary to bring mem-
bers of an officer's family to the United States en route to a new post
of assignment for purposes of training and orientation or to remove
dependents from the country of an officer's assignment for reasons of
state. The new language is sufficiently broad to permit the payment
of the cost of preparing and transportin g to an a
ro
riat
l
pp
p
e p
ace
Section 25. Purtioipanzs of interment the remains of an officer or employee or of members of his
family who may die in the Service. either in the United States or
This section adds two subsections to section 803 of the act which abroad.
relates to participants in the Foreign Service retirement and dis- The phrase "without regard to the provisions of this or any other
ability system. Under existing law participants in that system are law" has been included to eliminate certain confusion which has existed
restricted to two major categories of personnel: (1) All Foreign Serv- with respect to the Secretary's authority under this section to pre-
ice officers, and (2) Foreign Service Staff officers and employees of the scribe Foreign Service travel regulations as such authority relates to
Department of State who have 10 or more years continuous service. the Administrativ. Expenses Act of 1946 and to the Travel Expense
Those with less than 10 years of service as well as all Foreign Service Act of 1949. It is not included to permit the circumvention of provi-
Staff officers and employees of USIA and AID are participants in the sions of law regaraing the use of American-flag ships or of American-
civil service retirement system. Although the two systems have been flag aircraft.
similar in benefits since 1960, the Foreign Service retirement system
permits voluntary retirement, and requires mandatory retirement, at #eotion27. Commissary service
an earlier age in recognition of the fact that its participants have This section adds a new subsection to section 921 of the act relating
served most of the' ear ab o,,,}}cc77rt~~0 ~~l fit~l ptq sin-Government-o
to participants s ants who A+ ~~ tl ~af per iled
r i ui ate ecause o t re c osmg of a post or for any,
he amendments made by subsection (a) accord to three groups of other reason the disposal of assets that remain after the payment of
present and prospective officers and employees of the three foreign creditors is handled in a variety of ways. Sometimes they are clis-
affairs agencies identical treatment in the matter of participation in tributed to members. nth t; , +,. i ....... ............... -.
 Approved For Release 2007/03/06 : CIA-RDP67B00446R000600100030-2
Jar operations elsewhere in the world. It also permits a similar use
of funds contributed by, or otherwise derived from, a commissary be-
cause of changed conditions.at a post. For example, a sharp reduction
in the American staff at a post may justify a partial liquidation of the
commissary rather than its complete dissolution. Assets that. have
accumulated since January 1, 1950, are included in this subsection in
order that funds in the amount of $128,164.51, derived from the closing
of the employee-operated commissary at Seoul, Korea, in June 1950,
.and which have been held in a suspense account since that time, may be
made available to assist other commissary operations.
Section 28. Medical services
Section 27 adds two new sections 944 and 945 to the act.
The new section 944 authorizes the Secretary to continue medical
benefits under part E of title IX (medical services) for officers and
employees beyond the date of separation and'for dependents beyond
the date of the death or separation of an officer or employee whenever
it is considered in the public interest to do so. Under existing author-
ity medical benefits for officers and employees cannot be continued
beyond the date of separation from the Service and dependent benefits
cease automatically at the time the employee dies or is separated from
the Service. There have been a few instances in which a dependent
who has been in a hospital at the time the sponsoring employee died
or was separated has had to assume responsibility for all care ren-
dered after the date of death or separation. Employees and depend-
ents on the verge of receiving treatment have been denied it because of
the mandatory separation or death of the employee. The law presently
accords to eligible dependents the identical medical benefits granted
to employees except for (1) the first $35 of the cost of hospitalization
or similar treatment, and a 120-day limit on the period of treat-
ment at U.S. Government expense for a single illness or injury. It is
proposed to continue these limitations under the authority granted by
the new section 944.
The new section 945 provides the Secretary with broad general
authority for cooperation in, or interchange of, medical and related
services abroad between the U.S. Government and foreign govern-
ments or international organizations when he considers such coopera-
tion or interchange desirale to effectuate the purposes of those sections
of the Foreign Service Act dealing with medical services. By this
means provisions related to medical treatment, travel for medical pur-
poses, physical examinations, and inoculations now authorized for
U.S. citizen employees and their dependents may be made available
to the employees of foreign governments or international bodies or
may be providea tor u.s. citizen employees ana tnelr aependents
through the facilities of foreign governments or international orga-
nizations.
