He then enumerates the islands thus far explored by the Spaniards, mentioning their principal resources and products. In June, 1572, Legazpi formally establishes the Spanish city of Manila, and appoints municipal officers.
An official statement is made by Legazpi's son Melchior, royal accountant in New Spain (March 2, 1573), of the expenses attending the Philippine enterprise during the past four years. Lavezaris makes report (June 29, 1573) of Legazpi's death (August 20 preceding), and of affairs in the islands since then. Allotments of lands which include the natives who reside thereon (known as "repartimientos" or "encomiendas"), are being made in the islands, as fast as they are pacified. Most of Luzón is now subdued; its resources are great, and will maintain numerous Spanish settlements. The Chinese trade with its ports is extensive, and steadily increasing; and those traders are bringing wares of better quality than formerly. Lavezaris complains of Portuguese hostility and intrigues; a Bornean king also has attempted an expedition against the Spaniards. The governor sends a cargo of cinnamon to Felipe; if only he had ships in which to transport that precious commodity, he could ruin the Portuguese trade therein. This enterprising official has sent to New Spain plants of ginger, tamarind, cinnamon, and pepper; the first two are already flourishing there. He suggests that it would be well to send to the islands Jesuit and Franciscan missionaries, to continue the conversion of the natives, already begun by the Augustinians. He asks rewards for his officers, as having faithfully served the king amid great dangers and hardships—especially Martin de Goiti and Juan de Salcedo. He
