After this earnest efforts were made to come to friendly terms with the natives, and they were told of the treatment which had been accorded to the first ones.  Several of those who had not been in this group declared that they desired no peace or friendship with the governor, or with his people; nor did they wish even to see or hear them, as no profit resulted to them thereby.  On this account arguments were given pro and con; and in view of their obstinacy it was necessary to undertake to subdue them.  This was done in many places, especially in a well-populated province named Panpagan [Pampanga], near this city of Manila.  Demands and admonitions were given to all that they should render obedience to his Majesty.  Those who refused to do so, it was necessary to fight and subdue, which was accomplished without much damage.

When the affairs of this country were in this condition, the governor heard of the arrival of two ships, the “Santiago” and the “San Juan.”  This caused universal satisfaction; and although the ships arrived in a bad condition, they were repaired as well as they could be, in order to make the return voyage to that Nueva Spana.  The same pleasure was experienced at the coming of Don Pedro de Luna [83] in the ship “Spiritu Santo.”  Of the three ships, two were despatched last year; but on account of their late departure they experienced stormy weather on the sea, and were compelled to put into port again.  Accordingly, God willing, they will sail at the beginning of the month of July of this year, 1573.

On the twentieth of August of the past year, 1572, our Lord was pleased to call to Himself the governor, Miguel Lopez de Legaspi.  He died suddenly, having that day arisen in good health.  In his cabinet a provision of his Majesty was found, issued by that royal Audiencia during his administration, on account of the death of the viceroy, Don Luis de Velasco.  Therein were designated the successors of Miguel Lopez; and the office at this time fell to the treasurer, Guido de Labasaris.  The authority was therefore delivered to him by the master-of-camp, his Majesty’s officers, the cabildo of the city, and other officials.  Everything is at peace and at his Majesty’s service.

At present we reside in this city of Manila, in this island of Luzon, which is the most important of these districts.  Both the former and the present governor apportioned the land, and the inhabitants thereof who were pacified.  Thus as the land is subdued, it will be divided.  Taxation is imposed in such a manner that every tributario must pay annually a piece of cotton cloth, which is very abundant in these islands.  It must be ten [?] varas [84] in length and two varas wide.  It is a thin cloth used by the natives for their clothing.  Moreover, there must also be given two arrobas of rice, and one hen.  It must be understood that this can be levied without difficulty, as there is an abundance thereof, and everyone possesses these articles.  There are many people, so it is evident that there will be some very important repartimientos, yielding good profit.