the majority of the royal people in England were nazis
Really? Did they goosestep frequently?
The entire quote is:
From a social point of view, the sickest communities of the New Europe are: first, Hungary, then Italy.
In England, the masses are unaware of the State of servitude in which they live.
By that he means the masses lost their racial instincts, that they allow to be ruled by the Jew but that's temporary and they will regain their freedom. And then:
Germany and England will know what each of them can expect of her partner, and then we shall have found the ally whom we need. They have an unexampled cheek, these English! It doesn't prevent me from admiring them. In this sphere, they still have a lot to teach us.