The second and probably the main topic Eden discusses in his letter is the question of rearmament. Look carefully at the third paragraph and answer question 7.

Chamberlain and Eden both saw the need for rearmament but they probably had different priorities. If you look at the cartoon called Stocks Still, you will see what the Daily Mail felt about Eden's rearmament policy.

To see if you understand all that it is telling us, attempt question 8 using the notepad below. For this question there is no specific computer analysis.

Eden is clearly worried about the likely failure of Britain to meet its rearmament targets. If you look at the graph you can see the figures build up for 1933-37 and then the projected figures for 1938 and 39. To see if you can appreciate the main points the statistics are telling us think about your answer to this question. Use notepad 9 to record your answer. Please note that there is no computer analysis of your answer to this question.

Chamberlain was also concerned about rearmament but was primarily worried about the mounting costs. In February 1937 he told his cabinet colleagues that, whilst national safety came before finance, the bill for armaments was mounting very swiftly. You can tell how worried Chamberlain was about the financial implications of rearmament by simply looking at his handwritten response to Eden's letter. What does this short, hand-written note tell you?

He talks of discussing the issue when he is next in Number 11 (Downing Street), which is, as you know, the home of the Chancellor of the Exchequer.