IMPLICATIONS OF DISPUTE OVER SARAWAK CONTINENTAL SHELF

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP08C01297R000300090003-9
• Release Decision: RIPPUB
• Original Classification: C
• Document Page Count: 5
• Document Creation Date: December 27, 2016
• Document Release Date: September 13, 2012
• Sequence Number: 3
• Publication Date: October 13, 1969
• Content Type: CABLE

Declassified in Part -Sanitized Copy Approved for Release 2012/11/19 :CIA-RDP08C01297R000300090003-9
? \ " ~~ rV
Departrr~ent of State
PAGE 01 KUCHIN 00497 01 OF 02 1404082
-ACTION EA 15 -
:INFO OCT 01,I0 13,C~AE 00,DODE 00,PM 04,H 02,INR 07,L 03'NSAE 00,
NSC 10,P 03,RSC 01,PRS 01 ,SS 20,USTA 12,SFW 02,E 15,AID 28,
COM 08, INT 06,MSC 01,DOT 12 yRSR 01,TRSY 1 1 ,NIC 01 ,UPW 01,PC 04,
! 182 W
~R 130840'2 ~3~T 69
FM AMCONS'UL KUCHING
TO SECSTATE WASHDC 589
~NF:O AMEMBASSY KUALA. LUMPUR
,p,ME~IBAS SY S II~tGAPORE : .
ECTION 1 OF 2 KUCHING 0497.
C-
?SU$J s Ii~PLICATIpt~IS OF DISPUTE OVER- SARAWAK CONTINENTAL SHELF
io~ .?SUM:M~A'~3Y: THE DEVELOPING FEDERALOSTATE DISPUTE OVER THE CON-
T'Ii~EC,"~.~=.~LF HAS SERIOUS ECONOMIC AND .POLITICAL IMPLICATIONS ... ,.
,F,OR ~R~~ 1#~iD STS, RELATIONSHIP WITH THE CENTRAL GOVERNMENT o`? ~ '~
~AL.A LUM'P'l;~~ IS ATTEMPTING TO ESTABLISH ITS AUTHORITY OVER THE
EXPLOITATION 'OF RESOURCES .BEYOND THE THREE-MILE LIMIT AND THERI?' '
ARE iNDiCATiONS THAT IT INTENDS TO EXPLOIT ITS ??EMERGENCY?? POWERS
AND THE WEAK ??CARE-TAKER?? GOVERNMENT IN KUCHING TO ACHIEVE ITS ~.; .
OBJECTIVEa THE FEDERAL~GOVERNMENT IS SUPPORTED IN ITS CASE BY SABAHo
THE LEGAL QUESTION ITSELF IS MOOT,.Bl~T THE PRESENT STATE
:GOVERNMENT WOULD SEEM TO HAVE NO CONSTITUTIONAL POWER TO COMMIT
SARAWAK TO ANY AGREEMENT ON THIS MATTERo THE PRESENT ALLIANCE LEAi~ER
IN THE STATE COULD CONCEIVABLY MAKE A DETERMINED STAND ON THIS ISSU1r
BIIT MORE LIKELY THEY WILL ACCEPT K~3ALA LUMPUR? S .POSITION IN'RETt~R~N` ,.
FOR MINOR CONCESSIONSe IF 50, ANTIS.MALAYSIA SENT~'I-MENT W.HICH:; ISM`'
.~iL~'~E~Ai~~' PREVELANT AMONG -THE CHI-NESS AND EDUCATED NATIVES OF
~tAWAK ~uILL GkOWo" AT ,~H~: SAME- TIME THE ~NOC 'C;OULD BE FURTHER TEMPTED'
?~l~J;~W-TN.ACCEPTANCE BY SAR"AWAK OE?OTHER KAT=~.QNAL POLICIES SUCH ;AS :`, ..
~-ti U 5 ~. 11Y;, , C.1J U t+A. d l U tv H lVU ,~, H IVl7 U H l7 C. o ~ c, tv u a U ~~tl'# M,R ~ ~ c
- CHIEF MINISTER TAWI S~,I ANt? THREE OF. H.IS. MINISTERS RETURNED
T0- KUCH~~G O.C~OBER 12TH .FpLLOW~NG NEGOTIATIONS ~N ,K'UALA LUMI~UR ~1K
Declassified in Part -Sanitized Copy Approved for Release 2012/11/19 :CIA-RDP08C01297R000300090003-9
 Declassified in Part -Sanitized Copy Approved for Release 2012/11/19 :CIA-RDP08C01297R000300090003-9
CABLE SECRETARIAT DI~SEk/ BY
Fl~E? Rig.
Department of State TELEGRAM
CONFiDENTTAL
PAGE 02 KUCNIN 00497 01 OF 02 1404082
FEDERAL GOVERNMENT INTENTION TO EXTEND APPLICATION OF CONTINENTAL
SHELF ACT 1966 TO SARAWAK? TAWI SLI TOLD PRESS THAT NOTHING FINAL HAD
BEEN DECIDEDo HE DESCRIBED ISSUE ??AS LITTLE BIT OF DISPUTE WITHIN
THE FAMILY?? BUT HE SAID IT WAS VERY IMPORTANT MATTER AND ??IT IS
RIGHT FOR OUR PEOPLE TO KNOW?? ABOUT ITe
~>
`3o CHAIRMAN OF STATE OPERATIONS COMMITTEE HARUN ARIFF'IN IN
PUBLIC STATEMENT SAID THIS QUESTION WAS ONLY ??NORMAL AND MINOR
ISSUE?? AND SHOULD NOT BE ?'BLOATED UP?? AS IT WOULD DIVIDE THE
COUNTRY AND WOULD -ALLOW ??A TImNATI~pN?AL ELEMENTS?? TO CREATE
DISSENSIONQ HARUN. S.A:ID THAT WHATEVER. DECISION WAS!:.ARRIVED :AT. IT.
MUST BE ACCEPTED AS BENEFITING CITIZENS. OF MALAYSIA A,S A WHOLEo..-
HARUN EXPLAINED FEDERAL GOVERNMENT ..POSITION WHTCH;.HE DESCRIBED ..AS "
PROPER AND REASONABLE a. HARUN SAID THAT :OTHER 12. STATES TNGLUD:I[~G
SABAH HAD ACCEPTED THIS POLICY, WHICH INDICATED THAT IT~WAS A"~
DEMOCRATIC AND WISE DECISION??o ANY WEALTH WON BY THE FEDERAL
GOVERNMENT', HARUN AL50 POINTED _OUT, WOULD .BE PLOUGHED BACK TO
THE STATE FOR DEUELOPMEN.Ta
4o ACTING STATE; ATTORNEY GENERAL JEMURI BIN SERJAN, WHO "
ACCOMPANIED DELEGATION TO KUALA LUMPUR, TODAY OUTLINED STATE?S
?POSITION TO COLVSULATE OFFICERo IN 1954, JEMURI SAID, SARAWAK
ORDER IN COUN'CIL:?? DECREED THAT TERRITORY OF SARAWAK INCLUDED
CONTINENTAL SHELF, AND OIL MINING ORDTNANCE OF? 1958 FURTHER ESTABm
LISHED AUTHORJ~TY OF SARAWAK GOVERNMENT OVER EXPLORATION-AND EXPLOTTA
TION OF THE S~HELFo SARAWAK RETAINED THIS AUTHORITY Wl-iEN IT
JOINED MALAYSIA IN 1963, JEMURI ARGUED, AS ARTICLE 0)!JE OF THE
.MALAYSIAN CONSTITUTION PROVIDES THAT THE TERRITORIES OF THE
INDIVIDUAL STATES~OF THE FEDERATION ??ARE THE TERRITOF,'IES COMPRISED
THEREIN IMMF'DIATELY BEFORE MALAYSIA DAY?", AND ACCORDING TO THE
MALAYSIA AGREEMENT THE EXISTING LAWS OF THE BORNEO STA.TE:S.CONTINUE
IN ,FORCE' P~'fOVIDED THEY DID NOT CONTRAVENE THE CONST'ITCiTIONo SARAWAK.
AND SABAH? 5. EfNIQUE P_OSITIO"N 'WAS CO~NF3RM.EDBV JERMUI SAID, BY THE
CONTINENT'{L-SHELF ACT OF 1966 THE PREAMBL'E` OF WHICH STATES THAT: THE
PR~OV TSION~S . 01; :'THE ACS' ARE RESTRICTED TO WEST MALAYSIA o
,?:... ,.
5a F`EDERA~ r
L GOVERNMENT POSITION IS. THAT CONTINENTAL .SHEa~;,F CONVECTION
OF 195,~ EXCLUDED TERRITORIAL .CLAIMS TO SHELF .BUT,~ESTAB3.:ISHED
NATIO~N'AL RIGHTS TO EXPLOTTATION? THIS ISSUE` T1IU5 .I'NVOI;iIES. .
