COMMON MARKET (Statement on Talks with Federation of Malaya Government)

Dato Abdul Hamid Bin Haji Jumat asked the Minister for Finance whether he will make a statement on the progress made in the talks with the Federation of Malaya Government on the Common Market.

Dr Goh Keng Swee: Mr Speaker, Sir, the proposal to establish a Common Market arrangement in respect of a limited number of commodities produced either in the Federation or Singapore was first mooted by the Singapore Government in September 1959. As a result of subsequent discussions both at official and ministerial levels, the two Governments agreed to form a Joint Committee of Officials to discuss the proposal submitted by the Singapore Government for the establishment of a Common Market.

Three meetings of the Joint Committee of Officials were held between 10th June, 1960, and 25th August, 1960. In the course of these meetings, the officials of the Federation Government sought elucidation on certain points, and both sides examined in detail the implications of the proposal. After the conclusion of the first series of meetings, the Federation representative asked for time to consider these proposals. It is hoped that talks on this question will be held shortly between Ministers of the Governments of Singapore and the Federation.

Dato Abdul Hamid: Mr Speaker, Sir, would the Minister not agree that there has been no progress at all, and that in view of the Federation Government's attitude it would be better to drop the whole matter?

Dr Goh Keng Swee: I do not agree that no progress has been made, Mr Speaker, Sir. May I remind the hon. Member that in the case of the European Common Market, it took nearly ten years before the proposals were finally put into shape? I see absolutely no cause for pessimism in regard to this scheme that we propose.

Tun Lim Yew Hock: Would the Minister then give an indication whether the talks will be successful, since there have been no talks from August 1960?

Dr Goh Keng Swee: Mr Speaker, Sir, I think the Member for Cairnhill is asking for an assurance which, in the nature of things, just cannot be given. But I would say that we are trying our best. The next step - and it is a significant advance - will be that discussions will be held at a higher level, that is to say, it has progressed from discussions between officials on purely technical matters to discussions between Ministers where the wider implications can be examined.

Tun Lim Yew Hock: Mr Speaker, Sir, I have not asked for an assurance. I have asked for an indication. Will the Minister please give an indication whether the talks are going to be successful?

Mr Speaker: The Minister probably is not a pessimist.