A letter from Antonio de Morga (June 30, 1597) notifies the king that the treasure-ship "San Felipe" has been wrecked on the coast of Japan, and her cargo seized by the emperor of that country; this is a heavy blow to the Philippine colony. Franciscan missionaries have been crucified in Japan. Morga approves the reëstablishment of the Audiencia in the islands.
Luis Perez Dasmariñas recommends (July 20, 1597) that the royal hospital at Manila should be placed under the joint care of the Franciscans and the Order of La Misericordia. He reports that the religious are reluctant to do this, but that the confraternity approve of the plan - except that they are unwilling to assume a financial responsibility in a work which is, on their part, one of charity only.
A group of short letters from Tello to the king (April 29-August 12, 1597) relates various matters of interest. The conquest of Mindanao has been practically effected. The numbers and power of the Chinese in the islands have been greatly reduced. A rising of the Zambales has been quelled. Insubordinate Spaniards have been punished; "on New Year's day, I had the entire city council arrested for an act of disobedience to me." Tello is improving the city ,and is striving to secure a good water-supply. He has imprisoned Dasmariñas, for failure to equip the lost treasure-ship properly. The Japanese talk of seizing Formosa, but the Spaniards are planning to forestall them in this. The Chinese who slew some Spaniards en route to Mindanao have been punished with death. It is reported that the Spanish fort of Maluco has been seized by the natives. The natives of Mindanao have rebelled (August, 1597), and reënforcements have been sent thither to end the
