In the twentieth century the capability of a nation's armed forces cannot be separated from that nation's technological capability and industrial res… - Correlli Barnett

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.

[T]he Cabinet...continued to put their faith in bringing about the "appeasement" of Europe by negotiation; in other words, in reaching a general settlement of all outstanding European problems with the co-operation and consent of Nazi Germany... The Cabinet thus elected to follow a course of action which stood in flat contradiction to their own expressed convictions about the nature and aims of the Nazi régime, and about the worth of the Nazi signature.
Nothing could be more in the romantic tradition than so to reject what was dictated by knowledge and commonsense, and instead pursue the impossible but ideal. But this was a Cabinet refulgent with high ideals – high Victorian ideals. By the mid-1930s the direction of English policy had fallen even more completely into the hands of clergymen manqués than during the 1920s and for the most part clergymen manqués now well advanced in middle-age or even into elderliness. In Baldwin's Cabinet in 1936, MacDonald, Runciman, Kingsley Wood, Neville Chamberlain and Simon represented the nonconformist conscience; Halifax and Hoare the High Church; and Inskip the evangelicals. Their approach to world affairs owed no less to Victorian liberalism, for they were deeply imbued with its abhorrence of struggle and its optimistic faith in human reason and goodwill... The political and moral equipment of the English cabinet ministers of 1936–7, being thus designed for an historical situation which had long since disappeared, was useless in the present international environment.

With regard to Blunt, we should remember that the 1920s and 1930s marked a high tide of romantic idealism, or high-minded priggishness, among the public school-educated British élite. Common-room Communism was not the only form of mandarin prize-assery to flourish; there were the League of Nations Union, the Peace Pledge Union, the Anglo-German Group and Anglo-German "Link", and numerous other groups or ad-hoc committees devoted to various "good causes". There was "Bloomsbury"; E. M. Forster as the grand guru of intellectual wetness. A web of personal relationships and inter-connecting memberships linked the different sects into what may fairly be described as "the Establishment". Blunt and co, having pushed romantic idealism to the point of treachery, simply take the cigar as the prizest, or most misguided, asses of them all.