(3) The employee shall not accept a fee, compensation, gift, payment of expense, or any other thing or monetary value in circumstances in which acceptance may result in, or create the appearance of, conflicts of interest.

(E.O. 11408, 33 F.R. 6459; 3 CFR, 1968 Comp.) [31 F.R. 4391, Mar. 15, 1966, as amended at 33 F.R. 9167, June 21, 1968]

§ 601.735-14 Gifts, entertainment, and favors.

(a) (1) An employee shall not receive or solicit, directly or indirectly, for himself or persons with whom he has family, business, or financial ties, anything of economic value as a gift, gratuity, loan, entertainment, or favor, which might reasonably be interpreted by others as affecting his independence or impartiality, from any person, corporation, or group, if the employee has reason to believe that the entity:

(i) Has or is seeking to obtain contractual or other business or financial relationships with the employee's agency;

(ii) Conducts operations or activities which are regulated by the employee's agency; or

(iii) Has interests which may be substantially affected by the employee's performance or nonperformance of his official duty.

(2) Exceptions: The following exceptions for all employees of ACDA are permitted:

(i) Acceptance of things of economic value arising from obvious family or personal relationships (such as those between the parents, children, or spouse of the employee and the employee) when the circumstances make it clear that it is those relationships rather than the business of the persons concerned which are the motivating factors:

(ii) Acceptance of food and refreshments of nominal value on infrequent occasions in the ordinary course of a luncheon or dinner meeting or other meeting or on an inspection tour where employee may properly be in attendance;

an

(iii) Acceptance of loans from banks or other financial institutions on customary terms to finance proper and usual activities of employees, such as home mortgage loans; and

(iv) Acceptance of unsolicited advertising or promotional material, such as pens, pencils, note pads, calendars, and other items of nominal intrinsic value.

(b) An employee shall not solicit a contribution from another employee for a gift to an official superior, make a donation as a gift to an official superior, or accept a gift from an employee receiving less pay than himself (5 U.S.C. 7351). However, this paragraph does not prohibit a voluntary gift of nominal value or donation in a nominal amount made on a special occasion such as marriage, illness, or retirement.

(c) An employee shall not accept a gift, present, decoration, or any other thing from a foreign government unless authorized by Congress as provided by the Constitution and in 5 U.S.C. 7342.

(d) Neither this section nor § 601.73513 precludes an employee from receipt of bona fide reimbursement, unless prohibited by law, for expenses of travel and such other necessary subsistence as is compatible with this part for which no Government payment or reimbursement is made. However, this paragraph does not allow an employee to be reimbursed, or payment to be made on his behalf, for excessive personal living expenses, gifts, entertainment, or other personal benefits, nor does it allow an employee to be reimbursed by a person for travel on official business under agency orders.

[31 F.R. 4391, Mar. 15, 1966, as amended at 32 F.R. 12944, Sept. 12, 1967]

§ 601.735-15 Financial interests.

(a) (1) Neither a regular nor a special Government employee may participate in his governmental capacity in any matter in which he, his spouse, minor child, associate or organization with whom he has a business relationship, or person or organization with whom he is negotiating for employment has a financial interest (18 U.S.C. 208). Such an employee shall not (i) have a direct or indirect financial interest that conflicts substantially, or appears to conflict substantially, with his Government duties and responsibilities; or (ii) engage in, directly or indirectly, a financial transaction as a result of, or primarily relying on, information obtained through his Government employment.

(2) Exceptions: Section 208 of 18 U.S.C. permits the following exception for a regular as well as a special Government employee: He may be granted exemption from this restriction provided: (i) He first advises the head of this Bureau or Office of the nature and circumstances of the particular matter and makes full disclosure of the financial interest and he receives in advance a written determination by the Bureau or Office head that the outside financial interest is deemed not substantial enough to have an effect on the integrity of his services, or (ii) the financial interest has been exempted by general rule or regulation published in the FEDERAL REGISTER as being too remote or to inconsequential to affect the integrity of Government officers' or employees' services.

