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Should, unfortunately, war arise with Russia, there is little doubt their East Asiatic squadron would endeavour both to harass the Australian trade and to damage, as much as possible, the coast towns, in which case the advantages of Sandakan, midway between China and Australia, as a base of operations for the British protecting fleet would at once become manifest.

To conclude my brief sketch of Sandakan Harbour and of the Capital, it should be stated that, in addition to being within easy distance of Hongkong, it lies but little off the usual route of vessels proceeding from China to Australian ports, and can be reached by half a day's deviation of the ordinary track.

These grand caves, which are one of the most interesting sights in the country, are, in fine weather, easily accessible from the town of Sandakan, by a water journey across the harbour and up the Sapa Gaia, of about twelve miles, and by a road from the point of debarkation to the entrance of the lower caves, about eight miles in length.

Sandakan itself straggles up a steep wooded hill, the Chinese and native quarters at its base wallowing amid a network of foul-smelling and incredibly filthy sewers and canals or built on rickety wooden platforms which extend for half a mile or more along the harbor's edge.

The question is one which should be easily settled on the spot, and I recommend it to the consideration of the authorities of the British North Borneo Museum, which has been established at Sandakan. The annual value of the nests of Gomanton, when properly collected, has been reckoned at $23,000, but I consider this an excessive estimate. My friend Mr.

This line of vessels being primarily for freight the "Sandakan" has accommodations for less than twenty first-cabin passengers, and it probably seldom has anything like a full list on this out-of-the-way run from "Zambo" to Singapore. So far as its accommodations go, however, they are excellent, and a pleasanter trip of a week or ten days would be hard to find, in spite of the tropical heat.

It is but fair to say that the first experiment in North Borneo was made by an English, or rather an Anglo-Chinese Company, the China-Sabah Land Farming Company, who, on hurriedly selected land in Sandakan and under the disadvantages which usually attend pioneers in a new country, shipped a crop to England which was pronounced by experts in 1886 to equal in quality the best Sumatra-grown leaf.

In time, no doubt, the Sandakan hills will be used to reclaim more land from the sea, and the town will cease to be an amphibious one. In the East there are, from a sanitary point of view, some points of advantage in having a tide-way passing under the houses. I should add that Sandakan is a creation of the Company's and not a native town taken over by them. When Mr.

Sandakan is the principal trading station in the Company's territory, but with Hongkong only 1,200 miles distant in one direction, Manila 600 miles in another, and Singapore 1,000 miles in a third, North Borneo can never become an emporium for the trade of the surrounding countries and islands, and the Court of Directors must rest content with developing their own local trade and pushing forward, by wise and encouraging regulations, the planting interest, which seems to have already taken firm root in the country and which will prove to be the foundation of its future prosperity.

These Chiefs feared, and with reason, that not only would their importance vanish, but that trade with the inland tribes would be thrown open to all, and slave dealing be put a stop to under the new regime. At Sandakan, the Sultan's former Governor refused to recognise the changed position of affairs, but he had a resolute man to deal with in Mr.