Rules for Re-entry Q breign Service Joui 1.25 JANUARY 1983

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FORMERLY SHERRY TOWERS HOTEL 2117 E Street, N.W., Washington, DC 20037 (800) 424-2859 (202) 861-8200 ForeignService.Jou, ■! COVER: Will the ever-increasing stockpiles of superpower nuclear weapons make Atlas shrug? In this issue we look at a new proposal to help ease the burden. Pen and ink by Steve Mendel son.

Officers and Members of the Counterpoint: State’s Ranking System 19 Governing Board DENNIS K. HAYS, President In response to the article by RaymondJ. Wach in the last ANTHEA S. DE ROUVILLE, Vice President issue, the director of personnel evaluation argues that State’s DOUGLAS P. BROOME, Second Vice ranking system is fair and dependable. By John Rouse. President IRVING A. WILLIAMSON JR. , Secretary BROOKE HOLMES, Treasurer Rules for Re-entry 22 RALPH E. BARNETT, JUANITA L. NOFFLET, Coming home and starting over is something most Foreign AID Representatives JAROSLAV J. VERNER, USIA Service employees will eventually face. These ten rules could Representative ADRIAN A. BASORA, BARBARA HUGHES make the transition easier. By Dick Irish. THOMAS J. MILLER, State Representatives Restarting START 26 L. DOUGLAS HECK, SPENCER KING, CHARLES S. WHITEHOUSE, Retired Representatives The START talks in Geneva seem stalled. Authors David Staff Linebaugh and Alexander Peters review existing arms-limi¬ CECIL B. SANNER, Acting Exec. tation proposals and suggest a plan of their own. Director!Administrative Director SUSAN HOLIK, General Counsel SABINE SISK, Members’ Interestl Journal: Memories of Saigon 32 Grievance Representative PAT GUILD, Executive Secretary A message from Washington sends a Foreign Service officer Congressional Liaison from the lazy pleasures of the Riviera to the coups, demi- ROBERT M. BEERS coups, and coupettes of 1964 Saigon. By Howard Simpson. Scholarship Programs DAWN CUTHELL

Letters 2 Foreign Service People 36 Foreign Service Journal Book Reviews 8 Association News 38 Plus (Ja Change 18 Foreign Service Tax Guide .41 Editorial Board JOHN D. STEMPEL, Chairman DAVID WILSON, Vice Chairman FRANCIS X. CUNNINGHAM The Foreign Service Journal is the magazine of profes¬ persons having an active interest in, or close associ¬ JAMES ROUSH sionals in foreign affairs, published 11 times a year ation with, foreign affairs. Membership dues are: TAIRA ST. JOHN by the American Foreign Service Association, a Active Members—Dues range from $52 to $117 non-profit organization. Material appearing herein annually. Retired Active Members—Dues are $40 JAROSLAV VERNER represents the opinions of the writers and does not annually for members with incomes over $20,000; necessarily represent the official views of the De¬ $25 annually for less than $20,000. Associate partment of State, the U.S. Information Agency, Members—Dues are $25 annually. All dues pay¬ Staff the Agency for International Development, the ments include $7.50 allocation for the Journal and STEPHEN R. DUJACK, Editor United States Government as a whole, or AFSA. Association News, per AFSA Bylaws. Subscription to the Journal-, one year (11 issues), FRANCES G. BURWELL, Associate While the Editorial Board is responsible for general content, statements concerning the policy and ad¬ $10.00; two years, $18.00. For subscriptions go¬ Editor ministration of AFSA as employee representative ing abroad, except Canada, add $1.00 annually. under the Foreign Service Act of 1980 on the edito¬ Second-class postage paid at Washington, D.C. rial page and in the Association News, and all and at additional post office. POSTMASTER: Send Advertising Representatives communications relating to these, are the responsi¬ address changes to Foreign Service Journal, 2101 E JAMES C. SASMOR ASSOCIATES, bility of the AFSA Governing Board. St., N.W., Washington, D.C. 20037. Microfilm copies of current as well as of back 521 Fifth Ave., Suite 1700, issues of the Foreign Service Journal are available ©American Foreign Service Association, 1983. New York, N.Y. 10017. through the University Microfilm Library Services, 2101 E Street, N.W., Washington, D.C. (212) 683-3421 Ann Arbor, Michigan 48106, under a contract 20037. Telephone (202) 338-4045. Offices in JOSHUA B. POWERS, LTD., signed October 30, 1967. State Dept.: 632-8160/2548 Membership in the American Foreign Service 46 Keyes House, Dolphin Sq., Association is open to the professionals in foreign January 1983- Volume 60, No. 1. ISSN 0015- London SW1. 01-834-8023/9- affairs overseas or in Washington, as well as to 7279. International Representatives. What do LETTERS

ike. JFK Questioning ‘Europe’ Robert Olson is probably right in empha¬ sizing the possibilities for and strengths of a more consensual and pluralistic decision¬ making structure within the Atlantic alli¬ & Nixon ance {“The European Question,” Novem¬ ber]. However, his view that a withdrawal by the United States from its European preoccupations will ease current East- West tensions can be challenged. It is pre¬ have in cisely the guarantee of American friend¬ ship, cooperation, and protection that makes possible the pursuit of European economic and political interests in the na¬ common? tional and supranational spheres. There is no guarantee that the Europe¬ ans would achieve a renewed sense of pur¬ pose and unity if left to their own devices. Indeed, any adjustment in the territorial They were moved by status quo—which has provided peace and stability for thirty-five years—would re¬ quire American and Soviet cooperation. FIDELITY STORAGE Also, the American presence in the alli¬ ance makes the German economic and military resurgence palatable to the French From presidents to outside of the Beltway, with and the British and encourages (albeit fre¬ plenipotentiaries, super-secure vault storage for quently in opposition to U.S. desires) Eu¬ Washingtonians choose Fidelity your silver and other valuables. ropean unity. Storage, the company with We are the only State A U.S. policy of withdrawal from Eu¬ more than 75 years of Department contractor with rope, which Olson claims would benefit experience. Fidelity is one of both a quality control program both the United States and Western Eu¬ the area’s largest moving and and fulltime inspector to rope, would not automatically be in the storage companies, with six ensure the highest standards. interests of the Europeans. It is true that during the 1970s Europe has developed locations throughout the metro increasingly different economic and securi¬ area—from the District to We have moved Patton, ty interests from those of the United Virginia to Maryland. MacArthur and Doolittle. States. We need to respond to these inter¬ Fidelity’s warehouses are the From generals to general ests and concerns and not act on a belief largest and most advanced service officers, join a moving that a policy that benefits us will naturally containerized facilities inside or crowd. be in the interests of our allies. Finally, by questioning the stability of the U.S. commitment to the defense of Europe, Olson’s provocative article may well push the Europeans away from unity and steadfastness of purpose. It is precisely the fear of gradual U.S. withdrawal from European concerns that recently led Chan¬ cellor Kohl—who is no Bismarck—to of¬ fer Americans repeated assurances of Ger¬ man military, political, and ideological allegiance. Although the pax americana of Inbound or Outbound, Storage or Air Freight, call Fidelity Storage the early post-war period is clearly over, (703) 971-5300 • PO Box 10257, Alexandria, Va. 22310 this is not the time for even a gradual disengagement from Europe. Only after

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City State ZIP Code FILL OUT AND MAIL TODAY! AFN7197 J the Europeans reach a consensus among should very much like to see that debated themselves will Olson's article be a propos. in depth. Peoples Drug—One of America 's CHARLES R. FOSTER In this regard, Foster and anyone else Largest Drug Chains Provides Committee on Atlantic Studies sufficiently concerned might be interested Washington, D.C. in the recent book by James O. Goldbor- ough. Rebel Europe, reviewed in the same PRESCRIPTIONS Author Robert Olson responds: issue of the Journal. According to the re¬ I think Mr. Foster has missed the point. viewer, Goldborough contends that "Eu¬ FOR THE The central point of my article is that rope, which the United States considered the form of the European Question has permanently weakened and divided, has IS/ WORLD changed once again, that it is no longer become a viable political entity in its own Filled and Mailed Immediately solely the question of Soviet domination of right, demonstrating renewed confidence the Continent but, rather, of the revival of and an ability to deal with the world’s Europe itself searching for the restoration complexities." The book concludes, says "SHQPBYJAAST of its integrity: political, economic, phys¬ the reviewer, that “because France remains ical, and moral. Essentially, this is a good outside, NATO hinders, rather than encour¬ thing because it will promote greater uni¬ ages, the development of that cooperative □ All prescriptions filled immediately ty—which the United States has generally defense effort. Only such cooperation, cou¬ Immediate mail backs □ favored—and provide a European counter¬ pled with a reduced United States role, □ Send no money—Pay after receipt weight to the Soviets, more effective, nat¬ will encourage the Europeans to shoulder □ Pay Peoples low prices plus postage ural, and healthy than the present situa¬ more of the burden of their own defense.” and packing Or they might read the speech Europarlia¬ □ Nationally famous cosmetics, too tion. From this I have concluded that the □ Sundries of every description United States should recognize and wel¬ ment President Pieter Dankert gave to the □ WE MAIL TO EVERY COUNTRY come this change and do everything it can Mid-Atlantic Club in Washington in Sep¬ to encourage its development, that this tember. Noting that U.S. and European will gradually help to ease the more ex¬ "objectives and interests no longer run T "j PEOPLES DRUG travagant East-West tensions, and that the parallel,” Dankert states that the Europe¬ United States will then be better able to ans must begin to develop a common and maintain a more balanced perspective on more independent approach to the require¬ its own global role. The suggested means ments of Western security. He calls for a 2125 E St. NW toward this end are for the United States more assertive and independent Europe to Washington, D. C. 20007 (1) to stay out of the way, (2) to revive the develop a security policy relevant to its political character of the alliance, and (3) own experience and the expectations of its to encourage the Europeans themselves. people, and to adopt responsibilities com¬ Unfortunately, Mr. Foster seems to mensurate with its economic status and have interpreted this to mean that I have with its “dignity and self respect.” Such a recommended an American "withdrawal’' policy, he states, “can only be developed BUY from within, it cannot be imposed from from Europe and have questioned the United States' commitment to Europe’s outside.” defense. This is not correct, as the reiter¬ United States withdrawal from Europe SELL ation of the basic theme demonstates. In¬ is not the question and not even the issue. deed, I have stated explicitly that, under The question is the restoration of Europe; the status quo, “to disengage from our and the issue is how the United States INVEST interests, involvement, and responsibil¬ should respond to it. ities would be to throw away an invest¬ ment of thirty-five years and billions of Recruiting Is Honest Ed Joyce dollars and to place the United States itself Retired FSIO in jeopardy.” I do not think, therefore, I wish to comment on the article by Edwi- that Foster and I have any grounds for naS. Campbell, “Wanted: An Honest Re¬ LICENSED IN D.C. disagreement on that score. There is no cruitment Policy” [November], and VIRGINIA doubt, as he states, that a threat of "with¬ I have been a Foreign Service officer drawal” now might discourage further Eu¬ since 1974 and am on my fourth assign¬ ropean unity, that it would exacerbate ment. I have also been a Foreign Service East-West tensions, and would certainly spouse since 1968. Since you have taken ^MOUNT shake Europe to its boots. the trouble to publish Ms. Campbell’s Where Foster and I do appear to differ is complaints about the Foreign Service, in our interpretation of the state of Europe. please consider some positive words from My interpretation has been described. Fos¬ someone who has not only been a depend¬ ‘REALTY A ter appears to ignore or to reject this view ent, an officer, had children overseas, V-INC- and to continue to regard Europe as if changed careers but has also just finished 6257 Old Dominion Dr. nothing has happened since 1945. I cannot her minority/women recruitment effort on McLean, Va. 22101 imagine that he genuinely holds that view behalf of the Board of Examiners. Off: 821-8300 but, if he does not, the question is, What As a recruiter, I finally actually read all Res: 821-2109 is the view on which he does base his own the material published by the Department conclusions? This is the real issue, and I of State and found it all honest and accu-

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3850 Penn Belt Place Forestville, Maryland 20747 301/420-3300 traumatic experiences of a hostage is an¬ other. With a controlled yet vivid style, Rosen unfolds the horrid details of the dip¬ SPARE lomats' captivity, their cruel treatment BOOK and mental torture by the young zealots— handcuffed and blindfolded, being moved YOURSELF from cell to cell, deprived of contact with REVIEWS each other and the outside world. Barbara Rosen's story is that of a young the cost of luxury housewife coping with an unexpected situ¬ without sacrificing A Hostage Family ation and is more forceful for its unvar¬ nished directness and amazing sincerity. comfort. THE DESTINED HOUR: The Hostage Crisis After an initial withdrawal, she emerged and One Family’s Ordeal. By Barbara and as one of the saner voices of the hostage Barry Rosen with George Feifer, Doubleday & We offer the finest blend of convenience period, as witnessed by her many televi¬ and economy (suites with built-in kitch¬ Company, 1982. $17.95. sion appearances and meetings with Jim¬ ens, and central location — within easy my Carter, Giscard d'Estaing, Helmut walking distance of the State Depart¬ Although this is the story of one family’s Schmidt, and the Pope. While seeking to ment, Federal Reserve, OPM, GSA, long nightmare, in a wider sense, it is the foster an international climate of coopera¬ Metro . . .). Take it easy on yourself at story of all 52 American hostages in Iran, tion that would facilitate the release of the and also of the nation's anguish during the hostages, Barbara Rosen also urged re¬ 444-day crisis. The Destined Hour is the straints on the media's handling of the is¬ ( day-by-day account of the experiences of sue, fearing that sensational treatment lRlyerside Tmers Barry Rosen and his wife, Barbara—one a would further harden the already petrified blindfolded prisoner, subjected to physical stand of the Iranian authorities. But the and mental stress, the other, although liv¬ daily show on the evening news went on. ‘-Hotel iVi ing with her two small children and par¬ “Watching our own set with my new in¬ ents in Brooklyn, nevertheless a captive of sights,” she writes, “I realized that all the 2201 Virginia Avenue, N.W. a different sort, lingering in a seemingly hostage families, and even the hostages Washington, DC 20037 fathomless vacuum. themselves, were being used in competi¬ (800) 424-2870 or (202) 452-4600 The bitter irony was that Barry Rosen tion for audience rating.” More than mere¬ loved Iran, its people, and culture. To him ly an account of her life during the hostage the fiasco should have been extremely crisis, Barbara's report is an honest and painful, yet, except for certain individual daring criticism of American mass media, militant guards, there is no word of hatred especially the television industry, which toward Iran in the entire book. If any¬ she came to view as “the key influence on thing, his sympathies were with the revo¬ the treatment of public affairs as soap lutionaries and for the liberation of the opera.” Iranian people from the despotic rule of the The Destined Hour is must reading, for Shah and his dreadful network of secret we all, to a certain degree, shared this police. trauma. No matter what the circum¬ The book provides valuable insight into stances, we will carry some of the scars of the history of Iran, its social and psycho¬ this national nightmare. As for Barbara logical makeup, as well as shedding new and Barry Rosen, and for the rest of the light on the background of events that hostages and their families, it is hoped that caused the angry, popular upheaval that the ordeal will give them a new insight suddenly turned into a hate-America cam¬ into the future, however difficult adjust¬ paign. What was at the root of this pecu¬ ing to the present. —JACK KARAPETIAN liarly Iranian suspicion of foreigners? Ros¬ en touches the source of the enigma: Cold War Success

Surely it comes from a deep national lack of THE AUSTRIAN SOLUTION: International self-confidence: a fundamental insecurity Conflict and Cooperation. Edited by Robert A. . . . grown mostly from the country's con¬ Bauer, Johns Hopkins Foreign Policy Institute, stant overrunning by Turkic and Mongol University Press of Virginia, 1982. $12.95. occupiers. It was one of the oldest civiliza¬ tions, with many splendid cultural achieve¬ In 1980, the 25th anniversary of the Aus¬ ments in which deep pride could justifiably trian State Treaty revived interest in that be taken. But invaders looted and subjugat¬ unusual instance of successful East-West ed, and Iranians learned to swagger to hide negotiations. This little volume draws on their humiliation. Yet more humbling con¬ cessions extracted by the British and Rus¬ presentations from two symposia held to sians within the last century hardly helped. commemorate the event; it features recol¬ lections of American participants in the Understanding the Iranian collective occupation as well as the observations of psyche is one thing; living through the several knowledgeable Austrians.

