# Report of the Commission of Enquiry, North Borneo and Sarawak, 1962/CHAPTER 2

London, United Kingdom: The National Archives, Kew, pages 40–55
CHAPTER 2 ENQUIRY IN NORTH BORNEO Section A,——Background
95. North Borneo is bordered on the south-west by Sarawak and on the south-east by Indonesian Kalimantan. From Jesselton, the capital, it is 1,000 miles to Singapore and 1,200 miles to Hong Kong. The country is smaller than Sarawak (29,388 square miles, or roughly the size of Ireland) and more compact, though mountainous and densely forested. Mount Kinabalu (13,455 feet) can be seen from many parts or the Colony. Great rivers ﬂow ​from the mountains, the largest towards the east coast. The coast is indented, with many offshore islands, and we saw busy deep water harbours at Jesselton, Sandakan, Tawau, Kudat and Labuan. Wide stretches of grassland are found in the interior plains. Over 40 per cent. of the population is concentrated in the west coast agricultural belt where the land is clearer and more fertile and communications are easier. The interior plains are less populous, whilst the east coast, comprising over half the country, has large areas of uninhabited rainforest behind a few coastal centres of population and economic activity such as Sandakan and Tawau. As in Sarawak, the basis of the economy is agriculture, forestry and fisheries; the principal exports being timber, rubber and copra.
96. The country's finances have improved rapidly during the last few years. This has made it possible to embark on a development plan which includes a number of major new roads. These will open up new areas where the soil is known to be excellent for such crops as wet rice, oil palms, cocoa, abaca and rubber. The atmosphere in North Borneo is an exhilarating one. Production of the main export crops of timber, rubber and copra has been expanding rapidly and there is full employment. Indeed, the industries on the east coast in the Tawau and Sandakan Residencies attract immigrant labourers in large numbers from Indonesia and to a lesser extent from the Philippines. The chief towns have been rebuilt on imaginative lines since the destruction at the end of the war with Japan, and the country as a whole is looking forward to a bright and prosperous future.
97. North Borneo was governed by the British North Borneo (Chartered) Company from 1881 until 1942 when it fell to the Japanese. In 1946, the territory became, with Eabuan, the new Crown Colony of North Borneo. The Government is administered by a Governor and Commander-in-Chief appointed by the Crown. The Constitutional Instruments provide for Executive and Legislative Councils, both presided over by the Governor. Recently an unofficial majority was introduced into the Legislative Council, which now consists of the Governor as President, 4 ex officio Members, 3 official Members and 18 nominated (unofficial) Members. Unofficial Members are at present appointed by the Governor after considering recommendations by Local Authorities and other bodies. The Executive Council consists of the Governor as President, 4 ex ofifcio Members, 2 official Members, and 6 unofficial Members.
Section B.—Arrangements for Commission's Visit
98. As in the case of Sarawak, the Government of North Borneo had arranged before our arrival for the Commission to make an extensive tour covering most of the Districts in all four Residencies in the Colony. The itinerary is contained in Appendix A. We held hearings altogether in 15 different places over a total period of just under four weeks. On one occasion (on Friday, 13th April) the weather prevented us from landing at Ranau where we were due to hold hearings, but the people concerned were brought to Jesselton to see us two days later. This was the only engagement during the whole of our tour of Borneo that we failed to keep. Where it was impossible for us to travel ourselves to some of the remote districts, arrangements were made for representatives from those districts to come into one of the centres which was on our programme.
99. We were given every facility by the North Borneo Government to make what inevitably was a strenuous exercise as little tiring as possible. We travelled ​nearly everywhere by chartered aircraft but we made full use too of the North Borneo Railway. Only on two days did we travel by road, and on one by launch and motor boat.
100. The Government Paper on "North Borneo and Malaysia" was published at the end of January 1962, a few weeks later than the publication of a similar Paper by the Government of Sarawak. Although the Government did everything possible to have the Paper distributed widely and speedily, it appeared to us that there was insufficient time before the Commission's arrival for a careful study to be made by every section of the population regarding the implications of the Malaysia proposals for North Borneo.
Section C.—General Observations
101. Both on our first visit to the main centres and on our second visit to the rest of the territories, our tour in North Borneo followed immediately on our tour in Sarawak. We were therefore always conscious of the similarities and dissimilarities between the two territories. We have found it often convenient in this Chapter to refer back to the previous Chapter. We have felt that this method not only avoids unnecessary repetition but is also helpful in giving a general picture of the attitude to Malaysia in the two territories. The paragraphs which follow should therefore be read with Section C and D of Chapter 1.
102. A newcomer to the territories is struck by the fact that there is surprisingly little "come and go" between the two territories themselves. This is doubtless due largely to the difficulty of communications and to the low level of import and export between the two territories. Contact between the territories is increasing with developing air services, with common political interests, with an integrated judiciary and progress in integrating other public services, and with the formation of a free trade area. In their relations with the outside world there are many similarities and some dissimilarities. In both territories Malay is the nearest approach to a "lingua franca", Islam is the religion of around a third of the population, and there are the cultural and historical links of the Malayan Archipelago. The commercial interests of North Borneo, however, particularly in the flourishing Chinese business communities of Sandakan and Tawau, lie more with Honk Kong and eastwards than with Singapore. Moreover, the indigenous races in the two territories are different, although there are naturally some races living on both sides of the boundary.
