56. We have agreed that if officers are given the right to retire at will, it is logical that overnment should have the right to require officers to retire. But there is a risk that if in practice the Government makes it clear that it intends to exercise that right, many valuable officers will opt to go. Whatever inducements the Government may offer to certain officers to stay, all officers will feel that sooner or later their services may be dispensed with and many of the best, who can most easily obtain other attractive employment are likely to leave as soon as possible. To insist on the right to dispense with the services of pensionable officers would also weaken the effect both of the other assurances which we have agreed be given regarding service conditions, promotion and discipline and of any scheme of inducement allowance, Malayanisation need not be prejudiced because, whatever assurances are given, any entitled officers are certain to opt to retire under the provisions of a compensation scheme immediately it is introduced. Others will do so later. Normal retirements on grounds of age will continue. Other officers are likely to be transferred to other territories and the Secretary of State for the Colonies will do his best to transfer any officer at the request of the Federation Government. Meanwhile, no new overseas officers will be recruited on pensionable terms unless the Federation Government specifically so request, and the existing powers to dispense with the services of officers on abolition of office or on such grounds as gross inefficiency and misconduct will remain. The practical problem which might arise is not whether there will be full scope for Malayanisation but whether it will be possible to retain and recruit enough qualified officers to provide the Federation Government with the efficient, experienced and stable administration which it will need for carrying out its policies during the coming vital years
57. While it is recognised that a feeling of insecurity will tend to make valuable officers leave the Federation earlier than they might otherwise have done, we consider that the adoption of the scheme outlined in the next paragraph should go far to mitigate this disadvantage.
58.After consideration of various alternatives, we have agreed on the following plan:
- (i) The Public Service Commission will be established with executive powers and a compensation scheme will be introduced with effect frcm the 1st July, 1957.
- (ii) The Federation Government will assure the public service that until the compensation scheme is introduced no officer will have his services dispensed with except in accordance with traditional service principles.
- (iii) During the period between the presentation of the report of the Malayanisation Committee and the 1st July, 1957, every entitled expatriate officer will be given the opportunity to say whether he wishes to be retained in the Service after the 1st July, 1957. If he state that he does, his case will be considered and he will be informed of the minimum period during which he may expect, subject to health and efficiency to be retained. The periods will naturally vary according to the relevant circumstances, e.g, the staffing position in the officer's Department, including the availability of suitably qualified local officers, the officer's age and so forth. In some cases it will no doubt be possible to assure officers of employment up to normal retiring age; in others a term of years may be stated, with or without; the possibility of further extension at the end of that term if the officer then wishes it. In other cases, it might not be possible to give the officer any assurance.
