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The State of North Borneo 1881–1946

Published online by Cambridge University Press:  23 March 2011

George McT. Kahin
George McT. Kahin
Affiliation:
The Johns Hopkins University
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Extract

Until June 26, 1946, the ihabitants of the State of North Borneo could claim the distinction of being the only population in the world still, subject to chartered company rule. On that date an area of nearly 30,000 square miles inhabited by over 300,000 people ceased to be governed by the British North Borneo Chartered Company and became a British Crown Colony. Not only was the British North Borneo Chartered Company the last of the chartered companies to survive, but it was distinct in character from its predecessors. It is the purpose of this article to describe within the limits of available information the unique political and economic pattern developed by the Company in North Borneo.

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Articles
Information
The Journal of Asian Studies , Volume 7 , Issue 1 , November 1947 , pp. 43 - 65
Copyright
Copyright © The Association for Asian Studies, Inc. 1947

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References

1 Britain, Great, Accounts and papers, LXXXI, 1882 (C. 3108)Google Scholar, “Papers relating to the affairs of Sulu and Borneo and to the grant of a charter of incorporation to the British North Borneo Company,” part I, Correspondence respecting the claims of Spain, p. 191.

2 Britain's confirmation of this grant was immediately challenged by Spain and the Netherlands, which both insisted that they had valid claims to this area. Britain countered these assertions by emphasizing her own rights. The treaty of 1761 between the East India Company and the Sultan of Sulu had given the British wide trading rights (article VI), extraterritorial jurisdiction (article II), and the right to purchase and develop land (articles I and V). These rights had been reaffirmed by a treaty in 1849, and similar rights had been granted in a treaty in 1845 with the Sultan of Brunei (Ibid., pp. 205–17).

3 Ibid., pp. 192–94.

4 Ibid., p. 194.

5 Labuan, a small island at the mouth of Brunei bay, important because of coal mines and its use as a coaling station, had become a Crown Colony in 1848. It was administered by the Company until 1905 at which time its administration was transferred to the Straits Settlements.

6 Sections 1, 2, and 15 of the charter, Ibid., pp. 196–98.

7 Section 17, Ibid., p. 198.

8 Sections 7, 8, 9, Ibid., pp. 196–97.

9 Sections 4, 5, Ibid., p. 196.

10 Section 13, Ibid., p. 197.

11 Section 11, Ibid., p. 197.

12 Section 16, Ibid., p. 198.

13 Proceedings of the Royal Colonial Institute, 16 (1884–1885), 294–95.Google Scholar

14 Great Britain, Accounts and papers, LXXIII, 1888 (C. 56I7), “Papers relating to North Borneo,” p. 4.

15 Great Britain, Accounts and papers, LXXXI, 1882 (C. 3108), pp. 125–205; Great Britain, Accounts and papers, LXXXI, 1882 (C. 3109), part II, Correspondence respecting the claims of Holland, esp. pp. 24–26, 41–43.

16 Great Britain. Accounts and papers, LXXIII, 1888(C. 5617). p. 4. Italics mine.

17 This occurred in 1919 and 1920 when the Anti-Slavery and Aborigines Protective Society pressed allegations against the Company to the Colonial Office, charging ill-treatment of natives and Chinese coolie labor, debt-slavery, and seizure of native lands without adequate compensation. The Colonial Office, was, however, content to base its judgment as to the validity of these claims on the report of the President of the Company's Court of Directors who, regardless of the facts, was not likely to report unfavorably on the actions of his own organization. Upon the basis of this report the Secretary of State replied to the Society that the evidence which they adduced in their allegations would not justify the Crown's interference in the Company's administration of North Borneo (Great Britain, Accounts and Papers, XXXIII, 1920 [Cmd. 1060], “Correspondence on the subject of allegation against the administration of the British North Borneo Company,” pp. 3–25).

