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Rh Sumatra, while Portugal was acknowledged to have the rightful possession of Brazil for two hundred leagues west of the eastern extremity.

In 1526 another vain attempt was made at a settlement, and in the mean time war between the representatives of the two nations had broken out in the Moluccas. By 1529 the two royal houses had become united by a double marriage and a second Spanish expedition had been unfortunate, so to settle the difficulties Charles V. by the treaty of Saragossa gave up his claim to the Moluccas to Portugal for 350,000 ducats, but retained the right of redemption. On the other hand, if the line should ever be accurately fixed and the Moluccas be found within Portugal's division, Spain was to repay the 350,000 ducats. Meanwhile a new Demarcation Line, more accurately described, was to be drawn seventeen degrees or 297 leagues east of the Moluccas. The Pope was to be asked to sanction this treaty.

Spain relinquished the Moluccas but retained the Philippines which were then of no value, and they became the western extremity of their Empire, "las Islas del poniente." As long as Spain held her continental colonies in the New World the Philippines were in Spanish eyes a part of America and in their commercial relations an appendage to New Spain or Mexico. In 1844 the Philippines were transferred