They had dutifully observed disarmament and appeasement to avoid conflict in Europe especially as they had just witnessed the horrors of the First World War . So both psychologically and militarily , the two nations were not geared for battle when Germany turned aggressive . Moreover , in the years after World War I , Britain faced staggering economic problems . Merchant ships had been lost in the war and it was losing markets to other nations so that Britain had drastically reduced spending for armaments...











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