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One or two chapters 220V 220V Bolivia 110'220V Kenya 220V 220V are only marginally relevant to the central Bonaire 110220V 110V 220V 220V Kuwait 220V 110220V theme, and others suffer from the limita¬ Brazil 110220V 110/220V 220V Brit Honduras : ;o.'22ov Lebanon . 110>220V tions imposed by a symposium format. 110/220V Lesotho 220V Switzerland 110 220V ... 110 220V 110 220V 110 220V What remains fascinating, however, are Libya i!0 220V 220V ,220V . 1I0220V the insiders’ insights into one of the few 110/220V Luxembourg .11 0 220V 220V 110 220V Macao 110 220V 220V postwar "solutions” that were actually re¬ 110V Madeira 220V Canal Zone .110 220V Majorca 110V 110'220V alized. —KARL F. MAUTNER Canary1 110 22CV Malagasy Rep 220V 220V Cayman I liOV 220V Trinidad 110 220V 220V Malaysia 220V Tunisia 110220V 110 220V Turkey 110220V Channel I (Brit) 220V 220V Turks & Caicos 1 i 10V Attacking Terrorism Martinique 110 220V Uganda 220V China 220V 220V United Arab Emirates 220V Mexico 110.220V Upper Volta 220V COUNTERATTACK. By Christopher Dodson 110 220V 110 220V 220V 220V USA . 110V and Ronald Payne, Pacts on File, Inc., 1982. Morocco 110220V . 110/220V Cyprus 220V Mozambique 220V US. Virgin 1 110V 110220V 220V 113V Dahomey 220V 110220V li0'220V THE TERRORISTS. By Christopher Dodson 220V Heth Antilles 110 220V 220V 220V 220V 220V and Ronald Payne, Facts on File, Inc., 1982. Dominican Rep 110 220V New Caledonia 220V Yugoslavia 220V Ecuador HO '220V New Hebrides 220V Zaire 220V Egypt 110 220V 220V Zambia 220V El Salvador 110V Nicaragua 110V The authors are reporters who have jointly 110 220V Niger 220V Fiji 220V 220V established something of a reputation in Finland 220V 220V France 110 220V Norway 220V the growing field of terrorism reporting. French Guiana 110 220V 110V 220V Oman 220V These two books are, however, in no way Gambia 220V Pakistan 220V Note: This guide is 110220V Panama 110V comparable. Counterattack is by far the best 220V subject to change. 220V 220V Please check local but is more likely to appeal to those with Great Britain 220V Peru 220V 1I0220V 110 220V voltage. an interest in military history. Greenland 220V 220V 110'220V Counterattack presents an updated survey 220V Puerto Rico 110V 110 220V of the various organizational and policy Guatemala 110 220V Rhodesia 220V Guinea 220V Romania 110 220V decisions made by the major Western countries in response to the growing threat WRITE FOR FREE CATALOG: Our Catalog Is Sent to Administrative of terrorism. The most valuable portion of Officers, Embassies, and Consulates Throughout the World, the book is its description of the forma¬ tion, growth, and performance of the SHOWROOM: 45 I 3 Wisconsin Avenue, N.W. West’s military and paramilitary groups Washington, D.C. 20016 designed to combat terrorism. From this Tel. (202) 362-8300 emerges the argument that the failure of TWX 710-822-9450 GENELECINC WSH the U.S. effort is due to an inability to

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JANUARY 1983 11 overcome the traditional interservice rival¬ 16 pages of color illustrations of such Nixon writes as one who knew the ma¬ ries—rivalries that have in the past ac¬ weapons. This appears to be a book com¬ jor leaders of the postwar period. But the counted for such debacles as the abortive piled from a series of magazine articles, true focus of this book is what drives Rich¬ attempt to rescue the Iranian hostages. On hurriedly prepared without benefit of ei¬ ard Nixon, not the nature of leadership. the other hand, there has obviously been ther an editor or proofreader and com¬ He writes: much more success on the part of our allies pressed into book form. There are so many I have watched some leaders succeed and in meeting the terrorist threat, particular¬ repetitions of anecdotes and of events, others fail, and have had a chance to analyze ly by the British and Israelis. Of particular many almost verbatim from chapter to the reasons from the perspective of my own interest is the account of Ariel Sharon’s chapter, that the reader soon wearies of the experience. Having known both the peaks efforts at forming the first Israeli counter¬ whole shoddy exercise. and the valleys of public life, I have learned terrorist team. Following the usual Israeli —MICHAEL F. SPEERS that you cannot really appreciate the heights precept of “an eye for an eye,” Sharon’s unless you have also experienced the depths. group responded to the killing of an Israeli Profile of a President In this book, Nixon distinguishes be¬ woman by Palestinians by invading and tween wartime leaders, those who lead in dynamiting a Palestinian West Bank vil¬ LEADERS: Profiles and Reminiscences of Men quiet times or quiet ways, and those who lage. Sixty-two persons were killed. The Who Have Shaped the Modern World. By lead less powerful countries. He remi¬ resulting public outcry was apparently not Richard Nixon, Warner Books, 1982. nisces that “. . . all of the really strong dissimilar to that Sharon brought upon $17.50. leaders I have known have been highly in¬ himself following events in Beirut last au¬ telligent, highly disciplined, hard work¬ tumn. This book is worth reading so long Leaders is former President Nixon’s im¬ ers, supremely self-confident, driven by a as the reader does not mind the basically pressions of government leaders he has met dream, driving others. All have looked be¬ military thrust of the message. and known during his 3 5-year public serv¬ yond the horizon.” The Terrorists, by the same authors, pre¬ ice career. If he had limited his narrative to Winston Churchill, Charles de Gaulle, sented as the revised 1982 edition in pa¬ reminiscences, the book would be harm¬ Douglas Mac Arthur, Shigeru Yoshida, perback, is simply dreadful. While its less enough, but unfortunately, he di¬ Konrad Adenauer, Nikita Khrushchev, one-page summary descriptions of the ma¬ gresses into “analyses” on the nature of and Zhou Enlai are cited as exemplars of jor terrorist groups active today is interest¬ leadership throughout the book. If one is such qualities, singled out as “leaders who ing, the book provides the reader with lit¬ tempted to read Leaders, the gossipy narra¬ changed the world. ” The ways they made a tle else. If one is a charter member of the tive and incoherent analysis on the nature difference, the characteristics that enabled NRA, the chapter on terrorists’ weapons of leadership are tolerable only for the in¬ them to shape events, and how they did it might be of interest, together with some sights gained on the writer. are the focuses of the narrative. Nixon met all but Zhou Enlai when he was vice presi¬ dent, and his fascination is clearly with how they salvaged their political careers Get a lot for your Money! from personal and professional defeats and setbacks. For $49 to $80 single occupancy, you get suites with equipped Italian Prime Minister de Gasperi, kitchens, free HBO in color, gameroom, coffee shop, daily free Ghana’s Nkrumah, Indonesia’s Sukarno, continental breakfast and valet service. India’s Nehru, Magsaysay of the Philip¬ pines, Ben-Gurion and Meir of Israel, Step outside our front door and you get George Washington Nasser and Sadat of Egypt, the Shah of University, The State Department, The White House and the Mall Iran, Saudi King Faisal, Lee Kuan Yew of

to the right — and the Kennedy Center, Historic Georgetown Singapore, and Australian Prime Minister and delightful restaurants & shops to the left. Foggy Bottom Menzies are all profiled in a single chapter Metro Stop is convenient for more far-flung excursions. as “new leaders in a time of change.” Each was notable in his or her own way, but not WHERE DOWNTOWN MEETS GEORGETOWN on the scale of the wartime leaders. They are profiled not for their own unique con¬ Call for reservations locally or toll-free at: tributions to postwar development, but as unfortunate examples of peacetime leaders - - 202 965-6200 800 424-3754 whose qualities of leadership are not as easily measured or as dramatic as those of wartime leaders because they led relatively powerless nations. As Nixon writes: “Lee CIRCLE INN Kuan Yew and Robert Menzies . . . would have ranked with Gladstone and Disraeli had they been prime ministers of Britain rather than Singapore and Australia. . . .” „ If* I* Jff- Such speculation implies that the qualities each exhibited were not fully recognized or IRIS"- s appreciated, and were therefore wasted on PENNSYLVANIA AVENW small nations or quieter times. i Washington, DC 20037 m Reading Leaders, one senses that Rich¬ ard Nixon fears his accomplishments, par-

12 FOREIGN SERVICE JOURNAL ticularly those in foreign policy, will be declaration of October 1977 more than on the “unmatched influence of the Israel overshadowed by the circumstances of his four days before concluding a contrary lobby in American politics” that has per¬ downfall, and that this book is his appeal agreement with Israeli Foreign Minister mitted concern for Israel’s security “to pre¬ to be judged by the company he kept. Moshe Dayan, a development Tillman at¬ empt other vital interests in American —-JOAN LESLIE HARRELL tributes to the widespread outcry from policy.” Tillman sees the Camp David Jewish groups with their very special sus¬ framework as an effort to impose a settle¬ The Israeli Lobby picions of the Soviets. Tillman notes (but ment on the Palestinians by superior Israe¬ in this reviewer’s opinion undervalues) the li power. The real issue for him is “not THE UNITED STATES IN THE MIDDLE EAST: American public’s suspicion of all Soviet whether the settlement will be imposed or Interests and Obstacles. By Seth P. Tillman, policy, a suspicion that Tillman correctly not, but in what degree it will be imposed Indiana University Press, 1982. describes as based more on what the Sovi¬ and by whom.” He believes the United ets say and do elsewhere than on what they States should change its role “from media¬ In this book, the former staff assistant on say and do in the Mideast. tor to arbiter of peace,” and supports his Senator Fulbright’s Senate Foreign Rela¬ Tillman’s chapters on Saudi Arabia views with carefully chosen quotes from tions Committee draws on insights gath¬ (“The Politics of Oil”), on Israel ("The Chaim Weizmann, David Ben-Gurion, ered over many years of experience as well Politics of Fear”), and on the Palestinians and Nahum Goldmann. as carefully documented research. It is a (“Nation in Diaspora”) are more pedes- Tillman subscribes to what he describes successful mix. rian—and perhaps more open to criticism as a consensus formula for peace that com¬ Tillman’s most valuable contribution is from the experts on each of these subjects. mands “the open support of most Mideast his uninhibited description of lobbying Throughout, however, Tillman adopts a specialists out of government and, by pressures brought to bear—particularly on moderate, expository viewpoint which available indications, the discreet support members of Congress—on behalf of Israel. should please the unbiased reader. He in¬ of many within government.” That for¬ He is more specific in describing the effects dicates respect for the judgment of long¬ mula has been stated in the controversial of the “Israel Lobby” on U.S. policy than time professionals in the field and even has “Brookings Report” of 1975 (which advo¬ has been any other American writer with a few kind words for “State Department cated self-determination for the Palestin¬ comparably respectable credentials to Arabists.” ians) and by academic and diplomatic tes¬ date. Tillman’s concluding, prescriptive timony before the Senate Subcommittee The book's other important contribu¬ chapter on achieving peace lays the blame on Near Eastern and South Asian Affairs in tion is its careful dissection of Soviet policy for a “chronically unbalanced” U.S. Mid¬ 1975 and 1976. Tillman's own book will in the Mideast. Tillman rues President east policy—which “despite certain tacti¬ undoubtedly prove controversial, and a Carter’s failure to give the U.S.-Soviet cal successes remains a strategic failure”— good value. —GEORGE B. LAMBRAKIS Picasso Stayed Here.

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JANUARY 1983 13 Collaboration and Resistance

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16 FOREIGN SERVICE JOURNAL also likely to become more intertwined Books in Brief with trade problems, causing resentment Moving with... among the Japanese and requiring sensi¬ CROATIA AND THE CROATIANS: A Selected tive handling. —RICHARD B. FINN and Annotated Bibliography. By George J. AMERICAN Prpic, Associated Book Publishers Inc., 1982. Ideology in France An extensive bibliography accompanied SECURITY by a chronology and written by a Croatian STORAGE SOCIALISM OF A DIFFERENT KIND: Reshaping 11 Hudson Street Annapolis, MD 21401 who is now a U.S. citizen and history 8359 Ardmore/Ardwlck Road Landover, MD 20785 the Left in France. By Bernard E. Brown, professor. Greenwood Press, October 1982. $29-95. LAND/SEA/AIR SPACE: The High Frontier in Perspective. By Francois Mitterrand came to socialism Daniel Deudney, Worldwatch Paper #50, Overseas specialists in . . . from a tradition of liberalism and secular¬ 1982. $2. 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Foreign Service Journal, January 1973: Like everyone, you’re now "There are in the State Department today about 50 officers who speak and read eligible to take advantage of the $ well enough to use it professional¬ 2,000 IRA tax break. Find out how ly. Several have the experience and qualifi¬ you can put an IRA (Individual cations to be an ambassador, but instead, Retirement Account) to work for the president recently appointed an am¬ you. Just call or write for more bassador who, whatever his other talents information. may be, lacks such an expertise. . . . There is no substitute for an ambassador G. Michael Bache who is also an expert. ES.O. Retired "But this fits a broader pattern. Of the 14 American ambassadors to countries around the rim of Asia from India to Ja¬ 1211 Connecticut Ave., N.W., Washington, D.C. 20036 pan, only two can handle usefully the local 202-861-4813; 800-368-5620; Telex: 710-822-9550 (non-colonial) language.” —GEORGE R. PACKARD

Foreign Service Journal, January 1958: Prudential-Bache “The growth of Soviet power requires the growth of counter-power among those na¬ c Copyright 1902 Prudential-Bache Securities Member SIPC Securities tions which are not willing to concede So¬ viet hegemony. With this counter-power the future can be faced with hope and con¬ fidence, as well as with a sober apprecia¬ American Educational Trust tion of its dangers. Growth of counter¬ power is needed in our own country, in other industrially developed nations, and in countries only at the beginning of in¬ dustrial development.” —DEAN ACHESON DIPLOMATIC CAR SALES AND LEASING Foreign Service Journal, January 1933: ALL MODELS "Until quite recently we spent on our De¬ OUR 20TH YEAR IN WASHINGTON partment of State not more than $2 mil¬ Middle East Speaker Referral Service lion annually, and upon its field extension, CAVALIER VW for academic, church and civic audiences ONLY 10 MINUTES FROM KEY BRIDGE the Foreign Service, hardly $ 10 million 4045 LEE HWY. more. Much of the second item was offset ARLINGTON VA 22207 703/525-1900 by fees received for services rendered, with Describe your speaker needs the result that the net cost of the Depart¬ Save on Antiques — and AET will provide guidance on selection, ment and the Foreign Service in the fiscal scheduling and costs. & Interesting Furniture! year 1930-31 was $5.5 million. . . . Even if Congress had voted in the last session the An Opportunity to Buy for Less total expenditures of about $17 million Make your which the executive estimates still called Pickwick Antiques speaker selection from its recommendations for . . . instead of lopping off about $3 and AET will assist with million, the outlay would still have been 1815 Adams Mill Rd., N.W. travel and scheduling arrangements. Washington DC 20009 pitiful compared with over $700 million (202) 265-5360 for the Army and Navy in the same period, and nearly a billion dollars for veterans of Write to AET, 918 16th St.. N.W. former wars. These figures . . . mean $14 Washington, D C. 20006 or Featuring fine furniture, Chinese rugs, ce¬ million for our first line diplomatic de¬ ramics, wardrobes, dining tables, chairs, Telephone Dr. John Duke Anthony fense, against more than $700 million for buffets, desks, bookcases, and much more. (800) 368-5788 or. from Washington, armed defense, or a disproportion of 50 to V Open daily 11 am-5 pm. 659-1866 1 in favor of arms.” ' We Buy and Sell —DEWITT CLINTON POOLE

18 FOREIGN SERVICE JOURNAL Counterpoint State’s Ranking System Is Fair and Dependable

By JOHN H. ROUSE

While I respect the right of only improve the process and its credi¬ FSOs.” This judgment is supported by the Foreign Service Journal bility. The problem with the Wach personally compiled data showing, for to publish any material article is that it claims to demonstrate example, “67 percent of OERs con¬ that it considers appropriate, I do not from the official records that these sys¬ tained at least one superlative” and believe that the magazine served its tems are incompetent, yet the discus¬ FSO block ratings in 1979—80 of about readers well by including the article by sion is founded largely on generaliza¬ half “superlative performance” and Raymond Wach, “Ranking and Your tions supported, if at all, only by most of the rest “excellent.” There is Future at State,” in its December is¬ isolated quotes taken out of context also a lengthy discussion concerning sue. The article does raise legitimate from wherever they might be found. Section “VI-A” {r/'r] of the OER deal¬ questions regarding the fairness and The article is not a discussion but an ing with areas in need of improvement dependability of the Foreign Service attack which risks raising unfounded which contains a number of personal performance evaluation and promotion alarms that may not be easily put to observations such as “almost all FSOs processes that should concern every rest. The suggested remedies would were criticized for poor drafting.” Mr. member of the Service, but it does not largely worsen the process. Wach’s discussion is larded with par¬ address these issues responsibly. It would be interminable to answer tial quotes and personal judgments The article’s criticisms are frequent¬ each of the author’s assertions individ¬ about such perceived problem areas as ly out of date; its discussion is clearly ually, but I would like to respond to negotiated evaluations, lack of consen¬ slanted; its analysis and data are selec¬ his three principal points: (1) that em¬ sus as to what is meant by perform¬ tive and, in important respects, erro¬ ployee evaluation reports are so inflat¬ ance, and confusion of performance neous. The author’s personal convic¬ ed, poorly prepared, and devoid of and potential. tion that the promotion and appraisal standards that Selection Boards are in¬ Even a quick review of the article systems are “fatally flawed” is not sup¬ capable of making defensible decisions will reveal that most of Mr. Wach’s ported by the documentation mar¬ from them; (2) that variations in indi¬ points are not substantiated. His ob¬ shaled and is flatly contrary to the vidual rankings by annual boards servations and conclusions do not jibe judgment of more than two hundred prove that promotion recommenda¬ with the views of others with greater career members of the Service who tions and rankings are undependable; experience both with the former OER have served on Selection Boards in the and (3) that as the bases for selection form and the current Employee Evalu¬ four years during which I have worked board low-ranking are vague and vari¬ ation Report (EER) form. Mr. Wach’s in the Office of Performance Evalua¬ able, this practice should be discussion does point out some real tion. Those board members, who are discontinued. problems in the appraisal system, but themselves part of the constituency, he magnifies and distorts the situation have uniformly come away from their Evaluation Reports to support his totally unfounded con¬ board experience reassured that the Mr. Wach’s main criticism of the clusion that the system is a complete procedures for appraisal and advance¬ 1980 Officer Evaluation Reports failure. ment work fairly and dependably. (OERs) that he reviewed appears to be All employees should understand Open discussion of these central that, as the OERs are “drenched in that in our rating system one can be personnel systems is important and superlatives” and have “low informa¬ very well rated and still only be in the welcome. Better understanding can tional content,” and as negative com¬ midranks of his or her class and occu¬ ments tend to be bland, missing, or pational category. This is partly be¬ John H. Rouse is director of State’s Office of inconsistent, the OER is an inadequate cause excellence is the norm of most Performance Evaluation. basis for “evaluating and rank ordering Foreign Service performance, but it is

