by the Governments of the United Kingdom of Great Britain and Northern Ireland, Brunei, Federation of Malaya, North Borneo, Sarawak and Singapore

“ Once the Federal Government assumes a general financial responsibility for Service pensions the British Government will also, under the proposed Overseas Service Aid Scheme Agreement with the Federation, reimburse the Federal Government in accordance with the principles of the Scheme the proportion of an officer's pension attributable to the pensionable element in the inducement allowance provided by the British Government. ”

“ Where an officer retires from the pensionable service before the final instalment of compensation has been paid to him, he will be given a final certificate of his entitlement as soon as possible after his retirement leave has expired and after all details of his age, salary and length of service at the date of his final retirement have been taken into account. ”

“ The arrangements for the Public Service have three main purposes to provide for the proper functioning of the Federalised and State Departments in the Borneo States when Malaysia comes into being while preserving the existing terms of service of serving officers, to provide for the progressive Bomeanisation of the State Departments and over an interim period of the Federalised Departments, and subject to these interim arrangements provide for the full integration of the Federalised Departments with the Federal Public Service as a whole. ”

“ Provided that there is a general revision of salanes consequent upon the revaluation of the currency in use in ⁠⁠⁠⁠ as a result of which the pensionable emoluments of an overseas officer may be increased the Government of ⁠⁠⁠⁠ may require that officer to agree that any pension that may be granted to him shall be calculated at the rate of exchange prevailing at the date of the revision of salaries before granting him the benefit of the increase of pensionable emoluments. ”

“ Parliament may by law make any provision necessary to adapt Articles 83 to 86 in order that they may apply to land in the States of North Borneo, Malacca, Penang, Sarawak and Singapore as nearly as practicable, having regard to differences in the system of land tenure, in the same manner as they apply to land in other States. ”

“ The Federal Government should be able on the occasion of any review to vary any of the assignments of revenue specified in sub-paragraph (2) (i) (a) , (c) or (d) , on the second or a subsequent review, that specified in sub-paragraph (2) (i) (b) ; on the second or a subsequent review this power should extend to any substituted assignment made on the occasion of a previous review, Where the Federal Government intends to do this, it should give the State concerned and the assessor notice of its intention, and the assessor should take the effect into account his recommendations. ”

“ Where such quarters in North Borneo and Sarawak were occupied by officers serving in or seconded to Federal departments, the Federal Government would pay to the State Government concerned an economic rent on a basis to be agreed. The payment of an economic rent would not affect the question of rent to be paid by the individual officer. The same principles would apply where a Federal quarter was occupied by a State officer. ”

“ The British and Malayan Governments have received and studied the report of the Commission under the Chairman of Lord Cobbold which visited North Borneo and Sarawak earlier this year to ascertain the view of the inhabitant on the proposal to create a Federation of Malaysia embracing Malaya, Singapore, North Borneo, Sarawak, and Brunei. ”

“ Furthermore, in order to ensure that the central government will have adequate powers to govern during a national emergency, Article 150 should also be amended to give Parliament unqualified power, while a Proclamation of Emergency is in force, to make laws which appear to Parliament to be required by reason of the emergency with respect to any matter, other than religion, citizenship, language, Muslim law or the custom of the Malays or Native law or custom in North Borneo or Sarawak, notwithstanding anything in the Constitution. ”

“ The level of Federal taxation in the Borneo States should be brought up to Federation of Malaya levels in graduated stages over a period of years and the steps should not be grossly disproportionate. There should be ad hoc consultation with the senior officials concerned in the Borneo States regarding tax changes and in addition the Borneo States should each be represented on a Malaysian Board of Income Tax. ”

“ Entitled officers who are borne on the establishment of the Government of North Borneo/Sarawak, who, on the operative date, are seconded for service outside North Borneo/Sarawak, will be treated in the same way as other entitled officers, and the compensation will be paid to them in accordance with paragraph 6 of this Scheme. Where an entitled seconded officer was, serving on an incremental scale at the time of his secondment, compensation will be calculated on the basis of the point on that scale which he would have reached had he not been seconded. ”

“ Sarawak and North Borneo should have a right to raise loans within the confines of the State with the approval of the central bank for the time being of Malaysia, and Article 111 of the Federal Constitution should be amended accordingly. ”

“ An officer who takes up an established appointment in the Home Civil Service without a break in service may be regarded for the purpose of the North Borneo/Sarawak Pensions Law as having been transferred to the Home Civil Service Subject to the provisions of paragraph 11 above, he will be required to refund any instalments of compensation he has received and will not be eligible to receive a pension from the North Boraco/Sarawak Goverment (or any other scheduled govemment which he has served) until his final retirement from public service. ”

“ Where an entitled officer has other scheduled service, his eligibility for pension in respect of that other service will depend on the pensions law relating to it, An entilled officer who elects to retire before he has completed ten years total pensionable service (including qualifying service which is not in itself reckonable for the computation of pension) will be eligible only for a gratuity in respect of that part of his scheduled pensionable service which was not served in North Borneo Sarawak ”

“ Officers who are pensionable under the Oversea Superannuation Scheme are not entitled under the Regulations of that Scheme to commute any part of their pensions but instead receive a smaller pension and a lump sum which is equivalent to one-quarter of a normal pension multiplied by a factor of 10. ”

“ In recognition of the fact that the Sarawak State Departments are still relatively undeveloped compared with their Malayan equivalents and because otherwise there would be no means of enabling them to develop to an acceptable level the escalating annual grant together with the natural growth in State revenue and revenue assigned will, until the first independent review, assure an expansion of State services of not less than 10% per annum provided examination of expenditure over the period 1959 to 1962 shows a rate of expansion in such services of not less than that rate. ”

“ Incidence of Income Tax
⁠ (i) Compensation payments (whether paid in a lump sum or by instalments) , disturbance grants and capital sums paid in respect of commutation of pensions, whether paid to the officer or (in the event of his death) to his dependants or his legal personal representatives shall not be liable to income tax either in the United Kingdom or m North Borneo/Sarawak. ”

“ Until the Federal and State Govemments agree otherwise, in filling posts in Federalised Departments in the States the full qualifications normally required by the Federal Government for candidates for each grade of the Service will be brought into line with the qualifications at present in force in the States Instructions to the Public Service Commissions will provide that when a local candidate is in sight no vacancy will be filled except on a temporary or contract basis or by promotion of a serving officer. ”

“ Federal Law should not provide for special financial aid for the establishment of Muslim institutions or the instruction in the Muslim religion of persons professing that religion in respect of North Borneo and Sarawak without the concurrence of the State Government concerned ”

“ If any decision of a Service Commission has the effect of withholding, suspending, reducing or otherwise altering to his detriment any pension compensation or other retiring benefit due to or in respect of an entitled officer, be or his lcgal personal representatives as the case may be shall have the right to appeal against the decision to an Appeals Board whose decision shall be final. ”

“ There are a small number of officers not eligible for designation under the Overseas Service Aid Scheme who are in receipt of overseas inducement pay from the Sarawak Government The Sarawak Government will consider whether some alternative offer of premature retirement terms should be made to them. ”

“ The Judiciary
⁠ (1) In addition to a supreme Court of Malaysia the Federal Constitution should establish three High Courts, for the States of the existing Federation, Singapore and the Borneo States [3] respectively. ”