The goods of the Sangleys who come to trade in Filipinas with Chinese merchandise, and who sell them at wholesale at a price [named] by persons deputed for it (which is what is there called _pancada_), are left in their possession under guarantee that they will not dispose of them without an order from the governor; and that a price will not be set on the small things, but only on certain fine products. And inasmuch as this is advisable, we order that the Sangleys be notified who shall have to return to those islands, that they must and shall pass according to the laws and orders that shall be made for them. And, in respect to the pancada, it shall be continued with, all gentleness, so that the Sangleys shall not receive any injury; and so that no occasion be given them so that they shall discontinue their coming to attend to their trading. [Felipe II--Madrid, June 11, 1594.] Law X We have been informed that the Sangley Indians who go from China to Filipinas to trade, receive injuries and harsh treatment from the Spaniards; and especially that the guards posted in their ships by our royal officials ask and take bribes from them, in order that they might permit and allow the Sangleys to take out certain things that they bring from their country to give to private persons; that the employees who go to register the ships take and scatter all the best merchandise, and leave that which is not of so good quality, from which there results a considerable loss on the balance, and often the Sangleys cannot sell what is left, as they could have done with the good merchandise which was taken away from them; that even when the Chinese who go to register take the best, the officials say that they will pay for it at the price for which the balance is sold, so that they only pay the price of the worst and common merchandise. Thus the Chinese lose what would be the most valuable things that they have if they sold them freely; for, fearing lest the employees who go to register take from them the merchandise at the time of evaluation, they place on their merchandise a greater value than it is really worth, so that they pay the duties at the rate at which the merchandise is valued, although the truth is that they sell it later for much less. [We are also informed] that the masts of their vessels are taken from them, in order to step these in the vessels built in those islands, for their masts are light; and that they are given in exchange others so heavy that their ships cannot support them and are wrecked, from which the Chinese suffer grievously. And since it is right that when those people go to trade they be welcomed and given good treatment, in order that upon their return to their country, they may take good accounts of the treatment and welcome received from our vassals, that others may thereby be induced to go, and by means of that communication receive the Christian instruction and profess our holy Catholic faith, to which our chief desire and intent