JANUARY 1983 19 also the result of inflation in apprais¬ on single ratings or even single rating ommendation for promotion and final¬ als. The OER statistics compiled by officers. They have the full perform¬ ly by a ranking high enough for pro¬ Mr. Wach show higher block ratings ance record of an employee, and they motion. than comparable department data for are enjoined to give particular weight However, that there should be some the OER and EER forms, but analysis to performance over the most recent variations from board to board or year of the current EER block ratings does five years. Should a rating officer ap¬ to year is not surprising. Each year, the show that during the last rating period pear more lenient or more severe than composition of a competition group in about 66 percent of all Foreign Service the norm, boards may review other rat¬ which an employee is being reviewed employees were rated “excellent” and ings by the same rater to test that may change by from 10 to 50 percent 24 percent “outstanding,” with all but conclusion. or more, with promotions out of the one percent of the rest rated “very While these arrangements cannot group and the entry of recently pro¬ good.” In potential, the spread is make the system perfect, they do go far moted, newly eligible employees into wider but still largely confined to the to adjust anomalies and correct prob¬ it. Each year, perhaps half of all For¬ top three blocks, with 26 percent rated lems. The real measure of OER/EER eign Service personnel change posi¬ tops, 55 percent next to the top, and adequacy is, I believe, in the board tions or supervisors. Every year, Selec¬ 18 percent in the third block. Thus we process itself. Each year the members tion Boards are composed entirely of have, in practice, a three-block rating of the Selection Boards are pleased and new members. And virtually every scale for virtually all employees. surprised to find how close the consen¬ year, the department and AFSA revise We also have the general practice of sus among them is. Public members, the Selection Board precepts, includ¬ rating employees in positive terms, employees of other agencies, and career ing criteria, eligibility rules, and com¬ emphasizing accomplishments and Foreign Service members of the boards petition groups. That an employee’s noting deficiencies with fainter praise alike discover that in first identifying comparative standing may change or by indirection rather than through employees for promotion consideration from year to year in unpredictable ways direct criticism except where signifi¬ and then in ranking them through the in this uncertain setting is not surpris¬ cant failings have occurred. Most criti¬ forced-distribution voting system, ing. What is reassuring, in my judg¬ cism in the EER is confined to section there is regularly a high degree of ment, is how consistent the ranking IV-C, which comments on one or more agreement among the members. process appears to be. areas in need of improvement; as Mr. An analysis of the voting patterns of One point should be understood. Wach notes, this section is not com¬ two recent boards confirms this con¬ Before 1979, Selection Boards were pleted with consistency. Greater ob¬ clusion. The data indicate a statistical¬ asked to rank-order all employees from jectivity, and more thorough substan¬ ly significant degree of concurrence top to bottom, and the annual decile tiation of evaluations, would improve among board members in their initial ranking (e.g., 31—40) was recorded on the appraisal process. screening of candidates for promotion each employee’s cumulative data card The existence of these problem areas consideration, midranking, or possible (“scorecard”). On review, however, it does not, however, justify Mr. Wach’s low-ranking before discussion, based was decided that rank-ordering at the conclusion that ratings cannot be re¬ solely on review of the performance midranks was neither useful nor fully lied on as the basis for Selection Board files. This analysis and the repeated dependable. While all Selection decisions. Ours is a narrative rating conclusions of board members directly Boards agree that performance files do system in which block ratings are but contradict Mr. Wach’s personal view. permit dependable decisions at each summary indications. A superlative While the Foreign Service must make end of the spectrum, there is less block rating inadequately documented a continuing effort to improve apprais¬ agreement that the record forms a de¬ will get an employee nowhere. An ex¬ als, there is simply no basis for con¬ fensible basis for determining whether cellent rating well substantiated to cluding that the present appraisal sys¬ someone should be ranked, for exam¬ show what was accomplished and how tem is fundamentally inadequate. In ple, in the 30th rather than 35th performance demonstrates potential fact, the evidence indicates that it is percentile. for advancement will be much more fundamentally sound. Beginning in 1979, Selection persuasive. Boards have reviewed files initially to Variations in rating skill and candor Selection Board Ranking identify those employees to be consid¬ do exist, and more does need to be Mr. Wach’s reference to variations ered for promotion or possible low- done to make all rating officers under¬ in board rankings from year to year ranking, and only these groups have stand and carry out the process better. does not affect this judgment. No sta¬ subsequently been rank-ordered. But correctives are already in place. tistical analysis of board rankings has Scorecard rankings have been general¬ Reviewing officers and review panels been conducted, but my own observa¬ ized to show only whether the employ¬ have the responsibility to assure fair¬ tions indicate a much higher degree of ee was promoted, recommended but ness and balance in the ratings they consistency from year to year than Mr. not reached for promotion, midranked review. Moreover, Selection Boards are Wach apparently found. There is a or low-ranked. By generalizing the composed largely of experienced career general pattern of progression among board review and record in this way, employees who understand the sys¬ most employees of midranking in the we recognize that the process may not tem. Boards do not base their decisions early years in grade, followed by rec¬ permit absolute refinement at all lev-

20 FOREIGN SERVICE JOURNAL els. Perhaps Mr. Wach’s judgments this is underway. Automation should pendent Selection Board process relies would have been different had they have a number of benefits, one of essentially on the integrity of board been based on the practice of the last which is the improved analysis that we members themselves. Members are se¬ four years. all agree would be desirable. lected who have good records and 2. Mr. Wach suggests that OERs representative backgrounds; public Low-Ranking be revised to "establish some standards members help assure a broad perspec¬ Mr. Wach’s comments on low- by which job performance can be meas¬ tive; members’ names are vetted with ranking also apply only to former prac¬ ured” and to “contain . . . only posi¬ AFSA; members are briefed and tice no longer followed. Prior to 1982, tive comments.” His objections and trained over two days in the precepts Selection Boards were required to objectives are not entirely clear but in¬ and procedures before they begin identify and rank-order a designated clude concern that criticism cannot be work. I have never met a member who percentage of the lowest ranking em¬ fairly balanced and his expressed hope did not take the job most seriously nor ployees under review, and to explain that an absence of criticism will lead to seen any evidence that board members the basis for the low-ranking in a state¬ board evaluation solely by a “compari¬ have acted improperly. The integrity ment sent to the employee. The ration¬ son of different talents.” and independence of the Selection ale for this practice was that if an em¬ The EER form adopted in 1981 Boards are their basic strengths, and I ployee is among those who are least moves in the directions Mr. Wach sug¬ fail to see how this would be bolstered competitive, for whatever reason, the gests by identifying and requiring ap¬ by organizational representation on employee and management should be praisal by rating officers and Selection the boards from AFSA or any other made aware of the situation so that it Boards of specific competencies that element. might be addressed. The practice led, study has indicated are most signifi¬ 4. Mr. Wach finally recommends however, to some employees being cant for successful Foreign Service per¬ that selection out be separated from low-ranked for reasons unrelated to formance and by reducing the require¬ the promotion and rank-order sys¬ their performance — e.g., relative re¬ ment in Section IV-C of the report to tems. What he has in mind is not de¬ cency in class, narrow experience or the mention of one area of improve¬ fined, but the system we currently em¬ expertise, unusual assignment pat¬ ment and not two, as was previously ploy does in fact remove ultimate terns. It was concluded that the nega¬ required. It would not be wise, in my decisions on selection out from the tive morale impact caused by requiring judgment, to go further in restricting boards responsible for rank-ordering a minimum percentage low-ranking the information available in EERs, as and promotion. No one is automatical¬ was not warranted by the information this would only exacerbate an already ly identified for consideration for pos¬ gained. imperfect situation. Rather, our efforts sible selection out on the basis of rela¬ Beginning in 1982, Selection should continue to be directed to im¬ tive performance simply because of Boards were given the full authority to proving understanding of the process low-ranking. The Selection Board determine how many, if any, employ¬ and the practice of conscientious must make an explicit decision that an ees warrant being designated as “low- evaluation. employee has not been performing up ranking,” and I would expect this 3. Mr. Wach’s proposals for revis¬ to the standards for the class and cate¬ practice to continue. While it appears ing the Selection Board review process gory and must support that decision by that Mr. Wach misunderstood the for¬ are not entirely clear. His recommen¬ a written justification sent to the em¬ mer practice, which he criticized be¬ dations that appraisal reports empha¬ ployee. A separate Performance Stan¬ cause of the variable explanations size performance and desirable attri¬ dards Board then reviews the full rec¬ given by boards for low-ranking deci¬ butes, and that these be the basis of ord of the employee, including earlier sions, his comments are not all rele¬ Selection Board decisions, essentially board rankings, and makes an inde¬ vant to the current practice which is describe the present system. Boards pendent determination regarding se¬ intended to assure that any low-rank¬ now rate and rank employees compara¬ lection out which must also be justi¬ ing determination by a board is solidly tively on the basis of potential demon¬ fied in writing. Employees designated performance-based. strated through performance judged in for selection out may grieve the deci¬ terms of precept criteria agreed to with sion or appeal to a Special Review Suggested Modifications AFSA. While the process might be re¬ Board where they may be represented Mr. Wach makes four suggestions fined, I can see no basis for systemic by counsel, testify in their own behalf, for revising the evaluation and promo¬ change. call witnesses, etc. tion systems that require comment. Mr. Wach’s other suggestion that Selection out is employed sparingly 1. He proposesAFSA thatrepresentatives pertinent per¬be placed on and under substantial safeguards. This sonnel records be computerized to per¬ boards to safeguard employee interests year only 27 officers were identified by mit more extensive analysis of the ignores the fact that the majority of the Selection Boards for referral among the working of these systems. This is a members on all boards already are ca¬ thousands of Foreign Service employ¬ sensible suggestion. The decision to reer Foreign Service members and im¬ ees reviewed. This group is currently automate records of board rankings has plies that past members have not car¬ under review by Performance Stan¬ already been taken in principle, and a ried out their tasks conscientiously or dards Boards. Ultimately, perhaps half study of the most effective way to do correctly. The integrity of the inde¬ (Continued on page 35.) JANUARY 1983 21 Rules

Coming home and going hack into the job market are problems most Foreign Service employees will eventually face. Some simple rules could make the transition easier.

By DICK IRISH

Coming home and starting over—something most over¬ seas Foreign Service employees must face when they leave the diplo¬ matic profession. It is a time of both new stresses and new opportunities. Though the person ending a Foreign Service career has some special prob¬ lems not faced by colleagues in other fields, in most respects he or she is not much different from other career changers. Job-search experts have adopted several useful rules for chang¬ ing careers. Many of them can be adapted for the former Foreign Service employee. Let’s look at some of the rules that can help make for a success¬ ful re-entry: Rule One: Take Time The shock of re-entry often clouds good judgment. The anxiety to get on with it and be “responsible” can result in poor decision-making. But time is needed to re-adapt to the curious cus-

Dick Irish, vice president of TransCentury Corporation in Washington, D.C., is the author of Go Hire Yourself an Employ¬ ers^ If Things Don’t Improve Soon, I May Ask You to Fire Me! These and his latest book, a guide for working couples called How To Live Separately Togeth¬ er, are published by Anchor Press.

FOREIGN SERVICE JOURNAL for Re-entry toms of the North Americans. So, for¬ employment is a legitimate crisis. ent on organizations to take care of us get looking for work for a few months; Moreover, candidates who spend mon¬ prevents us from taking care of our¬ the point of coming home is to start ey on themselves feel better, impress selves (i.e., finding another job!). feeling at home. employers, and have a competitive Thus, a “self-directed” job search—in Since the pressure to find a job is edge on other unemployed profession¬ which we focus on ourselves—is a good usually greater than the desire to pro¬ als who seem poor and miserable. way to vanquish self-pity, feelings of tect your larger interests, it can be a victimization, and inappropriate de¬ big mistake to take the first job of¬ Rule Three: Stop Feeling pendency. fered. One former special assistant to Sorry for Yourself an ambassador, for example, jumped Rule Four: Break Up into a seemingly attractive job on Cap¬ Self-pity is self-destructive to the and Start Over itol Hill only to spend the next two job searcher. It’s one step away from years extricating himself from a tricky self-contempt. And a candidate who To banish self-pity and get on with political situation. Another ex-For- feels bad about him or herself is bad the job search one must break with the eign Service officer accepted a job in news in a job interview. past. Clinicians call it separation anxi¬ the Rocky Mountains without an in¬ Much of this self-pity comes from a ety. Feeling abandoned by a past em¬ terview or an elementary check-out of belief that one is a victim. A disap¬ ployer need not mean being helpless in the employer. A word to the wise: Ca¬ pointing assignment, an ungrateful finding a new one. But nobody starts veat employee. boss, or being caught in political cross¬ over (in a marriage, a relationship, or a Budget time for the job search. In fire aborts many careers. There is a new career) who hasn’t turned from the these tough times it usually takes at strong tendency to blame others for past and faced the future. least four months for career changers our problems. One ex—Peace Corps The way to turn your back on the with demonstrated job-search skills to representative, for example, went into past is to get angry. Focus on what was find work. For others, unskilled in deep shock after being fired. Six unattractive in your overseas job: un¬ job-search techniques, it can take more months later the anger and disappoint¬ challenging work, excessive travel, a than two years. All the more reason for ment still infected his approach to pos¬ blocked career path, and so forth. Get a returning overseas American to take sible employers. As he discovered, a mad about it and be glad to be rid of it. time off to research the self before sour disposition will spoil an otherwise The point is to get angry at something searching for a job. effective job campaign. other than yourself. Otherwise, an¬ Another reason the jobless blahs ger—turned inward—is bound to Rule Two: Spend Money overtake returning overseas Americans cause depression. And depressed job Nothing benefits a professional job comes from the belief that the employ¬ candidates are depressing to employ¬ campaign as much as the willingness ee is who he or she last worked for. ers. An even better solution is to use to spend money on it. It takes money Thus, to many diplomats abroad, leav¬ the past as a stepping stone—a lesson to find a job—plane tickets, a printed ing the Service means losing their learned—and go on to the next level of resume, temporary living quarters, identities. One ex—FSO was so devas¬ the learning pyramid. etc. Re-entry is expensive. tated by separating from the Service he Starting over means translating The same applies to the overseas was unable to think of himself as any¬ overseas experiences into marketable American who comes home and invests thing but a defrocked diplomat. Iden¬ domestic qualifications. Re-entering in a small business. Many forget to do tity in the job search has nothing to do Americans can apply their internation¬ at least six months of intensive research with organizations. Identity has to do al expertise to a host of stateside crafts, leading to a business plan before mak¬ with accomplishments and functions, trades, and professions. One Foreign ing the plunge—with predictable re¬ many of which should carry over to the Service officer is now a sugar broker for sults. So, whether you are looking for a next job. a soft drink firm; an international de¬ job or researching a business opportu¬ A part of the problem stems from velopment expert now manages a hos¬ nity, budget enough money to live thinking an organization took care of us. pital; and a former Peace Corps staff comfortably for one year after return¬ Thus, in leaving the Foreign Service, member currently raises money for a ing home, plus four to five thousand we feel helpless to take care of our¬ non-profit international organization. dollars to finance the job search itself. selves. But the confusion is in our Thinking overseas experience is useful Savings are for emergencies, and un¬ minds—not our stars. Feeling depend¬ sets the stage for re-entry success.