18 G.N. (government notification) 281 of 1912, sections 3–5, State of North Borneo, Ordinances and rules of the State of North Borneo, 1881–1936 (Revised ed., Sandakan, 1937). NOTE. Unless otherwise stated, all ordinances, rules, and government notifications (G.N.) cited in this paper may be found in this official compilation, where they are listed in chronological order. All those referred to have been checked against the Official gazette of the State of North Borneo through 1939 and unless so indicated were found to remain unchanged. Subsequent issues of the Gazette not being available, it was impossible to check against the years 1940 and 1941.

19 Ibid., sections 2, 7; “The Legislative Council ordinance, 1912” (ordinance 1 of 1912). section 3.

20 “The Legislative Council ordinance, 1912,” section 3.

21 C.N. 281 of 1912, section 6.

22 British North Borneo (Chartered) Company, Handbook of the State of North Borneo (London, 1934), 45Google Scholar(This was the last Handbook issued.) The four residencies were Sandakan, West Coast, Interior, and Tuwau.

23 “Britain's newest colony in the Far East,” The Crown colonist (Sept., 1946), 629.Google Scholar

24 Handbook, p. 45.

25 State of North Borneo, Official gazette (April 4, 1939), Notification nos. 125, 126.

26 Handbook, p. 43.

27 “The village administration ordinance, 1913” (ordinance 5 of 1913), sections 2, 9; “The poll tax ordinance, 1902” (ordinance 9 of 1902).

28 “The village administration ordinance, 1913,” section 11.

29 Handbook, p. 46. The last regular census, that of 1931, gave a total population of 270,000 of which nearly 48,000 were Chinese.

30 State of North Borneo, Administration report, 1938 (Sandakan: Government Printing Office, 1939), 31; Handbook, pp. 38, 39, 46.

31 Proclamation of 1881, Handbook, p. 130.

32 Administration report, 1938, p. 18.

33 Handbook, p. 43.

34 “The procedure ordinance, 1914” (ordinance 18 of 1914).

35 “The village administration ordinance, 1913,” section 10 (II). In Moslem areas the Iman or Kadi of the district was deemed to be a Chief for the purposes of this ordinance.

36 Ibid.; State of North Borneo, Official gazette (Sandakan, 1937), “The native administration ordinance, 1937” (ordinance 2 of 1937), sections 18, 20 (This supplemented but did not supersede the 1913 ordinance).

37 G.N. 112 of 1917. The Straits dollar on the average equaled approximately 50 per cent of the U. S. dollar.

38 “The village administration ordinance, 1913,” sections 4, 11.

39 There were only two important exceptions to this. The first was the North Borneo State Rubber Company in which the Chartered Company held the controlling interest. Its original capitalization of £150,000 was reduced to £62,500 in 1931 (Handbook, p. 5). The second exception was the government's monopoly of opium sales (“The opium and chandu ordinance, 1927 [ordinance 4 of 1927]).

40 Despite the antimonopoly provisions in its charter, the Royal Niger Company obtained a virtual monopoly of external trade in its area. It was the complaints of rival British and foreign traders that were in large measure responsible for the abrogation of its charter (Hailey, Lord, An African survey, a study of problems arising in Africa south of the Sahara [London: Oxford University Press, 1938], 1397–98Google Scholar).

41 Treacher, W. H., British Borneo (Singapore, 1891), 128–29.Google Scholar

42 Administration report, 1938, p. 33.

43 Ibid., p. 33.

44 Royal Institute of International Affairs, Problems of post-war settlement in the Far East, E–Borneo, Sarawak, and Brunei, Interim report (mimeographed) (London: Chatham House, 1942), 5. Dividends of 2¾ per cent and 1½ per cent were paid in 1923 and 1928 respectively. No dividends were paid in 1924–27 and 1929–36 (Ibid..).

