The grant from the Sultan of Sulu bears date the 22nd January, 1878, and on the 22nd July of the same year he signed a treaty, or act of re-submission to Spain. The Spanish Government claimed that, by previous treaties with Sulu, the suzerainty of Spain over Sulu and its dependencies in Borneo had been recognised and that consequently the grant to Mr. Dent was void. The British Government did not, however, fall in with this view, and in the early part of 1879, being then Acting Consul-General in Borneo, I was despatched to Sulu and to different points in North Borneo to publish, on behalf of our Government, a protest against the claim of Spain to any portion of the country. In March, 1885, a protocol was signed by which, in return for the recognition by England and Germany of Spanish sovereignty throughout the Archipelago of Sulu, Spain renounced all claims of sovereignty over territories on the Continent of Borneo which had belonged to the Sultan of Sulu, including the islands of Balambangan, Banguey and Malawali, as well as all those comprised within a zone of three maritime leagues from the coast.

Holland also strenuously objected to the cessions and to their recognition, on the ground that the general tenor of the Treaty of London of 1824 shews that a mixed occupation by England and the Netherlands of any island in the Indian Archipelago ought to be avoided.

It is impossible to discover anything in the treaty which bears out this contention. Borneo itself is not mentioned by name in the document, and the following clauses are the only ones regulating the future establishment of new Settlements in the Eastern Seas by either Power:—"Article 6. It is agreed that orders shall be given by the two Governments to their Officers and Agents in the East not to form any new Settlements on any of the islands in the Eastern Seas, without previous authority from their respective Governments in Europe. Art. 12. His Britannic Majesty, however, engages, that no British Establishment shall be made on the Carimon islands or on the islands of Battam, Bintang, Lingin, or on any of the other islands South of the Straits of Singapore, nor any treaty concluded by British authority with the chiefs of those islands." Without doubt, if Holland in 1824 had been desirous of prohibiting any British Settlement in the island of Borneo, such prohibition would have been expressed in this treaty. True, perhaps half of this great island is situated South of the Straits of Singapore, but the island cannot therefore be correctly said to lie to the South of the Straits and, at any rate, such a business-like nation as the Dutch would have noticed a weak point here and have included Borneo in the list with Battam and the other islands enumerated. Such was the view taken by Mr. Gladstone's Cabinet, and Lord Granville informed the Dutch Minister in 1882 that the XIIth Article of the Treaty could not be taken to apply to Borneo, and "that as a a matter of international right they would have no ground to object even to the absolute annexation of North Borneo by Great Britain," and, moreover, as pointed out by his Lordship, the British had already a settlement in Borneo, namely the island of Labuan, ceded by the Sultan of Brunai in 1845 and confirmed by him in the Treaty of 1847. The case of Raja Brooke in Sarawak was also practically that of a British Settlement in Borneo.

Lord Granville closed the discussion by stating that the grant of the Charter does not in any way imply the assumption of sovereign rights in North Borneo, i.e., on the part of the British Government.

There the matter rested, but now that the Government is proposing[17] to include British North Borneo, Brunai and Sarawak under a formal "British Protectorate," the Netherlands Government is again raising objections, which they must be perfectly aware are groundless. It will be noted that the Dutch do not lay any claim to North Borneo themselves, having always recognized it as pertaining, with the Sulu Archipelago, to the Spanish Crown. It is only to the presence of the British Government in North Borneo that any objection is raised. In a "Resolution" of the Minister of State, Governor-General of Netherlands India, dated 28th February, 1846, occurs the following:—"The parts of Borneo on which the Netherlands does not exercise any influence are:—

a. The States of the Sultan of Brunai or Borneo Proper;

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b. The State of the Sultan of the Sulu Islands, having for boundaries on the West, the River Kimanis, the North and North-East Coasts as far as 3° N.L., where it is bounded by the River Atas, forming the extreme frontier towards the North with the State of Berow dependant on the Netherlands.

c. All the islands of the Northern Coasts of Borneo."

Knowing this, Mr. Alfred Dent put the limit of his cession from Sulu at the Sibuku River, the South bank of which is in N. Lat. 4° 5'; but towards the end of 1879, that is, long after the date of the cession, the Dutch hoisted their flag at Batu Tinagat in N. Lat. 4° 19', thereby claiming the Sibuko and other rivers ceded by the Sultan of Sulu to the British Company. The dispute is still under consideration by our Foreign Office, but in September, 1883, in order to practically assert the Company's claims, I, as their Governor, had a very pleasant trip in a very small steam launch and steaming at full speed past two Dutch gun-boats at anchor, landed at the South bank of the Sibuko, temporarily hoisted the North Borneo flag, fired a feu-de-joie, blazed a tree, and returning, exchanged visits with the Dutch gun-boats, and entertained the Dutch Controlleur at dinner. Having carefully given the Commander of one of the gun-boats the exact bearings of the blazed tree, he proceeded in hot haste to the spot, and, I believe, exterminated the said tree. The Dutch Government complained of our having violated Netherlands territory, and matters then resumed their usual course, the Dutch station at Batu Tinagat, or rather at the Tawas River, being maintained unto this day.