JANUARY 1983 23 Rule Five: Get Excited with a job that would make them then begin to apply these abilities to happy. the areas of work that appeal to you the The trick in looking for work is to Remember function when prepar¬ most. get excited by the search itself. Dread¬ ing your resume. Focus on functional Now write your resume. Use books ing the idea makes re-entry more diffi¬ skills—organization, report writing, from the library on format. Be very cult than it need be. Treating the job conflict mediation, agricultural and businesslike . . . neither shy nor clev¬ search as an adventure helps to finesse a business skills, and a thousand oth¬ er. Your next employer wants an ob¬ tight labor market. All the more rea¬ ers—that translate into domestic jobs. jective view of who you are—and only son to spend money on yourself, take If an FSO gathered and analyzed infor¬ you have all the information. Use ac¬ an occasional three-day pass to the mation in Ghana, why can’t he do risk- tive verbs—managed, directed, pro¬ beach, and have fun making the career analysis for an American bank? If an duced, created, supervised. Use num¬ change. One exiting FSO so feared the AID agricultural officer specialized in bers. Name specific achievements— job search, he spent the next five years wet-rice farming in Southeast Asia, “wrote 50-page monthly report” . . . gaining a law degree, then an MBA, why can’t she study similar techniques “arranged 125 embassy dinners per before finally looking for work. Fur¬ in South Carolina? If a Peace Corps year” . . . “personally contacted 35 ther schooling simply postponed the volunteer organized credit unions in people regularly to poll commercial re¬ inevitable while undermining his self- Bolivia, why can’t he manage credit sponse.” If the resume needs polish¬ confidence. Part of his problem was unions here at home? ing, an executive search firm or friend thinking his leaving the Foreign Ser¬ This means reprogramming your re¬ with a professional flair may be able to vice was a punishment; his stint in sume and interview presentation away help. graduate school was his penance. But from past organizational associations Don’t be discouraged if you have to it became a kind of purgatory. (you are what you did, remember, not send out large numbers of resumes. While important, the job search can for whom you did it), job titles, and One rule of thumb is to expect re¬ be taken too seriously. Feeling it’s a rank. Otherwise resumes are simply sponses from only three percent of your life or death matter shields the career tedious recitations of “duties and re¬ mailing, and that from these job inter¬ changer from the pleasure of it. Take a sponsibilities”—the boiler plate of views, only one actual job offer may playful attitude to finding a job. Sol¬ boring job descriptions. The answer is result. Finally, concentrate on writing emn job seekers are nowhere near as to focus on accomplishments and re¬ good job letters. It is an art that can be attractive as enthusiastic job candi¬ sults abroad and how they translate developed by studying one of the many dates. Concentrate on the exciting fu¬ into needs here. Translation of func¬ good books on job hunting. ture rather than the interesting past. tional accomplishments means, how¬ ever, junking foreign policy and devel¬ Rule Eight: Know Where Rule Six: opment jargon and instead expressing You Want To Live Focus on Function overseas experiences in plain English. Another reason six months or so Effective career changers focus not Rule Seven: might be necessary in moving back just on position but on function—i.e., Write Your Resume into the mainstream is the importance whatever they do as well or better than of where you live to career prospects anyone else. That might be giving Preparing your resume will increase and overall success. Knowing where speeches, writing reports, selling your confidence and excitement while you want to live can shape what it is ideas, mediating conflicts, or many helping you translate your overseas you want to do—and vice versa. Your other skills. Moreover, no matter what skills into new, marketable functions. job skills may help you determine the their former rank, title, or status in the Take at least two weeks to jot down area where they can best be used (i.e., Service, returning overseas Americans every job and function you’ve ever per¬ computer technology: Boston, New will function best at what they like. formed. You will be surprised at their York, Dallas, West Coast, Raleigh). Thus, figuring out what you can do is diversity and the talents required to do Many former Foreign Service employ¬ one step away from knowing what you them. Undiscovered skills will ees become so accustomed to uproot¬ want to do. Unfortunately, career emerge, and a pattern of your unique ing every few years they feel unnatural changers often overlook their natural combination of interests and abilities settling down. Having moved five talents and therefore don’t connect will begin to be revealed. You may times and taken three jobs in two 24 FOREIGN SERVICE JOURNAL years, one ex— FSO confuses motion investigation about yourself and the The ex—Peace Corps staffer manag¬ with movement when it’s only run¬ world of work. It’s really no different ing a tomato farm in southwest Vir¬ ning in place. She still hasn’t made the than what diplomats do on foreign as¬ ginia, the ex-FSO leasing Lear jets to transition. signment: talking to key host-country foreign governments, and the former Her reverse culture shock is well nationals, developing an information AID mission chief directing a Planned known. While Foreign Service person¬ network, learning the language (the Parenthood program in Pennsylvania nel are often posted to Washington, jargon of a new trade), and eventually are recent examples of overseas Ameri¬ the capital is merely a port of entry, getting on top of a job. Well, the job cans who have made imaginative leaps not necessarily Mainstreet, U.S.A. of re-entry is to find a job. That entails into other careers. All three were confi¬ Learning about which parts of the using people to help you locate hidden dent of making the transition and country reflect your interests, values, skills and hidden jobs. deeply interested in something—farm¬ and job direction should precede look¬ ing, aviation, family planning. The ing for work. Feeling at home in the Rule Ten: Be Flexible self-directed job search is centered in Shenandoah Valley can take as long as But Set Goals the self. “What is it you want to do?” is becoming accustomed to Sri Lanka. still the toughest question asked in an Many overseas Americans feel em¬ interview. Returning overseas Ameri¬ Rule Nine: Network barrassed at not knowing what they cans need to answer that question be¬ Networking is curiosity made visi¬ want to do when they come home, so fore beginning to look. ble. And curiosity coupled with give yourself a break and don’t try to Setting goals is tough: friends, fam¬ imagination is the chief quality needed make the transition too quickly. For ily, and colleagues are often no help. to make the leap to a new career. Since the best and brightest, thinking They may put down aspiration on the most re-entering Americans don’t through the first few steps can be ex¬ grounds that a radical career change is know what they want to do and hesi¬ tremely difficult. The career options unrealistic. Also, many career chang¬ tate to admit it, the transition is often available, the perplexity of self analy¬ ers want other peoples’ approval when troubled. A good idea when coming sis, and the patience necessary to what’s really needed is re//"-approval. home is to talk with former colleagues change vocational direction—plus re¬ That often means saying no to what who have made the transition. Net¬ verse culture shock—are all challeng¬ other people say you should do. working means using other people to help ing. When it works out well, whatever Another clue to knowing what you you think through what to do next. returning Americans choose to do at want to do is sensing you have the Networking also means revealing home seems in retrospect as if it were skills, say, to be a sports writer even your need for help by talking to a wide meant to be. The invariable response of though you lack a journalism degree or variety of employers and enlisting successful career changers is to wonder newspaper experience. But the two their support. One ex—AID official got why they waited so long to do it. The most important predictors of success a job-lead on the tennis court of a truth is that time is needed to weigh on the job aren’t education and expe¬ country club. Another former FSO was options, calculate risks, take into ac¬ rience. Rather, they are motivation interviewed on the New York shuttle. count talent (i.e., functional skills), and ability. All the more reason re¬ And a third found work through his and research the self via networking. turning overseas Americans need to father’s best friend. Also, take a playful attitude in the convey their abilities and desires before All the more reason to spend several job search. Figuring out what to do is a representing education and experience months not looking for a job so much result of letting go, feeling good about to domestic employers. as interviewing for information: net¬ the self, and allowing the unconscious Finally, while re-entry is often pain¬ working. That means bouncing ideas to do its job. Ideas surface on the pe¬ ful, it’s a chance for personal and pro¬ off employers and finding out about riphery of the mind. Often, wacky job fessional renewal. The price of re-entry jobs that may not be advertised—or objectives are the most realistic in is often paid in the coin of anxiety and may not yet exist. The knack of terms of functional talent. The frame guilt. That’s part of the stress of re¬ networking is taking employers off the of mind best suited to thinking entry and the career change. Fortunate¬ hook by not asking for a job so much as through new career steps is marked by ly, like other personal crises, re-entry advice. It means winning an ally in the openness, curiosity, imagination, and is an opportunity for growth. The pro¬ job search, letting this person connect knowing the world is mad. A sense of fusion of opportunity in America you with that one. It means doing an humor helps. makes that price well worth paying. D

JANUARY 1983 25 Despite the proclivities of some U.S. policymakers who might prefer not to deal with the So¬ viet Union at all, it cannot be ignored. The U.S.S.R. occupies more land area than any other country, has the third largest population, and generates the second biggest gross national product. Moreover, it is a nuclear superpower. It should be obvious that coexistence with the Soviets is an imperative for survival in the nuclear age. Evidence is accumulating that coex¬ istence may again play a role in shap¬ ing U.S. policy toward the Soviets. The Reagan administration has decid¬ ed to increase grain sales, lift the gas- pipeline sanctions, and resume nuclear arms control negotiations, while com¬ mitting itself not to undercut the SALT I and SALT II treaties. In his speech of November 22, President Reagan of¬ fered to agree to confidence building measures. And, the president’s No¬ vember 11 message to the Soviet gov¬ ernment and people spoke of “the strong desire of the United States to work toward an improved relationship Restarting with the Soviet Union.” Back in 1967, NATO agreed to pur¬ sue a policy of both defense and de¬ tente toward the Soviet Union, a dual strategy of containment and accommo¬ START dation. But the Soviet invasion of Af-

David Linebaugh, a former Foreign Service By DAVID LINEBAUGH and ALEXANDER PETERS officer and deputy assistant director of the Arms Control and Disarmament Agency in 1969-75, is a member of the Committee for National Security. Alexander Peters is on the staff of the committee.

26 FOREIGN SERVICE JOURNAL How much longer can Atlas support the ever-growing burden of the nuclear arms race? Because the START talks seem stalled, it is time to consider new proposals that could fix the flaws in the administration's negotiating position.

ghanistan in December 1979 dealt a in both the intermediate and strategic the differing sides draw their conclu¬ severe blow to detente as followed by arms talks appear to be too one-sided sions from the same set of facts. Both the Carter administration, and Presi¬ to be negotiable. In the INF talks, the agree that the Soviets have a more dent Reagan initially shunned the dual United States has put forward a pro¬ powerful land-based force than the strategy. With some justification, posal that would require the Soviets to United States and that the United Reagan charged that the Soviets gave dismantle 600 missiles, more than half States has more powerful sea- and air- only verbal support to detente and that their intermediate force. No American based forces than does the Soviet their policies were in fact expansionist. intermediate nuclear weapons would Union. But those who believe that Thus, the Reagan administration re¬ have to be dismantled. In the United overall the Soviets are in a superior po¬ lied solely upon a policy of strength, States’ START proposal, the Soviets sition say that the U.S.S.R. could encouraging conflict rather than com¬ would be required to make heavy cuts theoretically knock out the U.S. land- promise. At first, Reagan did not in their land-based missile force, the based force. With less reliable bomber maintain channels of communication area where they are the strongest. But forces and less accurate submarine mis¬ with Moscow or try to define terms for the United States would not be re¬ siles remaining, the United States coexistence. The progress that had quired to accept limits on bombers and could then only retaliate against Soviet been made during seven years of SALT II cruise missiles, where it is well ahead cities—a move of questionable value, negotiations was disregarded, and it of the Soviet Union. as it would lead to the destruction of was eighteen months before the Unit¬ Starting Over U.S. cities. Those who believe in U.S. ed States agreed to resume talks on superiority counter by saying that this strategic nuclear weapons. U.S.-Soviet The issue of nuclear weapons is at alleged Soviet advantage is entirely relations reached their lowest point the center of the U.S.-Soviet relation¬ theoretical because the Kremlin would since the Cuban missile crisis of 1962. ship, and an agreement resulting in not run the risk of provoking a devas¬ In addition, the Reagan administra¬ substantial reductions would have far- tating retaliatory blow. Those who are tion’s single-track policy has helped reaching political effects. The Reagan less confident in the U.S. position re¬ stimulate an anti-nuclear movement in administration should therefore intro¬ spond to this by saying that the Soviets Europe and severely strained relations duce a new proposal on START. would not actually have to launch a between the United States and its In designing a negotiable proposal, first strike; the Soviet capability itself NATO allies. the Reagan administration may first gives the U.S.S.R. a political advan¬ In response to allied pressure, Rea¬ need to reconsider some of the assump¬ tage. Whatever the merits of this argu¬ gan made a gesture toward establish¬ tions underlying current nuclear weap¬ ment about superiority, the problem ing a more balanced policy when he ons policy. of the vulnerability of land-based mis¬ agreed in November 1981 to resume Have the Soviets achieved nuclear siles needs to be resolved to ensure that bilateral negotiations with the Soviets superiority? Did the United States any START agreement has the support on the question of reducing intermedi¬ stand still during the 1970s? Are more of two-thirds of the Senate. ate nuclear forces in Europe. In re¬ U.S. arms needed for bargaining pur¬ A brief review of the deployment of sponse to domestic pressure, he ex¬ poses and, if so, does this need justify nuclear warheads reveals at least one tended this gesture in May 1982 by the vast cost of a strategic arms build¬ area where the Soviets are not superior announcing the beginning of the bi¬ up? How many nuclear weapons are and where, contrary to the general as¬ lateral strategic arms reduction talks really needed for deterrence? sertions of Reagan, the United States (START). Unfortunately, the proposals On the issue of which superpower is did not stand still in the 1970s. A vast which the United States has advanced superior in terms of nuclear weapons, expansion in the nuclear capability of

JANUARY 1983 27 U.S.-U.S.S.R. STRATEGIC FORCES COMPARISON

CURRENT FORCE FORCE STRUCTURE UNDER FORCE STRUCTURE UNDER STRUCTURE REAGAN PROPOSAL NEW PROPOSAL

number number number warheads , , , warheads warheads deployed deployed deployed

U.S.S.R.

ICBMs ICBMs ICBMs SS-11 570 570 SS-11 SS-11 536 536 SS-13 60 60 SS-13 SS-13 60 60 SS-17 150 600 SS-17 SS-17 150 600 SS-18* 308 3080 SS-18* SS-18* 154 1540 SS-19 310 1860 SS-19 SS-19 106 636 subtotal 1398 6170 2500 1006 3372

SLBMs SLBMs J?' SLBMs SS-N-5 57 57 SS-N-5 SS-N-5 0 0 SS-N-6 400 400 SS-N-6 SS-N-6 0 0 SS-N-8 292 292 SS-N-8 Jr SS-N-8 292 292 SS-NX-17 12 12 SS-NX-17 SS-NX-17 12 12 SS-N-18 208 1456 SS-N-18 SS-N-18 190 1330 subtotal 969 2217 494 1634 missile total 2367 8387 850 5000 1500 5006

Bombers Bombers Bombers TU-95 Bear 105 315 TU-95 Bear 105 315 TU-95 Bear 105 315 Mya-4 Bison 45 90 Mya-4 Bison 45 90 Mya-4 Bison 45 90 subtotal 150 405 150 405 150 405

TOTAL 2517 8792 1000 5405 1650 5411

U.S.

ICBMs ICBMs ICBMs Titan II 52 52 Titan II Titan II 52 52 Minuteman II 450 450 Minuteman II Minuteman II 450 450 Minuteman III 550 1650 Minuteman III Minuteman III 250 750 subtotal 1052 2152 2500 752 1252

SLBMs SLBMs \ SLBMs \ Poseidon* 304 4256 Poseidon* Poseidon* 128 1792 Trident 1 216 1728 Trident 1 \ Trident 1 216 1728 subtotal 520 5984 344 3520 missile total 1572 8136 850 5000 1096** 4772**

Bombers Bombers Bombers B-52 150 1800 B-52 150 1800 B-52 150 1800 B-52 197 788 B-52 197 788 B-52 197 788 subtotal 347 2588 347 2588 347 2588

TOTAL 1919 10724 1197 7588 1443 7360

*SS-18 and Poseidon warheads reflect SALT II counting rules **207 single warhead ICBMs could be added to reach the entitled 1650 delivery vehicles. Warheads would then equal 4979.

Sources: IISS Military Balance: 1982-1983, SIPRI.

