medical facilities, orders for temporary duty under treatment from shore duty shall be issued when it is expected or becomes apparent that hospitalization will be in excess of 45 days. In order to better utilize manpower and clear hospital beds quickly when treatment is completed, naval district commandants are required by paragraph 21.61 of the manual to designate intermediate reporting activities for the medical facilities within their districts, such activities generally being the nearest navy installation which has facilities to receive and process such personnel. Paragraph 21.62b of the manual provides that the commanding officer of the naval medical facility shall make an availability report to the command having distributional control of the activity from which members were received, for personnel in a temporary duty under treatment status (with 3 months or more obligated service remaining) where the date of discharge from treatment can be anticipated, and upon release from treatment transfer such personnel to the designated intermediate reporting activity for further transfer. To insure the proper assignment of personnel, the availability report is required to include information as to the member's last permanent duty station and number of months served there. Upon receipt of the ultimate assignment from the distribution commander, transfer of the individual is made by the intermediate reporting activity to the command indicated (paragraph 21.64).

In a somewhat similar case recently before this Office, it was stated in a letter from the Office of the Comptroller, Department of the Navy, dated August 7, 1962, that the order writing policy of the Bureau of Naval Personnel provides, in connection with the assignment of members to limited duty while awaiting action on their medical survey or by the physical evaluation board, that when it is contemplated that a member will be at an activity during his convalescence or reevaluation for a period of 6 months or less, the member will be issued temporary duty orders in accordance with established principles of temporary duty time limitations. Pursuant to the above regulations and policies, Mr. Moluski was transferred effective October 3, 1962, from the naval hospital to the U.S. Naval Station, San Diego, California, for further transfer, and on October 5, 1962, by orders issued at the Naval Station on that date, he was reassigned to the Navy Auxiliary Air Station at Ream Field for approximately 6 months' temporary duty pending personnel action on his medical survey. The record shows that he was transferred (apparently for temporary duty) to the San Diego Naval Hospital on March 20, 1963, for reevaluation, and on April 19, 1963, he was transferred to the Naval Station in that city to await action on a physical evaluation board finding of unfit for duty. Effective May 17, 1963, Mr. Moluski was placed on the Temporary Disability Retired List.

You state that Ream Field is located within the corporate limits of the city of Imperial Beach, California, and that although Mr. Moluski entered into a travel status when he departed from there for the San Diego Naval Hospital, which is located within the corporate limits of San Diego, California, doubt exists as to the legality of payment of per diem for the duty performed at Ream Field after the member's release from the hospital inasmuch as his last permanent duty station was at that field.

A member's entitlement to travel allowances under the provisions of 37 U.S.C. 404 and paragraph 3050 of the Joint Travel Regulations, promulgated pursuant thereto, is dependent upon his being in a travel status (including periods of temporary or temporary additional duty) away from his permanent station under competent orders. A permanent duty station is defined in paragraph 1150-10a of the regulations as the post of duty or official station to which a member is assigned or attached for duty other than temporary duty or temporary additional duty, and when stationed in an incorporated city or town the official station is the corporate limits of such municipality. Whether an assignment to a particular station is temporary or permanent is a question of fact to be determined from the orders under which the assignment is made and, where necessary, the character of the assignment, duration thereof, nature of duty enjoined, etc. 24 Comp. Gen. 667; 27 id. 253; 33 id. 103 and 36 id. 757.

