From the foregoing it is easily seen that the trade of Eastern India is, from a temporal standpoint, the most profitable to your Majesty and for your subjects; and from a spiritual standpoint, for the maintenance and propagation of Christianity in China and Japon. This was proved in the years during which this plan was tried. [_In the margin_: "Conversion there has entirely ceased today because this plan has not been tried during recent years, and because of the severity of the present emperor of China, who even punished laymen for protecting the religious who went from Felipinas to China contrary to his commands."] It is plain, therefore, that the trade of Nueva Espana and Felipinas with Japon and China is unprofitable in comparison with that of Eastern India, not to mention the marked injuries already pointed out which it inflicts upon Espana, and which must be repaired and corrected lest greater ones be sustained. The trade always carried on with Nueva Espana is fully sufficient to maintain Felipinas. In this they carry gold and some of the silks which the Chinese merchants carry from China to Manila to be sold; and they might bring silks from Macao, should your Majesty now order it. In return they bring from Nueva Espana what they need for their own maintenance and growth (to make it unnecessary to go to Japon and China for the same). In proportion as this plan has been observed the welfare of both the Eastern and the Western Indias has been advanced; and the kingdoms of Espana have had great profits from them, through their carrying silver and bringing back merchandise. Now that the Hollanders are so powerful there, it is necessary that this be watched with the greatest care and vigilance, in order that what your Majesty gets from there may not be lost. EVENTS IN THE FILIPINAS ISLANDS FROM THE MONTH OF JUNE, 617, UNTIL THE PRESENT DATE IN 618 Last year I informed you at length of the naval battle, and of the signal victory which our Lord was pleased to give us over the enemy, the Hollanders, who came to these islands with the largest force that has ever been here. They brought ten galleons well equipped with men, artillery, ammunition, and other implements of war. Of these ten galleons they lost three in the battle--one, the admiral's ship, was sunk, and two were burned. Four of the remaining seven fled to Maluco, badly damaged. So many of their men were killed and wounded that, although they had set out with a large number, they arrived with scarcely one hundred. These were the messengers of an event most disastrous for them but fortunate for us. The other ships fled to Japon.