[Marginal note:  “It is well.  Observe what is ordained.”]

27th.  The expense incurred in Terrenate, both in the pay and in the reenforcements and other extraordinary demands, is of such nature that it is very heavy, although according to the account, not very adequate; and as yet I have not made it so large as your Majesty has been informed.  It is a fact that, without that drainage of men and money, the expenses here would be much less; and we would get along and live with very small expenditures, and much better.  But it must also be considered that if the enemy enjoy Maluco in quiet, their profits and gains would be very great; and I think they could consequently succeed in whatever plan they wished, and whatever they did would result well.  But because they do not possess it, there is war—­in which he will prevail and succeed better who has more tenacity and force, especially on the sea.  He who will remain lord of them will be lord of many profits and riches, which can be taken from these districts.  Inasmuch as this is a matter that demands a more orderly and full treatment, in regard to experience and certain well considered relations, I shall not involve myself further in it, until I shall be able to do so with these necessary conditions.  But I shall endeavor to do it as soon and as much better as possible.

[Marginal note:  “It is well.  Endeavor will always be made to reenforce and protect those islands and your government with the forces possible.  But as these are limited, and consumed in so many diverse occasions and armies in Germany, Flandes, and Ytalia, and other places, it is highly advisable, as has been written you, to be careful in your expenses and in the accuracy of their account.  It is also desirable that you endeavor to work the mines of the country, and to carry on a factory and the trade of cloves and drugs as much as is possible, so that you may sustain yourselves and may not prove so expensive, as has been represented to you in preceding clauses.”]

28th.  I shall also endeavor to tell your Majesty what I shall ascertain and hear about the duties on the cloves of Terrenate and the factory, taking for that the depositions of the Audiencia and of the royal officials—­which I shall not do now, for want of time.  In the opinion that I asked from them some days ago in regard to sending [a vessel] to trade for cloves on your Majesty’s account with goods and money that I had for that purpose, Don Alvaro opposed me so strongly in everything, that one would think that he considers that the risks are mine and that it is done on my account (as if the gains were mine), rather than for your Majesty’s service.  However, I sent the goods necessary for this trading, because of the gain that results from it and its investment to the royal revenues and the provisions brought from India.

[Marginal note:  “Council.  You have already been answered as to this.”]