28 FOREIGN SERVICE JOURNAL both superpowers took place in the survive Soviet strikes over an extended A second phase of the talks would con¬ 1970s as both began deploying multi¬ period.” However, the unending centrate on the reduction and equaliza¬ ple warheads on missiles (MIRVS), the build-up of nuclear weapons that tion of ballistic missile throw-weight United States in 1970 and the Soviet Weinberger’s statements would seem to a common ceiling below present Union in 1975. The United States had to endorse may be excessive for the U.S. levels. 2486 warheads on missiles in 1972 and purposes of deterrence. The victims of The Reagan plan has a positive pur¬ had added 4738 more warheads by Hiroshima and Nagasaki would prob¬ pose—to achieve a deep cut in war¬ 1982. The Soviet Union had 1950 ably say that two nuclear weapons are heads, the single most telling measure warheads on missiles in 1972 and had enough to deter. A former national se¬ of strategic capability. Reagan pro¬ added 5350 more by 1982. Today, the curity adviser has stated that 10—20 poses to reduce warheads by fully one- United States has more than 10,000 weapons would be sufficient to main¬ third. strategic nuclear warheads and bombs, tain deterrence, and a former secretary But the Reagan plan has some draw¬ while the Soviet Union has in excess of of defense has said that 200—400 backs. Given Soviet concerns, it may 8000. would be enough. Yet, the United not be a realistic basis for negotiation. Bargaining Chips States now has over 25,000 nuclear The focus of the plan is on reductions weapons of all types and the Soviet in land-based missiles which compose Contrary to Reagan’s assertions, Union has almost as many. the bulk of the Soviet force, including more nuclear weapons are not needed Rather than attempting to ensure the SS-18 and SS-19 missiles, which to serve as bargaining chips in START. deterrence by increasing the already could be used in a nuclear first strike. More weapons would make it harder, There are no proposed limits on bomb¬ not easier, to achieve mutual reduc¬ ers and cruise missiles, where the tions. Soviet leader Yuri Andropov’s United States has a clear advantage. call for renewal of detente in his hard¬ “The vulnerability Because 7 5 percent of the Soviet strate¬ line speech immediately following gic force is based on land, the Reagan Leonid Brezhnev’s death made it clear of the land-based plan would require a major restructur¬ that the Soviet Union would respond ing of the U.S.S.R.’s nudear arsenal, to a U.S. arms build-up with a build¬ missiles needs to be even though the United States would up of its own. Thus, the funding and not have to make any comparable read¬ deployment of more American weapon resolved to ensure justments. Because the plan would sat¬ systems, such as the MX, Trident II, isfy U.S. interests and concerns, but or ground- and sea-launched cruise that any START not those of the Soviet Union, the So¬ missiles, will result in more Soviet viet leadership is likely to regard it as arms. And, in an ever-spiraling proc¬ agreement has the too one-sided to be negotiable. ess, more Soviet arms will in turn re¬ support of two-thirds Even more important, the Reagan sult in more U.S. arms. Today, the START proposal would not reduce the United States already has thousands of of the Senate. ” vulnerability of U.S. strategic forces. nuclear weapons it could trade away It does nothing to improve the surviva¬ without jeopardizing its security. And bility of U.S. ICBMS, a weakness—or both sides could gain some bargaining alleged weakness—which Reagan leverage from the new and more deadly vast stock of weapons, the more ration¬ called a “fatal flaw” of SALT II. Indeed, weapons still under development—a al course would be to negotiate a pro¬ the number of accurate Soviet weapons Soviet mobile ICBM, for example, or a gram of mutual reductions with the aimed at our ICBMS could even increase U.S. sea-launched cruise missile— Soviets. The Reagan administration over its present 5 to 1 ratio. This weak¬ providing that leverage is used in ne¬ has already made some modest efforts ness combined with the deployment of gotiations before the weapons are de¬ in this direction. new U.S. counterforce weapons, the ployed. It is only then that the U.S. or In a speech at Eureka College in MX and Trident II, which threaten the Soviet negotiator could offer to delay or May 1982, President Reagan outlined survivability of Soviet ICBMS, would cancel deployment or outline what a two-phase U.S. proposal for START. create a highly unstable situation. The conditions would lead to deployment. In the first phase, Reagan proposes to Soviets say—and we have no reason to Secretary of Defense Caspar Wein¬ focus on what he described as the most doubt them—that they would be driv¬ berger appears to believe that the threatening weapons, ballistic mis¬ en to a launch-on-warning strategy. United States must increase its stock of siles. The United States and the Soviet The result could be catastrophic. weapons to maintain deterrence. He Union would reduce warheads on bal¬ Proposing Alternatives charges that the Soviet Union is build¬ listic missiles to a ceiling of 5000, ing forces for a protracted nuclear con¬ with a subceiling of 2500 warheads on Understandably, there has been lit¬ flict and that “we must. . . match the land-based missiles and an aggregate tle visible movement in the START Soviet Union’s greatly improved nu¬ limit of 850 land- and sea-based mis¬ talks since the initial proposals were clear capability. . . . We must dem¬ siles. Phase I reductions would take put forward. This lack of progress, onstrate that our strategic forces could place over a period of five to ten years. combined with growing public con-

JANUARY 1983 29 cern over the increase in nuclear weap¬ THE LODAL PROPOSAL. Jan M. Lo- warheads. Lodal proposes that the ons, has led others to propose plans for dal, senior staff member of the Nation¬ U.S. should replace its MiRved land- restraining the arms race. These pro¬ al Security Council from 1973—75, has based missile force—550 Minuteman posals include: formulated both a START proposal and Ills—with single warhead missiles. THE GORE PROPOSAL. Congressman a plan to change the character of U.S. These single warhead missiles would Albert Gore (D.-Tenn.) has presented deployments. Lodal’s START proposal create “uninteresting” targets for the a “non-counterforce alternative” to the has the virtue of simplicity. It would Soviets, since they would have to tar¬ administration’s START proposal. The establish a common ceiling on the ag¬ get at least two of their warheads to basic premise of Gore’s proposal is re¬ gregate number of warheads on both each of the numerous U.S. missiles to flected in his statement that “nothing long-range and intermediate-range assure their destruction and eliminate could be more detrimental to strategic systems—all weapon systems having a the possibility of counterstrike by U.S. stability than for both sides to be vul¬ range of 1000 miles or more. Lodal land-based ICBMS. nerable to a first strike.” His proposal argues that there are important advan¬ Destabilizing Proposals is structured so that neither the United tages in establishing an aggregate war¬ States nor the Soviet Union would have head ceiling. First, the INF negotia¬ Lodal’s plan would permit a vast ex¬ a first-strike capability. tions and START would be integrated pansion in the number of ICBM silos. Specifically, Gore proposes that the and would lead to one comprehensive However, because SALT I and II both United States and the Soviet Union agreement. Second, when talks focus banned the construction of additional eliminate all land-based MiRved ICBMS on limiting warheads, negotiability silos, implementation of his plan and that each side be allowed to keep would damage the effectiveness and their remaining single warhead overall credibility of the agreements. ICBMS—the U.S. Minuteman II and The Soviets would be unlikely to ac¬ the Soviet SS-11. Both the Soviets and “More nuclear cept any modification in the SALT trea¬ Americans would then have an ap¬ ties to accommodate Lodal’s plan. proximately equal number of single weapons are not Also, the rest of the world would not warhead ICBMS—500—virtually elim¬ needed to serve as regard the large increase in U.S. land- inating the vulnerability of U.S. land- based missiles as a stabilizing arms based missiles. The Gore plan would bargaining chips. control measure. And the redeploy¬ allow the development and deploy¬ ments would be expensive, thus add¬ ment of a new single warhead ICBM as a More weapons ing to an already huge U.S. defense replacement for the aging Minuteman would make it budget. II and SS-11. THE FAS PROPOSAL, SALT II took sev¬ Gore accepts the Reagan goal of es¬ harder, not easier, en years to negotiate. During that tablishing a ceiling of 5000 of all types time, three different presidents occu¬ of missile warheads, but under his plan to achieve mutual pied the White House. The Federation the United States would not deploy the reductions. ” of American Scientists (FAS) believes MX or Trident II, providing that the the world cannot afford to wait such a Soviets agree to phase out their MiRved long time for a START agreement. The ICBMS. Gore proposes that “meaning¬ arms race has become too dangerous. ful restraints” be put on cruise mis¬ would be enhanced because both the Because negotiating time must be cut siles, and that there be a limit on the United States and the Soviet Union dramatically, the FAS proposes that number of long-range heavy bombers. have an approximately equal number SALT II provide the framework for a Reagan does not include any limits on of warheads—11,000—on nuclear START agreement. The proposal com¬ bombers and cruise missiles in his weapon systems with a range of 1000 bines an interim freeze and a reduction proposal. miles or more. And third, the prob¬ plan based on the five SALT II ceilings: Insurmountable Obstacles lems caused in previous talks by weap¬ heavy missiles, MiRved ICBMS, MiRved ons that are difficult to define as either ICBMS and sea-launched ballistic mis¬ The success of the Gore plan would strategic or theater would be overcome siles, MiRved ICBMS and SLBMS and hinge on Soviet willingness to disman¬ by negotiating both types of systems bombers with cruise missiles, and total tle the largest and most modern ele¬ together. strategic delivery vehicles. ment of their strategic force, namely Lodal also proposes a change in the The freeze, which would be put into their MiRved SS-18s and SS-19s. The character of U.S. deployments, one effect immediately, would reduce the U.S.S.R. would then have to move its that would solve the problem of U.S. SALT II limits to the present force levels forces out to sea, where the United ICBM vulnerability. Lodal points out of each superpower. The FAS argues States has the technological and geo¬ that MiRved missiles are tempting tar¬ that this freeze can be “negotiated graphic advantage. These obstacles ap¬ gets because they carry a high number without negotiation” because it is pear insurmountable and would prob¬ of warheads. For example, a single based on the already agreed SALT II ably make the Gore plan unacceptable U.S. warhead delivered on target to a framework. Once the freeze is in effect, to the Soviets. Soviet SS-18 could destroy all of its 10 the FAS reduction plan would shrink

30 FOREIGN SERVICE JOURNAL the SALT II ceilings by 50 percent, a • U.S. and Soviet nuclear warheads Soviet MiRved missiles, the SS-18 and reduction that would meet most of the on missiles be reduced to 5000 or less; SS-19, would help correct what Rea¬ specifics in the Reagan START propos¬ • these reductions would be gan has described as a fatal flaw in SALT al, i.e. a 5000 missile warhead ceiling achieved primarily by reducing MiRved II—the so-called window of vulner¬ and an 850 missile ceiling. But the FAS missiles, including Soviet heavy mis¬ ability of our ICBMS. plan, like the Reagan plan, does not siles, to a level at least 50 percent be¬ Starting to Stop end the theoretical vulnerability of the low the ceilings agreed to in SALT II; American land-based missile force. • the aggregate SALT II ceiling for This proposal would stop the most This could be a fatal flaw. delivery vehicles would be retained but lethal and destabilizing aspect of the THE KENNAN IDEA. George Kennan reflect these reductions; nuclear arms race—the deployment of has urged the United States and the • the number of deployed bombers new weapons with a first strike capa¬ Soviet Union to cut their nuclear arse¬ and air-launched cruise-missiles would bility, such as the MX, Trident Ii, and nals by 50 percent, “a reduction affect¬ be limited to no more than SALT II levels; comparable Soviet weapons. Because ing in equal measure all forms of the • the deployment of new missiles the United States has said it would not weapon, strategic, medium range, and would be banned; strike first it has no use for such weap¬ tactical, as well as means of their deliv¬ • the flight testing of counterforce ons, and banning them from the Sovi¬ ery.” Kennan admonishes us to act weapons would be banned. ets would reduce the threat to U.S. now and “stop the wrangling among Reductions would be made from each security. the experts.” This idea has received superpower’s present operational forces This proposal would also stop the widespread attention, but its sweeping deployment of the sea-launched cruise character may make it politically unac¬ missile, a relatively small but deadly ceptable, and the dangerous asymme¬ weapon, limitations on which may not tries in the U.S. and Soviet forces that “A new U.S. be verifiable by national means. The many claim exist would still be present proposal could administration has rationalized its de¬ after a 50 percent cut. cision to deploy this weapon on the The above proposals demonstrate borrow elements grounds that it is needed as a “strategic the wide variety of arms control objec¬ reserve,” yet it could end the chance tives held by various people and groups from all the other of an arms reduction agreement alto¬ and the diversity of means enlisted to gether. reach those objectives. President Rea¬ plans and meet Both the United States and the Sovi¬ gan and George Kennan emphasize re¬ certain criteria et Union should find this proposal ac¬ ductions. Congressman Gore and Jan ceptable as a basis for negotiations. It Lodal focus on stability. The FAS wants which should ensure bans new weapons from both sides. It to capitalize on what has been achieved widespread political would meet U.S. concerns over the in SALT II. Yet, all of these plans con¬ most threatening Soviet weapons, the tain flaws, especially in the areas of support. ” SS-18 and SS-19, but also meets Soviet negotiability and vulnerability, that concerns over the U.S. strength in may prevent their realization. Howev¬ bombers and cruise missiles. Negotia¬ er, a new U.S. proposal could borrow tions should have prompt results. Be¬ elements from all of these plans and until the new ceilings are reached. The cause the two sides would be working meet certain criteria which should en¬ United States would be allowed to add from provisions already agreed to in sure widespread political support, in¬ a specific number of single warhead SALT II, the negotiations should be rela¬ cluding that of two-thirds of the missiles in order to reach the new ceil¬ tively brief. Senate. ing on total strategic nuclear delivery Perhaps most significant, this pro¬ A New Plan vehicles. There would be no restric¬ posal would make deep cuts in nuclear tions on the development or deploy¬ weapons and stop the mindless accu¬ The requirements for a START agree¬ ment of new submarines or new bomb¬ mulation of more and more arms. ment are relatively few. It must result ers as replacements. The START These reductions would begin to in significant reductions and greater agreement would be of indefinite dura¬ change the political relationship with security. Both objectives are impor¬ tion and would include a commitment the Soviet Union by changing our esti¬ tant. It must be verifiable. It must be to negotiate further reductions. mates of Soviet capabilities and inten¬ negotiable and meet the interests of The 50 percent cut in the SALT II tions. The reductions would set an ex¬ both the United States and the Soviet MiRved missile ceilings would be a big ample for the rest of the world and Union. The negotiating process must step toward achieving greater stability improve the prospect for stopping nu¬ avoid long delays that erode support and enhanced security. The number of clear weapons proliferation. By agree¬ and permit weapons technology to accurate Soviet weapons that could ing to such a proposal, the Reagan ad¬ outpace negotiations. To meet these strike U.S. land-based missiles would ministration and the Soviets could requirements, the United States be reduced from a ratio of about 5 to 1 reverse the nuclear arms race and re¬ should propose that: to a ratio of about 3 to 1. Thus, a cut in establish the basis for lasting peace. D

JANUARY 1983 31 Memories

chute battalion, covered the Vietminh plane trees that had shaded the terrace The summer of ’64 in entry into Hanoi, evacuated the USIS of the Continental Hotel were gone. South Vietnam was a local staff to Haiphong, and traveled The Vietnamese captains and majors I south with Catholic refugees. I had had known in the early 1950s were season of coups, demi- served as Communist-affairs officer for now generals—or exiled ... or dead. North Vietnam and information advis¬ A new generation of Taiwanese waiters coups, and coupettes er to South Vietnam’s prime minister, were hustling food at the Arc en Ciei Ngo Dinh Diem. My jeep had been restaurant in Cholon. The cafes and By HOWARD R. SIMPSON machine-gunned by the rebel Binh bars were still screened for grenades Xuyen during the revolt of the sects in but the names and players had Saigon. I’d done my time in Clark changed. “La Normandie” and “Chez Iwas in Cannes in 1964 as an offi¬ Field hospital with hepatitis (the Binh Yvette” had given way to the “Califor¬ cial delegate to the International Xuyen claiming they’d poisoned me). nia” and the “Blues Bar.” Red-bereted Film Festival for the fifth consecu¬ I had thought the Indochina expe¬ French parachutists and shaven-headed tive year. Little did I know that my rience behind me. I was wrong. Foreign Legionnaires had been re¬ time on the Riviera was to be cut short I was to stop in Washington and placed by hard-eyed American Special by the beach attendant coming toward Pearl Harbor for consultations on my Forces troops and fatigue-clad me¬ me with a message in his hand bear¬ way to Saigon. My pregnant wife and chanics from the expanding Air Force ing news of a decision made in three young daughters would follow installations at Tan Son Nhut. The bar Washington. later. Washington did its best to sug¬ girls, who used to wear graceful Ao The message was simple. The em¬ ar-coat the pill. It was a "crisis” situa¬ Dai or vague copies of Paris styles, bassy in Paris wanted me to call imme¬ tion. They were sending in the “first were now in blue jeans and miniskirts. diately. I took it to be some change in team.” Somewhere out there, fretting I had returned to experience one of the arrival time of a delegation mem¬ and impatient in the steamy tropical Vietnam’s most unstable periods: a ber or a minor crisis involving the heat, was a prime minister in need of time of internal political turmoil, in¬ screening date of an American film. I my “advice. ” As I had no choice, it was trigue, and disintegration that would returned to my room at the Carlton easy to accept these flattering exhorta¬ culminate in the decision to apply Hotel and called Paris. A cautious tions. As a form of psychological self- American ground forces as a steadying duty officer explained that my Indo¬ defense, I almost began to believe factor in a worsening situation. It was china past had caught up with me. I them myself. a season for successive coup d’etats, had exactly two weeks to get to Viet¬ The whirlwind trip from Paris to demi-coups, and coupettes that would nam. I put down the telephone slowly, Washington to Pearl Harbor was a tir¬ hamstring pacification efforts, delay staring out the window at the blue ing round of odd-hour flights, card¬ effective action against the Vietcong, Mediterranean, the festival banners, board airline food, and worrisome shatter South Vietnam’s military effec¬ and the frothing trails of water skiers. briefings. The conference at Pearl Har¬ tiveness, and divide its high-ranking I had left Indochina nine years be¬ bor was on a high level. Aside from the army officers into feuding cabals. The fore, after two tours of duty. As the gung-ho briefing officers with their Byzantine atmosphere of Saigon in British say, I’d “had the lot.” I had collapsible, stainless-steel pointers, I 1964 is now only a series of memories: worked as a USIA war correspondent must have been the lowest-ranking • assigned to the French Expeditionary participant. McNamara was there with Corps and the fledgling Vietnamese his bartender’s haircut. Maxwell Tay¬ Ambassador Henry Cabot Lodge National Army. I had experienced lor sat through the sessions like a quiz¬ takes me to meet the prime minister. Dien Bien Phu with a French para- zical Roman senator. Dean Rusk was a We drive there in the ambassador’s ar¬ benign sphinx. One set of figures suc¬ mored Checker. General Nguyen Hoivard R. Simpson is a retired. Foreign ceeded another. I had the troubling Khanh is a graduate of the French Service information officer who lives in suspicion that Vietnam had changed military school at Dalat, a former bat¬ California. He served three tours in Viet¬ completely, annulling whatever exper¬ talion commander and district chief. nam during the French and American peri¬ tise I’d once had. His coup to oust General Duong Van ods. He is now a novelist and a consultant It was a strange return. Rue Catinat Minh has put him in the catbird seat. on international terrorism. was now Rue Tu Do. The sheltering He is a short, chubby man with a small

