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Appeasement was in the traditions of British foreign policy. Basically, the idea that war was unprofitable and that better capitalist motives were preferable had been part of British foreign policy since the nineteenth century. Appeasement from a position of strength dominated policy; however, by the 1930s Britain was no longer strong.
Coupled with Appeasement being traditional was the genuine belief in Britain that it was a workable and astute policy. The "never again" syndrome after the Great War led to a political unwillingness to be involved in warfare. Chamberlain genuinely believed that peaceful resolution was possible and preferable, and the British public and government thought so too until round about 1937/8 when feelings turned sour.
In addition, Britain's comparatively weak military and economic position meant that appeasement was really the only feasible policy. Rearmament was not only politically but also financially difficult, and corners were cut everywhere; for example, the new squadrons of the RAF were conceived not as home defence but as a cheap way of policing and governing the large tracts of the Empire. However, as crisis loomed the defence of the Empire came a poor third to home defence and Europe, and so very few resources reached it.
Basically, Appeasement was a belief held strongly by Chamberlain, that was dictated by the political, economic and moral climate of the time. (hope that helps!)
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These notes are aimed at A Level history students.
Originally written by FadeToBlackout on TSR Forums.