Complex sentence: For some reason they are not included in the British Empire/Commonwealth but in terms of foreign policy, they are close to the rest of the commonwealth and are likely to enter the war on the side of the Allies.
Split into simpler sentences: For some reason they are not included in the British Empire/Commonwealth. However, they are close to the rest of the Commonwealth in terms of foreign policy, and are likely to enter the war on the side of the Allies.