It seems that they have absorbed the trade formerly carried on by the Chinese with Manila, and have so increased the prices of goods that the citizens cannot make a profit on the goods that they send to Nueva España. Navada presents seventeen considerations and arguments regarding this condition of affairs. He states that in earlier years the authorities of Manila forbade the Portuguese to come to Manila, for the same reasons that are now so urgent; that investments of capital are now seldom made by citizens of the Philippines, for lack of returns thereon; and that the royal revenues are defrauded by the enormous losses in the proceeds from the customs duties on the goods brought by the Portuguese, as compared with those realized on the goods of the Sangley traders. The Portuguese are making enormous profits, and this is ruining the citizens of the islands; moreover, they buy their goods from the Chinese at sufficient prices to satisfy the latter, and they misrepresent the condition and actions of the Spaniards, so that the Chinese are prevented from coming to Manila. The Portuguese will make no fair agreement as to prices, and some of them remain in Manila to sell their left-over goods; and these even ship goods to Nueva España in the royal ships, with the connivance of certain citizens—all of which defrauds the Spaniards, and violates the royal decrees. Moreover, the Portuguese bring from China only silks, for the sake of the great profits thereon; while cotton cloth and other articles needed by the poor (which formerly were supplied by the Sangleys) are now scarce and high-priced. The Portuguese should be forbidden to carry on the China trade; this would quickly restore its conduct by the Chinese themselves, and funds to the royal treasury from the increase in customs duties. Manila is the only market for this trade, and can easily hold it. The Portuguese have even carried their insolence so far as to attack the Chinese trading ships (for which the Audiencia has neglected to render justice to the Chinese); they also ill-treat Spaniards who go to trade at Macao, and deal dishonestly with those who let them sell goods on commission. If the Portuguese are forbidden to trade in Manila, the Chinese will again come to trade; the citizens will enjoy good profits on their investments, and incomes from their possessions in the Parián. This memorial by Navada is discussed by the city council, who unanimously decide to adopt his recommendations and to place the matter before the governor and the citizens. The Spanish government favor (1634–36) depriving the Portuguese of the Manila trade, and decrees are sent to the islands empowering the governor and other officials to do what seems best in the case. To these papers are added a letter to the king by Juan Grau y Monfalcón, urging that the decree of 1593 be reissued, forbidding any Spanish vassals to buy goods in China, these to be carried to Manila by the Chinese at their own risk. He submits, with his letter, tables showing the comparative amounts of duties collected at Manila on the goods brought by the Chinese and the Portuguese respectively; also a copy of the aforesaid decree of 1593.

A royal decree of February 1, 1636, prolongs the tenure of encomiendas for another generation, in certain of the Spanish colonies, in consideration of contributions by the holders to the royal treasury; and various directions are given for procedure therein. The procurator Monfalcón, in a letter to the king (June 13, 1636), commends the military services of the Filipinos, and asks for some tokens of royal appreciation of their loyalty.

An account of conflicts between the civil and ecclesiastical authorities in 1635–36 is taken from the Conquistas of the Augustinian writer Fray Casimiro Diaz. With this main subject he interpolates other matters from the general annals of that time. Among these is a