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".
Portuguese Timor
Although Portugal was neutral during World War II, in December 1941, Portuguese Timor was occupied by a small British, Australian and Dutch force, to preempt a Japanese invasion. However, the Japanese did invade in the Battle of Timor in February 1942. Under Japanese occupation, the borders of the Dutch and Portuguese were overlooked with Timor island being made a single Japanese army administration zone. 400 Australian and Dutch commandos trapped on the island by the Japanese invasion waged a guerrilla campaign, which tied up Japanese troops and inflicted over 1,000 casualties. Timorese and the Portuguese helped the guerillas but following the Allies' eventual evacuation, Japanese retribution from their soldiers and Timorese militia raised in West Timor was severe. By the end of the War, an estimated 40–60,000 Timorese had died, the economy was in ruins, and famine widespread. (see Battle of Timor).