The Colony of Labuan, ceded to England in return for assistance against pirates. For similar reasons monopoly of pepper trade granted to the East India Company in 1774. First British connection with Labuan in 1775, on expulsion from Balambangan. Belcher and Brooke visit Brunai, 1844, to enquire into alleged detention of an European female. Offer of cession of Labuan. Rajah Muda Hassim. At Sultan's request, British attack Osman, in Marudu Bay, 1845. Brooke recognised as the Queen's agent in Borneo. Captain Mundy, R.N., under Lord Palmerston's instructions, hoists British flag in Labuan, 24th Dec., 1846. Brooke appointed the first Governor, 1847, being at the same time British representative in Borneo, and independent ruler of Sarawak. His staff of 'Queen's officers'; concluded present treaty with Brunai; ceased to be Governor 1851. Sir Hugh Low, Sir J. Pope Hennessy, Sir Henry Bulwer, Sir Charles Lees. Original expectations of the Colony not realized. Description of the island. The Kadayans. Agriculture, timber, trade. Overshadowed by Singapore, Sarawak, and North Borneo. Writer's suggestion for proclaiming British Protectorate over North Borneo, and assigning to it the Government of Labuan, has been adopted. Population of Labuan. Its coal measures and the failure of successive companies to work them; now being worked by Central Borneo Company (Ltd.). Chinese and natives worked well under Europeans. Revenue and expenditure. Labuan self-supporting since 1860. High-sounding official titles. One officer plays many parts. Labuan celebrated for its fruits, introduced by Sir Hugh Low. Sir Hugh's influence; instance of, when writer was fired on by Sulus. H.M.S. _Frolic_ on a rock. Captain Buckle, R.N. Dr. Treacher's coco-nut plantation. The Church. CHAPTER VII. PAGES 92-103.