At the end of his first year as governor, Dasmariñas writes (June 20, 1591) a report for that period. Delay in receiving the royal despatches before leaving Spain has prevented him from obtaining the money which he was to expend in building the Manila cathedral, and the amount raised for this purpose at Manila had been much lessened by poor management; but he has stopped the waste (mainly in large salaries), and is pushing the work as fast as he can. He has aided the hospitals, but they need much more help, for they are crowded with patients on account of the unhealthful climate. He complains that the bishop hinders his attempts to obtain a statement of accounts from the Franciscan friars in charge of the hospital for Indians; the king thereupon orders that this matter be officially investigated, and that the governor take possession of both hospitals in the name of his Majesty. Dasmariñas recommends that more ministers of religion be furnished for the Indians, and sends an exact statement of the encomiendas and their religious needs (the document preceding this). He places before the king the problem of collecting the tributes, which he has recently been discussing with the clergy and friars; summarizes the position of the latter thereon, and his own arguments with the bishop; and complains that the latter is arrogant and self-willed. Another letter of the same date reports his measures for fortifying the city; he imposes a tax of two per cent on all shipments of goods from the islands. The bishop opposes this measure, as do the members of the late Audiencia, apparently because it touches their personal interests too closely. In the summer of the same year, the citizens of Manila ask that they may be allowed to trade with the inhabitants of Macao, the Portuguese settlement in China. Dasmariñas orders an inquiry to be made into this matter, and has various witnesses examined. This is done according to a detailed interrogatory--the witnesses testifying that the Portuguese of Macao trade with the Philippine Islands, with much profit and advantage; that the trade of Macao is rapidly increasing in extent and range, and yet does not notably decrease the abundance of goods to be had at that port; that, if the Spaniards trade there, it will be much easier to introduce the gospel into China; that hitherto no trading ships have gone from the Philippines to India; that trade with Macao will enrich the islands; that the Portuguese at Macao have plundered a ship sent thither by Dasmariñas; and that the Chinese desire the trade of the Spaniards. To this are appended various declarations and decrees which bear upon the question discussed; and, finally, the recommendation of Dasmariñas that the king permit trade between the islands and Macao.