INTERNAT IONAL RELATIONS, IT IS 'SAID, AND THEREFORE COMES UNO"ER
FEDERAL .AUTHORITYo ALSO ARTICLE 4 OF 1966 ACT STATES WITHOUT
Declassified in Part -Sanitized Copy Approved for Release 2012/11/19 :CIA-RDP08C01297R000300090003-9
 Declassified in Part -Sanitized Copy Approved for Release 2012/11/19 :CIA-RDP08C01297R000300090003-9
~~G~ ~ ~ ~ ~ ~~' I)epar~inent of State
CONFIDENTIAL --
PAGE 01 KUCHI N 0049 :/ 03 OF 02 14 OE4 9Z
2 0 C`~~L ~Y~ ~,
A CT 10 N E A 15
INFO OCT O1,I0 13SGIAE OO,DODE OOSPM 04 SH 02,INR 07,L 039NSAE 00,
NSC IOSP 039RSC O1,PRS O1,SS 209USIA 129E 15 9ATD 289COM 08,
SFW 02S INT 069RSR 01 9MSC O1. ,DOT 12,TRSY 1 1 S NIC O1,PC 04 SUP4J O1
182 W
R 9308402 OC;T 69
FM AMCONSUL KUCHI NG
TO SE CSTA`TE WASHDC 590
INFO AMEMBASSY KUALA LUMPUR
AMEMBASSY SINGAPBlE
C O. N F L D E N T I A L-SECTION 2 OF' .2 KUCHING 0492
6o J.EMIJRI SAID THAT. KUALA LUMPUR HAS DRAFTER AGREEMENT TO BE
CONCLUDED WITH S}{ELL TO COVER .AREAS BEYOND THREEmMILE-LIMIT AND
THAT STATE GOVERNMENT. WqS NOT INCLUDED AS PARTY T'0 THIS AGREEMENTo
CENTRAL GOVERNMENT. HAD ALSO -INTENDED FORMALLY TO EXTEND 1966 ACT TO
EAST. MALAYSIA AND HAD REQUESTED CONCURRENCE OF STATE GOVERNMENT
AS REQUIRED BY MALAYSIA.AGREEMENTo JEMURI SAID ANOTHER LEGAL
QUESTION WAS WHETHER ??CAREGTAKER?? CABINET HAD AUTHORITY TO CONCUR
IN FEDERAL GOL'ER NMENT ACTIONS OR EVEN TO CONCLUDE ST ATE? S OGJN
AGREEMENT WITH SHELLo CHIEF JUSTICE OF BORNEO HIGH COURT GAVE,
CCJNSULA'TE OFFICER HIS CONFIDENTIAL OPINION THAT PRESENT CABINET HAD
CONSTIT1.iTJ:ONAL AUTHORITY ONLY FOR ??DAY?TOGDAY AFFAIRS?? AND THAT
ANY FORMAL AGREEMENT IT MADE COULD CONCEIVABLY BE CHALLENGED BY
NEXT ELECTED DOVER NMEPVTo HOWEVER S CHIEF JUSTICE NOTED THAT THERE
WAS NO PRECEDENT FOR PROLONGED LIFE OF ??CAREmTAKER?? GOVERNMENT IN
??EMERGENCY?? AND CONSTITUTIONAL QUESTIONS WERE THUS AMBIGUOUSo
JEMURI SAID ISSUE MIGHT EVE NTl1ALLY G0 TQ FEDERAL COURTS OR KUALA
LUMPUR MIGHT OFFER .LIMITED AND PERHAPS TEMPORARY CONCESIONS IN
RETURN FOR SARAWAK? S CONCURRENCE I N EXTENSION OF' 1966 ACT TO EAST
MALAYSIAo NEW AGREEMENT WITH SHELLS HE NOTEDs WOULD BE DELAYED
UNTIL SOLUTION OF? PROBLEMa
"~o .ASSISTANT STATE SECRETARYS LEO MOG.GTE~ TOLD CONSULATE .OFF"ICER
THAT THIS ISSUE HAD, SERIOUS ECONOMIC 'AND POLITICAL IMPL~CAT'IONS
CONFIDENTIAL
Declassified in Part -Sanitized Copy Approved for Release 2012/11/19 :CIA-RDP08C01297R000300090003-9
 Declassified in Part -Sanitized Copy Approved for Release 2012/11/19 :CIA-RDP08C01297R000300090003-9
CABLE SECRETARIAT~~I;;SEM by
FILE. RF.
