advantage or preferment in dealing with the U.S. Government for any purpose.

(b) Acceptance permitted. The provisions of paragraph (a) of this section do not apply to:

(1) Gifts, gratuities, favors, entertainments, loans, or any other thing of monetary value received on account of close family or personal relationships when the circumstances make it clear that it is that relationship rather than the business of the persons concerned which is the motivating factors;

(2) Acceptance of loans from banks or other financial institutions on customary terms to finance proper and usual activities of employees, such as home mortgage loans;

(3) Acceptance of unsolicited advertising or promotional material, such as pens, pencils, note pads, calendars, and other items of nominal intrisic value;

(4) Acceptance of rates and discounts offered to employees as a class.

(c) Acceptance permitted for State and USIA employees. For State and USIA employees the provisions of paragraph (a) of this section do not apply to: Acceptance of food and refreshments of nominal value on infrequent occasions in the ordinary course of a luncheon or dinner meeting or other meeting or on an inspection tour where an employee may properly be in attendance.

(d) Acceptance permitted for AID employees. For AID employees the provisions of paragraph (a) of this section do not apply in the following situations:

(1) In some circumstances the interests of the Government may be served by participation of employees in widely attended lunches, dinners, and similar gatherings sponsored by industrial, technical, and professional associations for the discussion of matters of mutual interest to Government and industry. Participation of employees is appropriate where the host is the association and not the individual contractor. However, acceptance of entertainment or hospitality from private companies in connection with such association activities is prohibited.

(2) In the unusual situation where employees would by virtue of the location of the person, firm, corporation, or other entity, or the regulations governing its dining facilities, find it inconvenient or impractical not to accept meals and refreshment at the host's expense at said location or facility, per

sonnel may accept such meals or refreshments.

(3) There will be situations where in the judgment of the individual concerned, the Government's interest would be served by participation of an employee in activities comparable to those enumerated in subparagraphs (1) and (2) of this paragraph, particularly where officers are dealing with a foreign government; in any such case in which an employee accepts any favor, gratuity, or entertainment directly or indirectly from any foreign government, person, firm, corporation, or any entity which is engaged or is endeavoring to engage in business transactions of any sort with AID, a report of the circumstances, together with the employee's statement as to how the Government's interests were served, will be made within 48 hours to the employee's supervisor or, if the employee is serving abroad, to the Mission Director.

(e) Gifts to superiors. An employee shall not solicit a contribution from another employee for a gift to an official superior, make a donation as a gift to an official superior, or accept a gift from an employee receiving less pay than himself (5 U.S.C. 7351). However, this paragraph does not prohibit a voluntary gift of nominal value or donation in a nominal amount made on a special occasion such as marriage, illness, or retirement.

(f) Neither this section nor § 10.735204 precludes an employee from receipt of bona fide reimbursement, unless prohibited by law, for expenses of travel and such other necessary subsistence as is compatible with this part for which no Government payment or reimbursement is made. However, this paragraph does not allow an employee to be reimbursed, or payment to be made on his behalf, for excessive personal living expenses, gifts, entertainment, or other personal benefits, nor does it allow an employee to be reimbursed by a person for travel on official business under agency orders when reimbursement is proscribed by Decision B-128527 of the Comptroller General dated March 7, 1967. § 10.735-203

ernments.

Gifts from foreign gov

An employee shall not accept a gift, present, decoration, or other thing from a foreign government unless authorized by Congress as provided by the Constitution and in 5 U.S.C. 7342, and the regulations promulgated thereunder pursuant

(a) An employee shall not engage in outside employment or other outside activity not compatible with the full and proper discharge of the duties and responsibilities of his Government employment. Incompatible activities include but are not limited to:

(1) Acceptance of a fee, compensation, gift, payment of expense, or any other thing of monetary value in circumstances in which acceptance may result in, or create the appearance of, conflicts of interest; or

(2) Outside employment which tends to impair his mental or physical capacity to perform his Government duties and responsibilities in an acceptable manner.

(b) An employee shall not receive any salary or anything of monetary value from a private source as compensation for his services to the Government (18 U.S.C. 209).

