THE WHITE HOUSE

WASHINGTON

June 14, 1982

MEMORANDUM FOR THE EXECUTIVE COMMITTEE OF THE PRESIDENT'S
PRIVATE SECTOR SURVEY ON COST CONTROL IN THE
FEDERAL GOVERNMENT

FROM:

SUBJECT:
ECT:

FRED F. FIELDING _____difica

Counsel to the President

Application of Conflict of Interest Laws

As a member of the President's Private Sector Survey on Cost Control in the Federal Government ("the Survey"), your status vis-a-vis the Federal Government is that of a "Special Government Employee." That term is defined to include "; "an officer or employee of the Executive Branch . . . who is retained, designated, appointed or employed to perform, with or without compensation, for not to exceed one hundred and thirty days during any period of three hundred and sixty-five days, temporary duties either on a full-time or intermittent basis..." 18 U.S.C. $202.

There are certain criminal statutes which apply to Special Government Fmployees, the general prohibitions of which you should be aware. These are as follows:

18 U.S.C. 203: Provides that you may neither solicit
nor receive any compensation, including sharing a
fee, which evolves from representation of any person,
except the United States, before any department or
agency if such representation concerns a particular
matter involving a specific party or parties in which
you participated personally and substantially as a
Special Government Employee.

18 U.S.C. 205: Provides that you may not, except
in the discharge of your official duties, represent
anyone before a court or Government agency in regard
to a particular matter in which the United States is
a party or has an interest and is one in which you
participated personally and substantially as a
Special Government Employee. This prohibition applies
to both paid and unpaid representation of another.

18 U.S.C. 208:

Provides that you may not participate

personally and substantially, through decision,
approval, disapproval, recommendation or the rendering
of advice, in a particular matter in which to your
knowledge, you, your spouse, minor child, partner, or
any organization in which you are serving as an officer,
director, trustee, partner, or employee has a financial
interest.

18 U.S.C. 207: Subsection (a) of 18 U.S.C. 207 provides
that you may not, after termination of your Government
service, knowingly represent any other person, except
the United States, in any formal or informal appearance,
or, with an intent to influence, communicate on behalf
of any other person in connection with any particular
matter involving a specific party or parties and in which
you participated personally and substantially as a Special
Government Employee.

Subsection (b)(i) of 18 U.S.C. 207 provides that you may not,
for 2 years after termination of your Government service,
knowingly represent any other person, except the United
States, or, with an intent to influence, communicate on
behalf of any other person in connection with any particu-
lar matter involving a specific party or parties which was
pending under your official responsibility as a Special
Government employee.

The above restrictions are narrowly circumscribed in that they apply only to a "particular matter," "particular matters involving specific parties," or a "particular matter... under your official responsibility." These terms generally relate to specific rulings, applications, contracts, claims or investigations. As the Survey has the broad mandate of examining the way the Government operates and not the particular matters presented for decision in a federal agency, I do not believe that the aforementioned restrictions should cause you problems, but it is essential that you be cognizant of them.

Outside of Title 18, there is another law with which you should be familiar. Known generally as the Hatch Act (5 U.S.C. S7321, et seq.), this law prohibits you from using your official position as a special government employee to influence an election and from participating in partisan political activities while serving on Survey matters. Since this prohibition applies only during the time you are acting as a member of the Survey, it should not cause you any problems.

In addition to the statutory prohibitions applicable to you, general standards of conduct are made applicable to you by Executive Order No. 11222. The specific restrictions are set forth in 15 C.F.R. Part 0, a copy of which is attached hereto. Generally, the standards, provide:

(1) That you refrain from any use of your public office
which is motivated by, or gives the appearance of being
motivated by, the desire for private gain;

(2) That you not use any inside information obtained
as a result of your Government service for private
personal gain;

(3) That you not use your position in any way to coerce,
or give the appearance of coercing, another person to
provide any financial benefit to you or persons with
whom you have family, business, or financial ties; and
(4) That you not accept or solicit from persons having
business with the agency you are reviewing, anything of
value as a gift, gratuity, loan or favor for yourself or
persons with whom you have family, business, or financial
ties while employed by the Government or in connection
with your work with the Government.

Again, the foregoing provisions should not cause you any difficulty or hardship. However, I cannot stress enough the need for your awareness of such provisions and your scrupulous avoidance of any activity which might be construed as a violation or create the appearance of a violation of the standards of conduct applicable to you.

Should you ever have any questions regarding the application of the statutory provisions or the regulations promulgated thereunder to a particular situation, please do not hesitate to contact the Counsel's Office at the White House or the Designated Agency Ethics Official at the agency you are reviewing.

This is an attachment to the June 14, 1982, memorandum from Fred Fielding to Executive Committee members.