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Appendix No. 4.

NORTH BORNEO.

see Chart No. 2.*

See Chart No. 8,*

296

KOUDAT HARBOUR.

This harbour, which is not as yet shown on any of the Admiralty charts, and was only brought to the notice of the authorities about two years ago by Commander Johnson, of Her Majesty's ship "Egeria," is in about 6° 50′ north latitude and 116° 50′ east longitude, and situated on the west shore of Maludu Bay on the north coast of Borneo, about 165 miles from Labuan.

The harbour extends inland from between the points forming the entrance about three miles, but the head waters are very shallow, and only for a mile of width is there a depth of water of 5 fathoms, though, on account of a sandy spit extending for nearly a mile from the north shore, and a reef half-a-mile on the southern side, a large extra amount of available secure space for anchoring is obtained. The harbour, though small, is well sheltered from all winds, and the deep-water anchorage is about equal in extent to that of Victoria Harbour, Labuan, viz., about 500 acres.

There would appear to be no inhabitants on the harbour itself, though there are, it would appear, a considerable number at the upper part of Maludu Bay, and in the interior.

The North Borneo Company are about to form a station on the north shore, about half-a-mile from the entrance, where there is 15 feet of water within a few yards of the shore, and a considerable extent of level ground, some of which is clear of underwood, and thinly timbered, where a very convenient site for building can be obtained. It has also the advantage of a creek running a short way inland, and

suitable for native boats.

The place is well suited for a coaling station. Wharves of moderate size could easily be con- structed, alongside which vessels such as those of the size of Her Majesty's ship "Lily," or even Her Majesty's ship "Daring," could lie.

There have been found good indications of coal in the neighbourhood, as also further down Maludu Bay, and now that the Company is going to establish themselves there, it is to be hoped that further researches may be made.

Although the Settlement, for defensive purposes, is too near the entrance to the harbour, the existence of the northern spit and southern reef before referred to would prevent vessels manoeuvring outside within 2,500 yards for the purpose of bombardment, and batteries on the points north and south, where (though the ground in the former position is rather low, being but a few feet above the level of the sea) good positions for batteries can be obtained.

It would be well, I think, if the Company were requested to reserve the necessary sites at both places.

On the south side there would be no difficulty, as the land is never likely to be required for other purposes, and on the north side a sufficient space for, say, five heavy guns, could be easily reserved without detriment to the commercial or other requirements of the place.

In the joint Report by Commander Carey and myself on the defences of Labuan, dated the 19th December last, a short reference was made to the geographical position of Koudat.

The most of the ships on the China station cannot carry enough coal to take them the whole way from Singapore to Hong Kong during the north-east monsoon. They have therefore to take in a supply of coal at Labuan.

This distance from Singapore to Hong Kong is, by the Paliwan route, 1,950 miles. From Singapore to Labuan is 740 miles; from Labuan to Hong Kong 1,210 miles.

The distance from Singapore to Koudat is about 905 miles, and as the passage to Hong Kong would be lengthened by about 90 miles by going into Maludu Bay, the distance from Singapore to Koudat is 950 miles, and from Koudat to Hong Kong 1,090 miles.

This makes a more equal division of the passage, and the position of Koudat as a strategical point in the China Seas would appear to be preferable to any other point on the west coast.

It is favourably placed for commanding the Balabac Straits, and is within easy sail of the Sulu

Sea, and is near the line of the track of vessels passing between Australia and China.

If coal of good quality were found in any quantity, accessible to the sea near Koudat, it would be for consideration whether, supposing another coaling station for Her Majesty's fleet be deemed necessary in these waters, Koudat should not be chosen in preference to Labuan.

SANDAKAN BAY.

Sandakan Bay is on the north-east coast, situated in about 5° 40′ north latitude and 118° east longitude, and is about 340 miles from Labuan by sea, and 1,090 miles from Singapore.

This bay, or rather inlet of the sea, runs inland to the south-west for a distance of upwards of 15 miles, and to the south about 20 miles.

Although covered to a considerable extent by reefs and mud flats, the latter of which have, it may be stated, much altered in shape and depth since the chart attached was prepared (more than 100 years ago), it still affords, in addition to the main anchorage near the entrance, three or four secure and land- locked harbours of considerable extent.

As many as thirteen rivers, navigable by boats, empty themselves into the bay, and the banks of these rivers in the interior are said to be peopled to some small extent.

On the bay itself, away from the Company's post, are only three villages-two very small, one of four, and another of about a dozen houses—and a larger one, which I did not visit, containing, it is said, about 200 people.

The shores of the bay, and of the islands in it, are generally covered with thick jungle to the water's edge. In some places, where the ground is low, dense mangrove swamps run out from the

Where the ground is drier there are groves of casnarina and palm-trees.

shore.

The North Borneo Company's post, which was formerly in the western bay of the inlet (see Chart No. 3*), but is now situated in a more convenient position near the entrance from seaward,

* Not printed.

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