The Venetians had a substantial stake in the local trade of the Byzantine empire and provided essential naval assistance. The chrysobull of 992 was a confirmation of existing privileges and practices. The same was true of the chrysobull traditionally dated to 1082, which Alexius I Komnenos granted to the Venetians. His son and successor John II refused to ratify the chrysobull while Manuel I Komnenos also sought to bring the Venetians to heel and adopted a bolder strategy. He challenged their control of the Adriatic and in 1171 interned Venetians resident in the empire and seized their property. The Venetians survived only because they had the Adriatic to fall back on. Venice derived its basic strengths from the resources of the northern Adriatic, which allowed them to equip formidable fleets which, in turn, helped them to dominate the Adriatic and to further their interests in the Aegean and Eastern Mediterranean. Despite the frictions, the Venetian patriciate understood that their interests were best served by effective Byzantine government, which guaranteed the security of the seas.

The chapter focuses on the years 1369-82. The topics discussed are the civil war between John V, Andronikos and Manuel, Manuel's despotate in Thessalonike and his first trip to Venice. The discussions pay special attention to Manuel's representation of the events in his works, his relationship with his father and brothers and the emergence of his governing style. The political and economic policies of John V and Manuel are compared. It is argued that through his writings, Manuel represents an idealized version of his reign and life, omitting unpleasant or shameful episodes. Through the analysis of a chyrsobull of John V dated to 1371, it is argued that prior to 1374, John V had no intention of making Manuel his heir.