(b) Pursuant to the provisions of section 208(b) (2) of title 18, United States Code, the following financial interests of the Agency's employees are hereby exempted from the requirements of paragraph (a) (1) of this section and of 18 U.S.C. sec. 208(a) as being too remote or too inconsequential to affect the integrity of the services of the Agency's employees:

(1) Investments in State and local government bonds; and stocks, bonds, or policies in a mutual fund, investment company, bank, or insurance company, provided that in the case of a mutual fund, investment company, or bank, the fair value of such stock or bond holding does not exceed 1 percent of the value of the reported assets of the mutual fund, investment company, or bank. In the case of a mutual fund or investment company, this exemption applies only where the assets of the fund or company are diversified; it does not apply where the fund or company specializes in a particular industry or commodity.

(2) Interest in an investment club or other group organized for the purpose of investing in equity or debt securities, provided, that the fair value of the interest involved does not exceed $5,000, and that the interest does not exceed onefourth of the total assets of the investment club or group.

(3) (i) Financial interests in an enterprise in the form of shares in the ownership thereof, including preferred and common stocks whether voting or non

voting, and warrants to purchase such shares;

(ii) Financial interests in an enterprise in the form of bonds, notes, or other evidences of indebtedness; Provided, That, in the case of subdivisions (i) and (ii) of this subparagraph: (a) The total market value of the financial interests described in said subdivisions with respect to any individual enterprise does not exceed $5,000; and (b) the holdings in any class of shares, or bonds, or other evidence of indebtedness, of the enterprise do not exceed 1 percent of the dollar value of the outstanding shares, or bonds or other evidences of indebtedness in said class.

(4) For purposes of this paragraph, computations of dollar-value of financial interests in enterprises shall be based

on:

(i) Market value in the case of stocks listed on national exchanges; or

(ii) Over-the-counter market quotations as reported by the National Daily Quotation Service in the case of unlisted stocks; or

(iii) Net book value (assets less liabilities) in the case of stocks not covered by the preceding two categories.

(iv) Face value shall be used for valuation purposes in the case of debt securities.

(c) Neither a regular nor a special Government employee may, directly or indirectly make use of, or permit those with whom he has family, business, or financial ties to make use of, official information obtained through or in connection with his Government employment and not made available to the general public, for the purpose of furthering a private interest, including speculation in commodities, land, and securities.

(d) This paragraph does not preclude teaching, speaking, or writing by employees duly authorized under this part. Further, this paragraph does not preclude an employee from having a financial interest or engaging in financial transactions to the same extent as a private citizen not employed by the Government so long as it is not prohibited

by law, the Executive order, this section, or the agency regulations.

(Sec. 41, 76 Stat. 1119, sec. 503, 75 Stat. 631; 18 U.S.C. 208, 22 U.S.C. 2581) [31 F.R. 4391, Mar. 15, 1966, as amended at 35 F.R. 4621, Mar. 17, 1970]

§ 601.735-16 Private compensation for services to the Government.

A regular officer or employee of the Government, as contrasted with a special Government employee, may not receive any salary, or supplementation of his Government salary from a private source as compensation for his services to the Government (18 U.S.C. 209). This section does not apply to special Government employees nor does it prevent a regular officer or employee from (a) continuing his participation in a bona fide pension plan or other employee welfare or benefit plan maintained by a former employer, or (b) receiving payments or accepting contributions, awards, or other expenses under the terms of the Government Employees Training Act.

An employee shall not directly or indirectly use, or allow the use of, Government property of any kind, including property leased to the Government, for other than officially approved activities. An employee has a positive duty to protect and conserve Government property, including equipment, supplies, and other property entrusted or issued to him.

§ 601.735-18 Gambling, betting, and lotteries.

