32. That in the enumeration of the traders should be included the Spaniards born in the country, and the military men stationed in the port of Cavite; and these might engage in that traffic--excluding, however, ecclesiastical ministers, whether secular or regular, and those who were foreigners to those Philipinas Islands.
33. That the master of each ship must make a book containing the freight list, and present it with the aforesaid documents at Acapulco to the castellan who governs that port and the royal officials, for the discharge of cargo. At the same time he must carry a duplicate of all these documents, to be sent to the viceroy as soon as they arrived, in order that he might examine them and communicate with the tribunal of accounts, in which a copy of it must be made to send to the Council.
34. As soon as the ships should anchor in Acapulco the castellan and royal officials of that port should station the guards necessary to avoid the concealment of goods or their clandestine introduction, causing the ship to be lightened and its cargo landed with the utmost promptness, and collecting the established duties or securing them by the goods themselves, according to the usage up to that time.
35. That when the goods had been landed and the amounts registered had been ascertained, the ships should be inspected; and whatever else was found therein should be regarded as confiscated, without allowing therein any claim or remonstrance. Half of the goods confiscated should be applied to the royal treasury, and the rest in two parts to the judge and the informer--excepting in the case when the value of confiscated goods should reach 50,000 pesos; for then the viceroy and the royal court of Mexico must allot to the judge and the informer such quantity as should be proper, leaving to the decision of the judges other penalties in accordance with the guilt of the offenders.
36. His Majesty having agreed to the proposals made by the Council, they issued on August 12, 1702, despatches in accordance therewith, to the governments of Nueva España and Philipinas, informing them of the regulation herein explained, and commanding them both to observe it strictly and inviolably. In consequence of this, the governor of Philipinas, in letters of June 21, 1705, and May 24, 1708 (in which he acknowledged the receipt of the despatch sent to him), reported that he had carried the decree into execution, and had made it known to the merchants in the city of Manila, who had offered to make good the burdens of expense which would ensue if the two ships of 500 toneladas each were immediately built according to this command--in view of the fact that there were two galleons and one patache in the ports there; of these one might serve eight years, and the other a little less, and the patache four. For this reason the governor had commanded that the building of the two ships should be suspended until those which were then in use should be worn out.