Note 6 — Its Early History

”6To the ʼReal Compañia de Filipinasʼ was conceded the exclusive privilege of trade between Spain and the Archipelago, with the exception of the traffic between Manila and Acapulco. Its ships could fly the Royal Standard, with a signal to distinguish them from war-vessels. It was allowed two years, counting from the date of charter, to acquire foreign-built vessels and register them under the Spanish flag, free of fees. It could import, duty free, any goods for the fitting out of its ships, or shipsʼ use. It could take into its service royal naval officers, and, whilst these were so employed, their seniority would continue to count, and in all respects they would enjoy the same rights as if they were serving in the navy. It could engage foreign sailors and officers, always provided that the captain and chief officer were Spaniards. All existing Royal Decrees and Orders, forbidding the importation into the Peninsula of stuffs and manufactured articles from India, China, and Japan were abrogated in favour of this company. Philippine produce, too, shipped to Spain by the company, could enter duty free. The prohibition on direct traffic with China and India was thenceforth abolished in favour of all Manila merchants, and the companyʼs ships in particular could call at Chinese ports. The company undertook to support Philippine agriculture, and to spend, with this object, 4 per cent, of its nett profits.”