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".
Portugal during World War II
In November 1943, Sir Ronald Campbell, the British ambassador in Lisbon, wrote:strict neutrality was the price the allies paid for strategic benefits accruing from Portugal's neutrality and that if her neutrality instead of being strict had been more benevolent in allies' favour Spain would inevitably have thrown herself body and soul into the arms of Germany. If this had happened the peninsula would have been occupied and then North Africa, with the result that the whole course of the war would have been altered to the advantage of the Axis.The British diplomat Sir George Rendell stated that the Portuguese Republican Government of Bernardino Machado was "far more difficult to deal with as an ally during the First War than the infinitely better Government of Salazar was as a neutral in the Second."