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Answer:
Spanish colonial motives were not, however, strictly commercial. The Spanish at first viewed the Philippines as a stepping-stone to the riches of the East Indies (Spice Islands), but, even after the Portuguese and Dutch had foreclosed that possibility, the Spanish still maintained their presence in the archipelago.
The Portuguese navigator and explorer Ferdinand Magellan headed the first Spanish foray to the Philippines when he made landfall on Cebu in March 1521; a short time later he met an untimely death on the nearby island of Mactan. After King Philip II (for whom the islands are named) had dispatched three further expeditions that ended in disaster, he sent out Miguel López de Legazpi, who established the first permanent Spanish settlement, in Cebu, in 1565. The Spanish city of Manila was founded in 1571, and by the end of the 16th century most of the coastal and lowland areas from Luzon to northern Mindanao were under Spanish control. Friars marched with soldiers and soon accomplished the nominal conversion to Roman Catholicism of all the local people under Spanish administration. But the Muslims of Mindanao and Sulu, whom the Spanish called Moros, were never completely subdued by Spain.
Spanish rule for the first 100 years was exercised in most areas through a type of tax farming imported from the Americas and known as the encomienda. But abusive treatment of the local tribute payers and neglect of religious instruction by encomenderos (collectors of the tribute), as well as frequent withholding of revenues from the crown, caused the Spanish to abandon the system by the end of the 17th century. The governor-general, himself appointed by the king, began to appoint his own civil and military governors to rule directly.
By the late 18th century, political and economic changes in Europe were finally beginning to affect Spain and, thus, the Philippines. Important as a stimulus to trade was the gradual elimination of the monopoly enjoyed by the galleon to Acapulco. The last galleon arrived in Manila in 1815, and by the mid-1830s Manila was open to foreign merchants almost without restriction. The demand for Philippine sugar and abaca (hemp) grew apace, and the volume of exports to Europe expanded even further after the completion of the Suez Canal in 1869.