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to the benefits which his State had derived from British protection, and then expressed himself as follows:-

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These States are now known as the united countries: but the matter of "union I do not quite clearly understand. But you are all aware that the "States have become friendly, amicably assisting one another. If, however, "the four States were amalgamated into one, would it be right to say that one "State assisted the other? Assistance implies something more than one: for, if there is only one, which is the helper and which is the helped! A Malay proverb says that there cannot be two masters to one vessel. Neither can "there be four Rulers over one country.

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"It is my hope that the affairs of each State may be managed by its own officers, so that the Governments may be separate entities.

"The appointment of a wise and prudent Resident-General is of great advantage to all these States united in friendship; and I therefore sincerely hope that he will bear in mind the duties and powers of the Residents, "because it is provided in the Pangkor Treaty that the Residents are the

advisers of their Sultans."

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9. So far as I am aware, there were no further meetings of the Rulers.On the 29th October, 1909, the Federal Council was created by an Agreement of that date; and its first meeting was held on the 11th December, 1909.

It is not necessary, I think, for the purposes of this memorandum that I should attempt to describe the federal system of the Federated Malay States. It will suffice, perhaps, if I state that it is admitted by everyone to suffer from an excess of centrali- zation. This was certainly the view held by the late Sir John Anderson, who once said to me that "The Federated Malay States had been tied up into far too tight a "knot, and the difficulty was to know how to undo it." This over-centralization is so acute that the Public Service Salaries Commissions devoted some space in their report to it under the heading of "Remarks on the Discontent in the Public Service " (see paragraph 498 of the report), and their recommendations (see paragraph 509, were that there should be such decentralization as is possible of the functions of the Secretariats, and that the Residents, Heads of Departments, District Officers, and other suitable officers should be given greater personal authority wherever it is feasible.

10. I now venture, with all due deference, to invite attention to the root of the evil of the "Residential system. It was not apparent (to the superficial observer) in the pre-federation times it became conspicuous when, after federation, the Residents were given, in unmistakable terms, to understand that it was their duty to do what they were told to do by the Federal Secretariat. Beyond doubt, the root of the evil is that, from the very first, the Residents, though nominally only Advisers to their Sultans (see the Treaties, see also Mr. Chamberlain's speech (paragraph ↑ above) and the Sultan of Perak's speech (paragraph 8)) had really, by force of circun- stances, been compelled to act as though the Sultans had delegated their powers to them. The Residents really administer the States, and the Sultans stand by and watch them do it. In the Unfederated States, it is very different. There the Adviser states an opinion or makes a recommendation, and the Sultan (or his dele- gate) concurs or approves. The Adviser is most circumspect in avoiding all semblance of giving any executive order. Paradoxical as it may seem, an Adviser is, Devertheless, a far more powerful official than a Resident. The Adviser works in close terms of friendship and intimacy with his Ruler, and the order that goes forth with the Adviser's recommendation and the Ruler's approval has double weight. In the Federated Malay States, the Resident's powers have, to a very great extent, been taken away from him and given to the heads of Federal Departments: and, even in matters solely connected with his State, he may find his orders reversed by the Federal Secretariat. Putting it bluntly, therefore, one may correctly state that the difference between the Ruler of an Unfederated State and a Ruler of one of the Fede- rated States is that one rules his country and that the other does not. It is in this light that one should view Sir Arthur Young's statement (in his private letter of the 11th August to Mr. Dixon) that " it requires very strong reasons before taking the step to force the Unfederated States to join the Federation, and certainly Johore and Kedah will never join without compulsion."

