- American foreign policy in the 1920s and 1930s focused on disarmament, collective security, and isolationism in response to tensions in Europe and Asia. - The Washington Naval Conference of 1921-1922 established naval ratios between the US, Britain, Japan and other powers in an attempt to reduce tensions in the Pacific. - Throughout the 1930s, the US pursued neutrality policies in response to fascist aggression in Europe and Asia, enacting neutrality acts that increasingly limited trade with belligerent nations. - Japan's bombing of USS Panay in 1937 tested US resolve in China, but the US was satisfied with Japan's apology and did not take further action.