William H. Adair and Patricia Adair - Page 28

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                  Respondent argues that petitioner's election to be paid                               
            pursuant to the reimbursable option instead of as a direct hire                             
            reflects his intent to continue his employment relationship with                            
            the United States.  The legislation outlined herein specifically                            
            contemplates that transferees could retain such rights and                                  
            benefits and further specifies that one of the deterrents to such                           
            transfers was the prospect of reduced salary scales upon                                    
            transfer.  We note that the London Agreement provided that the                              
            U.S. Government was to pay its nationals assigned to NATO at                                
            rates determined by the former.                                                             
                  NATO, during petitioner's term of transfer, exclusively                               
            directed petitioner's daily activities including the sequence of                            
            tasks, the desired results to be achieved, and the means by which                           
            such results were to be obtained.  Petitioner was accountable                               
            solely to NATO.  This is revealed not only by NATO's personnel                              
            regulations but also by the loyalty declaration petitioner signed                           
            upon accepting his appointment to NATO.                                                     
                  Respondent argues that even though petitioner may be an                               
            employee of NATO pursuant to the common law test, petitioner also                           
            remained an employee of the United States for purposes of section                           
            911, by virtue of the benefits and rights he retained as a                                  
            transferred employee.                                                                       
                  Respondent suggests that the common law test for "employee"                           
            should be construed broadly so as to consider the significant                               






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