CONFIDENTIAL
PAGE 03 KUCHIN 00497 01 OF 02 14040$Z -
QUALIFICATION THAT FEDERAL GOVERNMENT WILL HAVE AUTHORITY OVER
CONTINENTAL SHELFA FINALLY, IT IS ARGUED'THAT THE FACT THAT SABAH
HAS ACCEPTED FEDERAL GOVERNMENT POSITION CONFIRMS ITS VALIDITYo
(ACCORDING TO ANOTHER STATE OFFICIALe SARAWAK OFFICIALS INFORMALLY
APPROACHED SABAH GOVERNMENT SOME MONTHS AGO AND~PROPOSED JOINT
POSITION ON THIS ISSUE, BUT NO REPLY EVER RECEIVED.o)
TAYLOR
BT
Department of State TELEGRAM
Declassified in Part -Sanitized Copy Approved for Release 2012/11/19 :CIA-RDP08C01297R000300090003-9
 Declassified in Part -Sanitized Copy Approved for Release 2012/11/19 :CIA-RDP08C01297R000300090003-9
Department of State *e~ er_n w u
rER it TOTAL COr1B$e
CONFIDENTIAL
PAGE 02' KUCHIN OP149'~ Q2 OF f~2 140649Z
FOR .THE STATEo ONLY WAY SARAWAK CAN HOPE TO PROTECT ITS POSITION
OFP THIS AND OTHER ISSUES MOGGIE SAIDA IS FOR ITS POLITICAL AND
CIVIL SERVICE LEADERS TO MAKE A FIRM STAND AND CONFRONT `THE
FEDERAL AUTHORTTIESo IF THE CHIEF MINISTER AND TEMENGGONG JUGAH
THREATENED TO MAKE A UNITED FRONT WITH THE OPPOSITION IN AN OPEN
FIGHT, MOGGIE SPECULATEDg KUALA LUMPUR WOULD LIKELY OFFER AT
LEAST A COMPROMISEo 1~OWEVER s MOGGIE WAS NOT OPTIMISTIC THAT LOCAL.
~,EAD.ERS WOULD PROVE THEMSELVES SO DETERMINEDO TAWI SLI FELT
STRONGLY ABOUT THE MATTER, MOGGTE SAIDs BUT HE IS t~JEAK PERSONALITY9 -
OTHER THREE 3:BAN MINISTERS HAVE NO NOTION AND LITTLE INTEREST IN WHAT
IS AT STAKE AND THEY. CAN BE BOUGHT .OV-ERo THE THREE .MOSLEM
BUMIPUTRA MINISTERS WOULD' PROBABLY SUPI'0?RT THE F"ED~RAL GO~ER~~1E'NT
IN THE ENDy AS W?ULQ PR08ABLY ONE OR BOTH OF THE, SCA CABINET. .
~2EMBERSo MOGGIE SALD HE SPENT TWO HOURS RECENTLY EXPLAINT~NG .~
STGNIFICANC~ OF THE MATTER TO MINISTER OF SARAWAK AFFAIRS JUG pH
BUT LT.IS HIGHLY UNCERTAIN.WHET.HER THE .INDECISLVE AND
ILLITERATE IBAN LEADER WILL BECOME EXCITED ABOUT THE ISSUEo
So COMMENT a SARAWAK. NOW FI ND S. ITSELF I N AN .ISOLATED AND VIRTUALLY
POVIERLESS.POSITION VIS A VIS THE FEDERAL- GOt/.ERNMENT AND THE '
Hf~NDLTNG OF THE_ OFFSHORE OiL ISSUE, SUGGESTS. THE INTENTION OF
THE LATTER TO MAKE FULL USE 0~" THE SIT(JATIONo THIS INCIDENT. AS WE?L.L
AS THE RECENT INCREASE TN CUSTOMS DUTIES REFLECT .KUALA LUMPUR?S
FREQUENT DISREGARD FOR THE SPECIAL POSITION AND INTERESTS OF"
SARAWAKo THIS MOST RECENT DEVELOPMENT IS THE FIRST CASE IN .WHICH
KUALA LUMPUR HAS ATTEMPTED TO EXPLOIT THE ??EMERGENCY?? ANU THE
WEAK CARE~T_AKER GOVER LAMENT I N KUCHT NG I N ORDER TO BRING ABOUT A
PERMANENT CHANGE WHICH WILL AFFECT THE FUNDAMENTAL INTERESTS OF
SARAWAKa THE PRESENT ALLIANCE LEADERS I N THE STATE COULD
CONCEIVABLY MAKE A .DETERMINED STAND ON T-HIS ISSUEfl BUT MORE
LIKELY THEY WILL ACCEPT KUALA LUMPUR?S POSITION IN RETURN FOR
.MINOR CONCESSIONSo IF' SUS ANTI~MALAYSIA SENTIMENT WHICH IS .ALREADY
PREVELANT AMONG THE CHINESE AND EDUCATED NATIVES OF.SARADJAK WILL
GROWo AT THE SAME TIME 'THE NOC COULD BE FURTHER TEMPTED ,TO.?WIN
ACCEPTANCE BY SARAWAK OF OTHER NATIONAL .POLICIES SUCH AS THOSE' IN
EDUCATION AND LANGU`AGEo TAYLOR
B `T
Declassified in Part -Sanitized Copy Approved for Release 2012/11/19 :CIA-RDP08C01297R000300090003-9