Northwest of Buglas lies Panae, an island abounding in rice and all kinds of provisions. The camp was moved thither, and, as abovesaid, I drew the plan of the said fort between the two arms of a river, because it is impossible to effect an entrance by one arm. In the other arm and below the fort, fourteen gabions were made and twelve large pieces of artillery mounted for the defense of the entrance and passage. The fort is situated two and one-half leagues inland, and the ground all the way to the fort is a swamp, covered with tangles of bushes; so that enemies can approach the said fort only through the river, where are planted the above-mentioned gabions and artillery. The position is excellent, and such that it needs only a few men to defend it against many. The bar of the river is not more than one braza deep; and its coast thereabout, for more than twenty leagues, is very forbidding. Its center lies in about eleven and one-third degrees of latitude. Northeast of Panie is the island of Masbat, with a scanty and poor population. There were found gold mines from two to four _estados_ [61] in depth, somewhat more or less, although I have not measured them. I understand that the mines yield very little on account of the scanty population, and its trade is of slight value. [The people are the same as those of the above islands.] The center of this island lies in thirteen degrees of latitude. Farther to the northeast of Masbat lies the island of Ybalon or Luzon. It is a large island, with many rivers, in which gold is found--although, as I have ascertained, in but little quantity, because its most influential inhabitants are Moros. While I was in Panae, [S: the leading man among its people] sent a Moro, his steward or treasurer to trade there; but he could hardly get for me one _marco_ of gold in exchange for four of silver, which he bought for me. Buffaloes are to be found here. We have [M: not] explored much of its coast, and I have seen no one who could inform me fully concerning its south-eastern, southern, and eastern parts, because no one has sailed around it. Between this island of Ybalon and that of Panae, lies Masbat. Farther on, and lying north and south, are some other small islands, in one of which is to be found much brazil-wood. Although all the others have it, I mention this because the Anglis [S: Sangleyes] from the mainland of China come for it, in order to dye their silk. [62] In this island of Luzon are three settlements of Moros, who do not know the law of Mahoma in its entirety. They eat no pork, and pay reverence to the said Mahoma. [The rest of the inhabitants are the same and have the same customs as those above.] The southern portion of this is in about thirteen and one-third degrees of latitude.