 Labuan is a small island in the mouth of Brunei Bay with an area of 35 square miles ( 91 km2 ) . Before the Pacific War , it formed part of the British @-@ administered Straits Settlements and had a population of 8 @,@ 960 . The island had a town , Victoria , on its south coast which fronted onto Victoria Harbour , with a population of 8 @,@ 500 and limited port facilities . Aside from a 1 @,@ 500 @-@ yard ( 1 @,@ 400 m ) beach just to the east of Victoria , the coast was ringed by coral . 
