Balambangan Island is located off the northern tip of
Borneoin the Malaysian state of Sabah. It is part of the Kudat Divisionand is situated just about 3 kilometres west of Banggi Island. This island was one of the first locations in Sabah in which British traders had set up a trading post. In 1761, British East India Companyofficer Alexander Dalrympleconcluded an agreement with the Sultan of Suluto allow him occupation of the island. A free port was then established here which was of importance for the interest of Britain in the east Asia region, namely, trade with China. [ [http://www.underwaterdiscovery.org/Sitemap/Project/ProjectArticel.aspx?ProjectName=RoyalCaptain&Layout=B&XmlDocument=0001.xml "Lost in the Chinese Sea"] , "FGS Project - Royal Captain". Accessed July 27, 2007.] The port however failed to become a long term success due to constant pirate attacks as well as for other reasons.
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