While the orders of June 1, 1962, issued by Mr. Moluski's permanent duty station at Ream Field did not direct the member's return to that station upon completion of his hospitalization, the orders specified that the assignment was for temporary duty indicating that the expected period of treatment would be for less than 6 months, and presumably Mr. Moluski would have been returned to his permanent station had he been found physically fit to resume his previously assigned duties upon completion of his treatment at the hospital. The member's detachment from Ream Field was not oecasioned by completion of his tour of duty at that station, or a greater need for his services elsewhere, but was for treatment of his physi cal condition which necessarily precluded a definite determination at that time as to whether he would be returned to Ream Field, assigned a new permanent duty station, or even remain in the active werv ice. Under the cited provisions of the Enllated Transfer Mon Al A seems clear that a complete detachment from the old duty walion was not contemplated under the orders of June 1, 162, but that A was anticipated that a determination should be made on

of the availability report as to whether following top at a the member should be returned to the ot water or wanted "zem from for assignment devien Coneguen puntera denne kada assigmetdavien

here involved, the temporary duty assignment for treatment is not viewed as conclusively detaching the member from Ream Field but is regarded as being in the nature of a contingent detachment dependent upon subsequent developments and determinations for final consummation. Since the applicable law and regulations contemplate for per diem purposes that wherever practicable members shall have assigned permanent duty stations and authorize travel allowances within reasonable temporary duty limitations only for periods they are actually in a travel status away from their designated post of duty, it is our view that under the circumstances here concerned, Ream Field should be considered as Mr. Moluski's permanent duty station during the period of hospitalization and, because of his reassignment there, that it remained his duty station until he was placed on the Temporary Disability Retired List. Accordingly, the payment of per diem allowance to the member for the period he was assigned to Ream Field for temporary duty is not authorized. Paragraph 4201-5 of the Joint Travel Regulations prohibits the payment of per diem for the period of hospitalization.

Accordingly, payment of the claim is not authorized.

[B-148819]

Funds-Federal Grants, Etc., to Other Than States-Definition Loans to Indian tribes from the Indian revolving fund for development of industrial or commercial projects within a redevelopment area which is eligible for Federal assistance under the Area Redevelopment Act, 42 U.S.C. 2505, must be regarded as "Federal aid" within the meaning of section 6(b)(9) of the act, 42 U.S.C. 2505(b) (9), which requires other Federal aid to be deducted from the aggregate cost of the projects before applying the maximum loan limitation of 65 percent.

Indian Affairs-Revolving Funds-Status as Federal Aid

A corporation or business entity which is organized by an Indian tribe with funds from the Indian revolving fund for the purpose of economic development is in effect an agent or conduit through which the tribes would obtain additional Federal financial aid under the Area Redevelopment Act, 42 U.S.C. 2505, and, therefore, the loans from the Indian revolving fund must be considered "Federal aid" within the meaning of section 6(b)(9) of the act, 42 U.S.C. 2505(b) (9), which requires other aid to be deducted from the aggregate cost of the projects before the maximum loan limitation of 65 percent may be applied. Indian Affairs—Revolving Funds-Status as Federal Aid Funds obtained from the Indian revolving fund which are used by Indian tribes to loan, invest or purchase stock in business entities that are organized to qualify for Federal financial assistance under the Area Redevelopment Act have not changed their character as Federal funds, even though no privity of contract exists between the business entities and the Government by virtue of the loan, investment or stock purchase and, therefore, the exclusion of such Indian revolving funds from the aggregate cost of a redevelopment project in applying the limit of Federal financial assistance authorized in section 6(b) (9) of the act, 42 U.S.C. 2505(b) (9), would contravene the express terms of the act requiring deduction of other Federal aid.

To the Secretary of the Interior, August 22, 1963:

Reference is made to letter dated April 29, 1963, from Assistant Secretary of the Interior John A. Carver, Jr., which requests reconsideration of our decision of June 5, 1962, B-148819, 41 Comp. Gen. 792.

The decision of June 5, 1962, was rendered in response to a request from the Assistant Secretary of Commerce for Administration and Public Affairs. The questions there presented for determination were whether consumer loans made by Rural Electrification Administration, Department of Agriculture, financed electric cooperative organizations, either from the cooperative organization's own general funds or pursuant to a REA loan to the cooperative organizations under section 5 of the Rural Electrification Act, as amended, 7 U.S.C. 905, constitute "Federal aid" within the meaning of that term as used in subsection 6(b) (9) of the Area Redevelopment Act, Public Law 87-27, approved May 1, 1961, 75 Stat. 47, 51, 42 U.S.C. 2505 (1›) (9) (Supp. IV).

