of his people, and was very well received there; and established afresh with the natives and their chiefs the peace, friendship and submission to His Majesty which they had already offered.  The Commander-in-Chief founded and established a town on the very site of Manila (of which Rajamora made a donation to the Spaniards for that purpose), on account of its being strong and in a well provisioned district, and in the midst of all the isles (leaving it its name of Manila, which it held from the natives).  He took what land was sufficient for the city, in which the governor established his seat and residence; he fortified it with care, holding this object more especially in view, in order to make it the seat of government of this new settlement, rather than considering the temperature or width of the site, which is hot and narrow, from having the river on one side of the city, and the bay on the other, and at the back large swamps and marshes, which make it very strong.

“From this post he pursued the work of pacification of the other provinces of this great island of Luzon and of the surrounding districts; some submitting themselves willingly, others being conquered by force of arms, or by the industry of the monks who sowed the Holy Gospel, in which each and all labored valiantly, both in the time and governorship of the adelantado Miguel Lopez de Legazpi, and in that of other governors who succeeded him.  The land was entrusted to those who had pacified it and settled in it, and heads named, on behalf of the crown, of the provinces, ports, towns, and cities, which were founded, together with other special commissions for necessities which might arise, and for the expenses of the royal exchequer.  The affairs of the government, and conversion of the natives, were treated as was fit and necessary.  Ships were provided each year to make the voyage to New Sapin, and to return with the usual supplies; so that the condition of the Philippine Islands, in spiritual and temporal matters, flourishes at the present day, as all know.

“The Commander-in-Chief, Miguel Lopez de Legazpi, as has been said, discovered the islands, and made a settlement in them, and gave a good beginning to their subjection and pacification.  He founded the city of the Most Holy Name of Jesus in the provinces of the Pintados, and after that the city of Manila in the island of Luzon.  He conquered there the province of Ylocos; and in its town and port, called Vigan, he founded a Spanish town, to which he gave the name of Villa Fernandina.  So also he pacified the province of Pangasinan and the island of Mindoro.  He fixed the rate of tribute which the natives had to pay in all the islands, and ordered many other matters relating to their government and conversion, until he died, in the year of 1574, at Manila, where his body lies buried in the monastery of St. Augustine.

“During the government of this Guido de Labazarris, trade and commerce were established between great China and Manila, ships coming each year with merchandise, and the governor giving them a good reception; so that every year the trade has gone on increasing.”