# Report of the Commission of Enquiry, North Borneo and Sarawak, 1962/CHAPTER 4/Anthony Abell and David Watherston

London, United Kingdom: The National Archives, Kew, pages 63–73
Section E.—Recommendation by Sir Anthony Abell and Sir David Watherston
149. We would make it clear at the outset that, on the basis of the assessment of opinion in the territories which is recorded in earlier chapters of this report, we have reached the conclusion that, on appropriate conditions, Malaysia is an attractive and workable project, and would be advantageous to all parties concerned.
​150. Before coming to this conclusion, we have felt it our duty to consider whether it offers to the Borneo territories a better future than other possible solutions. such as indefinite continuation of British rule, early independence on their own, or the creation of an independent Federation of the Borneo territories by themselves. We are convinced that, provided it can be achieved with due regard to the special position of these two territories, to the racial complications, to the physical distance from Kuala Lumpur and to their political immaturity as compared with Malaya and Singapore, the Malaysia project offers Sarawak and North Borneo better prospects of security and prosperity than any other solution in view. Opponents of Malaysia have often alleged to us that the project has been devised merely to help in dealing with the Malaya-Singapore situation, and that North Borneo and Sarawak are being treated as political pawns. This view is particularly strong in some quarters in North Borneo, where traditional links of trade have been more with Hong Kong, Japan and Australia than with Singapore or Malaya. This argument goes on to say that the Borneo territories have been comparatively free of Communism and that a link-up with Malaya and Singapore would involve them unnecessarily in struggles between Communists and anti-Communists. This view seems to us to disregard the impact which a change or regime in Singapore would inevitably have on Sarawak immediately, and on North Borneo very shortly thereafter. it does not lead us to modify our opinion that, both on economic and on security grounds, a successful realisation of Malaysia would be to the advantage of the two territories.
151. We recommend that a decision ot principle on the Malaysia project should be taken as soon as possible by the British and Malayan Governments, subject to debate, and support by a majority of unofficial members, in the Sarawak and North Borneo Legislatures. Once this decision of principle has been reached, we consider that a first step should be taken within l2 months at the most, and that this step should comprise the creation of a Federation of Malaysia. For the reasons set out in the following paragraphs we recommend, however, that the full realisation of Malaysia should be achieved in two distinct phases. we recognise and endorse the desirability moving forward as quickly as possible but we feel that there is a definite need for a transitional period during the early part or which there would be as little change as possible and which would allow time for the complicated machinery of federation to be worked out to the best advantage both of the Borneo territories themselves and of the Federal Government. We believe that the proposals that we put forward would go a long way towards reassuring the opponents and critics of Malaysia in the Borneo territories, and would enhance the possibilities of bringing the different races together in a constructive partnership with the other parts of Malaysia, without in any way prejudicing the final achievement of a strong and single-minded Federation. Our reasons for recommending a transitional period are based on our strong conviction on the following points.
(a) We feel that Her Majesty's Government have very clear obligations towards the peoples of the two territories, both general and, in Sarawak, deriving particularly from the Cardinal Principles (Appendix C) and the reply to the Petition to Her Majesty The Queen referred to in paragraph 68, to ensure that the political institutions of the territories can be carried to a stage where the people are able to play a full part in their own Oovernment.
152. The considerations in the preceding paragraph lead us to the view that, during the transitional period which we have recommended, the general pattern should be the following:
Under the general supervision of this Committee we recommend that there should be such Joint Working Parties as are found to be necessary to examine certain ﬁelds in detail. We visualise that formal Working Parties will be required at least to consider the judicial, educational, and economic ﬁelds, and the public services; and there will certainly be others. In those cases where separate Working Parties are needed for each territory, there should be equal representation of the Federal Government and of the State Government concerned.
The Joint Committee and the Working Parties should give the highest priority to their task so that it can be completed and the new arrangements introduced with the least possible delay.
154. Turning now to the shape of long-term arrangements after the transitional period, we consider that the aim should be to strike a balance in the common interest between two conflicting requirements on the one hand, the Federal Parliament must have sufficient powers to ensure alignment of policies in matters essential to the creation and maintenance of a real and strong Federation. On the other hand, the Borneo territories should be enabled to maintain their separate identities within the Federation. Racial and other problems in the two territories are quite different from those in Malaya, and distances are so great as to make day-to—day administration from the Federal centre impracticable and undesirable.
155. Whatever the division of formal and legal powers between Federation and State. the practical administration of Federal subjects must largely be carried out on the spot. We recommend that the Joint Committee, whose appointment we have suggested in paragraph 152(f), should consider the desirability or regionalising the more important of the Federal posts and services in the Borneo territories. We believe that there may be a strong case for certain Federal Departments having a regional head in Borneo with sufﬁcient authority to deal with local problems. In this connexion a suggestion has been made to us that in due course the Federal Government should appoint a Minister for Borneo affairs with a general responsibility for Federal subjects in the two territories on the analogy of the Secretary of State for Scotland; this suggestion seems to us to merit serious consideration.
156. Many witnesses have insisted that the Borneo territories should not join just as two States of the new Federation but in some way which would give more recognition to their identities and to their comparative size. We agree that it is ​important that the identity and prestige of Sarawak and North Borneo should be maintained but we consider that this would be achieved by maintaining a high degree of local administration and by allocating to them a quota of seats in the Federal Parliament which takes into account their size as well as their population.
157. There are one or two matters which we feel require special mention, either because we hold divergent views from our colleagues or because they are of special significance to the Borneo territories and are referred to in the record of evidence.

