In pre-Hispanic times, the coast here was occupied by the Totonacs, with influences from Toltec and Aztec civilizations. After the Spanish conquest, Veracruz was Mexico's main gateway to the outside world for 400 years.
Hernán Cortés made his first landing here at an island 2km (1.3mi) offshore, naming it 'Isla Sacrificios' because of the sacrificed human remains he found there. He then anchored off another island, San Juan de Ulúa, in 1519, making his first contact with Moctezuma's envoys. Cortés founded the first Spanish settlement at Villa Rica, 69km (43mi) north, but this was later moved to La Antigua, and finally to the present site of Veracruz in 1598.
Veracruz became the Spaniards' most important anchorage - until 1760 it was the only port allowed to handle trade with Spain. However, because of seaborne raids and tropical diseases (malaria and yellow fever were rampant), Veracruz never became one of Mexico's biggest cities.
In 1567, nine English ships sailed into Veracruz harbor, with the intention of selling slaves in defiance of the Spanish trade monopoly. They were trapped by a Spanish fleet, and only two of the ships escaped. One of them, however, carried Francis Drake, who went on to harass the Spanish in a long career as a sort of licensed pirate. The most vicious pirate attack of all occurred in 1683, when the Frenchman Laurent de Gaff, with 600 men, held the 5000 inhabitants of Veracruz captive in the town church with little food or water. De Gaff's men killed anyone who tried to escape, piled Plaza de Armas with loot, got drunk and raped many of the women. They left a few days later, much richer.
In 1838, General Antonio López de Santa Anna fled Veracruz in his underwear under bombardment from a French fleet in the 'Pastry War' (the French were pressing various claims against Mexico, including that of a French pastry cook whose restaurant had been wrecked by unruly Mexican officers). But the general responded heroically, expelling the invaders and losing his left leg in the process.
When the army of Winfield Scott attacked Veracruz in 1847 during the Mexican-American War, more than 1000 Mexicans were killed in a week-long bombardment before the city surrendered.
In 1859, during Mexico's internal Reform War, Benito Juárez' Veracruz-based liberal government promulgated the reform laws that nationalized church property, and put education into secular hands. Two years later, Juárez, having won the war, announced that Mexico couldn't pay its foreign debts. A joint French-Spanish-British force subsequently occupied Veracruz. Realizing that Napoleon III intended to conquer Mexico, the Brits and Spaniards went home, while the French marched inland to begin their five-year intervention.
When Napoleon III's reign came to an end, Veracruz again began to flower. Mexico's first railway was built between Veracruz and Mexico City in 1872 and, under the dictatorship of Porfirio Díaz, investment poured into the city.
In 1914, during the civil war that followed Díaz' departure in the 1910-11 revolution, US troops occupied Veracruz to prevent a delivery of German arms to the conservative dictator, Victoriano Huerta. The Mexican casualties that resulted from this intervention alienated even Huerta's opponents. Later in the civil war, Veracruz was, for a while, the capital of the reformist Constitutionalist faction led by Venustiano Carranza.
Today, Veracruz is Mexico's most important deep-water port - handling around 70% of the nation's exports to the Americas and Europe - and a key center for the manufacturing and petrochemical industries. Tourism, particularly from the domestic sector, is another major source of income - it peaks during Carnaval around February-March.
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