THE STRAITS SETTLEMENTS, &C. 33 



means, and through the example of the well-being of the Native 

 States, is very great there. 



Outside the Straits, in 1880, a portion of North Borneo was oc- 

 cupied by the recently formed "North Borneo Co.," and in 1888 

 followed by a British protectorate over this portion of North Bor- 

 neo, Brunei and Sarawak. The G-overnor of the Straits was then 

 appointed Consul-G-eneral in these lands, just as the Eesident 

 Councillor of Penang iS; for the so-called Siamese States on the 

 West Coast of the Malay Peninsula. This, in view of the exist- 

 ing ex-territorial rights, gives them great power over the thousands 

 of Natives who call themselves British subjects, and at the same 

 time over those States themselves, and, in my opinion, prepares 

 the way for future annexation 



In 1885, England established herself in the Eastern portion of 

 New Guinea. In 1886, she took possession of the Cocos or Keel- 

 ing Islands to the South of Java, which were joined to the Straits 

 and in 1888 of Christmas Island, which is also situated in the In- 

 dian Ocean. 



It is my pleasant duty to add here that the Straits authorities 

 have always maintained a most considerate and friendly attitude 

 towards us, especially during the Achinese war. 



Let us now return to the Colony as it now is. It is impossible 

 for any one who travels now through the Protected States of the 

 Malay Peninsula and sees everywhere the outward signs of civili- 

 zation and meets with an industrious, contented population, to pic- 

 ture to himself what their condition was a short time ago under 

 the Native G-overnment. Without any military assistance, the 

 Residents have been able to bring their residencies to a flourish- 

 ing condition and continual progress. Surrounded by a staff of 

 able Europeans and Natives, they formed part of the legislative 

 and executive power, the State Council, or rather, with their 

 powerful personality, they alone represented it. Indeed the arti- 

 cles of the above-mentioned Pangkor Treaty left great power to 

 the discretion of these Residents, whose advice had to be sought 

 and followed by the Princes in all questions which did not affect 

 religion and custom, while the collection and control of the reve- 

 nues, as well as the general government of the land, depended 

 upon their advice. They were responsible for everything to the 

 G-overnor of the Straits. 



The present Eesident of Perak has recently spoken of this as 

 follows : — "I have spoken of the Residential system, but in real- 



