We are agreed that education should be a Federal matter. There is need, however, for a detailed examination of the problems connected with the integration of the educational systems and policies of the two territories and of the Federation of Malaya, for which we recommend the setting of a Working Party (Education). Details of this Working Party are considered in paragraph 230 below.
197. We have already expressed the view that Sarawak and North Borneo should be admitted as States as early as possible within the next 12 months. We believe that a mere blue-print however clear and firm the decision may be to put it into effect in full at some future date would only provide the oppor- tunity for disruptive elements, both internally and from outside, to render the scheme abortive. It will not be appropriate furthermore for the Central Government to assume responsibility for any matter concerning the territories until a transfer of sovereignty has been made.
198. We have made certain observations and recommendations regarding State, Federal and concurrent responsibilities, on the basis of the present Constitution of the Federation of Malaya. On the basis of these separate responsibilities it is essential that with the transfer of sovereignty, the legislative and executive authority in Federal matters should also be simultaneously transferred.
199. We think that such a step is vital for the purpose of creating a complete, strong and single-minded Federation. A graduated constitutional and legal transfer of powers would only provide an opportunity for protracted delays as a result either of reluctance on the part of the State Government to transfer some of its powers or of the Central Government to assume the necessary responsibilities. The door will then be left open for destructive elements to impede the creation of a strong central authority by exploiting differences among various races and creating frictions between the Central Government and the States.
200. It would be an extraordinarily cumbersome process if both the State Government and the Central Government have to refer to their respective legislatures each time that a transfer of responsibility is to be effected. In any case, the subjects which are of immediate, everyday concern to the people, such as land, adat, agriculture, forestry, local government and other services of a local character, all remain in the State list.
201. The majority of the people în Borneo have expressed their desire for Malaysia and if they are not to be frustrated and disillusioned regarding those matters on which they have placed such emphasis, for example, progressive economic development, increased attention to education, upliftment of rural standard of living, and so on, the Central Government should from the outset be made to feel responsible for these matters and should be provided with the opportunity and the means to meet these rising expectations. This is particularly împortant in the immediate years after Malaysia. Such an arrangement would also avoid the difficult problem of having to work out some provisional devices to ensure proper and adequate representation and financial contribution from these States commensurate with each transfer of power as it takes place.
