“From Labuan, these pirates might certainly be intercepted by armed steamers far more conveniently and cheaply than from any other position that could be easily pointed out: indeed, the very existence of a British settlement would tend to the suppression of piracy.

“As a commercial depôt, Labuan would have considerable advantages by position; the native trade of the vicinity would of course resort to it, and so would that of the north coast of Borneo, of the Sooloo Islands, and of a considerable portion of the Spice Islands. Even for the trade of the Philippines and China, it would have the advantage over Singapore of a voyage by 700 miles shorter; a matter of most material consequence to native commerce.

“With all the countries of the neighborhood lying west of Labuan I presume that a communication across both monsoons might be maintained throughout the year. This would include a portion of the east coast of the Malay peninsula, Siam, and part of Cochin China.

“Labuan belongs to that portion of the coast of Borneo which is the rudest. The Borneons themselves are of the Malay nation, originally emigrants from Sumatra, and settled here for about six centuries. They are the most distant from their original seat of all the colonies which have sprung from this nation. The people from the interior differ from them in language, manners, and religion, and are divided into tribes as numerous and as rude as the Americans when first seen by Europeans.

“From such a people we are not to expect any valuable products of art or manufacture, for a British mercantile depôt. Pepper is, however, produced in considerable quantity, and the products of the forests are very various, as bees-wax, gum-benjamin, fine camphor, camphor oil, esculent swallowsʼ nests, canes and rattans, which used to form the staple articles of Borneon import into Singapore. The Borneon territory opposite to Labuan abounds also, I believe, in the palm which yields sago, and indeed the chief part of the manufactured article was thirty years ago brought from this country. The Chinese settlers would, no doubt, as in Singapore and Malacca, establish factories for its preparation according to the improved processes which they now practice at those places.

“There may be reason to expect, however, that the timber of the portion of Borneo referred to may be found of value for ship-building; for Mr. Dalrymple states that in his time, above seventy years ago, Chinese junks of 500 tons burden used to be built in the river of Borneo. As to timber well-suited for boats and house-building, it is hardly necessary to add that the northwest coast of Borneo, in common with almost every other part of the Archipelago, contains a supply amounting to superfluity.

“I may take this opportunity of stating, as evidence of the conveniency of this portion of Borneo for a commercial intercourse with China, that down to within the last half century a considerable number of Chinese junks were engaged in trading regularly with Borneo, and that trade ceased only when the native government became too bad and weak to afford it protection. Without the least doubt this trade would again spring up on the erection of the British flag at Labuan. Not a single Chinese junk had resorted to the Straits of Malacca before the establishment of Singapore, and their number is now, of one size or another, and exclusive of the junks of Siam and Cochin China, not less than 100.

“From the cultivation of the land I should not be disposed to expect anything beyond the production of fresh fruits and esculent vegetables, and when the land is cleared, of grass for pasture. The seas in this part of the world are prolific in fish of great variety and great excellence; and the Chinese settlers are found everywhere skillful and industrious in taking them.

“Some difficulty will, in the beginning, be experienced with respect to milk, butter, and fresh meat: this was the case at first in Singapore, but the difficulty has in a good measure been overcome. The countries of the Archipelago are generally not suited to pasture, and it is only in a few of them that the ox and buffalo are abundant. The sheep is so nowhere, and for the most part is wanting altogether; cattle, therefore, must be imported.

“As to corn, it will unquestionably be found far cheaper to import than to raise it. Rice will be the chief bread-corn, and will come in great abundance and cheapness from Siam and Cochin China. No country within 700 miles of Singapore is abundant in corn, and none is grown in the island: yet from the first establishment of the settlement to the present time, corn has been both cheap and abundant, there has been wonderfully little fluctuation, there are always stocks, and for many years a considerable exportation. A variety of pulses, vegetable oil, and culinary salt, will be derived from the same countries, as is now done in abundance by Singapore.