PUBLISHED BY THE AMERICAN FOREIGN SERVICE ASSOCIATION FEBRUARY 2013

THE HIDDEN COSTS OF OUTSOURCING DIPLOMACY AND DEVELOPMENT

AFSA 2012 TAX GUIDE

IN DEFENSE OF THE FORTRESS EMBASSY

Foreign February 2013 Service Volume 90, No. 2

AFSA News 2012 Tax Guide / 37 FOCUS Outsourcing 2012 Tax Guide: StateOverviews / 46 The Hidden Costs of Outsourcing Diplomacy 2012 Tax Guide: State Pension and Development / 21 and Annuity Tax / 56 Outsourcing broad aspects of State and USAID’s engagement with the world VP Voice State: The Importance has become the new normal. But should it be? of Community / 38 BY ALLISON STANGER VP Voice FCS: Much to Lose, Much to Gain / 39 VP Voice Retiree: To Blog or Not to Blog? / 40 FEATURE Life in the Foreign Service / 49 Adlai Stevenson, Dreamer of Things Are You a Lifelong Learner? / 61 That Never Were / 31 The New START Treaty was an encouraging step, but we still need to implement Columns the nuclear test ban first proposed half a century ago. President’s Views / 7 BY JAMES E. GOODBY Institutional Restructuring and Reform: A Strategic Perspective BY Susan R. Johnson SPECIAL Speaking Out / 15 AFSA 2012 Tax Guide / 37 The Value of Fortress This compilation of federal and state tax provisions for the Foreign Service Embassies is designed as an infomational and reference tool. B y Nick Pietrowicz

DepartmEnts Letters / 8 Talking Points / 12 Books / 62 In Memory/ 64 Local Lens / 78

Marketplace Classifieds / 71 Real Estate / 74 Index to Advertisers / 76

Cover photos, “The Tip of the Iceberg,” a 3d rendering, ©iStockphoto.com/-hakusan-. Lower right: an old fortress wall, ©iStockphoto.com/DNY59.

the Foreign Service journal | February 2013 5 FOREIGN SERVICE

Editor Steven Alan Honley: [email protected]

Senior Editor Susan Brady Maitra: [email protected]

Associate Editor Shawn Dorman: [email protected] CONTACTS

AFSA News Editor AFSA Headquarters: LABOR MANAGEMENT Donna Ayerst: [email protected] (202) 338-4045; Fax (202) 338-6820 General Counsel State Department AFSA Office: Sharon Papp: [email protected] Ad & Circulation Manager (202) 647-8160; Fax (202) 647-0265 Deputy General Counsel Ed Miltenberger: [email protected] USAID AFSA Office: Zlatana Badrich: [email protected] (202) 712-1941; Fax (202) 216-3710 Labor Management Specialist Art Director FCS AFSA Office: James Yorke: [email protected] Caryn Suko Smith (202) 482-9088; Fax (202) 482-9087 Labor Management Counselor Editorial Intern Janet Weber: [email protected] Emily A. Hawley GOVERNING BOARD Senior Staff Attorney President: Neera Parikh: [email protected] Advertising Intern Susan R. Johnson: [email protected] Staff Attorney Edward Kurniawan State VP: Raeka Safai: [email protected] Editorial Board Daniel Hirsch: [email protected] Staff Attorney James P. Seevers, Chairman USAID VP: Andrew Large: [email protected] Judith Baroody Francisco Zamora: [email protected] Office Manager William D. Bent FCS VP: Christine Warren: [email protected] Clayton Bond Keith Curtis: [email protected] USAID Senior Labor Management Adviser Gordon S. Brown FAS VP: Douglas Broome: [email protected] Stephen W. Buck David Mergen: [email protected] Staff Assistant Ruth M. Hall Retiree VP: Alex Nostro: [email protected] Richard McKee Mary Ellen Gilroy: [email protected] USAID Staff Assistant Jed Meline Secretary: Vacant Chioma Dike: [email protected] Gregory L. Naarden Treasurer: Andrew Winter Beth Payne State Reps: MEMBER SERVICES Matthew Asada Member Services Director William Bent Janet Hedrick: [email protected] THE MAGAZINE FOR FOREIGN AFFAIRS E. Alex Copher Member Services Representative PROFESSIONALS Tim Corso Kristy Pomes: [email protected] The Foreign Service Journal (ISSN 0146-3543), 2101 E Kenneth Kero-Mentz Administrative Assistant and Office Manager Street NW, Washington, D.C. 20037-2990 is published Elise Mellinger Ana Lopez: [email protected] monthly, with a combined July-August issue, by the Joyce Namde American Foreign Service Association (AFSA), a private, Ted Osius COMMUNICATIONS, MARKETING AND nonprofit organization. Material appearing herein repre- Lillian Wahl-Tuco OUTREACH sents the opinions of the writers and does not necessarily represent the views of the Journal, the Editorial Board or David Zwach Director of Marketing and Outreach AFSA. Writer queries and submissions are invited, prefer- USAID Reps: Ásgeir Sigfússon: [email protected] ably by e-mail. The Journal is not responsible for unso- Jason Singer Director of Communications licited manuscripts, photos or illustrations. Advertising Andrew Levin Thomas Switzer: [email protected] inquiries are invited. The appearance of advertisements FCS Rep: Steve Morrison Special Awards and Outreach Coordinator herein does not imply endorsement of the services or FAS Rep: Vacant Perri Green: [email protected] goods offered. Journal subscription: AFSA member–$20, IBB Rep: Andre de Nesnera Editor/Publisher, FS Books included in annual dues; student–$30; institution–$40; Retiree Reps: Shawn Dorman: [email protected] others–$50. For foreign surface mail, add $18 per year; foreign airmail, $36 per year. Periodical postage paid Robert Houdek Web and Graphics Assistant at Washington, D.C., and at additional mailing offices. Edward Marks Jeff Lau: [email protected] Indexed by the Public Affairs Information Services (PAIS). Hugh Neighbour Molly Williamson PROFESSIONAL PROGRAMS E-mail: [email protected] Coordinator, Retiree Counseling Phone: (202) 338-4045 STAFF and Legislation Fax: (202) 338-8244 Executive Director Bonnie Brown: [email protected] Web: www.afsa.org/fsj Ian Houston: [email protected] Associate Coordinator, Retiree Counseling Executive Assistant to the President and Legislation © American Foreign Service Association, 2013 Patrick Bradley: [email protected] Matthew Sumrak: [email protected] PRINTED IN THE U.S.A. Advocacy Director BUSINESS DEPARTMENT Javier Cuebas: [email protected] Postmaster: Send address changes to Director of Finance Legislative Assistant AFSA Femi Oshobukola: [email protected] Clint Lohse: [email protected] Attn: Address Change Controller Scholarship Director 2101 E Street NW Kalpna Srimal: [email protected] Lori Dec: [email protected] Washington DC 20037-2990 Assistant Controller Scholarship Assistant Cory Nishi: [email protected] Jonathan Crawford: [email protected] CADMUS INSERT LOGO HERE www.afsa.org

6 FEBRUARY 2013 | THE FOREIGN SERVICE JOURNAL PRESIDENT’S VIEWS

Institutional Restructuring and Reform: A Strategic Perspective

BY SUSAN R. JOHNSON

growing buzz is under way sional diplomatic service and its work. rank in person. Foreign Service officers about how to strengthen the By definition, political appointees are are subject to a variety of disciplines Foreign Service and “fix” short-term, partisan and personality-ori- and requirements that correspond to A the Department of State to ented, with little investment in, or com- the needs of diplomatic practice and conduct diplomacy in an increasingly mitment to, the institution. As such, they the international environment. (Let me complex, fast-paced and competi- cannot provide an objective, institutional emphasize that Foreign Service spe- tive world. This renewed attention to a view on matters of policy. Besides weak- cialists are a critical professional and perennial challenge partly reflects AFSA’s ening professionalism within the de- technical component in support of the own advocacy, which has centered on partment, this engenders opportunism. diplomatic mission.) However qualified enhancing professional education and In the field, the large number of am- they may be, Civil Service employees are training. It also stems from Secretary of bassadorial appointments going to per- not subject to those requirements. State Hillary Rodham Clinton’s Quad- sons with little exposure to the environ- The other elephant in the room is rennial Diplomacy and Development ment and practices of international intrinsic to the current structure of the Review, which was aimed at making State diplomacy deprives diplomatic missions Foreign Service. The cone system contin- and the U.S. Agency for International of strong leadership. Instead of merit and ues to channel FSOs into narrow tracks Development more effective, account- competence, these appointments are of- which detract from playing the role and able and efficient institutions. ten rewards for campaign contributions. developing the perspective required of a The steps taken so far are salutary There are, of course, always persons of diplomat, especially at senior levels. Such but not sufficient. In a strategic sense, outstanding quality and experience who an approach also fragments the Service strengthening the Foreign Service, and prove to be assets to U.S. diplomacy, but and militates against its cohesion, iden- State and USAID as institutions, requires they are not the rule. So we must ask two tity and strength. more thorough reform and restructuring. questions. Can we build a strong Foreign We need to find a fresh approach My October column pointed to the Service and Department of State with designed to build a strong diplomatic diminishing presence of the career For- such heavy politicization? And if not, is service, and to strengthen the Depart- eign Service in top leadership positions there any appetite for change? ment of State as the premier institution at State, as demonstrated by data avail- Besides political appointees, we face responsible for the formulation and able on the Office of the Historian’s Web a related challenge. The Department of implementation of American foreign site. It is apparent that the top leadership State and USAID are home to two major policy. After all, a diplomat should be positions within the department and the personnel systems: the General Schedule a skilled facilitator with broad perspec- bulk of ambassadorial assignments to (Civil Service) and the “excepted” Foreign tive and experience­—qualities that are important countries have become politi- Service. Historically, there have been a also important for those responsible for cal appointments—a trend that is spread- series of unsuccessful attempts to merge leading the institution and inspiring the ing beyond the top echelons. these two divergent systems. diplomatic service. Regardless of adminis- Only the Foreign Service can bring These may appear to be provocative trations, this practice has to the conduct of diplomacy the agil- thoughts. But we have only to look at the serious, systemic conse- ity, flexibility and suitability that come diplomatic services of other major coun- quences for the profes- from worldwide availability, rotation and tries, some of which punch well above their weight, to appreciate the relevance Susan R. Johnson is the president of the American Foreign Service Association. of these issues.n

THE FOREIGN SERVICE JOURNAL | FEBRUARY 2013 7 LETTERS

A Model of Interagency part, and hope that both agencies lines of your other changes, I’m betting it Cooperation believe, as I do, that this collaboration is a will be another improvement. I was delighted to read Jane Loeffler’s model of interagency cooperation. Finally, in addition to the new look, comprehensive and beautifully written Casey Jones I’d also like to commend you on your article, “Beyond the Fortress Embassy,” in Director, Design Excellence willingness to publish some controver- your December issue. General Services Administration sial, even “politically incorrect” articles Over the years, Ms. Loeffler has done Washington, D.C. and letters. Admittedly, I do sometimes an amazing job of chronicling the his- find myself disagreeing vigorously with tory of the State Department’s build- An Antidote for Pablum some of your contributors, as I’m sure is ings program. This article is yet another Congratulations to all who were true with some of your other readers. But example of her depth involved in the FSJ’s recent makeover. bravo! There is way too much pablum out of knowledge of the When I received my copy of the there. subject, and intro- redesigned magazine in October, Keep up the great work! duces what I hope the words that came immediately Tibor P. Nagy Jr. will be a new chapter to mind were “fresh, attractive, Ambassador, retired in diplomatic facili- stimulating, improved.” Three issues Lubbock, Texas ties. The Bureau of on, those adjectives still apply. Overseas Buildings The new Talking Points column Some Thoughts on Your Operations surely (formerly Cybernotes) is perfectly Redesign owes her a debt titled for the material included. Graphic design is an ever-changing of gratitude for And your Local Lens department is science and art. So after 18 years with the the passion and another valuable new feature that previous FSJ design, a makeover makes a depth of research she has should engage more readers in contrib- lot of sense. brought to the subject of our nation’s uting to the Journal’s content, given the Still, I would like to offer some feed- embassies. wealth of photographic talent within our back. First, it’s convenient to have e-mail That said, I would offer one clarifica- community. addresses added to the masthead. tion. In the article, Ms. Loeffler incor- The quality of the content has cer- I found the wider palette of colors on rectly identifies me as an architect. tainly matched that of the packaging. the October cover appealing, but recom- While I have great respect for architects, I Focusing the first issue in the updated mend using a different color than white have never sought professional licensure, format on the new generation of Foreign for the background, as in the AFSA News and make no claim to being one. Service hires was an inspired choice. I section. I feel extremely fortunate to have also had a strong dose of déjà vu when The innovation of a narrow spine (per- had the opportunity to assist the State reading the October Speaking Out col- fect binding) makes the magazine more Department in fashioning a building pro- umn on achieving work-life balance—a practical to find on the shelf. If one is gram tailored to the unique needs of the goal that remains as relevant and chal- searching for the issue agency and its mission. OBO is embark- lenging as during my decades in by month, however, the ing on a holistic program that elevates the Foreign Service. ocher-colored “Octo- all of the building disciplines—urban I’ll be interested to see how the ber 2012” is much less development, planning, landscape archi- evolution of your new format pro- easy to spot than the tecture, historic preservation, interior gresses, as you continue to move white “The Foreign design, engineering, finance, construc- away from focusing every issue Service Journal.” tion, operations, maintenance, art and on a single theme. In my view, the Finally, I’m sure sustainability—in addition to architec- previous “focus section” approach Foreign Service ture, to ensure the best product for the worked brilliantly with some subjects photographers will American taxpayer. over the years, less so with others. But appreciate the new I commend the work on everybody’s if the new formula follows the trend avenue for sharing

8 FEBRUARY 2013 | THE FOREIGN SERVICE JOURNAL their best shots with friends and col- Please Report on Benghazi leagues via your new Local Lens depart- My December issue arrived while I ment. was listening to comments on the Picker- Stephen H. Grant ing-Mullen Accountability Review Board FSO, retired report and State Department testimony Arlington, Va. regarding the tragic events in Benghazi this past September. No Thanks, Ike You could do The Foreign Service Journal just AFSA’s membership keeps getting better and better. a service by present- The November issue’s superb and ing an analysis of the fitting memorial to Ambassador report and its implica- Chris Stevens, Sean Smith, Glen tions by people who Doherty and Tyrone Woods was know and understand the most moving I’ve seen any- the problems the ARB where. It reminded me of the report identifies, and by many officers we’ve lost under including the perspec- tragic circumstances, includ- tives of Foreign Service ing Steve Miller from my own A-100 class. members who actually In the extensive “In Their Own Write” work overseas. section of the same issue, the write-ups While your new format is impressive, of the books were effective summaries of the real value of the Journal comes from their contents. the quality and relevance of the contents. But the standout was Dennis Jett’s I hope you will ensure that these continue engaging Speaking Out column (“Psst! to improve. Hey, Buddy, Wanna Buy an Ambassa- Jim Thyden dorship?”), which called to mind some FSO, retired family history. Edmonds, Wash. Back in 1952, my father was offered the embassy in Brussels if he contributed A Bad Decision $5,000 (big money then) to the Eisen- I join current and former FSOs in hower campaign. Dad said he thought mourning the untimely death of U.S. Ike wouldn’t need his help. And besides, Ambassador to Libya Christopher Stevens we’d never had problems with Belgium, and his three colleagues. Still, I must ask so he didn’t want to jeopardize that envi- a question: What in the world was Amb. able record by being made ambassador! Stevens doing in Benghazi, of all places, Congratulations to the FSJ staff and on the anniversary of the 9/11 attacks? AFSA for producing such an important, After all the security warnings and useful and hard-to-put-down publication requests for more security from the each month. ambassador and his regional security Louis V. Riggio officer, why would he go there to dedicate FSO, retired some sort of electronic cultural center on Hollywood, Fla. that particular date? That decision just doesn’t make sense to me. With all due respect to the memory of Amb. Stevens, who by all accounts was

THE FOREIGN SERVICE JOURNAL | FEBRUARY 2013 9 a model FSO, I wonder whether a slight that the great U.S. of A. needs to have an touch of “clientitis” might have taken him office in every country in the world. As to Benghazi on that fateful day. Perhaps Vice President Biden might say, that’s he loved Libya and the Libyans a bit too malarkey! AFSPA much. “Over the years, I’ve asked many www.afspa.org I realize that this is a delicate ques- senior-level State Department decision- tion, but I think it’s worth raising. makers to explain why we stick with Clements Worldwide Guy W. Farmer universality. This year, the answer I got FSO, retired was that we spend peanuts on the smaller clements.com Carson City, Nev. missions compared to what goes toward our presence in Afghanistan, Iraq and Diplomatic Automobile On My Way out the Door… Pakistan, so closing those other, smaller www.diplosales.com As I retire from the Foreign Service posts isn’t worth discussing. after more than a quarter-century as a “I have to disagree, Mr. President. federal employee, let me thank the staff Not only is it wasteful to have missions Embassy Risk Management of The Foreign Service Journal for putting in all the places we have them, but the Embassyrisk.com out a great product. I always get some- size of the staff in most of those mis- thing useful out of each issue, and look sions is ridiculous squared. After the U.S. embassy, the next largest diplomatic The Hirshorn Company forward to continuing to read it as an ex-FSO. facility in most countries is perhaps one- hirshorn.com/afsa In that spirit, I would like to share a tenth the size of ours. congratulatory note I sent to President “Why? A combination of mission McEnearney Barack Obama this past November on his creep and the lack of incentives to behave www.mcenearney.com re-election. any differently. “Dear Mr. President, “I’ve sat with countless bureaucrats “For the past 16 years I’ve worked over the years who have visited posts ProMax for the Department of State, mostly as with the express purpose of ‘right-sizing’ www.promaxrealtors.com a finance officer, serving overseas the the missions. Never has the process been entire time. One of my first memorable much more than an excuse for a shop- experiences in the Foreign Service was ping trip for the folks that come out to do Tetratech being a gofer when Tom Pickering and it. Only marginal changes, if any, have Tetratech.com Susan Rice came to Abuja, Nigeria, and ever resulted. The same is true of the had the bad fortune to have the impris- countless Office of the Inspector General WJD oned M.K.O. Abiola suffer a fatal heart inspections I’ve witnessed and the attack in front of them. myriad visits by various groups within the wjdpm.com “There were certainly plenty of times Bureau of Overseas Buildings Operations. during those 16 years when I’ve been “The truth is that nearly every U.S. proud of my government service—but government agency wants to have an not so much as I’d like, however. That’s overseas presence. And Mother State why I wanted to send you this letter, to herself is no better, enforcing few if any offer some suggestions for your consider- restraints on growth—particularly of ation. (Not that I’ve kept them to myself security personnel. all these years, but from what I can tell, “Theoretically, all of these posi- no one’s paid attention.) tions need to be approved by the chief “The first deals with the principle of of mission, but it’s the exceedingly rare universality, which essentially means ambassador who will say no. Is this how

10 FEBRUARY 2013 | THE FOREIGN SERVICE JOURNAL our money, peanuts or not, ought to be up with what you spent. Who cares? spent? Maybe you could take a page from That’s how per diem generally works Governor Romney’s book and reward the now. So you stay in a cheap hotel or at chief of mission who cuts the deepest. your auntie’s place instead of a five-star “A real ‘right-sizing’ exercise needs to hotel—what’s the big deal? There is no take place at every mission worldwide. additional cost to the taxpayer. By real, I mean that the starting point is “Aside from the occasional risk-averse an X-percent cut in U.S. direct-hire staff functionary who will say that the internal and offices across the board. But at the controls provided by following all the same time, we need to move toward a nutty rules are somehow critical, the big- functional training float, ensuring that gest obstacle is that the Internal Revenue people get the training they need, pri- Service might view these payments as marily between assignments. income. Well, the IRS is part of the Trea- “In order to do this, adequate staff- sury Department that writes these rules, ing needs to be available so folks aren’t and they work for you. forced to go straight from one mission “Besides, the tax issue doesn’t seem to the next. And in making this happen, like a showstopper—particularly if we’re please do not exempt the Bureau of Dip- interested in saving money vice being lomatic Security. Embassies that used to bureaucratic. For those who would argue have one security officer, if that, typically that our current processes ensure that have three or more today. folks don’t cheat, etc., it would not be dif- “You can imagine that in the wake of ficult to set up audit protocols. Benghazi, there’s not a single ambassa- “Thanks (staff member) for taking the dor out there who will cut security unless time to read this. Best wishes for a suc- you tell them that it’s OK. And it is OK. cessful second term.” It’s a dangerous world, and stuff’s gonna Tom Schmitz happen. Having more security officers FSO, retired won’t stop that. In fact, the single most Deadwood, S.D. n effective way to expose fewer people to security risks is to put fewer people in harm’s way. “The other topic I’d like to raise is less weighty, but could result in substantial Have something savings across the government. We need to change the way we handle official to say? travel. “The complex and obtuse rules we’ve Write us a letter. crafted make the costs of administering travel exceedingly high, and give us very Send your little in return. Monetizing travel would thoughts to save us gobs of money. [email protected] “By that, I mean that a trip’s cost is estimated in advance and a payment is made to the traveler. Then it’s done— over. Maybe the amount you’re given for a taxi from the airport doesn’t match

THE FOREIGN SERVICE JOURNAL | FEBRUARY 2013 11 TALKING POINTS

Learning from Benghazi n Dec. 19, AFSA issued a state- Oment commending the compre- hensive Accountability Review Board report on the tragic events of Sept. 11, 2012, when four U.S. officials, including Ambassador Chris Stevens, were killed at the special mission in Benghazi, Libya. The full text of the unclassified ver- sion of the ARB report is available on State’s Web site (www.state.gov). Here are its 24 key recommendations, all of which the Obama administration has pledged to implement: 1. The Department [of State] must strengthen security for personnel and platforms beyond traditional reliance on host government security support in high-risk, high-threat posts. The depart- ment should urgently review the proper

balance between acceptable risk and Image STR/AFP/Getty expected outcomes in high-risk, high- Attack on the U.S. compound in Benghazi, Libya, on Sept. 11, 2012. threat areas. While the answer cannot be to refrain from operating in such The department needs security of [his or her] mission and all environments, the department must do to review the staffing the personnel for whom [he or she is] so on the basis of having: 1) a defined, responsible,” and thus for risk manage- footprints at high-risk, attainable and prioritized mission; 2) a ment in the country to which he or high-threat posts, with clear-eyed assessment of the risk and she is accredited. In Washington, each costs involved; 3) a commitment of suf- particular attention to regional assistant secretary has a cor- ficient resources to mitigate these costs ensuring adequate Locally responding responsibility to support the and risks; 4) an explicit acceptance of Employed Staff and chief of mission in executing this duty. those costs and risks that cannot be management support. Regional bureaus should have aug- mitigated; and 5) constant attention mented support within the bureau on to changes in the situation, including management, with a particular empha- security matters, to include a senior DS when to leave and perform the mis- sis on span of control for security policy officer to report to the regional assistant sion from a distance. The United States planning for all overseas U.S. diplomatic secretary. must be self-reliant and enterprising in facilities. In this context, the recent 4. The department should establish developing alternate security plat- creation of a new Diplomatic Security a panel of outside independent experts forms, profiles and staffing footprints Deputy Assistant Secretary for High- (military, security, humanitarian) with to address such realities. Assessments Threat Posts could be a positive first experience in high-risk, high-threat must be made on a case-by-case basis step if integrated into a sound strategy areas to support DS, identify best prac- and repeated as circumstances change. for DS reorganization. tices (from other agencies and other 2. The Board recommends that the 3. As the president’s personal rep- countries), and regularly evaluate U.S. department re-examine [Bureau of resentative, the chief of mission bears security platforms in high-risk, high- Diplomatic Security] organization and “direct and full responsibility for the threat posts.

12 FEBRUARY 2013 | THE FOREIGN SERVICE JOURNAL 5. The department should develop The war has been fought in a very incorrect manner. minimum security standards for It didn’t improve the situation, but it worsened it. … occupancy of temporary facilities in high-risk, high-threat environments, The world needs us more than we need them. and seek greater flexibility for the use of — Abdul Karim Khurram, chief of staff to Afghan President Hamid Karzai, speaking about the U.S. presence in Bureau of Overseas Buildings Opera- Afghanistan; Jan. 8 Washington Post. tions sources of funding so that they can be rapidly made available for security upgrades at such facilities. metropolitan area, unless a waiver has checks of post tripwires. 6. Before opening or reopening been approved. 10. Recalling the recommendations critical-threat or high-risk, high-threat 8. The Secretary should require an of the Nairobi and Dar es Salaam ARBs, posts, the department should establish action plan from DS, OBO and other the State Department must work with a multibureau support cell, residing relevant offices on the use of fire as a Congress to restore the Capital Security in the regional bureau. The sup- weapon against diplomatic facilities, Cost Sharing Program at its full capac- port cell should work to expedite the including immediate steps to deal with ity, adjusted for inflation to approxi- approval and funding for establishing urgent issues. The report should also mately $2.2 billion in Fiscal Year 2015, and operating the post, implementing include reviews of fire safety and crisis including an up-to-10-year program physical security measures, staffing of management training for all employees addressing that need, prioritized for security and management personnel, and dependents, safe-haven standards construction of new facilities in high and providing equipment, continuing as and fire safety equipment, and recom- risk, high threat areas. It should also conditions at the post require. mendations to facilitate survival in work with Congress to expand utiliza- 7. The Nairobi and Dar es Salaam smoke and fire situations. tion of Overseas Contingency Opera- Accountabilty Review Boards’ report of 9. Tripwires are too often treated tions funding to respond to emerging January 1999 called for collocation of only as indicators of threat rather than security threats and vulnerabilities and newly constructed State Department an essential trigger mechanism for operational requirements in high-risk, and other government agencies’ facili- serious risk management decisions high-threat posts. ties. All State Department and other and actions. The department should 11. The board supports the State government agencies’ facilities should revise its guidance to posts and require Department’s initiative to request be collocated when they are in the same key offices to perform in-depth status additional Marines and expand the Marine Security Guard Program, as well as corresponding requirements 50 Years Ago for staffing and funding. The board also recommends that the State Department he world of watertight sovereign nations speaking to each other only and [Department of Defense] identify Tthrough ambassadors and foreign ministers has all but vanished in a additional flexible MSG structures generation. Today’s major problems, the problems with which governments and request further resources for the are responsible for dealing—war or peace, national and individual survival, department and DOD to provide more prosperity, abundance, scarcity or glut—transcend the ability of any one capabilities and capacities at higher risk government to cope with alone. posts. Yet we are trying to cope with them with jerry-built adaptations of 19th-cen- 12. The board strongly endorses the tury or earlier methods while groping for better ones, without fully realizing even department’s request for increased that we are groping, let alone what we are groping for. DS personnel for high- and critical- threat posts and for additional Mobile —From “Beyond Diplomacy” (part of a periodic series, “Is the Service Security Deployment teams, as well as Ready for the Sixties?”) by Theodore C. Achilles; FSJ, February 1963. an increase in DS domestic staffing in support of such action.

