There's two version of the translation in dispute as per original agreement is in Arabic. The Philippine's translation claimed the word 'padjak' means 'rent' or 'lease' whereas the British version of the translation means 'ceded' or 'to surrender possession of' as already mention earlier in other threads.

Grant by Sultan of Sulu of territories and lands on the mainland of the island of Borneo

On 22 January 1878, an agreement was signed between the Sultanate of Sulu and British commercial syndicate (Alfred Dent and Baron von Overback), which stipulated that North Borneo was either ceded or leased (depending on translation used) to the British syndicate in return for payment of 5000 Malayan Dollar per year. On 22 April 1903 His Majesty Sultan Jamalul Kiram signed a document known as "Confirmation of cession of certain islands", under what he either "grant and ceded" or "leased" additional islands in the neighbourhood of the mainland of North Borneo from Banggi Island to Sibuku Bay to British North Borneo Company. The sum 5,000 dollars a year payable every year increased to 5,300 dollars a year payable every year.



British version

“ ... hereby grant and cede of our own free and sovereign will to Gustavus Baron de Overbeck of Hong Kong and Alfred Dent Esquire of London...and assigns for ever and in perpetuity all the rights and powers belonging to us over all the territories and lands being tritutary to us on the mainland of the island of Borneo commencing from the Pandassan River

on the north-west coast and extending along the whole east coast as far as the Sibuco River in the south and comprising amongst other the States of Paitan, Sugut, Bangaya, Labuk, Sandakan, Kina Batangan, Mumiang, and all the other territories and states to the southward thereof bordering on Darvel Bay and as far as the Sibuco river with all the islands within three marine leagues of the coast.[6]



Sulu version

“ ...do hereby lease of our own freewill and satisfaction to...all the territories and lands being tributary to [us] together with their heirs, associates, successors and assigns forever and until the end of time, all rights and powers which we possess over all territories and lads tributary to us on the mainland of the Island of Borneo, commencing from the Pandassan River on the west coast to Maludu Bay, and extending along the whole east coast as far as Sibuco River on the south,..., and all the other territories and states to the southward thereof bordering on Darvel Bay and as far as the Sibuco River, ..., [9 nautical miles] of the coast." ”


The key word in both the agreements was "padjak", which has been translated by American, Dutch and Spanish linguists to mean "lease" or "arrendamiento". The British nevertheless takes the word "padjak" to mean "grant and cede".It can be argued however, that "padjak" means "mortgage" or "pawn" or even "wholesale", as per the contemporary meaning of "padjak" in Sulu. This indicates that the agreement was actually a contract in which the Sultan of Sulu placed the land as mortgage/perpetual lease in return for a loan of Malayan Dollar 5300 per year until perpetuity.

Every year, the Malaysian Embassy in the Philippines issues a check in the amount of 5,300 ringgit (about 77,000 Philippine pesos) to the legal counsel of the heirs of the Sultan of Sulu. Malaysia considers the amount an annual “cession” payment for the disputed state, while the sultan’s descendants consider it “rent.”



SOS KICAP