António de Oliveira Salazar
Despite the authoritarian character of the regime, Portugal did not experience the same levels of international isolation as Spain did following World War II. Unlike Spain, Portugal under Salazar was accepted into the Marshall Plan (1947–1948) in return for the aid it gave to the Allies during the final stages of the war. Furthermore, also unlike Spain, it was one of the 12 founding members of the North Atlantic Treaty Organisation (NATO) in 1949, a reflection of Portugal's role as an ally against communism during the Cold War in spite of its status as the only non-democratic founder. In 1950, Portugal joined the European Payments Union and participated in the founding of the European Free Trade Association (EFTA) in 1960 and the Organisation for Economic Co-operation and Development in 1961. It joined the General Agreement on Tariffs and Trade in 1962, and finally, Portugal signed a free trade agreement with the European Economic Community in 1972, still under the auspices of the "Estado Novo".
Military history of Portugal
Portugal remained steadfastly neutral in World War II, but became involved in counterinsurgency campaigns against scattered guerrilla movements in Portuguese Angola, Portuguese Mozambique, and Portuguese Guinea. Except in Portuguese Guinea, where the revolutionary PAIGC quickly conquered most of the country, Portugal was able to easily contain anti-government forces through the imaginative use of light infantry, home defense militia, and air-mobile special operations forces, despite arms embargoes from other European countries. During the counterinsurgency campaigns in Angola and Mozambique, Portugal was significantly aided by intelligence provided by native residents who did not support revolutionary forces. However, the ideology of the guerillas, especially the PAIGC, had a profound impact on the officers of the Portuguese armed forces and a left-wing military coup in Lisbon by Portuguese military officers in 1974 toppled the Caetano government and forced a radical change in government attitudes. Faced with international condemnation of its colonial policies and the increasing cost of administering its colonies, Portugal quickly moved to grant the remainder of its African colonies independence.