The value of the general exports from the territory is increasing every year, having been $145,444 in 1881 and $525,879 in 1888. With the exception of tobacco and pepper, the list is almost entirely made up of the natural raw products of the land and sea—such as bees-wax, camphor, damar, gutta percha, the sap of a large forest tree destroyed in the process of collection of gutta, India rubber, from a creeper likewise destroyed by the collectors, rattans, well known to every school boy, sago, timber, edible birds'-nests, seed-pearls, Mother-o'-pearl shells in small quantities, dried fish and dried sharks'-fins, trepang (sea-slug or bêche-de-mer), aga, or edible sea-weed, tobacco (both Native and European grown), pepper, and occasionally elephants' tusks—a list which shews the country to be a rich store house of natural productions, and one which will be added to, as the land is brought under cultivation with coffee, tea, sugar, cocoa, Manila hemp, pine apple fibre, and other tropical products for which the soil, and especially the rainfall, temperature and climatic conditions generally, including entire freedom from typhoons and earthquakes, eminently adapt it, and many of which have already been tried with success on an experimental scale. As regards pepper, it has been previously shewn that North Borneo was in former days an exporter of this spice. Sugar has been grown by the natives for their own consumption for many years, as also tapioca, rice and Indian corn. It is not my object to give a detailed list of the productions of the country, and I would refer any reader who is anxious to be further enlightened on these and kindred topics to the excellent "Hand-book of British North Borneo," prepared for the Colonial and Indian Exhibition of 1886, at which the new Colony was represented, and published by Messrs. William Clowes & Sons.

The edible birds'-nests are already a source of considerable revenue to the Government, who let out the collection of them for annual payments, and also levy an export duty as they leave the country for China, which is their only market. The nests are about the size of those of the ordinary swallow and are formed by innumerable hosts of swifts—Collocalia fuciphaga—entirely from a secretion of the glands of the throat. These swifts build in caves, some of which are of very large dimensions, and there are known to be some sixteen of them in different parts of British North Borneo. With only one exception, the caves occur in limestone rocks and, generally, at no great distance from the sea, though some have been discovered in the interior, on the banks of the Kinabatangan River. The exception above referred to is that of a small cave on a sand-stone island at the entrance of Sandakan harbour. The Collocalia fuciphaga appears to be pretty well distributed over the Malayan islands, but of these, Borneo and Java are the principal sources of supply. Nests are also exported from the Andaman Islands, and a revenue of £30,000 a year is said to be derived from the nests in the small islands in the inland sea of Tab Sab, inhabited by natives of Malay stock.

The finest caves, or rather series of caves, as yet known in the Company's territories are those of Gomanton, a limestone hill situated at the head of the Sapa Gaia, one of the streams running into Sandakan harbour.

These grand caves, which are one of the most interesting sights in the country, are, in fine weather, easily accessible from the town of Sandakan, by a water journey across the harbour and up the Sapa Gaia, of about twelve miles, and by a road from the point of debarkation to the entrance of the lower caves, about eight miles in length.

