Acuna writes to the king (July 15) about various business matters.  He asks for money with which to make restitution to certain Chinese, and for royal favor to Christoval de Azqueta.  Much fear of a Chinese invasion is felt in Manila.  Trade with the Japanese is in good condition; but Acuna refuses to let them bring money to Manila for investment.  Acuna makes various recommendations as to officials, their appointment, and the official inspection of their conduct; and asks that the royal treasury of the islands be properly inspected and regulated.  In other letters of the same date, the governor urges at some length that the Audiencia at Manila should be abolished.  The Spanish population is so small that the Audiencia has but little occupation; the auditors bring to the islands numerous relatives or friends, for whom they secure the offices and benefits which rightfully belong to the inhabitants; they appropriate the best of the Chinese trade and of its profits, compelling the citizens to stand aside; and they tyrannize over the latter in many ways.  The auditors interfere with the affairs of the military service, and hinder the governor from performing his duties.  The expense of their salaries is a heavy burden on an impoverished country, and the treasury has not enough means to meet the demands constantly made upon it.  The people are discontented and clamorous, and they ought to be freed from this encumbrance.  A postscript dated July 19 refers to the king a dispute between the Audiencia and archbishop regarding the seminary of Santa Potenciana.

Letters from Pedro Chirino (undated; 1604?) to the king ask for royal grants to aid the Jesuit seminary for boys at Cebu.  In support of this request he cites the benefits derived from this school by natives as well as Spaniards, and the ministrations to all classes by the Jesuits in charge of it; and adduces the testimony of various witnesses, secular and ecclesiastical, to the same effect.  His request is granted by the royal council.  By a decree of December 31, 1604, the Spanish government regulates the trade of the American colonies with the Philippines.  The substance of previous decrees is rehearsed, and Felipe orders that the trade of the islands with Nueva Espana be continued, although under some restrictions.  The commander and other officials are to be appointed by the governor and archbishop at Manila, and chosen from citizens of the islands.  The officials of the ships may not engage in trade, and the salaries of the two highest are fixed.  Provision is made for more rigid inspection of vessels and their cargoes, for equitable allotment of space, and for the safety of the crews.  Freight charges are to be moderated and regulated; additional duties on goods are levied, and provision is made for the care and expenditure of these, also for inspection of cargoes and money shipped at Acapulco.  No person may go to the Philippines unless he shall give security for his permanent residence there.