otest, as they claimed the
suzerainty over the Sulu Archipelago and the Sulu Dependencies in Borneo
and the islands. This claim the Spaniards always persisted in, until, on
the 7th March, 1885, a Protocol was entered into by England and Germany
and Spain, whereby Spanish supremacy over the Sulu Archipelago was
recognised on condition of their abandoning all claim to the portions of
Northern Borneo which are now included in the British North Borneo
Company's concessions.

In November, 1768, the Court of Directors in London, with the approval
of Her Majesty's Ministers, who promised to afford protection to the new
Colony, issued orders to the authorities at Bombay for the establishment
of a settlement at Balambangan with the intention of diverting to it the
China trade, of drawing to it the produce of the adjoining countries,
and of opening a port for the introduction of spices, etc. by the Bugis,
and for the sale of Indian commodities. The actual date of the
foundation of the settlement is not known, but Mr. F. C. DANVERS states
that in 1771 the Court ordered that the Government should be vested in
"a chief and two other persons of Council," and that the earliest
proceedings extant are dated Sulu, 1773, and relate to a broil in the
streets between Mr. ALCOCK, the second in the Council, and the Surgeon
of the _Britannia_.

This was a somewhat unpropitious commencement, and in 1774 the Court are
found writing to Madras, to which Balambangan was subordinate,
complaining of the "imprudent management and profuse conduct" of the
Chief and Council.

In February, 1775, Sulu pirates surprised the stockade, and drove out
the settlers, capturing booty valued at about a million dollars. The
Company's officials then proceeded to the island of Labuan, now a
British Crown Colony, and established a factory, which was maintained
but for a short time, at Brunai itself. In 1803 Balambangan was again
occupied, but as no commercial advantage accrued, it was abandoned in
the following year, and so ended all attempts on the part of the East
India Company to establish a Colony in Borneo.

While at Balambangan, the officers, in 1774, entered into negotiations
with the Sultan of Brunai, and on undertaking to protect him against
Sulu and Mindanau pirates, acquired the exclusive trade in all the
pepper grown in his country.

The settlement of Singapore, the present capital of the Straits
Settlements, by Sir STAMFORD RAFFLES, under the orders