_a._ The States of the Sultan of Brunai or Borneo Proper; * * * * * * _b._ The State of the Sultan of the Sulu Islands, having for boundaries on the West, the River Kimanis, the North and North-East Coasts as far as 3° N.L., where it is bounded by the River Atas, forming the extreme frontier towards the North with the State of Berow dependant on the Netherlands. _c._ All the islands of the Northern Coasts of Borneo." Knowing this, Mr. ALFRED DENT put the limit of his cession from Sulu at the Sibuku River, the South bank of which is in N. Lat. 4° 5'; but towards the end of 1879, that is, long after the date of the cession, the Dutch hoisted their flag at Batu Tinagat in N. Lat. 4° 19', thereby claiming the Sibuko and other rivers ceded by the Sultan of Sulu to the British Company. The dispute is still under consideration by our Foreign Office, but in September, 1883, in order to practically assert the Company's claims, I, as their Governor, had a very pleasant trip in a very small steam launch and steaming at full speed past two Dutch gun-boats at anchor, landed at the South bank of the Sibuko, temporarily hoisted the North Borneo flag, fired a _feu-de-joie_, blazed a tree, and returning, exchanged visits with the Dutch gun-boats, and entertained the Dutch Controlleur at dinner. Having carefully given the Commander of one of the gun-boats the exact bearings of the blazed tree, he proceeded in hot haste to the spot, and, I believe, exterminated the said tree. The Dutch Government complained of our having violated Netherlands territory, and matters then resumed their usual course, the Dutch station at Batu Tinagat, or rather at the Tawas River, being maintained unto this day. As is hereafter explained, the cession of coast line from the Sultan of Brunai was not a continuous one, there being breaks on the West Coast in the case of a few rivers which were not included. The annual tribute to be paid to the Sultan was fixed at $12,000, and to the Pangeran Tumonggong $3,000--extravagantly large sums when it is considered that His Highness' revenue per annum from the larger portion of the territory ceded was _nil_. In March, 1881, through negotiations conducted by Mr. A. H. EVERETT, these sums were reduced to more reasonable proportions, namely, $5,000 in the case of the Sultan, and $2,500 in that of the Tumonggong.