Due to the length of time required to build warships and the short duration of the agreement, its effects were limited. German and British naval experts estimated that the earliest year germany reached the 35% limit was 1942.  In practice, the lack of shipbuilding, design problems, a shortage of skilled labour and a shortage of foreign exchange to buy the necessary raw materials slowed the reconstruction of the German navy. A shortage of steel and non-ferrous metals, due to the fact that the navy was in third place in terms of German rearmament priorities, meant that the navy (as the German navy had been renamed in 1935) was still far from the 35% limit when Hitler denounced the agreement in 1939.  In early March 1935, talks on the extent and extent of German rearmament between Hitler and Simon in Berlin were postponed when Hitler was offended by a British government white paper justifying a higher defence budget on the grounds that Germany was violating the Treaty of Versaille, claiming that it had been “cold”. Between Hitler`s “rest” and Simon`s visit, the German government took the opportunity to formally reject all Versailles clauses on land and air disarmament. In the 1930s, the British government was obsessed with the idea of a German bomb attack that destroyed London and therefore insisted on an air pact banning bombing.  The idea of a maritime agreement was seen as a useful stepping stone to an air pact.  On 26 March 1935, during one of his meetings with Simon and his deputy Anthony Eden, Hitler declared his intention to refuse the naval disarmament service at Versailles, but was prepared to discuss a treaty that regulates the extent of German naval armament.
 On 21 May 1935, in a speech in Berlin, Hitler formally proposed to discuss a contract proposing a German navy that would operate forever on a 35:100 naval stand.  In his “Peace Speech” of May 21, Hitler denied any intention to engage with the United Kingdom in a sea-style battle before 1914 and said: “The German government itself recognizes the overwhelming importance of existence and therefore the justification of supremacy at sea to protect the British Empire, just as we are determined on the other hand to do whatever is necessary to protect our continental existence and freedom.”  For Hitler, his speech illustrated the underperformance of an Anglo-German alliance, the UK`s acceptance of the German Continental European Championship in exchange for German acceptance of British domination of the seas.  In recent days, representatives of the German government and Her Majesty`s Government have met in the United Kingdom, whose main objective was to pave the way for a general conference on the limitation of naval armaments.