highly, on account of its proximity to China. Without doubt that is the finest country in the world, since it has so many people and so great wealth. This island of Luçon is not a hundred leagues distant from China, and ought to profit much from the endeavors made there by the vassals of your Majesty. It is considered just that war should be made against them; and this and their conquest depends only on the way in which God inclines the heart of your Majesty.
Until his divine Majesty is pleased to appoint that time, it would be a serious error to undertake a war with the people who could be sent from here. I have determined to occupy them in finishing the settlement of these islands. Accordingly, the village of Arevalo—on the island of Panay, fifty leagues from this district—has just been settled. The land is very fertile and the inhabitants are rich. They are almost all at peace, and the town is increasing in population because of the good and healthful character of that country.
This year I have sent people to settle the city of Segovia in a province called Cagayan, in this island, a hundred leagues from this city. It is the frontier of China, and much benefit is expected from its settlement—for it is the best-situated port, with a harbor of greater depth, for the ships which sail in the line from Nueva España and Peru; and it is so near to China that one can cross thence in three days. For the sake of the future I consider it very important to have that frontier settled. I sent for the settlement thereof Captain Juan Pablos de Carrion, with about a hundred picked men. They go in good order, well provided with artillery, vessels, ammu-
