Though Britain and the empire emerged victorious from the Second World War, the effects of the conflict were profound, both at home and abroad. Much of Europe, a continent that had dominated the world for several centuries, was in ruins, and host to the armies of the United States and the Soviet Union, who now held the balance of global power. Britain was left essentially bankrupt, with insolvency only averted in 1946 after the negotiation of
a US$3.75 billion loan from the United States, the last installment of which was repaid in 2006. At the same time, anti-colonial movements were on the rise in the colonies of European nations. The situation was complicated further by the increasing
Cold War rivalry of the United States and the Soviet Union. In principle, both nations were opposed to European colonialism. In practice, American
anti-communism prevailed over
anti-imperialism, and therefore the United States supported the continued existence of the British Empire to keep Communist expansion in check. At first, British politicians believed it would be possible to maintain Britain's role as a world power at the head of a re-imagined Commonwealth, but by 1960 they were forced to recognise that there was an irresistible "
wind of change" blowing. Their priorities changed to maintaining an extensive zone of British influence and ensuring that stable, non-Communist governments were established in former colonies. In this context, while other European powers such as France and Portugal waged costly and unsuccessful wars to keep their empires intact, Britain generally adopted a policy of peaceful disengagement from its colonies, although violence occurred in
Malaya,
Kenya and
Palestine. Between 1945 and 1965, the number of people under British rule outside the UK itself fell from 700 million to 5 million, 3 million of whom were in Hong Kong.
Initial disengagement in 1947. The pro-decolonisation
Labour government, elected at the
1945 general election and led by
Clement Attlee, moved quickly to tackle the most pressing issue facing the empire:
Indian independence. India's major political party—the
Indian National Congress (led by
Mahatma Gandhi) — had been campaigning for independence for decades, but disagreed with
Muslim League (led by
Muhammad Ali Jinnah) as to how it should be implemented. Congress favoured a unified secular Indian state, whereas the League, fearing domination by the Hindu majority, desired a separate
Islamic state for Muslim-majority regions. Increasing
civil unrest led Attlee to promise independence no later than 30 June 1948. When the urgency of the situation and risk of civil war became apparent, the newly appointed (and last) Viceroy,
Lord Mountbatten, hastily brought forward the date to 15 August 1947. The borders drawn by the British to broadly
partition India into Hindu and Muslim areas left tens of millions as minorities in the newly independent states of India and
Pakistan. The
princely states were provided with a choice to either remain independent or join India or Pakistan. Millions of Hindus & Sikhs crossed from Pakistan to India and Muslims vice versa, and violence between the two communities cost hundreds of thousands of lives.
Burma, which had been administered as part of
British India until 1937, gained independence the following year in 1948 along with
Sri Lanka (formerly known as
British Ceylon). India, Pakistan and Sri Lanka became members of the Commonwealth, while Burma chose not to join. That same year, the
British Nationality Act was enacted, in hopes of strengthening and unifying the Commonwealth: it provided British citizenship and right of entry to all those living within its jurisdiction. The British Mandate in Palestine, where an Arab majority lived alongside a Jewish minority, presented the British with a similar problem to that of India. The matter was complicated by large numbers of
Jewish refugees seeking to be admitted to Palestine following the
Holocaust, while Arabs were opposed to the creation of a Jewish state. Frustrated by the intractability of the problem, attacks by Jewish paramilitary organisations and the increasing cost of maintaining its military presence, Britain announced in 1947 that it would withdraw in 1948 and leave the matter to the United Nations to solve. The
UN General Assembly subsequently voted for a
plan to partition Palestine into a Jewish and an Arab state. It was immediately followed by the outbreak of a
civil war between the Arabs and Jews of Palestine, and British forces withdrew amid the fighting. The British Mandate for Palestine officially terminated at midnight on 15 May 1948 as the State of
Israel declared independence and the
1948 Arab-Israeli War broke out, during which the territory of the former Mandate became divided between Israel and the surrounding Arab states. Amid the fighting, British forces continued to withdraw from Israel, with the last British troops departing from
Haifa on 30 June 1948. Following the
surrender of Japan in the Second World War, anti-Japanese
resistance movements in Malaya turned their attention towards the British, who had moved to quickly retake control of the colony, valuing it as a source of rubber and tin. The fact that the guerrillas were primarily
Malaysian Chinese Communists meant that the British attempt to quell the uprising was supported by the
Muslim Malay majority, on the understanding that once the insurgency had been quelled, independence would be granted. The
Malayan Emergency, as it was called, began in 1948 and lasted until 1960, but by 1957, Britain felt confident enough to grant independence to the
Federation of Malaya within the Commonwealth. In 1963, the 11 states of the federation together with Singapore, Sarawak and
North Borneo joined to form
Malaysia, but in 1965 Chinese-majority
Singapore was expelled from the union following tensions between the Malay and Chinese populations and became an independent city-state.
