During the Merdeka Talks of 1956, the year before Malaya's independence, the British agreed to grant Singapore self-government over domestic issues, while the British retained control of finance and the military. This seemed to satisfy Marshall initially, but the negotiation later broke down when the British refused to turn over internal security to the local government. The British felt that Marshall was not doing enough to counter the threats of the communist insurgency and the Malayan Communist Party (MCP) which had sparked the Malayan Emergency. The march towards independence was stalled and Marshall resigned in 1956 making good on his earlier pledge that he would step down in the case of failure.
