Manila was one of the most important trading cities in Asia during this period, and the East India Company wished to extend its influence in the archipelago.

[3]: 12–15  A secret committee of the East India Company agreed to provide a civil governor for the administration of the Islands, and in July 1762, they appointed Dawsonne Drake for the post.

[3]: 9  The expedition, led by William Draper and Samuel Cornish, captured Manila, "the greatest Spanish fortress in the western Pacific".

In the interim, the Spanish Crown appointed the militarily inexperienced Mexican-born Archbishop of Manila Manuel Rojo del Río y Vieyra as a temporary Lieutenant Governor.

Rojo wrote that the sack actually lasted thirty hours or more, although he laid the blame on the Spanish, Chinese and Filipino denizens of Manila, as much as upon the marauding soldiers.

Although the captain-general (Simon de Anda y Salazar) objected at the end of the twenty-four hours, the pillage really continued, in spite of the orders of the British general (Draper) for it to cease.

When after several attempts, Drake realised that he was not obtaining as many financial assets as he expected, he formed a war council which he termed the "Chottry Court".

[3]: 58 [14] That night, Anda took a substantial portion of the treasury and official records with him, departing Fort Santiago through the postern of Our Lady of Solitude, to a boat on the Pasig River, and then to Bulacan.

Anda eventually raised an army which amounted to over 10,000 combatants, most of them volunteer Filipinos, and although they lacked enough muskets to go around, they were successful in keeping the British largely confined to Manila and Cavite.

On 26 November, Captain Backhouse dispersed Anda's troops from Pasig and soon after, established a post, manned by lascars and sepoys so they could ensure their control of Laguna de Bay.

At the time of the signing, the signatories were not aware that Manila had been captured by the British, and consequently, it fell under the general provision that all other lands not otherwise provided for be returned to the Spanish Crown.

[3]: 109  After Archbishop Rojo died in January 1764, the British military finally recognised Simón de Anda y Salazar as the legitimate Governor of the Philippines, sending him a letter addressed to the "Real Audiencia Gobernadora y Capitanía General", after which Anda agreed to an armistice on the condition that the British forces withdraw from Manila by March.

Silang was later assassinated by his own friends, and the revolt was aborted after his wife, who had taken over the leadership, was captured and executed by the Spanish along with the remaining rebel forces.

[16] As British forces suffered increasing frustration and the unity of the commanders broke down, a number of Indian sepoys deserted and settled down in Pasig, Taytay, and Cainta.

[17] The conflict over payment by Spain of the outstanding part of the ransom promised by Rojo in the terms of surrender, and compensation by Britain for the excesses committed by Drake in Manila, continued in Europe for years afterwards.

[3]: 110–115  The capture of the Spanish treasure galleons Santissima Trinidad and the Filipina made the expedition and the occupation rewarding more to the British government than the East India Company as well as representing a severe loss to Spain.

[18][19] However, the British failure to extend control beyond Manila and Cavite made their occupation's continuation unviable: Captain Backhouse reported to the Secretary of War in London, "the enemy [Spanish] are in full possession of the country".[13]: v.

"[20] The old Spanish maps Alexander Dalrymple took from Manila gave the British information about the Pacific, encouraging the quest for Terra Australis Incognita.