Of the ships which I informed you were being built, one is in Cavite, and the other, it is supposed, can be completed by Christmas, each of them of a thousand toneladas of the North Sea.  Two galleys are likewise being finished, which makes a sufficient fleet for anything which may happen here.  By the way, I inform your Majesty that finding no remedy for the thefts of rigging, on account of the many foreign ships that arrive here, I have had a black thread put in the rigging belonging to your Majesty, so that it can be recognized and this loss will be obviated.

I found the natives of these islands exhausted by the harsh repartimiento which obtained of personal services, from which the rich and powerful chiefs were exempted, and the wretched people so burdened that they had not enough with four pesos a year for each Indian, and now they have it with four reals.

The affairs of the province of Cagaian are in a better state, for with the entry made by the two companies which I sent, more than a thousand of the rebels were reduced, with a considerable quantity of silver recovered which they had taken from the churches; and, under a general pardon, more of them are continually becoming peaceful.

For the punishment of the Camucones, a people who are accustomed to rob these coasts in vessels so light that they rely upon these alone, I sent a captain who has had experience in their islands (which extend from Paragua to Borney), with fifty-five Spaniards and more than six hundred Indians.  They found none of the people, as they had all retired from that kingdom to the island of Mindanao and the coast of Caraga.  An entry was made, whereby more than five thousand tributarios were reduced to peace.  Here in the neighborhood of Manila a great many Negrillos from the mountains have been reduced and settled, who used to inflict great injury on the neighboring villages.

Of the quarters which I informed you were being built for the infantry, three are finished, the best which I have seen, where about three hundred men can be lodged.  I believe that the governor will continue so beneficial a work.  I have brought all the troops inside the city, whereby it and its suburbs have been in peace, without a wounded man having been under care for eight months, where so many used to be killed every month.

The city had decided to build a stone bridge over the main river.  It is begun, and, if it is finished, it will much increase the value of property, and be of the highest benefit to the community and to the persons who hold property on the other bank.

The ship which I despatched to Japon for military supplies arrived at Nanguaciqui, where they took precautionary measures until the emperor was informed.  This resulted in their being notified a few days later that they must return without trading at all, and make it known that no vessel should go from these islands under pain of death, on account of the religious which they conveyed from here; accordingly, it is impossible to enter that country alive.  The ship returned, and this year goes as the admiral’s ship to Nueva Espana, of which the new governor will inform you.