by: Governments of the United Kingdom

“ It is common knowledge that external capital and private enterprise have played a conspicuous part in the development of the Malayan economy, and it is no less than my duty at the present time of change and evolution in our political and constitutional affairs to make it clear that the Federation Government willingly recognises the contribution which overseas capital and enterprise have so made ... ”

“ To insist on the right to dispense with the services of pensionable officers would also weaken the effect both of the other assurances which we have agreed be given regarding service conditions, promotion and discipline and of any scheme of inducement allowance, Malayanisation need not be prejudiced because, whatever assurances are given, any entitled officers are certain to opt to retire under the provisions of a compensation scheme immediately it is introduced. ”

“ Compensation Scheme A scheme will be introduced in two phases. Until 1st July, 1957, members of Her Majesty's Overseas Civil Service will be permitted to retire on earned pension even if they have not served for the ten years normally required for pension purposes. After that date they will be free to retire when they will and entitled to lump-sum compensation in addition to their earned pension. It will also then be open to the Federation Government to dispense with an overseas officer's services on payment of the due compensation and pension. ”

“ If, at the time when the Federation attains full self-government within the Commonwealth, there is any unspent balance of allocations made to the Federation under the Colonial Development and Welfare Acts, the approval of Parliament will be sought to enable an amount equivalent to any such balance to be made available to the Federation for development expenditure ”

“ In normal times the force will be largely self-directing, under its own professional head, since its duties are for the most part laid down by statute.
19. Operations apart, we distinguish two categories of questions affecting the police: general problems of the structure, size, organisation, powers, duties and renumeration of the force; and personnel problems, such as appointments, promotions and discipline. We recognise that the former are questions of policy and require settlement in Executive Council or by the Head of State. ”

“ Normal retirements on grounds of age will continue. Other officers are likely to be transferred to other territories and the Secretary of State for the Colonies will do his best to transfer any officer at the request of the Federation Government. Meanwhile, no new overseas officers will be recruited on pensionable terms unless the Federation Government specifically so request, and the existing powers to dispense with the services of officers on abolition of office or on such grounds as gross inefficiency and misconduct will remain. ”

“ We further agree that, in order to facilitate the transfer of officers to posts which, in view of, the high level of salaries in the Federation, might be less well paid than an officer's existing post, consideration should be given to a scheme whereby an officer would receive a lump sum payment to compensate him for any drop in pensionable emoluments on transfer. ”

“ In this context, we recognise fully the vitally important position of the Federation in the world-wide struggle against communism and the fact that operations in the military sphere must be backed by a sound and vigorous programme of economic and social development. ”

“ The Chairman should be a person who will command the respect both of government and of the Service and should be given the authority and standing necessary to establish the Commission as an important and respected national institution, 45.⁠ We have agreed that the Public Service Commission should exercise its responsibilities in respect of all branches of the service other than the Judiciary and the Police. ”

“ We recognise that ultimate responsiblity for policy will rest with the Executive Council, and we welcome the proposal to establish, under the chaimanship of the Chief Minister, an Economic Committee of the Executive Council, charged with the responsibility of coordinating economic poilcy and determining priorities, in the belief that such a Comittee will greatly assist and strengthen the work of government. ”

“ But there is a risk that if in practice the Government makes it clear that it intends to exercise that right, many valuable officers will opt to go. Whatever inducements the Government may offer to certain officers to stay, all officers will feel that sooner or later their services may be dispensed with and many of the best, who can most easily obtain other attractive employment are likely to leave as soon as possible. ”

“ The Reserved Executive Power The High Commissioner will in future act on the advice of the Executive Council unless he considers it expedient in the interest of public order, public faith or good government to reject their advice. ”

“ One of the most essential ingredients of a contented and efficient service is that promotions policy should be regulated in accordance with publicly recognised professional principles. The Service must feel confident that promotions will be determined impartially on the basis of official qualifications, experience and merit. ”

“ There will be a Minister for Commerce and Industry, who will be an unofficial, unless the Chief Minister should wish the post to be filled by an official, and he will take the place of the Minister for Economic Affairs. ”

“ There was some difficulty with the Malayan Delegation about the position of Her Majesty the Queen in relation to the British Settlements of Penang and Malacca, but the Conference ultimately recorded a clear understanding that nothing in the terms of reference should be taken to prejudge the recommendations of the Commission on this matter. ”

“ While these measures were under consideration the Alliance [1] pressed for an effective majority of elected members in the Legislative Council; and in 1954 a number of their representatives, led by Tunku Abdul Rahman visited London and urged their views upon the then Secretary of State for the Colonies. ”