Mexia assured the president, that he was ready to obey his orders in all things; yet considered it proper for him to observe, that although he was now able to command the soldiers then at Nombre de Dios; matters might assume a very different aspect on proceeding to Panama, where the soldiers would be under the orders of Hinojosa. The president expressed his determination, however, to proceed in his enterprize, to which Mexia consented; and they mutually agreed to keep their intentions secret till affairs should take a favourable turn, as will be seen in the sequel.

When Hinojosa, who acted as general under Pizarro in the Tierra Firma, learnt the reception which the president had met with from Mexia, he was much dissatisfied, both because he was ignorant of the orders and instructions under which the president acted, and because Mexia had not communicated his intentions. Hinojosa wrote therefore to Mexia in a harsh and peremptory manner, reflecting bitterly on his conduct, and, at the same time, some friends of Mexia, who were then resident in Panama, wrote to dissuade him from coming to that place, as Hinojosa was much irritated against him for the friendly reception he had given to the president. Notwithstanding this, it was agreed upon in a conference between the president and Mexia, that the latter should go immediately to Panama to confer with Hinojosa, lest the minds of the soldiery should take any adverse turn by delay. Despising the dangers with which he was threatened, and the suspicions that had been endeavoured to be instilled into his mind, Mexia set out for Panama, confiding in the friendship which subsisted between him and Hinojosa, and in his knowledge of the character and dispositions of that officer. In an interview with Hinojosa, he fully explained the reasons of his conduct in receiving the president; adding, that whatever party they might choose ultimately to favour, all that had hitherto been done could do no harm. Hinojosa was entirely satisfied with this explanation, and allowed Mexia to return to Nombre de Dios.

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After the return of Mexia, the president went across the isthmus to Panama, where he held separate conferences with Hinojosa and the different captains, which he conducted with so much prudence and secrecy, that he gained them all over to the royal cause, without any of them having any communication with the others on the subject, so that he was soon in condition to speak with them publickly on the objects of his mission, having brought them all over to his sentiments and engaged them to second his intentions. By supplying the soldiers with every thing of which they were in need, he brought them all easily into his measures, believing that the most effectual means of succeeding in his mission, was by acting gently and in a conciliating manner with every one: yet in all this he acted without meanness or servility, constantly preserving the dignity becoming his rank and authority. In all his negociations, the president was ably and faithfully seconded by his major-general Alfonzo de Alvarado, who was exceedingly serviceable on every occasion, both in consequence of having many friends among the officers, and because those even who were not among the number were much influenced by his authority and character. At first Hinojosa hesitated about declaring for the president, and even notified his arrival to Gonzalo Pizarro. Some of the captains and other principal persons at Panama had likewise written to Gonzalo, even before the arrival of the president at Panama, giving it as their advice that he ought not to be allowed to enter Peru; but in the sequel these persons changed their opinion by the persuasion of Gasca. During his residence at Panama, the president contrived to manage so judiciously with Hinojosa, whom he frequently visited, that he procured his consent to send Pedro Hernandez Paniagua, a gentleman who had accompanied him from Spain, with letters to Gonzalo Pizarro apprizing him of his arrival in Tierra Firma, and the object of his mission. Among these letters was one from the king, to the following effect:

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