103. In North Borneo, as in Sarawak, we were greatly impressed with the background of friendly race relations which clearly has existed in the past and which to a large degree still exists to-day. As we have said earlier, this atmosphere of racial harmony is very precious in a multi-racial country and one which must at all costs be preserved if the country is to have a happy and prosperous future. We should like here to draw attention to a most encouraging development. We refer to the process of assimilation by inter-marriage and social contacts generally which has been taking place in the interior between the Chinese and the Dusun or Kadazan peoples. While the offspring of such marriages may require special attention in the constitutional definition of "native", we are much heartened by this development.
​104. We have drawn attention to the disturbance to race relations in Sarawak arising at the time of the first elections, which marked the earliest moves towards a transfer of power from the British Government to the people. The subsequent bid for power, as reflected in the formation of political parties, was intensified by the proposals for Malaysia. In North Borneo, on the other hand, the struggle for power had not yet begun, as there had been no elections or any other suggestion of a transfer of power until the Malaysia proposals were put forward. Only recently have plans been made for election to District Councils and Town Boards, with the intention that this will lead to a system of indirect election, on the Sarawak pattern, to the Legislative Council.
105. The conflict of opinion after the Malaysia proposals were put forward follows broadly similar lines to that in Sarawak with the important and fortunate difference that it has not been bedevilled by the intervention of Communist influence.
106. In North Borneo, as in Sarawak, a major strand in the opposition to Malaysia among the Chinese lies in genuine fear of discrimination, which they believe would be practised on them, affecting their education, language and culture generally, and reducing them to the status of what is popularly known as "second-class citizens". These anxieties are honestly held and should receive serious consideration. At the same time, there is fear among the Chinese business community that Malaysia would involve a new and heavier tax structure. At present also, as a racial group, the Chinese enjoy educational, economic and commercial superiority over the indigenous population. They are wary of the prospect that, with Malaysia, they might suffer from competition with Singapore or from discriminatory arrangements made in the process of correcting the present imbalance of economic status between themselves and the indigenous people.
107. There exists, too, though not to the same extent, the sense of frustration among younger Chinese to which we have called attention in the Chapter on Sarawak. Educated in Chinese schools, ambitious and often with emotional inclinations to China, they foresee few outlets for their abilities and fear that Malaysia would prejudice such prospects as they now have.
108. With these factors and with the intensification of political activity, it must be recognised that, whilst Communist influence has not yet made itself felt to any extent, there exists fertile material on which Communist infiltration could work in the same way as it is already working in Sarawak. The Communist danger cannot be excluded for the future.
109. It is in fact the hope that Governmental action would help to correct the present imbalance of economic status between the Chinese and themselves which constitutes a strong argument among many indigenous people in favour of Malaysia and of its early realisation. In the face of the inevitable prospect that at some time they would have to share political power with the Chinese, they are extremely anxious that they should be able to compete on an equal footing in the economic and commercial fields. There was therefore a unanimous demand by the indigenous people that their position under Malaysia should be analogous to that of the Malays under the present Malayan Constitution. ​Equally, there was great emphasis on the need for an even more vigorous programme in rural development and in education and great interest in the achievements of Malaya in these directions.
110. At the same time there is general awareness among the leaders of the principal political parties, many native leaders and not a few Chinese, that an independent North Borneo on its own would be threatened both internally by disruptive tendencies of racial conflict and externally by her more powerful neighbours.
111. We are bound to record that, even more perhaps than in Sarawak, there are large sections of the population in the interior who have no real appreciation of the Malaysia proposals. This is partly due to the late publication of the North Borneo Government Paper, partly to the difficulties of communication, and partly to the general level of political consciousness. To these people, any change is necessarily to be looked upon with great suspicion. They are happy under the present colonial administration, they have a high regard for the efficiency and impartiality of the British officers, and they entertain high hopes of progress under their present Government. Their predominating desire therefore is that there should be no radical change in the present way of life. There is a definite fear that any change may bring about a deterioration of conditions.
