Approved ForIease 2001/0
ff4-RDP68c140R000200470009-0
AUG 1961
MEMORANDUM FOR : Special Support Assistant
to the Deputy Director (Support)
SUBJECT . Constructive Cost of Direct Travel when Crossing
the North Atlantic Ocean by Air is Involved
25X1A 1. Paragraphs 8g(1) (b) provide that effective
15 August 1961, first-class accommodations on Jet aircraft are not
allowable for that portion of the journey which crosses the North
Atlantic Ocean, subject to certain exceptions. You have inquired
relative to the application of this requirement as it affects the
computation of constructive costs when travel is undertaken by other
than the direct usually traveled route.
25X1A
2. The constructive cost principle is applied in those cases
when the traveler elects to go by other than the direct usually
traveled route for personal reasons, whereby he is allowed not to
exceed the travel costs which he would have incurred had he gone by
the direct usually traveled route between the points specified on
the travel order. More plainly stated, the traveler will be paid
no more than he would have been allowed had he gone the way he was
supposed to go. In computing the cost of travel which may be allowed
for the indirect route, comparison is made by travel expense
categories, i.e., per diem against per diem, transportation against
transportation, and incidentals against incidentals.
3. Paragraphs 8e contain the foregoing provisions
and further specify the basis for developing constructive costs when:
a. One mode is used for the indirect trip:
(1) If the mode used was authorized in the travel order and
was available for the direct route, the cost of travel
by such direct route shall be applied constructively.
(2) If the mode used was not authorized in the travel order
nor available for the direct route, the cost of travel
by the most expensive mode authorized in the travel order
and available on the direct route shall be applied
constructively.
Approved For Release 2001/0 LSjA-RDP68-0014OR000200470009-0
Approved For lease 2001/( jlA-RDP68 140R000200470009-0
SUBJECT . Constructive Cost of Direct Travel when Crossing
the North Atlantic Ocean by Air is Involved
b. More than one mode is used for the indirect trip:
(1) Cost of travel via the direct route using the most
expensive mode authorized in the travel order and
used shall be applied constructively.
(2) If the modes used were not authorized in the travel
order, the most expensive mode authorized and available
for the direct route shall be applied constructively.
4. In determining the direct usually traveled route between
overseas points and headquarters, Rangoon is generally the farthest
point east for direct travel across the Atlantic Ocean, and Bangkok
is generally the farthest point west for direct travel across the
Pacific Ocean. Unless travel orders specify otherwise, the usually
traveled route will be in accordance with the foregoing points.
Accordingly, indirect routes to or from headquarters and points east
of Bangkok are not affected by the requirement for the use of jet
economy flights across the North Atlantic Ocean.
5. The following examples illustrate the application of the
requirements stated in paragraph 3, a(1) and (2) and b(l) and (2)
above :
a.(l) Air travel is undertaken from Istanbul to headquarters
via an indirect route. The travel order authorizes
first-class air travel, with jet economy across the North
Atlantic. Air travel is used for the entire indirect
trip. Irrespective of whether the indirect trip crosses
the Atlantic or the Pacific Ocean, constructive cost of
direct travel is computed thus:
First-class air fare Istanbul to last
point in Europe, e.g., London $ 222.50
Jet economy London to New York 284.90
First-class air fare New York to
Washington 17.40
Transportation
524.80
Per diem allowance:
l1 days @ $6.00
$ 9.00
k day @ $12.00
3.00
12.00
Incidentals, taxi, baggage, etc. 35.00
Constructive cost $ 571.80
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SECRET
Approved For lease 2001/04/'RDP68-0140R000200470009-0
SUBJECT . Constructive Cost of Direct Travel when Crossing
the North Atlantic Ocean by Air is Involved
If the travel order authorized first-class jet for segments of the
journey where such service was available, which would include crossing
the North Atlantic, the fare London to New York would be $517.lio in
lieu of $284.90 shown above for economy jet.
a.(2) Assuming the travel order authorized air travel only,
which would involve jet economy across the North Atlantic
in the absence of specific authorization to use first-class
jet, and the traveler used surface transportation via an
indirect route for the entire journey, constructive cost
would be the same as stated in a(l) above.
b.(l) Assuming the travel order authorized air, with jet economy
across the North Atlantic Ocean, or surface travel, and the
traveler uses an indirect route by privately owned vehicle,
air, ship and rail. The constructive cost of direct travel
must be computed by the most expensive mode used and avail-
able direct. This might be air travel at a total cost of
$571.80, or if the three categories of expense (transporta-
tion, per diem, and incidentals) for transportation to a
port of embarkation where a ship can be boarded for the
direct usually traveled route to New York and surface
travel New York to Washington, exceed $571.80, the higher
cost shall apply.
b.(2) When the travel order authorized air travel only, which
would require jet economy across the North Atlantic, and
the traveler elected to go via an indirect route using rail
and ship, the constructive cost for the indirect trip would
be limited to the computation based on air travel for the
direct route as stated in a(l) above.