THE FOREIGN SERVICE JOURNAL | FEBRUARY 2013 13 SITE OF THE MONTH: Internet Archive

stablished in July 2002, Internet Archive is a 501(c) (Unlike the rest of the site, keyword searching is not cur- E(3) nonprofit digital library that offers free access to rently supported for the Wayback Machine.) books, movies and music, as well as archived Web pages. The home page also features daily “Curator’s Choice” Like a physical library, the site functions as a repository of selections from its holdings in Community Video cultural artifacts and data for use by researchers, histori- (1,111,736 selections), Live Music (110,717 concerts), Com- ans, scholars and the general public. munity Audio (1,480,975 recordings) and Texts (3,802,776 The site’s “Wayback Machine” enables visitors to items). browse more than 150 billion Web pages the site’s Institutional support for the Internet Archive comes volunteers have archived, from 1996 through late 2012. from Alexa Internet, the Prelinger Archives, Lizard Tech, Simply type in the Web address of a site or page where The William and Flora Hewlett Foundation, the National you would like to start, and press enter; then select from Science Foundation, the Alfred P. Sloan Foundation, the the archived dates available. The search results will point Kahle/Austin Foundation and the Library of Congress. to other archived pages at as close a date as possible. —Steven Alan Honley, Editor

13. The department should assign among American employees, including [Secure Embassy Construction and key policy, program and security per- DS, and receive greater resources to do Counterterrorism Act of 1999] facilities, sonnel at high-risk, high-threat posts so. as well as high-threat Inman facilities. for a minimum of one year. For less 16. A panel of Senior Special Agents 19. There have been technological critical personnel, the temporary duty and Supervisory Special Agents should advancements in non-lethal deter- length should be no less than 120 days. revisit DS high-threat training with rents, and the State Department should The ARB suggests a comprehensive respect to active internal defense and ensure it rapidly and routinely identi- review of human resources authorities fire survival, as well as chief of mission fies and procures additional options with an eye to using those authorities protective detail training. for non-lethal deterrents in high-risk, to promote sending more experienced 17. The Diplomatic Security Train- high-threat posts and trains personnel officers, including When Actually ing Center and Foreign Service Insti- on their use. Employed personnel, to these high-risk, tute should collaborate in designing 20. DS should upgrade surveillance high-threat locations, particularly in joint courses that integrate high-threat cameras at high-risk, high-threat posts security and management positions for training and risk management deci- for greater resolution, nighttime visibil- longer periods of time. sion processes for senior and mid-level ity and monitoring capability beyond 14. The department needs to review DS agents and Foreign Service officers, post. the staffing footprints at high-risk, high- and better prepare them for leadership 21. Post-2001, intelligence collection threat posts, with particular attention positions in high-risk, high-threat posts. has expanded exponentially, but the to ensuring adequate Locally Employed They should consult throughout the Benghazi attacks are a stark reminder Staff and management support. High- U.S. government for best practices and that we cannot over-rely on the cer- risk, high-threat posts must be funded lessons learned. Foreign affairs counter- tainty or even likelihood of warning and the human resources process threat training should be mandatory for intelligence. Careful attention should be prioritized to hire LES interpreters and high-risk, high-threat posts, whether an given to factors showing a deteriorating translators. individual is assigned permanently or in threat situation in general as a basis for 15. With increased and more com- longer-term temporary duty status. improving security posture. Key trends plex diplomatic activities in the Middle 18. The department should ensure must be quickly identified and used to East, the department should enhance its provision of adequate fire safety and sharpen risk calculations. ongoing efforts to significantly upgrade security equipment for safe havens 22. The DS Office of Intelligence and its language capacity, especially Arabic, and safe areas in non-Inman/SECCA Threat Analysis should report directly to

14 FEBRUARY 2013 | THE FOREIGN SERVICE JOURNAL the DS assistant secretary and directly While Uncle Sam’s spending collected by the Office of Personnel supply threat analysis to all DS com- on contracts grew every year Management from 700,000 employees ponents, regional assistant secretaries during Bush’s tenure, the raw at 362 agencies. That total accounts for and chiefs of mission in order to get key nearly a third of the total federal work numbers never exceeded the security-related threat information into force, making it the largest such survey the right hands more rapidly. heights reached during most of ever conducted. 23. The board recognizes that poor President Obama’s first term. With 68.2 percent of employees performance does not ordinarily con- expressing job satisfaction (two per- stitute a breach of duty that would serve centage points down from 2011), the as a basis for disciplinary action, but is spending by $20 billion during Fiscal Department of State ranked third on the instead addressed through the perfor- Year 2012, largely by increasing coor- large agencies list, behind NASA and mance management system. However, dination between agencies. Defense the intelligence community. The Com- the board is of the view that findings of accounted for most of the savings. merce Department and Environmental unsatisfactory leadership performance Joe Jordan, administrator for the Protection Agency rounded out the top by senior officials in relation to the White House Office of Federal Procure- five. security incident under review should ment Policy, pledged that the cost- Mid-size agencies were a new cat- be a potential basis for discipline cutting effort would continue across the egory this time, with 22 selected for the recommendations by future ARBs, and government: “It’s a collective effort to PPS survey. The U.S. Agency for Interna- would recommend a revision of depart- spend smarter and buy less.” tional Development came in 15th with ment regulations or amendment to the The Obama administration hailed a score of 58.8 percent (up a percentage relevant statute to this end. the 4-percent drop in contract spending point from 2011), while the Broadcast- 24. The board was humbled by the as the largest single decline for a single ing Board of Governors came in last at courage and integrity shown by those budget cycle on record, and pointed out 46.8 percent (down more than six per- on the ground in Benghazi and Tripoli, that total expenditures via federal con- centage points from the year before). in particular the DS agents and annex tracts were 6 percent below the Fiscal Among small agencies, the Peace team who defended their colleagues; Year 2009 level it inherited from Presi- Corps ranked fourth with a score of 81.5 the Tripoli response team, which dent George W. Bush. However, Hicks percent (up nearly three points from mobilized without hesitation; those notes that while Uncle Sam’s spending last year). in Benghazi and Tripoli who cared on contracts grew every year during As a whole, just 60.8 percent of for the wounded; and the many U.S. Bush’s tenure, the raw numbers never federal government employees said government employees who served in exceeded the heights reached during they were satisfied with their jobs. Benghazi under difficult conditions most of President Obama’s first term. That score, the lowest since PPS began in the months leading up to the Sept. Overall, contracts accounted for reporting the rankings in 2003, reflects a 11-12, 2012, attacks. We trust that the about 14 percent of all federal govern- drop of 3.2 percentage points from 2011. department and relevant agencies will ment spending last year, the lowest level The survey indicates that workers’ take the opportunity to recognize their since 2003. perceptions of their leaders were key exceptional valor and performance, —Steven Alan Honley, Editor to their job satisfaction, as shown by which epitomized the highest ideals of significant drops in positive comments government service. State: A Pretty Good about agency management. Other —Steven Alan Honley, Editor Place to Work factors leading to the overall decline he Partnership for Public Service, in rankings include the federal pay Spending on Federal Tin collaboration with Deloitte Con- freeze, constraints on opportunities for Contracts sulting Services, recently released its advancement and fewer rewards for riting in the Dec. 6 Washington seventh annual survey of “Best Places to good performance. WPost, Josh Hicks reports that the Work in the Federal Government.” Max Stier, president and chief federal government reduced contract The 2012 results are based on data executive of the Partnership for Public

THE FOREIGN SERVICE JOURNAL | FEBRUARY 2013 15 Service, called this an “alarming trend,” and warned that the Obama adminis- The Real Global Hot Spots? tration needs to address it. “Even with ccording to a recent Gallup Poll, famously hot-blooded Italians are only the external challenges, we’re seeing a Amoderately emotional. In fact, residents of more than 70 other coun- failure of management.” tries reported more intense feelings, including such firebrands as Finland and John Berry, chief of the Office of Per- Canada. sonnel Management, concurred. “The Gallup government is likely to be on a pretty indexed 150 strict diet for the foreseeable future in countries and terms of resources,” he said. “We are territories encouraging every agency to dive into by surveying their results and pay attention to them.” residents on —Steven Alan Honley, Editor whether they experienced any Information Wants of five negative to Be Free and five positive hen President Barack Obama emotions in the Wsigned the Fiscal Year 2013 previous day. defense authorization bill on Jan. 2, he The more “yes” responses, the more emotional the country. also lifted a 65-year ban on domestic A map created by the Washington Post for its Nov. 28 article on the poll dissemination of government broad- reveals some unexpected patterns and outliers in the world’s emotional land- casts by the Voice of America, Radio scape. Passionate purple shades the Americas, while post-Soviet countries are Free Europe/Radio Liberty, Radio a stoic light green. The Philippines looms in a sea of less emotive countries, Martí, Radio Free Asia and Middle East as befits its standing as the world’s most emotional country by far. Singapore, Broadcasting Networks. A Jan. 4 posting barely visible on the map, is at the other end of the continuum. on the Broadcasting Board of Gover- Also noteworthy is the type of emotion experienced. Respondents in Latin nors Web site explains the sequence of America tend to report smiling and laughing more frequently than most other events. parts of the globe. But the Middle East is another story: Iraq leads among coun- The 1948 Smith-Mundt Act, named for tries most likely to experience negative emotions, and most of its neighbors are its sponsors, contained many beneficial not far behind. provisions, but is best known for forbid- —Emily A. Hawley, Editorial Intern ding the broadcast or distribution in the United States of any content intended for global audiences. The ban was intended, in part, to prevent overseas propaganda As Internet distribution became avail- tic distribution ban was attached to the efforts from being directed toward U.S. able, keeping a lid on BBG content in the defense authorization bill. citizens. United States grew more difficult. VOA For U.S. broadcasters, the change After the Cold War ended, growing Russian, for example, can be seen almost means little on a day-to-day basis, other numbers of U.S.-based ethnic broadcast- daily in New York City because local than that they need not worry about their ers serving diaspora populations sought cable channel operators import Russian- content popping up in the U.S. No money access to such content. The BBG had no language channels from overseas. can be used to create content directed choice but to deny such requests, but The Smith-Mundt Modernization Act at domestic audiences, and the BBG— many of the outlets—ranging from Suda- was first introduced in 2010 to lift the which strongly supported the measure— nese broadcasters in Minnesota to Cuban ban without overturning the rest of the has no plans to measure any domestic community broadcasters in Miami—used original legislation. Though that measure audiences that may occur. n the material anyway. never passed, the repeal of the domes- —Steven Alan Honley, Editor

16 FEBRUARY 2013 | THE FOREIGN SERVICE JOURNAL SPEAKING OUT

The Value of Fortress Embassies

BY NICK PIETROWICZ

he December Foreign Service the wrong image to local residents. Journal focused on a timely It is true that our diplomatic missions subject: embassy security and can appear daunting. The requirements Tthe ongoing efforts to modify the of the Secure Embassy Construction and New Embassy Compound concept. Counterterrorism Act of 1999 establish a Often labeled “fortress embassies” by clear perimeter between the embassy and detractors, NECs are seen as projecting an the world outside. In addition, many posts image of America as heavy-handed and have worked with host governments to put imperialistic. Observers bemoan their in place protocols restricting photography tall walls and say the demeanor of NEC near embassies. guards limits openness and interaction. As a result, some claim that NECs look Yet U.S. diplomacy continues to func- more like sterile military outposts than tion in these settings. Foreign Service inviting diplomatic facilities. I believe personnel host visitors, interact with locals most of this anxiety comes from the outside the walls, and provide citizen idea that, despite our best diplomatic services, all despite the allegedly inacces- efforts, a fortress embassy will indicate sible nature of these facilities. That record to host-country nationals that America is suggests that the actual appearance of intimidating. these buildings is at most a minor prob- Some of this concern may also stem © iStockphoto/GoranStimac lem for residents of these countries, and from the comments of third-country Exterior view of Rocca Scaligera, a one adequately addressed by existing and diplomats, a population well-versed in the fortress in Sirmione, Italy. planned Department of State policies. subject of embassy design. But for a nation with a secure embassy over one which It also indicates that identifying the as large and important as our own, the is open and unintimidating, but vulner- true sources of hostility against our diplo- appearance of an embassy is hardly the able. Having a U.S. embassy or consulate matic missions is more complex than the only factor to consider when interacting attacked is a disaster for the host country. current debate suggests. with other diplomats. Leaving aside the ramifications for bilat- When local officials raise complaints eral relations, local residents are statisti- The Importance of Image about fortress embassies, we do have an cally far more likely to be killed or injured For many U.S. diplomats, the greatest obligation to listen. After all, host gov- in such an attack than diplomats. fear while working overseas is not anti- ernments are the ultimate protectors of For all these reasons, an intimidating American violence, but the possibility that diplomatic facilities. But in my experience, but safe building might generate gossip in their embassy or consulate might project most local officials would prefer to work local diplomatic circles, but little discus- sion among the host-country population. Nick Pietrowicz, a State Department Diplomatic Security Special Agent since 2002, is the Indeed, I haven’t encountered many Regional Security Officer in N’Djamena, Chad. He served previously as RSO in Chisinau people outside Foreign Service ranks who (2008-2011), and as assistant RSO in Kabul (2006-2007) and Port-au-Prince (2003-2005). He actually worry about the way our embas- was a State Department representative on the AFSA Governing Board from 2007 to 2008. The sies and consulates look. views expressed in this article are those of the author, and do not necessarily reflect those of the That may be because most impressions Department of State or the U.S. government. of the United States and its citizens still

THE FOREIGN SERVICE JOURNAL | FEBRUARY 2013 17 originate in Hollywood and Silicon Valley, not the local post. So long as U.S. facilities in a host country are secure, the physical appearance of our embassies is unlikely to significantly influence popular opinion.

Lots of Talk, But Few Actual Problems Just how fortified are U.S. embassies? It depends on who’s speaking. We hear often of the fortress-like appearance of our embassies in Baghdad and London, to cite two examples of cities with a history of serious terrorist concerns. But visiting the other 270-odd diplo- matic facilities around the world reveals potential vulnerabilities in many of our buildings. I still recall one mid-sized embassy where I worked a few years ago. It was so close to the street that visa applicants waiting outside could look into our offices and read our e-mail. And the chancery in one small island nation is so unprotected that I once overheard some U.S. tourists remark, “That’s it? The McDonalds at least has armed guards.” During my first few weeks in Kabul in 2006, I regularly fielded complaints from colleagues that the embassy was overly security-conscious and we were too isolated from the public. Then one morning, the concussion from a suicide bombing at the front gate cracked the blast-resistant window in the room below mine—a sobering reminder of the value of the setback requirements imposed by the Secure Embassy Construction and Coun- terterrorism Act. The complaints stopped for a few weeks, but resumed when new staff arrived. Whatever the security situation in a given place, U.S. diplomats need to leave their offices to meet with contacts, learn about the host country, visit assistance projects, and carry out the many activities

18 FEBRUARY 2013 | THE FOREIGN SERVICE JOURNAL of today’s Foreign Service. And yes, there The Design Excellence initiative are several countries where getting past the walls to do so is particularly difficult. appropriately addresses what But blaming the appearance of these are often exaggerated complaints facilities for such restrictions makes no sense. Secure embassies are not a direct about the appearance and accessibility obstacle to conducting U.S. foreign policy of U.S. diplomatic facilities. with a host country. Rather, those barriers originate in the post’s security policy. Perhaps there is an argument to be made that enforcement of such restric- Some observers speculate that our already accustomed to stringent security tions at certain embassies is too strict, just embassies are not just frightening to look measures. as it might be overly permissive at other at, but deter visitors. But it is impossible I once watched a former host-country posts. But in and of itself, I don’t believe to know how many contacts decline official being stopped at a checkpoint that the outward appearance of an NEC meetings in our facilities simply because while entering our embassy. As I started is a meaningful obstacle to the ability of of their appearance. Moreover, such con- to apologize for the inconvenience, he diplomats to conduct U.S. foreign policy. A cerns ignore the reality that some of our interrupted me: “I went through four deficit of off-compound travel should not most secure facilities are in places where roadblocks to get here today—at least you be used to argue for weaker buildings. members of the local population are have air conditioning!”

THE FOREIGN SERVICE JOURNAL | FEBRUARY 2013 19 Blaming the Messenger Those seeking to do us harm are not Arguing that secure embassies sig- nificantly harm the image of the United violent because of the appearance States implies that security needs originate of our facilities, however intimidating. in security measures, not the other way around. According to this line of reason- ing, if we lessen countermeasures, local perceptions of the United States would improve and make our diplomatic mis- not everyone will welcome our presence, Specifically, the two bureaus have sions safer. and respond by protecting our personnel, collaborated to develop the Embassy If only it were that easy! facilities and information appropriately. Perimeter Improvement Concept to After all, what traditionally has engen- In that regard, it will not suffice to increase keep the outside of our facilities secure dered more anger toward U.S. diplomats: security only in conflict zones and hot while projecting a neutral, even pleas- the way our buildings look, or the ideas spots. I believe that far too many of our ing appearance. Solid masonry walls are promoted from within? Anti-American embassies and consulates all over the being replaced with secure fences, while sentiment is grounded in complaints far world lack effective protection. the harsh metal and concrete of bollard broader and more complex than how Transnational terrorists, perpetrators systems are being balanced with colorful many cameras hang from the roof of a of the most serious attacks against embas- art and cleverly landscaped trenches. chancery. The audiences most disturbed sies in recent years, are unconcerned In many locations, water is substituting by secure embassies—foreign diplomats about which Department of State bureau for the blank openness of asphalt, which and host-government officials—are at the received more funding in the past year. used to make up the setback require- bottom of the list of potential attackers. Since they view our personnel as sym- ment between public areas and the Simply put, the individuals seeking bols of our foreign policy as a whole, our chancery. And where possible, security to do us harm are not violent because of embassies everywhere are at risk. countermeasures are incorporating green the appearance of our buildings. They are Returning to a more conventional style elements, making our missions more displeased with the activities, or the mere of diplomacy and decreasing our activities sustainable. presence, of the United States in their around the world would lessen that risk. As long as our nation’s overseas respective countries or the world. Absent that change, we must assume all of involvement goes beyond traditional This is not to suggest our diplomats our facilities are targets. diplomacy, we can expect our embassies overseas should cease their vocal defense around the world to remain tempting of our foreign policy. But we should recog- EPIC Progress targets. In my view, the Design Excellence nize that such work can encourage hostil- We must keep our embassies safe—but initiative appropriately addresses what ity and that such threats must be met with we can try to do so in style. Responding are often exaggerated complaints about commensurate security countermeasures. to criticism that secure embassies appear the appearance and accessibility of U.S. intimidating, the Bureau of Overseas diplomatic facilities. Speaking Loudly Requires Buildings Operations is working with the Such improvements should assuage Big Embassies Bureau of Diplomatic Security to soften most critics of so-called fortress embas- The U.S. presence overseas has been the appearance of New Embassy Com- sies. Those who are not mollified can steadily growing since the 9/11 attacks, as pounds. In keeping with the Department take comfort that most people I meet are have the consequences. Much of this spend- of State’s Design Excellence goals, OBO unconcerned about the appearance of ing has gone to programs operated by the and DS are researching ways to improve U.S. embassies, and that potential attack- Pentagon or the intelligence community, the costs, aesthetics and sustainability of ers who might be provoked, whatever the but diplomatic and development efforts embassies, without compromising secu- reason, will be deterred by appropriate have expanded in the past decade, as well. rity. These changes will be most notice- security measures. n If we are going to be more engaged able not to U.S. diplomats, but to observ- around the world, we must appreciate that ers on the street.

20 FEBRUARY 2013 | THE FOREIGN SERVICE JOURNAL FOCUS OUTSOURCING

THE HIDDEN COSTS OF OUTSOURCING DIPLOMACY AND DEVELOPMENT

Outsourcing broad aspects of State and USAID’s engagement with the world has become the new normal. But should it be?

BY ALLISON STANGER

he United States has now spent around two trillion dollars on an 11-year-long war on ter- ror. It is tempting to believe we can eliminate additional losses by simply declaring it over, but the costs of pursuing wars in Iraq and Afghanistan have not just been financial. TTo pursue those missions, American diplomacy and devel- opment functions have been outsourced in unprecedented ways over the past decade. In using the term “outsourcing,” I refer to the increased reliance on contracts and grants to do the work of government, which correlates with a higher percentage of contractors in the State Department’s total work force. Outsourcing involves the transfer of jobs from the public to the private sector, where the work may be done by corpora- tions, nonprofit organizations or hybrid entities. The unin- tended consequences of that policy shift will pose challenges for the civilian side of foreign policy long after the last soldier has come home.

THE FOREIGN SERVICE JOURNAL | FEBRUARY 2013 21 The table below, based on data from www.USAspending. gov as of December, illustrates the sheer magnitude of the change in the way the U.S. Agency for International Develop- ment and the Department of State have pursued their respec- tive missions over the past decade. While the total figures for contracts and grants include expenses that do not constitute outsourced jobs, and also reflect increased resources from war- time supplemental appropriations, the trajectory of the trend is striking. In 2000, the State Department spent just $1.3 billion on contracts and $102.5 million on grants. By 2010, the value of contracts had grown to $8.1 billion, and grants had grown to $1.4 billion, increases of 523 and 1,266 percent, respectively. Over the same period of time, USAID’s spending on contracts rose from $535.8 million to $5.6 billion, a tenfold increase. And its spending on grants increased by an astonish- ing 46,014 percent over that same decade. While the ranks of the Foreign Service grew during that same period, the expansion in the number of government employees involved in overseeing this explosion of resources was not commensurate. A similar trend unfolded at the Pentagon, albeit on a pro- portionally smaller scale. But the shift was much more massive in terms of total dollars expended.

The New Normal Still, it is on the civilian side of the equation that we see the most dramatic change: Outsourcing broad aspects of State and USAID’s engagement with the world has become the new normal.

Allison Stanger is the Russell Leng Professor of International Politics and Economics at Middlebury College and the author of One Nation under Contract: The Outsourcing of American Power and the Future of Foreign Policy (Yale University Press, 2009/2011). She served as a subject-matter expert for the Quadrennial Diplomacy and Develop- ment Review process, and has testified before Congress on contract- ing-related issues.

Contracts in Contracts in Change in Grants in Grants in Change in 2000 2010 Contracts 2000 2010 Grants State $1.3 billion $8.1 billion 523% $102.5 million $1.4 billion 1,266% USAID $535.8 million $5.6 billion 945% $19.3 million $8.9 billion 46,014% Defense $133.4 billion $367.6 billion 176% $2.2 billion $5.2 billion 136%

22 FEBRUARY 2013 | THE FOREIGN SERVICE JOURNAL The transformation was abuse. When Congress cuts fueled by a decade of war The QDDR report calls off emergency appropria- and ambitious operations on state to restore tions and troops are drawn in post-conflict environ- down, the question of how ments. Outsourcing to gain government capacity in best to secure American surge capacity was one mission-critical areas to interests and sustainable way to deal with what were development with more seen by some to be unique balance the work force. limited resources for the circumstances, unlikely to countries we aspire to help be repeated. Hiring others will remain. to do jobs in these environments meant the government could Above and beyond the surge capacity they can provide, avoid building up staff it would not need in the future, when another motivation for turning to contractors is the reality Iraq and Afghanistan had been stabilized. that securing funds for additional government staffing is an Sadly, the demand for civilian resources has proved insa- ever-tougher sell in today’s political environment. The percep- tiable. Admittedly, wartime contracting differs dramatically tion that hiring more government employees means more from contracting in more stable environments, but the basic bureaucracy and less efficiency makes outsourcing the path of point pertains for both. Throwing money at problems in an least resistance for getting anything done—and one that is less improvised fashion without proper attention to the optimal prone to scrutiny. chain of command is always a recipe for waste, fraud and It is also easier to secure funds for programs than to ensure

THE FOREIGN SERVICE JOURNAL | FEBRUARY 2013 23 the money is well spent. In from within is always wartime Iraq and Afghani- Once institutions start to rely a sensitive business, of stan, oversight largely on contractors, they slowly lose course. Every suggested devolved to the Offices of change potentially casts the Special Inspector Gen- in-house capacity, creating a someone else’s past efforts eral for Afghanistan and for in a negative light. Iraq Reconstruction, respec- vicious cycle. The QDDR report, tively. But SIGAR and SIGIR issued in December 2010, could act only after things had irretrievably gone off the rails; identified several areas where recalibration of current practices they could not steer processes in the right direction before they was indicated to balance the work force and improve oversight went awry. and accountability. As part of that effort, the report called on For all these reasons, outsourcing at State and USAID State to restore government capacity in mission-critical areas— turned into a self-perpetuating mechanism. Once institutions i.e., to bring back in house functions that should never have start to rely on it, they slowly lose in-house capacity, becoming been outsourced. However, the drafters refrained from offering increasingly dependent on continued use of contractors—even a list of mission-critical functions that are best performed by after experience reveals some things may properly belong government employees. squarely in-house. The study did acknowledge that simply reversing outsourc- The tragic loss of four American lives in Benghazi last Sep- ing would not necessarily rectify these problems. Instead, tember is in part the unsurprising price of pursuing diplomacy USAID and State will continue to seek “the appropriate mix of and development programs in dangerous locations. But it is direct-hire personnel and contractors so that the U.S. govern- also a call for the State Department to rethink the outsourcing ment is setting the priorities and making the key policy deci- trend in looking toward the future. sions.” Another key conclusion highlighted interagency coopera- Reform from Within tion as an important antidote to excessive reliance on contrac- Fortunately, that process has already begun. Soon after tors: “The theme of interagency collaboration runs throughout taking office in 2009, Secretary of State Hillary Rodham Clinton all aspects of the QDDR. We will turn to the personnel of other launched a sweeping strategic assessment of State and USAID’s agencies before turning to contractors.” missions: the Quadrennial Diplomacy and Development Several recommendations focused on rebuilding USAID’s Review. Among the many issues it considered was the implica- in-house development expertise, which had atrophied due to tions of outsourcing: massive budget cutbacks and hiring freezes during the 1990s “Much of what used to be the exclusive work of government and 2000s. As a result, the agency was in danger of becoming a has been sourced to private actors, both for-profit and not-for- contract clearing house. profit. As responsibilities mounted, obligations in front-line Even before the QDDR’s public unveiling, in fact, USAID states expanded and staffing levels stagnated, State and USAID had begun to address those challenges through its USAID increasingly came to rely on outsourcing. Contracts with and Forward initiative, billed as “an effort to make the agency more grants to private entities often represent the default option to effective by changing the way we partner with others, embrac- fill growing needs. And these contracts and grants themselves ing a spirit of innovation and strengthening the results of our have become high-profile instruments of U.S. diplomacy and work, saving money and reducing the need for U.S. assistance development.” over time.” Also in 2009, I published a book exploring the causes and The QDDR pledged that USAID would identify positions consequences of the trend to contract out core diplomatic and more appropriately performed by direct-hire personnel, and development functions: One Nation under Contract: The Out- enhance and improve private security contractor oversight sourcing of American Power and the Future of Foreign Policy. and accountability, since reliance on U.S.-based contractors (See the January 2010 issue of The Foreign Service Journal for and implementing partners tends to undercut efforts “to build a review.) That led to an invitation to participate in the QDDR local capacity so partner countries can sustain further prog- process. It was an honor to accept, though proposing reforms ress on their own.” Enshrining the goals of USAID Forward

