By the crown of Portugal this will be experienced because, if the people of Eastern India alone were to sell goods and to buy those of the Chinese and Japonese, they would obviously gain more and be able to pay higher customs to your Majesty; for when the sellers and buyers are many and different, all is to the advantage of the Chinese and Japonese, because then they sell and buy on their own terms.  Under such circumstances your Majesty’s subjects have sustained great injuries, and many times have sold their goods for prices far below what they had cost, in order not to carry them home.  From these circumstances, too, quarrels have arisen in China and Japon between the subjects of the two crowns—­to the discredit of Espana and to the shame of Christians there who see discords among Christians and among subjects of the same king.  The Portuguese, in order not to suffer these injuries, will abandon this trade:  if they do so, Eastern India will be in great danger, especially now, from those who go there from the north.  And your Majesty will even come to lose it; and this through not having wherewith to maintain the fleet by means of which it is protected and prospered, as has been shown by experience.  In the same way your Majesty will lose the city of Macao which you have in China, for as it is in the territory of the king of China, it has no income other than through this trade.

This result will also be experienced by the crown of Castilla, because the trade of Nueva Espana with China serves only to carry thither silver which ought to come to Espana, and to bring from China the silks which might be sent from Espana.  Whence great injuries to Espana follow, as is notorious, through the loss both of the silver of which it is deprived, and of the duties and profits on its silks.  The trade of Nueva Espana with Japon is also unprofitable, because there are no goods on which to secure gain either going or returning, except what they may get from the silks which they carry from China, to Japon, and from some iron, copper, cabinets [escritorios], and similar articles.  Indeed, on account of the before-mentioned disadvantages, it is easier to lose than to gain in this trade; and if it should be expanded your Majesty would suffer other disadvantages.  This has already been seen on some occasions when it has been tried.

The trade of Filipinas with China may be hurtful in so far as the silver carried is concerned, because this might come to Espana.  It is true, the silk trade with China is of some profit to Filipinas as a basis of trade with Nueva Espana—­which cannot be dispensed with—­to supply the things needed from there.  But this silk trade might be substituted by carrying some of the gold of Filipinas to Nueva Espana to buy what is necessary from Espana, to which thereby would come more advantage; and by carrying also some of the silks which the people of Chincheo are wont to take to Manila.  These are bought in this way more advantageously than when