The seventh is in regard to the Chinese merchants who refuse to sell their goods in Canton to the said Portuguese of Macan, saying that they prefer to bring them at their own cost and risk to this city in their champans to sell them to the inhabitants of this city, and to enjoy in their entirety the profits and gain which they can thereby get. In order to dissuade these men from that purpose and resolve which they have had, the said Portuguese have offered (as many Chinese merchants who have come to this city this present year have said) for the sake of peace to bring the goods of the said Sangleys to this city at their own account and risk in order to sell them here—as they could do, if they should carry them—making a contract, by which for their administration [of this business] they were to get five per cent. That has been seen now for two years, during which they brought in this way more than one hundred and fifty thousand pesos on account of Sangley merchants of Canton. They also take the funds of the Chinese to make a return at so much per cent, and bring it to this city, so that the Sangleys may not come here with the said goods. That is a well known fact, and has been learned from some of the Portuguese of Macan themselves. The said Portuguese make those efforts in order to have the monopoly for themselves of the merchandise brought to this city from the kingdom of China, and so that all might pass through their hands; since, in whatever form the aforesaid goods are brought, the Portuguese prove to be so interested, and, for the same reason, as has already been stated, the inhabitants of this city come to be so despoiled of their wealth. No less [injury] is possible, except that, if the said trade is not suppressed, they will finish by losing the little that they have within very few years.

The eighth. In regard to the aforesaid, we must consider that the said Portuguese of Macan have always refused to agree by way of pancada on a general price, although the said pancada is so usual among them in all parts where they buy and sell. During one of the last few years, having agreed to the said pancada, and in order to begin it having appointed a person both on their part and on that of this city, when the prices were set those of Macan refused to accept them, as they were not so high as they wished. For always with the consideration of having a port to leeward (which is that some of the said Portuguese remain in this city to sell their goods which they have left over, in which no opposition has been shown them, either, although it is so much to the prejudice of the common welfare of this city), they become obstinate in whatever they desire—those who spend the winter making a monopoly of their merchandise that is left over, selling it at very high prices to the inhabitants who need it, and selling some to the Sangleys of the Parián. The latter afterward retail such merchandise to all manner of persons, doing that in the course of the year with some gain.

The ninth point, and one which ought to be carefully considered, is, that besides some of the Portuguese remaining in this city who come from the city of Macan with the said merchandise, with the intent and for the causes stated in the above article, they accomplish their ends in another way, no less injurious to this community—namely, that some of them have sent a very heavy export of their merchandise in the ships despatched to Nueva España, although that is so stringently prohibited by decrees and orders of his Majesty. Taking advantage of the said opportunity, they sent it by the hands and under the names of persons of this city, who have protected and are protecting them. Although this city, on account of the notice given to it of this conduct, has made all possible efforts to prevent so harmful a proceeding—having even requested and received letters of excommunication, which have been read and published in the churches—yet it has not been learned that these have been sufficient to prevent it. This is verified by the unlading of the flagship “Santa Maria Magdalena,” which was despatched from the port of Cavite in these islands in the first part of August of the past year, six hundred and thirty-one, for Nueva España, but whose voyage did not take place, because of the disaster that happened. Through that mishap it became known what the Portuguese of Macan had embarked in it, as can be related by Captain Andres Lopez de Azaldiqui, depositary-general of this court, who was present at the discharge of cargo with a commission from this city council.

The tenth is, that what the ships bring from Macan is only silks, in bundles and in fabrics. If they have brought any cotton cloth needed by the poor, each piece of cloth has been sold at three or three and one-half pesos. The same price is received for one cate of sewing thread, and a dish of average quality sells for one real; and notwithstanding that they bring but little of this for the supply of this community, they have always sold the said articles at the prices quoted, because of reducing the cargo of the said ships to the said silks and stuffs, on account of the profits arising from such freights. The ships give little or no place for the lading of cotton cloth and other wares needed so badly by the poor, because of their volume and of the little profit made from such cargoes. Such things are also needed by those who are not poor; and even a single ship of those usually brought by the Sangleys from China to this city fills the land with the said common goods, which are so necessary, as can be understood; and the poor are supplied with these by the convenience of their prices, which are very low. They are still lower when a number of ships come, as was formerly the case. That is verified by the few which have come with the said goods for some years past, so that these articles have been valued at prices so low as the fourth part, and less, of the prices at which they have been sold by the said Portuguese, as has been stated.

The eleventh is, that it would not have been any trouble for the Chinese to come to engage in this trade with a quantity of goods—as they did before the Portuguese represented to them the dangers of enemies or the other things aforesaid—if the trade of Macan had been suppressed. For the greed of gain, which they are so well known to possess, would have conquered everything, and they would come here; since an outlet for the merchandise in which they trade in China must be sought beneath the water. If the Chinese can know for only one year that no ships have come from Macan to this city, it is certain that they will come, and that beyond all doubt. Also the reëstablishment of the trade of the said Chinese will be effected; and, since there will be great abundance in the goods which they trade, the customs duties will amount to the sums which I have already stated. Consequently, there will be a stop put to the loans, so numerous and usual, that we are wont to require every year from the inhabitants in order to supply the needs of the royal treasury; or at least the loans will not be so large, since the said duties will be able to supply much.

The twelfth is that, as is well known, in the merchandise brought by the Portuguese from the city of Macan to this of Manila, there are no articles that can, with known reason, have an outlet with profits or even without profits, in any other part, because of this—namely, that what they take to Japon is only raw silk, which they call of the first value, and the cream of that of China, whose products they bring here. No other thing is used in Japon; and the skins which they also carry, besides being in small quantity, are but little used by the Japanese, according to their customs; so that all the rest which the inhabitants of Macan buy is for conveyance to this city. If they do not come here with it, then, it is certain that they will not buy it. Consequently, the Chinese will come with it, for it is their trade, and they have to procure an outlet and profit for their merchandise.

The thirteenth is that the efforts exerted by the said Portuguese of Macan in preventing the commerce of the Chinese have been by as many roads of state as they have been able to attempt. This came to such a pass that a ship returning from this city to that of Macan, whence it had come with merchandise, with some Portuguese aboard it, while coasting along the Ilocan shore some two years ago, sighted two ships of the Sangleys, which were coming from China laden with merchandise to this city. The said ship from Macan attacked them while passing, and chased them, the while discharging its artillery, with the intention of pillaging and sinking them, and preventing their coming here. By the strenuous efforts that they made, the Chinese escaped from their hands, although they received great damage from the artillery. Through the delay that they suffered in these perils, their arrival here was postponed, and having entered the bay during a terrible storm, one ship was wrecked in the neighborhood of Parañaque, and the other in sight of the walls [of Manila]. Consequently, the Sangleys lost their goods, and were in danger of losing their lives. As soon as they entered this city they gave notice of that injury, and this city council having seen the reason of it, voted that an investigation should be made of the aforesaid affair, and that it be done by Licentiate Nicolas Antonio de Omaña, as he was alcalde-in-ordinary of the city. He began to make an investigation, but ceased because the governor said that it belonged to the jurisdiction of the war department. Thereupon the Sangleys—seeing that they would not obtain the justice which they desired in respect to the said investigation; and that the said Portuguese returned to this city, because they did not continue their voyage, on account of the wreck of the said ship in which they were going along the said coast of Ilocos—had recourse to the royal Audiencia of these islands, where they filed a complaint against the Portuguese who was leader of the said ship, and the others. From the papers which were drawn up, it resulted that the said Audiencia ordered the said Portuguese who was commander of the said ship to be arrested. That was done, and the latter was a prisoner for many days in the houses of the city council, until at the end of some time he was freed, without any one knowing in what condition the said case remained.

The fourteenth is, the long experience that we have of the injuries that have been committed on the Castilians who have gone from this city to the said city of Macan in the Portuguese ships, with some money which they have taken to invest and with which to pay their passage and the freight on their investments. Having reached the said city of Macan they are arrested, and the said money is sequestered. Some who have escaped this harsh treatment have taken refuge in churches, and have at last embarked, fortunate to be at liberty with their money, in order to return to this city. Having gone through those kingdoms and experienced the delay of the long time during which they have been suffering this molestation, and the others who, as aforesaid, have escaped it by availing themselves of the said churches, these have employed their capital in buying the merchandise of the Portuguese of that city—and always at so high prices that, from one hand to another, the Portuguese gain twenty-five or thirty per cent with our people. For no lesser rate was open to the latter, in order to redeem themselves from the injury inflicted on them, of little or no liberty; while the Portuguese have so much freedom in this said city, as has been and is seen, as I have already stated. Consequently, what our people have brought from that city has always been too dear, by reason of the aforesaid profit which the said Portuguese have made of it. They, not content with this, have (as is well known also), whenever opportunity has arisen to send any ship of his Majesty from this city to bring back at his royal account military supplies for the provision of the royal magazines, refused to let these be bought by the hands of those who have the matter in charge, but [insist that it be] by those of inhabitants of Macan. Thus they make use of what goods they have, and sell them at the prices which they choose. That has always resulted in great loss to the royal treasury, which is sufficiently notorious, because it has been said openly by all who have gone from here for that purpose. Such comment has not been less, even though many citizens of this city are so patiently enduring such injustice; for, these having delivered their goods to the said Portuguese that they might take them hence to the said city of Macan and invest them, and bring them back or send them the proceeds, the Portuguese have kept the goods, and have not thus far made any return to our people. For that reason those who sent the goods have been completely ruined by such great losses, which in their total amount to a very large sum. With that, and with all the profits and gains aforesaid, those of Macan are today known to be very powerful, and to have great wealth—although they had no considerable wealth in the said year of six hundred and nineteen, when they began to come here to avail themselves of the said trade.

The fifteenth is, that if the trade of the said Portuguese ceases, there can be no doubt that the Sangleys will come in their ships from China, laden with merchandise, in order to sell it in this city. And even should this not be to the number of those who formerly came, nor with so great an amount of goods during these first years, yet with the few that do come with valuable goods, and with those which can come from the island of Hermosa, and the wax which is obtained in these islands, there will be enough goods to complete the two hundred and fifty thousand pesos which his Majesty allows the inhabitants of this archipelago to trade with the said Nueva España—and even to exceed that amount, in general, according to the scarcity of wealth that they have today. The great investments which are made today through the hands of agents who are here—who have the money of certain citizens of Mexico in large quantities, many thousands of pesos, with which they disturb the trade and commerce of our citizens—will be prevented. For, as these men who have the agencies enjoy an interest of ten per cent of what they thus invest by their own authority (even though it be bought very dear), they will not consider the removal of obstacles in the prices of the merchandise—making them exceptions to the general loss of all this community; for the Portuguese have continued their sales at the same prices, without its having been possible to apply the corrective which so great an injury demands. If that loss cease, our citizens alone will enjoy the said investments, complying therein with his Majesty’s will, and will make them at favorable prices, whereby considerable profit will accrue to them. For this they will share the merchandise which will come, both from China and from the island of Hermosa and other places, in accordance with their means. From it will also result another advantage with the coming of the said vessels from China, to the citizens who have possessions in the Parián, who will thus have someone to occupy those possessions. The limited time during which the said Sangleys are wont to remain here will be worth more to those citizens than the rent and payment for their property which they now usually obtain for all the year. With that income the tax which they ought to pay for the arable land in the said possessions, at the [current] values of this city, will not be so long delayed, and will be paid with greater ease, promptness, and willingness than is done now; for, as is well known to this city council, about eight thousand pesos are owing to the said public property for the said reason, according to the accounts that have been rendered by Juan de Arguelles and Juan Lopez de Andoin.

The sixteenth is for an argument that, if the trade of the Portuguese of Macan cease, the said [Chinese] will have to conduct the trade as they did before in the said merchandise, because they will have no other outlet for it, except in this city. This is proved because in the revolts of the Sangleys here, in the first part of October of the former year six hundred and two [sic], more than twenty thousand Sangleys having been killed and their possessions ruined—of which advices were taken to China by more than ten of their ships which escaped and carried the news—nevertheless, by May of the year following the same ships came to this city, in the number and with the amounts of goods with which they had come in the years preceding. They continued that in the following years, as if the aforesaid punishment had been a benefit to them. They did that for the reason above mentioned, of not having any other outlet for the said merchandise in which they traded.