PUBLIC RECORD OFFICE

Reference :-

TPEPNICO. 882

3 PUBLIC RECORD OFFICE, LONDON

ALLY WITHOUT PERMISSION OF THE BE REPRODUCED PHOTOGRAPHIC- COPYRIGHT PHOTOGRAPH-NOT TO

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On the 16th inst., I received a letter from Captain Stirling, R.N., of H.M.S." Thistle," who had just returned from the Dindings, and I will also read a few extracts from this- letter :-

During my stay of some days at Bandar Bahru, I was struck by the general friend- "liness of the chiefs, of which I had some means of judging from the number of them "who daily and hourly, were calling at the Residency, and it was also very remarkable "the interest they showed in, and the warm approval they gave to, the pending change "in the government of their country, on which subject they seemed anxious to obtain "all information, and fully to appreciate the beneficial results that would probably arise "from transfer, or rather institution' of government, and from an improved taxation. "Sultan Abdullah, who was friendly in his manner, called at the Residency on two " occasions, but merely to ask some trifling questions relative to his retinue, &c., beyond "which his interests do not seem to go."

"Rajah Yusuf especially, Rajah Dris, and several chiefs of lesser note, appeared to "me very anxious to commence the new duties and responsibilities that would probably "devolve on them, and proud at the idea of serving under British administration."

"The natives generally in the country and villages show a most friendly spirit, and I "do not anticipate the smallest probability of a disturbance in the

country.

These two letters will show you that matters are proceeding satisfactorily; that quiet and order prevail; and that not only are the people desirous for the introduction of the new system of government, but that the Rajahs also, from whom we might naturally expect opposition to the inauguration of a system which will check their lawlessness, appear to be agreeing to the course which has been adopted.

With respect to the financial position of the State of Perak, I have had the accounts audited by Mr. Robinson of the Control Department, a gentleman in whom you will no doubt join with me in expressing full confidence. Mr. Robinson, in his report to me, states that on 30th June the Perak Government was indebted (inclusive of the debts of the Mantri, just referred to) to the extent of $454,706-91. These debts were incurred prior to the Pangkor Treaty, and were mainly caused by the expenses of the war in Laroot. Mr. Robinson goes on to say," I think it will be found that the Perak farms are under- "estimated at 865,000 per annum, as, from what I learnt during the month spent in "the country, there is no doubt that as soon as the administration of the revenue is in "the hands of the Resident, trade will improve. It is checked now, and has been, by "the irregular levying by many claiming to have the authority of the Sultan. Of course "the great difference between the past of this State, as shown in statement B," and this estimate (referring to two papers which accompanied Mr. Robinson's report), "is ac- "counted for no revenue having heretofore been received at the Perak treasury. "With peace and security in the country, there is no doubt its financial prospect " is very good, and a surplus of over $100,000 may very safely be anticipated for 1876. "This amount would be available towards repaying the debt to the Straits Government or meeting any of the smaller debts of the Mantri and Sultan, some of which the "Commission are of opinion it would be advantageous to the revenue to pay at once, " and thus enable certain mine-proprietors to extend their operations. I look upon it "that the result of the current six months should leave the State clear from all liabilities except the debts of the chiefs and that to the Straits Government, and I have im- pressed upon the Resident the desirability of settling all claims within the year; and "should current revenue prove insufficient, I would recommend the debt to the Straits "Government being slightly increased. I have in the estimate allowed interest on "$7,000 additional under this head.

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"This being the probable position on 31st December next, four years should see the "State free from debt, and, as an increasing revenue may surely be looked for, it may " be carlier.'

So much gentlemen, with respect to the scheme which I have proposed for establish- ing a more settled form of government in the fine State of which I have been speaking. I am well aware that I bave incurred a responsibility of a very grave nature in taking the steps which I have adopted without instructions or authority to do so. It appeared to me, however, that the situation was one in which, the longer action was proposed, the more difficult it would be to deal with, and the desire expressed by some chiefs to hand over the government of the State to us presented a very favorable opportunity for a settlement. I considered, morcover, that it was more difficult to show why the case should be deferred, than that action should be forthwith taken.

* As I have elsewhere stated, these farms have just been let by us for 84,000 dollars.

