Owing to these misfortunes, Sequeira desisted from the enterprise against Diu, and went to Chaul where he found Ferdinando Camelo, who had brought permission from Nizam al Mulk to build a fort at that place, chiefly to favour the importation of horses for his own use, as that trade was then confined to Goa.  The building of the fort was accordingly begun without delay.  As Malek Azz suspected that the establishment of the Portuguese at this place might lessen greatly the trade of Diu, he made his appearance off Chaul with above fifty vessels, and sunk a large Portuguese ship just come from Ormuz.  Azz continued to blockade the port of Chaul for three weeks, doing much damage to the squadron which was opposed to him; yet the construction of the fort went on with all diligence.  Learning that his successor was arrived at Cochin, which rendered his presence necessary at that place, Sequeira forced his way through the enemy, leaving his nephew Henry de Menezes to command the fort, and Antonio Correa with the charge of the ships.

[Footnote 164:  Yet only a few lines afterwards, Antonio Correa is found to be alive and commanding a squadron off Chaul.  Having no means to correct this contradiction, the text is left as published by Stevens.—­E.]

After the departure of Sequeira for Cochin, Aga Mahomet who commanded the fleet belonging to Malek Azz did every thing in his power to hinder the construction of the fort.  To secure the entrance of the river, the Portuguese had erected a redoubt or bulwark on the side opposite the fort, which was commanded by Pedro Vaz Permeo with a garrison of thirty men.  Mahomet sent 300 of his men by night to surprise this bulwark, but they were so valiantly opposed by the small garrison, though the captain and several men were slain, that they maintained their ground till relieved by Ruy Vaz Pereira with a reinforcement of sixty men, who put the enemy to flight after having lost a hundred men.  By this success the enemy were much daunted, and particularly one Sheikh Mamud, a great man in the city, who pretended to be a friend to the Portuguese, yet did every thing in his power secretly to molest them.  On occasion of the defeat of Aga Mahomet, the sheikh sent to congratulate Antonio Correa; who well knowing his treachery, sent him back the heads of his messengers, and hung up their bodies along the shore.  The sheikh was astonished at this act, and now proceeded to open hostilities, encouraging Aga Mahomet to persevere in the blockade, giving him intelligence that the Portuguese were in want of ammunition.  But Don Luis de Menezes arrived with reinforcements and a supply of ammunition and provisions, to whom Correa resigned the command.