The intermediate rivers which were not included in the Sultan's cession belonged to Chiefs of the blood royal, and the Sultan was unwilling to order them to be ceded, but in 1883 Resident DAVIES procured the cession from one of these Chiefs of the Pangalat River for an annual payment of $300, and subsequently the Putalan River was acquired for $1,000 per annum, and the Kawang River and the Mantanani Islands for lump sums of $1,300 and $350 respectively. In 1884, after prolonged negotiations, I was also enabled to obtain the cession of an important Province on the West Coast, to the South of the original boundary, to which the name of Dent Province has been given, and which includes the Padas and Kalias Rivers, and in the same deed of cession were also included two rivers which had been excepted in the first grant--the Tawaran and the Bangawan. The annual tribute under this cession is $3,100. The principal rivers within the Company's boundaries still unleased are the Kwala Lama, Membakut, Inanam and Menkabong. For fiscal reasons, and for the better prevention of the smuggling of arms and ammunition for sale to head-hunting tribes, it is very desirable that the Government of these remaining independent rivers should be acquired by the Company. On the completion of the negotiations with the two Sultans, Baron VON OVERBECK, who was shortly afterwards joined by Mr. DENT, hoisted his flag--the house flag of Mr. DENT'S firm--at Sandakan, on the East Coast, and at Tampassuk and Pappar on the West, leaving at each a European, with a few so-called Police to represent the new Government, agents from the Sultans of Sulu and Brunai accompanying him to notify to the people that the supreme power had been transferred to Europeans. The common people heard the announcement with their usual apathy, but the officer left in charge had a difficult part to play with the headmen who, in the absence of any strong central Government, had practically usurped the functions of Government in many of the rivers. 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. W. B. PRYER, and before he could do much harm, he lost his life by the capsizing of his prahu while on a trading voyage.