CO882-10 — Page 521

494

PUBLIC

RECORD OFFICE

Reference :-

LICO. 882/10

ALLY WITHOUT PERMISSION OF THE BE REPRODUCED PHOTOGRAPHIC- COPYRIGHT PHOTOGRAPH-NOT TO

PUBLIC RECORD OFFICE, LONDON

16

This list could be produced indefinitely. I want to make it perfectly clear that I am not suggesting that the State Councils should become mere debating societies. Nothing is further from my mind. The members of the State Council have opinions which are of great value, and which are at present lost to the country, because the members have no opportunity of giving utterance to them.

E

Enclosure 2 in No. 4.

Minute by Residents dated 22nd January, 1923.

The meeting first discusses the question of the preparation of the Estimates and the various steps to be taken before the Estimates are finally approved.

The meeting was in favour of the proposal of the Resident, Negri Sembilan, that recommendations for new appointments and changes under Other Charges and new proposals for the Budget should go in letter form to the Chief Secretary for provisional approval. These recommendations should then go to the State Council who should have power to amend such proposals, subject to the proviso that such amendments did not involve in the aggregate a greater increase over the current year's Estimates than that already sanctioned by the Chief Secretary.

Any additional items that the State Council may then desire to be considered over and above the proposals submitted to them in accordance with the preceding paragraph should be submitted by the Resident to the Chief Secretary and should he referred back to the State Council shortly before the budget meeting of the Federal Council.

The total requirements under each heading of State Expenditure, as passed by the State Council should then be reported to the Federal Council, with a brief explanation of any difference between the amounts asked for and those appearing in the current year's estimates,

The providing of money not appearing in the printed Estimates is always more or less a matter of urgency which will not brook delay and should for this reason be left to the Executive subject to the safe-guards laid down in General Orders. It may however, be desirable to submit periodical schedules of State Supplementary Votes (including transfers) for a formal resolution of approval by the State Council pending final supply. We consider that the powers of the Residents with respect to unprovided expenditure and transfers should be increased from $500 to $1,000.

It is, we consider desirable, as a measure of financial devolution, to alter the form of the schedule in sestion 8 of the Supply Bill so as to have five main headings, viz. (A) Federal, (B) Perak, (C) Selangor, (D) Negri Sembilan, (E) Pahang, and within these main headings to follow the headings in the Federal and State Estimates respectively.

The question of submitting the Estimates of Federal Departments to State Councils might stand over for the present, but any items of expenditure included in the State Estimates should be dealt with as above. Important items going into Federal Estimates should not be reported to the State Council for executive decision, but it is desirable that they should be reported for Council's information.

Matters other than Estimates.

Important concessions should go to the Chief Secretary for provisional approval: he should reply that he is prepared to approve or otherwise. The con- cessions should then go to the State Council for final approval. Slight modifications by the State Council may be allowed but should be reported to the Chief Secretary. We are in agreement with the proposals detailed in paragraph 5 (a) and (b) of the Chief Secretary's memorandum, dated 10th September, 1922. The proposals in paragraph 5 (c) and (d) are covered by the recommendations we make with regard to the estimates. We consider that in the case of Forest Reserves, reference to the Chief Secretary is unnecessary and that such questions might be left to the State Councils for decision. (An alteration of the law would be necessary.) The heading of the Estimates now called Sultan, Major Chief and Native Officers should bo altered to Rulers and Chiefs,"

(10365/23.)

17

No. 5.

The HIGH COMMISSIONER to the SECRETARY OF STATE.

(Received 27th February, 1923.)

FEDERATED MALAY STATES.

(Confidential.)

MY LORD DUKE,

Government House, Singapore,

31st January, 1923. My attention has been drawn to the fact that, by inadvertence, I omitted to report the action taken by me upon the receipt of Mr. Churchill's Confidential despatch (Unfederated Malay States) of the 23rd August, 1921,* on the subject of a public announcement of a policy in respect of the Unfederated Malay States. I have now the honour to forward, for the purposes of record, an extract from my address to the Federal Council on the 13th December, 1921.

I have, &c.,

Enclosure in No. 5.

L. N. GUILLEMARD.

Extract from an address of His Excellency the High Commissioner at the Meeting of the Federal Council of the 13th December, 1921.

*

Improved communiostion both by railway and by road bring the Federated Malay States every year into nearer and closer touch with the Colony and the Unfederated States. In the Colony, our railways run through Singapore Island, through Malacca, and through Province Wellesley. In the Unfederated States, we have the lease of the Johore State Railway, and our railways extend through Kedah, Perlis and Kelantan. Trengganu, which alone is as yet unapproached, would have received a survey party this year if the necessity for retrenchment had not prevented it. The growth not only of the Federated States, but of the Unfederated States has given rise from time to time to the idea that it may be the policy of the Federated Malay States Government to press the extension of the Federation-I am glad therefore to be able to take this opportunity to state that it is not the policy of the Federated Malay States Government to exert, in any manner whatsoever, any pressure upon any other State to enter the Federation. At the same time, the Federated Malay States Government would be quite ready to receive any application from any other State for admission to the Federation. It would be a matter for careful consideration by all parties concerned. The policy of the Federated Malay States Government is to aim at friendly combination and co-operation between the Federated Malay States, the Unfederated Malay States and the Colony in all matters in which they have a common interest, on the understanding that each party is free to act as it thinks best in matters of local

interest.

*

*

No. 6.

*

The HIGH COMMISSIONER to the SECRETARY OF STATE. (Received 21st January, 1924.)

FEDERATED MALAY STATES.

(No. 698.)

MY LORD DUKE,

[Answered by No. 7.]

Government House, Kuala Lumpur,

23rd December, 1923.

WITH reference to Your Grace's despatch No. 74 of the 10th March,† in which I was asked to keep Your Grace informed of all steps taken in the direction of decentralisation, I have the honour to report that a Committee was appointed by the

* No. 3.

† 10038/23: not printed.