Cortes now set forwards on his return to Mexico, with one thousand foot soldiers and two thousand horsemen, and found Peter de Alvarado and the garrison he had left in Mexico in charge of Muteçuma, in safety. But the Mexicans continued their insurrection, and on one occasion Muteçuma was killed by a stone thrown by one of his own subjects. They then elected another king, and the Spaniards were forced to evacuate the city with great difficulty and danger. Driven out of Mexico, and having only 504 footmen and 40 horse remaining, Cortes retired with much difficulty to Tlaxcallan, where he was well received. He here mustered a force of 900 Spanish infantry and 80 cavalry, and gathered 200,000 Indians among the friends and allies whom he had secured, enemies of the Mexicans, and marched back to Mexico, which he took in August 1521126.

In October 1521, Cortes sent 200 foot and 35 horse, with a number of his Indian allies, under the command of Gonsalo de Sandoval, against Tochtepec and Coazacoalco, which had rebelled, and which Sandoval reduced to obedience. To retain this country under subjection, he built a town called Medelin, 120 leagues from Mexico, and another named Santo Spirito, on a river four leagues from the sea127. In this year 1521, died Emanuel, king of Portugal, and was succeeded by his son, John III.

In this same year, one of Magellan's ships sailed from Malacca with a loading of cloves. They victualled at the island of Burro, and went from thence to Timor, in lat. 11° S.128. Beyond this island, about 100 leagues, they came to other islands, all inhabited, one of which was called Eude. Passing on the outside of Sumatra, they found no land till they arrived at the Cape of Good Hope, where they took in wood and water; and sailing thence by the islands of Cabo Verde, they arrived at Seville, where they were received with great honour, both on account of their valuable cargo of cloves, and because they had circumnavigated the whole world129.

In January 1522, Gil Gonzales fitted out four ships from Tararequi, on the South Sea, intending to discover the coast of Nicaragua, and especially to search for a strait or passage, which was said to communicate between the South and North Seas. Sailing along the coast, he came to a harbour which he named St Vincent, where he landed with 100 Spaniards, some of whom had horses, and penetrated 200 leagues inland, whence he brought back to the value of 200 pesoes in gold. On his return to the harbour of St Vincent, he found his pilot, Andrew Nigno, who had been to Tecoantepec, in lat. 16° N. and had sailed 300 leagues. From thence Gonzales returned to Panama, and so overland to Hispaniola130.

In April 1522, the Trinity, commanded by Gonzala Gomez de Espinosa, another of the ships of Magellan, sailed from Tidore for New Spain. And, as the wind was scanty, they steered towards the N. E. in lat. 16° N. where they found two islands, which they named the Islands of St John. In lat. 20° N. they came to another island, which they called la Griega, where some of the simple natives came on board, whom they kept to shew in New Spain. Continuing their course to the N. E. for four months, they came into lat. 42° N. where they saw numbers of seals, and tunnies; and the climate appeared to them so cold and inhospitable, that partly on that account, and partly owing to contrary winds, they returned towards Tidore, having been the first Spaniards who had been in so high a northern latitude in these seas. On their return to Tidore, they found one Antonio de Britto employed in building a fortress, who took their goods from them, and sent forty-eight of them prisoners to Malacca131.

In the same year 1522, Cortes was desirous to possess some harbours on the South Sea, on purpose to open a trade with Malacca, Banda, Java, and the other spice islands. For this purpose he sent four Spaniards with Indian guides to Tecoantepec, Quahatemallan, and other harbours, where they were well received, and whence they brought back some of the natives to Mexico. These people were much caressed by Cortes; who afterwards sent ten pilots to examine the coast, but they could find no good harbour, after a survey of seventy leagues. A cacique, named; Cuchadaquir, used them hospitably, and sent two hundred of his people to Cortes with presents of gold and silver; and the people of Tecoantepec did the same. Not long afterwards, this friendly cacique sent to Cortes, requesting aid against his neighbours, who warred against him. Cortes accordingly, in the year 1523, sent Peter de Alvarado to his assistance, with 200 foot and 40 horse, who built a town called St Jago, in which he left a garrison. The caciques of Tecoantepec and Quahutemallan inquired at Alvarado concerning certain sea monsters that had been on their coast the year before; meaning the ships of Gil Gonzales de Avila, at which they had been much amazed; and they wondered still more on being informed that Cortes had many such, and much larger than those they had seen. They displayed a painting of a mighty carak, having six masts, with sails and shrouds, and having armed horsemen on board132. In May 1523, Antonio de Britto, the Portuguese governor of the Molucca isles, sent Simon de Bru to discover the passage from thence by the island of Borneo to Malacca. They came in sight of the islands of Manada and Panguensara, and thence through the strait of Treminao and Taquy to the islands of St Michael, in 7° S. and then to the island of Borneo, where they came in sight of Pedra Branca, or the white stone; whence, passing through the strait of Cincapura, they came to the city of Malacca133.

In the same year 1523, Cortes went with 300 Spanish foot, 150 horse, and 20,000 Mexicans, to make a complete discovery and conquest of Panuco, and to punish the inhabitants for having killed and devoured the soldiers of Francis Garay. The natives resisted him, but were overthrown; and to keep the country under subjection, he built a town on the river, near Chila, which he named Santo Stephano del Puerta, in which he left a garrison of 100 foot and 30 horse, under the command of Peter de Valleia. In this expedition he lost many of his people, both Spaniards and Mexicans, and several horses134.

In this same year 1523, Francis de Garay, having a commission from the emperor as governor of all the coast he had discovered from Florida to Panuco, fitted out nine ships and two brigantines, with 850 soldiers and 150 horses, on purpose to take possession of his government. Some men joined him from Jamaica, where he had furnished his squadron with warlike ammunition; and sailing thence to the harbour of Xagua, in the island of Cuba, he there learnt that Cortes had taken possession of the coast of Panuco. That he ought not meet with the fate of Narvaez, he sent the doctor Zuazo to Mexico, to endeavour to enter into treaty with Cortes. Garay arrived in the Rio de las Palmas on St Jameses day, and sent Gonзalo de Ocampo up the river to explore the country, who reported, on his return, that the country was bad and desert. Yet Garay landed with 400 foot soldiers and some horse, and commanded John de Grijalva, to explore the coast, while he marched by land to Panuco, in which march he crossed a river to which he gave the name of Rio Montalto. In this march he came to a large town, in which he found much poultry, to the great refreshment of his troops. Here, likewise, he took some of the inhabitants of Chila, whom he employed as messengers to different places. After a long and difficult march, he arrived at Panuco, but found no provisions; the country having been exhausted in the war with Cortes, and by being plundered by the soldiers. From this place he sent Gonзalo de Ocampo to St Stephano, or Istevan del Puerto, to inquire if the garrison would submit to his authority. They sent him a favourable answer; but, by means of an ambush, they made forty of his cavalry prisoners, alleging that they had come unwarrantably to usurp the government which belonged to another. Besides this misfortune, Garay lost four of his ships, by which he was greatly disheartened. While Cortes was preparing an expedition to Panuco, to resist Garay, Francis de las Casas and Roderigo de la Paz, brought letters-patent to Mexico, by which the emperor gave him the government of New Spain, including Panuco. On this he desisted from going personally on the expedition, but sent Pedro de Alvarado with a respectable force, both of infantry and cavalry, to defend his government against aggression, and dispatched Diego de Ocampo to communicate the letters-patent to Garay; who thought it better for him to yield himself to Cortes, and went accordingly to Mexico135.