492

PUBLIC RECORD OFFICE

Reference :-

C.O. 882/10

PUBLIC RECORD OFFICE, LONDON

ALLY WITHOUT PERMISSION OF THE BE REPRODUCED PHOTOGRAPHIC-

COPYRIGHT PHOTOGRAPH-NOT TO

!

(39840/21.)

12

No. 3.

The SECRETARY OF STATE to the HIGH COMMISSIONER.

UNFEDERATED MALAY STATES.

SIB,

(Confidential.)

[Answered by No. 5.]

Downing Street,

23rd August, 1921.

I HAVE the honour to acknowledge the receipt of your Confidential despatch of the 5th July,* and to convey to you my approval of the action which you propose to take with regard to the policy to be adopted in dealing with the Unfederated Malay States. In making the proposed announcement, you will, of course, make it clear that the Government is not opposed to the entry into the Federation of any State which might wish to enter.

2. I enclose twelve copies of Mr. Maxwell's memorandum as desired by you.

I have, &c.,

(10)88/28.)

WINSTON S. CHURCHILL.

No. 4.

The HIGH COMMISSIONER to the SECRETARY OF STATE.

(Received 26th February 1923.)

FEDERATED MALAY STATES.

(No. 46.)

MY LORD DUKE,

Government House, Singapore,

30th January, 1923.

I HAVE the honour to report certain action that I have taken with the object of increasing the powers of the State Councils of the Federated Malay States by transferring to them certain functions at present performed either by the Federal Council or the Federal Government.

2. On the 21st April, 1922, in my despatch No. 153 of that date,† referring to certain criticisms made by the Association of British Malaya regarding the financial position and general policy of the Federated Malay States, I expressed myself, in my paragraphs 40 and 47, in the following terms:-

"Turning to matters of high policy I am entirely in accord with the general tenor of the latter of the Association as to the necessity of maintaining the authority and influence of the Rulers. I have directed and shall continue to direct my best efforts to secure this result. I fully agree with the view expressed in paragraph 11 of their letter that it would be a misfortune if by failing to carry the people of the country with them in all the schemes for further administrative development, the British Officials, however un- wittingly, induced in the Malays a feeling that they were neglected and their interests put aside for other considerations which they might not * understand because no one had troubled to explain them.""

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3. Speaking in the Federal Council on the 20th June last, the Honourable Mr. J. H. M. Röbson, an unofficial member, expressed himself as follows :-

"I think the two most important problems we have before us at the present time are, first, retrenchment, and secondly, decentralization; and, personally, I attach almost as much importance to decentralization, looking to the future, as I do to retrenchment, looking to the present.

This country has grown up in steps. Twenty-five years ago the District Officer was the unit. The District Officer administered his district, the Resident administered the State; then came the Resident-General, and he took general control of the administrative machine of the four States. I think we have got to go backwards now instead of continuing this process of centralization. It has

† 24207/22: not printed.

• No. 2.

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not been a success in many directions; in some cases, yes, but in many cases, Therefore I would say we ought to think of getting back for two reasons, which I will state later. I shall go on to explain in what way I would go back. I would make the Residents again responsible for many things in their own States for which in the later stages of the federation they have been no longer responsible, I would make each State Council take a greater share in the actual executive work of the country. I should like to see Their Highnesses if I may say so with all the deference to them-taking a greater share in the actual executive work of their individual States. I would also suggest that the State budgets must be maintained as State Budgets, because I know the Residents certainly do attach great importance to that. And I would go further and say that the State Council should have authority to spend some sum in excess of these State Budgets. They feel tied if every State has to come to us every time it wants to spend any money. I think it would be quite reasonable to allow each State to have say one-tenth of ita expenditure added as an extra, in the same way that a Director puts on 10 per cent. for emergencies, and to allow the State Councils, which are after all attended by the Residents as financial men, some say in the expenditure of that 10 per cent. I would like to see the Unfederated States coming in, and I believe one of the reasons why they do not come in is that they feel they have to surrender to a common purse and perhaps they cannot get things done that they would like to have done in their own States. But if we could assure them on that point, I think we could get them to come in: and obviously it is better to have one Government than fifty Governments, so long as the individual units look after their own interests.”

4. Speaking in reply, at the same meeting, Mr. Maxwell said :-

"I entirely associate myself with everything that Mr. Robson has said about decentralization. It is the thing at which the Government is aiming and on which we are still conferring with the Residents. It is a thing much to be desired and specially much to be desired in respect of greater powers given to the State Councils."

5. Sir F. S. James, who was acting for me, during my absence on leave, spoke as follows:-

"I have been in the Peninsula now for over six years, and I can per- sonally vouch that the real effort towards decentralization both in the Colony and in these States took place consequent on the arrival of Sir Laurence Guillemard From the very beginning he wished to decentralize. He addressed both the Colonial Secretary of the Colony and the Chief Secretary to Government to that effect and asked them to see what they could do to decentralize all the way down. When I was Acting Chief Secretary here for a short time, I came here with that idea impressed on my mind."

6. On the 10th September, 1922, Mr, Maxwell addressed to the British Residents

a memorandum dealing with the powers of the State Councils. An extract from this memorandum and a minute by the Residents recording their views are sent

herewith.

I expressed myself as follows ;—

7. In my Annual Address to the Federal Council, on the 21st November, 1922,

"The subject of decentralization of power from the Federal Government to the State Governments has received my most careful attention since the last meeting of this Council. I hope that, before long, the General Orders relating to the powers, duties and functions of the British Residents and of the Federal Heads of Departments will have been revised, and that the revision will effect considerable improvement upon the present system. It will, I hope, also be possible to increase the powers and functions of the State Councils in some important respects.”

8. On the 23rd November, 1922, the Chief Secretary to Government and I discussed (inter alia) the subject of decentralization to the Štate Councils, and I was glad to find that, in respect of the policy, we were in general agreement and that it was only a matter of making definite proposals. It was decided that the four British Residents should meet and discuss the points put forward by Mr. Maxwell.

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