Short answers, pulled from the story.
The Treaty of Versailles allowed no submarines, no naval aviation, and only six obsolete pre-dreadnought battleships. German naval forces were restricted to six armoured vessels of no more than 10,000 tons displacement. They could also possess six light cruisers of no more than 6,000 tons displacement.
The agreement was signed in London on the 18th of June 1935 by Joachim von Ribbentrop and Sir Samuel Hoare. Talks began on Tuesday, the 4th of June 1935, at the Admiralty office before the final signing occurred later that month.
The French government regarded the pact as treachery because Britain did not consult them or Italy during negotiations. The British agreement stipulated Germans could build more powerful warships than any of the three other major Western European nations then possessed.
Adolf Hitler abrogated the agreement on the 28th of April 1939. This decision followed his disillusionment with Britain and the implementation of Plan Z to build a colossal Kriegsmarine intended to crush the Royal Navy.
Commander Hellmuth Heye concluded the best strategy was a Kreuzerkrieg fleet consisting of U-boats, light cruisers, and Panzerschiffe operating in tandem. This fleet would attack the British Merchant Marine rather than engaging in a decisive battle with the Royal Navy.