On account of the necessity of visiting the islands of Cubu, Panae, and others near by, and for the arrangement of matters therein necessary for the service of your Majesty, and the preservation of those natives, I went there in the month of November, of last year, seventy-three, and found that the town of Nombre de Jhesus in the island of Cubu was almost deserted, and that its inhabitants were roaming about in the neighboring islands.  I ordered them to assemble and resettle the said town; and since in doing so they would be poor and needy, I gave and distributed among them in the name of your Majesty all that was near at hand.  Then I visited all the other towns until I reduced all things to the order and arrangement necessary, and left the natives quiet and reconciled.  It took me four months to accomplish this so that I returned to the city of Manila in the month of March of this year.

As I considered the friendship of the king of Borney an important matter for the service of your Majesty, I sent to him a Moro, a native of this island, as messenger, with certificates of security so that his people may freely come to these islands to trade, as they were accustomed to do.  For the friendship of this king and the commerce will open us a way for the establishment of a community and the erection of a fort in that island; and if people come [hither from Nueva Espana] it will be necessary for me to go or to send others to settle that island, for the service of your Majesty requires it.

The lord and chief of Bindanao River [96] has also notified me, through letters, that he wishes to be our friend and your Majesty’s vassal.  This is also an important matter, for the place is suitably situated for your royal service.  That river is the most important one in the island and the latter receives its name from it.  If I have the opportunity I shall send men there; and, if convenient, we shall make a settlement there.

In case I have people and ships enough, I intend to send men to discover the islands of Lequios [Liu-Kiu] on this side of Japan.  This will be of much importance to the service of your Majesty.

Inasmuch as this island of Lucon is so large, and as, for the preservation of the natives, we need some settlements of Spaniards to protect and defend them, and teach them our holy Catholic faith, it seemed best to send Captain Juan de Salcedo with seventy or eighty soldiers to people the coast of Los Ylocos, on the shores of a river called Bigan.  There I ordered him to found the town of Fernandina in memory of the prince, our master [97] (may he live many happy years); and I continued to apportion, in the name of your Majesty, all that had been discovered and won over thereabout, reserving for your Majesty what had been ordered me through your royal decree.

The Chinese, in view of the kind treatment that they have always received and do receive at our hands, continue to increase their commerce each year, and supply us with many articles as sugar, wheat, and barley flour, nuts, raisins, pears, and oranges; silks, choice porcelains and iron; and other small things which we lacked in this land before their arrival.  This year they gave me a drawing of the coast of China, made by themselves, which I am sending to your Majesty.