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 Negara, the State Bank of Malaya.

We must not suppose that this is the last we shall see of Malaya. I hope that our associations with Malaysia will be long-continuing and as close as they have always been in amity, friendship, and also 951 in co-operation. There is still a considerable need for aid and trade with this area, as with many others. North Borneo (or Sabah, as we now call it) and Sarawak will certainly need a tremendous amount of help from Her Majesty's Government in the years to come. They are, in many respects, of course, developing—to use the polite expression we use nowadays; they are underdeveloped. They are a very small population spread over this considerable area of Borneo; and it is our duty, and I hope it will be our pleasure, to do everything we can for them. We shall be much aided, as I said yesterday when speaking on the Rhodesia and Nyasaland Bill, by the determination of President Kennedy to make adequate provision, or to agree to join in making adequate provision, for the growth of international liquidity to expand world trade over the years ahead. This determination of the President is a highly important statement, and, of course, will help tremendously the economies of the underdeveloped nations.

In Borneo, I think that more than anything they will need smallholder schemes. They are also going on with smallholder schemes in Malaya, where I know the Tunku and Tun Razak are particularly interested in these features. But in Borneo they will also need them. It will be a great part of their economy to get the rural areas prosperous, and that is the best way of doing it. Many areas, such as in Singapore and other parts, will need more light industry, and there, too, we can help. Singapore, Kuala Lumpur and Hong Kong (which is not in this, but which I mention because it has some of the same problems as these other cities) can give us a great lead, and show an example to us in housing. When I hear of the difficulties of housing a few thousand immigrants in Paddington and in North Kensington, it seems very odd to me when one realises the way in which Hong Kong and Singapore manage to house their people. Take Hong Kong, with the hundreds of thousands of immigrants they have had in the last few years. They put the houses and the flats up. In Hong Kong, they even build flatted factories, which means that factories are built on the flat principle, because land is so scarce. They have all sorts of ideas in these countries which we could adopt here. The traffic should not be one 952 way by any means. In housing and in the provision of factories, and that sort of thing, Singapore, Kuala Lumpur and Hong Kong can teach us a tremendous lot; and I would suggest to Sir Keith Joseph that in the very long Recess we are going to have he pays a visit to Singapore and Hong Kong, and perhaps Kuala Lumpur, to see how they house their people in congested areas—and he will have a surprise.

So far as trade is concerned, it is very important that we take the products. I said this yesterday, and I say it again to-day: we must take the products of these countries as soon as any of these countries, any of these cities, begins producing anything. Whenever they produce anything, even with money provided by us, there is almost immediately a howl from over here and an immediate demand for a tariff, a barrier, or for some sort of quota. Even this week in this House, on the Finance Bill, Members from both sides were moaning about imports from Hong Kong. What does the Commonwealth mean unless we can help them by taking their products? What is the good of trying to help developing countries unless we take their goods when they make them?

The World Bank has just made an interesting Report on Malaysia and it said that the creation of a common market in the new Federation of Malaysia is "highly desirable" and will give a powerful stimulus to industrial growth, but special arrangements will be needed to protect the entrepôt trade of Singapore and Penang. I am certain that the Government of Malaysia will look at this Report carefully and will have regard to the entrepôt trade—and particularly that of Singapore—because this trade is very important; and I see no reason why, through bonded warehouses and so on, it could not be combined, even though a common market is established.

I was interested to hear what the noble Marquess said about Brunei. I am sorry, as he is, that Brunei is not part of the new Malaysia; but I think it was right not to bring undue pressure in that direction. In time it will come in, but it is a matter for the Government of Brunei to decide. I see that in a statement the other day the Sultan of Brunei said that he required certain assurances about external defence and internal security. That is a problem for this country;