45 SirMalcolm, Neil, “North Borneo, past and future,” United empire (Sept.-Oct., 1944), 165.Google Scholar

46 Royal Institute of International Affairs, op. cit., p. 5.Google Scholar

47 The sale of opium except on medical certificate was to have been abolished in 1950 (Malcolm, , op. cit., p. 165Google Scholar).

48 The Straits, or Singapore, dollar, equaled on the average approximately 50 per cent of a U. S. dollar. The State of North Borneo issued its own treasury notes and coinage, the unit of currency being the Straits dollar.

49 Administration report, 1938, p. 2.

50 Ibid., p. 3.

51 Ibid., p. 4.

52 Administration report, 1938, pp. 11, 33.

53 Ibid., p. 11.

54 Handbook, p. 38; British Information Services (ID. 605), British territories in Borneo, 1945, p. 4. Population was estimated at 304,000 in 1939 (Ibid., p. 2) and at 67,062 in 1890 (Administration report, 1938, p. 33).

55 U. S. Department of Commerce, Report on the British North Borneo rubber industry (Singapore, July 16, 1946), prepared by E. G. Holt, Rubber Adviser (Washington: U. S. Government Printing Office, [1946]), 1.

56 Administration report, 1938, p. 11; “Britain's newest colony in the Far East.” The crown colonist (Sept. 1916). 629.Google Scholar

57 “The land ordinance, 1930” (ordinance 9 of 1930).

58 Ibid.. In 1938, land rent revenues yielded the government Sts.S352,812 (Administration report, 1938. p. 28.

59 Handbook, p. 92.

60 Administration report, 1938, p. 32. Free passage arrivals numbered 493 in 1937 and 345 in 1938. However, in 1928, when the labor supply was less adequate, a total of 1,187 Chinese entered the state under the free-passage system at a total cost to the government of Sts.$22,105 (State of North Borneo, Administration report, 1928 [Sandakan: Government Printing Office, 1929], 22Google Scholar).

61 Administration report, 1938, p. 4. This was an increase of almost 20,000 acres over 1928 (Administration report 1928, p. 6). An acreage of 53,029 acres was planted in coconuts, 14,023 in sago, 4,812 in Manila hemp, and 416 in tobacco, in 1938.

62 Ordinance 8 of 1915, “The pawnbrokers ordinance, 1915,” schedule, section 8; Official gazette, April 4, 1939.

63 Administration report, 1938, p. 28.

64 “The land ordinance, 1930 (ordinance 9 of 1930), sect. 135–39. See Official gazette. May 18, 1939.

65 All the land which was not claimed or to which the claim had been rejected by the government was held to be government property. “The land ordinance, 1930,” (ordinance 9 of 1930), section 84.

66 Ibid., section 66.

67 G.N. 505 of 1930, section 5.

68 Administration report, 1938, p. 16.

69 “The ladang ordinance, 1913,” (ordinance 6 of 1913), articles 5, 6.

70 Treacher, , op. cit., p. 148.Google Scholar

71 Computed from figures appearing in Administration report, 1928, p. 20, and Administration report, 1930, p. 23. The figures for natives in these years included a few Malays from outside North Borneo.

72 At least not up until 1939, though the government was apparently anticipating use of Javanese contract labor under agreement with the N.E.I, government again in the future. See “Javanese immigrant labour regulations, 1939,” G.N. 368, Official gazette, Oct. 4, 1939.

73 State of North Borneo, Administration report, 1937 (Sandakan: Government Printing Office, 1938), 30Google Scholar. Out of the 46 enterprises employing 20 or more laborers in 1933, 36 were devoted to estate agriculture and 5 to timber cutting (State of North Borneo, Annual report. 1933 [Sandakan, 1934], 32Google Scholar).

74 Administration report, 1938, p. 30.

75 Ibid., p. 32. “Chinese immigrants” included Chinese from both China and Singapore.

76 Aside from the officer known as Protector of Labour, all Residents and District Officers as well as those Assistant District Officers so appointed by a Resident were made exofficio Assistant Protectors of Labour (G.N. 353 of 1936).

