2208 PHILIPPINES-NORTH BORNEO, BOUNDARY. JANUARY 2,1930. o!~ of DOtes- 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 aITangement formally on record without further delay. His Majesty's Government understand the terms of the aITange- ment to be as follows. "Firstly: that the said Company be left un(Hsturbed in the ad- ministration of the islands in question without any agreement speci- fying details, the United States Government simply waiving in favour of the said Company the right to such administration in the meantime, in other words, that the existing status be continued in- definitely 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 occu- pation. "Thirdly: That the temporary waiver of the right of administra- tion 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 23rd 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 exeffiption of the United States Government from any claim or allegation that the latter Government b'tS incurred any responsibility in respect of acts done in or from any island within the said line. HFifthly: 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 Govern- ment 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 improve- ments erected by it, provided the interests of the United States be not injured thereby." I have therefore the honour 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 recllive an assurance from you at the same time that this Note will be considered by the United
