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of the police force and the Federation armed forces will remain with the Director of Operations. The present Director of Operations Committee will, however, be replaced by an Emergency Operations Council, with the Minister for Internal Defence and Security as Chairman and the Director of Operations among its members. A Police Service Commission will be set up to deal with appointments, promotions and discipline in the higher ranks of the police force. It will be completely free from political influence. For the administration of the Federation armed forces there will be set up, under the Chairmanship of the Minister for Internal Defence and Security, a Federation Armed Forces Council modelled upon the Army and Air Councils in the United Kingdom.

(3) Financial and Economic Matters (Annex A, paragraphs 28-37).

(a) Minister of Finance

The Financial Secretary, at present a member of Her Majesty's Overseas Civil Service, will be replaced by a Malayan Minister of Finance.

(b) Exchange Control

The Federation Government will continue to regulate its dollar expenditure in general conformity with the policy followed by the Sterling Area and in consultation with Her Majesty's Government.

(c) Financial Assistance

This will continue on the same lines as at present.

(4) The Public Service (Annex A, paragraphs 38-61).

(a) Public Service Commission

A Public Service Commission with executive authority will be set up from 1st July, 1957, to deal with appointments, promotions and discipline in the Public Service. It will be independent and free from political influence. Before that date the present Public Service Appointments and Promotions Board will remain advisory to the High Commissioner.

(b) Compensation Scheme

A scheme will be introduced in two phases. Until 1st July, 1957, members of Her Majesty's Overseas Civil Service will be permitted to retire on earned pension even if they have not served for the ten years normally required for pension purposes. After that date they will be free to retire when they will and entitled to lump-sum compensation in addition to their earned pension. It will also then be open to the Federation Government to dispense with an overseas officer's services on payment of the due compensation and pension. The scheme contains various other elements, but those are its main lines.

(5)Constitutional Changes (Annex A, paragraphs 62-73).

(a) The High Commissioner's Powers
See (1) above.

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