DOCUMENT I S THE PROPERTY OP H I S BRITANNIC MAJESTY'S GOVERNMENT SJ3 C R 5 T COPY NO. 27TH JANUARY, 1947 CABINET STATEMENT TO BE I S S U E D ON CONCLUSION OP THE BURMA CONVERSATIONS Note by the Secretary I a 1 1 a c h , " f o r c o n s i c i e r a t i o n "by t h e . C a b i n e t ' a t a a e e t i n g t o b e h e l d on" M o n d a y , 2 7 t 3 i J a n u a r y , a t 11 a . m . t h e " t e x t of a S t a t e m e n t w h i c h i t i s p r o p o s e d t o i s s u e on the c o n c l u s i o n o f t h e C o n v e r s a t i o n s w i t h t h e D e l e g a t i o n of t h e B u r m a E x e c u t i v e C o u n c i l . (Signed) it Office, SJlV FH JANUARY, 1947 NORMAN BROOK H i s M a j e s t y ' s G o v e r n m e n t a n d t h e D e l e g a t i o n of t h e Burma E x e c u t i v e C o u n c i l h a v i n g d i s c u s s e d a l l t h e m a t t e r s a f f e c t i n g the f u t u r e r e l a t i o n s Between Great B r i t a i n and Burma w h i c h w e r e r a i s e d h y t h e D e l e g a t i o n h a v e r e a c h e d t h e f o l l o w i n g a g r e e d , c o n c l u s i o n s a s t o t h e m e t h o d s by w h i c h t h e p e o p l e of Burma may a c h i e v e t h e i r i n d e p e n d e n c e , e i t h e r w i t h i n or w i t h o u t t h e Commonwealth, as soon as p o s s i b l e : ­ 1, The C o n s t i t u e n t Assembly I n o r d e r t h a t t h e p e o p l e o f Burma may d e c i d e o n t h e f u t u r e c o n s t i t u t i o n of t h e i r c o u n t r y as soon a s p o s s i b l e a C o n s t i t u e n t Assembly s h a l l be elected, i n s t e a d of a L e g i s l a t u r e u n d e r t h e A c t of 1 9 3 5 . For t h i s purpose the e l e c t o r a l m a c h i n e r y of t h e 1935 Act w i l l b e u s e d . Elections will take place in April for the general n o n - c o m m u n a l , t h e K a r e n , and. t h e A n g l o - B u r m a n c o n s t i t u e n c i e s a s c o n s t i t u t e d u n d e r t h e A c t of 1 9 3 5 a n d f o r e a c h c o n s t i t u e n c y two members s h a l l be r e t u r n e d . Any Burma n a t i o n a l s ( a s d e f i n e d i n A n n e x A) r e g i s t e r e d i n a g e n e r a l c o n s t i t u e n c y o t h e r t h a n one of t h o s e m e n t i o n e d a b o v e s h a l l h e p l a c e d on t h e r e g i s t e r of a g e n e r a l non-communal constituency. 2. Transitional form of Government D u r i n g t h e p e r i o d of t r a n s i t i o n t h e G o v e r n m e n t of Burma w i l l h o c a r r i e d on a s a t p r e s e n t u n d e r t h e spe c i a l p o w e r s of S e c t i o n 139 ,of t h e A c t of 1 9 3 5 a n d t h e TemporaryP r o v i s i o n s A c t of 1945 t o g e t h e r w i t h any O r d e r s i n C o u n c i l made t h e r e u n d e r . If any e x c e p t i o n a l c i r c u m s t a n c e s a r i s e which, i n t h e o p i n i o n of. e i t h e r G o v e r n m e n t r e q u i r e s p e c i a l t r e a t m e n t , H i s M a j e s t y s Government w i l l c o n s i d e r what, i f any, alteration can be made t o meet s u c h c i r c u m s t a n c e s . 