Mr. Creech Jones:

On 20th December a circular was issued, by the Governor's direction, requiring any member of the Sarawak Government Service who felt unable to serve that Government with the loyalty it is entitled and obliged to demand of its servants, to notify the authorities accordingly by 31st December. The circular was sent to 2,509 Government servants, including 49 Europeans, 1,371 Malays, 426 Chinese and 456 Dyaks. My latest information is that notice of resignation has been received from 335 officials, of whom all but three were Malays. Of the 332 Malays who have resigned, some 90 per cent. live in one particular area where the influence of the Malay National Union is predominant. They submitted their resignations on printed forms supplied by the Malay National Union, and many of them informed their Departmental Heads privately that they were acting contrary to their real wishes because of pressure brought to bear on them, or their families, and fear of social or religious boycott. Those who have resigned will be granted special retirement terms. As regards the last part of the Question, the majority of the resignations do not take effect for three months. I have, as yet, no information about the arrangements for replacements, but I understand that no functional breakdown of any Government Department is anticipated.