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already been made. The Government has also intro- duced National Registration and this is almost Page 134mpf4881. Powers have also Page takef 488 declare "closed areas". The declaration of the first "closed area" produced immediate results in the form of volunteered information. I should also
add that the High Commissioner is trying to awaken among the Chinese a determination to resist the impositions of the bandits; various Chinese associations have now come forward openly to denounce the payment of protection money and, still more important, a Malayan Chinese Association has been formed on his initiative which has among its objects co-operation with the Government in restoring peace and in providing money and men to help in settling the squatters as peaceful citizens.
Nevertheless, the European community, on whose efforts the maintenance of the whole rubber and tin economy of the country depends, is feeling the effects of the strain and danger. There are constant demands for more troops to be sent. The situation would be helped by a few spectacular successes and more active collaboration of the Chinese community; otherwise it looks as if we are faced with a long struggle of attrition. All the help possible is being given to the planters and miners but it is difficult to see what additional assistance could relieve the strain to which they are constantly subjected.
10.
A paper on the internal security and local defence forces required in Malaya is now before the Chiefs of Staff and will form the basis of a report by the Minister of Defence and myself to the Defence Committee. The High Commissioner has strongly represented that financial assistance from His Majesty's Government will be necessary if the present scale of police forces in Malaya is to be maintained and if the planned expansion of the Malay Regiment and other local defence forces is to go ahead; and the Chancellor of the Exchequer has agreed that substantial help must be forthcoming. It is hoped that this expansion will in due course release part of the strategic reserve in the Far East for service in Hong Kong, if necessary, but it is unlikely that this could take place before the end of the year, at the earliest.
11.
I am confident that the High Commissioner will represent urgently to me any further powers he may need or assistance in men and materials as he may require.. I do not think there are any further measures which can be taken in London to strengthen our position.
Colonial Office, S. W. 1.
5TH MARCH, 1949.
A. C. J.