legally constituted fiduciary. All other information in the file shall be treated as confidential and will be used only in determining the status of the cases inspected or in connection with the presentation to officials of the Veterans Administration of the claim of the claimant. The managers of field stations and the directors of the services concerned in central office will each designate a responsible officer to whom requests for all files must be made, except that managers of district offices and centers with district office activities will designate two responsible officials, recommended by the service directors concerned, one responsible for claims and allied folders and the other for insurance files.

(2) In the case of a living veteran a representative acting under a power of attorney from any person not acting on behalf of the veteran will not be permitted to review the records of the veteran or be furnished any information therefrom to which the person is not entitled, i.e., information not relating to such person alone. Powers of attorney submitted by the other person will be considered "limited" and will be so noted when associated with the veteran's records.

(3) When power of attorney does not obtain, the accredited representative will explain to the designated officer of the Veterans Administration the reason for requesting information from the file, and the information will be made available only when in the opinion of the designated officer it is justified; in no circumstances will such representatives be allowed to inspect the file; in such cases a contact report will be made out and attached to the case, outlining the reasons which justify the verbal or written release of the information to the accredited representative. In any case where there is an unrevoked power of attorney, no persons or organizations other than the one named in the power of attorney shall be afforded information from the file; and when any claimant has filed notice with the Veterans Administration that he does not want his file inspected, such file will not be made available for inspection.

[Paragraph (a) amended, 24 F.R. 8174, Oct. 8, 1959]

Prior Amendments

1959: 24 FR. 2528, Apr. 1.

GRANTS TO THE REPUBLIC OF THE

PHILIPPINES [REVISED]

EDITORIAL NOTE: The following regulations (§§ 1.600-1.627), approved by the Director of the Bureau of the Budget, implement the "Agreement Between the Government of the United States of America and the Government of the Republic of the Philippines on the Use of the Veterans Memorial Hospital and the Provision of Medical Care and Treatment of Veterans by the Government of the Philippines, and the Furnishing of Grantsin-Aid Thereof by the Government of the United States of America," dated June 30, 1958 (Treaties and Other International Acts Series 4067), and are issued pursuant to the delegation of authority to the Administrator of Veterans Affairs by the President of the United States, dated June 18, 1958, such action having been taken under the provisions of 38 U.S.C. 632.

NOTE:

1.612 and 1.617-1.626 were revoked in this revision.

§ 1.600 Scope of grants program.

Subject to the applicable appropriation and the other acts of the United States Congress, and controlling Veterans Administration regulations, the Administrator of Veterans Affairs will enter into a contract with the Director of the Veterans Memorial Hospital subject to the approval of the Secretary of National Defense of the Republic of the Philippines, for hospital care of Commonwealth Army veterans determined by the Administrator to need hospital care for service-connected disabilities, as prescribed by 38 U.S.C. 632, as follows:

(a) To provide reimbursement to the Republic of the Philippines by the Government of the United States, at a per diem rate to be jointly determined for each fiscal year by the two Governments to be fair and reasonable;

(b) To provide reimbursement for veterans' travel expenses incident to such hospitalization which are authorized in advance by the Administrator of Veteran Affairs;

(c) To provide that the period of the contract may be for a period of not more than five consecutive fiscal years beginning July 1, 1958; and

(d) To provide that the total of payments for such hospital care plus any payments for authorized travel expenses incident to the hospitalization of Com

For the purpose of determining eligibility for hospital treatment for which reimbursement will be made by the Veterans Administration, the following definitions shall apply:

(a) Veteran. The term "veteran" shall mean a person who has been determined by the Veterans Administration to have served in the organized military forces of the Government of the Commonwealth of the Philippines while such forces were in the service of the Armed Forces of the United States pursuant to the military order of the President of the United States, dated July 26, 1941, including, among such military forces, organized guerrilla forces under commanders appointed, designated, or subsequently recognized by the Commander in Chief, Southwest Pacific Area, or other competent authority in the Army of the United States, and who was discharged or released from such service under conditions other than dishonorable.

nation by mutual consent of the two Governments.

(b) Use by the Republic of the Philippines of the facilities of the Veterans Memorial Hospital shall be discretionary with the Republic of the Philippines except that (1) first priority of admission and retention in such hospital shall be accorded Commonwealth Army veterans needing hospital care for serviceconnected disabilities, and (2) shall not preclude the use of available facilities in such hospital on a contract basis for hospital care or medical services for persons eligible therefor from the Veterans Administration.

(c) Hospitalization in the Philippines of Commonwealth Army veterans found by the Veterans Administration to be in need of hospitalization for serviceconnected disabilities shall not be limited to hospitalization in the Veterans Memorial Hospital, but that hospital will be used to the maximum extent feasible in the hospitalization of such veterans.

§ 1.604 Persons eligible for hospital treatment for which reimbursement will be made by the Veterans Administration.

