BORNEO 249 



Overbeck concluded negotiations with the Sultans of 

 Brunei and Sulu, by which certain territories were 

 granted to them by the latter in fee simple. A pro- 

 visional company was formed, and a Eoyal Charter 

 petitioned for. It was granted, and on the 1st 

 November, 1881, the British Xorth Borneo Company, 

 with an available capital of about £400,000, commenced 

 its existence. Various inland districts and the small 

 Mantanani Islands were acquired later; in 1889 tlie 

 British Colony of Labuan was placed under the adminis- 

 tration of the Company, and finally a British Protectorate, 

 established in 1888, has materially strengthened the 

 position of the country. Brunei and Sarawak being also 

 under British protection, many difficulties with regard to 

 external politics are removed, and trade having steadily 

 improved, the new colony may be said to have a fair 

 chance of ultimately succeeding. 



The territory thus acquired has, including the islands, 

 an estimated area of 31,000 square miles. It extends 

 from the Sipitong river in Brunei Bay to Sta. Lucia 

 Bay on the east coast, and its coast-line measures about 

 1000 miles. It is thus slightly larger than Ceylon. It 

 possesses a number of excellent harbours, the soil is 

 both rich and fertile, and though it is without the 

 numerous navigable rivers of Dutch Borneo, there are in 

 most districts sufficient waterways into the interior to 

 serve for the transport of produce. The central position 

 of the country is likewise in its favour, while its 

 proximity to China, and the marked preference the 

 Chinese have always shown for Borneo, have considerably 

 simplified the labour question. 



The Government is administered by a Governor, witli 

 whom is associated a Colonial Secretary. There are two 

 Itesidents and several Assistant Eesidents. The mode ot 