6. In determining the amount due the traveler, the actual expenses
of the indirect travel, by travel expense categories, is compared with
the constructive costs of direct travel, by categories, and the lesser
amounts are those to which the traveler is entitled.
7. Unless first-class jet accommodations across the North Atlantic
are specifically authorized in the travel order, jet economy accommoda-
tions apply to all flights from the last point of take-off before
crossing the North Atlantic to the initial landing point after completing
the crossing.
-3-
Approved For Release 2001/04/04: CIA-RDP68-0014OR000200470009-0
SECRET
Approved For Release 2001/04/Q4
RDP68-0014OR000200470009-0
SUBJECT : Constructive Cost of Direct Travel when Crossing
the North Atlantic Ocean by Air is Involved
25X1A
8. When indirect air travel for personal convenience is undertaken
and excess baggage has been specifically authorized in the travel order,
the constructive cost to be allowed for transporting excess baggage
shall not exceed the cost which would have been incurred had travel
been performed via the most direct usually traveled route.
9. Personnel electing to travel via an indirect route are bound
by the provisions of paragraphs Use of American
Ships, and paragraphs 8g(l)(a) govern. -cue use of U. S. airlines.
10. To summarize: when crossing the North Atlantic Ocean by air
is included in computing constructive cost of direct travel by employees,
jet economy fare shall be used from the last point of take-off before
crossing, to the initial landing point after crossing, unless the travel
order authorizes first-class jet for such segment of the journey. Also,
for travel from points east of Rangoon for which crossing the North
Atlantic is not a part of the direct route of travel to headquarters,
jet economy travel across the North Atlantic does not apply to the
computation of constructive cost of direct travel.
25X1A9a
Comptroller
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Approved For?R lease 2001/04 -RDP68g 0140R000200470009-0
ASSA-DD/S
Room 2127
I Building
Chief, CA/Support
14144 A
Also to: Chief, CI/Support
Chief, FI/Support
25X1A8a Chief, RID/ADM
CCS
Chief, AF Support
Chief, EE/Support
Chief, FE/Support
Chief, I0/Support
Chief, NE/Support
Chief, SR/Support
Chief, WE/Support
Chief, WH/Support
Chief, DPD/ADM
Chief, TSD/Support
Chief, OC/Admin (on 21 Aug 61)
ASSA.-DD/S:FPB/ms (17 August 61)
Distribution:
1 - Each Addressee listed above.
1 - SSA-DDS Subj
1 - FPB Chrono
AUG 190"%
Attached for your information and
file is a copy of a memorandum from
the Comptroller., dated Its Auca.st
1961: subject: Constructive Cost
of Direct Travel when Crossing the
North Atlantic Ocean by Air?is
Involved.
25X1A9a
Attachment
As stated above.
Approved For Release 2001/04/04: CIA-RDP68-0014OR000200470009-0
1. UNCLASSIFIED ^ ~NEERONAL ^ CONFIDENTIAL x^ SECRET
? Approve or ?I f -f,0 00
F -- "-ia ,
SUBJECT: (Optional)
Constructive Cost of Direct Travel when Crossing the North Atlantic Ocean
by Air is Involved
FROM: Technical Accounting Staff {~ NO.
Office of the Comntrol l pr -f .,-A ?~ O
TO: (Officer designation, room number, and
building)
Comptroller
1039 Alcott Hall
3. SSA-DD/S
2129 I Building
DATE
OFF
ICER'S
INITIALS
TFOR
RECEIVED WARDED
COMMENTS (Number each comment to show from whom
to whom. Draw a line across column after each comment.)
1 DEC 56 esy~ypr c f rE tele -
FORM 610 USE EDTIOMf5 P
AL SSE ONLY UNCLASSIFIED