1. 37 co 1030/973, no E203 9 May 1961, “ Malaysia”
Editor : AJ STOCKWELL
['Paper on the future of the Federation of Malaya, Singapore and
the Borneo Territories']: memorandum by Lee Kuan Yew for the
government of the Federation of Malaya
(In this paper Lee puts the case for independence through merger. The merger he
proposes is not simply of Singapore and Malaya but the larger federation embracing the
Borneo territories. The background to this paper is as follows. On 24 Apr Lee Kuan Yew
informed Selkirk that on the previous day he had spoken to the Tunku for the first time
about the Grand Design. Dr Goh Keng Swee, Tun Razak and Dr Ismail bin Abdul Rahman
had also been present At the end of this meeting the Tunku had invited Lee to prepare a
paper setting out his ideas on how merger might be achieved. Lee, who later stated that
he was encouraged to write the paper by Selkirk and Philip Moore (Selkirk's deputy),
discussed the matter with Moore on 28 Apr but insisted that the Tunku should not be told
of their meeting. On 9 May Lee showed the final version to Selkirk before giving it to
Ismail for transmission to the Tunku and Razak in KuaIa Lumpur, without the Malayans
being aware that Selkirk had seen it first. Selkirk sent a copy of Lee's ~r to London on
10 May. Although they had doubts about its practical value, especially as regards the
Borneo territories, senior British officials in Singapore thought the exercise worthwhile if
only to persuade Kuala Lumpur of Lee's honourable intentions. Indeed, Lee tried to make
palatable the case (or an early agreement on merger in principle by stressing that an
independent Singapore on its own would be a greater risk than in combination with other
territories and by reassuring the federal government that Malay political predominance
would not be threatened by Singapore's Chinese. On 11 May, Fang Chuang Pi ('the Plen'
of Singapore's communist organisation) set up a secret meeting with Lee to ascertain the
likelihood of merger. Lee came away convinced that, if merger did not take place soon,
the communists would gain time to foment unrest. On 16 May Selkirk reported to
London on a further meeting between Singapore and Federation leaders and noted that
Razak was attempting to convince the Tunku of the need for merger (CO 10301973, nos
132 and 133; also 'The origins and (ormation of Malaysia', memorandum by the FCO
Research Department, 10 July 1970, FCO 511154, paragraphs 58-61 (the document is
reproduced as an Appendix to this volume), and Lee, Memoirs, pp 357 -361,364).)
Introduction
1. These three territories comprise what were the British colonial possessions in
South East Asia. Since the end of the Second World War great political and

2. constitutional changes have taken place in the whole of this region. The Federation
of Malaya has become independent, and Singapore an internally self-goveming state
with defence and foreign affairs in the hands of the British and internal security
under the joint control of an Internal Security Council. Constitutional changes have
also taken place in Sarawak, Brunei and North Borneo. It is evident that in the next
few years even greater and more rapid constitutional changes will take place both in
Singapore and the Borneo Territories.
2. What is to become of all these territories? In the Annex are two tables
(Annexes A & B) which show a breakdown of the area and population of each of these
territories, and a map of this region (Annex C). I
3. Historically, Singapore has always been much closer to the Federation of
Malaya. The Borneo territories, although not altogether different in population
composition, have always been a little further away, and the concept of the political
unity of these three territories has not been as much in the forefront as the concept
of merger between Singapore and the Federation. Therefore, a plan to create a
federation of these three territories must be tactfully and gradually introduced into
the minds of the peoples of the three territories, and should be presented as a desire
of the peoples living in this region, and not initiated by the British.
The alternatives
4. There are two alternative ways in which political development in these three
territories could evolve:-
(A) Federation of Malaya independent, Singapore independent and the Borneo
territories independent in three separate units. If this alternative develops, it
means that merger between Singapore and the Federation is abandoned as a
political objective, and power in Singapore would pass to a China-minded group
with strong cultural and economic links with Communist China.
