It is to be noted that this trade of Macan and Filipinas with Japon is the principal thing that should be aided by Espana, for it does not involve the danger of having the silver of the Indias wasted in China, if voyages are made to Macan from Lisboa by way of India, because it comes from China to Portugal, and from Nueva Espana to the Filipinas in return for what is taken to Nueva Espana.  As for the investments made in Macan and Filipinas for Japon, the return for these is silver from the mines of Japon itself.

Now, then, it seems very advisable, for the above reasons, immediately to drive out the Dutch from the island of Hermosa, if there is any possibility and power therefor, uniting the forces of Filipinas, if necessary, with those of Macan—­to whom the question is so vital, both because of the said reason of the commerce (which is of prime importance), and because the island of Hermosa lies in the path of the voyage from Macan to Japon; and also, I do not deny, because it is possible that the Dutch have taken a port in the island of Hermosa in order to conquer Macan therefrom, to which they are very near, as they attempted to do in the year 622.  Therefore, it will be more expedient and convenient to drive out the Dutch from this island of Hermosa as soon as it is attempted; and that will be very gratifying to the Chinese, who are much offended at the Dutch because of the many robberies of their ships in the Filipinas trade that the Dutch have committed for the last seventeen years, and are bitterly hostile to them.  But although it seems that that hostility will be sufficient, for the present, for the Chinese not to make any beginning in commerce in the island of Hermosa with the Dutch, that disinclination will disappear in a short time—­both because of the kind reception that the Chinese will experience from the Dutch, and because the Chinese are so notably covetous that, although they are prohibited under penalty of losing life and property from trading with Japon, some ships laden with silks have gone to that kingdom during the last few years, pretending in Chinese ports that they are going to the Filipinas.

The above is what occurs to me in regard to the first part.  In regard to the second, namely, that it is not advisable for us to have a port in the island of Hermosa, whether the Dutch are there or not, my opinion is the following.

Since the Dutch are there, one would think it advisable to prevent them by force of arms from the commerce of China.  But for that one must attack either the Chinese or the Dutch.  Since the Chinese are our friends, and since we cannot live in the Filipinas without their trade, I do not see how it can be done justifiably, as they are free to trade with all.  Even should we attempt it, they will oblige us to permit them [to trade as they choose] by taking the trade from the Filipinas.  But if it should have to be by attacking the ships of the Dutch, new and very long and costly wars would be renewed which would complete the exhaustion of the Filipinas, as has been done in those of Terrenate.  Then, too, we would not have greater advantages in this war in the island of Hermosa than in those of Terrenate; for it also is a war to be carried on with ships, and the Dutch have their factories of Japon very near by.  They are not inferior to us in accommodations, although the island of Hermosa is near the Filipinas.