 In 1934, the NP and the SAP entered into a coalition, which led to the creation of a merged United Party (UP), although a hard-line nationalist faction led by D. F. Malan stayed out.The United Party included both liberal and conservative elements, but followed a pro-Union, pro-British policy which resulted in Hertzog and his followers withdrawing from it in 1939.The United Party lost power in 1948 to the National Party under Malan, who began to implement the policy of apartheid.