History of the Philippines (1521–1898) Castilla". Legazpi became the country's first governor-general. With time, Cebu's importance fell as power shifted north to Luzon. The archipelago was Spain's outpost in the orient and Manila became the capital of the entire Spanish East Indies. The colony was administered through the Viceroyalty of New Spain (now Mexico) until 1821 when Mexico achieved independence from Spain. After 1821, the colony was governed directly from Spain. During most of the colonial period, the Philippine economy depended on the Galleon Trade which was inaugurated in 1565 between Manila and Acapulco, Mexico. Trade between Spain and the Philippines was via the Pacific
Mexican–American War could not be released from its obligations. The US was released from all obligations of Article XI five years later by Article II of the Gadsden Purchase of 1853. The 1848 Treaty of Guadalupe Hidalgo ended the war and enforced the Mexican Cession of the northern territories of Alta California and Santa Fe de Nuevo México to the United States. Mexico acknowledged the loss of what became the State of Texas and accepted the Rio Grande as its northern border with the U.S. The losses amounted to one-third of its original territory from its 1821 independence. Before the secession of