PAN-MALAYAN ECONOMIC WORKING PARTY VISIT TO INDONESIA (Statement by the Chief Minister)

The Chief Minister (Mr D. S. Marshall): Mr Speaker, Sir, I wish to inform hon. Members that, as a follow up of the goodwill mission and in furtherance of this Government's policy of promoting good neighbourly relations and stimulating the flow of trade, a Pan-Malayan Economic Working Party, under the leadership of my friend and colleague the Assistant Minister for Commerce and Industry, the Hon. Mr J. M. Jumabhoy, was in Indonesia from the 3rd to the 10th of October.

I am happy to announce that it received from the Indonesian Government a courteous and friendly reception, and negotiations indicated an equally sincere desire on the part of the Indonesian Government for friendly understanding and healthy trade relationship.

The report of the Working Party is now under consideration by the respective Governments. One of the principal items is an offer by the Indonesian Government to release immediately 12,000 tons of slab rubber as an exceptional measure to aid our unemployment problem. There is also a possibility of further limited quantities of slab rubber being exported until such time as the Indonesian Government is able completely to implement its policy of inducing the producers to manufacture sheet rubber instead of the far less economical slab rubber.

I should like to say that I appreciate this friendly and neighbourly gesture on the part of the Indonesian Government. I would add that we have offered our services to Indonesia in carrying out its policy of helping producers to manufacture sheet rubber by facilitating the purchase from this territory of their requirements.

The Indonesian Government has requested that we should consider taking action to check trade which is illicit under their laws. Within the framework of our free port policy which is essential to our very existence, this Government considers that there is a neighbourly obligation to assist along these lines, and this request will be sympathetically considered in all its implications.

A further request for extension of payment in United States dollars in respect of produce imported for re-export to hard currency areas will be pursued. It is one of the subjects which I shall discuss with the Colonial Office on my projected visit next December.

The Indonesian authorities reaffirm that, under the new Indonesian import policy, there are no discriminatory restrictions on imports from Malaya, and that Singapore and Federation merchants will be able freely to quote for regular Indonesian requirements.

A list of return goods permitted to be carried by fish carriers returning to Rhio and Lingga was received. This list has been a matter of lengthy correspondence and I am happy that agreement has at last been reached.

It has also been clarified that Malayan/ Indonesian films will in future be exchanged on a basis of equal reciprocity of showing, over and above a quota of seven Malayan films allowed per year.

We have also received an assurance that there will be no restrictions on imports of salt fish from us, provided the salt fish is of Malayan origin and subject to the pattern of Indonesian trade. This is particularly helpful, Sir, to the fishing industry of Malaya and, to some extent, of Singapore.

The question of facilitating the issue of visas for businessmen is being actively pursued, and other matters are being investigated in anticipation of the discussions of the Economic Mission. An Indonesian fact-finding mission will be coming to Singapore shortly to study our procedure about the end of this month.

All items discussed have been set out in the form of an agreed record signed by the leaders of the Working Parties of both sides for confirmation by their respective Governments, and a possible agenda for the Economic Mission has been drawn up.

We have extended to Indonesia an invitation for its Economic Mission to come to Singapore, at least for the first part of the meeting projected for early January, and are awaiting a reply to this invitation.

The Minister for Local Government, Lands and Housing, my friend and colleague the Hon. Inche Abdul Hamid Bin Haji Jumat, and Sir Sydney Caine pursued enquiries with a view to closer cultural relations, and tentative arrangements have been arrived at as a first step in what is hoped will be ever closer cultural relations with Indonesia.

I wish to inform hon. Members that in the Working Party there prevailed complete harmony between the Federation representatives and our own, and I desire to thank the Federation for this brotherly co-operation. I also wish to thank the leader and members of the Working Party for their efforts on our behalf, and I would particularly mention Sir Sydney Caine, Mr J. A. D. Morrison, Mr Yap Pheng Geck, Mr D. T. Assomull, Mr L. L. Best, Mr Tan Hock Seng, Mr Kwek Soh Loh, and Mr W. H. McNeil, for their public spirit in giving generously of their time and advice during the negotiations.

I think it right, Sir, to add a tribute to the spirit in which the Indonesian Government approached the solution of the trading problems between us, and it is my sincere hope that that spirit, which we fully reciprocate, will culminate next January in an agreement that will be the framework for healthy and friendly relations with our neighbours.

The Chief Minister rose -

Mr Speaker: Mr Chief Minister?

The Chief Minister: Mr Speaker, Sir, would it be appropriate at this juncture to move the adjournment at the rising of the House or -?

Mr Speaker: You can do it just before the commencement of Public Business of the Day.

The Chief Minister: Very well, I will do it, Sir.