From Felipinas they carry to China silver obtained in Nueva Espana, but there is nothing else to carry. To Japon they take silks which they buy in China, or which the Chincheos are accustomed to bring to Manila, which is unquestionably the metropolis of Felipinas. From the trade of Nueva Espana and Felipinas with China and Japon less in customs duties are paid to your Majesty than from that of Eastern India with the same countries, because there is nothing upon which to pay them except the silks. Thus this trade is not so advantageous as that of Eastern India. Indeed, your Majesty's profits will be much greater if this trade of Nueva Espana and Felipinas shall cease. This will be experienced not only by the crown of Portugal, but even by that of Castilla. By the crown of Portugal this will be experienced because, if the people of Eastern India alone were to sell goods and to buy those of the Chinese and Japonese, they would obviously gain more and be able to pay higher customs to your Majesty; for when the sellers and buyers are many and different, all is to the advantage of the Chinese and Japonese, because then they sell and buy on their own terms. Under such circumstances your Majesty's subjects have sustained great injuries, and many times have sold their goods for prices far below what they had cost, in order not to carry them home. From these circumstances, too, quarrels have arisen in China and Japon between the subjects of the two crowns--to the discredit of Espana and to the shame of Christians there who see discords among Christians and among subjects of the same king. The Portuguese, in order not to suffer these injuries, will abandon this trade: if they do so, Eastern India will be in great danger, especially now, from those who go there from the north. And your Majesty will even come to lose it; and this through not having wherewith to maintain the fleet by means of which it is protected and prospered, as has been shown by experience. In the same way your Majesty will lose the city of Macao which you have in China, for as it is in the territory of the king of China, it has no income other than through this trade.