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In 1975, Portugal granted independence to its Overseas Provinces (Províncias Ultramarinas in Portuguese) in Africa (Mozambique, Angola, Guinea-Bissau, Cape Verde and São Tomé and Príncipe). In that same year, Indonesia invaded and annexed the Portuguese province of Portuguese Timor (East Timor) in Asia before independence could be granted. The Asian dependency of Macau, after an agreement in 1986, was returned to Chinese sovereignty in 1999. Portugal applied international pressure to secure East Timor's independence from Indonesia, as East Timor was still legally a Portuguese dependency, and recognized as such by the United Nations. After a referendum in 1999, East Timor voted for independence and Portugal recognized its independence in 2002.

During the past 3000 years Portugal has witnessed a constant flow of different civilizations. Phoenician, Celtic, Carthaginian, Roman, Barbarian (Germanic) and Arabic cultures have all made an imprint in Portugal.

Early Greek explorers named the region "Ophiussa" (Greek for "land of serpents") because the natives worshipped serpents.

Portugal is a small coastal nation in southwestern Europe. Its mainland is located on the Iberian Peninsula, located 38°41° north of the equator and 8°5° west of the Prime Meridian.

Portugal has been inhabited for at least 500,000 years, first by Neanderthals and then by modern humans coming from Africa less than 100,000 years ago.

In mainland Portugal, average temperatures are 13ºC in the North and 18ºC in the South. Madeira and Azores, due to their location in the Atlantic, are rainy and wet, and have a narrower range of temperatures.

Over the past decade, successive governments have privatised many state-controlled firms and liberalised key areas of the economy, including the financial and telecommunications sectors. Today, Portugal is a developed nation. It joined the Economic and Monetary Union in 1998 and began circulating its new currency, the euro, on January 1, 2002 along with 11 other EU members.

Since the 2nd millenium BC, there was important construction in the area that would be Portugal. Before the arrival of the Romans, Citânia de Briteiros in Guimarães is a good example of native architecture, influenced by the Celts. The houses were round, built with granite without bonds. They were built in settlements (castros) in the mountains, and were surrounded by protecting walls.

Portugal borders only one nation—Spain, to the west and north—with a total of 1,214km of borders. It is bordered on the east with a 1,793km coastline along the North Atlantic Ocean. Portugal also controls the Atlantic islands of Azores and Madeira Islands, which are strategic locations along western sea approaches to the Strait of Gibraltar between the Atlantic and Mediterranean Sea. In total, the country has an area of 92,391km,² of which 91,951km² is land and 440km² water.

Prime Minister António de Oliveira Salazar ruled as a dictator, from 1932 to 1968. Although a stable period financially and economically, it saw the beginning of the end of the Portuguese Empire. India annexed Portuguese India, including Goa, in 1961. Independence movements also became active in Angola, Mozambique, and Portuguese Guinea, and an increasingly costly series of colonial wars failed to defeat the guerrillas. Despite the Salazar's incapacitation in 1968 and his death in 1970), and Marcelo Caetano's marcelist spring, discontent about the wars was one of the factors leading to the 1974 Revolution.

The Portuguese monarchy was deposed by the revolution of 1910, starting the First Republic. It was marked by chaos and Portuguese participation in the World War I; it came to an end in 1926 when a nationalist military coup d'etat gave birth to the Second Republic, a period of almost fifty years of repressive rule.