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 (g) Labour and Social Security

We think that some degree or concurrence may be appropriate as regards legislation affecting trade unions and labour disputes in the case or territories such as North Borneo and Sarawak, which are so far from the Federal centre. Similar considerations apply in the case of charities and charitable institutions, where responsibility for day-to-day administration is very much a local matter and should clearly remain so.

(h) Welfare Aborigins

We consider that the inclusion of this item in the Federal List would not be appropriate in the case of North Borneo and Sarawak.

168.—(i) One effect of the transfer of a number of subjects to a Federal list and of the transfer of the departments dealing with those subjects from the State Governments to the Federal Government, will be that the officers of the Borneo services in those departments will come under the control of the Federal Government. We recommend that such officers should not become transferable to other parts of the new Federation without their consent nor should the terms and conditions of the Federal service be applied to them, unless they opt to join that service and accept liability for transfer throughout Malaysia.
 * Public Services

Further, the promotion prospects of officers in this category within the area of their original service should not be prejudiced. (ii) In addition to the purely Federal services there are in the present Federation of Malaya certain joint services common to the Federation and one or more of the States. These include the senior staffs of such departments the Agricultural, Forestry and Veterinary Departments, which will remain State Departments in the Borneo territories after Malaysia comes into being.

We recommend that officers of the Sarawak and North Borneo Governments in these departments who possess the necessary qualifications should be considered, if they so desire, for admission to the appropriate joint service provided that they accept liability for transfer throughout Malaysia.

(iii) Officers in the Federal and joint services in the Borneo territories, should, subject to the views of the Working Party whose appointment we recommend in subparagraph (vii) below, come under the jurisdiction of the appropriate Federal Service Commission. We recommend, however, that these Federal Service Commissions should make special arrangements for the exercise of their functions in the Borneo territories. We regard it as essential that persons from the Borneo territories, including senior officers of the Federal services serving in Borneo with their first-hand knowledge of the people and of local conditions, should be associated as closely as possible with the Commission's work. It is important too that there should be close liaison between the Federal Service Commissions, and the Public Service Commission or Commissions in the Borneo territories, possibly by one or more persons being members of both Federal and State Commissions.

(iv) A public Service Commission has already been set up in Sarawak, so far without executive powers. We recommend the early establishment of a