CO537-4075 — Page 16

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this regard must necessarily be limited, the auditional expenditure required must be met from other sources.

19.

Form of Goverment (J). The structure of the North Borneo Government is comparatively simple and in accordance with general Colonial practice elsewhere. No difficulties such as arose in Malaya owing to the complexity of the Government machine are anticipated in this Colony.

20.

Intelligence (K). It is not thought mecessary to institute

at present a separate study of the organization of intelligence,

21.

Public Relations (L). There is no Public Relations Organis- ation in this Colony at present and the dissemination of information and material is mainly through the Residents and District Officers. The Regional Burau which it is proposed to establish in Singapore is most welcome as the supply of material at present available is limited.

22.

Rationing (M). There is in existence a Supplies Department with which is combined the Food Control Department. A simple rationing system is still functioning and it would be possible to extend its scope to embrace all commodities which arexpected to be in short supply in tim of war. This Government accepts in principle the view that rationing in war must be part of the defence plan. Immediate steps can be taken to control the flow of food-stuffs as the procurement of staple commodities such as rice, sugar and flour still remains in the hands of the Government, and will contime to do so in the fore-seeable future.

I have the honour to remain,

Sir,

Your obedient Servant,

Chief Secretary.

W/B.

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