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JGR/BMW Correspondence (4 of 4)
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118567642
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JGR/BMW Correspondence (4 of 4)
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Records of the Office of Counsel to the President (Reagan Administration)
John Roberts' Subject Files
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Ronald Reagan Presidential Library
Digital Library Collections
This is a PDF of a folder from our textual collections.
Collection: Roberts, John G.: Files
Folder Title: JGR/BMW Correspondence
(4 of 4)
Box: 6
To see more digitized collections visit:
https://reaganlibrary.gov/archives/digital-library
To see all Ronald Reagan Presidential Library inventories visit:
https://reaganlibrary.gov/document-collection
Contact a reference archivist at: [email protected]
Citation Guidelines: https://reaganlibrary.gov/citing
National Archives Catalogue: https://catalog.archives.gov/
From the desk of
THE
K. E. MALMBORG
MR. John Roberts
Office of white
House Counsel
Room 112 old
Exec.
United States Department of State
Washington, D.C. 20520
white House
Copy
JUN 4 1985
-
Mr. Robert H. Hunter
Assistant General Counsel
United States General Accounting Office
Washington, D. C. 20548
Dear Mr. Hunter:
This is in response to your letter of April 18, relating
to discounts offered by foreign car makers to persons holding
diplomatic passports. We recently furnished the enclosed
letter to the Office of Government Ethics which identifies the
regulations applicable to issuance of diplomatic passports, and
the code of conduct regulations applicable to the employees of
the foreign affairs agencies.
The final point in your letter concerns possible
disposition for profit of foreign cars acquired at a discount.
We do not have information on that specific point, but we do
have regulations for the foreign affairs agencies (enclosed)
restricting excess profits from the disposition of personal
property which benefitted from duty-free import status (e.g. a
diplomat). We are considering strengthening this policy to
preclude excess profits on the disposition abroad of personal
property imported into a foreign country or purchased therein
under tax or duty free privilege arising from official status.
At present, there is no generally applicable law or
regulation to prevent or limit the profits which may be made on
resale of personal property, however acquired.
Sincerely,
Michael G. Kozak
Designated Agency Ethics Official
Enclosure:
As stated
ENCL.
United States Department of State
Washington, D.C. 20520
April 15, 1985
Mr. David Martin
Office of Government Ethics
Office of Personnel Management
Washington, D. C. 20415
Dear Mr. Martin:
In response to your letter of April 5, the State
Department regulations on issuance and use of diplomatic
passports by our own employees and others are found at 22 CFR
Part 51; in particular, sections 51.3(c), 51.4(d), 51.9, 51.70,
51.71, 51.72, 51.73. You will see that the primary purpose of
a passport, whether diplomatic or otherwise, is to facilitate
international travel, and no attempt has been made to regulate
uses which may be made of such passports within foreign
countries by law, practice, or usage of such countries.
Of course, our code of conduct for our own employees (22
CFR Part 10) would regulate use of diplomatic passports in the
same way as official titles, special privileges and immunities,
or other aspects of official status are regulated to avoid
conflict of interest or appearance of conflict of interest.
The sections which are especially relevant are: sections
10.735-101, 10.735-201, 10.735-202, 10.735-205, 10.735-206 (a)
and (b), and 10.735-215.
You will note that when a diplomatic passport is issued to
an employee of another agency it is the conflict of interest
regulations of that agency which become operative, not ours.
Sincerely,
Michael G. Kozak
Deputy Legal Adviser
225 Abuse of Privileges and Immunities
225.1 Evasion of Personal Obligations
A diplomatic or consular officer, or other
representative of the United States, shall
not take advantage of the protection afforded
by reason of the officer's official position
nor should the officer evade the settlement
of just obligations.
5.3 Importation of Personal Property for
225.2 Property Held in Personal Capacity
Resale at a Profit
If a diplomatic officer holds real or personal
Personal property imported to host countries
property in a foreign country, in a personal
by U.S. citizen employees under diplomatic
as distinguished from an official capacity,
privileges and immunities must be for their
such property not necessary or incident to
the officer's official assignment may be sub-
bona fide personal use. In instances where
there is reason to believe that that would not
ject to the local laws.
be the intended purpose of the importation, the
226 Reporting on Litigation
Chief of Mission or designee will investigate
the importation or the request therefore if the
Each post shall inform the Department of any
importation has not yet been authorized.
litigation in a local court in which a U.S.
citizen employee may become involved in
If the investigation determines that the property
employee's private capacity. The post S
was imported or intended to be imported under
report should be in the form prescribed in
diplomatic privileges and immunities primarily
section 284.3 for reporting suits against
the United States, but should not be marked
for the purpose of resale at a profit, the Chief
for the attention of the Justice Department.
of Mission will take one or more of the following
The post S initial report shall include full
actions:
particulars regarding the accreditation of
the employee to the foreign government for
(1) As appropriate, deny the request to import
purposes of privileges and immunities.
the property or deny the sale;
Employees of the Foreign Service are respon-
(2) Require the employee to repay the U.S. Govern-
sible for reporting to their posts of assign-
ment the original cost of shipping the property
ment litigation in foreign courts in which
to post;
they may become involved. Employees shall
avoid taking actions which may imply an
unauthorized waiver of immunity in violation
(3) deny use of Embassy facilities for conversion
of section 221. 5.
or transfer of funds;
See section 284.2 for suits against an em-
(4) request host government not to authorize trans-
ployee in employee's official capacity.
fer of title or registration of POV;
(5) require property to be re-exported at em-
ployee's expense;
(6) take such other action as may be appropriate,
including recommending disciplinary action against
the employee.