Provision would be made for the payment and transfer of U.S.
funds or goods and the receipt of funds from other governments or
international organizations in connection with such arrangements.
Any person eligible to receive medical and related services under
part E of the act who has such illness or injury aggravated as a result
of an arrangement entered into under the provisions of. section 945
would, for Ole purposes of all Federal legislation, be considered as
if he had incurred or had aggravated this illness or injury under the
Department's medical program.
Section 29. Transfer of personnel
This section provides the President with authority to issue the neces-
sary Executive order or orders to carry out the objectives of this bill,
namely, to develop a single personnel system in each of the three
agencies to which this bill is applicable. The committee has specif-
ically limited the application of this bill to the Department of State,
the U.S. Information Agency, and the Agency for International De-
velopment. It deleted all references to the personnel of any other
agencies or departments. It further restricted the inclusion of other
agencies by deleting the reference to officers and employees "in or
under" these three agencies and substituting officers and employees
"of" these agencies. The purpose is to exclude the Arms Control
and Disarmament Agency, the Peace Corps, and any other agencies
that may have a relationship to the three specified agencies.
While the committee is desirous of accelerating the concept of a
single personnel system in each of the agencies, it is aware of the con-
cern and interests of individuals who presently enjoy the advantages
of the civil service system. After the President has initiated the trans-
fer authority given him by this section, the determination rests with
the employee whether to avail himself of the opportunity to transfer.
The section makes clear that the employee cannot be transferred from
his present employment category to one of those in the Foreign Serv-
ice system without his written consent. If he elects to transfer, he
will not be subjected to any examination. The presumption is that
he has already established his qualifications. He will. be transferred to
In _u -pay status
Section 30. Chief of mission
This section is intended to strengthen the role of the Chief of Mission
as the official responsible for the overall performance of U.S. person-
nel drawn from many departments and agencies who are stationed in
the country to which he is accredited. Each Government employee
is subject to periodic reports, usually prepared on an annual basis
his supervisor. These become part of the individual's personnel
land form the basis for promotion and salary increments. Because
they are directed to different agencies other than the Department of
State, there may be no 'opportunity for the Chief of Mission to incor-
porate his own assessment of the individual's performance. The lan-
guage of this section is intended to encourage the Chief of Mission to
make such reports at any time he deems them appropriate. They
may be favorable or unfavorable. They are not intended to be rou-
tine in content but to incorporate comments on any marked devia-
tion from average standards of work and conduct that reflect favor-
ably or unfavorably on the United States.
There have been occasions when a particular officer or employee
abroad has regarded the comments of his rating officer as biased or
inaccurate. In such cases he may request the Chief of Mission to for-
ward to the appropriate department or agency through channels the
Tatter's own comments.
The language of this section is sufficiently flexible as to leave to the
judgment of the Chief of Mission the determination of the frequency
and of the contents of reports. on personnel serving in the country to
which he is accredited.
The committee has incorporated this section as an evidence of its
continued concern that the reports of the Chief of Mission involving
personnel should be the basis for appropriate action by the agency
concerned.
Section 31. Regulations
This section makes the usual provisions for the continuation in
force of existing rules and regulations until such time as they are
revoked, modified, or superseded by regulations made in accordance
with the provisions of this act, unless they are clearly inconsistent
therewith.
Section 32. Inapplicability of certain laws
This section makes inapplicable to the officers and employees of the
three foreign affairs agencies included in this bill the provisions of
four basic laws that cover civil service personnel : (1) the Civil Service
Act of 1883, as amended; (2) section 6 (a) and (b) of the Lloyd-La-
Follette Act of 1912, as amended; (3) the Veterans' Preference Act of
1944, as amended; and (4) the Classification' Act of 1949, as amended.
Those individuals presently covered by the various provisions govern-
ing civil service employment may elect to transfer under section 29
of this bill to the foreign affairs personnel system to which the pro-
isions of the first, second, and fourth laws are inapplicable. The pro-
tection they may have under the Veterans' Preference Act, and in the
case of USIA employees under section 1007 of the U.S. Information
and Educational Exchange Act of 1948, is incompatible with the
proper functioning of Selection Boards whose responsibility is to de-
torrnne the most meritorious as well as the most ineffective individuals.
