dden to carry on the China trade; this would quickly restore its
conduct by the Chinese themselves, and funds to the royal treasury
from the increase in customs duties. Manila is the only market for
this trade, and can easily hold it. The Portuguese have even carried
their insolence so far as to attack the Chinese trading ships (for
which the Audiencia has neglected to render justice to the Chinese);
they also ill-treat Spaniards who go to trade at Macao, and deal
dishonestly with those who let them sell goods on commission. If
the Portuguese are forbidden to trade in Manila, the Chinese will
again come to trade; the citizens will enjoy good profits on their
investments, and incomes from their possessions in the Parian. This
memorial by Navada is discussed by the city council, who unanimously
decide to adopt his recommendations and to place the matter before
the governor and the citizens. The Spanish government favor (1634-36)
depriving the Portuguese of the Manila trade, and decrees are sent
to the islands empowering the governor and other officials to do
what seems best in the case. To these papers are added a letter to
the king by Juan Grau y Monfalcon, urging that the decree of 1593
be reissued, forbidding any Spanish vassals to buy goods in China,
these to be carried to Manila by the Chinese at their own risk. He
submits, with his letter, tables showing the comparative amounts of
duties collected at Manila on the goods brought by the Chinese and the
Portuguese respectively; also a copy of the aforesaid decree of 1593.

A royal decree of February 1, 1636, prolongs the tenure of encomiendas
for another generation, in certain of the Spanish colonies, in
consideration of contributions by the holders to the royal treasury;
and various directions are given for procedure therein. The procurator
Monfalcon, in a letter to the king (June 13, 1636), commends the
military services of the Filipinos, and asks for some tokens of royal
appreciation of their loyalty.

An account of conflicts between the civil and ecclesiastical
authorities in 1635-36 is taken from the _Conquistas_ of the
Augustinian writer Fray Casimiro Diaz. With this main subject he
interpolates other matters from the general annals of that time. Among
these is a relation of the piratical raids of the Moros into Leyte
and Panay in 1634; the invaders kill a Jesuit priest. In June of
the following year arrives the new governor, Sebastian Hurtado de
Corcuera. At t