The Veterans Administration shall reimburse the Philippine Government to the extent permissible under 38 U.S.C. 632, for the treatment of those persons who are veterans as described in that act (see § 1.602 (a)) and are in need of hospitalization for disabilities determined by the Veterans Administration under laws which it administers to be service connected (see § 1.602(b)), whether in the Veterans Memorial Hospital or in any other hospital in the Philippines which has a subcontract with the Philippine Government for hospitalization of veterans as described in this section.

§ 1.605 Hospitalization prior to determination by Veterans Administration of legal eligibility and medical need. (a) The determination of legal eligibility and medical need for hospitalization of Commonwealth Army veterans for treatment of service-connected disabilities rests exclusively with the Veterans Administration.

(b) The Secretary of National Defense of the Philippine Government may, depending on the circumstances, either

hospitalize a Commonwealth Army veteran prior to an official determination by the Veterans Administration of his legal eligibility and medical need; or require such determination prior to the furnishing of hospital care. However, no liability for reimbursement shall accrue to the Veterans Administration for any hospital care of a Commonwealth Army veteran until legal eligibility and medical need for hospital care have been determined by the Veterans Administration. When such determination has been made, reimbursement for the care furnished from the date of admission will be made, provided the Veterans Administration was notified within 72 hours from the date of admission. Such notification may be made by telephone, telegram, letter, etc. An exception to the 72-hour limitation may be made by the Chief Medical Officer, Veterans Administration Regional Office, Manila, when the circumstances warrant the decision by him that delay in notification was fully justified. Reimbursement, otherwise, will be made from the date of receipt of such notification. Hospital care in the Philippines of Commonwealth Army veterans determined by the Veterans Administration to be in need of such care shall not be limited to the Veterans Memorial Hospital. Such facilities will be used, however, to the maximum extent feasible in the hospitalization of such veterans.

§ 1.606

Determination of eligibility.

(a) Upon receipt of any application for hospitalization under the terms of the act the Veterans Administration shall make due and diligent effort to determine without delay the legal eligibility and medical need of the applicant for hospitalization. The Secretary of National Defense of the Philippine Government, or such other officer as he may designate, shall be furnished an official notification of the determination which has been made respecting such applicant's eligibility for such hospitalization.

(b) Determinations by the Department of Defense of the United States as to the military service shall be accepted by the Veterans Administration. In those cases in which Veterans Administration shall have information which it deems reliable and in conflict with the information upon which a determination was made, such cases, together with the

information in the possession of the Veterans Administration, shall be referred to the Department of Defense of the United States for reconsideration and redetermination. Such determinations and redeterminations, respectively, as to military service shall be conclusive.

§ 1.607 Subcontracts.

The Secretary of National Defense of the Philippine Government, or such other officer as he may designate, may with the concurrence of the Veterans Administration, subcontract the hospital care and treatment of any eligible Commonwealth Army veteran suffering from leprosy, to other hospitals, under the same conditions and stipulations herein provided with reimbursement at actual cost and not to exceed the prevailing per diem rate in effect at the Veterans Memorial Hospital.

§ 1.608 Inspection of hospitals.

The Government of the United States, through such qualified persons as the Administrator of Veterans Affairs may designate shall have the right to inspect any hospital in which veterans are being hospitalized under the terms of 38 U.S.C. 633; to inspect and audit its books and all accounts as are incident to the proper determination of cost of and reimbursement, on a per diem basis for such hospitalization; and to determine whether the hospital facilities, procedures, techniques, hygiene and standards, as well as the quality of subsistence furnished, are adequate and proportionate to the charges being made therefor. In the event that discrepancies or unsatisfactory conditions are found, the Secretary of National Defense of the Philippine Government shall be so advised, together with recommendations for corrective action. If corrective action is not accomplished further reimbursement payments may be discontinued for veterans hospitalized in the institution concerned. § 1.609 Extent of hospital treatment for Commonwealth Army veterans for which reimbursement will be made by the Veterans Administration. Treatment, including orthopedic and/ or prosthetic appliances, for which reimbursement will be made by the Veterans Administration, must be limited to diseases or injuries adjudicated by the Veterans Administration as service connected except as provided in § 1.610.

§ 1.610

Reimbursement for treatment of intercurrent disease or injury; adjunct treatment.

An intercurrent disease or injury is one which occurs in the course of another basic disease or injury. Such intercurrent disease or injury may be the result of the basic service-connected condition for which the patient is being treated, or related thereto. Reimbursement at the established per diem rate shall be made for the treatment of conditions which are the result of the basic serviceconnected condition, or which are adversely affecting such condition. Treatment of related conditions is known as adjunct treatment which is the term applied to the treatment of an intercurrent disorder which, although not service-connected is medically determined to be aggravating the basic service-connected disability. Reimbursement at the established per diem rate for adjunct treatment will not be made unless the basic service-connected condition is itself under treatment.

§ 1.611 Reimbursement basis.

(a) Payments for authorized hospital care and treatment will be made on an all-inclusive in-patient day cost basis.

(b) Reimbursement may be made at monthly or quarterly intervals.

