“In order to extend our commerce in these seas generally, and more particularly on the N.W. coast of Borneo, it is requisite, 1st, that piracy be suppressed; 2dly, that the native governments be settled, so as to afford protection to the poorer and producing classes; and, 3dly, that our knowledge of the interior should be extended, and our intercourse with the various tribes more frequent.

“That our commerce may be largely extended is so clear that I shall not stop to detail the productions of the island of Borneo, as it will suffice here to state generally that all authorities agree in representing it as one of the richest portions of the globe, and in climate, soil, and mineral and vegetable productions, inferior to no portion of the same extent.

“If these opinions be true—and from my experience I believe them to be so—it follows that the materials for an extensive and extended trade exist, and only require development, while a numerous and industrious, though wild population, which inhabits the interior, is debarred from all intercourse with Europeans from the badness of Malay government.

“On the first requisite for the development of commerce I need add nothing further, as it is a duty incumbent on all governments to eradicate piracy at any cost; and in the present case it would not be found a difficult or tedious task.

“A post like Labuan or Balambangan would, beyond doubt, give an impetus to trade, merely from the freedom from all restrictions, and the absence of all exactions, which the natives would enjoy; and (piracy being checked) countries which now lie fallow would, from their proximity, be induced to bring their produce into market.

“This limited extension is, however, of little moment when compared with the results which must attend our exerting a beneficial influence over the native governments for the purposes of affording protection to the poorer classes, insuring safety to the trader, and opening a field for the planter or the miner.

“The slightest acquaintance with the northwest coast of Borneo would convince any observer of the ease with which these objects might be effected; for the native government, being in a state of decadence, requires protection, and would willingly act justly toward traders and capitalists, and encourage their enterprises, in order to continue on friendly terms with any European power located in their vicinity. The numerous rivers on the coast, with their local rulers, are harassed by the demands of every petty Pangeran; and while the sovereign is defrauded of his revenue, which the people would cheerfully pay, and his territory ruined, this host of useless retainers (acting always in his name) gain but very slight personal profits to counterbalance all the mischief they do.

“The principal feature is the weakness of the governments, both of the capital and its dependencies; and in consequence of this weakness there is a strong desire for European protection, for European enterprise, and for any change effected by Europeans. Supposing Labuan to be taken as a naval post, I consider that European capital might with safety be employed in Bruni.

“In the rivers contiguous to Sarāwak the presence of Europeans would be hailed with joy, not only by the Dyaks, but by the Malays; and subsequently it would depend on their own conduct to what degree they retained the good-will of the natives; but with ordinary conciliation, and a decent moral restraint on their actions, I feel assured that their persons and property would be safe, and no obstruction offered to fair trade or to mining operations.

“Supposing, as I have before said, the occupation of Labuan by the English, our influence over the government of Bruni would be complete; and one of our principal objects would be to maintain this ascendency, as a means of extending our trade.