partially effective campaign to Borneo, and its offshoot--that of
Estevan Rodriguez de Figueroa to Mindanao--undertaken. The "San
Juanillo" is despatched to Nueva Espana, "but it was lost at sea
and never heard of again." Sande is relieved of his governorship
by Gonzalo Ronquillo de Pefialosa, and after his residencia returns
"to Nueva Espana as auditor of Mexico."

Chapter III details the events of Gonzalo Ronquillo de
Pefialosa's administration and the interim of government of Diego
Ronquillo. Events, with the greater stability constantly given the
islands, follow more quickly. Gonzalo de Penalosa, by an agreement with
the king, is to take six hundred colonists--married and single--to
the islands, in return for which he is to be governor for life. He
establishes the town of Arevalo in Panay, builds the Chinese Parian,
endeavors, although unsuccessfully, to discover a return passage
to Nueva Espana, by the South Sea, and despatches "a ship to Peru
with merchandise to trade for certain goods which he said that the
Filipinas needed." He imposes the two per cent export duty on goods
to Nueva Espana, and the three per cent duty on Chinese merchandise,
and "although he was censured for having done this without his
Majesty's orders" they "remained in force, and continued to be imposed
thenceforward." The first expedition in aid of Tidore is sent for
the conquest of the island of Ternate, but proves a failure. Cagayan
is first pacified, and the town of Nueva Caceres founded. Gabriel de
Rivera, after an expedition to Borneo, is sent to Spain to consult
the best interests of the islands. Domingo de Salazar receives his
appointment as bishop, and is accompanied to the islands by Antonio
Sedeno and Alonso Sanchez, the first Jesuits in the islands. In 1583
Gonzalo de Penalosa dies, and is succeeded by his kinsman Diego
Ronquillo. Shortly after occurs Manila's first disastrous fire,