Having arrested Charles Baxter and brought him back to Sao Jorge, I am greeted by some soldiers who say it's a good thing I had a friendly flag, earning them this week's award for "Stating The Blatantly Obvious" as sailing into port under an unfriendly flag is a good way to give the fort some gunnery practice even if you aren't in an instantly recognisable pirate ship. Then I teleport to the governor's residence. Where nobody is home because I arrived at Sao Jorge at night. Getting the reward and continuing the quest looks a bit difficult... There's only one thing for it, which is to go and get drunk. After a night in the tavern, I go back to the governor's residence as he also owes me a few promotions for doing nasty things to Portugal's other enemies. As it turns out, he remembers that he owes me lots of good stuff for bringing in Baxter. All's well after all - I get the reward and the quest can continue.