The period 1919–1935 was a difficult one for Armstrongs and Vickers. With the end of the war domestic and international demand collapsed, and the firms were left with significant excess armament capacity and mounting financial problems. Armstrongs and Vickers responded by diversifying into other businesses, but with limited success. The contraction of the market led the two armaments firms to merge. The Great Depression further eroded military spending and dashed hopes of expanding exports. In the early to mid-1930s three things happened simultaneously: the international situation deteriorated, arms control proceeded but did not solve international insecurity, and there was growing public ire about the past behavior of armament firms. The subsequent Royal Commission into the armament firms cast Vickers in a very negative light and the firms were threatened with nationalization, something neither the firms nor the government wanted. The intervention of Sir Maurice Hankey in defense of the firms proved vital in heading off nationalization. The interwar period was therefore an extended existential crisis for Armstrongs and Vickers.