Veterans of the Mexican border service who were discharged for disability incurred in line of duty or who are in receipt of compensation for service-connected disability, are also entitled on the basis of such disability, to other benefits, such as hospital treatment or domiciliary care, including medical treatment by the Veterans' Administration, such prosthetic appliances or aids for the blind as the Administrator of Veterans' Affairs may determine to be necessary, burial allowances, and a burial flag. Financial assistance is afforded certain veterans in acquiring specially adapted housing which they require on account of permanent and total service-connected disability due to certain conditions. Preference in Federal civilian employment is also granted under the Veterans' Preference Act of 1944 (58 Stat. 387), as amended (5 U. S. C. 851 et seq.), to veterans who served during a campaign or expedition for which a campaign badge has been authorized, or who have established the existence of a service-connected disability, or are receiving compensation, disability, retirement benefits, or pension by reason of public laws administered by the Veterans' Administration or military departments. Preference is also extended under certain circumstances to wives, unremarried widows, and mothers of such veterans. In connection with such preference in employment, it should be noted that the Departments of the Army and Navy have authorized issuance of a Mexican service medal to personnel of the respective services who meet the necessary service requirements.

Another benefit afforded to members of the Mexican border service concerns entitlement to and preferences in the acquisition of public lands. Such veterans who have served 90 days or more and have been honorably discharged or discharged for service-incurred disability from such service, are entitled to certain public lands under the homestead laws of the United States (43 U. S. C. 271, 272, 272a). In accordance with laws administered by the Department of the Army, veterans encompassed by the bill and certain of their dependents are eligible to be buried in a national cemetery and to be furnished headstones or grave markers. In addition, retired pay is authorized for eligible servicemen under laws administered by the military departments.

H. R. 2748, if enacted, would extend to veterans of the Mexican border service as described in the bill, and their dependents, the following additional privileges, rights, and benefits presently being furnished the veterans of the Spanish-American War and their dependents:

(a) Hospitalization or domiciliary care for any such veteran discharged under conditions other than dishonorable, within the limitations of existing Veterans' Administration facilities, irrespective of whether the disability or disease was due to service, provided the veteran is unable to defray the necessary expenses thereof.

(b) Outpatient treatment, medical or dental, including medicines, prosthetic appliances, and other supplies to veterans when discharged from service under other than dishonorable conditions who are in need of outpatient treatment for non-service-connected conditions.

(c) In the event of death after discharge, provision is made for the payment of burial and funeral expenses of the veteran (not to exceed $150), provided he was discharged under conditions other than

dishonorable. In addition, a burial flag is furnished to drape the casket of such veteran.

(d) Preference in Federal employment in accordance with the Veterans' Preference Act of 1944, would be extended to all persons who served in the Mexican border service within the prescribed period, and their dependents, on the same basis as war veterans and their dependents.

(e) Wartime rates for service-connected disability or death incurred under conditions other than those mentioned earlier in this report.

(f) Pension benefits for non-service-connected disability or age and death pension benefits to dependents for death of veterans from non-service-connected causes.

In keeping with the policy of Congress to recognize the primary responsibility to veterans having service-connected disabilities, and their dependents, veterans encompassed by the bill and their dependents are presently entitled to compensation for service-connected disability or death, and at wartime rates under conditions mentioned earlier in this report. It has been the long-established general policy of the Congress, however, to restrict service pension to veterans of wars and dependents of war veterans. An exception to this policy was recently made by the act of May 11, 1951 (65 Stat. 40, 38 U. S. C. 745) under which pension benefits, among others, were extended to veterans of service on or after June 27, 1950, and prior to such date as shall thereafter be determined by Presidential proclamation or concurrent resolution of the Congress, and to their dependents. Enactment of the subject bill wluld constitute a further exception to the general policy, since the service in question was not performed during a period of war, and would confer special benefits to a particular group of peacetime veterans and their dependents to the exclusion of other peacetime veterans, including those who served in other campaigns, expeditions, and occupations. A list of such campaigns, expeditions, and occupations is set forth on pages 33 to 72 of the hearings on H. R. 1653 and H. R. 2073, 79th Congress, before the House Committee on Invalid Pensions. Attention is also invited to the fact that by applying Spanish-American War pension criteria, the bill, if enacted, would grant to veterans of the Mexican border service (peacetime veterans) and their widows and children greater pension benefits under more liberal eligibility criteria than that provided for veterans of World War I and World War II and their widows and children.

