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 of the Federation (which in due course would no doubt contain units from North Borneo) and overall Federal authority for the maintenance of law and order. There is, moreover, likely to be little argument regarding the transfer to the Federal Government of control over the Judiciary, which is at present operating as a combined Judiciary for the three Borneo territories, and such departments as Geological Survey, Audit, Health, Posts and Telegraphs. Marine and Civil Aviation (subject to safeguards for regional interests). Far less easy of solution are the subjects at present controlled by the Federal Government of the Federation of Malaya in respect of which there is strong feeling in North Borneo that safeguards need to be imposed and a wide measure of local autonomy assured. These subjects include religion, language, finance, the public service, education, citizenship, immigration and land development. It will be perhaps the most difficult part of the task of the Commission of Enquiry to make recommendations which would reconcile local needs and wishes with what the Malayan Government is prepared to concede. But there is no reason to suppose that the task is insuperable, for, as a demonstration of the sincerity of his intention to interfere as little as possible with the internal affairs of the Borneo territories, Tunku Abdul Rahman has already agreed that immigration to North Borneo from the other States of Malaysia should be a matter over which the North Borneo State Government should maintain control, and the door is clearly not closed to proposals in regard to other subjects. It would, indeed, be against the long-term interest of the Malayan Government to insist on excessive control against the wishes of the peoples of the Borneo territories, which would over the course of the years build up resentment and discontent leading to a repetition within Malaysia of the internal stresses and strains which in recent years have become apparent within the framework of Indonesia, and, more recently still, have culminated in the secession of Syria from the United Arab Republic. It may well be found that, on closer examination, the gap between opposing conceptions is not as wide as might at first sight appear. For example, in practice, many aspects of the present education policy in North Borneo are broadly similar to their counterparts in Malaya, and, while acceptance of education as a Federal subject without strong safeguards clearly presents difficulty, it is hoped that the Commission will be able to hammer out an acceptable solution. Similarly, Malay is the national language of the present Federation of Malaya and it is the "lingua franca" of the Borneo territories. In Malaya English is the main medium of education and is taught in all schools. The Constitution of the Federation of Malaya provides that for 10 years from Merdeka Day and thereafter until Parliament otherwise provides, the* English language may be used for official purposes. It has been explained that this period of 10 years or longer applies only to existing States of the Federation. A longer period could be applied to new States of the Federation of Malaysia if desired. The acceptance of Malay as the national language would not prevent the use, teaching, or learning of any other language nor would it prejudice the right, of any State of the Federation of Malaysia to preserve and sustain the use and study of other languages. The question of language, like that of the other matters listed earlier in this paragraph, is one that will no doubt engage the close attention of the Commission.

10. The deliberations of the Consultative Committee have done much to clarify the position of religion in Malaysia. Islam is the official religion of the Federation of Malaya. Although Malaysia would have Islam as the official religion of the enlarged Federation no hindrance would be placed on the practice of other religions. Complete freedom of religion would be guaranteed in the Federal Constitution. North Borneo, which at present has no established religion, would not be required to accept Islam as its State religion.

11. There has been much concern locally at the prospect of North Borneo losing control of the greater part of its revenues and expenditure and of the rate of economic development being retarded rather than accelerated. The finances and economic aspects of the incorporation of North Borneo into a Federation of Malaysia are complex and will require expert examination beyond the scope of this publication. Just as North Borneo and Sarawak, however, have recently thought it advantageous to conclude a free trade area agreement, so may a larger common market provided by Malaysia be expected to help to produce some economic advantages to all parts of the area. Since Merdeka there has been very extensive capital development in Malaya, which would no doubt continue in Malaysia and from which North Borneo would