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It is understood that there are several fair landing places on the west coast, but that there are no roads leading to the harbour suitable for the passage of artillery.

On the other hand, it should not be overlooked that portions of the west coast are but 8,000 yards from the head of the harbour and town, and consequently almost within bom- barding range.

RECAPITULATION.

Appendix No. 4.

LABUAN.

First scheme-

Works Armament Barracks

£

26,160

11,855

4,000

Second scheme--

Works Armament Barracks

£

66,000

18,600

14,000

Total

42,015

Total

98,600

(Signed)

J. H. SMITH.

May 1, 1881.

(Signed)

T. L. GALLWEY; Inspector-General of Fortifications.

NORTH BORNEO.

No. 84.

Sir,

Colonial Office to Royal Commission on the Defence of British Possessions and Commerce Abroad.

Downing Street, July 18, 1881.

I AM directed by the Earl of Kimberley to transmit to you, for the information of the Royal Commission on the Defence of British Possessions and Commerce Abroad, a copy of a letter from the Chairman of the British North Borneo Provisional Association, calling attention to the importance of the harbours and bays of North Borneo for defence purposes, and suggesting that if an officer is sent out to the China Sea he should be instructed to inquire into the capabilities of the harbours, and their adaptability for coaling stations or other requirements of Her Majesty's Fleet.

I am also to inclose a copy of the further correspondence on the subject, from which it will be seen that the Secretary of State for War has given instructions to Colonel Crossman to examine and report upon the harbours in question.

I am, &c. (Signed)

R. H. MEADE.

My Lord,

Inclosure 1 in No. 84.

The British North Borneo Provisional Association (Limited), to the Earl of Kimberley.

The British North Borneo Provisional Association (Limited),

11, Old Broad Street, London, June 15, 1881.

A ROYAL Commission having been appointed to inquire into the measures advisable for the defence of the Colonial Possessions of Great Britain, I beg to bring under your Lordship's notice the importance of the harbours and bays of North Borneo, especially those of Gaya, Koudat, and Sandakan, situated in the territory acquired by this Association, for the development of which it is hoped a Royal Charter will very shortly be obtained from Her Majesty's Government.

I venture to suggest that, in the event of any officer being sent out for this purpose to the China. Sea, he may be instructed to inquire into the capabilities of these harbours, and their adaptability for coaling stations or other requirements of Her Majesty's Fleet.

I inclose a sketch map* of the territory, which also shows on an enlarged scale the harbours of which a partial survey has already been made.

I have, &c.

(Signed)

RUTHERFORD ALCOCK, Chairman.

Sir,

Inclosure 2 in No. 84.

Colonial Office to War Office.

Downing Street, June 22, 1881.

I AM directed by the Earl of Kimberley to transmit to you, to be laid before the Secretary of State for War, a copy of a letter from the Chairman of the British North Borneo Provisional Associa- tion, calling attention to the importance of the harbours and bays of North Borneo for defence * Not printed.

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NORTH BORNko.

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