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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.

After a most fatiguing march of 400 leagues, passing by Tecoantepec to Xochnuxco, he discovered and conquered the whole of that country, where he built a city called St Jago de Quahutemallan, now Guatimala, of which and of the country he subdued, he is said to have got the government.

While here, a ship brought intelligence of an insurrection having broke out in Mexico during his absence; on which, he ordered Gonsalo de Sandoval to march with his company by land, from Naco to Mexico, by the ordinary and safest road of Quahutemallan, or Guatimala, towards the South Sea; and, leaving his cousin Férdinando de Saavedra to command in Truxillo, he went himself by sea along the coast of Yucutan to Chalchicocca, now called St Juan de Ullhua, and thence to Medellin and Mexico, where he was well received.

In the same year, 1523, Gil Gonçales de Avila, discovered and peopled a town called San Gil da Buena-vista, in lat. 14° N. almost in the bottom of the bay of Ascension or Honduras . Likewise, on the 6th December of this year, Peter de Alvarado was sent by Cortes from Mexico with 300 foot, 170 horse, four field-pieces, and some Mexican nobles, to discover and conquer Quahutemallan, Utlatlan, Chiassa, Xochnuxco, and other towns towards the South Sea.