The two ships which came this year from Nueva Hespaña arrived in sight of these islands on the tenth of last month, and the captain made the port of Cavite on St. John's day. The Almiranta, not being so good a ship, could not follow him, and remained on the shoal of Mindoro until the fifth of the present month, which caused great loss. The viceroy of Nueva Hespaña writes me that the cause of these ships leaving Acapulco so late was because they had met this despatch and that of the Conde de Monterey for Peru, and that for the coming year he will see to it that it is earlier. This is necessary, for it has likewise been unavoidable, on this account, that those who were going back to Nueva Hespaña should be late in leaving here; for the Sangley merchants, taking warning from the many losses which they have suffered, and the neglect of the Spaniards to pay them during years past, will not give up their cloth without first seeing the silver at hand. Accordingly they waited until the money came before buying the goods and making up the packages and cases, all of which used to run on credit.

I wrote your Majesty by way of Yndia, in November and December past, of the uprising by the Sangleys, and the outcome of it, with what up to that time had occurred to me, which your Majesty will have ordered examined when this arrives. In case my sheets may have been lost, duplicates of them will go with this.

In that despatch I informed your Majesty that I was considering sending a ship to China with information of the event, so that if any ship belonging to the rebels should arrive there and try to place on us the blame for their loss and ours, they might be made aware of the truth. This was done, although with some opposition, and was of so much use that when certain captains learned that this ship was in Macan they determined to come, although with little merchandise—for they came with some hesitation, as they afterward said, as they do not wish vengeance to be executed upon them for the loss which the others had caused by the said uprising. I had the property which was deposited returned to them (which I think amounted to more than [MS. defective] pesos), which was to them a strong proof of our innocence; this was done that they might not credit in China what those rebels who arrived there had published, for they said that, in order to seize the property for ourselves, we had taken the lives of those Sangleys. These goods deposited belonged to quiet Chinese merchants, reputable persons, who were not in the uprising—and even for the most part had hanged or suffocated themselves, at seeing what a plight those of their own nation had put them in, and that their own countrymen were robbing and maltreating them, as is told in the relation of this affair. From the said deposited property had been appropriated, by my order and that of the Audiencia and the council on finances, a sum amounting to more than thirty-six thousand pesos, to aid the troops; and when the affair was over I was quite unprovided and embarrassed, as there were likewise other expenses for fortification and for the exigencies of the service of your Majesty, and there was no other place whence it could be supplied. We cannot satisfy the Chinese at present, as we have not the means to do so; this troubles me much, as I should wish to be able to fulfil the offer I made to the viceroys of China by my letters, which was the restitution of this property, which would remain on deposit until it was surrendered to the owners. As the necessities have been so great since then, we could not avoid deferring this; it appeared best to carry out our agreement with these people by giving them the money, since they had the cloth to sell, but it has not been possible. I beseech your Majesty to be pleased to order that the viceroy of Nueva Hespaña send us this amount for this purpose, as I doubt much if the obligation can be satisfied here for many years. This commonwealth has been greatly consoled at seeing that the Chinese have chosen to continue the commerce, of which we were much in doubt; but they have actually done so. This was made easier by sending the information, and the entire failure of one year; in many ways this loss cannot be repaired. Nevertheless, the lack of money is felt in the treasury; for the duties on the entry and clearance of the goods from China, the royal officials tell me, amount to forty thousand pesos less this year than the year past. I believe that in the coming year we will have many goods here; for the little which they brought this year has sold very well, and they are content and quite satisfied at the freedom allowed them in their traffic, and that nothing is taken from them without their consent, as they were not before favored in this manner.

I have responded to almost all the points of a paper which your Majesty ordered me to write on the sixteenth of February of the past year 1602—as your Majesty will command to be examined in my answer, to which I refer you, merely saying that there I explain everything which might be said in this.

Christoval de Azqueta, captain and sargento-mayor of this camp, has passed more than twenty-eight years in these islands. During all this time he has been occupied in the service of your Majesty in the affairs of war, and a very good account of him has been given. He is one of the most serviceable men I have for this employment; for, besides being a very good soldier, he has wide experience in all the islands and their ports. Likewise I was very well satisfied with his person on account of his having so well and so industriously attended to his duty as sargento-mayor at the time when the Sangleys had invested this city. It being understood that a great body of them had fortified themselves at San Pablo and another at Batangas, and that they were in a region where much food could be obtained on short notice, as it was near the harvest time in those provinces, it was resolved that some person of tried valor should go to punish them, being provided with a number of Indian arquebusiers, archers, and other soldiers, and a few Japanese, with one hundred and fifty Spaniards, and the necessary munitions for that purpose. I chose for this the said sargento-mayor, Christoval de Azqueta, and he left with his troops. He went about it so skilfully that the undertaking was successful, and all the Sangleys were left dead except a few whom he brought for the galleys. Therefore, considering the condition in which this colony was, and the risk which he ran in this service, it was one of the most important which have ever been performed in these islands for your Majesty. I have desired to give the sargento-mayor some testimonial for his honor and gratification, but I have not done so because I had not the means to do so. I have therefore offered him this, to give him a good encomienda; and accordingly it will be given and allotted to him in the name of your Majesty, at the first opportunity. He has, moreover, earned it by the services which he performed long ago. It is fitting that it should be known that your Majesty favors and honors those who serve him, so that others may be encouraged to do the same. It has seemed best to me to give an account of this to your Majesty and to beseech you, as I do, that you should be pleased to command that the affairs and claims of the sargento-mayor always be favored, and that honor and grace be done him; for in this affair I can assure you, the service which he has done here was greater than appears by this writing.

The punishment of the Sangleys being accomplished, there remains to us another care no less great, which is the suspicion we have that within a short time a great fleet is to come from China to take possession of this country, as I wrote your Majesty last year. This arises from the coming of the mandarins, and from information that some of those Chinese who were punished for their guilt in their uprising were trying to circulate. Accordingly all the people were persuaded that this rebellion depended upon that; and at one time a rumor was current to the effect that seven hundred Chinese ships had been seen not far from here—on which occasion it seemed best to me to put things in order as thoroughly as if I had certain advice that the said fleet was on this coast. Among other precautions which I took, I appointed for the company left vacant by Don Tomas Brabo (my nephew, whom the Sangleys killed in the uprising), Captain Juan de Villaçon, as he is a soldier who has spent many years in Flandes, and during that time had been the alferez of Don Luis Brabo de Acuña, my brother; and because he has had experience in the conduct of war in besieged cities—as it was expected this one must be so in a short time, and as we had very few or none to whom we could have recourse in such a case. It was necessary for me to urge and coax him, and he accepted it because it was on such an occasion, and to please me. Although the auditors were in the midst of so many cares, and I was hard at work fortifying the weak places, erecting bulwarks and opening trenches, they issued an act in which they commanded me to make appointments according to the royal ordinances, and that in the meantime there should be no changes—as if that were the time for such offices to be filled by whomsoever the auditors wish and ask to do it, or in which to be considering ordinances, instead of what was most fitting for your Majesty's service and the good of the cause. It was necessary in order to make them understand this, or make them willing to understand it, to use much time and energy; and they finally approved of it as if they were doing me some great honor. By this event your Majesty may see to what tune the affairs of war were going, with demands and responses. God was pleased to bring it about that the information which I sent from Macan caused the Chinese not to collect any fleet in China for the present, and that the merchant ships came; I accordingly dismissed Captain Villaçon, giving him his discharge, seeing that the reason for his accepting the said company had ceased; I have thought best to give an acount of this to your Majesty, that you may be informed thereof, and may have given such order as may be expedient in similar cases which may arise in the future.

The decree which your Majesty ordered to be sent to me with the declaration of the places which must be taken in the processions and public acts by the president, auditors, and prelates when they take part therein together, arrived at a very opportune time, and has been necessary to avoid the troubles which have arisen with the archbishop in this regard, as he would not be persuaded that this was the will of your Majesty; but he is satisfied with the decree.

We are on good terms with the emperor of Japon, and likewise with his vassals who come here to trade and to make money on flour, hams, tunny-fish, nails, iron, weapons, and other things which they bring to sell. They go back with loads of deerskins and Chinese merchandise, as they have always done. This year, owing to the loss of the ship from Macan, they brought some money and spent it. I have overlooked this for the present, and allowed it to be done in order not to displease them. But I have warned them not to bring any more, or I shall not give them any chance to employ it.

The accountant Juan de Bustamante, who acts in that capacity for the royal exchequer of your Majesty in these islands, is very old, infirm, and crippled, for which reason the affairs of his office are not so well expedited as they should be. I last year besought your Majesty to order him retired and pensioned, and to appoint a person in his place. At present I shall again make the same suggestion, as it appears to me important for the service of your Majesty.

The Marques of Montes Claros, [31] viceroy of Nueva Hespaña, last year made the allotment of the money which your Majesty has graciously permitted to be assigned to the citizens of these islands. As this cannot be done punctually in Mexico, and there are in that country interested persons—perchance the very ones who are apportioning the money, or giving their advice therein—there have been many complaints. This could not be otherwise, as Mexico is so far away and they cannot know there what each of the citizens here has and deserves, and what ought to be given them. The viceroy writes that he did the best he could, and could do no better, and accordingly I believe him. He likewise wrote me to send him some information in regard to this matter. What I have done is to appoint eight persons from the most honored of this colony, and disinterested in the matter of partnership, to make the allotment among the citizens, as is done with the cargo, considering what is most expedient and most just and satisfactory for the people; and it has been so done. I have allotted to the distributers themselves their own part because I was not willing that they should allot it. I have sent the memorandum to the viceroy. Your Majesty will be pleased to order that the said allotment be made in accordance therewith, as well as the licenses; and that, this be continued from year to year; for it is most expedient, and with it there will be less uncertainty and fraud.