Neville Chamberlain became Prime Minister of Britain on 28th May, 1937. Over the next two years Chamberlain's Conservative government became associated with the foreign policy that later became known as appeasement.
Chamberlain believed that Germany had been badly treated by the Allies after it was defeated in the First World War. He therefore thought that the German government had genuine grievances and that these needed to be addressed. He also thought that by agreeing to some of the demands being made by Adolf Hitler of Germany and Benito Mussolini of Italy, he could avoid a European war.
Anthony Eden, Chamberlain's foreign secretary, did not agree with the policy of appeasement and resigned in February, 1938. Eden was replaced by Lord Halifax who fully supported this policy. Halifax had already developed a good relationship with the German government. After his first visit to Nazi Germany he told his friend, Henry (Chips) Channon: "He (Halifax) told me he liked all the Nazi leaders, even Goebbels, and he was much impressed, interested and amused by the visit. He thinks the regime absolutely fantastic."
In November, 1937, Neville Chamberlain sent Lord Halifax to meet Adolf Hitler, Joseph Goebbels and Hermann Goering in Germany. In his diary, Lord Halifax records how he told Hitler: "Although there was much in the Nazi system that profoundly offended British opinion, I was not blind to what he (Hitler) had done for Germany, and to the achievement from his point of view of keeping Communism out of his country." This was a reference to the fact that Hitler had banned the Communist Party (KPD) in Germany and placed its leaders in Concentration Camps.
In February, 1938, Adolf Hitler invited Kurt von Schuschnigg, the Austrian Chancellor, to meet him at Berchtesgarden. Hitler demanded concessions for the Austrian Nazi Party. Schuschnigg refused and after resigning was replaced by Arthur Seyss-Inquart, the leader of the Austrian Nazi Party. On 13th March, Seyss-Inquart invited the German Army to occupy Austria and proclaimed union with Germany.
The union of Germany and Austria (Anschluss) had been specifically forbidden by the Treaty of Versailles. Some members of the House of Commons, including Anthony Eden and Winston Churchill, now called on Neville Chamberlain to take action against Adolf Hitler and his Nazi government.
Hugh Christie an MI6 agent working based in Berlin, met with Hermann Goering on 3rd February 1937. He immediately reported his conversation with Goering and included information that Germany intended to take control of Austria and Czechoslovakia. He also told Christie that Germany mainly wanted "a free hand in Eastern Europe."
In March 1938 Hugh Christie told the British government that Adolf Hitler would be ousted by the military if Britain joined forces with Czechoslovakia against Germany. Christie warned that the "crucial question is 'How soon will the next step against Czechoslovakia be tried?' ... The probability is that the delay will not exceed two or three months at most, unless France and England provide the deterrent, for which cooler heads in Germany are praying."
International tension increased when Adolf Hitler began demanding that the Sudetenland in Czechoslovakia should be under the control of the German government. In an attempt to to solve the crisis, the heads of the governments of Germany, Britain, France and Italy met in Munich in September, 1938.
On 29th September, 1938, Adolf Hitler, Neville Chamberlain, Edouard Daladier and Benito Mussolini signed the Munich Agreement which transferred to Germany the Sudetenland, a fortified frontier region that contained a large German-speaking population. When Eduard Benes, Czechoslovakia's head of state, who had not been invited to Munich, protested at this decision, Chamberlain told him that Britain would be unwilling to go to war over the issue of the Sudetenland.
The Munich Agreement was popular with most people in Britain because it appeared to have prevented a war with Germany. However, some politicians, including Winston Churchill and Anthony Eden, attacked the agreement. These critics pointed out that no only had the British government behaved dishonorably, but it had lost the support of Czech Army, one of the best in Europe.
One staunch critic of appeasement was the journalist Vernon Bartlett. He was approached by Richard Acland to stand as an anti-Chamberlain candidate at a by-election in Bridgwater. Bartlett agreed and in November, 1938, surprisingly won the previously safe Tory seat. Henry (Chips) Channon , a junior member of the government wrote in his diary: "This is the worst blow the Government has had since 1935".
In March, 1939, the German Army seized the rest of Czechoslovakia. In taking this action Adolf Hitler had broken the Munich Agreement. The British prime minister, Neville Chamberlain, now realized that Hitler could not be trusted and his appeasement policy now came to an end