77 Official gazette, 1937, notification no. 303, “The labour (amendment) ordinance, 1937,” section 77.

78 “The decrepit and destitute aliens ordinance, 1915,” (ordinance 1 of 1915).

79 G.N. 182 of 1932; Administration report, 1938, p. 32.

80 “The naturalisation ordinance, 1931” (ordinance 1 of 1931); G.N. 34 of 1932. In 1938, 116 “destitute” were repatriated–81 to Hongkong, 20 to Malaya, and 15 to Java. Seventy three of this number were repatriated at the expense of the government's pauper fund (Administration report, 1938. p. 31).

81 “The labour ordinance. 1936” (ordinance 1 of 1936); G.N. 353 of 1936; Official gazette, 1937, notification no. 303, “The labour (amendment) ordinance, 1937.”

82 “The labour ordinance, 1936” (ordinance 1 of 1936), section 46.

83 Ibid., section 51.

84 Administration report, 1938, p. 30. These figures are based on the average labor force strength as calculated from the quarterly labor returns. It is, of course, possible that these were abnormal years.

85 “The societies ordinance, 1915” (ordinance 7 of 1915).

86 Administration report, 1938, p. 21.

87 British Information Services (ID. 605), British territories in Borneo, 1945, p. 4.

88 Administration report, 1938, p. 20.

89 Ibid., p. 24; The Crown colonist (Sept. 26, 1946), 629.

90 Administration report, 1938, pp. 26, S, 4.

91 “The school book ordinance, 1931” (ordinance 4 of 1931), section 2.

92 Ibid., section 3.

93 Official gazette, 1935, notification no. 340. See also notification 41 and 90 (1934), 34 (1933), and 331 (1932).

Apparently all of these books were printed in China, mostly in Shanghai. It is difficult to ascertain from their titles alone whether or not the “dangerous thoughts” they contained were of a purely nationalistic character, or whether they might have tended to upset the social and economic status quo in North Borneo.

94 The times (London), July 16, 1946; Washington post (A.P.), Nov. 3, 1946; Smelt, W. A. Casterton, “The State of North Borneo,” Asiatic review (Jan. 1947), 83.Google Scholar

95 Smelt, , op. cit., pp. 83–84.Google Scholar

96 The times (London), July II, 1946.

97 Royal Institute of International Allairs, Problems of post-war settlement in the Far East, E–Borneo, Sarawak, and Brunei, Interim report (mimeographed) (London: Chatham House, 1942), 5.Google Scholar

98 The times (London), July 11, 1946.

99 Agreement for the transfer of the Borneo sovereign rights and assets from the British North Borneo Company to the Crown, 26th June, 1946, Colonial no. 202 (London: His Majesty's Stationery Office, 1946).

100 Administration report, 1938, p. 33.

101 Derived from figures appearing in Royal Institute of International Affairs, op. cit., p. 5, and SirMalcolm, Neil, “North Borneo, past and future,” United empire (Sept.-Oct., 1944). 165.Google Scholar

102 The straits times (Singapore), Sept. 14, 1946.

103 U. S. Department of Commerce, Report on the British Borneo rubber industry, prepared by E. G. Holt, Rubber Advisor (Washington: U. S. Government Printing Office, 1946), 4–7.Google Scholar

104 Britain, Great, Parliamentary debates (Hansard., 5th series), vol. 424 (June 19, 1946), p. 178.Google Scholar

105 The straits times, Nov. 16, 1946.

106 “Britain's newest colony in the Far East,” Crown colonist (Sept. 1946), 629.Google Scholar

107 Britain, Great, Statement of policy on future constitution–Malayan Union and Singapore (Cmd. 6724) (London: His Majesty's Stationery Office, 1946).Google Scholar

108 Britain, Great, Parliamentary debates (5th series), vol. 425 (July 9, 1946). p. 242.Google Scholar