In the years that followed we have to recount for the most part only the process of decline. Spain herself was fast on the wane. A few years later and the English had almost driven her navies from the seas, the Portuguese had regained their independence and lost empire, the Dutch were in the East, harrying Portuguese and Spaniard alike and fast monopolizing the rich trade. The commerce and friendly relations with the Chinese, on which so much depended, were broken by massacre and reprisal; and, most terrible and piteous of all, the awful wrath and lust of the Malay pirate, for decade after decade, was to be visited upon the archipelago. The colonial policy of the mother-land, selfish, shortsighted, and criminal, was soon to make its paralyzing influence felt upon trade and administration alike. These things were growing and taking place in the next period which we have to consider,--the years from 1600 to 1663. They left the Philippines despoiled and insignificant for a whole succeeding century, a decadent colony and an exploited treasure. CHAPTER IX. THE DUTCH AND MORO WARS. 1600-1663. Loss of the Naval Power of Spain and Portugal.--The seizure of Portugal by Philip II. in 1580 was disastrous in its consequences to both Portugal and Spain. For Portugal it was humiliation and loss of colonial power. Spain was unequal to the task of defending the Portuguese possessions, and her jealousy of their prosperity seems to have caused her deliberately to neglect their interests and permit their decline. In one day Portugal lost possession of that splendid and daring navy which had first found a way to the Indies. Several hundred Portuguese ships, thousands of guns, and large sums of money were appropriated by Spain upon the annexation of Portugal. [63] Most of these ill-fated ships went down in the English Channel with the Great Armada. When the terrible news of the destruction of this powerful armament, on which rested Spanish hopes for the conquest and humiliation of England, was brought to the Escorial, the magnificent palace where the years of the king were passed, Philip II., that strange man, whose countenance never changed at tidings of either defeat or victory, is reported to have simply said, "I thank God that I have the power to replace the loss." He was fatuously mistaken. The loss could never be made good. The navies of Spain and Portugal were never fully rebuilt. In that year (1588), preëminence on the sea passed to the English and the Dutch.