<P> Seeking to develop trade between the East Indies and the Americas across the Pacific Ocean, Miguel López de Legazpi established the first Spanish settlement in the Philippine Islands in 1565, which became the town of San Miguel (present - day Cebu City). Andrés de Urdaneta discovered an efficient sailing route from the Philippine Islands to Mexico which took advantage of the Kuroshio Current . In 1571, the city of Manila became the capital of the Spanish East Indies, with trade soon beginning via the Manila - Acapulco Galleons . The Manila - Acapulco trade route shipped products such as silk, spices, silver, porcelain and gold to the Americas from Asia . New works indicate that interest is increasing . The importance of the Philippines to the Spanish empire can be seen by its creation as a separate Captaincy - General . </P> <P> Products brought from Asia were sent to Acapulco then overland to Veracruz, and then shipped to Spain aboard the West Indies Fleets . Later they were traded across Europe . </P> <P> The Spanish crown created a system of convoys of ships (called the flota) to prevent attacks by European privateers . Some isolated attacks on these shipments took place in the Gulf of Mexico and Caribbean Sea by British and Dutch pirates and privateers . One such act of piracy was led by Francis Drake in 1586, and another by Thomas Cavendish in 1587 . In one episode, the cities of Huatulco (Oaxaca) and Barra de Navidad in Jalisco Province of México were sacked . However, these maritime routes, both across the Pacific and the Atlantic, were successful in the defensive and logistical role they played in the history of the Spanish Empire . For over three centuries the Spanish Navy escorted the galleon convoys that sailed around the world . </P> <P> Don Lope Díez de Armendáriz, born in Quito, Ecuador, was the first Viceroy of New Spain who was born in the' New World' . He formed the' Navy of Barlovento' (Armada de Barlovento), based in Veracruz, to patrol coastal regions and protect the harbors, port towns, and trade ships from pirates and privateers . </P>

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