Brunei, which had been a British protectorate since 1888, declined to join the union.
Suez and its aftermath 's decision to invade
Egypt in 1956 revealed Britain's post-war weaknesses. In the
1951 general election, the
Conservative Party returned to power in Britain under the leadership of Winston Churchill. Churchill and the Conservatives believed that Britain's position as a world power relied on the continued existence of the empire, with the base at the Suez Canal allowing Britain to maintain its pre-eminent position in the Middle East in spite of the loss of India. Churchill could not ignore
Gamal Abdul Nasser's new revolutionary
government of Egypt that had
taken power in 1952, and the following year it was agreed that British troops would withdraw from the Suez Canal zone and that Sudan would be granted self-determination by 1955, with independence to follow Sudan was
granted independence on 1 January 1956. In July 1956, Nasser unilaterally nationalised the Suez Canal. The response of
Anthony Eden, who had succeeded Churchill as Prime Minister, was to collude with France to engineer an Israeli attack on
Egypt that would give Britain and France an excuse to intervene militarily and retake the canal. Eden infuriated US President
Dwight D. Eisenhower by his lack of consultation, and Eisenhower refused to back the invasion. Another of Eisenhower's concerns was the possibility of a wider war with the
Soviet Union after it threatened to intervene on the Egyptian side. Eisenhower applied
financial leverage by threatening to sell US reserves of the
British pound and thereby precipitate a collapse of the British currency. Though the invasion force was militarily successful in its objectives, UN intervention and US pressure forced Britain into a humiliating withdrawal of its forces, and Eden resigned. The
Suez Crisis very publicly exposed Britain's limitations to the world and confirmed Britain's decline on the world stage and its end as a first-rate power, demonstrating that henceforth it could no longer act without at least the acquiescence, if not the full support, of the United States. The events at Suez wounded British
national pride, leading one
Member of Parliament (MP) to describe it as "Britain's
Waterloo" and another to suggest that the country had become an "American
satellite".
Margaret Thatcher later described the mindset she believed had befallen Britain's political leaders after Suez where they "went from believing that Britain could do anything to an almost neurotic belief that Britain could do nothing", from which Britain did not recover until the successful recapture of the
Falkland Islands from Argentina in 1982. While the Suez Crisis caused British power in the Middle East to weaken, it did not collapse. Britain again deployed its armed forces to the region, intervening in
Oman (
1957),
Jordan (
1958) and
Kuwait (
1961), though on these occasions with American approval, as the new Prime Minister
Harold Macmillan's foreign policy was to remain firmly aligned with the United States. Although Britain granted Kuwait independence in 1961, it continued to maintain a military presence in the Middle East for another decade. On 16 January 1968, a few weeks after the
devaluation of the pound, Prime Minister
Harold Wilson and his Defence Secretary
Denis Healey announced that
British Armed Forces troops would be withdrawn from major military bases
East of Suez, which included the ones in the Middle East, and primarily from Malaysia and Singapore by the end of 1971, instead of 1975 as earlier planned. By that time over 50,000 British military personnel were still stationed in the Far East, including 30,000 in Singapore. The British granted independence to the
Maldives in 1965 but continued to station a garrison there until 1976, withdrew from
Aden in 1967, and granted independence to
Bahrain,
Qatar, and the
United Arab Emirates in 1971.
