Area of British North Borneo exceeds that of Ceylon; points of similarity; styled 'The New Ceylon.' Joseph Hatton's book. Tobacco planters attracted from Sumatra. Coast-line, harbours, stations. Sandakan town and harbour; founded by Mr. Pryer. Destroyed by fire. Formerly used as a blockade station by Germans trading with Sulu. Capture of the blockade runner _Sultana_ by the Spaniards. Rich virgin soil and fever. Owing to propinquity of Hongkong and Singapore, North Borneo cannot become an emporium for eastern trade. Its mineralogical resources not yet ascertained. Gold, coal, and other minerals known to exist. Gold on the Segama river. Rich in timber. 'Billian' or iron-wood; camphor. Timber Companies. On board one of Her Majesty's ships billian proved three times as durable as lignum vitæ. Mangrove forests. Monotony of tropical scenery. Trade--a list of exports. Edible birds'-nests. Description of the great Gomanton birds'-nests caves. Mr Bampfylde. Bats' Guano. Mode of collecting nests. Lady and Miss Brassey visit the Madai caves, 1887. Bêche-de-mer, shark fins, cuttle fish. Position of Sandakan on the route between Australia and China--importance as a possible naval station. Shipping. Postal arrangements. Coinage. Currency. Banking. Probable cable station. CHAPTER IX. PAGES 117-127. Importance of the territory as a field for the cultivation of the fine tobacco used for 'wrappers.' Profits of Sumatra Tobacco Companies. Climate and Soil. Rainfall. Seasons. Dr. Walker. The sacred mountain, Kina-balu. Description of tobacco cultivation. Chinese the most suitable labour for tobacco; difficulty in procuring sufficient coolies. Count Geloes d'Elsloo. Coolies protected by Government. Terms on which land can be acquired. Tobacco export duty. Tobacco grown and universally consumed by the natives. Fibre plants. Government experimental garden. Sappan-wood. Cotton flock. CHAPTER X. PAGES 127-147.