B-124927, JUL. 19, 1956

B-124927, JUL. 19, 1956

TO THE SECRETARY OF STATE:

ON FEBRUARY 24, 1956, THE DEPUTY UNDERSECRETARY OF ADMINISTRATION REQUESTED RECONSIDERATION OF OUR DECISION OF OCTOBER 6, 1955, TO YOU, WHICH SUSTAINED THE EXCEPTION TAKEN IN THE AUDIT BY OUR OFFICE TO A PAYMENT OF $841.35 IN THE ACCOUNTS OF HELEN E. GEEN, U.S. DISBURSING OFFICER, OTTAWA, CANADA. THAT PAYMENT REPRESENTS PER DIEM AND STEAMSHIP FARES INVOLVED IN TRAVEL ON A VESSEL OF FOREIGN REGISTRY BY MR. HERBERT F. PROPPS, A FOREIGN SERVICE OFFICER, AND THE EXCEPTION THERETO WAS TAKEN UPON THE GROUND THAT THE PAYMENT WAS IN VIOLATION OF SECTION 901 OF THE MERCHANT MARINE ACT OF 1936, 49 STAT. 2015. REQUEST IS ALSO MADE FOR DECISION ON ADDITIONAL QUESTIONS INVOLVED IN THE APPLICATIONS OF THAT ACT.

THE REFERRED-TO STATUTE PROVIDES, AS FOLLOWS:

"ANY OFFICER OR EMPLOYEE OF THE UNITED STATES TRAVELING ON OFFICIAL BUSINESS OVERSEAS OR TO AND FROM ANY OF THE POSSESSIONS OF THE UNITED STATES SHALL TRAVEL AND TRANSPORT HIS PERSONAL EFFECTS ON SHIPS REGISTERED UNDER THE LAWS OF THE UNITED STATES WHERE SUCH SHIPS ARE AVAILABLE UNLESS THE NECESSITY OF HIS MISSION REQUIRES THE USE OF A SHIP UNDER A FOREIGN FLAG: PROVIDED, THAT THE COMPTROLLER GENERAL OF THE UNITED STATES SHALL NOT CREDIT ANY ALLOWANCE FOR TRAVEL OR SHIPPING EXPENSES INCURRED ON A FOREIGN SHIP IN THE ABSENCE OF SATISFACTORY PROOF OF THE NECESSITY REFOR.'

MR. PROPPS, WHILE STATIONED IN LONDON, ENGLAND, RECEIVED INSTRUCTIONS ON MARCH 20, 1953, TRANSFERRING HIM TO QUEBEC, CANADA. HE SECURED ACCOMMODATIONS ON A VESSEL OF FOREIGN REGISTRY WHICH DEPARTED LIVERPOOL, ENGLAND, ON MAY 5, 1953, AND ARRIVED AT QUEBEC ON MAY 12. AMERICAN VESSELS, HOWEVER, WERE SCHEDULED TO SAIL FROM SOUTHAMPTON, ENGLAND, TO NEW YORK, NEW YORK, IN THE INTERIM, AND THERE IS NO INDICATION THAT HE ATTEMPTED TO SECURE ACCOMMODATIONS THEREON. VESSELS OF AMERICAN REGISTRY DO NOT CALL AT QUEBEC. IT IS 553 MILES FROM NEW YORK BY THE USUALLY TRAVELED RAILROAD AND SUCH TRAVEL COULD NOT BE PERFORMED IN LESS THAN 13 HOURS.

WE HELD IN 31 COMP. GEN. 351, 353, THAT FOREIGN VESSEL FURNISHING DIRECT TRANSPORTATION BETWEEN THE PORT OF ORIGIN OF OCEAN TRAVEL AND THE PORT OF DESTINATION GENERALLY MAY BE USED WHERE A ROUTING DESIGNED TOUSE AN AMERICAN VESSEL INVOLVES CONSIDERABLE LAND TRAVEL OR TRANSPORTATION ON A FOREIGN VESSEL FOR PART OF THE JOURNEY. HOWEVER, THE EXPLICIT REQUIREMENT WAS MADE THAT THE TRANSHIPMENT DESIGNED TO UTILIZE AN AMERICAN VESSEL INVOLVE EXCESSIVE EXTRA COST AND DELAY. THIS REQUIREMENT WAS THE BASIS FOR OUR DECISIONS OF OCTOBER 20, 1953, AND JULY 26, 1955, B-106864, WHICH HELD THAT A GENERAL AUTHORIZATION FOR EMPLOYEES IN CERTAIN AREAS TO USE FOREIGN VESSELS FURNISHING DIRECT SERVICE COULD NOT BE GIVEN BECAUSE OF A ROUTING DESIGNED TO UTILIZE AMERICAN VESSELS IN THE AREA CONCERNED "INVOLVES TRAVEL BY RAIL, OR SHIP AND RAIL, OF LESS THAN A DAY.' WHILE SUCH DECISIONS USE THE PHRASE "OF LESS THAN A DAY," WE UNDERSTAND THAT AS AN ACTUALITY IN THE AREAS THERE CONCERNED THE TRANSHIPMENT REQUIRED TO UTILIZE AMERICAN VESSELS WOULD NOT INVOLVE ADDITIONAL TRAVEL BY RAIL, OR SHIP AND RAIL, IN EXCESS OF 12 HOURS. EVEN THOUGH SECTION 901 OF THE MERCHANT MARINE ACT OF 1936, REQUIRES THE USE OF AMERICAN VESSELS WHENEVER AVAILABLE, IT DOES NOT REQUIRE AN UNREASONABLE PROCEDURE TO BE FOLLOWED. A-78260, JULY 22, 1936; A-36517, MAY 8, 1931. IT MIGHT APPEAR UNREASONABLE TO EXTEND THE LIMITATIONS OF OUR DECISIONS OF OCTOBER 20, 1953, AND JULY 26, 1955, BEYOND THE APPROXIMATE TRAVEL TIME INVOLVED. FURTHERMORE, A DISTINCTION MAY BE DRAWN BETWEEN SITUATIONS INVOLVING OFFICIAL TRAVEL WHICH ORIGINATES OR TERMINATES AT A PORT AND OFFICIAL TRAVEL WHICH ORIGINATES OR TERMINATES AT AN INLAND CITY. IN THE FORMER, WHERE FOREIGN VESSELS FURNISHING DIRECT SERVICE ARE AVAILABLE, NO TRANSHIPMENT WOULD BE REQUIRED IF AN AMERICAN VESSEL WERE NOT USED AND IN THE LATTER, TRANSHIPMENT IS REQUIRED IN ANY EVENT. IT WOULD APPEAR UNREASONABLE TO REQUIRE AN EMPLOYEE STATIONED AT A PORT WHERE FOREIGN VESSELS FURNISHING DIRECT SERVICE ARE AVAILABLE TO TRAVEL OVER LAND OR BY SEA TO ANOTHER PORT IN ORDER TO UTILIZE AN AMERICAN VESSEL. AS STATED ABOVE, SECTION 901 DOES NOT REQUIRE AN UNREASONABLE PROCEDURE TO BE FOLLOWED. CONSEQUENTLY, AS A GENERAL RULE WE MAY SAY THAT EMPLOYEES WHOSE OFFICIAL TRAVEL ORIGINATES OR TERMINATES AT A PORT SERVED BY FOREIGN VESSELS FURNISHING DIRECT SERVICE ARE NOT REQUIRED TO TRANSSHIP IN ORDER TO UTILIZE AMERICAN VESSELS. A-36237, APRIL 30, 1931.

