_The island of Matheo is excellent, and a better expedition could be made there._ Concerning the island of Matheo, I have been able to learn from men who have been there that it is very fertile, thickly populated, and rich in food products, including rice. The inhabitants are not very warlike. Would to God that your Lordship had expended there what was left here, for with less effort we would have gained more. Terrenate has some dealings with this island. [I say this] in case anything is to be done before it has more. Of Maluco I have not ascertained anything new, except that things are in their usual condition. _He has not effected a settlement, as he has not found a convenient site. He is awaiting the pleasure of your Lordship, and [a more favorable] season._ As yet I have not effected any settlement, as I have not found a suitable and convenient location for it, for all the river above is swampy; and, if we were to look for dry land along its course, it is so far away that it would take a week to reach it from the mouth of the river. Although beyond this river, toward La Canela, there is a good place for a settlement, yet it is not advisable to leave this river now until matters are more settled and quiet. This river is the residence of the chief men of the island. Accordingly I shall wait the result of this rainy season; and if the discomfort be not too great, I shall settle on the site where I am now established, which is in a very good position, and here I shall await your Lordship's decision.