Note 1 — Chapter VIII · The Philippines Three Hundred Years Ago.

Loss of the Naval Power of Spain and Portugal.—The seizure of Portugal by Philip II. in 1580 was disastrous in its consequences to both Portugal and Spain. For Portugal it was humiliation and loss of colonial power. Spain was unequal to the task of defending the Portuguese possessions, and her jealousy of their prosperity seems to have caused her deliberately to neglect their interests and permit their decline. In one day Portugal lost possession of that splendid and daring navy which had first found a way to the Indies. Several hundred Portuguese ships, thousands of guns, and large sums of money were appropriated by Spain upon the annexation of Portugal.1 Most of these ill-fated ships went down in the English Channel with the Great Armada.