The pacification of Cebú and the adjacent islands was steadily and successfully pursued by Legaspi; the confidence of the natives was assured, and their dethroned King Tupas accepted Christian baptism, whilst his daughter married a Spaniard.

In the midst of the invadersʼ felicity the Portuguese arrived to dispute the possession, but they were compelled to retire. A fortress was constructed and plots of land were marked out for the building of the Spanish settlersʼ residences; and finally, in 1570, Cebú was declared a city, after Legaspi had received from his royal master the title of Gov.-General of all the lands which he might be able to conquer.

In May, 1570, Captain Juan Salcedo, Legaspiʼs grandson, was despatched to the Island of Luzon to reconnoitre the territory and bring it under Spanish dominion.

The history of these early times is very confused, and there are many contradictions in the authors of the Philippine chronicles, none of which seem to have been written contemporaneously with the first events. It appears, however, that Martin de Goiti and a few soldiers accompanied Salcedo to the north. They were well received by the native chiefs or petty kings Lacandola, Rajah of Tondo (known as Rajah Matandá, which means in native dialect the aged Rajah), and his nephew the young Rajah Soliman of Manila.

The sight of a body of European troops armed as was the custom in the 16th century, must have profoundly impressed and overawed these chieftains, otherwise it seems almost incredible that they should have consented, without protest, or attempt at resistance, to (for ever) give up their territory, yield their independence, pay tribute,[4] and become the tools of invading foreigners for the conquest of their own race without recompense whatsoever.

A treaty of peace was signed and ratified by an exchange of drops of blood between the parties thereto. Soliman, however, soon repented of his poltroonery, and roused the war-cry among some of his tribes. To save his capital (then called Maynila) falling into the hands of the invaders he set fire to it. Lacandola remained passively watching the issue. Soliman was completely routed by Salcedo, and pardoned on his again swearing fealty to the King of Spain. Goiti remained in the vicinity of Manila with his troops, whilst Salcedo fought his way to the Bombon Lake (Taal) district. The present Batangas Province was subdued by him and included in the jurisdiction of Mindoro Island. During the campaign Salcedo was severely wounded by an arrow and returned to Manila.

Legaspi was in the Island of Fanay when Salcedo (some writers say Goiti) arrived to advise him of what had occurred in Luzon. They at once proceeded together to Cavite, where Lacandola visited Legaspi on board, and, prostrating himself, averred his submission. Then Legaspi continued his journey to Manila, and was received there with acclamation. He took formal possession of the surrounding territory, declared Manila to be the capital of the Archipelago, and proclaimed the sovereignty of the King of Spain over the whole group of islands. Gaspar de San Agustin, writing of this period, says: “He (Legaspi) ordered them (the natives) to finish the building of the fort in construction at the mouth of the river (Pasig) so that His Majestyʼs artillery might be mounted therein for the defence of the fort and the town. Also he ordered them to build a large house inside the battlement walls for Legaspiʼs own residence—another large house and church for the priests, etc. ... Besides these two large houses, he told them to erect a hundred and fifty dwellings of moderate size for the remainder of the Spaniards to live in. All this they promptly promised to do, but they did not obey, for the Spaniards were themselves obliged to terminate the work of the fortifications.”

The City Council of Manila was constituted on June 24, 1571. On August 20, 1572, Miguel Lopez de Legaspi succumbed to the fatigues of his arduous life, leaving behind him a name which will always hold a prominent place in Spanish colonial history. He was buried in Manila in the Augustine Chapel of San Fausto, where hung the Royal Standard and the heroʼs armorial bearings until the British troops occupied the city in 1763. A street in Manila and others in provincial towns bear his name. Near the Luneta Esplanade, Manila, there is a very beautiful Legaspi (and Urdaneta) monument, erected shortly after the Rebellion of 1896.

“Death makes no conquest of this conqueror,

For now he lives in fame, though not in life.”