112. We have found near-unanimity on some points, and differences on others, on lines identical with those in Sarawak set out in paragraphs 33-38 of Chapter 1, and for the same reasons. Thus those who support Malaysia agree that Federation should come quickly and should have a strong Central Government to deal in particular with external relations, defence, internal security and economic development. All native populations agree that they should be given analogous treatment to that of the Malays in Malaya, that land, forestry and agriculture should be controlled by the State Government, and that customary rights and practices should be safeguarded. Groups of all races agree that immigration from other parts of the Federation should be controlled by the State Government, that British officers should be encouraged to stay on, and that there should be no rapid change in administrative arrangements affecting the daily life of the people. There is the same unanimous approach by the indigenous people on the one hand and the Chinese on the other to the question of a Head of State for North Borneo. There are the same differences on such matters as the Head of the Federation of Malaysia, national religion, national and official languages, and allocation of powers between Federation and State.
113. The differences of opinion in North Borneo do not, however, follow quite such marked divisions between each indigenous group, whose attitudes may therefore be considered together. The position and attitude of the Chinese call for separate consideration.
Section D.—Summary of Evidence from Indigenous and Chinese Populations and Political Parties
Indigenous Peoples
114. The indigenous races in North Borneo together make up a total of 306,498 out of a total population of 454,421 at the time of the 1860 census. The ​Dusuns (or Kadazans) are numerically the largest group with 145,229, followed by the Bajaus (59,710), the Bruneis (23,450), and the Muruts (22,138). More detailed figures are in Appendix B. We have already stated that many indigenous people are averse to any change because of their lack of knowledge of the proposal and their satisfaction with the present way of life. This general feeling of uneasiness was particularly emphasised by Murut groups in the Interior Residency. At the same time there was often readiness to agree to the Malaysia proposals, although they were not fully understood, on the grounds that they would not be recommended by the British Government if the true interests of the people of North Borneo were to be jeopardised thereby.
115. These remarks should not be taken as any adverse comment on the quality of native leadership, for which we have a high appreciation. Although elections have not been held in North Borneo, it is clear to us from the leadership at present shown in the various District Councils and Town Boards, in the Legislative and Executive Councils and at the deliberations of the Malaysia Solidarity Consultative Committee, that the present leaders represent native interests with ability and responsibility. Difficulty is admittedly experienced in finding candidates among the indigenous people of the necessary calibre for appointment to the more responsible posts in Government service: but there are gratifying signs that increasing experience and the extensive training schemes now under way will help to remedy this position in a few years' time. Although among much of the indigenous population there is evident satisfaction with the present way of life and suspicion of change, there is increasing recognition among many of their leaders, who are better able to understand the wider aspects of these questions, that it is not possible for the present arrangements to continue for much longer. They are aware that in a few years at the most and possibly even sooner, other countries in East and South-East Asia might cast envious eyes on a prosperous country such as North Borneo with its rich undeveloped resources and small (but rapidly growing) population; the fact that it was still a Colony of the United Kingdom would provide an excuse for assuming a cloak of respectability in proposing to "liberate" its inhabitants from the "shackles of imperialism". Some of the leaders of the political parties are much concerned about this possibility and, after careful thought and despite initial misgivings, have reached the conclusion that the prospect of gaining independence through becoming a partner in a Federation of Malaysia is North Borneo's best hope for the future. In most cases, however, they are insistent on the necessity of obtaining certain assurances and safeguards.
116. Particular reference must be made to the Muslim section of the indigenous peoples. At the time of the 1960 census as many as 172,324 or about 38 per cent of the population of North Borneo were Muslims. The largest group are the Bajaus (over 59,000) who are virtually all Muslims. Next come the Bruneis (about 23,000), and other smaller communities such as the Bisayas, the Sulus and the Orang Sungei. The total of 172,324 also includes the great bulk of 24,000 Indonesian immigrant labourers. Of the other indigenous races, only some 10,000 out of over 145,000 Dusuns are Muslims and the number of Muruts who are Muslims is negligible. ​117. To this substantial Muslim minority there was a decided attraction in the idea of joining up with the Federation of Malaya, where Islam is already the national religion. The attraction was even greater when it was realised that there was a prospect that more would be done in the way of improving the position in society of the indigenous peoples. We found that there was almost complete unanimity of support among these communities for Malaysia, and in most cases they expressed agreement with the recommendations made in the report of the Malaysia Solidarity Consultative Committee (see Appendix F), A point which was frequently mentioned to us by representatives of these communities was that a Federation of Malaysia would provide protection against the menace of Communism. One or two groups expressed a desire to be reunited with Brunei.
