44 BRITISH BORNEO. 
of the valuable timber trees which composed the original 
forest. 
A few cargoes of timber were also exported by Chinese to 
Hongkong. Great hopes were entertained that the establish- 
ment of a European Government and a free port on an island 
lying alongside so rich a country as Borneo would result in 
its becoming an emporium and collecting station for the vari- 
ous products of, at any rate, the northern and western por- 
tions of this country and perhaps, too, of the Sulu Archipelago. 
Many causes prevented the realization of these hopes. In the 
first place, no successful efforts were made to restore good 
government on the mainland, and without a fairly good gov- 
ernment and safety to life and property, trade could not be 
developed. Then again Labuan was overshaded by the pros- 
perous Colony of Singapore, which is the universal emporium 
for all these islands, and, with the introduction of steamers. 
it was soon found that only the trade of the coast immediately 
opposite to Labuan could be depended upon, that of the rest‘ 
including Sarawak and the City of Brunai, going direct to 
Singapore, for which port Labuan became a subsidiary and 
unimportant collecting station. The Spanish authorities did 
what they could to prevent trade with the Sulu Islands, and, 
on the signing of the Protocol between that country and Great 
Britain and Germany freeing the trade from restrictions, 
Sulu produce has been carried by steamers direct to Singapore. 
Since 1881, the British North Borneo Company having opened 
ports to the North, the greater portion of the trade of their 
possessions likewise finds its way direct by steamers to the 
same port. 
Labuan has never ,shipped cargoes direct to England, and 
its importance as a collecting station for Singapore is now 
diminishing, for the reasons above-mentioned. 
Most or a large portion of the trade that now falls to its 
share comes from the southern portion of the British North 
Borneo Company’s territories, from which it is distant, at the 
nearest point, only about six miles, and the most reasonable 
solution of the Labuan question would certainly appear to be 
the proclamation of a British Protectorate over North Borneo, 
to which, under proper guarantees, might be assigned the 
