The planting of sago, an indigenous palm, has been much encouraged, and the export of the manufactured flour in 1896 amounted to over 15,000 tons, of a value of about £70,000. A little tea is grown but is not exported. There is no doubt that the Sarawak Government has done much to encourage agriculture, but it has failed as yet to attract European capital. I notice that lately the Borneo Company has commenced to plant gambier. One of the causes of the failure above referred to is, that European capitalists are not tempted by the prospect of having their enterprises under the control of an irresponsible ruler, however just and capable he may be, as all might change on the advent of a successor. But they might reflect that the Borneo Company have been carrying on their business for the last forty years without any difficulties arising. There are millions of acres in the Sarawak territory which are open to European capitalists; hundreds of thousands of acres on the great river of Rejang alone, where water carriage would be at their door, and produce could be shipped direct to Europe, and that is only one out of the many districts awaiting foreign enterprise. It is curious that an agricultural population like that of Sarawak does not grow sufficient rice for its own consumption. In 1896 it had to import of this grain to the value of about £42,000. It is true that only a portion of the population is really industrious—the Chinese and the Seribas and Sakarang Dyaks. The former are otherwise employed, whilst the latter devote much of their energy to the collection of jungle produce. And yet in the district of Samarahan alone sufficient rice might be cultivated to supply the whole country. If we compare the trade returns of Sarawak for the years 1876 and 1896, and take only the dollar value, the increase is striking, but if you turn the amounts into sterling the results are very disappointing. In 1876 the exchange value of the dollar was four shillings, whilst in 1896 it had fallen to two shillings only. This depreciation of silver certainly aids those countries where the dollar and rupee circulate by the great nominal augmentation of the value of their produce, whilst it enhances the price of European goods by a hundred per cent. when paid for in silver. In 1876 Imports from Foreign Countries, £169,000 ” 1896 ” ” 227,000 ” 1876 Imports Coasting Trade, 94,000 ” 1896 ” ” 142,000 ” 1876 Exports to Foreign Countries, 186,000 ” 1896 ” ” 242,000 ” 1876 Exports Coasting Trade, 98,000 ” 1896 ” ” 113,000