Lord Holland's standing in British political life, his close family relationship with Charles James Fox, his command of Spanish and his direct experience of Spain and Portugal meant that he was well placed to comment on developments in these countries and their overseas possessions. The combined assault of the ideas of the French Revolution and those of humanitarianism, coupled with French conquests and local reactions to it, were testing traditional institutions to breaking point. There were many different notions of what the future could or should be like. Holland clearly felt that he had a right and a duty to contribute to this debate. Sometimes he was optimistic, sometimes pessimistic. In England – as a Whig and hence for most of the time out of office – Holland was in favour of moderate reform. Despite his reservations on particular aspects of the British system, Holland certainly believed that it was superior to others. Indeed the central – though by no means only – question posed in Holland's speeches, memoranda, diary entries and correspondence is whether it is possible for other countries to develop political systems that more or less follow the British model.

Holland first became interested in Portugal – if only slightly – during the brief conflict in 1801 later known as Guerra das Laranjas (the War of the Oranges). A Franco– Spanish invasion of Portugal had already been envisaged under the terms of the Treaty of San Ildefonso of 1796. In 1800, France had presented Portugal with a series of demands, including repudiation of the alliance with Britain. The Portuguese had refused and, on 29 January 1801, France and Spain agreed to invade if Portugal still refused to close her ports to British ships. On 20 May 1801, following a formal declaration of war in early March, a Spanish force under Prince of Peace Manuel Godoy occupied Olivenca and proceeded to take over the province of Alto Alentejo. On 6 June, Portugal was forced to conclude a truce at Badajoz, agreeing to close its ports to British ships and to pay 20 million francs to the French republic.