Marlow presumes that his audience has never heard of Patusan, a remote district far upriver from the ocean and ruled by often warring groups of Indigenous peoples. Marlow emphasizes the obscurity of the place and that Stein is sending Jim into an environment entirely different from any he has previously known. Stein proposes to send Jim to replace an agent named Cornelius, who has been unsuccessful in commercial dealings for Stein & Company in Patusan. Stein himself apparently has had a history in Patusan, but he does not go into detail in sharing this with Marlow.

Marlow gives some history of Patusan, a place where traders obtained pepper in the 17th century. Stein’s is the only firm with authorization from the Dutch authorities to trade in Patusan. Stein describes Patusan as controlled by antagonistic forces, including Rajah Allang, uncle of the Sultan, who governs the river. Marlow sees the employment as a refuge for Jim, despite the accompanying danger, while Stein appears to view it as payment of a debt to a Scottish person who has since passed, but who provided Stein with a similar opportunity at one point in his life.