With the native colonies of the Aztec Protectorate, Zapotec, Maya, and The Texan Colony, Spain realized that the region needed a central government to rule over them, similar to the Spanish Caribbean.
Setup of Spanish Mexico
The governor of the new colonial country, named Spanish Mexico, would be seated in Tenochtitlan, the capital of the Aztec Protectorate. Despite all leaders in the colony are local individuals, the Governor of Spanish Mexico must be led by a white Spaniard, according to King Juan Carlos I. The colonial country would consist of all the native colonies, Yucatan, Guatemala, and Texas. Spanish Mexico, now one of the biggest countries in the world, would be ruled by the powerful government of Spain. Spanish Mexico will never revolt in its history, due to the Aztec's appreciation that the Spanish let them rule themselves under their protection. Compared to Spanish Caribbean, the new colonial country would be significantly weaker upon emergence.
Portuguese Merchants seize Colima
Upon hearing of potential gold on the west coast of North America in 1557, the Merchant class of Spain knew they would not be able to claim the area if there was no powerful trade city on the Pacific. Panama, now an urban metropolis (for the time), had no spare room to expand trade revenue. The Portuguese Merchants decided to pick a coastal area along the Aztec Protectorate to establish a great city. They settled on Colima, a region favored by the Aztec Leader, Mamexi. To prevent dispute, the merchants promised Mamexi to share profit from the Pacific. Now balancing tribute to both the Monarchy and the Aztecs, the Merchants only gained a portion of what they gained, although that was quite a lot, as the establishment of Colima City proved fruitful.
Territories of the North
In the next decades after Colima City was established, others decided to go deeper into the American mainland in search of their own fortune to make a profit off of. By 1574, The California and Arizona Territories were founded. Living among Native peoples, like the Pueblos, the regions prospered, although not as successfully as Mexico. Within the next few years, the regions were incorporated into Spanish Mexico. These territories were originally private run, but in time the California Territory would be seized by the Merchants, who heard of great gold expanses.