It's not the Naval Race that is doing it. Germany was never the naval threat to Britain that France and Russia were and by 1914 France and Russia are wildly outspending Germany and even Germany + Austria who wasn't shabby in the naval race. Indeed, by 1914 France + Russia are outbuilding the British even if they were far behind
One would suspect the British of diverting France and Russia to Europe and away from themselves but that would be giving the British more credit for planning than they probably deserve
Where did you dig up that piece of unique knowledge from? German was absolutely the threat to Britain in the Naval sphere, outstripping Russia and France by a long way. The numbers might (I'm not 100% on fleet sizes) not put Germany second in the list (I'm pretty sure they were, Europe-wise at least) but the quality of the German Battleships and Battlecruisers were considerd a direct threat to the RN. The junk the French were putting out was laughable to many in the RN's hierarchy and Russia hadn't been a 'threat' navally since 1856.
Russia was a threat land-wise towards India and the Empire's Middle Eastern interests. The Great Game was very real and many in London and Delhi were consumed by it. The French Empire butted up against the British Empire pretty much all over the world, there were constant border incidents and competitions for markets and resources.
German had what? A few of the less attractive Pacific Islands, the bits of Africa even the Belgians didn't want and a port in China. Big friggin' whoop.
The only thing the continental power Germany and it's second-rate Empire had that was threatening to Britain was it's large, modern and ever-growing Navy.
In response to that, Britain made deals with the two Great Powers it had been in direct competition with for a hundered years, to focus all of her efforts on defeating.
Hardly the actions of a Nation that didn't consider something to be a threat.