For nearly 300 years, differing interpretations of the
Treaty of Tordesillas led to border disputes between Spain and Portugal over the
Río de la Plata region. Portuguese encroachments in this area allowed their merchants to evade commercial restrictions imposed by Spain on the importation of goods into
Spanish South America. This culminated in 1690 when Portugal established the trading post of
Colonia del Sacramento, just across the river from
Buenos Aires which became a major centre for smuggled goods. The two countries attempted to settle this dispute by the
1750 Treaty of Madrid but it was annulled by
Charles III of Spain in 1761. Spain entered the
Seven Years' War on the side of France in 1762; their
invasion of Portugal ended in disaster, but they captured Colonia del Sacramento and lands now in the
southern Brazilian state of
Rio Grande do Sul. Although forced to return Colonia del Sacramento and other Portuguese possessions under Article XXI of the 1763
Treaty of Paris, Spain retained its gains in Rio Grande, since they argued these lands were in fact Spanish. As a result, over the next decade Portugal reoccupied Rio Grande in an undeclared war before formal hostilities commenced in the
1776–1777 Spanish–Portuguese War. In February 1777, a Spanish expeditionary force of 116 ships and 19,000 troops captured the island of Santa Catarina in February before moving against Colonia del Sacramento which surrendered in July. Fighting ended in February 1777 when
Joseph I of Portugal died and his daughter, Spanish-born
Maria I, sued for peace. The October 1777
First Treaty of San Ildefonso established a Boundary Commission to demarcate borders in the Río de la Plata region, which were later confirmed by the Treaty of El Pardo. ==Provisions==