(c) Employees are encouraged to engage in teaching, lecturing, and writting that is not prohibited by law, the Executive order, this part, or the agency regulations. However, an employee shall not, either for or without compensation, engage in teaching, lecturing, or writing, including teaching, lecturing, or writing for the purpose of the special preparation of a person or class of persons for an examination of the Civil Service Commission or Board of Examiners for the Foreign Service, that is dependent on information obtained as a result of his Government employment, except when that information has been made available to the general public or will be made available on request or when the agency head gives written authorization for use of nonpublic information on the basis that the use is in the public interest. In addition, an employee who is a Presidential appointee covered by section 401(a) of the Executive order shall not receive compensation or anything of monetary value for any consultation, lecture, discussion, writing, or appearance the subject matter of which is devoted substantially to the responsibilities, programs, or operations of his agency, or which draws substantially on official data or ideas which have not become part of the body of public information. Em

ployees are referred to the detailed rules of their agency with respect to clearance and acceptance of compensation (3 FAM 628 and for AID see M.O. 831.2).

(d) [Reserved]

(e) An employee shall not render any services, whether or not compensated, to any foreign government, state, province, or semigovernmental agency, or municipality of any foreign government, or to any international organization of states. However, this shall not prevent the rendering of such services by employees acting on behalf of the United States. Nor shall this provision prevent the rendering of services to an international organization of states when otherwise consistent with law and when authorized by the appropriate officer. The appropriate officer for State is the Director General, for USIA the Assistant Director (Personnel and Training), and for AID the Assistant Administrator for Administration.

(f) An employee shall not engage in any teaching or related activities directed toward the special preparation of individuals for examinations of the U.S. Civil Service Commission or the Foreign Service (Executive Order 9367).

(g) This section does not preclude an employee from:

(1) Participation in the activities of national or State political parties not proscribed by law.

(2) Participation in the affairs of or acceptance of an award for a meritorious public contribution or achievement given by a charitable, religious, professional, social, fraternal, nonprofit educational and recreational, public service, or civic organization. § 10.735-205

Financial interests.

(a) An employee shall not:

§ 10.735-206 Economic and financial activities of employees abroad.

(a) Prohibitions in any foreign country. A U.S. citizen employee abroad is specifically prohibited from engaging in the activities listed below in any foreign country.

(1) Speculation in currency exchange. (2) Transactions at exchange rates differing from local legally available rates, unless such transactions are duly authorized in advance by the agency.

(3) Sales to unauthorized persons (whether at cost or for profit) of currency acquired at preferential rates through diplomatic or other restricted arrangements.

(4) Transactions which entail the use, without official sanction, of the diplomatic pouch.

(5) Transfers of funds on behalf of blocked nationals, or otherwise in violation of U.S. foreign funds and assets control.

(6) Independent and unsanctioned private transactions which involve an employee as an individual in violation of applicable control regulations of foreign governments.

(7) Acting as an intermediary in the transfer of private funds from persons in one country to persons in another country, including the United States.

(8) Permitting use of one's official title in any private business transactions or in advertisements for business purposes.

(b) Prohibitions in country of assignment. (1) A U.S. citizen employee shall not transact or be interested in any business or engage for profit in any profession or undertake other gainful employment in any country or countries to which he is assigned or detailed in his own name or through the agency of any other person; exceptions may be made with respect to chiefs of mission only in writing by the Deputy Under Secretary for Administration, and for all other State employees by the appropriate chief of mission; for USIA employees by the Assistant Director (Personnel and Training); and for AID employees by the assistant administrator of the regional bureau or head of the nonregional organization, as appropriate, or their designees (see 22 U.S.C. 805).

(2) A U.S. citizen employee shall not invest in real estate or mortgages on properties located in his country of assignment. The purchase of a house and land for personal occupancy is not considered a violation of this subparagraph.

