PROPOSED OVERSEAS ALLOWANCES ACT OF 1955, AS REVISED.

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP59-00224A000100690005-5
• Release Decision: RIPPUB
• Original Classification: C
• Document Page Count: 3
• Document Creation Date: December 9, 2016
• Document Release Date: August 25, 2000
• Sequence Number: 5
• Content Type: MF

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I . st L
MEM3RANDUM FORS Legislative Counsel
SUB.TECT s Proposed overseas Allowance Act of 1955, as revised.
1. The subject bill is a revision of the original draft which was re-
viewed by this Office earlier in this session of Congress (reference our memo-
randums to you dated 23 December 1954 and 28 February 1955).
2. The important changes are as follows:
a. The section relating to education allowances and transportattion
for educational purposes has been rewritten in substantially the s me
language as Public Law 22 (Foreign Service Act Amendments of 1955). This
removes the requirement for five years' overseas service before an 4:m-
ployee is eligible for the transportation benefits. Also, the Act pro-
vides for paying educational transportation costs for personnel assigned
to the Panama Canal Zone. Education allowances are not to be paid .to
personnel assigned to territories. This coverage has never been con-
sidered in any draft of the bill, and the 'White House Task Force states
that no agency has shown a need for such an allowance in territoria.
areas. With respect to education allowances, we should like to point
out, however, that the Task Force evidently takes the position that the
authority to pay such allowances is presently available to all ageaoies
whose allowance authority stems from the Appropriation Acts which pcoviiae
for payment of cost of living allowances "similar to" Section 901 (2) of
the Foreign Service Act. (3ee Section 221 (4), page 6, of the attad nt,
entitled "Analysis of the Proposed Overseas Allowance Act of 1955119 and
the beginning paragraph on page 8 of the attachment entitled "Allowances
and Differentials", dated 14 June 1955?) Since the CIA Act speoificell -
authoriaes cost of living allowances in conformance with Section 901(2)
of the Foreign Service Act, it appears that the Task Force would take
the position that CIA presently has the authority to pay
anees. This may be a very important consideration since at this late
date there is some doubt as to whether the subject bill will be parsed
during this session of Congress.
b. The storage provisions of the CIA Act and the Foreign Service
Act are amended to broaden this coverage, and the Administrative Ejenw)s
Act of 1946 is amended to extend like storage benefits to all overseas
personnel (includes personnel in territories)*
c. The sections relating to representation and official residences
are rewritten by amending the Administrative Expenses Act of 1946 to
cover both as administrative expenses applicable
allowances. Government person-
nel in foreign areas in lieu of treating them as
to be a notch more realistic approach.
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d. The sections relating to the territories have been revised
to authorize a new *prevailing rate" differential. It is pay ble
in those territorial areas where local prevailing wage rates sre
higher than the rates of basic compensation fixed by statutes for
certain types of work. It is intended primarily to be used for
locally-recruited employees. The Act further provides for the dis-
continuation of the payment of territorial cost of living allcvancf's
to such employees within one year. Since local residents in root
territorial areas are United States citizens, it appears to ttis
Office that the propoeeedrelocally aaid~if'f8~rent~tea iaom
way of handling employees recruited
those recruited in the States.
e. A section has been added to the Act to authorize the 7resi-a font to extend coverage
rritoryy iftprreesent inddependentea thorn y for
foreign n arrea or as
additional compensation is terminated.
f. The definition of "employee" has been broadened to include
civilians in the service of the Government as defined in Pres -
dential regulations. The transmittal material states that this
change was made in order to make it possible to designate specifically
any groups about which a question of coverage might be raised.
3. This Office finds nothing objectionable in the proposed revisions
to the subject bill and we, therefore, recommend that CIA support
passage in its revised form, provided our special authorities are in no
way delimited thereby or by the regulations which will be issued there-
under. On the basis of the Memorandum for the Record from the General Coun-
sel dated 19 January 1955, it would appear that we are covered on this point.
However, it may still be expedient to make our concurrence in the prop-,sed
bill subject to this proviso since the Memorandum for the Record as the
in also itc3vk-~otfs
result of informsl discus~ion ~ s re~vi.ews of the addition,, we
proposed bill should
note at this juncture tha
forms have only been geared to a comparison of the proposed la aoz-
with existing legislation and our special authorities. We have le isivarar
t -
eidered recommending extensions or broader coverage in the gevern leg-
lation. ?E7\14 A f
Director of Personnel
Harrison G. Reynol
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r. W "- I
ROUTING AND RECO
INSTRUCTIONS: Officer designations should be used in the "TO" column. Unde
and each comment numbered to correspond with the number in the "TO" column.
Director of Personnel
1. Legislative
Counsel
FORM NO. 51-10
APR 1953
ROOM
NO.
223
East
SECRET
OFFICER'S
INITIALS
RD SHEET
each comment a line should be draw i acros. sh.;et
Each officer should initial (check mark insuf'_icient)
egistry.
DATE
_-J
NFIDENTIAV RESTRICTED
t114CLASSIFIEt)
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