Between World War I and World War II Australia suffered greatly from the Great Depression which started in 1929. This limited Australian defence expenditure and led to a decline in the size and effectiveness of the armed forces during the 1930s. In 1931, the Statute of Westminster granted the Australian government independence in foreign affairs and defence. Nevertheless, from the mid-1930s, Australian governments generally followed British policy towards Nazi Germany, supporting first the appeasement of Hitler and the British guarantee of Polish independence.