Although the time was somewhat unfavorable, Lieutenant Emmons and party executed their orders within the time designated, and met with no other obstructions than the inclemency of the weather.  This was not, however, the case with Lieutenant Perry, who, near a small beach on the island of Balambangan, encountered some Sulus, who were disposed to attack him.  The natives, no doubt, were under the impression that the boats were from some shipwrecked vessel.  They were all well armed, and apparently prepared to take advantage of the party if possible; but, by the prudence and forbearance of this officer, collision was avoided, and his party saved from an attack.

[Balambangan.] The island of Balambangan was through the instrumentality of Mr. Dalrymple, as heretofore stated, obtained from the Sulus for a settlement and place of deposit, by the East India Company, who took possession of it in 1773.  Its situation off the northern end of Borneo, near the fertile district of that island, its central position, and its two fine ports, offered great advantages for commerce, and for its becoming a great entrepot for the riches of this archipelago.  Troops, and stores of all kinds, were sent from India; numbers of Chinese and Malays were induced to settle; and Mr. Herbert, one of the council of Bencoolen, was appointed governor.  It had been supposed to be a healthy place, as the island was elevated, and therefore probably free from malaria; but in 1775 the native troops from India became much reduced from sickness, and the post consequently much weakened.  This, with the absence of the cruisers from the harbor, afforded a favorable opportunity for its capture; and the wealth that it was supposed to contain created an inducement that proved too great for the hordes of marauding pirates to resist.  Choosing their time, they rushed upon the sentries, put them to death, took possession of the guns, and turned them against the garrison, only a few of whom made their escape on board of a small vessel.  The booty in goods and valuables was said to have been very large, amounting to nearly four hundred thousand pounds sterling.

Although Borneo offers many inducements to commercial enterprise, the policy of the Dutch Company has shut themselves out, as well as others, by interdicting communication.  In consequence, except through indirect channels, there has been no information obtained of the singular and unknown inhabitants of its interior.  This, however, is not long destined to be the case.

Mr. Brooke, an English gentleman of fortune, has, since our passage through these seas, from philanthropic motives, made an agreement with the rajah of Sarawack, on the northern and western side of Borneo, to cede to him the administration of that portion of the island.  This arrangement it is believed the British government will confirm, in which event Sarawack will at once obtain an importance among the foreign colonies, in the Eastern seas, second only to that of Singapore.