1 5. Interim Leadslature During t h e i n t e r i m p e r i o d t h e r e w i l l he a L e g i s l a t i v e Council as p r o v i d e d by the Act of 1945. Power w i l l be sought hy His M a j e s t y ' s Government by Order i n C o u n c i l t o i n c r e a s e t h e n u m b e r s a u t h o r i s e d f r o m 50 t o 1 0 0 . As s o o n a s t h e e l e c t i o n s t o t h e C o n s t i t u e n t A s s e m b l y are completed the Governor w i l l nominate a L e g i s l a t i v e C o u n c i l " of 1 0 0 . I t w i l l b e d r a w n from among t h o s e e l e c t e d t o t h e C o n s t i t u e n t A s s e m b l y w i t h t h e i n c l u s i o n of a s m a l l number of p e r s o n s t o r e p r e s e n t t h e n o n - i n d i g e n o u s m i n o r i t i e s . The p o w e r s o f t h e L e g i s l a t i v e C o u n c i l " w i l l h e i d e n t i c a l with those p o s s e s s e d hy the r e c e n t l y d i s s o l v e d L e g i s l a t i v e C o u n c i l of 5 0 . 4. the Interim Government The E x e c u t i v e C o u n c i l of t h e I n t e r i m Government of Burma. Governor will constitute While i t i s n o t p o s s i b l e t o a l t e r ' t h e l e g a l p o w e r s of t h e E x e c u t i v e C o u n c i l ' o r of t h e G o v e r n o r w h i c h m u s t c o n t i n u e within the framework set out i n paragraph 2 above, the I n t e r i m G o v e r n m e n t w i l l b e c o n d u c t e d g e n e r a l l y i n t h e some manner as t h e I n t e r i m Government of I n d i a a t , t h e p r e s e n t time, and in p a r t i c u l a r ; - ­ ( a ) T h e E x e c u t i v e C o u n c i l w i l l b e t r e a t e d w i t h t h e s a m e c l o s e c o n s u l t a t i o n and consideration, as a Dominion Government a n d , w i l l h a v e the. g r e a t e s t p o s s i b l e freedom i n t h e e x e r c i s e of t h e d a y - t o - d a y a d m i n i s t r a t i o n of t h e . c o u n t r y . The C o n v e n t i o n e x e r c i s e d d u r i n g t h e c u r r e n c y of t h e Act of 1935 as t o t h e Governor p r e s i d i n g a t t h e m e e t i n g s of t h e C o u n c i l of M i n i s t e r s s h a l l be continued in r e l a t i o n to the Executive Council. ( b ) H i s M a j e s t y ' s G o v e r n m e n t a g r e e i n p r i n c i p l e t h a t t h e G o v e r n m e n t o f Burma, s h a l l h a v e f i n a n c i a l autonomy ( s e e Annex B ) . ( c ) M a t t e r s c o n c e r n i n g D e f e n c e a n d E x t e r n a l A f f a i r s ' w i l l be brought before the Executive Council which w i l l be f u l l y a s s o c i a t e d with the disposal of b u s i n e s s i n such m a t t e r s . ( d ) T h e G o v e r n o r v r i . l l d e p u t e t o h i s C o u n s e l l o r for Defence and E x t e r n a l A f f a i r s the day-to-day a Rimini s t r a t i o n o f t h o s e s u b j e c t s . Subject only to the l i m i t a t i o n s inherent in t h e . l e g a l p o s i t i o n the Executive Council w i l l be at f u l l l i b e r t y to r a i s e , c o n s i d . c r , d i s c u s s and d e c i d e on any maatters a r i s i n g in t h e f i e l d of p o l i c y and a d m i n i s t r a t i o n . 5* Ext e r n a l AffaIrs There s h a l l be a p p o i n t e d f o r t h w i t h a High Commissioner f o r Burma t o r e p r e s e n t the Burmese Government i n London. H i s M a j e s t y ' s G o v e r n m e n t w i l l r e q u e s t t h e G o v e r n m e n t s of t h e c o u n t r i e s w i t h w h i c h Burma w i s h e s t o e x c h a n g e d i p l o m a t i c r e p r e s e n t a t i v e s t o a g r e e t o such an e x c h a n g e . 