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11. When, in 1909. the British Government took over from Siam the suzerainty of Kedah, Perlis, Kelantan and Trengganu, Sir John Anderson confidently expected that these States would at an early date be willing, if not eager, to enter the Federa-

tion. All four States were in desperate financial embarrassment, they sadly needed some European officials, and the rank and file of their staff of Malay officials were disgracefully underpaid. It appeared to Sir John that entry into the Federation would be the quick and easy remedy for these ailments. He very soon discovered that the new States, though prepared to be thoroughly loyal to their new suzerain, Great Britain, were nevertheless determined to have nothing whatever to do with the Federated States. When staying with me once in Kedah, he expressed his astonishment to, me, and asked me what it all meant. I told him that the Kedah Government was afraid of being compelled to surrender its freedom and to enter the Federation. Sir John recognised that only harm could result to all concerned so long as the Kedah State Council was obsessed by this fear, and took the oppor- tunity. not long afterwards, at a public banquet in Kedah, to announce that Kedah would never be compelled to enter the Federation against its will.-

12. The relations with the Federated Malay States of Kedah and Johore, the two most wealthy and progressive of the Unfederated States, are most friendly. Neither State has now any fear of the Federation, and has no reason for any but friendly feelings. Owing to lack of communications, Kelantan and Trengganu are practically isolated from the Federated Malay States. The little State of Perlis (ten miles long by twenty broad, mostly jungle) was once a part of Kedah, and un- doubtedly its destiny is to become again absorbed in it. There is a confidential memorandum on this subject in the High Commissioner's Office.

13. It is submitted that the British policy should be directed to fostering these friendly feelings, with the hope that as common interests and powers of mutual assistance come more and more into being and into light, there may naturally and spontaneously be evolved the true federal feeling, which in process of time will link all the Malay States into a loose-knit federation, wherein each State can preserve its separate entity, its dignity and self-respect, whilst combining with all the other States in matters of common interest. It will be of interest to note the matters in which the Malay States-as a whole--have already shown a common interest, or perhaps even the rudiments of a federal feeling.

14. First. The European staffs of the Unfederated States are borrowed from the Straits Settlements and Federated Malay States Civil Services. The credit for this must be given to Sir John Anderson. He clearly realised what its influence would be, and stood out against much opposition from persons who urged that the incompetence of locally-recruited officers would compel the Unfederated States to join the Federation. Sir Arthur Young consistently followed Sir John's policy. The result is that not only the Civil Service proper, but the staffs of the professional departments (Medical, Education, Survey, Public Works, Police, &c., &c.), are filled with men who have been trained in the Colony or the Federated Malay States and who naturally bring with them the ideas and methods of the places in which they have been trained. It is difficult to over-estimate the value of this as a factor towards the development of a federal feeling. Certainly there is an extraordinary difference between this great, homogeneous Public Service extending throughout British Malaya, and the four separate little Government Services that existed (" in water-tight compartments") in Perak, Selangor, Negri Sembilan and Pahang before federation.

15. Secondly.-The Federated Malay States Railway (with its lease over the Johore State Railway) is, fortunately, the only railway in British Malaya. It ex- tends throughout Kedah, Perlis and Kelantan, and will be carried into Trengganu. It connects with the Siamese railway system, both on the East and West Coasts of the Peninsula. This railway is a federal factor of considerable importance.

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18. Thirdly-A tendency for the establishment of a Federal Court of Appeal has been carefully fostered. In 1914, Johore expressed a desire for the establish- ment of an Appellate Court, which would hear appeals from the Supreme Court of Johore. It was arranged that the Court of Appeal should consist of three judges of the Straits Settlements and Federated Malay States sitting in Johore. Government of Kedah is now yielding to local public opinion, and is assenting to the establishment of a similar Court of Appeal in Kedah. It is practically certain that as soon as railway communication is established between Kelantan and the Federated Malay States, a similar Court of Appeal will be asked for in Kelantan. Trengganu is still so very backward and so isolated that one cannot foretell when it will be ready for a similar Court of Appeal. But, sooner or later, and perhaps at no distant date, the same body of judges will be sitting as a Court of Appeal in the Colony and all the Malay States.

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PUBLIC RECORD OFFICE

Reference :-

TICO. 882/10

PUBLIC RECORD OFFICE, LONDON

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