used in the trade with Espana, some in that with the Philipinas, and very little in the retail trade of its own cities and towns; for although Nueva-Espana has intercourse with Peru, it never uses more than the products of the country for that.  What is sent to the islands goes by way of Acapulco, which is the only port in all the South Sea where this despatch is made or can be made.  That Espana would have more silver if it retained within its bounds what it receives, seems to be undeniable, since therein is gathered the silver of Mexico, Peru, and all the Indias.  But the gates by which that silver issues [from Espana]—­now it is known whether there are any—­are, to speak correctly, as many as there are seaports and sterile districts, with the usual and accustomed communication between them.

Accepting this as true—­on which is based assertions of those who say that less silver will be sent to Manila from a kingdom where conditions are such [i.e., Espana] than Mexico [now] gives—­I, at least, no matter how long may be the argument, do not comprehend so obscure a secret; on the contrary, I am persuaded that Espana will be no poorer thereby.  For, if this mouth be stopped, Espana must be drained, by those that remain (as is done today), of all of this article that other kingdoms are offering it, as in a flood.  But with equal certainty, I understand that incomparably more money will go to the Philipinas by this road than now goes by the other.  And to assert that this loss will cease because, with the increase of trade with Xapon, the merchandise which must go to Espana will come from that country, is a statement without foundation.  For if this argument were worth anything, it must have the same force, in preventing what is today carried from Mexico; since trade with Xapon from Manila is open and permitted to all who wish it.

The consulate is trying also to strengthen its proposition with the improvements that it pretends to find in the voyage, if it were to be made by the cape of Buena-Esperanza.  But, discussing that point by what I have been able to learn of it, I find that the emperor and king our sovereign, of glorious memory, your Majesty’s grandfather, having been persuaded that the discovery and conquest of the Spice Islands—­the name then given to those islands today included in the name of Philipinas or Malucas—­pertained to the crown of Castilla, inasmuch as they were within the line drawn by his Holiness, Alexander VI, for the division of the world, ardently desired, and made extraordinary efforts, so that his vassals might make that voyage without touching at the ports and lands of the kingdom of Portugal.  For that purpose he made an agreement with Fernando de Magallanes to discover [such a route].  The latter discovered and gave name to the strait in this region at the south.  Although by the result [of Magallanes’s expedition] one could recognize the great difficulty and danger of the voyage, his Majesty would not desist from the undertaking.