Britain agrees to Germany's demand

Despite the initial hostility between the two delegations, owing Ribbentrop's blunt demands, a change of opinion came over the British delegation. In a report to the British Cabinet, that they “definitely of the opinion that, in our own interest, we should accept this offer of Herr Hitler’s while it is still open...If we now refuse to accept the offer for the purposes of these discussions, Herr Hitler will withdraw the offer and Germany will seek to build to a higher level than 35 per cent...Having regard to past history and to Germany’s known capacity to become a serious naval rival of this country, we may have cause to regret it if we fail to take this chance...”

during talks between Sir Robert Craigie, the British Foreign Office’s naval expert and chief of the Foreign Office's American Department and Ribbentrop’s deputy, Admiral Karl-Georg Schuster, the Germans conceded that the 35:100 ratio would take the form of tonnage ratios, during the Germans would more or less build their tonnage up to whatever the British tonnage was in various warship categories.

In the afternoon, the British Cabinet voted to accept the 35:100 ratio, and Ribbentrop was informed of the Cabinet’s acceptance in the evening.