In the year 1732, all the canoes accomplished their destination with safety; but in the following year, a fleet, consisting of fifty canoes, was destroyed, and on the arrival of the few persons who escaped at Cuiaba, a squadron of thirty canoes of war, and seventy of transport, was equipped, and confided to the command of Lieutenant-General Manuel Rodrigues de Carvalho.

About the middle of August, 1734, this powerful fleet entered the Paraguay, and having navigated a month without encountering an enemy, they one morning discovered at day-break various fires at the bottom of a bay, apparently difficult of access, towards which, however, they proceeded in great silence, without being observed, till they arrived almost within gun-shot. The Indians, perceiving themselves thus surprised and surrounded, raised a most horrible yell, to which the Portuguese responded by a discharge of upwards of four hundred muskets, which occasioned great havoc amongst them. Two hundred and ninety-two were made prisoners, including wounded and children, who could not follow the fugitives to the woods. The whole were shortly afterwards baptized.

In 1735, after the return of this armament from the Paraguay, and the arrival of a fleet from St. Paulo, consisting of one hundred and twelve canoes, the mines were divided which Fernando de Barroz (a Sorrocabano) had discovered three years before, a short distance from the present site of Villa Bella, the capital of this province, and where the new colonists died in great numbers from a malignant fever, caused by some neighbouring stagnant pools. In the following year the numerous fleet from St. Paulo was attacked by an Indian armada, considerably superior, at the situation of Caranda, on the day of St. Joze. The conflict lasted several hours, in which were killed, amongst others, their brave commandant Pedro de Moraes and Frey Antonio Nascentes, a Franciscan friar, whose extraordinary powers and intrepidity had acquired him the by-name of Tiger. Many others distinguished themselves more fortunately in this conflict, from which they issued conquerors, having caused a horrible carnage amongst the savages. None, however, displayed more bravery than a mulatto, from Pindamonhangaba, called Manuel Rodriguez, and, vulgarly, Manduassu, Manuel the Great, in consequence of his immense stature, strength, and courage. This gigantic man, who commanded his own canoe, in which he was accompanied by his wife, of the same colour, and various slaves, being attacked by two Indian war canoes, defended himself with such valour and dexterity that neither were able to board him; at one time he discharged a musket, which his wife successively loaded for him, at another he wielded a vara, (a long pole for impelling the canoe,) the strokes of which were fatal to all those who came within his reach. On his arrival at Cuiaba he was presented with the commission of a captain.

In the same year a road was opened to the territory of Goyaz, (so called from the Goya Indians,) from whence upwards of fifteen hundred persons departed, with horses and numerous troops of mules, besides those who descended by the river St. Lourenço, attracted by the announcement of gold which had been found in Matto Grosso, from whence, in fact, eighty arrobas of that metal were despatched the same year to St. Paulo in eight canoes of war, each furnished with sixteen chosen men, and commanded by Lieutenant-General Manuel Rodrigues de Carvalho, who conducted them in security, and put an Indian division to flight which attacked them at the entrance of the Pantanos. With this intelligence almost the whole population of Cuiaba left that town for the newly-discovered mines of Matto Grosso, (Large Woods.) Five hundred oitavas were paid for negroes, and they were cheap, from the gain which they afforded.

In 1740 the Indians were again beaten, at the embouchure of the Tacoary, by the fleet from St. Paulo, commanded by Jeronimo Gonsalves, (an Hituan,) who arrived at Matto Grosso with a great number of lances, or spears, that belonged to the Indians who perished in the combat, he having himself lost four canoes laden with merchandise and slaves. After his arrival some domestic Bororo Indians brought intelligence that the Spanish Jesuits had established themselves near the heads of the Paraguay, reducing into aldeias the Guaraparez tribe.

It being well known that this step was not taken for want of Indians to convert in the vicinity of their own missions, the Portuguese counselled them to retire peaceably, which advice was disregarded. The inconstancy, however, of the catechumens obliged the catechists to retrace their steps to the aldeias of the province of St. Cruz de la Sierra, before measures were taken for their expulsion.

In the year 1742 Manuel de Lima descended, with five Indians, three mulattoes, and a negro, in a canoe, by the Guapore, Madeira, and Amazons, to the city of Para.

At the same period that Manuel de Lima descended the Madeira, one Joaquim Ferreira, with other traders, advanced up the Mamore to the mission of Exaltaçao. The same persons, or others with a similar intention, returning the following year, found the mission of St. Rosa newly erected upon the eastern margin of the Guapore, almost in front of the outlet by which they had entered to St. Miguel the preceding year. The jesuitical curate determining to impede their navigation of the river, it was conjectured that, for the better effecting this project, he shortly afterwards removed the mission of St. Miguel also to the same side, and founded that of St. Simao further to the north. It notwithstanding appears that the people of Matto Grosso did not desist from the navigation of this river.[22]

In 1743 the combined Indians observing certain signals at the mouths of the Tocoary of a fleet having passed forward, they proceeded up in pursuit of it as far as the reducto of Sappe, in the vicinity of the town of Cuiaba, where they killed some fishermen.

A series of such calamities produced a resolution of the ouvidor, Joam Gonsalves, in a junta with the senate and the principal persons of the town, to endeavour to obviate hostilities, through the medium of a firm friendship with the Guaycuru Indians, they not being considered so inveterate against the Portuguese, whose maledictions fell upon the Payagoa tribe, attributing to them alone all the injuries they had sustained. With this intention, a squadron of six canoes of war and six of transport, was sent, under the command of Captain Antonio de Medeiros, with a considerable quantity of articles most esteemed by the Indians, equally for the purpose of making presents as to exchange for horses. Having arrived at an island in front of a post occupied by the Guaycurus, the commandant sent an Indian, versed in their language, with two white soldiers, to the chief of the party, soliciting him to come to the island, as he was desirous to make him some presents, and to enter into a negotiation. On the following day the Indian captain presented himself, with a numerous band of men and women, upon the beach nearest to the island, and with the three deputies sent two of his to Medeiros requesting him to come and parley on land, the two Indians to remain as hostages upon the island. Medeiros immediately proceeded to the other side with a considerable part of his force, and an assortment of various articles, with which he complimented the captain and his relations. He then proposed the projected negotiation, which was to effect a cessation of hostilities with the Payagoas, and to barter horses for European merchandise; to all which the Indian promptly assented.