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 the people of those two countries and, in modern circumstances, will give cooperative security against Communist advance. It will also render possible a comprehensive development plan for the Bornean States and will afford a guarantee against infectious influences front Communist sources in neighbouring countries.

It is a matter of deep regret, of course, that the Sultan of Brunei has been unable to associate his country at present with the Federation, but I am also confident that the early future and the natural tendency of his geographical position will bring Brunei into the Federation on terms which, I am sure, will ultimately satisfy His Highness and his people. The union of Singapore with the Federation of Malaya was, and is, obviously beneficial as a step for both countries, politically and economically. Singapore in days gone by always was part of the same country, and politically and economically their trade is so interlocked that the need of unified financial planning and economical operation is too obvious to need any stressing by me. It is interesting to note that the World Bank is already recommending and ready to support a scheme for the creation of a common market for the Federation of Malaysia, a scheme which would reconcile the interests of the entrepôt trade of the great free port of Singapore with the agricultural and mining and growing industrial economy of the Malay States.

So, my Lords, the foundation of this new State will carry our warmest good wishes. There are two Malay proverbs which occur to me in this connection and which may perhaps appeal to the noble Lord, Lord Shepherd, if not to others of your Lordships. The first of them is: ""Tali yang banyak lembar-nya ta'senang putus"," which being translated means: "A rope of many strands is not easily broken"." The other one, which the Malays are doubtless applying to this situation is: "Kalau pokok banyak akar-nya, lagi tegoh, apa di-Takutkan ribut"," which also being translated means: "If a tree has roots, many and firm, it need not fear a tempest." In conclusion, those of us who know the countries of Malaysia so well may echo the sentiment behind Kipling's famous words about India: "I have eaten your bread and salt," "I have drunk your water and wine," "The deaths ye died I have watched beside," "And the lives that ye led were mine." "Was there aught that I did not share" "In vigil or toil or ease," "One joy or woe that I did not know," "Dear hearts across the seas?" My Lords, we give our most hearty support to the Second Reading of this Bill.

2.48 p.m.

LORD TWINING My Lords, I propose to confine myself to some remarks on North Borneo, where I had the honour to serve as the first Governor appointed by the Crown when it became a Crown Colony in 1946. Although I know that numbers of your Lordships are familiar with the affairs of that territory and several have visited it in recent years, it is a subject which has been neglected in your Lordships' House. I have done some research in Hansard, and between 1946 and 1961, when the first mention of the idea of a Federation of Malaysia was made, I have been able to find only two references to North Borneo. One was in 1951 in connection with a project of the C.D.C., and the other in 1958 when it was mentioned that his Royal Highness the Duke of Edinburgh would be visiting the Colony. The reason for this apparent neglect was probably that the affairs of the Colony were going smoothly and that the reconstruction and development plans were proceeding satisfactorily. If your Lordships will be good enough to forbear with me I should like to say something about this delightful country, and I hope my remarks may facilitate the appraisal 961 of our responsibility towards the people of North Borneo.

From 1882 to 1942 the country was administered by the British North Borneo Chartered Company, having been ceded by the Sultans of Brunei and Sulu. I should like to pay tribute to the work done by the Chartered Company. Its resources were slender, but it did a great deal to develop the country and to provide it with a good administration. The officers of the company were recruited quite differently from those of the Colonial Service, but they managed to build up a fine esprit de corps, and, to their great credit, they gained the trust and affection of the people. In my experience, I have not found anywhere such good race relations as existed there. The policy was not multi-racial but non-racial, and though the staff was thin on the ground—Parkinson's law was not applicable to North Borneo at that time—they gave most devoted service, and many of them elected to stay on when the administration was transferred to the Colonial Office in 1946. They have made a considerable contribution to the recovery of the country since the war,