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 revolt.

The Report of the Inter-governmental Committee was published in February this year, was a unanimous Report. The representatives of North Borneo and Sarawak were satisfied that the safeguards which they considered necessary to meet their special conditions had been obtained. At the same time, they accepted the necessity for the Federal Government to have sufficient authority to hold the Federation together and to build up a strong federal unity. The Malayan gesture of goodwill in agreeing that the Borneo states with a population of 1¼ million out of a total of 10 million should have 40 out of 159 seats in the Federal Parliament, was a decisive factor in convincing the the Borneo leaders that there was here no question of a takeover bid, but a genuine offer of real partnership.

Partnership is the essential element in the agreement reached by the Intergovernmental Committee The Borneo States will have, as of right, funds to maintain and increase State services. Even in a major Federal subject like education, it was agreed that the policy and system of administration should not be changed without the consent of the State Government. Medicine and health, although this would normally be a principal Federal subject, will in North Borneo (though not in Sarawak) be a concurrent subject until 1970, because this was the wish of the peoples representatives. In immigration—a subject that is normally entirely under Federal control—the States have been given protection against the unrestricted movement of people from other parts of the Federation; and. except in specified circumstances, entry into the Borneo territories will require the Approval of the state concerned.

Although Islam will be the religion of the Federation there will be no State religion In the Borneo Slates, and no law can he enacted restricting the propagation or other religious doctrines, even among Muslims, without a two-thirds majority or the state Assemblies. I should perhaps mention that in Sarawak 23 per cent or the population is Muslim and in North Borneo think it is 37 per cent This was a matter to which the Borneo lenders attached the greatest importance They were also determined to maintain English as an official language, even though Malay will be the national language of Malaysia—a position which is to be maintained for ten years and cannot be changed, even on then, without the argument of the State Legislature.

Citizenship too is a matter to which great importance was attached. The recommendations or the Cobbold Commission were unanimously endorsed by the Inter-governmental Committee. Any citizen of the United Kingdom and colonies who was born, naturalised or registered in North Borneo and Sarawak and was ordinarily resident in the Borneo territories on Malaysia Day will automatically become a citizen of Malaysia. Any other person over eighteen years of age and ordinarily resident will be able to apply for registration as a citizen or Malaysia within eight year, subject to certain qualifications, of which the main one ls residence in Malaysia for seven out of the ten preceding years

But it would be a poor Federation that was based upon negative safeguards. I am convinced, and I am satisfied that the peoples of Borneo are convinced, of the clear, positive and compelling advantages or Federation. They know about the success story of the Federation of Malaya, and they are determined that in the wider context of Malaysia there will be equal success. The political and defence advantages of federation are obvious. An Independent North Borneo and Sarawak outside Malaysia, even if they had united, might at sometime in the future have offered a great temptation to acquisitive adventurers. Clearly the continuation of colonial rule would have become increasingly anomalous.

Economically, as a recently published report by a Mission of the World Bank, headed by my friend M. Rueff, has said: "Uniﬁcation will at the minimum create a larger economy which is more economically diverse than any of its component parts" I think the diversification of the economy of Malaysia is very important. M. Rueff goes on to say "Each territory is new heavily dependent on a few traditional sources of income and employment. With its wider resource base Malaysia's economy as a whole would enjoy greater stability than any of its components"." To Borneo itself Malaysia offers the best prospect to enhance the rate of development and or brining her standards or social service to higher levels. It is the conviction that Malaysia will mean increased development that has been one of the powerful stimuli in moving public opinion in favour of achieving independence through Malaysia. Under the