of vessels trading with Nueva Espana be inhabitants of the islands; that no space in the ships be sold; that Peruvian merchants be not allowed to go to the Philippines; that the troops be paid from a special and separate account; and that the lading of the trading ships be placed in charge of the Manila cabildo. All these points are commented upon by certain bishops whose advice is apparently requested by the Council of the Indias. Various memoranda follow, on the trade between the Philippines and Nueva Espana; these include recommendations for a commercial consulate at Manila, diminished coinage of money, allowance of a limited amount of trade to Peru, government custom-houses at Acapulco and Manila, etc. A letter from Morga (December 1, 1602) informs the king that Governor Acuna has aided the expedition sent from India to seize Maluco; and that some of the trading ships sent to Nueva Espana have returned without crossing the ocean, after great losses by storms, and having risked seizure on the Japanese coast. In May, 1603, three Chinese mandarins visit Manila. Salazar y Salcedo, the fiscal, informs the king of this, and sends him a translation of the letter presented by the mandarins to the governor (in which they explain that they have come in search of a mountain of gold, of which report had reached them); also a copy of the complaint made by the fiscal to the Audiencia regarding the manner in which these mandarins have administered justice, according to their own usages, to the Chinese residing in Manila. The governor forbids them to continue such procedure, and takes measures to fortify the city against possible Chinese invasion.