It is a law of Yndia and of Maluco that no person can lade or take away cloves from those islands in any manner, unless it be for your Majesty, under penalty of loss of the ship and rigging; from which the profit resulting to the royal exchequer amounts to a third of what is laded, so great is the freight charge. Certain Portuguese came to these islands in their own ships. They take away a quantity of cloves and sell it to merchants, who in turn sell it to Chinese and other persons, who secretly ship it to Nueva España--whence it is taken to the provinces of Peru, the new realm of Granada, Tierra Firme, Guatimala, and other regions. From this there result three losses to the royal exchequer. In the first place, since the cloves are carried from the Malucas by the hand of a third party, your Majesty loses the third due on embarcation. In the second place, it is laded here for Nueva España secretly, and without paying the duties or freight charges. In the third place, when it has arrived at Nueva España, Peru, and other regions, that which is brought from the realms of Castilla loses its value. All this expense which your Majesty suffers in providing for that fortress, and these losses, could be remedied as follows. Your Majesty has in the island of Panay, one of these Filipinas, which borders on the Malucas Islands, a number of tributary Indians who pay the larger part of their tribute in cleaned rice. After their harvest they have a great deal of rice wine, which is made in these islands, and these are the provisions necessary for the Malucas. If, conformably to what has been said, there were built on your Majesty's account two patages in the island of Panay--such as are commonly built in the said island by the encomenderos, to sell to the said Portuguese in these islands, and which cost about five hundred pesos--two thousand fanegas of cleaned rice, and six hundred jars [_tinajas_] of wine could be loaded in them. The rice would be collected for your Majesty from your royal tributes, at two reals and six maravedis. Each tinaja of wine, with cask and all, is valued at four reals, on board. Likewise two hundred pesos of fine Sangley earthenware is sufficient, which is to be used as follows. These two patages must, while going to Maluco, of necessity take water at the port of La Caldera, and the earthenware is to be left in the Spanish camp which is there, so that with it they may buy from the natives five hundred quintals of cinnamon, taking care to dry it. In the meantime the two patages resume their voyage, having left this earthenware, and continue with the rice and wine to the fortress of the said Malucas. They will deliver to the warden there half of it, to pay those expenses or quarters to the citizens. With the other half they will buy four hundred _baxes_ of cloves, making two thousand four hundred quintals, at six quintals to the bax; [6] this would be brought on your Majesty's account to these islands. Then