vehemently rejected. For years Roosevelt had encouraged Britain's disengagement from India. The American position was based on principled opposition to colonialism, practical concern for the outcome of the war, and the expectation of a large American role in a post-colonial era. In 1942 when the Congress Party launched a Quit India movement, the colonial authorities arrested tens of thousands of activists (including Mahatma Gandhi). Meanwhile, India became the main American staging base for aid to China. Churchill threatened to resign if Roosevelt continued to push his demands, and Roosevelt backed down. Churchill was a believer in the integrity of the British Empire, but he was voted out of office in the summer of 1945. Attlee's new Labour government was much more favorable toward Indian aspirations. The process of de-colonization was highlighted by the independence Britain granted to India, Pakistan and Ceylon (now Sri Lanka) in 1947. The United States approved, but provided no financial or diplomatic support. Postwar financial troubles and The Marshall Plan (1945-1952) In the aftermath of the war Britain faced a deep financial crisis, whereas the United States enjoyed an economic boom. The United States continue to finance the British treasury after the war. Much of this aid was designed to restore infrastructure and help refugees. Britain received an emergency loan of $3.75 billion in 1946; it was a 50-year loan with a low 2% interest rate. A more permanent solution was the Marshall Plan of 1948–51, which poured $13 billion into western Europe, of which $3.3 billion went to Britain to help modernise its infrastructure and business practices. The aid was a gift and carried requirements that Britain balance its budget, control tariffs and maintain adequate currency reserves. The American goals for the Marshall plan were to help rebuild the postwar economy in Europe, help modernize the economies, and minimize trade barriers. When the Soviet Union refused to participate or allow its satellites to participate, the Marshall plan became an element of the emerging Cold War. The British Labour government was an enthusiastic participant. There were political tensions between the two nations regarding Marshall plan requirements. London was dubious about Washington's emphasis on European economic integration as the solution to postwar recovery. Integration with Europe at this point would mean cutting close ties to the emerging Commonwealth. London tried to convince Washington that that American economic aid, especially to the sterling currency area, was necessary to