118. The safeguards which were suggested to us varied considerably in importance. In setting them out below, we shall endeavour to indicate the degree of importance which was attached to each of them and the extent to which they represented the views of substantial sections of the indigenous population. The suggestion was sometimes made that safeguards should be symbolised, following tradition, by a stone monument as lasting reminder of the assurances given.
Whenever this matter was raised by delegations of indigenous peoples, the request was made that the Head of State should be a "Bumiputera" (or native). Much less frequently, the appointment of Chief Minister was mentioned, and it was clear that there was some confusion of mind regarding the division of functions between these two posts. While some groups asked that the Chief Minister too should be a native, others were ready to agree that he might come from any race, provided that he was a citizen.
On the question of the eligibility of the Head of State for the post of Head of the Federation, few opinions were expressed. Some were ready to accept a situation where the Yang di-Pertuan Agong would continue to be elected from among the Rulers of the States in Malaya, so that the Head of State in North Borneo could never be eligible; some considered that their Head of State should also be eligible.
There was a general demand that îmmigration from other parts of the Federation should be controlled by the State Governments.
The request came from the Muslims that Islam should be the national religion, as in the Federation of Malaya. There was everywhere agreement, however, that there should be no restrictions on complete freedom for other religions. On the other hand representations were made by many persons of other religious faiths that, as Muslims were in a minority in North Borneo, ​there was no case for forcing Islam on the country as the religion of the State; nor should Islam be the national religion in the new Federation. Some of the non-Muslim groups expressed the anxieties which we had already heard in Sarawak about possible preference for Muslims over non-Muslims.
Many groups who appeared before us displayed great anxiety that North Borneo should be adequately represented in the Federal Parliament and that, in this and in other respects, she should not be treated as equivalent in status to one of the States in the present Federation of Malaya, for example, Penang or Malacca. The point was made that North Borneo's size alone justified special treatment and that the much greater distance between the Borneo territories and Kuala Lumpur also had a bearing on the matter. A number of persons expressed the view that the new Federation should consist of five units—the Federation of Malaya, Singapore, Sarawak, Brunei and North Borneo—and not 15 units as would be the case if the Federation of Malaya disappeared as such, and was regarded as 11 separate States which would each join the new Federation on equal terms with the four new units. The reason for this attitude was clearly a fear that North Borneo's interests might be overlooked or given too little weight.
For somewhat similar reasons, a number of groups proposed that a limited number of subjects only should be "federalised", at least in the initial stages. Some suggested that external affairs and defence only should be Federal subjects in the first instance, together with those aspects of internal security which were necessarily allied to external affairs. At the same time there were many who held high expectations of the practical benefits which Malaysia would bring, such as free education and accelerated rural development; they wished to see a strong Central Government which would be in a position to carry out these schemes as soon as possible.
Still others recognised the advantages to be gained from the federalisation of a number of subjects in due course, but were anxious that the change should be a gradual one. The desire for careful consideration, during a transitional period, before any subject was made Federal, was undoubtedly influenced too by the fear that the immediate transfer of authority over shch subjects as education and health services would be likely to carry with it the necessity for contributions from North Bornea in the form of heavier taxation.
Among the indigenous peoples there was a general acceptance of the proposition that Malay, which is already the lingua franca of North Borneo, should become the national language. This was combined, however, with the strong request that English should continue to be recognised as an official language, and that the Government's present policy regarding the use of English as a medium of instructions should ​be continued. Some groups asked that other native languages should be given official status so that they could be used in the future elected Councils.
There was unanimous agreement among native groups that, in addition to the customary rights over land and to certain other existing privileges, the special position accorded to Malays under the Federation of Malaya Constitution should be extended to the indigenous peoples in North Borneo to enable them to obtain educational and other qualifications, or to gain experience in business, in order to compete on equal terms with the other races in the country.
In a few cases it was proposed that the special privileges should continue for a limited period of years only.
Some groups expressed concern at the possibility that after a Federation of Malaysia had been established, the Constitution might be amended by the Federal Parliament in Kuala Lumpur to North Borneo's disadvantage and without her consent. These views were sometimes put forward in conjunction with those already referred to in (e) above as justification for specially favourable treatment over representation in the Federal Parliament.
A number of groups considered that, during an initial period (usually put at 3-5 years), North Borneo should be at liberty to withdraw from the new Federation if her elected representatives became convinced by experience that the arrangements were not in her long-term interest.

