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As it was the custom to give the fees of good news to the pilots when they see the land, they gave to each of the pilots a robe of red cloth and ten testoons; and they went on approaching the land until they saw the beach, and they ran along it and passed within sight of a large town of thatched houses inside a bay, which the pilots said was named Cananor, where many skiffs were going about fishing, and several came near to see the ships and were much surprised and went ashore to relate that these ships had so much rigging and so many sails and white men; which having been told to the King he sent some men of his own to see, but the ships had already gone far, and they did not go.

On nearing the land, they sailed along it until they came in sight of a large city of thatched houses, in a bay called Cananor. As a reward for the services they had rendered in carrying the ships safely across the Indian Ocean, each pilot received a robe of red cloth and ten testoons.

Having appointed Digo Diaz to act as factor, and Pedro da Braga as clerk, to be assisted by Joao Nunez, Davane, and one of the pilots from Melinda, he sent on shore for the purpose of trading, a chest of unwrought branch coral, the same quantity of vermilion, a barrel of quicksilver, fifty pigs of copper, twenty strings of large cut coral, and as many of amber, five Portugueses of gold, fifty cruzados, and a hundred testoons in silver; as also a table with a green cloth, and a pair of wooden scales.

He gave him also a hundred cruzados and a hundred testoons, besides the payment due to him, and goods and other presents, so that the honest broker departed highly pleased. As the crews were lifting the anchors, two large boats came off with a further supply of fowls and other fresh provisions.

The King also presented him with some fine coloured cloths, and with a ring having a blue stone set in it. Everything the ships required was purchased on shore, and paid for with silver testoons, which went for double their worth. The honest Coelho's visit having been so successful, it was arranged that the King should have an interview with the two chief Captains.