Sentence:  In the opinion of His Majesty's Government it is most important for political and other reasons that some limit should be fixed now, and it seems to them desirable, while avoiding any excessive increase, to fix a limit at such a level that <WSD>reescalation</WSD> is unlikely to be required again in the Capital Ships category during the period of the Treaty. 
Meaning of the word marked with <WSD> tags:  The process of escalating again.