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 been able to visit this area, I have very much enjoyed the company and, I believe, the confidence, of many of its representatives and students. With them, I have taken an interest in following the developments which have led to this Bill.

I have only one regret, and it is upon this that I wish to say a few words which I hope all concerned may find helpful. It is a regret which, as the noble Marquess, Lord Lansdowne, has said, is shared by Her Majesty's Government: that the Sultan of Brunei has not found it possible to join the Federation. Some two years ago the Sultan flattered me by wishing to know my opinion of the proposals which were then coming under discussion. I listened to the understandable fears of the many students who were in this country, and who were looking forward, as soon as they became qualified, to taking up positions of responsibility in their home State. They felt that developments were coming too fast for them, and hoped, as they told me, that we, the British, would not abandon them before they had more locally-born trained administrators to take over. Although I did not feel competent to offer advice (because I had not studied the problems on the spot) I said that it seemed to me that Brunei would be well advised to join an area Federation, provided they secured the necessary safeguards so that the wishes of the Brunei community were respected.

In some ways Brunei is a lucky community. It has a small population, and during the last ten years has enjoyed a large income derived from the development of its natural resources. These, however, are not inexhaustible and certainly cannot be counted upon to last for ever. Diversification is almost nonexistent.

I have had the opportunity of some long and frank discussions with His Highness since he decided, with the support and advice of the Brunei delegation, that he was unable to join the Federation. The Sultan in these talks with me paid tribute—and I believe all noble Lords will appreciate the spontaneous expression of his feeling—to the understanding that successive British Governments have shown to the people of Brunei during the protectorate. He also paid tribute to the patience and fairness which, he told me, the noble Marquess had shown during the negotiations.

It was, I think, in 1959 that His Highness made over to his people the considerable personal revenue he had enjoyed, reserving for himself and his wife only a modest allowance. In 1961, when federation was first mooted, Her Majesty's Government, were aware, I think, that the people of Brunei were rather reserved in their attitude, and that it would not be possible for Brunei to join the Federation unless the Sultan could assure his people that they would be fully safeguarded. At that time His Highness believed that it would be possible to do this. I feel that a visit and study by the noble Lord, Lord Cobbold, when he went to Malaya, would have been useful and helpful, and I believe that the failure of Brunei to invite him and his colleagues was a great pity.

His Highness is anxious that the reasons for the decision of Brunei not to join the Federation at present should be fully understood. I feel that I cannot do better than refer to the statement issued by the Brunei delegation announcing their decision on July 8 last; and, with your Lordships' permission, I will read the relevant short paragraphs. The statement says: "To-day the Government of the Federation of Malaya have informed the Brunei delegation that they now find themselves in a position where they are unable to give effect to terms previously agreed or to assurances repeatedly given. In these circumstances, His Highness and his Government are left in doubt of the ability of the Government of the Federation of Malaya at the present time to give effect to the negotiated terms governing the entry of Brunei into Malaysia. They are unable, therefore, to take part in the signing of the Malaysian agreements." Reading between the lines of this statement, it is obvious that an unfortunate lack of confidence had crept into the minds of the Brunei delegation. Confidence is as important as a Constitution, for suspicion can wreck the mutual respect which is necessary between those who are to work together.

While I was trying to understand what went wrong, His Highness invited me to study a number of documents. I do not think that it would help the cause of Brunei, or of the new Federation, to say more about these documents than that I satisfied myself that they contained a number of suggestions and statements which, however well-intentioned, were