gives a brief description of the people of Luzón, their mode of dress,
religious rites, and various customs; and makes commendatory mention of
the Chinese who have settled on that island, who are now converted to
the Christian faith. He then enumerates the islands thus far explored
by the Spaniards, mentioning their principal resources and products. In
June, 1572, Legazpi formally establishes the Spanish city of Manila,
and appoints municipal officers.

An official statement is made by Legazpi's son Melchior, royal
accountant in New Spain (March 2, 1573), of the expenses attending
the Philippine enterprise during the past four years. Layezaris makes
report (June 29, 1573) of Legazpi's death (August 20 preceding),
and of affairs in the islands since then. Allotments of lands which
include the natives who reside thereon (known as "repartimientos" or
"encomiendas"), are being made in the islands, as fast as they are
pacified. Most of Luzón is now subdued; its resources are great,
and will maintain numerous Spanish settlements. The Chinese trade
with its ports is extensive, and steadily increasing; and those
traders are bringing wares of better quality than formerly. Lavezaris
complains of Portuguese hostility and intrigues; a Bornean king
also has attempted an expedition against the Spaniards. The governor
sends a cargo of cinnamon to Felipe; if only he had ships in which to
transport that precious commodity, he could ruin the Portuguese trade
therein. This enterprising official has sent to New Spain plants of
ginger, tamarind, cinnamon, and pepper; the first two are already
flourishing there. He suggests that it would be well to send to the
islands Jesuit and Franciscan missionaries, to continue the conversion
of the natives, already begun by the Augustinians. He asks rewards for
his officers, as having faithfully served the king amid great dangers
and hardships--especially Martin de Goiti and Juan de Salcedo. He