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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 non-regional organization, as appropriate, or their designees.

(2) A U.S. citizen employee shall not invest money 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.

(c) Activities covered by local regulations. Each chief of diplomatic mission (or principal officer of a post not under the jurisdiction of a diplomatic mission), in consultation with the heads of other agency overseas establishments, shall develop and promulgate post regulations, not inconsistent with the regulations in this part, regarding economic and financial conduct of employees. Posts shall review their regulations annually. Particular attention should be given to the need for regulations on the importation and disposal of personal property; the acquisition and conversion of local currency; and the importation, operation and disposal of motor vehicles. connection, it is considered unethical for a U.S. citizen employee:

In this

(1) To sell, barter, or exchange personally owned property in a foreign country under circumstances or in such a manner as to violate or cause violation of the laws of the country in which the transaction takes place.

(2) To offer personal property for sale, barter, or exchange on the local market unless it has first been freely offered for a reasonable time to other U.S. citizen

employees at a fair price and none has offered to purchase at that price.

(3) To import items of personal property in anticipation of reassignment, or under other foreseeable circumstances which will result in resale after only a brief period of ownership.

(4) To import personal property items in quantities which exceed reasonably anticipated needs, or primarily for the purpose of sale, exchange or barter.

(5) To sell automobiles or other personal property at prices producing profits that result essentially from import privileges. Employees are referred to Foreign Affairs Manual Circulars Nos. 281, 281-1 and 378, and AID Manual Order 443.5 for details.

(d) Suggested control methods. With necessary adaptation to meet local conditions, posts may adopt such of the following methods as will assist in controlling imports and sales:

(1) Use a prescribed form in requesting free entry. The property for which free entry is requested should be described on the form and, if approved, the form should be kept on file. Thereafter, each additional request for free entry should be checked against the file to determine whether it would be appropriate to grant the request.

(2) Require all U.S. citizen employees to report and to obtain prior approval for all proposed sales of personal property. If the proposed sale or method of sale is not justified, permission to sell should be denied. A committee might be established at a large post composed of the chief of mission or his representative, the administrative officer, and another responsible official (as well as representatives from USIA and AID, when appropriate) to evaluate and act on requests, on the basis of individual circumstances, the ethics of the situation, laws of the host country, and agency regulations. The functions of the committee may be extended to cover the evaluation of requests for free entry as well.

(3) Develop and publish standards based on ethics, applicable laws and regulations, or bilateral arrangements between the United States and the host governments, etc., for the approval of requests for free entry as well as for requests for permission to sell personal property, and give copies of these standards to all newly arrived U.S. citizen employees.

(e) Reports on exchange transactions. (1) If any arrangement is made, collectively or individually, by employees for the acquisition of foreign currency at other than the current market rate of exchange (i.e., the banks' buying rate for checks and drafts as shown in the regular monthly accounts), the fact should be reported to the agency. The agency determines whether the practice is consistent with its policies and whether the rate obtained differs sufficiently from those regularly reported in the accounts to affect the classification of the post for the purposes of allowances.

or

(2) If the chief of an agency's establishment deems it necessary, he may require employees receiving dollar income (whether from salary, allowances other sources) to sign a certificate to the effect that they have not converted any dollars into foreign currency at a rate more favorable than the official or current bank rate during the stated period, except as fully explained in a separate report to the chief of the agency's establishment.

(f) 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 agency's establishment.

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

(2) With other government agencies at missions. The chief of an agency's establishment may authorize employment of such family members in another U.S. Government agency.

(3) Other employment abroad. 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 Bi-national Centers.

(iii) Work in cooperative commissaries.

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

In considering requests for permission for members of a family to accept employment abroad, the authorizing officer

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; or competition with the local labor market that might result from such employment. 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.

(g) 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).

§ 10.735-207 Use of Government prop

erty.

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 § 10.735-211(b) 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 the circumstances, reflect adversely on the Government as his employer. In the event of dispute between an employee and an alleged cred

itor, 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.

§ 10.735-211 Expressions of thoughts and views.

(a) Applicability. Certain employees are assigned to duties which require making speeches, holding interviews or otherwise engaging in discussions on a variety of topics. The following provisions are not intended to interfere with the normal performance of such functions or to require clearance for any such activities which are carried out within established policy guidelines, except as may be dictated by the exercise of prudence and good judgment.

