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Perak, for 1874, a copy of which accompanied my predecessor's despatch No. 121, dated April 26th, 1875. I have made some notes upon this Report which I enclose for your Lordship's information.

On attentive perusal of this Report. I do not gather that there has been any particular development of the resources of Perak, consequent upon the adoption of the system of "advising" the Sultan in his government. My own observation supports this conclusion. The case of the Larut district, to which I shall again refer, is altogether exceptional and peculiar.

The report of the prosperity of this district has given rise to the belief that great development has taken place in the resources of all Perak. The fact, however, is that in Perak generally, where Sultan Abdullah, Ex-Sultan Ismail, and other Chiefs have had their sway, there are but few signs of improvement. The character of Abdullah, his utter impracticability, his refusal to take the advice of our Government, added to the division between him and Ismail, and between their respective followers, and combined with the system of oppression of the people by the Chiefs; all these and other circum. stances have conspired to render improvement well nigh impossible.

12. One of the consequences of the establishment, in 1874, of closer relations with Perak, has been that some 18,0004. has, under authority obtained from the Legislative Council by Sir A. Clarke, been advanced from the Straits Settlements Treasury on the security of that State, and, considering what has passed, it is a question whether we shall be able to avoid incurring a much larger liability on its account."

During the disturbances in Larut considerable expenses were incurred on behalf of the State by the Mantri of Perak, in his endeavours to bring to terms the contending factions of Chinese in Larut. Previous to my arrival in this Colony, an agreement (copy enclosed) nad been arranged by my predecessor, between the Mantri on the one hand, and his creditors on the other, engaging that all claims upon the Mantri should be referred to the decision of a commission. I understand that Sir A. Clarke's view was to issue scrip to each creditor, payable as the revenues of Perak would admit, in 10, 20, or 30 years; and that the half-yearly dividends of this scrip, upon which the creditor would be able to raise money, would be paid by the Perak Government.

The Commissioners are of opinion, and I agree with them, that it will not be possible to raise the money on the security of the Perak Government under its present conditions. In order to carry out the terms of the agreement, therefore, it is a question whether it will not be necessary that the Government of the Straits Settlements, on behalf of the State of Perak, should become responsible to the Mantri's creditors (who are for the most part British subjects) for the payment of his debts, the amount of which is estimated at somie 75,0007. But whilst the British Government take upon themselves this security for the State of Perak, we must at the same time insist upon good security from that State itself, and this cannot be obtained in the present position of its affairs.

13. Whilst discussing the affairs of Perak, I desire to bring prominently to the notice of your Lordship a subject, not yet referred to, which has for the last four months engaged my attention, and which has an important bearing on our relations with that State. I allude to the condition of bondage in which, under the denomination of “debt- slavery," a not inconsiderable portion of the people therein live.

I enclose reports on this subject from Mr. Birch, Mr. Davidson, and Mr. Swettenbam, to which I beg to draw your Lordship's special attention. These reports disclose a state of things unknown to any but those who have actually resided amongst the Malay's of the States of the Peninsula, and have made the relations of debtor and creditor a special subject of inquiry.

I should observe that although Mr. Swettenham's official post as Assistant Resident is in the State of Selangore, he has on several occasions been employed on missions in Perak, and he has an intimate knowledge of the Perak people. His report refers to the State of Salangore as well as Perak, whilst that of Mr. Davidson refers alone to Selangore. It is, however, in Perak that “debt-slavery" is stated to be most common, and if the evil be dealt with there, reform may hereafter be introduced the more easily in other States.

Owing to the peculiar relations which exist between debtor and creditor, and con- sidering that a large proportion of the creditors are Rajahs and Chiefs, it would be very difficult, if not impossible, to deal with this question without the power to enforce the carrying out of any course that might be determined on to relieve slave-debtors. In my opinion it would not be possible for any British officer, in the position of a Resident, to obtain the abolition of debt-slavery merely by "advising" the Sultan or Chief.

14. The position of a Resident at the Court of a Malay State is, in many respects, & peculiar one. If his advice be followed, he is in a position to be of great benefit to the

* No. 26 of Command Paper (C, 1,880], August 1875.

