Page:Report of The Inter-Governmental Committee, Malaysia.pdf/33

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14. There are about 630 overseas officers either designated by the British Government under the Overseas Service Aid Scheme or members of Her Majesty's Overseas Civil Service, serving in the two States. On Malaysia Day those servicing in Federalised Departments will, like their local colleagues in these Departments, be seconded to the Federal Service on their existing terms of service. They will not be eligible to opt to join the Federal Public Service. Subject to the overriding requirements of Borneanisation they will be equally eligible with their local colleagues for promotion within the Federalised Departments according to current service principles and the provisions of paragraph 11 above. Pensions legislation will need to be amended to make such promotion effective for the purpose of pensions. While on secondment they will remain subject to the State pensions legislation and retain the benefits of the existing State Widows and Orphans' Pensions and Provident Fund legislation. The North Borneo Government have tabled a study of the prospects of future service by overseas officers. The Sarawak Government are engaged in a similar study These studies will be further considered by the Governments concerned and the intention is that they should enable these Governments to advise individual overseas officers of the minimum length of service likely to be open to them.

15. The inducement allowances, education alloawnces and half the passage costs of these officers are met by the British Government by reimbursement of the State Governments under the Overseas Service Aid Scheme Agreements concluded with the Governments in 1961. The Agreements are for a period of 10 years and payments will therefore continue after Malaysia Day. Payments will continue to be to the State Governments in respect of the designated officers remaining in State Service. In respect of officers seconded to the Federal Public Service for service in Borneo and in respect of judges, since these officers will be paid by the Federal Government the British Government are willing to enter into an O.S.A.S. Agreement with the Federal Government to make similar reimbursements to that Government. Such an Agreement will extend only to overseas officers serving in the Borneo States on Malaysia Day or overseas officers subsequently recruited under the arrangements in paragraph 17 for service in the Borneo States.

16. Once the Federal Government assumes a general financial responsibility for Service pensions, the British Government will also, under the proposed O.S.A.S. Agreement with the Federation, reimburse the Federal Government in accordance with the principles of the Scheme the proportion of an officer's pension attributable to the pensionable element in the inducement allowance provided by the British Government.

17. Under the Scheme it will be possible for the Federal and State Governments, subject to agreement with the British Government each year about overall costs, to continue to recruit on contract from overseas to fill gaps in the Services while Borneanisation proceeds. Save in exceptional cases new recruitment under the Scheme will be confined to citizens of the United Kingdom and Colonies and of the Irish Republic. The British Department of Technical Co-operation are willing to be agents for such recruitment and will need in any case to receive particulars of new recruits to discharge their statutory responsibility for the designation of officers under the Scheme.

18. Since the allowances under the Scheme are variable in accordance with changes in economic and other living conditions the British Government will wish to keep in touch with the Federal and State Governments about the working of the Scheme and, subject to their concurrence, with the staff associations concerned

19. As stated in paragraph 26(9) of the Report, the existing members of the Unified Judiciary in the Borneo States will continue in office as judges of the High Court of the Borneo States. In view of the overriding requirements of Borneanisation the term of office of those existing judges who are overseas officers will be for a period of years after Malaysia Day to be prescribed by The Federal Government. There should be provision to preserve the eligibility for full lump sum compensation payable by instalments for the existing judges who are overseas officers and they should remain designated officers under the Overseas Service Aid Scheme.

20. Existing members of the Judicial and Legal Services in the Borneo States will be eligible for appointment on transfer to the High Court of the Borneo States. Existing members who are designated officers will also be eligible for such appointment but in view of the overriding requirements of Borneanisation the appointment of any such officer should be for a fixed period in accordance with Article 174 (4) of the Federal Constitution. The transfer provisions of the compensation scheme should not apply to designated officers accepting appointment as judges of the High Court of the Borneo States and they should remain designated officers under the O.S.A.S..