## The Chinese

119. It is desirable to consider the Chinese separately, first because their position in North Borneo to-day is different in law from that of the indigenous peoples. Certain privileges are already reserved for natives, for example in regard to land, and special measures have been taken in recent years to ensure that better facilities are available for the education of natives, including priority for scholarships overseas. The Chinese have supported the need for these measures in view of the general backwardness of the indigenous peoples.
120. A second reason for dealing separately with the Chinese is that their attitude towards the Malaysia proposals is influenced by the fear that their position as non-natives will be further subordinated to that of the indigenous peoples, particularly in regard to citizenship, entry in to the Government services and in the commercial field.
121. The total number of Chinese in North Borneo was 104,542 at the time of the 1960 census. They form the second largest racial community, the Dusuns being the largest, and make up 23 per cent. of the total population. The rate of increase over the nine years since the previous census in 1951 has been as high as 40.6 per cent. and none of this is due to immigration. At the time of the 1960 census approximately 46 per cent. of the Chinese were under the age of 15, and 77 per cent. of the total were born in North Borneo.
​122. The general attitude of the Chinese in North Borneo towards the proposals for the creation of a Federation of Malaysia was very similar to the attitude of the Chinese in Sarawak; but with the important difference that there was no sign in North Borneo of the extreme views which were expressed to us in Sarawak in opposition to the scheme by some of the delegations from the Sarawak United Peoples Party which were undoubtedly influenced by Communists. Generally, the views held by the great majority of the many intelligent and responsible Chinese who came to see us were that Malaysia was a desirable aim, but that it was premature. Many felt that the British Government would be failing to carry out their obligations if they forced North Borneo into a Federation of this kind before she had reached the stage when her own elected representatives could decide the issue.
123. Many Chinese were, however, realistic enough to recognise that external factors might make it impossible for the present colonial system of administration to continue—perhaps for a number of years—until North Borneo could be granted self-government. It was therefore necessary to regard the early establishment of a Federation of Malaysia as a distinct possibility. They asked that, in this event, their views on the following matters should be given careful consideration before any final decision was taken.
The request was made that this post should be open to any local citizen of North Borneo and should be filled by election, not by appointment by the Yang di-Pertuan Agong.
A number of Chinese told us that they did not regard it as satisfactory that the Head of State in North Borneo should never be eligible for the position of Head of the Federation.
The Chinese took the same stand as the indigenous peoples on the necessity of control by the State Government.
There was a universal request from Chinese for complete freedom of religion, as at present. Some groups also expressed the opinion that not only should there be no State religion in North Borneo, but that Islam should not be the national religion of a Federation of Malaysia. In general the views of the Chinese on the question of religion were the same as those of the indigenous peoples, other than Muslims, which are recorded in paragraph 118 (d) of this Chapter.
There was little difference between the views expressed to us by the Chinese on this subject and those of the indigenous peoples (see paragraph 118 (e) above). They were concerned that North Borneo should be in a position to exert effective influence on the Federal Government in Kuala Lumpur.
​On the specific question of representation in the Federal Senate, some groups proposed that North Borneo should have more than the two seats allotted to each State under the present Constitution of the Federation of Malaya. Some asked for as many as eight seats.
The general view among the Chinese was that Malaysia should be a "loose" federation and that the only Federal subjects should be external affairs, defence and internal security. Many Chinese wished to be assured that Malaysia would not bring any increases in taxation and wanted North Borneo to retain control of her own finances, apart from an agreed annual contribution to the Federal Government towards the cost of services provided by that Government.
The view most frequently expressed to us by Chinese was that there was no objection to the acceptance of Malay as one of the national languages in North Borneo, but that English should also be recognised as a national language. Some Chinese, however, were of the opinion that there should be no national language.
On the question of official language, there was a general request that English should be an official language for all time. Some asked that, for purposes of debate and discussion in Councils, other languages, in addition to English and Malay, should be recognised as official languages—for example, Mandarin and Kadazan.
Some Chinese groups referred to and supported the Government's policy of converting all schools to English-medium instruction and were opposed to any change to Malay-medium instruction for children whose home language was not Malay.
The view of responsible Chinese was that there are sound reasons for granting special privileges to the indigenous peoples, especially in the fields of education and overseas scholarships. They are less disposed to agree to special treatment over business licences. In most cases, however, the Chinese considered that such privileges should be temporary only and subject to review from time to time, and that they should be granted as a matter of administration by the Government of North Borneo. They objected strongly to their being incorporated in the Constitution, with the implication that they were there for all time, and to the authority for giving directions in regard to special privileges being the Yang di-Pertuan Agong.
The views of the Chinese were identical with those of some indigenous groups which have already been recorded in paragraph 118 (i) of this Chapter. Various suggestions were made as to how North Borneo could be secured against amendments of the Federal Constitution which were not in her interests. In the case of the State Constitution, ​it was proposed that a two-thirds (some said four-fifths) majority should be required for amendments. A further point made was that where there was a conflict between the Federal and State Constitutions, the State Constitution should prevail.
This is a matter on which the Chinese in North Borneo, as in Sarawak, feel very strongly indeed. They do not always understand fully the situation in Malaya and entertain various fears of discrimination against the Chinese in the acquisition of Federal citizenship. There was also the question of a test in the national language; if that is to be Malay without the option of English, such a condition would not be acceptable.
A request was made to us by many groups of Chinese that the conditions for the acquisition of citizenship which at present apply in North Borneo should not be changed for persons who are already in the country at the date of establishment of the new Federation. No similar request was made on behalf of persons who might be admitted to the country after that date.

