I have before alluded to the Chinese wandering from our colony of Labuan to settle in small numbers in the districts on the coast to the north of that island. A favourite place was Papar, as the Dusuns there were wealthy, and, being numerous, cared little for their nominal ruler, pañgeran Omar; and among the Chinese settlers were two men, who lived in a small house on the banks of the river. One day, early in the year 1859, the wife of the chief of a neighbouring village was passing that way, when one of these men attempted to pull off her petticoat, which constituted her only covering. Her screams bringing some friends to the spot, the man let her go and ran into his house. In the evening, the chief came to demand satisfaction for this very gross insult, but said, as the offender was a stranger, and perhaps did not know the customs of the country, he should only fine him the value of a goat. The two Chinese ordered him to leave their house, and, to enforce it, took up their carrying-sticks, with which the one who had insulted the woman struck him. The Dusun chief, who had his spear in his hand, stabbed the offender and wounded his companion, who came up to join in the attack. This affair caused great commotion in the district, and all the Chinese clamoured for vengeance. Pañgeran Omar inquired into the case, fined the Dusun, and ordered the amount to be paid over to the dead man’s friends. They were not, however, satisfied with the amount of the fine, and determined to revenge themselves. Collecting a body of about twenty of their countrymen, on the pretence of a pig hunt, they marched to attack the chief’s village; upon which the Dusuns, beating the alarm gong, soon apprised their neighbours that they were in danger; and the Chinese, as usual, arrogant when there was no opposition, but cowards in circumstances of peril, immediately on finding their first volley did not frighten their enemies, fled with precipitation, and were pursued by the Dusuns, and the larger portion of them killed. The case was misrepresented in Labuan, and some demands were made for satisfaction; but it was evident the Chinese had brought this disaster on themselves; and I know of no worse policy than to consider all those, whether British subjects or not, who leave our colony to settle on the coast as entitled to our protection. If we can be of service to them, it is as well to use our influence to insure them the best treatment, but we should never let the Chinese imagine we intend to give them the protection of the British flag on all occasions. Yet it is a subject which requires delicate handling, for, if we entirely abandoned their interests, they would be plundered and massacred; and without them there will never be any progress on the coast, or developement of trade and agriculture on a large scale; and if we claim them as British subjects, which a few are in reality, their insolence to the natives is often unbearable.