By possessing the only passes to this Empire, namely the Straits of Sunda and Malacca, they had it in their power at all times to impede that trade; and of their disposition to exert this power, even in time of peace, there was no doubt. It was therefore determined that we should lose no time in securing, if practicable, the command of one of these Straits: and the Straits of Malacca on account of their proximity to our other Settlements appeared the prost eligible. I was accordingly authorized to provide for the establishment of the British interests at Acheen. (the most Northern Kingdom of Sumatra and which commands the Northern entrance of these Straits) and to fix upon some Station that might equally command the southern entrance. My negotiations occupied a period of several months, but they ended successfully, and the predominance of the British influence in that quarter has been duly provided for. The same has been effected at this end of the Straits and the intermediate station of Malacca although occupied by the Dutch, has been completely nullified.
This decisive though moderate policy on the part of the British Government has paralysed the further efforts of the Dutch, and we have reason to hope that every thing will remain in statu quo pending the references which are necessarily made to Europe by both parties. Our eventual object is of course to secure the independence of the Bornean, Sumatran and other States with which we have been in alliance for the last twenty years: and further, if practicable to regain the Settlements of Malacca, Padang and Banca. These ought never to have been transferred to the Dutch, but as they are indebted to us in early a Million Sterling on the adjustment of their Java accounts, it is to be hoped we may yet make a compromise for their return.
I shall say nothing of the importance which I attach to the permanence of the position I have taken up at Singapore: it is a child of my own. But for my Malay studies I should hardly have known that such a place existed; not only the European but the Indian world also was ignorant of it. It is impossible to conceive a place combining more advantages: it is within a week's sail of China. still closer to Siam, Cochin-China. &c. in the very heart of the Archipelago, or as the Malays call it, it is "the Navel of the Malay countries": already a population of above five thousand souls bas collected under our flag, the number is daily increasing, the harbour, in every way superior, is filled with Shipping from all quarters; and although our Settlement has not been
