91. As I have previously observed, and since all the cost of the exploration and occupancy of these islands, has been at your Majesty's expense, those in charge of the government have but ill attended to apportioning Indians to the royal crown; and those allotments were made by way of compliment, and are the worst ones. They relied only on what had to be sent them annually from Nueva España, and on what has come from there; for this land is as sterile as one who lives on charity. Accompanying this is a list of the income that your Majesty has here. As far as I understand it, there is no account of the number of Indians who are apportioned to the royal crown, and whether or not they wander through the hills, for no one has seen them. To discuss this matter in the residencia would be to excite the people to anger. I thought that it would be all right to do it quietly, and therefore I have apportioned as many as possible to the royal crown. However in regard to this there was trouble enough, for once an office-holder stated in public that, at this rate, all the Indians would belong to the royal crown, and it became necessary to use dissimulation. 92. When Guido de Lavesares was governor he placed to his own credit as many Indians as he saw fit; but I revoked all this, and allotted them to the royal crown. I am sending the records to you; and with whatever it may please your Majesty to give your servants we shall be well satisfied. 93. There is in these islands an abundance of wood and of men, so that a large fleet of boats and galleys may be built. There is a quantity of cheap iron from China, worked by the natives here, who can make what is necessary from it--which they cannot do with Castilian iron, for it is exceedingly hard. We have no pitch, tallow, or rigging worth mention, because what there is is so scarce and poor that it amounts to nothing. There is no oakum for calking. Large anchors cannot be made; but the rest of the tackle can be obtained here in good condition. There is good timber also; to my way of thinking, therefore, the ship that would cost ten thousand ducats in Guatimala, and in Nueva España thirty [thousand], can be made here for two or three [thousand], should strenuous efforts be employed. When I came here I found the city burned and razed to the ground. I erected shipyards in two places, separating the workmen, so that they might accomplish more if they entered into competition. The one in Manila has turned out a galliot of sixteen or seventeen benches; and has repaired the ship that brought me here, and also one that was made in Acapulco, which I believe cost more than fifteen thousand ducats. They were about to burn the latter ship for the iron that they could thus obtain; but through promises and diligence on my part the keel and stern-post, which were rotten were removed, as well as half the hull of the ship; and, God willing, she will sail from here one month after this ship departs.