Chapter third. Of the traffic of these islands, on which likewise depends their increase and conservation
1. That no consignments of money be sent to the Filipinas from Mexico. First: It should be related to his Majesty that one of the things that has ruined this country is the great consignments of money that wealthy persons resident in Mexico send here. These give rise to two wrongs: the first, that they advance the price on all Chinese merchandise, so that the poor and common people of the islands cannot buy those goods, or only at very high prices; the second, that, since the shipments of goods [to Mexico] are many and large, and the vessels few—at times (nearly always, in fact) not more than one—and, because of the great amount of ship stores required for so long a course, and the difficulty of the voyage, these vessels go but lightly laden, the citizens and common people cannot export any goods. We ask that his Majesty ordain and confirm what has been ordained here by his royal Audiencia—namely, that neither shall such consignments be sent from Mexico, nor shall Mexican factors or trading companies come hither from that country; but that only the citizens of these islands be allowed to buy and export to Mexico the products of this land and foreign products. If any other person wish to do this, he should be obliged to become a citizen and reside here at least for three years; and he should trade with none but his own property, under severe penalties. These should include the confiscation of both such goods and his personal property, in addition to which he should not be allowed to carry any wealth to Mexico; nor from there shall the money be brought which now the Chinese take, so that their goods may be bought more cheaply, and with the products of this land.
2. That purchases be not made from the Chinese, at retail, but by wholesale. Second: We desire that, now and henceforth, neither the Chinese nor other foreign vessels shall sell at retail, as is the custom at present, nor shall the inhabitants of this city be allowed to purchase in public or in secret, under severe penalties. We ask that, for the purchase of these goods at wholesale, there be appointed and chosen persons, so many and such as the affair requires, so that they alone may buy at wholesale all the goods brought by the Chinese vessels, and afterward apportion them to the Spanish citizens, the Chinese, and the Indians, by a just and fair distribution, at the rate of the prices paid for them, plus the other incidental expenses required. If his Majesty order and confirm this, the prices shall be determined and established by the governor and persons whom his Lordship shall appoint.
3. That there be no Chinese hucksters in Manila. Third: From the above follows another very important matter—namely, that all the Chinese merchants and hucksters should not remain here to hoard and retail the goods, as well as for the many other losses, and the lack of supplies that they cause in the city and land, and the secret sins and witchcrafts that they teach, of which the father will give a detailed account. Moreover, the shops which they had and which are necessary for retail articles should, in the course of the year, be taken by the Spaniards, so that the advantage may remain on our side, and so that there maybe opportunity for Spanish citizenship and settlement. This cannot increase without such action, since there are so many Chinese here; and it is desirable for many other advantages which will be attained here. Outside the city there should remain, of the Chinese, only the Christians and certain other old inhabitants, who do not come and go, and are not wholly hucksters, but workmen—mechanics, carpenters, gardeners, and farmers—and others who trade in food supplies, who, collecting the food in the villages of the Indians, bring it to this city.
4. That the Portuguese shall not trade with Mexico or Peru. Fourth: The Portuguese should be forbidden, for the present, to make a voyage to or traffic with Peru or Nueba España; for this country will be ruined, while that city (Sevilla—Madrid MS.) will lose the duties on the voyages and goods, and the Portuguese will take the silver to China, East India (Cion, and Sunda—Madrid MS.) and other foreign kingdoms.
5. That the inhabitants of the islands may trade with Piru or any other country. Fifth: We ask that the inhabitants of these islands may make voyages to Japon, Macan, and all other kingdoms and posts, whether Portuguese or pagan, that admit our trade.
6. That the Audiencia be abolished, or paid from Mexico. Sixth: The citizens of this city and of these islands are very few and poor to carry so great a burden as the royal Audiencia, and the numerous expenses caused and incurred by its officials; accordingly if there are any reasons why the Audiencia should remain, his Majesty should allow their salaries to be paid from the treasury of Mexico. The father will inform his Majesty of the arguments on both sides, according to the detailed memoranda and the discussions and opinions expressed here. His Majesty will take what action he deems suitable.