BORNEO 255 



partly the cause of its selection, but the island has not 

 fulfilled the expectations formed of it, and in 1889 its 

 administration was made over to the British Norlli 

 Borneo Company. 



Labuan, as its name implies, is provided with an 

 excellent harbour, but has few other advantages. It is 

 low, flat, and swampy except at its northern end, and in 

 spite of the greater part of the forest which covered it 

 having been destroyed, the rainfall is excessive ; a large 

 portion of the land is unfit for cultivation, and the soil is 

 on the whole poor. The low and marshy ground is, 

 however, suitable for growing the sago-palm, and rice is 

 cultivated. Plantations of the West African oil-palm 

 {Elccis guincensis) have been tried with more or less 

 success, but the chief trade is in sago. Factories where the 

 raw product, as used by the natives, is washed and dried 

 into the European commercial article have been estab- 

 lished for many years. The flour thus obtained is sent to 

 Singapore for granulation, and forms the principal item 

 in the list of exports. The population in 1891 was 

 nearly 6000, and the greater part of the trade is carried 

 on by Chinese. The existence of the Company in North 

 Borneo materially affected the condition of the island 

 during the period of rivalry, but under the new adminis- 

 tration, and especially since the establishment of 

 Mempakol — the station on the mainland — its prospects 

 are better. The coal-mines are now being worked by 

 the new Central Bornean Company, who have steamers 

 running twice a month to Singapore. Their eftbrts are 

 being directed to the reconstruction of the railway from 

 the mines to Victoria Harbour, which is now nearly com- 

 pleted ; and under an improved system of working, the 

 output is expected to be a large one. 



