"...the settlement of the Czechoslovakian problem, which has now been achieved is, in my view, only the prelude to a larger settlement in which all Europe may find peace. This morning I had another talk with the German Chancellor, Herr Hitler, and here is the paper which bears his name upon it as well as mine (waves paper to the crowd – receiving loud cheers and "Hear Hears"). Some of you, perhaps, have already heard what it contains but I would just like to read it to you ...".
'"My good friends, for the second time in our history, a British Prime Minister has returned from Germany bringing peace with honour. I believe it is peace for our time."
The European foreign policy of the Chamberlain ministry from 1937 to 1940 was based on Neville Chamberlain's commitment to "peace for our time", pursuing a policy of appeasement and containment towards Nazi Germany while increasing the strength of Britain's armed forces, until in September 1939 he delivered an ultimatum over the invasion of Poland followed by a declaration of war against Germany.
As with many in Europe who had witnessed the horrors of the First World War and its aftermath, Chamberlain was committed to peace. The theory was that dictatorships arose where peoples had grievances, and that by removing the source of these grievances, the dictatorship would become less aggressive. It was a popular belief that the Treaty of Versailles was the underlying cause of Adolf Hitler's grievances. Chamberlain, as even his political detractors admitted, was an honourable man, raised in the old school of European politics. His attempts to deal with Nazi Germany through diplomatic channels and to quell any sign of dissent from within, particularly from Churchill, were called by Chamberlain "The general policy of appeasement" (30 June 1934).
A major structural problem that Chamberlain confronted at the beginning of his premiership, and which was a major factor in development of his foreign policy was the problem of worldwide defence commitments coupled with an insufficient economic-financial basis to sustain those commitments. A report by the British Chiefs of Staff in 1937 that had much influence on Chamberlain read: