Since the Philipinas Islands are so far away and distant, surrounded by so many great kingdoms of infidels, the entry and intercourse which the Chinese and Japanese enjoy in Manila, and their friendly relation with the natives, give us reason to fear that the former, allying themselves with the natives, may attempt some disturbance, as they are inclined to do. Considering the fact that the greatest security and strength of the land lies in the Spanish settlement, and I have heard that not only does it not increase but is not even maintained in its previous condition—because, although the viceroys of Nueva España are ordered to send reenforcements of men every year to the islands, many people die from the bad climatic conditions of the land, others are scattered in military expeditions, others must be permitted to return (either because they have left families in their own country, or because they cause injury to the commonwealth), and others go there with no idea of remaining and have refused to become citizens: considering all this, and seeing that it is a matter requiring much attention, I charge and command you, in case this despatch shall reach you in Nueva España, to consult the viceroy concerning all that may pertain to the improvement of these conditions; or, in case you receive it in the Philipinas, to do the same by writing, and to make the arrangements and give the orders which you think best for the settlement of the said islands, striving to draw the expenses from my exchequer with the necessary moderation. I shall now write again to the said viceroy, telling him to take care to provide the islands with useful people, and permanent settlers; and, in order that such persons may settle there, and remain in the islands, he shall favor them, and see that the orders concerning the trade between the said islands and Nueva España be carried out with exactness and rigor in order to attain the end and purpose for which we allow this commerce—namely, the preservation and prosperity of the islands, and the welfare of their citizens and inhabitants. You yourself must attend to this with much care, striving for the settlement of the said islands, and their safety and tranquillity, and for the instruction and conversion of the Indian natives.

Governor Don Francisco Tello wrote to me last year, ninety-nine, about the precautions that he had taken in the punishment of some Japanese pirates who had repaired to that coast and after whom he had sent vessels by different routes; and about the inquiries that he had likewise made among the crews of some merchant ships which had put into Manila at that time, suspecting that they and the pirates were all of the same sort. Since it is necessary to take notice and be careful of this, I charge and command you to be always very vigilant in foreseeing the troubles which may require your attention and which may arise in the said islands, even if it be under pretext of trade by foreigners. You will give a hospitable reception to friends, and maintain amicable relations with them, keeping the ports and frontiers of the said islands in the necessary security, and taking special care that the expenses to be met by my royal exchequer in the precautions to be taken, the manning of vessels for searching out and punishing pirates, and the rest, be no more than are absolutely necessary—since you see the many things which need attention; and, above all, the limited resources of these islands.

When you informed me that in order to punish the pirates who resort to the coast of the Philipinas Islands, it would be well to arm and man some galleys, I granted you by my letter bearing the date of April 8 of this year, that if you saw that the galleys could be of service and usefulness you might cause them to be built and manned. But through a letter of July 12 in the said year, 1599, the said Don Francisco Tello informs me that since the galleys are not suited for those seas—as they had learned by experience, on account of the swift current and their inability to enter a bay while pursuing the enemy—and on account of the difficulties which the religious oppose to his collecting rowers, and as those whom they get possess little skill, he had decided to build four galizabras; these were already being built, and when well armed and equipped would, with three galliots, constitute a sufficient force for the clearing and pacification of those seas. It is therefore desirable that you carefully note all these matters, and after you have examined and considered them thoroughly, you will see whether or not it will be advisable to keep the said galizabras and galliots in case they are built and manned. You will give the necessary care to the security of that coast and land, keeping me informed of what is being done and of the coast which the said galizabras or vessels appointed for that purpose will guard.

The said Don Francisco Tello says in the same letter that the province of Mindanao was already pacified; but that some of the native chiefs had given no pledge, and matters had not been thoroughly set in order, and therefore it was necessary to keep there a garrison of two hundred soldiers. He adds that, as the country is poor and has few sources of wealth, he thought that the Indians would be unable to pay tribute; but it was necessary to assure the safety and accessibility of that post, because that was the landing-place where the Terrenatan landed on his plundering expeditions against the Pintados, as he did in the year 95. The said governor, as he had so few men and so little military strength, decided to place a hundred soldiers in La Caldera, which is near [the river of] Mindanao, in order to assure safety for that place and to hold in check him of Terrenate. You will thoroughly inform yourself of the state of affairs, and make the necessary provision for them, taking special care to hold what is already pacified and to have the gospel preached everywhere. As for the tribute to be imposed upon the Indians you will do what may seem necessary, consulting the prelates and observing my orders; you will see that those who have been pacified and are subjected to me be safe, and receive no injury or molestation from enemies. You will inform me of all that is being done.

