Diogo Garciam, a Portuguese pilot in the service of the Castilian court, arrived near the mouth of the river Paraguay, in the year 1527, and found there the ships with which Sebastian Caboto had sailed from Cadiz, with the intention of proceeding to the Moluccas by the straits of All Saints, now Magellan’s. He learned that the captain had gone up the Paraguay, then River Solis, and proceeded with two launches much above the confluence of the Parana in pursuit of him. He found him engaged in the construction of the fort of St. Anna, where they mutually agreed to give to the river Solis the name of the river Prata, in consequence of seeing small pieces of that metal in the possession of the Indians. Herrera states, that Diogo Garciam, on his way to the river Solis, entered the bay of St. Vincente, (then the River Innocentes,) where a Portuguese, who had been shipwrecked, provided him with refreshments; also, that Garciam anchored off the island of Patos, at the present day St. Catherine’s, where the Indians furnished him with some provisions. He carried with him sixty men, in two brigantines, to the fort of St. Anna; and before his departure he despatched one of the largest vessels of his squadron to St. Vincente, to take in a cargo, which he had agreed with the Portuguese mentioned, to be sent to Portugal. It is probable that this individual was either Joam Ramalho or Antonio Rodriguez, whom Martim Affonso de Souza found there five years afterwards. It would appear that some Portuguese had been established at St. Vincente some years; and the evidence of Herrera, that some Indians had been shipped from thence to Portugal in 1527, would tend to demonstrate that a factory had existed there previous to the arrival of Martin A. de Souza, (the first donatory,) and which factory had conceded to Pedro Goes the power of shipping to Portugal a certain number of aboriginal Indians, free from all the duties which it was customary to pay. (_Forros de todos os dereitos, que custamavam pagar._) If this factory existed, neither the period of its commencement is evident, nor by whom it was established.