We are convinced, therefore, on the evidence of our findings and of the hopes and expectations which the Malaysia proposals have aroused that any other scheme would not meet with the wishes of the people.
202. We are of course aware of the possible dangers of a complete break- down in the machinery of administration if immediate and precipitous steps are taken to transfer the Federal functions to the Central authority simultaneously with the legal transfer of powers. It is most important that there should be a transitional period during which arrangements for the transfer of functions. should be worked out carefully and gradually. We therefore strongly recom- mend that the Central Government having been legally and Constitutionally vested with the Federal powers simultaneously with the transfer of sovereignty, should immediately delegate to the Chief Minister of the respective States the exercise of as many executive functions as may be necessary for the maintenance of good administration. Whether by separate legislation or by using the relevant Articles in the Constitution, provision should be made to enable the respective State authorities to execute certain functions for the administration of specified Federal laws.
203. We would also most emphatically urge that there should be a general continuance of existing State laws which would become Federal laws on Federal matters after Malaysia, until repealed, amended or modified by the Central Authority, notwithstanding any conflict with the provisions of the Constitution. Thus, during the transitional period, nothing in the administration would change for purposes of ordinary business. The same laws would continue to apply and the same officials would continue to carry out the executive functions.
204. At least three subjects however must be excluded from such an arrange- ment namely, External Affairs, Defence and Internal Security. These are subjects of great importance in order to ensure a strong Central Government.
205. These transitional arrangements should continue for as long as it is considered necessary in order to avoid any breakdown in the administrative machinery. We recommend therefore that a Joint Working Party (Administra- tion) for each of the States should be appointed, if possible, before the entry of those States into the Federation, comprising an equal number of officials nominated by the State Government concerned and the Central Government respectively, and a Chairman to be agreed upon by the two Governments, for the purpose of examining and making recommendations on the manner and timing of the integration into the Federal system of the laws and practices relating to those subjects included in the Federal List. This Joint Working Party for each State should not be concerned with financial, fiscal and economic subjects or with the integration of educational policies or with those matters relating to the judicial and legal departments since these merit separate attention.
206. In view of the remoteness of the Bomeo territories from the Federal Centre we recommend that the Federal posts and services in these territories should be regionalised. When necessary and possible each Federal department should have a regional head in Borneo with sufficient authority to deal with local problems. We would advise that the titles of heads of departments should not be changed immediately and that suitable titles for these regional heads should be coined. It must be clear, however, that the control of the
