determination of its own affairs. I have also been aware that the peoples of the territories are still striving for a more adequate level of educational development. Having reflected fully on these considerations, and taking into account the framework within which the Mission's task was performed, I have come to the conclusion that the majority of the peoples of Sabah (North Borneo) and of Sarawak, have given serious and thoughtful consideration to their future, and to the implications for them of participation in a Federation of Malaysia. I believe that the majority of them have concluded that they wish to bring their dependent status to an end and to realize their independence through freely chosen association with other peoples in their region with whom they feel ties of ethnic association, heritage, language, religion, culture, economic relationship, and ideals and objectives. Not all of these considerations are present in equal weight in all minds, but it is my conclusion that the majority of the peoples of the two territories, having taken them into account, wish to engage, with the peoples of the Federation of Malaya and Singapore, in an enlarged Federation of Malaysia through which they can strive together to realize the fulfilment of their destiny. Bearing in mind the fundamental agreement of the three participating Governments in the Manila meetings, and the statement by the Republic of Indonesia and the Republic of the Philippines that they would welcome the formation of Malaysia provided that the support of the people of the territories was ascertained by me and that, in my opinion, complete compliance with the principle of selfdetermination within the requirements of General Assembly resolution 1541 (XV), Principle IX of the Annex, was ensured, my conclusions, based on the findings of the Mission, is that on both of these counts there is no doubt about the wishes of a sizeable majority of the peoples of these territories to join in the Federation of Malaysia. In reaching my conclusions, I have taken account of the concern expressed with regard to the political factors resulting from the constitutional status of the territories and about influences from outside the area on the promotion of the proposed Federation. Giving these considerations their due weight, in relation to the responsibilities and obligations established in Article 73 and General Assembly resolution 1541 (XV) in respect of the territories, I am satisfied that the conclusions set forth above take cognizance of, and are in accordance with, the requirements set forth in the request addressed to me on 5 August 1963 by the Foreign Ministers of the Republic of Indonesia, the Federation of Malaya and the Republic of the Philippines. Before concluding, I would like to pay a tribute to my Personal Representative, Mr. L. Michelmore, my Deputy Representative, Mr. G. Janecek, and to all the members of the United Nations Malaysia Mission who accomplished a sensitive and difficult task in a relatively short period, but at the same time in a thorough and wholly adequate manner. In a sense, it was a pity that the work of the Mission had to be accomplished within certain deadlines. But I do feel that, while more time might have enabled the Mission to obtain more copious documentation and other evidence, it would not have affected the conclusions to any significant extent. From the beginning of this year I have been observing the rising tension in South-East Asia on account of the differences of opinion among the countries most directly interested in the Malaysia issue. It was in the hope that some form of United Nations involvement might help to reduce tension that I agreed to respond positively to the request made by the three Manila Powers. I would hope that the exercise in which my colleagues and I have been involved in this regard will have this effect, and that the coming into being of Malaysia will not prove to be a continuing source of friction and tension in the area. The emergence of dependent territories by a process of self-determination to the status of self-government, either as independent sovereign States or as auton For the text of the U.N. Charter, see American Foreign Policy, 1950–1955: Basic Documents, vol. I, pp. 134–161. 