the trade now
possessed by the Portuguese should be not prohibited; for, since the
said trade is permitted to the Sangleys and other foreign nations,
who are not vassals of his Majesty, it is not right to prohibit
it to the Portuguese; and because if the said trade is prohibited
to the Portuguese, the Dutch and other rebels to this crown might
seize that site and the trade. Moreover, the advantages which the
governor represents as the consequence are not sure but contingent;
and the increase which he mentions might not happen, and could not
afterward be made up if the Portuguese abandoned that site and that
trade ceased. Madrid, December 6, 1635."]

[_Endorsed:_ "In regard to the affairs of the island of Hermosa and
the Portuguese. Refer it to the fiscal. April 15, 636." "Let account
be given so that those decrees may be carried out which were given
in order that foreigners might not trade or traffic in the Filipinas
Islands--taking note that the Portuguese are included among foreigners,
and that the Chinese and Sangleys can trade and traffic as hitherto. In
regard to the expulsion thence of the Portuguese who are not living
there by the express license of his Majesty, he shall expel them,
unless the governor and Audiencia consider that it is not advisable;
of which it may be necessary to present information to the Council."]

_Copies of the decrees which were despatched to the governor and
Audiencia of Filipinas, and the fiscal and royal officials of them,
in regard to the trade which the Portuguese of Macan have introduced
into Manila._

The King. To the president and auditors of my royal Audiencia of the
Philipinas Islands: Don Juan Grau y Monfalcon, procurator-general
of that city, has informed me that the Portuguese people who live in
Eastern India have attempted to trade and traffic with those islands,
thus hindering the Sangleys from going to sell their merchandise
in that city; and that this intercourse was already established, in
violation of the orders and decrees issued, to the very great damage
and prejudice of my royal revenues and the good government of the
islands. He petitioned me to be pleased to have a speedy and effective
remedy applied in a matter of so great importance and weight. My
royal Council of the Indias having examined all the papers which
were presented in this matter, together with what my fiscal said and
alleged regarding it, I have considered it fitting to send you a copy
of them, so