was better for us to remain quiet with such a fleet as we had; that our fleet would be increased by the galleon expected from Macan, and by those which were being built in these islands, all of which ships combined would be force enough for next year; and besides this, the enemy had gained nothing, but rather had lost, through the expenses which he had incurred in maintaining a fleet so many months without recompense.  This opinion prevailed, whereupon the matter was dropped and the fleet became idle; when, behold, mere goes forth a false report that the enemy is in these islands plundering the ships that come from China.  Everything is again in commotion; the fleet again prepares itself, and goes out in the morning; but the truth becomes known that there is no enemy, and the fleet is quiet again.  The basis of this false rumor was the fact that the enemy went toward the coast of China to plunder, and one day encountering a Chinese ship going to Japon, robbed it.  The Chinese vessel came to these islands to seek aid; and at once arises the outcry that it must have been robbed in the Philipinas, and that there must be enemies here.  The truth is confirmed by the fact that at this time a Portuguese ship came from Macan, but in all this coast encountered not a single Hollander.

It may be considered as certain that the enemy lost a large vessel with people and cargo in a severe storm.  The foundation for this opinion is the fact that some days ago a mass of wreckage, such as maintop-sails, rigging, masts, etc., was found in the place where the Hollanders have been.

A ship came from China and reported that one day, after having left that country, it encountered four ships which pursued it; and that early in the evening one of them was gaining on it.  The Chinese captain, who knew of some shoals near by, steered toward them, in order to go around them.  The Hollanders, thinking that the captain was trying to escape to leeward, also steered in that direction, and at nightfall ran aground on the shoals.  The Chinese heard many guns fired; but, without seeing or knowing more, came to Philipinas and gave the news.

Dated at Manila, July 12, 1619.

LETTER FROM PEDRO DE ARCE TO FELIPE III

[Marginal note at beginning:  “That the governor there, Don Alonso Fajardo, attends with great assiduity to whatever concerns the service of his Majesty; and he has gained experience by the construction of the ships that he has built from the time of his arrival in those islands, so that the enemy has not dared await him.  If he were to be aided with some fleet sent to him, very good results would follow.”]

Sire: