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PUBLIC RECORD OFFICE, LONDON

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paramount authority in the State under the Sultan, and it was essential that its authority should be restored. He then compared the position of his State Council with the corresponding position of the State Councils in Johore, Kedah, and other States outside the Federation. He said that it was clearly wrong that the Ruler of the richest and most important State in the Peninsula should have considerably less authority in his State than, e.g., the Sultan of Kedah in his. With regard to the position of the Chief Secretary he said that this officer was next in authority to the High Commissioner, i.e., above the Ruler, and in his opinion there should be no officer in a position to dictate to the Rulers except the High Commissioner himself.

20. The Secretary of State then writes: The Sultan was promised sympa- thetic consideration of his proposal in the matter of the legislative authority of the Perak State Council '; and he points out that on the very important general question raised by the Sultan, as to the powers of the Ruler and his State Council and the posi- tion of the Resident of Perak, his complaints are amply borne out by the printed memorandum written by Sir G. Maxwell, dated 15th October, 1920, (Eastern No. 135). He continues:-" Since that date the policy recommended in the memorandum has been adopted, and it has been decided to restore powers to the Sultan and State Council and to decentralize so far is is possible with a view to the creation hereafter of a wider and more loosely knit federation of all the Malay States, into which it has been con- templated that the Federated Malay States would enter as a unit, if they continue to be constituted as they are at present. As regards the proposed increase in the functions and powers of State Councils, the Secretary of State said:"I am not aware how far this increase has actually taken place; but, in view of the Sultan's representations and profound dissatisfaction which he shows with the present position, it seems clear that the transfer of powers cannot have proceeded far. Again, with regard to decentral- ization, I am aware from your despatches, No. 693 [2698] of the 23rd December, 1923, and No. 124 of the 29th February last, that amendments to the General Orders have been made in this direction; but on looking at them again I see that there is really little transfer of power. The Residents in the different States are to be in- formed and consulted; but the power of headquarters and of the Federal Departments acting under its direction remains almost unimpaired. Similarly by Enactment No. 2 of 1924, sent home in your despatch, No. 277 of the 7th May last, though this again is a step in the right direction, the Chief Secretary retains the full power of deciding what functions may be exercised by the Residents and of revoking such decisions at his pleasure. As the Sultan of Perak has now come forward and, taking his stand on the Treaty of Pangkor and on the assurances given from time to time in connexion with the Federation, has requested that he may be placed in a position of authority comparable to that of the Ruler of Kedah and the Sultan of Johore, it will, in my opinion, be necessary to come to a comprehensive arrangement with him as to the future government of his State in affairs of local concern.' The despatch concluded by asking Sir Laurence Guillemard for his own views now that he had had nearly five years' intimate acquaintance with the affairs and people of Malaya.

21. Sir Laurence replied in a long Secret despatch, dated 21st October, 1924,‡ to which I invite special attention and from which I have already quoted. He wrote: Decentralization is now the declared policy of the Government of the Federated Malay States, and some progress is being made in carrying out that policy. The despatches No. 46 of 30th January, 1923,§ No. 698 of 29th [? 23rd] December, 1923, and No. 124 of 29th February, 1924, show the action which has been taken on the lines of increasing the authority of the Residents and delegating powers vested in the Chief Secretary. Further important developments of the policy are the removal of items from the Federal to the State Estimates, and the increase of the control of State Councils over State expenditure, and changes with this object in view are gradually being introduced. In fitting Malays for service in their own country, the policy of Government is working along liberal lines. But these changes alone will never give the Rulers, the Councils, and the Residents the same measure of power and dignity as are enjoyed by their counterparts in the Unfederated Mala States. I am convinced that the only effective decentralization is the Federated Malay States, and the only cure for the dissatisfaction of their Rulers lie in such devolution of the Chief Secretary's powers to State Councils, Residents and, if necessary, to Federal Heads of Departments, as will in fact ultimately abolish the appointment and substitute for it an office analogous to that of the Secretary to the High Commissioner for the Unfederated States. This change would gratify the Rulers by removing an officer who claims precedence over them. loosen the knot of the

No. 6 in Eastern No. 142.