32 FOREIGN SERVICE JOURNAL of Saigon

North Vietnam. We sit at opposite ends of a long table drinking straight Johnny Walker and feasting on quail eggs, crab, and chicken stuffed with lotus grains. Dong tells me about Vietcong infiltration of the Saigon- Cholon district. His intelligence net of professional agents and Nungs is fight¬ ing a lethal war in the shadows. His pessimistic assessment doesn’t match anything I’ve seen on our charts. Dong is not enthusiastic about the govern¬ ment and hints he has acquired en¬ goatee. He smiles a lot over the tradi¬ villagers hear French being spoken. An emies in high places. He sends one of tional cup of tea and says he is glad to old man comes forward, his hands his Nung bodyguards to get me a beer. see me. I’m not sure. I have the feeling joined together. He bows and speaks “I see very few Americans now,” he he would gladly forgo my advice. I am in rapid French. tells me. to have a nearby office and immediate “It isn’t just,” he tells the French access to him. Before leaving I meet journalists. “They are making us some of his staff. With a shock I recog¬ move. We don’t want to move. Tell The prime minister introduces me nize an old Vietnamese acquaintance. them. It is not just.” One of the to Colonel Thao and says he would like Monsieur “X” was closely involved French newsmen flicks his notebook us to work together. Thao is a former with French intelligence during the open and directs the camera and sound member of the Vietminh and a devout “other war.” Now he is working in the men to get the old man on film. Catholic who has made a name for prime minister’s office. “The Americans don’t understand,” himself by running a successful pacifi¬ • the old man wails. “Tell the Ameri¬ cation program in Bentre province. cans we don’t want to move!" His brother is a Communist official in We convince the prime minister he The prime minister talks to the vil¬ North Vietnam. Thao is thin and wall¬ should spend more time in the field lagers but it’s no use. They keep their eyed. He has a great gift of humor. He visiting villages, talking with district eyes on the ground. They don’t really is also a born plotter and spends little chiefs and unit commanders. He know who he is. An explosive “crump” time in his office. I like Thao and we agrees but insists on piloting his own makes us jump. Then another. Mor¬ get along well. During a subsequent chopper. I fly with him to Phuoc Tuy tars are coming in at the other end of coup I rush to his home one morning province. A French television team ac¬ the village. Gray smoke hangs in the in a moto-cyclo to warn him of a possi¬ companies us. At our first stop the two still air. Within seconds the villagers ble attempt on his life. He is not there. security choppers go in first, settling are gone. We scramble back to the Days later, the coup unsuccessful, he like awkward mosquitoes on the sand choppers, pile in and lift off, swinging shows up all smiles in the prime minis¬ near a coastal village. The village is out low over the sea, away from hostile ter’s office. being evacuated. It’s in a hot zone and fire. The prime minister is in a bad (Later, Colonel Thao, implicated in the villagers are scheduled for reloca¬ mood. I don’t see him for several days. a plot against President Thieu, was tion. The prime minister is there to • captured, allegedly tortured, and show his concern and explain in person killed by Thieu’s security forces. Col¬ the need for relocation. A sullen, be¬ General Dong is the military com¬ umnist Stanley Karnow, who recently draggled group of villagers is flushed mander of the Saigon-Cholon area. I’d visited Vietnam, reports that Thao’s from the huts as we land. They listen first met him at the battle of Nasan in remains have been transferred by the uncomprehendingly as an aide shouts 1952 when he was a captain. He has Communist regime to the “Patriot’s to them over the din of the rotors. He invited me to dinner at his fortified Cemetery” in Ho Chi Minh City. For¬ identifies the prime minister and at¬ villa near Cholon. The low-walled mer Vietcong leaders told Karnow that tempts to raise a cheer. No luck. The structure is guarded by Nung merce¬ Thao was one of their key operatives in French TV team joins us. Some of the naries from the Chinese border area of South Vietnam. I would prefer not to

JANUARY 1983 33 believe this. If it is true ... so much hand, is first out the door, notebook at with a letter he had agreed to deliver for our counter-intelligence capabili¬ the ready. Black smoke is billowing for a Vietnamese general now exiled in ties in Vietnam.) into the sky behind the Continental Paris. The letter is addressed to a high- Hotel. A charge has been detonated at ranking South Vietnamese army col¬ the Brinks bachelor officers’ quarters. league. The newsman’s Vietnamese as¬ We host a small dinner at our villa We rush across the street passing sistant had read the letter prior to its on Rue Tu Xuong. The cuisine is Chi¬ frightened Vietnamese civilians run¬ delivery—a prudent if not wholly ac¬ nese but the atmosphere is pure 1964 ning in the opposite direction. Ambu¬ ceptable procedure. The assistant has Saigon. There is talk of coups-past and lances are careening to the scene. Some suggested the letter be shown to an coups-yet-to-come. General Dong ar¬ young sidewalk vendors have been cut American official immediately. We rives late in his black chauffeur-driven by flying glass, others are in a state of have it translated and catch our Hotchkiss sedan. His Nung body¬ shock. The entry to the BOQ is black¬ breaths. The text is a straightforward guard hunkers down near our gate. ened with smoke. Firefighters are un¬ pledge of moral and material support Halfway through the first course artil¬ reeling their hoses to fight the flames. for a planned coup d’etat. It’s the kind lery starts to thump from the direction American officers wearing blood-spat¬ of message that could tip the local bal¬ of Go Cong. Dong excuses himself and tered Hawaiian sport shirts are being ance of power and tear the shaky gov¬ asks to use the phone. We can hear helped into the ambulances. (Two ernment apart. We return the letter to him shouting in strident Vietnamese. Americans were killed, 52 Americans the innocent messenger and recom¬ He returns to the table, pours himself and 13 Vietnamese wounded in the mend a long delay in delivery. a generous helping of scotch and fills Brinks bombing.) Later, I walk over • his bowl with baked river fish and the crunching glass to a small bar black mushrooms. Twenty minutes owned by a long time Corsican resi¬ Successive coups and government later the artillery fire slackens and dies. dent of Saigon. He is standing outside changes have cut whatever effective¬ He winks. “The gunners are nervous,” frowning at his broken windows. ness I might have had to zero. I’ve been he confides. “They would fire at rab¬ "A/orsP” he confronts me, hands ex¬ shunted across the street from the bits if there was a full moon.” (Later, tended, palms up. “What is happen¬ prime minister’s office. The new in¬ General Dong and his Nungs would ing? At least, when the French were cumbent, aging Premier Huong, is inflict heavy casualties on a North here we had security!” Weeks later a puzzled by my presence. He asks an Vietnamese unit attempting to infil¬ South Vietnamese general staff officer aide why he has a “French” adviser on trate Saigon during the Tet offensive in hints at aconundrum. “I am not sure,” his staff. It’s time to leave. My Viet¬ 1968.) he murmurs conspiratorily, “that it namese co-workers give me a going was the VC who planted the Brinks away party. Major Due proposes a toast bomb.” with lukewarm vin mousseaux and we Marshal Nguyen Kao Ky’s planes all shake hands. For old time’s sake I are over Saigon at 0130, buzzing the have a last gin fizz on the terrace of the city, their landing lights blinking. It’s I am invited to an unusual dinner at Continental, where I met my wife for meant as a warning to coup plotters. It l’Amiral restaurant by a representative the first time in 1953. The embassy works. . . for a few days. I drive to the of the Hoa Hao, a religious-military sedan picks me up and takes me to the prime minister’s office one morning to sect that revolted against the Diem airport. find tanks pulled up near the gate. It government in 1955 and was crushed appears to be a reassuring demonstra¬ by the national army. The widow of Ba tion of army loyalty. As I turn into the Cut, the wild, legendary leader of a In 1971 I returned to Vietnam for drive I see the gun turrets are aimed at Hoa Hao splinter group, is there. An the last time, on an “orientation” tour. the government buildings. The dem¬ attractive woman, she is a casting di¬ The embassy gives us an upbeat brief¬ onstration is definitely unfriendly. A rector’s vision of the original Dragon ing and the military stuffs our heads squad of South Vietnamese Rangers Lady. Over steak au poivre washed with figures. In Quang Tri province an has occupied my office. There are pa¬ down with a fine Bordeaux I am told army intelligence officer with bourbon pers scattered over the floor, the desk that the Hoa Hao can once again be¬ on his breath gives us a no-holds- lamp is broken, and they’ve used the come a viable anti-Communist force. barred briefing—much to the dismay corner of the room as a latrine. No one All they need is money and arms. of his superiors. He has been in indi¬ stops me when I walk out, climb into When the meal is over, the Dragon rect touch with a local Vietcong leader my car, and drive away. Lady smoothes her form-fitting Ao Dai whose wife has been captured. The in¬ • and offers me a lift home. I regretfully telligence officer has been attempting decline the offer. to convince the officer to come in un¬ The unexpected heavy explosion der the Chieu Hoi program. He shows smashes windows and breaks up the us the translation of the latest reply press briefing in Barry Zorthian’s Joint A strange thing happens in the mid¬ he’s received. It’s simple and to the U.S. Public Affairs Office. Francois dle of a highly tense period. An point. “No. We will be here long after Sully of Newsweek, an old Indochina American correspondent comes to me you Americans have left.”

34 FOREIGN SERVICE JOURNAL employees who feel that they have not processes are designed, negotiated, State’s Ranking System been adequately recognized in apprais¬ implemented, and operated largely by (Continued from page 21.) al or promotion consideration. If my the people they are intended to serve. the number referred or fewer will be comments have not allayed those It is not likely that significant failings separated from the Service. Certainly doubts, I would only ask that any con¬ in such critical areas would be long this proceess is not a wholesale or in¬ cerned employee discuss the process tolerated. Finally, if all of this is still sensitive attrition mechanism; it ap¬ with an officer whom he or she respects not persuasive, I can only recommend pears to be as equitable a procedure as and trusts who has recently served on a that those who remain skeptical volun¬ can be devised. Selection Board. I am confident that teer for Selection Board service. I Unfortunately, Mr. Wach’s article these members will fully share my own would lay strong odds that the expe¬ may have fanned the doubts and con¬ judgment that the systems do work rience will make believers out of all of cerns of a number of Foreign Service dependably and fairly. After all, these them. EH

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JANUARY 1983 35 Write today, giving Foreign Service Harris was the director of language affiliation. training in Venezuela and North Africa for the Mobil Oil Company from 1953—60. FOREIGN Florida Retirees After moving to Washington in 1964, he Skills Bank began his position at the Foreign Service SERVICE Institute. Of the hundreds of retirees from the inter¬ Survivors include his wife, Madelyn PEOPLE national relations community in Florida, a Gerlich Harris of Alexandria; three sons, small group has been meeting with various Robert of San Antonio, Texas, John of Florida officials to develop a system to help Dallas, Texas, and Ronald of Chantilly, Urgent: Apply Now the state use this unique resource. Retired Virginia; a brother; a sister; and six ambassadors Charles Adair, Clarence grandchildren. For AFSA/AAFSW Boonstra, Robert J. Ryan, and Margaret Scholarships Morgan have been promoting the new NEDVILLE NORDNESS, former public affairs program. adviser with the Arms Control and Disar¬ This is scholarship application time, when To implement it, the Industry Services mament Agency, died at his home in Alex¬ requests for scholarship assistance must be Program and Center for Career Develop¬ andria, Virginia, on September 2 of a heart made immediately if you are to meet the ment Services of the state Department of attack. He was 68. deadline of March 1, 1983. On that date, Education has established a system to re¬ A newspaper reporter who worked for all materials must be received in the office cord the skills of interested retirees who the Associated Press and International of the AFSA Scholarship Programs Ad¬ have international work experience. In News Service in Europe during and after ministrator, 2101 E Street NW, Wash¬ September, Ralph D. Turlington, state World War II, Nordness served with the ington, D.C. 20037. To qualify for con¬ commissioner of education, sent a memo¬ Economic Cooperation Administration sideration in the AFSA/AAFSW Merit randum on the International Retirees mission in Norway in 1948. He joined Award program, the dependent Foreign Skills Bank to several hundred retirees. He USIA in 1953 and was assigned to Rome Service student must be graduating from emphasized the importance of Florida’s as information counselor at the embassy. high school in 1983. This competition is growth and immigration problems and He held the same position later in Bonn. based solely on academic excellence, and how experienced, skilled persons could be He joined ACDA in I960, where he was students are required to submit their SAT a great asset to both the government and a senior adviser to the delegation to the scores, rank in class, grade point average, the private sector. The commissioner said Nuclear Test Ban Conference. Before he transcripts for four years (incuding the first that “retirees with backgrounds in inter¬ resigned in 1973, he was the agency’s pub¬ semester of the 12th grade), a personal national relations represent a unique and lic affairs adviser. essay, a list of extracurricular activities, significant resource which can be mobi¬ Survivors include his wife, Evy, of Alex¬ and one or two references. All completed lized to address the challenges facing Flor¬ andria, children Tove Nordness Parker of applications received by March 1, 1983, ida today.” Charlottesville, Virginia, and Knut Bo will be reviewed by volunteer panels to Information from returned registration Erichsen Nordness of Boston, Massachu¬ determine approximately 22 winners who forms sent with the memo is placed in a setts, three children by a previous mar¬ will receive $500 each. The announcement computer and made available to interested riage, a sister, and five grandchildren. of the winners will be made on May 2, public and private organizations. The 1983. skills bank will be updated periodically. RUTH ADAIR ALEXANDER PRICE, a former The Financial Aid Scholarships are giv¬ Participants can have their names with¬ China-affairs expert in the State Depart¬ en for full-time undergraduate study in the drawn at any time. ment, died of injuries resulting from an United States to qualified dependent For¬ Retirees who did not receive the memo automobile accident on October 1 in John eign Service students, based solely on fi¬ and registration forms who wish to partici¬ C. Lincoln Hospital in Phoenix, Arizona. nancial need. All applicants must file a pate or those having questions may contact A noted humanitarian who sponsored financial aid form with the College Schol¬ Patrick Dallet, Office of the Commissioner refugee bills in Congress that allowed arship Service in Princeton or Berkeley, for of Education, 1701 Capitol/Knot Build¬ some 2000 Chinese into the United States which a fee is charged. Both the AFSA ing, Department of Education, Tallahas¬ and who lobbied on behalf of the creation application and the CSS form are available see, Florida 32301, telephone (904) 488- of the United Nations, she began her ca¬ from the AFSA Scholarship Programs Ad¬ 1812, or Robert J. Ryan, 216 Gull Circle reer in China as an attorney at Yenching ministrator at the above address. The same N., Daytona Beach, Florida 32019, tele¬ University and Union Medical College, March 1, 1983, deadline applies. Quali¬ phone (904) 788-9572. both of Peking. There she met her hus¬ fied students should request these forms band, Walter Sterling Price, a Marine immediately. Deaths guard at the embassy who later became Both the Merit Awards and the Finan¬ vice consul there. After the retreat of the cial Aid Scholarships are available only to C. CLEVELAND HARRIS, the chairman of Nationalist forces to Taiwan in 1949, qualified dependent children of Foreign the Romance languages department at the General Chiang Kai-shek awarded her the Service personnel who are serving or have Foreign Service Institute, died on Septem¬ Auspicious Star, the highest civilian award served abroad in agencies of the U.S. gov¬ ber 27 in his Alexandria, Virginia, home. given to foreigners by the Republic of Chi¬ ernment operating under the provisions of He was 63. na. She later served as a State Department the Foreign Service Act of 1980. It is not He was born in Puerto Rico and educat¬ cultural attache specializing in Far Eastern necessary to be a member of either AFSA ed at the University of Texas, where he affairs until her retirement in 1973. or AAFSW. Personnel in the lower grades earned bachelor’s and master’s degrees. He She is survived by a daughter, Joy Cas- are encouraged to apply. received a doctorate at Cornell University. serly, and four grandsons.

