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 both in Dutch Borneo and in the territory owned by the British North Borneo Company, are still only nominally under European control, and have experienced few direct effects of European administration.

Sabah is the name applied by the natives to certain portions of the territory situated on the north-western coast of the island, and originally in no way included the remainder of the country now owned by the British North Borneo Company. It has become customary, however, for the name to be used by Europeans in Borneo to denote the whole of the company’s territory, and little by little the more educated natives are insensibly adopting the practice.

History.—As has been seen, the British connexion with northern and north-western Borneo terminated with the 18th century, nor was it resumed until 1838, when Raja Brooke set out for Brunei and Sarawak. The island of (q.v.) was occupied by the British as a crown colony in 1848, and this may be taken as the starting-point of renewed British relations with that portion of northern Borneo which is situated to the north of Brunei. In 1872 the Labuan Trading Company was established in Sandakan, the fine harbour on the northern coast which was subsequently the capital of the North Borneo Company’s territory. In 1878, through the instrumentality of Mr (afterwards Sir) Alfred Dent, the sultan of Sulu was induced to transfer to a syndicate, formed by Baron Overbeck and Mr Dent, all his rights in North Borneo, of which, as has been seen, he had been from time immemorial the overlord. The chief promoters of this syndicate were Sir Rutherford Alcock, Admiral the Hon. Sir Harry Keppel, who at an earlier stage of his career had rendered great assistance to the first raja of Sarawak in the suppression of piracy, and Mr Richard B. Martin. Early in 1881 the British North Borneo Provisional Association, Limited, was formed to take over the concession which had been obtained from the sultan of Sulu, and in November of that year a petition was addressed to Queen Victoria praying for a royal charter. This was granted, and subsequently the British North Borneo Company, which was formed in May 1882, took over, in spite of some diplomatic protests on the part of the Dutch and Spanish governments, all the sovereign and territorial rights ceded by the original grants, and proceeded under its charter to organize the administration of the territory. The company subsequently acquired further sovereign and territorial rights from the sultan of Brunei and his chiefs in addition to some which had already been obtained at the time of the formation of the company. The Putatan river was ceded in May 1884, the Padas district, including the Padas and Kalias rivers, in November of the same year, the Kawang river in February 1885, and the Mantanani islands in April 1885. In 1888, by an agreement with the “State of North Borneo,” the territory of the company was made a British protectorate, but its administration remained entirely in the hands of the company, the crown reserving only control of its foreign relations, and the appointment of its governors being required to receive the formal sanction of the secretary of state for the colonies. In 1890 the British government placed the colony of Labuan under the administration of the company, the governor of the state of North Borneo thereafter holding a royal commission as governor of Labuan in addition to his commission from the company. This arrangement held good until 1905, when, in answer to the frequently and strongly expressed desire of the colonists, Labuan was removed from the jurisdiction of the company and attached to the colony of the Straits Settlements. In March 1898 arrangements were made whereby the sultan of Brunei ceded to the company all his sovereign and territorial rights to the districts situated to the north of the Padas river which up to that time had been retained by him. This had the effect of rounding off the company’s territories, and had the additional advantage of doing away with the various no-man’s lands which had long been used by the discontented among the natives as so many Caves of Adullam. The company’s acquisition of territory was viewed with considerable dissatisfaction by many of the natives, and this found expression in frequent acts of violence. The most noted and the most successful of the native leaders was a Bajau named Mat Saleh (Mahomet Saleh), who for many years defied the company, whose policy in his regard was marked by considerable weakness and vacillation. In 1898 a composition was made with him, the terms of which were unfortunately not defined with sufficient clearness, and he retired into the Tambunan country, to the east of the range which runs parallel with the west coast, where for a period he lorded it unchecked over the Dusun tribes of the valley. In 1899 it was found necessary to expel him, since his acts of aggression and defiance were no longer endurable. A short, and this time a successful campaign followed, resulting, on the 31st of January 1900, in the death of Mat Saleh, and the destruction of his defences. Some of his followers who escaped raided the town of Kudat on Marudu Bay in April of the same year, but caused more panic than damage, and little by little during the next years the last smouldering embers of rebellion were extinguished. At the present time, though effective administration of the more inaccessible districts of the interior cannot be said to have been established even yet, the pacification of the native population is to all intents and purposes complete. The Tambunan district, the last stronghold of Mat Saleh, is now thoroughly settled. It is some 500 sq. m. in extent, and carries a population of perhaps 12,000.

Geography.—The state of North Borneo may roughly be said to form a pentagon of which three sides, the north-west, north-east and east are washed by the sea, while the remaining two sides, the south-west and the south, are bordered respectively by the Malayan sultanate of Brunei, and by the territories of the raja of Sarawak and of the Dutch government. The boundary between the company’s territory and the Dutch government is defined by the treaty concluded in June 1891, of which mention has already been made.

The total area of the company’s territory is estimated at about 31,000 sq. m., with a coast-line of over 900 m. The greater portion is exceedingly hilly and in parts mountainous, and the interior consists almost entirely of highlands with here and there open valleys and plateaus of 50 to 60 sq. m. in extent. On the west coast the mountain range, as already noted, runs parallel with the seashore at a distance from it of about 15 m. Of this range the central feature is the mountain of Kinabalu, which is composed of porphyritic granite and igneous rocks and attains to a height of 13,698 ft. Mount Madalon, some 15 or 20 m. to the north, is 5000 ft. in height, and inland across the valley of the Pagalan river, which runs through the Tambunan country and falls into the Padas, rises the peak of Trus Madi, estimated to be 11,000 ft. above sea-level. The valley of the Pagalan is itself for the most part from 1000 to 2000 ft. above the sea, forming a string of small plateaus marking the sites of former lakes. From the base of Trus Madi to the eastern coast the country consists of huddled hills broken here and there by regions of a more mountainous character. The principal plateaus are in the Tambunan and Kaningau valleys, in the basin of the Pagalan, and the Ranau plain to the eastward of the base of Kinabalu. Similar plateaus of minor importance are to be found dotted about the interior. The proximity of the mountain range to the seashore causes the rivers of the west coast, with the single exception of the Padas, to be rapid, boulder-obstructed, shallow streams of little value as means of communication for a distance of more than half a dozen miles from their mouths. The Padas is navigable for light-draught steam-launches and native boats for a distance of nearly 50 m. from its mouth, and smaller craft can be punted up as far as Rayoh, some 15 m. farther, but at this point its bed is obstructed by impassable falls and rapids, which are of such a character that nothing can even be brought down them. Even below Rayoh navigation is rendered difficult and occasionally dangerous by similar obstructions. The other principal rivers of the west coast are the Kalias, Kimanis, Benoneh, Papar, Kinarut, Putatan, Inaman, Mengkabong, Tampasuk and Pandasan, none of which, however, is of any great importance as a means of communication. There is a stout breed of pony