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obviously the only course to be adopted, and so requisite to be done at once, that, as I stated to your Lordship, I took upon myself the responsibility of making the necessary alterations in our policy. As I have before observed, I do not think that alteration caused the extended feeling of hostility towards us which now there appears reason to believe exists, nor do I think it arose from a feeling altogether of personal hostility towards Mr. Birch. He may have done some injudicious acts, but I have not the slightest doubt he acted to the best of his ability, which unquestionably he possessed in a very large degree. Judged by the light of recent events there seems to have been a somewhat natural but undetected feeling of opposition on the part of some of the Chiefs at being interferred with in matters about which Mr. Birch remonstrated with them, prior to the change of policy. The effect of the policy which I announced would, I feel sure, have had a healing effect upon the country, and would give to the Chiefs more extended power for good than they had ever previously possessed. Whilst preserving to Abdullah his title and rank, it removed from him the power and placed it really in the hands of a neutral party, the Governor of the Straits Settlements, who was to carry on the government of Perak through Commis- sioners acting with the advice of a Malay Council. This it was hoped would induce Ismail and others, who would not recognise Abdulla, to give their adhesion and support to the officers appointed Commissioners. In carrying out there negociations, some of the leading Chiefs, notably Yusuf and Drise, were engaged on our side, and if, as I believe, they are acting loyally towards us, I think we should not be justified in withdrawing and leaving them to the hostility to which they would be exposed, supposing disaffection to be general, in consequence of their having acted with us to the utmost of their power.

Although Perak proper, as distinguished from Larut, has not prospered under the new state of things to the extent anticipated, yet there is no doubt that, to some extent, population and capital were being introduced into the country, under the guarantee afforded by the fact of our having appointed a British Resident in the country, under whose advice the Sultan had bound himself to act, and which engagement the British Government through your Lordship had announced would be firmly enforced.

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23. But it does not seem necessary for me to adduce any further arguments to show that it was impossible for us to withdraw from Perak altogether. Your Lordship will no doubt see that such a course could not be seriously contemplated for a moment. am desirous therefore of employing the troops I asked for, not only for the purpose of punishing Mr. Birch's murderers and those who resisted our troops, who went to see that justice was done upon his murderers, and not only for the purpose of inquiring into whether or not any of the Chiefs have been guilty of treachery towards us, and, while telling us of their approval of our acts, exciting the more ignorant and rash amongst them against us, but also of bringing about as far as possible a settlement of all outstanding differences and disputes that have so long disturbed the country, so as to render it safe for the residence of our officers and of Europeans in general for the future.

I could not again recommend that any officer should be placed in the Resident's position without some safeguards that he would not be treacherously dealt with in the same way as Mr. Birch.

24. After the occupation of the country, I propose to consider whether, in view of all the recent circumstances, it is desirable that the present arrangements should be allowed to continue, whether it is desirable that Abdulla should be deposed, and Yusuf, the present Rajah Muda, or some other person nominated in his stead, or whether it would be desirable that we should take over the country altogether in the name of Her Majesty as an integral portion of our dominions.

25. In my telegraphic Despatch of 18th November, I asked for instructions, and referred to its being possibly desirable to annex a portion of the country bounded to the northward by the State of Quedah, and to the East and South by the River Perak.

As, however, the matter strikes me at present, and subject to the result of any inquiries that I may make and to further consideration, it now appears to me that complete annexation of the whole State would be the simplest solution of the difficulties in which we are involved in dealing with this question.

26. Even now, pending further inquiry, I submit that we should be entitled to say, that Abdullah had broken his engagements with us, that the Resident we had given him at his request had been murdered in his dominion, that he had been unable to afford us any redress, that in consequence we had been obliged at very heavy expense to take the law into our own hands and to punish the offenders ourselves, and that the only solution of all the difficulties which had arisen, in consequence of the jealousies amongst the Chiefa, was to govern the country ourselves, and compel the refractory to submit to our law,—always lightly administered in a foreign State when conflicting with native customs and usages.

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Another, and probably a better, course would be to annex the country and govern it > with the advice of a Malay Council, or a mixed Council of British Officials and Malays. 27. If upon inquiry Abdullah should be found to have been guilty of treachery towards us, we could scarcely continue to keep him in his present position, and the question would then be whether we should appoint another Sultan or assume the government ourselves. Assuming that we did not think it advisable to reinstate Ismail, we should then have one reigning and two ex-Sultans. We have had trouble enough with one ex-Sultan, and I should imagine it would scarcely be advisable to have three separate regal establishments, two of which would probably be a focus of intrigue and disaffection. Assuming, however, that we are satisfied that most of the principal Chiefs of the country are disaffected towards us, and dealing treacherously with us, the question then arisca whether, in the interests of humanity and civilization, we should not enter into their country and break down their power. In Malacca and Province Wellesley, no Chief possesses any political power; indeed the Chiefs are not to be distinguished from the people, and no one can go through the Malay Peninsula without marking the difference that exists in cultivation and civilization between the places under our rule and the States under our influence (such as Johore) without being agreeably surprised at the difference between the condition of the Malaya under Native rule and the same class of people under English rule.

28. But there is another element in the Peninsula which it appears to me, in the interests of the Malaya themselves, will compel us sooner or later to interfere. In Larut the tide of Chinese immigration has overspread all obstacles. It is now commencing to turn into Perak, and the Chinese population there will probably in a short time out. number the Malays.

In Joharc, the Malay population, although large, is already outnumbered by the Chinese in the proportion, I believe, of two to one, and owing to the good government of the Maharajah of Johore no difficulties have yet arisen, but I think we must look forward to the necessity that will arise of our eventually having to keep the peace in some way between the Malays, the Chinese, and the Indian population, all of whom, the Chinese particularly, find a home and comparatively easy livelihood upon this natu- rally rich Malay Peninsula.

29. I have already referred your Lordship to the fact that my having obtained a suffi- cient force may destroy the apparent necessity for having asked for it by not being obliged to use it; but it seems to me that it was on every ground a better course to adopt to discourage resistance in the first instance rather than run the risk of dealing incompletely with the question by asking for too small a force, and perhaps end in the necessity for military operations on a large scale. I could not conceal from myself either that, as a question of Imperial policy, we cannot afford a reverse of any importance in this focus of Eastern communication. The letter intercepted upon the Perak River shows the amount of exaggerations which are likely to attend a defeat or a victory.

Owing to the large number of inhabitants of China and India passing to and fro, and residing in these settlements, we are in intimate communication with those countries, while it is no exaggeration to say, that thousands of letters pass every year between them and our possessions in the Malay Peninsula.

From our geographical position we are moreover in intimate communication with Burmah, Siam, Cochin-China, and other countries, with whom it is a matter of necessity for us to keep up our prestige. From our position on the world's highway, we have representatives of all civilized powers, who are watching us, and no doubt reporting to their respective Governments our capabilities for dealing with the half civilized race în a case auch as that which has arisen.

30. I can scarcely hope, is the multitude of arrangements that I have felt myself compelled to make with reference to these affairs, to secure your Lordship's concurrence in every particular, but I trust that my conduct throughout this matter may meet generally with your Lordship's approval. I can only say that I have endeavoured to preserve a calm judgment amongst the various conflicting and often alarming reports that I have received, that I have discountenanced all extreme measures, and that, in every case where I have acted, I have endeavoured to consider both sides of the questiou, and to arrive at a calm and dispassionate conclusion.

I have, &c.

(Signed) WM. F. DRUMMOND JERVOIS. The Right Hon. the Earl of Carnarvon,

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