Further, veterans' preference is not applicable to Foreign Service
officers since they are appointed by the President by anR with the
advice and consent of the Senate. Foreign Affairs officers whether
similarly appointed or appointed by the President alone or by the
Secretary of State are equated with Foreign Service officers in terms of
professional standards and responsibilities.
In making the transfer of present employees in the three foreign
affairs agencies a matter of individual choice rather than mandatory,
as originally proposed. Employees will give full consideration to the
distinctive features and merits of both personnel systems before mak-
ing their decision.
Section 33. Annual and Side Leave Act
Subsection (a) amends section 205 of the Annual and Sick Leave
Act by adding a now subsection. The new language provides that, for
it period not to exceed 1 year, no charge against leave shall be made
for any absence due to injury or illness sustained abroad by an officer
or employee as a result of hostile activity or clearly caused by the fact
that he was located abroad. The provision will permit an absence
without charge to leave in those extraordinary situations in which offi-
cers and employees sustain se,-ious illnesses or crippling injuries from
physical violence and unavoidable involvement in. wars, guerrilla and
militant insurgent situation=;,or localized hostile mob actions. Simi-
larly, it will protect the en:,loyee's earning power in those situations
where prolonged disability results from ifiness which can be attrib-
uted solely to the fact that he Was serving abroad and which would not
have been incurred had he remained in the United States. Personnel
serving abroad particularly in the tropics are ex
osed t
id
p
o a w
e range
granted b this
,nt~P00/U3/ ciimFl-t~t,,aEz1 while
lire , - / -? r. w ' '-' a uLu relaceu care.
I apply only to employees on the roll of one of these three Subsection (b) makes the amendment in subsection (a) retroactive
agencies at the time this bill is enacted into law. Thew do notr,nly to January 1965. The committee was advised thn+ -;- +i, + a,.+.,
 Approved For Release 2007/03/06 : CIA-RDP67B00446R000600100030-2
including the terrorist-type attack against the chancery in Saigon.
The committee believes that those employees should not be denied the
full benefits conferred by this section.
Section 3Ir.. Overseas Differentials and Allowances Act
This section amends section 231 of the Overseas Differentials and
Allowances Act to authorize the payment of up to 50 percent of basic
compensation to officers and employees serving in a foreign area where
there is unusual danger from hostile activity. The current situation in
Vietnam exemplifies the need and the justification for an additional
allowance for personnel in strife-torn areas. In addition to the dan-
ger; of violence attendant upon assignment in Saigon employees are
required to travel over many parts of the country, much of -which
is under Vietcong attack.
Section 3.. Department of State management fund
This section adds a new section 14 to the act entitled "An act to
provide certain basic authority for the Department of State" enacted
in 1956. The new section authorizes the Department to establish a
Management Fund.
The Department provides administrative support services to many
programs financed by different appropriations.including those of AID,
ZTSIA, Defense, Peace Corps, and many other Government agenci.
These common services are funded from the "Salaries.and expen;,
appropriation of the Department which is reimbursed from the otl>
appropriations available to the Department and other agencies in
cordance with comprehensive support agreements. In fiscal year':
expenses for shared administrative support services amounted to nu
than $100 million. The settlement of accounts covering the last
or months of the fiscal year are frequently not made until after,'
close of that fiscal year, thus making unavailable to the Departm,.
for obligations reimbursed sums due it for rendering administer
support to other agencies.
The establishment of the Management Fund would permit the nc
ing of funds from two or more appropriations in order to provide
improved method of managing, financing, and accounting for add,;
istrative support and other reimbursable services. Funds would
transferred to the Management Fund from other appropriation;
much the same manner as presently followed in transferring fundw
the Department's "Salaries and Expenses" appropriation.
The language in this section is not an authorization for an approi;-
ation. It would authorize the carryover from one fiscal year to i
next of not more than $1 million which would permit a more econm:
cal and effective procurement program and the replenishment of supp:
inventory levels as well as the expeditious handling of emergency-tv,
situations.
r
uFederal Times" Newsman Reviews Hays Bill
Bill Andronicos, writing in the Federal
Times, made this clear and accurate analysis
of the Hays Bill:
HE primary objective of H.R.
