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 development and we urge that the Central Authority should see to it that there will be an equalising of opportunities for development in all States, particularly in North Borneo and Sarawak, and that they will be well provided with the necessary resources and technical knowledge.

225. In the field of industrial development, we are of the opinion that increased opportunities should also be given to these new territories of Malaysia and that every effort should be made to reduce any effect which the free play of economic forces may have of widening the gap between these States and the other more industrially advanced States of Malaysia. In this respect we would strongly recommend that there should be joint consultation between the Central Authority and the States concerned on industrial location to ensure that development will be well co-ordinated and distributed. Such co-ordination, we feel, is also vital in the efforts to attract foreign investments.

226. We are pleased to note in North Borneo and Sarawak that valuable help is being given in many fields by other Commonwealth Governments, by the Colonial Development Corporation and by such international organisations as the United Nations Specialised Agencies and the Colombo Plan. We also understand that there are non-Governmental bodies which are involved in providing technical assistance in these territories. We are most anxious that the flow of such assistance should not in any way be reduced by reason of the change of status of the two territories. We hope that the independent status of these States within Malaysia would facilitate a greater measure of assistance from Governmental and non-Governmental sources alike, and that the Central Government would see to it that the assistance and co-operation given would be channelled in their direction.

227. In the light of the objectives outlined above, to which we attach the greatest importance, we recommend that the Joint Working Party (Economic) should examine the subject in detail and devise appropriate measures by which they may be realised.

228. Before we conclude, we would wish to stress the importance of the contributions which British sources have made to the development of these territories and the necessity for the continuance of such financial and technical assistance. We would urge most strongly therefore that Her Majesty's Government and the Federation Government should arrive at some arrangement whereby North Borneo and Sarawak would continue to benefit from these sources. This may well be a subject which could appropriately be examined by the Working Party (Economic) referred to above.

229. We encountered strong feelings among the people of the Borneo territories that they should be given priority in education in Malaysia, primary, secondary and high level, and that the aim should be a parity of educational facilities and opportunities for them with the rest of the Federation. There was also a strong feeling that the present policy in education in each territory relating to the teaching of English and English as the medium of instruction should be retained.

230. We are agreed that education should be a Federal matter. This is particularly important in view of the progress in education which the Borneo territories expect with their entry into Malaysia. We think therefore that special