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[[File:Nicolaes Visscher - Pharnambuci (Pernambuco, Brazil).jpg|thumb|right|Dutch siege of [[Olinda]] and [[Recife]], the largest and richest sugar-producing area in the world.<ref>{{Cite book |last=Levine |first=Robert M. |url=https://books.google.com/books?id=R28K2JA9PM8C&pg=PA121 |title=The Brazil Reader: History, Culture, Politics |last2=Crocitti |first2=John J. |last3=Kirk |first3=Robin |last4=Starn |first4=Orin |year=1999 |isbn=0822322900 |page=121 |access-date=21 September 2016}}</ref><ref name="Sugar">{{Cite web |title=Recife – A City Made by Sugar |url=http://wol.jw.org/en/wol/d/r1/lp-e/102005410 |access-date=21 September 2016 |publisher=Awake!}}</ref>]]
In 1630 the Dutch returned, and captured [[Olinda]] and then [[Recife]], renamed ''Mauritsstadt'', thus establishing the colony of [[Dutch Brazil|New Holland]]. The Portuguese commander [[Matias de Albuquerque]] retreated his forces inland, to establish a camp dubbed ''Arraial do Bom Jesus''.<ref>Saturnino Monteiro (2011) ''Portuguese Sea Battles Volume VI – 1627–1668'' p. 57.</ref> Until 1635, the Dutch were unable to harvest sugar due to Portuguese guerrilla attacks, and were virtually confined to the walled perimeter of the cities. Eventually, the Dutch evicted the Portuguese with the assistance of a local landlord named [[Domingos Fernandes Calabar]], but on his retreat to Bahia, Matias de Albuquerque captured Calabar at [[Porto Calvo]], and had him
The Portuguese fought back two Dutch attacks on Bahia in 1638. Nonetheless, by 1641 the Dutch captured [[São Luís, Maranhão|São Luís]], leaving them in control of northwestern Brazil between [[Maranhão]] and [[Sergipe]] in the south<ref name="WJ47">Klein p. 47.</ref>
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