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Rh He assured the Federation Delegation that in the constitutional and other development which lay ahead it would always be the desire of Her Majesty's Government to co-operate with the Federation Government in building a stable country.

5. In reply, the Chief Minister of the Federation of Malaya put forward the proposals which the Malayan Delegation desired the Conference to consider with special reference to the financial position, internal defence and security, the public services and the Constitutional Commission. The Conference agreed that these proposals should form the basis of its work and agreed to set up Committees to undertake detailed examination of the problems involved.

6. Our conclusions, which are set out below, are subject to approval by Her Majesty's Government in the United Kingdom and the Conference of Rulers. Effect can be given to some of our recommendations by administrative action, but others involve legislation, including in some cases amendment to the Federation Agreement and other constitutional instruments.

7. Throughout our discussion of the problems of defence and internal security we have drawn a distinction between two stages of constitutional development in the Federation of Malaya; the interim period before full self-government, during which Her Majesty's Government in the United Kingdom will continue to exercise certain important responsibilities in respect of the Federation; and the final stage of full self-government and independence within the Commonwealth. We have so framed our proposals for the interim period that, as well as reflecting the distribution of responsibility between Her Majesty's Government in the United Kingdom and Malayan Ministers during that period, they will be capable of being continued into the stage of full self-government with the minimum of administrative and other disturbance. Our object has been to reconcile the factors of continuity and efficiency on the one hand, with recognition of the evolving political facts of the situation on the other.

8. We agree that the member of the Government responsible in the Executive and Legislative Councils for matters of internal defence and security should, in place of the Secretary for Defence, be a Malayan Minister who should be styled Minister for Internal Defence and Security. We agree also that Her Majesty's Government through the High Commissioner should retain during the interim period full responsibility for external defence; and we consider that it would be appropriate that the High Commissioner should himself bring to Executive Council for advice or information matters relating to external defence and that the Chief Secretary should answer for these matters in Legislative Council.

9. The requirements of internal defence and security in the interim period need to be considered in two aspects; the arrangements for handling operations during the remainder of the Emergency and the transfer of the administration of the local internal security forces, which should be put in hand forthwith.

Emergency Operations

10. With regard to the remainder of the period of Emergency we agree that it is consistent with the present stage of political development of the Federation that there should be some change in the arrangements for concerting the operations of the armed forces, the police and the several civil departments and agencies involved. To this end we agree that the present Committee of which the Director of Operations is Chairman should be replaced by an Emergency Operations Council, with the Minister for Internal Defence and Security as Chairman and including the Director of Operations among its members. The forces required for the prosecution of the Emergency would remain under the operational command of the Director of Operations and would be used to aid the civil authorities in giving effect to directions of the Emergency Operations Council made in pursuance of policy as laid down from time to time in Executive Council. The Emergency Operations Council, like the post of Director of Operations itself, will be temporary and is not expected to outlast the Emergency. We recognise, however, that continuing arrangements will be required, also in the context of general policy as determined in Executive Council, for countering the threat of communist subversion.

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