The façade of St. Paul's College in Macau, 1854
António de Oliveira Salazar sought the preservation of a pluricontinental Portugal.
The outbreak of violence in February 1961 in Angola was the beginning of the end of Portugal's empire in Africa. Portuguese army officers in Angola held the view that it would be incapable of dealing militarily with an outbreak of guerilla warfare and therefore that negotiations should begin with the independence movements. However, Salazar publicly stated his determination to keep the empire intact, and by the end of the year, 50,000 troops had been stationed there. The same year, the tiny Portuguese fort of São João Baptista de Ajudá in Ouidah, a remnant of the West African slave trade, was annexed by the new government of Dahomey (now Benin) that had gained its independence from France. Unrest spread from Angola to Guinea, which rebelled in 1963, and Mozambique in 1964.
The rise of Soviet influence among the Movimento das Forças Armadas's military (MFA) and working class, and the cost and unpopularity of the Portuguese Colonial War (1961–1974), in which Portugal resisted to the emerging nationalist guerrilla movements in some of its African territories, eventually led to the collapse of the Estado Novo regime in 1974. Known as the "Carnation Revolution", one of the first acts of the MFA-led government which then came into power – the National Salvation Junta (Junta de Salvação Nacional) – was to end the wars and negotiate Portuguese withdrawal from its African colonies. These events prompted a mass exodus of Portuguese citizens from Portugal's African territories (mostly from Angola and Mozambique), creating over a million Portuguese refugees – the retornados. Portugal's new ruling authorities also recognized Goa and other Portuguese India's territories invaded by India's military forces, as Indian territories. Benin's claims over São João Baptista de Ajudá were accepted by Portugal in 1974.
In the 19th century, Portugal launched campaigns to solidify Portuguese Africa.
Civil wars in Angola and Mozambique promptly broke out, with incoming communist governments formed by the former rebels (and backed by the Soviet Union, Cuba, and other communist countries) fighting against insurgent groups supported by nations like Zaire, South Africa, and the United States.
East Timor also declared independence in 1975 by making an exodus of many Portuguese refugees to Portugal, which was also known as retornados. However, East Timor was almost immediately invaded by neighbouring Indonesia, which later occupied up until 1999. A United Nations-sponsored referendum of that year resulted in a majority of East Timorese choosing independence, which was finally achieved in 2002.
In March 1987, Portugal signed the Sino-Portuguese Joint Declaration with the People's Republic of China to establish the process and conditions for the transfer of sovereignty of Macau, its last remaining colony. While this process was similar to the agreement between the United Kingdom and China two years earlier regarding Hong Kong, the Portuguese transfer to China was met with less resistance than that of Britain and Hong Kong, as Portugal had already recognized Macau as Chinese territory under Portuguese administration in 1979. Under the transfer agreement, Macau is to be governed under a one country, two systems policy, in which it will retain a high degree of autonomy and maintain its capitalist way of life for at least 50 years after the handover in 2049. The handover on 20 December 1999 officially marked the end of the Portuguese Empire and end of colonialism in Asia.
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