File No. 2160/6.
The British Ambassador to the Secretary of State.
Intervale, N. H., July 3, 1907.
Sir: I have the honor to inform you that His Majesty’s Government, acting at the request and on behalf of the British North Borneo Company, are prepared to acquiesce in the last proposal [Page 548] stated in your letter to Sir H. M. Durand of the 19th of December last, respecting the administration of certain islands on the east coast of Borneo. I am therefore instructed by His Majesty’s principal secretary of state for foreign affairs to place the proposed arrangement formally on record without further delay.
His Majesty’s Government understands the terms of the arrangement to be as follows:
- Firstly. That the said company be left undisturbed in the administration of the islands in question without any agreement specifying details, the United States Government simply waiving in favor of the said company the right to such administration in the meantime; in other words, that the existing status be continued indefinitely at the pleasure of the two Governments concerned.
- Secondly. That such privilege of administration shall not carry with it territorial rights, such as those of making grants or concessions in the islands in question to extend beyond the temporary occupation of the company; and any grant, concession, or license made by the company shall cease upon the termination of the company’s occupation.
- Thirdly. That the temporary waiver of the right of administration on the part of the United States Government shall cover all the islands to the westward and southwestward of the line traced on the map which accompanied Sir H. M. Durand’s memorandum of the 23d of June, 1906, and which is annexed to and to be deemed to form part of this note.
- Fourthly. That the British North Borneo Company, through His Majesty’s Government, shall agree to the exemption of the United States Government from any claim or allegation that the latter Government has incurred any responsibility in respect of acts done in or from any island within the said line.
- Fifthly. That the understanding shall continue until the said two Governments may by treaty delimit the boundary between their respective domains in that quarter or until the expiry of one year from the date when notice of termination be given by either to the other;
- Sixthly. That in case of denunciation, the United States Government shall not be responsible for the value of any buildings or other permanent improvements which may have been erected or made by the company upon the islands, but permission is hereby given to the company to remove, at its own expense, any buildings or improvements erected by it, provided the interests of the United States be not injured thereby.
I have therefore the honor to request you to be so good as to inform me whether the United States adhere to the terms of the arrangement above described, and I shall be glad to receive an assurance from you at the same time that this note will be considered by the United States Government as sufficient ratification of the above arrangement on the part of His Majesty’s Government.
I have the honor, etc.,