Pacific Stars And Stripes Newspaper Archives Sep 19 1963, Page 15

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Pacific Stars and Stripes (Newspaper) - September 19, 1963, Tokyo, Japan Sia Hope High f Al r economic obstacles can be hurdles by the associated press second in a series on the new Malaysia hailed As an economic Success Story before it was Ever can expect to find some big obstacles slowing its March to the sound foundation to make Good is but its going to be an expensive pro and it will take a lot of Jug gling in finance and administration to make the new nation live up to its eco nomic the Cost will be heaviest for Malaya and its More prosperous and better developed with Britain stops footing the Bill for its colonies of Sarawak and North both Are underdeveloped Republic of Vietnam by Malayan and Singapore despite continuing British development much of the Slack will have to be taken up by the new Central to add to the Large scale pub Lic financing will have to be found for urgently needed economic diversification and for How High the Bill will no one really at least not until a Central economic plan for Malaysia has been drawn that is expected sometime in careful people who wrap their predictions in words of qua Ifica ventured to say that since the base will be broadened and a wider Range of resources will Aid the Economy of Malaysia can soon be substantially stronger than the sum of its present to achieve that Quick fast income growth and the establishment of a com Mon Market will be the most authoritative analysis on Malaysia economic a sober and realistic report of a special Mission of the International Bank for reconstruction and Points to impressive economic Progress in the four territories Over the past it also notes the advantages of a Long established common the Malayan Dol and of similar approaches in development industrialization pro investment climate has been healthy in the territories free Market per capita income for the 860 Malayan dollars annual among the highest in Educa health and Rural development have received millions of dollars in Public technical and trading skills in parts of Singa highly Malaysia major Export product is it represents 35 per cent of total of wealth when world prices Are Root of depression when they Are for the past two years the Price has slipped steadily under the pressure of synthetic rubber recently it dropped below 70 cents for the first time since malaysian economists pre dict they will dip even much of the foundation for Faith in Malaysia economic that sooner or later natural rubber prices will level off and that rubber growers will be Able to make up for Slimmer profit margins by increasing pin mar ily through widespread introduction of High yielding rubber in second place in Export earn Ings with 13 per is expected to hold at fairly stable despite diminish ing Malaya Iron Ore almost exclusively directed toward will depend on that country Palm a major diversification has shown a drop in although push e d with vigor through a system of tax holi Days for new industries under so called Pioneer is still below thai and philippine at locally made products cannot be expected to be competitive with those produced outside the such As for number defense during the years of the new nation will lean almost exclusively on British guns arrangement Likely to keep neigh Boring Indonesia the a strategic Bridge be tween the bulk of Southeast Asia and the indonesian has inherited a defense agreement Britain held with Malaya for the past six principal reason for the pact is that it will take Union of four former British until it is militarily Strong enough to defend it self on an even limited on the other the agreement Al lows a member of eight nation Southeast treaty Organiza to retain a major base in this part of the that bade geographical and military hinge from which the Malaysia territories bracket the lower reaches of the South China rubber is packed for stars and stripes photos by Ernest tin is mined by dredge this is tin mine near Kuala Pacific stars september 18c3 the Island state off the Southern tip of the Malayan which Points like an Arrow at has been a major British defense bastion since pre world War today it has become a sophisticated military nerve Center and houses Headquarters for Mobile air and Navy units of Britain far East nonaligned with the largest armed forces in Southeast has never liked the British tary or in past attacks on the Malaysia it has denounced the federation concept As a continuation of colonialist Rule and has charged that Malaysia will physically encircle indo Indonesia has an army about an air Force with More than Jet aircraft and a Navy headed by a Cruiser and including sub British Protection is considered imperative Here because against Indonesia might Malaysia is far too weak to be besides police units and Small Border Security Wak and North Borneo have no military Independent since has devoted comparatively Low budget allocations to defense while paying major attention to economic development and its army of about men consists of seven infantry battalions and two reconnaissance it has Virtu ally no heavy weapons and its men Are trained More for anti guerrilla Type operations than for conventional its chief of staff is a Are Many other High ranking added to this array Are More than most of whom have paramilitary training from the Days of the 12year War against a terrorist army similar to South Viet name Viet military experts give top ranking to the so called police Field a hardcore unit of crack Jungle the Navy is pitifully charged with guarding about Miles of malaysian coastline it owns less than a dozen Small none larger than a a number of bran new fast patrol boats Are on order and theres talk of buying a but even that will not cover the most urgent Malaya air Force consists of a num Ber of highly Maneu Merable trans ports Able to land on bumpy Jungle it has no fighters or bombers and Therdo Are no present plans to strike wings although larger transports and some helicopters Are on Malaya has announced it is doubling its defense budget from the 94 million Malayan dollars Mil lion it spends in the am tint represented about 9 per cent of the budget and compares to a figure of 230 Malayan dollars about Mil lion which Malaya set aside in the same year for internal Security allocations Are also expected to be substantially Britain has pledged the equivalent of 84 million dollars in of it in for the next but the military buildup will take during that British and Commonwealth forces on Alert against attack on the new Britain has about ground troops scattered in garrisons throughout the the units include Tough gurkhas and heavy weapons detach at present a balanced combat Force is stationed in Sarawak and Brunei where launched an abortive re Volt for against a Admiral sir David Luce commander chief British far East forces Lay Malaysia will share an 800mile heavily Jungle Border with Indonesia on Borneo two australian Jet fighter squadrons and one Jet Light bomber Squadron Are based in Northern British jets and bombers Are based in along with helicopter and transport air their total strength is British naval units in the Malaysia area include a commando a six six six a number of smaller vessels and 15 support such As tankers and Supply two Complete Royal commandos brigade Headquarters Are also part of the naval next internal hot spots

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