(3) A U.S. citizen employee shall not invest money in bonds, shares or stocks of commercial concerns headquartered in his country of assignment or conducting a substantial portion of their business in such country. Such investments, if made prior to knowledge of assignment or detail to such country or countries. may be retained during such assignment or detail when approved in writing by the appropriate official named in subparagraph (1) of this paragraph. If retention is authorized, such stocks, shares, or bonds may not be sold while the employee is assigned or detailed to the country or countries, unless the agency approved the sale in writing.

(4) A U.S. citizen employee shall not sell or dispose of personal property, including automobiles, at prices producing profits to him which result primarily from import privileges derived from his official status as an employee of the U.S. Government. Employees are referred to FAMC 378; for AID see M.O. 443.5.

(c) Acceptance of employment by members of family abroad. Members of a U.S. citizen employee's family may not transact or be interested in any business or engage in gainful employment in the country to which the employee is assigned without express approval of the chief of an ageny's establishment.

(1) Employment of such family members by the agency itself is governed by the regulations of the agency concerned.

(2) The chief of any agency's establishment may authorize employment of such family members in another U.S. Government agency.

(3) With the authorization of the chief of the agency's establishment, such family member may, for example:

(i) Teach or be employed in schools, hospitals, or similar establishments.

(ii) Teach or be employed in Binational Centers.

(iii) Work in cooperative commissaries.

(iv) As dependent children, maintain paper routes or perform other casual part-time duties.

(v) Accept employment which supports overall U.S. objectives by favorably and reflecting educational, cultural, professional accomplishments of U.S. citizens.

In considering requests for permission for members of a family to accept employment abroad. the authorizing officer shall follow generally consistent policies approved by the Ambassador and should

consider: The propriety of employment with institutions supported directly by the local government; any adverse effects on relations between the United States and the host government; possible violation of local custom; possible violation of conflict of interest regulations; competition with the local labor market that might result from such employment; possible conflict with the representational activities of a member of the family of an officer with representational responsibilities; and possible adverse effects on the special status of the employee and his family as official representatives of the United States. It should also be borne in mind that persons accepting employment abroad may not enjoy immunity from judicial process and that they would be subject to the payment of any taxes deriving from their nondiplomatic employment.

(d) Business activities of non-U.S. citizen employees. A non-U.S. citizen employee abroad may engage in outside business activities with the prior approval of the head of the overseas establishment on the basis of the standards expressed in § 10.735-204(a).

An employee shall not directly or indirectly use, or allow the use of Government property of any kind, including property leased to the Government, for other than officially approved activities. An employee has a positive duty to protect and conserve Government property, including equipment, supplies, and other property entrusted or issued to him. § 10.735-208. Misuse of information.

For the purpose of furthering a private interest, an employee shall not, except as provided in § 10.735-204 (c) directly or indirectly use, or allow the use of, official information obtained through or in connection with his Government employment which has not been made available to the general public.

§ 10.735-209 Indebtedness.

An employee shall pay each just financial obligation in a proper and timely manner, especially one imposed by law such as Federal, State, or local taxes. For the purpose of this section, a "just financial obligation" means one acknowledged by the employee or reduced to judgment by a court, and “in a proper and timely manner" means in a manner which the agency determines does not,

under circumstances, reflect adversely on the Government as his employer. In the event of dispute between an employee and an alleged creditor, this section does not require an agency to determine the validity or amount of the disputed debt. § 10.735-210 Gambling, betting, and lotteries.

An employee shall not participate, while on Government-owned or leased property or while on duty for the Government, in any gambling activity including the operation of a gambling device, in conducting a lottery or pool, in a game for money or property, or in selling or purchasing a numbers slip or ticket. However, this section does not preclude activities:

(a) Necessitated by an employee's law enforcement duties; or

(b) Under section 3 of Executive Order 10927 and similar agency-approved activities.

§ 10.735-211

Activities relating to pri

vate organizations and politics.

(a) Definition. For the purpose of this section, the term "private organization" denotes any group of persons or associations organized for any purpose whatever, except an organization established by the Government of the United States, or officially participated in by State, USIA, or AID.