In the opening phase, it may be that an independent Singapore government may
come to some defence treaty arrangements with the British, but being
independent these treaty arrangements would be discarded and revoked and
replaced by ties with the Chinese mainland. This would ultimately lead to a
Chinese Communist base right in the heart of South East Asia with incalculable
consequences to all territories of the whole region. Knowing this, it is not unlikely
that the British and even the Americans, may go to great pains to prevent an
independent Singapore from ever emerging. However, if the desire of the people in
Singapore for political independence through merger with the Federation is
constantly frustrated and no progress is apparent either in common economic
links, let alone political links, then frustration and desperation would drive them
to the extremes of Communist policy and help the Communist pay the price in
blood if necessary, to secure their political objective of an independent Singapore
from which to undermine and subvert the Federation of Malaya.

3. Recent statements by open front Communist leaders have shown a positive
change of line. The long-term M.C.P. policy of a united Singapore and Federation
of Malaya is now glossed over. It is likely that knowing the strength of a Malaybased
Federation Government, the M.C.P. would strongly resist proposals for
merger between Singapore and the Federation, which would leave them at the
mercy of a Malay-hased Federation Government able to take unpleasant measures
against the Communists with electoral impunity.
(B) A larger federation of the three territories-Federation of Malaya, Singapore,
Borneo territories. This is the most satisfactory solution for the peoples of the three
territories and also one which the British could accede to. It would also preserve the
common economic, social and political ties that have existed between these
territories as part of a common Empire in this region. But in working out the
constitutional arrangements, care must be taken not to upset the sense of security
and stability of the people of the Federation of Malaya, nor to arouse fears among
the peoples of the Borneo territories that they are being swamped by more active
and sophisticated people from the big cities of Singapore and the Federation.
5. However, the pace of political changes taking place throughout the whole
world and the rate at which pressure is mounting in Singapore, with or without the
aid of the M.C.P. makes it imperative that agreement on principle on some
constitutional arrangements must be achieved soon, or they may never be achieved
at all. In the spring of 1963 the Singapore Government, by agreement recorded in
the constitutional discussions with the United Kingdom in 1957/ is obliged to reopen
talks on the constitutional future. The next step forward from the present
constitutional position in Singapore is independence. The alternative is a standstill
with minor constitutional re-adjustments of a purely window-dressing nature. If no
constitutional advance takes place, the PAP cannot hold the position in Singapore. It
will probably be replaced by a pro-M.C.P. and pro-China Singapore Government. It is
likely that this Government would be intelligent enough to avoid a direct clash of
arms with the British until the international position is such that direct Chinese
armed intervention is possible. The effect of a pro-M.C.P. and pro-China Government
in Singapore on the Chinese in the Federation will accentuate in the Federation the
communal conflicts and dissolve the Chinese will to resist 'Chinese' Communism.
This will sooner or later end up in an independent Singapore. A Singapore
independent by itself must pander to its 75% Chinese population and will end up
with greater appeals to Chinese chauvinism and eventually all talk of Malayan
culture, national language, national solidarity and nation-building will disappear
with tremendous adverse repercussions on the Chinese in the Federation of Malaya.
The consequences are incalculable and would certainly put an and to any hope of
building a united community composing of Malay, Chinese, Indian and other races
in Malaya. The solution lies in the larger federation, with the strength and stability
from the centre. This course of events can only be avoided if Singapore is merged
into the larger entity described below, and such tendencies contained.

4. Alternative (B) or the 'Grand Design'
6. In broad outline, the scheme is to use the stable Malay-based Federation
Government as the sheet anchor of the whole of this region. In grand total population
'Three a11.party delegations went to London for talks about self-government Marshall demanded
too much and came away empty·handed from the tint (Apr 19561. Lim Yew Hock was more
successful; the framework of the State of Singapore was agreed in Apr 1957, the details were
settled in May 1958 and the new constitution was inaugurated following the elections of May
1959.
the Federation of Malaya has 6.82 million people, Singapore 1.63 million people, and
the Borneo territories 1.25 million people. How each state is to elect its own government
can be left to existing state arrangements and can remain flexible. In the Borneo
territories some definite proposals will have to be reached as to how future
representation from the Borneo territories in the larger Federation is to take place.
