 Their succeeding generation called Insulares (Spaniards or Hispanics born from the islands), became town local officers, and were granted with haciendas (plantation estates) by the Spanish government.In some provinces like, Vigan, Iloilo, Cebu, Pampanga, and Zamboanga, The Spanish government encouraged foreign merchants to trade with the indigenous population, but they were not given certain privileges such as ownership of land.From this contact, social intercourse between foreign merchants, and indigenous people resulted in a new ethnic group.