That's the British Olympic soccer team giving the Nazi salute to the German government before a 1938 friendly with Germany in Berlin. They were ordered by British athletic officials to give the salute in the spirit of being gracious guests.
The country apparently hasn't learned much. The British government is now requiring its athletes to sign an oath to stay mum about Chinese human rights abuses this summer while competing at the Beijing Olympics. Refuse to sign, and the government won't let them compete.
Here's hoping a British athlete signs the oath, then breaks it after winning a medal. It'd be nice to see the British government put in the awkward position of actually trying to enforce the ridiculous gag order.