"These considerations and the fulfilment of my obligation constrain me to inform your Majesty that although I have applied all my energy and watchfulness in order that what was decided by your Majesty should be put into practice, causing the royal decree of the year 1702 to be proclaimed in Mexico and Acapulco, and allowing two years of liberty in order that the transaction of this commerce with those islands may cease, the perversity and selfishness of the merchants is able to pervert the rule which is seen therein--in public giving out that they are conforming to the tenor of that decree, and in private and secret hiding under [their system of] confidence the prohibited transactions, which cause, besides the royal displeasure of your Majesty, serious injury to the commercial interests of Spain. For when there is abundance of the goods from Manila--which on account of their cheapness are more suitable for the common people--the value of those from Europe is impaired; and from this results the stoppage of the trading-fleets, the lack of purchasers, and the lowering of prices, because the people do not consider the European goods necessary for their supply [of clothing]. I know very well that in the islands a change is expected from regulating the commerce, as has been experienced this year, when the [Manila] ship came in ballast--the merchants perhaps fearing the threatened punishment of the confiscation of their goods (as I set forth to your Majesty in a separate report). From this will result the forced expenditure of the royal situado and the inefficiency of the royal exchequer; but as it is certain that those islands cannot maintain themselves with the situado alone, and that they need the traffic in their goods in order to obtain a balance of profits and to meet their obligations, they will have to continue in their shipments, conforming themselves to the [terms of the] permission, if they do not wish to experience the penalty of law in punishment for their frauds. "This year of 1714 is the last one designated and determined by me for closing and finishing the mutual relations of both commercial bodies, taking into consideration, however, the capital belonging to Nueva España in the islands, and that the penalty ought not to be anticipated, considering the publicity of the prohibition; and, as nothing is coming this year, it will be necessary to abrogate it in the following one. All this I place before your Majesty, in order that in regard to what is contained therein you may be pleased to apply suitable measures."