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Brazil paid 2 million pounds sterling to Portugal as compensation for independence; this was established in the Treaty of Rio de Janeiro (1825) which was mediated by Britain.

ART. IV - There will now be peace and alliance and the most perfect friendship between the Kingdoms of Portugal and the Algarves and the Empire of Brazil with complete forgetfulness of the past disputes between the respective peoples. His Imperial Majesty pledges to pay the sum of two million pounds sterling, or 80 tons of gold, as compensation, to the Kingdoms of Portugal and the Algarves.

Are there any reliable records of what Portugal did with the money? There are claims that this money was lent to Brazil by Britain, and that the money never even left Britain, because it was used to pay debt Portugal had, but I don't know if this is true. For example of the claim, see below from Mundo Educação:

As a newly formed nation, Brazil could not pay the heavy compensation established by the 1825 treaty. At that time, the British lent the resources that ensured the payment of this amount. In fact, the money did not even leave England itself, as the Portuguese had to pay an equivalent debt to the same creditors.

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    Typically for a national budget, inflows are completely disjoint from outflows, so it would be more a matter of what the Government of Portugal chose to spend its money on while payments are coming in. As a US citizen I can't say that I know for a fact that my specific tax $ this year all went to fund the Federal prison at Leavenworth while my neighbors' all went to repair Interstate 40.
    – T.E.D.
    Oct 20, 2022 at 13:21
  • @T.E.D. I'll edit and make this clearer: there are claims (at least in Brazil) that this money never left England and was entirely used to pay debt to England (who lent the money to Brazil in the first place), but I don't know the veracity of these claims.
    – Cesar M
    Oct 20, 2022 at 13:41
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    Thanks for the updates; much clearer. If the money was to pay a debt to England, then why would be even surprising that it never left England? It might even make sense that this would be why England mediated the claim and guaranteed the debt.
    – MCW
    Oct 20, 2022 at 15:35
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    @MCW: yes, that sounds plausible and logical, however, I don't know if it's actually true. Hence the question :)
    – Cesar M
    Oct 20, 2022 at 16:29
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    @Luiz It was not the VOC. It was the GWC Aug 20, 2023 at 6:38

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