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The Conference then proceeded to examine the powers proposed in Mr. Gibson's inemorandum as to be reserved to the Federal Government. It was agreed that residuary powers should be vested in the States.
(i) Aerial Navigation.—It was agreed that Aerial Navigation should be transferred to the Federal Government in general terms so that the States would still be able to own and
aerodromes, &c., while the Federal Government would control inter-State manage aviation and aviation to and from Malaya from and to other countries.
(ii) Aliens. It was agreed that this should be a Federal subject.
(iii) Appeal Court. It was agreed that it was unnecessary to have a Federal Court in each State since the Federal law would become the law of each State and the State Courts would be bound to enforce it. MR. DUNCAN described the elaborate system under the United States Constitution; but it was agreed that nothing so complicated was required in Malaya. There would be (1) in each State a "State Court," with one judge to interpret State and Federal law, (2) a single Malayan Appeal Court, which would also be constituted a Federal Court for the determination of such matters as shall be assigned to it. The Federal Court might consist of the Chief Justice of Malaya, the Chief Justice of the Straits Settlements, and one judge to be chosen by the Chief Justice of Malaya from among the State judges. MR. ELLIS pointed out that separate com- missions would be required by the same person as judge in the Federal Court and as judge in a State Court.
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(iv) Census and Statistics. Mr. Gibson's proposals were approved.
(v) Coinage and Legal Tender.-Mr. Gibson's proposals were approved.
(vi) Customs.-MB. BUSHE pointed out that questions of Customs administration must be kept distinct from questions of Customs law.
SIR CECIL CLEMENTI said that he wished Customs revenue to go to the Federal Government (which should be assigned definite sources of revenue). He also hoped that the Straits Settlements would eventually be included in a Customs union with the rest of Malaya. MR. BUSHE suggested that this could be done even under present con- ditions by legislation (a) by the Federated Malay States admitting goods from the Straits Settlements free of duty, and (b) by the Straits Settlements adopting the Federated Malay States tariff and arranging for the appropriate proportion of revenue collected to be paid over to the Federated Malay States (as had been arranged in Kenya, Tanganyika Territory, and elsewhere).
SIR G. GRINDLE presumed that Singapore would remain free port; but SIR C. CLEMENTI stated that his hope was to bring Singapore into the Federal tariff area. SIR GILBERT pointed out that this would be awkward for Singapore's transit trade, e.g., with Siam and the Netherlands East Indies, involving the expense and inconvenience of bonded warehouses; but SIR CECIL thought that these disadvantages would be more than balanced by the removal of the present inconveniences involved in the existence of a tariff barrier between Singapore and the Malay States.
(vii) Defence. SIR C. CLEMENTI mentioned the suggestion that the Burma Rifles might be removed from Malaya, and said that, in that event, it would be better to raise a Malay regiment rather than accept Sikhs.
SIR G. GRINDLE asked if the Sultan of Johore would agree to hand over his Army to the Federal Government. SIR C. CLEMENTI thought that he would not. MR. BUSHE thought it would be anomalous to have a State Army independent of Federal control (though SIR G. GRINDLE pointed to the example of State Militia in the United States) and said it would be difficult not to give the Federal Government such power that it could prohibit a State Army if it chose. SIR CECIL CLEMENTI pointed out that the Johore Army, which was a very efficient unit, was the only such State army, and it was agreed that when Johore came into the Federation, a special reservation might be made in the Treaty to cover the maintenance of an independent force in Johore.
(viii) Estate Duty.- -It was agreed that the term "Death Duties" should be used. SIR C. CLEMENTI supported Mr. Gibson's recommendation that Estate Duty revenue should go to the Federal Government. SIR G. GRINDLE feared that too many sources of revenue were being assigned to the Federal Treasury: he foresaw that it would be neces- sary to subsidize the States. SIR CECIL said his wish was that it should be the other way about and that the Financial Officers in Malaya would have to be consulted
Mr. Gibson's recommendation was provisionally approved.
(ix) European Officers. SIR C. CLEMENTI said that he would prefer all European officers to be employed by the Straits Settlements and seconded for service with the Malayan Governments, taking all their rights under Colonial Regulations with them.
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MR. ELLIS pointed out that this included a right of demanding inquiry by the Executive Council in disciplinary cases. SIR C. CLEMENTI said that he proposed to have a small Council of Rulers and Advisers, corresponding to an Executive Council, and it could be arranged that a committee of this Council should be appointed to deal with dis- ciplinary matters.
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It was agreed that, though salaries might be paid by the States, the ing laws relating to appointment and service of Europeans in the various Malayan Services should, under the Constitution, be vested in the Federal Government. MR. BUSHE suggested that this might be conveniently done by scheduling such posts, and including power to add to or diminish the list.
(x) Excise. SIR C. CLEMENTI said he would prefer to leave this subject to the States. This was accepted.
(xi) Immigration.-
(xii) International Obligations.-
(xiii) Labour.-Mr. Gibson's recommendations were approved.
(xiv) Lepers and Lunatics.-SIR C. CLEMENTI explained the advantages of Federal control, in the movement of lunatics and lepers from State to State, and concentration in two or three asylums for the whole Peninsula.
(xv) Loans and External Debt.It was agreed that both Federal and State revenues must be pledged as security for existing loans guaranteed by the Federated Malay States, and that power will have to be taken under the Constitution to charge State revenues if required. As regards future non-local loans, SIR C. CLEMENTI said that he proposed to raise them by the Straits Settlements on behalf of the Malay States as had always been done hitherto He would refrain from taking advantage of the arrangements recently made to enable the Federated Malay States to raise loans in London under the Colonial Stock Acts.
(xvi) Marriage and Divorce. It was agreed that the Federal Government should have power to deal with matrimonial matters other than those connected with the Mahommedan religion.
(xvii) Posts and Telegraphs.—
(xviii) Printing Presses.-
(xix) Private Incorporations.—
(xx) Quarantine.—
(xxi) Railways.-
(xxii) Stamps.-There were no comments on Mr. Gibson's recommendations. (xxiii) Trade and Commerce.-It was felt that this was a somewhat vague heading
and might have to be broken up into a number of sub-heads. It was agreed that Merchant Shipping should be a Federal subject.
It was agreed that a note of the Conference together with Mr. Gibson's memo- randum should he submitted to the Secretary of State. If Lord Passfield approved of Mr. Gibson's proposals as amended and amplified by the Conference, Sir C. Clementi, on his return to Malaya, would instruct Mr. Gibson to draft the Constitution on these lines in proper legal phraseology and would discuss it first with a Durbar of Rulers of the Federated Malay States, and then with a Durbar of Rulers of all the Malay States
C. 82395/31 [No. 5].
No. 4.
NOTE OF A CONFERENCE AT THE COLONIAL OFFICE ON 15TH MAY, 1931, REGARDING THE INCLUSION OF THE UNFEDERATED STATES IN THE FEDERATION.
Present:-
THE SECRETARY OF STATE.
DR. SHIELS.
SIR S. WILSON.
SIR G. GRINDLE.
SIR C. CLEMENTI.
MR. ELLIS. MR. MARTIN.
SIR CECIL CLEMENTI explained that the last thing he intended was to destroy the Federation in Malaya: his intention was to strengthen it by bringing in the Un- federated States. The scheme was not new: it had been put forward by Sir L. Guillemard but never worked out in detail. He went on to describe the Durbar of