The conclusion of the peace treaties with Germany's ex-satellites marked the intensification of the controversy between the Soviet Union and its Western Allies regarding Eastern Europe. Disagreements focused on the undemocratic nature of the emerging regimes. Britain and the United States believed the violent methods used by the local Communists to be not only condoned, but actually inspired by the Soviet government and Communist Party. This was judged to be true to the greatest degree of the Bulgarian government.

British policy makers did not dispute the place of Bulgaria in the postwar Soviet zone of interest. Although earlier conflicts over the area had marked some of the lowest points in relations with the Soviet Union, in early 1947 the overall importance of Eastern Europe in British foreign policy had visibly diminished. By then, the British government had adopted the view that little was to be gained from clashes over long-foreseen faits accomplis. In the case of Bulgaria, throughout the armistice period the British search for compromises on specific problems failed to improve relations in general. This approach had yielded unpalatable results: in addition to seeing the Soviet Union assert its power in Bulgaria, the Foreign Office began worrying that the Soviet leaders perceived British mildness as a sign of weakness.