Treaty of Tordesillas
When the word of Columbus' discoveries reached Europe, a bitter dispute broke out between Spain and Portugal. Portugal refused to recognize the Spanish claim to the Caribbean islands. Portugal believed that they were part of the Azores, which belonged to Portugal. The Pope was concerned that the dispute could lead to war between the two devoutly Catholic countries and offered to mediate. After many months of mediation both Portugal and Spain agreed to the Treaty of Tordesillas in 1494. Under the terms of the treaty, a line of Demarcation was established. Any lands to the west of the Line, which was 1000 miles west of the Azores, would belong to Spain... territories to the East would belong to Portugal. One quarter of South America turned out to be to the east of the line and that area became the Portuguese colony of Brazil..