His Lordship summoned a council, in which by his command were read the letters from the mandarins who were directors and guardians of Cot-sen's estate, written by order of his son, in which was discussed the stipulation which they made a condition of peace--the restitution of the property which their agents had left here in trust, and other merchandise which the alcaldes-mayor of Ylocos and Cagayan had withheld. In accordance with the [decision of the] first council, this one ordered that such restitution be made. Therein was also discussed the question whether the Sangleys should be permitted to live in the islands; this was done by a few ecclesiastics (only three in number), who opposed such permission; they had attempted, both in the pulpit and in private conversation, to persuade the rest to their opinion. All of the council agreed with only one dissenting voice, that the Sangleys ought to be allowed to remain here up to the number which the decrees of his Majesty regarding this matter have prescribed--that is, 6,000 men--provided that they be not allowed to spread into other provinces, nor go beyond the villages included in the jurisdiction of Tondo (which is in the territory of this city) conformably to the royal ordinances which have fixed these limits. All recognized our need of that [Chinese] nation, in the lack and scarcity of all things to which we see ourselves now reduced--all because the number of the Sangleys has been diminished, since the natives have neither energy nor strength to support the burdens that the Chinese carry; and much more on account of our dependence upon their trade, for everything. For not only does everything necessary for life come to us from China--as wheat, cloth, and earthenware--but it is the Sangleys who carry on all the crafts, and who with their traffic maintain the fortunes of the citizens (without those other products of vineyards and olive-groves that are furnished in the industries carried on in Nueva España) from the merchandise of China, having secured in their hands the entire commerce of these islands, since that of Yndia and Japon failed. His Lordship, having handsomely entertained the ambassador, dismissed him, with letters for the prince and the mandarins; and we here remain in peace, affairs settled as they were before, and the fear [removed] that an enemy so powerful and at our very gates must occasion us. LETTER FROM GOVERNOR SALCEDO TO FRANCISCO YZQUIERDO Summary of this letter, written from Manila, dated July 16, 1664, giving information regarding the condition of the islands at his arrival, and the measures that he had taken.