Canberra, 16 August 1961

Secret

Submission No. 1304–Political and Economic Association of Singapore, the Federation of Malaya and the Borneo Territories

1. The Committee came to conclusions substantially in line with those reached in the submission and referred to in paragraph 31.² But it indicated that its position was no stronger than an �on balance� position, and that it arose chiefly from its belief that the United Kingdom cannot indefinitely maintain the status quo in Singapore and, that being so, that there are advantages to be seen in the eventual creation of a Federation of Malaya, the Borneo Territories and Singapore provided the Federation is complete and a substantial Malayan population is thus preserved.

2. Against the background stated above, the Committee took the view that Australia should avoid any special initiative or advocacy one way or the other with the States directly concerned and with the United Kingdom. This is not, of course, to mean that necessary questions and representations should not be put from time to time for the purposes of protecting or clarifying Australian interests, especially in relation to defence.But that action should be taken through ordinary diplomatic channels and not by way of having Australia join in discussions and negotiations.

3. Following its discussion, the Committee decided that the recommendations as set out in paragraph 32 of the submission should be approved, except that the proposal in paragraph 32(b), which might be interpreted in a too formal sense, should be amended to fit in with the approach indicated above.

4. The recommendations as approved are:–

(a) It is in Australia�s interest that the Greater Malaysia concept should be promoted provided–

(i) that the Malayan and Singapore Governments retain their present orientation; and

that the concept of Federation, as it is developed, establishes the greatest practicable Malayan influence in the Central Government and ensures adequate control by the Central Government of matters pertaining to internal security in Singapore.

Australia should not seek to join consultations but should seek to keep informed of developments and to put such questions and make such representations as are necessary in Australia�s defence and other interests and to do this through the usual diplomatic channels.

That Australia�s interests also require–

(i) avoidance of public positions which might embarrass any of the governments concerned or, in the future, Australia itself, e.g., by supporting one government against another in contentious issues (such as the Singapore franchise);

(ii) that adequate steps be taken to obtain an expression of popular support in the Borneo Territories, having regard to the Indonesian position vis-a-vis West New Guinea, and to other situations involving claims to territory (e.g., Formosa);

(iii) that our position, both public and private, take account of the possibility that Greater Malaysia may not prove to be negotiable;

(iv) that Australian defence requirements in the matter of the Strategic Reserve be kept actively in mind and safeguarded to the fullest extent possible.

[NAA: A4940, C3389]

1 Decision taken by an Ad Hoc Committee of Cabinet.

2 See Document 1.