CO537-4075 — Page 25

Y

(D)

4

ANTI-BRITISH ACTIVITIES.

ני

It is considered that an efficient intelligence service established in good time would provide the best method of countering fifth column activities in an emer- gency. The secret and undercover agents of this organi- sation could form the nucleus of a war-time intelligence source.

(E)

COMMAND.

F

In the event of South East Asia being a minor theatre of war or a major theatre of war the responsi- bilities of the Commissioner-General as a Co-ordinating Authority would be immensely increased and he should be Chairman of a war Council. The Officers Administering the Governments of the various territories should be members of such a Council although inevitably they would have to be represented by Deputies on many occasions.

Forces.

(H)

H.1.

There should be unity of Command over the Armed

ECONOMIC WARFARE.

It is considered that an officer should be appointed to be in charge of Economic warfare and that he should be given complete local powers and should not be subject except in general policy matters to direction from United Kingdom.

H.2.

II.3.

Yes.

It is suggested that members of the Economic Secretariats in Singapore and Kuala Lumpur might with advantage receive courses of training in Economic Warfare so that they could provide a proportion of the staff of the Economic warfare Office.

(I)

FINANCE.

The finance arrangements of the last war were the ordinary arrangements of civil Government. Malaya was prosperous in 1939-41, and money was not tight. Finance Committees readily voted additional expenditure for matters connected with the war. Frequently, to save time, authority was given to charge unforeseen ex- penditure to below-the-line account until a vote could be taken or until a decision had been reached on the apportionment of the expenditure between civil Govern- ment and Services or between the various administrations in Malaya. The following items are examples of this:-

(1)

(11)

The F... Government readily voted whatever was wanted by the Malay Regi- ment and F.M.S.V.F. It is believed that a large sum for additional trans- port was provided in the second half of 1941. The cost of the halay Regi- ment went up when the Army insisted on taking over the rationing which had previously been done by a local con- tractor.

Similarly funds were voted for all

branches/

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