(b) Nonpublic information. Employees are encouraged to engage in teaching, lecturing, and writing that is not prohibited by the regulations in this part. However, an employee shall not, either for or without compensation, engage in teaching, lecturing, or writing 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 head of his agency gives written authorization for the use of nonpublic information on the basis that the use is in the public interest.

(c) Racially segregated audiences. Employees should not participate in conferences nor speak before audiences in an official capacity where any racial group has been segregated or excluded from the meeting, from any of the facilities of the conference or from membership in the group. Exceptions to this general policy may only be made by the respective agency head (for personnel in the United States) or by the chief of diplomatic mission (for personnel overseas).

(d) Lectures and interviews abroad(1) Authorization. Under prior approval

of the ambassador, or his designee, an employee a broad may give public speeches and lectures and participate in conferences and the like and hold onthe-record newspaper interviews or other formal discussions of government policy. Prior interagency consultation on important public statements is expected, where appropriate.

(2) Restrictions. An employee abroad may not publicly speak on, or discuss, issues on official matters outside his fields of responsibility. Security regulations are to be closely observed in the dissemination of any information to the general public.

(3) Topics to be avoided. An employee abroad may not allude in public speeches or newspaper interviews to disputes between governments, to active political issues in the United States or elsewhere, or to any matter pending at any overseas post, except by the direction or with the authorization of the ambassador, or his designee.

(e) Teaching and lecturing in the United States. An employee stationed in the United States who wishes to speak, lecture, teach, or participate in a conference, or the like, shall follow the clearance procedures established by his agency.

(f) Public criticism of another employee. An employee shall not publicly criticize any other employee of the United States. If an employee finds it necessary to criticize, or prefer charges against, any other employee, he shall do so only in a personal and confidential letter to the head of the overseas establishment, or the appropriate personnel office in Washington.

(g) Writing.—(1) Acting as correspondent for communication media. Certain employees carry on active liaison with representatives of communications media. However, no employee shall act as correspondent for any newspaper, press syndicate, association, or other media unless special authorization has been obtained in advance from the appropriate official. The appropriate official is for State, the Assistant Secretary for Public Affairs; for USIA, the Assistant Director (Personnel and Training); and for AID, the Director, Information Staff.

(2) Manuscripts prepared for publication. All manuscripts prepared for external publication by an employee on matters that might be of official concern

shall be submitted for clearance under the procedures established for his

agency.

(3) Correspondence. (i) In corresponding with anyone other than the proper official of the United States with regard to the public affairs of a foreign government or active political issues in the United States, an employee shall use discretion and judgment to ensure that neither the United States nor the employee will be embarrassed or placed in a compromising position.

(ii) An employee abroad should not correspond directly on such matters with officials of other agencies but should have such correspondence cleared in Washington for transmission to the interested agency. This does not affect an employee's right to correspond with a Member of Congress (5 U.S.C. 652(d)). Inquiries on such subjects from persons who are not employees of the United States should be acknowledged and the inquiries referred to the appropriate office in Washington.

§ 10.735-212 Receipt of compensation.

(a) An employee may not accept compensation or anything of monetary value for any consultation, lecture, discussion, writing or appearance:

(1) When the speaking or writing is done in the exercise of his official duties.

(2) When the speaking or writing 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.

(3) When the official time of himself or another employee of his agency has been used in preparing the material.

(b) In addition, the head of an agency 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.

(c) Employees are referred to the detailed rules of their agency with respect to acceptance of compensation and reimbursement for expenses.

§ 10.735-213
vate organizations and politics.

Activities relating to pri

(a) Definition of "private organization." 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. (1) 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.

(2) An employee shall not join or maintain membership in an organization if such affiliation might discredit the U.S. Government or himself or create the likelihood of a conflict of interest with his official duties.

(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.

(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. Public Law 330, 84th Congress (69 Stat. 624).

(e) Private organizations concerned with foreign policy.—(1) Limitation on participation. When a private organization is concerned primarily with foreign policy or international relations, 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 meeting, regardless or 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 and have no connection with the field in which an employee does his official work, 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 United States politics. The Hatch Political Activity Act of August 2, 1939 (5 U.S.C. 1181), 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.

§ 10.735-214 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. When an employee is authorized by law or required by a military commander of the United States to wear a uniform, care shall be taken that the uniform is worn only at authorized times and for authorized purposes.

(b) Conventional attire worn by chauffeurs, elevator operators and other miscellaneous employees are not con

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