A group of short letters from Tello to the king (April 29-August 12, 1597) relates various matters of interest. The conquest of Mindanao has been practically effected. The numbers and power of the Chinese in the islands have been greatly reduced. A rising of the Zambales has been quelled. Insubordinate Spaniards have been punished; "on New Year's day, I had the entire city council arrested for an act of disobedience to me." Tello is improving the city, and is striving to secure a good water-supply. He has imprisoned Dasmariñas, for failure to equip the lost treasure-ship properly. The Japanese talk of seizing Formosa, but the Spaniards are planning to forestall them in this. The Chinese who slew some Spaniards en route to Mindanao have been punished with death. It is reported that the Spanish fort of Maluco has been seized by the natives. The natives of Mindanao have rebelled (August, 1597), and reënforcements have been sent thither to end the the Chinese, whom he views with some suspicion. The Japanese trade requires regulation, especially that in deerskins, which threatens to destroy the game. The sale of provisions especially should be under government supervision. Sumptuary laws and the prevention of gambling are required. Negroes should be kept out. Building houses with wood should be prevented. The streets need repairs. The officials take much advantage of their position, and especially favor their dependents unduly. Military commissions are given by favoritism. Soldiers are ill disciplined, ill paid, ill lodged, demoralized, and in bad health. Military stores are badly cared for; the very arquebuses in the armory are rotting, and there is no preparation for emergencies. The ordinary magistrates pillage the treasury, are oppressive, indolent, and corrupt, and take advantage of their position to traffic; they are not sharply looked after. The encomenderos are extortionate and fraudulent, take law into their own hands, and fail to provide religious instruction for the Indians. The royal exchequer and treasury is negligently and wastefully managed, and insufficiently regulated. There are many sinecures, and not a little fraud in offices. In the voyages to and from Mexico, many frauds and illegal acts are committed by the officers of the vessels.