treachery of the natives. They claim that they are protecting the
friendly Indians, and have nearly broken up the robbery and piracy
formerly prevalent among those peoples. They assert that the natives
are well supplied with food, clothing, and gold, and that the tribute
levied is moderate, and not a burden on the people; also that it is
regulated according to the relative wealth of different classes and
regions. This is illustrated by interesting quotations of prices and
values, and enumeration of goods obtained in trade, and of the products
of native industry. The officials admit that the natives pay tribute
only under compulsion, but say, "They like to be compelled to do so;"
and they consider all poverty among the Indians as due to laziness and
drunkenness. It is also far better for them to pay tribute than to be
raided by the Spanish soldiers for the means of supporting themselves,
as was done before the encomiendas were made.

Two letters from Lavezaris (July 17 and 30, 1574) give account of the
past year's events. Juan de Salcedo has conquered the rich province of
Los Camarines in Luzón; and the governor will try to found a Spanish
settlement there. The town founded at Cebú was almost deserted by
the Spaniards; but Lavezaris obliges them to return thither and aids
them in their poverty. He hopes to establish commerce with Borneo
and eventually to found a Spanish post in that island; and has other
plans for increasing the domination of Spain in the East Indies. Juan
de Salcedo has subdued the province of Ilocos, and founded the town
of Fernandina. The Chinese trade is steadily increasing. The natives
of Luzón are being rapidly converted, and missionaries are needed to
care for their souls; Lavezaris especially recommends the Theatins
for this work. He forwards a cargo of cinnamon to the king, to which
he adds various curiosities, and specimens of oriental jewelry;
and sends to New Spain certain plants and roots of economic value,