applicable) collected in Singapore on goods to be exported from or imported into Malaysia outside Singapore (to be paid into the Federal Consolidated Fund);
- (c) income tax collected in Singapore and attributable to income derived from the States of Malaya (to be paid into the Federal Consolidated Fund).
6. (2) 60 per cent, of income tax collected in the States of Malaya but attributable to income derived from Singapore shall be paid to the Singapore Government.
6. (3) Income tax attributable to income derived from Singapore and collected by an Agent outside Malaysia shall be paid into the separate fund referred to in paragraph 6(1) above.
6. (4) From the beginning of 1964 paragraphs 6(l)(c) and 6(2) shall apply as if references to the States of Malaya included references to the Borneo States.
6. (5) The provisions of Article 109 and Clauses (3), (3A) and (4) of Article 110 of the Federal Constitution shall not apply in relation to Singapore.
Federal Projects to Singapore. 7. The Singapore Government shall pay to the Federal Government Federal the cost of capital development of Federal projects in Singapore other than projects for defence and internal security. The two Governments shall agree together on projects to be covered by this paragraph which do not provide predominantly local services.
Financial Review. 8. The arrangements specified in paragraphs 6 and 7 above shall remain in operation until 31st December, 1964. The two Governments shall then review these arrangements and shall decide upon any amendments to be made to them in respect of the two year period commencing 1st January, 1965. There shall be a similar review in respect of each subsequent period of two years. In default of agreement between the two Governments, any issue in dispute shall be referred to an independent assessor appointed jointly by the two Governments. In default of agreement between the two Governments on the choice of an assessor, the Lord President of the Federal Court, after considering the views of both governments, shall appoint an assessor from among persons recommended by the International Bank for Reconstruction and Development as being persons enjoying an international reputation in finance. The recommendations of the assessor shall be binding on both governments. Such reviews shall have regard to all relevant factors.
Finance for Borneo Territories. 9. To assist development in the Borneo territories the Singapore Government shall make available to the Federal Government:
- (a) a 15-year loan of $100 million, bearing interest at current market rates in the Federation, subject to the proviso that the loan shall be free of interest during the first 5 years after drawing and that if, having regard to the economic growth
N* 10760
