Note 3 — Commerce between the Philippines and Nueva España

The third fundamental reason is, that the Philipinas defend the islands of Moluco, and the commerce in the cloves that are obtained from them. The importance of these islands is everywhere known, because in all the world there are no other islands nor any other region in which grows this spice or drug, so highly valued. For their discovery alone Hernando de Magallanes made, by order of the emperor Carlos Fifth, that celebrated voyage in which he found the strait to which he gave his name, and passed through it into the Southern Sea; and, although he was slain while making his claims, his ship sailed around the world. The lordship of those islands caused troublesome hostilities between the Castilians and Portuguese, which were ended by this crown giving them to that of Portugal, in fulfilment of a contract; for it seemed (and indeed was evident) that Castilla would have much difficulty in maintaining them when they were so separated from all its kingdoms and states, while Portugal, by possessing Eastern India, was less distant from and could better support them. The course of time showed that even India was very remote from them; for when the Dutch power entered the Orient and established a military post in Bantan3—a port nearer to Moluco, and more advantageously located than was India—it was so obviously impossible to defend them that in the end they were lost to us, the enemy getting possession of them all and of their commerce. But as the Philipinas were by that time quite populous, and so near to the Molucas that they were superior to Bantan [as a trading post], the task of restoring the Molucas [to Spanish control] was laid upon the governor, Don Diego de Acuña—who with his courage and energy, and the convenience of being so near, regained them and restored them to this crown. When both Castilla and Portugal recognized the great expense that India would have to incur in maintaining the Molucas, and that even with excessive expenditures it would be impossible to do so, on account of the injury being nearer than the remedy, and the enemy than the succor, those islands were, by the mutual agreement of the two crowns, united to the government of the Philipinas as regards their defense and support. The clove-trade was left to the Portuguese, because it was so important that, if it were taken from them, India would perish, or become greatly weakened. It is thus sufficiently proved that the Philipinas contributed to the restoration of all the forts in the Orient; and that in their preservation was and still is involved that of the Molucas, and consequently of all India. Thus they have been maintained since the year 1603, defending them by force of arms against the Dutch, who never cease their endeavors to expel the Castilians from those islands; this has been the cause of many naval encounters and battles, in which the arms of España have always remained victorious. Nevertheless, since the military force of Philipinas is small, the territory that they must defend large, and the aid which is given to them for this purpose very limited, it has not been possible to prevent the treachery and persistence of the Dutch from having some effect; nor to put a stop to their sharing in the clove trade at some forts which they keep in the Molucas, though at the cost of many men, armed vessels, and expenses. From all of these islands are produced each year 2,816,000 libras of cloves, of which the Dutch secure 1,098,000 libras, and the Portuguese and Castilians 1,718,000—and this latter supply is due to the protection of the Philipinas; while it is computed that the cloves which the Dutch carry away amount to three times as much as it will cost them to be absolute lords of the Molucas, even with the large garrisons and armed fleets which they keep and maintain for purchasing the spice and transporting it to Bantan. From this it obviously follows that without the Philipinas the Molucas would be lost, and their commerce and trade in cloves would cease—from which would follow two pernicious results, which would cause the loss of whatever his Majesty possesses in the Orient. One is, that India would be greatly weakened, for lack of that commerce; for if that country languishes on account of not having all of that trade, it may well be understood that she will perish if it be taken from her. The other is, that the Dutch in that case would have the entire benefit of the trade, and without much expense; for if [Holanda] with less than half the trade—and that at the cost of so many garrisons and fleets—gains such profits that they are enough to maintain whatever she has in India; if she were to secure all the cloves and, on account of the less cost, thus gain a profit of more than a thousand per cent upon her investments, while the gross amount would be doubled: it is very plain that India would not remain safe, the Western Indias would be more effectively harassed, the rebel states in Flandes would be strengthened, the coasts of España would experience their invasions, and everywhere the treasure that could be obtained from the Molucas alone would cause most injurious effects—as may be seen, with more detailed arguments, in the memorial that I have cited in behalf of the Philipinas, to which [colony] we owe the only compensation [that we receive] for all these losses.