## Political Parties

124. In the following paragraphs we set out the views of the main political parties which appeared before us or sent us written memoranda.

## United National Kadazan Organisation (U.N.K.O.)

125. The United National Kadazan Organisation was formed in August 1961 and was based on earlier Kadazan Associations. At the time of our visit it was claimed that a total of 60 branches had been established or were in the process of being established. The great majority of these are in the West Coast and Interior Residencies, where the party undoubtedly commands substantial support among the non-Muslim native population, especially perhaps in the areas within easy reach of Jesselton. The membership of the party is estimated at 20,000.
126. The party's attitude towards the Malaysia proposals has undergone a considerable change since it was first formed, but the earlier fears and misgivings have steadily been dissipated and the party now fully supports the proposals, subject to the acceptance of a number of safeguards which it considers to be of great importance to the Kadazan people. The president of the party was elected chairman of the Malaysia Solidarity Consultative Committee (see Introduction, paragraph 4) and, although satisfied with the assurances given by representatives of the Federation of Malaya Government who were members of that Committee, and in full support of the recommendations made in the Committee's report, the party felt it desirable to restate its case in favour of Malaysia in full to the Commission. The main arguments put forward were:
​Self-government first would mean that the heirs, when the British leave, would be the Chinese owing to their educational and economic superiority. This in turn could lead to domination by Communism.
127. The more important of the safeguards and recommendations which the party would like to see adopted, in addition to the recommendations of the Malaysia Solidarity Consultative Committee, are the following:
A clear statement should be made in the new Constitution that although Islam may be the religion of the Federation, it will not be forced on North Borneo as the religion of the State.
Malay is acceptable as the national language, but English should be used as an official language without any time limit. In Kadazan areas, Kadazan should be taught in the schools.
The many Kadazans of mixed blood should be eligible for the special privileges to which the indigenous peoples will be entitled if the recommendations of the Malaysia Solidarity Consultative Committee are accepted. Customary rights to land and Kadazan customs, traditions and culture should be fully respected and protected.
To be under State control.
This should be much larger than any of the States in the present Federation of Malaya and much larger than Singapore. In the Senate, North Bomeo should have eight members.

