The British complained at the time, and were long to complain afterwards, that the French had let them down; that the French army had not fought well enough; that France, by capitulating, had left them to carry on the war alone against overwhelming odds. These were complaints which the British, who had been hardly more than spectators of the battle, were singularly ill-qualified to make. For it was, after all, only the logical, if not the inevitable, consequences of the entire course of British policy towards France in the previous twenty years, and of the whole pattern of British grand strategy and re-armament in the 1930s, that France should virtually alone have to fight the decisive land battle against Germany, a nation twice her size; and that she should therefore lose that battle.
Now the British were face to face with the doom which, step by step, illusion by illusion, they had brought down on themselves – a war without an ally against two great powers, possibly three; their own island in danger; an ill-defended and immensely vulnerable empire; and an inadequate industrial machine; and insufficient and fast-dwindling national wealth.

How then was the Admiralty to find a fleet for Singapore, as had been repeatedly promised (though with waning conviction) to Australia and New Zealand before and since the outbreak of war with Germany and Italy? It went far deeper than a mere question of naval strategy and deployment. As Sir Samuel Hoare, the then First Lord of the Admiralty, had remarked to the 1937 Imperial Conference, "the very existence of the British Commonwealth as now constituted" rested on the ability of Britain to send a battlefleet to Singapore. But this in turn posed an even more profound question about Britain's very own existence as the centre of this oceanic empire, the immediate practical implications of which were so starkly confronting her leaders in the summer and autumn of 1941. For in retrospect it can be seen that it was an illusion for the British to believe that the Commonwealth and the Empire made Britain a great world power. Rather the strategic and economic balance sheet in 1941 demonstrates that the Commonwealth and Empire (with the notable exception of Canada and perhaps South Africa) were not an asset, but a net drain on Britain's strength; a predicament. For the imperial pink splashed across the map of the world in British atlases did not represent strength, as the British romantically believed, but one of the most outstanding examples of strategic overstretch in history.

The European states, and above all Germany (newly united in 1871), therefore entered the second Industrial Revolution, that of science-based industries like chemicals and electrical goods, very well equipped by education, training, and research systems to take the lead. Britain, on the other hand, could only deploy a sorry militia of the ignorant led by the "practical man". Not merely did Britain lack a modern educational and research structure, it lacked the necessary national understanding and will to create one. Here then is the leitmotiv in British education for the next sixty years: the painful effort against the very grain of national prejudices to remedy what was already by 1870 a half-century of backlog.

The audit of the Great War showed up widespread human weaknesses in British industry. Too many British capitalists in their boardrooms were simply self-trained "practical men" smugly content with old products, old equipment and old markets, guided by a concern for short-term profits rather than for the long-term development of their businesses. The trade unions...were resolutely resistant to new technology, while also holding back productivity by a maze of demarcations and restrictive practices.

[G]iven that we are today a country that would be as bankrupt as British Steel if it were not for the lucky strike of North Sea oil, and that our gross national product is only half West Germany's, the attempt to maintain "balanced" forces plus a nuclear deterrent constitutes an exercise in nostalgic unrealism. We are like an impoverished aristocratic family who, by petty economies, struggles to go on living in the gradually decaying ancestral mansion rather than live comfortable within their means in a bungalow. Thirty-five years after the Second World War it really is time that we faced the reality of our true status as a nation and adopted a defence policy appropriate to it.

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Between 1948 and the first half of 1953 manufacturing output per head in Britain only rose by some 14 per cent, as against rises of 20 per cent in America and Sweden, 27 per cent in France and the Netherlands, and a staggering 101 per cent rise in Germany (reflecting, naturally, her acceleration from stand-still). Even as early as 1950 Germany had virtually caught Britain up in manufacturing productivity. In fact, such productivity actually fell in Britain by some 3–4 per cent in 1951–2, just at the time when it was rising fastest in Germany. It only regained the 1951 level in 1953.

Moral force, or righteous indignation, was in fact the only means the British left themselves with which to influence the course of world affairs. For their parsonical belief in the powers of moral reprobation was accompanied by an equally parsonical dislike of "immoral" forms of pressure, such as bribery, threats or force. The British ruling classes deliberately rejected from their thinking the fundamental operating force in international relations – power. To take note that power existed, and was the prime mover, was denounced as a cynical and immoral wish to play "power politics". This was about as sensible as denouncing aircraft designers who took note of aerodynamics. To the post-evangelical British, however, power in the relations between States was like the sexual urge in the relations between people: elemental, frightening, and to be denied. It was an era when Bismarck and D. H. Lawrence were equally ill-thought of. The British approach to diplomacy was therefore rather like their approach to sex, romantically remote from the distressing biological crudities.

For other great powers did not see the world as one great human society, but – just as the British had done up to the nineteenth century – as an arena where, subject to the mutual convenience of diplomatic custom, nation-states – the highest effective form of human society – competed for advantage. They did not believe in a natural harmony among mankind, but in national interests that might sometimes coincide with the interests of others, sometimes conflict. It followed that they considered that relations between states were governed not by law, nor even by moral principle, but by power and ambition restrained only by prudent calculation and a sense of moderation. War therefore, in their view was not a lamentable breakdown of a natural harmony called peace, but an episode of violence in a perpetual struggle. European powers looked on armed forces not as wicked, but as among the instruments of diplomacy. Indeed, whereas in Britain romantic emotion expressed itself in visions of a world society, in Europe it had given rise to a fervent nationalism. In the late nineteenth century the world was becoming not less dangerous and anarchical, but more so. Moralising internationalism, born out of liberalism by evangelical faith, was therefore an unsuitable guide to British policy.

