On the 24th the four canoes left by Captain Townley's bark returned to the ships. They had got beyond the cape by means of rowing to the valley of _Valderas_, or _Val d' Iris_, the valley of flags, at the bottom of a deep bay, inclosed between Cape Corientes on the S.E. and point _Pontique_ on the N.W. In this delightful valley they landed thirty-seven men, who advanced three miles into the country, and were attacked by 150 Spaniards, horse and foot. Our men retreated into an adjoining wood, whence they kept up a heavy fire on the Spaniards, killing their leader and fourteen troopers, besides wounding a great many, while four of our men were slain and two wounded. Owing to this loss the Spaniards took to flight, and our people were enabled to re-embark. This valley is about three leagues broad, and is bounded towards the inland country by an easy ascent, affording a delightful prospect of extensive pastures well stored with cattle, interspersed with pleasant groves of guavas, orange-trees, and lime-trees. The sandy bay affords a safe landing, and has a fresh-water river, navigable by boats, but becomes brackish in the end of the dry season, which is in February, March, and April. We continued cruizing off Cape Corientes till the 1st January, 1686, when we sailed for the valley of _Valderas_, proposing to provide ourselves with some beef, of which we were in great need. At night we anchored in sixty fathoms, a mile from shore. On the 7th we landed 240 men, fifty of whom were kept together in a body to watch the motions of the Spaniards, while the rest were employed in providing cattle. We killed and salted as much beef as would serve us for two months, and might have procured a great deal more if we had not run out of salt. By this time our hopes of meeting the Manilla ship were entirely vanished, as we concluded she had got past us to the S.E. while we were employed in procuring provisions, which we afterwards learnt had been the case, by the information of several prisoners. The loss of this rich prize was chiefly owing to Captain Townley, who insisted on taking the Lima ship in the harbour of Acapulco, when we ought to have provided ourselves with beef and maize, as we might then have done, instead of being now forced to procure provisions at the critical time of her coming on the coast. We were likewise deceived by the hope of falling in with rich towns and mines on this coast, not then knowing that all the wealth of this country is in the interior. Seeing that we were now entirely disappointed in our hopes, we parted company, Captain Townley going back to the S.E. while we in Captain Swan's ship went to the west.