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State, for the prosperity of which he is in a great measure held to be responsible. When, however, as has been the case in Perak, his advice is for the most part not followed, his powers of usefulness must obviously be very restricted.

In the words I recently made use of in a speech at the opening of the Legislative Council of this Colony :-" In Perak, especially, the relations between the adviser and "the advised have been unsatisfactory from the commencement. The Resident's advice

is disregarded, and he must consequently either passively look on, while acts are com "mitted which he disapproves but cannot control, or he must assume to himself a power " which is inconsistent with bis position as an adviser, thus practically taking upon "himself the government of the State, so far as the opposition of Rajsha and Chiefs will "permit him to do so. The result is eminently unsatisfactory to all concerned.”

Some of the Chiefs, I had been informed, anxious for a better system, and desirous of putting an end to the divided state of Perak, wished the British Government to take the country altogether under their control.

15. Such was the state of affairs in Perak which led to my recent visit there.

On that occasion, I commenced my tour in Larut, crossed overland, on elephants, to Qualla Kangsa, on the Perak River, and descended that river in boats from Qualla Kangsa to the sea. Whilst en route, I visited the several chiefs of the country. (Map enclosed.)

16. I was accompanied by Mr. Birch, Resident of Perak, Captain Speedy, Assistant Resident of Perak, Mr. Davidson, Resident of Salangore; Mr. Swettenham, Assistant Resident of Salangore; Major McNair, Surveyor General; Captain Innes, R.E., Assistant Surveyor General; Captain Stirling, R.N.; Lieutenant Abbott, R.N.; Dr. Anderson, Colonial Surgeon; and Lieutenant McCallum, R.E., my Acting Private Secretary; and I had a guard consisting of 15 sepoys and 11 blue jackets from Her Majesty's ship "Thistle," which was anchored at the Dindings.

17. I spent three days in the tin districts of Larut, where I was fortunately able to settle some disputes, and to give advice respecting the relations which should exist between master and coolie.*

The district of Larut is unlike any other part of Perak. Its appearance, with its large Chinese population, its numerous mines, its roads, and the amount of traffic passing over them, is striking.

Before the disturbances arose, which eventually led to our intervention, tin-mining had been carried on to a considerable extent in this district, but during the war between rival factions of Chinese it nearly altogether ceased. Since British protection has been afforded, the number of mines worked is far in excess of that opened under native rule, and the prosperity of the district has immensely increased.

These tin districts are peopled almost exclusively by Chinese, who regard the British Government as virtually the ruling power, and the British officer resident there has been able to act for their improvement without interference or opposition from the Chiefs of Perak.

The Mantri, who had engaged in large speculations there, was saved from bankruptcy by our intervention, and ever since that occurred, the business of government has really been in the hands of our officers.

18. From Larut to Quaila Kangsa, on the Perak River, there will ere long bee regular road communication. The distance is about 18 miles, and five miles of the road has been finished. It is important to open this, the only land route between Larut and Perak, and I urged that the work might be proceeded with with all speed.

19. At Qualla Kangsa I met the Rajs Bandahara Usman, the second in succession to the throne of Perak. He is a great opium smoker, and very weak in intellect. I also met here the Sri Maharaja Lela, a minor Chief, and an imbecile old man. I also had an interview with the Laxamana (apparently a man with some sense and cunning), who had accompanied me since my first arrival, and with the Mantri, who joined me at Larut. did not discuss any serious business with these Chiefs on this occasion.

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I may here mention that at Qualls Kangsa, and all the places I stopped at en route, considerable preparations had been made by the Chiefs for my reception.

• Under the present system the coolie receives a certain per-centage of the tin which he excavates, and he ia compelled to buy clothes, food, everything, in fact, from the mine owner, who, in the generality of onees, greatly abuses this privilege, by charging the coolie some 200 or 800 per cent, beyond cost price. I endeavoured to induce the head man to pay the coolle wages, and to allow him to purchase the necessaries of life when and where he likod. The mine owners mid they wonk agree to the proposal, provided the coolies are bound to work a certain number of hours per day (which now they do not). I promised to endeavour to affect thin arrangement. So far as the coolies are concerned, the change will be a great boon.

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