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 are proposed by the Malayan members, with which the British members generally concur.

(vi) Education

Education should be on the Federal list, but integration of Federal and State practice should take place gradually after careful study by a Working Party. The British members with whom I agree, stress the importance of maintaining existing policies regarding the use of English as a medium of instruction.

(vii) Regionalisation

The Federal services in the Borneo territories should be regionalised and officers should be appointed in the territories with sufficient authority to deal with local matters. I add a personal recommendation that, when expatriate officers are no longer needed for these posts, they should normally be filled by officers from the Borneo territories.

237. The British and Malayan members have both concluded that, on the lines of their respective approaches, a Federation of Malaysia is an attractive and workable project and is in the best interests of the Borneo territories. On the assumption that Singapore also joins in the Federation. I strongly endorse this view, adding that the inclusion of the Borneo territories would also be to the advantage of the other participants in the Federation. It is a necessary condition that, from the outset, Malaysia should be regarded by all concerned as an association of partners, combining in the common interest to create a new nation but retaining their own individualities. If any idea were to take root that Malaysia would involve a "take-over" of the Borneo territories by the Federation of Malaya and the submersion of the individualities of North Borneo and Sarawak, Malaysia would not, in my judgment, be generally acceptable or successful. I recommend that, in forthcoming negotiations, Governments should pay close attention to this point, both in its psychological and in its practical aspects.

238. The principal difference of approach between the British and Malayan members of the Commission, as set out in Sections B and C above, relates to the phasing of arrangements for the new Federation. I consider that a transitional period is most desirable. I agree generally with the arguments and recommendations set out in Section B, though I feel that the precise constitutional and other arrangements to govern a transitional period, and in particular the arrangements relating to Internal Security, must be matters for discussion between Governments. I urge most strongly that any arrangements made for the early years after Federation should provide for continuity of administration in the Borneo territories and should not result in any weakening, either real ofoe [sic] apparent, of authority in Kuching and Jesselton.

239. We were not required by our Terms of Reference to discuss these matters with the Government of the Federation of Malaya or to consider them in relation to the general situation in the area. I therefore recommend that the Governments concerned should discuss these matters as soon as possible in the light of the findings in this report and of the views expressed in the Report about