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This is a common problem with late game slowdown. Basically the ai goes through every unit on the map to determine the next course of action and with every major nation having 300+ units everything crawls to a halt.

Faster CPU causes less of a problem but the slowdown effect is still very annoying by 1950 even with a really fast CPU.
Updating to 1.3 beta solved the problem for me though ;). Thanks for the response!