section_path: Decolonisation and decline (1945–1997)
section_name: Decolonisation and decline (1945–1997)
paragraph_text: Decolonisation and decline (1945–1997)
  
  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. In April 1949, following the London Declaration, the word "British" was dropped from the title of the Commonwealth to reflect its changing nature. It was decided that the term Commonwealth country should formally replace dominion for official Commonwealth usage. 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 instalment 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.