Andres de Alcaraz, the auditor in charge of military affairs after Silva's death, writes to the king (August 10, 1617). The ships could not go to Nueva Espana in 1616, because the Dutch were lying in wait for them; but the Acapulco galleon arrives safely at Manila, and brings money to relieve the general distress. Alcaraz makes ready, although in the midst of great difficulties, a fleet to drive away the Dutch. On April 14, 1617, this Spanish fleet has a battle with the Dutch squadron at Playa Honda. After a long and fierce contest, the enemy take to flight, having lost several ships and much artillery, and many of their men being killed or wounded. As soon as possible thereafter, Alcaraz sends supplies to the Spanish forts in Ternate; recalls Geronimo de Silva to Manila, to act as governor _ad interim_; and despatches pilots to meet the fleet that is coming from Spain via Cape of Good Hope. He criticizes Geronimo de Silva for his harshness and arrogance, already displayed in many ways. Alcaraz thanks the king for permitting him to resign his position as auditor and return to Spain; and explains why he has not yet vacated his office. He mentions the Philippine officials who have merited special rewards from the crown, especially those who were prominent in the battle of Playa Honda. Reenforcements of men have come from Spain, but with them was no money; and the treasury of the islands is entirely empty. Its debts are heavy, and aid is urgently requested. Through sickness and absence, there are no auditors of the Audiencia in active service, except Alcaraz himself. A document unsigned and undated [_ca._ 1617] discusses the trade of the Spanish colonies with China and Japan. This trade advances the interests of religion in those heathen lands. Its character, methods, and results are described in orderly array of interesting facts--first in a general survey, then in details regarding each colony; and finally in comparisons between the commerce of those colonies respectively with China and Japan. Eastern India depends on this trade for its maintenance and preservation; and the customs duties therefrom cause larger profits to the crown than do those from the other colonies. This income will be greatly increased, for both Castilla and Portugal, if Nueva Espana and Filipinas be no longer allowed to trade with China and Japan. The writer (apparently one of the king's councilors) suggests various expedients for attaining this end, and closes by urging the king to confine the Filipinas merchants to trade with Nueva Espana.