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い

Sir,

33

No. 73.

H. T. Ussher, Esq., to Colonial Office.

14, Ampthill Square, N.W., May 7, 1878.

1 HAVE thought it my duty, in the present unsettled state of our foreign relations, respectfully to lay before Sir Michael Hicks Beach the position and capabilities of the little Island of Labuan, with respect to its excellent harbour accommodation and central situation in the China seas, between Singapore and Hong Kong, as well as to its immense resources in coal (requiring now but a few willing labourers for its development) and its susceptibility of easy defence from an enemy.

2. A foreign invading Power would naturally have his attention drawn to a place possessing such advantages; and were he once established there, he would be in possession of a position of great strength, which he would proceed to fortify at once. The difficul- ties of voluntary industry in extracting the coal would rapidly disappear before a system of forced labour; and Labuan would become a little fortress and harbour of refuge for predatory cruizers, affording them provisions and coal in abundance, and the safest and best anchorage in those seas for hundreds of miles.

3. The two or three channels leading into the harbour are very narrow and intricate, and rock-bound by formidable coral reefs and banks. Were the buoys and marks to be removed and one or two guns mounted in the Islands of Daat, Enoe, and Pappan respectively, with a small battery at Point Raffles, say ten guns in all, no vessel could live, but would be inevitably sunk or driven upon the rocks. Of course torpedoes would play their part in such narrow passages with deadly effect.

4. The rest of the coast and island is inhospitable and covered with impenetrable wood and jungle, and lalang grass; and the shores are rocky and dangerous even for ships' boats.

5. The island may contain 2,500 head of excellent cattle, without counting buffaloes, and the opposite coast of Borneo would furnish additional supplies, if required.

6. Labuan thus possesses every inducement for an attack, and it has no means of defence. Its half-dozen obsolete guns, and squad of sixty native police, need not be taken into account for any practical purpose.

7. The question I would most respectfully submit to the Secretary of State is, whether, in the possible event of war, Her Majesty's Government might not be with advan tage beforehand in this matter. The remarks I have ventured to make apply equally to a temporary military and naval occupation and defence of the Colony by Great Britain, with the exception of the labour question; and should the Government be disposed to consider the proposition as a whole, qualified native coal-cutters could be easily obtained from the East Indian Railway Companies' collieries in Bengal, where native labourers are turning out 300,000 to 400,000 tons of coal per annum, at a cost of about 5s. per ton; 200 or 300 of these men, attracted by large wages, would, I take it, volunteer at once to work the Labuan mines. In fact, I have already advised the Oriental Coal Company to try and obtain them, as the Chinese recently imported do not appear apt, and are very indolent.

8. A heavy gun-boat or two, with two or three companies of native troops, and the assistance of an officer of Engineers to fortify the approaches and place the guns in position, would set at defiance any force that could ordinarily be brought against the Colony in those

seas.

9. I may state in conclusion that I had the advantage of some conversation on the subject more than a year ago with Sir William Jervois, and he certainly appeared to coin- cide in my views. A reference could be made to that distinguished officer, who, I believe, is in this country. Captain Hotham, R.N., commanding Her Majesty's ship "Charybdis, also expressed a strong opinion as to the capabilities of Labuan, especially as a general refitting naval station and safe anchorage.

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10. Trusting that Sir Michael Hicks Beach will not consider these few observations to be out of place, I have, &c.

(Signed)

H. T. USSHER.

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