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 especially by providing continuity to the good human relations which have been such a source of strength in the history of our administration there.

In 1942, when we were in no position to defend it, North Borneo was occupied by the Japanese. The territory was surrendered without a shot being fired. The European officials, traders and missionaries were interned and suffered great hardship. The native population, although dismayed, accepted the position as best they could, and many of them showed great courage in doing what they could to alleviate the conditions of their former masters. The Japanese administration was most rigorous and severe, and as time went on the position of the people became almost intolerable. In 1944, the occupying forces administered a devastating blow by the mass execution of all the intelligentsia on whom they could lay their hands. Several thousands perished.

In 1945 the tide of the fortunes of war turned and the. Japanese occupying forces came under strong Allied attacks. It was considered necessary to subject the important centres to aerial bombardment and the towns were completely destroyed and communications disrupted. 962 Allied forces were landed, and after hard fighting the country was liberated. I have always felt that the fact that the enemy was physically defeated on the ground had a great psychological effect on the people, which was manifested in their subsequent attitude towards us. The people gave their liberators a great welcome. They accepted the change to Crown Colony status, and, despite the pitiable conditions—the majority were without housing, clothing or personal possessions, and money and even foodstuffs were in short supply—they got down to the restoration of their country with determination and a splendid spirit. Their trust in the British was unbounded, and this made the task of the Administration, which was of great magnitude, much the lighter.

In the immediate post-war period North Borneo, like the whole of South-East Asia, was saved from famine by the organisation of the Special Commissioner for South-East Asia, under the noble Lord, Lord Killearn, who ensured that each territory in the area received a fair share of the limited supplies of rice and other primary foodstuffs which were available. The gratitude of the people of North Borneo was unmistakable.

The task of the British Administration was indeed formidable. We literally had to start from scratch. Everything was in short supply—money, materials and technical staff. The damage that had to be made good was valued at many millions of pounds. Despite the strongest representations and the sympathetic attitude of the Colonial Office, the funds that the British Government provided for rehabilitation were quite inadequate and at the time I thought ungenerous. True, the situation in the United Kingdom was difficult; but we had been responsible for the devastation and we were also responsible for the welfare of the people. But there was no complaint; only a realisation that Great Britain, despite its own enormous problems, was doing what it could. Unlike an attitude which I have found in some other places where financial assistance has sometimes been regarded, if not as a right, at least as fortuitous—in one place I was in it was known as "pennies from heaven", an attitude that tended to soften the moral fibre of the people—the population of North Borneo set to work with a will and toiled hard, whether at rebuilding or at cultivation. They lived thriftily and used their savings to re-establish their homes.

We had the pleasure of a visit from the noble Earl, Lord Listowel, who was Minister of State for the Colonies. He may remember inquiring from me whether we had been able to establish a 48-hour week. I had to reply that many people, especially the Chinese, seemed to be working a 148-hour week and no power on earth could stop them. The results were staggering and the country rapidly made a wonderful recovery. It was an outstanding example of what self-help can do.

I have tried to give a brief survey of the story of North Borneo in recent times, so that your Lordships may appreciate the great qualities of the people who inhabit it. In their eyes, at least, the British Administration has discharged its responsibilities to their satisfaction. It is against this background that we must consider the proposal for including North Borneo in the Federation of Malaysia. The total area of North Borneo is some 30,000 square miles, or about the size of Ireland. It is a mountainous country, and over 23,000 square miles, or 80 per cent. of the land area, is covered