In a separate Capitulation are determined the duties which the Spanish vessels shall pay in Jolo, and those which the Sulus shall pay in Manila and Zamboanga; but by these Capitulations it is agreed that whenever the Sulus convey cargoes of products of the islands, they shall pay in Manila and Zamboanga less than foreign vessels, and the Spanish vessels shall not pay in Jolo as much as is charged the ships of other nations.

Article 3

In order that the traffic of Spanish vessels in Jolo shall not suffer the injuries and delays occasioned by the difficulties of their market, the Sultan and Datus consent to the construction of a factory or trading house, with safe warehouses, where merchandise may be stored without risk: and the Sultan and Datus agree always to respect this place, in which there will be a resident Spanish agent, who shall assume charge of all the business entrusted to him. If the Sulus should desire to do likewise in Manila, they shall be permitted; but the Spanish Government receives for storage merchandise from the Custom-house of that city upon payment of fees of but one per centum.

The Sultan shall designate the proper place for the location of the warehouses, which shall be convenient for loading and unloading and the Government shall request the Sultan to furnish, and shall pay for, the materials and workmen that may be necessary.

Article 4

In order that the Spanish and Sulu vessels may navigate and trade with safety, free from the piracies of the Hanuns and Samals the Spanish Government will strengthen its fleets in Mindanao waters, which same will protect equally those of both nations; and in order that good may not be confused with evil persons, the following rules shall be observed:

1st. All Spanish vessels arriving at Jolo shall show to the Sultan their permit upon anchoring, and the same shall be sealed upon sailing; without which the captain shall be punished at Manila.

2d. All Sulu vessels which proceed to Manila or Zamboanga, shall carry the permit of the Sultan, and in possession of the same shall be free and unmolested.

3d. All Spanish or Sulu vessels which shall proceed for trading to Mindanao, shall go first to Zamboanga to notify the Governor, who shall sign their permit without cost.

4th. Every Spanish or Sulu vessel which shall be found by the fleets of Illana or Sindangan bays, without permit of the Governor and Sultan as aforesaid, shall be seized and shall lose all her merchandise, of which two-thirds shall be awarded to those making the capture and one-third to the Sultan of Sulu, if the vessel is Sulu, and to the Spanish Government if the vessel is Spanish.