ACCORDINGLY, AND IN VIEW OF THE FACT THAT AT THE TIME OF RENDERING OUR DECISION OF OCTOBER 6, 1955, THERE APPEARS TO HAVE BEEN SOME UNCERTAINTY AS TO THE OFFICER'S ACTUAL DESTINATION, WHICH IS NOW DETERMINED TO HAVE BEEN QUEBEC, THE AUDIT EXCEPTION WILL BE REMOVED AND WE ARE TODAY ISSUING APPROPRIATE INSTRUCTIONS TO THAT END.

OUR FURTHER ADVISE IS REQUESTED ON A QUESTION INVOLVING EMPLOYEES STATIONED AT TRIESTE, ITALY, AND VENICE, ITALY. THE PORT OF TRIESTE IS SERVED BY THE ITALIAN LINE BUT NOT BY ANY AMERICAN LINE. THE NEAREST PORT FROM WHICH AMERICAN VESSELS SAIL IS GENOA, ITALY, AN OVERLAND DISTANCE OF APPROXIMATELY 300 MILES FROM TRIESTE WITH TRAVEL BY RAIL INVOLVING APPROXIMATELY 10 HOURS. VENICE IS APPROXIMATELY 100 MILES FROM TRIESTE AND 200 MILES FROM GENOA. THE UNDERSECRETARY'S LETTER STATES THAT IN THE CASE OF EMPLOYEES STATIONED AT VENICE THEY WOULD BE REQUIRED, UNDER DEPARTMENT POLICY, TO USE AMERICAN VESSELS SAILING FROM GENOA EVEN THOUGH TRIESTE IS NEARER PROVIDED THE SAILING SCHEDULE WOULD NOT CAUSE UNDUE DELAY. THE QUESTION PRESENTED BY YOUR DEPARTMENT CONCERNING THOSE SITUATIONS IS AS FOLLOWS:

"MAY EMPLOYEES STATIONED AT TRIESTE USE THE ITALIAN LINE VESSELS FROM THAT PORT?

UNDER THE CIRCUMSTANCES, EMPLOYEES STATIONED AT TRIESTE MAY USE FOREIGN VESSELS FURNISHING DIRECT SERVICE. YOUR POLICY REGARDING EMPLOYEES STATIONED AT VENICE APPEARS PROPER SINCE TRANSSHIPMENT WOULD BE REQUIRED IN ANY EVENT AND THE ADDITIONAL TRAVEL BY RAIL FROM VENICE TO GENOA INVOLVES LESS THAN 12 HOURS.

A SIMILAR QUESTION IS POSED CONCERNING EMPLOYEES STATIONED AT PALERMO, ITALY. PALERMO IS A PORT WHICH THE ITALIAN LINE SERVES BUT AT WHICH NO AMERICAN VESSELS CALL. THE NEAREST PORT AT WHICH AN AMERICAN VESSEL MAY BE OBTAINED IS NAPLES, ITALY, REQUIRING TRANSSHIPMENT ON A FOREIGN VESSEL OVERNIGHT. THE QUESTION PRESENTED IN THAT SITUATION IS AS FOLLOWS:

"MAY EMPLOYEES STATIONED AT PALERMO USE VESSELS OF THE ITALIAN LINE DIRECT TO THE UNITED TATES?

THE QUESTION IS ANSWERED IN THE AFFIRMATIVE.

REGARDING THE REQUEST FOR OUR VIEWS ON THE DEPARTMENT'S OPERATING POLICY AS STATED IN FOREIGN SERVICE CIRCULAR NO. 81, YOUR ATTENTION IS DIRECTED TO OUR DECISION OF TODAY TO YOU, UNDER OUR DOCKET NO. B 106864.