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 On the arrival of the expedition at Cananore, De Gama related to the king how gratified his sovereign had been by the reception which his fleet had formerly received, and presented him with a letter and numerous presents. He then narrated the course of retaliation which he intended to pursue with the king of Calicut, expressing a hope that the merchants of Cananore would have no dealings with those of Calicut, for he intended to destroy all its ships, and ruin its commerce. This vindictive policy seems to have gratified the jealous Cananore king, for "he swore upon his head, and his eyes, and by his mother's womb which had borne him, and by the prince, his heir," that he would assist the captain-major in his work of revenge by every means in his power. Upon which De Gama "made many compliments of friendship to the king on the part of the king his sovereign, saying that kings and princes of royal blood used to do so amongst one another; and maintained good faith, which was their greatest ornament, and was of more value than their kingdoms."

Having arranged how the king of Calicut and his subjects were to be disposed of, his majesty of Cananore returned to his palace, and matured with his council the measures to be taken so as to carry out wishes of his friend and ally the king of Portugal. In matters of trade it was agreed that a fixed price should be set upon all articles offered for sale, and that there should be no bargaining between the buyer or seller for the purpose of either lowering or raising prices. The chief merchants of the city and natives of the country were to arrange with the