6. Membership of International Organisations His M a j e s t y ' s Government w i l l lend t h e i r f u l l support t o a.ny a p p l i c a t i o n b y B u r m a f o r m e m b e r s h i p o f t h e U n i t e d Nations O r g a n i s a t i o n as soon as Burma's constitutional p o s i t i o n makes i t p o s s i b l e f o r such an a p p l i c a t i o n t o be entertained. In t h e meantime His M a j e s t y ' s Government w i l l e x p l o r e w i t h t h e S e c r e t a r y - G e n e r a l how f a r i t is p o s s i b l e f o r Burma t o b e r e p r e s e n t e d a t any m e e t i n g s of, or u n d e r t h e a u s p i c e s of, t h e U n i t e d N a t i o n s O r g a n i s a t i o n . They w i l l a l s o a p p r o a c h any o t h e r i n t e r n a t i o n a l b o d i e s which t h e G o v e r n m e n t o f Burma may d e s i r e , w i t h a v i e w t o a s c e r t a i n i n g w h e t h e r Burma c a n b e a s s o c i a t e d w i t h t h e work of s u c h b o d i e s a s a member n a t i o n o r o t h e r w i s e . - Q O — ( a ) I n accordance with forces stationed, ultimate control settled practice all British i n Burma w i l l r e m a i n u n d e r t h e of H i s M a j e s t y ' s Government. ( b ) A l l B u r m e s e f o r c e s w i l l f o r t h w i t h c o m e u n d e r c o n t r o l of t h e Government o f Burma. the ( c ) H i s M a * j e s t y ' s G o v e r n m e n t h a v e a g r e e d i n p r i n c i p l e , t h a t t h e 0 . 0 . C i n Burma s h a l l become s u h o r d i n a t e t o t h e G o v e r n o r and Government of Burma a t t h e e a r l i e s t p r a c t i c a b l e moment, b u t for. the p r e s e n t , u n t i l t h e l i q u i d a t i o n of i n t e r - A l l i e d a r r a n g e m e n t s o f Command: w h i c h c o v e r m a n y c o u n t r i e s ; , t h e G . 0 . 0 . i n Burma w i l l r e m a i n u n d e r S , B . A . L . I h During t h i s period, t h e r e w i l l be course he c l o s e c o l l a b o r a t i o n Between the Governor, t h e Government of Burma, and t h e authorities'concerned. A r r a n g e m e n t s on t h e same l i n e s w i l l of t h e N a v a l and A i r S e r v i c e s . apply in respect ( d ) T h e q u e s t i o n o f a s s i s t a n c e i n B u i l d i n g u p t h e D e f e n c e F o r c e s of Burma w i l l h e a m a t t e r f o r d i s c u s s i o n B e t w e e n t h e two G o v e r n m e n t s . ; H i s M a j e s t y ' s G o v e r n m e n t w i s h t o d o t h e i r lynhmost t o h e l p t h e Government of Burma I n t h i s m a t t e r , h u t m u s t have r e g a r d to t h e i r a l r e a d y heavy commitments i n other -carts of the world. ( e ) T h e q u e s t i o n o f t h e r e t e n t i o n o r u s e o f a n y B r i t i s h F o r c e s i n Burma a f t e r t h e coming" i n t o o p e r a t i o n of t h e new C o n s t i t u t i o n , w i l l h e a m a t t e r f o r agreement Between His M a j e s t y ' s G o v e r n m e n t a n d t h e G o v e r n m e n t of Burma. 8 * Fr ont i er Ar ea s I t i s the a g r e e d o b j e c t i v e of b o t h His M a j e s t y ' s Government a n d t h e Burmese D e l e g a t e s t o a c h i e v e t h e early­ u n i f i c a t i o n of the F r o n t i e r A r e a s a n d Burma w i t h t h e f r e e consent of t h e i n h a b i t a n t s of t h o s e a r e a s . In the meantime, i t i s agreed, t h a t t h e p e o p l e of the F r o n t i e r A r e a s s h o u l d , in r e s p e c t o f s u b j e c t s o f common i n t e r e s t , b e c l o s e l y associated with, t h e G o v e r n m e n t o f B u r m a i n a m a n n e r a c c e p t a b l e t o ' b o t h parties. For these purposes i t has been a g r e e d : ­ ( a ) t h e r e s h a l l B e f r e e i n t e r c o u r s e . b e t w e e n p e o p l e s of t h e F r o n t i e r A r e a s a n d t h