Green’s Dictionary of Slang

spice island n.

[pun]

1. the anus.

[UK]Roger’s Profanisaurus in Viz 98 Oct. 26: spice island euph. Stink-hole Bay; Dilberry Creek. A foul smelling archipelago favoured by sailors on their trips around the world. The arsehole.

2. a privy; sometimes in pl.

[UK]Lex. Balatronicum.
[UK]Egan Grose’s Classical Dict. of the Vulgar Tongue n.p.: spice islands A privy. Stink-hole bay or dilberry creek. The fundament.

3. any dirty, stinking place; sometimes in pl.

[UK] ‘Miscellaneous’ in Fancy I IV 101: It happened that a fair Cyprian, Miss Hurley, of the Spice Islands, in Grub-street [...] was induced by some one who knew a little more, to take umbrage at this large bill.
[UK]‘Jon Bee’ Dict. of the Turf, the Ring, the Chase, etc.