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".
History of East Timor
Although Portugal was neutral during World War II, in December 1941, Portuguese Timor was occupied by Australian and Dutch forces, which were expecting a Japanese invasion. This Australian military intervention dragged Portuguese Timor into the Pacific War but it also slowed the Japanese expansion. When the Japanese did occupy Timor, in February 1942, a 400-strong Dutch-Australian force and large numbers of Timorese volunteers engaged them in a one-year guerilla campaign. After the allied evacuation in February 1943 the East Timorese continued fighting the Japanese, with comparatively little collaboration with the enemy taking place. This assistance cost the civilian population dearly: Japanese forces burned many villages and seized food supplies. The Japanese occupation resulted in the deaths of 40,000–70,000 Timorese.