Office of the Historian

File No. 2160.

The British Ambassador to the Secretary of State.

[Memorandum.]
British Embassy,
Washington, June 23, 1906.

The Secretary of State’s semiofficial note of January 12 in regard to the control of certain islands in North Borneo was duly forwarded by His Majesty’s embassy to Sir Edward Grey, who has now replied, giving the views of the British North Borneo Company on the four points raised in that note.

In regard to the first point, the company deprecate having to submit a chart showing the line dividing North Borneo from American territory. They point out that to prepare such a chart would necessitate the dispatch of a joint delimitation commission, which would involve considerable expense. His Majesty’s embassy is, however, authorized to communicate to the State Department the inclosed map as showing the limits within which the company desire to carry on the administration.

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2. The company would like to be left undisturbed in the administration of the islands without any detailed agreement, the United States Government simply waiving in favor of the company their right to administer, which it is believed they have no special desire to exercise; but if this is not possible the company would prefer to continue the administration on leases renewable say every twenty-five years, paying the annual rent of $150 as suggested before.

3. The company suggest that in case of denunciation the United States Government should agree to recognize titles and concessions granted in the islands by the company and should pay the company for improvements.

4. In the event of the United States Government agreeing to refrain from administering the islands, the company will, as a matter of course, agree to the exemption of the United States Government from any claim or allegation of responsibility arising out of acts done in or from any islands within the proposed line of demarcation.

They do not suppose that it was the intention of the Department of State to disclaim responsibility for the consequences of acts done in or from American islands under the direct control of the United States administration.