“The mines of antimony are 300 miles to the southwest of Labuan, and those of gold on the west and the south coasts; and I am not aware that any mineral wealth has been discovered in the portion of Borneo immediately connected with Labuan, except that of coal—far more important and valuable, indeed, than gold or antimony. The existence of a coal-field has been traced from Labuan to the islands of Kayn-arang—which words, in fact, mean coal island—to the island of Chermin, and from thence to the mainland over a distance of thirty miles. With respect to the coal of Labuan itself, I find no distinct statement beyond the simple fact of the existence of the mineral; but the coal of the two islands in the river, and of the main, is proved to be—from analysis and trial in steam-navigation—superior to nearly all the coal which India has hitherto yielded, and equal to some of our best English coals. This is the more remarkable, as it is known that most surface-minerals, and especially coals, are inferior to the portions of the same veins or beds more deep-seated.
“Nearly as early as the British flag is erected, and, at all events, as soon as it is permanently known to be so, there may be reckoned upon with certainty a large influx of settlers. The best and most numerous of these will be the Chinese. They were settled on the Borneo river when the Borneo government, never very good, or otherwise than comparatively violent and disorderly, was most endurable.
“Borneo is, of all the great islands of the western portion of the Archipelago, the nearest to China, and Labuan and its neighborhood the nearest point of this island. The distance of Hong Kong is about 1000 miles, and that of the island of Hainan, a great place for emigration, not above 800; distances which to the Chinese junks—fast sailers before the strong and favorable winds of the monsoons—do not make voyages exceeding four or five days. The coasts of the provinces of Canton and Fokien have hitherto been the great hives from which Chinese emigration has proceeded; and even Fokien is not above 1400 miles from Labuan, a voyage of seven or eight days. Chinese trade and immigration will come together. The northwest coast of Borneo produces an unusual supply of those raw articles for which there is always a demand in the markets of China; and Labuan, it may be reckoned upon with certainty, will soon become the seat of a larger trade with China than the river of Borneo ever possessed.
“I by no means anticipate the same amount of rapid advance in population, commerce, or financial resources for Labuan, that has distinguished the history of Singapore, a far more centrical position for general commerce; still I think its prospect of success undoubted; while it will have some advantages which Singapore cannot, from its nature, possess. Its coal-mines, and the command of the coal-fields on the river of Borneo, are the most remarkable of these; and its superiority as a post-office[2] station necessarily follows. Then it is far more convenient as a port of refuge; and, as far as our present knowledge will enable us to judge, infinitely more valuable for military purposes, more especially for affording protection to the commerce which passes through the Chinese Sea, amounting at present to probably not less than 300,000 tons of shipping, carrying cargoes certainly not under the value of 15,000,000l. sterling.
“Labuan ought, like Singapore, to be a free port; and assuredly will not prosper if it is not. Its revenue should not be derived from customs, but, as in that settlement, from excise duties: upon the nature of these, as it is well known, it is unnecessary to enlarge. They covered during my time, near twenty years ago, and within five years of the establishment of the settlement, the whole charges of a small but sufficient garrison (100 Sepoys), and a moderate but competent civil establishment.
“The military and civil establishments have been greatly increased of late years; but the revenue, still in its nature the same, has kept pace with them. During my administration of Singapore, the municipal charges fell on the general fund; but they are at present amply provided for from a distinct source, chiefly an assessment on house-property.
“If the military and civil charges of Labuan are kept within moderate bounds, I make no doubt but that a similar excise revenue will be adequate to cover the charges of both, and that in peace at least the state need not be called on to make any disbursement on its account; while during a naval war, if the state make any expenditure, it will be fully compensated by the additional security which the settlement will afford to British commerce, and the annoyance it will cause to the enemy.
“As to the disposal of the land, always a difficult question in a new and unoccupied colony, the result of my own inquiries and personal experience lead me to offer it as my decided conviction that the most expedient plan—that which is least troublesome to the government, most satisfactory to the settler, and ultimately most conducive to the public prosperity—is to dispose of it for a term of years, that is, on long leases of 1000 years, or virtually in perpetuity; the object in this case of adopting the leasehold tenure being, by making the land a chattel interest, to get rid of the difficulties in the matter of inheritance and transfer, which, under the administration of English law, and in reference more particularly to the Asiatic people who will be the principal landowners, are incident to real property. Town allotments might be sold subject to a considerable quit-rent, but allotments in the country for one entirely nominal. Those of the latter description should be small, proportionate with the extent of the island, and the time and difficulty required in such a climate to clear the land, now overgrown for the most part with a stupendous forest of evergreen trees, and the wood of which is too abundant to be of any value, certainly for the most part not worth the land-carriage of a couple of furlongs.
“A charter for the administration of justice should be as nearly as possible contemporaneous with the cession. Great inconvenience has resulted in all our Eastern settlements of the same nature with that speculated on at Labuan, from the want of all legal provision for the administration of justice; and remembering this, it ought to be guarded against in the case of Labuan.
“Whether in preparing for the establishment of a British settlement on the coast of Borneo, or in actually making one, her majestyʼs ministers, I am satisfied, will advert to the merits and peculiar qualifications of Mr. Brooke. That gentleman is unknown to me, except by his acts and writings; but, judging by these, I consider him as possessing all the qualities which have distinguished the successful founders of new colonies; intrepidity, firmness, and enthusiasm, with the art of governing and leading the masses. He possesses some, moreover, which have not always belonged to such men, however otherwise distinguished; a knowledge of the language, manners, customs, and institutions of the natives by whom the colony is to be surrounded; with benevolence and an independent fortune, things still more unusual with the projectors of colonies. Toward the formation of a new colony, indeed, the available services of such a man, presuming they are available, may be considered a piece of good fortune.”