[T]he essential and constant factor common to all three national academies [in Britain, France and America] is the indoctrination with tradition: potent emotional conditioning in military myth, habits, and attitudes. There are the physical symbols and reminders: engraved tablets of the glorious dead; the museums; the assembled iconography of illustrious graduates; statues; guns... At all three academies there are songs, slang, customs and ceremonies that link each annual class together for the rest of their army life... This indoctrination has grown out of history rather than been artificially created, but it may be doubted whether psychologists or sociologists could improve on it. Upon this mental sub-structure, purely neo-feudalist with its emphasis on glory, gallantry, honour, duty, and patriotism, is built functional and technical training, both concurrently at the academies, and later in schools of application. But it is this indoctrination, together with drill and discipline, that turns civilians into soldiers. Without it there would be no difference between a general in a defence ministry and a high executive in a business cartel. In terms therefore of creating the common character of the military elite, this constant factor of conditioning inside cadet colleges has been of greater importance than the changing detail and emphasis of academic curriculum and military training.

Yet there had been an educational revolution in Britain since the 1820s—the reform and expansion of the public schools which produced the British governing élite. And it is in the nature of the Victorian public school that we find the other key factor explaining why Britain was so slow and so inadequate in educating for industrial capability. The Victorian public school was inspired by the religious and moral idealism of the Romantic Movement. It turned away from the realities of the industrialized world of the era and from such topics as science and technology.

From 30 January 1933 onwards the English had had to deal with a German government whose leader poured public scorn of the utmost brutality on the fundamental beliefs by which the English had come to live. In Nazi Germany and post-evangelical England the utterly incompatible products of two different strains of romanticism now confronted one another – the German, with its mystical and atavistic outlook on race and nationhood, its obsession with power and domination, its neurotic love of violence; and the English, with its faith in the moral law, its vision of the brotherhood of man, its trust in the essential goodness of human nature, its pacific gentleness and compassion. Such a confrontation could only end in a tragedy of misunderstanding.

The change in the British since the eighteenth century went far deeper than conscious belief. Evangelical religion had modified the national character itself. The violence and quarrelsomeness that had once been noted as English characteristics had vanished, except in working-class districts; replaced by gentleness and readiness to see good in others. Kindness and gentleness indeed were now seen as prime virtues. The hardness, insolence and even arrogance with which Englishmen used to deal with foreigners had given way to an unlimited willingness to see and understand the other man's point of view, even that of an opponent; indeed a willingness to assume, out of a profound though absurd sense of guilt, that his case was morally better founded than their own. Thanks also to Victorian religion – and perhaps to Dickens – the English now evinced a compassion for the underdog and a sympathy for failure, and a corresponding suspicion of ability and success, that were unparalleled in other countries. Thus it followed that the English now preferred the soft handshake of goodwill and reconciliation (in which they placed unbounded trust) to the firm grip of decision and action. Appeasement indeed had become a conditioned reflex of the British middle and upper classes. Few would now say with Palmerston that the practical and sagacious thing to do in life was to carry a point by boldness: knock an opponent down at once, and apologise afterwards if necessary to pacify him.

I am dismayed by the RSA's change of institutional Schwerpunkt from hardnosed concern with education and training for personal and national capability to generalised small ‘l’ liberal do-goodery, or, in the words of your chief executive, the driving of "social progress". While we waste time and effort on this right-on idealism, poor old Britain is confronting ever tougher competition from old rivals like Europe and North America, and new ones like India and China. You would hardly guess from the contents of your Journal that it is a ruthlessly hard world out there, and getting harder every decade.

The evidence also justifies a verdict that the British character in peacetime...lacked not only hardness of mind, but also (except perhaps among the trade union barons and the shop-floor mutineers) hardness of will. In a corruption of the virtue of tolerance into a vice, the British too readily put up with slackness; they shrank from weeding out and discarding the incompetent, whether these wore the executive homburg or the workman's overalls or the teacher's gown. They lacked, moreover, the dynamism powered in America by individual and corporate ambition and in post-war Germany by obsession with Leistung (achievement). For long since out of fashion in Britain was the restless energy displayed by British entrepreneurship in the full momentum of the industrial revolution. Instead, in the shrewd diagnosis of a distinguished economic commentator in 1963 (and fully justified by the historical evidence), "The very niceness of the British, the national desire to do the decent thing...has become an enormous force for immobilisme..."

A navy is no more than the armour and the weapons-system of seapower. The hull, providing essential buoyancy, is the national wealth. The propulsion is commercial and industrial success, which creates the national wealth. By the end of the Second German War in May 1945 British national wealth, once the greatest in the world, had given way to bankruptcy, with overseas debts exceeding reserves of gold and foreign currency by nearly fifteen times. Whereas in 1870 Britain's foreign trade had nearly equalled that of France, Germany and the United States put together, in 1945 her export trade had collapsed to less than one-third of the 1939 level, and her visible exports could finance no more than one-tenth of her overseas requirements. Worse still, the British industrial machine, once the envied model for the rest of the world, had been revealed by the war to the government, though not to the British people at large, as out-of-date in equipment, methods and attitudes; crippled by poor management and obstructive workforces; and weak in advanced technologies. All this was especially true of shipbuilding.