declared that his associate was not challenged; and the latter, as his alternate, proceeded to try the new challenge, without its being sufficient to contradict it in writing in the session.  The so open enmity between the Audiencia and the royal officials being evident, I have withdrawn the papers until your Majesty be pleased to provide the remedy.  A similar difficulty has happened to me in regard to the appointment of a lawyer in the challenge of the said Don Juan Sarmiento; and it is necessary for the governors to know what pertains to them in such cases, since the appointment of lawyers is not a point of law, but of the direction of that Audiencia as president; and when he is not there they appoint, without considering whether or not there have been judges in the cause.

The two auditors whom Don Francisco de Rojas suspended have died.  Those who are left will attend better to the service of your Majesty anywhere else than in Philipinas.  That will mean the cessation of many challenges and other indignities, as well as the vengeance feared by those who have made depositions against them during the visit.

Your Majesty orders me, by a decree of August 26 of the past year, that in matters of government and expenses of the royal treasury, when at the request of part of my [word illegible], I refer them to the fiscal, so that he may advise according to his judgment.  I have observed that from the commencement of my government, and I shall observe it with greater care in the future; but it will be advisable to have the fiscal ordered to defend, in the disputes with the Audiencia over jurisdiction, the royal decrees which are in favor of the jurisdiction of the government.

Your Majesty orders me by another royal decree of the same date to see that the ships which are despatched from all these islands to Nueva Espana leave every year from this port in the beginning of June.  That is advisable, but it is impossible to establish it this year; for never have these ships left without having to wait for the arrival of the others [from Nueva Espana], in order that [the inhabitants] answer their agents in regard to their [commercial] relations, and because no other opportunity for this arises during the year.  Consequently, although the ships have been, as far as I am concerned, prepared in time with all that is necessary, the inhabitants have not begun to lade them until they have seen those which arrived safely on the twentieth of July.  Since that, the fulfilment of this royal decree touching the two per cent has been discussed, as appears more in detail from the sworn statement of the acts, which I enclose.  From now on I have commenced to order that the ships in the coming year are to set sail without those which are now departing; and that the royal decree of your Majesty must be inviolably kept and observed; but even with this warning in advance the early despatch has many inconveniences.

This year no ships have come from Macan, so that the Chinese have brought more merchandise than usual.  Their main deficiency has been that of not coming laden with woven stuffs; but with the fair treatment that has been given them, it is hoped that a great abundance of cloth of all kinds will come in the first champans.