24 FEBRUARY 2013 | THE FOREIGN SERVICE JOURNAL in the QDDR process was civilian capacity issues. As an important step toward The unintended consequences Shawn Dorman reported in crafting a more sustainable of outsourcing will pose the October 2012 Foreign path for U.S. development Service Journal (“The Hir- policies. challenges for the civilian side ing Pendulum”), the goal While the QDDR noted of the State Department’s a need to close a gap in of foreign policy long after the Diplomacy 3.0 initiative overseas mid-level staff- last soldier has come home. was to increase the size of ing, apart from a general the department’s Foreign acknowledgement that the Service cohort by 25 per- State Department had relied too much on contractors in some cent (with a comparable increase in associated budget levels) areas of its operations, it refrained from more specific recom- and the size of the Civil Service component by 13 percent, both mendations on State’s side of the equation. Unlike the situation by 2013. USAID’s Development Leadership Initiative sought to at USAID, there was no reform initiative already under way at double the size of the agency’s Foreign Service by adding 1,200 State that the QDDR could highlight to better ensure its suc- new FSOs to its ranks. cessful implementation. Both agencies made substantial progress toward their respective goals: USAID had hired about a thousand FSOs, The Picture Today more than 80 percent of the goal, by the end of 2011. Mean- State and USAID have both made some progress on their while, State managed to increase the size of its Foreign Service

THE FOREIGN SERVICE JOURNAL | FEBRUARY 2013 25 corps by about 17 percent year were Veritas Capital over the same period. The tragic loss of Fund, B.L. Harbert Hold- In the wake of the four American lives in ings, Miscellaneous Foreign financial crisis, however, Contractors, Triple Canopy the hiring pendulum began Benghazi should be a call and Goldberg Lindsey & to swing the other way in for State to reconsider Company. (Reliable figures 2011. State now anticipates for 2012 are not yet avail- its goals will not be met security arrangements able, since USAspending. until 2023. Meanwhile, the in dangerous locations. gov is a live data stream.) Government Accountability Admittedly, these fig- Office reported in July 2012 ures do not tell us exactly that significant Foreign Service mid-level staffing gaps persist how large outlays for contracts influence direct-hire staffing at both agencies despite the increases in hiring. levels at USAID and the State Department. But all the avail- Taken together, State’s Diplomacy 3.0 initiative and USAID’s able evidence suggests that entrusting the private sector with Development Leadership Initiative have added more than a larger proportion of the government’s daily work eventually 4,000 positions over the last three years, of which around 1,200 undercuts the case for the unique contribution of employees are FSOs. Despite repeated requests for data, State has not wholly committed to serving the public interest, rather than a released statistics indicating how many of the remaining posi- bottom line. tions are held by contractors and how many by Civil Service To put it another way: If contractors and full-time employ- members. ees are deemed interchangeable in most situations, then Further complicating efforts to analyze the extent of contractors will almost always appear to be the most desirable outsourcing, Congress requires that funding requests for choice, especially when revenues are scarce. Contractors can additional staffing be divided between the base budget and a be hired for specific tasks, and when they are done, they do not category for Overseas Contingency Operations (covering posts remain on the payroll or accrue benefits; no long-term finan- for Iraq, Afghanistan and Pakistan). It does not stipulate how cial commitment need be made. the latter funds are to be spent, however. Similarly, if the choice in tough financial times is framed At the time of this writing, it is unlikely that these gains in as between investing in the private sector and infrastructure additional positions are in any way locked in, since so much abroad, or doing so here at home, Congress is unlikely to sup- of State’s and USAID’s activities and staffing have been funded port an adequate level of staffing for USAID and State. by supplemental appropriations targeted toward Afghanistan, Such short-term tactical choices have strategic ramifications Pakistan and Iraq. (An October 2011 GAO study identified fully further down the road, however, as we have already seen in 40 percent of these new Foreign Service positions as based in Libya, Egypt and Yemen. those three countries.) As the United States draws down military forces in Afghanistan, and Congress further tightens the purse Security Spending Spikes strings, severe staffing deficiencies camouflaged by a decade of The QDDR report did not formulate concrete recommenda- emergency improvisations are likely to grow apparent. tions about one major aspect of contracting: How should State The picture on the contracting side is beginning to change and USAID safeguard their personnel and facilities in fragile at USAID. According to USAspending.gov, USAID spent $4.5 states? billion on contracts in 2011, a reduction of more than $2 billion Both in Iraq and Afghanistan, private security contractors from 2010 outlays, and a reversal of what had previously been a have been deployed at unprecedented levels and for every con- steady upward trajectory. The top five recipients that year were ceivable security function for much of the past decade. Such Chemonics, Partnership for Supply Chain Management, Devel- operations account for a significant portion of the exponential opment Alternatives, Tetra Tech and John Snow Incorporated. increases in spending on contracts at State and USAID over In comparison, State expended $9.2 billion on contracts in that period (523 and 945 percent, respectively). That trend is 2011, an increase of 13.6 percent over the previous year. The almost certain to continue in Afghanistan with the ongoing top five prime award contractors for the State Department that drawdown of uniformed personnel. In 2011, more U.S. civilian

26 FEBRUARY 2013 | THE FOREIGN SERVICE JOURNAL contractors lost their lives in Iraq. in Afghanistan than did It is easier to secure funds for A 2011 study by the soldiers. programs than to ensure the Project on Government The State Department Oversight found that in has traditionally relied on money is well spent. 33 of 35 occupations, the a combination of host- government actually paid government support and billions of dollars more to official American and local staff to guard its embassies and hire contractors for services than it would have cost for govern- consulates. But once it became clear that this approach was no ment employees to do the same work. The study also found that longer adequate to meet the challenge of sustaining long-term contractors were paid more than twice as much as government operations in dangerous environments like Iraq and Afghani- direct hires, on average, for performing the same functions. stan, State turned to multinational private security contractors The cost of benefits for any government employee closes to plug the gaps. this gap. But in the security realm, this offsetting effect is It is impossible to prove that outsourcing security is always smaller because many security contractors are retired military more expensive, but there is ample evidence that the practice personnel, whose training and benefits have already been does not guarantee cost-effectiveness. For example, an August funded by the U.S. taxpayer. 2008 report from the Congressional Budget Office concluded Even if we assume that contracting out State’s security that it actually cost the State Department more to hire Blackwa- operations has always been cost-effective, it has come at a high ter to provide security than it would have to rely on Army units strategic price. Any favorable cost calculation presupposes,

THE FOREIGN SERVICE JOURNAL | FEBRUARY 2013 27 after all, that the host country doesn’t mind being overrun by a multinational crew of hired guns. But increasingly, they do mind—and for legitimate reasons. The presence of private security firms presents difficult challenges for any post-conflict state trying to build capacity to manage its own affairs and security. Among other effects, it dis- torts the local labor market, furthering dependence on foreign assistance to provide jobs and secure its territory. In Afghanistan, for example, establishing a professional army and police force has proved exceedingly difficult because there was more money to be made as a contractor than as a representative of the Afghan state. In addition, it is all too easy for locally sourced private security companies to become de facto militias. These are two of the reasons Afghan President Hamid Karzai cited when he issued a decree in August 2010 ordering all pri- vate security contractors, both foreign and domestic, to cease operations by the close of the year. He ended up backpedaling, however, making exceptions for embassies and NGOs, and settling for a new licensing scheme, because ending the use of private security in Afghanistan would have effectively meant the end of the U.S. mission there. It would also have meant a dramatic loss of decent-paying jobs for the Afghan people. (In late 2011, the World Bank reported that foreign aid for Afghani- stan was roughly equivalent to the country’s nominal gross domestic product.) But the very fact that he made such a threat underscores the importance of the issue. In December 2012, Karzai went still further, blaming Wash- ington and its contractors for the disturbing levels of corrup- tion in Afghanistan. He told NBC News, “We have to wait for 2014 for the withdrawal of international forces, for the reduc- tion in the amount of contracts. Then you will see that Afghani- stan will definitely be a lot less corrupt government and country.”

Tragedy in Benghazi The Sept. 11 deaths of U.S. Ambassador to Libya Chris Ste- vens and three other Americans were also very much bound up with the private security contracting dilemma, though not in the ways that many Americans assumed. Initial media reports mistakenly identified the two Navy Seals who perished in Beng- hazi as security contractors for the State Department, which they were not. In early 2012 Libya’s new government had expressly banned the use of foreign or domestic armed security contractors on Libyan soil. This put State in a real bind, since its Bureau of

28 FEBRUARY 2013 | THE FOREIGN SERVICE JOURNAL Diplomatic Security was already severely stretched. Fewer than a thousand DS agents guard more than 270 American embas- sies and consulates around the globe. Even though Libya was never formally classified as a war zone like Afghanistan, Iraq and Pakistan, the Department of Defense acceded to two requests from State for assistance in securing its Libyan operations once contractors were banned. This aid was crucial because the situation in Benghazi, the former headquarters of the anti-Qaddafi forces, had worsened over the course of 2012. The Red Cross had pulled out of the city in June, after an attack on the organization. In August Eric Nordstrom, then the chief security officer at the American embassy in Tripoli, requested a third extension of that support. But Washington denied it, creating an immedi- ate security vacuum. In testimony before the House Oversight Committee on Oct. 10, Charlene Lamb, a deputy assistant secretary in the Bureau of Diplomatic Security, described State’s plan to phase out reliance on the U.S. military and hire local guards to protect the Benghazi compound, a strategy that had been successfully deployed in Yemen. This shift was apparently spurred, at least in part, by the fact that State had been reimbursing DOD at relatively expensive rates. Yet in hearings the Senate Foreign Relations Committee held on Dec. 20, Senator Bob Corker, R-Tenn., denied that the program was expensive. He asserted that State had to pay only for the team’s lodging, as the rest was covered by DOD. Deputy Secretary of State Thomas Nides did not contest this claim. Whatever the reason for denial of the August request to con- tinue the existing program, the tragedy in Benghazi makes clear that State has neither the resources nor the in-house capacity to operate safely in three war zones simultaneously, even if one is not officially labeled as such. Making matters worse, more host governments are becoming reluctant to accept the impro- visation of turning to security contractors. As for the QDDR directive to turn to the personnel of other agencies before contractors, even where the Pentagon is willing to help, State sees some potential diplomatic costs to relying too heavily on the military to secure its operations in danger- ous environments.

Lessons Learned? Secretary of State Hillary Rodham Clinton quickly ordered an independent investigation of the attacks in Benghazi, and the Accountability Review Board released the unclassified ver- sion of its findings in late December. The ARB found “grossly”

THE FOREIGN SERVICE JOURNAL | FEBRUARY 2013 29 inadequate security and leadership failures to have put Ameri- can citizens unnecessarily in harm’s way. Its report faulted the department for relying too heavily on local security forces in its improvised security arrangements, and found the oversight of those provisions to be confusing and undisciplined. Sec. Clinton accepted all of the board’s recommendations (see page 12 for the full list) and requested additional money from Congress to implement its findings, including hiring 150 new DS agents, a 15-percent increase in the force. Additional resources are certainly need-ed, but exactly how they should be deployed is the real question. Regrettably, the Dec. 20 Senate hearing on the topic did not tackle this issue. The word “contractor,” for example, doesn’t even appear in the transcript. Once the urgency of the Beng- hazi report recedes, it is uncertain whether Congress will follow through with the additional funding State needs to hire more agents. And in the absence of that commitment, hiring security contractors will continue to be the path of least political resis- tance, even though experience has shown this to be a highly unreliable option. Alternatively, Washington could choose to refrain from ambitious military intervention, a policy shift our current fis- cal crisis may facilitate in any case. But that would still leave us with the need to meet ongoing commitments, which have already led to reliance on the “fortress embassy” model. No matter how effective that approach may have been in keeping our facilities and personnel safe, our experience in Baghdad and other places raises real concerns about how effective diplomacy can be when conducted from behind a barricade. Formulating the appropriate approach to security at embas- sies and consulates around the globe thus turns, in part, on how one envisions the future of U.S. diplomacy. If carefully calibrated military interventions that avoid the introduction of ground forces are the wave of the future, then the State Depart- ment would be wise to build internal capacity to pursue its mission without unnecessary risk. Or, if the faltering economy makes the American public less willing to finance a large diplo- matic presence overseas, then fewer Foreign Service personnel would be put in harm’s way. However Washington proceeds, properly funding and staff- ing U.S. diplomacy and development programs after more than a decade of war is likely to remain a pressing concern. As that debate unfolds, it’s worth keeping in mind that one of the big- gest hidden costs of depending so heavily on contractors is that it can blind us to those things that only government employees can do well. n

30 FEBRUARY 2013 | THE FOREIGN SERVICE JOURNAL ADLAI STEVENSON: DREAMER OF THINGS THAT NEVER WERE The New START Treaty was an encouraging step, but we still need to implement the nuclear test ban first proposed half a century ago.

BY JAMES E. GOODBY

uring the late afternoon of Oct. 22, 1962, television—and not just out of respect for the president. diplomats at United Nations headquarters What he announced was shocking. The Soviet government in Manhattan were busy with the usual fall had deployed missiles and bombers in Cuba capable of carrying business of the General Assembly. As a For- nuclear warheads to targets in the United States and elsewhere in eign Service officer assigned temporarily to the Western Hemisphere. The president declared: “It shall be the the U.S. delegation to the United Nations, policy of this nation to regard any nuclear missile launched from I had been focusing on the stalled nuclear Cuba against any nation in the Western Hemisphere as an attack Dtest ban negotiations in Geneva. by the Soviet Union on the United States, requiring a full retalia- Like other members of U.N. Ambassador Adlai Stevenson’s del- tory response upon the Soviet Union.” egation, I had been asked to join him in his office that evening to After the speech, Stevenson spoke in sobering terms about the hear President John F. Kennedy’s speech to the nation. None of us dire situation and invited questions. I asked him whether the Sovi- knew what the president was going to say. And as we listened, the ets already had nuclear warheads in Cuba. The ambassador said room grew quiet except for the sound of Kennedy’s voice from the he did not know the answer to that question. In fact, no American

THE FOREIGN SERVICE JOURNAL | FEBRUARY 2013 31 Americans leaders from Adlai Stevenson to Barack Obama have embraced the conviction that humans can shape their destiny.

knew the answer. Moscow had already successfully concealed one assigned to the mainly military team that wrote the report. This is shipment of nuclear warheads to Cuba, and another shipment, what we said: also undetected, would arrive there the very next morning. “The United States must always be prepared for the worst Had JFK heeded the advice he received to respond by invading case; namely, that of a Soviet-initiated nation-killing attack: Vital Cuba, some of those weapons almost certainly would have been to such a situation would be a high assurance of being able to used, with terrible consequences. destroy the USSR, no matter what degree of surprise the Soviets might achieve. … Managing Nuclear War “In the event of a nation-killing attack, the implementation of Soon after that near-catastrophe, a Harvard professor named a sophisticated response capability, attempts at war management Thomas Schelling (later a Nobel Prize laureate) persuaded Walt in order to limit the total effects of war, or attempts to negotiate Rostow, chairman of the State Department’s Policy Planning the termination of the war, would have little chance of success. Council, and McGeorge Bundy, Kennedy’s national security Any implementation of these concepts under such circumstances adviser, to undertake a study of how, once begun, a nuclear war therefore must not be permitted to risk the degradation of our could be ended. It was the first project of its kind. capability to destroy the Soviet Union.” And thus, in 1963, the Net Evaluation Subcommittee of the There is a good deal of cognitive dissonance in those chilling National Security Council was directed by the highest authorities sentences, but such was the logic of mutual assured destruc- in the U.S. government to examine the concept of management tion. That’s precisely what a “full retaliatory response” implied. and termination of war with the Soviet Union. The escape clause for Kennedy would have been whether a few That study produced a top-secret, limited-distribution report nuclear explosions constituted “a nation-killing attack.” The use of that is now declassified. As a member of Rostow’s staff, I was nuclear weapons in Cuba by Soviet troops based there might not have been seen as such—perhaps. James E. Goodby, currently a research fellow at the Hoover Institution The NSC issued its assessment in 1963, long before each side at Stanford University, retired from the Foreign Service in 1989 with began building and stockpiling tens of thousands of thermonu- the rank of career minister. His diplomatic career included assign- clear weapons, and the doctrine of “protracted nuclear war” was ments as deputy assistant secretary in the Bureau of Political-Military enshrined in President Jimmy Carter’s war plans. The rationale for Affairs (1974-1977) and Bureau of European Affairs (1977-1980); the study was based, in large part, on the hope that nuclear war ambassador to Finland (1980-1981); vice chair of the U.S. delega- could be managed and that the perceived ability to do that would tion to the Strategic Arms Reduction Treaty talks (1981-1983); and reinforce nuclear deterrence. head of the U.S. delegation to the Conference on Confidence-Building Thankfully, that thesis was never tested. Yet although our com- Measures in Europe (1983-1985). mand and control systems today are light-years ahead of what In 1993 Ambassador Goodby was recalled to serve as chief negotia- they could do in the 1960s, the question stands. Should a two- tor for nuclear threat reduction agreements (1993-1994); special sided (or more) nuclear war begin, would reason prevail before it representative of the president for the security and dismantlement of was too late? nuclear weapons (1995-1996); and deputy to the special adviser to Two decades after the Cuban episode, President Ronald the president and Secretary of State for the Comprehensive Test Ban Reagan said that a nuclear war could not be won and must never Treaty (2000-2001). be fought. For that reason, he favored eliminating all nuclear Amb. Goodby has taught at Carnegie Mellon, Georgetown and weapons—and was roundly criticized by the experts for daring to Syracuse, and is the author of At the Borderline of Armageddon: How say this. But he was strongly supported by his Secretary of State, American Presidents Managed the Atomic Bomb (Rowman & Little- George Shultz. field, 2006) and Europe Undivided (U.S. Institute of Peace Press, 1998). Three decades after that, Reagan’s legacy continues in four

32 FEBRUARY 2013 | THE FOREIGN SERVICE JOURNAL When one considers how little effort has gone into eliminating nuclear weapons, it becomes painfully clear that we have a lot of catching up to do.

lines of thought: an emphasis on the ultimate futility of depen- spread of nuclear weapons is inevitable, then we are admitting dence on nuclear weapons for national security; a paradigm shift to ourselves that the use of nuclear weapons is inevitable. Now from arms control, as practiced since the early 1960s, to nuclear we, too, must ignore the voices who tell us that the world cannot disarmament; ballistic missile defense as a key to reductions in change.” strategic offensive forces; and de facto termination of the doctrine Like Pres. Obama, Adlai Stevenson and other American of “protracted nuclear war.” leaders all embraced the conviction that human destiny can be shaped by human beings. As American leadership is being tested “This Is Madness” by the threat of nuclear-armed terrorism, changes in thinking Nuclear deterrence, as practiced during much of the Cold are badly needed. War, came to be known by its acronym, “MAD”: mutual assured When one compares the immense outpouring of energy and destruction. Stevenson had seen the terrible irony of that moni- resources in defense of nuclear deterrence with how little has ker back in the 1950s. been done to help the world understand how to live without Stevenson first publicly challenged the logic of nuclear deter- nuclear bombs, it becomes painfully clear that we have a lot of rence as the Democratic Party’s standard bearer late in the 1956 catching up to do. U.S. presidential campaign: “This is madness—this policy of try- As former Secretaries of State George P. Shultz and Henry ing to preserve peace by a preponderance of terror.” And he had Kissinger, former Secretary of Defense William Perry and already proposed the suspension of testing of thermonuclear former Senator Sam Nunn jointly declared in a famous 2007 weapons, hopeful that such an example would lead to a lasting Wall Street Journal opinion piece, “Deterrence continues to be ban on such tests. a relevant consideration for many states with regard to threats The Eisenhower administration sharply criticized Steven- from other states. But reliance on nuclear weapons for this son’s proposal at the time, but two years later, in October 1958, purpose is becoming increasingly hazardous and decreasingly President Dwight Eisenhower declared a moratorium on all U.S. effective.” Indeed, nuclear deterrence can no longer be counted nuclear weapons tests while negotiations on a treaty to ban all on to work as we thought it did during the Cold War. Former nuclear tests were under way. Secretary of Defense Harold Brown summed this up well when While serving as the Kennedy administration’s ambassador he wrote: “What works on one does not necessarily work on to the United Nations, Stevenson continued to be an outspoken many.” critic of nuclear testing. A limited test ban treaty came into force Still, some Cold War veterans believe, implicitly or explicitly, in 1963 and, in 1996, President Bill Clinton signed a comprehen- that it would be unthinkable for the United States to rid itself sive test ban treaty. But when the Senate considered that agree- of all its deployed and non-deployed nuclear weapons, even ment in 1999, it rejected it. if all other nations did so. To them, only the threat to resort President Barack Obama’s administration has promised to to nuclear weapons in combat against other nations stands revive that treaty, and now has a chance to do so as his second between us and armed attacks of one sort or another on our term begins. homeland or our interests abroad. I suppose some people in other nuclear-armed nations believe the same thing about their Shaping Human Destiny own nation’s arsenals. In a speech in Prague on April 5, 2009, Pres. Obama said: In fact, though, the U.S.-Soviet model of nuclear deterrence “Some argue that the spread of these [nuclear] weapons cannot during the Cold War was probably unique. No one should think be checked—that we are destined to live in a world where more that deterrence in a world with multiple powers possessing nations and more people possess the ultimate tools of destruc- nuclear bombs and warheads will work the same way. And we tion. This fatalism is a deadly adversary. For if we believe that the shouldn’t want to find out.

THE FOREIGN SERVICE JOURNAL | FEBRUARY 2013 33 Just as in the 1960s, we should ask: Should a two-sided (or more) nuclear war begin, would reason prevail before it was too late?

Combating Nuclear Proliferation idea of eliminating these weapons seems unreal, a distraction Today there is widespread agreement that the MAD doctrine from our day-to-day problems. is obsolete, and such threats as terrorism, ethnic conflict, asym- The entry into force on Feb. 5, 2011, of the New START Treaty metric warfare and the illicit trade in nuclear materials cannot was a step toward safety. But much more needs to be done— be deterred by nuclear weapons. Yet Moscow and Washington starting with the very nuclear test ban which Adlai Stevenson are still stuck in the nuclear deterrence mindset. pioneered and fought for decades ago. Even if nuclear deterrence is assumed to retain some value President Obama called for a world free of nuclear in situations where peace is still conditional, the global num- weapons in his 2009 Prague speech, a goal Vice President bers don’t need to be in the tens of thousands. That creates Joe Biden reaffirmed in a major policy speech the following incentives to proliferation. Instead, we need to create disincen- year. That declaration was significant because Biden said that tives. This is what Adlai Stevenson quickly came to understand, a world without nuclear weapons would also be a compass by especially during his tenure at the United Nations. which the administration would steer current policy. Specifi- New complications, such as cyberwarfare, almost guarantee cally, he announced the administration’s strong support for that a reliance on nuclear deterrence will become increasingly increased funding for the nation’s nuclear weapons laborato- hazardous. Estonia has already been the victim of cyberwarfare, ries. This was the same message that Shultz, Kissinger, Perry and so has Georgia, before and during its 2008 war with Russia. and Nunn had delivered in their 2007 Wall Street Journal In addition, Iran and the United States have reportedly traded opinion piece. cyberattacks. The essential point in these statements is that America’s Just imagine the Cuban Missile Crisis with terrorists egging real nuclear deterrent resides in the skills of its scientists and on both sides with false messages. That thought experiment engineers, more than in the numbers and types of weapons that underscores how unwise it is to depend on a bluff—which is have been manufactured at any given time. That will remain what nuclear deterrence really is—in such situations. true even if all of the world’s nuclear weapons have been elimi- Nuclear proliferation and nuclear terrorism are clear and nated. present dangers to the United States, so the tightest possible control over uranium and plutonium everywhere in the world The Test Ban Treaty: A Crucial Link is absolutely essential. Two Nuclear Security Summits during Because of the successes of American scientists and engi- Pres. Obama’s first term helped achieve that goal, but only com- neers in maintaining a safe and reliable stockpile of nuclear pletely drying up the reservoirs of nuclear weapons will deny weapons, even in the absence of any American nuclear test terrorists access to ready-made warheads. explosions since 1992, the United States can confidently embark But long before all the world’s nuclear weapons are elimi- on a campaign to enlist all of the world’s possessors of nuclear nated, there are steps, like a ban on nuclear test explosions and weapons in a long-term effort to reduce and eliminate those a cessation of producing the fissile materials used in bombs, weapons. A joint enterprise will be required to accomplish this, that would stop any increase in the number of countries that one that embraces many nations, not just Russia. possess nuclear weapons. And if we don’t do those things soon, For this same reason, the United States can safely work for it is predictable that more nuclear weapons in more hands will the entry into force of a comprehensive, global ban on all explo- eventually lead to a nuclear explosion in one of the world’s great sive nuclear tests. This will not be easy, for some nations will cities. want to enjoy the freedom to test their newly designed nuclear Adlai Stevenson realized that we are skating on thin ice weapons, unencumbered by a treaty banning their tests. where nuclear weapons are concerned. But we have all become The most threatening of those nations are not friendly so used to them that we no longer think about the danger. The toward the United States; nor are they friends of the nuclear

34 FEBRUARY 2013 | THE FOREIGN SERVICE JOURNAL nonproliferation treaty. Currently, American diplomacy must work with one hand tied behind its back, because the U.S. Sen- ate has not yet given its advice and consent to the ratification of the test ban treaty that still lies before it. The test ban treaty is an absolutely essential element in a network of barriers against proliferation. It is not a panacea in itself, but it is critical to the success of the whole project. The treaty would prevent advanced nuclear weapon states from making significant improvements in their weapons stockpiles, and it would prevent non-nuclear weapon states from develop- ing more sophisticated weapons useful for war-fighting. Some opponents of a comprehensive test ban argue that whether the United States tests or develops new weapons has no effect on what the other nations do. But expectations about the future are what motivate all governments. And explosive testing is perhaps the most visible of all nuclear weapons activi- ties. A nuclear explosion amounts to an announcement that nuclear weapons are here to stay. That is what testing tells the world.