The fiscal of the Audiencia of the said islands has written me that since the Indians do not pay the eight reals tribute in kind, as they were wont to do, but it has been left to their choice instead, many difficulties have been and are being experienced, detrimental to the newly-pacified Indians, to my exchequer, and to the commonwealth; because, when they gave the produce of the land in payment of the tribute, they cultivated and gathered it, and, besides paying the tribute, there was left to them a large quantity of produce, which they kept for their trade and crafts. The result was that the community was well provided with abundance of supplies, at little cost, and with cloth of various fabrics, with which they clothed themselves. The encomenderos shipped these articles to Nueva España, and the returns therefrom remained in the islands instead of being taken away by the Chinese, as is done now; for the stuffs are being bought from the Chinese, and the Indians of the islands no longer manufacture them. Much gold was also taken to Nueva España, from which the tenth was paid to me to the yearly amount of six or eight thousand pesos, not to mention the larger amount which was paid for the tributes of the encomiendas which are assigned to my crown; but since the tribute is not paid in kind, hardly any gold is mined now. Another trouble that results from this is, that the Indians, who are naturally prone to idleness, easily earn enough with which to pay the tribute and buy stuffs from the Chinese with which to clothe themselves, and so do not manufacture these. In order to remove these difficulties, it would be expedient to impose upon the said Indians the occupations and work for which they and the provinces where they live are fit and suitable, with the raising of cattle; they should also be forced to extract gold from the mines and rivers, for, if this were done, much gold could be obtained from the mines, rivers, and placers. Thus the Chinese trade would cease in a large degree, and the returns from the gold and cloths which might be carried to Nueva España would remain in the land; and that, with the gain which would thus result to the Indians, would make them well inclined to such work, and cause them to do it willingly. The main point to be settled in order that the Indians may be influenced to undertake it is, to make them pay the tribute in kind. And since much attention and thoughtful consideration should be given to what is here pointed out, not only for the welfare of the Indians but for that of the commonwealth—since if the land itself could provide and supply produce and merchandise, that would be more advantageous than to procure them from outside; and the gold and silver which is now taken away to foreign and pagan kingdoms would remain in the land itself—I charge and command you that, as soon as you reach the said islands, you call together my royal Audiencia there; the honored prelates who shall be in Manila, and the superiors of the religious orders—informing of this matter, by letter, those who cannot easily go thither—and confer and deliberate with them on all that is expedient and necessary to be done. In this conference you shall keep in mind the welfare and preservation of the Indians and of the country, and see that the said natives be neither molested nor wronged—striving for this object, that there may be crops and other products of the country; and that, for this purpose, the Indians shall pay the tribute in kind. You will observe the necessary system in taxing them, and will execute whatever decision is reached about the matter; moreover you will inform me of what is being done, and will always be careful to see that the Indians work in some occupation or other and be not idle, since idleness is the chief cause of their ruin.

My governor of those islands was ordered to abolish many false musters and extra expenses which were granted out of my treasury; but I have heard that, although he reduced or abolished some of the said musters, other stipends and extra expenses have since been given which had not been usually paid—namely, to captains, alferezes, and other military officers whom the said governor appointed over the people of the towns. I have also heard that many alcaldes-mayor and other officials have been added and their salary increased, so that where there was only one alcalde-mayor, there are now three, each having a deputy, and all drawing salaries from my treasury. I have learned that the said officials could be reduced in the following way: In the province of La Laguna, one alcalde-mayor, with a salary of three hundred pesos; in the district of Mauban, [53] on the opposite coast [of Luzon], one corregidor, with a salary of two hundred pesos; in the province of Camarines, another alcalde-mayor, with a salary of three hundred pesos, abolishing the office recently established; in the province of Cágallan, one alcalde-mayor; in Pangasinan, one alcalde-mayor; in the province of Ylocos, one alcalde-mayor with the same salary, who could administer the jurisdiction of the district of Bulacan, thus dispensing with the alcalde-mayor lately appointed for that place; we can also dispense with the alcalde-mayor of the town of Ytondo and of the coast of the city of Manila, all being districts and suburbs of that city, leaving them under the jurisdiction of the alcaldes-in-ordinary of the city of Manila, as in former times, so that one alcalde might administer justice in the suburbs during six months of the year, and the other serve in the city. It would also be expedient to dispense with the alcalde-mayor lately appointed for the islands of Leite, Zamar, and Babao, which may remain in charge of the alcalde-mayor of Zubu, as they were before; for the natives are troubled by both of these, and it is not desirable to have there more than the alcalde-mayor of Zubu. Moreover, one corregidor with a salary of two hundred pesos would suffice for the river of Butuan; in the island of Calamianes, one corregidor is enough, drawing the same salary; in the district of Oton one alcalde-mayor, with a salary of three hundred pesos; in Panay, one corregidor, with two hundred pesos salary. Let no alcalde-mayor or corregidor have a deputy except in his absence, and then without a salary. I charge and command you that, when you arrive at the said islands, you thoroughly investigate all the aforesaid matters, and secure information thereon; and ascertain what offices, salaries, and extra expenses have been added, and the reason and justification for doing so. You will correct and reform what there is to remedy and reform, so that, by taking the necessary precaution in everything, whether it be in the administration of justice or other matters, you will prevent as much as possible any waste of my funds; for you see how necessary this is, on account of the many expenses and works which must be supported by the treasury.

I have also heard that one of the things by which my exchequer is most defrauded, and the inhabitants of the islands most wronged, is to be found in the lading and despatch of the ships for Nueva España with merchandise; for the governors, for several years, have appointed to that duty various personal dependents and friends, who have succeeded through illicit means in lading the ships with their own goods and even those of their relatives, friends, and others; and all the cloth which is shipped beyond the general apportionment goes without paying the duties. To remedy this it would be expedient that hereafter the allotment of freight be made in the presence and with the supervision of the governor and other persons appointed for it—an auditor and a royal official, appointed each year in turn, beginning with the oldest ones; and that immediately after the said apportionment the royal official make a copy of it. The persons to whom the said cloth is allotted should go with their inventories in order to value the goods and pay the duties in the presence of my officials, who would give in return a permit for lading. One or two of the officials should be present in the port of Cavite, the place where the ships are laded. Likewise the lading of the ships ought to be witnessed by the freighters who are usually appointed, and by an auditor, in order to prevent the lading of goods not included in the apportionment and for which no permit was given by the said officials, as an acknowledgment that the duty was paid. Since it is not right to allow opportunity for the irregularities and fraud which are reported to have occurred, and of which the citizens have complained, I charge and command you to restore order and to employ the remedy which most fits the occasion, appointing for the allotment of the merchandise and the lading of the ships persons in whom great confidence can be placed. You will see that all this be done according to equity, by being yourself present at times, if that seem best, and you will take the necessary measures that my royal rights be in no manner defrauded.

I have heard that the ordinances are disregarded in assigning encomiendas of Indians, and that some persons who are enjoying encomiendas for life relinquish these, in order that they may be bestowed on others whom they choose, and influence the governors to assign the encomiendas to those persons. Since through many decrees of the emperor and king, my sovereign, it is decreed and ordained that no such relinquishment and renunciation of Indians be made, and that encomiendas of this sort may not be allotted, I command you to observe and strictly carry out what is ordered by the instructions sent to the governors your predecessors, regarding the equitable manner in which the Indians of those islands must be allotted to the persons who are most deserving, and have rendered most service therein. Again I order and command you not to confer relinquished encomiendas, or assign them again, without notifying me of it, so that I may order what seems best to me. In case you shall have disposed of such encomiendas, I order that such allotment be null and of no effect.

I have been informed that it has become the custom in these islands to grant at the cost of my treasury the wine for the celebration of mass to the priests of the orders—not only to those in the encomiendas allotted to my crown, but to those in private encomiendas; and that there is no obligation to grant this aid to the doctrinas in private encomiendas. I therefore command you to give orders that no wine for the celebration of the mass be granted on the account of my treasury to the secular priests, or to those who give instruction in private encomiendas, for it is the duty of the encomenderos to provide the wine.

Orders were given that for just reasons, and for the welfare and preservation of that commonwealth, the governors your predecessors were to name and appoint a certain number of regidors from trustworthy men; but I have been told that the said governors have, through bribes and other means, appointed to these offices certain persons who have not the requisite and desirable qualifications therefor. I therefore charge and command you to make a thorough investigation of the matter, and to remove the regidors whom you find to have been appointed through questionable means, or who are unfit for the office. You will replace them with men possessing the necessary character and ability. Let there be only eight regidors, which seems to be a sufficient number for a city of that population. You will inform me of the men whom you appoint, and of their qualities.