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 122. The general attitude of the Chinese in North Borneo towards the proposals for the creation of a Federation of Malaysia was very similar to the attitude of the Chinese in Sarawak; but with the important difference that there was no sign in North Borneo of the extreme views which were expressed to us in Sarawak in opposition to the scheme by some of the delegations from the Sarawak United Peoples Party which were undoubtedly influenced by Communists. Generally, the views held by the great majority of the many intelligent and responsible Chinese who came to see us were that Malaysia was a desirable aim, but that it was premature. Many felt that the British Government would be failing to carry out their obligations if they forced North Borneo into a Federation of this kind before she had reached the stage when her own elected representatives could decide the issue.

123. Many Chinese were, however, realistic enough to recognise that external factors might make it impossible for the present colonial system of administration to continue—perhaps for a number of years—until North Borneo could be granted self-government. It was therefore necessary to regard the early establishment of a Federation of Malaysia as a distinct possibility. They asked that, in this event, their views on the following matters should be given careful consideration before any final decision was taken.

(a) Head of State The request was made that this post should be open to any local citizen of North Borneo and should be filled by election, not by appointment by the Yang di-Pertuan Agong.

(b) Head of Federation A number of Chinese told us that they did not regard it as satisfactory that the Head of State in North Borneo should never be eligible for the position of Head of the Federation.

(c) Immigration The Chinese took the same stand as the indigenous peoples on the necessity of control by the State Government.

(d) Religion There was a universal request from Chinese for complete freedom of religion, as at present. Some groups also expressed the opinion that not only should there be no State religion in North Borneo, but that Islam should not be the national religion of a Federation of Malaysia. In general the views of the Chinese on the question of religion were the same as those of the indigenous peoples, other than Muslims, which are recorded in paragraph 118 (d) of this Chapter.

(e) Status of North Borneo in Malaysia There was little difference between the views expressed to us by the Chinese on this subject and those of the indigenous peoples (see paragraph 118 (e) above). They were concerned that North Borneo should be in a position to exert effective influence on the Federal Government in Kuala Lumpur.