36 FOREIGN SERVICE JOURNAL JAMES W. RIDDLEBERGER, who retired over Trieste and between Greece and Tur¬ ited with convincing Marshal Josip Broz from the State Department in 1967 as a key about Cyprus. He headed the Interna¬ Tito to resist pressure from Soviet First career ambassador, the highest rank in the tional Cooperation Administration, prede¬ Secretary Nikita Khrushchev to rejoin the Foreign Service, died October 16 of a heart cessor to AID, in 1959- Soviet bloc. He was ambassador to Greece attack at Shenandoah County Memorial Joining the Foreign Service in 1929, from 1957—59 and ambassador to Austria Hospital in Woodstock, Virginia. Riddleberger was posted to Geneva and from 1962 until his retirement in 1967. Riddleberger served as ambassador to Berlin. During the war he was the State He later was president of Diplomatic and three countries, Yugoslavia, Greece, and Department’s chief of the Central Europe¬ Consular Officers, Retired. Austria. During the early years of the Cold an Affairs division. He served as chief po¬ Survivors include his wife, Amalie, of War he was active in policy roles in Ger¬ litical adviser to two U S. high commis¬ Woodstock, sons Christopher of Far Hills, many and in the development and admin¬ sioners in occupied Germany. After service New Jersey, and Peter of Washington, istration of the Marshall Plan. An experi¬ as assistant secretary in the Bureau of Ger¬ daughter Antonia Stearns of Athens, enced mediator, he helped negotiate man Affairs, he began a four-year posting Greece, a brother, a sister, and nine disputes between Yugoslavia and Italy to Yugoslavia as ambassador. He is cred¬ grandchildren. FOREIGN EXCHANGE

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JANUARY 1983 37 Association News AFSA Names New Court Finds AID’S Admin. Director, Obey Reg Changes Hill Liaison Officer To Be Lawful

AFSA’s Governing Board has designated In a suit brought by AFSA to contest two Cecil B. Sanner to serve as acting execu¬ recent amendments of AID’s Obey regu¬ tive director and director of administra¬ lations, the U.S. District Court for the tion. In the executive director role, San¬ District of Columbia held that the agen¬ ner succeeds Robert M. Beers, who has ed AFSA’s participation as one of the cy had the right to amend its regulations been named by the Governing Board to founding members of FAIR, the Fund to and that the two amendments in ques¬ fill the newly created position of congres¬ Assure an Independent Retirement, a co¬ tion were not arbitrary. The amendments sional liaison officer. alition now consisting of 25 federal-em¬ allow AID to fill Foreign Service posi¬ Sanner (left) joined the Foreign Service ployee and retiree organizations united in tions with General Schedule employees in 1950, serving in Frankfurt, Bonn, opposition to the possible merger of fed¬ in order to avoid a reduction in force, and Karachi, New Delhi, and Lagos. Fie re¬ eral retirement with Social Security. In they allow the administrator to fill up to. tired in 1968 and was named member¬ addition to this issue, present expecta¬ 15 Foreign Service positions on a time- ship director of AFSA in 1972. In his tions are that the 98th Congress will be limited-appointment basis with non— new position he heads the Association’s called upon to address a variety of other Foreign Service employees. staff in the headquarters building. proposals having an equally fundamental The court reasoned that a federal agen¬ Several years ago. Beers (right) initiat- impact on the conditions of federal em¬ cy ought to have the right to modify its ployment, such as federal pay and regulations and that the changes AID allowances and the health benefits insur¬ made were not offensive to the Obey Sinclaire Awards ance program. Amendment. Program to Honor In establishing the position of con¬ AFSA is contemplating other action to gressional liaison officer, the Governing ensure that AID does not take the court Hard-Language Skills Board is acting to ensure that the special ruling as an invitation to erode further characteristics and requirements of the the Obey regulations. We also intend to The Association has received a bequest Foreign Service personnel system will be ensure that AID complies with the regu¬ from the estate of Matilda W. Sinciaire, taken fully into account whenever any lations and will be quick to bring action the former chief of mission social secre¬ such proposals are under review by the if we find any violation of existing tary and protocol officer at the Rome em¬ Congress. regulations. bassy in the early 1960s, to establish an awards program to recognize outstand¬ ing success in hard languages. Languages Deputy Secretary Becomes Newest Member to be considered are those that normally require at least nine months of intensive study to achieve minimum professional proficiency and are deemed to be of major significance to the Foreign Service, such as Russian, Chinese, Japanese, Polish, Czech, Turkish, and Arabic. The Matilda W. Sinciaire Awards Pro¬ gram will be managed by a committee to be created by the AFSA Governing Board that will include a representative of the Foreign Service Institute. It will be guid¬ ed by achievement marks or score grades on tests administered by or approved by the institute, as well as other informa¬ tion. The program is open to career offi¬ cers, including reserve officers in the Junior Officer Program who are under a Deputy Secretary of State Kenneth W. Dam (left) accepts an honorary certificate of current program and are candidates for membership in the Association from AFSA President Dennis K. Hays. The two met on Foreign Service officer appointments. October 22 to discuss Foreign Service concerns.

38 FOREIGN SERVICE JOURNAL FSLRB Finds Merit District Awards Club Certificate of Merit in ‘Unfair’ Charge Filed Against AID

The Foreign Service Labor Relations Carol B. Thomp¬ Board has made a finding of merit in the son of the Dis¬ unfair labor practice charge AFSA recent¬ trict’s Environ¬ ly filed against AID concerning 1982 Se¬ mental Services lection Board procedures (Association Department pre¬ sents Foreign Ser¬ Netfs. December). In an FSLRB attempt vice Club Manager to settle the case with the agency rather Alberto Gracia than proceed to trial, the board proposed with a certificate in part that AID reconvene last year's of merit December selection boards. 8 for outstanding sanitation ratings. AID management now threatens to postpone the announcement of promo¬ tions indefinitely and says it will fight A Note to Members Even Small IRAs the charge through all legal appeals. AFSA has stated its intention to try to on AFSA and AFSPA Mean Big Returns: work with AID to reach agreement to satisfy the Association's concerns about Insurance Plans State Credit Union the way the system worked this year and to speed employees’ promotions. On page 3 of this issue is an ad for a "You don’t have to deposit S2000 into an Mutual of Omaha accident insurance individual retirement account (IRA) to I ll l> Mil policy administered by the American build up a comfortable sum for your re¬ I Foreign Service Protective Association. tirement," the State Department Federal drinks at special prices Last September, AFSA introduced a new Credit Union reported in its fall 1982 accident plan underwritten by the Feder¬ newsletter. Advantage. “It doesn't take free hors doeuvres al Insurance Company. Information much to earn big returns over the years. ” EVERY FRIDAY about the new plan was mailed to all Besides serving as a source of retire¬ 5—7-30 pm AFSA members. Please be aware that the ment funds, said the newsletter, the IRA Starting January 21 two plans are completely separate. In¬ serves as a useful tax shelter. The credit deed, AFSA terminated its previous plan union printed the following chart to Foreign Service Club with Mutual in order to offer its new, show how fast IRA balances accumulate 2101 E St. NW_ improved policy. We point this out be¬ at a 13 percent rate (10 percent base cause there is still some understandable plus 3 percent bonus, compounded quar¬ confusion within our community about terly; Rate subject to change). AID Standing Moves AFSA and AFSPA. The two organiza¬ For Greater Agency tions are good friends but have no or¬ Years $100 annually $500 annually ganic ties. With the introduction of 10 $ 2,160 $ 10,801 Compatibility AFSPA's new accident policy, which for 15 4,842 24,208 the first time can be purchased independ¬ 20 9,925 49,624 25 19,562 97,808 To increase compatibility among the for¬ ently of AFSPA's regular life coverage, 30 37,832 189,158 eign affairs agencies as called for in the AFSA and AFSPA will be competing in 35 72,469 362.344 Foreign Service Act of 1980, AFSA’s selling insurance. 40 138,135 690,675 AID Standing Committee has proposed revising agency surface-travel regula¬ tions and diplomatic-status provisions. Bookfair ’82 Sales Again Top $60,000 The committee's goal in the first area AAFSW's Maggy is to bring AID regulations pertaining to Morse (right) authorized modes of travel into line with helps a patron choose a book those of State. In the second area, AID from among tens Standing hopes to realize equal diplo¬ of thousands at matic status for agency employees when Bookfair 82 in No¬ compared with employees of the other vember. Proceeds foreign affairs agencies. “Why should the of sales of books, stamps, and art assistant agricultural attache, the assis¬ objects benefit the tant public affairs officer, and the junior AFSA/AAFSW economics officer enjoy full diplomatic scholarship fund status while AID'S chief agricultural offi¬ and community cer does not?" the committee asked. projects.

JANUARY 1983 39 IIJ| III The Bul1 Market: Forget Tips & Hype, I y| |^| tZ ■ Use Fundamental Value Stock Method

Paralleling the recent historic activity on Here are the criteria which the funda¬ growing 8—10 percent annually. Wall Street has been a marked decline in mentalists apply to every selection. —Profits should almost keep pace, an interest rates. Current returns on fixed —The price!earnings ratio must be rea¬ indication of good management’s ability deposits are much lower than those of sonably low. This ratio is the market to control costs. even six months ago. Investor psycholo¬ price divided by the announced earnings —Position. The company should be gy has definitely been affected by this per share. The P/E is one thing only: a well positioned in an industrial (or ser¬ juxtaposition, encouraging many who measure of popularity. It says nothing vice) area with generally favorable had never considered the market to won¬ about the fundamental worth of a com¬ prospects. der how to participate without getting pany, only whether its stock is fairly —Creativity. One measure of corpo¬ burned. priced, underpriced, or too expensive. rate creativity is the amount spent on There are as many ways to choose Use the P/E to look for bargains. A ratio research and development, where appli¬ stocks as there are experts giving advice. below 8 to 10 signals a reasonable price; cable. In an expanding company, R&D The techniques include technical fore¬ below 6, a downright wallflower and expenditures will equal perhaps 2 per¬ casting and charting (making projections possibly a great buy; above 12, the stock cent of sales. of future performance based only on his¬ may be fully valued, too high to expect —Book value. The stock should prefer¬ torical patterns); acting on hunches or justifiable appreciation. Exceptions: the ably be selling at less than book value, tips; and the fundamental-value method P/E ratios of high-tech stocks are often the amount of assets on the books divided of stock selection. This article will con¬ above 12. Check the industry norm. by the number of shares outstanding. A centrate on the last. —Sound, innovative corporate manage¬ very favorably priced stock may be sell¬ The hot tip may occasionally turn up a ment is essential. Stock analysts dig ing at 50—75 percent below book value winner. Yet, if there is a genuine break¬ deeply into corporate affairs for personal (however, many growth stocks are priced through in, for example, semi-conduc¬ as well as financial details. at a premium above book value). tors or genetic engineering, the hype is —A "good" balance sheet that shows a Each of these criteria will screen a likely to cause people to pay far too much healthy relationship of equity to debt, large amount of stock out of contention. for the stock. Companies marketing new preferably 2 to 1 or better. In layman's Those stocks which pass all of the technologies often issue stock to the pub¬ language, does the company owe too screens, according to the value theory, lic long before there are any earnings to much money? will present the least downside risk and support the stock; the issue floats on ex¬ —Dividends. Analysts look for a good, the greatest opportunity for apprecia¬ pectation alone. The stock will find its growing dividend, well-covered. Trans¬ tion. There are a number of mutual funds reasonable value in the market as the lation: Are the earnings sufficient to al¬ which follow this method, for the small forecasts bear fruit—or don’t. low for the dividend to be paid to the investor or for chose without the time, Some examples of the effects of hype shareholders, with plenty to be retained talent, or temperment to go through the were reported in Barron's recently. The for operations and expansion? exercise of individual stock selection. article discussed the “Monday surge” in —Growth. The company should be -—MARGARET WINKLER the prices of stocks mentioned by guest analysts on a popular television program ladon of the Obey regulations, which with ten million viewers. According to AID Standing Notes provide in general that only Foreign Barron s such buying on impulse often Flaws in First Open Service employees may fill Foreign Ser¬ results in disappointment. vice-designated positions. For instance, Fundamental-value stock selection is a Assignments Cycle in one bureau a Foreign Service officer combination of science, art, skill, and and a Civil Service employee switched perseverance. The object is to identify AFSA’s AID Standing Committee has re¬ positions, the GS employee carrying her underpriced stocks of good quality in ne¬ ceived a number of complaints from the “grandfather” status to a position adver¬ glected areas of the market. There are field and from Washington concerning tised under open assignments. AFSA is specific criteria which fundamental anal¬ the first agency open assignments cycle, following up vigorously, though man¬ ysis rigidly applies to find those stocks leading it to question AID’s commit¬ agement claims the switch did not take that provide the most significant oppor¬ ment to make the open assignment poli¬ place. In another case, a GS employee tunities for price appreciation. There are cy equitable and effective. transferred to the Foreign Service to take usually many, except when the market is Many complaints report that not all a prestigious position with the Asian De¬ greatly oversold. Proponents of value in¬ open slots have been advertised and that velopment Bank. The standing commit¬ vesting aim to achieve a 15 to 20 percent cables on open assignments sometimes tee was unable to find the position listed annualized asset appreciation, net of contain errors. The standing committee in an assignment cable. cost, over the long term (a minimum of noted that some plush posts have been These examples seem to be part of a 18 months to three years). Given the es¬ advertising no vacancies or just a few, for trend by management to bring GS con¬ sential features of time, diversification, example Dakar and Manila. Individuals versions and outside hires into the For¬ and discipline, this objective is generally who find problems with the open assign¬ eign Service. Moreover, noted the com¬ achievable. It would have to be post¬ ments system should notify the standing mittee, the unique skills of conversions poned in sustained periods of market de¬ committee through AFSA. and outside hires always seem to be need¬ cline. A related problem concerns AID's vio- ed in the most attactive posts.

40 FOREIGN SERVICE JOURNAL AFSA’s Foreign Service Tax Guide

“These are the times that try men’s souls.” With this remind¬ If your return was prepared by a tax expert, consult him or er by Thomas Paine, we once again start the annual struggle her when audited, since the expert’s workpapers may well to hold our tax liabilities to the legal minimum. The vast have an answer to the query and, in any case, the preparer number of rules and regulations, with their constant changes, should have a working knowledge of the problem and may be makes it increasingly difficult to arrive at concrete guidelines able to suggest a course of action. Always furnish the required as to what is the proper or improper application of certain proof to the IRS, but never provide more than requested, problem areas in the tax laws. Please remember that the since it is not good policy to volunteer added or unrelated following suggestions are intended only as a guide and do not information during an examination—let sleeping dogs lie. If go into great details about the law. As in the past, we empha¬ the auditor decides an added tax assessment is required—a size those provisions that particularly affect members of the fancy way of saying "pay up”—do not be stampeded into Foreign Service. accepting it. Take a few days to think it over and perhaps to The more troublesome areas of tax law confronting Foreign discuss it with your tax consultant. Then advise the auditor Service employees continue to be domicile status and home whether you accept or disagree with the determination. leave deductions. The Internal Revenue Service’s intensified If you disagree, you have three immediate courses open to focus on investigations of tax returns has resulted in an in¬ you: One, an informal conference with the auditor’s superior; creasing number of audits, especially in these areas. The first two, an appellate hearing; and three, the tax court. As a last, thing we should look at, therefore, is how to avoid an audit— desperate attempt, you can pay the tax and then file a claim or survive one if that fails. for a refund in the appropriate U.S. district court. Problems calling for an audit tend to fall into three catego¬ Beware the Audit ries too: One, unreported income; two, overstated expenses; Avoiding an audit begins on the ides of April. Obviously, or three, items with a contrary point of view on taxability or one should be careful in preparing the tax return, but the best deductibility. strategy is to prepare the return as if it will be audited. If unreported income is the problem, and if it is of a Because estimates will not stand up in an audit, all required substantial amount, the IRS may be considering a fraud inves¬ documentation should be organized and available. This is tigation. Such fraud investigations are conducted by a special particularly important in many of the areas where Foreign agent and a field revenue agent. If such agents call on you, tax Service employees are likely to take deductions. counsel is strongly recommended at once, as would be counsel It also goes without saying that getting an occasional audit in any civil or criminal proceeding. One factor in the taxpay¬ is as certain as, well, death and taxes. Remember that audit¬ er’s favor, however, is that, unlike normal audits, in a fraud ing returns is an important compliance factor in our revenue case the burden of proof is on the IRS. system and serves a useful social function. Nonetheless, most of us who receive an audit ask, Why me? Home Leave Expenses First, your name may have been drawn by the Martinsburg Under Revenue Ruling 82-2, substantiated home leave ex¬ Monster, the not-so-affectionate term for the national tax penses of Foreign Service employees are deductible business- computer in West Virginia. Second, your expense deductions travel expenses. It took major court battles in three jurisdic¬ may be out of proportion to your income when compared with tions before the IRS agreed that home leave is mandatory for the national average. Third, you may have been chosen at Foreign Service employees and that expenses incurred may random for the sample audit program the IRS has been con¬ therefore not be classified as “personal in nature.” However, ducting to gain cross-section statistics on compliance. Last, the IRS continues to view the deductions with suspicion, and and worst, it may be the result of an informed tip that the IRS you can be sure that it will require absolute substantiation. is checking for possible tax fraud. Do not use a per diem rate. Audits are normally handled in some combination of three The deduction is made on Form 2106, which results in an ways: correspondence, office visit, or field investigation. adjustment to gross income. In this manner, the deduction is More than likely a taxpayer overseas will face only a corre¬ taken whether one itemizes or not. Only the employee may spondence audit, at least at first. If a reply is required, do it deduct. The IRS maintains that the expenses of your accom¬ promptly and submit copies—never originals—of whatever panying family are personal in nature and therefore are not documents are requested. deductible. Since there is often a fine line between the two, it The taxpayer must decide whether to represent him or is paramount to substantiate through accurate and complete herself or use the services of a person authorized to represent accounting records. taxpayers before the Treasury Department: an enrolled tax It may be a good idea to record your travel in a diary. Write agent, a certified public accountant, or a tax attorney. It all down where you stay and when, plus mileage whether you depends on the issues involved, of course. In most cases, rent a car or use your own vehicle. Keep all receipts for correspondence audits and simpler visits or investigations can lodging and food, as well as for travel expenses incurred be handled by the taxpayer. But if the issues are unclear or within the United States, which may include air, rail, bus, technical in nature, the taxpayer will almost always fare better taxi, car rental and/or mileage at current government rates. with representation by an experienced professional. Reasonable unsubstantiated daily food expenses are acceptable