The conclusion of that decision was based upon the reasoning that since loans made by REA to cooperative organizations, for relending to commercial or industrial consumers for the installation of electrical equipment or machinery, represent financial transactions primarily involving REA and the cooperative organizations in that REA looks to the cooperatives rather than to the consumer-borrower for repayment and security of its loans, and that since the relending of funds by the cooperative organizations to consumer-borrowers creates no privity of contract between the latter and the Government, such funds in the hands of consumer-borrowers do not represent "Federal aid” within the meaning of that term as used in subsection 6(b) (9) of the Area Redevelopment Act.

It was pointed out in the decision that under the terms of 25 U.S.C. 470, the Secretary of the Interior is authorized to make loans to Indian chartered corporations to promote the economic development of such tribes and its members, and that such loan programs operating within a redevelopment area have a direct relationship between the Government and the borrower looking to the effective establishment or expansion of industrial or commerical plants within such area. As indicated in the Assistant Secretary's letter, the view was expressed that in giving effect to the limit of financial aid authorized in subsection 6(b) (9) to be extended to applicants, in connection with industrial or commercial projects within a redevelopment area, the amount of loans made under the terms of 25 U.S.C. 470 would be required to be deducted from the aggregate cost of the applicants of projects before applying the maximum loan limitation of 65 percent thereon. The Assistant Secretary states that the Department makes loans to

Indian tribes for any purpose that will promote the economic development of the organization and its members. Enterprises operated by Indian tribes often are financed by a combination of funds, viz., private, tribal, loans from the revolving fund, and operating profits of the enterprise which are retained. No distinction is made between the source of funds in enterprise operations and the only controls the Department exercises over the operations financed in whole or in part with loans from the revolving fund, are those considered necessary for loan protection.

The Assistant Secretary mentions that the Bureau of Indian Affairs and Indian tribal groups are currently engaged in an extensive cooperative economic development program designed to develop physical and manpower resources on Indian reservations for maximum economic and social benefits to Indians with emphasis placed on projects to develop tourism, commercial enterprises, and industry. He states that while there exist some sources that can be utilized in obtaining funds there for, the loan provisions of the Area Redevelopment Act opened up an additional and very significant source of financing to the tribes. Many projects could receive financing under the loan provisions of this act if supplemented with loans from the Indian revolving loan fund. If the amount of such loans must be deducted from the aggregate project cost before applying the maximum loan limitation of 65 percent, financing of such projects may not be possible. This action may also adversely affect the entire economic development program in that it may impede the progress or even the start of new projects. Accordingly, he requests reconsideration as to whether loans from the Indian revolving loan fund to Indian tribes constitute "Federal aid" within the meaning of that term as used in subsection 6(b) (9) of the Area Redevelopment Act.

Following receipt of the Assistant Secretary's letter of April 29, a conference was had between the staff of our Civil Accounting and Auditing Division and representatives of your Department relative to this matter. It was learned that the request for reconsideration of our decision stemmed from certain proposed lending situations in connection with the Indian revolving loan fund examples of which are as follows:

1. Mescalero Tourist Enterprise. A report prepared by Checchi and Company under contract with ARA on the Potential Power of Tourism, Mescalero Reservation, indicates that the establishment of a resort complex on the reservation, which may involve an investment of as much as $4 million, may be feasible and promote the economic development of the Indians. There are many facets of the proposal requiring further analysis. The form of organization and financing of the enterprise are in embryonic stages. If the feasibility of the enterprise checks out, eligibility for ARA loans and for loans from the revolving fund will play an important role in the organization and financing of the development.

(a) If the Mescalero Apache Tribe were to proceed with the development as a tribal enterprise, owned and operated for the benefit of all members of the