(c) Separate invoices will be submitted monthly to cover hospital care for Commonwealth Army veterans. Payments made for care of these veterans will be made from the amounts provided by the appropriation acts of the Congress of the United States for hospital care in the Republic of the Philippines of Commonwealth Army veterans. The total charges for such care plus any authorized travel expenses incident to the hospitalization of such veterans shall in no event exceed the appropriation provided for any one fiscal year and in no event shall exceed $2,000,000 for any one fiscal year.

(d) In computing the length of stay for which payment will be made, the day of admission will be counted, but not the day of discharge, death or transfer. When a veteran, hospitalized under these provisions, is absent from a hospital for a period longer than 24 hours, no payment will be made for his or her hospital care during such absence.

The Secretary of National Defense of the Philippine Government will, with the concurrence of the Administrator of Veterans Affairs, cause such printed forms of applications for hospitalization, forms of physical examination reports, forms for billing for services rendered and such other forms and notices as may be necessary and incident to the efficient execution of this program to be prepared, and such approved forms shall be used wherever applicable in the general operation of such program. § 1.615

Outpatient treatment.

The Administrator of Veterans Affairs will for a period coterminous with the period covered by the contract referred to in § 1.600, provide medical outpatient treatment in the Republic of the Philippines for Commonwealth Army veterans determined by the Administrator of Veterans Affairs to be in need of such medical outpatient treatment for serviceconnected disabilities. Expenses incident to such treatment shall be borne by the Administrator of Veterans Affairs and shall not be chargeable to the $2,000,000 ceiling for hospitalization and travel expenses of Commonwealth Army veterans referred to in § 1.600(d). § 1.616

Authority.

That such amendment or regulation shall be consistent with the provisions of the "Agreement Between the Government of the United States of America and the Government of the Republic of the Philippines on the Use of the Veterans Memorial Hospital and the Provision of Medical Care and Treatment of Veterans by the Government of the Philippines, and the Furnishing of Grants-in-Aid Thereof by the Government of the United States of America," dated June 30, 1958.

APPEALS FROM DECISIONS OF CONTRACTING OFFICERS UNDER CONSTRUCTION AND RELATED CONTRACTS

(b) Consideration on record and written brief.

(3) Should the appellant fail to file the brief within 60 calendar days after the date of acknowledgment by the Board of receipt of the appeal notice or such later date as the Board on written request of the appellant and for good and sufficient cause shall establish, the Board will in due course proceed with consideration of the case upon the written record then before it. [Subparagraph (3) added, 23 F. R. 362, Jan. 21, 1958]

(c) Personal appearance of appellant.

(2) Meetings. Meetings of the Board for the purpose of such personal appearances will be held normally in the Munitions Building, Washington, D. C., after due notification to appellants by ordinary mail to the latest address of record. Postponements will not be granted except on written application therefor to the Board and for good and sufficient cause. Applications for postponement must be filed with the Board promptly and must set forth the number of days postponement requested and the reasons therefor.

[Subparagraph (2) amended, 23 F. R. 362, Jan. 21, 1958]

§ 1.754 Failure to notify Board of election as to procedure. Should an appellant fail to notify the Construction Contract Appeals Board within 60 days from the date of acknowledgment by the Board of its receipt of the appeal notice whether he elects to (a) rest his case upon the present record, (b) submit a written brief in support of his con

tentions, or (c) in addition to submitting a written brief, to appear personally before the Board, as hereinabove provided for, the Board will set the case down for hearing on a specific date, notifying appellant accordingly. Should appellant fail to appear on that date, or at such later date as the Board may establish. the Board will in due course proceed with consideration of the case upon the written record then before it. The hearing date will be extended only upon written request made by the appellant in advance and for good and sufficient cause.

CODIFICATION: Former §§ 1.754 and 1.755 were redesignated §§ 1.755 and 1.756, respectively, and a new § 1.754 was added, 23 F. R. 362, Jan. 21, 1958.

§ 1.755 Report by Appeals Board-(a) Opportunity for rebuttal. Unless its recommendations are in accordance with contentions of the appellant, the Board, upon completion of its deliberations, and prior to submission of its report to the Assistant Administrator for his decision, will submit to the appellant, by registered mail, a draft of its proposed determinations and findings as to the facts appearing in the case, and its recommendations thereon. The appellant will be allowed a period of 30 calendar days from the date of mailing of the draft, or such further time as the Board in its discretion may allow, to submit such further pertinent written evidence, data, and arguments as he may desire in support of his contentions. No further personal appearance by the appellant before the Board will be allowed, unless, in the judgment of the Board, a further development of the facts through this means is necessary.

(b) Consideration of rebuttal. If further evidence, data, and arguments in writing are submitted by the appellant, within the rebuttal time allowed, they will receive consideration by the Board before rendition of its final report to the Assistant Administrator for his decision, and will accompany the report. Requests for reconsideration will not thereafter be entertained.

[23 F. R. 362, Jan. 21, 1958]

NOTE: See also codification note to § 1.754.

§ 1.756 Notification of decision. The formal decision of the Assistant Administrator for Construction upon an appeal will be communicated in writing to the appellant by ordinary mail.

NOTE: See also codification note to § 1.754.