## United Sabah National Organisation (U.S.N.O.)

128. This party is open to all races but depends for its strength on the Muslim community. One estimate of the membership of the party was 21,000 but the party headquarters claimed a membership of 60,000.
129. The party is a strong supporter of Malaysia particularly as a defence against Communist encroachment. The following points were emphasised:
130. The party supports the recommendations made by the M.S.C.C.
131. Other points made by U.S.N.O. groups in various parts of the country were: The protection of the British should not be withdrawn and British officers should remain until local men can be trained to take their places. The State religion should be Islam and more Islamic schools were required. There should be no change in the Constitution of the Federation unless with the overwhelming agreement of the people. More vigorous plans for the education of natives and for rural development were required. The special position of Malays in the Constitution of the Federation of Malaya should be accorded to the natives of North Borneo in the Constitution of Malaysia.

## The National Pasok Momogun Organisation or National True Sons of the Soil Association

132. This party, predominantly composed of non-Muslim Dusuns, was formed in Keningau in opposition to U.N.K.O. It has an estimated membership of 10,600. The party draws most of its upport from the Keningau and Tenom areas. It is not possible to give any accurate figures of membership, particularly since a struggle for the leadership of the party has led to a splinter group being formed. There appeared to us to be little difference in the point of view put forward by the two leaders.
133. The party's attitude to Malaysia is that while appreciating the merits of the concept, they feel that the people of North Borneo are politically too immature to make a proper contribution to such a Federation. They ask that the British Government should continue the process of education of the people and development of the country. When North Borneo has gained its independence it will be in a better position to make a decision on this matter. In the meantime the British Government should concentrate the resources of the ​country on a more vigorous programme of education and do more to train the political leaders of the future.

## The Democratic Party

134. The party is open to all races and is supported in the main by small traders, wharf labourers and transport workers and operators in the Jesselton and Tenom areas. One estimate of the membership was 2,120 but the party claimed a membership of between 22,000 and 24,000.
135. The party considers that North Borneo should be independent before she is asked to consider the proposals for Malaysia. The following points were made to the Commission.

## The United Party

136. This party has emerged from a multi-racial organisation formed by Chinese business men in Sandakan. The party commands a great deal of support among the Chinese in Sandakan and of many influential Chinese business men and landowners throughout North Borneo. The estimated membership of the party is 11,400. The policies of the party are supported by the Borneo Times, a daily newspaper which has a Chinese edition.
137. The party opposes the Malaysia plan on the ground that the proposal is premature and should not be considered until North Borneo has gained her independence. The party considers that North Borneo should have self-government in 1963 and that thereafter it is a matter for the people to decide whether or not they wish to enter an association with Malaya, Singapore and the other Borneo territories.
138. The party submitted a comprehensive and carefully drawn up memorandum which set out their views and then went on to criticise in detail the recommendations of the M.S.C.C. Report with an examination of its implications. The Memorandum also contained a statement of the terms on which the United Party would, after North Borneo had achieved self-government, be willing to consider an association with Malaya, Singapore and the other Bomeo territories.

## Liberal Party

139. This party was in process of formation when the Commission visited ​Sandakan. No ﬁgures of membership were available but we were informed that the party was multi-racial.
140. The party is against Malaysia and feared that a closer association between North Borneo and Singapore and Malaya would increase the risk of Communist inﬁltration. The party preferred to see a merger of the three Borneo territories, the United Nations develop the natural resources of the countries, and Britain and the United States of America protect them from the Communists or any outside threat. The party spokesman feared that there would be no independence through Malaysia but rather than that: Borneo territories would become dependency of Malaya