95 Appointed Aug. 13, the Mission visited Sarawak and Sabah (North Borneo), Aug. 16-Sept. 5, 1963. omous components of larger units, has always been one of the purposes of the Charter and the objectives of the United Nations. Whatever the origins of the proposal of Malaysia may have been, it seems to me in the light of actual events, including the present exercise, that we have witnessed in Sarawak and North Borneo the same process leading to self-government. I fervently hope that the people of these territories will achieve progress and prosperity, and find their fulfilment as component States of Malaysia. IX-85 UNITED STATES SUPPORT OF THE INCLUSION OF SABAH (NORTH BORNEO) AND SARAWAK IN MALAYSIA, TO BE PROCLAIMED ON SEPTEMBER 16: Statement Read to Correspondents by the Director of the Office of News (Phillips), Department of State, September 14, 1963 96 The Department of State has noted the report issued by the Secretary-General of the United Nations which concludes that the majority of the people of Sabah (North Borneo) and Sarawak desire the inclusion of their two states in Malaysia, to be proclaimed on September 16.97 The United States welcomes Malaysia and looks forward to close and cordial relations between our two nations.98 The initiative taken by the leaders of the Federation of Malaya, Indonesia, and the Philippines in seeking the assistance of the Secretary-General to ascertain the wishes of the people of Sabah_and Sarawak as set forth in the Manila Agreement 99 is indicative of the confidence we all share in the United Nations as an instrument for promoting harmony among nations and for helping peoples achieve their independence. Now that the Secretary-General has issued his findings, we believe that all concerned should direct their national efforts toward mutually beneficial goals in the wider interest of stability and economic progress in the area. 08 97 Department of State Bulletin, Oct. 7, 1963, p. 542. 98 United States recognition of Malaysia was automatic because the joining of Sabah, Sarawak, and Singapore with the Malayan Federation constituted in effect an enlargement rather than formation of a totally new national entity. Therefore, Charles F. Baldwin, who had served as U.S. Ambassador to Malaya, was accredited to Malaysia, maintaining the Embassy in Kuala Lumpur. "Aug. 5, 1963; see footnote 87 to doc. IX-83 ante. Doc. IX-85 IX-86 "[WHAT] IS THE POSSIBLE USE OF PASSING A PROHIBITION FOR ASSISTANCE TO INDONESIA, BECAUSE OF ITS ATTITUDE TOWARD MALAYSIA WHEN 3 MONTHS FROM NOW IT MAY OR MAY NOT BE THE SAME AS IT IS TODAY": Reply Made by the President (Kennedy) to a Question Asked at a News Conference, November 14, 1963 (Excerpt) 1 In the case of Indonesia . . . we are suspending it [consideration of additional foreign assistance]. It seems to me it is much betterI don't know what the situation is going to be 3 months from now in regard to the relations between Indonesia and Malaysia. I hope they are better. But it [what] is the possible use of passing a prohibition for assistance to Indonesia, because of its attitude toward Malaysia when 3 months from now it may or may not be the same as it is today.* That's the point. IX-87 INDONESIAN-PHILIPPINE NONRECOGNITION OF MALAYSIA: Annual Report of the U.N. Secretary-General (Thant) on the Work of the Organization During the Period June 16, 1963June 15, 1964, Submitted August 3, 1964 (Excerpt) 5 On 16 September, the Federation of Malaysia was proclaimed. On 17 September, when the General Assembly began its eighteenth session, the representative of Indonesia stated that his delegation had noted that, in the seating arrangements in the Assembly hall, the seat of the Federation of Malaya was being occupied by the Federation of Malaysia. The Indonesian delegation felt compelled to take exception to that procedural fait accompli. The representative of Indonesia added that his Government had withheld recognition of the Federation of Malaysia for very serious reasons. Recognition of Malaysia was also withheld by the Republic of the Philippines. During the general debate at the eighteenth session, both Indonesia and the Philippines expressed their reservations about the findings of the United Nations Malaysian Mission and stated that the Mission was unable to carry out fully the terms of ascertainment as given in the Manila agreement.' The representatives The reply printed here is taken from pp. 849-850 of Public Papers of the Presidents of the United States: John F. Kennedy, 1963. 2 As explained by the State Department immediately following the news conference, the President did not mean that existing aid programs to Indonesia had been suspended. He had in mind the fact that the United States had suspended consideration of a large additional aid program which, until Indonesia's recent actions against Malaysia, was being developed in cooperation with other members of the Development Assistance Committee of the Organization for Economic Cooperation and Development. [Footnote in the source text.] 3 Indonesian President Sukarno threatened to "fight and destroy" Malaysia in a speech made at Jogjakarta, Sept. 25, 1963. The U.S. Senate approved by a vote of 65-13 taken Nov. 7, 1963, the Proxmire amendment to the 1963 foreign assistance bill (ante, doc. IX-42). U.N. doc. A/5801, p. 27. 6 See U.N. doc. A/PV.1206. 