80 STAT. ]
PUBLIC LAW 89-554-SEPT. 6, 1966
(2) conditions of environment which differ substantially from conditions of environment in the continental United States and warrant an allowance as a recruitment incentive; or (3) both of these factors. The allowance may not exceed 25 percent of the rate of basic pay. Except as otherwise specifically authorized by statute, the allowance is paid only in accordance with regulations prescribed by the President establishing the rates and defining the area, groups of positions, and classes of employees to which each rate applies. (b) An employee entitled to a cost-of-living allowance under section 5924 of this title may not be paid an allowance under subsection (a) of this section based on living costs substantially higher than in the District of Columbia. § 5942. Allowance based on duty on California offshore islands Notwithstanding section 5536 of this title, an employee who is assigned to duty, except temporary duty, on one of the California offshore islands is entitled, in addition to pay otherwise due him, to an allowance of not to exceed $10 a day. However, the allowance shall be paid under regulations prescribed by the President establishing the rates at which the allowance will be paid, and defining the areas and groups of positions to which the rates apply. § 5943. Foreign currency appreciation allowances (a) The President, under such regulations as he may prescribe and on recommendation of the Director of the Bureau of the Budget, may meet losses sustained by employees and members of the uniformed services while serving in a foreign country due to the appreciation of foreign currency in its relation to the American dollar. Allowances and expenditures under this section are not subject to income taxes. (b) Annual appropriations are authorized to carry out subsection (a) of this section and to cover any deficiency in the accounts of the Secretary of the Treasury, including interest, arising out of the arrangement approved by the President on July 27, 1933, for the conversion into foreign currency of checks and drafts of employees and members of the uniformed services for pay and expenses. (c) Payment under subsection (a) of this section may not be made to an employee or member of a uniformed service for a period during which his check or draft was converted into foreign currency under the arrangement referred to by subsection (b) of this section. (d) The Director of the Bureau of the Budget shall report annually to Congress all expenditures made under this section. § 5944. Illness and burial expenses; native employees in foreign countries (a) The head of an Executive department or military department which maintains a permanent staff of employees in foreign countries may pay the burial expenses and expenses in connection with the last illness and death of a native employee of his department in a country in which the Secretary of State determines it is customary for employers to pay these expenses. Payment of these expenses may not exceed $100 in any one case. (b) The head of an Executive department or military department which maintains a permanent staff of employees in foreign countries in which the custom referred to by subsection (a) of this section does not exist, on finding that the immediate family of the deceased is destitute, may pay such of the expenses referred to by subsection (a) of this section within the limitations in that subsection to the family, heirs at law, or persons responsible for the debts of the deceased, as the em-
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