In November 1934, the Germans formally informed the United Kingdom of their wish to conclude a contract with the United Kingdom, under which the Imperial Navy could develop up to 35% of the Royal Navy. which the British fleet possessed and, from a British point of view, it would be, in the event of war, the easiest German fleet to defeat. [26] (d) The German Government is in favour of the issue of limiting naval armament of the system which divides naval ships into categories, fixes the maximum mass and/or armament for ships of each category and allocates the tonnage allowed to each power by category of ships. Consequently, the German Government is prepared, in principle and subject to point (f), to apply the 35%. to make the ratio to the tonnage of each category receivable subject in one or more specific categories to the rules that may be adopted in a future general contract for the limitation of the navy, on the basis of the principle that any increase in one category would be offset by a corresponding reduction in other categories. If one does not want to enter into a general contract of limitation of the navy or if the future general contract does not contain a provision that creates a limitation by category, the way in which the federal government has the right to vary the 35 per cent. Relations in one or more categories will be, in the light of the pre-existing naval situation at the time, a matter of consensus between the German Government and Her Majesty`s Government in the United Kingdom. . . .