Major Fell seriously quarrelled with Drake about the Frenchman Faller, whom Admiral Cornish had left under sentence of death for having written a letter to Java accusing him of being a pirate and a robber. Drake protected Faller, whilst Fell demanded his execution, and the dispute became so heated that Fell was about to slay Drake with a bayonet, but was prevented by some soldiers. Fell then went to London to complain of Drake, hence Anda's letter was addressed to Backhouse, who took Fell's place. Anda, who months since had refused to negotiate or treat with Drake, still claimed to be styled Captain-General. Backhouse replied that he was ignorant of the Spaniards' statutes or laws, but that he knew the Governor was the Archbishop. Anda thereupon spread the report that the British Commander had forged the Preliminaries of Peace because he could no longer hold out in warfare. The British necessarily had to send to the provinces to purchase provisions, and Anda caused their forage parties to be attacked, so that the war really continued, in spite of the news of peace, until January 30, 1764. On this day the Archbishop died, sorely grieved at the situation, and weighed down with cares. He had engaged to pay four millions of pesos and surrender the Islands, but could he indeed have refused any terms? The British were in possession; and these conditions were dictated at the point of the bayonet.
Immediately after the funeral of the Archbishop, Anda received despatches from the King of Spain, by way of China, confirming the news of peace to his Governor at Manila. Then the British acknowledged Anda as Governor, and proceeded to evacuate the city. But rival factions were not so easily set aside, and fierce quarrels ensued between the respective parties of Anda, Villa Corta, and Ustariz as to who should be Governor and receive the city officially from the British. Anda, being actually in command of the troops, held the strongest position. The conflict was happily terminated by the arrival at Marinduque Island of the newly-appointed Gov.-General, from Spain, Don Francisco de La Torre. A galley was sent there by Anda to bring His Excellency to Luzon, and he proceeded to Bacolor, where Anda resigned the Government to him on March 17, 1764.