Enactment of the proposed legislation might serve as a precedent for requests for similar legislation on behalf of veterans of the Army, Navy, and Marine Corps who served in other campaigns, expeditions, or occupations, including servicemen of the occupation forces after World War I and World War II whose only service was rendered in other than a war period. Enactment of the bill might also serve as a precedent for requests for legislation increasing the rates of, and liberalizing the eligibility requirements for pension for World War I and World War II veterans and their widows and children. It is believed therefore, that the committee will desire to give careful consideration to the far-reaching effects of the proposed legislation.

The matter of conferring additional benefits upon veterans of the Mexican border service and their dependents as proposed by H. R. 2748 involves a question of broad public policy. It is the view of the Veterans' Administration that any revision of that policy is primarily for the consideration of, and determination by, the Congress.

There are no records in the Veterans' Administration on which to base a worthwhile estimate of the cost of the proposed legislation. However, a communication to the Veterans' Administration by the War Department on May 28, 1946, in connection with H. R. 2073, 79th Congress, outlined generally the number of persons who served on the Mexican border in 1916 and 1917. A copy of that communication was furnished to the committee as a part of the Veterans' Administration report on H. R. 2137, 83d Congress. Although these data are incomplete for estimate purposes, and do not cover all the persons within the purview of H. R. 2748, it is felt that they may be of interest to the committee in considering the subject bill.

Advice has been received from the Bureau of the Budget that enactment of this legislation would not be in accord with the program of the President.

MY DEAR MRS. ROGERS: Reference is made to the Department's letter to you of May 1, 1953, acknowledging your letter of April 30 in which you requested the Department's comments on H. R. 4608, to provide for the payment of monetary benefits withheld from certain Veterans' Administration beneficiaries.

In December 1951 there was referred to the Department for comment the text of H. R. 263, 82d Congress, which also had as its purpose the amendment of Public Law 622, 79th Congress, to repeal the last proviso only, so that Veterans' Administration funds could be paid German and Japanese nationals or subjects residing in Germany and Japan, respectively. Apparently no action was taken on H. R. 263 during the 82d Congress. There is enclosed for your information a copy of a memorandum containing the Department's reactions to the earlier bill. As you can see, the Department favored repeal of the discriminatory clause. At that time, the Bureau of the Budget informed the Department that there was no objection to the submission of a favorable report on the bill.

You may also be interested in Decision No. 921, January 15, 1953, by the Administrator of Veterans' Affairs, based on an opinion of the Solicitor of Veterans' Administration, concerning the applicability of the final clause of Public Law 622 to benefits based on contingencies arising after the conclusion of peace with Germany or Japan. The Solicitor's opinion reads as follows:

HELD: The prohibition in the last proviso of Public Law 622, 79th Congress, against the payment of benefits administered by the Veterans' Administration to citizens or subjects of Germany or Japan residing therein does not bar the payment to such persons of claims for indemnity for death under the Servicemen's Indemnity Act of 1951 (part I, Public Law 23, 82d Congress). Furthermore, the said

proviso of Public Law 622, supra, has no present bearing upon the matter of payments to citizens or subjects of Germany or Japan with respect to compensation or pension claims based on contingencies arising after the conclusion of peace with Germany or Japan.

Opinion of the Solicitor, dated December 15, 1952, approved December 22, 1952.

If you wish to study the complete text of Administrator's Decision No. 921 of January 15, 1953, a copy will doubtless be supplied you by Veterans' Administration upon request. This Department does not have them for distribution.

In the light of present circumstances, the Department again recommends that this matter receive favorable consideration.

The Department has been advised by the Bureau of the Budget that there is no objection to the submission of this report.

Sincerely yours,

THRUSTON B. MORTON,

Assistant Secretary

(For the Secretary of State).

