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Defence policy in the 1930s

Until the late 1930s, defence was not a significant issue for Australians. At the 1937 elections, both political parties advocated increased defence spending, in the context of increased Japanese aggression in China and Germany's aggression in Europe; however, there was a difference in opinion about how the defence spending should be allocated. The United Australia Party government emphasised co-operation with Britain in "a policy of imperial defence". The lynchpin of this was the British naval base at Singapore and the Royal Navy battle fleet "which, it was hoped, would use it in time of need". Defence spending in the inter-war years reflected this priority. In the period 1921–1936 totalled £40 million on the Royal Australian Navy, £20 million on the Australian Army and £6 million on the Royal Australian Air Force (established in 1921, the "youngest" of the three services). In 1939, the Navy, which included two heavy cruisers and four light cruisers, was the service best equipped for war.