Informatory decree, in regard to opening the commerce between the kingdoms of Perù and Nueva España.
The King. To the reverend father in Christ, Don Juan de Palafox y Mendoza, bishop of the cathedral church of the city of Puebla de los Angeles, [etc. Here follows a preamble identical with that of the first decree, as explained in the second one. This decree continues:]
Both Perù and Nueva España oppose the method followed in the commerce of the said Philipinas Islands, and complain of the above prohibitions, setting forth certain difficulties which result from closing to them the commerce which those two most opulent states have maintained (as it were, by nature) between themselves; the chief of these is their being entirely deprived of the mutual intercourse and relations which ought to prevail between them. On this account, another permission of two ships has been granted to them. One of these shall sail every year from the port of Callao de Lima, and may carry to that of Acapulco silver to the amount of 200,000 ducados, for investment in the products peculiar to Nueva España—whether of agriculture, stock-raising, or manufacture—and no others, even those sent from these kingdoms. The other ship shall return from Acapulco to Callao with these proceeds [of the investment], the prohibition of cloth from China remaining in force; and the decree declares that none of that cloth may be sent in return for the 200,000 ducados, nor outside of that amount, enforcing its execution by heavy penalties [imposed] by the decrees of December 31, 1604, and March 8 and June 20, 1620. By these decrees final shape was given to this permission which now is suspended; and it was ordered to cease by a decree of November 23, 1634, without the reason which had given cause for this act being known—further than the measures which had been proposed for ruining the islands, and this, that the ships of Perù might not sail to Acapulco, to the so great harm of the Philipinas Islands, as this alone would be enough to ruin them. For if ships do not go from Perù, the islands remain exposed to the failure of their aid, in the year when their ships do not make the voyage, by having been wrecked, or forced to put back to port, or having arrived late. As in such cases, it is usual to make good their deficiency with the ships from Perù, sending in them the usual succor of men and money, if the latter do not go, and the others do not come [to Acapulco], there will not be ships for that purpose, and the islands might remain for several years without the succor that supports them, at the evident risk of being ruined. To this may be added, that there are, as will be stated, in Nueva España more than fourteen thousand persons who sustain themselves with the industry of silk-raising and silk manufacture, by express permission, and the order that this industry be preserved. It cannot be maintained with only the silk that is produced in that country, the total amount of which is very small, and it therefore employs the silk that comes from Manila, as being suitable for delicate fabrics. The silk fabrics of Nueva España have always been exported to Perù, as commodities included in the trade permitted to those countries, which was mainly composed of these stuffs; while the fabrics of China remained for meeting the expenses of the country, which regularly consumed all that came thence. Since the exportation of what formerly went to Perù has ceased, the necessary result is that these goods remain and are consumed in Nueva España, as being its own product, and that just so much less of the Chinese silk is required—which is substituted in place of the home product when the former goods are imported through the permission—and necessarily less of the other is produced. Besides taking away their occupation from the people who are engaged in the silk industry, this will cause an evident diminution in the commerce of Philipinas, the bulk of which consists in silks; for just so much less of what the islands export is consumed [in Nueva España] as cannot be sold out of what is produced there—which will be an amount so noticeable that with this reduction alone that commerce will become excessively weakened. This has been already proved in regard to the last ships which came from those islands—for, as they failed to come the previous year, they found no market for their goods, and could not sell enough of these even to pay the freight charges and the duties, according to letters from Nueva España and authentic documents; it is, therefore, very expedient that the permission given to Perù should be revived, else, by not conceding it, a great reduction is feared in that of Philipinas. If, when that permission was granted, the matter was discussed with adequate information, and the advantages which there might be on either side were considered, and now if no new reasons or circumstances arise which compel the decision to be suspended beyond the fact that Francisco de Victoria contrived such expedients, without heeding other objects, so that it seems as if he cared only for the abandonment and ruin of the islands, no opportunity should be given for that suspension. Even if the memorials which [Don Juan Grau] has furnished on the other topics prove to be sufficiently answered, and their arguments are shown to be weak or false, it must not be understood that there are better ones for what concerns the permission given to Perù; but no answer is made here, save in what pertains to the Philipinas, for the rest concerns Nueva España and Perù, who will give fuller explanations. And, considering the evident injury and risk to which the islands are exposed by the lack of freight ships that can sail thither, since in case the ships belonging to the commerce are wrecked, or forced to take refuge in other ports, or arrive late, the islands will perish if there are no other ships in which to send the usual succor of men and money: and since freight vessels are not built, which is necessary in all the coasts of Nueva España, this deficiency must be supplied some years by the ships from Perù that go to Acapulco—which do not sail now, on account of the permission which was given for that purpose being suspended—from which also result to the islands the losses which have been set forth in the said memorial, which are stated anew in this petition, because it is so expedient that the traffic between Nueva España and Perù be restored: [Don Juan Grau] has petitioned me to consent to raise the suspension, or prohibition, which is laid or imposed on the said permission of Perù and Nueva España, even though, for its fulfilment and better observance, the penalties be increased so far as is expedient. This matter having been considered in my royal Council of the Indias, as I desire to ascertain the advantages or disadvantages which may result from the aforesaid measure, whether to my greater service, to the increase or diminution of my royal dues, to the preservation of my vassals of the said Philipinas Islands, or to their relief or injury: I request and charge you to inform me very thoroughly of all that you shall ascertain and understand to be most expedient, in order that when I have considered all the reliable information in your report, I may take such measures as may be most fitting. Done at Madrid, February 14, in the year 1640.
I the King
By command of the king our sovereign: