The seventeenth is that, as is well known, as soon as the Portuguese of Macan knew of the post which we took in the island of Hermosa, they tried to obstruct that trade, by sending a religious of their nation to one of the commercial ports of China, in order that he might direct those Chinese not to take any merchandise to the said island. They have persisted and are still persisting in those efforts.

In regard to all the above, as a matter so important, and on which depends the conservation of this community, and so that the citizens of it may retrieve their losses, he petitions that discussion be held, and that this proposition be set down in the record-book; that a decision be reached, and a vote taken in regard to all that ought to be petitioned; and that the royal decrees which treat of all the said matter be observed. Having read and understood it de verbo ad verbum, it was voted that the said proposition be enrolled in the record-book of this cabildo, and that it should be discussed and voted upon. That having been done, in consideration of the fact that the arguments which it contains are so notorious and so well known in this city and by its inhabitants, Manila unanimously and as one man has resolved to inform his Lordship, the governor, of the said proposition; that for its accomplishment all the steps that shall seem to be advisable shall be taken, by writing, until the said effect is obtained—with the consent and advice of the counselor of this city; that the procurator-general of the city attend to all the above, and that they appoint as commissaries those deputed to inform the governor. Thereupon, Captain Diego Diaz, regidor of this city, voted, and said that his opinion is that this affair is one of great importance; and that it seems right to discuss and treat of it with the inhabitants of the community, who are the ones interested. This is his vote and opinion. The governor is requested to be pleased to give permission for the holding of an open cabildo, so that those interested, as they are the ones whom it concerns so greatly, may declare therein the resolution that ought to be taken in this matter. For if the suspension of the coming of the goods from Macan were to happen in any other way, and at the same time those of China should not come, the people would generally complain; and in order that they may not do that, let them be participants in the resolution that shall be taken. In such condition was this vote, and all signed it.

Copy of a section of a letter written to his Majesty, August 14, 1633, by the governor of Filipinas

The trade of Great China also has declined, inasmuch as the Portuguese of Macan have become masters of it, as they are so near; and as they are admitted here, contrary to all good government, they retail the products which the said Chinese formerly brought direct. That causes a great scarcity in these provinces, all of which results in our loss, and in the gain of China, because of the great advance in price over the [former] cheapness—[an excess], moreover, which they carry to their own land. The relief that I believe can be had, although some privation may be felt in the beginning, is that your Majesty prohibit the trade of Macan with Manila, and decree that Portuguese be not admitted into this government. Besides having the above result, your Majesty’s duties will increase; and the commerce of China with the island of Hermosa can be established by this route, and become of importance to your Majesty, although up to the present it has been only an expense. [Decree of the Council: “Collect the papers treating of this matter and the chart of the island of Hermosa; and together with this section take it all to the fiscal, and bring it to the Council with what he shall say. November 25, 1634.”]

[Note: “The fiscal declares that he regards it as very unadvisable to make any innovation for the present, and that the trade now possessed by the Portuguese should be not prohibited; for, since the said trade is permitted to the Sangleys and other foreign nations, who are not vassals of his Majesty, it is not right to prohibit it to the Portuguese; and because if the said trade is prohibited to the Portuguese, the Dutch and other rebels to this crown might seize that site and the trade. Moreover, the advantages which the governor represents as the consequence are not sure but contingent; and the increase which he mentions might not happen, and could not afterward be made up if the Portuguese abandoned that site and that trade ceased. Madrid, December 6, 1635.”]

[Endorsed: “In regard to the affairs of the island of Hermosa and the Portuguese. Refer it to the fiscal. April 15, 636.” “Let account be given so that those decrees may be carried out which were given in order that foreigners might not trade or traffic in the Filipinas Islands—taking note that the Portuguese are included among foreigners, and that the Chinese and Sangleys can trade and traffic as hitherto. In regard to the expulsion thence of the Portuguese who are not living there by the express license of his Majesty, he shall expel them, unless the governor and Audiencia consider that it is not advisable; of which it may be necessary to present information to the Council.”]

Copies of the decrees which were despatched to the governor and Audiencia of Filipinas, and the fiscal and royal officials of them, in regard to the trade which the Portuguese of Macan have introduced into Manila.

The King. To the president and auditors of my royal Audiencia of the Philipinas Islands: Don Juan Grau y Monfalcon, procurator-general of that city, has informed me that the Portuguese people who live in Eastern India have attempted to trade and traffic with those islands, thus hindering the Sangleys from going to sell their merchandise in that city; and that this intercourse was already established, in violation of the orders and decrees issued, to the very great damage and prejudice of my royal revenues and the good government of the islands. He petitioned me to be pleased to have a speedy and effective remedy applied in a matter of so great importance and weight. My royal Council of the Indias having examined all the papers which were presented in this matter, together with what my fiscal said and alleged regarding it, I have considered it fitting to send you a copy of them, so that you may see them. If the report that has been made of this seems to you correct, you shall immediately attend to the remedy for this damage; and I order my fiscal of that my royal Audiencia, by another decree, to prosecute that case and to plead whatever he judges suitable for the advantage and increase of my royal treasury, and the observance of the orders and decrees issued, since that pertains to him by reason of his office. Of all that you shall enact and that you shall continue to do in this matter, you shall advise me. Given in Madrid, November ten, one thousand six hundred and thirty-four.

I the King

By order of the king our sovereign:
Don Gabriel de Ocaña y Alarcon