6277, as reported by the Com-
mittee, is to facilitate the es-
tablishment of a single personnel
system within each of the three
agencies most actively engaged in
foreign affairs-the Department
of State, the U.S. Information
Agency, and the Agency for Inter-
national Development.
Presently, these three agencies
conduct their activity under two
personnel systems-one operating
under civil service laws and the
other under the Foreign Service
Act. The ground rules governing
appointments, assignments, pro-
motions, separation, and retire-
ment are different for each sys-
tem and, to some degree, for each
of the agencies.
The Committee has specifically
limited the application of this bill
to these three agencies-and has
deleted all references to the per-
sonnel of any other agencies or
departments.
The Hays bill adds neither jobs
nor personnel to the payroll. It
simply gives Civil Service em-
ployees in State, AID and USIA
the option either to remain in their
Civil Service jobs or to transfer to
new Foreign Affairs positions in
the Foreign Service. Those who
transfer and are ordered selected
out during the first five years
could appeal their cases to the
Civil Service Commission.
Those who refuse to transfer
would retain their present Civil
Service jobs and continue under
the Civil Se3* ov defimrh2@I se
'1010# ; -' 44 00678'Wloo 3o- ognized that others
istration, the bill could prove the
forerunner of a more liberal re-
tirement system for all federal
employees. Civil Service em-
ployees and Foreign Service re-
servists would have to be under
Civil Service retirement for 10
years before they could transfer to
the Foreign Service retirement
system, but their service would
count toward Foreign Service re-
tirement.
This means that the bill, as it
stands now, would afford some
16,000 Civil Service and Foreign
Service reservists in State, AID
and USIA the opportunity to retire
at 50 after 20 years
as Foreign. Service
permitted to do.
service, just
officers are
The overall bill is based on the
premise that voluntary transfer
into the Foreign Service personnel
system of those now employed un-
der civil service provisions is the
most equitable way to effect a
transition from a dual to a single
personnel structure. At the same
time, the bill permits the develop-
ment of uniform personnel policies
among the three agencies while
leaving to the heads of these
agencies the management control
of their own people.
If and when the measure is
passed, it also would increase
benefits for Foreign Service em-
ployees who serve in dangerous
areas.
For example, the maximum s-,L-
ary differential would be raised
from 25 to 50 percent-and em-
ployees in Vietnam definitely would may want to enlarge their profes-
be eligible to receive it. sional experience by overseas
In addition, the federal govern- service at least for one tour of
embrace several employees w-:
were injured when the America
Embassy in Saigon was bombe:
earlier this year. Two of the em-
ployees are threatened with los:
of sight as a result of the injuries
--and other employees serving;-.
Vietnam have been afflicted wit
tropical disease.
Also, Foreign Service personre:
or members of their families wh;
continue
medical
ment.
to receive hospital and
care after their retire.
Under existing authority, med-
ical benefits for officers and em-
ployees cannot be continued be-
yond the date of separation from
federal service, and dependent
benefits cease automatically a,
the time the employee dies or is
separated from the service. As
a result, there have been in-
stances in which a dependent who
has been in the hospital at the
time the sponsoring employee died
or was separated has had to as-
sume responsibility for all care
rendered after the date of death.
or separation.
Other outstanding provisions
contained within the bill follow:
*Civil Service employees who
choose to transfer into the For-
eign Service will not be subject
to an examination, as originally
had been proposed by the Hoover
Commission.
*Transferees
w1411VU6 c11a1-ge ,.o leave xor em- sons to stay in the United States.
likewise would continue for the ployees who become diseased or -*Foreign Affairs officers in the
duration of their five, nr 1 n-??Aa,
 Approved For Release 2007/03/06 : CIA-RDP67B00446R000600100030-2
dent could either appoint those in
the remaining five classes or dele-
gate his power to the Secretary of
State.
*The Board of Foreign Service
Examiners and the Board of For-
eign Service would be reconsti-
tuted. Both had been abolished dur-
ing a recent State Department re-
organization plan--and the move
spawned fears that examinations,
promotions, selections and the like
would be made on other than a
competitive-merit basis.
*The Director-General of the
Foreign Service would be appointed
by the President and confirmed by
the Senate. He would serve as the
chief employment officer for all
three agencies.
? A chief of mission shall pre-
pare and submit reports on the
service of any employee serving
overseas under his command.