JANUARY 1983 41 to the IRS as long as lodging receipts can be produced tor those law. not bureaucratic decisions implementing the law. With periods. increasing frequency states are challenging the domiciliary Attach a statement to Form 2106, explaining that you are a status claimed by individuals. The mere desire to change federal employee on overseas assignment, temporarily in the domicile for tax purposes will not satisfy the challenging United States on mandatory home leave. Note home leave state. In fact, rest assured that it will check with the state you dates and proceed to show the IRS how you arrived at the claim as your domicile to see if you are indeed registered deduction by breaking the total amount into three categories: there. unreimbursed travel, lodging, and food. Do not submit re¬ The following factors are normally considered when at¬ ceipts or your travel log unless and until requested to. Fre¬ tempting to resolve a domicile problem: quently, the IRS will ask for a copy of your home leave orders. • State of birth and primary schooling domicile while un¬ You may, therefore, wish to keep a copy with your records. der parental control; Hang on to those records, although this might be cumber¬ • State of domicile after schooling years; some for the ever-mobile Foreign Service employee. The IRS • State of domicile when entering federal service; has three years from the filing date (longer if fraud is involved) • State of legal voting status or where you could exercise to audit your return. Increasingly, it only gets around to civil rights; scrutinizing returns the third and last year. • State where veterans allowance, educational allowance, As this article went to press we learned from two etc., could be obtained; Foreign Service employees that the IRS had denied their • Family ties, including burial plot and church affiliation; home leave deductions on the basis that the require¬ • State where you maintain permanent banking relations; ments of the tax code had not been met. The IRS claims • State in which you own real property; that section 162 requires that an individual must be away • State within which you hold other business investments; from a fixed tax home and return to that same fixed tax • State where your will would be probated; home to claim away-from-home travel expenses. This • State where your auto is titled; means that once an employee has left his residence per¬ • State in which you carry a valid driver’s license; manently, he or she has no fixed tax home. • Home leave state for Foreign Service records; The IRS determination effectively precludes home • State of taxpayer’s past employment and tax-paying leave deductions for an employee in a transitory state, history; i.e., those who have completed a tour of duty, take home • State to which you intend to return when government leave, and proceed to a new location in the United States service ceases; or overseas. Only those employees who, after taking • State from which any military service was performed; home leave, return to the same post of assignment can • State of any personal fraternal or society affiliation. safely deduct substantiated expenses. This interpreta¬ None of these factors by itself will determine domicile, but tion appears to contradict the determination states have they each contribute to the final determination. As stated made regarding domicile (see following section). AFSA previously, in addition to the finer points of domicile deter¬ is requesting clarification and a possible ruling on the mination, the all important “intention” factor must be taken interpretation of the code from the IRS. into account. No two cases are exactly alike in their set of circumstances, and even a slight alteration of a single fact can Domicile vs. Residence lead to a change in domicile, innocent as it may appear to the The domicile is that U.S. state or U.S. district which is the taxpayer at the time. All too often a taxpayer will take an taxpayer’s permanent, legal, basic, “roots" home. Residence action that leads to an unintended change of domicile. is where the taxpayer is physically living at the moment but You may become a resident in another state while maintain¬ often is not his or her "permanent” place of domicile, despite ing your domicile. When you move to Virginia or Maryland the ownership of property, etc., in the residence jurisdiction. while on a Washington assignment, you will become a tax- Domicile requirements remain a major tax problem for paying resident if you live in these states for at least six Foreign Service employees who are unfamiliar with the law months. If you are domiciled in another state that has income and do not consider themselves liable to pay state income taxes, you are subject to double taxation, with a share of your taxes while residing abroad. Few were penalized for this as¬ maximum tax liability going to each state. sumption until several years ago, when states began an inten¬ Foreign Service personnel residing in the District of Co¬ sive survey of residents and former residents who had not been lumbia must pay income taxes, unless they are commissioned paying state income taxes. Once the state catches on, the rude by the president and confirmed by the Senate and maintain a awakening can be costly in terms of large amounts for back domicile elsewhere. (A recent attempt by the D.C. government taxes, along with stiff fines for penalties and interest. to repeal this exemption was unsuccessful.) Do you have a domicile? Yes. Court decisions have made it When you leave your temporary state of residence be sure clear that every citizen has a right to vote and must conse¬ to inform the state’s tax department to avoid later question¬ quently have a domicile in the United States from which he or ing. Most states provide a form for this purpose. There are, of she can do so. There are exceptions, such as retirees living course, some states that do not have income taxes and others more or less permanently abroad, who retain citizenship with¬ that only tax profits from sale of property or bonds. In addi¬ out having a U.S. domicile. Federal government employees tion, some states exempt domiciliaries as long as they live abroad are, however, absent for a fixed time period with an outside the state. eventual return to the United States. Therefore, they must have a U.S. domicile to which they can return. You may, Representation Expenses therefore, be paying for services not received while living Foreign Service personnel are permitted a tax deduction for abroad. Remember, though, that tax liablity is a result of representation expenses in excess of allowances or reimburse-

42 FOREIGN SERVICE JOURNAL ment, provided members moving from the old to the new home; • Such expenses are required of the officer in accordance • Cost of house-hunting trips if incurred at the new with the rank and grade in the Foreign Service and these location; requirements are included in the job description; • Cost of meals and lodging in temporary quarters at the • Such expenses would be reimbursible if the employing new location for a period of 30 consecutive days; agency had sufficient funds for such payments; • The selling or purchase of an old or new residence sold or • A certification by an authorized State Department officer acquired as the result of a change in job location. The same attesting that such excess expenses were incurred for the bene¬ applies to costs of settling an old lease or the acquisition of a fit of the United States and that due to insufficient funds no new lease. Such expenses include brokers’ commissions, law¬ reimbursement was possible for the year involved. This cer¬ yers’ fees, closing costs, fees, and points (to the extent not tificate must be attached to the tax return. claimed as interest). If treated as a moving expense, these One item not allowable is the amount an officer must deductions cannot be used to establish the cost basis of the old personally bear, according to grade, for certain household or new residence. Taxpayers should analyze their situation to expenses over and above the allowances. An itemized listing see which method gives the highest tax advantage. should be attached to any return claiming such deductions Special and more generous rules apply to foreign moves, i.e., showing the date and type of expense, when it was incurred, from the United States to a foreign country or from one and its relationship to Foreign Service activity. foreign country to another. A move from abroad to the United Ordinary trade and business expenses of a Foreign Service States does not qualify as a foreign move except when it is in employee, in excess of any reimbursement, are also deductible connection with bona fide retirement or the move of a spouse and cover items such as AFSA dues, professional publications, or dependent of a deceased person whose principal place of business cards, and the like, as long as the records show them work was outside the United States at the time of death. For a to be directly connected with the employee's official foreign move the following deductions may be taken: assignment. • Cost of meals and lodging in temporary quarters at the Remember, such expenses are only permitted when Sched¬ new location for a period of 90 consecutive days; ule 1040A, itemized expenses, is used by the taxpayer. • The cost of searching for a new residence, up to $4500 The IRS has recently issued a favorable ruling that non¬ ($2250 for a spouse filing a separate return); reimbursable ordinary and necessary business expenses in¬ • The overall dollar limitation on the deduction of expenses curred by a Foreign Service spouse may be deducted. This connected with the sale, purchase, or lease of a residence is gives statutory recognition to the official nature of many $6000 ($3000 for a spouse filing a separate return); activities undertaken by Foreign Service spouses on behalf of • A revised provision is the storage expense deduction, the government. Some examples might be transportation, which includes reasonable expenses (with no dollar limita¬ child care, or special clothing. The ruling is supposed to be tion) for moving household goods and personal effects to and published soon, with guidelines on the appropriate certifica¬ from storage and actual storage expenses arising from the tion for such deductions. taxpayer's overseas employment. To deduct moving expenses, use form 3903 for domestic Educational Expenses moves and form 3903F for foreign moves. If any portion of While in salary status, training expenses for meals, lodg¬ moving expenses was paid by the employer, form 4782 should ing, books, supplies, and other expenses required over and be attached to the return. The taxpayer may obtain a complet¬ above any reimbursements are shown in Schedule 2106 and ed form 4782 from his or her employer. normally are deductible. Expenses of family members are specifically excluded. A statement from the director of train¬ New One-Page Form 1040 EZ ing or other appropriate official should be attached to the A new income tax form for single filers with no dependents return indicating the requirement of such training and its was authorized for 1982. You can use this form if: temporary nature plus the amount of per diem, if any, paid by Your filing status is single; the agency. You are not 65 or over; Training expenses while on “leave without pay" taken to You are not blind; enhance professional background for greater responsibility as You don’t claim dependents; a Foreign Service employee are deductible only if a statement Your taxable income is under $50,000; attached to your return shows that such full-time study was You had only wages, salaries, or tips and hold less than directly related to improvement of your capacity to handle $400 interest income; Foreign Service assignments. As stated above, such expenses, You had no dividends; for yourself only, should be reported on a Schedule 2106. The You do not itemize deductions. IRS will not permit deductions if they are in any way incurred to meet minimum requirements of your position or to qualify Marriage Penalty Deduction you for a new profession. Starting in 1982 the law attempts to alleviate, in part, the so-called "marriage penalty” by providing for a deduction for Moving Expenses two-earner married couples who file a joint return. This de¬ The following unreimbursed moving expenses may be de¬ duction is based on the “qualified earned income” of the ducted if the move was incident to the commencement of spouse with the lower earnings. This means wages, salaries, work in a new location: and other amounts for personal services actually rendered. • Cost of moving household and personal effects including Deferred income and wages exempt from Social Security be¬ pets and cars; cause an individual is in the employ of his or her spouse are • Travel expenses incurred by the employee and household excluded from this deduction. The marriage credit must be

JANUARY 1983 43 adjusted for any deduction, i.e., an IRA, moving or business pletely free of gift and estate taxes. However, when the re¬ expenses, etc., claimed by the lower-income-earning spouse. maining spouse dies the entire estate is taxable, but with the For 1982 the deduction will be 5 percent and for 1983 onward unified tax credit being allowed. Taxpayers should have their it will be 10 percent of the lesser of $30,000 or the qualified wills reviewed and amended with these changes in mind. earned income of the spouse with the lower qualified earned Another change under the 1981 act was an increase from income for the taxable year. The maximum in 1982 will be $3000 to $10,000 in the annual tax-free gift allowance, $1500 and for 1983 onward $3000. This new deduction is which may be granted to as many individuals as desired. This allowed in computing adjusted gross income on a new tax means that gifts spouses can make under the gift-splitting form numbered 1040W. Consequently, taxpayers may claim provision are exempt from gift tax (the previous limit was this deduction even if they do not itemize their deduction on $6000) up to $20,000 per donee each calendar year. 1040A. Sale of Personal Residence Interest and Dividends Capital gains on sale of personal residence may be deferred Sorry, the exclusion for interest income does not apply for if a new residence of equal or greater value is purchased within 1982. Only dividend income of $100 ($200 joint) may be two years (four years if overseas) after the sale. The deferral excluded. provision does not apply to property used in trade or business or for the production of income. Foreign Service employees Energy Credit are affected by this caveat when they rent their personal resi¬ 1982 is another year this credit is allowed. Any balance of dences while overseas. The IRS maintains that rental property the maximum $300 credit (15 percent of $2000) not pre¬ does not qualify for special tax treatment. In Trisko vs. Com¬ viously used can be claimed on 1982 tax returns up to the missioner (1972) (Rev. Rule 59—72), however, the tax court $300 maximum. See IRS form 5695 for details. held that the personal residence of a Foreign Service employee retains that status even if temporarily rented prior to sale. In Political Contributions distinguishing personal residence from investment property A political donation credit of 50 percent of the first $200 in the chief tests remain: donations is allowed on joint returns. Single returns may get • Is the property the taxpayer’s principal residence? the credit at one-half the joint-return amount. You need not • Did the taxpayer reside in the property prior to being itemize to gain this credit allowance. sent abroad? • Did he or she intend to return to the residence upon Child-Care Credit completion of overseas duty? As of 1982 the amount of employment-related expenses Employees who are not sure whether they meet these criteria eligible for the child-care credit has been increased to $2400 should request a copy of the Trisko decision from AFSA. per qualifying individual ($4800 for two or more qualifying Taxpayers 55 years or older are granted a one-time tax dependents). Thus, if adjusted gross income is $10,000 or exclusion of $125,000 on capital gains upon sale of a less, a taxpayer’s credit is 30 percent of his or her employ¬ personal residence. To take advantage of the exclusion, ment-related expenses. However, this rate is phased down by the taxpayer must have owned and lived in the residence 1 percent for each $2000 of adjusted gross income, or fraction for at least three out of five years prior to the sale. Un¬ thereof, in excess of $10,000, but in any case not lower than happily, the three-out-of-five-year requirement has not 20 percent. In other words, when adjusted gross income been tested in court. AFSA has therefore decided to ask reaches $28,000 or more, the 20 percent rate prevails. Details the IRS for a ruling. We are basing our argument on the are fully covered in instructions on the back of form 2441, Trisko case in that the same test of principal residence— which is used for computing this credit. occupancy prior to going overseas and intent to return— This new law also makes outside-the-home expenses credit¬ should determine personal residence status. We are in¬ able for all qualifying individuals as long as they regularly terested in hearing particulars from Foreign Service em¬ spend at least eight hours each day in the taxpayer’s household ployees who are affected by the present rule. (Code Sec. 44(a) (c) (2)). This precludes the availability of the credit for expenses incurred in connection with full-time in¬ Recordkeeping stitutional care. We close by re-emphasizing the importance of keeping adequate and detailed tax records. Estimates are no longer Estate and Gift Taxes adequate regardless of whether or not you can prove that some The unified credit allowed against gift and estate taxes was expense was actually incurred. Tax investigators are under no increased under the 1981 Economic Recovery Tax Act from obligation to make concessions for estimates on returns. It is $47,000 to $ 192,800, to be fully phased in by 1987. At that therefore of vital importance to obtain and save receipts for time this increase will be equivalent to a tax exemption of up tax-related expenses. The IRS is increasingly applying the to $600,000 (prior to 1982 the maximum tax credit was automatic-negligence penalty to careless taxpayers. The old $47,000 or an exemption of $175,625). expression “You can't beat City Hall" is very applicable—no The maximum gift and estate tax rates are also reduced by 5 documentation, no deduction. D percent each year. It follows that after 1986 only a very few estates will encounter estate taxes at all due to the increased This article was prepared with the guidance of R.N. Dussell, an credit and/or exemption. The 1981 act also removed the enrolled tax agent who has counseled AFSA members for many years. ceilings on marital deductions so that any amounts left at the Dussell served as AID employee chief tax adviser from 1961 until death of a spouse are exempt from estate taxes. This permits retirement in 1972. He now operates Taxmasters, at 3601 N. lifetime and testamentary transfers between spouses com¬ Fairfax Dr., Arlington, Virginia 22201.

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