537
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PUBLIC RECORD
OFFICE
། ། ། ། །
السيلين
Reference -
C.O.882/12
PUBLIC RECORD OFFICE, LONDON
ALLY WITHOUT PERMISSION OF THE BE REPRODUCED PHOTOGRAPHIC-
COPYRIGHT PHOTOGRAPH-NO1 To
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6. I now come to the main question of control of the Railways, and in adumbrating the following scheme I am governed by the instruction contained in the last paragraph of Lord Passfield's despatch, that effective control of the Railway by Government must be preserved.
7. I may say at once that to follow exactly the East African model and to con- stitute myself as the High Commissioner for Transport, Malaya, would be neither practically nor politically expedient. The holder of my office has not the time for railway executive work, and one of the three objects in view (vide paragraph 4 (b) supra) is to separate as far as possible the railway from the general administrative machine. Furthermore, the Rulers of the Federated Malay States would certainly view the policy of decentralization with the gravest suspicion if one of its first fruits were to be the transfer of Railway executive control from the Chief Secretary in Kuala Lumpur to the High Commissioner in Singapore. Indeed, the assumption of such a departmental position would be regarded by Their Highnesses as derogatory to the office of His Majesty's High Commissioner for the Malay States. Beyond the fact that the railway management should be responsible, under any scheme, to me (and through me to all the Malayan Governments concerned) for the efficient and economic operation of the various lines, the Governor and High Commissioner should occupy no place in the administrative organization of the railways.
8. I envisage therefore the creation of two bodies: a Board of Control possessing statutory powers and composed mainly of official members representing the proprietary Governments, and an Advisory Board composed of official and unofficial members. representing all the Malayan administrations served by the Railway.
9. The Railway has been built at the expense of the four Federated States of Perak, Selangor, Negri Sembilan, and Pahang except for the section through Johore. the initial cost of which was defrayed by that State. The present lease of this section to the Federated Malay States Railways expires at the end of the current year, and it is hoped that it may be replaced by an agreement drawn up on a profit-sharing basis instead of on a fixed rental, such as obtains at present. If Johore came in on a profit- sharing basis, that State should certainly have a representative on the Board of Control; which would then be constituted somewhat as follows:-
The General Manager (President).
The Federal Treasurer and two other officials appointed by name by the Rulers of the Federated Malay States with the concurrence of the High Commissioner to represent the Federated Malay States.
An officer appointed by the Sultan of Johore with the concurrence of the High Commissioner to represent the State of Johore.
Two Unofficial Members nominated by the High Commissioner from among the members of the Advisory Board.
10. I need hardly add that, if any other Malayan Government should at a later date purchase the section of the Railway running through its territory, it should at once be represented on the Board of Control.
il. The Advisory Board would contain a large unofficial element; already six out of its nine members are unofficial, and seats on it would be given to representatives, selected with the High Commissioner's consent in each case, of the non-owning Govern- ments of Kedah, Kelantan, and Perlis, which at present have no say at all in railway
matters.
12. Before elaborating this scheme further I would be glad to learn whether the two essential features of a mainly official Board of Control, representing the owner Governments, and of a largely unofficial Advisory Board, representative of all terri- tories through which the Railway passes, meet with your approval. In the event of your concurrence I will have further draft legislation prepared and forward it to you in due course. Mr. Elias has suggested that the East African legislation might be examined in this connexion, and I therefore telegraphed to the Governor of Kenyon the 20th November as follows:-
--
"Confidential-Federated Malay States Government considering new methods control of Railway and wishes review Kenya and Uganda Railway Scheme. Would be grateful if you could send copy Control Aot together with copies all Regulations issued under it and favour me with your views on working of Act and any sugges- tions for improvement.
To this communication I have not yet received any reply.
13. In conclusion it is my duty to point out that the expiration at the end of this year of the Johore Railway Lease to which I have alluded in paragraph 9 supra, renders
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it necessary to expedite a decision on the question as to what form railway control in Malaya shall in future take. If Johore were granted representation on an Executive Board of Control she would probably accept terms, on a profit-sharing basis, far more favourable to the four Federated States than those for which she would press if the section were to be leased once more for a fixed annual rental. Should, therefore, you approve of legislation being drafted on the lines indicated in this despatch I should be grateful to receive telegraphic advice to that effect.
I have, &c.,
C. 92313/32 No. 8].,
SIR,
No. 68.
C. CLEMENTI,
High Commissioner.
FEDERATED MALAY STATES.
THE SECRETARY OF STATE to THE HIGH COMMISSIONER. (Confidential.)
Downing Street, 12th May, 1932.
I HAVE the honour to refer to your Federated Malay States Confidential despatch of the 14th January,* on the subject of the reconstitution of the Railway Adminis- tration, and to confirm my telegram of the 9th Aprilt in which I regretted that I found myself unable to approve your proposals in this respect.
2. You summarize in paragraph 4 of your despatch the grounds on which you regard the reconstitution of the Railway Administration as unavoidable. I am in general agreement as regards the first of these grounds, but as regards the second it appears to me that, if the existing system of control involves excessive reference to the Government in matters of detail, the remedy may lie in increasing the powers of the General Manager to such an extent as will reduce to reasonable proportions the occasions upon which it is necessary for him to seek the approval of Govern- ment. As regards the third ground submitted by you, you are aware from other correspondence of the attitude of His Majesty's Government towards the policy of decentralization.
3.I have given further careful consideration to your proposals for a Board of Control; but as at present advised I am not satisfied that the constitution of such a Board would lead to more efficient management of the Railways. In this con- nexion I would invite reference to paragraphs 9 and 10 of Lord Passfield's Confidential despatch of the 20th of August, 1931.1 The creation of a Board of Control, in addition to the Advisory Board, is likely to prove unduly cumbersome. I am not aware that there has been any failure on the part of the present Advisory Board to give sound advice upon economic and business questions. It appears to me that a competent and responsible General Manager, working in close touch with an experi- enced Advisory Board, is likely to achieve better results than would be obtained by superimposing an executive Board of Control.
4. In all the circumstances I am of opinion that such detailed measures as are possible should be introduced to improve the efficiency of the present system of management, but that any proposals for further changes in Railway control should be deferred until the future of the post of Chief Secretary to Government, Federated Malay States, and of the Federal Secretariat, has been definitely determined.
I have, &c.,
P. CUNLIFFE-LISTER.
* No. 67.
+ C. 92313/32 [No. 6]: not printed.
‡ No. 66.