Britain Accused Of ‘Squeezing’ Malaysia

Press, Volume CVI, Issue 31089, 18 June 1966, Page 15

Britain Accused Of ‘Squeezing’ Malaysia

(N.Z.P.A. Reuter—Copyright) KUALA LUMPUR, June 17. Malaysia’s Finance Minister, Mr Tan Siew Sin, today accused Britain of putting “the financial squeeze” on Malaysia to force her to come to terms with Singapore on economic and defence matters.

Mr Tan told the Malaysian Parliament that Britain had declined to consider further aid so long as there was no defence treaty between Malaysia and Singapore, and between Britain and Singapore.

“This, clearly meant that if Singapore chose to refuse or delay the conclusion of these two treaties with Malaysia and Britain, Malaysia would suffer,” he said.

Mr Tan said that when Mr Dennis Healy, the British Minister of Defence, visited Malaysia earlier this year, he assured the Deputy Prime Minister, Tun Abdul Razak, that some form of aid would be forthcoming. “On April 22, I was informed by the British Deputy High Commissioner (Mr J. R. A. Bottomley) that so long as there was no defence treaty between Malaysia and Singapore, and between Britain and Singapore, it was not possible to consider further aid.

“It is not difficult to deduce from this that Britain was putting the financial squeeze on us in order to force us to come to terms with Singapore on the economic sphere,” he said. Mr Tan said the Malaysian Government would take all relevant measures to bridge the gap of 630 million Malaysian dollars to finance the country’s first five-year development plan. Referring to his recent talks in London, Mr Tan said: “The financial motives given as the main reason for

Britain’s refusal to consider further aid fall to the ground when it is remembered that all the 630 million dollars worth of aid asked for would be in the form of British military hardware and payments for the services of British personnel." Mr Tan said that the Chancellor of the Exchequer, Mr Callaghan, had told him that his main concern was Britain’s balance of payment position. “It is Clear to anybody who understands the position that such aid would not adversely

affect Britain’s balance-of-pay-ments position,” he said. Mr Tan said that the deployment of British forces in this part of the world did not necessarily increase Britain's defence burden, because such personnel had to be paid, wherever they might be.

"Stationed in Britain they may cost less, but they would certainly cost more if stationed, say, in Europe and there is no indication that Britain had recruited additional military personnel as a result of confrontation,” he said.