In the same year that Martim Affonso sailed from the Tagus, a Portuguese squadron captured and conducted to Lisbon a ship of Marseilles, which had been laden with Brazil wood, at Pernambuco, where they demolished the Portuguese factory of Itamaraca, founded by C. Jacques, and left sixty Frenchmen in their place. This information induced the King to send Duarthe Coelho Pereyra to expel the French, which he accomplished, and removed the factory to the margin of the river Hyguaraçu, a few miles distant from the first situation. This new establishment was the origin of the town of Hyguaraçu, to whose mother-church the same D. C. Pereyra, being then the donatory of the captaincy of Pernambuco, gave for patrons the saints Cosme and Damian, in gratitude for the expulsion of the French on the day of those saints, in the year 1531. It may be here remarked, that very little progress, up to this period, would appear to have been made by the Portuguese for the colonization of this country, now known to them thirty-two years, and which they had assumed the right of calling and considering their own. King John III. at last roused by the attempts which the French merchants were making to form establishments near the places now called Pernambuco and Bahia, also by the formation of colonies, which the Spaniards were promoting on the banks of the Paraguay, determined to people this continent; and, in order to facilitate the colonization, he divided the coast into certain large portions of fifty leagues, which, under the denomination of capitanias, (captaincies,) were to be bestowed on individuals distinguished by their services to the crown; and who were to go personally, or to send colonists, in ships, at their own cost, receiving an uncontrolled jurisdiction over these royal donations. The historian, Joam de Barros, who was one of the donatories, and was presented with the district of Maranham, affirms that the country was partitioned into twelve captaincies; but there were actually only nine, as five portions which he probably took into his account, were divided betwixt Martim Affonso de Souza and his brother Pedro Lopez de Souza, who were the two first donatories that settled in the Brazil. Martim Affonso, who has been previously mentioned, received a considerable tract of country contiguous to St. Vincente, where we left him endeavouring to form a colony. Pedro Lopez chose his quantum of territory in two lots, one near his brother’s, called St. Amaro, and the other denominated Itamaraca, at a very inconvenient distance from the first, situated not far from Pernambuco, which latter capitania, as has been already stated, became the portion of Duarthe Coelho Pereyra. The lands adjacent to the southern Parahiba river were conceded to Pedro de Goes. The country betwixt the great river St. Francisco, which was the southern boundary of Pernambuco, and Bahia, was allotted to Francisco Pereira Coutinho. The next portion