e Burma w i t h o u t h i n d r a n c e . the people of ( b ) t h e l e a d e r s a n d r e p r e s e n t a t i v e s o f t h e p e o p l e s o f the F r o n t i e r Areas s h a l l be asked, e i t h e r at the Pahglong Conference to he held at the beginning of n e x t month or a t a s p e c i a l Conference to he ' c o n v e n e d , f o r t h e p u r p o s e , t o e x p r e s s t h e i r v i e w s u p o n t h e f o r m of a s s o c i a t i o n w i t h t h e Government of Burma which t h e y c o n s i d e r a c c e p t a b l e during the transition period; whether ( i ) "by t h e a p p o i n t m e n t o f r e p r e s e n t a t i v e s to advise a f f a i r s and. t o h a v e c l c i s e Executivej or o a small group of F r o n t i e r t h e G o v e r n o r on F r o n t i e r l i a i s o n with the ( i i ) by t h e a p p o i n t m e n t of one F r o n t i e r Area r e p r e s e n t a t i v e as Executive Councillor in charge of F r o n t i e r a f f a i r s ; or ( i i i ) by some o t h e r method. ( c ) A f t e r t h e P a n g l o n g m e e t i n g , o r t h e s p e c i a l c o n f e r e n c e , His Majesty's Government and t h e Government of Burma w i l l ' a g r e e u p o n t h e b e s t m e t h o d of a d v a n c i n g " t h e i r common a i m s i n a c c o r d a n c e w i t h t h e e x p r e s s e d v i e w s of t h e p e o p l e s of t h e F r o n t i e r Areas. ( d ) A C o m m i t t e e o f E n q u i r y s h a l l h e s e t u p f o r t h w i t h a s t o t h e b e s t method of a s s o c i a . t i n g the F r o n t i e r p e o p l e s w i t h t h e w o r k i n g o u t of t h e new C o n s t i t u t i o n f o r Burma;. Such Committee w i l l consist of e q u a l n u m b e r s o f p e r s o n s from M i n i s t e r i a l Burma n o m i n a t e d b y t h e E x e c u t i v e C o u n c i l and of p e r s o n s from t h e F r o n t i e r A r e a s n o m i n a t e d by t h e Governor a f t e r c o n s u l t a t i o n w i t h t h e l e a d e r s of t h o s e a r e a s , w i t h a n e u t r a l C h a i r m a n ' f r o m o u t s i d e Burma selected by agreement. Such Committee s h a l l be a s k e d t o r e p o r t t o t h e G o v e r n m e n t of Burma a n d H i s M a j e s t y ' s Government b e f o r e t h e summoning by the Constituent Assembly. 9, Finance A number of f i n a n c i a l q u e s t i o n s have b e e n c o n s i d e r e d a n d an a g r e e m e n t h a s b e e n a r r i v e d a t a s t o how t h e s e m a t t e r s should be d e a l t w i t h , w h i c h i s s e t o u t i n Annex B a t t a c h e d hereto. 1 0 * Other Matters A nujnber o f o t h e r q u e s t i o n s w i l l a r i s e f o r settlement between H i s M a j e s t y ' s Government a n d t h e Government of Burma c o n n e c t e d w i t h t h e c h a n g e i n t h e s t a t u s o f B u r m a , , These w i l l b e t a k e n u p a s t h e y a r i s e a n d w i l l h e d e a l t with i n t h e same f r i e n d l y a n d c o - o p e r a t i v e s p i r i t t h a t h a s marked t h e p r e s e n t discussions. Both His M a j e s t y ' s Government and t h e D e l e g a t e s of t h e B u r m a E x e c u t i v e C o u n c i l a r e c o n v i n c e d t h a t b y a c o n t i n u a t i o n of t h e - p r e s e n t m e t h o d of c o n s u l t a t i o n and co-operation smooth, a n d r a p i d p r o g r e s s c a n b e made t o w a r d s t h e i r common o b j e c t i v e o f a f r e e a n d i n d e p e n d e n t B u r m a , v/hether w i t h i n o r