One year after the arrival of the portuguese in the New World, they arrived in Pernambuco, in the extreme east of South America. With the capitanias hereditárias division system, it became the Capitania of Pernambuco, a strip extended from the coast to Tordesilhas Treaty line. Just 2 capitanias could rise and develop, and Pernambuco was one of them because of the weather, that made sugar production increase a lot.
During Iberian Union, the young Holland invaded Pernambuco to weak the temporary spanish colony Brasil. Spain didn't have much resistence in the capitania, so the dutch easily created New Holland. But then happened the Insurreição Pernambucana (Pernambucan Uprising), an uprising of the people of the colony against dutch rule. Soon after the uprising Portugal (now out of the union) sent troops and expelled the dutch from Pernambuco.