An employee shall not participate, while on Government-owned or leased property or while on duty for the Government, in any gambling activity including the operation of a gambling device, in conducting a lottery or pool, in a game for money or property, or in selling or purchasing a numbers slip or ticket.

Subpart B-Activities Relating to Unofficial or Outside Organizations

§ 601.735-21 Participation in activities of employee organizations.

In compliance with the provisions of Executive Order 10988, dated January 17, 1962, employees of the Arms Control and Disarmament Agency shall have, and shall be protected in the exercise of, the right, freely and without fear of penalty or reprisal, to form, join, and assist any employee organization or to refrain from any such activity.

(a) Definition of term "employee organization". The term "employee organization" means any lawful association, labor organization, federation, council, or brotherhood having as a primary purpose the improvement of working conditions among Federal employees, or any craft, trade or industrial union whose membership includes both Federal employees, and employees of private organizations. The term "employee organization" shall not include any organization (1) which asserts the right to strike against the Government of the United States or any agency thereof, or to assist or participate in any such strike, or which imposes a duty or obligation to conduct, assist or participate in any such strike, or (2) which advocates the overthrow of the constitutional form of Government in the United States, or (3) which discriminates with regard to the terms or conditions of membership because of race, color, creed, or national origin.

(b) Responsibility of the Executive Director. The Executive Director of the Agency shall be responsible for consulting with representatives of any employee organization or organizations: (1) To determine policies and procedures with respect to recognition of employee organizations; (2) to establish procedures for determining appropriate employee units; (3) to formulate policies and practices regarding consultation with representatives of employee organizations, other organizations and individual employees; and (4) to set policies with respect to the use of Agency facilities by employee organizations.

§ 601.735-22

Participating in activities

of private organizations.

(a) In participating in the programs and activities of any private organization, employees shall make clear that such participation constitutes neither official ACDA connection with such organization nor official sponsorship or sanction of the viewpoints they may express as individuals.

(b) In such participation, employees may not accept a fee, compensation, gift, payment of expense, or any other thing of monetary value (see also § 601.735-14) in circumstances in which acceptance may result in, or create the appearance of, conflicts of interest or otherwise reflect discredit upon the Government.

(c) A regular officer or employee may not permit the use of his name in the advertising matter of any organization commercializing the result of research work conducted by the Agency, or through contract with the Agency, nor may he accept office in such organization. § 601.735-23 Organizations concerned with foreign policy.

With respect to private organizations which are concerned with foreign policy or international realtions, either in general or in some specific economic, political or cultural field, the following rules shall apply:

(a) Regular officers and employees. (1) Unless specially permitted to do so, no regular officer or employee shall serve as an adviser, officer, director, teacher, sponsor, committee chairman, or in any official capacity, or permit his name to be used on a letterhead, regardless of whether his title or his connection with ACDA is mentioned. This is not intended to restrict ordinary membership in any organization.

(2) Special permission to assume or to continue a connection prohibited by the above paragraph may be granted in cases where the interests of the Government and ACDA would not be adversely affected. To request such permission, or to determine whether the provisions of this section are applicable to a particular case, the employee shall address to the Executive Director a memorandum setting forth the pertinent facts. He will consult other interested Bureaus and

Offices and grant or refuse the requested permission.

(b) Special Government employees. A special Government employee is restricted only in that he may not use his ACDA designation as consultant or adviser except in connection with his work for ACDA.

§ 601.735-24 Membership in subversive organizations.

