goods and to buy those
of the Chinese and Japonese, they would obviously gain more and be
able to pay higher customs to your Majesty; for when the sellers
and buyers are many and different, all is to the advantage of the
Chinese and Japonese, because then they sell and buy on their own
terms. Under such circumstances your Majesty's subjects have sustained
great injuries, and many times have sold their goods for prices far
below what they had cost, in order not to carry them home. From these
circumstances, too, quarrels have arisen in China and Japon between
the subjects of the two crowns--to the discredit of Espana and to the
shame of Christians there who see discords among Christians and among
subjects of the same king. The Portuguese, in order not to suffer these
injuries, will abandon this trade: if they do so, Eastern India will
be in great danger, especially now, from those who go there from the
north. And your Majesty will even come to lose it; and this through
not having wherewith to maintain the fleet by means of which it is
protected and prospered, as has been shown by experience. In the same
way your Majesty will lose the city of Macao which you have in China,
for as it is in the territory of the king of China, it has no income
other than through this trade.

This result will also be experienced by the crown of Castilla, because
the trade of Nueva Espana with China serves only to carry thither
silver which ought to come to Espana, and to bring from China the
silks which might be sent from Espana. Whence great injuries to Espana
follow, as is notorious, through the loss both of the silver of which
it is deprived, and of the duties and profits on its silks. The trade
of Nueva Espana with Japon is also unprofitable, because there are no
goods on which to secure gain either going or returning, except what
they may get from the silks which they carry from China, to Japon,
and from some iron, copper, cabinets [_escritorios_], and similar
articles. Indeed, on account of the before-mentioned disadvantages,
it is easier to lose than to gain in this trade; and if it should
be expanded your Majesty would suffer other disadvantages. This has
already been seen on some occasions when it has been tried.

The trade of Filipinas with China may be hurtful in so far as the
silver carried is concerned, because this might come to Espana. It is
true, the silk trade with China is of some profit to Filipinas as a
basis of trade wit