This paper is divided into three sections. In the first part the political situation in South Africa is discussed and background is given on the political parties of the time. The relationship of South Africa with Britain is given attention as Britain is the most powerful member of the Commonwealth. Furthermore the relationship with other members of the Commonwealth and the United Nations is explained. The second part of this paper explains the strategic importance of South Africa and its resources in the event of conflict between East and West. Not only has South Africa increased its independence from imported goods but has the strategic advancement that invasion by other countries is less of a threat. The Third part of this discussion center on the economic position and relationships of the Union of South Africa with the world.