711.4115A/77
The Secretary of State to the British Ambassador (Howard)
Excellency: In your Excellency’s note of today’s date you stated that His Majesty’s Government in the United Kingdom understands that the Government of the United States of America is prepared to conclude an arrangement in the following terms regarding certain islands off the coast of Borneo which have been administered by the British North Borneo Company in accordance with the arrangement effected by an exchange of notes between His Majesty’s Government and the Government of the United States of America on July 3 and July 10, 1907:
Firstly. That the said company be left undisturbed in the administration of the islands in question unless or until the United States Government give notice to His Majesty’s Government of its desire that the administration of the islands should be transferred to it. The transfer of administration shall be effected within one year after such notice is given on a day and in a manner to be mutually arranged.
Secondly. That when the administration of any island is transferred in accordance with the foregoing the said Company will deliver to the United States Government all records relating to administration prior to the date of transfer.
Thirdly. The United States of America shall not be responsible for the value of any buildings which have been or may be erected or other permanent improvements which have been or may be made in any island the administration of which is subject to transfer but any buildings or improvements erected or made by the administrative authorities prior to the transfer of administration may be removed provided the interests of the United States of America are not thereby injured. In the event, however, of the Island of Taganak being so transferred, the United States Government will give favorable consideration to the question of the compensation to be paid to the said company in respect of the capital expenditure incurred by the company [Page 154] in connection with the lighthouse situated on the island, and that the United States Government will provide for the future maintenance of the lighthouse.
Fourthly. 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.
The United States Government, however, takes note of the desire of His Majesty’s Government that the following titles to land in certain of the islands which were in good faith granted by the Government of North Borneo prior to the arrangement of 1907, be allowed to stand on the terms on which they were issued by that Government.
Particulars
| Titles | Date of Alienation | Period | Approximate total acreage | ||
| Boaan Island | |||||
| 26 Native Titles | 1. 6. 1907 | In perpetuity | 146 | acres | |
| Lihiman Island10a | |||||
| 7 Native Titles | 1. 6. 1907 | “ “ | 37 | “ | |
| 1 Provisional Lease 2416 | 1. 6. 1907 | 999 years | 13 | “ | |
| Total | 50 | “ | |||
| Langaan Island | |||||
| 4 Native Titles | 1. 6. 1907 | In perpetuity | 12 | “ | |
| Great Bakkungaan | |||||
| 3 Provisional Leases | 26. 9. 1903 | 999 years | 118 | ” | |
Fifthly. It is agreed that the United States Government shall be exempt from responsibility in respect of acts done in or from any of the islands in question the administration of which has not been transferred to the United States.
Sixthly. The stipulations of the extradition treaties between the United States Government and His Majesty’s Government shall be applicable within the limits provided for in the exchange of notes which took place in Washington on September 1st/23rd, 1913, to the islands in question and the United States Government takes note of the importance which, in view of the proximity of the islands to North Borneo, the said company attaches to the establishment and maintenance of an adequate police post thereon, in the event of the administration being transferred to the United States Government.
[Page 155]Seventhly. In the event of the cession, sale, lease or transfer of the islands in question to any third party, the United States Government undertakes to use its good offices in commending to the favorable consideration of such third party the desires expressed by His Majesty’s Government in the United Kingdom and the British North Borneo Company, as set out in the preceding articles of the present arrangement.
In reply to the inquiry made on behalf of Your Excellency’s Government in the last paragraph of your note of today’s date, I take pleasure in informing you that the Government of the United States of America adheres to the terms of the arrangement above described, and in assuring you that your note under acknowledgment is considered by the Government of the United States of America as sufficient acceptance of the arrangement on the part of His Majesty’s Government in the United Kingdom.
Accept [etc.]