w i t h o u t , t h e B r i t i s h Commonwealth of N a t i o n s , and t h e y h a v e , t h e r e f o r e , a g r e e d t o c o - o p e r a t e i n the s e t t l e m e n t o f a l l f u t u r e m a t t e r s w h i c h s h a l l a r i s e b e t w e e n t h e m t l i r o u g h t h e t r a n s i t i o n a l -period until B u r m a ' s new C o n s t i t u t i o n c o m e s i n t o operation. ANNEX A A Burma N a t i o n a l i s d e f i n e d f o r t h e p u r p o s e s of e l i g i b i l i t y t o v o t e a n d t o s t a n d a s a c a n d i d a t e a t the forthcoming e l e c t i o n s as a B r i t i s h subject or the s u b j e c t o f an I n d i a n S t a t e who was b o r n i n Burma a n d r e s i d e d t h e r e f o r a t o t a l p e r i o d of n o t l o s s t h a n e i g h t years in the ten years, immediately p r e c e d i n g e i t h e r 1 s t J a n u a r y , 194-2 o r 1 s t J a n u a r y , 1947. ANNEXES FINANCE. 1. that 2. they she she the His M a j e s t y ' s Government have agreed in Burma s h o u l d h a v e f i n a n c i a l autonomy. principle His M a j e s t y ' s G o v e r n m e n t have u n d e r t a k e n t o do a l l can to s e c u r e her e f f e c t i v e m e m b e r s h i p , a s soon as i s i n a p o s i t i o n t o make t h e a p p l i c a t i o n and s h o u l d so d e s i r e , of t h e I n t e r n a t i o n a l M o n e t a r y F u n d and I n t e r n a t i o n a l Bank. 3. Burma Las r e c e i v e d a s a n i n t e r e s t - f r e e loan a p p r o x i m a t e l y .go m i l l i o n s ( n e t ) f o r t h e B u r m a f i n a n c i a l y e a r O c t o b e r 1945 t o S e p t e m b e r 1946 a n d i t . h a s a l r e a d y b e e n a g r e e d that, f o r t h e f i n a n c i a l y e a r O c t o b e r 1946 to S e p t e m b e r 1947s s h e s h o u l d r e c e i v e a f u r t h e r £7.5 m i l l i o n (net). H i s M a j e s t y ' s G o v e r n m e n t h a v e now a g r e e d t h a t t h e y w i l l make a f u r t h e r c o n t r i b u t i o n t o w a r d s t h i s year's d e f i c i t on t h e - O r d i n a r y B u d g e t , t a k i n g a c c o u n t o f a n y contribution for the Frontier Areas. 4. As r e g a r d s t h e P r o j e c t s B u d g e t ( w h i c h d e a l s m a i n l y with the governmental t r a d i n g a c t i v i t i e s ) His M a j e s t y ' s G o v e r n m e n t w i l l e x a m i n e t h e p o s s i b i l i t y of a c r e d i t w i t h a d e f i n i t e c e i l i n g , w i t h o u t United. Kingdom c o n t r o l , but w i t h t h e f u l l e s t e x c h a n g e of information. 5. His M a j e s t y ' s Government a r e p r e p a r e d to a g r e e in p r i n c i p l e t o t h e p o s s i b i l i t y of c o n v e r t i n g a p a r t of any I n t e r e s t - f r e e l o a n i n t o an o u t r i g h t g r a n t i n t h e l i g h t of t h e r e s u l t s of t h e f u r t h e r j o i n t s t u d y of t h e f a c t s of the financial situation (see next paragraph). -6. I t i s a g r e e d t h a t t h e r e s h o u l d be a f u r t h e r joint s t u d y i n Burma o f t h e f a c t s o f t h e f i n a n c i a l situation, w i t h o u t c o m m i t m e n t on e i t h e r s i d e . Should further' f i n a n c i a l a s s i s t a n c e be needed, f r o m H i s M a j e s t y ' s Government beyond t h a t a g r e e d i n p a r a g r a p h s 3 and 4 of t h i s Annex, t h i s a s s i s t a n c e , i f g i v e n , w i l l be s u b j e c t t o ouch c o n d i t i o n s a s may be a g r e e d u p o n .