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tensive; situation of contemplated town low; climate healthy, _i.e._, the same as Borneo; soil, as far as seen, sandy or light sandy loam. Coal found near the extreme N.E. point: by native reports it is likewise to be found in many other places; traces of coal are frequent in the sandstone strata. Anchorage not difficult of defense against a European enemy; entrance sufficiently broad and deep between two islands, with a shoal: vide chart. The island of Labuan, for the purposes of refuge for shipwrecked vessels, of a windward post relative to China, for the suppression of piracy, and the extension of our trade, is well suited; it is no paradise, and any other island, with good climate, wood, and water, would suit as well. Its powerful recommendation is its being in the neighborhood of an unwarlike and friendly people. There is no other island on the N.W. coast, and the abandoned Balambangan, to the northward of Borneo, is the only other place which could by possibility answer. The comparison between Balambangan and Labuan may be stated as follows: Balambangan, as a windward post relative to China, is superior, and it commands in time of war the inner passage to Manilla, and the eastern passages to China by the Straits of Makassar. Of its capabilities of defense we know nothing. It was surprised by the Sooloos. Its climate was not well spoken of. The island is larger than that of Labuan, and, as far as we know, has no coal. The great, and to me conclusive consideration against Balambangan is, that it is in the very nest of pirates, and surrounded by warlike and hostile people; and that to render it secure and effective, at least double the force would be necessary there that would suffice at Labuan. If Labuan succeeds and pays its own expenses, we might then take Balambangan; for the next best thing to a location on the main is to influence the people thereon by a succession of insular establishments. Yesterday we made an agreeable excursion to the n.e. point of Labuan; near the point it is picturesque, the cliffs are bold and cave-worn; the trees hang over the cliffs, or encroach on the intermediate sands, till they kiss the wave. Near a small cavern we discovered a seam of coal, which afforded us employment while Captain Bethune and Mr. Wise walked to obtain a view of the southern coast of the island. "_Bruni, 21st May, 1845._--After a longer time passed in Singapore than I wished, we at length started, in the Phleget
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