Page:Cabinet Memoranda 29 August 1945 (cab-129-1-cp-133).pdf/4

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 * WE were appointed by the War Cabinet at its meeting on the 6th January (W.M. (44) 2nd Conclusions) to consider the question of the constitutional policies to be followed in Malaya and in the British territories in Borneo on their liberation, and to recommend a directive on which the authorities responsible for planning the Civil Administration of these territories after liberation can work.


 * The composition of the Committee was as follows :—


 * The Lord President of the Council (Chairman).
 * The Secretary of State for Dominion Affairs.
 * The Secretary of State for India.
 * The Secretary of State for the Colonies.
 * The Secretary of State for War.
 * The Attorney-General.
 * The Parliamentary Under-Secretary of State for Foreign Affairs.


 * 2. Malaya.—A directive on the probable lines of future policy is indispensable for those who have the duty of planning the Civil Affairs policies and as a basis for the directive to be issued in due course on these matters to the Supreme Allied Commander, S.E.A.C.; and, on the understanding that no publicity is given to the policies contained therein, we are in agreement on the terms of the directive for this purpose, which form Appendix I to this report.


 * 3. Borneo.-The four British territories concerned (North Borneo, Sarawak, Labuan and Brunei) are at present in a United States sphere of command, the S.W. Pacific. His Majesty's Government are entitled, under the terms of the Charter of the Combined Civil Affairs Committee, to provide the American Commander with directives on Civil Affairs policies in these British territories, and a directive on Civil Affairs will need to be framed at the appropriate time for issue to him. But it is not our function to examine the form in which any such directive for that purpose will need to be framed. We have concerned ourselves only with a directive on which the British planning staff should work. For this limited purpose we have agreed upon a directive in the terms of Appendix II to this report.


 * 4. It will be noted that the Borneo directive proposes the acquisition by His Majesty's Government from the British North Borneo (Chartered) Company of its sovereign and administrative rights in North Borneo. We are of opinion that confidential discussion for this purpose should be opened with the Court of Directors of the Chartered Company, though we recognise that in the present uncertain position as to the value of the Chartered Company's assets in the Far East it would be premature to reach any agreement on the financial terms on which such a settlement could be reached.


 * 5. In the case of the Borneo directive, as in that of the Malayan, there is no question of any publicity being given to the policies beyond the confidential discussions which will be involved with the Chartered Company and the Rajah of Sarawak.


 * 6. To sum up, we accordingly recommend, with the proviso that no publicity for these policies is involved, that the Secretary of State for the Colonies be authorised—

(a) To issue the directive at Appendix I to the authorities responsible for planning for the Civil Administration of Malaya on liberation;

(b) To issue the directive at Appendix II to the British officials at present planning for Civil Administration in British Borneo after liberation;

(c) To Open confidential discussions with the Court of Directors of the British North Borneo (Chartered) Company with a view to coming to an understanding (without at this stage any financial commitment) as to the conditions on which the administration of North Borneo would be transferred from the Company's responsibility and control to that of His Majesty's Government; and