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Inclosure 2 in No. 85.

Colonel Crossman, R.E., to the Inspector-General of Fortifications, relative to Harbours on the Northern

(Confidential.) Sir,

Coasts of Borneo.

Singapore, December 26, 1881.

I HAVE the honour to report that I embarked at Singapore, on board Her Majesty's ship Lily," Commander Carey, on the 28th November last, and arrived at Labuan on the 2nd December.

I left that place on the 4th for the north and north-east coasts of Borneo, for the purpose-as directed in your Memorandum of the 7th July, 1881, of examining the harbours of Gaya Bay, Koudat, and Sandakan Bay, situated in the territory lately granted by the Sultans of Brunei and Sulu to the British North Borneo Provisional Association, and now in the hands of the newly-chartered North Borneo Company.

GAYA BAY.

Appendix No. 4.

NORTH BORN EG.

Gaya Bay, in about 6° north latitude and 116° east longitude, forms, with Sapangar Bay, a large See Chart No. 1.* basin, protected from the south-west by the Island of Gaya, and from the west by the Island of Sapangar,

and is about 80 miles (nautical) from Labuan, and 820 from Singapore.

The whole length of the inlet is a little over 7 miles, and the width about 4 miles, narrowing at Sapangar Bay to about 14 miles from shore to shore.

Over the greater portion the depth of water is from 8 to 13 fathoms; reefs and shoals extend off the mainland to a distance of nearly a mile in every direction, except on the west of Sapangar Bay, north of Tanjong Katong, where there is 5 fathoms of water about 300 yards from the shore.

In this bay the depth is from 5 to 8 fathoms, affording a good anchorage over an area of about 700 acres, and it is also the most sheltered part of the whole inlet, though, during the south-west monsoon, a considerable swell comes up the bay, rendering landing in boats difficult on the north shore.

The water is also deep close to the east shore of Sapangar Island, and ships may lie in safety at a very short distance off.

At Gaya Island a clearing has been commenced at the point marked (*), to prepare the ground for See Chart No. 1* a trading station of the North Borneo Company. The water there is generally shallow for a consider- able distance from the shore; but two narrow channels exist, up which some coasting vessels can reach 15 feet of water at about 100 yards from the land.

There would appear to be no habitations on the coast of the bay or on the islands, the village Gantison, shown on the Admiralty chart at the head of Sapangar Bay, having now disappeared.

A few fishing-boats were seen making for the mouth of the Kabutuan River, along the banks of which, at some distance from the sea, a few natives are living.

The bar of this river can only be passed by boats drawing very little water, and the only other river falling into the bay-the Inam-on which there are some native Settlements, is more difficult of access still.

Alongside the whole of the shores the hills rise abruptly from the water to a height of from 300 to 500 feet, and are covered with thick jungle, the approaches to the rivers being fringed by dense

mangrove swamps.

It would not be easy to provide facilities for coaling Her Majesty's vessels in this bay.

The coast of the mainland does not belong to the North Borneo Company, but is the property of a native ruler, a relative of the Sultan of Brunei, the only land at present ceded to the Company consisting of the Islands of Gaya and Sapangar.

On Gaya Island there is no sheltered place conveniently situated for coaling-wharves, and though coal is reported to exist on this island, there would appear to be no certainty of the fact.

The water would suit for the purpose on the east side of Sapangar Island, but the ground rises so abruptly from the shore that it would cost a very large sum to make it available for wharves, stores, &c.

The same remark applies to the shore opposite the anchorage in Sapangar Bay.

But if a naval station were thought of at this place, it would be difficult to defend it against an attack by a well-appointed fleet; it is presumed that against natives no defence would be required.

The principal, and, at present, the only safe channel for large vessels, is between Sapangar and Gaya Islands, a distance of 4,500 yards, and though good sites for batteries present themselves on opposite points, the distance would be increased from battery to battery to at least 5,000 yards, requiring the heaviest guns to command the entrance, and even then, as it is deep all across (17 fathoms), and no hidden dangers exist, either outside or inside the bay at that point, these guns could not prevent an enemy running through by night.

It is too wide for a complete system of submarine mines, or to be closed by any torpedo arrange ments that might be carried, or that could be devised by any such fleet as would have to take refuge in the China seas from superior force.

The channel between Sapangar Island and the mainland is much blocked by islands and reefs. With care, however, a vessel of heavy draught of water might easily pass, so that it would be necessary to defend that channel also.

Though, as stated by a most distinguished naval officer, Gaya Bay is "one of the finest in the world," and the harbour is "capable of holding any amount of shipping," it is not likely to become for many years a place of such commercial importance as to require defences.

The facilities for coaling Her Majesty's vessels could not be readily at present provided, and, even if they could, the works required to secure it against hostile attack would be out of all proportion to the object gained.

* Not printed.

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