I'll give it a shot.. My fellow Tagalog speakers may correct me..
"From 1569 many inhabitants of the Islands [the Philippines - translators note] were convinced to submit to the Roman Catholic faith, and the sport of kali or arnis was almost completely ignored due to their wish to be called "Filipino Ilustrado" ["illustrious Filipinos" - translators note]. Kali, which was a former pastime, was practiced only on rare occasions. And when Don Simon de Anda y Salazar  banned in 1764 any form of sport, the number of people practising [kali] continued to decrease, save for the people living free in the mountains and in distant places, who had not yet been baptised."
Hope this helps.
 Simon de Anda was an Oidor and Lt. Governor General who became acting Governor General of the Philippines, from 1762 to 1764 during the British Occupation of Manila. He organised resistance against the British. His decree could have been part of his measures to prevent the Filipino natives from aiding the British invaders. When the British left the Philippines in 1764, Francisco de la Torre was proclaimed Governor General. Anda left but returned to the Philippines in 1770 with a Royal Decree proclaiming him as the official Governor General.
I've been looking around about the suppossed banning of Filipino Martial Arts practise by spanish colonial government and found this:
"Buhat nuong 1569, ay marami na sa mga mamamayan sa Kapuluan ang nahikayat na sumailalim ng pananampalatayang Katoliko Romano, at halos nakaligtaan na nag larong kali o arnis sa paghahangad na tawagin sila'y mga "Filipino Ilustrado". Ang kali na dating laro nila ay idinaraos lamang sa mga pambihinrang pagkakataon. At nang ipagbawal ni Don Simon de Anda y Slazar, nuong 1764, ang anumang uri ng laro ay patuluyang naligpit, maliban lamang sa mga taong namamayang Malaya sa bundok at samga malalayong nayon na hindi pa binyagan." (page 12, par. 5)
Source: Excerpts from "Mga Karunungan sa Larong Anis"
Could any of the Tagalog speakers around here give me a translation.
Thanks in advance.