Sir Alfred Dent acquired through an agent the concession of the north-west coast of Borneo from the Sultan of Brunei, though with some important exceptions, now in process of being handed over to the Company, as well as the north-east coast, which during the last century had been ceded to England by a Sultan of Sulu, but which we had left unoccupied; all necessary arrangements were made with the government of those islands. These concessions were first worked by a Provisional Association, and were, in 1881, taken over by the newly-formed North Borneo Company on very onerous terms, which, at the present day, it would be useless to criticise, but which left the directors with insufficient working capital to push development with any vigour. It is not necessary to trace in any detail the history of the Company during the last seventeen years. My object being rather to give a general view of its present condition. I may remark, however, to account for its still backward state, that its progress was much impeded by a want of knowledge, on the part of both the chairman and the directors, of the country they were chosen to administer. Within these last few years this defect has been rectified, and we may now confidently expect that progress will be more rapid. The north-east coast of Borneo presents a great contrast to that of the north-west, as the land lies low, but is in general very fertile. As long ago as 1852 we marched through the district of Tungku on Darvel Bay, and could not but admire the splendid crops which covered the earth, and the vigour of the growth of the palms and fruit trees. The principal settlements of the North Borneo Company are Labuan, Padas, Kalias and Sandakan. To Labuan I have already referred. As a centre of native trade it is likely to become important, and Victoria Harbour is often crowded with steamers anxious to secure coal. Its unhealthy stage appears to have passed away; in fact, the whole of North Borneo may be looked upon as fairly healthy, for although on the north-east coast there are many districts where fever is prevalent (an incident common to every tropical country when the jungle is first cut down), yet this malaria disperses in time.