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 Madeira
On 9 March 1916, Germany declared war on Portugal, followed by Portugal declaring war on Germany and starting to organise Portuguese troops to go to the Western Front. The effect of the Portuguese participation in World War I was first felt in Madeira on 3 December 1916 when the German U-boat, , captained by Max Valentiner went into Funchal harbour on Madeira and torpedoed and sank 3 ships, CS "Dacia" (1,856 tons), (2,493 tons) and "Surprise" (680 tons). The commander of the French Gunboat Surprise and 34 of her crew (7 Portuguese) died in the attack. The Dacia, a British cable laying vessel, had previously undertaken war work off the coast of Casablanca and Dakar, was in the process of diverting the South American cable into Brest, France. Following the attack on the ships, the Germans proceeded to bombard Funchal for two hours from a range of about . Batteries on Madeira returned fire and eventually forced the Germans to withdraw.