B-130740, APR. 2, 1957

B-130740, APR. 2, 1957

TO THE SECRETARY OF THE ARMY:

YOUR LETTER OF FEBRUARY 12, 1957, WITH ENCLOSURES REQUESTS OUR DECISION AS TO WHETHER UNITED STATES GOVERNMENT AGENCIES EMPLOYING INDIGENOUS PERSONNEL IN THE RYUKYU ISLANDS COULD PARTICIPATE AS EMPLOYERS OF SUCH PERSONNEL IN HEALTH INSURANCE, UNEMPLOYMENT INSURANCE, AND SOCIAL SECURITY PROGRAMS PROPOSED TO BE ENACTED BY THE GOVERNMENT OF THE RYUKYU ISLANDS. THE ENCLOSURE SETS FORTH THAT SUCH PROGRAMS SHOULD REQUIRE JOINT FINANCING BY EMPLOYER AND EMPLOYEES AS WELL AS CONTRIBUTIONS BY THE LOCAL LEGISLATURE; THAT IF THE UNITED STATES, THE LARGEST SINGLE EMPLOYER DID NOT PARTICIPATE, THE SUCCESS OF THE ENTIRE PROGRAM WOULD BE JEOPARDIZED; AND, THAT CONSIDERABLE CRITICISM WOULD BE LEVIED AGAINST THE UNITED STATES AS A RESULT. YOUR LETTER CITES OUR DECISIONS OF FEBRUARY 15, 1949, B- 83347 AND DECEMBER 30, 1949, B-91050, IN CONNECTION WITH THE QUESTION PRESENTED.

WE HAVE HELD, GENERALLY, THAT IN THE ABSENCE OF A STATUTE OR TREATY TO THE CONTRARY, PAYMENTS FOR SOCIAL INSURANCE MAY NOT BE MADE BY THE UNITED STATES IN ITS CAPACITY AS AN EMPLOYER OF NATIVES IN A FOREIGN COUNTRY. SEE 23 COMP. GEN. 733, AND CASES CITED THEREIN. HOWEVER, SUCH DECISIONS INVOLVED THE SOCIAL INSURANCE LAWS OF INDEPENDENT GOVERNMENTS OVER WHICH THE UNITED STATES HAD NO CONTROL AND WERE BASED IN PART UPON THE GENERAL RULE OF INTERNATIONAL LAW THAT ONE GOVERNMENT CANNOT IMPOSE UPON ANOTHER SOVEREIGN STATE ANY OBLIGATION OF THAT NATURE. THE DECISION OF FEBRUARY 15, 1949, B-83347, INVOLVED THE PAYMENT OF TERMINATION COMPENSATION TO AUSTRIAN EMPLOYEES OF THE UNITED STATES FORCES IN AUSTRIA IN CONFORMITY WITH AUSTRIAN LABOR LAWS. THAT DECISION HELD THAT, SINCE THE UNITED STATES GOVERNMENT WAS A MEMBER OF THE QUADRIPARTITE CONTROL COUNCIL WHICH SUPERVISED THE OPERATIONS OF THE AUSTRIAN GOVERNMENT, AND SINCE AUSTRIAN LAWS WERE SUBJECT TO THE APPROVAL OF SUCH CONTROL COUNCIL--- SO THAT, IN CONTRAST TO ITS RELATIONSHIP WITH OTHER FOREIGN SOVEREIGN GOVERNMENTS, THE UNITED STATES GOVERNMENT PARTICIPATED IN THE ADMINISTRATION OF THE AUSTRIAN GOVERNMENT AND WAS COMMITTED TO RESPECT AUSTRIAN LAWS AS APPROVED BY THE COUNCIL--- OUR OFFICE WOULD NOT OBJECT TO SUCH PAYMENTS. LIKEWISE, THE DECISION OF DECEMBER 30, 1949, B-91050, WHICH AUTHORIZED THE PAYMENT OF SUMS DUE IN ACCORDANCE WITH THE SOCIAL SECURITY LAWS OF THE FREE TERRITORY OF TRIESTE, WAS BASED UPON THE FACT THAT THE UNITED STATES GOVERNMENT, TOGETHER WITH THE BRITISH GOVERNMENT, PARTICIPATED IN THE ADMINISTRATION OF THE GOVERNMENT OF THE FREE TERRITORY AND WAS COMMITTED GENERALLY TO COMPLY WITH THE LOCAL LAWS, INCLUDING THE LAWS REQUIRING EMPLOYER INSURANCE CONTRIBUTIONS AS TO ITS INDIGENOUS PERSONNEL.

THE ENCLOSURE TO YOUR LETTER INDICATES THAT THE UNITED STATES EXERCISES POWERS OF ADMINISTRATION, LEGISLATION, AND JURISDICTION IN THE RYUKYU ISLANDS BY VIRTUE OF ARTICLE III OF THE TREATY OF PEACE WITH JAPAN, SUCH ADMINISTRATION BEING VESTED IN THE UNITED STATES CIVIL ADMINISTRATION OF THE RYUKYU ISLANDS (USCAR). IT IS FURTHER INDICATED THAT LEGISLATION PROPOSED BY THE GOVERNMENT OF THE RYUKYU ISLANDS IS SUBJECT TO APPROVAL BY USCAR WHICH, IN TURN, CONFERS WITH INTERESTED AGENCIES OF THE DEPARTMENT OF THE ARMY, AND THAT THE PROVISIONS OF ALL PROPOSED RYUKYUSM SOCIAL SECURITY LEGISLATION WILL CAREFULLY EXAMINED PRIOR TO THE GRANTING OF FINAL APPROVAL.

ON THE BASIS OF THE INFORMATION FURNISHED, THE UNITED STATES PARTICIPATES IN THE ADMINISTRATION OF THE GOVERNMENT OF THE RYUKYU ISLANDS AND THE PRINCIPLES APPLIED IN THE DECISIONS REFERRED TO ABOVE ARE APPLICABLE HERE. ACCORDINGLY, WE WOULD NOT BE REQUIRED TO OBJECT TO PARTICIPATION BY UNITED STATES GOVERNMENT AGENCIES AS TO INDIGENOUS PERSONNEL EMPLOYED BY THEM IN THE RYUKYU ISLANDS IN PROPERLY AUTHORIZED SOCIAL SECURITY PROGRAMS ADOPTED BY THE GOVERNMENT OF THE RYUKYU ISLANDS.