This year there came from China eleven or twelve vessels with but little merchandise, because, as they say, there have been many wars and a severe plague.  It has been reported that a ship from Panama or Piru, prepared to lay out a large sum of money, has arrived at Macan, which is on the river of Canton.  As I have stated in previous communications, if it is permitted to carry on trade between Piru or Nueva Espana and China, this country will be depopulated and ruined.  The principal means of support here is the merchandise from China, and the profit which results from sending those goods to be sold in Nueva Espana.  This would be completely done away with, should ships go from that country or Piru to China; for it is evident that, if these ships bought the merchandise needed, there would be no market or sale for the goods brought from these islands.  Neither would the Chinese come here with their ships to sell the goods, or at least not in so large numbers; and besides the general loss to this land, there would be lost the customs duties of import and export.

At my petition, in view of the fact that a large part of the gold paid as tribute had not been declared, and the fifth taken, it was decreed that within a fortnight after the collection of tribute, the gold should be declared, and the registers of collection displayed, before the officials of your royal exchequer, under penalty of losing the third part of the tribute for that year.  The aforesaid was proclaimed and notification was given to the encomenderos of this city, and the decrees therefor were sent to the alcaldes-mayor.  Nevertheless, there is laxity in the declarations; and it would be of great benefit for your Majesty to order the officers of your royal exchequer to exercise great care in this, and to see that the disobedient suffer the penalties. [Marginal note:  “Bring the decrees in this case.”]

Last year a fragata was despatched from this city to Maluco.  Therein were two descalced friars, who were going to that court on business connected with their order; and they carried with them a packet of letters from this Audiencia and your governor.  This fragata anchored in a port of the island of Borney, called El Paso; and the natives attacked them, after having given assurance of safety so that they would land.  They killed one of the friars, and all the men except three or four Spaniards; and burned the fragata, after having robbed it.  Those who escaped say that this attack had been made by order of the king of Burney, and that a Spanish soldier who had gone there had been persuaded to turn renegade.  They pay him a stipend for making plans for stone fortifications, and making weapons and powder.  Your governor despatched a ship, sending a messenger to ask for this soldier; but the reply has not yet come.  Many people were of the opinion that, if soldiers had been in these islands in any great number, a fleet should be sent to attack the said king—­both