7. Roughly speaking, the three states of the larger Federation would be entitled
to the ratio of 68(Federation of Malaya) : 16(Singapore) : 12(Borneo) seats in the
larger Federation Parliament Representation from each state will be that of
the government's side only, i.e. there is no direct election to the government of the
larger federation. It will be noted that the population breakdown of the three
territories, if we include the indigenous population together with the Malays, would
mean that the Malays would constitute the largest ethnic group in the larger
federation-4.5 million Malays and indigenous population as against 4.1 million
Chinese, 0.9 million Indians and 0.2 million others. But because only the
Government side is represented in the larger Federation Government, the effective
vote is the 3.4 million Malays in the Federation who can in effect decide the vote of
68 out of 96 seats of the larger federation. Elections will be held in the respective
states and each government of the respective states is entitled to nominate from
among its members the number of seats agreed in the constitution in proportion to
its POpulation. In other words, it means that the Federation of Malaya government
would be entitled to 68 out of 96 seats in the Parliament of the larger federation.
Thus the government of the Federation of Malaya will automatically control the
government of the larger federation.
8. To protect the susceptibilities of the Borneo people and the present balance of
power between Singapore and the Federation of Malaya, provisions will have to be
built into the constitution of the larger federation to ensure that voting by citizens of
the respective three states can only be done in their own states, e.g. a Singapore
citizen can only vote in Singapore, a Federal citizen can only vote in the Federation,
and no Singapore or Federal citizen can vote in Borneo. Provision can be made in the
constitution for review after 5 or 10 years. This safeguard would prevent upsets in the
balance of power.

5. 9. The powers of the larger federation Government should include defence,
foreign affairs, police and security and such matters which like currency and
common economic development could be more efficiently discharged by a central
Government A working party of administrative experts should put up a working
paper for consideration at a later stage. The cost of running the central Government
should be borne by the three states in proportion to their representation in the larger
federation parliament
10. There are no constitutional problems however novel or difficult which
cannot be resolved. The main problem will be how to present the 'Grand Design'
politically to the people of the three respective territories. In this informal discussion
on the 'Grand Design', both the Federation of Malaya and Singapore can express their
own will through their own ejected representatives. But the people of the Borneo
territories are in that stage of political development where there are no elected
representatives who can speak in the name of the Borneo people. Therefore, final
arrangements will have to be carefully worked out so that they can be accepted and
endorsed by the hereditary, community and the newly elected leaders of local
government bodies of the Borneo territories.
11. In such a framework it is possible to govern Singapore with considerable
firmness and success. National identification in a large and powerful federation
comprising a grand total of nearly 10 million people with a total of 130,000 square
miles as against the Federation's 50,000 and Singapore's 225 square miles would
hold the hearts and loyalties of the people. Pride in a more powerful and viable state.
which may be called the 'Federation of Malaysia' or the 'United States of Malaysia',
would give a boost to nation-building to the mutual advantage of the three territories
and would help to stabilise the future of the whole region.
12. In discussions from time to time with the United Kingdom Commissioner. it
would appear that whilst they may go a long way to accede to this larger federation,
they would want to have special defence treaty arrangements about their bases in
Singapore and the Borneo territories. This is not an insoluble matter.
13. After discussions on the principle of this paper, it will be useful if a working
party of top administrative officials could work out the constitutional arrangements
and administrative implications. At the same time a working party of ministers could
hammer out the details of presentation and political strategy. If the plan is to
succeed, it must be fairly well crystallised and advanced soon, before the position in
Singapore hardens against merger and before divergent constitutional developments
take the Borneo territories on a separatist path.
Pg 108-112, British Documents on the End of Empire , Series B , Volume 8 , “ Malaysia”
Editor : AJ STOCKWELL , Institute of Commonwealth Studies , University of London