DEPARTMENT OF DEFENSE BILL TO AMEND TEMPORARY STATUTES RELATING TO BENEFITS IN CASES OF INJURY, DEATH OR DETENTION

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP58-00597A000100040054-0
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 3
• Document Creation Date: December 16, 2016
• Document Release Date: October 13, 2004
• Sequence Number: 54
• Content Type: MEMO

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MEMORANDUM FOR: Legislative Counsel
SUBJECT : Department of Defense Bill to Amend Temporary Statutes
Relating to Benefits in Cases of Injury, Death or
Detention
REFERENCE : Memorandum from Legislative Counsel to AD/P, dated
23 November 1954, same subject
1. In accordance with your request, we have reviewed the
Department of Defense bill which was submitted to the Agency by the
Bureau of the Budget for review and comment.
2. In the course of our comparative review of the existing
temporary statutes and the proposed legislation (see Tabs A, B and C),
the following features of significance to the Agency have been observed:
a. Coverage of U. S. contractors under War-Risk Hazards
Act (42 U 1701-1717).
(1) The bill proposes permanent legislation authorizing
in time of war the payment to U. S. contractors of (a) an
"employees' compensations type of coverage in the case of
an injury or death resulting outside the U. S. from a
situation arising out of a war-risk hazard, and of (b) a
"missing persons" type of benefit in the event of detention
by an enemy. The bill covers persons engaged by the U. S.
under a contract for personal services outside the conti-
nental United States.
(2) Other features include the coverage of aliens,
and elimination in most cases of the "performance of duty"
criterion (required in the Employees' Compensation Act)
in establishing eligibility for benefits,
b. Extension of War-Risk Hazard benefits to Federal
Employees in 7e7-TM .
(1) The proposed legislation would authorize the pay-
meat of employees' compensation benefits to Federal enloyees
in war-time without regard to the "performance of duty" con-
cept provided the illness, death or detention by an enemy
occurs under employment conditions recognized as being a
"war-risk hazard" (as defined in the War-Risk Hazards Act).
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(2) The temporary statute lapsed on 1 July 195L, and
the proposed bill would make the legislation applicable in
any period of war,
co Provision of Benefits of Lon shoremen's and Harbor
Workers' Compensation Act to S. contractors 2 US-
(1) The benefits of this Act are currently provided
certain types of U. S. employees and employees of U. S.
contractors who work on U. S. military installations and U. S.
public works projects outside the continental United States
conducted by any U. S. agency or corporate entity. The
proposal of the Department of Defense would extend the
coverage of contract employees and employees of U. S. contractors
working outside the U. S. by deleting the limiting factor now
applied to such projects, i.e., public works activity.
(2) It would therefore appear that the proposal would
extend the workman compensation benefits of the Longshoremen's
Act to independent contractors of the Agency and to employees
of contractors, sub-contractors and subordinate contractors.
Such coverage would include aliens, as well as U. S. citizens.
3. Our comments on the proposed legislation are conditioned
upon the belief that our interpretations of this complex subject should
be reviewed and confirmed by the Office of the General Counsel. We
believe, however, that the proposed legislation would pose major
security problems if enacted in its present form--particularly if it
includes coverage of aliens as contemplatede
a. If most Agency covert personnel are made eligible for
disability and death benefits under one or more provisions of
the bill, major difficulties in processing claims in a secure
manner can be anticipated. For example, the coverage of independent
contractors under !2 USCA 1701-1717 and 42 USCA 1651-165j. ,would
necessitate the submission of information on such personnel to
the Bureau of Employees' Compensation,
b. The problem of protecting intelligence sources and
information would be materially increased by the inclusion of
coverage of aliens, including those engaged in Agency projects
and corporate activities of a covert naturee
co The proposal contains in part the feature of payments
to dependents. Coripliance with this arrangement would be
extremely difficult in the case of dependents who live in
sensitive areas.
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d. In certain of its provisions, the bill appears to
embrace unwitting personnel and employees of corporate entities
who contract with the Agency.
it. Although we generally favor the extension or liberalization
of benefits for Agency employees and other types of personnel, we
believe that the legislation in its current form could not be admin-
istered securely by the Agency*
a. In this connection, we recommend that the Office of
the Genera]. Counsel and the Security Office be requested to
review and assess the respective legal and security implications
of this bill before comments are forwarded to the Bureau of the
Budget.
b. We further recommend that the Agency seek modification
of the proposed bill as follower
(1) Exclusion of aliens from coverage.
(2) Insertion of a provision in the bill which will
authorize CIA, or sensitive agencies generally, to omit
coverage in the contract, or to obtain a specific waiver
in the contract, of one or more of the coverages in the
bill when necessary for the protection of the national
security.
25X1
CI
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