Shortly after Queiroz went on shore again and instituted an order of knights of the Holy Ghost, with a badge, or insignia, in the shape of a cross of a blue colour, to be worn on the breast.
Towards evening of the same day all three vessels displayed many lights, and they sent off many rockets and fire-wheels. All the artillery was fired off; and when the natives heard the noise and the echoes resounding over hills and valleys, thy raised great shouts.
The Spaniards sounded drums, rang the bells, had music and dancing, and had other forms of rejoicing, in which the men showed great pleasure...
Next morning it was not quite dawn when the camp-master and ministers, taking with them an armed party in the two boats, went on shore. They landed near the launch with four small pieces of artillery to be used in a fort in case of necessity. Within, the monks arranged a clean and well-ordered altar under a canopy. This was the first church, and was named by the captain "Our Lady of Loreto."
Everything having been arranged as well as the tine would allow, it was reported to the captain, who left the ship with the rest of the people. All the three companies were drawn up in good order on the beach...
The Royal Ensign, Lucas de Queiroz (Queiroz's nephew), came forth with the standard in his hands.
The banners, which were fluttering and brightening the whole scene, received their tribute from discharges of muskets and arquebuses. Presently, the captain came out and went down on his knees, saying: "To God alone be the honour and glory." Then, putting his hand on the ground, he kissed it, and said: "O Land sought for so long, intended to be found by many, and so desired by me!" Then formal possession was taken under six different headings, the last being: "Possession in the name of His Majesty,"--which read as follows:--
"Finally, I take possession of this bay, named the Bay of St. Philip and St. James, and of its port named Santa Cruz, and of the site on which is to be founded the City of New Jerusalem, in latitude 15° 10', and of all the lands which I sighted and am going to sight, and of all this region of the south as far as the Pole, which, from this time shall be called AUSTRALIA DEL ESPIRITU SANTO, with all its dependencies and belongings; and this for ever, and so long as right exists, in the name of the king, Don Philip, third of that name, king of Spain, and of the eastern and western Indies, my king and natural lord, whose is the cost and expense of this fleet, and from whose will and power came its mission, with the government, spiritual and temporal, of these lands and people, in whose royal name are displayed these his three banners, and I hereby hoist the royal standard."...
Then followed masses and various other ceremonies, including the creation of a municipality and the elections of officers thereto.
After which Queiroz ordered Torres to take an armed party, and penetrate further into the interior...They saw more and better farms and villages than before, and at one village they found the natives much occupied with their dances. When they saw the Spaniards approaching, they began a flight to the mountains, leaving strewn about, as they fled, bows, arrows, and darts. The people of the party found two roast pigs, and all their other food, which they eat at their ease. They carried off twelve live pigs, eight hens and chickens, and they saw a tree which astonished them, for its trunk could not have been encircled by fifteen or twenty men; so they returned to the ships. Queiroz, on the last day of Easter, taking with him such an escort as seemed necessary, went to an adjacent farm of the natives and sowed a quantity of maize, cotton, anions, melons, pumpkins, beans, pulse, and other seeds of Spain; and returned to the ships laden with many roots and fish caught on the beach. Next day Queiroz sent the master of the camp, with thirty soldiers, to reconnoitre a certain height, where they found a large and pleasant valley, with villages. When the inhabitants saw them coming, many assembled together in arms. They caught there three boys, the oldest being about seven years of age, and twenty pigs. With these they began to retreat, and the natives, with vigour and bravery, attacked their vanguard, centre and rearguard, shooting many arrows. The chiefs came to the encounter, and by their charges forced the Spaniards to lose the ground they were gaining. Arrived at a certain pass, they found the rocks occupied by many natives, who were animated by the desire to do them as much harm as possible. Here was the hardest fight, their arrows and stones hurled down from the heights causing great damage to the party.