MEMORANDUM ON H. R. 263 CONCERNING THE AMENDMENT OF PUBLIC LAW 622, 79TH CONGRESS, TO PERMIT GERMAN AND JAPANESE NATIONALS RESIDING IN THEIR OWN COUNTRIES TO RECEIVE VETERANS' ADMINISTRATION BENEFITS

Inasmuch as our policy toward Japan and Germany now contemplates our helping them regain their places as self-respecting nations, the continued retention of the language of the clause appears inconsistent. German and Japanese nationals residing elsewhere in the world, as well as nationals of other countries residing in Germany and Japan, may receive, and have been receiving, Veterans' Administration benefits. Furthermore, German and Japanese nationals residing in Germany and Japan have for the past year been paid benefits by United States Government agencies other than Veterans' Administration, such as Social Security Administration, Civil Service Commission, and the retired pay branches of the Armed Forces.

Were the clause repealed, German and Japanese nationals would not receive American dollars, but would, under the arrangement now in effect between the Treasury Department and the occupation authorities, receive the equivalent in local currency at not less than the official rate of exchange. Nor would any payments whatsoever be made in Soviet-controlled areas of Germany.

Under the unamended portions of Public Law 622, 79th Congress, all claimants for renewal of Veterans' Administration benefits in Germany and Japan would be subject to the same thorough investigation as required by Public Law 144, 78th Congress, for the reinstatement of payments to all persons who resided in enemy or enemy-occupied territory. The American consular service conducted those investigations in Italy, France, and other countries, and would be prepared to conduct them in Germany and Japan.

The number of Veterans' Administration cases in Germany and Japan prior to World War II was comparatively small, there being 179 cases in the former and 59 in the latter on June 30, 1939. Many of those cases will be reactivated, but there is a chance that not all will still be eligible for payments. In addition, there will be a certain number of new cases resulting from World War II, such as dependent parents of deceased veterans, or widows and children of men killed in Korea. At the moment, neither the Department nor the Veterans' Administration can estimate what the workload will be, but it is not expected to be large. Similarly, there is presently no way to determine what the cost of the operation would be, but it may be assumed that since the number is comparatively small in relation to the hundreds of cases already being handled in these and other countries, the additional expense would be more or less negligible.

The Department recommends, therefore, that this bill receive favorable consideration.

[No. 122]

COMMITTEE ON VETERANS' AFFAIRS, HOUSE OF REPRESENTATIVES VETERANS' ADMINISTRATION,

Hon. EDITH NOURSE ROGERS,

Washington 25, D. C., July 17, 1953.

Chairman, Committee on Veterans' Affairs,

House of Representatives, Washington 25, D. C.

DEAR MRS. ROGERS: This is in reply to your request for a report by the Veterans' Administration on H. R. 3082, 83d Congress, a bill to exempt, in the case of certain veterans of World War I over 70 years of age, the income limitations restricting their right to receive nonservice disability pensions.

The bill proposes to remove existing income limitations governing the payment of pension for non-service-connected disability in cases of World War I veterans who have attained the age of 70 years and been in receipt of such pension for a period of 5 years, and to grant such veterans a life pension at current rates or any increase thereof which may be authorized in the future.

Under existing law (pt. III, Veterans Regulation No. 1 (a), as amended) veterans of World War I are eligible for pension based on permanent and total non-service-connected disability. Pension is payable to any such veteran who served in the active military or naval service for a period of 90 days or more during such war and who was discharged therefrom under conditions other than dishonorable, or who, having served less than 90 days, was discharged for disability incurred in service in line of duty. The veteran must have been in active service before the cessation of hostilities and be suffering from non-service-connected permanent and total disability not incurred as a result of his own willful misconduct or vicious habits. The rate is $63 per month, except that where the veteran shall have been rated permanent and total and has been in receipt of pension for a continuous period of 10 years or reaches the age of 65 years and is permanently and totally disabled, the rate is $75 per month. A rate of $129 per month is authorized in the case of an otherwise eligible veteran who is, on account of age or physical or mental disability, helpless or blind or so nearly helpless or blind as to need or require regular aid and attendance of another person. Such pension is not payable to any unmarried person whose annual income exceeds $1,400 or to any married person, or any person with a child or children whose annual income exceeds $2,700. Veterans of service during the Korean campaign, World War II, or the Spanish-American War are also eligible for pension under the law mentioned at the beginning of this paragraph.

The bill would remove the mentioned $1,400 and $2,700 income limitations insofar as they apply to World War I veterans who have attained 70 years of age and been in receipt of such pension for a period of 5 years. World War I veterans meeting the requirements of the bill would be paid pension for life at the rates now provided ($75 or $129 monthly) or any increase thereof which may be authorized