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Lord PALMERSTON, to take possession of Labuan, and Captain RODNEY MUNDY was selected for this service. He arrived in Brunai in December, and gives an amusing account of how he proceeded to carry out his orders and obtain the _voluntary_ cession of the island. As a preliminary, he sent "Lieutenant LITTLE in charge of the boats of the _Iris_ and _Wolf_, armed with twenty marines, to the capital, with orders to moor them in line of battle opposite the Sultan's palace, and to await my arrival." On reaching the palace, Captain MUNDY produced a brief document, to which he requested the Sultan to affix his seal, and which provided for eternal friendship between the two countries, and for the cession of Labuan, in consideration of which the Queen engaged to use her best endeavours to suppress piracy and protect lawful commerce. The document of 1844 had stated that Labuan would be ceded "on such terms as may hereafter be arranged," and a promise to suppress piracy, the profits in which were shared by the Sultan and his nobles, was by no means regarded by them as a fair set off; it was a condition with which they would have readily dispensed. The Sultan ventured to remark that the present treaty was different to the previous one, and that a money payment was required in exchange for the cession of territory. Captain MUNDY replied that the former treaty had been broken when Her Majesty's Ships were fired on by the Brunai forts, and "at last I turned to the Sultan, and exclaimed firmly, 'Bobo chop bobo chop!' followed up by a few other Malay words, the tenor of which was, that I recommended His Majesty to put his seal forthwith." And he did so. Captain MUNDY hoisted the British Flag at Labuan on the 24th December, 1846, and there still exists at Labuan in the place where it was erected by the gallant Captain, a granite slab, with an inscription recording the fact of the formal taking possession of the island in Her Majesty's name. In the following year, Sir JAMES BROOKE was appointed the first Governor of the new Colony, retaining his position as the British representative in Brunai, and being also the ruler of Sarawak, the independence of which was not formally recognised by the English Government until the year 1863. Sir JAMES was assisted at Labuan by a Lieutenant-Governor and staff of European Officers, who on their way through Singapore are said to have somewhat offended the susceptibilities of the Officials of that Settlemen
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