e Estado Novo under António de Oliveira Salazar in 1933. Portugal was one of only five European countries to remain neutral in World War II. From the 1940s to the 1960s, Portugal was a founding member of NATO, OECD and the European Free Trade Association (EFTA). Gradually, new economic development projects and relocation of white mainland Portuguese citizens into the overseas colonies in Africa were initiated, with Angola and Mozambique, as the largest and richest overseas territories, being the main targets of those initiatives.
End of colonialism
After India attained independence in 1947, pro-Indian residents of Dadra and Nagar Haveli, with the support of the Indian government and the help of pro-independence organisations, liberated the territories of Dadra and Nagar Haveli from Portuguese rule in 1954. In 1961, São João Baptista de Ajudá's annexation by the Republic of Dahomey was the start of a process that led to the final dissolution of the centuries-old Portuguese Empire. According to the census of 1921 São João Baptista de Ajudá had 5 inhabitants and, at the moment of the ultimatum by the Dahomey Government, it had only 2 inhabitants representing Portuguese Sovereignty. Another forcible retreat from overseas territories occurred in December 1961 when Portugal refused to relinquish the territories of Goa, Daman and Diu. As a result, the Portuguese army and navy were involved in armed conflict in its colony of Portuguese India against the Indian Armed Forces. The operations resulted in the defeat of the limited Portuguese defensive garrison, which was forced to surrender to a much larger military force. The outcome was the loss of the remaining Portuguese territories in the Indian subcontinent. The Portuguese regime refused to recognize Indian sovereignty over the annexed territories, which continued to be represented in Portugal's National Assembly until the military coup of 1974.
Also in the early 1960s, independence
