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istricts contiguous thereto, Legazpi must try to effect peace and friendship, declaring that he was compelled to enter those districts because of contrary winds; he must gather all the information possible from them, concerning themselves and the Portuguese. Should these vessels thus encountered prove to be armed fleets or pirates, any conflict with them must be avoided. In case of a fight, let him depend on his artillery rather than on grappling. Any prisoners must be well treated, "and after having gained information of everything that seems best to you, you shall allow them to go freely, giving them to understand the greatness of the king, ... and that he wishes his vassals to harm no one." Pirates are to be dealt with as shall be deemed best. All trading must be at the lowest possible price, and fixed figures shall be established. Native weights must be used. The royal officials are to have entire charge of all trading, of whatever nature, and no individual shall presume, under severe penalties, to trade for himself, for in that case prices will be raised by the natives. These officials shall trade first, merchandise to the value of fifty thousand pesos of gold dust [46] for the king, and then ten thousand pesos for private individuals; then another fifty thousand for the king, and so on; but all drugs, spices, and some other articles are the king's alone, and no one may trade for them without his express permission. Careful entries of all trading must be made, and the king shall receive one-twentieth of all the return cargo of individuals in the fleet. Any merchandise belonging to private individuals who do not embark in the fleet shall be traded last, and seven per cent of its returns shall be paid to the king. Slaves may be bought, for use as interpreters, but good treatment is to be accorded them. No Indian shall be captured, nor shall any soldier buy any slave during the time of the voyage; but when a settlement is made they may do so, unless the king order the contrary. Several of them shall be sent to New Spain, however, that "they may be seen here, and from them may be ascertained the products of their lands." In the fortress of any settlement made, two houses shall be constructed, one for Legazpi, and the other for the safe keeping of the artillery and stores; and a ditch and drawbridge are to be made at the entrance to it. The people of the settlement shall live outside the fortress, but in one place. Caref
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