operation is soon found out, as it imparts to the article a greenish tinge. The damar trees in Labuan are remarkably fine. I have seen one measured one hundred and twenty feet to the first branch, and eighteen feet in circumference above twenty feet from the ground. Labuan is also stocked with excellent trees for spars. I may add that petroleum is found in considerable quantities floating on the surface of water in the jungle; but I think no examination has been made as to the probable yield of these oil-springs. Before concluding my observations on Labuan, I may remark it possesses a very excellent harbour, of easy approach. The great success of our colony will depend, however, on its yield of coal. The coal-fields of Borneo are as extensive as the island. It is reported in Maludu Bay; found in Gaya Island; is everywhere discoverable on the mainland opposite Labuan; has been traced in Baram, in Bintulu, through the Sarawak districts to Banjermasin on the southern coast. They must some day prove of the greatest importance. Continuing my notice of the capital, I may explain that the whole direct revenue of the sultan does not exceed 2,500_l._ a year, except what he may obtain in produce from his dependent tribes, which scarcely supports the current expenses of his household. The Brunei government possesses no armed force beyond the power of calling out the population as militia, who rarely respond to the call, as they are neither fed nor paid during their time of service, and are generally required to perform acts repugnant to their real interests. It possesses neither war boats nor police, and is incapable of organizing an expedition to attack a neighbouring district, and is, without exception, one of the most contemptible semblances of power that ever existed. As I have said before, it has the name of government, but not the reality. Crime is unpunished, if committed by a relative or a follower of a high noble, as no one will act against him for fear of the enmity of his chief. There is a man in Brunei, named Sirudin Buñgkul, who is the most notorious thief in the capital. He lives in very good style on the result of his achievements, and is admitted into the best society. He is never punished, as he is a follower of the chief minister, the pañgeran bandhara. He appears to be clever, as he manages to quiet the dogs, and has never been taken in the act of robbery; in fact, few would dare to attempt to seize a man naked to the waist, well oiled, and carrying a drawn kris in his hand. When in want of funds, he makes a visit to the different shops to inspect; he is always treated with a kind of familiar deference, and the Chinese are kept in a state of nervousness till his _coup_ has come off. Petty thefts are common, but few extensive robberies; and yet it is not difficult to get into leaf-houses, particularly of the Chinese, who sleep heavily after their opium and spirits.