DEAR MR. LAWTON:

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP78-04718A000100320063-8
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 3
• Document Creation Date: December 12, 2016
• Document Release Date: May 24, 2002
• Sequence Number: 63
• Publication Date: October 31, 1950
• Content Type: LETTER

Approved For Release
The Honorable
The Director of the
Bureau of the Budget
Bureau of the Budget
Wa hint= ZS, D. C.
Dear Mr. Lawton:
4 Al- /-2K3-Z1-
CIA-RDP78-047.48A000100320063-8
Reference is made to your letter
tes that would be affected by the
tuts of war or emergency.
or. 31,44,p
4 October 1950.Subject:
mination of the existence
Because of the powers sad authorities gr anted the Central
genes Agency in its basic legislation, the Agency will not he
handicapped in its functioning by the termination of the states of
war or emergency described in your letter. The .-giertcy would be
affected incidentally, however, because of the dependence of some
of its activities on other government departments and agencies,
and because of its policy to follow, so far as possible, general
governmental policies and procedures. A discussion of the termi-
nation of most of tho6e statutes which affect tie only incidentally
will be left to the departments and agencies primarily concerned.
Of interest to CIA are several laws, passed during the Second
World 2. ar, providing compensation for certain clesses of persons
who, while serving the United 'States abroad, are determined to be
Injured, missing or captured due to enemy action. "While these
statutes were primarily concerned with the actual hostilities against
Germany and Japan1 they have proven helpful and should be extended
to cover the 'cold war" where there is no official "enemy' . Con-
sequently, it would be desirable for the provisions of these laws to
be continued on a permanent basis and broadened in their language
so as to care for persons engaged in activities abroad on behalf of
the United States which are not necessarily connected with any formal
state of war existing between the United States and any other country
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or countries. The laws Involved are the sections of the War Pay
and Allowances Act of 1942, and sections of the Ac December
1942 and 28 July 1945, described below.
The missing persons provisions of the War Pay sad Allowance.
Act of 194 (Act of March 7, 1942, c. 166. g6 stat 143,
App. -1015), as amended, provide generally for the continua
tion of the pay and allowances of government employees serving
outside the continental United States for any period during which
the employee is determined to be missing in action or captured by
an enemy. This law also provides for a moratorium CM the filing
of income tax returns by such persons and for the return transpor
tation of their dependents and household effects. The Act, by its
terms, will remain in effect until the termination of the present
war with Germany. Italy and Japan, and for twelve months there-
after, or until such earlier time as the Congress by concurrent
resolution or the President by proclamation may designate. * (50
USC App. 11015). Apparently this Act may be deemed to be still
in effect and applicable to certain CIA personnel.
Section 5(b). c. 3211 f the Act of July 28, 1945, 59 Stat.
5 USC #881, SA amended, provides generally that, where a
States employee suffers death or disability after capture by an
enemy of the United States "during the present war. the injury
is deemed to have been sustained while in the performance of duty1
for the purposes of the Federal Employees Compensation Act
(5 USC #751 ff.).
The Act, of December 2, 1942, c. 668. Title j 56 Stat. 10
1 33, 42 ttsd )11701 1706, as amended by the Act of December 23,
1943, c. 3$0. Title 1, 57 Stat. 626, extends the benefits of the
Federal Employees :ompensation Act to certain persons employed
by a contractor with the United States and to persona engaged by
the United States under a contract for personal services outside the
continental United States, where injury results from "war-risk
hazards", or the person is missing due to enemy action, or is not
returned to his home due to failure of the United States to furnish
transportation. "Year-risk hussars!' is defined (42 USC 11711) as
hasard arising from certain enumerated types of occurrences prior
to the end of the present war. "
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There are also two provisions concerning free entry o
to the United States which are of interest to this Agency. The first
the Act of June 27, /942, c. 453, SI 1 and 2, 56 Stat. 461, 50
USC App. 11801-862, which provides that the personal and household
effects of any person in the service of the United States, or of say
person evacuated to the United States under Government orders,
may be brought into the United States or any of its possessions
pursuant to Government orders or instructions, without payment
of any duty or tax, subject, however, to such regulations as the
Secretary of the Treasury may prescribe. The Act provides (50
USC 11602) that it 'shall have no force or effect on or after the day
following the proclamation of peace by the President." The
retention of provisions of this nature as permanent law is desirable
in order to facilitate the movement of CIA personnel and any
evacuation of persons to the United States arranged by CIA.
Executive Order 9177 of May 30, 1942, extended to certain
agencies oi t1ebovernment the authority given to the
tary of the Navy in the Act of June 30, 1914, 38 Stat. 399, 34
SC 568, to make emergency purchases of war materials abroad
and to import same to the United States free of duty. The Order
provides that it shall continue in force and effect until the termina-
tion of Title 1 of the First War Powers Act, 1941, " i.e. , until
six months after the termination of the war. It is desired that a
permanent law be enacted granting to CIA, along with other
specified agencies, the authority contained in the Act of Jun 30,
1914.
hall be glad to discuss any of these matters with yo
on so desire. Inquiries should be directed to the
our Legislative Officer Walter L. Fforsheimer,
WLPforzheimer:121c j
Central Records? MIN ha
Signe rL?'
budget ?Mow., ) ? 1-4-z-- 6?14-441-'1 6644 /
ILLEGIB
Sincerely you
/5
&iriz
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