The viceroy had indeed made ready to sail for Diu with a fleet of 160 sail of vessels of different kinds, having 5000 soldiers and 1000 pieces of cannon, when advice came that the Turks had abandoned the siege.  On this intelligence he dismissed all the trading ships from his fleet, still retaining 90 sail, with which he set out for Diu, but proceeded so slowly as if some evil omen had threatened his ruin at that place, since he not only avoided it while environed with danger, but seemed afraid to visit it in peace.  Hearing that it was still infested by Lur-Khan and Khojah Zofar, he sent Martin Alfonso de Melo against them with his galley, together with the vessels that had been there before under Antonio de Menezes.  Melo was too weak to be able to do any thing against the enemy, and had to seek protection under the guns of the fort.

At length the viceroy sailed for Diu on the first of January 1539; but the fleet was dispersed by a storm to different ports, two gallies and some other vessels being lost.  He arrived however at Diu with 50 sail; and having given all due praise to Antonio de Sylveira for his valiant defence, he repaired the fort and confided it to the charge of Diego Lopez de Sousa, who had been nominated to the command by the king.  A treaty of peace was set on foot with the king of Guzerat, which was concluded, but very little to the advantage of the Portuguese, which was attributed by common fame to the covetousness of the viceroy.

During this year 1539, the viceroy sent Ferdinand de Morales with a great galleon laden on the kings account to trade at Pegu.  Morales was induced by the king of Pegu to assist him against the king of Birmah, who had invaded the kingdom of Pegu with so prodigious a power that the two armies amounted to two millions of men and 10,000 elephants.  Morales went in a galliot having the command of the Pegu fleet, and made great havock among the ships of the enemy.  The king of Birmah came on by land like a torrent, carrying every thing before him, and his fleet was so numerous that it covered the whole river, though as large as the Ganges.  Morales met this vast fleet with that which he commanded, at the point of Ginamarreca; where, though infinitely inferior, he fought a desperate and bloody battle.  But overpowered by the multitude of the Birmans, the Peguers deserted Morales, who was left alone in his galliot amid a throng of enemies, against whom he performed wonders and long maintained the battle, doing astonishing execution; but at last oppressed by irresistible multitudes, he and all his followers were slain:  Yet the memory of his heroism was long preserved among these people.