Portugal during World War II
Upon the start of World War II in 1939, the Portuguese Government announced on 1 September that the 600-year-old Anglo-Portuguese Alliance remained intact, but that since the British did not seek Portuguese assistance, Portugal was free to remain neutral in the war and would do so. In an aide-mémoire of 5 September 1939, the British Government confirmed the understanding. As Hitler's occupation swept across Europe, neutral Portugal became one of the Continent's last escape routes. Portugal managed to remain neutral throughout the war despite extraordinary pressures from both sides, notably over the strategically located Azores islands and over the wolfram (tungsten) trade.
Peter II of Portugal
Peter initially supported France and Spain in the War of Spanish Succession (1701–1714), but on 16 May 1703, Portugal and England signed the Methuen Treaty. This trade accord granted mutual commercial privileges for Portuguese wine and English textile traders and would later give England significant influence in the Portuguese economy. This was followed in December 1703 by a military alliance between Portugal, Austria and England for an invasion of Spain. Portuguese and Allied forces, under the command of the Marquis of Minas, captured Madrid in 1706, during the campaign which ended in the Allied defeat at Almansa.