The governor has many annoyances regarding the Audiencia, which circumstances compel him to endure as best he can. He is directed to check trading by government officials, and to punish those who are guilty; and to do all that he can to obtain funds from the islands for their expenses, by opening the mines of Luzon and trading-posts in the Moluccas. In answer to his complaint that the auditors meddle in judicial proceedings in the military department, he is informed that they must observe the laws already enacted for such matters; and is ordered to punish severely anyone who shall obstruct the course of justice in the islands. Fajardo recounts various other annoyances experienced at their hands—they claiming authority to restrict the Chinese immigration, and the right to appoint certain minor officials; and he regrets that the auditors should be all new at one time, and so ignorant of their duties. He suggests that the king avail himself of the abilities of Archbishop Serrano, in case of his own death or other emergency requiring an ad interim governor; and describes the character of Auditor Rodriguez. The trials of persons involved in the scandal at Sancta Potenciana have not pleased the governor, some whom he regards as guilty having been acquitted. The official inspection of the country, especially for the sake of the natives, Fajardo has committed to Auditor Mesa, but the latter is unwilling to undertake it. The Council order that no auditor shall shirk this important duty. The governor mentions in detail various minor matters, showing anxiety to act as the home government shall approve. He has been ordered to reduce military salaries, but objects to this, and enumerates the amounts paid to each officer. Directions for arranging this reduction are given by the Council, as also for the governor’s management of expenses, etc., Fajardo makes recommendations as to certain crown encomiendas, at present unproductive. This is approved by the Council, who order him to prevent any unjust collections. He commends certain officers as deserving rewards, and exonerates many of the religious from the blame of harassing the Indians. He is able to maintain amicable relations with the orders, especially by allowing the religious to transact certain secular business for him; but he finds them domineering and self-willed, and suggests that they cannot be kept in order without some change in their present mode of government. He is advised to check their arrogance, especially in their open and public censures of their superiors, whether ecclesiastical or secular. He relates his difficulties with Pedro Alvarez over the countersigning of Sangley licenses. He has sent an expedition to attempt the opening of mines in the Igorrote country—an undertaking in which he has received the support and countenance of the religious orders. He commends the Augustinian Recollects as not meddling in governmental affairs that do not concern them, and offering to take distant