No. 8 in Eastern No. 142.

No. 4 in Eastern No. 142.

No. 12 in Eastern No. 142.

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existing close Federation, and prepare the way for a wider loose-knit union of all the Malay States. A frank and public explanation of the end and the means of attaining it would, I am sure, win the cordial co-operation of Rulers and State Councils and would, I hope, finally extinguish all misrepresentations and misunderstandings. There will have to be one more Chief Secretary after the present holder, but he should be the last." Sir Laurence also recommended that, as regards the Federal Council, an essential qualification for unofficial membership. should be a membership of one of the State Councils.

22. The Secretary of State agreed in principle in these recommendations, and decided that Sir L. Guillemard's term of office should be prolonged, and that he should go home on leave to discuss the whole subject of decentralization at the Colonial Office, where in November, 1924, Mr. Amery succeeded Mr. Thomas.

23. Before leaving Malaya Sir Laurence had, on the 22nd March, 1925, a conference with the four Rulers and the four Residents of the Federated Malay States. He said to them that it was over 24 years since they first met together on the 23rd November, 1922, to discuss the policy which he knew that Their Highnesses, no less than the Residents, and he himself had so much at heart, namely, the policy of decentralization. He then continued:-" The Secretary of State has now autho- rized me to invite Your Highnesses to a confidential discussion of the matter. Knowing as I do the interest which all four of you have taken in the problem of decentralization, I feel that it may be that you have already formulated your views and are ready to tell me now, for the confidential information of the Secretary of State, whether I have rightly interpreted your wishes. What I have represented to the Secretary of State is that Your Highnesses, no less than myself, feel that decen- tralization will never be a real success until we get back more nearly to the Pangkor days, and repeal so much of the Treaty of Federation as time and experience has proved to be inconsistent with the pledges which accompanied the Treaty, which

were:-

to safeguard the position and dignity of the Rulers and to invite them to co- operate as fully as heretofore with their British Advisers (the Residents) in moting the advancement of their respective territories and subjects.'

pro-

If

I have said that I feel that you will agree with me that the portion of the Treaty of Federation which must be eventually repealed is the portion which sets up between Your Highnesses' Residents and the High Commissioner an intermediary who has wide executive powers and is the Residents' senior officer. already formulated, I have no desire to hurry you. If they are formulated and you your views are not agree generally with the policy I have indicated, you may be disposed to express your concurrence to-day. The consideration of the necessary machinery, the altera- tions to be made by treaty, law, general orders, and so on, will take some time; it may be a year or more; and I again repeat that no change will be made (nor are we likely to be ready to introduce it) while Sir George holds his present office; but the sooner we start to consider, the sooner will the policy be brought into force. I need hardly say that I shall instruct the Committees, who will have to consider the above points, to add to my own functions as few of the functions now vested in the Chief Secretary as possible. The bulk of them. under the policy, will be performed by the Ruler in his State Council or by the Resident. Again, Your Highnesses may wish to withdraw from the somewhat contentious atmosphere of the Federal Council, where your views could be voiced by the Residents, and meet the High Commissioner at a periodic Durbar, as occasion arose, to discuss with him matters of interest to all Malaya, at which Durbar one or more of the Rulers of the Unfederated States might possibly sometimes like to be present. But these are all details which time and discussion will work out. I am further authorized to say that, if I have correctly expressed Your Highnesses' wishes, the Secretary of State is prepared to endorse them, and I have his promise that I shall remain here as High Commissioner, you have already learnt that my term of office has heen extended, for a period at present unspecified, which will be long enough to insure that I see the policy on a sound basis and in good working order before I finally leave Malaya.'

24. At this meeting the four Rulers and the four Residents all expressed con- currence in what Sir Laurence Guillemard had said.

25. Sir Laurence, after conferring with Mr Amery, returned to Malaya on the 7th November, 1925, and he took the opportunity of his Annual Address to the Federal Council on the 14th December, 1925, to make a statement on the decentrali- zation policy and to lay a memorandum concerning it on the table. This memo- randum is printed as Sessional Paper No. 39 of 1925. In it Sir Laurence said :-" To the policy of devolution to the Rulers, State Councils and Residents the Government