| A government postal service was set up in 1906 with the appointed of a British Residents; and Brunei was admitted to the Straits Settlements Postal Union. A supply of stamps was ordered fro Britain but, as delivery was delayed, a quantity of Labuan stamps were overprinted and surcharged for use in Brunei.
It was convenient that Labuan was to be incorporated into the Straits Settlements with effect from 1 January 1907 and all surplus Labuan stamps were to be overprinted for use in the Straits Settlements. As an interim measure some were withdrawn for overprinting and use in Brunei: the overprinting was done by the Straits Settlements government printer in Singapore.
The new government post office was opened on 11 October 1906 (as part pf the Custom House) and the limited provisional issue of stamps was provided for use until the new stamps arrived from London.
Only five values of the Labuan stamps were used for Brunei but, by surcharging four of these values, twelve denominations in all were obtained. The overprinting was in red as in type 1 below; and surcharging, also in red, was in type 2 except that the 25 cents provisional was surcharging as in type 3.
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