The memorandum to Cabinet? recommending that Canada contribute $200,000 toward the cost of Aeromagnetic and Radioactivity survey of Malaya was circulated to Ministers in your absence. When it was discussed briefly at Cabinet two weeks ago, Mr. Harris questioned the propriety of Canada contributing assistance to a dependent territory. The item was therefore deferred until your return. It is now a matter of some urgency that Cabinet consideration be given to this matter as preparations for the survey by a Canadian company are well advanced, and extra costs will be incurred if work cannot begin fairly soon.

2. The purpose of this memorandum is to review various considerations which might be set against Mr. Harris' concern about the propriety of our giving aid to a colony.

3. The Cabinet memorandum states (paragraph 3) "....it is desirable to assist Malaya in carrying out a worthwhile project; Malaya is nearing independence and is anxious to establish links with Western countries, and particularly with other Commonwealth countries". Independence for Malaya has already been publicly promised by the United Kingdom for August, 1957. While it is still legally a colony it has the special status of having been promised independence. Even if we were to take the view that colonies ought not to get assistance under the Colombo Plan but should be looked after by their "mother countries", we might make an exception of Malaya. Further, it is in the field of economic development that the Malayans have already achieved a considerable degree of independence. We have been negotiating with Malayans, not with British officials. Canada has already recognized the approaching independence of Malaya by such actions as your visit to Kuala Lumpur in November, 1955. It will be further emphasized by Mr. Martin's visit next January.

4. We have no reason to believe that other countries in the area would look askance at our furnishing aid to Malaya. Indeed we have reason to believe that it would be welcomed by them. Further, the request offers an opportunity for Canada, not nearly so well-known in Malaya as are Australia and New Zealand, to make her number with this important and strategic territory which within less than ten months will be an independent nation, seeking the support of the West which it is also to our advantage to give.

5. A subsidiary reason for extending assistance is our failure in the eyes of Malaya to accede to its request that we supply an expert to assist in the drafting of the Malayan constitution. If this were to be followed by a failure to consider a request for financial assistance it might have an adverse effect in an area of the world which we are particularly anxious should remain friendly toward the West.

6. The provision of and to Malaya would not seem to open the way for a host of colonies to request our assistance, partly because there are few dependent territories left in South and South East Asia and partly because Malaya is in a very special position. The provision of assistance to a dependent territory in the Colombo Plan area would also not seem likely to increase the pressure for aid to colonies in other parts of the world anymore than the giving of aid to independent countries in that area exposes us to claims from independent countries elsewhere for assistance from us.³⁶

J. L[ÉGER]