The King. To the reverend father in Christ Don Juan de Palafox y Mendoza, bishop of the cathedral church of the city of Puebla de los Angeles, member of my royal Council of the Indias, to whom I have committed the visitation of my royal Audiencia of the City of Mexico in Nueva España and of its tribunals, and the visitation of the port of Acapulco: [Here follows a preamble which is identical with that in the first of these decrees, as far as the words, “and to urge forward the decision of the most important matters.” This decree then continues (evidently stating Grau’s arguments) as follows:] And as for the lack of money, this cannot be avoided when the commerce in merchandise fails, since, if that is not sent, there will be no returns from it; and the main thing to be considered is that as little can the duties be collected, which (as is proved in the said larger memorial) on the said commerce amount to the sum which is sent every year for the aid of the said islands. If these duties fail, it will be necessary that all this succor come out of my royal exchequer, and it may be needful to send much more there; for in the past, when the citizens found themselves without means to aid (as they do aid) in the support of the said islands, the deficiency had to be made good from my royal exchequer, as has been proved by experience. The governor of those islands, seeing the pressing necessities of the citizens, in the year 1637 lent them from my royal treasury 76,765 pesos, besides what he lent them in the year 1638, when in the same condition—when formerly the citizens loaned so great sums, as is known, to my royal treasury; and this is ascertained, with convincing arguments, that in order to lessen the occasion [for such loans] it is necessary to aid and favor the citizens and the commerce, since whatever it has of wealth [for them] I shall be spared from expending in the maintenance of continual war in those archipelagos. For it can be understood that if this does not cease, and those who are supporting it have no means for doing that, either I must support it or I shall be defeated; and that it is of the utmost importance to maintain the war. I have already recognized the great difficulties that result from the cessation of sending money to those islands; for, on account of the fact that in the year 1637 not more than 150,000 pesos of the amount in the Count-Duke’s permission was carried [to Mexico], and that the citizens failed to receive the returns therefrom through the harsh measures and blunders of Don Pedro de Quiroga, the Chinese merchants have gone from Manila, and carried away their merchandise, because there is no one who can buy their goods; and it is known with certainty, according to letters from the city, that the silk sold by the said Chinese to the Dutch, since they knew that there was no money in Manila, amounted to more than 5,000 picos. If the commerce with China is cut off from that city, it will be impossible again to introduce it, and whatever is collected there from the licenses given to the said Chinese (which is a very large item) will be lost; and finally the whole colony will reach so exhausted a condition that it will be impossible,14 even with a million [pesos] of aid a year, to maintain the said islands. [Don Juan Grau] has entreated that I would be pleased to command that in the first ships which sail from Acapulco for the said islands—or, in default of these, in whatever ships shall go to the islands—shall be transported, besides the usual succor that I send, all the residues of permissions which there may be in Nueva España belonging to citizens of those islands, and all the money which may be still due as returns from the permissions, so that in this first voyage may be made up whatever shall have been deficient in past ones, according to the amount permitted, and nothing shall remain to fill out the entire amount of the returns in any year. Moreover, in order to mitigate somewhat the great injuries and losses for eight or ten years, [he has asked] that an increase be allowed them in the permission for the silver, up to the amount of 800,000 pesos instead of the 500,000 for which they have permission—or such quantity as I shall be pleased [to grant]; and that I give them permission to carry to Nueva España, besides the 250,000 pesos’ worth of cloth from China which is already allowed to them, all the products of the country—as they have requested by a special petition in the large memorial, which Don Juan Grau asks shall be again examined, with the strong arguments which they present for asking this favor; and he says that at present there are [even] more reasons for granting it. This matter has been considered in my royal Council of the Indias, notwithstanding that I commanded the viceroy and the Audiencia of Mexico, by my decree of December 8, 1638, to inform me what permission the Philipinas Islands have, and that which was granted to the Count-Duke; and whether it would be expedient to enlarge further that of the said islands, considering their needs and other circumstances. By another decree of mine, of the same date, I also commanded the said my viceroy and Audiencia of Mexico, and the governor and Audiencia of Manila, to inform me regarding the representations made to me, on the part of the said city of Manila, that all the provinces of the Indias are permitted to export the products that in them are gathered and cultivated, without limitation of quantity. Those of the islands, the proceeds of their collections and labors, are: wax, lampotes, coverlets, tarlingas, blankets from Ilocos, musk, civet, and other commodities which are peculiar to the said islands; and it has been the custom for many years past to ship these products to Nueva España (which is their only market), registered, but not included in the 250,000 pesos of the permission, as it seemed that the citizens did not need it for these commodities, and that it was granted only for those from China—which are the ones expressly stated in the royal decrees, and on which fall the prohibitions and penalties. And [Don Juan Grau] petitioned that I would command that a declaration be made to this effect, and that these commodities, coming registered, and paying my royal duties at their departure from the islands and entrance at Acapulco, as do the other goods from China, should be (even though their value and quantity did not come included, and be not included, in the permission) passed by the customs officers without incurring penalty of confiscation, or any other. I request and charge you that, after having thoroughly informed yourself of all that I have mentioned, you report to me very fully thereon, in order that, when the matter shall have been discussed in the said my Council, I may take such measures as shall be most expedient for the relief and preservation of my vassals in those islands. Done at Madrid, February 14, in the year 1640.

I the King

By command of the king our sovereign:

Don Gabrièl de Ocaña y Alarcòn