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I felt that it was impossible to treat with Abdullah and the Perak Chiefs unless I spoke and acted as if charged with full authority. At the same time, I have endeavoured to avoid any step that may embarrass Her Majesty's Government; and should the policy not meet with their approval, retrogression or progression, according to the views which they may entertain, can without difficulty be effected.

Gentlemen, this is a subject of the greatest public interest in this portion of Her Majesty's dominions, and it is one which requires our grave consideration, with reference to the relations between the circumstances of the past and the events of the present, and to the bearing that these events will have upon the future-a future to which, I venture to say, the Straits Settlements have to look forward with some little anxiety. Several things combine to cause such anxiety on the part of many who have long had at heart the interests of this Colony, and who have watched its progress in trade, commerce, and general enterprise.

This Colony, like others in the list of British possessions, has derived the prominent position which she holds, through the commercial enterprise of England's sons.

Singapore, thanks to the foresight and policy of her founder, and to the talents and exertions of British merchants,-has exchanged the few fishermen's huts which once lined her shores for the present fine and prosperous town a contrast brought about chiefly by those men to whom I have alluded. Commercial transactions here were once confined to English merchants, and large fortunes were speedily amassed by them. But how did these riches accumulate? I need not tell you, gentlemen, that then, as now, the pros- perity of the Colony was gauged by the amount of passing traffic, but with this dif ference, that the prizes which are now distributed to the many then fell to the few. European enterprise now competes with English capital; while the Chinese merchant, contented as he is with very small profits, also promises to be a formidable competitor in the commercial arena. The consequence is, that (and I speak of a fact which is now very generally recognized all over the East) the rapid making of princely fortunes has given place to hard work and moderate returns; and, in the ordinary course of things, the spirit of competition will render the one more laborious, the other still more moderate.

Another consideration which should be reviewed is, that the very trade which is now the standard of the Colony's prosperity may, perhaps at no distant day, wane and ebb. Already, as you know, gentlemen, a proposition for cutting a ship canal to the north- ward of our Settlements, through the Isthmus of Kraw, at the neck of the Malay Peninsula, and another for tapping the Empire of China through the kingdom of Burmah, furnish the disturbing elernents calculated to lead to such a result.

Forewarned is forcarmed; and it is our duty to adopt such measures as will secure the permanent prosperity of the Straits Settlements and, if possible, afford a vent for the great competition which is now so heavily weighing upon our countrymen who are engaged here in mercantile pursuits.

Now, gentlemen, it seems to me that one remedy for the sources of anxiety to which I have alluded lies at our very doors.. Behind us runs the Malay Peninsula, stretching

to our Indian possessions on the Eastern Coast of the Bay of Bengal, and it is to this peninsula that we must look for the field where British commercial enterprise can find a scope in these waters for its undertakings and speculations. The establishment of close relations with the states of this peninsula,-I allude more especially to those on the western coast, with which we are now connected,—will render these Settlements far less dependent on passing traffic, for such establishment will increase the traffic and business of the Colony.

The resources of these states have been recently shown to be even richer than the most sanguine had anticipated. The planter and the agriculturist have here a magnificent scene for their labours. Thick alluvial deposits are to be found on sites especially adapted for the cultivation of tea, coffee, and tobacco; and I have been informed that there is no reason why the crops grown on these sites should not be equal, if not superior, to those grown in Delhi, Assam, and Ceylon respectively.

Why should not this Malay Peninsula be as prosperous as our last-named possession, which has become so important of late years, although it does not possess the extraordinary mineral resources and good water communications which are to be found in the peninsula ? Why should not a large labouring population of immigrants be imported into or voluntarily enter the states? Why should not English capital be invested as readily in these rich states as it is in the other parts of the world, to feed the labour so imported and to aid the general development? The answer can be given in two words ;--Malay rule.

To the reason given in these two words may be traced all the difficulties which are or may be encountered in our relations with the Malay States or in opening up the peninsula

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PUBLIC RECORD OFFICE

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Reference :-

C.O.

882

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PUBLIC RECORD OFFICE, LONDON ALLY WITHOUT PERMISSION OF THE BE REPRODUCED PHOTOGRAPHIC- COPYRIGHT PHOTOGRAPH——NOT TO

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