Making Dreams a Reality The United States has not conducted a nuclear test since 1992. The other four recognized nuclear weapons states—Brit- ain, France, Russia and China—have also recognized moratori- ums on testing. So why not just continue this informal arrange- ment? Well, the past several years have shown us how moratoriums work—and how they don’t. One lesson is that instabilities are inherent. Since there are no agreed standards, there are bound to be doubts about whether there is a level playing field among the countries. Nor is there agreement on how to remove doubts about other nations’ actions: no on-site inspections, no trans- parency at test sites. This is why we need a formal treaty that is verifiable and enforceable. Without U.S. leadership on a comprehensive nuclear test ban treaty, a world free of nuclear weapons will not be perceived as realistic, and efforts to strengthen the nonproliferation system will falter. The United States has much to gain by outlawing nuclear tests, and the Senate should approve the Test Ban Treaty as soon as possible. Such an achievement would constitute a most fitting legacy, not only for Adlai Stevenson, but for Dwight Eisenhower, John Kennedy and Ronald Reagan—and so many other leaders and diplomats who have worked to ensure that the world never faces another Cuban Missile Crisis. n

THE FOREIGN SERVICE JOURNAL | FEBRUARY 2013 35

AFSAFOCUS WOMEN NEWS IN SECURITYTHE AND OFFICIAL DEVELOPMENT RECORD OF THE AMERICAN FOREIGN SERVICE ASSOCIATIONAFSA NEWS

Federal and State Tax Provisions for the Foreign Service

AFSA’s annual Tax Guide is designed as an informational and reference tool. Although CALENDAR we try to be accurate, many 2/6/2013 of the new provisions of the 12:00 - 2:00 PM tax code and the implications AFSA Governing Board of Internal Revenue Service Meeting regulations have not been 2/6/2013 fully tested. Therefore, use Deadline for Art and caution and consult with Academic Merit Awards a tax adviser as soon as Applications possible if you have specific 2/10 - 2/13/2013 questions or an unusual or AFSA Road Scholar Program complex situation. Foreign Service employ- 2/11/2013 ees most frequently ask 2:00 - 3:30 PM Seminar: Getting the Most AFSA about home ownership, Out of Your TSP tax liability upon sale of a residence and state of domi- 2/11 - 2/13/2013 cile. We have devoted special 8th Annual Conflict Prevention, Peacekeeping & sections to these issues. Stability Conference James Yorke (YorkeJ@state. ues to provide a significant the area on qualified official gov), who compiles the tax benefit for Foreign Service extended duty as a member 2/18/2013 guide, would like to thank families who sell their homes of the uniformed services, Presidents Day: M. Bruce Hirshorn, Foreign at a profit, but would have the Foreign Service or the AFSA Offices Closed Service tax counsel, for his been unable to avail them- intelligence community. The 2/20/2013 help in its preparation. selves of the capital gains five-year period cannot be 12:00PM - 1:00PM exclusion (up to $250,000 extended by more than 10 Luncheon: 170th A-100 Class Federal Tax for an individual/$500,000 years. In other words, Foreign 2/28/2013 Provisions for a couple) from the sale of Service employees who are Deadline for AFSA Dissent The Military Families Tax a principal residence because overseas on assignment can and Performance Award Relief Act of 2003 contin- they did not meet the Inter- extend the five-year period Nominations nal Revenue Service’s “two- up to 15 years, depending year occupancy within the on the number of years they 3/6/2013 12:00 - 2:00 PM PLEASE NOTE five years preceding the date are posted away from their This guidance applies AFSA Governing Board of sale” requirement due to home.. Meeting to the 2012 tax year, for postings outside the U.S. In For 2012, the six tax rates returns due on April 15, relation to the sale of a prin- for individuals remain at 10, 3/6/2013 Deadline for AFSA Financial 2013. We expect there will cipal residence after May 6, 15, 25, 28, 33 and 35 percent. Aid Applications be a variety of changes to 1997, the 2003 law provides The 10-percent rate is for tax- the tax code for the 2013 that the calculation of the able income up to $17,401 for 3/10 - 3/14/2013 tax year, but at present five-year period for measur- married couples, $8,701 for AFSA Road Scholar Program we are not aware of any ing ownership is suspended singles. The 15-percent rate possible changes that are 3/17 - 3/20/2013 during any period that the eli- is for income up to $70.701 AFSA Road Scholar Program likely to apply to 2012. gible individual or his or her spouse is serving away from Continued on page 41

THE FOREIGN SERVICE JOURNAL | FEBRUARY 2013 37 AFSA NEWSSTATE VP VOICE | BY DANIEL HIRSCH AFSA NEWS

Views and opinions expressed in this column are solely those of the AFSA State VP.

The Importance of Community

AFSA continues to work with community, with many of the resent the American people, Community also includes the department to improve comforts, sights and sounds when we are far from home. the things that make a home policies for transportation of America, to another. Typi- Community provides consis- a home, the intangibles that and evacuation of pets, and cally, one can go all day in tency in a career where many remind Americans overseas their inclusion in post plan- such places without having things change frequently. It of their homes back in the ning for crises and emergen- to speak any language but helps our children grow up States, such as the Mustang cies. Some of our members English. One can watch the American, with ties to our you have taken with you from wonder why we focus time post to post. And whether and resources on such mat- Our community includes family members. one considers a companion ters. Or to put it another animal to be a family mem- way: why should AFSA or the In AFSA surveys, our members have ber, a possession or merely State Department care about repeatedly indicated that family concerns a fellow traveler, it plays an pets, your spouse, your kids enormous role in employee or your 1968 mint-condition, matter more to them than any other satisfaction and morale. candy-apple-red Mustang? consideration in choosing a post, or Transporting pets, or To me, the short answer dealing with them in emer- to all of these questions is choosing to remain in the Service. gencies, costs money. So the same: “Because it is in does transporting or storing the interest of the Foreign an employee’s household Service to do so.” latest American TV shows, own country, and plays a effects. So do vaccinations, A Foreign Service career eat lunch at Pizza Hut, shop healing role in making people school fees, bassinet ship- asks its members to spend in stores that sell American feel secure and helping them ments and travel of children nearly their entire working goods, send the kids on a yel- deal with stress. of separated parents. The lives travelling from post to low school bus to an Ameri- In the Foreign Service, we government pays for all of post overseas. can-curriculum school, and make our own community at these things not because There are other agencies get together with American every post we move to. Typi- it likes you, but because it that ask their members to PTA members to talk about cally, it is small and transient, recognizes that recruiting live overseas for a two-year how they’re doing. You can’t and is rarely everything we the best and the brightest stint here, or a four-year stint do all of that in Ulaanbaatar, would want a community to entails enabling people to there, followed by equal time or Ashgabat, or even Monte- be. But it is what we have. live all over the world with the in the U.S. And others require video. Many Foreign Service And it is all the community things that matter the most their members to change families spend most of their the U.S. government can to them. duty stations, both in the U.S. lives without ever experienc- offer to a prospective Foreign If pets are what matter and overseas, regularly. ing something most Ameri- Service candidate, or a tal- most to a significant number But the Foreign Service cans take for granted: an ented FS member it wishes of Foreign Service members asks more than any other American community. to retain. and prospective candidates, with regard to spending the Community is an Our community includes then AFSA, and the State bulk of a career, and of a life- extremely important com- family members. In AFSA Department, should care time, moving between posts ponent of morale, and, for surveys, our members have about pets. After all, they are that are truly foreign. many people, a dealmaker repeatedly indicated that part of our community. n Moving from a military or breaker when choosing a family concerns matter more base in Germany to one in career. It is also, for lack of a to them than any other con- Kuwait is a big deal, and a better way of putting it, one sideration in choosing a post, lifetime of doing so is ardu- of the things that keeps us or choosing to remain in the ous. But one is essentially “American,” and helps us rep- Service. moving from one fairly large

38 FEBRUARY 2013 | THE FOREIGN SERVICE JOURNAL FCS VP VOICE | BY KEITH CURTIS AFSA NEWS

Views and opinions expressed in this column are solely those of the AFSA FCS VP.

Much to Lose, Much to Gain

The relationship between the friends are econ officers.” I career. Today, by contrast, major internal reorganization Foreign Commercial Ser- would like to thank them for many of the initiatives of of the International Trade vice and the Department of their help, and the fun we Economic “Stagecraft”—I Administration. State’s Bureau of Economic have had together. The best use that epithet because so If any of the many organi- Affairs has been a bumpy of the best are those that many of the efforts seem zational possibilities are to be one during the 25 years that have low regard for their own to focus as much on show successful, they will have to I have served in the Foreign bureaucracy. (witness “Economic Day”) as preserve the FCS’s business- Service. But it seems to have In this respect, The substance—anything but col- oriented culture. Expanding gotten even bumpier in the Foreign Service Journal’s laborative. Some of my econ exports and creating jobs in last two years because of the October issue on the new colleagues tell me that much the U.S. have given com- double whammy of FCS shift- generation of officers was of this angst started with the mercial work unprecedented ing resources from lower-pri- FCS repositioning program, priority. Potentially, there are ority to higher-priority mar- Now that we have where we closed offices that both efficiencies and greater kets and thereby requiring the elections shifted more work on to economies of scale to be more coverage from State, behind us, and State. gained for the critical com- at the same time that State the very serious Some of you might be mercial work of expanding has put renewed emphasis business of saying, why worry? In the and protecting our nation’s on economic issues in its end, each chief of mission economic well-being. Quadrennial Diplomacy and setting priorities will sort out these cables and Now that we have the Development Review. and containing initiatives as they see fit. To elections behind us, and the Over the course of my government costs understand why this matters, very serious business of set- career I have tended to ahead of us, we I invite you to read the Janu- ting priorities and containing ignore as much as possible need to focus on ary Speaking Out column government costs ahead of bureaucratic turf battles, how to get this by Commerce’s Dan Harris, us, we need to focus on how which are uninteresting in regional director for East to get this right. Let us look the short run and unimport- right. Asia and the Pacific, on the carefully at all the options, ant in the long one. I prefer possibilities of moving FCS for there is much to lose, as to get my job satisfaction very insightful. The new offi- into State. well as much to gain in this from gettng things done and cers—more than 60 percent At the same time all this area vital to our nation’s well- having real hands-on, results- of whom have joined since is going on, we are facing a being. n oriented experiences with 9/11—see the bureaucracy as U.S. businesspeople, rather one of the biggest problems. than writing a memo or cable What has changed is a to Washington about who did serious and alarming lack what. My experience in the of coordination in Wash- Nominate a Colleague for an AFSA field is that there has always ington. And unfortunately, Dissent Award by Feb. 28 been more than enough work this seems to be more by Time is running out to nominate a colleague for to go around, so it never design than by accident. one of AFSA’s Constructive Dissent Awards. Let’s made any sense to fight over In the past, a serious cable recognize those who have had the courage to step who does what. on worldwide Commercial forward with a valid argument worthy of changing I have a high regard for Service issues would have

NEWS BRIEF course or policy. The deadline for the 2013 AFSA the abilities of my econ never gone out without the Dissent Awards is Feb. 28 at 5 p.m. For more infor- colleagues and have almost clearance of our agency. I mation and the nomination form, please go to www. always enjoyed working with can recall several joint cables afsa.org/dissent. Nominations must be submitted them in a friendly and col- being sent by the Secretar- to Perri Green at [email protected]. legial way. In fact, to borrow ies of State and Commerce a phrase, “Some of my best on these issues during my

THE FOREIGN SERVICE JOURNAL | FEBRUARY 2013 39 AFSA NEWS RETIREE VP VOICE | BY MEG GILROY AFSA NEWS

Views and opinions expressed in this column are solely those of the AFSA Retiree VP.

To Blog or Not to Blog?

I don’t tweet. I don’t blog. I reading the next three para- initial investment in a com- content?” No problem. Most don’t have a personal Web graphs). puter (or laptop or netbook), social media sites make it page. My Facebook activity What exactly is social a tablet (like iPad) or a smart incredibly easy for non-tech is limited to reading posts by media? Basically, it is using phone, and however much people to link from the user’s family and friends. What’s technology to exchange time you want to spend page to another page that wrong with that? ideas with other people who creating content to post and might be information-rich. Nothing, since I want to In a few easy steps, you keep a low online profile. Kind of like a virtual town square or coffee can make your page a gate- Everything, since as a shop (without the aroma or the calories), way to www.afsa.org, which member of AFSA’s Governing has excellent information on Board, I want to do as much where you can chat and exchange what the Foreign Service is as I can to raise the profile information with others who may be six and why it’s important. of AFSA and increase public You can also link to AFSA’s awareness of the role of the times zones away. other online presences on Foreign Service. Facebook (www.facebook. One of the best, easiest com/afsapage), Twitter and most cost effective ways are using the same technol- reading other people’s posts. (www.twitter.com/afsat- to promote AFSA, protect ogy. Kind of like a virtual No fee is required to sign weets) and YouTube (www. the hard won benefits that town square or coffee shop up for social media sites such youtube.com/afsatube). we retirees enjoy, and sup- (without the aroma or the as Facebook or Twitter (not Whether you choose to port our colleagues who are calories), where you can chat an endorsement of either promote AFSA virtually or still on active duty, is to use and exchange information site, just using them as an actually, thank you for your social media to reach out with others who may be six example). support of AFSA and the beyond our circle of friends times zones away. What if you don’t want to Foreign Service. n and family (who probably The main costs are the spend your time “creating already know and support the Foreign Service). Some AFSA members AFSA Welcomes New Interns include a shout-out for the Foreign Service in the annual Our spring semester interns have arrived, and are already hard at work on holiday newsletter that falls behalf of our members. We want to take this opportunity to formally welcome out of their card. them to AFSA. Others write letters to Jennifer Lowry is the Communications, Marketing and Outreach Intern. She the editor or the occasional is a senior communications major at the University of California, Santa Bar-

column for local print media, NEWS BRIEF bara, and has just recently returned from a semester abroad in Italy. The new or serve as an expert com- Foreign Service Journal Editorial Intern is Jeff Richards, a senior international mentator for a local TV or affairs major at The George Washington University’s Elliott School. Our new radio station. Advertising Intern is Andreas Dorner, who hails from Germany and is a student Some AFSA members at the HAN University of Applied Sciences in Arnhem, Netherlands. Catherine maintain an active online Fernandez, our new Scholarships Intern. She comes from Miami and attends presence through blogs, Web Florida International University, majoring in religious studies. Finally, our Execu- sites and their Facebook tive Office intern is Lucas Rogers, a freshman international affairs major at The page (for those members George Washington University’s Elliott School. who are already e-active, We thank our departing group of interns—Jonathan Yuan, Emily Hawley and please skip to the last para- Edward Hardrianto Kurniawan—and wish them the best in their future endeav- graph; for those members ors. who are not, please consider

40 FEBRUARY 2013 | THE FOREIGN SERVICE JOURNAL AFSA NEWS

Foreign Earned any 12-month period (the ning in 2006, so as to result 2012 Income Exclusion period may be different from in higher tax on the non- the tax year); or 2) the Bona excluded portion. (See the Many Foreign Service Fide Residence Test, which box below for a full explana- spouses and dependents requires that the taxpayer tion.) TAX work in the private sector has been a bona fide resident overseas and, thus, are eli- of a foreign country for an Extension for gible for the Foreign Earned uninterrupted period that Taxpayers Abroad GUIDE Income Exclusion. includes an entire tax year. Taxpayers whose tax home American citizens and Most Foreign Service is outside the U.S. on April 15 Continued from page 37 residents living and working spouses and dependents are entitled to an automatic overseas are eligible for the qualify under the bona fide extension until June 15 to for married couples, $35,351 income exclusion, unless residence test, but they must file their returns. When filing for singles. The 25-percent they are employees of the wait until they have been the return, these taxpay- rate is for income up to United States government. overseas for a full calendar ers should write “Taxpayer $142,701 for married couples, The first $95,100 earned year before claiming it. Keep Abroad” at the top of the first $85,651 for singles. The overseas as an employee in mind that self-employed page and attach a statement 28-percent rate is for income or as self-employed may be taxpayers must still pay self- of explanation. There are no up to $217,451 for married exempt from income taxes employment (Social Security late filing or late payment couples and up to $178,651 To receive the exemption, and Medicare) tax on their penalties for returns filed and for singles. The 33-percent the taxpayer must meet one foreign-earned income. Only taxes paid by June 15, but the rate is for income up to of two tests: 1) the Physical the income tax is excluded. IRS does charge interest on $388,351 for married couples Presence Test, which requires Note: The method for any amount owed from April and singles. Annual income that the taxpayer be pres- calculating the tax on non- 15 until the date it receives above $388,351 is taxed ent in a foreign country for excluded income in tax payment. at 35 percent. Long-term at least 330 full (midnight returns that include both capital gains are taxed at a to midnight) days during excluded and non-excluded Standard Deduction maximum rate of 15 percent income was changed, begin- The standard deduction is and are reported on Sched- ule D. This rate is effective for all sales in 2012, except for IMPORTANT NOTE: FOREIGN EARNED INCOME those people who fall within The Foreign Earned Income Exclusion allows U.S. citizens who are not United States the 10- or 15-percent tax government employees and are living outside the U.S. to exclude up to $95,100 of their bracket: their rate is either 2012 foreign-source income if they meet certain requirements. Beginning in 2006, the 0 or 5 percent. Long-term IRS changed how the excluded amount must be calculated. This affects the tax liability capital gain is defined as gain for couples with one member employed on the local economy overseas. Previously, you from the sale of property subtracted your excluded income from your total income and paid tax on the remainder. The held for 12 months or longer. change now requires that you take your total income and figure what your tax would be, then deduct the tax that you would have paid on the excludable income. Personal Exemption For each taxpayer, spouse For example: a Foreign Service employee earns $80,000 and their teacher spouse earns and dependent the personal $30,000. exemption is $3,800. There is no personal exemption Before 2006: Tax on $110,000 minus $30,000 = tax on $80,000 = tax bill of $13,121. phase-out for 2012. Since 2006: Tax on $110,000 = $20,615; tax on $30,000 = $3,749; total tax = $20,615 minus $3,749 = tax bill of $16,866.

THE FOREIGN SERVICE JOURNAL | FEBRUARY 2013 41 AFSA NEWS

tion, storage and travel costs dispose of any profit from on loans that do not fall into 2012 of moving your possessions the sale of personal property the above categories, such and yourself and your family abroad in this manner. as money borrowed to buy to the new location; it does For 2012 tax returns, tax exempt securities, is not not include meals. any interest paid on auto or deductible. TAX Medical expenses (includ- personal loans, credit cards, ing health and long-term department stores and Home Leave care insurance, but not other personal interest will Expenses GUIDE health insurance premiums not be allowed as itemized Employee business expenses, deducted from government deductions. If such debts are such as home leave and given to non-itemizers. For salaries) are subject to a consolidated, however, and representation, may be listed couples, the deduction is threshold of 7.5 percent of paid with a home equity loan, as miscellaneous itemized now $11,900, and for singles, Adjusted Gross Income. This interest on the home equity deductions and claimed on $5,950. Married couples fil- means that to be deduct- loan is allowable. Interest Form 2106. In addition to the ing separately get a standard ible, the medical cost would on educational loans will be 2-percent floor, only 50 per- deduction of $5,950 each, have to exceed $2,250 for a allowed as an adjustment cent for meals and entertain- and head-of-household filers taxpayer with a $30,000 AGI. to gross income. Mortgage ment may be claimed (100 receive an $8,700 deduc- There is no reduction of item- interest is still, for the most percent for unreimbursed tion. An additional amount ized deductions for higher part, fully deductible. Interest travel and lodging). Only the is allowed for taxpayers over income taxpayers for 2012. on loans intended to finance employee’s (not family mem- age 65 and for those who are State and local income investments is deductible up bers’) home leave expenses blind. taxes and real estate and per- to the amount of net income are deductible. AFSA recom- Most unreimbursed sonal property taxes remain from investments. Interest mends maintaining a travel employee business expenses fully deductible for itemizers, on loans intended to finance log and retaining a copy of must be reported as miscel- as are charitable contribu- a business is 100-percent home leave orders, which will laneous itemized deductions, tions to U.S.-based charities deductible. Passive-invest- help if the IRS ever questions which are subject to a thresh- for most taxpayers. Dona- ment interest on investments claimed expenses. old of 2 percent of Adjusted tions to the AFSA Scholar- in which the taxpayer is an It is important to save Gross Income. These include ship Fund are fully deductible inactive participant (i.e., a receipts: without receipts for professional dues and sub- as charitable contributions, limited partnership) can food, a taxpayer may deduct scriptions to publications; as are donations to AFSA via be deducted only from the only the federal meals- employment and educational the Combined Federal Cam- income produced by other and-incidentals (M&IE) per expenses; home office, legal, paign. Individuals may also passive activities. Interest diem rate at the home leave accounting, custodial and address, no matter how large tax preparation fees; home the grocery or restaurant leave, representational and CHILD CARE TAX CREDIT WHEN bill. Lodging is deductible, as other employee business OVERSEAS long as it is not with friends expenses; and contributions Bear in mind that in order to claim the Child Care Tax or relatives, or in one’s own to AFSA’s Legislative Action Credit while serving overseas, you must submit IRS Form home. Fund. Unreimbursed moving 2441, for which the instructions say: “For U.S. citizens The IRS will disallow use expenses are an adjustment and resident aliens living abroad, your care provider may of per diem rates and any to income, which means that not have, and may not be required to get, a U.S. taxpayer expenses claimed for family you may deduct them even if identification number (for example, an SSN or EIN). If so, members. If a hotel bill indi- you are taking the standard enter “LAFCP” (Living Abroad Foreign Care Provider) in cates double rates, the single deduction. However, the the space for the care provider’s taxpayer identification room rate should be claimed; deduction includes only the number.” and, if possible, the hotel’s unreimbursed transporta- rate sheet should be saved

42 FEBRUARY 2013 | THE FOREIGN SERVICE JOURNAL AFSA NEWS

for IRS scrutiny. loans secured by a first and/ Rental of Home $150,000 and the taxpayer Car rental, mileage and or second home. This also Taxpayers who rented out is actively managing the other unreimbursed travel includes loans taken out for their homes in 2012 can property. expenses, including park- major home improvements. continue to deduct mortgage Note that a taxpayer who ing fees and tolls, may be On home equity loans, inter- interest as a rental expense. retains a property manager deducted. The rate for est is deductible on up to Also deductible are property does not lose this benefit, business miles driven is $100,000, no matter how management fees, condo as this is still considered 55.5 cents for 2012. Those much the home cost, unless fees, depreciation costs, active management of the who use this optional mile- the loan is used for home taxes and all other rental property. All passive losses age method need not keep improvements, in which case expenses. Losses up to that cannot be deducted detailed records of actual the $1 million limit applies. $25,000 may be offset currently are carried forward vehicle expenses. They must, The $100,000 ceiling applies against other income, and deducted in the year the however, keep a detailed to the total of all home equity as long as the Modified property is sold. odometer log to justify the loans you may have. Adjusted Gross Income does business use of the vehicle The same generally not exceed $100,000 to and track the percentage of applies to refinancing a mort- business use. This optional gage. Points paid to obtain mileage method applies to a refinanced loan cannot leased vehicles, as well. be fully deducted the same year, but must be deducted Official Residence over the life of the loan. It is Irving and Company Expenses advisable to save the settle- Since Oct. 1, 1990, employ- ment sheet (HUD-1 Form) for Certified Public Accountant Specializing in ees who receive official documentation in the event Foreign Service Family Tax Preparation residence expenses have your tax return is selected by Based in Rockville, Md. not been allowed to reduce the IRS for audit. (15 minutes from Washington, D.C.) their reportable income by Qualified residences are 3.5 percent. The IRS ruling defined as the taxpayer’s Scott Irving, CPA, offers affordable rates with regarding ORE states that principal residence and one more than 15 years of tax experience. “usual expenses,” defined other residence. The second as 3.5 percent of salary, are home can be a house, condo, • Complete tax & accounting service not deductible. Therefore co-op, mobile home or boat, • Tax planning & strategy the only expenses that are as long as the structure • Monthly bookeeping service & review reports deductible are those above includes basic living accom- • Litigation support work the 3.5 percent paid out of modations, including sleep- pocket. Employees should ing, bathroom and cooking ALL CLIENTS RECEIVE: save receipts for any out-of- facilities. If the second home • CPA-prepared and reviewed returns pocket expenses associated is a vacation property that • Consideration of all deductions and tax credits • Client interviews at your convenience with their representational you rent out for fewer than • Available for questions and consults year round duties. These expenses can 15 days during the year, the be deducted as miscella- income need not be reported. Call today for the best rates and service. neous business expenses. Rental expenses cannot be claimed either, but all 15209 Frederick Road., Suite 201 Home Ownership property taxes and mortgage Rockville, MD 20850 Individuals may deduct interest may be deducted. Tel: (202) 257-2318, e-mail: [email protected], interest on up to $1 mil- Web site: www.irvingcom.com lion of acquisition debt for

THE FOREIGN SERVICE JOURNAL | FEBRUARY 2013 43 AFSA NEWS

been away from the area on a called Starker Exchange). In for sale may be added to the 2012 Foreign Service assignment, essence, one property being basis. To qualify as legitimate up to a maximum of 15 years rented out may be exchanged fixing-up costs, the follow- (including the five years). for another, as long as ing conditions must be met: There are some exceptions that one is also rented. In 1) the expenses must be TAX to the two year occupancy exchanging the properties, for work performed during requirement, including a sale capital gains tax may be the 90-day period end- due to a “change in place of deferred. Technically, a simul- ing on the day on which GUIDE employment” (this would taneous trade of investments the contract to sell the old include foreign transfers). occurs. Actually, owners first residence was signed; 2) the This exclusion is not limited sign a contract with an inter- expenses must be paid on Sale of a Principal to a once-in-a-lifetime sale, mediary to sell their property, or before the 30th day after Residence but may be taken once every hold the cash proceeds in sale of the house; and 3) the Current tax laws allow an two years. escrow, identify in writing expenses must not be capital exclusion of up to $500,000 When a principal resi- within 45 days the property expenditures for permanent for couples filing jointly and dence is sold, capital gains they intend to acquire, and improvements or replace- up to $250,000 for single realized above the exclusion settle on the new property ments (these can be added taxpayers on the long-term amounts are subject to taxa- within 180 days, using the to the basis of the property, gain from the sale of their tion. This exclusion replaces money held in escrow as part the original purchase price, principal residence. One the earlier tax-law provision of the payment. thereby reducing the amount need not purchase another that allowed both the deferral It is important to empha- of profit). A new roof and residence to claim this of gain and a one-time exclu- size that the exchange is kitchen counters are not exclusion. All depreciation sion of a principal residence from one investment prop- “fix-up” items, but painting taken after May 7, 1997, will, sale. erty to another investment the house, cleaning up the however, be recaptured Temporary rental of the property—the key factor garden and making minor (added to income) at the home does not disqualify in the IRS evaluation of an repairs qualify. time of sale, and taxed at 25 one from claiming the exclu- exchange transaction is the percent. sion. The 2003 law requires intent of the investor at the State Tax Provisions Since January 2009 gain only that you have occupied time the exchange was con- Most Foreign Service from the sale of a home can the house as your principal summated. The IRS rules for employees have questions no longer be excluded from residence for the required these exchanges are complex about their liability to pay gross income for periods period (two years out of five, and specific, with a number state income taxes during when it was rented out before extended). However, the of pitfalls that can nullify the periods when they are posted you occupied it as a principal 2009 legislation requires that transaction. An exchange overseas or assigned to residence for the first time. the “two years out of five should never be attempted Washington. The only qualification for the (extended)” cannot start without assistance from a Members of the Foreign capital-gains exclusion is that until the date the home tax lawyer specializing in this Service are not treated as the house sold must have is occupied as a principal field. domiciled in their countries been owned and occupied residence for the first time. of assignment abroad. Every by the taxpayer as his or Under Internal Revenue Calculating Your active-duty Foreign Service her principal residence for Code Section 1031, taxpay- Adjusted Basis employee serving abroad at least two of the last five ers whose U.S. home may Many Foreign Service must maintain a state of years prior to the date of the no longer qualify for the employees ask what items domicile in the United States, sale. For the Foreign Service, principal residence exclusion can be added to the cost and the tax liability that the five-year period may be may be eligible to replace basis of their homes when the employee faces varies extended by any period dur- the property through a they are ready to sell. Money greatly from state to state. In ing which the taxpayer has “tax-free exchange” (the so- spent on fixing up the home addition, there are numerous