Wind of change (the future Zimbabwe) and the South African mandate of South West Africa (Namibia) had achieved recognised independence. Macmillan gave a speech in
Cape Town, South Africa in February 1960 where he spoke of "the wind of change blowing through this continent". Macmillan wished to avoid the same kind of
colonial war that France was fighting in
Algeria, and under his premiership decolonisation proceeded rapidly. To the three colonies that had been granted independence in the 1950s—Sudan, the
Gold Coast and Malaya—were added nearly ten times that number during the 1960s. Owing to the rapid pace of decolonisation during this period, the cabinet post of
Secretary of State for the Colonies was abolished in 1966, along with the
Colonial Office, which merged with the Commonwealth Relations Office to form the Foreign and Commonwealth Office (now the
Foreign, Commonwealth and Development Office) in October 1968. Britain's remaining colonies in Africa, except for self-governing
Southern Rhodesia, were all granted independence by 1968. British withdrawal from the southern and eastern parts of Africa was not a peaceful process. From 1952 the
Kenya Colony saw the eight-year long
Mau Mau rebellion, in which tens of thousands of suspected rebels were interned by the colonial government in detention camps to suppress the rebellion and over 1000 convicts executed, with records systematically destroyed. Throughout the 1960s, the British government took a "
No independence until majority rule" policy towards decolonising the empire, leading the white minority government of Southern Rhodesia to enact the 1965
Unilateral Declaration of Independence from Britain, resulting in a
civil war that lasted until the British-mediated
Lancaster House Agreement of 1979. The agreement saw the British Empire temporarily re-establish the Colony of Southern Rhodesia from 1979 to 1980 as a transitionary government to a majority rule
Republic of Zimbabwe. This was the last British possession in Africa. In
Cyprus, a guerrilla war waged by the
Greek Cypriot organisation
EOKA against British rule, was ended in 1959 by the
London and Zürich Agreements, which resulted in Cyprus being granted independence in 1960. The UK retained the military bases of
Akrotiri and Dhekelia as sovereign base areas. The
Mediterranean colony of
Malta was amicably granted independence from the UK in 1964 and became the country of
Malta, though the idea had been raised in 1955 of
integration with Britain. Most of the UK's Caribbean territories achieved independence after the departure in 1961 and 1962 of Jamaica and Trinidad from the
West Indies Federation, established in 1958 in an attempt to unite the British Caribbean colonies under one government, but which collapsed following the loss of its two largest members. Jamaica attained independence in 1962, as did
Trinidad and Tobago. Barbados achieved independence in 1966 and the remainder of the eastern Caribbean islands, including the
Bahamas, in the 1970s and 1980s, but
Anguilla and the
Turks and Caicos Islands opted to revert to British rule after they had already started on the path to independence. The
British Virgin Islands, The
Cayman Islands and
Montserrat opted to retain ties with Britain, while Guyana achieved independence in 1966. Britain's last colony on the American mainland,
British Honduras, became a self-governing colony in 1964 and was renamed
Belize in 1973, achieving full independence in 1981. A
dispute with Guatemala over claims to Belize was left unresolved.
British Overseas Territories in the Pacific acquired independence in the 1970s beginning with
Fiji in 1970 and ending with
Vanuatu in 1980. Vanuatu's independence was delayed because of political conflict between English and French-speaking communities, as the islands had been jointly administered as a
condominium with France. Fiji,
Papua New Guinea,
Solomon Islands and
Tuvalu became
Commonwealth realms.
End of empire By 1981, aside from a scattering of islands and outposts, the process of decolonisation that had begun after the Second World War was largely complete. In 1982, Britain's resolve in defending its remaining overseas territories was tested when
Argentina invaded the Falkland Islands, acting on a long-standing claim that dated back to the
Spanish Empire. Britain's successful military response to retake the
Falkland Islands during the ensuing
Falklands War contributed to reversing the downward trend in Britain's status as a world power. The 1980s saw Canada, Australia, and New Zealand sever their final constitutional links with Britain. Although granted legislative independence by the
Statute of Westminster 1931, vestigial constitutional links had remained in place. The British Parliament retained the power to amend key Canadian constitutional statutes, meaning that an act of the British Parliament was required to make certain changes to the
Canadian Constitution. The British Parliament had the power to pass laws extending to Canada at Canadian request. Although no longer able to pass any laws that would apply to Australian Commonwealth law, the British Parliament retained the power to legislate for the individual
Australian states. With regard to New Zealand, the British Parliament retained the power to pass legislation applying to New Zealand with the
New Zealand Parliament's consent. In 1982, the last legal link between Canada and Britain was severed by the
Canada Act 1982, which was passed by the British parliament, formally
patriating the Canadian Constitution. The act ended the need for British involvement in changes to the Canadian constitution. Similarly, the
Australia Act 1986 (effective 3 March 1986) severed the constitutional link between Britain and the Australian states, while New Zealand's
Constitution Act 1986 (effective 1 January 1987) reformed the constitution of New Zealand to sever its constitutional link with Britain. On 1 January 1984, Brunei, Britain's last remaining Asian protectorate, was granted full independence. Independence had been delayed due to the opposition of the
Sultan, who had preferred British protection. In September 1982 the Prime Minister,
Margaret Thatcher, travelled to Beijing to negotiate with the Chinese Communist government, on the future of Britain's last major and most populous overseas territory, Hong Kong. Under the terms of the 1842
Treaty of Nanking and 1860
Convention of Peking,
Hong Kong Island and
Kowloon Peninsula had been respectively ceded to Britain
in perpetuity, but the majority of the colony consisted of the
New Territories, which had been acquired under a
99-year lease in 1898, due to expire in 1997. Thatcher, seeing parallels with the Falkland Islands, initially wished to hold Hong Kong and proposed British administration with Chinese sovereignty, though this was rejected by China. A deal was reached in 1984—under the terms of the
Sino-British Joint Declaration, Hong Kong would become a
special administrative region of the People's Republic of China. The
handover ceremony in 1997 marked for many, including King Charles III, then Prince of Wales, who was in attendance, "the end of Empire", though many British territories that are remnants of the empire still remain. == Legacy ==