See also 3 FAM 620, Section 10.735-206 (b) (4), Em-
ployee Responsibilities and Conduct, and 6 FAM
165.7 for treatment of this subject.
2 FAM 223
THE WHITE HOUSE
WASHINGTON
June 27, 1985
Dear Mr. Wilson:
Thank you for your letter to the President concerning the
purchase of foreign automobiles by certain members of an
advance team at a discount available to holders of diplomatic
passports.
Regulations promulgated by the Department of State do not
prohibit the acceptance of discounts available to holders of
diplomatic passports. The offering of such discounts by
foreign automobile manufacturers is a long-standing practice
in several countries.
The acceptance of such discounts is not illegal, but the
practice had never been reviewed by the White House and the
White House had never given guidance on it to members of the
staff. After review, we decided to prohibit members of the
White House staff from accepting such discounts in the
future, unless they are out of the country for 30 days or
more. This office has alerted members of the staff to this
new policy, and has also suggested to other departments and
agencies that they review their policies on this question.
With respect to your comments on the particular make of
automobile chosen by the individuals in question, I can only
state that such decisions are matters of personal consumer
preference which it would be inappropriate for the Government
to regulate.
I hope the foregoing information responds to your concerns.
Thank you for sharing your views with us.
Sincerely,
John G. Roberts
Associate Counsel to the President
Mr. Franklin B. Wilson
President, Wilson's
145 West Third Street
Williamsport, PA 17701
JV]
ID #
324951
CU
TA00416
WHITE HOUSE
CORRESPONDENCE TRACKING WORKSHEET
o - OUTGOING
H INTERNAL
I . INCOMING
Date Correspondence
Received (YY/MM/DD)
/
/
Name
of Correspondent: Franklin Wilson
MI Mail Report
User Codes: (A)
(B)
(C)
Subject: BMWs
ROUTE TO:
ACTION
DISPOSITION
Tracking
Type
Completion
Action
Date
of
Date
Office/Agency
(Staff Name)
Code
YY/MM/DD
Response
Code
YY/MM/DD
CUHOLL
ORIGINATOR
WS
/
/
Referral Note:
CUAT 18
R
85,06,25 WS
WS
5 85,07105
Referral Note:
/ /
/ /
-
Referral Note:
/ /
/
/
-
Referral Note:
/ /
/
/
Referral Note:
ACTION CODES:
DISPOSITION CODES:
A Appropriate Action
I - Into Copy Only/No Action Necessary
A- Answered
C Completed
C Comment/Recommendation
R - - Direct Reply w/Copy
B - . Non-Special Referral
S Suspended
D Draft Response
S For Signature
F - Furnish Fact Sheet
X - Enterim Reply
to be used as Enclosure
FOR OUTGOING CORRESPONDENCE:
Type of Response = Initials of Signer
Code = "A"
Completion Date = Date of Outgoing
Comments:
Keep this worksheet attached to the originall incoming letter.
Send all routing updates to Central Reference (Room 75, OEOB).
Always return completed correspondence record to Central Files.
Refer questions about the correspondence tracking system to Central Reference, ext. 2590.
5/81
Fuelding
WILSON'S
Williamsport, PA.
Susquehanna Valley Mall, PA.
State College, PA.
145 West Third Street
Williamsport, PA 17701
Telephone: (717) 326-2001
June 12, 1985
324951
THE WHITE HOUSE
PENNSYLVANIA AVENUE
WASHINGTON, DC 20000
Dear Mr. President,
With the Trade Deficit as bad as it is, I find it inconceivable that White House
Chief of Staff Michael Deaver and 8 other U.S. Officials arranged to buy 9
BMW'S while in Germany on U.S. Business. Mr. Deaver should be terminated
from his position, as this represents an intollerable disservice to all tax payers.
This may also suggest why Mr. Deaver and his staff chose to go to Bitburg as
they were too busy buying BMW'S to represent the U.S. citizens properly.
Sincerely,
Franklin B. Wilson
President
P.S.
I feel bumping the people in the lower income bracket from 11% to 15% is
horrendous. How is this suppose to help the economy?
cc
Michael Deaver/Chief of Staff, Senator Arlen Specter, Senator John
Heinz, Representative George Gekas.
