to continue on his way in the schooner Kingston, with his secretary. He accepted the transfer of authority into his offices April 29, 1800, in the Villa de Guadalupe, and made his formal entry into Mexico City the following day. In this period. the British dominated both coasts of New Spain. They smuggled huge amounts of merchandise into the colony from the United States and the islands of the Caribbean and captured the Spanish ships in the coastal trade. Berenguer supplied more resources to Spanish naval forces, but they were unable to do much to improve the situation. He also formed the Regiment of Grenadiers, consisting of twelve companies drawn from six provincial forces. Fearing British raids, he reinforced the garrisons at Veracruz and ordered that the valuables of the port be moved to Jalapa and guarded. He also reinforced the presidios in the north, to repulse American encroachment. On October 1, 1800, Spain retroceded the territory of Louisiana to France, which soon sold it to the United States. Conspiracies and Indian rebellions On January 1, 1801, Indio Mariano began an insurrection in the mountains of Tepic. Mariano, who had many followers, was trying to reestablish the Aztec empire. The rebels fought under a banner displaying the colors of the Virgin of Guadalupe. When Fernando Abascal, president of the Audiencia of Guadalajara, took notice of the rebellion, he sent Captain Salvador Hidalgo (or Fidalgo) of the navy and Captain Leonardo Pintado of the militia against them. The rebels were defeated. Many prisoners were taken, and many other Indians were forced up into the mountains, but Mariano escaped. He was never captured by the Spanish. His followers who were taken prisoner were transferred to Guadalajara, but most were soon released. Also, in January 1801, Francisco Antonio Vázquez, a naval official, was denounced for conspiracy, but nothing could be proven. In Teocelo, Veracruz, Pedro Martín led another Indian rebellion. There were also attempted rebellions by the indigenous in Nayarit, Durango, Guanajuato, Jalisco and Sonora. Suppression of Philip Nolan Berenguer suppressed the American smugglers under Philip Nolan in the north of the colony. Nolan was born about 1771, probably in Kentucky. He was a close associate of U.S. general and adventurer James Wilkinson, a co-conspirator of Aaron Burr. Beginning after 1791, Nolan began trading/smuggling activities in New Spain. He also imported wild horses from Texas into the United States. He was regarded by