In the mean time, Paniagua procured permission, through the intermediation of the licentiate Carvajal, to return to Panama, though contrary to the opinion of the other insurgent officers, who were clear for detaining him; and he may assuredly be reckoned fortunate in having got away from Lima before intelligence arrived there that the fleet and army at Panama had submitted to the president. Although this circumstance had not reached the knowledge of the insurgents, it began to be vehemently suspected, in consequence of receiving no reports from that place for so long a time; insomuch that Gonzalo sent off orders to Pedro de Puelles, who commanded in Quito, and all his other captains, to keep themselves vigilantly on their guard, and to hold all their troops in continual readiness for taking the field.

At this period the lieutenant-general Carvajal arrived at Lima from Las Charcas accompanied by an hundred and fifty soldiers, and bringing with him three hundred musquets and treasure to the value of more than 800,000 crowns. He was received at Lima with extraordinary pomp, Gonzalo going out to meet him with all the inhabitants of the city, accompanied with bands of music and every demonstration of rejoicing. Just at this time intelligence was received from Puerto Viejo, that four ships had been seen near the coast, as if reconnoitering, which had stood out again to sea without coming to anchor or sending on shore for water or provisions, as was usual with ships navigating in these seas. This was looked upon as a sign of hostile intentions. It was a considerable time after this, before Gonzalo was entirely certified of the intention of these four ships, which in fact were those under Aldana, both because they were exceedingly cautious of coming near the land, and because Diego de Mora, his lieutenant at Truxillo, detained certain letters which had been sent through his hands on the subject. Yet their suspicious appearance on the coast gave great uneasiness to Gonzalo, and occasioned him to take every means of precaution for his security; ordering continual watch to be kept up day and night, both by the soldiers and the inhabitants, all of whom appeared to do so with much care and satisfaction. Some time after the appearance of the ships off Puerto Viego, they arrived at the harbour of Malabrigo, five or six leagues to the northwards of Truxillo, and Diego de Mora learnt their arrival by the same messenger who was charged with the news of their appearance at Puerto Viejo. As he was quite ignorant of the persons who were embarked in these ships, and of their intentions, he went on board a vessel in the harbour of Truxillo, accompanied by several inhabitants of that city, intending to seek for these four vessels wherever they might happen to be, and carried along with him a considerable supply of provisions and warlike stores. He considered it quite safe to board these strange vessels; as, if they belonged to the partisans of Gonzalo, it was easy for him to allege that he came in quest of news, and to supply them with refreshments; whereas if they should be of the royal party, so much the better, as he was resolved to join them with all his followers. He fortunately came up with Aldana on the very day in which he left the harbour of Truxillo; and, having entered into mutual explanations, joined company to the reciprocal satisfaction of both, supplying Aldana with such refreshments as were needed for his ships.

Next night, Aldana and De Mora with all the ships came to anchor in the harbour of Truxillo, where it was not deemed proper to land the troops; but it was agreed that De Mora and all the inhabitants of Truxillo should retire into the province of Caxamarca, in which place they could remain in safety till their assistance might be required, and where they might endeavour to assemble all that were favourable to the royal cause. At the same time messengers were dispatched with letters and orders from the president in the kings name, to Chachapoyas, Guanuco, and Quito, and to the frontier posts commanded by Mercadillo and Porcel, inviting all who were inclined to serve his majesty to declare themselves. Intelligence of these proceedings at Truxillo were speedily carried to Gonzalo by a monk of the order of Mercy, who had always favoured the Pizarrian faction; but who could only relate the departure of De Mora and the inhabitants of Truxillo, without being able to give any distinct account of their intercourse and agreement with those on board the fleet. Accordingly, Gonzalo concluded, from the information brought by the monk, that De Mora and the inhabitants of Truxillo had gone off for Panama to join the president. Gonzalo therefore sent off the licentiate Garcias de Leon, who had always accompanied him hitherto, with the commission of lieutenant-governor of Truxillo, accompanied by fifteen or twenty soldiers, to whom he gave grants of the lands and Indians which had belonged to the citizens of Truxillo who had gone off with De Mora. Along with De Leon, Gonzalo sent the superior of the order of Mercy, with orders to embark the wives of all the inhabitants of Truxillo who had gone off, and to carry them to their husbands at Panama, whither he supposed they were gone; and he sent at the same time proper persons to be married to the widows who remained in Truxillo, commanding that such of these widows as refused compliance should be deported along with the married women to Panama. Various and specious pretexts were alleged for this procedure; but the true reason was, that Gonzalo wished to be entire master of the country, and to dispose at his pleasure of the lands, Indians, houses, and properties of all who had fled from his usurped power.

As Garcias de Leon was sent on this expedition by sea, he fell in, a few days after his departure, with the four ships commanded by Aldana, and joined himself to them with all his followers, embracing the party of his majesty. On this occasion, the superior of the order of Mercy was sent by land to Lima, with directions to inform Gonzalo of what had happened, and the purpose of these four ships making their appearance on the coast. He was likewise desired to communicate the intelligence to several of the loyal inhabitants of Lima; and to tell them, if they were at any time able to go to the port belonging to that city, they would find boats ready to carry them on board the ships. On receiving this news, Gonzalo sent orders to the superior to keep out of the way, and on no account to have intercourse with any person whatever, either publickly or privately, as he valued his life. Gonzalo complained loudly against Aldana for deserting him; saying that if he had followed the advice of his principal officers, he would have put him to death long before.

When the arrival and intention of the fleet was certainly known and understood, by which it appeared necessary to prepare for war, Gonzalo began immediately to put every thing in proper order, and to assemble his troops; having hitherto believed himself in perfect security against any hostile attack. He appointed the licentiates Carvajal and Cepeda to be captains of cavalry, as persons in whose attachment he could confide, considering the weighty obligations they had received from him. Juan de Acosta, Juan Velez de Guevara, and Juan de la Torre were made captains of musqueteers; and Ferdinand Bachicao, Martin de Robles, and Martin de Almendras captains of pikemen. Francisco de Carvajal, who had hitherto enjoyed that office, was nominated lieutenant-general, having an hundred of the musqueteers he had brought with him from Las Charcas appointed for his guard. It was proclaimed by beat of drum, that all the inhabitants of Lima, and all strangers residing there, of whatever quality or condition, were to enrol themselves among the troops under pain of death; and money was issued to the several captains for the pay and equipment of their companies. The two captains of horse received 50,000 crowns, with which they were each ordered to levy and equip fifty horsemen; besides which, several merchants and others, very unfit for warfare, enrolled themselves. It was well known that these men were quite unfit for being soldiers; but they were constrained to enlist on purpose to exact money from them for their discharge, which in fact they purchased by furnishing horses, arms, and money to such as were in want. Martin de Robles received 25,000 crowns with which he was to enlist and equip a company of 130 pikemen. Ferdinand Bachicao had 20,000 to raise 120 pikemen; and Juan d'Acosta a similar sum for an equal number. Martin de Almendras had 12,000 crowns to raise 45 pikemen; and Juan de la Torre 12,000, to levy 50 musqueteers, who were to form the ordinary guard of Gonzalo. Antonio Altamirano, one of the principal inhabitants of Cuzco was appointed to carry the grand standard, with a troop of 80 horse; and he received 12,000 crowns for some particular purpose, as his men had no need of pay or equipments, being all chosen from among the rich inhabitants of the country.