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 territory. The peoples of Malaya and Borneo have cultural, economic and historical ties which make them fit naturally together as a group. This is universally recognised and at the recent Solidarity Consultative Committee meeting at Kuching all the delegates supported the concept of Malaysia. What is more difficult to is decide in what way Sarawak can best fit into this concept.

4. The first thing to be clear about is that Sarawak is not merely being invited to join the present Federation of Malaya as one of the States equal in states with the other existing States of the Federation. The equal in states with the other existing States of the Federation. The present 11 States of the Federation of Malaya will be merged in the Greater Federation of Malaysia and the Federation of Malaya as a political entity will cease to exist. This has already been partly achieved, to the extent that the Governments of the Federation of Malaya and Singapore have already agreed on the terms on which Singapore will join the larger Federation. The Prime Minister of Malaya has stated that in the "future constitutional arrangements, the Borneo people can have a big say in matters in which they feel very strongly". However, when considering what these future constitutional arrangements should be it is reasonable to take the Constitution of the present Federation of Malaya as a basis for which to start.

5. The present Federation of Malaya comprises 11 States each of which has its own State Constitution and Government certain powers reserved to it, the principle of which are control over local government, land, agriculture, forestry and State public works. The Federal Government controls external affairs, defence, internal security, civil and criminal law and the administration of justice, Federal finance, trade, communications, education, health, labour co-operatives and FedealrFederal [sic] public works, to mention the most important. There is also a list of subjects onwhich both Federal and State Governments can legislate btubut [sic] the Federal law prevails if it conflicts with any State law—the list includes social welfare, scholarships, town and country planning, protection of wildlife, sanitation, drainage and irrigation. The residual power of legislation rests with the State, i.e., the State retains the power to make laws with respect to any subject not specifically allocated to the FedearlFederal [sic] Government. Each State has its own Ruler or Governor or Head of the State, and its own State public service.

6. This Constitution provides for a strong Central Government where a great deal of power rests and which, in view of its wide responsibility, spends about three-quarters of the total revenues. The first instinct of people in Sarawak will be to require a much greater measure of local self-government than is afforded to the States of the present Federation. This is a natural instinct but it should not be pressed too far. To the extent which Sarawak demands a greater say in its local affairs it will have a lesser say in Federal affairs. This may not, in the long run, be in the best interests of Sarawak. We have been assured that representation in the Federal Legislature will not be based purely on population ratios but that account will also be taken of the extensive size and rural nature of the country. This means that Sarawak will have a larger voice in Federal matters than its population strictly warrants. All matters which it reserves to itself will have to be looked after by itself. Federal matters will be the responsibility of the Federation as a whole and will have the whole Federal resources behind their handling.

7. It is generally agreed that a Federal Government must have control over external affairs, defence and internal security. Sarawak would thereby have, through the Federation, representation abroad, participation in the armed forces of the Federation (which would certainly contain Sarawak units), and the Federal authority for the maintenance of law and order. What other Federal powers would Sarawak like to keep as State powers? The Prime Minister of Malaya has already agreed that migration to Sarawak from the other States of Malaysia is a matter on which the Sarawak Government can maintain control. The method by which this may be achieved can be devised by constitutional experts. If it becomes necessary for the development of the economic potential of Sarawak to have more people from other parts of Malaysia this will be decided by the people of Sarawak themselves.

8. It would be an odd Federation which did not have a common system of administration of justice. Justice is at present administered in Sarawak by a combined judiciary covering North Borneo and Brunei. The extension of this to a Federal judiciary should present little difficulty.