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Previous: British try to negotiate (CYOAH)
With his hand forced, and with no other support from any of the Prime Ministers or Governor's, Churchill agrees to all their demands. In a few years, the dominions (Canada, Australia, New Zealand and South Africa) are truly nations, with no interference from London any more. The colonies in Africa take longer, as they get the British to help develop infrastructure and the foundations for the economy, but by 1965, all the British African colonies are free.
India agrees to still recognize the British Monarch as the Emperor (or, in Queen Elizabeth's case, Empress) of India, but otherwise all internal affairs are handled by themselves. Germany and France, however, decide to refuse this, and leave the newly formed Commonwealth of Nations, but are still closely allied with Britain. With the Commonwealth now taking the place of the Empire, Churchill dies in 1965, feeling as if he had let the British people down. However, the vast majority celebrate this achievement, as the British Empire did not die a horrid death, but a peaceful, democratic transition.
The world after the Commonwealth is formed is mostly of peace and prosperity. With the base provided by the British, the African nations soon reach new heights, with many booming economies speeding forward at a greater and greater pace. Their is no "Third World", as it would be considered, and the tensions between the developed nations and the former colonies are virtually non-existent. The Soviet Union soon has to face the problem of freedom, not only in Eastern Europe, but in the Ukraine, the Baltic Nations, Kazakhstan and the Caucasus. Not wishing to be seen as the bad guys, they follow in the route of the British, and grant more independence to the other communist nations.
With few wars, and the Cold War turning into the "Mutual Understanding", the last major threat to peace has been dealt with. Terrorism still happens, but a smarter approach, to try to attack the base of the terrorist movements instead of their results soon ends many of these issues.
The world has many problems, including the environment, economic growth and some border disputes, but with freedom and democracy taking root even in the Soviet Union, the world seems to be ensured peace for a long time to come.
End of Timeline