Word: tunku
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Macy's v. Gimbels. Brunei's sudden defection came after weeks of cliffhanging negotiations between Malaya's shrewd Prime Minister Tunku (Prince) Abdul Rahman, father of the federation scheme, and Singapore's brilliant, mercurial Prime Minister Lee Kuan Yew. Though the Tunku had demanded that Singapore kick in 55% of its revenues to the federal treasury, Lee managed to whittle the figure down to 40%. But overplaying his hand, he then held out for 39% . So infuriated was the Tunku at this Macy's v. Gimbels tactic that he delivered an ultimatum to Singapore...
Sulking Sultan. When a breakthrough seemed near, Abdul Rahman flew to London, sat in his hotel suite waiting for the signing ceremony. When a last obstacle appeared, Sandys persuaded Lee to iron it out privately with the Tunku. The final agreement compromised on financial issues. Singapore will loan money to the Borneo territories rather than give it outright, and a federation common market will gradually replace Singapore's freeport status...
Brunei's withdrawal only slightly jeopardizes this arrangement. Brunei's rich, reactionary Sultan is mainly sulking over Abdul Rahman's apathy toward his ambition to play a big ceremonial role in the new Malaysia. But both the Sultan and the Tunku privately admit their readiness to renew negotiations. Optimistically, the Tunku announced: "This family has been nicely settled. There is going to be a happy Malaysia...
...grouping would loosely join Indonesia and the Philippines to Tunku Abdul Rahman's Federation of Malaysia (Malaya, Singapore, North Borneo, Sarawak and Brunei) to be established Aug. 31. The Philippines claim a part of North Borneo as its own but agreed amicably to postpone settlement of the issue. Indonesia's President Sukarno, who had condemned the Malaysia Federation as an imperialist plot, apparently realized that since he can't stop it, he might as well try to join...
Over the past few months, Sukarno has desperately tried to block the formation of the Tunku's Malaysian Federation of Malaya, Singapore, Sarawak, Brunei and North Borneo, which would successfully contain his expansionist ambitions. Indonesia has threatened Malaya with force, ranted that the Tunku was "round the bend." But at a surprise meeting in Tokyo last week, Sukarno and Abdul Rahman embraced each other as if they had been exchanging posies instead of brickbats...