During the interwar period, the traditional concept of propaganda was changed with the idea of the national projection as an approach representing the state in the international arena in the context of public diplomacy. The lessons of World War I made nations revise their way of looking at cultural propaganda and the role of the national and international image of the state to influence its position in the world. In this context, it is essential to compare and contrast the approaches of Britain and the United States toward developing their state-funded cultural propaganda or national projection. In spite of the fact that both Britain and the United States revised the approach to propaganda during the interwar period, these countries followed different strategies related to the national projection, and Britain focused more on democratic tools when the United States paid attention to a particular type of isolationism and internal communications. After World War I, the British authorities concentrated on the idea that the political propaganda had negative consequences, as this practice was rather manipulative in its nature. This opinion was developed during almost two decades. However, in this period, Britain admitted the necessity of creating an international image while allowing foreign nations to know the truth about Britain. Thus, the national projection as a way to make other countries learn about the nation and its cultural background was rather democratic in its nature because the British authorities rejected the need for using aggressive and manipulative techniques. From this point, the image of Britain should have been based on truth and facts broadcasted with the help of the BBC as the main channel of information. The use of democratic tools for the state-funded projection meant that the authorities did not use unreasonable or unfair approaches to creating the image of the state during the interwar period. Focuses on the accurate content of the news and on broadcasting, as well as the slight shift in the public policy in contrast to the secret policy, were typical for the early stage of the interwar period. That was the period of using such democratic tools as the English language teaching and the active cultural propaganda. The goal of the British authorities was to demonstrate advantages of the democratic institutions and principles developing in the state. However, in 1938, the international understanding of Britain was not enough to state the world position and to unite the forces of allies against the developing fascism and its principles. Thus, politicians and diplomats saw that the used democratic measures typical for Britain in the field of public diplomacy and foreign policy were rather ineffective, and they needed to be strengthened with the focus on promotion of activities of such agencies as the Tourist Association and the British Council. The Tourist Association was one of the essential organizations to promote propaganda as the element of the national projection. The British Council was used as the useful tool for addressing the problem of fascism in Europe and for developing the cultural propaganda appropriate for the democratic course of the British authorities. The way made by the United