7 See ante, doc. IX-83. of the United Kingdom and the Federation of Malaysia' replied to the charges of Indonesia and the Philippines and upheld the findings of the United Nations Malaysian Mission.10 PAKISTAN [See docs. IX-48–54.] THE PHILIPPINES [See also docs. IX-81 et seq.] IX-88 "THE PHILIPPINE-AMERICAN ECONOMIC PARTNERSHIP WILL GROW AND FLOURISH ON THE NEW FOUNDATIONS WE ARE NOW PREPARING": Address by the Assistant Secretary of State for Far Eastern Affairs (Hilsman) Before the Philippine-American Chamber of Commerce, New York City, May 23, 1963 (Excerpt) 11 11 We are working in the Far East to help with knowledge and assistance to build nation-states faster, in many cases where they have never before existed, against an enemy that is marshaling its full efforts to subvert them to communism. Since destruction is so much easier than construction, some would say that we have embarked on a monumental, possibly a hopeless, task. But one of the most interesting phenomena in recent years has been the mounting accumulation of evidence that patience and generosity, combined with a will toward freedom, are of extraordinary effectiveness, no matter how great the challenge. Japan, the Republic of China, Malaya, Thailand, and the country we are primarily concerned with today-the Philippines--have overcome the main trials and disasters stemming from the war to the point of abandoning red ink for black in their economic as well as their political ledgers. The bright spots in Asia did not get that way automatically-many years of hard work, including our continuing help and effort, brought it about. In view of the continuing challenges and opportunities for nation-building in Asia, we cannot rest on our laurels. Our efforts directed toward keeping up the momentum of freeworld policy abroad must mesh with the programs our friends and See U.N. docs. A/PV.1219, 1222, 1234. 9 See U.N. docs. A/PV.1219, 1228, 1237. 10 See ante, doc. IX-84. "Department of State press release No. 276 (text as printed in the Department of State Bulletin, June 10, 1963, pp. 897-900). allies have undertaken in their own behalf. What is the outlook as concerns the Philippines? We are now observing the Philippines move to a status of more complete economic independence, and it is this move with which you are particularly concerned. We in the Government recognize your concern and wish to work closely with you in preparing for the adjustments which will have to be made. Our economic relations with the Philippines are close and go back many years. The first American ship sailed into Manila harbor in 1792, and there have been regular commercial relations since 1796. Since the last war we have conducted our trade through a special trade agreement which expires in 1974.12 We are now preparing for the day when we should think of a successor commercial arrangement to replace the Laurel-Langley agreement. But let us first review some of the recent economic developments and draw out their meaning for our future economic relations. With the election of President Macapagal we have seen a new era ushered in. We have been impressed by his decisiveness, and we feel that the major steps that he has taken have done much to contribute to the present dynamism of the Philippine business community and to put the Philippines more squarely on their own feet economically. The immediate step of devaluing the peso and freeing the country from its shackles of import controls has been immensely effective in inspiring confidence of both foreign and domestic investors.13 It is significant that the peso only required 14 weeks to reach a fixed level and has remained firm ever since. We appreciate the significance of the wise measures that the Filipino leaders took in creating a stabilization fund to cushion against any undue fluctuations. The success of their management is shown in the fact that it was only necessary to use a small part of the stabilization fund. 14 Another promising development has been the formulation of a wellworked-out, 5-year, integrated, socioeconomic program to encourage economic development. We find that the Philippines have set for themselves the goal of attaining a target increase in overall domestic production of about 6 percent per annum from fiscal year 1963 to 1967. which will insure that some 330,000 to 360,000 new jobs are provided annually. Furthermore, it is intended that the greater portion of this annual increase in employment is to be absorbed in industrial production. The functioning of the Program Implementation Agency, and the careful planning that has gone into the coordination of this year's budget and the legislative proposals submitted by President Macapagal this spring have been an important step forward. We are interested in the outcome of those proposals which are intended to stimulate foreign investment. Likewise, we are confidently awaiting the publication at the end of this fiscal year of the results of the |