44 FEBRUARY 2013 | THE FOREIGN SERVICE JOURNAL AFSA NEWS

regulations concerning the from which the person joined area are required to pay personal income but do tax taxability of Foreign Service the Service, where his or income tax to the District profits from the sale of bonds pensions and annuities that her home leave address is, of Columbia, Maryland or and property. vary by state. or where he or she intends Virginia, in addition to pay- There are 10 states that, The “State Overviews” to return upon separation. ing tax to the state of their under certain conditions, (see p. 46) briefly review For purposes of this article, domicile. Most states allow do not tax income earned the laws regarding income the term “domicile” refers to a credit, however, so that while the taxpayer is outside tax and tax on annuities legal residence; some states the taxpayer pays the higher the state: California, Con- and pensions as they affect also define it as permanent tax rate of the two states, necticut, Idaho, Minnesota, Foreign Service personnel by residence. Residence refers with each state receiving a Missouri, New Jersey, New state. Please note that while to physical presence in the share. There are currently York, Oregon, Pennsylvania AFSA makes every attempt state. Foreign Service per- seven states with no state (but see entry for Penn, to provide the most up-to- sonnel must continue to pay income tax: Alaska, Florida, below) and West Virginia. The date information, readers taxes to the state of domicile Nevada, South Dakota, Texas, requirements for all except with specific questions (or to the District of Colum- Washington and Wyoming. In California, Idaho, Minnesota should consult a tax expert bia) while residing outside addition, New Hampshire and and Oregon are that the indi- in the state in question at of the state, including during Tennessee have no tax on vidual not have a permanent the addresses given. We also assignments abroad, unless encourage readers to visit the state of residence does the state’s tax Web site (also not require it. listed). Members are encour- There are many criteria aged to review the Overseas used in determining which Briefing Center’s guide to state is a citizen’s domicile. Residence and Domicile, One of the strongest determi- available on AFSA’s Web site nants is prolonged physical at www.afsa.org/Member- presence, a standard that Services/MemberGuidance/ Foreign Service personnel ResidenceandDomicile.aspx. frequently cannot meet due A non-resident, according to overseas service. In such to most states’ definitions, cases, the states will make a is an individual who earns determination of the indi- income sourced within the vidual’s income-tax status specific state but does not based on other factors, live there or is living there for including where the indi- only part of the year (usu- vidual has family ties, where ally fewer than six months). he or she has been filing resi- Individuals are generally dent tax returns, where he or considered residents, and she is registered to vote or are thus fully liable for taxes, has a driver’s license, where if they are domiciled in the he or she owns property, or state or if they are living in where the person has bank the state (usually at least six accounts or other financial months of the year) but are holdings. not domiciled there. In the case of Foreign Foreign Service employ- Service employees, the ees residing in the metro- domicile might be the state politan Washington, D.C.,

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or link where available. Some franchise or fiduciary tax. Write: Department of 2012 states do not offer e-mail Some municipalities levy Finance and Administration, customer service. The Fed- sales, property and use taxes. Income Tax Section, P.O. Box eration of Tax Administrators’ Write: State Office Building, 3628, Little Rock AR 72203- Web site, www.taxadmin.org, 333 West Willoughby Ave., 3628. TAX also provides much useful 11th Floor, P.O. Box 110420, Phone: (501) 682-1100. information on individual Juneau AK 99811-0420. E-mail: Individual.Income@ state income taxes. Phone: (907) 465-2320. dfa.arkansas.gov GUIDE Web site: www.tax.state.ak.us Web site: www.arkansas.gov/ dfa/ “place of abode” in the state, ARIZONA have a permanent “place of STATE Individuals domiciled in CALIFORNIA abode” outside the state, and OVERVIEWS Arizona are considered Foreign Service employees not be physically present for residents and are taxed on domiciled in California must more than 30 days during the ALABAMA any income that is included establish non-residency to tax year. California allows up Individuals domiciled in in the Federal Adjusted avoid liability for California to 45 days in the state during Alabama are considered Gross Income, regardless of taxes (see FTB Publication a tax year. residents and are subject their physical presence in 1031). However, a “safe har- All these 10 states require to tax on their entire the state. Arizona’s tax rate bor” provision allows anyone the filing of non-resident income regardless of their ranges in five brackets from a who is domiciled in state returns for all income earned physical presence in the minimum of 2.59 percent to but is out of the state on an from in-state sources. state. Alabama’s individual a maximum of 4.54 per- employment-related contract Foreign Service employ- income tax rates range cent of taxable income over for at least 546 consecu- ees should also keep in mind from 2 percent on taxable $300,000 for married filing tive days to be considered a that states could challenge income over $500 for jointly or $150,000 for single non-resident. This applies to the status of government single taxpayers ($1,000 filers. Write: Arizona Depart- most FS employees and their housing in the future. for married filing jointly), ment of Revenue, Taxpayer spouses, but members domi- The following list gives a to 5 percent over $3,000 Information & Assistance, ciled in California are advised state-by-state state overview for single taxpayers P.O. Box 29086, Phoenix AZ to study FTB Publication of the latest information ($6,000 for married filing 85038-9086. 1031 for exceptions and available on tax liability, with jointly.) Write: Alabama Phone: (602) 255-3381. exemptions. The California addresses provided to get Department of Revenue, 50 E-mail: For general questions: tax rate ranges in six brack- further information or tax N. Ripley,Montgomery AL taxpayerassistance@azdor. ets from 1 percent of taxable forms. Tax rates are provided 36132. gov income to a maximum of where possible. For further Phone: (334) 242-1512. Web site: www.azdor.gov $4,309.66 plus 9.3 percent information, please contact E-mail: Link through the of the excess over $97,844 AFSA’s Labor Management Web site, “About Us” then ARKANSAS for married filing jointly or Office or the individual state “Contacts,” then “Income Individuals domiciled in over $48,942 for singles. tax authorities. As always, Tax” Arkansas are considered res- Non-resident domiciliaries members are advised to Web site: www.ador.state. idents and are taxed on their are advised to file on Form double-check with their al.us entire income regardless of 540NR. state’s tax authorities. their physical presence in the Write: Personal Income To assist you in connecting ALASKA state. The Arkansas tax rate Taxes, Franchise Tax Board, with your state tax office, we Alaska does not tax individual ranges in six brackets from P.O. Box 1468, Sacramento provide the Web site address income or intangible or a minimum of 1 percent to a CA 95812-1468. for each in the state-by-state personal property. It has maximum of 7 percent of net Phone: toll-free 1 (800) 852- guide, and an e-mail address no state sales and use, taxable income over $33,199. 5711 (inside the U.S.); (916)

46 FEBRUARY 2013 | THE FOREIGN SERVICE JOURNAL AFSA NEWS

845-6500 (outside the U.S.). Write: Department of may qualify for non-resident present in a foreign country E-mail: Link through the Web Revenue, Taxpayer Service tax treatment under either for at least 450 days; and 2) site’s “Contact Us” tab. Division, State Capitol Annex, of two exceptions as follows: during the 548-day period, Web site: www.ftb.ca.gov 1375 Sherman St., Denver CO Group A—the domiciliary 1) is not present in Connecti- 80261-0005. did not maintain a perma- cut for more than 90 days; COLORADO Phone: (303) 238-7378. nent place of abode inside and 3) does not maintain a Individuals domiciled in E-mail: Link through “Contact Connecticut for the entire tax permanent place of abode Colorado are considered Us” tab on “Taxes” page, then year; and 2) maintains a per- in the state at which the residents and are subject to click on “E-Mail and Tele- manent place of abode out- domiciliary’s spouse or minor tax on their entire income phone” for subject matter side the state for the entire children are present for more regardless of their physical options. tax year; and 3) spends not than 90 days. Connecticut’s presence in the state. Colo- Web site: www.colorado.gov/ more than 30 days in the tax rate for married filing rado’s tax rate is a flat 4.63 revenue aggregate in the state during jointly rises from 3 percent percent of federal taxable the tax year. Group B—the on the first $20,000, in 6 income plus or minus allow- CONNECTICUT domiciliary 1) In any period steps to 6.7 percent of the able modifications. Connecticut domiciliaries of 548 consecutive days, is excess over $500,000. For

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THE FOREIGN SERVICE JOURNAL | FEBRUARY 2013 47 AFSA NEWS

DISTRICT OF their stocks, bonds, mutual Hawaii’s tax rate rises in 12 2012 COLUMBIA funds, money market funds, steps from 1.4 percent on Individuals domiciled in shares of business trusts income below $2,400 for the District of Columbia and unsecured notes. Write: single filers ($4,800 for joint are considered residents Taxpayer Services, Florida filers) to a maximum of 11 TAX Department of Revenue, and are subject to tax percent for income above on their entire income 5050 W. Tennessee St., Bldg. $200,000 for single filers regardless of their physical L, Tallahassee FL 32399- ($400,000 for joint filers.) GUIDE 0100. presence there. Individuals Write: Oahu District Office, domiciled elsewhere are also Phone: toll-free 1 (800) 352- Taxpayer Services Branch, singles it is 3% on the first considered residents for tax 3671, or (850) 488-6800. P.O. Box 259, Honolulu HI $10,000, rising in 6 steps to purposes for the portion of E-mail: Link through Web site. 96809-0259. 6.7 percent of the excess over any calendar year in which Go to “Taxes,” then “Tax Infor- Phone: toll-free 1 (800) 222- $250,000. they are physically present mation,” then “Questions?” 3229, or (808) 587-4242. Write: Department of in the District for 183 days Web site: http://dor.myflor- E-mail: Taxpayer.Services@ Revenue Services, Taxpayer or more. The District’s tax ida.com/dor/ hawaii.gov Services Division, 25 Sigour- rate is 4 percent if income Web site: www.state.hi.us/ ney St., Suite 2, Hartford CT is less than $10,000; $400 GEORGIA tax 06106-5032. plus 6 percent of excess over Individuals domiciled in Geor- Phone: (860) 297-5962. $10,000 if between $10,000 gia are considered residents IDAHO E-mail: [email protected] and $40,000; $2,200 plus and are subject to tax on Individuals domiciled in Web site: www.ct.gov/drs 8.5 percent of excess over their entire income regard- Idaho for an entire tax year $40,000; and $29,945 + less of their physical pres- are considered residents and DELAWARE 8.95 percent of any excess ence in the state. Georgia has are subject to tax on their Individuals domiciled in above $350,000 Write: a graduated tax rate rising in entire income. However, you Delaware are considered Office of Tax and Revenue, six steps to a maximum of 6 are considered a non-resi- residents and are subject to Customer Service Center, percent of taxable income of dent if: 1) you are an Idaho tax on their entire income 1101 4th St. SW, Suite W270, $10,000 and above for joint resident who lived outside of regardless of their physical Washington DC 20024. married filers and $7,000 for Idaho for at least 445 days presence in the state. Dela- Phone: (202) 727-4TAX single filers. in a 15-month period; and 2) ware’s graduated tax rate (4829) Write: Georgia Department of after satisfying the 15-month rises in six steps from 2.2 Email: [email protected] Revenue, Taxpayer Services period, you spent fewer than percent of taxable income Web site: http://cfo. Division, 1800 Century Blvd. 60 days in Idaho during the under $5,000 to 6.75 percent washingtondc.gov/cfo/site/ NE, Atlanta GA 30345-3205. year; and 3) you did not of taxable income over default.asp Phone: (404) 417-2400. have a personal residence $60,000. E-mail for questions: tax- in Idaho for yourself or your Write: Division of Revenue, FLORIDA [email protected] family during any part of the Taxpayers Assistance Sec- Florida does not impose Web site: https://etax.dor. calendar year; and 4) you did tion, State Office Building, personal income, inheritance ga.gov/ not claim Idaho as your fed- 820 N. French St., Wilming- or gift taxes. Since 2007, eral tax home for deducting ton DE 19801. individuals, married couples, HAWAII away-from home expenses Phone (302) 577-8200. personal representatives of Individuals domiciled in on your federal return; and E-mail: personaltax@state. estates, and businesses are Hawaii are considered 5) you were not employed de.us no longer required to file an residents and are subject to on the staff of a U.S. sena- Web site: www.revenue.dela- annual intangible personal tax on their entire income tor; and 6) you did not hold ware.gov/ property tax return reporting regardless of their physi- an elective or appointive cal presence in the state. office of the U.S. government

48 FEBRUARY 2013 | THE FOREIGN SERVICE JOURNAL AFSA NEWS

other than the armed forces E-mail: Link through “Contact KANSAS 6.45 percent of excess over or a career appointment Us,” then “Taxpayer Answer Individuals domiciled in $30,000 for single filers. in the U.S. Foreign Service Center.” Kansas are considered Write: Kansas Taxpayer (see Idaho Code Sections Web site: www.revenue.state. residents and are subject to Assistance Center, Room 63-3013 and 63-3030). In il.us tax on their entire income 150, 915 SW Harrison, Topeka 2012 Idaho’s tax rate rises in regardless of their physical KS 66612. eight steps from a minimum INDIANA presence in the state. The Phone: (785) 368-8222. of 1.6 percent to a maximum Individuals domiciled in Indi- Kansas tax rate rises from a E-mail: [email protected] 7.4 percent on the amount ana are considered residents minimum of 3.5 percent on Web site: www.ksrevenue.org of Idaho taxable income and are subject to tax on Kansas taxable income under over $10,350 for singles and their entire income regard- $15,000 to a maximum of KENTUCKY $20,700 for married filers. less of their physical pres- $2,925 plus 6.45 percent Individuals domiciled in A non-resident must file an ence in the state. Indiana’s of excess over $60,000 for Kentucky are considered Idaho income tax return if tax rate is a flat 3.4 percent joint filers, or $1,462.50 plus residents and are subject to his or her gross income from of Federal Adjusted Gross Idaho sources is $2,500 or Income. Some counties also more. charge a county income tax. LIFE IN THE FOREIGN SERVICE Write: Idaho State Tax Com- Write: Indiana Department of mission, P.O. Box 36, Boise ID Revenue, Individual Income 83722-0410. Tax, P.O. Box 7207, Indianapo- Phone: (208) 334-7660 or lis IN 46207-7207. toll-free 1 (800) 972-7660. Phone: (317) 232-2240. E-mail: [email protected] E-mail: Link through the Web Web site: www.tax.idaho.gov site’s “Contact Us” tab. Web site: www.in.gov/dor ILLINOIS Individuals domiciled in Illi- IOWA nois are considered residents Individuals domiciled in Iowa and are subject to tax on are considered residents and their entire income regard- are subject to tax on their less of their physical pres- entire income to the extent ence in the state. It appears that income is taxable on the that under some circum- person’s federal income tax stances, however, domicili- returns. Iowa’s 2012 tax rate aries absent from the state rises in nine steps from 0.36 throughout the year may not percent to a maximum 8.98 be subject to tax, so they percent of taxable income should check with the Illinois over $66,105, depending on Department of Revenue in income and filing status. advance. The Illinois tax rate Write: Taxpayer Services, is a flat 5 percent of Illinois Iowa Department of Revenue, taxable income for 2012. P.O. Box 10457, Des Moines IA Write: Illinois Department 50306-0457. of Revenue, P.O. Box 19001, Phone: (515) 281-3114. Springfield IL 62794-9001. E-mail: [email protected] Phone: toll-free 1 (800) 732- Web site: www.iowa.gov/tax 8866, or (217) 782-3336.

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Phone: (225) 219-0102. vices, Income Tax Assistance, ties (see Web site for details 2012 E-mail: Link through the Web PO Box 9107, Augusta, ME for all counties). site’s “Contact Us” tab. 04332-9107. Write: Comptroller of Mary- Web site: www.revenue.louisi- Phone: (207) 626-8475. land, Revenue Administration ana.gov E-mail: income.tax@maine. Center, Taxpayer Service TAX gov Section, Annapolis, MD 21411. MAINE Web site: www.maine.gov/ Phone: toll-free 1 (800)MD- Individuals domiciled in revenue TAXES (1-800-638-2937), or GUIDE Maine are considered resi- (410) 260-7980. dents and are subject to tax MARYLAND E-mail: [email protected]. tax on their entire income on their entire income. Since Individuals domiciled in md.us regardless of their physical Jan. 1, 2007, however, there Maryland are considered Web site: www.maryland- presence in the state. Ken- have been “safe harbor” pro- residents and are subject to taxes.com tucky’s tax rate ranges from visions. Under the General tax on their entire income 2 percent on the first $3,000 Safe Harbor provision, Maine regardless of their physical MASSACHUSETTS of taxable income to $4,166 domiciliaries are treated as presence in the state. Indi- Individuals domiciled In Mas- plus 6 percent on all taxable non-residents if they satisfy viduals domiciled elsewhere sachusetts are considered income over $75,000. all three of the following are also considered residents residents and are subject to Write: Kentucky Department conditions: 1) they did not for tax purposes for the tax on their entire income of Revenue, Frankfort, KY maintain a permanent place portion of any calendar year regardless of their physical 40602. of abode in Maine for the in which they are physically presence in the state. Sala- Phone: (502) 564-4581. entire taxable year; 2) they present in the state for an ries and most interest and E-mail: Link through the Web maintained a permanent aggregated total of 183 days dividend income are taxed site’s “Contact Us” tab. place of abode outside Maine or more. Maryland’s tax rate at a flat rate of 5.25 percent. Web site: www.revenue. for the entire taxable year; is $90 plus 4.75 percent of Some income (e.g., short- ky.gov and 3) they spent no more taxable income over $3,000 term capital gains) is taxed at than 30 days in the aggre- up to $100,000 if filing singly 12 percent. LOUISIANA gate in Maine during the tax- and $150,000 if filing jointly; Write: Massachusetts Individuals domiciled in able year. Under the Foreign it then rises in 4 steps to to Department of Revenue, Tax- Louisiana are considered Safe Harbor provision, Maine $12,760 plus 5.75 percent of payer Services Division, P.O. residents and are subject to domiciliaries are treated as the excess of taxable income Box 7010, Boston, MA 02204. tax on their entire income non-residents if they are over $250,000 for singles Phone: (617) 887-6367. regardless of their physi- present in a foreign country or $15,072 plus 5.75 of the E-mail: Link through the Web cal presence in the state. for 450 days in a 548-day excess over $300,000 for site’s “Contact Us” tab. Louisiana’s tax rate for rises period and do not spend married filers. In addition, Web site: www.dor.state. from 2 percent for the first more than 90 days in Maine Baltimore City and the 23 ma.us $12,500 for single filers or during that period. Maine’s Maryland counties impose a $25,000 for joint filers, in tax rate in 2012 rises in four local income tax, which is a MICHIGAN three steps to 6 percent for bands from a minimum of percentage of the Maryland Individuals domiciled in over $50,000 for single filers 2 percent to a maximum of taxable income, using Line Michigan are considered or $100,000 for joint filers. $1,023 plus 8.5 percent of 31 of Form 502 or Line 9 of residents and are subject to Write: Taxpayer Services Divi- Maine taxable income over Form 503. The local factor tax on their entire income sion, Individual Income Tax $20,350 for single filers or varies from1.25 percent in regardless of their physi- Section, Louisiana Depart- $2,045 plus 8.5 percent over Worcester County to 3.2 cal presence in the state. ment of Revenue, P.O. Box $40,700 for married filing percent in Baltimore City, Michigan’s annualized tax 201, Baton Rouge LA 70821- jointly. and in Montgomery, Prince rate for 2012 is 4.33 percent. 0201. Write: Maine Revenue Ser- George’s and Howard coun- For tax year 2013 it will be

50 FEBRUARY 2013 | THE FOREIGN SERVICE JOURNAL AFSA NEWS

4.25 percent. Some Michigan cal presence in the state. regardless of their physical bottom of the page. cities impose an additional Mississippi’s tax rate is 3 presence in the state. Mon- Web site: http://revenue. 1- or 2-percent income tax. percent on the first $5,000 tana’s tax rate for 2012 rises mt.gov/default.mcpx Detroit imposes an additional of taxable income, 4 percent in six steps from 1 percent 2.5-percent tax. on the next $5,000 and 5 of taxable income under NEBRASKA Write: Michigan Department percent on taxable income $2,700 rising in 7 steps to to Individuals domiciled in of Treasury, Lansing, MI over $10,000 for all taxpay- a maximum of 6.9 percent of Nebraska are considered 48922. ers, whether filing singly or taxable income over $16,400. residents and are subject to Phone: toll-free (517) 373- jointly. See the Web site for various tax on their entire income 3200. Write: Department of Rev- deductions and exemptions. regardless of their physical E-mail: treasIndTax@michi- enue, P.O. Box 1033, Jackson, Write: Montana Department presence in the state. The gan.gov MS 39215-1033. of Revenue, P.O. Box 5805, 2012 individual income tax Web site: www.michigan.gov/ Phone: (601) 923-7000. Helena, MT 59604. rates range in four steps from treasury E-mail: Link through the Web Phone: (406) 444-6900. a minimum of 2.56 percent to site’s “Contact Us” tab. E-mail: Link through the Web a maximum of 6.84 percent MINNESOTA Web site: www.dor.ms.gov site’s “Contact Us” tab at the of the excess over $27,000 Individuals domiciled in Minnesota are considered MISSOURI residents and are subject to An individual domiciled in tax on their entire income Missouri is considered a regardless of their physical non-resident, and is not presence in the state. Minne- liable for tax on Missouri sota’s tax rate in 2012 is 5.35 income if the individual has percent on taxable income no permanent residence in over $23,670 for singles or Missouri, has a permanent $34,590 for married joint fil- residence elsewhere and is ers, rising in three steps to a not physically present in the maximum of 7.85 percent on state for more than 30 days taxable income over $77,731 during the tax year. Missouri for single filers or $137,431 calculates tax on a graduated for married filing jointly. scale up to $9,000 of taxable Write: Minnesota Depart- income. Any taxable income ment of Revenue, Mail over $9,000 is taxed at a rate Station 5510, Saint Paul, MN of $315 plus 6 percent of the 55146-5510. excess over $9,000. Phone: (651) 296-3781. Write: Individual Income Tax, E-mail: Use the “Contact Us” P.O. Box 2200, Jefferson City, tab on the website MO 65105-2200. Web site: www.taxes.state. Phone: (573) 751-3505. mn.us E-mail: [email protected] Web site: www.dor.mo.gov MISSISSIPPI Individuals domiciled in MONTANA Mississippi are considered Individuals domiciled in residents and are subject to Montana are considered tax on their entire income residents and are subject to regardless of their physi- tax on their entire income

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does levy, among other taxes, $500,000. where and is not present in 2012 a 5-percent tax on interest Write: State of New Jersey, the state more than 30 days and dividend income of New Jersey Division of Taxa- during the tax year. Filing a more than $2,400 annually tion, Technical Information return is not required, but it for single filers ($4,800 Branch, P.O. Box 281, Trenton, is recommended to preserve TAX annually for joint filers) NJ 08695-0281. domicile status. The tax and an 8.5-percent tax on Phone: (609) 292-6400. rate rises in six steps from a business profits, including E-mail: Link through the Web minimum of 4 percent to 5.9 GUIDE sale of rental property. The site’s “Contact Us” page. percent of taxable income inheritance tax was repealed Web site: www.state.nj.us/ over $20,000 for single filers for singles, and $54,000 in 2003. Applicable taxes treasury/taxation and $40,000 for married for joint filers. If AGI is over apply to part-year residents. filing jointly, 6.45 percent on $173,650 (both single and Write: Central Taxpayer NEW MEXICO taxable income over $75,000 joint filers), an additional tax Services, 109 Pleasant St., Individuals domiciled in (singles) and $150,000 rate of between 0.428 and Concord, NH 03301. New Mexico are considered (joint filers). and 6.65 per 0.172 percent is imposed. Phone: (603) 230-5920. residents and are subject to cent on taxable income Write: Department of Web site: www.nh.gov/rev- tax on their entire income over $200,000 (singles) or Revenue, 301 Centennial enue regardless of their physical $300,000 (joint filers), over Mall South, P.O. Box 94818, presence in the state. The $1,000,000 (singles) and Lincoln, NE 68509-4818. NEW JERSEY basis for New Mexico’s calcu- over $2,000,000 (joint filers) Phone: (402) 471-5729. A New Jersey domiciliary is lation is the Federal Adjusted will be taxed at 8.82 percent. E-mail: Link through the Web considered a non-resident for Gross Income figure. Rates In New York City the maxi- site “Contact Us” page. New Jersey tax purposes if rise from a minimum of 1.7 mum rate is 3.648 percent Web site: www.revenue.state. the individual has no perma- percent in four steps to a over $90,000 and 3.876 per- ne.us nent residence in New Jersey, maximum of 5.3 percent on cent over $500,000. Filing is has a permanent residence New Mexico taxable income required on Form IT-203 for NEVADA elsewhere and is not physi- over $16,000 for single filers revenue derived from New Nevada does not tax personal cally in the state for more and $24,000 for married York sources. income. There is a sales- than 30 days during the tax filing jointly. Write: New A 2001 opinion from the and-use tax that varies from year. Filing a return is not Mexico Taxation and Revenue New York tax authorities 6.85 percent to 8.1 percent required (unless the non-res- Department, Tax Information stated that Foreign Service depending on local jurisdic- ident has New Jersey-source and Policy Office, P.O. Box employees not domiciled in tion. Additional ad valorem income), but it is recom- 25122 Santa Fe, NM 87504- New York state but assigned personal and real property mended in order to preserve 5122 to the U.S. United Nations taxes are also levied. domicile status. Filing is Phone: (505) 827-0700. office for a normal tour of Write: Nevada Department of required on Form 1040-NR E-mail: Link through “E-mail duty would not be considered Taxation, 1550 College Pkwy., for revenue derived from in- Us” tab at bottom of home to be maintaining a perma- Suite 115, Carson City, NV state sources. Tax liability is page. nent place of abode in New 89706. calculated as a variable lump Web site: www.tax.state. York state. Therefore, such Phone: (775) 684-2000. sum plus a percentage from nm.us/ individuals are not treated Web site: www.tax.state.nv.us a minimum of 1.4 percent as resident individuals and of taxable gross income up NEW YORK are taxed as non-residents NEW HAMPSHIRE to $20,000, in three steps There is no tax liability for in New York state. AFSA The state imposes no to 6.37 percent between out-of-state income if the can provide a copy of this personal income tax on $75,000 and $500,000, and individual has no permanent opinion. earned income and no a maximum of 8.97 percent residence in New York, has a Write: New York State general sales tax. The state on taxable gross income over permanent residence else- Department of Taxation and

