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From 1969 to 1970 he was a member of the German Bundestag for the Liberal Democrats (FDP) and a Secretary of State in the Foreign Office. In 1970 he became a Commissioner in the European Commission in Brussels. From 1974 to 1984 he was director of the London School of Economics and from 1987 to 1997 Dean of St. Anthony's College at Oxford University.
In 1993 he was granted a life peerage and was created Baron Dahrendorf of Clare Market in the City of Westminster by Queen Elizabeth II.