In 1911, Churchill became first lord of the admiralty, readying the British fleet for war with Germany. By the start of World War I in 1914, the Royal Navy was so well prepared, having changed over from coal to oil-fueled vessels, that it quickly confined the German fleet to its home ports. The Germans refrained from an all-out naval confrontation, relying instead upon the submarine. Churchills other major accomplishment at this time was the establishment of the Royal Air Force, first called the Royal Flying Corps. But after encountering loud criticism for the British landings on Gallipoli , which resulted in heavy casualties, Churchill was demoted. He resigned his office in 1916 to go to the front as a lieutenant-colonel in command of the Sixth Royal Fusiliers. Nevertheless, he was soon recalled by Prime Minister Lloyd George to become minister of munitions.

　　After World War I, Churchill introduced a number of military reforms as secretary of state for war and for air . As secretary for the colonies , he worked toward the establishment of new Arab states, toward a Jewish homeland in the Middle East, and toward an Irish free state. At this time, Churchill was growing increasingly anti-socialist, setting himself at odds with the pro-labor segment of the Liberal party. His use of British troops to suppress the Bolshevist regime in the Soviet Union lost him the favor of Lloyd George, who appointed Sir Robert Horne chancellor of the exchequer over Churchill. But in 1924, Churchill rejoined the Conservatives and was immediately named chancellor of the exchequer.

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