(b) Participation in activities of employee organizations. An employee may join or refrain from joining employee organizations or associations without interference, coercion, restraint, or fear of discrimination or reprisal.

(c) Participation in activities of private organizations. In participating in the program and activities of any private organization, an employee shall make clear that his agency has no official connection with such organization and does not necessarily sponsor or sanction the viewpoints which it may express.

(d) Legal restrictions on membership in certain organizations. (1) An employee shall not have membership in any organization of Government employees that asserts the right to strike against the Government of the United States or the agency, knowing that such organization asserts such right (5 U.S.C. 7311, 18 U.S.C. 1918).

(2) An employee shall not have membership in any organization that advocates the overthrow of our constitutional form of Government in the United

States, knowing that such organization so advocates (5 U.S.C. 7311, 18 U.S.C. 1918).

(e) Private organizations concerned with foreign policy or other matters of concern to agencies—(1) Limitation on participation. When a private organization is concerned primarily with foreign policy or international relations or other matters of concern to an employee's agency, an employee shall limit his connection therewith as follows: Unless specifically permitted to do so, he may not serve as advisor, officer, director, teacher, sponsor, committee chairman, or in any other official capacity or permit his name to be used on a letterhead, in a publication, in an announcement or news story, or at a public meetings, regardless of whether his official title or connection is mentioned. The provisions of this section are not intended to prohibit the normal and active participation of an employee in professional organizations such as the American Political Science Association, the American Economic Association, the American Foreign Service Association, and similar organizations, since such participation is in the interest of both the employee and the Government. Employees are expected, however, to exercise discretion in such activities and are held personally accountable for any improper use of their relationship with State, USIA, and AID.

(2) Request for special permission. Special permission to assume or continue a connection prohibited by subparagraph (1) of this paragraph may be granted in cases where the public interest will not be adversely affected. To request such permission, or to determine whether the provisions are applicable to a particular case, the employee shall address a memorandum setting forth all of the circumstances to the appropriate officer. The appropriate officer is for State the Director General; for USIA the Assistant Director (Personnel and Training); and for AID the Senior Personnel Officer under whose jurisdiction the employee

serves.

(3) Application to senior officers. Because of the prominence resulting from their official positions, chiefs of mission and other senior officers should recognize the particular bearing of the provisions of subparagraph (1) of this paragraph upon their activities. They should restrict association with any organizations involving foreign nations and the United States to simple membership and should

not accept even honorary office in such organizations except with the specific prior approval as provided in subparagraph (2) of this paragraph.

(f) Private organizations not concerned with foreign policy. When the purpose and program of the organization do not fall primarily within the field of foreign policy or international relations, the employee's activity is limited only to the following extent:

(1) His official title or connection may be used to identify him, as in a civic association election, but may not be used on a letterhead, in a publication, or otherwise so as to employ the prestige of the U.S. Government to enhance that of the organization or to imply official sponsorship

(2) When he is a representative of an association consisting of State, USIA, or AID employees, or of a group of such employees, his connection with his agency may be freely used so long as there is no implication of official sponsorship beyond that which may have been officially approved.

(g) Political activities abroad. A U.S. citizen employee shall not engage in any form of political activity in any foreign country.

(h) Activities relating to U.S. politics. The law (5 U.S.C. 7324, formerly the Hatch Act) provides in summary that it is unlawful for any Federal employee of the executive branch to use his official authority or influence for the purpose of interfering with an election or affecting the result thereof, or to take any active part in political management or in political campaigns. These restrictions do not in any way affect the right of a Federal employee (1) to vote as he chooses; (2) to express personal political opinions, except as part of a campaign; (3) to make or refrain from making contributions to political organizations, provided contributions are not made in a Federal building or to another Federal officer or employee (see 18 U.S.C. 602, 603, 607, and 608); (4) to participate in local, nonpartisan activities.

§ 10.735-212 Wearing of uniforms.

(a) An employee of the Foreign Service may not wear any uniform except as may be authorized by law or as a military commander may require civilians to wear in a theater of military operations (22 U.S.C. 803). When an employee is authorized by law or required by a military commander of the United States to wear