52 FEBRUARY 2013 | THE FOREIGN SERVICE JOURNAL AFSA NEWS

Finance, Personal Income Tax ranges in five steps from 1.51 residents and are subject to ok.us Information, W.A. Harriman percent on North Dakota tax- tax on their entire income Campus, Albany, NY 12227. able income up to $34,500 regardless of their physical OREGON Phone: (518) 457-5181. for singles and $57,700 for presence in the state. Okla- Individuals domiciled in E-Mail: Link through Web joint filers, 3.13 percent over homa’s tax rate rises in eight Oregon are considered site’s “Answer Center” tab. $83,600 for singles and over stages to a maximum of 5.5 residents and are subject to Web site: http://www.tax. $139, 350 for joint filers, to percent on taxable income tax on their entire income ny.gov/ a maximum of 3.99 percent over $8,700 for single filers regardless of their physical on taxable income over and $15,000 for married fil- presence in the state. Under NORTH CAROLINA $379,150 for singles and joint ing jointly. a 1999 law, however, Oregon Individuals domiciled in filers. Write: Oklahoma Tax Com- exempts domiciliaries who North Carolina are con- Write: Office of State Tax mission, Income Tax, P.O. Box meet the foreign residence sidered residents and are Commissioner, State Capitol, 26800, Oklahoma City, OK requirement for the Foreign subject to tax on their entire 600 E. Boulevard Ave., Dept. 73126-0800. Earned Income Exclusion, income regardless of their 127, Bismarck, ND 58505- Phone: (405) 521-3160. even though they may be physical presence in the 0599. E-mail: otcmaster@tax. federal employees. For 2012, state. North Carolina’s tax Phone: (701) 328-1247. ok.gov Oregon’s tax rate rises on rate rises in three steps from E-mail: [email protected] Web site: www.oktax.state. three steps from 5 percent 6 percent of taxable income Web site: www.nd.gov/tax up to $12,750 for single or $21,250 for joint filers, to 7.75 OHIO percent of North Carolina Individuals domiciled in Ohio taxable income over $60,000 are considered residents and for single filers and over their income is subject to tax, $100,000 for joint filers. Res- using the Federal Adjusted idents must also report and Gross Income figure as a pay a “use tax” on purchases starting base. Ohio’s tax rate made outside the state for starts at a minimum of 0.587 Whether serving at home or abroad, being a use in North Carolina. Write: percent on taxable income member of the Foreign Service does not have North Carolina Department under $5,200, rising in eight to complicate your taxes if you have the right of Revenue, P.O. Box 25000, steps to a maximum of 5.925 CPA firm on your side. Raleigh, North Carolina, percent on taxable income 27640-0640. over $208,500 for single and • Audit, Reviews and Compilations Phone: toll-free 1 (877) 252- joint filers. • Estate Planning 3052. From overseas, call 1 Write: Ohio Department of • Litigation Support (252) 467-9000. Taxation, Taxpayer Services • Mergers and Acquisitions Web site: www.dor.state. Center, P.O. Box 530, Colum- • Tax Efficiency Planning and Strategies nc.us bus, OH 43216-0530. • Sucession Planning Phone: toll-free 1 (800) 282- NORTH DAKOTA 1780 or (614) 387-0224. Contact Us for Tax Planning, Compliance Individuals domiciled in E-mail: Link through Web and Preparation. North Dakota and serv- site’s “Contact Us” tab. ing outside the state are Web site: www.tax.ohio.gov [email protected] • www.lhmp.com considered residents and Tel: (626) 744-5100 • Fax: (626) 744-5110 are subject to tax on their OKLAHOMA 100 East Corson Street, Suite 200 entire income. For 2012 and Individuals domiciled in Pasadena, CA 91103 later tax years, the tax rate Oklahoma are considered

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tax year. However, Penn- gobierno.pr income to a maximum of 7 2012 sylvania does not consider Web site: www.hacienda. percent of taxable income government quarters gobierno.pr over $14,000. overseas to be a “permanent Write: South Carolina Tax residence elsewhere.” Filing a RHODE ISLAND Commission, 301 Gervais St., TAX return is not required, but it Individuals domiciled in P.O. Box 125, Columbia, SC is recommended to preserve Rhode Island are considered 29214. domicile status. File Form residents and are subject to Phone: (803) 898-5709. GUIDE PA-40 for all income derived tax on their entire income E-mail: [email protected] or from Pennsylvania sources. regardless of their physical through the Contact Us tab. on taxable income over Pennsylvania’s tax rate is a presence in the state. The Web site: www.sctax.org $3,150 for single filers and flat 3.07 percent. Rhode Island tax rate is 3.75 over $6,300 for married filing Write: Commonwealth of percent of taxable income SOUTH DAKOTA jointly, in three steps to 9.9 Pennsylvania, Department of up to $57,150 for all filers, There is no state income tax percent on taxable income Revenue, Taxpayer Services 4.75 percent for income over and no state inheritance tax. over $125,000 (single Department, Harrisburg PA $57,150, and 5.99 percent State sales and use tax is 4 filers) and $250,000 (joint 17128-1061. of taxable income over percent; municipalities may filers). Contact the Oregon Phone: (717) 787-8201. $129,900 for all filers. Also, add up to an additional 2.75 Department of Revenue E-mail: Link through the Web a 2010 change treats capital percent. for up-to-date information. site’s “Contact Us” tab. gains as ordinary taxable Write: South Dakota Depart- Oregon has no sales tax. Web site: www.revenue.state. income. Refer to the tax divi- ment of Revenue, 445 E. Write: Oregon Department of pa.us sion’s Web site for current Capitol Ave., Pierre, SD Revenue, 955 Center St. NE, information and handy filing 57501-3185. Salem, OR 97301-2555. PUERTO RICO hints, as well as for forms and Phone: (605) 773-3311. Phone: (503) 378-4988. Individuals who are domiciled regulations. E-mail: Link through the Web E-mail: questions.dor@state. in Puerto Rico are considered Write: Rhode Island Division site’s “Contact Us” tab. or.us residents and are subject to of Taxation, Taxpayer Assis- Web site: www.state.sd.us/ Web site: www.oregon.gov/ tax on their entire income tance Section, One Capitol drr2/revenue.html DOR regardless of their physical Hill, Providence, RI 02908- presence in the common- 5801. TENNESSEE PENNSYLVANIA wealth. Normally, they may Phone (401) 574-8829. Salaries and wages are not Pennsylvania tax authorities claim a credit with certain E-mail: [email protected]. subject to state income tax, have ruled that Pennsyl- limitations for income taxes ri.us but Tennessee imposes a vania residents in the U.S. paid to the United States Web site: www.tax.state.ri.us 6-percent tax on most divi- Foreign Service are not on on income from sources dends and interest income federal active duty for state outside Puerto Rico, and for SOUTH CAROLINA of more than $1,250 (single tax purposes, and thus their any federal taxes paid. Taxes Individuals domiciled in filers) or $2,500 (joint filers) income is taxable compensa- range from 7 percent of tax- South Carolina are con- in the tax year. tion. For non-Foreign Service able income up to $22,000 sidered residents and are Write: Tennessee Depart- state residents, there is no to 33 percent of the taxable subject to tax on their ment of Revenue (Attention: tax liability for out-of-state income over $60,000 for all entire income regardless of Taxpayer Services), 500 income if the individual has taxpayers. their physical presence in Deaderick St., Nashville, TN no permanent residence in Write: Departamento de the state. South Carolina 37242. the state, has a permanent Hacienda, P.O. Box 9024140, imposes a graduated tax Phone: (615) 532-6439. residence elsewhere, and San Juan, PR 00902-4140. rising in six steps from 3 E-mail: [email protected] spends no more than 30 Phone: (787) 727-0216. percent on the first $5,600 Web site: www.state.tn.us/ days in the state during the E-mail: infoserv@hacienda. of South Carolina taxable revenue

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TEXAS regardless of their physical are: 2 percent if taxable pay state unemployment tax There is no state personal presence in the state. The income is less than $3,000; annually instead of quarterly. income tax. 2012 tax rate ranges from $60 plus 3 percent of excess Write: Virginia Department of Write: Texas Comptroller, P.O. 3.55 percent on taxable over $3,000 if taxable Taxation, Office of Customer Box 13528, Capitol Station, income under $35.350 for income is between $3,000 Services, P.O. Box 1115, Rich- Austin TX 78711-3528. singles and $59,050 for joint and $5,000; $120 plus 5 per- mond, VA 23218-1115. Phone Customer Service: filers to a maximum of 8.95 cent of excess over $5,000 Phone: (804) 367-8031. toll-free 1 (877) 334-4112. percent on taxable income if taxable income is between E-mail: Link through the Web E-mail: comptroller.help@ over $388,350 for singles $5,000 and $17,000; and site’s “Contact Us” tab. cpa.state.tx.us and joint filers. $720 plus 5.75 percent if tax- Web site: www.tax.virginia. Web site: www.window.state. Write: Vermont Department able income is over $17,000. gov tx.us of Taxes, Taxpayer Services In addition, for tax years Division, 133 State St., Mont- after 2009, Virginia allows WASHINGTON UTAH pelier, VT 05633-1401. employers of household help There is no state income tax Individuals domiciled in Utah Phone: (802) 828-2865. to elect, using Form R-1H, to and no tax on intangibles are considered residents and E-mail: Link through the Web are subject to Utah state tax. site’s “Contact Us” tab. Utah requires that all Federal Web site: www.state.vt.us/ Adjusted Gross Income tax reported on the federal return be reported on the VIRGINIA state return regardless of the Individuals domiciled in taxpayer’s physical pres- Virginia are considered America Counts on CPAs ence in the state. Utah has residents and are subject to a flat tax of 5 percent on all tax on their entire income income. Some taxpayers will regardless of their physical be able to claim either a tax- presence in the state. Individ- David L. Mortimer, CPA, has more than 20 years payer tax credit or a retire- uals domiciled elsewhere are ment tax credit, or both (see also considered residents for of experience in tax planning, research and com- Web site for explanation). tax purposes for the portion pliance. This experience includes developing tax Write: Utah State Tax Com- of any calendar year in which minimization strategies, planning business trans- mission, Taxpayer Services they are physically present actions and tax audit representation. Division, 210 North 1950 in the state for 183 days West, Salt Lake City, UT or more. These individuals • Income tax services 84134. should file using Form 760. • Financial planning Phone: toll-free 1 (800) 662- In addition, Virginia requires • Practiced before the IRS 4335, or (801) 297-2200. non-residents to file Form • Electronic tax filing E-mail: Link through the Web 763 if their Virginia Adjusted site’s “Contact Us” tab. Gross Income (which • Member AICPA Web site: www.tax.utah.gov includes any federal salary F IRST C ONSULTATION F REE paid during time they are David L. Mortimer, CPA VERMONT residing in Virginia) exceeds 5500 Holmes Run Parkway C4 Individuals domiciled in $11,950 for single filers and Vermont are considered married filing separately, or Alexandria VA 22314 residents and are subject to $23,900 for married filing Tel: (703) 743-0272 Fax: (202) 204-5199 tax on their entire income jointly in tax year 2012 and E-mail: [email protected] beyond. Individual tax rates Web site: www.mytaxcpa.net

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single filers over $60,000 for Cheyenne, WY 82002-0110. ALASKA 2012 joint filers. Phone: (307) 777-7961. No personal income tax. Write: Department of Tax and E-mail: DirectorOfRevenue@ Most municipalities levy Revenue, Taxpayer Services wy.gov sales and/or use taxes of Division, P.O. Box 3784, Web site: http://revenue. between 2 and 7 percent TAX Charleston WV 25337-3784. state.wy.us and/or a property tax. Phone: toll-free 1 (800) 982- 8297, or (304) 558-3333. ARIZONA GUIDE E-mail: [email protected] Up to $2,500 of U.S. govern- or through the “Contact Us” STATE ment pension income may be such as bank accounts, page on the Web site. PENSION & excluded for each taxpayer. stocks and bonds. Residents Web site: www.wvtax.gov There is also a $2,100 may deduct Washington ANNUITY exemption for each taxpayer sales tax on their federal tax WISCONSIN TAX age 65 or over. Arizona does returns if they itemize deduc- Individuals domiciled in not tax Social Security. Ari- tions. Wisconsin are considered The laws regarding the zona state sales and use tax Write: Washington State residents and are subject to taxation of Foreign Service is 5.6 percent with additions Department of Revenue, tax on their entire income annuities vary greatly from depending on county and/ Taxpayer Services, P.O. Box regardless of where the state to state. In addition or city. 47478, Olympia, WA 98504- income is earned. Wiscon- to those states that have 7478. sin’s current tax rate ranges no income tax or no tax on ARKANSAS Phone: toll-free 1 (800) 647- from 4.6 percent on income personal income, there are The first $6,000 of income 7706. up to $10,570 for single several states that do not tax from any retirement plan E-mail: Link through the Web filers or $14,090 for joint income derived from pen- or IRA is exempt. Social site’s “Contact Us” tab. filers, rising in four steps to sions and annuities. Idaho Security is not taxed. There Web site: www.dor.wa.gov a maximum of 7.75 percent taxes Foreign Service annui- is no estate or inheritance on income over $232,660 for ties while exempting certain tax. State sales and use tax WEST VIRGINIA single filers or $310,210 for categories of Civil Service is 6 percent; city and county There is no tax liability for joint filers. employees. Several Web sites taxes may add another 6.5 out-of-state income if the Write: Wisconsin Depart- provide more information percent. individual has no permanent ment of Revenue, Individual on individual state taxes for residence in West Virginia, Income Tax Assistance, retirees, but the Retirement CALIFORNIA has a permanent residence P.O. Box 8906, Madison, WI Living Information Center at Pensions and annuities are elsewhere and spends no 53708-8906. www.retirementliving.com/ fully taxable. Social Security more than 30 days of the Phone: (608) 266-2486. taxes-by-state is one of the is not taxed. The sales and tax year in West Virginia. E-mail: income@revenue. more comprehensive. use tax rate varies from 7.25 However, non-resident wi.gov percent (the statewide rate) domiciliaries are required to Web site: www.dor.state.wi.us ALABAMA to 10.50 percent in some file a return on Form IT-140 Social Security and U.S. areas. for all income derived from WYOMING government pensions are not West Virginia sources. Tax There is no state income tax taxable. The combined state, COLORADO rates rise in four steps from and no tax on intangibles county and city general sales Up to $24,000 of pension 4 percent of taxable income such as bank accounts, and use tax rates range from income is exempt if individual over $5,000 for single filers stocks or bonds. 7 percent to as much as 12 is age 65 or over. Up to and over $10,000 for joint fil- Write: Wyoming Depart- percent. $20,000 is exempt if age 55 ers, to 6.5 percent of taxable ment of Revenue, Herschler to 64. State sales tax is 2.9 income over $30,000 for Building, 122 West 25th St., percent; local additions can

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increase the total to as much GEORGIA taxed. Idaho state sales tax to $6,000 for single, head of as 9.9 percent. $35,000 of retirement is 6 percent; some local household or qualifying wid- income is excluded for those jurisdictions add as much as ower filers and up to $12,000 CONNECTICUT who are 62 years or older, or another 3 percent. for married filing jointly. The Pensions and annuities are totally disabled. Beginning in same income tax rates apply fully taxable for residents. tax year 2012, up to $65,000 ILLINOIS to annuities as to other Social Security is exempt of retirement income will Illinois does not tax U.S. gov- incomes. Iowa is phasing out if Federal Adjusted Gross be excludable for taxpayers ernment pensions or Social taxation of Social Security Income is less than $50,000 that are 65 or older. Social Security. State sales tax is benefits, but a portion is still for singles or $60,000 for Security is excluded from 6.25 percent. Local additions subject to tax in 2012. State- joint filers. Statewide sales taxable income. Sales tax can raise sales tax to 10.5 wide sales tax is 6 percent, tax is 6.35 percent. No local is 4 percent statewide, with percent in some jurisdictions. with no more than 1 percent additions. additions of up to 3 percent added in local jurisdictions. depending on jurisdiction. INDIANA DELAWARE If the individual is over age KANSAS Pension exclusions per HAWAII 62, the Adjusted Gross U.S. government pensions person: $2,000 is exempt Pension and annuity distri- Income may be reduced are not taxed. Extra deduc- under age 60; $12,500 butions from a government by the first $2,000 of any tion of $850 if over 65. if age 60 or over. There pension plan are not taxed in pension, reduced dollar for Social Security is exempt is an additional standard Hawaii. Social Security is not dollar by Social Security if Federal Adjusted Gross deduction of $2,500 if age 65 taxed. Hawaii charges a gen- benefits. There is also a Income is under $75,000. or over if you do not itemize. eral excise tax of 4 percent $1,000 exemption if over 65, State sales tax is 6.3 percent, Social Security income instead of sales tax. or $1,500 if Federal Adjusted with additions of between 1 is excluded from taxable Gross Income is less than and 4 percent depending on income. Delaware does not IDAHO $40,000. There is no pension jurisdiction. impose a sales tax. If the individual is age 65 or exclusion for survivor annui- older, or age 62 and disabled, tants of federal annuities. KENTUCKY DISTRICT OF Civil Service Retirement Social Security is not taxed in Government pension income COLUMBIA System and Foreign Service Indiana. Sales tax and use tax is exempt if retired before Pension or annuity exclusion Retirement and Disability in Indiana is 7 percent. Jan. 1, 1998. If retired after of $3,000 is applicable if 62 System pensions only qualify Dec. 31, 1997, pension/annu- years or older. Social Security for a deduction in 2012 of up IOWA ity income up to $41,110 is excluded from taxable to $27,876 for a single return Generally taxable. For 2009 remains fully excludable income. Sales and use tax is and up to $41,814 for a joint and later tax years, how- for 2012. Social Security is 6 percent, with higher rates return. Up to $27,876 may be ever, a married couple with exempt. Sales and use tax is for some commodities. deducted by the unmarried an income for the year of 6 percent statewide, with no survivor of the annuitant. The less than $32,000 may file local sales or use taxes. FLORIDA deduction is not available for exemption, if at least There is no personal income, if married filing separately; one spouse or the head of LOUISIANA inheritance or gift tax. Florida nor do Federal Employees’ household is 65 years or Federal retirement benefits repealed the “intangibles Retirement System or For- older on Dec. 31, and single are exempt from Louisiana tax” in 2007. Florida imposes eign Service Pension System persons who are 65 years or state income tax. There is an state sales tax and a use pensions qualify for this older on Dec. 31 may file for exemption of $6,000 of other tax of 6 percent. Counties deduction. The deduction an exemption if their income annual retirement income impose further taxes from is reduced dollar for dollar is $24,000 or less. Over age received by any person age 0.5 to 3.5 percent. by Social Security benefits. 55, there is a pension/retire- 65 or over. Married filing Social Security itself is not ment income exclusion of up jointly may exclude $12,000.

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exemption in addition to ments/taxes/Tax_Change_ Adjusted Gross Income is 2012 the regular $3,200 personal Summaries_-_Retirement_ less than $100,000 when exemption available to all Exemptions_359799_7.pdf. married filing jointly or taxpayers. Social Security Michigan has no city, local, or $85,000 for single filers, up is exempt. See the work- county sales tax. The state to a limit of $33,703 for each TAX sheet and instructions in sales tax rate is 6 percent. spouse. In 2012 you may also the Maryland Resident Tax deduct 100 percent of Social Booklet. Maryland sales tax MINNESOTA Security income if over age GUIDE is 6 percent. Social Security income is 62 and Federal Adjusted taxed by Minnesota to the Gross Income is less than State sales tax is 4 percent MASSACHUSETTS same extent it is on your the limits above. Sales tax is with local additions up to Distributions made to federal return. If your only 4.225 percent; local addi- a possible total of 10.75 a retiree from a federal income is Social Security, tions may add another 2 percent. Use tax is 8 percent employee contributory plan you would not be required to percent. regardless of the purchaser’s are excluded from Massachu- file an income tax return. All location. setts gross income. Social federal pensions are tax- MONTANA Security is not included in able, but single taxpayers There is a $3,000 pension MAINE Massachusetts gross income. who are over 65 or disabled income exclusion if Federal Recipients of a govern- Each taxpayer over age 65 is may exclude some income Adjusted Gross Income is ment sponsored pension or allowed an additional $700 if Federal Adjusted Gross less than $30,000. Those annuity who are filing singly exemption on other income. Income is under $33,700 and over 65 can exempt an may deduct up to $6,000 Sales tax is 6.25 percent. non-taxable Social Security additional $800 of interest ($12,000 for married filing is under $9,600. For a couple, income for single taxpayers jointly) on income that is MICHIGAN the limits are $42,000 for and $1,600 for married joint included in their Federal For Tax Year 2012, there are Adjusted Gross Income and filers. Social Security is sub- Adjusted Gross Income, changes for those born after $12,000 for non-taxable ject to tax. Montana has no reduced by all Social Security 1946, and greater changes Social Security. Statewide general sales tax, but tax is and railroad benefits. For for those born after 1952. sales and use tax is 6.875 levied on the sale of various those age 65 and over, there In 2012, pension benefits percent; some local additions commodities. is an additional standard included in Adjusted Gross may increase the total to deduction of $1,400 (sin- Income from a private pen- 9.53 per cent. NEBRASKA gle),$1,100 (married filing sion system or an IRA are U.S. government pensions singly) or $2,200 (married deductible, for those born MISSISSIPPI and annuities are fully filing jointly). General sales before 1946, to a maximum Social Security and qualified taxable. Social Security is tax is 5 percent. of $47,309 for a single filer, retirement income from fed- taxable. State sales tax is 5.5 or $94,618 for joint filers. eral, state and private retire- percent, with local additions MARYLAND This maximum is reduced by ment systems are exempt of up to 2 percent. Those over 65 or perma- the deduction taken for the from Mississippi tax. There nently disabled, or who have government pension. If born is an additional exemption NEVADA a spouse who is permanently after 1946 and before 1952, of $1,500 on other income if No personal income tax. disabled, may under certain the exemption is limited to over 65. Statewide sales tax Sales and use tax varies from conditions be eligible for $20,000 for singles and is 7 percent. 6.85 to 8.1 percent, depend- Maryland’s maximum pen- $40,000 for married filers. If ing on local jurisdiction. sion exclusion of $26,100. born after 1952, not eligible MISSOURI Also, all individuals 65 years for the exemption until reach- In 2012, 100 percent of NEW HAMPSHIRE or older are entitled to ing age 67. Full details at: public pension income may No personal income tax. an extra $1,000 personal www.michigan.gov/docu- be deducted if Missouri The inheritance tax was

58 FEBRUARY 2013 | THE FOREIGN SERVICE JOURNAL AFSA NEWS

repealed in 2003. There is gross receipts tax, instead of first $5,000, which is exempt OREGON a 5-percent tax on interest/ a sales tax, of 5.1375 percent; minus any Social Security Generally, all retirement dividend income over $2,400 county and city taxes may payments. Sales tax is 5 income is subject to Oregon for singles ($4,800 married raise this to 8.6875 percent percent. Local jurisdictions tax when received by an filing jointly). A $1,200 in some jurisdictions. impose up to 3 percent more. Oregon resident. However, exemption is available for federal retirees who retired those 65 or over. No general NEW YORK OHIO on or before Oct. 1, 1991, sales tax. Social Security, U.S. govern- Taxpayers 65 and over may may exempt their entire ment pensions and annuities take a $50 credit per return. federal pension; those who NEW JERSEY are not taxed. For those over In addition, Ohio gives a tax worked both before and after Pensions and annuities from age 59½, up to $20,000 of credit based on the amount Oct. 1, 1991, must prorate civilian government service other annuity income (e.g., of the retirement income their exemption using the are subject to state income Thrift Savings Plan) may be included in Ohio Adjusted instructions in the tax tax, with exemptions for excluded. See N.Y. Tax Pub- Gross Income, reaching a booklet. A tax credit of up to those who are age 62 or older lication 36 for details. Sales maximum of $200 for any 9 percent of taxable pension or totally and permanently tax is 4 percent statewide. retirement income over income is available to disabled. Singles and heads Other local taxes may add up $8,000. Social Security is recipients of pension income, of households can exclude to an additional 5 percent. exempt. State sales tax is including most private up to $15,000; those 5.5 percent. Counties and pension income, whose married filing jointly up to NORTH CAROLINA regional transit authorities household income was less $20,000; those married filing Pursuant to the “Bailey” deci- may add to this, but the total than $22,500 (single) and separately up to $10,000 sion, government retirement must not exceed 8.5 percent. $45,000 (joint),and who each. These exclusions benefits received by federal received less than $7,500 are eliminated for New retirees who had five years of OKLAHOMA (single)/$15,000 (joint) in Jersey gross incomes over creditable service in a federal Individuals receiving FERS/ Social Security benefits. $100,000. Residents over retirement system on Aug. FSPS or private pensions The credit is the lesser of 65 may be eligible for an 12, 1989, are exempt from may exempt up to $10,000 the tax liability or 9 percent additional $1,000 personal North Carolina income tax. if the Federal Adjusted Gross of taxable pension income. exemption. Social Security is Those who do not have five Income is under $100,000 Oregon does not tax Social not taxed. State sales tax is 7 years of creditable service for single filers or $200,000 Security benefits. Oregon has percent. on Aug. 12, 1989, must pay for married filing jointly. no sales tax. North Carolina tax on their Alternatively, in 2011 and NEW MEXICO federal annuities. In this case, later years, 100 percent of a PENNSYLVANIA All pensions and annuities up to $4,000 ($8,000 if filing federal pension paid in lieu Government pensions and are taxed as part of Federal jointly) of any federal annuity of Social Security (i.e., CSRS Social Security are not sub- Adjusted Gross Income. income is exempt. For those and FSRDS—”old system”— ject to personal income tax. Taxpayers 65 and older over 65, an extra $750 (sin- including the CSRS/FSRDS Pennsylvania sales tax is 6 may exempt up to $8,000 gle) or $1,200 (couple) may portion of an annuity paid percent. Other taxing entities (single) or $16,000 (joint) be deducted. Social Security under both systems) is may add up to 2 percent. from any income source is exempt. State sales tax exempt. Social Security if their income is under is 4.75 percent; local taxes included in FAGI is exempt. PUERTO RICO $28,500 (individual filers) may increase this by up to 3 State sales tax is 4.5 percent. The first $11,000 of income or $51,000 (married filing percent. Local and other additions received from a federal jointly). The exemption is may bring the total up to 9.5 pension can be excluded for reduced as income increases, NORTH DAKOTA percent. individuals under 60. For disappearing altogether at All pensions and annuities those over 60 the exclusion $51,000. New Mexico has a are fully taxed, except for the is $15,000. If the individual

