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88 is continued. As all are soldiers and are poor, it is necessary and just that your Majesty concede this in this instance. Likewise there is exemption for thirty years from customs. This amounts to a mere pittance here, and what is brought hither or carried away belongs to the soldiers, who support themselves with this help; for they are given nothing, except a few encomiendas to some, and rations to others who are poor and sick; and these customs duties should be allowed to all, to prevent them from begging.

115. Up to the present time there have been no duties on exports or imports, or any other duties. And as I came during so hard times, and the people were so poor and few I did not dare to impose them. It seems to me too soon to talk of duties until it can be made profitable. This amounts to but a small sum, and whatever is brought from China by the vessels is but a small matter; and if we did not treat them well, they would not return. Deprived of what they bring, we would suffer. Therefore I mean to defer this until we have some galleys fitted up, and possess a firmer grip in this country.

116. In this island the natives have a quantity of gold, in the form of jewelry, with which they trade. There are many reports of gold mines. Because it is reported that the best mines are those in the province of Ylocos, I sent thither the sergeant-major from this camp with forty arquebusiers. He reached those mines, and reports that they are located in a very rough country, twenty leagues inland; that the way thither is obstructed by great forests; and that the country is very cold, and has great pine forests. He brought some metal, all of which I am sending to the viceroy of Mexico; this appears to be worth