Why a more generous Washington treaty hurts Germany

What could Germany build under a Washington treaty allowing 40,000-ton battleships, 30,000-ton carriers, and 14,000-ton other ships at larger ratios?

The treaty navies could build much larger modern fleets, while Germany would remain limited by Versailles and later by inadequate shipbuilding capacity.

Germany's 1920s limits came from the Treaty of Versailles, so enlarging Washington allowances would not release German construction from its own restrictions. Britain and the United States could build more and larger ships, while France, Italy, and Japan also gained room. The 1935 Anglo-German agreement would change Germany's treaty position, but shipyard infrastructure would then constrain what it could build. Expanding that infrastructure competes for money with the army and air force. This counterfactual therefore enlarges the fleets Germany must face without giving German yards the same freedom or capacity.