Early in 1511 Velasquez assembled a flotilla of three or four vessels on the northwest coast of Hispaniola, at or near the place where Columbus had landed when he discovered that island and first visited it from Cuba. In the adjacent region he recruited a company of about three hundred men, and with that force set out for the conquest and colonization of Cuba. The precise date of his expedition is not to be ascertained, but it was probably in February or at latest March of that year. The place of his landing in Cuba, however, is known. It was at Baracoa, where also Columbus had landed before him. Following the practice of Columbus and the other explorers he promptly gave the place a new name of his own selection, calling it the City of Our Lady of the Assumption. There he established his seat of government and base of further operations, giving to the place in both civil and ecclesiastical affairs the technical rank and dignity of a city. But, as also frequently happened, the new name was unable to supplant the old one in popular usage; and when, in 1514, the insular capital was transferred to Santiago de Cuba, and in 1522 the cathedral of the diocese was similarly transferred, the new name was permitted to lapse, and the place became again universally known as Baracoa. Despite its vicissitudes of fortune, therefore, and its loss of its former high estate, Baracoa is entitled to the triple distinction of having been the site of the first permanent European settlement in Cuba, of the first civilized government, and of the first cathedral church.
At Baracoa, immediately upon his arrival, Velasquez built a fort, the exact site of which is now matter of conjecture, and various other edifices. These were all constructed of wood, probably of bamboo and thatch, and no trace of them remains to-day. Search was also promptly made for gold, and some seems to have been found in the beds of streams, though in no large quantities, and the attempt to operate mines was soon abandoned. Attention was then turned to further explorations and conquests, and to the quest for gold in other parts of the island.
Still more unfortunate than the failure to find much gold, and largely because of that fruitless quest, was the rise of bitter hostilities between the Spaniards and the natives. This was also a sequel to and in part a consequence of the Spanish administration in Hispaniola and particularly of the part which Velasquez had played therein. Shortly before coming to Cuba, Velasquez had waged several strenuous and probably somewhat ruthless campaigns against the natives of Hispaniola, chiefly in that part of the island which lay nearest to Cuba and in which he recruited his Cuban expedition. His chief opponent there was a native chief named Hatuey, who, finding himself unable to cope with the Spaniards, fled to Cuba with many of his followers and settled in the country near Baracoa. These refugees were of course quick to report to the natives of Cuba the cause of their migration, and to portray the conduct and character of the Spaniards, and of Velasquez personally, in the most unfavorable light. The natural result was to predispose the Cuban natives to regard the Spaniards with distrust and aversion. And when Velasquez himself presently appeared among the very people who had been thus prejudiced against him, trouble inevitably arose.