82 THE SULU ISLANDS. [chap. iv. 



Spain, and Germany, with reference tc» the 8uhi ArchipeLago and 

 North Borneo, the sovereignty of Spain is recognised over the 

 entu-e archijDelago, by which is understood all the islands lying 

 between Mindanao and the Bornean coast. Spain renounces all 

 claims to Xorth Borneo and the islands of Banguey and Balem- 

 bangan, together with those of the Malawall^ Channel, in favour of 

 England, and also acknowledges British sovereignty over all the 

 islands within three miles of the mainland of Xorth Borneo. It is 

 stipulated that there shall be perfect freedom of commerce and 

 navigation in the Sulu Archipelago. Xeither export nor import 

 duties are to be levied, and the British Government undertakes 

 similar obligations with regard to the territories of the Xorth 

 Borneo Company. 