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an additional 2 percent. first $8,000 (individual filers) 2012 VERMONT or $16,000 (married filing TENNESSEE U.S. government pensions jointly) of any retirement Social Security, pension and annuities are fully income. Out-of-state income and income from taxable. State general sales government pensions qualify TAX IRAs and TSP are not subject tax is 6 percent; local option for the $8,000 exemption. to personal income tax. taxes may raise the total to State sales tax is 6 percent. Most interest and dividend 7 percent (higher on some GUIDE income is taxed at 6 per- commodities). WISCONSIN cent if over $1,250 (single Pensions and annuities are receives more than one filers) or $2,500 (married VIRGINIA fully taxable. Those age federal pension, the exclu- filing jointly). However, for Individuals over age 65 can 65 or over may take two sion applies to each pension tax year 2012 and subse- take a $12,000 deduction. personal deductions totaling or annuity separately. Social quently, those over 65 with The $12,000 deduction $950. Benefits received Security is not taxed. total income from all sources is reduced by one dollar from a federal retirement of less than $26,200 for a for each dollar by which system account established RHODE ISLAND single filer and $37,000 for Adjusted Gross Income before Dec. 31, 1963, are not U.S. government pensions joint filers are completely exceeds $50,000 for single, taxable. Wisconsin does not and annuities are fully tax- exempt from all taxes on and $75,000 for married, tax Social Security benefits able. Sales tax is 7 percent. income. State sales tax is 7 taxpayers. All taxpayers over included in Federal Adjusted percent with between 1.5 and 65 receive an additional Gross Income. For tax years SOUTH CAROLINA 2.75 percent added, depend- personal exemption of $800. after 2009, those over 65 Individuals under age 65 can ing on jurisdiction. Social Security income is and with an FAGI of less than claim a $3,000 deduction on exempt. The estate tax was $15,000 (single filers) or qualified retirement income; TEXAS repealed for all deaths after $30,000 (joint filers)may those 65 years of age or over No personal income tax or July 1, 2007. The general take a $5,000 deduction can claim a $10,000 deduc- inheritance tax. State sales sales tax rate is 5 percent on income from federal tion on qualified retirement tax is 6.25 percent. Local (4 percent state tax and 1 retirement systems or IRAs. income. A resident of South options can raise the rate to percent local tax). State sales tax is 5 percent; Carolina who is 65 years or 8.25 percent. most counties charge an older may claim a $15,000 WASHINGTON extra 0.5 percent. deduction against any type UTAH No personal income tax. of income ($30,000 if both Utah has a flat tax rate of 5 State sales tax is 6.5 percent; spouses are over 65), but percent of all income. For rates are updated quarterly. must reduce this figure by taxpayers over 65 there is a Local taxes may increase the any retirement deduction retirement tax credit of $450 total to 9.5 percent. claimed. Social Security is for single filers and $900 for AFSA not taxed. Sales tax is 6 per- joint filers. This is reduced WEST VIRGINIA cent plus 1 percent in some by 2.5 percent of income $2,000 of any civil or state TAX counties. Seniors 85 and over exceeding $25,000 for single pension is exempt. Social pay 5 percent. filers and $32,000 for joint Security income is taxable GUIDE filers. See the state Web site only to the extent that SOUTH DAKOTA for details. State sales tax the income is includable online at No personal income tax or is 4.7 percent; local option in Federal Adjusted Gross www.afsa.org/ inheritance tax. State sales taxes may raise the total to Income. Taxpayers 65 and afsa_tax_guide. and use tax is 4 percent; as much as 7.95 percent. older or surviving spouses aspx municipalities may add up to of any age may exclude the

60 FEBRUARY 2013 | THE FOREIGN SERVICE JOURNAL AFSA NEWS

ACTIVE AFTER ACTIVE-DUTY Are You a Lifelong Learner? BY DONNA AYERST, AFSA NEWS EDITOR I have been a Foreign Service tions and topics worldwide. family member since 1978. The program features some My husband, David W. Hess, of the world’s leading instruc- is a retired U.S. Agency for tors and experts in history, International Development culture, marine studies, the Foreign Service officer and environment and the arts, current AFSA member. We and offers field experiences are both passionate about and service trips for all ages. Semester at Sea. To view upcoming itineraries, I have been associated please see http://enrich- with the Semester at Sea mentvoyages.org. program since the fall of For decades, Foreign Ser- 1966, when I spent a junior- vice officers have provided in- year semester circumnavi- port and inter-port lectures gating the globe on the S.S. to SAS voyagers. David and Ryndam. In those days, the AYERST DONNA BY PHOTOS I have enjoyed Enrichment Archbishop Desmond program was called the Uni- Tutu, with ISE President Voyages and Alumni Reunion versity of the Seven Seas and Les McCabe, joins the SAS Voyages (including the recent Chapman College in Orange, Spring 2013 voyage to reunion in January), during Cape Town as a mentor as Calif., was the academic part of the Unreasonable which we give volunteer lec- sponsor. at Sea project. tures on the Foreign Service Today, the Institute for to the shipboard community. The M.V. Explorer docked Shipboard Education admin- in Ensenada, Mexico, Each time we come off the isters Semester at Sea, the during the January Alumni ship we plot our next oppor- ship is the M.V. Explorer and Reunion Voyage. tunity to sail! If your interest the academic sponsor is the munity. Lifelong learners are Enrichment Voyages, is piqued (and you wonder University of Virginia. This participants 40 years of age of shorter duration, offer a what Unreasonable at Sea is) year, the program is celebrat- or older who desire to study unique travel-and-learn voy- please feel free to contact me ing its 50th anniversary. with bright and enthusiastic age program that connects at [email protected]. or visit AFSA is proud to be a partner undergraduate students from you to fascinating destina- www.semesteratsea.org. n with ISE/SAS, and grateful around the world and include for their sponsorship of our retirees, professionals on High School Essay Contest leave or simply adventurous AFSA Financial Aid College by providing a semester at travelers. Scholarship Application Deadline sea to the first place winner. Lifelong learners par- Is March 6 Now that you have the ticipate in undergraduate background, let me entice courses, attend field excur- AFSA members’ children have until March 6 to apply you with the SAS Lifelong sions, serve as mentors for an AFSA undergraduate, need-based scholarship Learner Program and Enrich- to undergraduates, conduct for the 2013-2014 school year. Awards range from ment Voyages—both offering seminars in their respective NEWS BRIEF $1,500 to $4,000 and are for full-time students exciting educational travel areas of expertise and add enrolled in a U.S. or overseas two or four-year opportunities for FS-types. a valuable generational ele- institution. For details, please go to www.afsa.org/ The SAS Lifelong Learn- ment to class discussions. scholar or contact AFSA Scholarship Director Lori ing Program provides adult For more on the program, Dec at [email protected] or (202) 944-5504. learners the opportunity to please see www.semesterat- join the SAS academic com- sea.org/lifelonglearning.

THE FOREIGN SERVICE JOURNAL | FEBRUARY 2013 61 BOOKS

The View from the Field Factors: Cracking the Code” by Greg authors. They are particularly profound Engle would be worth the price of the in discussing safety and security plan- Managing Overseas Operations: book. A former Peace Corps Volunteer ning, what to do when crises strike, and Kiss Your Latte Goodbye who is now Peace Corps country direc- managing people and facilities under Gregory W. Engle and Tibor P. Nagy Jr., tor in Ethiopia, Engle draws on postings extreme conditions. The recent Benghazi Vargas Publishing, 2012, $18.99, paper- ranging from Korea and Germany to tragedy underlines the need for this back, 236 pages. Togo and Iraq to illustrate the value of kind of systematic thinking about the Reviewed by Bob Houdek sensitivity to cultural, religious and lin- unthinkable. guistic differences. Those examples will Managing Overseas Operations: Kiss The co-authors of this book are two of be particularly relevant to private-sector Your Latte Goodbye should be on the the most accomplished management managers embarking on their first over- reading list of every U.S. firm sending officers the Foreign Service has ever pro- seas job, but they are useful reminders managers overseas. But I also commend duced. They are for everyone in the it to students in management courses field men who Foreign Service, at the Foreign Service Institute. In fact, I’d encourage FSI to took on tough The discus- I’d encourage FSI to incorporate a video incorporate a video assignments and sion of the rela- segment conducted by the authors into were invigorated segment conducted tive cost-effec- its orientation course for new chiefs of by challenges, by the authors into its tiveness of using mission. whether as a orientation course for Foreign Service, general services new chiefs of mission. Foreign Service Bob Houdek served as chief of mission in officer or an National and Third Eritrea, Ethiopia and Uganda, deputy ambassador. In Country National assistant secretary for African affairs, and their second careers as academics, Greg staff for various functions is cogent and national intelligence officer for Africa, Engle and Tibor Nagy have collaborated thought-provoking. Such a comparative among many other assignments during his on a most readable book that draws on approach is stimulating and should be a 35-year Foreign Service career. He is cur- their combined six decades of interna- much more regular feature of manage- rently a retiree representative on the AFSA tional experience. ment literature and training courses Governing Board. Managing Overseas Operations: Kiss than it is now. Your Latte Goodbye is primarily geared Engle and Nagy’s recommenda- A Fateful Eight Years to managers of international organiza- tions on how to prepare for an overseas tions, diplomatic missions and nongov- managerial assignment are a bit over- No Higher Honor ernmental organizations. But Foreign whelming at times, even for experienced Condoleezza Rice, Broadway Paper- Service management officers will also officers. But FSOs should definitely keep backs, 2012, $18, paperback, 765 pages. appreciate its wealth of practical guid- their comprehensive checklists handy Reviewed by William D. Bent ance. for reference. Readers will also find tips As its title suggests, this is not a dry in each chapter for keeping the home As the old saying goes, “You can’t know academic treatise replete with footnotes, office informed and attuned to the field where you are going until you know extensive empirical data and theoretical perspective. where you’ve been.” That’s one reason nostrums. Rather, it is a compilation of The authors candidly share their I strongly recommend that all foreign practical advice delivered in an informal mistakes, as well as their successes, affairs practitioners, especially Foreign and most digestible manner, using anec- in dealing with overseas management Service officers, read Condoleezza dotes from Engle and Nagy’s careers to challenges. Indeed, there is a Harvard Rice’s memoirs of her time during the underline the advice being offered. The Business School case study quality to first George W. Bush administration as chapters are presented as meetings with this book, as you are brought into situa- national security adviser and as Secre- one of the authors to discuss each topic. tions where you ponder what your deci- tary of State during his second term. Just the chapter on “Cross-Cultural sion might be and critique those of the The attacks of Sept. 11, 2001, and

62 FEBRUARY 2013 | THE FOREIGN SERVICE JOURNAL the Iraq War largely defined Despite, or perhaps because of, they profoundly changed the way the the Bush presidency, so they Rice’s openness, there are incon- Foreign Service operates. In particular, appropriately loom large in No sistencies; as with any memoirs, her emphasis on “transformational Higher Honor. But her sweep- we can expect a certain amount diplomacy” led to a more expedition- ing account covers many other of rationalization. For instance, ary organization whose members are foreign policy addressing still called upon to serve under condi- triumphs and fail- criticism for not tions under which we have rarely served Despite Rice’s dismissive ures during those heading off 9/11, before. eight years. attitude toward the Foreign she insists: “I did That process is still playing out, so it is In the notes on Service, this book should everything I could.” useful to witness the opening curtain— her sources, Ms. grace the bookshelf of every Elsewhere in the albeit through the eyes of the director. n Rice states that foreign affairs practitioner. book, however, she she relied on her concedes: “Given William D. Bent, a Foreign Service officer “daily calendars the severity of what since 1992, is currently chief of post opera- and official trip logs to recall various occurred, I clearly hadn’t done enough.” tions in the Office of Visa Services. A State meetings and travel.” Though the result- Yet instead of explaining what else representative on the Governing Board, ing approach is basically chronological, she should have done, she blames he serves as liaison to the Foreign Service it still gave me a real sense of being in the attacks on unspecified “systemic” Journal Editorial Board. the room, as well as a feel for what she is failures. She also takes a cheap shot at like as a human being. She’s at her best counterterrorism czar Richard Clarke, when relating funny anecdotes, such one of her harshest critics, citing his as Vladimir Putin showing up an hour “awful reputation” among many who’d early to a dinner at President Bush’s worked with him instead of refuting his Crawford ranch because someone for- detailed critique of her performance as got to tell the Russian leader that Texas national security adviser. is in the Central Time Zone. Rice’s views of the Foreign Service But she also shares poignant inner are similarly dismissive and frankly thoughts, like her feelings of personal disappointing. Her description of the responsibility for talking Sérgio Vieira American Foreign Service Association de Mello into taking the United Nations as a “kind of union for U.S. diplomats” is You Are Our Eyes & Ears! job in Iraq, a decision which would jarring and baffling, as is her declaration ultimately lead to his tragic death in that she was “prepared to face down Dear Readers: the August 2003 bombing of the U.N. [AFSA] before Congress and the Ameri- In order to produce a high-quality product, the FSJ depends on the headquarters in Baghdad. Another mov- can people if necessary” to get more revenue it earns from advertising. ing vignette comes during a discussion Foreign Service officers to bid on Iraq. You can help with this. with Muslim leaders about the United Worse, she rehashes the canard, based States’ history with minorities, when on media hype and a badly run town Please let us know the names of companies that have provided she defuses the tension by noting that hall meeting, that the men and women good service to you — a hotel, “When America’s founding fathers said, of the Foreign Service were unwilling to insurance company, auto ‘We the People,’ they didn’t mean me.” do their part. dealership, or other concern. In contrast, her conversations with Despite these flaws, No Higher Honor A referral from our readers Pres. Bush tend to be of the “How was should grace the bookshelf of every is the best entrée! your day?” variety. The quotes confirm foreign affairs practitioner. However Ed Miltenberger Advertising & Circulation Manager the close personal relationship that they one views the wisdom of the decisions Tel: (202) 944-5507 enjoyed, but are rarely illuminating Secretary Rice made, or advised Pres. E-mail: [email protected] beyond that. Bush to make, there is no denying that

THE FOREIGN SERVICE JOURNAL | FEBRUARY 2013 63 IN MEMORY

n Jerine Newhouse Bird., 86, the wife explain the complexities of the Palestinian- Goldmark, daughter and son-in-law Nancy of retired FSO Eugene Bird, died on Dec. Israeli conflict. Bird and Karl Becker, and daughter and 13 after a 15-month battle with peritoneal Bird chose the three women—a Jewish son-in-law Shelly Bird and Jonathan Ely; cancer. A longtime resident of Washington, Israeli, a Muslim Palestinian and a Chris- grandchildren Lisa and Lya Macaya, Jason D.C., Bird was a perennial activist and lob- tian Palestinian—for each 10-city tour. and Daniel Macaya, Joshua Goldmark Bird byist for Middle East peace. The three women usually were strangers and Jonathan Ely; and her sister, Nadine. Born in Portland, Ore., in 1926, Jerine to each other; Bird’s only prerequisite for At her request, the family asks that (“Jerri”) B. Newhouse grew up in Eugene, their participation was that they all had to memorial donations be sent to the Middle Ore. A graduate of the University of agree that the city of Jerusalem should be East Children’s Alliance (www.mecafor Oregon, she married Eugene H. Bird, a shared among the three faiths. peace.org), 1101 8th St., Suite 100, Berkeley Foreign Service officer and an Arabist, Over more than two decades, thou- CA 94710, or to the American Friends of in 1948. Over the next three decades, the sands of Americans heard these Jerusalem the Episcopal Diocese of Jerusalem (www. couple lived in Stockholm, Washington, women debate a two-state solution to the afedj.org), 25 Old King’s Highway No., D.C., Jerusalem, Beirut, Dhahran, Cairo, Middle East conflict. “I wanted ordinary Suite 13, Darien CT 06820. Bombay, New Delhi, Jeddah and Riyadh. women to speak to ordinary people in The extensive experience in the Middle America,” Bird told the Baltimore Jewish n James Franklin Brackman, 86, a East had a profound effect on Jerri Bird. Times in 1998. “I felt that the voices not retired FSO, died on Nov. 22 at Fairfax Hos- On the eve of the October 1956 Suez War, being heard were the women, the human pital in Fairfax, Va., after a long illness. He the Birds were stationed in East Jerusalem. voices. I felt Americans would respond to was a longtime resident of Alexandria, Va. “For some reason, the ‘incidents’ have i t .” Born in Neola, W. Va., in 1926, Mr. been more numerous and the ‘reprisals’ Jerri Bird was known to her family and Brackman served in the U.S. Army from very heavy,” she wrote to her parents in friends as a strongly opinionated, sharp- 1945 to 1946 and received an honorable Oregon. “Neither side is ‘right,’ but Israel’s tongued advocate. “She was a great lady discharge. He completed a bachelor of policy of retaliation simply keeps the fire with a strong conscience,” said Charles science degree in finance and accounting going. It is openly acknowledged that for Glass, ABC News’ former chief Middle East from West Virginia Tech in 1950. every (Israeli) life lost in a border incident, correspondent. “She tried to undo some In 1952, Mr. Brackman joined the the Israelis will kill in return and usually of the harm our country has done to the United States Foreign Service and began many, many more. An eye for an eye has Palestinians.” a diplomatic career as a budget and fiscal turned into 12 for one or better.” A trained musician, Bird once sang in officer spanning 39 years. His first post Their son, Pulitzer Prize-winning histo- a production of “The Sound of Music” in was Bonn, where he helped administer the rian Kai Bird, later wrote about their life in Jeddah, Saudi Arabia. She played the part Marshall Plan. He then served in Bogotá. his memoir, Crossing Mandelbaum Gate: of Mother Superior. At his third post, in Amman, he met his Coming of Age Between the Arabs and She later wrote magazine articles for wife, Stella Scouros, whom he married in Israelis, 1956-1978 (Scribner, 2011). The Foreign Service Journal and contrib- 1958. After her husband’s retirement, Mrs. uted an essay on Saudi women to an The couple subsequently served in Bird moved back to Washington, D.C. anthology edited by Elizabeth Warnock Caracas, Karachi, Budapest, Asunción, There she became active in the Episcopal Fernea, Children of the Muslim Middle East Belgrade (in the former Yugoslavia), Church’s Washington Interfaith Alli- (University of Texas Press, 1995). Kinshasa, Cairo and Beijing. He loved the ance for Middle East Peace and, in 1989, Her family was most important to Foreign Service and thrived at every post founded Partners for Peace. her; and her grandchildren, in particular, by immersing himself in the culture and As the group’s president, she organized brought her the greatest joys in the last the new experiences that each offered. an innovative program that brought “Three years of her life. Sent to East Pakistan in 1971, he helped Women from Jerusalem” to tour American Jerine Bird is survived by her husband, with the evacuation of American citizens cities several times a year. She reached Eugene; their children, daughter and son- during the Bangladesh independence out to audiences in synagogues, churches in-law Christina and Rodrigo Macaya, son struggle. Earlier, he was a member of the and universities through this program to and daughter-in-law Kai Bird and Susan control team in Karachi during the 1962

64 FEBRUARY 2013 | THE FOREIGN SERVICE JOURNAL visit of Jacqueline Kennedy. Barbados he played golf daily; he used to leagues and friends for his kindness and Mr. Brackman served in Budapest say his office hours are “from 7 to 11 at the good humor, his professional excellence when the U.S. was represented through a Rockley Golf Club.” In Moscow he played and commitment to diplomacy, and his legation and Hungarian Cardinal Mind- at the opening of the first golf course and devotion to family and country. He was zenty received political asylum. He liked won the initial tournament. He also kept also a lifelong champion of people with to tell this story of that time: When the up with many baseball and football teams disabilities. cardinal, who often worked at night, found and relished discussing games with his As retired Senior FSO Timothy C. out that Brackman was good with numbers grandchildren. Lawson, who was deputy chief of mission and also a good typist, he would ring the Proud of his West Virginia roots, Mr. in Seoul when Bricker, on his second Seoul bell for him on nights when Brackman was Brackman loved returning to his home- tour, was the deputy information resources on duty at the embassy and ask, “Could I town to visit family members and to play management officer, recalls: “He brought molest you?” The cardinal’s English was golf with old friends and nephews. creativity, innovation and world-class sup- self-taught, and what he meant to say was The Brackmans made their home at port to our large operation and to the goals “May I bother you?” Watergate at Landmark in Alexandria, and objectives of the mission. His sense of In Belgrade, Mr. Brackman joined the Va., where Mr. Brackman was an active local Korean dynamics, service standards diplomatic hunting club and hunted for member and former president of the and technology infrastructure proved boar at the hunting grounds of President Watergate Lions Club and the Watergate pivotal to our success. And this was during Tito. Having been born and raised in West tennis group. some truly trying times for the embassy, Virginia, he felt very much at home in He battled lung cancer from 2000 to the U.S. Army garrison and our alliance Nepal. He loved to trek in the Himalayas 2005, which stayed in remission until with the Republic of Korea.” and trekked to the Everest Base Camp. shortly before he passed away. His doctors “But, beyond those challenges,” Lawson His assignment in Cairo coincided with used to call him “the wonder boy.” continues, “the most commendable and the assassination of President Anwar Sadat Survivors include his wife of 54 years, memorable thing about Michael, to me, in 1981, and Mr. Brackman participated Stella Brackman, of Alexandria, Va.; their was his ready concern for the welfare of in the preparations for all the VIPs and daughter, Gloria Brackman Nussbaum, others—and not just his talented staff. presidents attending the funeral. While and son-in-law, Peter Nussbaum, of “Despite managing his heavy office in Beijing, he helped prepare President Westport, Conn., and two grandchildren, workload and studies for a demanding Ronald Reagan’s 1984 visit. Stephanie and Daniel. Army War College curriculum, Michael After a tour at the U.S. Mission to the was always quietly committed to a very United Nations in New York in 1991, Mr. n Michael Alan Bricker, 54, Foreign special group. He was a frequent visitor to Brackman retired with the title of first sec- Service specialist, died on Oct. 21 in Wash- a small Seoul orphanage, where he would retary, having received numerous honors ington, D.C. take the time to visit, play with and present and awards for exemplary performance. Mr. Bricker was born on July 22, 1958. small gifts to Korean children who suffered In retirement, Mr. Brackman accompa- He joined the State Department in August from severe physical and mental handi- nied his wife, Stella, also a Foreign Service 1990, one of the first hearing-impaired caps and had been largely abandoned employee, to her posts in Rome, New members of the Foreign Service. During by their own families. Michael Bricker Delhi, Moscow, Bridgetown and Brussels. a 22-year diplomatic career as an infor- became their champion. For the few, like He worked as a retiree at the embassies mation technology manager, Mr. Bricker me, who became privy to his special act of in New Delhi and Moscow, where he was served in Warsaw, Monrovia, Seoul (two compassion, Michael became our cham- assigned to train newly hired Russian tours), Kingston, New York with the U.S. pion, too.” employees in administrative and budget Mission to the United Nations, London At every post, he sought out opportuni- matters. and Vienna. When diagnosed with cancer ties to connect with and assist the disabled Mr. Brackman was an enthusiastic earlier in the year, Mr. Bricker had been population. He did volunteer work for the sportsman. An avid tennis player, he was serving as Embassy Ottawa’s information disabled in Poland and at orphanages in a menace at the net. He loved golf and management officer. Liberia and Korea, and also volunteered at kept working to lower his handicap. In Mr. Bricker is remembered by col- a church in New York City. He was a friend

THE FOREIGN SERVICE JOURNAL | FEBRUARY 2013 65 and supporter of St. Jude’s Hospital, moved to remember him may send donations to lived for three years. She was 10 days from by its promise never to turn a child away. St. Jude’s Children’s Hospital or the Ameri- her 100th birthday. His story, “Ten for a Dollar,” included in can Lung Association. Janet Fiske was born in Cedar Rapids, the new edition of Inside a U.S. Embassy, Iowa, one of five children of Frederick reveals Mr. Bricker’s compassionate n Ernest J. Colton, 96, a retired FSO G. and Janette S. Murray. She graduated involvement with the less fortunate in the with the U.S. Information Agency, died on from Coe College in Cedar Rapids, and countries to which he was posted. Oct. 25 at Greenspring Retirement Com- traveled and worked in France and Greece Mr. Bricker was also a pioneer in the munity in Springfield, Va. He had emphy- before earning a master of arts degree from State Department, working to boost the sema. Columbia University. In 1940, she married image of persons with disabilities and Ernst Kohen was born in Berlin, Ger- John C. Fiske, who worked in naval intelli- goading the department to take a leader- many, in 1916 and immigrated in the late gence during and after World War II in the ship role in making the working environ- 1930s to New York, where he changed his United States and Moscow. They then lived ment equitable. name to Ernest Jack Colton. He joined the in the Boston area, Iowa and Washington, In a Speaking Out column for The U.S. Army in the 1930s and later served in D.C. Foreign Service Journal (January 2011), the reserves. In 1957, Mr. Fiske joined the U.S. For- “Welcoming the Disabled to the Foreign After serving as an Army intelligence eign Service and, during the next 13 years, Service,” Mr. Bricker heralded State’s initia- officer in Europe during and after World the couple was posted to Dhaka, Heidel- tive to actively recruit disabled employees War II, Mr. Colton worked as an infor- berg, Kinshasa, Bremen and Reykjavik. in conformance with Executive Order mation officer for U.S. consulates in the Mr. Fiske retired as cultural attaché in 13548, which called for an additional early 1950s. He joined USIA when it was Reykjavik in 1970, and the couple settled in 100,000 individuals with disabilities to be founded in 1953. Moscow, Idaho. employed by the federal government. During the 1950s and 1960s, he served There, Mr. Fiske taught French at Considering what advice to give a as a public affairs and broadcast officer the University of Idaho, and Mrs. Fiske disabled applicant to the Foreign Service, in Germany, Austria and South Africa. He embarked on a career of civic activism. he reviewed his own experiences—both was director of the U.S. cultural center in She helped the city build its first recycling personally and as an advocate for “reason- Berlin from 1966 to 1968 and retired from center, reclaim Paradise Creek as “the able accommodations” for the disabled USIA in 1972. city’s waterfront,” and develop bicycle and at State—with candor and humility. After Mr. Colton returned to Germany in walking trails. She also led efforts to pre- noting that a career in the Foreign Service 1974 as director of the Amerika Haus serve the old post office that now houses offers adventure and the opportunity to binational center in Freiburg, serving until City Hall, the Carnegie Library and the meet fascinating people and be part of 1978. 1912 Center with its Fiske Family Meeting history, Mr. Bricker acknowledged that A longtime Springfield resident, Mr. Room. anyone struggling to overcome the limita- Colton enjoyed gardening and photogra- As a longtime member of the Moscow tions of a particular disability will also phy. chapter of the League of Women Voters, meet disappointment and frustration. Mr. Colton’s wife of 55 years, Ruth Lit- Janet Fiske started annual fundraisers, “When it comes to accommodating ten Colton, died in 2001, and he moved to packaging and selling peas and lentils. The the disabled, the Foreign Service is not yet Greenspring the next year. couple was also active in local Democratic ready for prime time,” he concluded. But Survivors include two children, David politics. he added that he looks forward to the day M. Colton (and his wife, Cheryl Anne) of Mrs. Fiske co-authored two books with when it is. Alexandria, and Esther Colton of Berlin; her mother, Hurrah for Bonnie Iowa and Michael Bricker is survived by his and a granddaughter, Alexis, of Alexandria. Bonnie Iowa Farm Folk, about the early mother; his wife, Shereen; and their days of her Iowa pioneer forebears. 14-year-old daughter, Sabrina. n Janet Murray Fiske, 99, wife of the In 2006, Moscow Mayor Nancy Chaney A memorial Web site (http://michael. late FSO John C. Fiske, died on Nov. 13 at declared a day in Janet Fiske’s honor, in bricker.muchloved.com) has been created her home in the Vashon Community Care recognition of her contributions to the in Michael Bricker’s honor. Those wishing Center, Vashon, Wash., where she had community over the years. Mr. and Mrs.

