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The policy of "equidistance"
On the other hand, the Greek governments became aware of the need to maintain a policy of equidistance towards the two European blocs of states (Great Britain-France and Germany-Italy) which started to crystallise after 1935. The Greek-Italian rapprochement continued until the last years of the 1930s. At the same time, the economic and commercial cooperation between Greece and Germany was significantly extended, especially from 1935 onwards. The Greek-German agreement of 1936 concerned the widening of the commercial relations between the two countries and ensured the provision of German military materiel for the modernisation of the Greek armed forces.
By mid-1930s, the international treaties allowed of larger latitudes for manoeuvring in the exercise of the Greek foreign policy, given the fact that the structure of alliances in the European system had not been crystallised yet and the freedom of choices was still important. Problems started to emerge from 1935 onwards. However, the position of Greece in the periphery of Europe did not dictate direct moves, given the fact that the Great Powers continued to focus on the danger of the German expansionism in central Europe.
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