PART I.
I. Qualitative Limitation.
The German Government are in agreement with the United Kingdom attitude towards all categories, as defined in N.C.M. (35) 1. There should thus be no obstacle on this account to the conclusion of a bilateral treaty with Germany incorporating the qualitative provision of the London Naval treaty (1936).
II. Quantitative Limitation.
Germany is, in principle, in agreement with the United Kingdom proposal for reaching agreement on building programmes to be freely declared by the various Powers; since however Germany is at present in the process of building up an entirely new fleet, the programme which she must undertake in the next eight years is clearly greater than the normal programme which would be necessary for replacement purposes of a fleet of the size which Germany will attain under the 35 per cent. ratio agreement.
III. Exchange of Information.
The German Government confirm that they are prepared to participate in all agreements regarding the exchange of information concerning the building of new ships, as contained in article 1 of the London Naval Treaty 1930 and paragraph (b), Section 1, Part III, Chapter II, of the Washington Treaty, provided that they fully apply in the same manner to all Powers. Should no general agreement be reached on this matter, the United Kingdom and Germany will exchange information between themselves.
The German Government are further prepared to enter into conversations with other Powers concerning the possibility of a direct exchange from now onwards of such information with those Powers, reciprocity being strictly observed, but without prejudicing later general agreements.
IV. Transfer and Total Tonnage.
Discussions have taken place as contemplated under paragraphs 2 (d) and 2 (g) of Sir Samuel Hoare’s note dated 18th June, 1935, and the following agreements have been reached:-
(i) In the event of the proportion of 35 per cent. of the aggregate capital ship tonnage of the fleets of the members of the British Commonwealth of Nations working out in such a way that Germany, after building a certain number of capital ships of the maximum individual tonnage permitted by treaty, has an odd amount of tonnage left over, she will be allowed to subtract tonnage from the other categories and use it in the Capital ship category, provided always that the German capital ship tonnage shall at no time exceed 35 per cent. of the British capital ship tonnage by more than half the tonnage of the maximum size of the capital ship allowed to be constructed by general agreement.
(ii) The total departure from the 35 per cent. ratio in consequence of adjustments under paragraph 2 (g) shall in the aggregate for all categories of vessels, exceed half the displacement of the largest capital ship permitted by treaty, and the duration of such an excess must not be more than ten years.
V. Age Limits.
In order that the 35 per cent. ratio might be preserved in terms of fighting efficiency as well as tonnage, it was necessary to agree upon the normal age at which ships would be replaced, notwithstanding the fact that such age limits are in no way binding upon other Powers in the absence of a general quantitative agreement. The German Government have agreed to adhere in general to the age-limits hitherto in force, subject to the following exceptions:-
Age limit.
Years
(a) Deutschland class armoured ships. 15
(b) Emden and Nürnberg class of cruisers 15
(c) Wolf and Moewe classes of destroyers 12
VI. “Permanent” overage tonnage.
The United Kingdom enters the agreement with a substantial proportion of overage tonnage. The German Government have agreed that it would be contrary to the underlying principle of the agreement to match this tonnage by 35 per cent. of new German tonnage. So far as capital ships are concerned the matter is not of prime importance since the British replacement programme will proceed more or less concurrently with Germany’s new building. In the cruiser and destroyer categories, however, it is expected that a proportion of overage tonnage will be permanently retained. This “permanent” overage tonnage may amount to, say, 105,000 tons in the two categories together; a figure which would entitle Germany to approximately 36,750 tons.
The German Government have agreed in principle to fill this part of their tonnage by overage vessels. There are, however, two practical difficulties. First, the German navy at present possesses no overage ships worthy to be counted. Second, after the cruisers and destroyers built under the Versailles Treaty have become overage they would have to be kept to abnormally great ages before they could be replaced on the “permanent” overage list by ships under construction today. To meet the first difficulty the special age limits in Section II (b) and (c) were agreed upon. To meet the second, it has been agreed that when the Wolf and Moewe classes reach sixteen years, and when the Emden and Nürnberg classes reach from twenty to twenty-two years of age[1] they shall be replaceable on the overage list by newer ships which shall be deemed to be “overage” for the purposes of the agreement. This arrangement shall continue in force until Germany has sufficient genuine overage tonnage to give her 35 per cent. of the British total.
These provisions have the effect of allowing Germany to attain her full 35 per cent. ratio in cruisers and destroyers by about 1945. But not until 1955 will the German cruisers and destroyers consist exclusively of vessels built after the Anglo-German agreement, by which date the first of such vessels will have become overage.
PART II. (Secret).
VII. German Building Programme.
The German Government intend to complete the construction of the full 35 per cent. quota by the end of the year 1942. The following additional details are supplied:-
Battleships.
Ships D & E (laid down 1934). To be 26,000 tons with 11-inch guns.
Ship F (lay down 1st July, 36). To be 35,000 tons (Same sized guns as the France[2] and her sister ship (15-inch).)
Ship G (lay down 1937). To be 35,000 tons (Same sized guns as the France and her sister ship (15-inch).)
Ship H (lay down 1938) To be within the new qualitative limit, i.e., 35,000 tons and 14‑inch guns.
Note:- This completes the German Quota.
Aircraft Carriers.
No. 1 (lay down 1935). To be of 15,000 tons.
Nos. 2 & 3 (lay down 1938). To complete tonnage quota.
Cruisers.
A Nos. 1 & 2 (laid down 1935). 10,000 tons, 8-inch guns.
A No. 3 (lay down 1936). 10,000 tons, 8-inch guns.
Note:- No forecast of construction in B, category cruisers (6-inch guns) has yet been given, but it has been stated that the transfers of tonnage necessary to give a 45 per cent. quota in submarines, will probably be made at the expense of this category.
Destroyers.
9 in No. (laid down in 1934). To be 1625 tons with 5.1-inch guns.
7 in No. (laid down in 1935). To be 1625 tons with 5.1-inch guns.
4 in No. (laid down in 1936). To be 1625 tons with 5.1-inch guns.
Note:- For the purposes of reckoning the German quota in cruisers and destroyers, the two categories will be classed together.
Submarines.
30 in No. (lay down in 1935). To total 9,500 tons.
10 in No. (lay down in 1936). To total 5,400 tons.
Note:- The German Government has agreed to defer the laying down of some of the 1935 submarines till 1936.
May 1936
[1]Emden, 20 years; Karlsruhe, 20 years; Konigsberg, 21 years; Koln , 21 years; Leipzig, 22 years; Nürnberg, 20 years.
[2] This French battleship was subsequently named Richelieu.
Source: A3427/4/45, Anglo-German Naval Agreement of June 1935, Summary of Exchange of Communications between the United Kingdom and German Government arising out of the Original Exchange of Notes, 23 June 1935, TNA: ADM 116/3377.