## Head of State

158. We recommend that the Head of State should be appointed by the Head of the Federation acting in his discretion but after consultation with the Chief Minister of the State. His constitutional position should, we consider, be the same as that of the Governors of Penang and Malacca. In View of the strength of the opinions expressed to us in the Borneo territories, we consider it is desirable that the first Head of State after the transitional period should be a member of the indigenous races. We feel that thereafter this matter should be decided by the State Legislatures.

## The Judiciary

159 The distance between Borneo and Malaya leads us to believe that it would be wise to maintain for the Borneo territories a separate High court presided over by its own Chief Justice, and we would recommend that appeals from this Court should lie to a Federal Supreme Court. It might be advantageous if Judges or the Malayan High Court could be made available to sit as Judges of the Borneo High Court and when required and vice versa. We have recommended the appointment of a Working Party to examine the details of new arrangements which would be necessary including the method of appointment and removal of Judges in the Borneo territories, consequent on the new Federation. We cannot exclude the possibility that {[w:Brunei|Brunei]] may be interested in this Working Party.

## Special Position of Indigenous Races

160. As we have recorded earlier, native witnesses in both Sarawak and North Borneo asked that, in the matter of special privileges and opportunities, they should be put in a position analogous to that of the Malays in the Federation of Malaya. The Chinese, while opposing any suggestion that this privileged position should be written into the Constitution, agreed that in practice the native races should be given, at least for a period of years until they reached a more competitive level, the favoured treatment which they have in fact enjoyed under the Colonial Government.
161. We ﬁnd this a difficult problem and various differing views have been expressed in our discussions of it. One of us feels that Malaysia as a whole would be better without constitutional provisions of this kind and that in so far as the Borneo territories are concerned, they are in contradiction with the policy of equal opportunity for all races, which has been the basis of British policy since the war, and that they are not in the best interests of racial harmony or of the natives themselves, who would more easily be spurred to competitive ​effort without constitutional preferences. Me believes that better opportunities rather than privileges are required by the indigenous people of the Borneo territories.
162. The other British member considers that in the light of the existing provisions relating to Malays in Malaya, the native races in the Borneo territories could not be given less favourable treatment, and recommends therefore that they should be given analogous treatment to the Malays in Malaya, provided it is understood that these provisions are not a permanent feature of the Federal Constitution.
163. If a decision is taken that the provisions in the existing Federation of Malaya Constitution in this regard should apply to the natives of Borneo, we recommend that the question should be reviewed after 10 years in the light of the progress made by the native races. We further recommend that the provisions should apply to those citizens who are regarded as natives within the meaning of the Interpretation (Definition of Native) Ordinance of North Bonieo (see Appendix D) and in the case of Sarawak those who are regarded as natives within the meaning of Section 3 of the Interpretation Ordinance, 1953 (see Appendix D). We recommend that the Ordinances in the two territories should be examined with the object of bringing them into line. it is to be noted that the provisions in the existing Federation of Malaya Constitution apply to Federal matters only unless State Legislatures decide to adopt similar provisions for State matters. We recommend that the some distinction should apply in respect of the Borneo territories.
164. We agree with our Malayan colleagues that an Advisory Board, as recommended by them in paragraph 190(h), will be required to advise on the interpretation and administration of this complex and thorny subject.

## Representation in Federal Parliament

165. We have mentioned in earlier Chapters the strong desire everywhere expressed that the representation of the Borneo territories in the Federal Parliament should take account not only of their population but also of their size and potentialities. We strongly recommend that these desires should be met.
166, We concur in the proposals made by our Malayan colleagues in paragraph 190 (g).

## Allocation of Functions between Federation and State

167. While specific powers will be exercised by the Federation the residual powers will remain with the State and, subject to general observations made earlier in this chapter and to the particular observations which follow, we feel that the division or subjects between the Federal, State and Concurrent Lists in the existing Constitution of the Federation of Malaya would provide a reasonable basis.

## Public Services

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.
169. Both in Sarawak and North Borneo the Commission were able to meet delegations from the associations and unions which represent the majority of officers in the senior and junior branches of Government service. We were very impressed and encouraged by the responsible attitude of these delegations; although primarily interested in the future of the Government staff this did not conceal their real concern for the future welfare of the people of the Borneo territories.
170. One of the main attractions of the Malaysia proposals to the rural population of Sarawak and North Borneo is the vigorous programme of rural development in Malaya which has been given much publicity and has been seen and admired by the many people who have undertaken sponsored visits to Malaya. We are in agreement with the views of our Malayan colleagues in this matter (paragraph 220-228), and we recommend that a Development Board should be set up in both territories as soon as possible after Malaysia is formed with representation of the Federal and State Governments. These Boards should provide a focus for the continuation of the very valuable help which is being given in many ﬁelds by the Commonwealth Governments, by the Colonial Development Corporation, through the Colombo Plan and by various international organisations.