In order to destroy the trade between this city of Manila and Great China, and between Macan and Japon—­the former for us, and the latter for the Portuguese—­the Dutch formed a scheme to build a fort on the island of Hermosa.  That is an island between Japon, China, and Manila, which extends north and south for more than fifty leguas, while it is about thirty broad.  The Dutch built the said fort some years ago, and they have been fortifying it ever since; so that they have already erected four cavaliers, in which they have mounted twenty-four pieces of artillery—­besides others that they have mounted on a platform which defends the entrance of the port, as those of the fort do not command it.  The Dutch also have a stock-farm, which they began with cattle and horses brought from Japon.  For its defense they built another large cavalier in which they mounted a half-dozen pieces, and stationed a few Dutchmen to guard it.  They are now at peace with the natives, with whom they were formerly at war and who killed some of their men.  In this way they have been established for some five or six years at that point, which they call Pachan.  The Chinese have gone there with a great abundance of silks and other merchandise to trade.  Consequently, they have made on that account a large alcaiceria, where there are generally more than six thousand Chinese.  The Japanese have also gone there from Japon with their ships, although it is said that they are ill satisfied because of I know not what duties that the Dutch asked them to pay.  From that, notable damage can ensue to Castilians, Portuguese, and Chinese, since the Dutch are in the passage by which one goes from here to China, and from Macan to Japon.  If we have not yet seen the damage so plainly with the eyes, it has been because the enemy are in great lack of ships and men.

In order to counterbalance that scheme and the designs of the Dutch, Don Fernando formed another scheme.  He went to seize another port on the same island of Hermosa, some twenty leguas distant from China and thirty from the enemy.  For that purpose he sent, in this year of 1626, two galleys with many small boats, infantry, and all that was necessary for the settlement, under an experienced captain called Carreno.  They occupied the said port, and it is very good and suitable for our purpose.  As our men entered the port, the whole population, numbering fully a thousand houses of the natives who were settled there, fled.  Entering the houses, they were enabled to see, by the articles that they found there, that those people were intelligent and civilized.  Our soldiers took some food, of which they kept account in order to pay for it—­as they ought to do; since I know not what pretext they could have for showing hostility to the natives, since they had received no injury from them.