[See [page 91].

The East India Company made many attempts to establish factories in Borneo and the neighbouring islands; but all came to nothing, so that the early history does not concern us here. One trace of former conditions remained in the nineteenth century, in the claims of Holland in the south of the island and of Spain in the north. These claims were revived at the time of our occupation and were not finally settled until the late eighties of the nineteenth century. The modern history of the region begins with the acquisition, by an American syndicate, of certain concessions in the north from the Sultans of Brunei and Sulu. Their rights were taken over ultimately by a British company which obtained a charter from the Crown, in 1881, under the title of the British North Borneo Company. The charter was a revival of the old plan for opening up new countries without the direct intervention or responsibility of the home Government. It was followed by other charters for African companies; but of these only one survives, and the North Borneo Company is at the present day the oldest remaining representative of the system. So we have a large piece of territory under British Protection but controlled by a private company. The Company does not trade, but confines itself to administration, and is supported like any other Government by duties and taxes of various kinds. It is largely independent, though the British Government can interfere if necessary in vital matters.

Malaya and Borneo are tropical estates and can only be developed by special methods. In dealing with these estates we have given considerable space to the subject of administration, since without order and security it is impossible to utilize those natural resources with which our geography is concerned. These resources include the minerals and the whole range of tropical products, together with the available human material, the Chinese or Indian labourer and the native Malay. Foreign capital, British or Chinese, under British direction provides the driving force for progress. In the different parts of the Malay Peninsula and in North Borneo we have various types of administration and various stages of progress; but over the whole area there is a general similarity of conditions which marks it off both from the Indian Ocean and from the Chinese group which is the object of our next visit.


[LECTURE VI]
THE CHINESE STATIONS

Fifteen hundred miles away from Singapore, guarding the northern outlet of the China Sea as Singapore guards the southern, commanding also the approach to the great commercial city of Canton and to the whole coastline of 1 southeastern China, lies the island harbour of Hongkong, the last fortified outpost of British power in this region of the world. The island is only one of a large group which fringes the coast round the mouth of the Canton river, and its area is less than thirty square miles, 2 or nearly the same as that of Labuan. It consists of a long irregular granite ridge, falling steeply to the sea, with deep-cut inlets on its southern side. To the north is the mainland, with long hill ranges ending in a mass of rocky peninsulas and headlands. Between the island and the mainland lies the narrow roadstead or harbour of Victoria.

As we round the west point of the island, the Peak is on our right, and below it are warehouses, wharves and piers, spread out for three miles along the water front. Behind is the crowded native quarter, and in the background the city rises in tier above tier of terraced houses up the lower slopes of the ridge. On the summit, too, we can see many 3 houses scattered about. Here is a panoramic view of the west end of the city, taken from the harbour. Notice the fine pile of offices and the European Club in the foreground 4 of the picture. Our next view, further east, shows the Admiralty dockyard, which makes an ugly break in the line of the sea front. The white band on the hill behind is the cable railway running up to the Peak. We pass merchant steamers, warships, and crowds of junks at anchor, and all about us the small native boats or sampans are plying busily to and fro. Opposite the middle of the town, where the low peninsula of Kaulun juts out from the mainland, the harbour narrows to rather more than half a mile, and here is the ferry. On our left as we enter is Stonecutter Island, a long bare rock heavily fortified and guarding the passage; beyond it to the north the view is everywhere 5 closed in by the mountain ridges of the mainland. Here are two views from the hill, showing the west end of 6 the harbour, with Stonecutter Island and Kaulun; a third shows the eastern passage, known as the Lai-i-mun, by 7 which we shall leave after our visit.

Hongkong Island.