7. Besides the two ships, which are necessary for the trade with Nueva España, there ought to be at Cavite two others in reserve, which could serve in any outbreak of war for the guard and defense of our fortifications, and even could be sent out for capturing the ships of our enemies which might come from Europa and from the coasts [of India] to trade at Canton, for the latter pass in sight of the coasts of Ilocos and Cagayan, and visit without fail Pulaor, Pulicondor, and Pulizapato. These ships [at Cavite] ought to have competent naval officers; and even in time of peace they will be very useful for keeping the coasts clear [of enemies], for transporting troops to the military posts, for any expedition against the Moros, and for reconnoitering and surveying the lands, and the shoals and dangerous places of our islands and seas, and discovering new routes. The navy, shipyard, and arsenal of Cavite should be placed under such regulations as shall be considered most suitable; and as warden of the said port there should be appointed a competent naval officer, or some one of the builders of ships, with the title of superintendent of the arsenal and shipyard, in order that affairs may progress in proportion to his ability. 8. The expense of the two ships which must sail to Acapulco is paid for by the same royal duties which have been hitherto paid, for there have always been at least two galleons for this purpose. As for the additional two ships, and some fragatas besides, it can be estimated that they will cost one hundred thousand pesos a year, besides their construction; this can be carried on in various parts of these islands, with evident saving of expense on account of the exceeding abundance of timber and the low wages of the workmen. 9. The principal defense and security of these islands consists in the troops. In every province there ought to be fifty soldiers, with their officers, at the disposal of the alcaldes-mayor. In this way the reduction of the villages would be made easier, without which all the rest is absolutely idle and useless. As fast as the villages are reduced, they offer greater advantages for both spiritual and temporal things; and thus could be established what would be very beneficial to the Indians and to the royal exchequer, as will be explained later.