Office of the Historian

File No. 2160.

The Secretary of State to the British Ambassador.

Department of State,
Washington, January 12, 1906.

Dear Mr. Ambassador: I beg to acknowledge the receipt of your official note of the 6th instant, in regard to the control to be exercised over certain islands in North Borneo, and, as a preliminary to a more formal interchange of views should an agreement by exchange of note appear desirable, to submit the following:

The present alternative proposal of the British North Borneo Company might be carried out by exchange of notes between the two Governments, but I think some formalities would be necessary, e. g.:

1.
The company to submit a chart of the region, showing the line within which it desires to carry on administration, as well as the line which is recognized as dividing North Bornean territory from American territory.
2.
The engagement might be either of indefinite duration or for renewable periods. I think the former preferable if the right to terminate it upon one year’s notice be expressed.
3.
In case of denunciation, the disposal of the company’s real property on the administered islands, if it have made any improvements thereon, should be specified.
4.
In consideration of our refraining from administering the islands in question, to the extent to which the company may deem adequate to protect its coasts from smuggling or piratical incursions, the United States should be distinctly exempted from any claim or allegation of responsibility arising out of acts done in or from the American islands outside of the limits of Bornean administration.

I am, etc.,

Elihu Root.