I have received a report from the said islands, that in so far as the nature of the country and the settlement of the Indians may permit, it would be advisable to order that no encomiendas of less than eight hundred or one thousand Indians be granted, in order that they might furnish tithes for religious instruction and a livelihood for their owners; and that those having but few Indians be allowed, if they so wish, to transfer or sell them to a neighboring encomendero, so that by uniting the two encomiendas a greater one would result, from which it would be possible to furnish the tithes and a livelihood.  I ordered Gomez Perez in his instructions that, in matters touching the sale, exchange, or transfer of the said repartimientos, he should not permit this, as it is contrary to my laws.  I ordered him, however, to exercise great care, so that the repartimientos might prove sufficient for the instruction and the livelihood of the said encomenderos; and also to continue the endeavor to settle the said Indians in fixed abodes, where they should be provided with ample instruction.  Inasmuch as this is the most important matter there, and one to which you must attend with special care and attention, as it concerns the welfare of souls and the Christianity of the Indians—­and it is fitting that you give it preference over all other things—­you shall note that when these small encomiendas fall vacant, you shall unite them, if possible, in order that the above petition may have effect.  Whenever the products and revenues of any encomienda do not suffice for the encomendero and for the instruction, you shall give the preference to the instruction, even though the encomendero be left without resource.  In accordance with the above, I have sent my decree, of which a duplicate will be given you.  This decree provides carefully and assiduously for the reduction of the said Indians in settlements in very convenient districts, hamlets, and localities, as has been done in those of Peru, and as in being done in those of Nueva Espana.

As the suits and controversies between the citizens and between the Indians themselves constitute one of the things most conducive to the waste of property, cause difficulties, and may cause harm in a country so new, because of the ill-will and anger resulting from them, I charged the said Gomez Perez, in his instructions, that although my will was to preserve full justice for both classes, yet that he should, as far as he could do so in a proper manner, endeavor to settle the controversies and suits that should arise, without recourse to law, or proceeding by the ordinary terms, or penalizing the parties with money fines.  Now in order that all may enjoy the blessings which must follow from a government so mild; so that all may live in tranquillity and ease; and so that the great purposes that, God willing, are to be attained hereafter, may not be hindered or disturbed—­I charge you and the Audiencia that, in all that you shall do, you shall act with the prudence advisable in the cases and affairs, and bring about results that can end only in the happiness and welfare of my vassals, together with the spread and knowledge of the faith and gospel that I desire.