THE WHITE HOUSE
WASHINGTON
June 27, 1985
Dear Mr. Swenson:
Thank you for your letter to the President concerning the
purchase of foreign automobiles by certain members of an
advance team at a discount available to holders of diplomatic
passports.
Regulations promulgated by the Department of State do not
prohibit the acceptance of discounts available to holders of
diplomatic passports. The offering of such discounts by
foreign automobile manufacturers is a long-standing practice
in several countries.
The acceptance of such discounts is not illegal, but the
practice had never been reviewed by the White House and the
White House had never given guidance on it to members of the
staff. After review, we decided to prohibit members of the
White House staff from accepting such discounts in the
future, unless they are out of the country for 30 days or
more. This office has alerted members of the staff to this
new policy, and has also suggested to other departments and
agencies that they review their policies on this question.
With respect to your comments on the particular make of
automobile chosen by the individuals in question, I can only
state that such decisions are matters of personal consumer
preference which it would be inappropriate for the Government
to regulate.
I hope the foregoing information responds to your concerns.
Thank you for sharing your views with us.
Sincerely,
John G. Roberts
Associate Counsel to the President
Mr. Frank Swenson
218 Kimrod Lane
Matthews, NC 28105
325372
ID #
CU
JV
J:
WHITE HOUSE
TA004-16
CORRESPONDENCE TRACKING WORKSHEET
0 - OUTGOING
H INTERNAL
I - INCOMING
Date Correspondence
Received (YY/MM/DD)
/
/
JR-dune
Name of Correspondent:
Frank Swenson
MI Mail Report
User Codes: (A)
(B)
(C)
Subject:
BMWs
ROUTE TO:
ACTION
DISPOSITION
Tracking
Type
Completion
Action
Date
of
Date
Office/Agency
(Staff Name)
Code
YY/MM/DD
Response
Code
YY/MM/DD
CUHOLL
ORIGINATOR 85,06,25
/
/
Referral Note:
CUAT 18
R 85,06,26
585,07,06
Referral Note:
/ /
/
/
-
Referral Note:
/ /
/ /
-
Referral Note:
/ /
/
/
Referral Note:
ACTION CODES:
DISPOSITION CODES:
A Appropriate Action
I * Info Copy Only/No Action Necessary
A - Answered
C Completed
C - Comment/Recommendation
R. Direct Reply w/Copy
B - Non-Special Referral
S. Suspended
D Draft Response
S For Signature
F Furnish Fact Sheet
X Interim Reply
to be used as Enclosure
FOR OUTGOING CORRESPONDENCE:
Type of Response = Initials of Signer
Code = "A"
Completion Date = Date of Outgoing
Comments:
Keep this worksheet attached to the original incoming letter.
Send all routing updates to Central Reference (Room 75, OEOB).
Always return completed correspondence record to Central Files.
Refer questions about the correspondence tracking system to Central Reference, ext. 2590.
5/81
"Fielding"
Diplomat's Discount
his February, Presidential
T
aide Michael Deaver and
a crew of White House
advance men were in West
Germany, preparing for
Walker/C Gamma Liaison
Ronald Reagan's trip to Europe next
month. While in Munich, they
bought six luxury cars from BMW
at its so-called "diplomat's
325372₫
discount" of 15% to 25%. Their
purchase made headlines, and
some people considered it unethical
if not illegal. It is neither.
The practice of granting discounts
to persons holding diplomatic
passports is nothing new. Last year,
for example, Daimler-Benz gave
10% discounts to 146 diplomats
Michael Deaver, back from Germany
purchasing its Mercedes models
in Stuttgart. West Germany. Daimler-
on official business.
Benz recognizes as a U.S.
Last month. however. White
diplomatic passport one whose
House counsel Fred Fielding issued
identification number starts with an
a memo barring future purchases of
X. The carmaker also will honor
cars at a diplomatic discount by
a passport whose number starts with
White House officials who are in a
a Y if the bearer has a U.S. State
foreign country on government
Department letter saying he is abroad
business for less than 30 days.
5/9/85
DEAR PRESIDENT REAGAN,
/ Just HAD TO SEND THE ABOVE ARTICLE
To you BECAUSE IT UPSET ME VERY MUCH.
WITH OUR COUNTRY SUFFERING FROM IMPORTS
BEING So MUCH GREATER THAN EXPORTS IT REALLY
BOTHERS ME to SEE us GOVERNMENT PEOPLE BUY-
ING FOREIGN CARS. THEY SHOULD BE SETTING AN EX-
AMPLE.
I'm ABOUT TO BUY A NEW CAR & / CAN PROMISE
You THAT IT WILL BE AN AMERICAN ONE.
You RECEIVED MY VOTE BOTH TIMES AND I'm
STILL ROOTING FOR you. PLEASE KEEP UP THE GOOD
WORK.
RESPECTFULLY YOURS,
Spank Suenson
218 KIMROD LANE
NC 28105