CO537-4075 — Page 22

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ter. (22) in Top secret 32/48.

TOP SECRET.

sir,

52007/40.

3

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FEDERATION OF MALAYA

10 October, 1948.

(1)

I am directed to refer to your letter Top Secret 30/11/48 of the 28th May, 1948, regarding examination of the various problems raised in the published Malayan Campaign Despatches and to forward herewith the following observations on the memorandum on matters of principle accompanying your letter. The High Commissioner had hoped to give personal consideration to some of these important questions, but in view of the delay that has already taken place does not wish to defer any longer the transmission of this reply. You will appreciate that any of the points raised are under con- tinuing examination in the light of subsequent papers.

(B)

(a)

(b)

CIVILIAN LUNALE

J

The racial composition of the states comprising the Federation has in the past tended to preclude a common loyalty to

alaya, but it is the policy of Govern-. ment to foster this through intensive education and the implementing of Federal citizenship. Loyalty to Malaya is like- ly to be difficult to breed in the case of Chinese who are particularly suscep- tible to propaganda from their motherland and because of their national law which enforces dual nationality. Because of their present economic dependence on other races it is unlikely that the anti- pathy of the Malays to the Chinese will decrease in the near future. It is therefore felt that to preach Malayan nationalism at this present time would be in fact to preach racialism.

Consideration should be given to the background of events in kalaya, and it is thought that the following matters should Le borne in mind as they have a direct bearing on any attempt to build up local morale:-

(1)

It may be said that British prestige has suffered a series of almost irreparable lows. Starting in 1941-1942 the bri- tish Army in kalaya was defeat- ed by the Japanese after a comparatively short campaign: during the next three and a half years the Japanese news- papers recorded the advance of the American Forces in the Pacific and glossed over on all possible occasions the deeds of the british Armies in North Africa, Europe and Burma: many

of/