*The Secretary of State is em-
powered to appoint private citizens
as well as federal employees as
Foreign Service Reserve officers.
The appointments would bear no
time limitation, and would be made
on the basis of merit and fitness.
?Insofar as travel is concerned,
the Secretary is provided broad
authority to pay the travel ex-
penses of officers and employees
of the service. This includes the
cost of transporting furniture,
household and personal effects,
cost of transporting his automo-
bile, the travel expenses for mem-
bers of his family--and for a host
of other similar expenses involv-
ing appointments, service and sep-
aration.
*Moreover, the federal govern-
ment would pay travel and related
expenses of Foreign Service fam-
ilies to places such as Bangkok
and Hong Kong to visit their hus-
bands and fathers stationed in
South Vietnam where dependents
are not allowed.
TO date, the National Federa-
tion of Federal Employees stands
out as the chief opposition to the
otherwise strongly-backed Hays
bill.
The union has charged repeat-
edly that they had been refused
a chance to testify before the
House Foreign Affairs subcom-
mittee on the wide-sweeping bill
which would remove civil service
and veterans preference protec-
tion in the three major foreign
affairs agencies. The union also
is concerned about the bill's se-
lection-out and removal proced-
ures. A number of veterans' or-
ganizations also have opposed the
bill.
However, proponents of the
measure consistently point outthat
one of the most persistent causes of
misunderstanding--a n d perhaps
dissatisfaction--is a failure to
recognize that the Foreign Serv-
ice is a career system, providing
significant career protection and
benefits to its employees. State
Department officials continue to
stress that the Department does
not contemplate the destruction of
any career system. Rather, it plans
to strengthen and improve it.
Consequently, personnel with
career status undertheCivilServ-
ice System will be transferred
to the Foreign Service as domestic
"Foreign Affairs Officers" or Staff
with career status in those cate-
gories. Personnel who have not
completed their probationary
period at the time of the trans-
fer will be required to complete
their probationary service before
being granted career status.
Having achieved career status,
Foreign Affairs officers and staff
are protected against arbitrary
dismissal by section 637 of the
Foreign Service Act, which pro-
vides for a hearing by the Board
of the Foreign Service before dis-
missal actions can be taken.
Congress Approves
$3.36 Billion Aid
Authorization Bill
A $3.36 billion foreign aid au-
thorization bill was cleared by
Congress on August 24.
Congress set a ceiling of $2.19
billion on economic aid, and $1.17
billion on military aid.
In signing the bill September 6
at his Texas ranch, President
Johnson described the foreign aid
program as "a vital part of United
States foreign policy in four ad-
ministrations of both parties since
the end of World War II."
The authorization measure is
limited to Fiscal Year 1966 in-
stead of two years a5 voted orig-
inally by the Senate.
However, the House of Repre-
sentatives is expected to give seri-
ous consideration next year to au-
thorizing foreign aid legislation
covering two or more years.
A Senate-House conference re-
The report added, "It was the
consensus of the Committee of
Conference that there have been
so many changes in the world
situation since 1961 that a most
careful review of the basic prem-
ises behind the foreign aid pro-
gram is overdue."
Uniform Security
Rules Are Adopted
By State, AID, USIA
New, uniform security regula-
tions took effect on a world-wide
basis September 1 for the State De-
partment, the Agency for Interna-
tional Development (AID), and the
United States Information Agency
(USIA).
The regulations, which were set
forth in Chapter 900, Foreign Af-
fairs Manual, Volume 5--Com-
munications and Records, depart
considerably from prior regula-
tions, and introduce new proce-
dures and forms to control and
record the processing of classi-
fied documents.
Approximately 300 State and AID
employees, including Principal
Unit Security Officers, Unit Secu-
rity Officers, Top Secret Control
Officers. and their alternates. at-
s _ -- ulations in the West Auditorium of
conferees could not a re t
blanket two-y e a ApP{"i~z Pti"o? el ase 200' /O 1106- _ CIA-RDP67B00 46R0GM0 1OO3Os2August 23.
under present conditions, they The briefing was conducted by
were not irrevocably opposed to LONG SERVICE--Fraser Wilkins, Inspector Alfred Harrison, Chief of the Edu-
~:..a r _ :- sa r.. a r General of the Foreign Service, shakes hands