in declarations of independence in the Spanish colonies of America, which in turn was responsible for a tense political climate in Brazil. In 1816, and as a result of the increasing influence of the Liga Federal, the United Kingdom of Portugal, Brazil and the Algarves invaded and conquered the Banda Oriental, annexing it under the name of Província Cisplatina in 1821. Liberal Revolution From 1808 through 1821, Portugal was effectively both a British protectorate and a colony of Brazil, as the Portuguese Crown remained in Rio de Janeiro. The moving of the Portuguese capital to Rio de Janeiro accentuated the economic, institutional and social crises in mainland Portugal, which was administered by English commercial and military interests under William Beresford's rule in the absence of the monarch. The influence of liberal ideals was strengthened by the aftermath of the war, the continuing impact of the American and French revolutions, discontent under absolutist government, and the general indifference shown by the Portuguese regency for the plight of its people. After 1807 the limitations and subordinations inherent in Brazil's colonial status were already being reduced incrementally. The prohibition on transformative industries was rescinded, and new incentives were offered for: the creation of factories, the importation of British machinery, ship construction, and road building, as well as the foundation and construction of public schools and military academies. In addition to these improvements, the Bank of Brazil was chartered and insurance companies, commerce commissions and currency exchanges were established. This damaged the mother country's commercial interests and aggravated social problems there, while benefiting the United Kingdom, as Portugal was governed by the increasingly despotic British general William Beresford in the absence of the Cortes. At the end of the Peninsular War, Portugal returned French Guiana (which had been seized in 1809) to France on 30 May 1814. With the declaration by King John of the United Kingdom of Portugal, Brazil and the Algarves in December 1815, Brazil's new importance worsened the situation in continental Portugal: politically, it became the Portuguese capital (shedding the pretense of being a colony), and economically, was now able to trade directly with other European powers. 1820 Revolution A report was sent from the Regency to John VI on 2 June 1820, stating: "Portugal has arrived at a crisis in which it will suffer a revolution of fortunes, of order, an anarchy, and other ills that will bring a complete