The height of the hill is estimated at 1,000 feet, and it contains two distinct series of caves. The first series is on the "ground floor" and is known as Simud Hitam, or "black entrance." The magnificent porch, 250 feet high and 100 broad, which gives admittance to this series, is on a level with the river bank, and, on entering, you find yourself in a spacious and lofty chamber well lighted from above by a large open space, through which can be seen the entrance to the upper set of caves, some 400 to 500 feet up the hill side. In this chamber is a large deposit of guano, formed principally by the myriads of bats inhabiting the caves in joint occupancy with the edible-nest-forming swifts. Passing through this first chamber and turning a little to the right you come to a porch leading into an extensive cave, which extends under the upper series. This cave is filled half way up to its roof, with an enormous deposit of guano, which has been estimated to be 40 to 50 feet in depth. How far the cave extends has not been ascertained, as its exploration, until some of the deposit is removed, would not be an easy task, for the explorer would be compelled to walk along on the top of the guano, which in some places is so soft that you sink in it almost up to your waist. My friend Mr. C. A. Bampfylde, in whose company I first visited Gomanton, and who, as "Commissioner of Birds-nest Caves," drew up a very interesting report on them, informed me that, though he had found it impossible to explore right to the end, he had been a long way in and was confident that the cave was of very large size. To reach the upper series of caves, you leave Simud Hitam and clamber up the hill side—a steep but not difficult climb, as the jagged limestone affords sure footing. The entrance to this series, known as Simud Putih, or "white entrance," is estimated to be at an elevation of 300 feet above sea level, and the porch by which you enter them is about 30 feet high by about 50 wide. The floor slopes steeply downwards and brings you into an enormous cave, with smaller ones leading off it, all known to the nest collectors by their different native names. You soon come to a large black hole, which has never been explored, but which is said to communicate with the large guano cave below, which has been already described. Passing on, you enter a dome-like cave, the height of the roof or ceiling of which has been estimated at 800 feet, but for the accuracy of this guess I cannot vouch. The average height of the cave before the domed portion is reached is supposed to be about 150 feet, and Mr. Bampfylde estimates the total length, from the entrance to the furthest point, at a fifth of a mile. The Simud Putih series are badly lighted, there being only a few "holes" in the roof of the dome, so that torches or lights of some kind are required. There are large deposits of guano in these caves also, which could be easily worked by lowering quantities down into the Simud Hitam caves below, the floor of which, as already stated, is on a level with the river bank, so that a tramway could be laid right into them and the guano be carried down to the port of shipment, at the mouth of the Sapa Gaia River. Samples of the guano have been sent home, and have been analysed by Messrs. Voelcker & Co. It is rich in ammonia and nitrogen and has been valued at £5 to £7 a ton in England. The bat-guano is said to be richer as a manure than that derived from the swifts. To ascend to the top of Gomanton, one has to emerge from the Simud Putih entrance and, by means of a ladder, reach an overhanging ledge, whence a not very difficult climb brings one to the cleared summit, from which a fine view of the surrounding country is obtained, including Kina-balu, the sacred mountain of North Borneo. On this summit will be found the holes already described as helping to somewhat lighten the darkness of the dome-shaped cave, on the roof of which we are in fact now standing. It is through these holes that the natives lower themselves into the caves, by means of rattan ladders and, in a most marvellous manner, gain a footing on the ceiling and construct cane stages, by means of which they can reach any part of the roof and, either by hand or by a suitable pole to the end of which is attached a lighted candle, secure the wealth-giving luxury for the epicures of China. There are two principal seasons for collecting the nests, and care has to be taken that the collection is made punctually at the proper time, before the eggs are all hatched, otherwise the nests become dirty and fouled with feathers, &c., and discoloured and injured by the damp, thereby losing much of their market value. Again, if the nests are not collected for a season, the birds do not build many new ones in the following season, but make use of the old ones, which thereby become comparatively valueless.

There are, roughly speaking, three qualities of nests, sufficiently described by their names—white, red, and black—the best quality of each fetching, at Sandakan, per catty of 113 lbs., $16, $7 and 8 cents respectively.

The question as to the true cause of the difference in the nests has not yet been satisfactorily solved. Some allege that the red and black nests are simply white ones deteriorated by not having been collected in due season. I myself incline to agree with the natives that the nests are formed by different birds, for the fact that, in one set of caves, black nests are always found together in one part, and white ones in another, though both are collected with equal care and punctuality, seems almost inexplicable under the first theory. It is true that the different kinds of nests are not found in the same season, and it is just possible that the red and black nests may be the second efforts at building made by the swifts after the collectors have disturbed them by gathering their first, white ones. In the inferior nests, feathers are found mixed up with the gelatinous matter forming the walls, as though the glands were unable to secrete a sufficient quantity of material, and the bird had to eke it out with its own feathers. In the substance of the white nests no feathers are found.

Then, again, it is sometimes found in the case of two distinct caves, situated at no great distance apart, that the one yields almost entirely white nests, and the other nearly all red, or black ones, though the collections are made with equal regularity in each. The natives, as I have said, seem to think that there are two kinds of birds, and the Hon. R. Abercromby reports that, when he visited Gomanton, they shewed him eggs of different size and explained that one was laid by the white-nest bird and the other by the black-nest builder. Sir Hugh Low, in his work on Sarawak, published in 1848, asserts that there are "two different and quite dissimilar kinds of birds, though both are swallows" (he should have said swifts), and that the one which produces the white nest is larger and of more lively colours, with a white belly, and is found on the sea-coast, while the other is smaller and darker and found more in the interior. He admits, however, that though he had opportunities of observing the former, he had not been able to procure a specimen.

The question is one which should be easily settled on the spot, and I recommend it to the consideration of the authorities of the British North Borneo Museum, which has been established at Sandakan.

The annual value of the nests of Gomanton, when properly collected, has been reckoned at $23,000, but I consider this an excessive estimate. My friend Mr. A. Cook, the Treasurer of the Territory, to whose zeal and perseverance the Company owes much, has arranged with the Buludupih tribe to collect these nests on payment to the Government of a royalty of $7,500 per annum, which is in addition to the export duty at the rate of 10% ad valorem paid by the Chinese exporters.