The provisions of 5 U.S.C. 7311 are quoted for the information of all employees:

An individual may not accept or hold a position in the Government of the United States or the government of the District of Columbia if he

(1) Advocates the overthrow of our constitutional form of government;

(2) Is a member of an organization that he knows advocates the overthrow of our constitutional form of government;

(3) Participates in a strike, or asserts the right to strike, against the Government of the United States or the government of the District of Columbia; or

(4) Is a member of an organization of employees of the Government of the United States or of individuals employed by the government of the District of Columbia that he knows asserts the right to strike against the Government of the United States or the government of the District of Columbia. [32 FR. 12944, Sept. 12, 1967]

Subpart C-Teaching, Speaking, Writing for Publication, and Related Activities

Employees are encouraged to engage in teaching, lecturing, and writing that is not prohibited by law, the Executive order, this part, or the agency regulations. However, an employee shall not, either for or without compensation, engage in teaching, lecturing, or writing, including teaching, lecturing, or writing for the purpose of the special preparation of a person or class of persons for an examination of the Commission or Board of Examiners for the Foreign Service, that depends on information obtained as a result of his Government employment, except when that information has been made available to the general public or will be made available on request, or when the agency head gives written authorization for use of nonpublic informa

tion on the basis that the use is in the public interest. In addition, an employee who is a Presidential appointee covered by section 401(a) of the order shall not receive compensation or anything of monetary value for any consultation, lecture, discussion, writing, or appearance the subject matter of which is devoted substantially to the responsibilities, programs, or operations of his agency, or which draws substantially on official data or ideas which have not become part of the body of public information.

(E.O. 11408, 33 F.R. 6459; CFR, 1968 Comp.) [33 F.R. 9167, June 21, 1968]

§ 601.735-32 Protecting classified information.

No employee shall include in any public course of instruction, speech, panel discussion, or related activity any classified information or material to which he has access through his ACDA employment.

§ 601.735-33 Acceptance of invitations to speak or to accept teaching engage

ments.

Participation of ACDA personnel in speaking engagements can greatly assist public understanding of U.S. arms control and disarmament policies and positions. In order, however, to reduce risk of unintentional security disclosure or contravention of Government policy, ACDA employees, including special Government employees, shall obtain prior approval, as follows:

(a) Acceptance of invitations to speak. Any invitation to appear as a representative of the Agency or to speak, comment, or participate in a conference on matters related to its work shall be referred to the Public Affairs Office for decision and action. Information on the sponsoring organization, date, place, subject matter, type of audience, and estimated travel expenses as indicated on an Agency form must be in the Public Affairs Office before invitations may be accepted. The Public Affairs Office shall control all negotiations with the prospective host and may authorize or approve outside payment of travel and reasonable subsistence expenses under appropriate circumstances.

(b) Clearance of texts of public addresses. The full text or detailed outline (as agreed by the employee and Public Affairs Adviser) of each public address on U.S. foreign policy or ACDA activities shall be submitted to the Public Affairs Adviser for clearance with the Agency Classification Officer and for appropriate clearance within ACDA and, as deemed necessary, outside the Agency.

(c) Release to news media. The text or outline of any public address, after clearance and coordination, may be released to news media by the Public Affairs Adviser, if appropriate.

(d) Professional meetings and conferences. When an employee is invited to participate in a public professional meeting, conference, or discussion panel on matters related to the work of the Agency where, because of the nature of the public appearance, no prepared script or outline will be available for clearance. the employee must obtain clearance of acceptance from the Public Affairs Adviser and from the Agency Classification Officer. The participant himself is responsible for ensuring that his remarks involve no violation of security and are consistent with United States policy.

(e) Acceptance of teaching engagements. (1) Any employee who contemplates acceptance of a teaching engagement shall notify the public Affairs Adviser of his intention. He shall also submit to the Office of the Executive Director information covering the name of the educational institution, the frequency of classes and periods of time involved, and a comprehensive description of the course to be taught. If the subject matter does not involve United States policy or ACDA activities, the Executive Director may approve acceptance of the teaching engagement. If the subject matter includes either of the above-mentioned matters, only the Director of ACDA may approve the employee's acceptance of the teaching engagement. All approvals of teaching engagements must be renewed prior to the beginning of each school year.

(2) Exception: A special Government employee must obtain the required clearances only when the subject matter involves U.S. policy or ACDA activities to