Sentence:  Whereas in the Caribbean it was not at all unheard of for merchants to hold <WSD>encomiendas</WSD> or municipal office, in the central areas one had to make a quick choice between appearing as a merchant or vying for an <WSD>encomienda</WSD>, for one could not do both. 
Meaning of the word marked with <WSD> tags:  A permission to exploit labour within the encomienda system; an enterprise established to exploit such a permission.