66 FEBRUARY 2013 | THE FOREIGN SERVICE JOURNAL Fiske also received the city’s civil rights award, and were crowned king and queen of the annual Renaissance Fair. In 2009, Mrs. Fiske moved to Vashon to be closer to family. She was predeceased by her husband in 1998. Survivors include her four children, Lindsay Hofman of Vashon, Jonathan of Evanston, Ill., Anne of Newport, N.C., and Fred of Syracuse, N.Y.; a sister, Winifred Kelley of Des Moines, Iowa; 10 grandchil- dren; and two great-grandchildren. Contributions in Janet Fiske’s name may be made to Vashon Community Care or the League of Women Voters’ Moscow chapter.

n Robert Franklin Gould, 70, a former FSO, died on Dec. 15 at Shady Grove Hos- pital in Montgomery County, Md., after a lengthy battle with cancer. Born in Cleveland, Ohio, Mr. Gould was a graduate of Case Western Reserve University School of Law. He joined the Foreign Service in 1966, despite knowing there was every likelihood he would be sent to the embattled Republic of Vietnam on his maiden assignment. Mr. Gould was a member of the first class of U.S. civilians to graduate from the Vietnam Training Center in Arlington, Va. After spending more than a year learning Vietnam’s language, politics and culture, and the details of the South Vietnamese government’s rural pacification program, he arrived in Vietnam in April 1968 as part of the Civil Operations and Revolutionary Development Support program. Ambassador William Colby, himself a lawyer, was running U.S. pacification sup- port at the time, and he quickly enlisted Mr. Gould to review South Vietnam’s internal security laws for apprehending and dealing with suspected communist insurgents. Colby told him: “You are the best-qualified Vietnamese-speaking Amer-

THE FOREIGN SERVICE JOURNAL | FEBRUARY 2013 67 ican lawyer in the country. In fact, you’re zen was a reporter for the New Orleans University in Ohio, a master’s degree in the only one.” Mr. Gould subsequently told Times-Picayune from 1949 to 1954 and political affairs from The George Wash- Colby that the existing laws and proce- did freelance reporting in Scandinavia. He ington University in 1950 and a master’s dures were contradictory, poorly drafted later received the Council on Foreign Rela- degree in international business and policy and unevenly applied. Many existed only tions’ Edward R. Murrow Press Fellowship. from Harvard University in 1958. in French. During his first assignment with USIA, Mr. Jenkins (“Jenks”) joined the For- Working in the office of South Viet- he established the Voice of America’s eign Service of the Department of State nam’s interior minister, Mr. Gould, under regional office in Addis Ababa and covered in 1950, beginning a 30-year diplomatic Colby’s supervision, suggested legal and the Horn of Africa as a regional corre- career that coincided with the Cold War. A structural revisions which resulted in spondent. He was later posted to Ethiopia, Russian specialist, he began his career in a major liberalization of security laws Morocco and Tanzania as an information Berlin and Moscow in the late 1950s and and procedures. These reforms affected officer specializing in press and cultural early 1960s during the height of the Berlin interrogation, standards of evidence, legal relations. Crisis and Cuban Missile Crisis. proceedings, sentencing and prison condi- In 1972, Mr. Heintzen returned to He advised U.S. Ambassador Llewellyn tions. Amb. Colby then dispatched Mr. Washington, D.C., to work at VOA head- E. Thompson Jr. during discussions with Gould to inspect the government’s imple- quarters in the Africa division, eventually Soviet Foreign Minister Andrei Gromyko, mentation of the new system. He found the becoming division chief. During the last an experience he recounted in a Reflec- South Vietnamese had made surprisingly decade of his career, he helped establish tions column, “A Confrontation in Mos- good progress. and lead the organization’s International cow,” in the February 2009 Foreign Service Next, Mr. Gould was assigned to Ven- Media Training Center for foreign journal- Journal. He also served in Thailand and in ezuela, but was soon called back to Saigon ists, retiring in 1994 as director of the Voice Venezuela. to serve as the American embassy’s legal of America’s international broadcast train- Beginning in the late 1960s, he was the adviser. His responsibilities included deal- ing center. U.S. Information Agency’s assistant direc- ing with suspected “irregular practices” of He was a member of the Council on tor in charge of informational and cultural Vietnamese and American officials. Foreign Relations and the author of the programs for the Soviet Union and Eastern Mr. Gould left Vietnam, and the Foreign self-published memoir, Covering the Cold Europe. Mr. Jenkins later wrote a well- Service, in 1973. He subsequently served War and Other Shadows in the Land of the received memoir about this period, Cold as legal advisor to the Ohio Environmental Midnight Sun (2010). His many honors War Saga (Nimble Books, 2010). Protection Agency and as assistant health include the USIA Superior Honor Award. He served as principal deputy assis- commissioner of the State of New Jersey. A Washington, D.C., resident, Mr. tant secretary of State for congressional He later retired to Gaithersburg, Md. Heintzen belonged to St. Paul’s Lutheran relations under Henry Kissinger before Mr. Gould is survived by his sister, Judy Church in the District. moving to the Commerce Department in Gould, of Plantation, Fla., and his brother, Survivors include his wife of 56 years, the late 1970s. Dr. Philip Gould, of Davie, Fla. Ilse Michels Heintzen of Washington; two Mr. Jenkins retired from government in children, Guian Heintzen of Pelham, N.Y., 1980 as deputy assistant secretary of com- n Harry L. Heintzen, 89, a retired FSO and Annika Heintzen of Rockville, Md.; merce for East-West trade. While in that with the U.S. Information Agency, died and two grandchildren. position, he helped negotiate the first trade of a heart attack on Oct. 11 at Suburban agreement between the United States and Hospital in Bethesda. Md. n Kempton B. Jenkins, 86, a retired China. Harry Leonard Heintzen was born in FSO and Russian specialist, died on Nov. After retirement, he became corporate New Orleans, where he received a bache- 18 at Suburban Hospital in Bethesda, Md., vice president for Armco Steel and was a lor’s degree in 1947 and a master’s degree of complications from heart surgery. lobbyist for the steel industry for 10 years. in 1949, both in English literature, from Mr. Jenkins was born in Jacksonville, Since 1990, he had served as a consultant Tulane University. He served in the Army Fla., and served in the Navy at the end of to corporations seeking to do business Air Forces in Europe during World War II. World War II. He received a bachelor’s overseas, primarily in Russia and the rest Before joining USIA in 1964, Mr. Heint- degree in 1948 from Bowling Green State of the former Soviet Union. He was also

68 FEBRUARY 2013 | THE FOREIGN SERVICE JOURNAL president of the U.S.-Ukraine Business In September of that year, Mr. Sonne n William Benjamin Stubbs III, 78, a Council. began a 30-year career in the Foreign retired FSO, died in Ocala, Fla., on Oct. 21. A longtime resident of Bethesda, Md, Service. He filled diplomatic and consular The only son of William and Rachael Mr. Jenkins was a great supporter of AFSA, positions in Denmark, Germany, French Stubbs, he was born in Valdosta, Ga., and attended many association events. He Indochina, Mexico, Austria, Italy (twice) on Oct. 9, 1934. He attended Druid Hills was also an accomplished tennis player, as and Saudi Arabia. On July 8, 1950, he School in Atlanta and Darlington School in are each of his sons, and an enthusiastic married the former Eva Melitta Hubert, a Rome, Ga. He went on to attend Duke Uni- golfer. A devoted father and grandfather, he native of East Germany whom he had met versity, Emory University and the London will be lovingly remembered as “Poppa.” At while assigned to Hamburg. School of Economics, earning bachelor’s his death, he had been finalizing a second Between overseas assignments, he did and master’s degrees in international rela- book, Airedale Tales: Poppa and His Dogs, graduate studies for one year at Harvard tions. which will be published posthumously. University, and attended the U.S. Army From 1956 to 1959, Mr. Stubbs served in Mr. Jenkins is survived by his devoted War College from 1965 to 1968. He was the U.S. Army, with duties in military intel- wife of 37 years, Lucy; three sons, Peter then detailed for one year to the Depart- ligence in France and Germany. Following of Gill, Mass., and Tim and Michael, both ment of Commerce and later spent time at military service, he joined the faculty at the of Bethesda, Md.; one daughter, Ann of the U.S. Mission to the United Nations. Oxford College of Emory University, where Bethesda, Md.; 14 grandchildren, two Following his retirement in 1977, Mr. he taught until 1962, when he joined the great-grandchildren; and his loyal Airedale, Sonne was employed with a private trade Foreign Service. Monty. He was predeceased by his beloved organization, and then returned to the Mr. Stubbs’ overseas assignments first wife, Cecile (“C”) Jenkins, in 1971, and Department of State as a part-time consul- with the U.S. Information Agency and the his stepson, Robert Greig Crichton, in 2008. tant on freedom of information. He also Department of State included Malaysia, In lieu of flowers, donations may be became a volunteer director with the State Cambodia, Vietnam, Taiwan, Hong Kong, made to the National Rehabilitation Hospi- Department Federal Credit Union, and for Hungary, China, the Philippines and tal, 102 Irving Street NW, Washington DC. several years was its treasurer. Thailand. In 1979 he was among the group In 1989, the Sonnes settled in South- that reopened the American embassy in n C. Melvin Sonne Jr., 89, a retired ampton Township, in Bedford County, Beijing, then served as its spokesman, FSO, died on Nov. 21 at his home in Bedford Pa., where they had purchased a retire- a position he had held in several other County, Pa., following a brief illness. ment home more than a decade earlier. countries. Mr. Sonne was born in Titusville, Pa., There Mr. Sonne pursued his hobby For the four years prior to retirement on Dec. 3, 1922, the son of C.M. Sonne, a of tree farming and developed a deep in 1985, he directed U.S. government doctor, and Lillian Carpenter Sonne. After interest in state and local history. He programs for Indochinese refugees in graduating from Titusville High School in was a member of the Pioneer Historical the Philippines and Thailand. While in 1940, Mr. Sonne obtained his bachelor’s Society, serving as its treasurer until 2003. Thailand he married Antoinette Atienza, degree from the University of Pennsylva- He organized the society’s purchase and originally from Manila. Two previous mar- nia’s Wharton School in 1943. move to its new headquarters, worked riages ended in divorce. He then enlisted in the Army Air Force, to encourage greater local interest in After retirement Mr. Stubbs held several serving as a navigator with the 20th Air the county’s heritage and, in 1994, led consulting positions, spending two years in Force on Saipan from 1944 to 1945 and Bedford’s observance of the Whiskey Washington, D.C., with the Department of completing 35 aerial missions, mostly Rebellion Bicentennial. Justice and a year with the public relations over Japan. He was awarded the Air Medal The Sonnes remained frequent travel- firm Hill and Knowlton in Hong Kong. He and Distinguished Flying Cross, both with lers, going abroad at least once a year as founded his own consulting firm in Hong clusters. Following his discharge in late long as they were able. Kong and managed it until 1991, when he 1945, Mr. Sonne returned to the University Survivors include his wife of 62 years, moved to Florida, residing first on Amelia of Pennsylvania. While teaching part-time Millie, of Southampton; three sons, Peter, Island, then in Jacksonville and, finally, in there, he obtained his master’s degree in Phillip and Neil; five grandchildren; and Ocala. 1947. six great-grandchildren. Having lived much of his adult life in

THE FOREIGN SERVICE JOURNAL | FEBRUARY 2013 69 Asia, Mr. Stubbs in his later years actively assignments included Guayaquil, Buenos pected communists by state-sanctioned sought to promote a better understanding Aires, Bogotá, Guatemala, San José and security forces were all common. of that area among Americans. He served Caracas. He also attended the National In the memo, which remained clas- for six years as a member of the executive War College, class of 1964. sified for 30 years, Vaky wrote that it was committee of the World Affairs Council of In Washington, Mr. Vaky served as a morally wrong to ignore “the violence of Jacksonville, and was a frequent lecturer member of the State Department’s Policy right-wing vigilantes and sheer criminal- on Asian studies at numerous educational Planning Council (1967-1968), and as ity” of the Guatemalan regime. “In the institutions in the region. He was often a senior staff member for Latin America on minds of many in Latin America, we are guest lecturer on cruise ships in Asia and the National Security Council (1969-1970). believed to have condoned these tactics, if other parts of the world. From 1970 to 1972 he was diplomat-in-res- not actually to have encouraged them.” During his years in Hong Kong, Mr. idence at Georgetown University’s School As the Washington Post’s Matt Schudel Stubbs served as vice president of the of Foreign Service. reports, the memo became known as a Foreign Correspondents Club. He was also He served as United States ambassa- touchstone of diplomatic conscience and a member of the Bangkok Foreign Cor- dor to Costa Rica (1972-1974), Colombia courage. And in 1999, after it was declassi- respondents Club, the American Foreign (1974-1976) and Venezuela (1976-1978). fied, President Bill Clinton visited Guate- Service Association, Diplomatic and Con- In July 1978, Ambassador Vaky was mala and apologized for U.S. support of the sular Officers, Retired and the Association appointed assistant secretary of State for country’s repressive regimes in the past. of Former Intelligence Officers. inter-American affairs, a position he held Following his retirement, Amb. Vaky William Stubbs is survived by his wife until his retirement from the Foreign Ser- served as associate dean and research of 29 years, Antoinette Atienza Stubbs of vice on Jan. 1, 1980. professor in diplomacy at the Georgetown Ocala; two sons, Christopher of Cam- Amb. Vaky was known for promot- University School of Foreign Service until bridge, Mass., and Robert of Shillinglee, ing a far-reaching vision of hemispheric 1985, and as adjunct professor of diplo- U.K.; three stepchildren, Miriam Smith, relations based on American values and macy until 1994. Marie Sison and Peter Sison; four grand- for eschewing opportunistic shortcuts. From 1985 to 1992 he was a senior children; six step-grandchildren; one step He guided U.S. policy during periods of associate at the Carnegie Endowment for great-grandchild, Nicholas Rodillas; and volatility in relations with Nicaragua, El International Peace, and senior fellow at two sisters, Rachael “Binky” Farris and Salvador and Guatemala. In particular, the Inter-American Dialogue from 1994 Carolyn Aschemeyer. he helped coordinate the transition of the to 2010. He was a charter member of the Panama Canal from American to Pana- American Academy of Diplomacy, and n Viron Peter (“Pete”) Vaky, 87, manian control, and helped negotiate the was a member of the Board of Directors of a career FSO and ambassador to three release of U.S. Ambassador Diego Asencio the Una Chapman Cox Foundation. countries, died on Nov. 22 of pneumonia at and other diplomats taken hostage in Formerly a member of the Commis- Collington Episcopal Life Care Community Colombia in 1980. sion on Peace of the Episcopal Diocese of in Mitchellville, Md. A year before, in 1979, he had tried to Washington, Amb. Vaky chaired its Com- Born in Corpus Christi, Texas, to Greek persuade Nicaraguan strongman Anasta- mittee of Inquiry, which produced two immigrant parents, Mr. Vaky graduated sio Somoza Debayle to give up power dur- studies on the nuclear dilemma and the from Georgetown University’s School of ing what became known as the Sandinista post-Cold War world. He was a member of Foreign Service in 1947 and received a Revolution. Somoza refused, and the rest the Washington National Cathedral Chap- master’s degree in international relations is history. ter from 1986 to 1994. from the University of Chicago in 1948. Earlier, in 1968, as DCM in Guatemala, Amb. Vaky is survived by his wife of 63 During World War II he served in the U.S. Amb. Vaky had written a memo to his years, Luann Colburn Vaky of Mitch- Army Signal Corps. superiors at the State Department, oppos- ellville; three sons, Peter Colburn Vaky Mr. Vaky joined the Foreign Service in ing U.S. support for the counterterrorist of Atlanta, Ga., Paul Stephan Vaky of 1949, beginning a distinguished 31-year practices of the Guatemalan government. Bogotá, Colombia, and Matthew Alex- diplomatic career focused primarily on At the time, kidnapping, brutal interroga- ander Vaky of Gaithersburg, Md.; and 10 South and Central America. His overseas tions and political assassinations of sus- grandchildren. n

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n TEMPORARY HOUSING SERVING FOREIGN SERVICE PERSONNEL FOR 25 YEARS, ESPE- CIALLY THOSE WITH PETS. Selection of condos, townhouses and CORPORATE APARTMENT SPECIALISTS: Abundant experience single-family homes accommodates most breeds and sizes. All within a working with Foreign Service professionals and the locations to best short walk of Metro stations in Arlington. Fully furnished and equipped serve you: Foggy Bottom, Woodley Park, Cleveland Park, Chevy Chase, 1-4 bedrooms, within per diem rates. Rosslyn, Ballston, Pentagon City. Our office is a short walk from NFATC. EXECUTIVE LODGING ALTERNATIVES. E-mail: [email protected] One-month minimum. All furnishings, housewares, utilities, telephone and cable included. TUNRKEY HOUSING SOLUTIONS. Experience working with Foreign Tel: (703) 979-2830 or (800) 914-2802. Fax: (703) 979-2813. Service professionals on standard and distinctive temporary housing E-mail: [email protected] solutions in the D.C. area’s best locations (NW DC, North Arlington, Web site: www.corporateapartments.com Crystal/Pentagon City, Suburban Maryland). Northern Virginia-based company offers local customer service and a personalized touch. SHORT-TERM RENTALS • TEMPORARY HOUSING Tel: (703) 615-6591. E-mail: [email protected] WASHINGTON, D.C., or NFATC TOUR? EXECUTIVE HOUSING Web site: www.tkhousing.com CONSULTANTS offers Metropolitan Washington, D.C.’s finest portfolio of short-term, fully furnished and equipped apartments, townhomes DISTRICT PEAKS CORPORATE HOUSING: Choose from our wide and single-family residences in Maryland, D.C. and Virginia. range of fully furnished properties, all located in DC’s best neighbor- In Virginia: “River Place’s Finest” is steps to Rosslyn Metro and hoods with access to Metro stops: Dupont, Georgetown, Foggy Bottom, Georgetown, and 15 minutes on Metro bus or State Department shuttle Logan Circle, Capitol Hill and many more! One-month minimum; TDY to NFATC. For more info, please call (301) 951-4111, or visit our Web site per diem rates accepted! at www.executivehousing.com. Tel: (720) 404-2902. Fax: (303) 697-8343. E-mail: [email protected] ARLINGTON FLATS: 1-BR, 2-BR, and 4-BR flats in 2 beautiful buildings Web site: www.districtpeaksch.com 3 blocks from Clarendon Metro. Newly renovated, completely furnished, incl. all utilities/Internet/HDTV w/DVR. Parking, maid service, gym, TOWNHOME FOR RENT. Bright end unit in quiet, gated development rental car available. Rates start at $2,600/month. Per diem OK. Washington, D.C. Two bedrooms, office, and garage; convenient to shop- Min. 30 days. ping and transportation (10-minute walk to Union Station). All utilities Tel: (571) 235-4289. included; rent depends on length of stay (one-month minimum); will E-mail: [email protected] tailor to per diem. For details, please e-mail [email protected] or See 2-BR at Web site: http://www.postlets.com/rtpb/1908292 call (202) 552-9873.

DC FURNISHED EXTENDED STAY in Penn Quarter/Chinatown. The PRISTINE FAIRFAX TOWNHOME end unit available now. Three levels, Lansburgh, 425 8th Street NW. 1-BR and 2-BR apartments w/fully 2 master bedroom suites, 3.5 baths; granite/stainless steel kitchen. equipped kitchens, CAC & heat, high-speed Internet, digital cable TV Approx. 8 miles from Metro; near shopping, entertainment. $2,600 per w/HBO, fitness center w/indoor pool, resident business center, 24-hour month. reception desk, full concierge service, secure parking available, con- Contact Andrea Accolla. trolled-entry building, 30-day minimum stay. Walk to Metro, FBI, DOJ, Tel: (703) 400-0388. EPA, IRS, DOE, DHH, U.S. Capitol. Rates within government per diem. E-mail: [email protected] Discount for government, diplomats. Visit our Web site at: Listing: http://mrislistings.mris.com/DE.asp?k=3165507X4SSW&p www.TheLansburgh.com or call the leasing office at (888) 313-6240. =DE-176731341-732 n REAL ESTATE CAPITOL HILL, FURNISHED housing: 1-3 blocks to Capitol. Nice places, great location. Well below per diem. Short-term OK. GSA small HEADED TO MAIN STATE? Time to Buy or Sell in DC or Virginia? Tap business and veteran-owned. into my 25+ years of experience providing FS personnel with exclusive Tel: (202) 544-4419. representation. By focusing on your needs, my effective approach makes Web site: www.capitolhillstay.com the transition easier for you and your family. References gladly provided. Contact Marilyn Cantrell, Associate Broker (licensed in VA and DC), DC GUEST APARTMENTS: Not your typical “corporate” apartments— McEnearney Associates, McLean VA. we’re different! Located in Dupont Circle, we designed our apartments Tel: (703) 860-2096. as places where we’d like to live and work—beautifully furnished and E-mail: [email protected] fully equipped (including Internet & satellite TV). Most importantly, we Web site: www.MarilynCantrell.com understand that occasionally needs change, so we never penalize you if you leave early. You only pay for the nights you stay, even if your plans PROFESSIONAL REAL ESTATE services provided by John Kozyn of change at the last minute. We also don’t believe in minimum stays or Coldwell Banker in Arlington, Va. Need to buy or sell? My expertise will extra charges like application or cleaning fees. And we always work with serve your specific needs and time frame. FSO references gladly pro- you on per diem. vided. Licensed in VA and DC. Tel: (202) 536-2500. Tel: (202) 288-6026. E-mail: [email protected] E-mail: [email protected] Web site: www.dcguestapartments.com Web site: www.cbmove.com/johnkozyn

FIND PERFECT HOUSING by using the free Reservation Service HOUSE FOR RENT in North Arlington. 3 bedrooms, 1 bath, garage and Agency, Accommodations 4 U. fenced yard; pets OK. Located 1 mile from FSI and Ballston Metro, 2 Tel: (843) 238-2490. blocks from Safeway and bike path. $2,450/month unfurnished; furniture E-mail: [email protected] negotiable. Available in June; short-term lease negotiable. Web site: www.accommodations4u.net Contact Richard Heffern. E-mail: [email protected]

72 FEBRUARY 2013 | THE FOREIGN SERVICE JOURNAL n REAL ESTATE n TRANSPORTATION

SARASOTA, FLA. PAUL BYRNES, FSO retired, and Loretta Friedman, PET MOVING MADE EASY. Club Pet International is Coldwell Banker, offer vast real estate experience in assisting diplomats. a full-service animal shipper specializing in domes- Enjoy gracious living, no state income tax, and an exciting market. tic and international trips. Club Pet is the ultimate Tel: (941) 377-8181. pet-care boarding facility in the Washington, D.C., E-mail: [email protected] (Paul) or [email protected] (Loretta) metropolitan area. Tel: (703) 471-7818 or (800) 871-2535. LARGE FAMILY HOME FOR SALE IN E-mail: [email protected] Web site: clubpet.com MONTGOMERY COUNTY. $425K, five bedrooms, 2.5 baths. Outstanding cul de sac location. Walk n PROPERTY MANAGEMENT to schools K-12, modernized shopping center, recreation center. 10-minute drive to Rockville or NORTHERN VIRGINIA PROPERTY MANAGEMENT. Are you look- Twinbrook Metro Stations. ing for a competent manager to take care of your home when you go to Seller Retired FSO Carl Saggio. post this summer? Based in McLean, Va., Peake Management, Inc. has E-mail: [email protected] worked with Foreign Service officers for over 30 years. We are active INFO: Realtor Web site with photos. Web site: www.soldbyben.com board members of the Foreign Service Youth Foundation and many Click on “My Listings.” other community organizations. We really care about doing a good job in n SHOPPING renting and managing your home, so we’re always seeking cutting-edge technology to improve service to our clients, from innovative market- ing to active online access to your account. We offer a free, copyrighted CRAVING GROCERIES from home? Order non-perishable grocery products from our physical grocery store ($4.95 shopping fee), and we Landlord Reference Manual to guide you through the entire preparation, will ship the order (additional cost) via the Dulles mail sorting facility or rental and management process, or just give our office a call to talk to the APO/FPO/DPO address. Click here for full details. agent specializing in your area. Peake Management, Inc. is a licensed, • www.lowesfoodstogo.com full-service real estate broker. • Choose the Robinhood Road store in Winston-Salem, N.C. 6842 Elm St., Suite 303, McLean VA 22101. • Pay online via PayPal. Tel: (703) 448-0212. E-mail: [email protected] n ADVERTISE YOUR PRODUCT OR SERVICE Web site: www.peakeinc.com

PLACE A CLASSIFIED AD: $1.40/word (10-word min). E-mail: [email protected]. Tel: (202) 944-5507. Fax: (202) 338-8244.

THE FOREIGN SERVICE JOURNAL | FEBRUARY 2013 73 REAL ESTATE & PROPERTY MANAGEMENT

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74 FEBRUARY 2013 | THE FOREIGN SERVICE JOURNAL THE FOREIGN SERVICE JOURNAL | FEBRUARY 2013 75 REAL ESTATE & PROPERTY MANAGEMENT

Federal Employee Defense Meyerson Group, Inc., The / 74 Services / 9 Promax Management Inc. / 77 The Hirshorn Company / Property Specialists, Inc. / 75 Back Cover Stuart & Maury, Inc. / 75 ADWhen contacting one ofINDEX our advertisers, kindly mention Washington Management you saw their advertisement in The Foreign Service Journal. MISCELLANEOUS Services / 74 AFSA Memorial Marker / 73 WJD Management / 75 CLASSIFIED ADS HOUSING AFSA Scholarship Fund / Classifieds / 71, 72, 73 Attaché Corporate Inside Back Cover ANNOUNCEMENTS Housing / 30 Diplomatic Automobile AFSA Dissent Award FINANCIAL, LEGAL AND Capitol Hill Stay / 28 Sales / 3 Nominations / 18 TAX SERVICES CAS–Corporate Apartment Georgetown Journal / 76 Change of Address / 11 Ameriprise Financial / 47 Specialists / 19 Inside a U.S. Embassy / David Mortimer / 55 Extended Stay Housing Inside Front Cover EDUCATION Ameriprise Financial / 47 Online / 30 Marketplace / 10 FSJ Education Archives / 67 Irving and Company / 43 Pied-a-Terre Properties State Department Reading White Mountain School, Lucas, Horsfall, Murphy & Ltd. / 35 List / 77 The / 19 Pindroh, LLP (LHMP) / 53 Signature Properties / 28 Tetra Tech / 23, 25, 27 Luxenberg & Johnson, P.C. / 29 SuiteAmerica / 29 MCG Financial Planning / 47 TurnKey Housing Solutions / 35 REAL ESTATE & PROPERTY Shaw Bransford & MANAGEMENT Roth P.C. / 51 INSURANCE Cabell Reid, LLC / 76 AFSPA – Term Life Executive Housing Consultants, Insurance / 67 Inc. / 77 Clements Worldwide / 4 McGrath Real Estate Embassy Risk Services / 74 Management / 36

76 FEBRUARY 2013 | THE FOREIGN SERVICE JOURNAL THE FOREIGN SERVICE JOURNAL | FEBRUARY 2013 77 LOCAL LENS KPARIGU, GHANA BY ALDA KAUFFELD n TAKEN WITH A NIKON D7000.

hese young men in Kparigu are transporting harvested soybeans by bicycle to a local market. In remote areas of northern Ghana, where transportation options are limited, farm families use any means at their disposal to move their products to market. USAID, through Feed the Future, supports Ghanaian farmers to improve the quantity and quality of their agriculture Tproduction, improving local livelihoods. n Alda Kauffeld is a Foreign Service spouse posted in Accra, where she is a local hire personal services contractor with USAID, serving as a develop- ment outreach coordinator. She is also a professional photographer, and was just awarded the “Best in Show” for the Art in Embassies “Through Their Eyes” worldwide Defense Department and State Department Photography Contest. Go to http://aldakauffeld.imagekind.com/ to see more of her photos.

Enter your photography to be featured in Local Lens! Images must be high resolution (at least 300 dpi at 8 x 10”). Please submit a short description of the scene/event, as well as your name, brief biodata and the type of camera used to [email protected].

78 FEBRUARY 2013 | THE FOREIGN SERVICE JOURNAL